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

of Brookfield’s commercial property operations, or the Financial Statements, for the aforementioned periodsincluded elsewhere in this Form 20-F.In addition to historical information, this MD&A contains forward-looking statements. Readers arecautioned that these forward-looking statements are subject to risks and uncertainties that could cause actualresults to differ materially from those reflected in the forward-looking statements. See section entitled “SpecialNote Regarding Forward-Looking Statements” at the beginning of this Form 20-F and Item 3.D. “KeyInformation—Risk Factors.”Basis of PresentationThe carve-out assets, liabilities and results of operations have not previously been reported on a standalonebasis and therefore the historical Financial Statements presented in this Form 20-F may not be indicative offuture financial condition or operating results. The Financial Statements include the assets, liabilities, revenues,expenses and cash flows of our business, including non-controlling interests therein, which reflect the ownershipinterests of other parties. We also discuss the results of operations on a segment basis, consistent with how wemanage and view our business. Our operating segments are office, including our office development projects,retail, multi-family and industrial, and opportunistic investments.Financial data provided has been prepared using accounting policies in accordance with IFRS. Non-IFRSmeasures used in this MD&A are reconciled to or calculated from such financial information. All operating andother statistical information is presented as if we own 100% of each property in our portfolio, unless otherwisespecified, regardless of whether we own all of the interests in each property, but unless otherwise specified excludesinterests held through Brookfield-sponsored opportunity and finance funds and Brookfield’s interest in CanaryWharf. We believe this is the most appropriate basis on which to evaluate the performance of properties in theportfolio relative to each other and others in the market. We consider the proportionate interests in our investmentsto be relevant in demonstrating our ability to manage the underlying economics of the relevant investments,including the financial performance and cash flows. Proportionate interest in the assets net of minority interestsrepresents our economic interest in the underlying property and is relevant as it represents the portion of theunderlying property net assets and operations that we manage that are attributable to us. All dollar references, unlessotherwise stated, are in millions of U.S. Dollars. Canadian Dollars, Australian Dollars, British Pounds, Euros, andBrazilian Reais are identified as “C$”, “A$”, “£”, “€” and “R$”, respectively.Performance MeasuresTo measure our performance, we focus on: property net operating income (“NOI”), funds from operation(“FFO”), total return (“Total Return”), net asset value (“IFRS Value”) and occupancy levels. NOI, FFO, TotalReturn and IFRS Value do not have standardized meanings prescribed by IFRS and therefore may differ fromsimilar metrics used by other companies. We define each of these measures as follows:• NOI: means revenues from operations of consolidated properties less direct operating costs, whichinclude all expenses attributable to the commercial property operations, such as propertymaintenance, utilities, insurance, realty taxes and property administration costs, and excludeinterest expense, depreciation and amortization, income taxes, fair value gains (losses) and generaland administrative expenses that do not relate directly to operations of a commercial property.• FFO: means income, including equity accounted income, before realized gains (losses), fair valuegains (losses) (including equity accounted fair value gains (losses)), income tax expense (benefits),and less non-controlling interests.• Total Return: means income before income tax expense (benefit), and related non-controllinginterests.• IFRS Value: represents equity attributable to parent company and means total assets less totalliabilities and non-controlling interests.66