It seems that BAM will spin out some real estate:
Now the company’s largest division by far, its $83-billion collection of real estate, is about to receive the spin-out treatment. And therein lies the potential opportunity for investors. The move to create the new venture, to be known as Brookfield Property Partners, could be a catalyst to move the share price higher.
The company states:
“As long-term, value-oriented real estate investors, we believe this is an excellent time to selectively build a portfolio of high-quality industrial properties, and we look forward to expanding our relationship with Hillwood,” said David Arthur, Managing Partner at Brookfield Asset Management. “This initiative expands the scope of our real estate platform in an exciting asset class, strengthening our global property operations in line with the expected launch later this year of our flagship property vehicle, Brookfield Property Partners.”
It was a poor day for the Canadian preferred share market, with PerpetualPremiums down 13bp, PerpetualDiscounts off 4bp and DeemedRetractibles losing 18bp. The Performance Highlights table is short, but comprised entirely of losers. Volume was pathetically, Christmasally low.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.8006 % | 2,442.4 |
| FixedFloater | 4.57 % | 3.95 % | 39,826 | 17.36 | 1 | -0.8576 % | 3,415.8 |
| Floater | 2.96 % | 2.94 % | 50,519 | 19.88 | 3 | -0.8006 % | 2,637.1 |
| OpRet | 4.93 % | 3.06 % | 55,353 | 1.26 | 6 | -0.0258 % | 2,496.7 |
| SplitShare | 5.28 % | -2.61 % | 84,838 | 0.75 | 4 | -0.0348 % | 2,678.2 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0258 % | 2,283.0 |
| Perpetual-Premium | 5.40 % | -1.12 % | 101,771 | 0.13 | 25 | -0.1298 % | 2,216.0 |
| Perpetual-Discount | 5.10 % | 5.09 % | 186,555 | 15.26 | 7 | -0.0413 % | 2,421.8 |
| FixedReset | 5.05 % | 2.92 % | 196,701 | 2.22 | 67 | -0.1149 % | 2,383.7 |
| Deemed-Retractible | 4.94 % | 3.84 % | 199,902 | 2.96 | 46 | -0.1760 % | 2,307.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IGM.PR.B | Perpetual-Premium | -2.21 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2018-12-31 Maturity Price : 25.00 Evaluated at bid price : 26.50 Bid-YTW : 5.01 % |
| IAG.PR.E | Deemed-Retractible | -2.06 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2017-12-31 Maturity Price : 25.25 Evaluated at bid price : 25.72 Bid-YTW : 5.55 % |
| SLF.PR.H | FixedReset | -1.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 24.00 Bid-YTW : 4.26 % |
| BAM.PR.K | Floater | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-03-15 Maturity Price : 17.80 Evaluated at bid price : 17.80 Bid-YTW : 2.94 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.Z | FixedReset | 259,685 | Lots of blocks, all at 25.25: TD crossed 25,000 and 65,000. RBC crossed four blocks: 25,000 shares, 50,000 and two of 10,000 each. Desjardins crossed 10,000 and 35,000. YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.20 Bid-YTW : 3.15 % |
| BAM.PF.A | FixedReset | 125,794 | Recent new issue. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-03-15 Maturity Price : 23.04 Evaluated at bid price : 24.85 Bid-YTW : 4.34 % |
| MFC.PR.H | FixedReset | 40,321 | Recent new issue. YTW SCENARIO Maturity Type : Call Maturity Date : 2017-03-19 Maturity Price : 25.00 Evaluated at bid price : 25.18 Bid-YTW : 4.52 % |
| CM.PR.L | FixedReset | 39,959 | RBC crossed 30,000 at 27.21. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-04-30 Maturity Price : 25.00 Evaluated at bid price : 27.16 Bid-YTW : 2.70 % |
| FTS.PR.F | Perpetual-Premium | 33,200 | Desjardins crossed 25,000 at 25.50. YTW SCENARIO Maturity Type : Call Maturity Date : 2014-12-01 Maturity Price : 25.25 Evaluated at bid price : 25.50 Bid-YTW : 4.56 % |
| BAM.PR.M | Perpetual-Discount | 27,676 | RBC crossed 19,400 at 23.75. YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-03-15 Maturity Price : 23.45 Evaluated at bid price : 23.72 Bid-YTW : 5.01 % |
| There were 15 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| IAG.PR.E | Deemed-Retractible | Quote: 25.72 – 26.30 Spot Rate : 0.5800 Average : 0.3416 YTW SCENARIO |
| IGM.PR.B | Perpetual-Premium | Quote: 26.50 – 27.20 Spot Rate : 0.7000 Average : 0.4648 YTW SCENARIO |
| SLF.PR.H | FixedReset | Quote: 24.00 – 24.25 Spot Rate : 0.2500 Average : 0.1563 YTW SCENARIO |
| IAG.PR.A | Deemed-Retractible | Quote: 23.72 – 24.20 Spot Rate : 0.4800 Average : 0.4032 YTW SCENARIO |
| BAM.PR.G | FixedFloater | Quote: 20.81 – 21.19 Spot Rate : 0.3800 Average : 0.3047 YTW SCENARIO |
| BAM.PR.Z | FixedReset | Quote: 25.42 – 25.65 Spot Rate : 0.2300 Average : 0.1560 YTW SCENARIO |