{"id":2075,"date":"2021-02-22T20:00:06","date_gmt":"2021-02-23T02:00:06","guid":{"rendered":"https:\/\/1reason.com\/re\/brookfield-property-partners-reports-fourth-quarter-and-full-year-2020-results\/2075\/"},"modified":"2021-02-23T14:00:06","modified_gmt":"2021-02-23T20:00:06","slug":"brookfield-property-partners-reports-fourth-quarter-and-full-year-2020-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/brookfield-property-partners-reports-fourth-quarter-and-full-year-2020-results\/2075\/","title":{"rendered":"Brookfield Property Partners Reports Fourth Quarter and Full-Year 2020 Results"},"content":{"rendered":"
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\u201cWe were encouraged by a noticeable increase in private market activity in the fourth quarter, as we closed on several sizable asset sales, including One London Wall Place and our self-storage business, executed at premiums to both our current and pre-pandemic carrying values,\u201d said Brian Kingston, Chief Executive Officer. “Our office operations have continued to perform well, and we were pleased by the resilience of our retail portfolio leading up to and through the holiday shopping season.” <\/p>\n

Financial Results<\/strong><\/p>\n

Company FFO (CFFO) was $167 million for the quarter ended December 31, 2020, compared to $379 million in the prior-year period. Company FFO was $815 million for the year ended December 31, 2020, compared to $1.35 billion in 2019. CFFO was impacted over the course of the year by the effects of the global economic slowdown during much of 2020.<\/p>\n

Net income for the quarter ended December 31, 2020 was a loss of $38million or $0.40 per LP unit compared to a gain of $1.55 billion or $1.00 per LP unit for the same period in 2019. The prior year period benefited from higher valuation gains in our Canada and UK office portfolios, as well as strong performance in several of our LP investments. Net income for the year ended December 31, 2020 was a loss of $2.06 billion or $2.39 per LP unit compared to a gain of $3.16 billion or $1.89 per LP unit in 2019. The decrease this year is primarily attributable to unrealized reductions of values of certain assets within the portfolio.<\/p>\n\n\n\n\n\n\n\n\n
\nThree months ended Dec. 31,<\/em><\/td>\nTwelve months ended Dec. 31,<\/em><\/td>\n<\/tr>\n
(US$ Millions, except per unit amounts)<\/td>\n\n2020<\/strong><\/td>\n\n\n\n2019<\/td>\n\n\n2020<\/strong><\/td>\n\n\n\n2019<\/td>\n<\/tr>\n
Net (loss) income(1)<\/sup><\/td>\n$<\/strong><\/td>\n(38<\/strong><\/td>\n)<\/strong><\/td>\n\n$<\/td>\n1,551<\/td>\n\n$<\/strong><\/td>\n(2,058<\/strong><\/td>\n)<\/strong><\/td>\n\n$<\/td>\n3,157<\/td>\n<\/tr>\n
Company FFO and realized gains(2)<\/sup><\/td>\n$<\/strong><\/td>\n287<\/strong><\/td>\n\n\n$<\/td>\n459<\/td>\n\n$<\/strong><\/td>\n952<\/strong><\/td>\n\n\n$<\/td>\n1,512<\/td>\n<\/tr>\n
Company FFO(2)<\/sup><\/td>\n$<\/strong><\/td>\n167<\/strong><\/td>\n\n\n$<\/td>\n379<\/td>\n\n$<\/strong><\/td>\n815<\/strong><\/td>\n\n\n$<\/td>\n1,345<\/td>\n<\/tr>\n
Net (loss) income per LP unit(3)(4)<\/sup><\/td>\n$<\/strong><\/td>\n(0.40<\/strong><\/td>\n)<\/strong><\/td>\n\n$<\/td>\n1.00<\/td>\n\n$<\/strong><\/td>\n(2.39<\/strong><\/td>\n)<\/strong><\/td>\n\n$<\/td>\n1.89<\/td>\n<\/tr>\n
Company FFO and realized gains per unit(4)(5)<\/sup><\/td>\n$<\/strong><\/td>\n0.30<\/strong><\/td>\n\n\n$<\/td>\n0.48<\/td>\n\n$<\/strong><\/td>\n0.97<\/strong><\/td>\n\n\n$<\/td>\n1.57<\/td>\n<\/tr>\n<\/table>\n

<\/p>\n\n\n\n\n\n\n
(1)<\/td>\nConsolidated basis \u2013 includes amounts attributable to non-controlling interests.<\/td>\n<\/tr>\n
(2)<\/td>\nSee “Basis of Presentation” and \u201cReconciliation of Non-IFRS Measures\u201d in this press release for the definition and components.<\/td>\n<\/tr>\n
(3)<\/td>\nRepresents basic net income attributable to holders of LP units. IFRS requires the inclusion of preferred shares that are mandatorily convertible into LP units at a price of $25.70 without an add-back to earnings of the associated carry on the preferred shares.<\/td>\n<\/tr>\n
(4)<\/td>\nNet income attributable to holders of LP units and Company FFO and realized gains per unit are reduced by preferred dividends of $11 million (2019 \u2013 $7 million) and $42 million (2019 \u2013 $15 million) for three and twelve months ended December 31, 2020, respectively, in determining per unit amounts.<\/td>\n<\/tr>\n
(5)<\/td>\nCompany FFO and realized gains per unit are calculated based on 927.3 million (2019 \u2013 947.2 million) and 934.9 million (2019 \u2013 955.0 million) units outstanding for the three and twelve months ended December 31, 2020, respectively.<\/td>\n<\/tr>\n<\/table>\n


<\/strong><\/p>\n

Operating Highlights<\/strong><\/p>\n

Our Core Office business generated CFFO of $138 million for the quarter ended December 31, 2020 compared to $185 million in the same period in 2019 and $540 million for the year ended December 31, 2020 compared to $662 million on a comparable basis in 2019. Results this quarter were mainly impacted by reduced contributions from our parking and retail operations. Results in the prior-year period included incremental transaction income of $25 million.<\/p>\n

Core Office leasing activity in the fourth quarter totaled 870,000 square feet, which were completed at rents 16% higher on average than expiring leases in the period. Occupancy in the portfolio decreased 90 basis points to 89.8%, with a remaining weighted average lease term of 8.2 years.<\/p>\n

Our Core Retail business generated CFFO of $118 million for the quarter ended December 31, 2020 compared to $217 million in the comparable period in 2019 and $550 million for the year ended December 31, 2020 compared to $772 million in 2019. The quarterly and yearly declines are primarily attributable to the impact of the global economic slowdown during much of 2020.<\/p>\n

Our Core Retail operations leased approximately 6.3 million square feet over the past 12 months with comparable rent spreads of 1%. Our properties were 92.5% leased at December 31, 2020, a decrease of 90 basis points from the prior period. On a year-over-year basis, in-place rents were up 0.7%1<\/sup>.<\/p>\n

Our LP Investments generated CFFO and realized gains of $138 million for the quarter ended December 31, 2020, compared to earnings of $150 million in the comparable period in 2019 and $232 million for the year ended December 31, 2020 compared to $476 million in 2019. Results this quarter were negatively impacted by a $51 million decrease in earnings from our Hospitality investments due to pandemic-related hotel closures and travel restrictions, offset in part by a $40 million increase in realized gains related to the sales of mature assets.<\/p>\n

______________________________
1<\/sup> In-place rents reflect retail tenants <10K square feet.<\/p>\n\n\n\n\n\n\n\n\n\n
\nThree months ended Dec. 31,<\/em><\/td>\nTwelve months ended Dec. 31,<\/em><\/td>\n<\/tr>\n
(US$ Millions)<\/td>\n\n2020<\/strong><\/td>\n\n\n2019<\/td>\n\n\n2020<\/strong><\/td>\n\n\n2019<\/td>\n<\/tr>\n
Company FFO and realized gains:<\/td>\n\n\n\n<\/tr>\n
Core Office<\/td>\n$<\/strong><\/td>\n138<\/strong><\/td>\n\n$<\/td>\n185<\/td>\n\n$<\/strong><\/td>\n540<\/strong><\/td>\n\n$<\/td>\n662<\/td>\n<\/tr>\n
Core Retail<\/td>\n$<\/strong><\/td>\n118<\/strong><\/td>\n\n$<\/td>\n217<\/td>\n\n$<\/strong><\/td>\n550<\/strong><\/td>\n\n$<\/td>\n772<\/td>\n<\/tr>\n
LP Investments<\/td>\n$<\/strong><\/td>\n138<\/strong><\/td>\n\n$<\/td>\n150<\/td>\n\n$<\/strong><\/td>\n232<\/strong><\/td>\n\n$<\/td>\n476<\/td>\n<\/tr>\n
Corporate<\/td>\n$<\/strong><\/td>\n(107<\/strong><\/td>\n)<\/strong><\/td>\n$<\/td>\n(93<\/td>\n)<\/td>\n$<\/strong><\/td>\n(370<\/strong><\/td>\n)<\/strong><\/td>\n$<\/td>\n(398<\/td>\n)<\/td>\n<\/tr>\n
Company FFO and realized gains(1)<\/sup><\/td>\n$<\/strong><\/td>\n287<\/strong><\/td>\n\n$<\/td>\n459<\/td>\n\n$<\/strong><\/td>\n952<\/strong><\/td>\n\n$<\/td>\n1,512<\/td>\n<\/tr>\n<\/table>\n

(1) See “Basis of Presentation” and “Reconciliation of Non-IFRS Measures” below in this press release for the definitions and components.<\/p>\n


<\/strong><\/p>\n

Dispositions <\/strong><\/p>\n

In the fourth quarter, we completed $1.37 billion of gross asset dispositions at our share, at prices that were 10% higher on average than our IFRS carrying values. These sales generated approximately $530 million in net proceeds to BPY. <\/p>\n

Dispositions completed in the fourth quarter include:<\/p>\n