Brookfield Property Partners LP Prices Preferreds

Brookfield Property Partners (NSADAQ:BPY) has priced their new fixed rate perpetual units.

The partnership will sell 6.4 million units (with another 960,000 available for over allotment) with a fixed rate coupon of 6.50%.

The shares will have an early redemption period beginning 3/31/2024.

Distributions will be cumulative and paid quarterly.

We are doubtful that the distributions will be qualified, although as the prospectus states “check your tax advisor”.

The units are anticipated to be rated by S&P at a BB+ (although at this moment they are not rated)–just below investment grade.

The shares will trade with a permanent ticker of BPYPP. Shares will trade today on the OTC Grey Market under the temporary ticker symbol of BRKPF.

The pricing term sheet can be seen here.

5 thoughts on “Brookfield Property Partners LP Prices Preferreds”

  1. Off topic, but AFHBL. and Atlas common are way off today. I have a lot of red ink in AFHBL, which has a 2022 maturity. Any thoughts at this point on whether to hold or not? Thanks.

  2. Brookfiled seems to me a complex structure. It came alive quite recently after an initial lackluster beginning. Seems that it has access to lots of private equity money. Just a few days ago, it did quite a bit of acquisition, including substantial portion of Oaktree, including the two baby bonds. Someone at Doug Le Du noted correctly that both of Oaktree baby bonds gapped up.
    Tim was quite shrewd to have purchased BPRAP at a great entry point. I bought some BPR late in the game, noticing that Rida et. al. made a STRONG BUY call. On this one, Rida Morwa had a home run. Yesterday, I followed an article by Dividend Sensei in SA and bought BAM. It dropped 2.4% in one day. I sold it at a loss this morning (probably bad call, it recovered, at one time, almost regaining the prior day’s loss). Nonetheless, FIDO analysts were bearish on BAM, mostly likely, I am guessing that the huge acquisitions. I bought another 200 shares of BPR plus 341 shares of this new BRKPF with the proceeds of the sales from BAM in one of my IRA account (well believe the $1,000 per year limit for UBT clause) without having to fill out a Schedule K-1. BRKPF seems to me a decent buy with its 6.5% coupon. To de-risking, I sold one of my AHT preferreds (AHT-I) with tiny profit, plus some small BDC’s without net loss and probably will wait to buy a little more of NEE-N when it becomes tradeable without calling Nonetheless, I picked up 400 shares of Triton preferreds.

    1. BTW, Brookfield has BPY, which is a partnership, same proforma dividend as BPR, except this is a partnership, requiring K-1. BAM seems to be the parent of these two. Brookfiield has also BEP, which I bought some and then sold. then I bought it back a few days later. Decent large cap Renewable, Sun and WInd, big cap. Quite a few people in SA claimed the balance sheet is better than PEGI. PEGI however is one of Rida Morwa’s “correct” picks with huge QDI dividends. Some claimed that their current CapEx would all be used up in 5 to 10 years. Then I will not be around most likely.

    1. Bprap has been out for a while. Old general growth taken over when Brookfield bought them. Under par, yield 6.46% not Canadian, no K1, same sponser

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