Which option to take for BPY.UN

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Hi Matt/Dan: It seems that Brookfield Asset Management has now made it’s final offer for Brookfield Property Partnership outstanding shares. I was wondering which option you think is best … a) Cash and purchase another Real Estate/REIT stock, b) Equivalent shares in BAM, c) Equivalent shares of BPY preferred shares. Thank you for your insights.

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Asked on May 23, 2021 10:22 am
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Thank you, appreciate your viewpoint.

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Posted by Douglas Albion
Answered on May 24, 2021 2:49 pm
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Hi Douglas,

This will really be a decision that will be dependent on one's portfolio. There is no higher offer coming, so one could sell today and just redistribute that cash, or wait and receive the BAM shares. BAM is much more than a real estate staock, it is an asset management company with a much smaller yield, so it may not meet your investment goals.

If you are looking to keep that position vested in real estate and something with a higher yield, then taking the cash and investing in aother REIT may be the best course of action. On the flip side, if income isn't important and you don't need to keep the entire portion vested in real estate than perhaps BAM shares would be an excellent choice. I don't like the company's complicated structure, but there is no denying the company's strong performance and a status as an astute asset manager.

Ultimately, the choice will depend on your investment goals.

Mat

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Posted by Mathieu Litalien
Answered on May 24, 2021 2:43 pm