Brookfield Property Partners (BPY.UN.TO)

This is not on his radar. He is impressed with how they go about their business. Very good operators and very good capital allocators.

Not the most compelling across the Brookfield complex. Has a big UK exposure, which on a headline base really doesn’t bother him. However, anyone claiming to know what will happen over the next 5 years in the office market, doesn’t have the full picture yet. It has a reasonable multiple today, but not as compelling as some of the other areas.

Three peaks since Feb’15. It is in a trading range. We are once again testing the bottom of the trading range. Look for better opportunities elsewhere since you don’t have a trend in either direction.

About 20% of its NAV is London office, but they’ve hedged out about half of their currency exposure. The leases are very, very long, so he thinks BREXIT is a lot of noise. They won’t be able to raise rents in London offices, but 80% of their exposure is in the US and on fire. Any time you can pick up a stock of this quality, Manhattan, Los Angeles, London at a significant discount to NAV, and if any more Brexit news comes out and a 2^nd shoe drops in any way in the market, you definitely want to be piling in. Dividend yield of 4.78%.

If you are going to participate in the Brookfield group, you should go through Brookfield Asset Management (BAM-T), because they have minimum exposure to London as well as to Europe.

(A Top Pick May 22/15. Up 16.88%.) Has been more volatile than what he really likes. This is a multinational and is all over the world. It’s big commercial projects and even some residential stuff. It’s in Australia, New York, Brazil and in Canada. Pays a reasonable dividend, and the Brookfield people are very smart managers. Dividend yield of 4.65%.

(Market Call Minute.) He likes all the Brookfield companies.

Earnings recently came out and the FFO was up 24%. They have a lot of levers to pull in an organization this big, so it is something he likes a lot. If you think the Cdn$ has gotten strong enough and that the US$ may outperform, this is basically a US REIT, but on the TSX exchange. The majority of their earnings are in US$’s.

This is a great business. Chart shows that it is in a basing pattern and is probably where it should be. Some of the indicators are getting a little bit toppy, but on a relative basis, doing what they do, it looks relatively good. If it breaks that $26-$27 range, it is probably going to visit $25.

This is properties. They are all over the world. They are big. Billions of dollars. Good diversity. Thinks it is about ready to break out and have another good period of growth. Dividend yield of 5.06%.

Boston Pizza Royalties (BPF.UN-T) or Brookfield Property Partners (BPY.UN-T)? 2 very disparate companies. Boston Pizza has a very strong yield. Being a royalty, it pays out a lot of its earnings back to investors. This one doesn’t have as big a dividend, but perhaps more room to grow it. He would tend to own the one that has the opportunity to grow its earnings. If he had to pick one of the 2, he would go with this.

He thinks property prices will go up. He likes a shorter duration REIT and he is not sure of the duration of this one. 5.3% distribution

Stock looks quite good here. It has found a level and is at the bottom level of its trading range. The only thing you need to worry about are the 2 tops that it has never been able to break through. That is the upside resistance, but where it is now you could either Hold it or Buy it. The support level looks like where it is now.

A well-run company with a good yield of 5.7%. Scores in the top 20% for price momentum. Despite its recent pullback, it is still relatively stable. A relatively low volatility stock. They’ve also been acquiring other Brookfield assets, and will probably continue to do so, giving them some built-in growth. Valuation is the problem. Trading at 30X EBITDA, and carries a fair bit of debt. However, a solid operator. Would have no problem owning this for its stability and yield.

This is his core pick. Their ability to sell Australia, buy US, buy London, sell Canada, etc. and to be able to balance around the global markets is a great tool. Great valuation here. This offers growth that is difficult to find. Dividend yield of 4.92%.