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

As at March 31, 2012, the company had derivatives representing a notional amount of $1,241 million in place tofix rates on forecasted fixed rate financings with maturities between 2022 and 2024 at rates between 2.6% and4.7%. As at December 31, 2011, the company had derivatives representing a notional amount of $1,599 millionin place to fix rates on forecasted fixed rate financings with a maturity between 2014 and 2024. The hedgedforecasted fixed rate financings are denominated in US$ and C$.As at March 31, 2012, the company 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, the company had derivatives with a notional amount of $5,343 million in place to fix rateson existing variable rate debt at between 0.3% and 9.9% for debt maturities between 2012 and 2016.The fair value of the company’s outstanding interest rate derivative positions as at March 31, 2012 was a loss of$255 million (2011 – loss of $271 million). For the three months ended March 31, 2012 and 2011, the amount ofhedge ineffectiveness recorded in interest expense in connection with the company’s interest rate hedgingactivities was not significant.Foreign currency hedgingThe company has derivatives designated as net investment hedges of its investments in foreign subsidiaries. As atMarch 31, 2012, the company had hedged a notional amount of £45 million at £0.63/US$ and A$135 million atA$0.95/US$ using foreign currency forward contracts maturing between April and June of 2012. As atDecember 31, 2011, the company had hedged a notional amount of £45 million at £0.64/US$ and A$135 millionat A$0.98/US$ using foreign currency forward contracts maturing between January and March of 2012.The fair value of the company’s outstanding foreign currency forwards as at March 31, 2012 was a gain of $3million (2011 – loss of $4 million).In addition, as of March 31, 2012, the company had designated C$750 million (2011 – C$903 million) ofCanadian dollar financial liabilities as hedges of its 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.Other derivativesThe following other derivatives have been entered into to manage financial risks and have not been designated ashedges for accounting purposes.At March 31, 2012, the company had a total return swap under which it received the return on a notional amountof 1.3 million Brookfield Office Properties common shares in connection with Brookfield Office Properties’deferred share unit plan. The fair value of the total return swap at March 31, 2012 was a gain of $4 million (2011– gain of $2 million) and a gain of $2 million in connection with the total return swap was recognized in generaland administrative expense in the three months then ended (2011 – loss of $17 million).At March 31, 2012, the company had foreign exchange contracts outstanding to swap a €83 million notionalamount to GBP (2011 – €83 million). The fair value of these contracts as at March 31, 2012 was nil (2011 – nil).F-57