While BPYP is under the Brookfield banner, its office and property exposure has worried investors, as occupancy rates are very high, post-Covid. These are perpetual preferreds (though legally they have a stated maturity in 2081). Paying a fixed 6.25% on a $25 par value. They can be redeemed by the company at $25 as of July 26, 2026 but note this will only happen if it is too the company's advantage. If interest rates and the cost of capital were VERY low at the time, it is a possibility, but certainly not something we would count on. With a fixed rate, preferreds can be very sensitive to rates. If rates rise, 6.25% is less attractive and the price can fall, and vice versa if rates fall. The preferreds as noted will also be sensitive to economic conditions in its business. If rates do peak, this preferred 'should' do a bit better, but investor sentiment can take a while to change, and right now it is negative. The prefs are rated 3L (3 LOW): As per DBRS the credit agency:
Preferred shares rated Pfd-3 are generally of adequate credit quality. While protection of dividends and principal is still considered acceptable, the issuing entity is more susceptible to adverse changes in financial and economic conditions, and there may be other adverse conditions present which detract from debt protection.