Brookfield Property Partners (BPY.UN.TO)

You could own it if you want direct property exposure. She owns BAM instead, which owns 50-60% of BPY, as she likes the whole stable. Dividend should be safe. Going through a difficult time with retail. Will take a while to work through, but they'll do it. Commercial and retail properties are Class A, well located. Experienced management.

40% of their holdings are malls, which he avoids. Another 40% are in trophy office buildings globally. Both sectors are challenged with limited rent collection rates. The remaining 15% of their business is in opportunistic investing, of which they've done a great job here. Brookfield owns BPY, so the parent company can buy stock if BPY gets into trouble (when the share price falls). RBA just downgraded BPY, which he agrees with. More downside than upside here. Take profits. You can re-enter if Brookfield steps in later.

Controlled by BAM, a great management team. BPY is a diversified REIT, mixing trophy office buildings, class-A regional, and opportunistic investments. Mall side suffers from unstable cash flow; rent collections are 20-40% and nowhere near where they should be. As we enter a second wave, this will be challenged in the retail side. On the office side, there are many question marks; BPY is exposed to Toronto, New York and London. The future value may not be as big as investors expect. He avoids this.

Billy Kawasaki’s Insights - Picks from 5i Research. There are concerns over the impact of coronavirus on retail locations. They just completed a large share buyback and the company is committed to the distribution. They have a good track record and the company is looking long term to opportunity in retail when the virus has passed. Unlock Premium - Try 5i Free

BAM has other deals in the works too, aside from this tender offer. Tendering your shares is safer, but if your time horizon is long enough and you can take a bit of risk, you can hang onto your shares. Obviously, BAM thinks there's some value there.