Brookfield DTLA Says It Intends to Resume Dividend Payments on Preferred Stock by 2023
Brookfield Office Properties’ Chief Investment Officer: Payment of Accrued Dividends “Within Eight Years” is “a Conservative Estimate”
In a sworn affidavit filed in court, G. Mark Brown, a board member of Brookfield DTLA Office Fund Trust Investor Inc. (“Brookfield DTLA”) and the Global Chief Investment Officer of Brookfield Office Properties has stated that “it is highly likely that Brookfield DTLA will begin paying the accrued and unpaid dividends on the preferred stock within the next eight years.” Mr. Brown further states that “It is not unrealistic that [Brookfield DTLA] would begin paying accrued dividends prior to year eight” and that eight years is “a conservative estimate” of when a future payment of dividends “will” be paid to the holders of Brookfield DTLA Series A preferred stock. A copy of Mr. Brown’s affidavit can be viewed clicking the pdf link above.
On March 31, 2015, Brookfield DTLA filed its Form 10-K, which stated, among other things, that “Brookfield DTLA may not declare and pay dividends on the Series A preferred stock in the future." View a copy of the Brookfield DTLA Form 10-K here.
Mr. Brown submitted his affidavit on October 13, 2015, to the Circuit Court of Baltimore City, Maryland in support of Brookfield DTLA’s settlement of a lawsuit brought by a former preferred stockholder of MPG Office Trust, Inc. (“MPG”) in connection with Brookfield Office Properties’ 2013 acquisition of MPG. In the settlement of that case, Brookfield DTLA has agreed to make a payment of $2.25 in dividends that had accrued on former MPG Series A preferred stock (NYSE: MPG-PA), which was converted into Brookfield DTLA Series A preferred stock (NYSE: DTLA-P) in the acquisition. That payment will be made to holders of Brookfield DTLA preferred stock as of a record date to be set promptly once the court approves the settlement. MPG stopped paying dividends on the preferred stock in 2008, and dividends have accrued since that time.
Lead Counsel for Plaintiff is Michael Wagner of Kessler Topaz Meltzer & Check, LLP, and Plaintiff is also represented by Joe White and Jon Stein of Saxena White, P.A. Preferred shareholders seeking more information concerning this lawsuit or the settlement are urged to contact Lead Counsel:
Michael Wagner, Esq.
Kessler Topaz Meltzer & Check, LLP
280 King of Prussia Road
Radnor, PA 19087
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.