July 23, 2022

Friday’s session saw the S&P 500 down 0.9% and Toronto down 0.4%.

Shopify bounced down 7.3%.

Penny stock Ceapro was up 8.5% but has yet to make progress on monetizing most of the R&D it has been doing for years. On the other hand as noted in my report,  that R&D value is essentially not priced into the stock price.

So, Friday was a bit weak but overall markets had  a good week.

I notice that the Brookfield Office Properties preferred share that I mentioned recently  and purchased. (BPO.PR.A) has declined a bit more since I mentioned it. I own that one and also BPO.PR.G. 

BPO.PR.A is at $16.20 nd pays $1.177 per year for a yield on that price of 7.3%. It does dot reset until 2025 and then will be at the five year Canada plus 3.15% on the $25 price. This is very thinly traded so be cautious in that regard.

Apparently the credit rating is low at BBB minus. The credit rating I see is over a year old and if there is an upgrade these shares should rise in price.

Looking into the financials, I could not see a clear picture. I can’t find financial statements  for BrookField Office Properties on SEDAR or on the company web site. This company is a subsidiary of Brookfield Office Partners L.P which also has a low credit rating.

The bottom line is these share look attractive for yield but they are in the Office segment which has been hard hit. I cn’t be sure but I certainty suspect that the dividend will continue to be be paid.

Here is  a link to a credit report from last year. If there is a newer one I did not find it. In general I don’t have much access to credit reports.

An email to their investor relations has not been responded to. That combined with a web site very thin on information is not a great sign. In general though the Brookfield companies have been great.  I wish I had looked at the their equity shares a long time ago. 

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