Brookfield Property Partners LP
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Brookfield Property Partners LP C O R P O R AT E P R O F I L E M AY 2 0 1 8
Table of Contents
Overview of Brookfield Property Partners (“BPY”) Page 4
Organic Growth Page 10
Operating Segments Page 16
Developments and Redevelopments Page 25
Appendix – Structure and Governance Page 30
2
BPY is Brookfield Asset Management’s (“Brookfield”) primary vehicle
to make investments across all strategies in real estate
Our goal is to be the leading global owner and operator of
high-quality real estate, generating an
attractive total return for our unitholders comprised of:
1 2 3
Current yield supported 5% ‒ 8% annual Capital appreciation
by stable cash flow from distribution growth of our asset base
a diversified portfolio
of assets
3
Overview of Brookfield Property Partners
4
Global Owner, Developer and Operator of Diversified,
High-Quality Real Estate
Investment Portfolio Characteristics
1
$69B Core Office
TOTAL ASSETS • 148 premier office properties totaling 99 million
square feet (msf) in gateway markets around the world
1 as well as 10 msf of core office and multifamily
$23B development projects currently underway
UNITHOLDER EQUITY
Core Retail
• 125 best-in-class retail properties totaling 123 msf
throughout the United States (via 34% interest in GGP)
$0.315
QUARTERLY DISTRIBUTION / UNIT Opportunistic
• High-quality assets with operational upside across
2 multifamily, industrial, hospitality, triple net lease,
6.6% self storage, student housing and manufactured housing
sectors
DISTRIBUTION YIELD
1) As of March 31, 2018 and on a proportionate basis.
2) Based on BPY’s 3/29/18 closing price of $19.19 on the Nasdaq stock market. 5
Investment Segments
Stable cash flows on core portfolios enhanced by investment in opportunistic
strategies
Core Office and Core Retail Opportunistic
Brookfield Place, New York Fashion Show Mall, Las Vegas Conrad Hotel, Seoul
Targeting 10% to 12% Total Returns Targeting 20% Total Returns
• Approximately 80% of BPY’s balance sheet • Approximately 20% of BPY’s
• Invested in high-quality, well-located trophy assets and balance sheet
development projects • Invested in mispriced
portfolios and/or properties
with significant value-add
6
Global Investor with Local Expertise
~$159B Total RE AUM1 | 30 Offices | ~285 Investment Professionals | ~17K Operating Employees2
CANADA UK & EUROPE
$8.0B $27.4B
ASIA & AUSTRALIA
UNITED STATES3
$14.4B
$106.4B
BRAZIL
$2.4B
1) At the Brookfield Property Group level which includes assets of BPY and Brookfield-managed funds.
2) Employee figures are as of December 31, 2017.
3) AUM in the Bahamas are included within our US AUM figure.
7
Proven Investment Approach
Value-oriented, counter-cyclical investors
Specialize in executing multi-faceted transactions that allow
us to acquire high-quality assets at a discount to replacement cost
Leverage our business units and operational expertise to enhance the
value of our investments
Flexibility to allocate capital to the sectors and geographies with the
best risk-adjusted returns at various points in the real estate cycle
Continually recycle capital from stabilized assets to higher-
yielding opportunities in order to build long-term value for unitholders
8
Conservative Financing Strategy
• We finance our investments predominantly with asset-level, non-recourse debt
• We raise debt in local currency with primarily fixed interest rates
• We source the lowest-cost capital to fund growth
‒ Recycle capital from stabilized assets
‒ Consider issuing equity if expected returns exceed our cost of capital
• We target a distribution payout ratio of 80% of Company Funds From Operations (“CFFO”)
which combined with realized gains from our opportunistic investing allows us to retain
sufficient cash flow for tenant improvements, leasing costs and organic growth
• Our investment-grade corporate credit rating provides financing flexibility
The quality and diversification of our assets support our target of achieving long-term
proportionate debt-to-capital of up to 50%
9
Organic Growth
10BPY’s Unique Growth Drivers
Strong global operating capabilities enable us to acquire real estate in need
of leasing, capital or repositioning, to generate core-plus returns
Extensive development pipeline assembled over time in dynamic,
supply-constrained markets
Access to opportunistic real estate returns through ability to invest in
Brookfield-sponsored property funds
11Compelling entry point
• Yield backed by cash flow from a portfolio of high-quality assets
• Attractive entry point at discount to average analyst NAV of ~$29 per unit
• A $19 per unit investment today has the potential to offer a very attractive return to
shareholders:
$ 55
Current Yield
(5% ‒ 8% distribution growth)
$ 40
$ 47
$ 40
Appreciation
(Multiple of 8 ‒ 11% CFFO growth)
$ 19 20% 25%
CAGR CAGR
Investment
(as of Nasdaq price on 3/29/18)
Today 2021F1 Narrowing
Discount2
1) Based on midpoint of targeted distribution and earnings growth.
2) Using consensus NAV implied multiple.
12Future drivers of growth
• Business plan has BPY achieving CFFO of $2+ per unit by 2021
• Incremental $450-$500 million of CFFO driven by:
Achieving same store growth of between 2-3%
$1.18
Completing active developments on time and budget
Continuing to recycle $1B+ of capital into higher-return opportunities
• Earnings growth will lead to distribution growth with target of $1.60+ per unit by 2021
13Conservative payout ratio
• Payout ratio has sufficient cushion to protect distribution levels and to fund growth:
• 20% of CFFO retained
• Plus income earned on opportunistic investing activities when investments are realized
that is not included in CFFO but represents key component of return
($ per unit) LTM Q1 2018 YTD 2017
CFFO $ 1.49 $ 1.44
Leasing costs and sustaining capital expenditures(1) (0.51) (0.51)
Opportunistic realized gains 0.66 0.66
Adjusted CFFO 1.64 1.59
Distribution to unitholders 1.20 1.18
Payout Ratio 73% 74%
1) Normalized second generation leasing costs, capital expenditures required to sustain properties and other non-cash adjustments.
14Looking forward, we are positioned to
increase earnings from
leasing and development activities in our
core office and retail businesses...
and to realize value from the
capital we have invested in our opportunistic strategy
15Operating Segments
16Core Office Portfolio
Iconic assets in gateway markets
Darling Park, Sydney Brookfield Place, New York
Brookfield Place, Toronto Canary Wharf, London
17Core Office Portfolio
• 148 premier office properties totaling approximately 99 msf in gateway cities around the
globe, including: New York, London, Toronto, Los Angeles, Houston, Sydney, Washington, DC
and Berlin
• Portfolio is 92.6% leased with an average lease term of 8.7 years
• Embedded 8.0% mark-to-market opportunity on expiring leases
• Properties generally financed with non-recourse, asset-level debt
• We offer an integrated, multifaceted real estate business with comprehensive operating
and real estate management capabilities
• Our diversified global structure gives us a competitive advantage in the marketplace as we
are able to leverage relationships across geographies and business lines
Of our top 20 office tenants, 12 are tenants in Brookfield buildings
in more than one city; 6 are tenants in at least three cities
18Core Retail Portfolio
Trophy retail assets that mirror the quality of our office properties
The Woodlands Mall, Houston Ala Moana, Honolulu
Jordan Creek, Des Moines Miami Design District
19Core Retail Portfolio
125 best-in-class malls and urban retail properties totaling over
123 msf throughout the United States
94.3% same-property occupancy
Average rent spreads of 21% for leases commencing in the trailing
12 months
Highly productive stores with $611 average tenant sales/sf
Investment through 34% interest in GGP Inc.
20Class A+ Shopping Centers
• Our class A+ mall portfolio represents approximately 20% of the top 500 malls in the
United States, including 3 of the top 5.1 Although total retail space in the U.S. is likely
to contract in the coming years, high-quality malls continue to demonstrate meaningful
outperformance and serve as the centerpiece of all retail activity in the U.S.
• The declining performance of traditional department stores has created opportunities to
recapture square footage within our existing centers and improve their productivity by
introducing more dining, entertainment and fitness venues as well as e-retailer ‘pop-up’
and permanent stores.
• Development and redevelopment initiatives in our core retail portfolio total
$1.5 billion (~$512 million at BPY’s share), of which $1.4 billion is currently under
construction with a further $100 million in the pipeline. The projects are earning an
average 8% yield on cost.
Inserting new technology into our malls has been a major driver to elevate the
shopping experience – from retail and dining to entertainment and leisure
1) Source: CNBC.com article from 1/29/18.
21Opportunistic Portfolio
Acquiring mispriced assets with upside to earn outsized returns
The Diplomat Resort & Spa, Florida BR7 Office Portfolio, Sao Paulo
Center Parcs, UK Roosevelt Landing, New York
22Opportunistic Strategy
• Acquire high-quality assets at a discount to replacement cost or
intrinsic value
• Execute multifaceted transactions that utilize structuring
Invest on a Value Basis
capabilities
• Seek contrarian investments via market dislocations and other
inefficiencies
• Focus on geographies and sectors where Brookfield has
informational, operational and other competitive advantages
Leverage Brookfield
• Utilize Brookfield’s relationships to originate proprietary
Platform
investments
• Target large-scale investments
• Execute clearly defined strategies for operational improvement:
‒ Leasing: increasing occupancy and rental rates
Enhance Value through
Operating Capabilities ‒ Development: expanding or redeveloping/repositioning
properties
• Achieve opportunistic returns through NOI growth
23Opportunistic Funds: Realizations
Gazeley
• Sale completed December 2017 generating a
realized gain of $395 million €2.4B $590M
GROSS SALE PRICE NET PROCEEDS TO BPY
• Brookfield value creation:
‒ Strategic growth in core markets
‒ Exited non-core assets and markets
47% 4.5x
‒ Implemented best-in-class operations and GROSS IRR GROSS MOC
management
• 47% investment return in just 4-year hold period
Magna Park, Kassel Marly, Rue Jean Jaurès
Fuldabrück,Germany Marly la Ville, France
24Developments and Redevelopments
25Development Strategy
• We opportunistically pursue developments to:
‒ Earn premium risk-adjusted returns compared to acquisitions (~200-250 bps spread)
‒ Upgrade our portfolio with new, trophy assets in key strategic markets
• Development strategy seeks to limit risk:
‒ Typically secure anchor leases for 40% ‒ 50% of space before launching project
‒ Execute guaranteed maximum price contracts to reduce construction risk
‒ Bring in JV partners once project is substantially de-risked
‒ Limit developments to less than 10% of total assets
• Prominent, large-scale projects primarily in the high-growth markets of London and New York
City
• Active office and multifamily projects expected to produce approximately $320 million of
incremental NOI upon completion
26Active Development Projects
Date of
($M) Total Date of Accounting
Office % Pre-Leased SF 000s Cost1 Yield on Cost Completion Stabilization
655 New York Avenue, Washington, DC 70% 766 285 7% Q3 2018 Q3 2020
One Manhattan West, New York 84% 2,117 1,063 6% Q4 2019 Q3 2020
1 Bank Street, London 40% 715 360 7% Q3 2019 Q4 2020
100 Bishopsgate, London 63% 938 1,226 7% Q1 2019 Q2 2020
ICD Brookfield Place, Dubai 0% 1,104 342 11% Q3 2019 Q1 2021
New District – Office, London 33% 423 175 8% Q2 2021 Q2 2021
Subtotal 55% 6,063 $3,451 7%
Multifamily
Village Gateway, Camarillo (California) 413 127 7% Q4 2018 Q2 2019
Studio Plaza, Silver Spring (Maryland) 343 106 7% Q1 2019 Q4 2019
Greenpoint Landing Bldg. G, New York 250 273 6% Q1 2019 Q4 2019
New District – 8 Water St. & 2 George St., London 371 212 5% Q4 2019 Q4 2020
Newfoundland, London 545 349 4% Q1 2020 Q1 2021
Greenpoint Landing Bldg. F, New York 310 358 6% Q3 2020 Q2 2021
Principal Place – Residential, London2 303 266 17% Q1 2019 Q1 2019
Southbank Place, London2 669 314 20% Q4 2019 Q4 2019
New District – 10 Park Drive, London2 269 165 31% Q4 2019 Q4 2019
New District – One Park Drive, London2 430 310 30% Q2 2021 Q2 2021
Subtotal 3,903 $2,480
Total Development 9,966 $5,931
1) In US$ Millions and represents BPY’s share of investment.
2) Represents condominium/market sale developments. Completion date and anticipated return on cost are presented instead of cash stabilization and yield on cost, respectively, 27
for these developments.Redevelopment Strategy
We leverage our in-house design, construction, operations, leasing and
real estate management teams to perform a 360-degree assessment
of a property’s refurbishment and repositioning potential
We time our initial capital investment to maximize returns
(e.g. upon an anchor tenant’s relocation announcement)
We are able to charge higher rents and subsequently
earn higher returns on our investment following the repositioning effort
Our integrated capabilities provide the opportunity to redevelop high-quality,
well-located assets that have leasing challenges or CapEx needs
28Case study – 5 Manhattan West, New York
Acquisition Capital Levered IRR
$700M $350M 34%
450 W. 33rd St. 5 Manhattan West
Skin in the Owned parcels of undeveloped land adjacent to 450 W. 33rd St. since the 1980s and
Game acquisition opportunity required quick response
A Submarket Tenants seeking alternatives to expensive, aging midtown buildings are migrating to
on the Cusp areas more proximate to their employee populations
An Attractive With over 25 million sf of traditional HQ office product being delivered to the
Alternative submarket, 5MW’s ‘warehouse’ layout and vibe attracted tech and new media tenants
A Stunning A unique ‘new’ building centered at the nexus of Chelsea, traditional Midtown, and the
Transformation Hudson Yards District – New York City’s next great mixed-use neighborhood
29Appendix – Structure and Governance
30Corporate Structure
Brookfield Asset Management
(BAM)
30% 60% 69% 68%
Brookfield
Brookfield Renewable Brookfield Property Brookfield Business
Infrastructure
Partners Partners Partners
Partners
(BEP) (BPY) (BBU)
(BIP)
Core Office Core Retail Opportunistic
Brookfield Office Properties GGP Inc. Real estate opportunity funds
Canary Wharf Value-add multifamily funds
Core-plus funds Real estate finance funds
Other direct investments
31Governance
• BPY has an established Master Services Agreement with Brookfield
− Brookfield provides executive oversight of BPY and services relating to the origination of
acquisitions, financings, business planning and supervision of day-to-day management and
administration activities
− Management fees equal to $50 million plus 1.25% of the increase in BPY’s market
capitalization over the initial capitalization of $11.5 billion
− Credit applied for management fees paid on investment in Brookfield-sponsored funds
• Incentive distributions based upon increases in distributions paid to unitholders over pre-defined
thresholds
− 15% participation by Brookfield in distributions over $1.10 per unit
− 25% participation by Brookfield in distributions over $1.20 per unit
− Credit applied for incentive fees paid on investments in Brookfield-sponsored funds
• BPY’s general partner has a majority of independent directors
BPY’s governance is structured to provide alignment of interests with unitholders
32Favorable Structure
• As a global real estate investor, we have structured BPY to provide flexibility to pursue its strategy and
to limit negative tax consequences to our unitholders
• BPY is a Bermuda-based, publicly-traded partnership that owns or has interests in holding corporations
primarily in the U.S., Canada, Australia, Western Europe, Brazil, India and South Korea
• Structure is favorable relative to Master Limited Partnerships (MLPs), and we are committed to
structuring our activities to avoid generating UBTI and ECI1
BPY’s Structure
Type of Entity Bermuda-based, publicly-traded partnership
UBTI1 No
ECI1 No
U.S. Tax Slip Issued1 K1
Canadian Tax Slip Issued1 T5013
1) BPY does not provide legal or tax advice to any third party and as such strongly recommends that each prospective investor review all documentation with their legal and
tax advisors.
33Contacts
Contact Title E-Mail Address Phone Number
Brian Kingston Chief Executive Officer brian.kingston@brookfield.com (212) 978-1646
Bryan Davis Chief Financial Officer bryan.davis@brookfield.com (212) 417-7166
Matt Cherry SVP, Investor Relations & Communications matthew.cherry@brookfield.com (212) 417-7488
34Special Note Regarding Forward-Looking Statements
All amounts are in U.S. dollars unless otherwise known and unknown risks, uncertainties and other foregoing factors and other uncertainties and potential
specified. Unless otherwise indicated, the statistical and factors, many of which are beyond our control, which may events. Except as required by law, we undertake no
financial data in this document is presented as of March cause our actual results, performance or achievements to obligation to publicly update or revise any forward-looking
31, 2018. differ materially from anticipated future results, statements or information, whether written or oral, that
performance or achievement expressed or implied by may be as a result of new information, future events or
This presentation contains “forward-looking information” such forward-looking statements and information. otherwise.
within the meaning of Canadian provincial securities laws
and applicable regulation and “forward-looking Factors that could cause actual results to differ materially This presentation makes reference to net operating
statements” within the meaning of “safe harbor” from those contemplated or implied by forward-looking income (“NOI”), funds from operations (“FFO”), and
provisions of the United States Private Security Litigation statements include, but are not limited to: risks incidental Company funds from operations (“CFFO”). NOI, FFO and
Reform Act of 1995. Forward-looking statements include to the ownership and operation of real estate properties CFFO do not have any standardized meaning prescribed
statements that are predictive in nature, depend upon or including local real estate conditions; the impact or by International Financial Reporting Standards (“IFRS”)
refer to future events or conditions, include statements unanticipated impact of general economic, political and and therefore may not be comparable to similar measures
regarding our operations, business, financial condition, market factors in the countries in which we do business; presented by other companies. The Partnership uses
expected financial results, performance, prospects, the ability to enter into new leases or renew leases on NOI, FFO and CFFO to assess its operating results.
opportunities, priorities, targets, goals, ongoing favorable terms; business competition; dependence on These measures should not be used as alternatives to
objectives, strategies and outlook, as well as the outlook tenants’ financial condition; the use of debt to finance our Net Income and other operating measures determined in
for North American and international economies for the business; the behavior of financial markets, including accordance with IFRS but rather to provide supplemental
current fiscal year and subsequent periods, and include fluctuations in interest and foreign exchanges rates; insights into performance. Further, these measures do
words such as “expects,” “anticipates,” “plans”, “believes,” uncertainties of real estate development or not represent liquidity measures or cash flow from
“estimates”, “seeks,” “intends,” “targets,” “projects,” redevelopment; global equity and capital markets and the operations and are not intended to be representative of
“forecasts,” “likely,” or negative versions thereof and other availability of equity and debt financing and refinancing the funds available for distribution to unitholders either in
similar expressions, or future or conditional verbs such as within these markets; risks relating to our insurance aggregate or on a per unit basis, where presented.
“may,” “will,” “should,” “would” and “could”. coverage; the possible impact of international conflicts
and other developments including terrorist acts; potential For further reference, specific definitions of NOI, FFO,
Forward-looking statements include, without limitation, environmental liabilities; changes in tax laws and other and CFFO are available in the Partnership’s press
statements about target earnings and distribution growth, tax related risks; dependence on management personnel; releases announcing its financial results each quarter.
the growth potential of our existing and new investments, illiquidity of investments; the ability to complete and
return on invested capital, gains on mark-to-market effectively integrate acquisitions into existing operations
releasing and occupancy, targeted same-store growth and the ability to attain expected benefits therefrom;
and returns on redevelopment and development projects, operational and reputational risks; catastrophic events,
the availability of suitable investment opportunities, and such as earthquakes and hurricanes; and other risks and
the availability of financing and our financing strategy. factors detailed from time to time in our documents filed
with the securities regulators in Canada and the United
Although we believe that our anticipated future results, States.
performance or achievements expressed or implied by
the forward-looking statements and information are based We caution that the foregoing list of important factors that
upon reasonable assumptions and expectations, the may affect future results is not exhaustive. When relying
reader should not place undue reliance on forward- on our forward-looking statements or information,
looking statements and information because they involve investors and others should carefully consider the
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