There are risks to these preferreds, but that is reflected somewhat in their price. 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 to 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. We would need to see stable rates and an improvement in vacancies to really see these preferreds do better.
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