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

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We attempt to match the maturity of our office property debt with the average lease term of ourproperties. At December 31, 2011, the average term to maturity of our property debt was 5 years, compared toour average lease term of 7 years. The details of our property debt for our consolidated office properties atDecember 31, 2011 are as follows:(US$ Millions) Weighted Average Rate Debt BalanceUnsecured FacilitiesBOP revolving facility 2.4% $ 264BPO Canada revolving facility 3.3% 117Secured Property DebtFixed rate 6.0% 7,694Variable rate 6.2% 4,457$ 12,532Current $ 1,022Non-current 11,510$ 12,532As at December 31, 2011 we had $782 million of committed corporate credit facilities in BrookfieldOffice Properties consisting of a $660 million revolving credit facility from a syndicate of banks and bilateralagreements between Brookfield Canada Office Properties and a number of Canadian chartered banks for anaggregate revolving credit facility of C$125 million. The balance drawn on these facilities was $381 million(2010 – nil). As at December 31, 2011, we also had $30 million (2010 – $30 million) of indebtedness outstandingto Brookfield.Capital securities includes certain of Brookfield Office Properties’ Class AAA preferred shares issued byBrookfield Office Properties which are presented as liabilities on the basis that they may be settled, at the issuer’soption, in cash or the equivalent value of a variable number of Brookfield Office Properties’ common shares.These represent sources of low cost capital to our business. Brookfield Office Properties had the followingcapital securities outstanding as at the dates indicated:(Millions, except share information)SharesOutstandingCumulativeDividend Rate Dec. 31, 2011 (1) Dec. 31, 2010 (1)Class AAA Series F 8,000,000 6.00% $ 196 $ 200Class AAA Series G 4,400,000 5.25% 110 110Class AAA Series H 8,000,000 5.75% 196 200Class AAA Series I 6,130,022 5.20% 150 179Class AAA Series J 8,000,000 5.00% 196 200Class AAA Series K 6,000,000 5.20% 146 149Total $ 994 $ 1,038(1) Net of transaction costs of $1 million and $2 million at December 31, 2011 and December 31, 2010, respectively.86
Operating results – OfficeThe following table presents the NOI, FFO and Total Return of our office properties by region for the yearsended December 31, 2011, 2010 and 2009:(US$ Millions) United States Canada Australia Europe Total2011 2010 2009 2011 2010 2009 2011 2010 2009 2011 2010 2009 2011 2010 2009NOI (1)Existing properties $ 362 $ 386 $ 380 $ 218 $ 210 $ 192 $ 136 $ 120 $ 125 $32 $31 $ 31 $ 748 $ 747 $ 728Additions, dispositionsand other 199 32 79 41 33 10 128 94 29 - - - 368 159 118561 418 459 259 243 202 264 214 154 32 31 31 1,116 906 846Equity accounted income 172 232 237 17 18 - 62 56 12 - - - 251 306 249Investment and other income 81 48 34 44 65 34 32 5 5 17 24 15 174 142 88814 698 730 320 326 236 358 275 171 49 55 46 1,541 1,354 1,183Interest expense 319 229 239 82 78 56 207 173 91 29 28 28 637 508 414Depreciation and amortization 7 8 6 2 5 5 10 7 5 - - - 19 20 16Non-controlling interests 53 34 22 23 16 13 7 4 - - - - 83 54 35435 427 463 213 227 162 134 91 75 20 27 18 802 772 718UnallocatedInterest expense (70) (67) (71)Operating costs (83) (79) (99)Non-controlling interests (337) (259) (225)FFO (1) 435 427 463 213 227 162 134 91 75 20 27 18 312 367 323Fair value changes 860 732 (626) 211 125 (357) 74 94 (280) 174 49 (52) 1,319 1,000 (1,315)Realized gains 318 35 50 - 28 - - 50 - - - - 318 113 50Non-controlling interests (628) (452) 308 (127) (78) 182 (56) (33) (6) - - - (811) (563) 484Total valuation gains (losses) 550 315 (268) 84 75 (175) 18 111 (286) 174 49 (52) 826 550 (781)Total Return (1) $ 985 $ 742 $ 195 $ 297 $ 302 $ (13) $ 152 $ 202 $(211) $194 $76 $(34) $1,138 $ 917 $ (458)(1) Refer to tables under “—Reconciliation of Performance Measures to IFRS Measures” below in this MD&A for reconciliation of NOI,FFO and Total Return to IFRS measures.NOI generated by existing office properties since the beginning of 2009 (i.e. those held throughout both thecurrent and prior period) is presented in the following table on a constant exchange rate basis, using the averageexchange rate for the year ended December 31, 2011 for the same period in 2010 and 2009. This table illustratesthe stability of these cash flows that arises from the high occupancy levels and long-term lease profile.(US$ Millions) 2011 2010 2009United States $ 362 $ 386 $ 380Canada 218 219 221Australia 136 135 163Europe 32 32 32NOI using normalized foreign exchange (1) 748 772 796Currency variance - (25) (68)$ 748 $ 747 $ 728Average in-place net rent per square foot $ 28.55 $ 28.05 $ 26.90(1) Using the 2011 year to date average foreign exchange rates.NOI for the year ended December 31, 2011 was in line with the prior year, although NOI decreased in theUnited States. The decrease in the United States was driven by occupancy reductions due to the expiry of leasesin New York and Boston. Contributions from additions, dispositions and other since the beginning of thecomparable period includes the consolidation of the U.S. Office Fund ($127 million) and the New ZealandProperty Fund, as well as acquisitions in Houston, Washington, D.C., Denver, Melbourne and Perth, partiallyoffset by the sale of properties in Boston and New Jersey.87
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UNITED STATESSECURITIES AND EXCHANG
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TABLE OF CONTENTSINTRODUCTION AND U
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INTRODUCTION AND USE OF CERTAIN TER
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Historical Performance and Market D
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• the departure of some or all of
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(US$ Millions) Mar. 31, 2012 Dec. 3
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Our company is not, and does not in
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Additionally, as part of our strate
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Our inability to enter into renewal
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The computation of cost reimburseme
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management agreement in limited cir
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• differences in cultures;• cha
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• the same professionals within B
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to the agreement. In addition, beca
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our company. In particular, our uni
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fractional units, without reduction
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federal income tax purposes, direct
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Under legislation recently enacted
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the Property Partnership, income fo
Page 39 and 40: “taxable Canadian property”. Un
Page 41 and 42: THE SPIN-OFFBackground to and Purpo
Page 43 and 44: Transaction AgreementsOur company a
Page 45 and 46: • recognize that superior returns
Page 47 and 48: • Trizec Western Canada - 3.5 mil
Page 49 and 50: As at the dates set out below, we h
Page 51 and 52: Office Property Portfolio (1) Asset
Page 53 and 54: Our strategy is to sign long-term l
Page 55 and 56: Our portfolio also includes, as at
Page 57 and 58: The following table presents the le
Page 59 and 60: properties that we believe have sig
Page 61 and 62: domestic economy and overall low un
Page 63 and 64: Environmental ProtectionWe are comm
Page 65 and 66: consideration for causing the Prope
Page 67 and 68: Operating EntitiesOur business is o
Page 69 and 70: Multi-Family and Industrial Platfor
Page 71 and 72: NOI is used as a key indicator of p
Page 73 and 74: Opportunistic Investmentsopportunit
Page 75 and 76: First Quarter Performance Highlight
Page 77 and 78: development sites, we will proceed
Page 79 and 80: The decrease in equity accounted in
Page 81 and 82: RetailIFRS Value - RetailThe follow
Page 83 and 84: The key valuation metrics of our re
Page 85 and 86: FFO for the three months ended Marc
Page 87 and 88: Financial Highlights and Performanc
Page 89: Equity accounted investments as at
Page 93 and 94: The results of operations are prima
Page 95 and 96: etter than expected leasing market
Page 97 and 98: interests, of $681 million. Discoun
Page 99 and 100: NOI increased over the periods due
Page 101 and 102: The key valuation metrics of these
Page 103 and 104: increase in interest rates on inter
Page 105 and 106: more stringent environmental laws a
Page 107 and 108: Other DerivativesThe following othe
Page 109 and 110: TRZ Holdings; in the event the JV P
Page 111 and 112: available- for-sale. Estimation of
Page 113 and 114: The components of NOI for the three
Page 115 and 116: The following table presents a reco
Page 117 and 118: • fund those capital expenditures
Page 119 and 120: Given the small amount of new offic
Page 121 and 122: The following table presents certai
Page 123 and 124: nominating and governance committee
Page 125 and 126: investments and activities or in re
Page 127 and 128: 7.B. RELATED PARTY TRANSACTIONSRELA
Page 129 and 130: Other ServicesBrookfield may provid
Page 131 and 132: Partnership. See Item 10.B. “Addi
Page 133 and 134: connection with a particular transa
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Page 137 and 138: • any of the Managers is grossly
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Nature and PurposeUnder our limited
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Bermuda Limited Partnership Act 188
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In addition, the BPY General Partne
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Withdrawal of the BPY General Partn
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entity or any other holding entity
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• ratified and confirmed all cont
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agreement, a holder of Property Par
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(including, generally, debt owed to
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In addition, pursuant to the Voting
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In addition, the Property GP LP may
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successor general partner will have
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Indemnification; Limitations on Lia
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subject to U.S. federal income taxa
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the Obama administration proposes t
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asis of units owned by you prior to
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consent of the IRS. The Section 754
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Income Exception, we may determine
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generally would constitute debt-fin
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expected income and assets, the BPY
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any particular time (in light of po
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(c)(d)the amount and description of
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Taxation of Canadian Resident Limit
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Canadian Limited Partner and will b
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CFA in respect of which the FAPI wa
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(under Tax Proposals released on Au
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our actual results of operations an
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10.G. STATEMENT BY EXPERTSThe follo
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PART IIITEM 13.DEFAULTS, DIVIDEND A
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SIGNATURESThe registrant hereby cer
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COMMERCIAL PROPERTY OPERATIONS OF B
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Commercial Property Operations of B
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The financial statements are prepar
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liabilities are provided for using
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In a net investment hedging relatio
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provided in connection with a lease
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over from IAS 39 the requirements f
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Values are most sensitive to change
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NOTE 7: EQUITY ACCOUNTED INVESTMENT
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Included in other non-current asset
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NOTE 13: CAPITAL SECURITIESCapital
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The major components of income tax
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(b) Property net operating incomeNe
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NOTE 22: CAPITAL MANAGEMENT AND LIQ
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Other derivativesThe following othe
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The following table outlines financ
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NOTE 24: RELATED PARTIESIn the norm
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(US$ Millions) Revenue Net operatin
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Schedule III -Supplemental Schedule
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(b) Adoption of Accounting Standard
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distributed by GGP. The Business su
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NOTE 10: OTHER NON-CURRENT LIABILIT
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(b) Property net operating incomePr
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NOTE 19: RELATED PARTIESIn the norm
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The following summary presents fina
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Report of Independent Registered Ch
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BROOKFIELD PROPERTY PARTNERS L.P.NO
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Report of Independent Registered Ch
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BROOKFIELD PROPERTY PARTNERS LIMITE
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TRZ HOLDINGS LLC AND SUBSIDIARIESCo
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Independent Auditor’s ReportTo th
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TRZ HOLDINGS LLC AND SUBSIDIARIESCO
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TRZ HOLDINGS LLC AND SUBSIDIARIESCO
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TRZ HOLDINGS LLC AND SUBSIDIARIESNO
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the associated lease and any contra
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Accounting for Uncertain Tax Positi
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3. REAL ESTATEThe Company’s inves
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Statement of Operations Information
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Future amortization of these intang
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Collateralized Property Loans — P
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Subsequent to April 9, 2009, in con
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INDEX TO UNAUDITED PRO FORMA FINANC
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BROOKFIELD PROPERTY PARTNERS L.P.Un
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BROOKFIELD PROPERTY PARTNERS L.P.Un
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The company and Brookfield intend f
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The unaudited pro forma balance she
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(g) Exclusion of Brookfield’s 2%
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REF58435NAME OF PARTNERSHIP:CERTIFI
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DECLARATIONMade pursuant to The Exe
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REF58435BERMUDALimited Partnership
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Registration No. 46137BERMUDACERTIF
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Dated the 8thday of March 2012.THE
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THIS LIMITED PARTNERSHIP AGREEMENT
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11. TERM: DISSOLUTION: CONTINUATION
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15.2 any certificates or other inst
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Exhibit 4.1MASTER PURCHASE AGREEMEN
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2. Covenants to Complete the Reorga
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4.5 Brookfield and BPY will also, d
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IN WITNESS WHEREOF the parties here
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The Australian Operations are compr
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TABLE OF CONTENTSARTICLE 1INTERPRET
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MASTER SERVICES AGREEMENTTHIS AGREE
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1.1.15 “Equity Enhancement Distri
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1.1.35 “Permit” means any conse
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1.3.5 any reference to this Agreeme
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2.3 Other ManagersThe Managers may,
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3.2.2 For greater certainty and not
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ARTICLE 6INFORMATION AND RECORDS6.1
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Recipients elect to pay all or a po
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ARTICLE 8BROOKFIELD’S OBLIGATIONB
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and against any claims, liabilities
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11.2.1.2 any of the Managers engage
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11.6 Release of Money or other Prop
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12.4.2 if to the Property Partnersh
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IN WITNESS WHEREOF the parties have
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BROOKFIELD DEVELOPMENTS EUROPELTD.B
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BROOKFIELD BPY PROPERTY HOLDINGS II
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6. Governing Law. This Joinder will
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Exhibit 4.4BROOKFIELD ASSET MANAGEM
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BETWEEN:RECITALS:RELATIONSHIP AGREE
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over a majority of the voting inter
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1.3.4 except as otherwise provided
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partners or financial sponsors and
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2.7 ReportingSubject to confidentia
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3.3.4 the execution and delivery of
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ARTICLE 6GENERAL PROVISIONS6.1 Limi
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6.7 Other Holding EntitiesThe parti
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Schedule AIN WITNESS WHEREOF the Ma
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Schedule BIN WITNESS WHEREOF the Ho
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Exhibit 4.5BROOKFIELD ASSET MANAGEM
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THIS AGREEMENT made as of the day
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1.1.17 “FINRA” means Financial
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1.1.39 “U.S. Exchange Act” mean
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Agreement will not operate as a wai
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2.1.5 Priority on Demand Registrati
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(b)follows: (i) first, the securiti
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2.5 Registration ProceduresWhenever
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(g)(h)(i)(j)(k)as practicable there
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(o)(p)(q)(r)(s)(t)(u)cause the Regi
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contained in any Registration State
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fault of the indemnifying party and
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have been delivered by BPY and subs
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TABLE OF CONTENTSARTICLE 1INTERPRET
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ARTICLE 1INTERPRETATION1.1 Definiti
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1.3.6 in the event that any day on
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2.1.3.3 any plan or proposal for a
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3.2.4 the execution and delivery of
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5.5 NoticesAny notice or other comm
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FORM 20-F/A Brookfield Property Partners L.P. - Brookfield Asset ...

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