UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM
_________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
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Securities registered pursuant to Section 12(b) of the Act:
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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
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| Item 2.02. | Results of Operations and Financial Condition. |
On February 5, 2020, Brookfield Property REIT Inc. (the “Company”) disclosed the following financial information:
The following is the Company’s balance sheet as at December 31, 2019 and December 31, 2018.
Brookfield Property REIT Inc.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| December 31, 2019 | December 31, 2018 | |||||||
| (Dollars in thousands, except share and per share amounts) | ||||||||
| Assets: | ||||||||
| Investment in real estate: | ||||||||
| Land | $ | 3,659,595 | $ | 2,706,701 | ||||
| Buildings and equipment | 14,020,589 | 10,774,079 | ||||||
| Less accumulated depreciation | (2,569,911 | ) | (2,214,603 | ) | ||||
| Construction in progress | 160,443 | 576,695 | ||||||
| Net property and equipment | 15,270,716 | 11,842,872 | ||||||
| Investment in Unconsolidated Real Estate Affiliates | 4,634,292 | 5,385,582 | ||||||
| Net investment in real estate | 19,905,008 | 17,228,454 | ||||||
| Cash and cash equivalents | 197,829 | 247,019 | ||||||
| Accounts receivable, net | 234,928 | 222,562 | ||||||
| Notes receivable | 76,310 | 256,937 | ||||||
| Deferred expenses, net | 188,591 | 145,631 | ||||||
| Prepaid expenses and other assets | 745,060 | 313,648 | ||||||
| Deferred tax assets, net | 625,660 | 619,275 | ||||||
| Total assets | $ | 21,973,386 | $ | 19,033,526 | ||||
| Liabilities: | ||||||||
| Mortgages, notes and loans payable | $ | 15,902,894 | $ | 12,589,649 | ||||
| Investment in Unconsolidated Real Estate Affiliates | 125,565 | 124,627 | ||||||
| Accounts payable and accrued expenses | 1,027,130 | 953,369 | ||||||
| Dividend payable | 21 | 4,668 | ||||||
| Junior subordinated notes | 206,200 | 206,200 | ||||||
| Total liabilities | 17,261,810 | 13,878,513 | ||||||
| Redeemable equity interests | 1,354,234 | 2,305,895 | ||||||
| Redeemable noncontrolling interests | 62,235 | 73,696 | ||||||
| Total redeemable interests | 1,416,469 | 2,379,591 | ||||||
| Equity: | ||||||||
| Total stockholders' equity | 1,762,367 | 1,221,826 | ||||||
| Noncontrolling interests | 1,532,740 | 1,553,596 | ||||||
| Total equity | 3,295,107 | 2,775,422 | ||||||
| Total liabilities, redeemable interests and equity | $ | 21,973,386 | $ | 19,033,526 | ||||
The following is the Company’s income statement for the years ended December 31, 2019, December 31, 2018 and December 31, 2017.
Brookfield Property REIT Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| Year ended December 31, | ||||||||||||
| 2019 | 2018 | 2017 | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Revenues: | ||||||||||||
| Rental revenues, net | $ | 1,337,684 | $ | 1,867,980 | $ | 2,133,520 | ||||||
| Management fees and other corporate revenues | 166,505 | 125,776 | 105,144 | |||||||||
| Other | 59,779 | 70,278 | 89,198 | |||||||||
| Total revenues | 1,563,968 | 2,064,034 | 2,327,862 | |||||||||
| Expenses: | ||||||||||||
| Real estate taxes | 171,072 | 221,175 | 237,198 | |||||||||
| Property maintenance costs | 32,032 | 41,637 | 49,784 | |||||||||
| Marketing | 5,945 | 7,787 | 11,043 | |||||||||
| Other property operating costs | 179,278 | 253,210 | 286,168 | |||||||||
| Provision for doubtful accounts | — | 12,102 | 10,701 | |||||||||
| Property management and other costs | 229,150 | 172,554 | 145,251 | |||||||||
| General and administrative | 22,452 | 46,441 | 56,133 | |||||||||
| Costs related to the BPY Transaction | 9,179 | 202,523 | — | |||||||||
| Provision for impairment | 223,142 | 45,866 | — | |||||||||
| Depreciation and amortization | 501,636 | 633,063 | 693,327 | |||||||||
| Total expenses | 1,373,886 | 1,636,358 | 1,489,605 | |||||||||
| Interest and dividend income | 25,792 | 33,710 | 61,566 | |||||||||
| Interest expense | (678,460 | ) | (576,700 | ) | (541,945 | ) | ||||||
| Loss on foreign currency | — | — | (819 | ) | ||||||||
| Gains from changes in control of investment properties and other, net | 720,706 | 3,097,196 | 79,056 | |||||||||
| (Loss) gain on extinguishment of debt | (27,542 | ) | 13,983 | 55,112 | ||||||||
| Income before income taxes, equity in income of Unconsolidated Real Estate Affiliates and related gain on investment, and allocation to noncontrolling interests | 230,578 | 2,995,865 | 491,227 | |||||||||
| (Provision for) benefit from income taxes | (9,683 | ) | 594,186 | 10,896 | ||||||||
| Equity in income of Unconsolidated Real Estate Affiliates | 19,586 | 86,552 | 152,750 | |||||||||
| Unconsolidated Real Estate Affiliates - gain on investment, net | 240,430 | 487,166 | 12,000 | |||||||||
| Net income | 480,911 | 4,163,769 | 666,873 | |||||||||
| Allocation to noncontrolling interests | (48,031 | ) | (73,228 | ) | (9,539 | ) | ||||||
| Net income attributable to Brookfield Property REIT Inc. | $ | 432,880 | $ | 4,090,541 | 657,334 | |||||||
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 5, 2020 | By: | /s/ Michelle Campbell |
| Name: | Michelle Campbell | |
| Title: | Secretary | |