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BPYU Brookfield Property REIT

Filed: 2 Feb 21, 7:30am

 

 

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):
January 29, 2021

 

 

 

Brookfield Property REIT Inc.

(Exact name of registrant as specified in its charter)

  

Delaware 001-34948 27-2963337

(State or other jurisdiction of incorporating or organization)

 (Commission File Number) (I.R.S. Employer Identification Number)

  

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

 

(212) 417-7000

(Registrant’s telephone number, including area code)

 

 

 

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 $.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 February 2, 2021, Brookfield Property REIT Inc. (the “Company”) disclosed the following financial information:

 

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

 

Brookfield Property REIT Inc.

 

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

  December 31, 2020  December 31, 2019 
       
  (Dollars in thousands, except share and per share amounts) 
Assets:      
Investment in real estate:        
Land $3,620,513  $3,659,595 
Buildings and equipment  13,967,411   14,020,589 
Less accumulated depreciation  (2,968,064)  (2,569,911)
Construction in progress  256,510   160,443 
Net property and equipment  14,876,370   15,270,716 
Investment in Unconsolidated Real Estate Affiliates  4,342,298   4,634,292 
Net investment in real estate  19,218,668   19,905,008 
Cash and cash equivalents  204,541   197,829 
Accounts receivable, net  524,982   234,928 
Notes receivable  45,553   76,310 
Deferred expenses, net  158,739   188,591 
Prepaid expenses and other assets  827,793   745,060 
Deferred tax assets, net  655,060   625,660 
Assets held for disposition  242,404    
Total assets $21,877,740  $21,973,386 
Liabilities:        
Mortgages, notes and loans payable $16,114,586  $15,902,894 
Investment in Unconsolidated Real Estate Affiliates  151,095   125,565 
Accounts payable and accrued expenses  993,685   1,027,130 
Dividend payable  903   21 
Junior subordinated notes  206,200   206,200 
Liabilities held for disposition  263,141    
Total liabilities  17,729,610   17,261,810 
Redeemable equity interests  839,143   1,354,234 
Redeemable noncontrolling interests  60,826   62,235 
Total redeemable interests  899,969   1,416,469 
Equity:        
Total stockholders' equity  1,841,218   1,762,367 
Noncontrolling interests  1,406,943   1,532,740 
Total equity  3,248,161   3,295,107 
Total liabilities, redeemable interests and equity $21,877,740  $21,973,386 

 

 

 

 

The following is the Company’s income statement for the years ended December 31, 2020, December 31, 2019 and December 31, 2018.

 

Brookfield Property REIT Inc.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

  Year ended December 31, 
  2020  2019  2018 
          
  (Dollars in thousands, except per share amounts) 
Revenues:         
Rental revenues, net $1,355,858  $1,337,684  $1,867,980 
Management fees and other corporate revenues  125,107   166,505   125,776 
Other  48,558   59,779   70,278 
Total revenues  1,529,523   1,563,968   2,064,034 
Operating Expenses:            
Real estate taxes  192,726   171,072   221,175 
Property maintenance costs  31,728   32,032   41,637 
Marketing  6,713   5,945   7,787 
Other property operating costs  185,524   179,278   253,210 
Provision for doubtful accounts        12,102 
Property management and other costs  231,047   229,150   172,554 
General and administrative  24,487   22,452   46,441 
Costs related to the BPY Transaction     9,179   202,523 
Provision for impairment  133,671   223,142   45,866 
Depreciation and amortization  643,166   501,636   633,063 
Total operating expenses  1,449,062   1,373,886   1,636,358 
Interest and dividend income  8,138   25,792   33,710 
Interest expense  (693,656)  (678,460)  (576,700)
(Loss) gain from changes in control of investment properties and other, net  (15,433)  720,706   3,097,196 
Gain (loss) on extinguishment of debt  14,320   (27,542)  13,983 
(Loss) income before income taxes, equity in (loss) income of Unconsolidated Real Estate Affiliates and related gain on investment, and allocation to noncontrolling interests  (606,170)  230,578   2,995,865 
Benefit from (provision for) income taxes  35,367   (9,683)  594,186 
Equity in (loss) income of Unconsolidated Real Estate Affiliates  (181,273)  19,586   86,552 
Unconsolidated Real Estate Affiliates - (loss) gain on investment, net  (51,800)  240,430   487,166 
Net (loss) income  (803,876)  480,911   4,163,769 
Allocation to noncontrolling interests  90,347   (48,031)  (73,228)
Net (loss) income attributable to Brookfield Property REIT Inc. $(713,529) $432,880   4,090,541 

 

 

 

 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On January 29, 2021, Ric Clark resigned as Chairman and as a member of the Board of Directors of the Company. Mr. Clark’s resignation was not due to any disagreement between Mr. Clark and the Company on any matters relating to the Company’s operations, practices or policies.

 

 

 

 

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.
  
February 2, 2021By:/s/ Michelle Campbell
 Name:Michelle Campbell
 Title:Secretary