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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 6, 2020

 

 

 

Brookfield Property REIT Inc.

(Exact name of registrant as specified in its charter)

  

Delaware   001-34948   27-2963337
(State or other jurisdiction of incorporation)   (Commission File Number)   (IRS Employer Identification No.)

  

250 Vesey Street, 15th Floor, New York, NY   10281
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (212) 417-7000

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

  

Title of each class   Trading Symbol(s)   Name of each exchange on which
Registered
Class A Stock, par value $0.01 per share   BPYU   Nasdaq Global Select Market
6.375% Series A Cumulative Perpetual Redeemable Preferred Stock, par value $0.01 per share   BPYUP   Nasdaq Global Select Market

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act or Rule 12b-2 of the Exchange Act.

 

Emerging growth company  ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

  

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On August 6, 2020 Brookfield Property REIT Inc. (the “Company”) disclosed the following financial information:

 

The following is the Company’s balance sheet as at June 30, 2020 and December 31, 2019.

 

Brookfield Property REIT Inc.

 

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

    June 30, 2020     December 31, 2019  
    (Dollars in thousands, except share and per share amounts)  
Assets:                
Investment in real estate:                
Land   $ 3,725,551     $ 3,659,595  
Buildings and equipment     14,262,736       14,020,589  
Less accumulated depreciation     (2,787,621 )     (2,569,911 )
Construction in progress     207,938       160,443  
Net property and equipment     15,408,604       15,270,716  
Investment in Unconsolidated Real Estate Affiliates     4,495,267       4,634,292  
Net investment in real estate     19,903,871       19,905,008  
Cash and cash equivalents     209,689       197,829  
Accounts receivable, net     517,209       234,928  
Notes receivable     42,041       76,310  
Deferred expenses, net     173,375       188,591  
Prepaid expenses and other assets     746,888       745,060  
Deferred tax assets, net     623,022       625,660  
Total assets   $ 22,216,095     $ 21,973,386  
Liabilities:                
Mortgages, notes and loans payable   $ 16,600,275     $ 15,902,894  
Investment in Unconsolidated Real Estate Affiliates     130,958       125,565  
Accounts payable and accrued expenses     1,006,741       1,027,130  
Dividend payable     21       21  
Junior subordinated notes     206,200       206,200  
Total liabilities     17,944,195       17,261,810  
Redeemable equity interests     1,172,745       1,354,234  
Redeemable noncontrolling interests     61,837       62,235  
Total redeemable interests     1,234,582       1,416,469  
Equity:                
Total stockholders' equity     1,578,756       1,762,367  
Noncontrolling interests     1,458,562       1,532,740  
Total equity     3,037,318       3,295,107  
Total liabilities, redeemable interests and equity   $ 22,216,095     $ 21,973,386  

 

 

The following is the Company’s income statement for the three and six months ended June 30, 2020 and June 30, 2019.

 

 

 

 

Brookfield Property REIT Inc.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2020     2019     2020     2019  
    (Dollars in thousands, except per share amounts)  
Revenues:                                
Rental revenues, net   $ 341,073     $ 314,239     $ 692,902     $ 637,259  
Management fees and other corporate revenues     26,565       38,050       61,903       79,238  
Other     6,827       8,743       23,290       20,918  
Total revenues     374,465       361,032       778,095       737,415  
Operating Expenses:                                
Real estate taxes     48,656       42,374       96,463       83,229  
Property maintenance costs     6,414       6,335       15,560       16,396  
Marketing     1,641       921       2,405       1,825  
Other property operating costs     37,262       41,076       87,083       84,498  
Property management and other costs     57,524       59,247       118,499       115,301  
General and administrative     5,002       5,320       9,892       10,733  
Costs related to the BPY Transaction     —       840       —       9,179  
Provision for impairment     71,455       184,347       71,455       184,347  
Depreciation and amortization     162,896       118,382       320,242       237,181  
Total operating expenses     390,850       458,842       721,599       742,689  
Interest and dividend income     763       2,891       3,859       11,313  
Interest expense     (163,964 )     (158,845 )     (342,766 )     (313,551 )
Gain on extinguishment of debt     14,320       —       14,320       —  
Loss from changes in control of investment properties and other, net     (15,433 )     —       (15,433 )     —  
Loss before income taxes, equity in loss of Unconsolidated Real Estate Affiliates and related gain on investment, and allocation to noncontrolling interests     (180,699 )     (253,764 )     (283,524 )     (307,512 )
Benefit from (provision for) income taxes     6,640       (3,503 )     1,212       (7,953 )
Equity in loss of Unconsolidated Real Estate Affiliates     (56,426 )     (7,838 )     (61,269 )     (15,711 )
Unconsolidated Real Estate Affiliates - (loss) gain on investment, net     (1,120 )     —       11,527       104,354  
Net loss     (231,605 )     (265,105 )     (332,054 )     (226,822 )
Allocation to noncontrolling interests     22,555       37,885       41,177       31,252  
Net loss attributable to Brookfield Property REIT Inc.   $ (209,050 )   $ (227,220 )   $ (290,877 )   $ (195,570 )

 

 

 

 

Item 7.01 Regulation FD Disclosure.

 

The Company’s board of directors has authorized the repurchase of up to the greater of 5% of the shares of Class A Stock that are issued and outstanding or 10% of the Class A Stock public float over the next 12 months as market conditions and the Company’s liquidity warrant. Repurchases may be made through open market purchases, privately negotiated transactions, structured or derivative transactions, including accelerated stock repurchase transactions, or other methods of acquiring shares and pursuant to Rule 10b5-1 of the Securities Act, from time to time as permitted by applicable securities laws and other legal requirements.

 

The information set forth in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  BROOKFIELD PROPERTY REIT INC.
   
   
August 6, 2020 By: /s/ Michelle Campbell
  Name: Michelle Campbell
  Title: Secretary

 

 

 

 

 

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