6-K
Brookfield Property Partners L.P. (BPYPP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to
Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the month of November 2020
Commission File Number 001-35505
BROOKFIELD PROPERTY PARTNERS L.P.
(Exact name of registrant as specified in its charter)
73 Front Street, Hamilton, HM 12 Bermuda
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F x | Form 40-F ¨ |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
DOCUMENTS FILED AS PART OF THIS FORM6-K
See the Exhibit List to this Form 6-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: November 6, 2020 | Brookfield PROPERTY PARTNERS L.P., | |
|---|---|---|
| by its general partner Brookfield Property Partners | ||
| Limited | ||
| By: | /s/ Jane Sheere | |
| Name: | Jane Sheere | |
| Title: | Secretary |
EXHIBIT LIST
| Exhibit | Description |
|---|---|
| 99.1 | Brookfield Property Partners L.P. Press Release dated November 6, 2020 |
Exhibit 99.1
BROOKFIELD PROPERTY REIT INC. DECLARES QUARTERLY DIVIDENDS
BROOKFIELD NEWS, November 6, 2020 – Brookfield Property REIT Inc. (NASDAQ: BPYU) announced today that its Board of Directors has declared a quarterly dividend of $0.3325 per share on its Class A Stock payable on December 31, 2020 to shareholders of record at the close of business on November 30, 2020.
The Board of Directors has also declared a quarterly dividend on the 6.375% Series A Cumulative Redeemable Preferred Stock (NASDAQ: BPYUP) of $0.39844 per share payable on January 1, 2021, to stockholders of record on December 15, 2020.
# # #
About Brookfield Property REIT Inc.
Brookfield Property REIT Inc. (“BPYU”) is a subsidiary of Brookfield Property Partners L.P., (NASDAQ: BPY; TSX: BPY.UN) (“BPY”) one of the world’s premier real estate companies, with approximately $88 billion in total assets. BPYU was created as a public security that is intended to offer economic equivalence to an investment in BPY in the form of a U.S. REIT stock.
Brookfield Property Partners are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, logistics, hospitality, self-storage, student housing and manufactured housing assets.
Further information is available at bpy.brookfield.com/bpyu.
Contact:
Matt Cherry
Senior Vice President, Investor Relations
Tel.: (212) 417-7488
Email: Matthew.Cherry@brookfield.com
CONSOLIDATED BALANCE SHEETS
| Sep. 30, | Dec. 31, | |||
|---|---|---|---|---|
| (US$ Millions) | 2020 | 2019 | ||
| Assets | ||||
| Investment properties | $ | 73,246 | $ | 75,511 |
| Equity accounted investments in properties | 19,573 | 20,764 | ||
| Property, plant and equipment | 4,980 | 7,278 | ||
| Financial assets | 1,448 | 1,250 | ||
| Accounts receivable and other | 5,441 | 5,015 | ||
| Cash and cash equivalents | 1,803 | 1,438 | ||
| Assets held for sale | 1,757 | 387 | ||
| Total Assets | $ | 108,248 | $ | 111,643 |
| Liabilities | ||||
| Corporate borrowings | $ | 2,721 | $ | 1,902 |
| Asset-level debt obligations | 45,253 | 47,466 | ||
| Subsidiary borrowings, non-recourse to BPY | 6,574 | 6,022 | ||
| Capital securities | 3,037 | 3,075 | ||
| Deferred tax liability | 2,615 | 2,515 | ||
| Accounts payable and other liabilities | 5,784 | 5,588 | ||
| Liabilities associated with assets held for sale | 825 | 140 | ||
| Equity | ||||
| Preferred equity | 699 | 420 | ||
| General partner | 4 | 4 | ||
| Limited partners | 11,706 | 13,274 | ||
| Non-controlling interests attributable to: | ||||
| Limited partner units of the operating partnership held by Brookfield Asset Management Inc. | 12,327 | 13,200 | ||
| Limited partner units of Brookfield Office Properties Exchange LP | 74 | 87 | ||
| FV LTIP units of the operating partnership | 51 | 35 | ||
| Class A shares of Brookfield Property REIT Inc. | 1,127 | 1,930 | ||
| Interests of others in operating subsidiaries and properties | 15,451 | 15,985 | ||
| Total Equity | 41,439 | 44,935 | ||
| Total Liabilities and Equity | $ | 108,248 | $ | 111,643 |
Brookfield Property Partners L.P. 1
CONSOLIDATED STATEMENT OF OPERATIONS
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep. 30, | Sep. 30, | |||||||||||
| (US$ Millions) | 2020 | 2019 | 2020 | 2019 | ||||||||
| Commercial property and hospitality revenue | $ | 1,545 | $ | 1,852 | $ | 4,666 | $ | 5,706 | ||||
| Direct commercial property and hospitality expense | (677 | ) | (776 | ) | (1,998 | ) | (2,403 | ) | ||||
| 868 | 1,076 | 2,668 | 3,303 | |||||||||
| Investment and other revenue | 91 | 165 | 307 | 410 | ||||||||
| Share of net earnings from equity accounted investments | 76 | 409 | (717 | ) | 1,499 | |||||||
| 1,035 | 1,650 | 2,258 | 5,212 | |||||||||
| Expenses | ||||||||||||
| Interest expense | (642 | ) | (738 | ) | (1,950 | ) | (2,194 | ) | ||||
| Depreciation and amortization | (83 | ) | (86 | ) | (253 | ) | (256 | ) | ||||
| General and administrative expense | (205 | ) | (214 | ) | (596 | ) | (656 | ) | ||||
| Investment and other expense | (5 | ) | — | (18 | ) | (10 | ) | |||||
| 100 | 612 | (559 | ) | 2,096 | ||||||||
| Fair value gains, net | (156 | ) | 449 | (1,269 | ) | (273 | ) | |||||
| Income tax (expense) benefit | (79 | ) | (191 | ) | (192 | ) | (217 | ) | ||||
| Net income | $ | (135 | ) | 870 | $ | (2,020 | ) | $ | 1,606 | |||
| Net income attributable to: | ||||||||||||
| General partner | $ | — | $ | — | $ | — | $ | — | ||||
| Limited partners | (107 | ) | 218 | (919 | ) | 418 | ||||||
| Non-controlling interests: | ||||||||||||
| Limited partner units of the operating partnership held by Brookfield Asset Management Inc. | (109 | ) | 218 | (923 | ) | 427 | ||||||
| Limited partner units of Brookfield Office Properties Exchange LP | (1 | ) | 2 | (6 | ) | 3 | ||||||
| FV LTIP units of the operating partnership | — | — | (3 | ) | — | |||||||
| Class A shares of Brookfield Property REIT | (12 | ) | 36 | (117 | ) | 86 | ||||||
| Interests of others in operating subsidiaries and properties | 94 | 396 | (52 | ) | 672 | |||||||
| $ | (135 | ) | $ | 870 | $ | (2,020 | ) | $ | 1,606 |
Brookfield Property Partners L.P. 2
RECONCILIATION OF NON-IFRS MEASURES
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep. 30, | Sep. 30, | |||||||||||
| (US$ Millions) | 2020 | 2019 | 2020 | 2019 | ||||||||
| Commercial property and hospitality revenue | $ | 1,545 | $ | 1,852 | $ | 4,666 | $ | 5,706 | ||||
| Direct commercial property and hospitality expense | (677 | ) | (776 | ) | (1,998 | ) | (2,403 | ) | ||||
| NOI | 868 | 1,076 | 2,668 | 3,303 | ||||||||
| Investment and other revenue | 91 | 165 | 307 | 410 | ||||||||
| Share of equity accounted income excluding fair value gains | 151 | 177 | 516 | 622 | ||||||||
| Interest expense | (642 | ) | (738 | ) | (1,950 | ) | (2,194 | ) | ||||
| General and administrative expense | (205 | ) | (214 | ) | (596 | ) | (656 | ) | ||||
| Investment and other expense | (5 | ) | — | (18 | ) | (10 | ) | |||||
| Depreciation and amortization of non-real estate assets | (18 | ) | (14 | ) | (53 | ) | (45 | ) | ||||
| Non-controlling interests of others in operating subsidiaries and properties in FFO | (106 | ) | (191 | ) | (296 | ) | (620 | ) | ||||
| FFO | 134 | 261 | 578 | 810 | ||||||||
| Depreciation and amortization of non-real estate assets, net^(1)^ | 13 | 10 | 36 | 31 | ||||||||
| Transaction costs^(1)^ | 7 | 35 | 5 | 72 | ||||||||
| Gains/losses on disposition of non-investment properties^(1)^ | — | 1 | 3 | — | ||||||||
| Imputed Interest^(2)^ | 5 | 15 | 21 | 42 | ||||||||
| LP Investments realized gains^(3)^ | 3 | — | 17 | 87 | ||||||||
| BSREP III earnings^(4)^ | 2 | 2 | 5 | 11 | ||||||||
| Company FFO and realized gains | $ | 164 | $ | 324 | $ | 665 | $ | 1,053 | ||||
| FFO | $ | 134 | $ | 261 | $ | 578 | $ | 810 | ||||
| Depreciation and amortization of real estate assets | (65 | ) | (72 | ) | (200 | ) | (211 | ) | ||||
| Fair value (losses) gains, net | (156 | ) | 449 | (1,269 | ) | (273 | ) | |||||
| Share of equity accounted income - Non FFO | (75 | ) | 232 | (1,233 | ) | 877 | ||||||
| Income tax (expense) benefit | (79 | ) | (191 | ) | (192 | ) | (217 | ) | ||||
| Non-controlling interests of others in operating subsidiaries and properties in non-FFO | 12 | (205 | ) | 348 | (52 | ) | ||||||
| Non-controlling interests of others in operating subsidiaries and properties | 94 | 396 | (52 | ) | 672 | |||||||
| Net income | $ | (135 | ) | $ | 870 | $ | (2,020 | ) | $ | 1,606 |
| ^(1)^Presented net of non-controlling interests on a proportionate basis. |
|---|
| ^(2)^Represents imputed interest on commercial developments accounted for under the equity method under IFRS. |
| --- |
| ^(3 )^Net of associated carried interest to be due at a future date. |
| --- |
| ^(4)^BSREP III is now accounted for as a financial asset which results in FFO being recognized in line with distributions. As such, the BSREP III earnings adjustment reflects our proportionate share of the Company FFO. |
| --- |
Brookfield Property Partners L.P. 3
NET INCOME PER UNIT
| Three months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep. 30, 2020 | Sep. 30, 2019 | ||||||||||||||
| (US$ Millions, except per unit amounts) | Net income attributable to Unitholders | Average<br> number of<br> units | Per unit | Net income attributable to Unitholders | Average number of units | Per unit | |||||||||
| Basic | $ | (229 | ) | 933.5 | $ | (0.25 | ) | $ | 474 | 950.1 | $ | 0.50 | |||
| Preferred share dividends | (11 | ) | — | — | (5 | ) | — | — | |||||||
| Number of units on conversion of preferred shares^(1)^ | — | 70.1 | — | — | 70.1 | — | |||||||||
| Basic per IFRS | (240 | ) | 1,003.6 | (0.24 | ) | 469 | 1,020.2 | 0.46 | |||||||
| Dilutive effect of conversion of capital securities and options^(2)^ | — | — | — | — | — | — | |||||||||
| Fully-diluted per IFRS | $ | (240 | ) | 1,003.6 | $ | (0.24 | ) | $ | 469 | 1,020.2 | $ | 0.46 | |||
| ^(1)^IFRS requires the inclusion of preferred shares that are mandatorily convertible into units at a price of $25.70 without an add back to earnings of the associated carry on the preferred shares. | |||||||||||||||
| --- | |||||||||||||||
| ^(2)^For the three months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. | |||||||||||||||
| Three months ended | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Sep. 30, 2020 | Sep. 30, 2019 | ||||||||||||||
| (US$ Millions, except per unit amounts) | Net income attributable to Unitholders | Average<br> number of<br> units | Per unit | Net income attributable to Unitholders | Average number of units | Per unit | |||||||||
| Basic per management | $ | (229 | ) | 933.5 | $ | (0.25 | ) | $ | 474 | 950.1 | $ | 0.50 | |||
| Preferred share dividends | (11 | ) | — | — | (5 | ) | — | — | |||||||
| Dilutive effect of conversion of preferred shares^(1)^ | 29 | 70.1 | 0.41 | 29 | 70.1 | 0.41 | |||||||||
| Dilutive effect of conversion of capital securities and options^(2)^ | — | — | — | — | — | — | |||||||||
| Fully-diluted per management | $ | (211 | ) | 1,003.6 | $ | (0.21 | ) | $ | 498 | 1,020.2 | $ | 0.49 | |||
| ^(1)^Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry. | |||||||||||||||
| --- | |||||||||||||||
| ^(2)^For the three months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. |
Brookfield Property Partners L.P. 4
NET INCOME PER UNIT
| Nine months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep. 30, 2020 | Sep. 30, 2019 | ||||||||||||||
| (US$ Millions, except per unit amounts) | Net income attributable to Unitholders | Average number of units | Per unit | Net income attributable to Unitholders | Average number of units | Per unit | |||||||||
| Basic | $ | (1,968 | ) | 937.5 | $ | (2.10 | ) | $ | 934 | 957.6 | $ | 0.98 | |||
| Preferred share dividends | (31 | ) | — | — | (8 | ) | — | — | |||||||
| Number of units on conversion of preferred shares^(1)^ | — | 70.1 | — | — | 70.1 | — | |||||||||
| Basic per IFRS | (1,999 | ) | 1,007.6 | (1.98 | ) | 926 | 1,027.7 | 0.90 | |||||||
| Dilutive effect of conversion of capital securities and options^(2)^ | — | — | — | 8 | 9.0 | 0.89 | |||||||||
| Fully-diluted per IFRS | $ | (1,999 | ) | 1,007.6 | $ | (1.98 | ) | $ | 934 | 1,036.7 | $ | 0.90 | |||
| ^(1)^IFRS requires the inclusion of preferred shares that are mandatorily convertible into units at a price of $25.70 without an add back to earnings of the associated carry on the preferred shares. | |||||||||||||||
| --- | |||||||||||||||
| ^(2)^For the nine months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. | |||||||||||||||
| Nine months ended | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Sep. 30, 2020 | Sep. 30, 2019 | ||||||||||||||
| (US$ Millions, except per unit amounts) | Net income attributable to Unitholders | Average number of units | Per unit | Net income attributable to Unitholders | Average number of units | Per unit | |||||||||
| Basic per management | $ | (1,968 | ) | 937.5 | $ | (2.10 | ) | $ | 934 | 957.6 | $ | 0.98 | |||
| Preferred share dividends | (31 | ) | — | — | (8 | ) | — | — | |||||||
| Dilutive effect of conversion of preferred shares^(1)^ | 88 | 70.1 | 1.26 | 88 | 70.1 | 1.26 | |||||||||
| Dilutive effect of conversion of capital securities and options^(2)^ | — | — | — | 8 | 9.0 | 0.89 | |||||||||
| Fully-diluted per management | $ | (1,911 | ) | 1,007.6 | $ | (1.90 | ) | $ | 1,022 | 1,036.7 | $ | 0.99 | |||
| ^(1)^ Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry. | |||||||||||||||
| --- | |||||||||||||||
| ^(2)^For nine months ended September 30, 2020, capital securities were fully redeemed and therefore excluded from the calculation of fully-diluted net income per IFRS. |
Brookfield Property Partners L.P. 5