{"id":2873,"date":"2021-05-30T22:42:09","date_gmt":"2021-05-31T03:42:09","guid":{"rendered":"https:\/\/1reason.com\/re\/brookfield-property-partners-reports-first-quarter-2021-results\/2873\/"},"modified":"2021-05-31T17:42:09","modified_gmt":"2021-05-31T22:42:09","slug":"brookfield-property-partners-reports-first-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/brookfield-property-partners-reports-first-quarter-2021-results\/2873\/","title":{"rendered":"Brookfield Property Partners Reports First Quarter 2021 Results"},"content":{"rendered":"
<\/p>\n

\u201cWhile we continue to experience challenges in certain of our operations and markets due to the ongoing consequences of the pandemic and global economic slowdown, we remain encouraged by a recovery in activity in select sectors within our business,\u201d said Brian Kingston, CEO of Brookfield Property Partners.<\/p>\n

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

Net income for the quarter ended March 31, 2021 was $731million or $0.25 per LP unit compared to a loss of $373million or $(0.49) per LP unit for the same period in 2020. This quarter benefited from gains in our office portfolio and LP investments.<\/p>\n

Company FFO (CFFO) was $125 million for the quarter ended March 31, 2021, compared to $309 million in the prior-year period. The prior year period benefited from higher transaction income, and CFFO was largely impacted this quarter by residual effects of the economic slowdown on our retail and hospitality operations.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\nThree months ended Mar. 31,<\/em><\/td>\n<\/tr>\n
(US$ Millions, except per unit amounts)<\/td>\n\n\n2021<\/strong><\/td>\n\n\n2020<\/td>\n<\/tr>\n
Net income (loss)(1)<\/sup><\/td>\n\n$<\/strong><\/td>\n731<\/strong><\/td>\n\n$<\/td>\n(373<\/td>\n)<\/td>\n<\/tr>\n
Company FFO and realized gains(2)<\/sup><\/td>\n\n$<\/strong><\/td>\n311<\/strong><\/td>\n\n$<\/td>\n323<\/td>\n<\/tr>\n
Company FFO(2)<\/sup><\/td>\n\n$<\/strong><\/td>\n125<\/strong><\/td>\n\n$<\/td>\n309<\/td>\n<\/tr>\n
Net income (loss) per LP unit(3)(4)<\/sup><\/td>\n\n$<\/strong><\/td>\n0.25<\/strong><\/td>\n\n$<\/td>\n(0.49<\/td>\n)<\/td>\n<\/tr>\n
Company FFO and realized gains per unit(4)(5)<\/sup><\/td>\n\n$<\/strong><\/td>\n0.32<\/strong><\/td>\n\n$<\/td>\n0.33<\/td>\n<\/tr>\n
(1)Consolidated basis \u2013 includes amounts attributable to non-controlling interests.<\/td>\n<\/tr>\n
(2)See “Basis of Presentation” and \u201cReconciliation of Non-IFRS Measures\u201d in this press release for the definition and components.<\/td>\n<\/tr>\n
(3)Represents 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)Net income attributable to holders of LP units and Company FFO and realized gains per unit are reduced by preferred dividends of $11 million (2020 \u2013 $9 million) for three months ended March 31, 2021, in determining per unit amounts.<\/td>\n<\/tr>\n
(5)Company FFO and realized gains per unit are calculated based on 935.7 million (2020 \u2013 943.5 million) units outstanding for the three months ended March 31, 2021.<\/td>\n<\/tr>\n
<\/tr>\n
<\/tr>\n
<\/tr>\n<\/table>\n

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

Our Core Office business generated CFFO of $140 million for the quarter ended March 31, 2021 compared to $135 million in the same period in 2020. Results this quarter benefited from incremental condominium sales income and lower interest expense, offset in part by lower parking revenue and portfolio occupancy. <\/p>\n

Core Office leasing activity in the first quarter totaled 894,000 square feet, which were completed at rents significantly higher than expiring leases in the period. Occupancy in the portfolio decreased 120 basis points to 88.8%, with a remaining weighted average lease term of 8.6 years.<\/p>\n

Our Core Retail business generated CFFO of $108 million for the quarter ended March 31, 2021 compared to $195 million in the comparable period in 2020. The prior year period benefited from $30 million in transaction income from the sale of investment positions, and results this quarter were impacted most notably by lower occupancy.<\/p>\n

Our Core Retail operations leased approximately 5.9 million square feet over the past 12 months with initial rents that were consistent with expiring rents. Our properties were 91.5% leased at March 31, 2021, a decrease of 100 basis points from the prior period. On a year-over-year basis, in-place rents were up 2.5%1<\/sup>.<\/p>\n

Our LP Investments generated CFFO and realized gains of $188 million for the quarter ended March 31, 2021, compared to earnings of $76 million in the comparable period in 2020. Results this quarter benefited from realized gains from the sale of mature and stable assets, as well as the disposition of a non-property investment position. CFFO was negatively impacted from continued pressure on our hospitality assets due to the global economic slowdown. <\/p>\n\n\n\n\n\n\n\n\n\n
\n\nThree months ended Mar. 31,<\/em><\/td>\n<\/tr>\n
(US$ Millions)<\/td>\n2021<\/strong>
<\/strong><\/td>\n		\n\n2020<\/td>\n<\/tr>\n
Company FFO and realized gains:<\/td>\n\n<\/tr>\n
Core Office<\/td>\n\n$<\/strong><\/td>\n140<\/strong><\/td>\n\n\n$<\/td>\n135<\/td>\n<\/tr>\n
Core Retail<\/td>\n$<\/strong><\/td>\n108<\/strong><\/td>\n\n\n$<\/td>\n195<\/td>\n<\/tr>\n
LP Investments<\/td>\n$<\/strong><\/td>\n188<\/strong><\/td>\n\n\n$<\/td>\n76<\/td>\n<\/tr>\n
Corporate<\/td>\n$<\/strong><\/td>\n(125<\/strong><\/td>\n)<\/strong><\/td>\n\n$<\/td>\n(83<\/td>\n)<\/td>\n<\/tr>\n
Company FFO and realized gains(1)<\/sup><\/td>\n$<\/strong><\/td>\n311<\/strong><\/td>\n\n\n$<\/td>\n323<\/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

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

In the first quarter, we completed $1.1 billion of gross asset dispositions at our share, at prices that were in aggregate significantly higher than our IFRS carrying values. These sales generated approximately $244 million in net proceeds to BPY. <\/p>\n

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