Series R Dividend Rates
Brookfield Office Properties Announces Reset Dividend Rates and Conversion Options For Series R Shares
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Brookfield Office Properties has reset the dividend rate on its Class AAA Series R Preference Shares. Starting October 1, 2026, shareholders will receive a fixed quarterly dividend of $0.4268125 per share, or 6.829% annually National Post, for the next five years through September 30, 2031.
Shareholders have a new choice. On September 30, 2026, they can convert Series R Shares into Class AAA Series S Shares, which pay a floating rate tied to Canadian treasury bills Toronto Sun. If fewer than 1 million Series R Shares remain after that date, all remaining shares will convert automatically.
A Fixed Dividend For The Next Five Years
The new dividend rate locks in 6.829% annually for Series R shareholders through 2031 Recorder. This replaces the previous rate and gives investors predictability. Holders will receive $0.4268125 per share each quarter if the dividend is declared. This rate is set for exactly five years, after which another reset may occur.
Conversion Option To Floating-Rate Shares
Brookfield is offering shareholders a conversion opportunity starting September 30, 2026 Leader-Post. Series R Shares can convert into Series S Shares, which pay a floating dividend. Series S rates are set at 3.48% above the annual yield on three-month Canadian government treasury bills. This option lets investors switch to variable-rate income if they prefer.
Automatic Conversion If Shares Fall Below Threshold
An automatic conversion trigger activates if the market shrinks below 1 million outstanding Series R Shares The Whig. When that happens, all remaining shares automatically convert into Series S Shares. This ensures the floating-rate shares remain the primary vehicle. It removes the need for shareholders to make an active choice if liquidity declines too far.
Why Brookfield Made This Change
Preference shares reset their rates periodically to reflect market conditions. The 6.829% rate reflects current credit spreads and rates Pembroke Observer. Offering a conversion option gives investors flexibility in a changing interest-rate environment. For income-focused investors, the fixed rate provides certainty. For those seeking upside, the floating Series S option ties payments to short-term rates.
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