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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):
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, 2021 By: /s/ Michelle Campbell
  Name: Michelle Campbell
  Title: Secretary

 

 

 

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