Canadian partnership Brookfield Property Partners LP (NASDAQ:BPY) will sell a new issue of Preferred Units.
The issue will be cumulative and will have an early redemption period starting 3/31/2024.
This issue will generate a K-1 at tax time. The issue will be unrated.
The intention of the company is for the issue trade with a permanent ticker symbol of BPYPP. At this time the OTC Grey market has not been announced.
BPY doesn’t have any other preferred units trading in the U.S., but their subsidiary Brookfield Property REIT does have a preferred trading under BPRAP which was originally a General Growth issue which was acquired by Brookfield REIT.
We do not believe the issue will be qualified for preferential tax treatment. Additionally while we have not had trouble buying the BPRAP issue there is a chance that some brokers may try to charge extra commissions for the issue being Canadian.