Bam’s proposal to buy 100% of BPY

Hi Mat and Dan,

Do you think BAM would make BPY this offer if they didn't have any ideas on how to reduce the retail struggles?

I was debating between selling or switching to BAM. Thanks Mat for your opinion, it helped me to make a decision.

Hi there,

That really depends on your views of Brookfield Asset Management and each individual's investors goals. Many BPY investors likely had BPY for its dividend, but BAM's yield is only 1.19% and has never been a high yielder. Given this, investors may opt to choose to take the cash and invest it in more of an income stock like BPY was. Worth noting that BAM is now also assuming BPY's retail struggles, so that may hamper the stock a little. All things to consider. Personally, I have never been a fan of BPY and warned investors that a cut may be forthcoming. This avoids that scenario for shareholders.

All being said, it really depends on your goals. If it was me, I'd take the cash or sell out early if the price jumped to close to $16.50 per share and invest my money elsewhere.

Mat