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.
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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