Investment Q&A

Q: Hello 5i Team

My understanding is all (12 issues) of the Brookfield Office Property Preferred shares (BPO) were removed from the S&P TSX Preferred Share Index (TXPR) effective Friday January 18 (the quarterly rebalancing date). My understanding is the BPO shares were removed because S&P downgraded them to P-4 on December 21, 2023.

However I can find no mention of this re-balancing event on the S&P website or other news sources. I have previously seen new releases from S&P when companies are added/removed from the S&P TSX 60 and S&P TSX Composite index.

After reviewing the holdings listing for the CPD etf (which tracks TXPR), the BPO shares are now removed.

Is there any other news sources I should be monitoring? This seems to be a material event that S&P did not disclose?

Thanks

Q: I'm trying to understand how safe the preferred shares of Brookfield Office Properties (BPO) are as they are selling at a big discount to par. I understand that obligations of BPO preferred shares are guaranteed by all of the companies within the umbrella of the Brookfield Property Partner L.P. (BPP) group but am not clear whether the obligations of BPP are guaranteed by its parent .
Any information and views you have on this issue would be welcome.

Q: What's the best way to invest in Brookfield's Real Estate business?
Thanks

Q: I saw your recent answer on BPO preferreds. I have held these for a few years now. What do you see as the likelihood of BPO ceasing to exist ? There seems to be quite a bit of panic here.

Thanks,
Mark

Q: I recently purchased the above preferred shares of 'Brookfield Properties', I believe a subsidiary held privately (51%?) by BN. I was intrigued by the generous 10.5% yield. Most of the these shares are owned by the 'who's who' in Canadian investment. Can you elucidate on their 'commercial real estate' risks that everyone is concerned about generally? Is the yield a factor of this general fear of commercial real estate, or is there a more specific risk in this company? Or, is it simply a factor of low volume? I am also somewhat attracted to the many 'mortgage reits' in the US, many showing 15% =/- yields. Can you speak towards these types of investments as well please.
Thanks
c

Q: I am a senior and am an income investor. I am interested in purchasing some minimum rate reset pref. Shares in quality companies. Your thoughts on this strategy as I am looking for a steady income stream. Would you recommend 3 or 4 with a minimum reset rate of at least 5% dividend rate that would qualify for the Canadian dividend tax credit as they would be purchased in a non registered account. I am also considering a purchase of ING-N shares in US funds in an RSP account. Your thoughts on the quality of this investment and the safety of the dividend and if there is any withholding tax,as this is a dividend play the fact that stock price can vary somewhat is not as relevant however capital preservation is always a consideration. In all of the above I would only start with buying a half position. Thank you, Brian

Q: Hi Team, I'm doing some portfolio clean up and am looking to sell some losers...of the stocks listed, which ones would you sell first in order first to last. Also, could you give me recommendations for where to put the money back to work for the top 3 sells?

Q: I have accounts with Wood Gundy and Investors Edge, so consequently had a mishmash of preferred share holdings. In an effort to build a better yielding, laddered, preferred share portion of my portfolio, I sold all current preferred positions and am planning a ladder with the above noted shares in a non-registered account. These will constitute about 20% of my total portfolio. Do you have any concerns with the choices, or rate resets in general ? I rate resets have not performed well, but the yields are quite attractive.