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

The results of operations are primarily driven by occupancy and rental rates of the office properties andstability of earnings is driven by the average lease term. The following tables present key metrics relating to inplaceleases of our office property portfolio:Occupancy(%)December 31, 2011 December 31, 2010 December 31, 2009SameStoreOccupancy(%)Avg.LeaseTerm(Years)Avg.“InPlace”NetRentMarketNetRentOccupancy(%)SameStoreOccupancy(%)Avg.LeaseTerm(Years)Avg.“InPlace”NetRentMarketNetRentOccupancy(%)SameStoreOccupancy(%)Avg.LeaseTerm(Years)UnitedStates 91.3% 91.9% 7.0 $24.53 $31.21 94.0% 94.8% 7.1 $24.54 $29.20 93.5% 93.7% 7.1 $24.18 $27.83Canada 96.3% 96.6% 8.7 25.48 29.87 96.0% 97.0% 7.6 25.99 24.52 98.6% 98.7% 6.8 24.09 24.52Australia 96.6% 97.7% 6.1 48.33 48.93 98.4% 98.2% 7.1 47.44 48.03 97.7% 97.6% 7.6 42.70 49.10Europe 100.0% 100.0% 10.3 60.47 59.87 100.0% 100.0% 10.0 61.05 60.04 100.0% 100.0% 17.1 60.00 57.00Average 93.3% 93.9% 7.3 $ 28.55 $33.62 95.1% 95.9% 7.2 $28.05 $30.67 95.3% 95.5% 7.2 $26.90 $30.02Avg.“InPlace”NetRentMarketNetRentThe worldwide portfolio occupancy rate in our office properties at December 31, 2011 was 93.3%, downfrom 95.1% at December 31, 2010. The decrease in occupancy levels from prior periods is primarily due to adecline in the United States to 91.3% from 94.0% at December 31, 2010. The decline is due to the sale of 1400Smith Street in Houston, which was 100% leased, lease expirations in New York and Boston, and the acquisitionof underleased properties at attractive values. Occupancy levels elsewhere in our portfolio remain favorable. In2011, we leased approximately 11 million square feet and currently have a leasing pipeline of 5 million squarefeet, which would further improve our leasing profile.We use in-place net rents for our office segment, as a measure of leasing performance, and calculate thisas the annualized amount of cash rent receivable from leases on a per square foot basis including tenant expensereimbursements, less operating expenses being incurred for that space, but excluding the impact of straight-liningrent escalations or amortization of free rent periods. This measure represents the amount of cash generated fromleases in a given period.(US $)• In North America, at December 31, 2011, average in-place net rents across our portfolio remainedflat compared to December 31, 2010. Net rents across this portfolio remained at a discount ofapproximately 24% to the average market rent of $31 per square foot. This gives us confidence thatwe will be able to maintain or increase our net rental income in the coming years and, together withour high overall occupancy, to exercise patience in signing new leases.• In Australia, at December 31, 2011, average in-place net rents in our portfolio was approximately$48 per square foot, which represented a 2% discount to market rents. Leases in Australia typicallyinclude annual escalations, with the result that in-place lease rates tend to increase along with longtermincreases in market rents.The following table presents our leasing activity from December 31, 2010 to December 31, 2011:Dec. 31, 2010 Dec. 31, 2011LeasableArea (1) Leased (1)(000’s Sq.Ft.) (000’s Sq.Ft.)TotalExpiries(000’s Sq. Ft.)ExpiringNet Rent($per Sq.Ft.)LeasingYear OneLeasingNet RentAverageLeasingNet RentAcq.(Disp.)Additions(000’s Sq. Ft.) ($per Sq.Ft.) ($per Sq.Ft.) (000’s Sq. Ft.)LeasableArea(000’s Sq. Ft.)Leased(000’s Sq. Ft.)UnitedStates (2) 44,106 41,457 (7,161) $24.96 5,688 $24.58 $26.98 184 44,019 40,168Canada 17,161 16,474 (3,857) 27.53 3,889 28.41 29.45 (37) 17,108 16,469Australia 10,310 9,869 (1,259) 39.43 1,354 39.66 45.01 (144) 10,166 9,819Europe 556 556 - - - - - - 556 556Total 72,133 68,356 (12,277) $27.25 10,931 $27.81 $30.09 3 71,849 67,012(1) Has been restated to reflect the impact of remeasurements which are done annually in the first quarter.(2) Excludes non-managed properties in the U.S. Office Fund and includes unconsolidated joint ventures.89