Brookfield Property REIT: 11.9% Yield, Higher Risk

Seeking AlphaREITsBrookfield Property REIT: 11.9% Yield, Higher RiskSep. 6, 2020 6:00 AM ET|| About: Brookfield Property REIT Inc. (BPYU), BPYUP, Includes: BAM, BPYby: Blue HarbingerBlue Harbinger Big Dividends PLUSBig-dividend investment-idea reports, plus income-generating options tradesSummaryBrookfield Property REIT offers an 11.9% dividend yield that is hard to ignore.
While clearly there are concerns given its exposure to malls and retail, there are increasing signs of attractiveness and value for investors.
This article reviews the health of the business, valuation, risks, dividend safety, and the preferred shares. We conclude with our opinion on investing.
Brookfield Property REIT (BPYU) offers an 11.9% dividend yield that is hard to ignore. While clearly there are concerns given its exposure to malls and retail, we believe the backing of parent Brookfield Asset Management (BAM) will help it weather the storm. BAM’s decision to fund BPYU’s tender offer is a vote of confidence in the business, and it also signals to investors that the current valuation may be a bargain. If you have a higher tolerance for volatility and risk in your portfolio, you may want to consider adding shares. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about investing.

Overview:
Brookfield Property REIT Inc. is a subsidiary of Brookfield Property Partners (BPY) which is one of the world’s largest commercial real estate companies, with approximately $88 billion in total assets. BPY’s portfolio includes office, retail, multifamily, logistics, hospitality, self-storage, triple net lease, manufactured housing and student housing. BPYU only owns a subset of BPY’s portfolio, namely its Core Retail portfolio. It consists of 122 retail properties located throughout the US comprising ~120 million sq. ft. of leasable area.
According to the company’s website:
“Brookfield Property REIT is a... Read more