Steve DiGregorio Brookfield Office Properties Ltd BOX.UN-T PAST TOP PICK Oct 30, 2015

This is an example of how you can upgrade your portfolio. Look for the highest quality assets that you can find in the market, and buy them because they have traded down with the market. This is the trophy real estate company in Canada. Highest quality real estate in Toronto. Dividend yield of 5.09%.

He sticks with BAM.A-T. He does not need to be a third layer down. Some year there will be a press release that BAM.A-T has taken out what they don’t own of BOX.UN-T, however.

80% controlled by the Brookfield entities. This is core Class A Ontario and Calgary offices. There is strain on the Calgary side, but have very long-term leases and developments going on. In Toronto, offices continue to trade at incredibly high valuations. There is German and Asian money that is very willing to come into Canada, so there is great safety in this company. A safe investment with a yield just under 5%.

(A Top Pick Sept 11/15. Up 28.16%.) Doesn’t think this is done yet. Has never sold a share. Still undervalued. This is the best office real estate that you can find in Canada.

There is a bid for the parent company to take this private. Brookfield has done this many times. They put in one bid, and then they sweeten it later. He doesn’t think they are going to sweeten this one. If you have a better place for the money, he thinks you would be fine taking the superior bid and redeploy the money.

BPY-T said they wanted to buy the remainder of the company at around the current price. It is pretty much a done deal. He does not think you get much more out of it.

They have a cash offer from Brookfield Property Office (BPO.UN-T) at $32.50. He would say that this is the current valuation, and they will probably be successful. He would take the offer as they are not going to be any more liquid.

The market is avoiding office real estate, uninvestible for now. The preferreds should be more resilient, because Brookfield is a strong company.