PrefBlog

Brompton Group has announced:

Power & Infrastructure Split Corp. (the “Fund”) is pleased to announce it is undertaking a treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively) (the “Offering”).

The sales period for the Offering is expected to end on Thursday, June 4, 2026. The Offering is expected to close on or about June 11, 2026 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

The Class A Shares will be offered at a price of $13.60 per Class A Share for a distribution rate of 8.8% on the issue price.(1)(2) The Preferred Shares will be offered at a price of $10.40 per Preferred Share to yield 6.2%.(2) The closing price on the TSX for each of the Class A Shares and the Preferred Shares on June 2, 2026 were $13.75 and $10.48, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value (“NAV”) per unit of the Company (calculated as at June 2, 2026), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the Offering. The Offering is being led by RBC Capital Markets.

The Company invests in a globally diversified and actively managed portfolio (the “Portfolio”) consisting primarily of dividend paying securities of power and infrastructure companies selected by Brompton Funds Limited.

The investment objectives for the Class A Shares are to provide their holders with regular monthly non-cumulative cash distributions and to provide holders of Class A Shares with the opportunity for capital appreciation through exposure to the Portfolio. Over the past 5 years, the Class A Share has generated a 17.5% per annum return.(2)

The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to holders of Preferred Shares on May 29, 2031. The distribution rate for the term from May 30, 2026 to May 29, 2031 is $0.64 per Preferred Share per annum (6.4% on the par value of $10.00) payable quarterly. Over the past 5 years, the Preferred Share has generated a 5.1% per annum return.(2) Purchasers of Preferred Shares in this Offering will be eligible to receive the June 2026 quarterly dividend when the dividend is declared.

So the NAVPU is 22.52 and they’re selling these Whole Units for a total of 24.00. Nice business!

PWI.PR.A now pays 6.4% p.a. after its recent extension to 2031-5-29.

Brookfield Corporation has announced:

the reset dividend rate on its Cumulative Class A Preference Shares, Series 24 (the “Series 24 Shares”) (TSX: BN.PR.R) for the five years commencing July 1, 2026 and ending June 30, 2031.

If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2026 will be paid at an annual rate of 5.432% ($0.3395 per share per quarter).

Holders of Series 24 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2026, to convert all or part of their Series 24 Shares, on a one-for-one basis, into Cumulative Class A Preference Shares, Series 25 (the “Series 25 Shares”), effective June 30, 2026. The quarterly floating rate dividends on the Series 25 Shares will be paid at an annual rate, calculated for each quarter, of 2.30% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2026 to September 30, 2026 dividend period for the Series 25 Shares will be 1.16525% (4.623% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.2913125 per share, payable on September 30, 2026.

Holders of Series 24 Shares are not required to elect to convert all or any part of their Series 24 Shares into Series 25 Shares.

As provided in the share conditions of the Series 24 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 24 Shares outstanding after June 30, 2026, all remaining Series 24 Shares will be automatically converted into Series 25 Shares on a one-for-one basis effective June 30, 2026; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 25 Shares outstanding after June 30, 2026, no Series 24 Shares will be permitted to be converted into Series 25 Shares. There are currently 10,808,027 Series 24 Shares outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 25 Shares effective upon conversion. Listing of the Series 25 Shares is subject to Brookfield fulfilling all the listing requirements of the TSX.

BN.PR.R was issued as BAM.PR.R, a FixedReset 5.40%+230 that commenced trading 2010-1-14 after being announced 2010-1-5. It reset to 3.014% in 2016; I recommended against conversion but there was a 14% conversion to the FloatingReset BAM.PR.S anyway. The issue reset to 3.237% in 2021, at which time the FloatingResets were forcibly converted back to the FixedReset. The ticker changed in December, 2022.

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P. has announced:

the reset dividend rate on its Class AAA Preference Shares, Series N (“Series N Shares”) (TSX: BPO.PR.N).

Series N Shares

If declared, the fixed quarterly dividends on the Series N Shares for the five years commencing July 1, 2026 and ending June 30, 2031 will be paid at an annual rate of 6.2060% ($0.387875 per share per quarter).

Holders of Series N Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2026, to convert all or part of their Series N Shares, on a one-for-one basis, into Class AAA Preference Shares, Series O (the “Series O Shares”), effective June 30, 2026.

The quarterly floating rate dividends on the Series O Shares have an annual rate, calculated for each quarter, of 3.07% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the July 1, 2026 to September 30, 2026 dividend period for the Series O Shares will be 1.358580% (5.39% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.339645 per share, payable on September 30, 2026.

Holders of Series N Shares are not required to elect to convert all or any part of their Series N Shares into Series O Shares.

As provided in the share conditions of the Series N Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series N Shares outstanding after June 30, 2026, all remaining Series N Shares will be automatically converted into Series O Shares on a one-for-one basis effective June 30, 2026; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series O Shares outstanding after June 30, 2026, no Series N Shares will be permitted to be converted into Series O Shares. There are currently 10,875,438 Series N Shares outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series O Shares effective upon conversion. Listing of the Series O Shares is subject to Brookfield fulfilling all the listing requirements of the TSX and, upon approval, the Series O Shares will be listed on the TSX under the trading symbol “BPO.PR.O”.

BPO.PR.N was issued a FixedReset 6.15%+307, that commenced trading 2010-1-20 after being announced 2010-1-11. The issue attracted some unfavourable comment on issue due to the relatively long call lock-out period – which shows complete misunderstanding of the investment impact of an issuer call option, but we’ll ignore that. The issue reset to 3.782% in 2016; I recommended against conversion and there was no conversion.The issue reset to 4.007% in 2021, with no conversion. It is tracked by HIMIPref™ but relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.

Brookfield Office Properties Inc. has announced (on 2026-05-19):

that it intends to redeem all 7,982,204 of its outstanding Class AAA Preference Shares, Series CC (TSX: BPO.PR.C), all of which are held by CDS & Co., as nominee of CDS Clearing and Depositary Services Inc., for cash on June 30, 2026. The redemption price for each such share will be C$25.00. Separately from the redemption price, the final quarterly cash dividend of C$0.382313 per share, will be paid in the usual manner on June 30, 2026, to holders of record on June 15, 2026.

Notice of Redemption has been sent to CDS & Co. Payment of the redemption price will be made to all beneficial holders of the Series CC Shares on or after June 30, 2026 through the facilities of CDS & Co.

BPO.PR.C was issued as a FixedReset, 6.00%+518M600, that commenced trading 2016-4-27 after being announced 2016-4-18. It reset to 6.12% in 2021 with no conversion. The issue has been tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

Thanks to the Assiduous Reader who brought this to my attention!