Brookfield Property Partners LP (TSX:BPY.UN)(NASDAQ:BPY) is starting to look very attractive as an income investment, especially as lower rates continue to drive investors into high-yield stocks.
This is one of the many companies under the umbrella of Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE:BAM), an internationally diversified Canadian investment behemoth primarily focused on investment in real assets.
With interest rates going lower, I believe that Brookfield Property Partners is going to be a great investment for income investors over the long term.
One reason for my optimism is the fact that this company invests in real estate. It holds a number of assets in multiple countries, including North America, Europe, and Australia.
The beautiful aspect of its investments is that they are real-estate focused with a large portion focused on residential multi-family properties, student housing, and a wide variety of other rental estate endeavors.
This will be especially beneficial in the coming years as real estate prices continue to climb on the back of lower rates worldwide, raising the property prices around the globe while increasing the demand for rental living spaces.
Aside from this core focus on rental residential living, Brookfield Property Partners also owns a number of other types of real estate investments. The company owns storage facilities, retail locations, and industrial real estate, which rounds out its property investment portfolio.
The distribution is now sitting at around 7%, which makes this a perfect entry point for income-focused investors. Given that the company is also targeting 5-8% annual distribution growth, you can be rest assured that you will be getting some fantastic, inflation-beating income in the coming years.
This distribution is paid out in USD, which is another bonus for investors looking to build up their USD accounts without paying ridiculous prices to convert their Canadian money to American dollars.
Whether you’re a retired snowbird or someone who simply makes frequent trips to the United States, buying these shares on the Canadian side of your account and journaling the distributions to the American side will allow you to build your USD cash pile from Brookfield Property Partners’ ever-increasing distribution yield.
The biggest danger associated with this company is a global real estate meltdown. But even if a severe downturn does occur, Brookfield has a reputation for capitalizing on undervalued assets in a crisis.
In fact, even though there may be a short-term impact on the company, a real estate meltdown may be a benefit for the company long-term as they add to their holdings.
A great long-term play on real assets
Brookfield Property Partners is an amazing company that will allow you to gain access to global assets which you would have a very difficult time acquiring on your own. The wide net it casts encompasses a number of asset classes, such as multi-family housing, which should benefit from the effects of lower interest rates over the long run.
If you want a great yield, diversified asset base, and an excellent management team, look no further than Brookfield Property Partners.
