Brookfield Property Partners (BPY.UN.TO)

Year-over-year sales is up 14% and earnings are expected to grow by 17% when the report in May. Year-over-year earnings are expected to grow 47% for 2017. This gives a PE of 24X and a PE to growth of .5. ROE is still pretty modest and is expected to be 3.3%, however free cash flow on a 4^th quarter trailing basis is attractive at 7%. This looks like a pretty good opportunity to make some money. Dividend yield of 5.1%.

Brookfield Asset Management (BAM.A-T) owns 65% of this, and this is their public vehicle that holds all of their trophy properties around the world. If you want exposure to Europe, Australia, New York and Canada, this gives it to you. Trading at about a 25% discount to NAV. Dividend yield of 5.15%. (Analysts’ price target is $33.95.)

If you have a long-term time horizon, this is doing very well. It continues to surprise on the upside. About 18% of its balance sheet as exposure to London, but they have hedged off most of the currency exposure. This is still a good place to be. Most of their exposure is in the New York office which is a great place to be.

(A Top Pick Dec 4/15. Up 4.6%.) Sold his holdings at $31 after he saw what was happening in the UK and with BREXIT. If it got down to around $27, he would have another hard look at this.

Brookfield Asset Management (BAM.A-T) is trying to simplify their structure, so that they are going to just have units sending fees upwards. This is going to be one of those areas. A very well-run company. It will continue to generate yield without too much downside. It has a positive correlation to the US$. This is a global REIT. They can take money out of the US or out of Canada into the UK, etc. A very nice investment and a very well-run company.

A small short for him. It carries a lot of debt by its nature. On an REO and cash flow basis, it is not one he wants to hold.

The company has been a good real estate investor in the past. High quality office buildings. The drag has been the exposure to the UK. Brexit has impacted only about 10% of the financials so should not derail it. Dividend growth may not be spectacular on a going forward basis.

(Top Pick Dec 24/15, Down 8.20%) It was caught up in a bad REIT pull back due to rate increase threats. He now prefers the parent as an alternative.

It is a well run real estate platform. He owns others in the family. They are very good at what they do.

It is a very well run company. The better real estate play has been Canadian companies investing in US real estate. It will benefit from the money Trump is throwing at the US economy.

He likes this. It is a really good name. Trading at a discount to its properties, but also has good growth going forward. They are selling 50% positions in some of their properties, and are going to redeploy that money into more distressed assets. The Canary Wharf in England will work itself out and he is not too concerned. Most of their tenants on Wall Street are banks, which are doing very well again.

REITs have had a pull back and are sensitive to rising interest rates. The value of their properties is based on interest rates. He is weary of the REITs right now.

This is the public vehicle that Brookfield uses for most of their real estate assets. Very diversified. A lot of valuable office space globally, including Manhattan. Pays a nice dividend which he feels is safe.

A great example of a truly global real estate company. They have high quality assets all over the world. Part of the recent volatility has to do with BREXIT and underlying concerns about rising interest rates. Great management team and trading at a substantial discount to NAV.

(Market Call Minute.) He loves the Brookfield group, and you can’t go wrong buying any of the spinoffs. His money would go towards the parent BAM.A-T.