Brookfield Property REIT (BPYU) offers an 11.5% dividend yield that is hard to ignore. While clearly there are concerns given its exposure to malls and retail, we believe the backing of parent, Brookfield Asset Management (BAM), will help it weather the storm. BAM’s decision to fund BPYU’s tender offer is a vote of confidence in the business, and it also signals to investors that the current valuation may be a bargain. If you have a higher tolerance for volatility and risk in your portfolio, you may want to consider adding shares. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about investing.
New Options Trade: Fear-Driven High-Income Opportunity, Big-Dividend REIT, Debunk the WSJ
The market has had a love-hate relationship with this big-dividend REIT in 2019, and recently hate has taken the lead, as the shares have sold off. And yet another negative headline this weekend from the WSJ is adding to uncertainty and volatility, thereby making this attractive income-generating options trade even more compelling, in our view. We believe this is an attractive trade to place today, and potentially over the rest of this holiday week as long as the share price doesn’t move too dramatically before then.
Brookfield Property REIT: Big 6.9% Yield, But Know the Risks
If you are looking for a healthy, growing dividend, you may be considering Brookfield Property Partners LP (BPY) (and/or Brookfield Property REIT (BPR)—if you prefer to invest in the REIT vehicle). Not only does the dividend appear attractive, but the shares seem to be trading at a significant discount to NAV. However, concerns over its relatively high debt continue to remain an overhang on the stock. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether BPY (and/or BPR) is worth considering for a spot in your long-term income-focused portfolio.
A Retail REIT Bottom? Parent May Pillage Brookfield’s Bid for GGP
Brookfield Property Partners offers a big 5.2% dividend yield, and the company may be calling a bottom in the retail REIT market via its bid to acquire GGP. However, the real winner may be Brookfield’s parent entity Brookfield Asset Management. This article provides an outlook for retail REITs, a review of the twisted conflicts of interest in this deal, and a few ideas on how income-focused investors may want to play this deal and the retail REIT space in general.