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No. of Recommendations: 5
Brookfield Property: Closing The Valuation Gap


Book value (IFRS) per unit/share declined in 2018, the payout ratio climbed, and the company took on massive amounts of additional debt.

However, property-level metrics were strong across the board, management sold a significant amount of properties above IFRS value, and is recycling the proceeds into higher-yielding properties and discounted units/shares.

BPY now boasts five straight years of FFO/unit growth and management once again hiked the distribution.

The company's liquidity and debt ladder improved in 2018, setting it up well for handling its large debt burden.

Valuation remains attractive. Shares are still a buy.


Brookfield Property Partners' 6.8% Distribution Is Safe And Growing


Brookfield Property Partners has a current yield of 6.8%, with a commitment to grow its distribution by 5-8% annually.

Despite a 20% rebound in share price since December 2018, BPY remains undervalued, offering investors a margin of safety at the current entry point.

Brookfield Property Partners has a pipeline of world class development projects that will fuel CFFO growth and support its rising distribution.

With a portfolio of high quality properties, and Brookfield Asset Management as its majority shareholder, BPY is a relatively low-risk investment.

I am a little late to this one but even at
Friday's closing price of $19.95 with a dividend yield of 6.6%
it appears undervalued.

No position.
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