Anyone have any thoughts on Brookfield Property (BPY) as a place to park money in the near term?
They just reported a loss for the last quarter (to be expected), but continue to pay a fat dividend, and Brookfield Asset Mgmt has made a pitch to absorb BPY at roughly $16.80 USD a share (roughly $21.40). The stock is currently trading just a bit above $22 CAD.
It would seem to me that BAM's offer provides a solid floor for BPY in the near term. I'm already holding some (bought significantly lower) but am contemplating the wisdom of parking more money there to collect dividends until the sale goes through (or doesn't). Long term, I would expect BPY to still have some decent upside to go along with steady dividend payments, assuming the vaccines allow people to return to normal sometime this year, including shopping at malls and retail stores.
Curious to know if I'm missing something here (other than the potential for the deal with BAM to go through at a lower valuation that I pay for the stock, or the deal failing and the price taking a hit with the BAM floor removed (and then not recovering over the course of the year)).
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