bpy - supplemental 2016-q3/media/files/b/brookfield-bpy... · 2016-11-18 · 3 brookfield property...

Brookfield Property Partners L.P. NYSE: BPY TSX: BPY.UN

Supplemental InformationFor the quarter ended September 30

2016

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Brookfield Property Partners L.P.

FORWARD-LOOKING STATEMENTSThis supplemental information package contains “forward-looking information” within the meaning of Canadian provincial securities laws and applicable regulations and forward-looking statements within the meaning of “safe

harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include

statements regarding our operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook, as well as the outlook

for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”,

“forecasts”, “likely”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the

reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause

our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: risks incidental to the ownership and operation of real estate properties

including local real estate conditions; the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the ability to enter into new leases or renew leases on favourable

terms; business competition; dependence on tenants’ financial condition; the use of debt to finance our business; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates; uncertainties of

real estate development or redevelopment; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; risks relating to our insurance coverage; the possible impact

of international conflicts and other developments including terrorist acts; potential environmental liabilities; changes in tax laws and other tax related risks; dependence on management personnel; illiquidity of investments; the

ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits therefrom; operational and reputational risks; catastrophic events, such as earthquakes and hurricanes;

and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements or information, investors and others should carefully consider the foregoing

factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a

result of new information, future events or otherwise.

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS ACCOUNTING MEASURESThis supplemental information package makes reference to net operating income ("NOI"), same-property NOI, and funds from operations ("FFO") and Company FFO (“Company FFO") on a total and per unit basis. These terms

do not have any standardized meaning prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and therefore may not be comparable to similar measures

presented by other companies. Brookfield Property Partners L.P. ("BPY" or the "partnership") defines NOI as revenues from commercial and hospitality operations of consolidated properties less direct property expenses. Same-

property NOI is a subset of NOI, which excludes NOI that is earned from assets acquired, disposed of or developed during the periods presented, or not of a recurring nature, and from opportunistic assets. Our definition of FFO

includes all of the adjustments that are outlined in the National Association of Real Estate Investment Trusts ("NAREIT") definition of funds from operations, including the exclusion of gains (or losses) from the sale of investment

property, the add back of any depreciation and amortization related to real estate assets and the adjustment to reflect our interest in unconsolidated partnerships and joint ventures. In addition to the adjustments prescribed

by NAREIT, we also make adjustments to exclude any unrealized fair value gains (or losses) that arise as a result of reporting under IFRS, except gains (or losses) associated with properties developed for sale, and income taxes

that arise as certain of our subsidiaries are structured as corporations as opposed to real estate investment trusts ("REIT"). These additional adjustments result in an FFO measure that is similar to that which would result if the

partnership was organized as a REIT that determined net income in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), which is the type of organization on which the NAREIT definition is premised. Our

FFO measure will differ from other organizations applying the NAREIT definition to the extent of certain differences between the IFRS and U.S. GAAP reporting frameworks, principally related to the recognition of lease termination

income, which do not have a significant impact on the FFO measure reported. The partnership uses NOI and FFO to assess its operating results. NOI is important in assessing operating performance and FFO is a widely used

measure to analyze real estate. The partnership reconciles FFO to net income attributable to Unitholders (see the glossary of terms for definition) as opposed to cashflow from operating activities as it believes net income

attributable to Unitholders is the most comparable measure. Company FFO is defined as FFO before the impact of depreciation and amortization of non-real estate assets, transaction costs, gains (losses) associated with non-

investment properties plus the FFO that would have been attributable to the partnership's shares of General Growth Properties, Inc. ("GGP") if all outstanding warrants of GGP were exercised on a cashless basis. It also includes

dilution adjustments to undiluted FFO as a result of the net settled warrants. The partnership believes this adjustment appropriately reflects its full economic interest in GGP based on the common shares and warrants owned

by the partnership, as such warrants are currently exercisable. Refer to the last page of this supplemental package for certain definitions.

In calculating net income attributable to Unitholders per unit, the partnership excludes the impact of mandatorily convertible preferred shares in determining the average number of units outstanding as the holders of mandatorily

convertible preferred shares do not participate in current earnings. The partnership reconciles this measure to basic net income attributable to Unitholders per unit determined in accordance with IFRS which includes the effect

of mandatorily convertible preferred shares in the basic average number of units outstanding.

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TABLE OF CONTENTS

Page PageSummary of Results Operating Statistics (cont'd)

Financial Overview 3 Core Office (cont'd)Platform Overview 4 Historical Occupancy 26Core Office 5 Historical Rents 27Core Retail 6 Proportionate Leasing Activity 28Opportunistic 7 Proportionate Lease Expiry Analysis 30Corporate 8 Top Tenants 31

Consolidated Overview Development Sites 32Results from Operations 9 Debt 33Proportionate Results from Operations by Segment 10 Capital Expenditures 36Financial Position 12 Core RetailProportionate Financial Position by Segment 13 Net Operating Income and Key Performance Metrics 37Proportionate Fair Value Continuity 14 Signed Leases and Lease Expiry Analysis 38Proportionate Summary Cash Flow Information and Liquidity 16 Top Tenants 39Proportionate Debt Summary 17 Development Sites 40Proportionate Capital Securities and Preferred Equity 18 OpportunisticPer Unit Calculations 19 Summary of Opportunistic Investments 41Unit Information 21 Corporate

Operating Statistics Foreign Currency Exposure 43Core Office Management Fee and Incentive Distribution 44

Net Operating Income 23 Glossary of Terms 45Summary of Properties 25

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Summary of ResultsFINANCIAL OVERVIEW(1)

Current Quarter HighlightsCompany FFO(2) Net income attributable to unitholders

Invested capital Quarter-to-date Year-to-date Quarter-to-date Year-to-date(US$ Millions) Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Core Office $ 15,196 $ 15,984 $ 149 $ 163 $ 448 $ 452 $ 141 $ 112 $ 495 $ 1,966Core Retail 8,852 8,579 108 109 327 321 9 162 413 334Other Opportunistic 4,429 4,251 90 66 273 177 335 104 509 253Corporate (5,861) (6,856) (115) (120) (349) (353) 770 (185) 438 (501)Unitholder equity $ 22,616 $ 21,958 $ 232 $ 218 $ 699 $ 597 $ 1,255 $ 193 $ 1,855 $ 2,052

Key MetricsQuarter-to-date Year-to-date

(US$) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Company FFO per unit(3) $ 0.33 $ 0.31 $ 0.98 $ 0.84Net income per unit(3) 1.77 0.27 2.61 2.88Company FFO and realized gains per unit(3,4) 1.09 0.45 2.35 1.69Distributions per unit(3) 0.28 0.27 0.84 0.80

(US$ Millions, except per unit amounts) Sep. 30, 2016 Dec. 31, 2015Unitholder equity per unit(5) $ 30.98 $ 30.09Commercial properties 50,428 51,973Commercial developments 5,011 4,264Total assets 65,843 65,543Corporate borrowings 1,830 1,632Funds subscription facilities 324 776Asset-level borrowings 27,030 27,385Subsidiary borrowings 1,526 1,370

(1) Certain investments have been reclassified between segments due to the nature of the investments and the anticipated hold period. As a result, comparative periods have been re-cast on a re-segmented basis(2) A reconciliation of FFO to Company FFO is included on page 9(3) Per unit calculations are based on the basic number of units outstanding and detailed on pages 19 - 20(4) Realized gains for investment properties sold during the quarter represent difference between transaction price and invested capital. These gains have previously been recognized in earnings through fair value gainsadjustments(5)Assumes conversion of mandatorily convertible preferred shares. Refer to page 19 for further detail

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Summary of ResultsPLATFORM OVERVIEW

CORE OFFICE

▪ 149 premier office properties totaling 100.7 million square feet in gateway markets including New York City, London, Toronto,Los Angeles, Sydney and Berlin.

▪ 9.9 million square feet of development projects currently underway.

▪ Primarily consists of our wholly-owned subsidiary Brookfield Office Properties Inc. (“BPO”) and a 50/50 joint venture interest inCanary Wharf Group plc (“Canary Wharf”), as well as urban multifamily development sites currently under construction.

CORE RETAIL

▪ 126 best-in-class retail properties totaling 124.0 million square feet throughout the United States through our 34% fully-dilutedinterest in GGP.

OPPORTUNISTIC

▪ Includes investments in Brookfield Asset Management-sponsored opportunity funds, through which we own interests in:

▪ 110 office properties comprising 23.9 million square feet of office space in the United States, United Kingdom, Braziland India.

▪ Approximately 27.2 million square feet of retail space across 44 properties in the United States and in select Brazilianmarkets.

▪ Approximately 46.2 million square feet of industrial space across 185 properties, primarily consisting of modern logisticsassets in North America and Europe.

▪ Approximately 32,000 multifamily units throughout the United States.▪ 19 hospitality properties in North America, Europe and Australia with over 14,000 rooms.▪ Over 300 properties leased to car dealerships in North America under triple net lease arrangements.▪ Over 160 self-storage properties comprising 12.7 million square feet across the United States.▪ 14 student housing properties with over 5,800 beds in the United Kingdom.

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Summary of Results

HIGHLIGHTS

▪ The Core Office business generated Company FFO of $149M in the thirdquarter of 2016, compared to $163M in the same period in 2015. Thedecrease of $14M was driven by the impact of asset dispositions andforeign exchange, offset by same-property growth of 5% (excluding theimpact of foreign exchange), particularly in lower Manhattan, as westarted to recognize rent on leases signed at Brookfield Place New York.

▪ Company FFO decreased by $1M from the second quarter of 2016 asa result of asset dispositions and lease expiries in Sydney, Houston andLos Angeles which were partially offset by incremental revenue fromleases at Brookfield Place New York.

▪ Company FFO and realized gains of $281M include gains earned on thedisposition of One Shelley Street in Sydney during the current quarter.

▪ Fair value losses primarily reflect valuation adjustments for propertiesin Toronto and Calgary as a result of leasing changes as well as mark-to-market adjustments on certain derivatives.

▪ Equity attributable to Unitholders decreased by $788M since the prioryear-end as result of foreign exchange, primarily related to ourinvestments in the UK, and distributions of capital raised through assetsales and refinancings.

CORE OFFICE

Proportionate Results from OperationsQuarter-to-date Year-to-date

(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Revenue $ 622 $ 644 $ 1,881 $ 1,889Direct expenses (271) (282) (792) (811)NOI 351 362 1,089 1,078Investment and other income 8 1 21 24Fee revenue 14 12 45 41Interest expense (159) (159) (500) (509)General and administrative expense (40) (37) (132) (118)Non-controlling interests (25) (16) (75) (64)Company FFO 149 163 448 452Company FFO and realized gains 281 217 946 706

FFO 142 155 445 422Fair value gains, net (90) (29) 8 1,342Income taxes 69 (18) 11 207Non-controlling interests 20 4 31 (5)Net income attributable to Unitholders $ 141 $ 112 $ 495 $ 1,966

Proportionate Financial Position(US$ Millions) Sep. 30, 2016 Dec. 31, 2015Commercial properties $ 30,871 $ 33,123Commercial developments 4,422 3,447Cash and cash equivalents 526 595Other assets 1,595 1,465Assets held for sale 1,201 507Total assets 38,615 39,137Debt obligations 17,047 17,379Capital securities 301 427Deferred tax liabilities 1,145 1,191Other liabilities 2,129 2,076Liabilities associated with assets held for sale 621 105Total liabilities 21,243 21,178Non-controlling interests 2,176 1,975Equity attributable to Unitholders $ 15,196 $ 15,984

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Summary of ResultsCORE RETAIL

HIGHLIGHTS

▪ The Core Retail business generated Company FFO of $108M in the thirdquarter of 2016, compared to $109M in the prior year, as 4% same-property NOI growth was more than offset by the impact of assetdispositions, primarily the sale of a 49% interest in Fashion Show.

▪ Compared to the prior quarter, Company FFO was flat.

▪ Company FFO and realized gains in the current period year include gainsrecorded on the partial disposition of Fashion Show in Las Vegas, NV.

▪ Fair value gains reflect mark-to-market losses on the GGP warrants weown as a result of a decline in GGP's underlying share price during thequarter. These losses were offset by the impact of improved leasingmetrics at certain properties as a result of stronger operatingperformance.

▪ Equity attributable to Unitholders increased by $273M compared toDecember 31, 2015 driven by positive net income, including valuationgains on the GGP warrants we hold, partially offset by dividendsreceived from GGP.


(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Revenue $ 215 $ 225 $ 658 $ 659Direct expenses (55) (58) (168) (172)NOI 160 167 490 487Investment and other income 6 1 18 14Fee revenue 6 6 17 20Net contribution from GGP warrants 12 11 35 32Interest expense (57) (57) (173) (174)General and administrative expense (17) (18) (54) (53)Non-controlling interests (2) (1) (6) (5)Company FFO 108 109 327 321Company FFO and realized gains 291 116 547 584

FFO 95 96 297 280Fair value gains, net (87) 66 112 54Income taxes 2 — 6 —Non-controlling interests (1) — (2) —Net income attributable to Unitholders $ 9 $ 162 $ 413 $ 334

Proportionate Financial Position(US$ Millions) Sep. 30, 2016 Dec. 31, 2015Commercial properties $ 12,336 $ 12,521Commercial developments 194 224Cash and cash equivalents 259 164Other assets 2,410 2,428Total assets 15,199 15,337Debt obligations 5,341 5,722Deferred tax liabilities (5) —Other liabilities 803 816Liabilities associated with assets held for sale — 11Total liabilities 6,139 6,549Non-controlling interests 208 209Equity attributable to Unitholders $ 8,852 $ 8,579

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Summary of Results

HIGHLIGHTS

▪ Our Opportunistic business generated Company FFO of $90M in thethird quarter of 2016, compared to $66M in the same period in 2015.The current period includes $10M earned on the disposition of adevelop-for-sale asset; however, the majority of this increase was dueto incremental capital invested in the last year:

▪ Associated Estates Realty Corp. with a portfolio of 12,800 multifamilyunits across the United States and Center Parcs Group (“Center ParcsUK”), which operates five short-stay holiday resorts in the UnitedKingdom, both of which we acquired in the third quarter of 2015.

▪ A portfolio of seven office assets in Rio de Janeiro and São Paulo, whichwe acquired in the fourth quarter of 2015 and first quarter of 2016.

▪ A portfolio of 108 self-storage assets in the United States, which weacquired in the first quarter of 2016 and an additional 53 propertiesacquired in the second and third quarters of 2016.

▪ A portfolio of 13 student housing properties in the United Kingdom andthe Vintage Estate hotel and specialty retail complex in Napa Valley,both of which we acquired in the second quarter of 2016.

▪ The remaining interest in Rouse Properties, Inc. ("Rouse") not previouslyowned by us was acquired during the third quarter of 2016.

▪ Company FFO declined by $20M compared to the second quarter of2016 as a result of lower income earned on the sale of develop-for-saleproperties in our multifamily portfolio ($21M in Q2 compared to $10Min Q3), seasonality in our North American hospitality assets and thedisposition a hotel portfolio in Germany.

▪ Equity attributable to Unitholders increased by $178M, as a result ofincome in the current period, partially offset by the impact of foreignexchange, primarily related to our investment in Center Parcs UK, anddistributions.

OPPORTUNISTIC


(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Revenue $ 336 $ 289 $ 995 $ 723Direct expenses (171) (158) (519) (387)NOI(1) 165 131 476 336Investment and other income 17 20 59 55Interest expense (71) (62) (207) (162)General and administrative expense (19) (19) (48) (44)Non-controlling interests (2) (4) (7) (8)Company FFO(1) 90 66 273 177Company FFO and realized gains 316 108 527 266

FFO 97 38 262 162Fair value gains, net 268 90 361 145Income taxes 2 (7) (25) (16)Depreciation of real estate assets (22) (17) (69) (41)Non-controlling interests (10) — (20) 3Net income attributable to Unitholders $ 335 $ 104 $ 509 $ 253

(1) Please refer to pages 41-42 for additional information by asset class

Proportionate Financial Position(US$ Millions) Sep. 30, 2016 Dec. 31, 2015Commercial properties $ 7,221 $ 6,329Commercial developments 395 593Hospitality assets 2,058 2,336Cash and cash equivalents 345 241Other assets 1,494 1,306Assets held for sale 320 88Total assets 11,833 10,893Debt obligations 6,168 5,654Capital securities 82 —Other liabilities 749 749Liabilities associated with assets held for sale 197 41Total liabilities 7,196 6,444Non-controlling interests 208 198Equity attributable to Unitholders $ 4,429 $ 4,251

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Summary of ResultsCORPORATE

HIGHLIGHTS

▪ During the third quarter of 2016, Company FFO was $(115)M ascompared to $(120)M in the prior year.

▪ Interest expense during the third quarter of 2016 declined by $10Mcompared to the prior year as a result of interest savings on therepayment of the BPO acquisition facility and lower average draws oncredit and subscription facilities used to provide capital to the secondreal estate opportunity fund.

▪ The current quarter includes an income tax benefit as a result of arestructuring to consolidate the ownership of our core retail and coreoffice assets within the United States into an existing REIT subsidiary,resulting in approximately $900M of deferred tax income.

▪ The increase in equity of $995M was primarily the result of the incometax benefit described above and the paydown of the fund subscriptionfacilities, as noted above, partially offset by higher draws on corporatecredit facilities and distributions to unitholders.


(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Interest expense $ (67) $ (77) $ (203) $ (210)General and administrative expense (48) (43) (146) (143)Company FFO (115) (120) (349) (353)Company FFO and realized gains (115) (120) (349) (353)

FFO (125) (124) (361) (365)Fair value gains, net (3) (20) 8 (41)Income taxes 898 (41) 791 (95)Net income attributable to Unitholders $ 770 $ (185) $ 438 $ (501)

Proportionate Financial Position(US$ Millions) Sep. 30, 2016 Dec. 31, 2015Cash and cash equivalents $ 125 $ 77Other assets 71 99Total assets 196 176Debt obligations 1,830 1,632Funds subscription facilities 324 776Capital securities(1) 2,892 2,880Deferred tax liabilities 530 1,215Other liabilities 466 504Total liabilities 6,042 7,007Non-controlling interests 15 25Equity attributable to Unitholders $ (5,861) $ (6,856)

(1) Refer to page 18 for details

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Consolidated OverviewRESULTS FROM OPERATIONS

Quarter-to-date Year-to-dateIFRS Proportionate IFRS Proportionate

(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Commercial property and hospitality revenue $ 1,353 $ 1,168 $ 1,173 $ 1,158 $ 3,847 $ 3,293 $ 3,534 $ 3,271Commercial property and hospitality expense (621) (573) (497) (498) (1,791) (1,610) (1,479) (1,370)NOI 732 595 676 660 2,056 1,683 2,055 1,901Share of equity accounted income - FFO 190 179 — — 628 509 — —Investment and other income 41 40 42 20 105 151 129 105Fee revenue 15 5 20 18 36 28 62 61Interest expense (430) (397) (356) (355) (1,247) (1,137) (1,085) (1,069)Depreciation and amortization of non-real estate assets (8) (6) (7) (7) (18) (18) (18) (20)General and administrative expense (146) (174) (137) (150) (415) (406) (412) (402)Non-controlling interests (185) (77) (29) (21) (502) (311) (88) (77)FFO 209 165 209 165 643 499 643 499Depreciation and amortization of non-real estate assets 7 7 7 7 18 20 18 20Transaction costs(1) 15 33 15 33 34 58 34 58Gains/losses associated with non-investment properties (11) 2 (11) 2 (31) (12) (31) (12)Net contribution from GGP warrants(2) 12 11 12 11 35 32 35 32Company FFO 232 218 232 218 699 597 699 597Company FFO and realized gains 773 321 773 321 1,671 1,203 1,671 1,203

FFO 209 165 209 165 643 499 643 499Depreciation and amortization of real estate assets (55) (39) (22) (17) (170) (104) (69) (41)Fair value gains, net 86 245 88 107 709 1,252 489 1,500Share of equity accounted income - non-FFO 230 59 — — 208 542 — —Income taxes 961 (72) 971 (66) 733 109 783 96Non-controlling interests (176) (165) 9 4 (268) (246) 9 (2)Net income attributable to Unitholders $ 1,255 $ 193 $ 1,255 $ 193 $ 1,855 $ 2,052 $ 1,855 $ 2,052

(1) Transaction costs primarily relate to the acquisitions of Rouse, our self-storage and student housing portfolios and a Brazilian office portfolio(2) Represents incremental FFO that would have been attributable to the partnership's shares of GGP, if all outstanding warrants of GGP had been exercised on a cashless basis. It also includes the dilution adjustments to FFO as aresult of the net settled warrants

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Consolidated OverviewPROPORTIONATE RESULTS FROM OPERATIONS BY SEGMENT

Quarter-to-dateCore Office Core Retail Opportunistic Corporate Total

(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Commercial property and hospitality revenue $ 622 $ 644 $ 215 $ 225 $ 336 $ 289 $ — $ — $ 1,173 $ 1,158Commercial property and hospitality expense (271) (282) (55) (58) (171) (158) — — (497) (498)NOI 351 362 160 167 165 131 — — 676 660Investment and other income 8 1 6 (1) 28 20 — — 42 20Fee revenue 14 12 6 6 — — — — 20 18Interest expense (159) (159) (57) (57) (71) (62) (69) (77) (356) (355)Depreciation and amortization of non-real estate assets (3) (5) (1) — (3) (2) — — (7) (7)General and administrative expense (44) (40) (17) (18) (20) (45) (56) (47) (137) (150)Non-controlling interests (25) (16) (2) (1) (2) (4) — — (29) (21)FFO 142 155 95 96 97 38 (125) (124) 209 165Depreciation and amortization of non-real estate assets 3 5 1 — 3 2 — — 7 7Transaction costs 4 3 — — 1 26 10 4 15 33Gains/losses associated with non-investment properties — — — 2 (11) — — — (11) 2Net contribution from GGP warrants(1) — — 12 11 — — — — 12 11Company FFO 149 163 108 109 90 66 (115) (120) 232 218Company FFO and realized gains 281 217 291 116 316 108 (115) (120) 773 321

FFO 142 155 95 96 97 38 (125) (124) 209 165Depreciation and amortization of real estate assets — — — — (22) (17) — — (22) (17)Fair value gains, net (90) (29) (87) 66 268 90 (3) (20) 88 107Income taxes 69 (18) 2 — 2 (7) 898 (41) 971 (66)Non-controlling interests 20 4 (1) — (10) — — — 9 4Net income attributable to Unitholders $ 141 $ 112 $ 9 $ 162 $ 335 $ 104 $ 770 $ (185) $ 1,255 $ 193

(1) Represents incremental FFO that would have been attributable to the partnership's shares of GGP, if all outstanding warrants of GGP had been exercised on a cashless basis. It also includes the dilution adjustments to FFO as aresult of the net settled warrants

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Consolidated OverviewPROPORTIONATE RESULTS FROM OPERATIONS BY SEGMENT (CONT'D)

Year-to-dateCore Office Core Retail Opportunistic Corporate Total

(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Commercial property and hospitality revenue $ 1,881 $ 1,889 $ 658 $ 659 $ 995 $ 723 $ — $ — $ 3,534 $ 3,271Commercial property and hospitality expense (792) (811) (168) (172) (519) (387) — — (1,479) (1,370)NOI 1,089 1,078 490 487 476 336 — — 2,055 1,901Investment and other income 33 24 26 9 70 72 — — 129 105Fee revenue 45 41 17 20 — — — — 62 61Interest expense (500) (523) (173) (174) (207) (162) (205) (210) (1,085) (1,069)Depreciation and amortization of non-real estate assets (10) (13) (3) (2) (5) (5) — — (18) (20)General and administrative expense (137) (121) (54) (55) (65) (71) (156) (155) (412) (402)Non-controlling interests (75) (64) (6) (5) (7) (8) — — (88) (77)FFO 445 422 297 280 262 162 (361) (365) 643 499Depreciation and amortization of non-real estate assets 10 13 3 2 5 5 — — 18 20Transaction costs 5 17 — 2 17 27 12 12 34 58Gains/losses associated with non-investment properties (12) — (8) 5 (11) (17) — — (31) (12)Net contribution from GGP warrants(1) — — 35 32 — — — — 35 32Company FFO 448 452 327 321 273 177 (349) (353) 699 597Company FFO and realized gains 946 706 547 584 527 266 (349) (353) 1,671 1,203

FFO 445 422 297 280 262 162 (361) (365) 643 499Depreciation and amortization of real estate assets — — — — (69) (41) — — (69) (41)Fair value gains, net 8 1,342 112 54 361 145 8 (41) 489 1,500Income taxes 11 207 6 — (25) (16) 791 (95) 783 96Non-controlling interests 31 (5) (2) — (20) 3 — — 9 (2)Net income attributable to Unitholders $ 495 $ 1,966 $ 413 $ 334 $ 509 $ 253 $ 438 $ (501) $ 1,855 $ 2,052

(1) Represents incremental FFO that would have been attributable to the partnership's shares of GGP, if all outstanding warrants of GGP had been exercised on a cashless basis. It also includes the dilution adjustments to FFO as aresult of the net settled warrants

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Consolidated OverviewFINANCIAL POSITION

IFRS Proportionate(US$ Millions, except per unit amounts) Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Dec. 31, 2015Commercial properties $ 42,234 $ 39,111 $ 50,428 $ 51,973Commercial developments 2,993 2,488 5,011 4,264Equity accounted investments 16,830 17,638 — —Hospitality assets 4,880 5,016 2,058 2,336Participating loan interests 510 449 — —Cash and cash equivalents 1,562 1,035 1,255 1,077Other assets(1) 5,608 5,324 5,570 5,298Assets held for sale 3,033 805 1,521 595Total assets 77,650 71,866 65,843 65,543Corporate debt obligations 1,830 1,632 1,830 1,632Funds subscription facilities 529 1,594 324 776Asset-level debt obligations 27,753 25,938 27,030 27,385Subsidiary borrowings 1,678 1,362 1,526 1,370Capital securities 4,150 4,031 3,275 3,307Deferred tax liabilities 2,325 3,107 1,933 2,693Other liabilities 3,183 3,027 3,884 3,858Liabilities associated with assets held for sale 1,726 242 818 157Total liabilities 43,174 40,933 40,620 41,178Preferred shares 1,826 1,675 1,670 1,525Non-controlling interests in subsidiaries and properties 10,034 7,300 937 882Non-controlling interests 11,860 8,975 2,607 2,407Equity attributable to Unitholders $ 22,616 $ 21,958 $ 22,616 $ 21,958Unitholder equity per unit(2) $ 30.98 $ 30.09 $ 30.98 $ 30.09

(1) Other assets includes GGP warrants of $1,397M and $1,364M at September 30, 2016 and December 31, 2015, respectively, as well as goodwill of $786Mand $888M on an IFRS basis and $781M and $837M on a proportionate basis as of September 30, 2016 and December 31, 2015, respectively(2) Assumes conversion of mandatorily convertible preferred shares. Refer to page 19 for further detail

13


Consolidated OverviewPROPORTIONATE FINANCIAL POSITION BY SEGMENT

Core Office Core Retail Opportunistic Corporate Total(US$ Millions) Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Dec. 31, 2015Commercial properties $ 30,871 $ 33,123 $ 12,336 $ 12,521 $ 7,221 $ 6,329 $ — $ — $ 50,428 $ 51,973Commercial developments 4,422 3,447 194 224 395 593 — — 5,011 4,264Hospitality assets — — — — 2,058 2,336 — — 2,058 2,336Cash and cash equivalents 526 595 259 164 345 241 125 77 1,255 1,077Other assets 1,595 1,465 2,410 2,428 1,494 1,306 71 99 5,570 5,298Assets held for sale 1,201 507 — — 320 88 — — 1,521 595Total assets 38,615 39,137 15,199 15,337 11,833 10,893 196 176 65,843 65,543Corporate debt obligations — — — — — — 1,830 1,632 1,830 1,632Funds subscription facilities — — — — — — 324 776 324 776Asset-level debt obligations 15,667 16,103 5,341 5,722 6,022 5,560 — — 27,030 27,385Subsidiary borrowings 1,380 1,276 — — 146 94 — — 1,526 1,370Capital securities 301 427 — — 82 — 2,892 2,880 3,275 3,307Deferred tax liabilities 1,145 1,191 (5) — 263 287 530 1,215 1,933 2,693Other liabilities 2,129 2,076 803 816 486 462 466 504 3,884 3,858Liabilities associated with assets held for sale 621 105 — 11 197 41 — — 818 157Total liabilities 21,243 21,178 6,139 6,549 7,196 6,444 6,042 7,007 40,620 41,178Non-controlling interests 2,176 1,975 208 209 208 198 15 25 2,607 2,407Equity attributable to Unitholders $ 15,196 $ 15,984 $ 8,852 $ 8,579 $ 4,429 $ 4,251 $ (5,861) $ (6,856) $ 22,616 $ 21,958

14


Consolidated OverviewPROPORTIONATE FAIR VALUE CONTINUITY

Quarter-to-dateBalance sheet

(US$ Millions) Jun. 30, 2016 Invest.(1) Acquisitions Dispositions Reclass FX Profit & Loss(2) Sep. 30, 2016Commercial properties

Core Office $ 31,918 $ 209 $ 55 $ — $ (1,166) $ (104) $ (41) $ 30,871Core Retail 12,642 38 — (347) (10) 3 10 12,336Opportunistic 6,587 17 695 (170) 16 5 71 7,221

51,147 264 750 (517) (1,160) (96) 40 50,428Held for sale 619 — — (421) 1,302 6 — 1,506

51,766 264 750 (938) 142 (90) 40 51,934Commercial developments

Core Office 4,141 274 24 — — (70) 53 4,422Core Retail 187 27 — — (20) — — 194Opportunistic 686 27 6 (4) (335) (1) 16 395

5,014 328 30 (4) (355) (71) 69 5,011Held for sale 32 — — — (28) — — 4

5,046 328 30 (4) (383) (71) 69 5,015Total investment properties $ 56,812 $ 592 $ 780 $ (942) $ (241) $ (161) $ 109 $ 56,949Other fair value (losses) gains(3) (21)Total fair value gains $ 88

(1) Represents investments in our assets through capital expenditures and tenant improvements(2) Represents changes in value as a result of amount and timing of cash flows at the property level due to leasing activity, leasing assumptions and investment horizon. In addition, includes the impact of changes in discount andterminal capitalization rates(3) Other fair value (losses) gains primarily relate to mark-to-market adjustments on certain derivatives and our investment in GGP warrants, mostly offset by $193 million of gains on the disposition of certain non-investmentproperty assets during the third quarter of 2016

Valuation Metrics for Commercial PropertiesQ3 2016 Q2 2016

(US$)Discount

rateTerminal cap

rateHold period

(years)Capitalization

rate

Implied going-in capitali-

zation rate(1)

Implied valueper leasablesquare foot/

unit(2)Discount

rateTerminal cap

rateHold period

(years)Capitalization

rate

Implied going-in capitali-

zation rate(1)

Implied valueper leasablesquare foot/

unit(2)

Core Office 6.5% 5.5% 11 4.1% $ 639 6.4% 5.5% 11 4.3% $ 641Core Retail 7.5% 5.9% 10 5.3% 887 7.4% 5.8% 10 5.2% 891Opportunistic Office 10.8% 8.3% 6 5.9% 133 10.9% 8.3% 7 5.9% 127Opportunistic Retail 8.1% 6.3% 344 8.1% 6.3% 364Industrial 7.4% 6.5% 10 6.2% 58 7.4% 6.6% 10 6.2% 50Multifamily 5.0% 4.7% 184 5.1% 4.8% 187Triple Net Lease 6.2% 6.5% 286 6.4% 6.4% 280Self-storage 6.1% 5.6% 114 6.3% 5.8% 104Student Housing 6.0% 5.9% 91 6.1% 5.8% 95

(1) Annualized in-quarter NOI adjusted for acquisitions and dispositions that took place during the quarter and straight-line rental income as disclosed on pages 23 and 37(2) For retail assets, the leasable square feet exclude anchors. For multifamily and student housing assets, the relevant calculation compares the value of commercial properties to the number of units or beds, respectively, ratherthan square feet

15


Consolidated OverviewPROPORTIONATE FAIR VALUE CONTINUITY (CONT'D)

Year-to-dateBalance sheet

(US$ Millions) Dec. 31, 2015 Invest.(1) Acquisitions Dispositions Reclass FX Profit & Loss(2) Sep. 30, 2016Commercial properties

Core Office $ 33,123 $ 559 $ 73 $ (572) $ (2,110) $ (314) $ 112 $ 30,871Core Retail 12,521 96 23 (432) 28 3 97 12,336Opportunistic 6,329 70 1,440 (738) (140) 113 147 7,221

51,973 725 1,536 (1,742) (2,222) (198) 356 50,428Held for sale 568 1 — (1,434) 2,332 4 35 1,506

52,541 726 1,536 (3,176) 110 (194) 391 51,934Commercial developments

Core Office 3,447 929 177 — — (283) 152 4,422Core Retail 224 99 — — (129) — — 194Opportunistic 593 124 119 (65) (403) (5) 32 395

4,264 1,152 296 (65) (532) (288) 184 5,011Held for sale — — — — 4 — — 4

4,264 1,152 296 (65) (528) (288) 184 5,015Total investment properties $ 56,805 $ 1,878 $ 1,832 $ (3,241) $ (418) $ (482) $ 575 $ 56,949Other fair value (losses) gains(3) (86)Total fair value gains $ 489

(1) Represents investments in our assets through capital expenditures and tenant improvements(2) Represents changes in value as a result of amount and timing of cash flows at the property level due to leasing activity, leasing assumptions and investment horizon. In addition, includes the impact of changes in discount andterminal capitalization rates(3) Other fair value (losses) gains primarily relate to mark-to-market adjustments on certain derivatives and our investment in GGP warrants, mostly offset by $193 million of gains on the disposition of certain non-investmentproperty assets during the third quarter of 2016

16


Consolidated OverviewPROPORTIONATE SUMMARY CASH FLOW INFORMATION AND LIQUIDITY

Proportionate Summary Cash Flow InformationQuarter-to-date Year-to-date

(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Company FFO $ 232 $ 218 $ 699 $ 597Distributions paid (199) (189) (598) (566)Unit repurchases (10) (11) (25) (11)Investments (1,004) (2,869) (2,984) (6,145)Disposals 1,271 349 2,609 1,829Debt repayments (1,074) (911) (4,877) (2,179)Proceeds from financings 1,072 2,956 5,374 4,175Draws (repayments) on corporate and funds subscription facilities (282) 641 (80) 437Proceeds from (purchase of) financial assets, net 224 27 206 237Change in corporate restricted cash — — — 1,800Change in working capital and other, net (151) (203) (146) (65)Change in proportionate cash 79 8 178 109Proportionate cash at beginning of period 1,176 1,056 1,077 955Proportionate cash at end of period $ 1,255 $ 1,064 $ 1,255 $ 1,064

Proportionate Liquidity(US$ Millions) Sep. 30, 2016 Dec. 31, 2015Corporate cash and cash equivalents $ 125 $ 77Available committed corporate credit facilities 690 368Available subordinated credit facilities 22 174Corporate liquidity 837 619Proportionate cash retained at subsidiaries 1,130 1,000Proportionate availability under construction facilities 2,960 1,983Proportionate availability under subsidiary credit facilities 950 536Group-wide liquidity $ 5,877 $ 4,138

17


Consolidated OverviewPROPORTIONATE DEBT SUMMARY

Sep. 30, 2016 Deferredfinancing

costs(US$ Millions) Avg. term Avg. rate Total 2016 2017 2018 2019 2020 Thereafter % FloatingCore Office 5.1 4.03% $ 17,047 $ 537 $ 3,080 $ 3,040 $ 2,179 $ 1,569 $ 6,783 $ (141) 40.1%Weighted average interest rate 4.03% 3.26% 4.95% 3.32% 2.93% 3.58% 4.35%% floating 40.1% 76.9% 24.8% 83.0% 82.4% 45.6% 9.8%Core Retail 5.6 4.04% 5,341 11 120 206 660 854 3,510 (20) 19.2%Weighted average interest rate 4.04% 4.74% 5.08% 3.57% 3.87% 3.86% 4.09%% floating 19.2% —% 3.0% 32.6% 44.1% 23.3% 13.9%Opportunistic 4.0 4.93% 6,168 14 747 796 1,249 394 2,998 (30) 52.2%Weighted average interest rate 4.93% 4.14% 3.76% 3.76% 4.71% 4.24% 5.71%% floating 52.2% 50.8% 86.1% 65.1% 86.1% 57.7% 25.2%Corporate 2.5 2.18% 2,154 — 29 — 2,132 — — (7) 100.0%Weighted average interest rate 2.18% —% 2.13% —% 2.18% —% —%% floating 100.0% —% 100.0% —% 100.0% —% —%Total 4.8 4.08% $ 30,710 $ 562 $ 3,976 $ 4,042 $ 6,220 $ 2,817 $ 13,291 $ (198) 43.1%Maturity as a % of total 100.0% 1.8% 12.9% 13.1% 20.1% 9.1% 43.0%Weighted average interest rate 4.08% 3.31% 4.71% 3.42% 3.13% 3.76% 4.59%

18


Consolidated OverviewPROPORTIONATE CAPITAL SECURITIES AND PREFERRED EQUITY

Proportionate Capital Securities

Cumulative

(US$ Millions) Entity Authorized Outstanding dividend rate Sep. 30, 2016 Dec. 31, 2015

Class A Preferred Equity Units Series 1 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.25% $ 539 $ 532

Class A Preferred Equity Units Series 2 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.50% 521 516

Class A Preferred Equity Units Series 3 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.75% 510 506

Class B Junior Preferred Shares Brookfield BPY Holdings Inc. 30,000,000 30,000,000 5.75% 750 750

Class C Junior Preferred Shares Brookfield BPY Holdings Inc. 20,000,000 20,000,000 6.75% 500 500

Class A Senior Preferred Shares Series 1 Brookfield Property Split Corp. 1,000,000 924,390 5.25% 23 23




Class AAA Series G (2) Brookfield Office Properties Inc. 6,000,000 3,236,308 5.25% 81 84

Class AAA Series H (3) Brookfield Office Properties Inc. — — 5.75% — 128

Class AAA Series J (2) Brookfield Office Properties Inc. 8,000,000 6,592,443 5.00% 125 125

Class AAA Series K (2) Brookfield Office Properties Inc. 8,000,000 4,995,414 5.20% 95 90

Class B Series 1(4) Brookfield Office Properties Inc. 3,600,000 3,600,000 70% of bank prime — —

Class B Series 2(4) Brookfield Office Properties Inc. 3,000,000 3,000,000 70% of bank prime — —

Series A Preferred Shares Rouse Properties L.P. 5,600,000 5,600,000 5.00% 72 —

Preferred Shares BSREP II Vintage Estate Partners LLC 10,000 10,000 5.00% 10 —

Total $ 3,275 $ 3,307

(1) Series 1, 2 and 3 are mandatorily convertible into units after seven, ten and twelve years, respectively(2) As of September 30, 2016, BPY and its subsidiaries own 1,003,549, 1,000,000, and 1,004,586 shares of the Series G, Series J and Series K capital securities, respectively, which has been reflected as a reduction in outstanding shares of each series(3) Series H shares were redeemed on May 23, 2016 at a price of C$25.00 per share plus accrued and unpaid dividends(4) Class B capital securities are owned by Brookfield Asset Management. BPO has an offsetting loan receivable against these securities

Proportionate Preferred Equity

Cumulative

(US$ Millions) Entity Outstanding dividend rate Sep. 30, 2016 Dec. 31, 2015

Class A Various BPY holding entities 200,004 5.00% $ 15 $ 25

Class A redeemable voting(1) Brookfield Office Properties Inc. — 7.50% — —

Class AA Series E(2) Brookfield Office Properties Inc. 299 70% of bank prime — —

Class AAA Series N Brookfield Office Properties Inc. 11,000,000 3.78% 257 257

Class AAA Series P Brookfield Office Properties Inc. 12,000,000 5.15% 287 287

Class AAA Series R Brookfield Office Properties Inc. 8,883,425 5.10% 227 247

Class AAA Series S Brookfield Office Properties Inc. 1,116,575 3.99% 14 —

Class AAA Series T Brookfield Office Properties Inc. 10,000,000 4.60% 250 250

Class AAA Series V(3) Brookfield Office Properties Inc. 1,290,789 70% of bank prime 18 18

Class AAA Series W(4) Brookfield Office Properties Inc. 1,884,427 70% of bank prime 27 27

Class AAA Series X(5) Brookfield Office Properties Inc. — 30-day BA+ 0.4% — —

Class AAA Series Y(6) Brookfield Office Properties Inc. 1,242,911 70% of bank prime 18 18

Class AAA Series Z(7) Brookfield Office Properties Inc. 600,000 30-day BA+ 0.4% 7 7

Class AAA Series AA Brookfield Office Properties Inc. 12,000,000 4.75% 261 261

Class AAA Series CC Brookfield Office Properties Inc. 8,000,000 6.00% 155 —

Series A Brookfield DTLA Fund Office Trust Investor Inc. 9,357,469 7.63% 128 122

Various IDI Realty, LLC 6 6

Total $ 1,670 $ 1,525

(1) As of September 30, 2016, BPY and its subsidiaries own all 13,797,320 of the Class A redeemable voting preferred shares, which has been reflected as a reduction in outstanding shares(2) BPY and its subsidiaries own 1,999,701 of the Class AA Series E preferred shares, which has been reflected as a reduction in outstanding shares(3) BPY and its subsidiaries own 514,700 of the Class AAA Series V preferred shares, which has been reflected as a reduction in outstanding shares(4) BPY and its subsidiaries own 1,932,100 of the Class AAA Series W preferred shares, which has been reflected as a reduction in outstanding shares(5) BPY and its subsidiaries own all 300 of the Class AAA Series X preferred shares, which has been reflected as a reduction in outstanding shares(6) BPY and its subsidiaries own 1,604,800 of the Class AAA Series Y preferred shares, which has been reflected as a reduction in outstanding shares(7) BPY and its subsidiaries own 200,000 of the Class AAA Series Z preferred shares, which has been reflected as a reduction in outstanding shares

19


Consolidated OverviewPER UNIT CALCULATIONS

Book Value per UnitSep. 30, 2016 Dec. 31, 2015

(US$ Millions, except per unit amounts) Unitholder equityNumber of

units Per unit Unitholder equityNumber of

units Per unit

Basic book value per unit $ 22,616 710.7 $ 31.82 $ 21,958 711.4 $ 30.87Dilutive effect of conversion of preferred shares(1) 1,570 70.0 22.43 1,554 70.0 22.20

24,186 780.7 30.98 23,512 781.4 30.09Dilutive effect of conversion of capital securities(2) 687 31.5 21.81 802 38.1 21.05Fully diluted book value per unit $ 24,873 812.2 $ 30.62 $ 24,314 819.5 $ 29.67

(1) Represents preferred shares that are mandatorily convertible into units after seven, ten and twelve years and which were issued in Q4 2014; $265M of the preferred shares was classified in equity at the time of issuance(2) Certain series of capital securities can be settled in cash, at the option of the partnership or its subsidiaries which issued such capital securities, which has been the past practice of the partnership and its subsidiaries to avoiddilution associated with issuing units

Company FFO per UnitQuarter-to-date

Sep. 30, 2016 Sep. 30, 2015

(US$ Millions, except per unit amounts) Company FFO

Averagenumber of

units Per unit Company FFOAverage number of

units Per unit

Basic $ 232 710.9 $ 0.33 $ 218 712.6 $ 0.31Dilutive effect of conversion of preferred shares(1) 29 70.0 0.41 29 70.0 0.41

261 780.9 0.33 247 782.6 0.32Dilutive effect of conversion of capital securities and options 10 30.5 0.33 11 39.6 0.28Fully-diluted per Management $ 271 811.4 $ 0.33 $ 258 822.2 $ 0.31

(1) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry

Net Income per UnitQuarter-to-date

Sep. 30, 2016 Sep. 30, 2015

(US$ Millions, except per unit amounts)

Net incomeattributable to

Unitholders

Averagenumber of

units Per unit


UnitholdersAverage number of

units Per unit

Basic(1) $ 1,255 710.9 $ 1.77 $ 193 712.6 $ 0.27Dilutive effect of conversion of preferred shares(2) 29 70.0 0.41 29 70.0 0.41

1,284 780.9 1.64 222 782.6 0.28Dilutive effect of conversion of capital securities and options(3) 10 30.5 0.33 11 39.6 0.28Fully-diluted per Management $ 1,294 811.4 $ 1.59 $ 233 822.2 $ 0.28Fully-diluted per IFRS(4) $ 1,265 811.4 $ 1.56 $ 193 783.0 $ 0.25

(1) IFRS requires the inclusion of preferred shares that are mandatorily convertible into units without an add back to earnings of the associated carry on the preferred shares. Consequently, basic net income per unit per IFRS forthe three months ended September 30, 2016 was $1.61 (2015 – $0.25)(2) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(3) For the three months ended September 30, 2015, the conversion of capital securities would be anti-dilutive(4) Excludes the add back to earnings of the carry on the mandatorily convertible preferred shares, as required under IFRS; for the three months ended September 30, 2015, the conversion of capital securities would be anti-dilutive and is therefore excluded from the calculation of fully-diluted net income per unit under IFRS

20


Consolidated OverviewPER UNIT CALCULATIONS (CONT'D)

Company FFO per UnitYear-to-date

Sep. 30, 2016 Sep. 30, 2015

(US$ Millions, except per unit amounts) Company FFO

Averagenumber of

units Per unit Company FFOAverage number of

units Per unit

Basic $ 699 711.1 $ 0.98 $ 597 712.7 $ 0.84Dilutive effect of conversion of preferred shares(1) 88 70.0 1.26 88 70.0 1.26

787 781.1 1.01 685 782.7 0.88Dilutive effect of conversion of capital securities and options 30 35.9 0.84 36 40.4 0.89Fully-diluted per Management $ 817 817.0 $ 1.00 $ 721 823.1 $ 0.88

(1) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry

Net Income per UnitYear-to-date

Sep. 30, 2016 Sep. 30, 2015

(US$ Millions, except per unit amounts)


Unitholders

Averagenumber of

units Per unit


UnitholdersAverage number of

units Per unit

Basic(1) $ 1,855 711.1 $ 2.61 $ 2,052 712.7 $ 2.88Dilutive effect of conversion of preferred shares(2) 88 70.0 1.26 88 70.0 1.26

1,943 781.1 2.49 2,140 782.7 2.73Dilutive effect of conversion of capital securities and options 30 35.9 0.84 36 40.4 0.89Fully-diluted per Management $ 1,973 817.0 $ 2.41 $ 2,176 823.1 $ 2.64Fully-diluted per IFRS(3) $ 1,885 817.0 $ 2.31 $ 2,088 823.1 $ 2.54

(1) IFRS requires the inclusion of preferred shares that are mandatorily convertible into units without an add back to earnings of the associated carry on the preferred shares. Consequently, basic net income per unit per IFRS forthe nine months ended September 30, 2016 was $2.37 (2015 – $2.62)(2) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(3) Excludes the add back to earnings of the carry on the mandatorily convertible preferred shares, as required under IFRS

21


Consolidated OverviewUNIT INFORMATION

Unit DistributionsCurrent policy:

▪ Distribution of US$0.28 per unit for the September 1, 2016 to November 30,2016 period (US$1.12 per unit annualized).

▪ Record date - last business day of February, May, August and November.▪ Payment date - last business day of March, June, September and December.

Earnings AnnouncementsBrookfield Property Partners' financial results are scheduled tobe announced on the following dates:

▪ Fourth quarter 2016 results on February 3, 2017▪ First quarter 2017 results on May 5, 2017▪ Second quarter 2017 results on August 2, 2017

Units OutstandingSep. 30, 2016 Dec. 31, 2015

Brookfield Property Partners L.P. limited partnership units 261,636,183 261,486,211Brookfield Property Partners L.P. general partnership units 138,875 138,875Total Brookfield Property Partners L.P. units(1) 261,775,058 261,625,086Limited partner units of the operating partnership held by Brookfield Asset Management 437,409,102 437,409,102Limited partner units of Brookfield Office Properties Exchange LP 11,485,544 12,378,737Total units outstanding 710,669,704 711,412,925

(1) Brookfield Asset Management has economic interests in approximately 50.3M BPY L.P. units as of September 30, 2016, bringing BrookfieldAsset Management's economic interest to approximately 487.9M units, or approximately 68.7%

Unit Trading StatisticsJul. 1, 2016 - Sep. 30, 2016 Apr. 1, 2016 - Jun. 30, 2016 Jan. 1, 2016 - Mar. 31, 2016 Oct. 1, 2015 - Dec. 31, 2015 Jul. 1, 2015 - Sep. 30, 2015 NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD)

High $ 24.94 C$ 32.80 $ 24.98 C$ 31.94 $ 23.42 C$ 32.22 $ 24.20 C$ 32.25 $ 23.12 C$ 30.07Low $ 22.07 C$ 29.01 $ 21.41 C$ 28.14 $ 18.69 C$ 26.00 $ 21.24 C$ 28.30 $ 19.89 C$ 26.02Close $ 22.92 C$ 30.00 $ 22.46 C$ 29.05 $ 23.18 C$ 29.99 $ 23.24 C$ 32.22 $ 21.46 C$ 28.67Volume 8,593,600 11,330,200 7,165,900 9,639,600 11,465,500 11,100,400 7,624,300 10,204,800 12,785,700 12,780,200

Operating Statistics

23


Core OfficeNET OPERATING INCOME

Quarter-to-date Year-to-date % of Total(Millions in source currency unless otherwise noted) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 (Current QTD)United States

Midtown New York $ 35.9 $ 37.0 $ 112.2 $ 110.9 10.3%Downtown New York 69.8 56.0 197.4 151.5 19.9%Washington, D.C. 23.7 26.1 75.6 90.0 6.8%Los Angeles 23.0 23.5 73.4 70.2 6.6%Houston 20.4 21.2 63.3 66.1 5.8%Denver 6.1 6.0 19.7 17.7 1.7%Boston 3.8 3.8 11.2 12.7 1.1%San Francisco 2.4 1.6 7.0 5.1 0.7%Seattle — — — 1.9 —%

185.1 175.2 559.8 526.1 52.9%Canada

Toronto 43.4 32.7 123.3 107.3 9.5%Calgary 22.9 25.1 72.2 75.4 5.0%Ottawa 2.4 2.3 7.1 7.2 0.5%Vancouver — 2.7 1.6 8.6 —%

in C$ 68.7 62.8 204.2 198.5in US$ 52.8 47.9 154.8 157.8 15.0%Australia

Sydney 27.8 40.5 106.8 121.3 6.1%Perth 26.0 23.2 80.4 68.9 5.6%Melbourne 7.6 19.4 23.3 59.3 1.6%Brisbane 3.8 4.1 10.9 12.4 0.8%Canberra 0.8 1.2 2.7 3.4 0.2%New Zealand — 0.3 0.7 4.7 —%

in A$ 66.0 88.7 224.8 270.0in US$ 50.3 64.2 166.9 206.0 14.3%United Kingdom

London 44.1 46.9 134.2 118.3 16.4%in £ 44.1 46.9 134.2 118.3in US$ 57.7 72.5 186.9 181.3 16.4%Germany

Berlin 2.6 — 12.4 — 0.8%in € 2.6 — 12.4 —in US$ 2.9 — 13.9 — 0.8%Brazil

São Paulo 6.6 7.0 22.6 20.0 0.6%in R$ 6.6 7.0 22.6 20.0in US$ 2.1 1.9 6.4 6.3 0.6%Total NOI 350.9 361.7 1,088.7 1,077.5 100.0%Less: straight-line rental income (48.8) (26.6) (106.5) (58.4)Total cash NOI $ 302.1 $ 335.1 $ 982.2 $ 1,019.1

24


Core OfficeSAME-PROPERTY NET OPERATING INCOME

Quarter-to-date Year-to-date(Millions in source currency unless otherwise noted) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015United States

Midtown New York $ 35.4 $ 28.4 $ 111.7 $ 85.3Downtown New York 67.8 49.3 188.1 131.6Washington, D.C. 24.0 25.1 74.2 70.7Los Angeles 19.5 21.2 70.6 66.1Houston 18.3 22.1 60.9 66.4Denver 6.1 5.1 19.6 16.1Boston 3.5 3.8 10.9 9.2San Francisco 2.4 1.5 7.0 4.7

177.0 156.5 543.0 450.1Canada

Toronto 37.5 36.0 110.9 108.9Calgary 22.7 25.2 72.0 75.3Ottawa 2.4 2.3 7.1 7.2

in C$ 62.6 63.5 190.0 191.4in US$ 48.0 48.5 143.9 152.1Australia

Sydney 25.8 30.5 84.9 121.3Perth 22.8 23.2 69.0 68.1Melbourne 7.6 8.0 23.3 24.5Brisbane 3.8 4.0 10.9 11.1Canberra 0.8 0.8 2.7 2.8

in A$ 60.8 66.5 190.8 227.8in US$ 46.1 48.2 141.6 173.8United Kingdom

London 44.0 43.5 114.1 107.7in £ 44.0 43.5 114.1 107.7in US$ 57.8 67.4 159.0 165.1Brazil

São Paulo 7.4 6.7 20.3 19.7in R$ 7.4 6.7 20.3 19.7in US$ 2.3 1.9 5.7 6.3Total same-property NOI (US$) $ 331.2 $ 322.5 $ 993.2 $ 947.4Percent of same-property NOI growth 2.7% 4.8%Percent of same-property NOI growth excluding the impact of FX 5.2% 8.0%

25


Core OfficeSUMMARY OF PROPERTIES

Sep. 30, 2016 Number ofproperties

Assets under management Proportionate(Sq. ft. in 000's) Office Retail Leasable Parking Total Own % Leasable TotalUnited StatesMidtown New York 5 6,208 225 6,433 118 6,551 59% 3,796 3,861Downtown New York 7 12,416 448 12,864 543 13,407 90% 11,600 12,110Washington, D.C. 28 5,820 219 6,039 3,273 9,312 70% 4,075 6,559Los Angeles 9 8,475 461 8,936 4,666 13,602 47% 4,209 6,397Houston 6 6,056 132 6,188 1,885 8,073 69% 4,503 5,583Boston 2 883 27 910 245 1,155 51% 464 589Denver 2 2,568 86 2,654 1,092 3,746 51% 1,341 1,892San Francisco 1 187 12 199 6 205 100% 199 205Total United States 60 42,613 1,610 44,223 11,828 56,051 66% 30,187 37,196

CanadaToronto 11 8,532 732 9,264 1,706 10,970 69% 6,420 7,583Calgary 8 5,332 301 5,633 1,194 6,827 50% 2,817 3,415Ottawa 7 1,701 32 1,733 804 2,537 25% 437 637Total Canada 26 15,565 1,065 16,630 3,704 20,334 57% 9,674 11,635

AustraliaSydney 10 3,566 154 3,720 666 4,386 58% 2,179 2,558Melbourne 2 1,311 46 1,357 343 1,700 50% 678 850Perth 4 1,809 82 1,891 227 2,118 84% 1,587 1,778Brisbane 2 509 11 520 69 589 79% 412 465Canberra 1 175 2 177 70 247 100% 177 247Total Australia 19 7,370 295 7,665 1,375 9,040 65% 5,033 5,898

London 27 9,084 872 9,956 1,175 11,131 46% 4,457 5,076Berlin 16 1,375 1,101 2,476 1,171 3,647 25% 620 911São Paulo 1 276 — 276 209 485 51% 141 248Total 149 76,283 4,943 81,226 19,462 100,688 61% 50,112 60,964

26


Core OfficeHISTORICAL OCCUPANCY

Historical Occupancy by Country (Assets under Management)

Q3 2016 Q2 2016 Q1 2016 Q4 2015(1) Q3 2015Five-quarter

averageMidtown New York 87.9% 88.9% 91.1% 94.2% 94.4 % 91.3%Downtown New York 91.9% 93.3% 93.2% 94.0% 92.6 % 93.0%Washington, D.C. 86.5% 86.4% 86.6% 87.4% 87.8 % 86.9%Los Angeles 85.3% 85.6% 86.5% 86.5% 86.4 % 86.1%Houston 87.8% 90.8% 90.9% 90.5% 91.2 % 90.2%Boston 98.8% 99.4% 99.6% 99.9% 99.7 % 99.5%Denver 90.2% 89.5% 91.4% 89.3% 89.0 % 89.9%San Francisco 97.2% 97.2% 97.2% 92.3% 92.3 % 95.2%United States 88.7% 89.7% 90.3% 90.9% 90.7 % 90.1%Toronto 93.1% 92.5% 92.0% 92.2% 94.3 % 92.8%Calgary 92.0% 91.7% 96.8% 97.3% 97.6 % 95.1%Ottawa 95.0% 95.2% 94.7% 95.4% 95.3 % 95.1%Vancouver 93.7% 91.6 % 92.7%Canada 92.9% 92.5% 93.9% 94.2% 95.5 % 93.8%Sydney 98.7% 99.3% 99.3% 99.6% 99.3 % 99.2%Melbourne 99.9% 99.8% 99.9% 99.9% 94.7 % 98.8%Perth 88.0% 88.6% 88.6% 88.0% 93.4 % 89.3%Brisbane 88.0% 85.3% 83.6% 81.8% 86.3 % 85.0%Canberra 100.0% 100.0% 100.0% 100.0% 100.0 % 100.0%New Zealand 39.6% 42.4% 45.4 % 42.5%Australia & New Zealand 95.6% 95.9% 94.0% 94.1% 94.8 % 94.9%London 98.1% 97.8% 97.9% 97.8% 97.0 % 97.7%Berlin 88.5% 84.1% 77.4% 74.7% 81.2%São Paulo 100.0% 100.0% 100.0% 100.0% 100.0 % 100.0%Total 91.4% 91.7% 92.0% 92.3% 92.9 % 92.1%

(1) Restated for remeasurements performed during the first quarter of 2016

27


Core OfficeHISTORICAL RENTS

Historical Average In-place Net Rents Historical Average Market Net Rents(Local currency) Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015Midtown New York $ 45.13 $ 44.43 $ 44.54 $ 44.14 $ 42.54 $ 72.00 $ 72.00 $ 72.00 $ 72.00 $ 72.00Downtown New York 32.13 31.81 31.05 30.61 30.06 45.00 45.00 45.00 45.00 45.00Washington, D.C. 29.71 29.47 28.95 28.80 28.06 32.00 32.00 32.00 32.00 32.00Los Angeles 24.56 24.47 24.34 24.17 24.00 24.00 24.00 24.00 24.00 24.00Houston 21.34 21.58 21.45 21.36 21.25 21.00 22.00 22.00 23.00 25.00Boston 23.67 23.41 23.28 23.26 23.28 33.00 33.00 34.00 34.00 33.00Denver 22.05 22.06 21.87 21.79 21.58 21.00 21.00 22.00 22.00 22.00San Francisco 47.71 47.66 47.64 45.30 44.70 49.00 49.00 50.00 50.00 49.00United States 30.42 30.16 29.81 29.59 29.32 39.24 39.34 39.57 39.87 40.86Toronto 31.86 31.63 30.81 28.74 30.51 32.00 32.00 32.00 32.00 32.00Calgary 31.95 32.20 32.12 32.67 32.67 23.00 25.00 26.00 26.00 28.00Ottawa 20.46 20.47 20.54 20.43 20.50 18.00 18.00 18.00 18.00 18.00Vancouver 23.88 23.67 25.00 25.00Canada 31.35 31.28 30.74 29.23 30.30 28.73 29.30 29.53 29.27 29.67

in US$(1) 23.88 23.83 23.41 22.26 23.08 21.88 22.32 22.49 22.29 22.60Sydney 61.37 60.00 60.85 62.17 61.02 73.61 69.93 72.84 81.70 80.39Melbourne 49.92 49.62 49.52 48.61 47.63 44.40 43.30 43.30 43.00 42.17Perth 72.46 72.37 70.60 70.72 69.01 58.40 58.60 59.00 58.90 60.30Brisbane 56.28 55.79 55.93 56.31 58.41 53.30 53.40 53.40 52.90 53.05Canberra 41.17 41.22 35.37 35.35 35.35 32.50 32.30 32.30 31.85 31.85New Zealand 8.57 9.61 10.44 24.10 25.10 24.37Australia & New Zealand 61.87 61.11 59.74 60.28 57.05 61.86 60.74 61.58 65.97 62.04

in US$(1) 47.38 46.80 45.75 46.17 43.69 47.38 46.52 47.16 50.52 47.51London 43.02 43.01 43.29 42.78 43.21 50.22 48.29 48.15 67.50 44.34

in US$(1) 55.83 55.81 56.18 55.52 56.08 65.17 62.67 62.48 87.59 57.54Berlin 24.98 25.02 25.25 24.96 30.10 28.99 27.88 26.20

in US$(1) 28.08 28.12 28.39 28.05 33.83 32.58 31.34 29.45São Paulo 233.24 233.24 233.24 211.00 211.00 233.24 233.24 233.24 211.00 211.00

in US$(1) 71.86 71.86 71.86 65.01 65.01 71.86 71.86 71.86 65.01 65.01Total $ 33.46 $ 33.31 $ 32.84 $ 32.34 $ 32.60 $ 39.22 $ 39.09 $ 39.21 $ 41.70 $ 40.01Current mark-to-market opportunity 17.2%

(1) Using the spot rate at September 30, 2016 for all periods presented

28


PROPORTIONATE LEASING ACTIVITY

Quarter-to-dateJun. 30, 2016 Quarter-to-date leasing activity Sep. 30, 2016

Total Year one Average Acq. (disp.)Leased Avg. in-place expiries Expiring Leasing leasing leasing additions Leased Avg. in-place Avg. mkt. Avg.

(Sq. ft. in net rent (Sq. ft. in net rent (Sq. ft. in net rent net rent (Sq. ft. in (Sq. ft. in net rent net rent lease term(Local currency) 000's) (per sq. ft.) 000's) (per sq. ft.) 000's) (per sq. ft.) (per sq. ft.) 000's) 000's) (per sq. ft.) (per sq. ft.) (years)Midtown New York 3,431 $ 44.43 (34) $ 16.12 — $ — $ — — 3,397 $ 45.13 $ 72.00 11.3Downtown New York 10,770 31.81 (227) 26.28 58 36.46 41.96 — 10,601 32.13 45.00 10.8Washington, D.C. 3,448 29.47 (128) 20.06 99 21.81 23.81 — 3,419 29.71 32.00 5.5Los Angeles 3,603 24.47 (179) 23.77 163 21.64 26.80 — 3,587 24.56 24.00 6.6Houston 4,014 21.58 (663) 20.79 488 19.48 21.24 — 3,839 21.34 21.00 4.4Boston 461 23.41 (3) 27.44 1 65.17 65.17 — 459 23.67 33.00 5.3Denver 1,195 22.06 (50) 22.43 62 20.11 21.54 — 1,207 22.05 21.00 6.0San Francisco 194 47.66 — — — — — — 194 47.71 49.00 5.5United States 27,116 30.16 (1,284) 22.06 871 21.38 24.02 — 26,703 30.42 39.24 8.3Toronto 5,850 31.63 (254) 33.29 302 35.91 36.75 — 5,898 31.86 32.00 7.5Calgary 2,583 32.20 (17) 26.29 25 19.65 21.27 — 2,591 31.95 23.00 10.0Ottawa 414 20.43 (8) 17.57 7 18.25 18.25 — 413 20.46 18.00 7.1Canada 8,847 31.28 (279) 32.41 334 34.32 35.20 — 8,902 31.35 28.73 8.2in US$(1) 23.83 24.69 26.14 26.81 23.88 21.88Sydney 2,444 60.00 (404) 69.88 373 71.07 84.44 (276) 2,137 61.37 73.61 5.9Melbourne 678 49.62 (3) 100.74 3 114.83 135.12 — 678 49.92 44.40 4.3Perth 1,415 72.37 (12) 89.08 7 64.54 70.01 — 1,410 72.46 58.40 9.1Brisbane 358 55.79 (7) 89.39 20 64.08 70.83 — 371 56.28 53.30 3.1Canberra 177 41.22 — — — — — — 177 41.17 32.50 9.8Australia & New Zealand 5,072 61.11 (426) 70.96 403 70.93 83.89 (276) 4,773 61.87 61.86 6.5in US$(1) 46.80 54.35 54.32 64.25 47.38 47.38London 4,355 43.01 (8) 51.66 13 60.37 60.37 — 4,360 43.02 50.22 11.3United Kingdom 4,355 43.01 (8) 51.66 13 60.37 60.37 — 4,360 43.02 50.22 11.3in US$(1) 55.81 67.04 78.34 78.34 55.83 65.17Berlin 522 25.02 (8) 33.58 34 24.58 24.58 — 548 24.98 30.10 5.0Germany 522 25.02 (8) 33.58 34 24.58 24.58 — 548 24.98 30.10 5.0in US$(1) 28.12 37.74 27.63 27.63 28.08 33.83São Paulo 141 233.24 — — — — — — 141 233.24 233.24 7.4Brazil 141 233.24 — — — — — — 141 233.24 233.24 7.4in US$(1) 71.86 — — — 71.86 71.86Total 46,053 $ 33.31 (2,005) $ 29.53 1,655 $ 30.94 $ 34.88 (276) 45,427 $ 33.46 $ 39.22 8.3


Core Office

29


Core OfficePROPORTIONATE LEASING ACTIVITY (CONT'D)

Year-to-dateDec. 31, 2015 Year-to-date leasing activity Sep. 30, 2016

Total Year one Average Acq. (disp.)Leased Avg. in-place expiries Expiring Leasing leasing leasing additions Leased Avg. in-place Avg. mkt.

(Sq. ft. in net rent (Sq. ft. in net rent (Sq. ft. in net rent net rent (Sq. ft. in (Sq. ft. in net rent net rent(Local currency) 000's) (per sq. ft.) 000's) (per sq. ft.) 000's) (per sq. ft.) (per sq. ft.) 000's) 000's) (per sq. ft.) (per sq. ft.)Midtown New York 3,609 $ 44.14 (215) $ 38.20 3 $ 73.50 $ 75.95 — 3,397 $ 45.13 $ 72.00Downtown New York 11,699 30.61 (440) 28.56 174 36.47 40.38 (832) 10,601 32.13 45.00Washington, D.C. 3,641 28.80 (867) 27.56 809 29.27 30.17 (164) 3,419 29.71 32.00Los Angeles 3,637 24.17 (342) 23.70 292 23.20 27.68 — 3,587 24.56 24.00Houston 3,997 21.36 (751) 20.91 593 20.34 22.05 — 3,839 21.34 21.00Boston 425 23.26 (9) 23.89 6 42.59 43.11 37 459 23.67 33.00Denver 1,191 21.79 (86) 21.09 102 21.28 22.72 — 1,207 22.05 21.00San Francisco 184 45.30 (5) 32.36 15 60.73 69.30 — 194 47.71 49.00United States 28,383 29.59 (2,715) 26.03 1,994 26.29 28.30 (959) 26,703 30.42 39.24Toronto 5,848 28.74 (614) 33.39 664 34.69 35.56 — 5,898 31.86 32.00Calgary 2,740 32.67 (183) 25.15 34 20.80 22.28 — 2,591 31.95 23.00Ottawa 415 20.43 (12) 16.26 10 16.12 16.39 — 413 20.46 18.00Vancouver 545 23.88 (1) 50.00 1 50.00 50.80 (545) — — —Canada 9,548 29.23 (810) 31.30 709 33.78 34.67 (545) 8,902 31.35 28.73in US$(1) 22.26 23.84 25.73 26.41 23.88 21.88Sydney 2,599 62.17 (457) 67.44 416 68.36 80.68 (421) 2,137 61.37 73.61Melbourne 678 48.61 (6) 118.31 6 125.11 148.30 — 678 49.92 44.40Perth 1,409 70.72 (12) 89.08 13 56.66 63.26 — 1,410 72.46 58.40Brisbane 349 56.31 (8) 100.51 30 54.22 60.76 — 371 56.28 53.30Canberra 177 35.35 (177) 36.71 177 40.68 39.77 — 177 41.17 32.50New Zealand 117 9.61 (85) 34.66 77 32.06 34.86 (109) — — —Australia & New Zealand 5,329 60.28 (745) 57.51 719 57.33 65.12 (530) 4,773 61.87 61.86in US$(1) 46.17 44.05 43.91 49.87 47.38 47.38London 4,322 42.78 (89) 38.70 97 43.31 41.31 30 4,360 43.02 50.22United Kingdom 4,322 42.78 (89) 38.70 97 43.31 41.31 30 4,360 43.02 50.22in US$(1) 55.52 50.22 56.20 53.61 55.83 65.17Berlin 925 24.96 (45) 18.85 147 25.28 25.32 (479) 548 24.98 30.10Germany 925 24.96 (45) 18.85 147 25.28 25.32 (479) 548 24.98 30.10in US$(1) 28.05 21.18 28.41 28.45 28.08 33.83São Paulo 141 211.00 — — — — — — 141 233.24 233.24Brazil 141 211.00 — — — — — — 141 233.24 233.24in US$(1) 65.01 — — — 71.86 71.86Total 48,648 $ 32.34 (4,404) $ 29.11 3,666 $ 30.51 $ 32.84 (2,483) 45,427 $ 33.46 $ 39.22


30


Core OfficePROPORTIONATE LEASE EXPIRY ANALYSIS

Sep. 30, 2016 Current 2016 2017 2018 2019 2020 2021 2022 & beyond Total(1)

(Local currency) (Sq. ft. in

000's) (Sq. ft. in

000's)

Net rent(per

sq. ft.)(2) (Sq. ft. in

000's)

Net rent(per


000's)

Net rent(per


000's)

Net rent(per


000's)

Net rent(per


000's)

Net rent(per


000's)

Net rent(per


000's)

Midtown New York 399 23 $ 70 243 $ 26 97 $ 29 241 $ 51 48 $ 48 61 $ 56 2,684 $ 51 3,796

Downtown New York 999 31 27 493 29 133 32 94 30 628 37 709 34 8,513 42 11,600

Washington, D.C. 656 51 30 199 29 342 34 257 30 513 32 836 30 1,221 44 4,075

Los Angeles 622 10 20 315 25 356 22 324 30 172 29 261 30 2,149 33 4,209

Houston 664 14 — 389 21 235 23 221 27 1,257 23 260 18 1,463 26 4,503

Boston 5 1 18 27 25 148 24 19 27 13 30 27 25 224 29 464

Denver 134 — — 84 16 34 20 255 22 27 24 80 24 727 27 1,341

San Francisco 5 — — — — 1 90 4 18 36 35 7 70 146 63 199

United States 3,484 130 32 1,750 25 1,346 27 1,415 32 2,694 29 2,241 30 17,127 40 30,187

Toronto 522 18 31 95 31 365 32 450 23 814 33 476 35 3,680 34 6,420

Calgary 226 11 33 22 34 70 41 41 42 139 42 61 39 2,247 34 2,817

Ottawa 24 — 30 3 24 8 18 23 24 2 27 143 23 234 19 437

Canada 772 29 32 120 31 443 33 514 25 955 34 680 33 6,161 33 9,674

in US$ 24 24 25 19 26 25 25

Sydney 42 37 76 120 51 260 71 323 60 77 43 173 69 1,147 79 2,179

Melbourne — — — 1 111 1 94 246 45 3 136 281 63 146 52 678

Perth 177 — — 51 65 12 88 119 74 1 200 16 86 1,211 101 1,587

Brisbane 41 111 34 11 98 12 81 56 55 54 65 64 71 63 93 412

Canberra — — — — — — — — — — — — — 177 45 177

Australia 260 148 45 183 58 285 72 744 57 135 55 534 67 2,744 85 5,033

in US$ 34 44 55 44 42 51 65

London 97 71 41 127 43 280 45 56 61 245 43 158 49 3,423 44 4,457

United Kingdom 97 71 41 127 43 280 45 56 61 245 43 158 49 3,423 44 4,457

in US$ 53 56 58 79 56 64 57

Berlin 72 10 20 36 22 165 27 81 23 8 38 2 41 246 24 620

Germany 72 10 20 36 22 165 27 81 23 8 38 2 41 246 24 620

in US$ 22 25 30 26 43 46 27

São Paulo — — — — — — — — — — — — — 141 233 141

Brazil — — — — — — — — — — — — — 141 233 141

in US$ — — — — — — 72

Total 4,685 388 $ 36 2,216 $ 28 2,519 $ 33 2,810 $ 34 4,037 $ 30 3,615 $ 34 29,842 $ 41 50,112

Total % expiring 9.3% 0.8% 4.4% 5.0% 5.6% 8.1% 7.2% 59.6% 100.0%

End of prior year 8.2% 4.7% 4.9% 7.1% 6.2% 7.9% 5.3% 55.7% 100.0%

Difference 1.1% (3.9%) (0.5%) (2.1%) (0.6%) 0.2% 1.9% 3.9%

(1) Excludes developments(2) Net rent represents cash rent in year of expiry

31


Core OfficeTOP TENANTS

Tenant Primary location Credit rating(1) Year of expiry(2)Total

(sq. ft. in 000's) Exposure (%)(3)

1 Government and Government Agencies Various AAA/AA+ Various 6,219 7.6%2 Barclays London BBB 2033 2,040 2.5%3 Morgan Stanley NY/Toronto/London A- 2029 1,948 2.3%4 CIBC World Markets(4) Calgary/NY/Toronto A+ 2035 1,445 1.8%5 Suncor Energy Inc. Calgary/Houston A- 2028 1,335 1.6%6 Bank of Montreal Calgary/Toronto A+ 2023 1,120 1.4%7 Bank of America | Merrill Lynch Denver/NY/LA/Toronto/D.C. A 2023 1,113 1.4%8 Deloitte Calgary/Houston/LA/Toronto Not Rated 2029 1,042 1.3%9 JPMorgan Chase & Co. Denver/Houston/LA/NY A- 2023 999 1.2%

10 Ernst & Young Denver/LA/Sydney/London Not Rated 2028 983 1.2%11 Royal Bank of Canada Various AA- 2025 866 1.1%12 BHP Billiton Perth A 2027 743 0.9%13 Commonwealth Bank Brisbane/Melbourne/Sydney AA- 2022 724 0.9%14 PricewaterhouseCoopers Calgary/LA/Perth/Sydney Not Rated 2026 713 0.9%15 Time Inc. NY BB- 2033 696 0.9%16 Hudson's Bay Company NY/Toronto B+ 2033 673 0.8%17 Devon Energy Houston BBB 2020 638 0.8%18 Chevron Houston AA- 2022 636 0.8%19 Cleary, Gottlieb, Steen & Hamilton LLP NY Not Rated 2031 552 0.7%20 CIB Properties Limited London Not Rated 2026 544 0.7%

Total 25,029 30.8%

(1) From Standard & Poor's Rating Services, Moody's Investment Services, Inc. or DBRS Limited(2) Reflects year of maturity related to lease(s) and is calculated based on a weighted average basis based on square feet where applicable(3) Prior to considering partnership interests in partially-owned properties(4) CIBC World Markets leases 1.1 million square feet at 300 Madison Avenue in New York, of which they sublease 925,000 square feet to PricewaterhouseCoopers LLP and 100,000 square feet toSumitomo Corporation of America

32


Core OfficeDEVELOPMENT SITES

Active Developments

Expected date ofcash stabilization

Proportionate

Percent pre-leased

Area currently under construction

Sep. 30, 2016 CostYield on cost

Assets undermanagement Proportionate(Local currency Millions and sq. ft. in 000's) Location Total To-date

Office

L'Oréal Brazil Headquarters Rio de Janeiro Q4 2017 R$ 137 R$ 77 12% 100% 197 92

Brookfield Place East Tower Calgary Q3 2018 C$ 799 C$ 564 7% 81% 1,400 1,400

Principal Place - Commercial London Q1 2020 £ 376 £ 270 8% 84% 621 621

London Wall Place London Q2 2020 £ 203 £ 146 7% 73% 505 253

One Manhattan West New York City Q4 2020 $ 1,063 $ 259 6% 30% 2,117 1,186

655 New York Avenue Washington, D.C. Q2 2021 $ 285 $ 99 7% 70% 766 383

100 Bishopsgate London Q4 2021 £ 875 £ 373 7% 38% 938 938

1 Bank Street London Q1 2023 £ 247 £ 69 7% 40% 715 358

Multifamily

Three Manhattan West New York City Q3 2018 $ 414 $ 296 5% n/a 587 329

Camarillo Camarillo, CA Q1 2019 $ 127 $ 49 7% n/a 413 409

Greenpoint Landing Building G New York City Q4 2019 $ 273 $ 76 6% n/a 250 238

Newfoundland London Q4 2020 £ 242 £ 84 4% n/a 546 273

Principal Place - Residential London n/a £ 190 £ 61 n/a n/a 303 152

Shell Centre - Residential London n/a £ 164 £ 62 n/a n/a 529 132

Active developments 9,887 6,764

Total Development Density

Sep. 30, 2016 Number of Assets undermanagement Proportionate(Sq. ft. in 000's) Location sites

Active developments 13 9,887 6,764

Active planning

United States

Manhattan West New York City — 2,296 1,286

1810 Main Houston 1 262 262

Greenpoint Landing Building F New York City — 310 295

Westcreek Houston 1 495 495

Studio Plaza Silver Spring, MD 1 343 296

Dallas Hi Line Dallas 1 509 509

United Kingdom

10 Bank Street London 1 857 428

Shell Centre London — 881 220

North Quay London 1 2,390 1,195

One Park Place London 1 680 340

Wood Wharf London 1 4,769 2,385

United Arab Emirates

ICD Brookfield Place Dubai 1 1,104 552

Active planning 9 14,896 8,263

Future development

United States 7 5,049 4,173

Canada 5 3,452 2,526

Future development 12 8,501 6,699

Total developments 34 33,284 21,726

(1) Represents condominium/market sale developments

33


Core OfficeDEBT

Sep. 30, 2016 Proportionate Mortgagedetails(US$ Millions) Location Rate Maturity date IFRS Total 2016 2017 2018 2019 2020 Thereafter

United States

Silver Spring Metro Plaza Washington, D.C. 2.61% October 2016 $ 97 $ 82 $ 82 $ — $ — $ — $ — $ — Floating

1801 California Street Denver 3.70% December 2016 207 106 106 — — — — — Floating

200 Vesey Street New York 2.75% December 2016 225 225 225 — — — — — Floating

200 Liberty Street New York 5.83% February 2017 310 310 — 310 — — — — Fixed

Wells Fargo Center - North Tower Los Angeles 5.70% April 2017 550 260 — 260 — — — — Fixed

One Liberty Plaza New York 6.14% August 2017 795 795 — 795 — — — — Fixed

685 Market Street San Francisco 2.76% November 2017 55 55 — 55 — — — — Floating

One & Two Reston Crescent Washington, D.C. 2.31% December 2017 72 61 — 61 — — — — Floating

Manhattan West New York 5.90% April 2018 122 122 — — 122 — — — Fixed

Two Allen Center Houston 6.45% May 2018 187 158 — — 158 — — — Fixed

Retail and Winter Garden New York 3.21% June 2018 325 325 — — 325 — — — Floating

Three Bethesda Metro Center Washington, D.C. 2.04% June 2018 108 108 — — 108 — — — Floating

1201 Louisiana Street Houston 4.65% November 2018 90 90 — — 90 — — — Fixed

Greenpoint Landing F(1) New York 3.96% November 2018 42 42 — — 42 — — — Floating

Greenpoint Landing G(1) New York 3.96% November 2018 33 33 — — 33 — — — Floating

Wells Fargo Center - South Tower Los Angeles 2.33% December 2018 290 137 — — 137 — — — Floating

One North End Avenue New York 3.19% December 2018 162 162 — — 162 — — — Floating

Potomac Tower Washington, D.C. 4.50% January 2019 80 80 — — — 80 — — Fixed

FIGat7th Los Angeles 2.77% September 2019 35 17 — — — 17 — — Floating

2001 M Street Washington, D.C. 3.27% October 2019 90 76 — — — 76 — — Floating

777 Tower Los Angeles 2.71% November 2020 220 104 — — — — 104 — Floating

601 South 12th Street Washington, D.C. 4.18% November 2020 55 55 — — — — 55 — Fixed

701 South 12th Street Washington, D.C. 4.18% November 2020 45 45 — — — — 45 — Fixed

Ernst & Young Tower Los Angeles 3.93% November 2020 182 86 — — — — 86 — Fixed

Camarillo(1) Camarillo, CA 2.77% November 2020 3 3 — — — — 3 — Floating

1550 & 1560 Wilson Boulevard Washington, D.C. 2.10% January 2021 53 45 — — — — — 45 Floating

One New York Plaza(2) New York 3.05% March 2021 750 383 — — — — — 383 Fixed

1600 Smith Street Houston 3.46% April 2021 106 89 — — — — — 89 Floating

One Allen Center Houston 3.46% April 2021 153 129 — — — — — 129 Floating

Three Allen Center Houston 3.46% April 2021 166 140 — — — — — 140 Floating

The Gas Company Tower Los Angeles 4.35% August 2021 450 213 — — — — — 213 Fixed

601 Figueroa Los Angeles 3.49% July 2023 250 118 — — — — — 118 Fixed

Sunrise Tech Park(2) Washington, D.C. 3.70% July 2023 40 34 — — — — — 34 Fixed

Bank of America Plaza Los Angeles 4.05% September 2024 400 189 — — — — — 189 Fixed

250 Vesey Street New York 3.77% November 2025 600 600 — — — — — 600 Fixed

225 Liberty Street New York 4.66% February 2026 900 900 — — — — — 900 Fixed

701 9th Street Washington, D.C. 6.73% December 2028 142 142 — — — — — 142 Fixed

300 Madison Avenue New York 7.26% April 2032 317 317 — — — — — 317 Fixed

United States properties 4.45% $ 8,707 $ 6,836 $ 413 $ 1,481 $ 1,177 $ 173 $ 293 $ 3,299

(1) Development debt(2) Represents debt associated with assets held for sale

34


Core OfficeDEBT (CONT’D)


Canada

Bay Adelaide East Toronto 2.77% December 2017 $ 245 $ 245 $ — $ 245 $ — $ — $ — $ — Floating

2 Queen Street East Toronto 5.64% December 2017 22 22 — 22 — — — — Fixed

Hudson's Bay Centre Toronto 2.38% May 2018 105 105 — — 105 — — — Floating

Brookfield Place Calgary East(1) Calgary 2.63% November 2018 222 222 — — 222 — — — Floating

Bay Wellington Tower Toronto 3.24% January 2020 371 371 — — — — 371 — Fixed

22 Front Street Toronto 6.24% October 2020 13 13 — — — — 13 — Fixed

Bankers Court Calgary 4.96% November 2020 32 32 — — — — 32 — Fixed

Queen's Quay Terminal Toronto 5.40% April 2021 60 60 — — — — — 60 Fixed

Fifth Avenue Place Calgary 4.71% August 2021 117 117 — — — — — 117 Fixed

Bay Adelaide West Toronto 4.43% December 2021 282 282 — — — — — 282 Fixed

Exchange Tower Toronto 4.03% April 2022 81 81 — — — — — 81 Fixed

105 Adelaide Toronto 3.87% May 2023 26 26 — — — — — 26 Fixed

Bankers Hall Calgary 4.38% November 2023 219 219 — — — — — 219 Fixed

First Canadian Place Toronto 3.56% December 2023 57 57 — — — — — 57 Fixed

Jean Edmonds Towers Ottawa 6.79% January 2024 12 12 — — — — — 12 Fixed

Place de Ville I Ottawa 3.75% June 2025 16 16 — — — — — 16 Fixed

Place de Ville II Ottawa 3.75% June 2025 17 17 — — — — — 17 Fixed

Suncor Energy Centre Calgary 5.19% August 2033 196 196 — — — — — 196 Fixed

Canadian properties 3.83% $ 2,093 $ 2,093 $ — $ 267 $ 327 $ — $ 416 $ 1,083

Australia

10 Shelley Street Sydney 3.53% March 2017 $ 105 $ 105 $ — $ 105 $ — $ — $ — $ — Floating

235 St Georges Terrace Perth 3.53% March 2017 35 35 — 35 — — — — Floating

52 Goulburn Street Sydney 3.72% January 2018 46 46 — — 46 — — — Fixed/floating

Southern Cross West Tower Melbourne 3.72% January 2018 61 61 — — 61 — — — Fixed/floating

324 Queen Street (ANZ Centre) Brisbane 4.18% January 2018 21 21 — — 21 — — — Floating

Brookfield Place Tower 2 Perth 3.43% June 2018 170 170 — — 170 — — — Floating

Brookfield Place Perth 3.31% July 2018 498 498 — — 498 — — — Floating

Southern Cross East Tower Melbourne 3.28% June 2019 150 150 — — — 150 — — Floating

240 Queen Street (CBA Building) Brisbane 3.28% June 2019 88 88 — — — 88 — — Floating

3 Spring Street Sydney 3.49% July 2019 27 27 — — — 27 — — Floating

Brookfield Prime Property Fund pool Various 3.92% July 2020 241 241 — — — — 241 — Floating

Australian properties 4.28% $ 1,442 $ 1,442 $ — $ 140 $ 796 $ 265 $ 241 $ —

United Kingdom

20 Canada Square London 6.31% July 2017 $ 370 $ 370 $ — $ 370 $ — $ — $ — $ — Fixed

Leadenhall Court London 2.74% August 2018 38 38 — — 38 — — — Floating

Moor Place(2) London 2.52% December 2019 179 179 — — — 179 — — Floating

Principal Place - Commercial(1) London 2.67% April 2020 221 221 — — — — 221 — Floating

100 Bishopsgate(1) London 3.44% June 2021 60 60 — — — — — 60 Floating

United Kingdom properties 4.23% $ 868 $ 868 $ — $ 370 $ 38 $ 179 $ 221 $ 60

Brazil

Faria Lima 3500 São Paulo 11.77% October 2034 $ 90 $ 46 $ — $ — $ — $ — $ — $ 46 Floating

Brazilian properties 11.77% $ 90 $ 46 $ — $ — $ — $ — $ — $ 46

(1) Development debt(2) Represents debt associated with assets held for sale

35


Core OfficeDEBT (CONT’D)


Corporate

Senior Notes — 4.30% January 2017 $ 152 $ 152 $ — $ 152 $ — $ — $ — $ — Fixed

Senior Notes — 4.00% April 2018 114 114 — — 114 — — — Fixed

$1B Corporate Revolver — 1.63% January 2019 914 914 — — — 914 — — Floating

Mezzanine Financing — 5.27% May 2019 200 169 — — — 169 — — Floating

C$350M BOX Corporate Revolver — 2.34% August 2021 34 34 — — — — — 34 Floating

Corporate 2.58% 1,414 $ 1,383 $ — $ 152 $ 114 $ 1,083 $ — $ 34

Other jointly controlled properties

Jessie St Centre Sydney 4.23% December 2016 $ — $ 100 $ 100 $ — $ — $ — $ — $ — Fixed

Alinga Street Canberra 4.23% December 2016 — 24 24 — — — — — Fixed

IAG House Sydney 3.53% March 2017 — 71 — 71 — — — — Fixed/floating

Darling Park Complex Sydney 3.53% March 2017 — 152 — 152 — — — — Floating

424/434 West 33rd Street New York 3.02% July 2017 — 39 — 39 — — — — Floating

245 Park Avenue New York 3.88% November 2017 — 408 — 408 — — — — Fixed

1400 K Street Washington, D.C. 5.30% February 2018 — 20 — — 20 — — — Fixed

1250 Connecticut Avenue Washington, D.C. 2.22% June 2018 — 24 — — 24 — — — Floating

Victor Building Washington, D.C. 2.22% June 2018 — 62 — — 62 — — — Floating

London Wall Place(1) London 3.02% June 2018 — 93 — — 93 — — — Floating

Manhattan West(1) New York 3.27% November 2018 — 155 — — 155 — — — Floating

Potsdamer Platz Berlin 1.25% December 2018 — 220 — — 220 — — — Floating

15 Broad Street Boston 2.16% March 2019 — 9 — — — 9 — — Floating

Five Manhattan West New York 3.27% July 2019 — 306 — — — 306 — — Floating

Principal Place - Residential(1) London 3.13% December 2019 — 8 — — — 8 — — Floating

One Manhattan West(1) New York 3.87% April 2020 — 73 — — — — 73 — Floating

655 New York Avenue Washington, D.C. 2.76% April 2020 — 34 — — — — 34 — Floating

799 9th Street Washington, D.C. 2.22% June 2020 — 39 — — — — 39 — Floating

1200 K Street Washington, D.C. 5.88% February 2021 — 54 — — — — — 54 Fixed

Bethesda Crescent Washington, D.C. 5.58% February 2021 — 23 — — — — — 23 Fixed

The Grace Building New York 3.61% June 2021 — 378 — — — — — 378 Fixed

Marina Towers Los Angeles 2.78% September 2021 — 30 — — — — — 30 Floating

77 K Street Washington, D.C. 4.58% June 2022 — 45 — — — — — 45 Fixed

650 Massachusetts Avenue Washington, D.C. 3.21% June 2022 — 37 — — — — — 37 Fixed

Republic Plaza Denver 4.24% December 2022 — 138 — — — — — 138 Fixed

75 State Street Boston 3.50% May 2025 — 158 — — — — — 158 Fixed

99 Bishopsgate London 3.41% July 2025 — 47 — — — — — 47 Fixed

Three Manhattan West(1) New York 2.01% November 2049 — 130 — — — — — 130 Floating

Canary Wharf London 4.49% May 2018 - Jul 2034 — 2,239 — — 14 335 252 1,638 Fixed

Other jointly controlled properties 3.85% — $ 5,116 $ 124 $ 670 $ 588 $ 658 $ 398 $ 2,678

Total including debt associated with assets held for sale 14,614 17,784 537 3,080 3,040 2,358 1,569 7,200

Less: Debt associated with assets held for sale (969) (596) — — — (179) — (417)

Total before deferred financing costs 13,645 17,188 537 3,080 3,040 2,179 1,569 6,783

Less: Deferred financing costs (105) (141)

Total $ 13,540 $ 17,047

Weighted average interest rate 4.03% 3.26% 4.95% 3.32% 2.93% 3.58% 4.35%

(1) Development debt

36


Core OfficeCAPITAL EXPENDITURES

ProportionateQuarter-to-date Year-to-date

(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015

Leasing commissions $ 14 $ 17 $ 26 $ 72Tenant improvements 74 150 229 333

Commercial property tenant installation costs 88 167 255 405

Construction costs 256 280 851 951Interest capitalized 37 39 91 97Property taxes and other — 2 5 29

Development and redevelopment investments 293 321 947 1,077

Recoverable(1) 4 9 12 20Non-recoverable(2) 44 23 88 65Capital expenditures $ 48 $ 32 $ 100 $ 85

(1) Recoverable capital expenditures represent improvements to an asset or reconfiguration of space to increase rentable area or increase current rental rates(2) Non-recoverable expenditures are those required to extend the service life of an asset

37


Core RetailNET OPERATING INCOME AND KEY PERFORMANCE METRICS

Commercial Property Net Operating IncomeQuarter-to-date Year-to-date

(Millions in source currency unless otherwise noted) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Same-property NOI $ 157.0 $ 151.3 $ 476.3 $ 459.1

Percent of same-property NOI growth 3.8% 3.7%Non same-property NOI 3.0 15.4 14.0 27.8Total NOI $ 160.0 $ 166.7 $ 490.3 $ 486.9Less: straight-line rental income (2.0) (3.1) (6.3) (8.4)Total cash NOI $ 158.0 $ 163.6 $ 484.0 $ 478.5

Key Performance Metrics(US$ and sq. ft. in 000's) Sep. 30, 2016Number of properties 126Leasable sq. ft.:

Assets under management 124,028Proportionate 29,668

Same-property:Occupancy 95.5%Average in-place rents per square foot 62.52Tenant sales per square foot 583

38


Core RetailSIGNED LEASES AND LEASE EXPIRY ANALYSIS

Leasing Activity - All Leases Commencement 2016 Commencement 2017

Sep. 30, 2016 Sq. ft. in 000's

Term(in years)

Initial rentper sq. ft.

Average rentper sq. ft. # of leases Sq. ft. in 000's

Term(in years)

Initial rentper sq. ft.

Average rentper sq. ft.(US$) # of leases

New and renewal leases 1,938 6,931 7.3 $ 62.50 $ 68.66 347 1,890 7.9 $ 45.87 $ 50.48Percent in lieu/gross 316 1,795 6.7 n/a n/a 48 552 6.5 n/a n/aTotal leases 2,254 8,726 7.2 $ 62.50 $ 68.66 395 2,442 7.6 $ 45.87 $ 50.48

Suite-to-Suite Lease Spreads(1,2)

New and renewal leasesSep. 30, 2016

Sq. ft. in 000'sTerm

(in years)Initial rentper sq. ft.

Average rentper sq. ft.

Expiring rentper sq. ft.(US$) # of leases Initial rent spread Average rent spread

Commencement 2016 1,498 4,523 6.9 $ 67.87 $ 74.54 $ 61.48 $ 6.39 10.4% $ 13.06 21.2%Commencement 2017 291 1,167 6.5 54.66 60.38 49.53 5.13 10.4% 10.85 21.9%

(1) Represents signed leases that have commenced in the specified period compared to expiring rent for the prior tenant in the same suite. New suites are within 10,000 square feet of the expiring suites(2) Represents leases where downtime between the new and previous tenant was less than 24 months

Lease Expiration

Sep. 30, 2016 Number ofexpiring leases

Expiring GLA at100%

(sq. ft. in 000's) Percent of totalExpiring rent

(in thousands)Expiring rent

per sq. ft.(US$)Specialty leasing 921 1,947 3.8% $ 40,644 $ 20.872016 424 1,252 2.4% 74,282 59.322017 1,996 6,432 12.4% 361,398 56.182018 1,624 5,606 10.8% 344,861 61.512019 1,378 5,635 10.9% 325,062 57.692020 1,091 3,977 7.7% 244,123 61.382021 1,117 4,248 8.2% 270,103 63.582022 847 3,400 6.6% 229,905 67.612023 939 3,671 7.1% 276,336 75.292024 850 4,127 8.0% 305,039 73.91Subsequent 1,955 11,405 22.1% 792,000 69.45Total 13,142 51,700 100.0% $ 3,263,753 $ 63.13Vacant space 707 1,776Mall and freestanding GLA 13,849 53,476

39


Core RetailTOP TENANTS

Tenant Primary DBA Exposure(1)

1 L Brands, Inc. Victoria's Secret, Bath & Body Works, PINK, Henri Bendel 3.6%2 Foot Locker, Inc. Footlocker, Champs Sports, Footaction USA, House of Hoops, SIX:02 2.9%3 The Gap, Inc. Gap, Banana Republic, Old Navy, Athleta 2.8%4 Forever 21 Retail, Inc. Forever 21 2.2%5 Abercrombie & Fitch Stores, Inc. Abercrombie, Abercrombie & Fitch, Hollister 2.0%6 Express, Inc. Express, Express Men 2.0%7 Ascena Retail Group Dress Barn, Justice, Lane Bryant, Maurices, Ann Taylor, Loft 1.8%8 Signet Jewelers Limited Zales, Gordon's, Kay, Jared 1.6%9 Genesco Inc. Journeys, Lids, Underground Station, Johnston & Murphy 1.5%

10 Luxottica Group S.p.A. Lenscrafters, Sunglass Hut, Pearle Vision 1.4%Total 21.8%

(1) Percent of minimum rents, tenant recoveries and other

40


Core RetailDEVELOPMENT SITES

Sep. 30, 2016 StabilizedYear

Proportionate cost Expectedreturn on

investment(US$ Millions) Location Description Total To-date

Active developments

Ala Moana Center Honolulu, Hawaii Anchor repositioning 2018 $ 15.3 $ 10.1 9-10%

Staten Island Mall Staten Island, New York Expansion 2019 57.4 6.6 8-9%

Other Various 2017-2018 98.6 49 6-8%

Active developments 171.3 65.7

In planning

New Mall Development Norwalk, Connecticut Ground up development 2020 82.2 14.1 8-10%

Other Various TBD 47.9 16.4 8-9%

In planning 130.1 30.5

Total retail developments $ 301.4 $ 96.2

41


OpportunisticSUMMARY OF OPPORTUNISTIC INVESTMENTS

Current Quarter HighlightsNOI Company FFO

Quarter-to-date Year-to-date Quarter-to-date Year-to-date(US$ Millions) Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015Office $ 15 $ 11 $ 45 $ 29 $ 10 $ 7 $ 30 $ 18Retail 34 25 86 70 10 10 29 31Industrial 11 10 38 28 3 5 13 10Multifamily 20 16 62 44 20 10 65 31Hospitality 58 51 174 111 32 23 93 56Triple Net Lease 20 18 58 54 9 8 26 24Self-storage 5 — 10 — 1 — 4 —Student Housing 2 — 3 — 1 — 2 —Finance Funds — — — — 4 3 11 7Total $ 165 $ 131 $ 476 $ 336 $ 90 $ 66 $ 273 $ 177

Commercial properties Invested capital(US$ Millions) Sep. 30, 2016 Dec. 31, 2015 Sep. 30, 2016 Dec. 31, 2015Office $ 1,009 $ 875 $ 600 $ 501Retail 2,295 1,648 972 786Industrial 782 696 547 510Multifamily 1,391 1,928 748 878Hospitality(1) — — 757 1,078Triple Net Lease 1,238 1,182 418 381Self-storage 371 — 179 —Student Housing 135 — 61 —Finance Funds — — 147 117Total $ 7,221 $ 6,329 $ 4,429 $ 4,251

(1) Hospitality assets of $2,058M and $2,336M at September 30, 2016 and December 31, 2015, respectively, are recorded separately from commercial properties

42


OpportunisticSUMMARY OF OPPORTUNISTIC INVESTMENTS (CONT'D)

Key Performance MetricsSep. 30, 2016 Area

(US$ and sq. ft. in 000's) No. of properties Assets undermanagement Proportionate

Unit ofmeasurement Occupancy %

Opportunistic Office 110 23,941 7,604 Sq. ft. 83.5%Opportunistic Retail 44 27,156 6,680 Sq. ft. 89.1%Industrial 185 46,157 14,477 Sq. ft. 90.0%Multifamily 110 31,935 9,067 Units 94.8%Hospitality 19 14,092 4,408 Rooms n/aTriple Net Lease 334 16,863 4,325 Sq. ft. 99.9%Self-storage 161 12,707 3,248 Sq. ft. 88.3%Student Housing 14 5,828 1,490 Beds 99.1%

Summary of Hospitality Properties

Avg. daily rate per room(1) Revenue per available room(1)Assets undermanagement ProportionateNumber of

properties Sep. 30, 2016 Sep. 30, 2015 Sep. 30, 2016 Sep. 30, 2015 # of rooms Own % # of rooms

North America 11 $ 241 $ 228 $ 188 $ 180 8,652 35% 2,862United Kingdom(2) 5 285 259 279 254 4,142 27% 1,138Australia(2) 3 140 138 105 102 1,298 31% 408Total 19 14,092 32% 4,408

(1) Excludes portfolio of hospitality assets in Germany disposed of during the third quarter of 2016(2) Using the average quarter-to-date exchange rate for the three months ended September 30, 2016 for all periods presented

43


CorporateFOREIGN CURRENCY EXPOSURE

Sep. 30, 2016(US$ Millions) USD GBP AUD/NZD EUR BRL RMB INR CAD HKD TotalNet equity - US$ $ 14,991 $ 4,839 $ 1,735 $ 380 $ 566 $ 162 $ 165 $ (212) $ (10) $ 22,616FX contracts - US$ 5,587 (3,711) (1,395) (343) — (138) — — — —Net unhedged - US$ 20,578 1,128 340 37 566 24 165 (212) (10) 22,616

% of total equity 90.9% 5.0% 1.5% 0.2% 2.5% 0.1% 0.7% (0.9%) —%End of prior year - US$ 17,338 2,558 1,413 226 442 36 138 (193) — 21,958

% of total equity 79.1% 11.6% 6.4% 1.0% 2.0% 0.2% 0.6% (0.9)% —%

44


CorporateMANAGEMENT FEE AND INCENTIVE DISTRIBUTION

▪ Performance-based fees paid to Brookfield Asset Management on BPY’sinterests in Brookfield Asset Management-sponsored funds are offsetagainst the incentive distribution. The amount available for the offsetsis calculated as the accumulated performance fees incurred since BPY’sspin-out in April 2013, less any prior gross incentive distribution offsetstaken.

▪ As shown above, in the third quarter of 2016, Brookfield AssetManagement earned $0.63M of incentive distributions, which werefully offset by the available credits. As of September 30, 2016, BPY hasan additional $21.6M of credits available to offset against futureincentive distributions.

Management Fee(US$ Millions, except per unit amounts) No. of units Price AmountInitial market value of BPY units 466.3 $ 21.91 $ 10,218Corporate capital securities

Class B and Class C preferred shares(1) 1,250Class A preferred equity 25

Recourse debt, net of cash (25)Initial capitalization 11,468 A

Current market value of BPY units 710.7 $ 23.04 16,374Corporate capital securities

Class B and Class C preferred shares(1) 1,250Preferred equity units(2) 1,800Class A preferred equity 15

Recourse debt, net of cash 1,825Current capitalization 21,264 B

Minimum fee ($50M annually) 12.5Fee on increased market capitalization ((B - A) x 0.3125%) 30.6Available creditable operating payments (12.8)Total management fee(3) $ 30.3

(1) Refer to page 18 for details on these preferred shares(2) Preferred shares of $1,800M were issued in the fourth quarter of 2014 in connection with the jointventure in Canary Wharf and are comprised of three series of Class A preferred equity units that aremandatorily convertible into units after seven, ten and twelve years, respectively, based on tranche(3) Total management fee consists of a base management fee ("Base") equal to 0.125% of current marketcapitalization per quarter, subject to a minimum of $12.5M, and an equity enhancement distribution("EED") equal to 0.3125% of the change in capitalization since initial capitalization. The EED is reduced bythe amount the Base exceeds the minimum of $12.5M. The total fee is reduced by the amount of similarfees paid by BPY for capital invested in Brookfield Asset Management-sponsored funds

▪ Our total management fee paid in the third quarter of 2016 was$30.3M compared to $34.7M in the prior quarter, as a marginalincrease in capitalization was offset by higher creditable operatingpayments.

Incentive Distribution(US$ Millions, except per unit amounts) Rate Per Unit AmountDistribution per quarter $ 0.280 $ 198.96 AFirst distribution

First distribution threshold 0.275 195.41195.41 B

Second distribution(1)

Distribution above first threshold (A - B) 0.025 3.55Add: 15% incentive distribution 15.0% 0.63

4.18 CThird distribution(2)

Distribution above second threshold — —Add: 25% incentive distribution 25.0% —

—Total distributions (B + C) 199.59Incentive distributions 0.63Less: Incentive distribution account credits (0.63)Net incentive distribution payable to Brookfield Asset Management $ —

(1) The incentive distribution is 15% of BPY's regular distributions (i.e., excluding the EED) between $1.10and $1.20 per year (or $0.275 and $0.30 per quarter)(2) The incentive distribution is 25% of BPY's regular distributions (i.e., excluding the EED) above $1.20 peryear (or $0.30 per quarter)

45


GLOSSARY OF TERMS

Terms Description

Anchor Department stores whose merchandise appeals to a broad range of shoppers. Anchors either own their stores, the land under them and adjacent parking areas, orenter into long-term leases at rates that are generally lower than the rents charged to mall store tenants.

Average leasing net rent Average rent over the lease term on a per square foot basis including tenant expense reimbursements, less operating expenses being incurred for that space, butincluding the impact of straight-lining rent escalations or amortization of free rent periods.

Average rent Represents average rent over the term consisting of base minimum rent and common area costs.

Company FFO FFO before the impact of depreciation and amortization of non-real estate assets, transaction costs, gains (losses) associated with non-investment properties plusthe FFO that would have been attributable to the partnership's shares of GGP if all outstanding warrants of GGP were exercised on a cashless basis.

DFC Deferred financing costs.

Expiring net rent Escalated cash rent at the end of the lease term on a per square foot basis including tenant expense reimbursements, less operating expenses being incurred for thatspace.

Expiring rent Represents rent at the end of the lease consisting of base minimum rent and common area costs.

Funds from Operations ("FFO") Income, including equity accounted income, before realized gains (losses) on investment property, fair value gains (losses) (including equity accounted fair valuegains (losses)), unrealized fair value gains (losses) that arise as a result of reporting under IFRS, depreciation and amortization of real estate assets, income taxexpense (benefit), and less non-controlling interests.

Gross Leasable Area ("GLA") Total gross leasable space at 100%.

In-place net rent For our office segment, the annualized amount of cash rent receivable from leases on a per square foot basis including tenant expense reimbursements, lessoperating expenses being incurred for that space, but excluding the impact of straight-lining rent escalations or amortization of free rent periods.

In-place rent For our retail segment, the amount of cash consisting of base minimum rent and common area costs.

Mall and freestanding Inline mall shop and outparcel retail locations (locations that are not attached to the primary complex of buildings that comprise a shopping center). Excludes anchorstores.

Net Operating Income ("NOI") Revenues from commercial and hospitality operations of consolidated properties less direct property expenses.

Office (as defined by Core Retail segment only) Leasable office space, either peripheral to a retail center or a stand-alone office building without a retail component.

Operating Entity Subsidiaries of the operating partnership that hold interests, directly or indirectly, in BPY's real estate assets other than entities in which such subsidiaries holdinterests for investment purposes only of less than 5% of the equity securities.

Operating partnership Brookfield Property L.P.

Proportionate Reflects proportionate share of the operating subsidiaries attributable to Unitholders.

Service Recipient BPY, the operating partnership and its primary holding subsidiaries and any wholly-owned subsidiary thereof excluding any operating entity.

Specialty leasing Temporary tenants on license agreements (as opposed to leases) with terms in excess of twelve months. License agreements are cancellable by the company with 60days notice.

Strip center An attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies mayconnect the storefronts, but a strip center does not have enclosed walkways linking the stores.

Tenant sales Comparative rolling twelve month sales for inline mall tenants that opened at less than 10,000 square feet.

Unitholders Refers to holders of general partnership and limited partnership units of BPY, limited partner units of the operating partnership and limited partner units ofBrookfield Office Properties Exchange LP.

bpy - supplemental 2016-q3/media/files/b/brookfield-bpy... · 2016-11-18 · 3 brookfield property...

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