Brookfield Property Partners Reports First Quarter 2013 Results

Brookfield Property Partners Reports First Quarter 2013 Results 
HAMILTON, BERMUDA -- (Marketwired) -- 05/01/13 --  Brookfield
Property Partners L.P. (NYSE: BPY) (TSX: BPY.UN) today announced
financial results for the quarter ended March 31, 2013 for the
commercial property operations of Brookfield Asset Management Inc.
("Brookfield carve-out"). Brookfield Property Partners also provided
pro forma financial results that reflect the Brookfield carve-out
financial statements with adjustments to give effect to the spinoff
and the acquisition by Brookfield Property Partners of its business
and assets as of March 31, 2013 (in the case of the statement of
financial position data) and January 1, 2012 (in the case of the
statement of operations data). A reconciliation of the Brookfield
carve-out financial results to the pro forma financial results is
provided in Appendix A. 
"Brookfield Property Partners is an ideal security for investors
seeking diversified exposure to best in class real estate on a global
basis," stated Ric Clark, Chief Executive Officer. "We're pleased
that we are now listed on the New York and Toronto stock exchanges
and are pursuing investment opportunities in all sectors and across
multiple geographies." 


 
                                                                            
                                                                            
Pro Forma Financial Results                                                 
                                                                            
(US$ millions) Three months ended March 31,                  2013       2012
                                                        ---------  ---------
Total revenue                                           $   1,125  $     752
Funds from operations ("FFO") (1)                             149        123
Total Return(1)                                               357        526
Net income                                                    539        673
                                                        ---------  ---------
                                                                            
Net income attributable to limited partnership units                        
 ("LP Units")                             
              $      49  $      60
Net income attributable to redeemable/exchangeable                          
 operating partnership units held by Brookfield                             
 ("REUs")                                                     241        297
                                                        ---------  ---------
Net income attributable to LP Units and REUs                  290        357
Net income attributable interests of others in                              
 consolidated subsidiaries                                    249        316
                                                        ---------  ---------
Net income                                              $     539  $     673
                                                        ---------  ---------
                                                                            
                                                         Mar. 31,   Dec. 31,
                                                             2013       2012
                                                        ---------  ---------
Total assets                                            $  47,809  $  47,145
Total liabilities                                          24,953     24,471
Equity attributable to LP Units                             2,011      1,998
Non-controlling interests of others in consolidated                         
 subsidiaries                                              10,974     10,865
Non-controlling interests attributable to REUs              9,871      9,811
                                                        ---------  ---------
                                                                            
(1) FFO and Total Return represent interests attributable to LP Units and   
 REUs. The interests attributable to REUs are presented as non-controlling  
 interests in the pro forma statement of income. See "Pro-forma             
 Reconciliation of NOI, FFO and Total Return to Net Income" below in this   
 news release for the components FFO.                                       

 
FFO for the quarter ended March 31, 2013 was $149 million which was an
increase of $26 million from the prior year period. 
Total Return for the quarter ended March 31, 2013 was $357 million
which was a decrease of $169 million from the prior year period,
primarily a result of significant valuation gains in the prior year
partially offset by the increase in FFO in the current period. 
Net income attributable to LP Units and REUs for the quarter ended
March 31, 2013 was $49 million and $241 million, respectively,
totalling $290 million, a decrease of $67 million from the prior year
period. 
Volume Weighted Average Trading Price  
On April 15, 2013, Brookfield Asset Management Inc. ("Brookfield")
paid a special dividend of one unit of Brookfield Property Partners
per 17.42 shares held by shareholders of record as of March 26, 2013.
On April 15, 2013, the units commenced trading on the New York Stock
Exchange ("NYSE") and the Toronto Stock Exchange ("TSX") under the
symbols "BPY" and "BPY.UN," respectively. Generally, the tax cost of
Brookfield Property Partners units received on March 26, 2013 should
equal their fair market value on that date. Neither U.S. nor Canadian
tax rules specify the method to determine fair market value in this
situation; however, a commonly used method is the weighted average
trading price of the units on the NYSE and TSX for the five trading
days commencing on April 15, 2013 which is $21.8271 and CAD $22.3805
respectively.  
This summary is not intended to be, nor should it be construed to be,
legal or tax advice to any particular holder of Brookfield Property
Partners units, and no representation with respect to the U.S. and
Canadian income tax consequences to any particular holder is made.
Consequently, holders of Brookfield Property Partners units are
advised to consult their own tax advisors with respect to their
particular circumstances. 
Significant Transactions During the First Quarter 
Brookfield Property Partners, directly or through affiliates,
acquired seven real estate assets totaling over $546 million and
disposed of seven real estate assets totaling $308 million,
generating $36 million net proceeds (at share) during the first
quarter of 2013. Highlights from the quarter include: 
Office 


 
--  Sold one non-core office asset, RBC Plaza in Minneapolis, for
    approximately $127 million
--  Entered into merger agreement to acquire MPG Office Trust subsequent
    to quarter end

  
Retail  


 
--  Divested one non-core retail mall for $80 million
--  Acquired $157 million of L.P. interest in Rouse Properties Inc. shares
    and General Growth Properties Inc. shares and warrants subsequent to
    quarter end

  
Multi-family 


 
--  Closed on nine properties for a gross purchase price of $213 million
--  Completed over $240 million value-add multi-family acquisitions in the
    U.S.

  
Industrial 


 
--  Obtained financings at three properties allowing us to return $60
    million of total equity

  
Opportunistic & Other 


 
--  Acquired a Los Angeles
 based office campus consisting of nine
    buildings for $90 million

  
Dividend Declaration  
The Board of Directors of Brookfield Property Partners declared a
quarterly common unit dividend of $0.1277 per unit payable on June
28, 2013 to unitholders of record at the close of business on May 31,
2013. Unitholders resident in the United States will receive payment
in U.S. dollars and unitholders resident in Canada will receive their
dividends in Canadian dollars at the exchange rate on the record
date, unless they elect otherwise. The dividend, calculated for the
period from April 15, 2013 to May 31, 2013, represents an annualized
dividend of $1.00 per unit. 
Additional Information 
Further details regarding the operations of Brookfield Property
Partners are set forth in regulatory filings. A copy of the filings
may be obtained through the website of the SEC at www.sec.gov and on
Brookfield Property Partners' SEDAR profile at www.sedar.com. 
Brookfield Property Partners is a commercial real estate owner,
operator and investor operating globally. Our diversified portfolio
includes interests in over 300 office and retail properties
encompassing approximately 250 million square feet. In addition, we
have interests in approximately 19,800 multi-family units, 29 million
square feet of industrial space and an 18 million square foot office
development pipeline. Our goal is to be the leading global investor
in best in class commercial property assets. For more information,
please visit www.brookfieldpropertypartners.com.  
Forward-Looking Statements 
This news release contains "forward-looking information" within the
meaning of Canadian provincial securities laws and applicable
regulations and "forward-looking statements" within the meaning of
"safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, include statements regarding our
operations, business, financial condition, expected financial
results, performance, prospects, opportunities, priorities, targets,
goals, ongoing objectives, strategies and outlook, as well as the
outlook for North American and international economies for the
current fiscal year and subsequent periods, and include words such as
"expects", "anticipates", "plans", "believes", "estimates", "seeks",
"intends", "targets", "projects", "forecasts", "likely", or negative
versions thereof and other similar expressions, or future or
conditional verbs such as "may", "will", "should", "would" and
"could". 
Although we believe that our anticipated future results, performance
or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on
forward-looking statements and information because they involve known
and unknown risks, uncertainties and other factors, many of which are
beyond our control, which may cause our actual results, performance
or achievements to differ materially from anticipated future results,
performance or achievement expressed or implied by such
forward-looking statements and information.  
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include,
but are not limited to: risks incidental to the ownership and
operation of real estate properties including local real estate
conditions; the impact or unanticipated impact of general economic,
political and market factors in the countries in which we do
business; the ability to enter into new leases or renew leases on
favourable terms; business competition; dependence on tenants'
financial condition; the use of debt to finance our business; the
behavior of financial markets, including fluctuations in interest and
foreign exchanges rates; uncertainties of real estate development or
redevelopment; global equity and capital markets and the availability
of equity and debt financing and refinancing within these markets;
risks relating to our insurance coverage; the possible impact of
international conflicts and other developments including terrorist
acts; potential environmental liabilities; changes in tax laws and
other tax related risks; dependence on management personnel;
illiquidity of investments; the ability to complete and effectively
integrate acquisitions into existing operations and the ability to
attain expected benefits therefrom; operational and reputational
risks; catastrophic events, such as earthquakes and hurricanes; and
other risks and factors detailed from time to time in our documents
filed with the securities regulators in Canada and the United States. 
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. When relying on our
forward-looking statements or information, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law, we
undertake no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
that may be as a result of new information, future events or
otherwise. 
Basis of Presentation 
This press release and accompanying financial information make
reference to net operating income and funds from operations on a
total and per share basis. Net operating income is defined as
revenues from commercial and hospitality operations of consolidated
properties less direct commercial property and hospitality expenses,
with the exception of depreciation and amortization of real estate
assets. Brookfield Property Partners defines FFO as income, including
equity accounted income, before realized gains (losses), fair value
gains (losses) (including equity accounted fair value gains
(losses)), depreciation and amortization of real estate assets,
income tax expense (benefit), and less non-controlling interests of
others in consolidated subsidiaries, but before non-controlling
interests in the REUs. The company uses net operating income and FFO
to assess its operating results. Net operating income is important in
assessing operating performance and FFO is a widely-used measure to
analyze real estate. The company provides the components of net
operating income and a full reconciliation from net income to FFO
with the financial information accompanying this press release. The
company reconciles FFO to net income as opposed to cash flow from
operating activities as it believes net income is the most comparable
measure. Total Return is defined as income before income tax expense
(benefit) and related non-controlling interests, and represents the
amount by which we increase the value of our common equity through
funds from operations and the increase or decrease in value of our
investment properties over a period of time. We believe that our
performance is best assessed by considering these two components in
aggregate, and over the long term, because that is the basis on which
we make investment decisions and operate the business. In fact, if we
were solely focused on short-term financial results, it is quite
likely that we would operate the business very differently and, in
our opinion, in a manner that would produce lower lon
g-term returns.
Net operating income, FFO and Total Return are measures which do not
have any standard meaning and therefore may not be comparable to
similar measures presented by other companies.  


 
                                                                            
                                                                            
                         Consolidated Balance Sheet                         
                                                                            
(US$ Millions)                             Carve-out (1)       Pro forma    
                                         Mar. 31, Dec. 31, Mar. 31, Dec. 31,
                                           2013     2012     2013     2012  
                                         -------- -------- -------- --------
Assets                                                                      
Non-current assets                                                          
Investment properties                    $ 32,336 $ 31,859 $ 31,415 $ 30,956
Equity accounted investments                8,169    8,110    7,594    7,539
Participating loan notes                        -        -      790      775
Other non-current assets                    5,522    5,636    5,522    5,537
Loans and notes receivable                    283      246      283      246
                                         -------- -------- -------- --------
                                           46,310   45,851   45,604   45,053
                                         -------- -------- -------- --------
Current assets                                                              
Loans and notes receivable                    162      237      138      212
Accounts receivable and other               1,098    1,022    1,128      975
Cash and cash equivalents                     970      910      939      905
                                         -------- -------- -------- --------
                                            2,230    2,169    2,205    2,092
                                         -------- -------- -------- --------
Total assets                             $ 48,540 $ 48,020 $ 47,809 $ 47,145
                                         ======== ======== ======== ========
Liabilities and equity in net assets                                        
Non-current liabilities                                                     
Property debt                            $ 17,673   16,358 $ 17,089 $ 15,785
Capital securities                            650      664    1,900    1,914
Other non-current liabilities                 585      441      585      439
Deferred tax liability                      1,073      997    1,174    1,075
                                         -------- -------- -------- --------
                                           19,981   18,460   20,748   19,213
                                         -------- -------- -------- --------
Current liabilities                                                         
Property debt                               2,855    3,366    2,855    3,366
Capital securities                              -      202        -      202
Accounts payable and other liabilities      1,345    1,747    1,350    1,690
                                         -------- -------- -------- --------
                                            4,200    5,315    4,205    5,258
                                         -------- -------- -------- --------
Total liabilities                          24,181   23,775   24,953   24,471
                                         -------- -------- -------- --------
Equity in net assets                                                        
Non-controlling interests                                                   
Interests of others in consolidated                                         
 subsidiaries                              11,002   10,870   10,974   10,865
Redeemable/Exchangeable operating                                           
 partnership units held by Brookfield                                       
 Asset Management Inc.                          -        -    9,871    9,811
                                         -------- -------- -------- --------
Total non-controlling interests            11,002   10,870   20,845   20,676
Equity in net assets attributable to                                        
 parent company                            13,357   13,375        -        -
Limited partnership units                       -        -    2,011    1,998
                                         -------- -------- -------- --------
Total equity in net assets                 24,359   24,245   22,856   22,674
                                         -------- -------- -------- --------
Total liabilities and equity in net                                         
 assets                                  $ 48,540 $ 48,020 $ 47,809 $ 47,145
                                         ======== ======== ======== ========
                                                                            
(1) Carve-out financial statements of commercial property operations of     
 Brookfield                                                                 
                                                                            
See Appendix A "Reconciliation of carve-out financial results to pro forma  
 financial statements" for an explanation of the adjustments.               
                                                                            
                                                                            
                                                                            
                                                                            
                      Consolidated Statements of Income                     
                                                                            
                                              Carve-out (1)     Pro forma   
(US$ Millions) Three months ended March 31,    2013    2012    2013    2012 
                                             ------- ------- ------- -------
Commercial property revenue                  $   751 $   671 $   728 $   635
Hospitality revenue                              329      51     329      51
Investment and other revenue                      56      53      68      66
                                             ------- ------- ------- -------
Total revenue                                  1,136     775   1,125     752
Direct commercial property expense               307     271     300     262
Direct hospitality expense                       274      46     274      46
Investment and other expense                      19      10      19      10
Interest expense                                 268     246     276     245
Administration expense                            38      35      51      48
                                             ------- ------- ------- -------
Total expenses                                   906     608     920     611
Fair value gains, net                            247     340     216     313
Share of equity accounted income excluding                                  
 fair value gains                                106      89      95      79
Share of equity accounted fair value gains       126     353     126     353
                                             ------- ------- ------- -------
Income before income taxes                       709     949     642     886
Income tax expense                               104     239     103     213
                                             ------- ------- ------- -------
Net income                                   $   605 $   710 $   539 $   673
                                             ======= ======= ======= =======
Net income attributable to:                                                 
Non-controlling interests:                                                  
Interests of others in con
solidated                                         
 subsidiaries                                $   254 $   327 $   249 $   316
Redeemable/Exchangeable operating                                           
 partnership units held by Brookfield              -       -     241     297
                                             ------- ------- ------- -------
Total non-controlling interests                  254     327     490     613
Parent company                                   351     383       -       -
Limited partnership units                          -       -      49      60
                                             ------- ------- ------- -------
Net income                                   $   605 $   710 $   539 $   673
                                             ======= ======= ======= =======
                                                                            
(1) Carve-out financial statements of commercial property operations of     
 Brookfield                                                                 
                                                                            
 See "Appendix A "Reconciliation of carve-out financial results to pro forma
 financial statements" for an explanation of the adjustments.               
                                                                            
                                                                            
                                                                            
                                                                            
                Reconciliation of NOI, FFO and Total Return                 
                                                                            
                                           Carve-out (1)       Pro forma    
(US$ Millions) Three months ended March                                     
 31,                                       2013     2012     2013     2012  
                                         -------  -------  -------  ------- 
Commercial property revenue              $   751  $   671  $   728  $   635 
Hospitality revenue                          329       51      329       51 
Direct commercial property expense          (307)    (271)    (300)    (262)
Direct hospitality expense                  (274)     (46)    (274)     (46)
Depreciation and amortization of real                                       
 estate assets(2)                             22        4       22        4 
                                         -------  -------  -------  ------- 
NOI                                          521      409      505      382 
Investment and other revenue                  56       53       68       66 
Investment and other expense                 (19)     (10)     (19)     (10)
Share of equity accounted income                                            
 excluding fair value gains                  106       89       95       79 
Interest expense                            (268)    (246)    (276)    (245)
Administration expense                       (38)     (35)     (51)     (48)
Non-controlling interests of others in                                      
 consolidated subsidiaries in funds from                                    
 operations                                 (173)    (112)    (173)    (101)
                                         -------  -------  -------  ------- 
FFO(3)                                       185      148      149      123 
Depreciation and amortization of real                                       
 estate assets(2)                            (22)      (4)     (22)      (4)
Fair value gains, net                        247      340      216      313 
Share of equity accounted fair value                                        
 gains                                       126      353      126      353 
Non-controlling interests of others in                                      
 consolidated subsidiaries in Total                               
          
 Return                                     (117)    (259)    (112)    (259)
                                         -------  -------  -------  ------- 
Total Return(3)                              419      578      357      526 
Income tax expense                          (104)    (239)    (103)    (213)
Non-controlling interest of others in                                       
 consolidated subsidiaries in income tax                                    
 expense                                      36       44       36       44 
                                         -------  -------  -------  ------- 
Net income attributable to parent                                           
 company/LP Units and REUs(4)                351      383      290      357 
Net income attributable to non-                                             
 controlling interests                       254      327        -        - 
Net income attributable to non-                                             
 controlling interests of others in                                         
 consolidated subsidiaries                     -        -      249      316 
                                         -------  -------  -------  ------- 
Net income                               $   605  $   710  $   539  $   673 
                                         -------  -------  -------  ------- 
                                                                            
(1) Carve-out financial statements of commercial property operations of     
 Brookfield                                                                 
(2) Depreciation and amortization of real estate assets is a component of   
 direct hospitality expense that is added back to NOI and is deducted in    
 the Total Return calculation.                                              
(3) FFO, Total Return, and net income represent interests attributable to   
 LP Units and REUs. The interests attributable to REUs are presented as     
 non-controlling interests in the pro forma statement of income.            
(4) For the carve-out columns this line item represents net income          
 attributable to parent company, and for the pro forma columns this         
 represents net income attributable to LP Units and REUs.                   
                                                                            
See "Appendix A: Reconciliation of carve-out financial results to pro forma 
 financial results" for an explanation of the adjustments.                  
                                                                                
        
                                                                                
        
Appendix A: Reconciliation of carve-out financial results to pro forma 
financial results
                                                                        
                                                                        
                        Brookfield                                      
                         Property   Brookfield                          
                         Partners   Carve-out    Pro Forma Adjustments  
As at March 31, 2013     L.P. (1)                                       
                                               -------------------------
                                                Australian   Australian 
                                               Investments   Exclusions 
(US$ Millions)                                     (a)          (b)     
                       ----------- ----------- -----------  ----------- 
                                                                        
Assets                                                                  
Non-current assets                                                      
Investment properties  $         - $    32,336 $      (755) $      (166)
Equity accounted                                                        
 investments                     -       8,169        (5
75)           - 
Participating loan                                                      
 notes                           -           -         790            - 
Other non-current                                                       
 assets                          -       5,522           -            - 
Loans and notes                                                         
 receivable                      -         283           -            - 
                       ----------- ----------- -----------  ----------- 
                                 -      46,310        (540)        (166)
                       ----------- ----------- -----------  ----------- 
Current assets                                                          
Loans and notes                                                         
 receivable                      -         162           -          (24)
Accounts receivable                                                     
 and other                       -       1,098          63          (33)
Cash and cash                                                           
 equivalents                     -         970         (13)         (18)
                       ----------- ----------- -----------  ----------- 
                                 -       2,230          50          (75)
                       ----------- ----------- -----------  ----------- 
  Total assets         $         - $    48,540 $      (490) $      (241)
                       =========== =========== ===========  =========== 
Liabilities and                                                         
 equity in net assets                                                   
Non-current                                                             
 liabilities                                                            
Property debt          $         - $    17,673 $      (537) $       (47)
Capital securities               -         650           -            - 
Other non-current                                                       
 liabilities                     -         585           -            - 
Deferred tax                                                            
 liability                       -       1,073          64          (16)
                       ----------- ----------- -----------  ----------- 
                                 -      19,981        (473)         (63)
                       ----------- ----------- -----------  ----------- 
Current liabilities                                                     
Property debt                    -       2,855           -            - 
Capital securities                           -           -            - 
Accounts payable and                                                    
 other liabilities               -       1,345          44          (12)
                       ----------- ----------- -----------  ----------- 
                                 -       4,200          44          (12)
                       ----------- ----------- -----------  ----------- 
Equity in net assets                                                    
Non-controlling                                                         
 interests                                                              
  Interests of others                                                   
   in consolidated                                                      
   subsidiaries                  -      11,002         (40)         (13)
  Redeemable/exchange                                                   
   able operating                                                       
   partnership units                                                    
   held by parent                -           -           -            - 
                       ----------- ----------- -----------  ----------- 
Total non-controlling                                                   
 interests                       -      11,002         (40)         (13)
Equity in net assets                                                    
 attributable to                                                        
 parent company                  -      13,357         (21)        (153)
Limited partnership                                                     
 units                           -           -           -            - 
                       ----------- ----------- -----------  ----------- 
Total equity in net                                                     
 assets                          -      24,359         (61)        (166)
                       ----------- ----------- -----------  ----------- 
Total liabilities and                                                   
 equity in net assets  $         - $    48,540 $      (490) $      (241)
                       =========== =========== ===========  =========== 
 
                                                                            
                                                                            
As at March 31, 2013                  Pro Forma Adjustments                 
                     -------------------------------------------------------
                        Capital     Preferred                 Tax Impact of 
                       Securities    Shares       Equity     Reorganization 
(US$ Millions)            (c)          (d)          (e)            (f)      
                      -----------  -----------  -----------  -------------- 
                                                                            
Assets                                                                      
Non-current assets                                                          
Investment properties $         -  $         -  $         -  $            - 
Equity accounted                                                            
 investments                    -            -            -               - 
Participating loan                                                        
  
 notes                          -            -            -               - 
Other non-current                                                           
 assets                         -            -            -               - 
Loans and notes                                                             
 receivable                     -            -            -               - 
                      -----------  -----------  -----------  -------------- 
                                -            -            -               - 
                      -----------  -----------  -----------  -------------- 
Current assets                                                              
Loans and notes                                                             
 receivable                     -            -            -               - 
Accounts receivable                                                         
 and other                      -            -            -               - 
Cash and cash                                                               
 equivalents                    -            -            -               - 
                      -----------  -----------  -----------  -------------- 
                                -            -            -               - 
                      -----------  -----------  -----------  -------------- 
  Total assets        $         -  $         -  $         -  $            - 
                      ===========  ===========  ===========  ============== 
Liabilities and                                                             
 equity in net assets                                                       
Non-current                                                                 
 liabilities                                                                
Property debt         $         -  $         -  $         -  $            - 
Capital securities          1,250            -            -               - 
Other non-curren
t                                                           
 liabilities                    -            -            -               - 
Deferred tax                                                                
 liability                      -            -            -              53 
                      -----------  -----------  -----------  -------------- 
                            1,250            -            -              53 
                      -----------  -----------  -----------  -------------- 
Current liabilities                                                         
Property debt                   -            -            -               - 
Capital securities              -            -            -               - 
Accounts payable and                                                        
 other liabilities              -            -            -               - 
                      -----------  -----------  -----------  -------------- 
                                -            -            -               - 
                      -----------  -----------  -----------  -------------- 
Equity in net assets                                                        
Non-controlling                                                             
 interests                                                                  
  Interests of others                                                       
   in consolidated                                                          
   subsidiaries                 -           25            -               - 
  Redeemable/exchange                                                       
   able operating                                                           
   partnership units                                                        
   held by parent               -            -        9,871               - 
                      -----------  -----------  -----------  -------------- 
Total non-controlling                                                       
 interests                      -           25        9,871               - 
Equity in net assets                                                        
 attributable to                                                            
 parent company            (1,250)         (25)     (11,882)            (53)
Limited partnership                                                         
 units                          -            -        2,011               - 
                      -----------  -----------  -----------  -------------- 
Total equity in net                                                         
 assets                    (1,250)           -            -             (53)
                      -----------  -----------  -----------  -------------- 
Total liabilities and                                                       
 equity in net assets $         -  $         -  $         -  $            - 
                      ===========  ===========  ===========  ============== 
 
                                                        
                                                        
                                              Pro Forma 
                                              Brookfield
                      Pro Forma Adjustments    Property 
                                               Partners 
As at March 31, 2013                             L.P.   
                     ----------------------             
                                 Total Pro              
                         HHC       Forma                
(US$ Millions)           (h)    Adjustments             
                      --------  -----------  -----------
                                                        
Assets                                                  
Non-current assets                                      
Investment properties $      -  $      (921) $    31,415
Equity accounted                                        
 investments                 -         (575)       7,594
Participating loan                                      
 notes                       -          790          790
Other non-current                                       
 assets                      -            -        5,522
Loans and notes                                         
 receivable                  -            -          283
                      --------  -----------  -----------
                             -         (706)      45,604
                      --------  -----------  -----------
Current assets                                          
Loans and notes                                         
 receivable                  -          (24)         138
Accounts receivable                                     
 and other                   -           30        1,128
Cash and cash                                           
 equivalents                 -          (31)         939
                      --------  -----------  -----------
                             -          (25)       2,205
                      --------  -----------  -----------
  Total assets        $      -  $      (731) $    47,809
                      ========  ===========  ===========
Liabilities and                                         
 equity in net assets                                   
Non-current                                             
 liabilities                                            
Property debt         $      -  $      (584) $    17,089
Capital securities           -        1,250        1,900
Other non-current                                       
 liabilities                 -            -          585
Deferred tax                                            
 liability                   -          101        1,174
                      --------  -----------  -----------
                             -          767       20,748
                      --------  -----------  -----------
Current liabilities                                     
Property debt                -            -        2,855
Capital securities           -            -            -
Accounts payable and                                    
 other liabilities         (27)           5        1,350
                      --------  -----------  -----------
                           (27)           5        4,205
                      --------  -----------  -----------
Equity in net assets                                    
Non-controlling                                         
 interests                                              
  Interests of others                                   
   in consolidated                                      
   subsidiaries              -          (28)      10,974
  Redeemable/exchange                                   
   able operating                                       
   partnership units                                    
   held by parent            -        9,871        9,871
                      --------  -----------  -----------
Total non-controlling                                   
 interests                   -        9,843       20,845
Equity in net assets                                    
 attributable to                                        
 parent company             27      (13,357)           -
Limited partnership                                     
 units                       -        2,011        2,011
                      --------  -----------  -----------
Total equity in net                                     
 assets                     27       (1,503)      22,856
                      --------  -----------  -----------
Total liabilities and                                   
 equity in net assets $      -  $      (731) $    47,809
                      ========  ===========  ===========
                                                                            
(1) Includes Brookfield Property Partners L.P. balance sheet as at March 31,
 2013 which includes partnership equity of $0.001 which is not presented due
 to rounding.                                                               
                                                                            
See notes for an explanation of each adjustment.                            
                                                                            
                                                                            
                                                                       
                                                                       
                       Brookfield                                      
                        Property   Brookfield                          
As at December 31,      Partners   Carve-out    Pro Forma Adjustments  
 2012                   L.P. (1)                                       
                                              -------------------------
                                               Australian   Australian 
                                              Investments   Exclusions 
(US$ Millions)                                    (a)          (b)     
                      ----------- ----------- -----------  ----------- 
                                                                       
Assets                                                                 
Non-current assets                                                     
Investment properties $         - $    31,859 $      (740) $      (163)
Equity accounted                                                       
 investments                    -       8,110        (568)          (3)
Participating loan                                                     
 notes                          -           -         775            - 
Other non-current                                                      
 assets                         -       5,636           -            - 
Loans and notes                                                        
 receivable                     -         246           -            - 
                      ----------- ----------- -----------  ----------- 
                                -      45,851        (533)        (166)
                      ----------- ----------- -----------  ----------- 
Current assets                                                         
Loans and notes                                                        
 receivable                     -         237           -          (25)
Accounts receivable                                                    
 and other                      -       1,022           -          (47)
Cash and cash                                                          
 equivalents                    -         910          (3)          (2)
                      ----------- ----------- -----------  ----------- 
                                -       2,169          (3)         (74)
                      ----------- ----------- -----------  ----------- 
  Total assets        $         - $    48,020 $      (536) $      (240)
                      =========== =========== ===========  =========== 
Liabilities and                                                        
 equity in net assets                                                  
Non-current                                                            
 liabilities                                                           
Property debt         $         - $    16,358 $      (526) $       (47)
Capital securities              -         664           -            - 
Other non-current                                                      
 liabilities                    -         441           -           (2)
Deferred tax                                                           
 liability                      -         997          59          (16)
                      ----------- ----------- -----------  ----------- 
                                -      18,460        (467)         (65)
                      ----------- ----------- -----------  ----------- 
Current liabilities                                                    
Property debt                   -       3,366           -            - 
Capital securities                        202           -            - 
Accounts payable and                                                   
 other liabilities              -       1,747         (33)         (11)
                      ----------- ----------- -----------  ----------- 
                                -       5,315         (33)         (11)
                      ----------- ----------- -----------  ----------- 
Equity in net assets                                                   
Non-controlling                                                        
 interests                                                             
  Interests of others                                                  
   in consolidated                                                     
   subsidiaries                 -      10,870           -          (13)
  Redeemable/exchange                                                  
   able operating                                                      
   partnership units                                                   
   held by parent               -           -           -            - 
                      ----------- ----------- -----------  ----------- 
Total non-controlling                                                  
 interests                      -      10,870           -          (13)
Equity in net assets                                                   
 attributable to                                                       
 parent company                 -      13,375         (36)        (151)
Limited partnership                                                    
 units                          -           -           -            - 
                      ----------- ----------- -----------  ----------- 
Total equity in net                                                    
 assets                         -      24,245         (36)        (164)
                      ----------- ----------- -----------  ----------- 
Total liabilities and                                                  
 equity in net assets $         - $    48,020 $      (536) $      (240)
                      =========== =========== ===========  =========== 
 
                                                                            
                                                                            
As at December 31,                                                          
 2012                                 Pro Forma Adjustments                 
                     -------------------------------------------------------
                        Capital     Preferred                 Tax Impact of 
                       Securities    Shares       Equity     Reorganization 
(US$ Millions)            (c)          (d)          (e)            (f)      
                      -----------  -----------  -----------  -------------- 
                                                                            
Assets                                                                      
Non-current assets                                                          
Investment properties $         -  $         -  $         -  $            - 
Equity accounted                                                            
 investments                    -            -            -               - 
Participating loan                                                          
 notes                          -            -            -               - 
Other non-current                                                           
 assets                         -            -            -               - 
Loans and notes                                                             
 receivable                   
  -            -            -               - 
                      -----------  -----------  -----------  -------------- 
                                -            -            -               - 
                      -----------  -----------  -----------  -------------- 
Current assets                                                              
Loans and notes                                                             
 receivable                     -            -            -               - 
Accounts receivable                                                         
 and other                      -            -            -               - 
Cash and cash                                                               
 equivalents                    -            -            -               - 
                      -----------  -----------  -----------  -------------- 
                                -            -            -               - 
                      -----------  -----------  -----------  -------------- 
  Total assets        $         -  $         -  $         -  $            - 
                      ===========  ===========  ===========  ============== 
Liabilities and                                                             
 equity in net assets                                                       
Non-current                                                                 
 liabilities                                                                
Property debt         $         -  $         -  $         -  $            - 
Capital securities          1,250            -            -               - 
Other non-current                                                           
 liabilities                    -            -            -               - 
Deferred tax                                                                
 liability                      -            -            -              43 
                      -----------  -----------  -----------  -------------- 
                            1,250            -            -              43 
                      -----------  -----------  -----------  -------------- 
Current liabilities                                                         
Property debt                   -            -            -               - 
Capital securities              -            -            -               - 
Accounts payable and                                                        
 other liabilities              -            -            -               - 
                      -----------  -----------  -----------  -------------- 
                                -            -            -               - 
                      -----------  -----------  -----------  -------------- 
Equity in net assets                                                        
Non-controlling                                                             
 interests                                                                  
  Interests of others                                                       
   in consolidated                                                          
   subsidiaries                 -           25            -               - 
  Redeemable/exchange                                                       
   able operating                                                           
   partnership units                                                        
   held by parent               -            -        9,811               - 
                      -----------  -----------  -----------  -------------- 
Total non-controlling                                                       
 interests                      -           25        9,811               - 
Equity in net assets                                                        
 attributable to                                                            
 parent company            (1,250)         (25)     (11,809)            (43)
Limited partnership                                                         
 units                          -            -        1,998               - 
                      -----------  -----------  -----------  -------------- 
Total equity in net                                                         
 assets                    (1,250)           -            -             (43)
                      -----------  -----------  -----------  -------------- 
Total liabilities and                                                       
 equity in net assets $         -  $         -  $         -  $            - 
                      ===========  ===========  ===========  ============== 
 
                                                        
                                                        
                                              Pro Forma 
                                              Brookfield
                      Pro Forma Adjustments    Property 
As at December 31,                             Partners 
 2012                                            L.P.   
                     ----------------------             
                                 Total Pro              
                         HHC       Forma                
(US$ Millions)           (h)    Adjustments             
                      --------  -----------  -----------
                                                        
Assets                                                  
Non-current assets                                      
Investment properties $      -  $      (903) $    30,956
Equity accounted                                        
 investments                 -         (571)       7,539
Participating loan                                      
 notes                       -          775          775
Other non-current                                       
 assets                    (99)         (99)       5,537
Loans and notes                                         
 receivable                  -            -          246
                      --------  -----------  -----------
                           (99)        (798)      45,053
                      --------  -----------  -----------
Current assets                                          
Loans and notes                                         
 receivable                  -          (25)         212
Accounts receivable                                     
 and other                   -          (47)         975
Cash and cash                                           
 equivalents                 -           (5)         905
                      --------  -----------  -----------
                             -          (77)       2,092
                      --------  -----------  -----------
  Total assets        $    (99) $      (875) $    47,145
                      ========  ===========  ===========
Liabilities and                                         
 equity in net assets                                   
Non-current                                             
 liabilities                                            
Property debt         $      -  $      (573) $    15,785
Capital securities           -        1,250        1,914
Other non-current                                       
 liabilities                 -           (2)         439
Deferred tax                                            
 liability                  (8)          78        1,075
                      --------  -----------  -----------
                            (8)         753       19,213
                      --------  -----------  -----------
Current liabilities                                     
Property debt                -            -        3,366
Capital securities           -            -          202
Accounts payable and                                    
 other liabilities         (13)         (57)       1,690
                      --------  -----------  -----------
                           (13)         (57)       5,258
                      --------  -----------  -----------
Equity in net assets                                    
Non-controlling                                         
 interests                                              
  Interests of others                                   
   in consolidated                                      
   subsidiaries            (17)          (5)      10,865
  Redeemable/exchange                                   
   able operating                                       
   partnership units                                    
   held by parent            -        9,811        9,811
                                -----------  -----------
Total non-controlling                                   
 interests                 (17)       9,806       20,676
Equity in net assets                                    
 attributable to                                        
 parent company            (61)     (13,375)           -
Limited partnership                                     
 units                       -        1,998        1,998
                      --------  -----------  -----------
Total equity in net                                     
 assets                    (78)      (1,571)      22,674
                      --------  -----------  -----------
Total liabilities and                                   
 equity in net assets $    (99) $      (875) $    47,145
                      ========  ===========  ===========
                                                                            
(1) Includes Brookfield Property Partners L.P. balance sheet as at January  
 15, 2013 which includes partnership equity of $0.001 which is not presented
 due to rounding.                                                           
                                                                            
 See notes for an explanation of each adjustment.                           
                                                                            
                                                                            

 
                                                                            
                                                                            
                           Brookfield                                       
                            Property   Brookfield                           
For the three months        Partners   Carve-out     Pro Forma Adjustments  
 ended March 31, 2013         L.P.                                          
                                                   -------------------------
                                                    Australian   Australian 
                                                   Investments   Exclusions 
(US$ Millions)                                         (a)          (b)     
                          ----------- -----------  -----------  ----------- 
                                                                            
Commercial property                                                         
 revenue                  $         - $       751  $       (19) $        (4)
Hospitality revenue                 -         329            -            - 
Investment and other                                                        
 revenue                            -          56           13           (1)
                          ----------- -----------  -----------  ----------- 
Total revenue                       -       1,136           (6)          (5)
Direct commercial                                                           
 property expense                   -         307           (5)          (2)
Direct hospitality                                                          
 expense                            -         274            -            - 
Investment and other                                                        
 expense                            -          19            -            - 
Interest expense                    -         268          (10)          (1)
Administration expense              -          38            -            - 
                          ----------- -----------  -----------  ----------- 
Total expenses                      -         906          (15)          (3)
Fair value gains                    -         247            2            3 
Share of net earnings                                                       
 from equity accounted                                                      
 investments                        -         232          (11)           - 
                          ----------- -----------  -----------  ----------- 
Income before income                                                        
 taxes                              -         709            -            1 
Income tax (expense)                                                        
 benefit                            -        (104)           -            - 
                          ----------- -----------  -----------  ----------- 
Net income                $         - $       605  $         -  $         1 
                          =========== ===========  ===========  =========== 
                                                                            
Net income attributable                                                     
 to:                                                                        
Non-controlling                                                             
 interests:                                                                 
  Interests of others in                                                    
   consolidated                                                             
   subsidiaries           $         - $       254  $         -  $         1 
  Redeemable/exchangeable                                                   
   operating partnership                                                    
   units held by parent             -           -            -            - 
                          ----------- -----------  -----------  ----------- 
Total non-controlling                                                       
 interests                          -         254            -            1 
Parent company                      -         351            -            - 
Limited partnership units           -           -            -            - 
                          ----------- -----------  -----------  ----------- 
                          $         - $       605  $         -  $         1 
                          =========== ===========  ===========  =========== 
                                                                            
 
                                                                   
                                                                   
For the three months                                               
 ended March 31, 2013               Pro Forma Adjustments          
                         ------------------------------------------
                            Capital                  Tax Impact of 
                           Securities    Equity     Reorganization 
(US$ Millions)                (c)          (e)            (f)      
                          -----------  -----------  -------------- 
                                                                   
Commercial property                                                
 revenue                  $         -  $         -  $            - 
Hospitality revenue                 -            -               - 
Investment and other                                               
 revenue                            -            -               - 
                          -----------  -----------  -------------- 
Total revenue                       -            -               - 
Direct commercial                                                  
 propert
y expense                   -            -               - 
Direct hospitality                                                 
 expense                            -            -               - 
Investment and other                                               
 expense                            -            -               - 
Interest expense                   19            -               - 
Administration expense              -            -               - 
                          -----------  -----------  -------------- 
Total expenses                     19            -               - 
Fair value gains                    -            -               - 
Share of net earnings                                              
 from equity accounted                                             
 investments                        -            -               - 
                          -----------  -----------  -------------- 
Income before income                                               
 taxes                            (19)           -               - 
Income tax (expense)                                               
 benefit                            -            -              (7)
                          -----------  -----------  -------------- 
Net income                $       (19) $         -  $           (7)
                          ===========  ===========  ============== 
                                                                   
Net income attributable                                            
 to:                                                               
Non-controlling                                                    
 interests:                                                        
  Interests of others in                                           
   consolidated                                                    
   subsidiaries           $         -  $         -  $            - 
  Redeemable/exchangeable                                          
   operating partnership                                           
   units held by parent             -          241               - 
                          -----------  -----------  -------------- 
Total non-controlling                                              
 interests                          -          241               - 
Parent company                    (19)        (290)             (7)
Limited partnership units           -           49               - 
                          -----------  -----------  -------------- 
                          $       (19) $         -  $           (7)
                          ===========  ===========  ============== 
                                                                   
 
                                                                          
                                                                          
                                                               Pro Forma  
                                                               Brookfield 
                                Pro Forma Adjustments           Property  
For the three months                                            Partners  
 ended March 31, 2013                                             L.P.    
                         -----------------------------------              
                           Management             Total Pro               
                              Fee         HHC       Forma                 
(US$ Millions)                (g)         (h)    Adjustments              
                          -----------  --------  -----------  ----------- 
                                                                          
Commercial property                                                       
 revenue                  $         -  $      -  $       (23) $       728 
Hospitality revenue                 -         -            -          329 
Investment and other                                                      
 revenue                            -         -           12           68 
                          -----------  --------  -----------  ----------- 
Total revenue                       -         -          (11)       1,125 
Direct commercial                                                         
 property expense                   -         -           (7)         300 
Direct hospitality                                                        
 expense                            -         -            -          274 
Investment and other                                                      
 expense                            -         -            -           19 
Interest expense                    -         -            8          276 
Administration expense             13         -           13           51 
                          -----------  --------  -----------  ----------- 
Total expenses                     13         -           14          920 
Fair value gains                    -       (36)         (31)         216 
Share of net earnings                                                     
 from equity accounted                                                    
 investments                        -         -          (11)         221 
                          -----------  --------  -----------  ----------- 
Income before income                                                      
 taxes                            (13)      (36)         (67)         642 
Income tax (expense)                                                      
 benefit                            3         5            1         (103)
                          -----------  --------  -----------  ----------- 
Net income                $       (10) $    (31) $       (66) $       539 
                          ===========  ========  ===========  =========== 
                                                                          
Net income attributable                                                   
 to:                                                                      
Non-controlling                                                           
 interests:                                                               
  Interests of others in                                                  
   consolidated                                                           
   subsidiaries           $         -  $     (6) $        (5) $       249 
  Redeemable/exchangeable                                                 
   operating partnership                                                  
   units held by parent             -         -          241          241 
                          -----------  --------  -----------  ----------- 
Total non-controlling                                                     
 interests                          -        (6)         236          490 
Parent company                    (10)      (25)        (351)           - 
Limited partnership units           -         -           49           49 
                          -----------  --------  -----------  ----------- 
                          $       (10) $    (31) $       (66) $       539 
                          ===========  ========  ===========  =========== 
                                                                          
See notes for an explanation of each adjustment.                            
                                                                            
                                                                            
                                                                            
                                                                            
                           Brookfield                                       
                            Property   Brookfield                           
For the three months        Partners   Carve-out     Pro Forma Adjustments  
 ended March 31, 2012         L.P
.                                          
                                                   -------------------------
                                                    Australian   Australian 
                                                   Investments   Exclusions 
(US$ Millions)                                         (a)          (b)     
                          ----------- -----------  -----------  ----------- 
                                                                            
Commercial property                                                         
 revenue                  $         - $       671  $       (25) $       (11)
Hospitality revenue                 -          51            -            - 
Investment and other                                                        
 revenue                            -          53           14           (1)
                          ----------- -----------  -----------  ----------- 
Total revenue                       -         775          (11)         (12)
Direct commercial                                                           
 property expense                   -         271           (5)          (4)
Direct hospitality                                                          
 expense                            -          46            -            - 
Investment and other                                                        
 expense                            -          10            -            - 
Interest expense                    -         246          (16)          (4)
Administration expense              -          35            -            - 
                          ----------- -----------  -----------  ----------- 
Total expenses                      -         608          (21)          (8)
Fair value gains                    -         340            -          (14)
Share of net earnings                                                       
 from equity accounted                                                      
 investments                        -         442          (10)           - 
                          ----------- -----------  -----------  ----------- 
Income before income                                                        
 taxes                              -         949            -          (18)
Income tax (expense)                                                        
 benefit                            -        (239)           -            1 
                          ----------- -----------  -----------  ----------- 
Net income                $         - $       710  $         -  $       (17)
                          =========== ===========  ===========  =========== 
                                                                            
Net income attributable                                                     
 to:                                                                        
Non-controlling                                                             
 interests:                                                                 
  Interests of others in                                                    
   consolidated                                                             
   subsidiaries           $         - $       327  $         -  $       (11)
  Redeemable/exchangeable                                                   
   operating partnership                                                    
   units held by parent             -           -            -            - 
                          ----------- -----------  -----------  ----------- 
Total non-controlling                                                       
 interests                          -         327            -          (11)
Parent company                      -         383            -           (6)
Limited partnership units           -           -            -            - 
                          ----------- -----------  -----------  ----------- 
                          $         - $       710  $         -  $       (17)
                          =========== ===========  ===========  =========== 
                                                                            
 
                                                                  
                                                                  
For the three months                                              
 ended March 31, 2012              Pro Forma Adjustments          
                         -----------------------------------------
                            Capital                  Tax Impact of
                           Securities    Equity     Reorganization
(US$ Millions)                (c)          (e)            (f)     
                          -----------  -----------  --------------
                                                                  
Commercial property                                               
 revenue                  $         -  $         -  $            -
Hospitality revenue                 -            -               -
Investment and other                                              
 revenue                            -            -               -
                          -----------  -----------  --------------
Total revenue                       -            -               -
Direct commercial                                                 
 property expense                   -            -               -
Direct hospitality                                                
 expense                            -            -               -
Investment and other                                              
 expense                            -            -               -
Interest expense                   19            -               -
Administration expense              -            -               -
                          -----------  -----------  --------------
Total expenses                     19            -               -
Fair value gains                    -            -               -
Share of net earnings                                             
 from equity accounted                                            
 investments                        -            -               -
                          -----------  -----------  --------------
Income before income                                              
 taxes                            (19)           -               -
Income tax (expense)                                              
 benefit                            -            -              22
                          -----------  -----------  --------------
Net income                $       (19) $         -  $           22
                          ===========  ===========  ==============
                                                                  
Net income attributable                                           
 to:                                                              
Non-controlling                                                   
 interests:                                                       
  Interests of others in                                          
   consolidated                                                   
   subsidiaries           $         -  $         -  $            -
  Redeemable/exchangeable                                         
   operating partnership                                          
   units held by parent             -          297               -
                          -----------  -----------  --------------
Total non-controlling                                             
 interests                          -          297               -
Parent company                    (19)        (357)             22
Limited partnership units           -           60               -
                          -----------  -----------  --------------
                          $       (19) $       
  -  $           22
                          ===========  ===========  ==============
                                                                  
 
                                                                          
                                                                          
                                                               Pro Forma  
                                                               Brookfield 
                                Pro Forma Adjustments           Property  
For the three months                                            Partners  
 ended March 31, 2012                                             L.P.    
                         -----------------------------------              
                           Management             Total Pro               
                              Fee         HHC       Forma                 
(US$ Millions)                (g)         (h)    Adjustments              
                          -----------  --------  -----------  ----------- 
                                                                          
Commercial property                                                       
 revenue                  $         -  $      -  $       (36) $       635 
Hospitality revenue                 -         -            -           51 
Investment and other                                                      
 revenue                            -         -           13           66 
                          -----------  --------  -----------  ----------- 
Total revenue                       -         -          (23)         752 
Direct commercial                                                         
 property expense                   -         -           (9)         262 
Direct hospitality                                                        
 expense                            -         -            -           46 
Investment and other                                                      
 expense                            -         -            -           10 
Interest expense                    -         -           (1)         245 
Administration expense             13         -           13           48 
                          -----------  --------  -----------  ----------- 
Total expenses                     13         -            3          611 
Fair value gains                    -       (13)         (27)         313 
Share of net earnings                                                     
 from equity accounted                                                    
 investments                        -         -          (10)         432 
                          -----------  --------  -----------  ----------- 
Income before income                                                      
 taxes                            (13)      (13)         (63)         886 
Income tax (expense)                                                      
 benefit                            3         -           26         (213)
                          -----------  --------  -----------  ----------- 
Net income                $       (10) $    (13) $       (37) $       673 
                          ===========  ========  ===========  =========== 
                                                                          
Net income attributable                                                   
 to:                                                                      
Non-controlling                                                           
 interests:                                                               
  Interests of others in                                                  
   consolidated                                                           
   subsidiaries           $         -  $      -  $       (11) $       316 
  Redeemable/exchangeable                                                 
   operating partnership                                                  
   units held by parent             -         -          297          297 
                          -----------  --------  -----------  ----------- 
Total non-controlling                                                     
 interests                          -         -          286          613 
Parent company                    (10)      (13)        (383)           - 
Limited partnership units           -         -           60           60 
                          -----------  --------  -----------  ----------- 
                          $       (10) $    (13) $       (37) $       673 
                          ===========  ========  ===========  =========== 
                                                                          
See notes for an explanation of each adjustment.                            

 
Note regarding pro forma financial information: 
The pro forma financial information in this release has been prepared
to give effect to the acquisition by Brookfield Property Partners of
Brookfield's commercial property operations (the "reorganization"),
including its office, retail, multi-family and industrial and
opportunistic assets, located in the United States, Canada,
Australia, Brazil and Europe, that have historically been owned and
operated, both directly and through its operating entities. The
commercial property operations transferred to the company through the
reorganization includes all of the commercial property operations of
Brookfield included in the Brookfield carve-out financial statements
except for (i) its interest in the Howard Hughes Corporation, a
publicly listed real estate entity; and (ii) certain assets within
Brookfield's Australian operations which are not being transferred.  
In addition, the pro forma information was prepared reflecting
adjustments for the following:  
a) Acquisition of interests in Brookfield's Australian properties
through participating loan notes. 
 b) Exclusion of certain assets
within Brookfield's Australian operations which are not being
transferred to the company as part of the reorganization. 
 c)
Issuance of $1.25 billion of Capital Securities to Brookfield as
partial consideration for the business acquired by the company. 
 d)
Issuance of $25 million of Preferred Shares by certain holding
entities of Brookfield Property Partners. 
 e) Issuance of
partnership units by Brookfield Property Partners as partial
consideration for the business acquired, and issuance of
approximately 80 million units of the company in the spin-off based
on the number of Class A limited voting shares and Class B limited
voting shares of Brookfield. 
 f) Reorganization of the legal
structure through which the business is held, including the issuance
of certain inter-company debt between the property partnership and
the holding entities, resulting in changes in the effective tax rate
and the tax basis of certain investments. 
 g) Annual management fees
of $50 million paid by the company to Brookfield pursuant to a Master
Services Agreement. 
 h) Exclusion of Brookfield's 3% investment in
Howard Hughes Corporation, which is not being transferred to the
company as part of the reorganization. This investment has been
disposed of during the first quarter of 2013; however, certain
liabilities related to the assets still remain which are being
excluded in the pro forma financial statements.  
The unaudited pro forma information has been prepared based upon
currently available information and assumptions deemed appropriate by
management. The unaudited pro forma financial information is provided
for information purposes only and is not intended to represent, or be
indicative of, the results that would have occurred had the
transactions reflected in the pro forma adjustments been effected on
the dates indicated. 
Contact:
Melissa Coley
Vice President, Investor Relations & Communications
Tel: 212-417-7215
Email: melissa.coley@brookfield.com 
 
 
Press spacebar to pause and continue. Press esc to stop.