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

may be perceived to be subject to terrorist attacks. Many of our office properties consist of high-rise buildings,which may also be subject to this actual or perceived threat. Our insurance may not cover some losses due toterrorism or may not be obtainable at commercially reasonable rates.We are subject to risks relating to development and redevelopment projects.On a strategic and selective basis, we may develop and redevelop properties. The real estate developmentand redevelopment business involves significant risks that could adversely affect our business, financialcondition and results of operations, including the following:• we may not be able to complete construction on schedule or within budget, resulting in increaseddebt service expense and construction costs and delays in leasing the properties;• we may not have sufficient capital to proceed with planned redevelopment or expansion activities;• we may abandon redevelopment or expansion activities already under way, which may result inadditional cost recognition;• we may not be able to obtain, or may experience delays in obtaining, all necessary zoning, landuse,building, occupancy and other governmental permits and authorizations;• we may not be able to lease properties at all or on favorable terms, or occupancy rates and rents at acompleted project might not meet projections and, therefore, the project might not be profitable;• construction costs, total investment amounts and our share of remaining funding may exceed ourestimates and projects may not be completed and delivered as planned; and• upon completion of construction, we may not be able to obtain, or obtain on advantageous terms,permanent financing for activities that we have financed through construction loans.We are subject to risks that affect the retail environment.We are subject to risks that affect the retail environment, including unemployment, weak income growth,lack of available consumer credit, industry slowdowns and plant closures, low consumer confidence, increasedconsumer debt, poor housing market conditions, adverse weather conditions, natural disasters and the need to paydown existing obligations. All of these factors could negatively affect consumer spending and adversely affectthe sales of our retail tenants. This could have an unfavorable effect on our operations and our ability to attractnew retail tenants.In addition, our retail tenants face competition from retailers at other regional malls, outlet malls andother discount shopping centers, discount shopping clubs, catalogue companies, and through internet sales andtelemarketing. Competition of these types could reduce the percentage rent payable by certain retail tenants andadversely affect our revenues and cash flows. Additionally, our retail tenants are dependent on perceptions byretailers and shoppers of the safety, convenience and attractiveness of our retail properties. If retailers andshoppers perceive competing properties and other retailing options such as the internet to be more convenient orof a higher quality, our revenues may be adversely affected.Some of our retail lease agreements include a co-tenancy provision which allows the mall tenant to pay areduced rent amount and, in certain instances, terminate the lease, if we fail to maintain certain occupancy levelsat the mall. In addition, certain of our tenants have the ability to terminate their leases prior to the leaseexpiration date if their sales do not meet agreed upon thresholds. Therefore, if occupancy, tenancy or sales fallbelow certain thresholds, rents we are entitled to receive from our retail tenants would be reduced and our abilityto attract new tenants may be limited.14