Exhibit 99.1
BROOKFIELD PROPERTY REIT INC. DECLARES QUARTERLY DIVIDENDS
BROOKFIELD NEWS, November 6, 2020 – Brookfield Property REIT Inc. (NASDAQ: BPYU) announced today that its Board of Directors has declared a quarterly dividend of $0.3325 per share on its Class A Stock payable on December 31, 2020 to shareholders of record at the close of business on November 30, 2020.
The Board of Directors has also declared a quarterly dividend on the 6.375% Series A Cumulative Redeemable Preferred Stock (NASDAQ: BPYUP) of $0.39844 per share payable on January 1, 2021, to stockholders of record on December 15, 2020.
# # #
About Brookfield Property REIT Inc.
Brookfield Property REIT Inc. (“BPYU”) is a subsidiary of Brookfield Property Partners L.P., (NASDAQ: BPY; TSX: BPY.UN) (“BPY”) one of the world’s premier real estate companies, with approximately $88 billion in total assets. BPYU was created as a public security that is intended to offer economic equivalence to an investment in BPY in the form of a U.S. REIT stock.
Brookfield Property Partners are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, logistics, hospitality, self-storage, student housing and manufactured housing assets.
Further information is available at bpy.brookfield.com/bpyu.
Contact:
Matt Cherry
Senior Vice President, Investor Relations
Tel.: (212) 417-7488
Email: Matthew.Cherry@brookfield.com
CONSOLIDATED BALANCE SHEETS
| | | Sep. 30, | | | Dec. 31, | |
| (US$ Millions) | | 2020 | | | 2019 | |
| Assets | | | | | | | | |
| Investment properties | | $ | 73,246 | | | $ | 75,511 | |
| Equity accounted investments in properties | | | 19,573 | | | | 20,764 | |
| Property, plant and equipment | | | 4,980 | | | | 7,278 | |
| Financial assets | | | 1,448 | | | | 1,250 | |
| Accounts receivable and other | | | 5,441 | | | | 5,015 | |
| Cash and cash equivalents | | | 1,803 | | | | 1,438 | |
| Assets held for sale | | | 1,757 | | | | 387 | |
| Total Assets | | $ | 108,248 | | | $ | 111,643 | |
| Liabilities | | | | | | | | |
| Corporate borrowings | | $ | 2,721 | | | $ | 1,902 | |
| Asset-level debt obligations | | | 45,253 | | | | 47,466 | |
| Subsidiary borrowings, non-recourse to BPY | | | 6,574 | | | | 6,022 | |
| Capital securities | | | 3,037 | | | | 3,075 | |
| Deferred tax liability | | | 2,615 | | | | 2,515 | |
| Accounts payable and other liabilities | | | 5,784 | | | | 5,588 | |
| Liabilities associated with assets held for sale | | | 825 | | | | 140 | |
| Equity | | | | | | | | |
| Preferred equity | | | 699 | | | | 420 | |
| General partner | | | 4 | | | | 4 | |
| Limited partners | | | 11,706 | | | | 13,274 | |
| Non-controlling interests attributable to: | | | | | | | | |
| Limited partner units of the operating partnership held by Brookfield Asset Management Inc. | | | 12,327 | | | | 13,200 | |
| Limited partner units of Brookfield Office Properties Exchange LP | | | 74 | | | | 87 | |
| FV LTIP units of the operating partnership | | | 51 | | | | 35 | |
| Class A shares of Brookfield Property REIT Inc. | | | 1,127 | | | | 1,930 | |
| Interests of others in operating subsidiaries and properties | | | 15,451 | | | | 15,985 | |
| Total Equity | | | 41,439 | | | | 44,935 | |
| Total Liabilities and Equity | | $ | 108,248 | | | $ | 111,643 | |
Brookfield Property Partners L.P. 1
CONSOLIDATED STATEMENT OF OPERATIONS
| | | Three Months Ended | | | Nine Months Ended | |
| | | Sep. 30, | | | Sep. 30, | |
| (US$ Millions) | | 2020 | | | 2019 | | | 2020 | | | 2019 | |
| Commercial property and hospitality revenue | | $ | 1,545 | | | $ | 1,852 | | | $ | 4,666 | | | $ | 5,706 | |
| Direct commercial property and hospitality expense | | | (677 | ) | | | (776 | ) | | | (1,998 | ) | | | (2,403 | ) |
| | | | 868 | | | | 1,076 | | | | 2,668 | | | | 3,303 | |
| Investment and other revenue | | | 91 | | | | 165 | | | | 307 | | | | 410 | |
| Share of net earnings from equity accounted investments | | | 76 | | | | 409 | | | | (717 | ) | | | 1,499 | |
| | | | 1,035 | | | | 1,650 | | | | 2,258 | | | | 5,212 | |
| Expenses | | | | | | | | | | | | | | | | |
| Interest expense | | | (642 | ) | | | (738 | ) | | | (1,950 | ) | | | (2,194 | ) |
| Depreciation and amortization | | | (83 | ) | | | (86 | ) | | | (253 | ) | | | (256 | ) |
| General and administrative expense | | | (205 | ) | | | (214 | ) | | | (596 | ) | | | (656 | ) |
| Investment and other expense | | | (5 | ) | | | — | | | | (18 | ) | | | (10 | ) |
| | | | 100 | | | | 612 | | | | (559 | ) | | | 2,096 | |
| Fair value gains, net | | | (156 | ) | | | 449 | | | | (1,269 | ) | | | (273 | ) |
| Income tax (expense) benefit | | | (79 | ) | | | (191 | ) | | | (192 | ) | | | (217 | ) |
| Net income | | $ | (135 | ) | | | 870 | | | $ | (2,020 | ) | | $ | 1,606 | |
| | | | | | | | | | | | | | | | | |
| Net income attributable to: | | | | | | | | | | | | | | | | |
| General partner | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Limited partners | | | (107 | ) | | | 218 | | | | (919 | ) | | | 418 | |
| Non-controlling interests: | | | | | | | | | | | | | | | | |
| Limited partner units of the operating partnership held by Brookfield Asset Management Inc. | | | (109 | ) | | | 218 | | | | (923 | ) | | | 427 | |
| Limited partner units of Brookfield Office Properties Exchange LP | | | (1 | ) | | | 2 | | | | (6 | ) | | | 3 | |
| FV LTIP units of the operating partnership | | | — | | | | — | | | | (3 | ) | | | — | |
| Class A shares of Brookfield Property REIT | | | (12 | ) | | | 36 | | | | (117 | ) | | | 86 | |
| Interests of others in operating subsidiaries and properties | | | 94 | | | | 396 | | | | (52 | ) | | | 672 | |
| | | $ | (135 | ) | | $ | 870 | | | $ | (2,020 | ) | | $ | 1,606 | |
Brookfield Property Partners L.P. 2
RECONCILIATION OF NON-IFRS MEASURES
| | | Three Months Ended | | | Nine Months Ended | |
| | | Sep. 30, | | | Sep. 30, | |
| (US$ Millions) | | 2020 | | | 2019 | | | 2020 | | | 2019 | |
| Commercial property and hospitality revenue | | $ | 1,545 | | | $ | 1,852 | | | $ | 4,666 | | | $ | 5,706 | |
| Direct commercial property and hospitality expense | | | (677 | ) | | | (776 | ) | | | (1,998 | ) | | | (2,403 | ) |
| NOI | | | 868 | | | | 1,076 | | | | 2,668 | | | | 3,303 | |
| Investment and other revenue | | | 91 | | | | 165 | | | | 307 | | | | 410 | |
| Share of equity accounted income excluding fair value gains | | | 151 | | | | 177 | | | | 516 | | | | 622 | |
| Interest expense | | | (642 | ) | | | (738 | ) | | | (1,950 | ) | | | (2,194 | ) |
| General and administrative expense | | | (205 | ) | | | (214 | ) | | | (596 | ) | | | (656 | ) |
| Investment and other expense | | | (5 | ) | | | — | | | | (18 | ) | | | (10 | ) |
| Depreciation and amortization of non-real estate assets | | | (18 | ) | | | (14 | ) | | | (53 | ) | | | (45 | ) |
| Non-controlling interests of others in operating subsidiaries and properties in FFO | | | (106 | ) | | | (191 | ) | | | (296 | ) | | | (620 | ) |
| FFO | | | 134 | | | | 261 | | | | 578 | | | | 810 | |
| Depreciation and amortization of non-real estate assets, net(1) | | | 13 | | | | 10 | | | | 36 | | | | 31 | |
| Transaction costs(1) | | | 7 | | | | 35 | | | | 5 | | | | 72 | |
| Gains/losses on disposition of non-investment properties(1) | | | — | | | | 1 | | | | 3 | | | | — | |
| Imputed Interest(2) | | | 5 | | | | 15 | | | | 21 | | | | 42 | |
| LP Investments realized gains(3) | | | 3 | | | | — | | | | 17 | | | | 87 | |
| BSREP III earnings(4) | | | 2 | | | | 2 | | | | 5 | | | | 11 | |
| Company FFO and realized gains | | $ | 164 | | | $ | 324 | | | $ | 665 | | | $ | 1,053 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| FFO | | $ | 134 | | | $ | 261 | | | $ | 578 | | | $ | 810 | |
| Depreciation and amortization of real estate assets | | | (65 | ) | | | (72 | ) | | | (200 | ) | | | (211 | ) |
| Fair value (losses) gains, net | | | (156 | ) | | | 449 | | | | (1,269 | ) | | | (273 | ) |
| Share of equity accounted income - Non FFO | | | (75 | ) | | | 232 | | | | (1,233 | ) | | | 877 | |
| Income tax (expense) benefit | | | (79 | ) | | | (191 | ) | | | (192 | ) | | | (217 | ) |
| Non-controlling interests of others in operating subsidiaries and properties in non-FFO | | | 12 | | | | (205 | ) | | | 348 | | | | (52 | ) |
| Non-controlling interests of others in operating subsidiaries and properties | | | 94 | | | | 396 | | | | (52 | ) | | | 672 | |
| Net income | | $ | (135 | ) | | $ | 870 | | | $ | (2,020 | ) | | $ | 1,606 | |
| (1) Presented net of non-controlling interests on a proportionate basis. |
| (2) Represents imputed interest on commercial developments accounted for under the equity method under IFRS. |
| (3 )Net of associated carried interest to be due at a future date. |
| (4) BSREP III is now accounted for as a financial asset which results in FFO being recognized in line with distributions. As such, the BSREP III earnings adjustment reflects our proportionate share of the Company FFO. |
Brookfield Property Partners L.P. 3
NET INCOME PER UNIT
| | | Three months ended | |
| | | Sep. 30, 2020 | | | Sep. 30, 2019 | |
| (US$ Millions, except per unit amounts) | | Net income attributable to Unitholders | | | Average
number of
units | | | Per unit | | | Net income attributable to Unitholders | | | Average number of units | | | Per unit | |
| Basic | | $ | (229 | ) | | | 933.5 | | | $ | (0.25 | ) | | $ | 474 | | | | 950.1 | | | $ | 0.50 | |
| Preferred share dividends | | | (11 | ) | | | — | | | | — | | | | (5 | ) | | | — | | | | — | |
| Number of units on conversion of preferred shares(1) | | | — | | | | 70.1 | | | | — | | | | — | | | | 70.1 | | | | — | |
| Basic per IFRS | | | (240 | ) | | | 1,003.6 | | | | (0.24 | ) | | | 469 | | | | 1,020.2 | | | | 0.46 | |
| Dilutive effect of conversion of capital securities and options(2) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Fully-diluted per IFRS | | $ | (240 | ) | | | 1,003.6 | | | $ | (0.24 | ) | | $ | 469 | | | | 1,020.2 | | | $ | 0.46 | |
| (1) IFRS requires the inclusion of preferred shares that are mandatorily convertible into units at a price of $25.70 without an add back to earnings of the associated carry on the preferred shares. |
| (2) For the three months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. |
| | | Three months ended | |
| | | Sep. 30, 2020 | | | Sep. 30, 2019 | |
| (US$ Millions, except per unit amounts) | | Net income attributable to Unitholders | | | Average
number of
units | | | Per unit | | | Net income attributable to Unitholders | | | Average number of units | | | Per unit | |
| Basic per management | | $ | (229 | ) | | | 933.5 | | | $ | (0.25 | ) | | $ | 474 | | | | 950.1 | | | $ | 0.50 | |
| Preferred share dividends | | | (11 | ) | | | — | | | | — | | | | (5 | ) | | | — | | | | — | |
| Dilutive effect of conversion of preferred shares(1) | | | 29 | | | | 70.1 | | | | 0.41 | | | | 29 | | | | 70.1 | | | | 0.41 | |
| Dilutive effect of conversion of capital securities and options(2) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Fully-diluted per management | | $ | (211 | ) | | | 1,003.6 | | | $ | (0.21 | ) | | $ | 498 | | | | 1,020.2 | | | $ | 0.49 | |
| (1) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry. |
| (2) For the three months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. |
Brookfield Property Partners L.P. 4
NET INCOME PER UNIT
| | | Nine months ended | |
| | | Sep. 30, 2020 | | | Sep. 30, 2019 | |
| (US$ Millions, except per unit amounts) | | Net income attributable to Unitholders | | | Average number of units | | | Per unit | | | Net income attributable to Unitholders | | | Average number of units | | | Per unit | |
| Basic | | $ | (1,968 | ) | | | 937.5 | | | $ | (2.10 | ) | | $ | 934 | | | | 957.6 | | | $ | 0.98 | |
| Preferred share dividends | | | (31 | ) | | | — | | | | — | | | | (8 | ) | | | — | | | | — | |
| Number of units on conversion of preferred shares(1) | | | — | | | | 70.1 | | | | — | | | | — | | | | 70.1 | | | | — | |
| Basic per IFRS | | | (1,999 | ) | | | 1,007.6 | | | | (1.98 | ) | | | 926 | | | | 1,027.7 | | | | 0.90 | |
| Dilutive effect of conversion of capital securities and options(2) | | | — | | | | — | | | | — | | | | 8 | | | | 9.0 | | | | 0.89 | |
| Fully-diluted per IFRS | | $ | (1,999 | ) | | | 1,007.6 | | | $ | (1.98 | ) | | $ | 934 | | | | 1,036.7 | | | $ | 0.90 | |
| (1) IFRS requires the inclusion of preferred shares that are mandatorily convertible into units at a price of $25.70 without an add back to earnings of the associated carry on the preferred shares. |
| (2) For the nine months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. |
| | | Nine months ended | |
| | | Sep. 30, 2020 | | | Sep. 30, 2019 | |
| (US$ Millions, except per unit amounts) | | Net income attributable to Unitholders | | | Average number of units | | | Per unit | | | Net income attributable to Unitholders | | | Average number of units | | | Per unit | |
| Basic per management | | $ | (1,968 | ) | | | 937.5 | | | $ | (2.10 | ) | | $ | 934 | | | | 957.6 | | | $ | 0.98 | |
| Preferred share dividends | | | (31 | ) | | | — | | | | — | | | | (8 | ) | | | — | | | | — | |
| Dilutive effect of conversion of preferred shares(1) | | | 88 | | | | 70.1 | | | | 1.26 | | | | 88 | | | | 70.1 | | | | 1.26 | |
| Dilutive effect of conversion of capital securities and options(2) | | | — | | | | — | | | | — | | | | 8 | | | | 9.0 | | | | 0.89 | |
| Fully-diluted per management | | $ | (1,911 | ) | | | 1,007.6 | | | $ | (1.90 | ) | | $ | 1,022 | | | | 1,036.7 | | | $ | 0.99 | |
| (1) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry. |
| (2) For nine months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. |
Brookfield Property Partners L.P. 5
