Retail REIT to Buy No.2: Brookfield Property Partners LP (BPY)
Dividend Yield: 5%
My final selection is breaking the rules, but in this uncertain retail environment, owning shares in one of the world’s greatest real estate investors makes a heck of a lot of sense in my opinion.
Brookfield Property Partners LP (NYSE:BPY) owns 126 retail properties in the U.S. through its 34% ownership interest in General Growth Properties Inc (NYSE:GGP). Brookfield’s parent, Brookfield Asset Management Inc (NYSE:BAM), owns 68% of BPY’s voting shares.
In addition to its retail portfolio, BPY owns 149 iconic office properties around the world, including Canary Wharf in London and Brookfield Place in New York. With a 91% occupancy rate and an average lease term of eight years, BPY’s revenue just keeps on coming.
If you’ve never heard of BAM, CEO Bruce Flatt and his team are considered truly brilliant. Over the past 20 years, Flatt and company have generated an 18% annual return for shareholders, right up there with Warren Buffett.
This is the smart way to play retail REITs.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.