FORM 20-F/A Brookfield Property Partners L.P. - Brookfield Asset ...

increase in interest rates on interest expense relating to our corporate and commercial floating rate debt wouldresult in an increase in an annual interest expense of $80 million. A 100 basis point increase in interest rates oninterest expense relating to fixed rate property debt due within one year would result in an increase in an annualinterest expense of $5 million. In addition, we have exposure to interest rates within our equity accountedinvestments. We have mitigated, to some extent, the exposure to interest rate fluctuations through interest ratederivative contracts. See “Derivative Financial Instruments” below in this MD&A.At March 31, 2012 we have a level of indebtedness of 54% of fair value of our portfolio of properties(2011 – 56%). It is our view that such level of indebtedness is conservative given the lending parameterscurrently existing in the real estate marketplace and the fair value of our assets, and based on this, we believe thatall debts will be financed or refinanced as they come due in the foreseeable future.Credit RiskCredit risk arises from the possibility that tenants may be unable to fulfill their lease commitments. Wemitigate this risk by ensuring that our tenant mix is diversified and by limiting our exposure to any one tenant.We also maintain a portfolio that is diversified by property type so that exposure to a business sector is lessened.As at March 31, 2012 no one office tenant represented more than 7.0% of total leasable area in our officesegment.The following list shows major tenants with over one million square feet of space in our office portfolioby leased area and their respective credit ratings and lease commitments as at March 31, 2012:TenantPrimary LocationCreditRating (1)Year ofExpiry (2)Total(000’sSq. Ft.)Sq. Ft.(%)Various Government Agencies All markets AA+/AAA Various 5,985 8.4%Bank of America/Merrill Lynch (3) Toronto/New York/Denver/Los Angeles A/A- Various 4,976 7.0%Wells Fargo/Wachovia Securities (4) New York A+ 2019 1,545 2.2%CIBC World Markets (5) Toronto/New York/Calgary A+ 2033 1,436 2.0%Suncor Energy Calgary BBB+ 2028 1,352 1.9%Century Link Denver Not Rated 2017 1,278 1.8%Kellogg Brown & Root Houston Not Rated 2030 1,268 1.8%Royal Bank of CanadaVancouver/Toronto/Calgary/New York/Los Angeles/Minneapolis AA- 2023 1,259 1.8%Bank of Montreal Calgary/Toronto A+ 2024 1,143 1.6%Total 20,242 28.5%(1) From Standard & Poor’s Rating Services, Moody’s Investment Services, Inc. or DBRS Limited. Reflects credit rating of tenant anddoes not reflect credit rating of any subtenants.(2) Reflects the year of maturity related to lease(s) beyond 2016 and is calculated for multiple leases on a weighted average basis based onsquare feet where practicable.(3) Bank of America/Merrill Lynch leases 4.6 million square feet in the World Financial Center, of which they occupy 2.7 million squarefeet with the balance being leased to various subtenants ranging in size up to 500,000 square feet. Of this 2.7 million square feet,1.9 million is in 4 World Financial Center, and 0.8 million square feet is in 2 World Financial Center. Of the total leased space,3.4 million square feet will expire in 2013.(4) Wells Fargo/Wachovia Securities leases 1.4 million square feet at One New York Plaza, of which they occupy 148,000 square feetwith the balance being leased to five subtenants ranging in size up to 756,000 square feet.(5) CIBC World Markets leases 1,094,000 square feet at 300 Madison Avenue in New York, of which they sublease 925,000 square feetto PricewaterhouseCoopers LLP.99