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

• interest rate swaps to manage interest rate risk associated with planned refinancings and existingvariable rate debt;• interest rate caps to hedge interest rate risk on certain variable rate debt; and• total return swaps on Brookfield Office Properties’ shares to economically hedge exposure tovariability in its share price under its deferred share unit plan.We also designate Canadian Dollar financial liabilities of certain of our operating entities as hedges of ournet investments in our Canadian operations.Interest Rate HedgingWe have derivatives outstanding that are designated as cash flow hedges of variability in interest ratesassociated with forecasted fixed rate financings and existing variable rate debt.As at March 31, 2012, we had derivatives with a notional amount of $1,241 million in place to fix rateson forecasted fixed rate financings with maturities between 2022 and 2024 at rates between 2.6% and 4.7%. As atDecember 31, 2011, we had derivatives with a notional amount of $1,599 million in place to fix rates onforecasted fixed rate financings with a maturity between 2014 and 2024. The hedged forecasted fixed ratefinancings are denominated in U.S. Dollars and Canadian Dollars.As at March 31, 2012, we had derivatives with a notional amount of $6,139 million in place to fix rateson existing variable rate debt at between 0.3% and 10.4% for debt maturities between 2012 and 2016. As atDecember 31, 2011, we had derivatives with a notional amount of $5,343 million in place to fix rates on existingvariable rate debt at between 0.3% and 9.9% for debt maturities between 2012 and 2016.The fair value of our outstanding interest rate derivative positions as at March 31, 2012 was a loss of$255 million (2011 – loss of $271 million). For the three months ended March 31, 2012 the amount of hedgeineffectiveness recorded in interest expense in connection with our interest rate hedging activities was notsignificant.Foreign Currency HedgingWe have derivatives designated as net investment hedges of our investments in foreign operating entities.As at March 31, 2012, we had hedged a notional amount of £45 million at £0.63/US$ and A$135 million atA$0.95/US$ using foreign currency forward contracts maturing between April and June of 2012. As atDecember 31, 2011, we had hedged a notional amount of £45 million at £0.64/US$ and A$135 million atA$0.98/US$ using foreign currency forward contracts maturing between January and March of 2012.The fair value of our outstanding foreign currency forwards as at March 31, 2012 is a gain of $3 million(2011 – loss of $4 million).In addition, as of March 31, 2012, we had designated C$750 million (2011 – C$903 million) of Canadiandollar financial liabilities as hedges of our net investment in Canadian operations.For the three months ended March 31, 2012, the amount of hedge ineffectiveness recorded in earnings inconnection with the company’s foreign currency hedging activities was not significant.102