Author Topic: BAM - Brookfield Asset Management  (Read 594524 times)

petec

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Re: BAM - Brookfield Asset Management
« Reply #1840 on: November 25, 2020, 12:12:51 AM »
Norbord being bought by West Fraser. By my maths BAM will have 19% of the merged entity worth $1.7bn.
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tiddman

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Re: BAM - Brookfield Asset Management
« Reply #1841 on: November 25, 2020, 07:38:06 AM »
Flatt of course is pretty sanguine. The comments about cap rates are interesting. It is amazing that they recently sold a partial interest in a London tower at a cap rate below 4%. I think that is the first time I've ever seen that. Imagine being the buyer and locking in a < 4% return. If cap rates came down from say 5% to 4% broadly that's a 20% increase to equity value.

He seems pretty committed to the ideas that 0% rates will be around for a while and that there will be no interruption or disruption in the cash flows from office towers.  I tend to agree but these are key assumptions. A falling cap rate only leads to higher equity value if the income remains steady.

The story with retail is different. Retailers tend to sign 3-5 year leases with their malls as compared to 10-20 year leases in office towers. So malls are much more subject to economic trends and cycles. I think it is hard to make such long term predictions here.

The market is certainly believing that the REITs broadly will be fine. Guess we'll see.

ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1842 on: Today at 12:27:58 PM »
It is really interesting to see how the listed C-Corps for the renewables and infrastructure subs are massively outperforming the listed LPs.  Could the K1-producing LPs really be that much of a discount?  I get the you have forced index buying here for the C-Corps, but something seems off at this point.  For example over the past 6 months:

BIP vs. BIPC: +18.03% vs. +44.73%
BEP vs. BEPC: +49.28% vs. +85.27%

I mean with this type of valuation - or maybe even price difference - could anyone see BAM changing the structures of the LP's to C-Corps more broadly? 

-VM

gokou3

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Re: BAM - Brookfield Asset Management
« Reply #1843 on: Today at 02:26:58 PM »
It is really interesting to see how the listed C-Corps for the renewables and infrastructure subs are massively outperforming the listed LPs.  Could the K1-producing LPs really be that much of a discount?  I get the you have forced index buying here for the C-Corps, but something seems off at this point.  For example over the past 6 months:

BIP vs. BIPC: +18.03% vs. +44.73%
BEP vs. BEPC: +49.28% vs. +85.27%

I mean with this type of valuation - or maybe even price difference - could anyone see BAM changing the structures of the LP's to C-Corps more broadly? 

-VM

BBU is the remaining LP that does not yet have a C-Corp.  BPY already has a REIT version and BAM itself is already a C-Corp.