Bpy – Topping up a position

Is bpy a buy

Topping up a position – Bpy

Hey everyone

The end of November is near and that meant we all most likely got some extra money this month. If you get paid weekly on Fridays, you got 5 pay days. If you get paid bi weekly you most likely got 3 instead of 2. Winning!

For us I get paid weekly and the wife gets bi weekly. These months really make it easy on the budget as they don’t happen that often, but we need to remember to always pay ourselves first. We pay our mortgage bi weekly, so its basically a extra payment that will help pay the mortgage down faster.

The extra money this month has went to house projects (pot light’s and a new hockey rink liner) as well as investing. Normally we make one purchase a month, but this month we were fortunate enough to make 2.

Disney

Earlier in November we increased our stake in Disney, right before Disney plus came out. While the service has had some hiccups, they are definitely improving. (love how they now have a resume option!)

The Mandalorian (star wars show) has absolutely blown me away. To be honest I haven’t been a fan of any of the Disney star wars, so I wasn’t expecting much from the series. This series is great though and I can’t wait for tomorrow’s new episode.

The nostalgia of watching the old shows and movies with our kids is fantastic as well.

So far they have done a great job with Disney plus and the stock price has reflected that. Although I was sure dis was going to announce a dividend raise in November to go with the good news, but so far no news on that. Come on! I need those raises if I’m ever going to drip your stock =)




The 2nd Purchase

This time we decided to beef up things in our tfsa account by adding to our position in Brookfield Property Partners.

The company continues to be undervalued since that massive ggp acquisition. Everyone keeps talking about how brick and mortar companies are dead. I disagree, they are just evolving. Bpy is a great company for acquiring distressed property’s and improving them.

They plan on adding residential units on top of certain malls. This will be fantastic in a multiple of ways. That’s prime real estate where these malls are. Rents probably won’t be cheap. The addition of residential units on the malls will also be very lucrative for their retail tenants as well as the food courts!

Brookfield Property Partners is a lot more than just these malls though with over 193 billion dollars of assets under management its best to check out their website for yourself, to see their property’s.

The company continues to be buying shares up like crazy at these prices. They believe that is capital well spent. I do as well!

An excerpt from their recent 3rd quarter 2019 results –

Utilizing in-place normal course issuer bids (“NCIBs”), we purchased 2,046,757 of BPY units and BPR shares in the third quarter of 2019 at an average price of $19.10 per unit/share.

Subsequent to quarter-end, we purchased 1,041,067 additional BPY units at an average price of $19.14 per unit/share.

So they are basically buying back the shares at current prices… I was too!

We added an additional 41 shares of bpy.un to the portfolio last week at $25.52 per share. This will add $54.12 usd  to our yearly forward income.

Is Bpy a buy?

The First time I purchased Brookfield property partners in January 2019, we got them for $21.93 per share. While the price isn’t as cheap, I don’t mind dollar cost averaging up. I think the stock is and has been on sale.

Currently Bpy.un has a P/E Ratio of 13.7x. Offers a 6.78% dividend yield (in Canadian dollars) and has raised it the last 6 years. It’s 5 year dividend growth rate is 20.3, but obviously that’s inflated. They plan to raise it 5-8% a year going forward, which is still a solid raise.




Conclusion

The Brookfield family as a whole has been doing fantastic, while bpy has been the laggard of the bunch since the ggp acquisition. (I have actually been debating selling some of my Brookfield renewable shares since they have crossed the 6% portfolio mark)

Overall the market continues setting new highs, but there is still some deals out there. In total I now own 254 shares of bpy.un and its currently over 4% of my portfolio. This is now a full position for me, until that percentage of my dividend portfolio drops.

What do you think of my recent purchase? Where did you allocate all of your bonus money this month?

btw – Happy Thanksgiving to my American friends.

Cheers!

Long – Bpy.un

12 Responses

  1. Great purchases, Rob. Keep building those positions up.

    R2R

  2. Nice purchases, Rob! I used to own Box.un by Brookfield and did well on the position. I keep hearing everyone rave about Disney Plus too. Keep it up man.
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    • Rob says:

      hey Graham, thanks

      Yeah the brookfield family has been doing very well. Dunno much about box.un, like which sector it was but sounds like you did well on it!
      cheers

  3. May says:

    I also recently bought 400 shares of BPY in my taxable account. I like the USD distributions. I would like to use the USD to buy things on US site or go to international travels.

  4. PCI –

    Adding to a current position, rounding out a position and seeing that forward income boost up – LOVE IT. Keep at it PCI.

    -Lanny

  5. Good stuff Rob!

    I’m a big fan of the Brookfield group myself, seems like they’re always adding to their asset base which is good news for investors

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