racemize

A good majority of the BPY assets were "core plus" I believe, so they would do well in perpetual capital vehicles. In that case, they would collect the same (or better) fee revenues, lose distributions, but get a gain up to NAV. I imagine there will be a variety of things they do, depending on the assets. e.g., some malls will be in the redevelopment category.

These were installed outside the house, and they have a anti-freeze feature that works... when there is power. I thought through it ahead of time and dripped both the hot water and the cold water (event though it was obviously not hot) in order to keep the water flowing through the tankless water heater. Our tenant (in the same neighborhood) did not. And apparently almost everyone else didn't either. Ours came back online and works fine, everyone that didn't (we were out of power for > 48 hours with temperatures as low as 7 F) had theirs burst and then when they started thawing, all of them across the neighborhood starting gushing water outside. It appears most didn't do any interior damage, but we now need something like 25 tankless water heater replacements in the neighorhood. We are calling one plumber for all of us, but... I'm sure that's not going to go well. How many of those are available at one moment? We will find out! The amount of damage and repairs are very high. Could be a long time to get stuff fixed here. Also, food shortage is starting to happen. Looks like HEB is ready to deliver as soon as we thaw, so only a day or so to go. That's actually not so bad. Gushing water outside the house is cheap. Gushing on the top floor of a house, spilling on the floors and running through the drywall to the main floor is expensive. But, simply needing to plumb in a new water heater outdoors? That's actually okay. Presumably there will also be cases where a house's plumbing was run through poorly insulated exterior walls. When those pipes freeze and break, that will get expensive (I know of a case in my social circle where a house froze, the pipes burst, then thawed and the water ran freely for a couple of days. It cost CAD$40k just for the building materials to repair that damage). SJ Yeah, the damage in our neighborhood should be relatively cheap. The stories I've read in apartment buildings and for places without good insulation (or on pier and beam, which is common here) are a different story.

These were installed outside the house, and they have a anti-freeze feature that works... when there is power. I thought through it ahead of time and dripped both the hot water and the cold water (event though it was obviously not hot) in order to keep the water flowing through the tankless water heater. Our tenant (in the same neighborhood) did not. And apparently almost everyone else didn't either. Ours came back online and works fine, everyone that didn't (we were out of power for > 48 hours with temperatures as low as 7 F) had theirs burst and then when they started thawing, all of them across the neighborhood starting gushing water outside. It appears most didn't do any interior damage, but we now need something like 25 tankless water heater replacements in the neighorhood. We are calling one plumber for all of us, but... I'm sure that's not going to go well. How many of those are available at one moment? We will find out! The amount of damage and repairs are very high. Could be a long time to get stuff fixed here. Also, food shortage is starting to happen. Looks like HEB is ready to deliver as soon as we thaw, so only a day or so to go.

What sorts of claims do you anticipate? Property damage from frozen pipes, business interruption, or something else? Those types of claims can definitely accumulate, but I guess I really hadn't considered the possibility that the property damage would rival a modest hurricane. SJ The amount of damage happening in Texas may be quite large. I don't know how large relative to a hurricane, but it is all over the state. In our neighborhood 1/3-1/2 of the tankless water heaters just blew out. Lots of stories of pipes breaking and ruining entire floors of apartment buildings/houses. 911/firefighters can't respond to those at all for the most part because they are less urgent than whatever else is going on.

Refused to comment on BB, several questions on it. All shorts closed.

What was said? Rough version: Called in and told him he needed to step away, he wasn't paying attention anymore, and had lost his touch. Continued by saying that Prem didn't understand any of the companies he was investing in and wasn't doing any detailed analysis on microeconomics, his partners agreed but were Canadian so too nice to tell him, and the bankers were cowards not asking hard questions because Canada doesn't have enough good companies.

wow, which one of you just went off on Prem on the call?

Pelosi didn’t ask for $2k checks?

Apparently BB is making the rounds on various YOLO places, e.g., WSB, TikTok. (This is what I hear anyway)

I think the main issue is that the returns aren't that good over time, unless you have big scale. Jefferies for a long time was barely able to do 10% RoTCE (IIRC anyway, it's been a while). Their returns are looking better these days though (finally). GS ROE hasn't been that great either. That being said, if you can get scale, it seems to work decently.

Don't be too optimistic. Based on prior deals - e.g. TOO, GGP, TERP - it may only be a 5-10% sweetening and the stock is already trading at 3% above the $16.50 first offer price. TOO price went up significantly, but the initial offer was very very low/egregious (below market price). There is enough “discovery” here that I think the sweetening can’t be too high. I’d guess none or GGP level. (I sold and switched to BAM so that was my logic anyway).

FYI, just got off the phone with IR. BPYU is going to go through a forced conversion to BPY units, so this buyout will apply to all holders (eventually). Whether or not this is taxable (e.g., taking BAM units) is as of yet unknown.

It is worth noting that the dividend incentives flowing up to BAM are going to be a significant headwind compared to say the first 4-5 years. Probably will do quite well still, but not as good as the beginning years.

I own KKR, BAM, and BX—all of these guys have the same IRRs for their funds and have the same tailwinds. BAM has done well but they are all close to each other on returns generally. Ride the alt tailwind!

There was a gap earlier in the summer, but I think the tender offer made them get a lot closer. Not sure though.