Is Brookfield Property Partners (BPYPO) stock Halal?

Preferred stocks like this one often appeal to income-focused investors due to their predictable dividend payments. Brookfield Property Partners operates a diversified portfolio that spans retail, office, and multifamily properties, making the preferred stock indirectly linked to the performance and growth of these sectors. The nature of preferred stock implies priority over common stock when it comes to dividend distributions, adding a layer of security for the income it generates. For Muslim investors, though, the most pressing question is simpler: is Brookfield Property Partners a Halal investment?

Is Brookfield Property Partners Shariah compliant?

Property itself is a permissible asset, which is why real estate attracts Halal investors. The screening question for Brookfield Property Partners is how the portfolio is financed and whether rental income flows from impermissible tenants; the debt cap and the 5% income ceiling of AAOIFI Shariah Standard No. 21 carry the verdict.

Does Brookfield Property Partners pass the business activity test?

The activity screen is only part of the picture this month: Brookfield Property Partners currently fails the non-permissible income, interest-bearing investments, interest-bearing debt and preference share screens, so the overall verdict is not compliant regardless of the business itself. The watch item is the tenant roll: rental income from impermissible businesses counts against the 5% ceiling.

Is Brookfield Property Partners' income Halal?

No. Brookfield Property Partners' income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Brookfield Property Partners meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps: interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has BPYPO re-screened every month. Brookfield Property Partners also fails the preference share screen this month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read REITs: Halal Real Estate for Muslim Investors