This range of Brookfield companies is perhaps one of the greatest groups of private equity-style corporations listed on the Toronto Stock Exchange (TSX) and Brookfield Property Partners (TSX:BPY.UN) is no exception.
In this article, I’m going to discuss why this is a great option for long-term, income-oriented investors today.
As mentioned, Brookfield Property Partners operates as a quasi-private equity (PE) firm. For those who don’t know what PE firms do, essentially these companies scour the capital markets looking for distressed situations or special circumstances in which they can utilize a bucket of capital (and usually a boatload of debt) to buy companies out (or in this case companies that own properties, or the properties themselves) at a significant discount to what public markets might otherwise pay, ideally.
In this environment, the number of such opportunities is only going to skyrocket, and a company like BPY will no doubt be there to pick up the pieces, becoming a consolidator of sorts across the sector in the months to come.
Along with other high-yield stocks in the real estate space (BPY has a high single-digit yield at the time of writing), there is certainly some risk here, should the economic scenario turn cataclysmic anytime soon, so please trade accordingly.
Invest wisely, my friends.