Brookfield Property Partners LP Prices Preferred Offering–Ticker Update


Bob in Thailand points out that the OTC ticker has been released as BKOYF.

Brookfield Property Partners LP (NASDAQ:BPY) has priced their new offering of preferred units.

The new units will have a fixed coupon of 6.375%. They have sold 10 million shares and they will be cumulative, but non qualified.

Being a partnership this issue will generate a K-1 for tax time.

Even though shares will likely trade on the OTC Grey market today the ticker has not been announced as of yet. We will post the ticker when known.

The pricing term sheet can be read here.

18 thoughts on “Brookfield Property Partners LP Prices Preferred Offering–Ticker Update”

    1. You got it TechGuy. Sometimes we suffer in pain as the SP500 grinds higher and then days like today we remember why we are happy with 5-7%.

  1. The preferred units of K-1 issuers usually report their distributions as “guaranteed payments”, with no UBTI. “Usually” does not mean always.

    A priori, there is no certainty with K-1s.

    1. Yep. I can say for certain, Bob-in-DE, that ‘usually’ does not mean ‘always.’

      not JMO 🙁

    1. Do a search on UBTI, bill o. There was a big discussion several days ago.

      Also, if you’re only interested in pfds that issue K-1s, there are those odd ducks out there that declare every flipping dollar distributed to be UBTI.

      I don’t know what Brookfield will do, but if I were buying, I’d be sure to limit my distributions to < $1K / yr until I knew for sure whether they're one of those ducks or not.


    2. Bill, This is what TDA has stated in my IRA.
      IRA clients who receive a Schedule K-1 from an MLP which shows Unrelated Business Taxable Income (UBTI) equal to or greater than $1,000, which is found on line 20 with a code V, can mail their Schedule K-1, along with their account number, to TDAmeritrade to prepare their Form 990-T. There is no fee charged for this service.

      1. Yes. And TDA, like Fido, uses Price Waterhouse to prepare any Form 990T that’s needed.

        The problem is usually (that word again!) not what’s on 20V of the K1s. Those numbers have always been hugely negative for my IRAs.

        The real problem comes when you SELL an MLP in your IRA. All that ordinary income on the sales schedule WILL be considered UBTI by Price Waterhouse and can easily exceed the $1K UBTI threshold, even when offset by any negative UBTI reported on line 20V of your K1s.

        So I have learned over the years not to sell MLPs in my IRAs. The workaround is to just transfer them out as part or all of my RMD.

        This avoids your IRA’s excess UBTI being taxed at trust rates, which are substantially higher than the rates for individuals or families.

        Or you could just put the damn things in your taxable account to start with & avoid all this folderol. 🙂

      2. This is great to know! Thanks. I have stretched into a couple of K-1 issues but cumulatively we shall see. I am supposing this means in EACH account not ALL IRAs and/or spouse’s if filing jointly. There is always some IRS semantic game.
        I also recently posted a blog regarding having access to EASY time records for start and end dates for holding periods: QDI (prefs and commons in taxable), Cap gain computation and such.
        I am wanting to capture “positive incremental gains” (like tax avoidance, less trading fees, LT gains, less desk time) instead of just selling and hoping, then looking for a new buy.
        I spent a bunch of time and took my own advice regarding, “go to the site and click on every link and button, they are there for a good reason.” It worked. I poured over TD’s GainsKeeper and all the tabs and accessible reports. Found very good record keeping, YTD docs and the use of this area is just what I had been looking for. I had only used a bit of it. I am sure other brokerages have similar tools and I had a jolly old time at the outdoor playground at DEN airport yesterday exploring all this stuff.
        FYI: I realized I already had a substantial short term trading cap gains to expect this year and now have to add that to my ordinary income expectations. Goal to stay under $78,000 total. Now I can take a few losses to offset since I have two dogs maybe after a div payout. Or wait on certain issues until after end of year? Strategies.
        I found I had been pretty good going past 91 days for QDI proving just by knowing about how long I had held it. Now I will look.
        Anyway, a bit more polishing of the understanding before it all gets changed again. Just a tool , not a compulsion. Something to use on occasion to have a look see. I am thinking last quarter is the time to really use this.
        Just an addition to the trader’s tool bag if it helps.

        1. PS; TD just posted BKOYF traded out of BPYPP sister pref same yield, same maturity $0.70 lower.

      3. Filing the 990-T is the custodian’s obligation, not yours. You pay the tax but TDA (or whomever) files the form.

        That’s why they don’t charge for it.

  2. Tim, These charts are full of good info, thanks. I think including Tax Reporting Method, Form 1099 or K-1 would be a nice addition.

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