BPY - Supplemental 2020-Q3/media/Files/B/Brookfield-BPY... · 2020. 11. 11. · Oakbrook Mall in...

Q3 2020 SupplementalInformation

N i n e M o n t h s E n d e d S e p t e m b e r 3 0 , 2 0 2 0

B R O O K F I E L D P R O P E R T Y P A R T N E R S L . P .

1

FORWARD-LOOKING STATEMENTS

This supplemental information package contains “forward-looking information” within the meaning of applicable securities laws and regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding our operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “likely”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: risks incidental to the ownership and operation of real estate properties including local real estate conditions; the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business, including as a result of the recent global economic shutdown caused by a strain of novel coronavirus ("COVID-19"); the ability to enter into new leases or renew leases on favourable terms; business competition; dependence on tenants’ financial condition; the use of debt to finance our business; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates; uncertainties of real estate development or redevelopment; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; risks relating to our insurance coverage; the possible impact of international conflicts and other developments including terrorist acts; potential environmental liabilities; changes in tax laws and other tax related risks; dependence on management personnel; illiquidity of investments; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits therefrom; operational and reputational risks; catastrophic events, such as earthquakes, hurricanes or pandemics/epidemics; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States, as applicable. In addition, our future results may be impacted by risks associated with the global economic shutdown, and the related global reduction in commerce and travel and substantial volatility in stock markets worldwide, which may result in a decrease of cash flows and impairment losses and/or revaluations on our investments and real estate properties, and we may be unable to achieve our expected returns.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements or information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS ACCOUNTING MEASURESThis supplemental information package makes reference to net operating income ("NOI"), same-property NOI, and funds from operations ("FFO") and Company FFO (“Company FFO") on a total and per unit basis. These terms do not have any standardized meaning prescribed by International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and therefore may not be comparable to similar measures presented by other companies. Brookfield Property Partners L.P. ("BPY" or the "partnership") defines NOI as revenues from commercial and hospitality operations of consolidated properties less direct property expenses. Same-property NOI is a subset of NOI, which excludes NOI that is earned from assets acquired, disposed of or developed during the periods presented, or not of a recurring nature, and from opportunistic assets. Our definition of FFO includes all of the adjustments that are outlined in the National Association of Real Estate Investment Trusts ("NAREIT") definition of funds from operations, including the exclusion of gains (or losses) from the sale of investment property, the add back of any depreciation and amortization related to real estate assets and the adjustment to reflect our interest in unconsolidated partnerships and joint ventures. In addition to the adjustments prescribed by NAREIT, we also make adjustments to exclude any unrealized fair value gains (or losses) that arise as a result of reporting under IFRS, except gains (or losses) associated with properties developed for sale, and income taxes that arise as certain of our subsidiaries are structured as corporations as opposed to real estate investment trusts ("REIT"). These additional adjustments result in an FFO measure that is similar to that which would result if the partnership was organized as a REIT that determined net income in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), which is the type of organization on which the NAREIT definition is premised. Our FFO measure will differ from other organizations applying the NAREIT definition to the extent of certain differences between the IFRS and U.S. GAAP reporting frameworks, principally related to the recognition of lease termination income, which do not have a significant impact on the FFO measure reported. The partnership uses NOI and FFO to assess its operating results. NOI is important in assessing operating performance and FFO is a widely used measure to analyze real estate. The partnership reconciles FFO to net income attributable to Unitholders (see the glossary of terms for definition) as opposed to cashflow from operating activities as it believes net income attributable to Unitholders is the most comparable measure. Company FFO is defined as FFO before the impact of depreciation and amortization of non-real estate assets, transaction costs, gains (losses) associated with non-investment properties, imputed interest on equity accounted investments and the partnership's share of BSREP III Company FFO. Distributions from BSREP III, recorded as dividend income under IFRS, are removed from investment and other income for Company FFO presentation. Refer to the last page of this supplemental package for certain definitions.

In calculating net income attributable to Unitholders per unit, the partnership excludes the impact of mandatorily convertible preferred shares in determining the average number of units outstanding as the holders of mandatorily convertible preferred shares do not participate in current earnings. The partnership reconciles this measure to basic net income attributable to Unitholders per unit determined in accordance with IFRS which includes the effect of mandatorily convertible preferred shares in the basic average number of units outstanding.

2

TABLE OF CONTENTS

Page PageSummary of Results Same-Property Net Operating Income 22

Financial Overview 3 Historical Occupancy and Rent Metrics 23 Diversified Investment Strategy 4 Proportionate Leasing Activity 24 Core Office 5 Proportionate Lease Expiry Analysis 25 Core Retail 6 Development Sites 26 LP Investments 7 Core Retail

Consolidated Overview Net Operating Income and Key Performance Metrics 27 Proportionate Results from Operations by Segment 8 Signed Leases and Lease Expiry Analysis 28 Proportionate Financial Position by Segment 10 Redevelopment Sites 29 Proportionate Fair Value Continuity 11 LP InvestmentsProportionate Summary Cash Flow Information and Liquidity 13 Summary of Investments 30 Proportionate Debt Summary 14 BSREP Series 32 Proportionate Capital Securities 15 CorporateProportionate Preferred Equity 16 Foreign Currency Exposure 33 Per Unit Calculations 17 Management Fee and Incentive Distribution 34 Unit Information 19 Appendix A: Results from Operations 35

Operating Statistics Appendix B: Financial Position 36 Core Office Appendix C: Company FFO Reconciliation 37

Net Operating Income 21 Appendix D: Acquisition and Disposition Activity 38 Glossary of Terms 39

Note: Core Portfolio Additional Information will be posted on November 9, 2020 and includes our core office and core retail portfolio listings, debt details and top tenants

3

Summary of ResultsFINANCIAL OVERVIEW

Current Quarter Highlights

Company FFO and realized LP Investment gains (1)(2) Net income attributable to Unitholders

Invested capital Quarter-to-date Year-to-date Quarter-to-date Year-to-date

(US$ Millions) Sep. 30, 2020 Dec. 31, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019Office $ 13,867 $ 14,240 $ 141 $ 150 $ 402 $ 477 $ 108 $ 211 $ 16 $ 904 Retail 12,915 14,138 97 201 432 555 (248) 296 (1,466) 398 Core Operations 26,782 28,378 238 351 834 1,032 (140) 507 (1,450) 1,302 LP Investments 4,973 5,126 26 74 94 326 (5) 162 (134) 41 Corporate (6,466) (4,974) (100) (101) (263) (305) (84) (195) (384) (409) Unitholder equity $ 25,289 $ 28,530 $ 164 $ 324 $ 665 $ 1,053 $ (229) $ 474 $ (1,968) $ 934

Per Unit MetricsQuarter-to-date Year-to-date

(US$) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019Company FFO and realized LP Investment gains per unit(2)(3)(4) $ 0.16 $ 0.34 $ 0.68 $ 1.09 Company FFO per unit(3)(4) 0.16 0.34 0.66 1.00 Net income per unit(3)(4) (0.26) 0.49 (2.13) 0.97 Distributions per unit(3) 0.33 0.33 1.00 0.99 Unitholder equity per unit(5) $ 26.80 $ 28.61

Payout RatioLast twelve months ending

(US$) Sep. 30, 2020 Dec. 31, 2019 Dec. 31, 2018Company FFO per unit(3)(4) $ 1.05 $ 1.39 $ 1.48 Realized LP Investment gains per unit(2)(3) 0.09 0.18 0.49 Annual Earnings 1.14 1.57 1.97 Distributions per unit (1.33) (1.32) (1.26) Retained for property maintenance and growth per unit (0.19) 0.25 0.71 Payout Ratio 117 % 84 % 64 %(1) A reconciliation of FFO to Company FFO and realized LP Investment gains is included on page 8 and 9(2) Realized gains for LP investment properties sold during the quarter represent difference between transaction price and invested capital. These gains have previously been recognized in earnings through fair value gains, net. These gains are presented net of carried interest and other transaction costs(3) Per unit calculations are based on the basic number of units outstanding and detailed on page 17 and 18(4) Company FFO and realized LP Investment gains per unit, Company FFO per unit, and Net income per unit are reduced by preferred share dividends paid(5) Assumes conversion of mandatorily convertible preferred shares. Refer to page 17 for further detail

4

Summary of ResultsDIVERSIFIED INVESTMENT STRATEGY

Core Operations

▪ Our core business represents approximately 85% of our balance sheet and consists of:◦ 136 premier office properties totaling over 96 million square feet in gateway markets including New

York City, London, Toronto, Los Angeles, Washington D.C. and Berlin◦ 122 best-in-class retail properties totaling 120 million square feet throughout the United States including

730 Fifth Avenue in New York City, Ala Moana Center in Honolulu, Fashion Show Mall in Las Vegas, Oakbrook Mall in Chicago, Stonestown Galleria in San Francisco, Willowbrook Mall in New Jersey and Staten Island Mall in New York

◦ Approximately 8 million square feet of development projects underway▪ Our core business strategy is to invest in high-quality, well-located trophy assets maintaining high occupancy and providing stable earnings; and to periodically recycle capital out of these stable assets to reinvest into development, redevelopment and densification opportunities to create additional value

▪ High quality and global tenant base with limited tenant concentration

LP Investments

▪ Our LP investments represent approximately 15% of our balance sheet and consists of investments in various funds targeting a specific return profile including:

◦ BSREP I: A 31% interest in a $4.4B real estate fund targeting opportunistic returns; the fund is in its 9th year, is fully invested and is executing realizations

◦ BSREP II: A 26% interest in a $9.0B real estate fund targeting opportunistic returns; the fund is in its 6th year and is fully invested

◦ BSREP III: A 7% interest in a $15.0B real estate fund targeting opportunistic returns; the fund is in its 3rd year

◦ A blended 36% interest in two multifamily funds totaling $1.8B targeting value-add returns◦ A blended 13% interest in a series of real estate debt funds totaling $5.4B

▪ Our LP investment business strategy is to acquire high quality assets at a discount to replacement cost or intrinsic value, to execute clearly defined strategies for operational improvement and to achieve opportunistic returns through NOI growth and realized gains on exit

5

Highlights

▪ Leased 299K square feet on a proportionate basis (644K square feet on an AUM basis) during the quarter at average net rents of $36.93 per square foot. Refer to page 24 for leasing details. We ended the quarter with occupancy at 90.7%, down from 92.3% due mainly to known expiries in the Calgary and Houston markets.

▪ The Core Office business generated Company FFO of $141M in the third quarter of 2020, compared to $150M in the same period in 2019. The prior year included a performance fee earned of $13M. The decrease was also driven by a decline a same-store NOI and a reduction in leasing and development fees resulting from the global economic shutdown. These decreases were partially offset by income from the delivery of condominiums in London.

▪ Company FFO increased by $15M as compared to the second quarter of 2020, driven by incremental condominium deliveries in London and an $11M increase to NOI, primarily due to same-property NOI growth in our US portfolio.

▪ Net income of $108M includes unrealized property-level fair value gains of $5M.

CORE OFFICE

Key Financial MetricsQuarter-to-date Year-to-date

(US$ Millions) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019NOI $ 322 $ 316 $ 966 $ 960 Fee revenue 29 41 86 129 Company FFO 141 150 402 477 Net income (loss) attributable to Unitholders

108 211 16 904

Key Operational HighlightsQuarter-to-date Year-to-date

Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019

Operating margin 60.3 % 60.4 % 60.5 % 60.4 %Same property growth (3.1) % 0.6 % (2.8) % 0.4 %Same property growth in natural currency (3.9) % 2.5 % (1.9) % 3.2 %Occupancy 90.7 % 92.3 %Same property occupancy 91.8 % 92.3 %

Proportionate Financial Position(US$ Millions) Sep. 30, 2020 Dec. 31, 2019Investment properties $ 34,185 $ 34,406 Total assets 37,949 37,783 Debt obligations 18,276 17,716 Total liabilities 21,758 21,218 Total equity 16,191 16,565

Summary of Results

6

CORE RETAIL

Highlights

▪ As of September 30, 2020, our same-property portfolio was 93.4% leased, with 6.5M square feet of leases commencing over the prior twelve months. Lease rates on these commencements were 4.5% higher than expiring rents on a suite-to-suite basis. This compares to 95.0% leased for the same period in the prior year.

▪ The Core Retail business generated Company FFO of $97M in the third quarter of 2020, compared to $173M on a comparable basis in 2019, and $201M in total when including $28M in transaction income in the prior year. The decrease was driven by an increase in credit loss reserves, bankruptcy and co-tenant claims, lower revenues from temporary tenants, overage and percentage-in-lieu tenants, and severance costs, all impacted by the global economic shutdown. These decreases were partially offset by lower interest expense.

▪ Compared to the prior quarter, Company FFO decreased by $43M primarily due to an increase in credit loss reserves on certain tenant receivable balances and higher operating costs incurred during the current quarter as our malls re-opened in July.

▪ Net loss of $248M was due to unrealized property-level fair valuation losses of $322M due to increased risk on forecasted cashflows for certain of our lower productivity malls.


(US$ Millions) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019NOI $ 349 $ 422 $ 1,168 $ 1,270 Fee revenue 25 37 79 106 Company FFO 97 201 432 555 Net (loss) income attributable to Unitholders

(248) 296 (1,466) 398

Key Operational HighlightsQuarter-to-date Year-to-date

Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019

Operating margin 62.5 % 73.1 % 68.6 % 73.3 %Same property growth (18.6) % — % (10.8) % 0.2 %Leased 93.4 % 95.0 %Same property leased 93.4 % 95.0 %

Proportionate Financial Position(US$ Millions) Sep. 30, 2020 Dec. 31, 2019Investment properties $ 33,723 $ 35,146 Total assets 35,393 36,403 Debt obligations 21,103 20,928 Total liabilities 22,003 21,763 Total equity 13,390 14,640

Summary of Results

7

Highlights

▪ The LP Investments business generated Company FFO of $26M in the third quarter of 2020, compared to $74M in the prior year. Our hospitality portfolio remains the most impacted sector by the global economic shutdown with Company FFO down $48M compared with the same period in the prior year due to low occupancies and closures. In addition, the prior year included $10M in transaction income from merchant-build sales.

▪ Company FFO and realized gains increased by $34M compared to the second quarter of 2020. The current quarter reflects improved results in our hospitality investments, most notably Center Parcs which returned to the maximum allowable occupancy (75%) after re-opening and accounted for $18M of the increase.

▪ Net loss of $5M includes unrealized property valuation losses of $7M primarily due to losses from our retail portfolio, partially offset by fair value gains in our Brazil office portfolio to reflect improved cashflows and valuation metrics.

LP INVESTMENTS


(US$ Millions) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019NOI $ 107 $ 175 $ 334 $ 542 Company FFO and realized LP Investment gains(1) 26 74 94 326

Net (loss) income attributable to Unitholders (5) 162 (134) 41

Proportionate Financial Position(US$ Millions) Sep. 30, 2020 Dec. 31, 2019Investment properties $ 8,549 $ 8,828 Property, plant and equipment 2,346 2,216 Total assets 14,270 14,042 Debt obligations 7,635 7,348 Total liabilities 9,157 8,782 Total equity 5,113 5,260 (1) Realized LP Investment gains are presented net of carried interest and other transaction costs

Summary of Results

LP Investment Snapshot(US$ Millions) Fund Fund Invested ProjectedFund Size Year Capital Net IRRBSREP I $ 4,400 9 $ 893 19 %BSREP II 9,000 6 2,653 12 %BSREP III 15,000 3 592 15 %VAMF Funds 1,800 5 202 17 %Debt Funds 5,400 7 306 8 %Other n/m n/m 327 n/m

8

Consolidated OverviewPROPORTIONATE RESULTS FROM OPERATIONS BY SEGMENT

Quarter-to-dateCore Operations

Office Retail LP Investments Corporate Total

(US$ Millions) Sep. 30, 2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Commercial property and hospitality revenue $ 534 $ 523 $ 558 $ 577 $ 211 $ 340 $ — $ — $ 1,303 $ 1,440 Commercial property and hospitality expense (212) (207) (209) (155) (104) (165) — — (525) (527) NOI 322 316 349 422 107 175 — — 778 913 Investment and other income 31 16 2 47 13 23 2 2 48 88 Fee revenue 29 41 25 37 1 1 — — 55 79 Interest expense (154) (148) (208) (256) (85) (106) (70) (61) (517) (571) Depreciation of non-real estate assets (3) (2) (6) (6) (4) (2) — — (13) (10) General and administrative expense (68) (63) (68) (68) (18) (21) (32) (43) (186) (195) Non-controlling interests (25) (30) (4) (7) (1) (5) (1) (1) (31) (43) FFO 132 130 90 169 13 65 (101) (103) 134 261 Depreciation of non-real estate assets 3 2 6 6 4 2 — — 13 10 Transaction costs 1 2 1 26 4 5 1 2 7 35 Gains/losses on non-investment properties — 1 — — — — — — — 1 Imputed interest 5 15 — — — — — — 5 15 BSREP III earnings — — — — 2 2 — — 2 2 Company FFO 141 150 97 201 23 74 (100) (101) 161 324 Company FFO and realized LP Investment gains(1) 141 150 97 201 26 74 (100) (101) 164 324

FFO 132 130 90 169 13 65 (101) (103) 134 261 Depreciation of real estate assets (1) (1) — — (21) (25) — — (22) (26) Fair value gains, net (16) 109 (328) 124 36 151 3 (62) (305) 322 Income taxes (7) (25) (10) (11) (24) (43) 14 (30) (27) (109) Non-controlling interests — (2) — 14 (9) 14 — — (9) 26 Net (loss) income attributable to Unitholders $ 108 $ 211 $ (248) $ 296 $ (5) $ 162 $ (84) $ (195) $ (229) $ 474 (1) Realized LP investment gains are presented net of carried interest and other transaction costs

9

Consolidated OverviewPROPORTIONATE RESULTS FROM OPERATIONS BY SEGMENT

Year-to-dateCore Operations


(US$ Millions)Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019Sep. 30,

2020Sep. 30,

2019

Commercial property and hospitality revenue $ 1,596 $ 1,589 $ 1,703 $ 1,733 $ 681 $ 1,052 $ — $ — $ 3,980 $ 4,374 Commercial property and hospitality expense (630) (629) (535) (463) (347) (510) — — (1,512) (1,602) NOI 966 960 1,168 1,270 334 542 — — 2,468 2,772 Investment and other income 56 37 41 52 53 63 6 8 156 160 Fee revenue 86 129 79 106 2 2 — — 167 237 Interest expense (456) (435) (631) (690) (268) (320) (186) (192) (1,541) (1,637) Depreciation of non-real estate assets (7) (6) (18) (18) (11) (7) — — (36) (31) General and administrative expense (203) (185) (202) (211) (54) (58) (85) (131) (544) (585) Non-controlling interests (74) (81) (12) (12) (5) (12) (1) (1) (92) (106) FFO 368 419 425 497 51 210 (266) (316) 578 810 Depreciation of non-real estate assets 7 6 18 18 11 7 — — 36 31 Transaction costs 3 11 (11) 40 10 10 3 11 5 72 Gains/losses on non-investment properties 3 — — — — — — — 3 — Imputed interest 21 41 — — — 1 — — 21 42 BSREP III earnings(1) — — — — 5 11 — — 5 11 Company FFO 402 477 432 555 77 239 (263) (305) 648 966 Company FFO and realized LP Investment gains(2) 402 477 432 555 94 326 (263) (305) 665 1,053 FFO 368 419 425 497 51 210 (266) (316) 578 810 Depreciation of real estate assets (3) (2) — — (65) (73) — — (68) (75) Fair value gains, net (335) 557 (1,900) (113) (38) (6) (157) (123) (2,430) 315 Income taxes (14) (68) 9 14 (72) (68) 39 30 (38) (92) Non-controlling interests — (2) — — (10) (22) — — (10) (24) Net (loss) income attributable to Unitholders $ 16 $ 904 $ (1,466) $ 398 $ (134) $ 41 $ (384) $ (409) $ (1,968) $ 934 (1) BSREP III is now accounted for as a financial asset which results in FFO being recognized in line with distributions received. As such, the BSREP III earnings adjustment picks up our proportionate share of the Company FFO(2) Realized LP investment gains are presented net of carried interest and other transaction costs

10

PROPORTIONATE FINANCIAL POSITION BY SEGMENT

Core Operations


(US$ Millions)Sep. 30,

2020Dec. 31,

2019Sep. 30,

2020Dec. 31,

2019Sep. 30,

2020Dec. 31,

2019Sep. 30,

2020Dec. 31,

2019Sep. 30,

2020Dec. 31,

2019AssetsCommercial properties $ 30,927 $ 28,362 $ 33,723 $ 35,146 $ 7,936 $ 8,286 $ — $ — $ 72,586 $ 71,794 Commercial developments 3,258 6,044 — — 613 542 — — 3,871 6,586 Property, plant and equipment 246 236 78 82 2,346 2,216 — — 2,670 2,534 Cash and cash equivalents 800 844 366 444 441 259 17 40 1,624 1,587 Other assets 2,141 2,297 1,226 731 2,629 2,444 157 84 6,153 5,556 Assets held for sale 577 — — — 305 295 — — 882 295 Total assets 37,949 37,783 35,393 36,403 14,270 14,042 174 124 87,786 88,352 LiabilitiesCorporate borrowings — — — — — — 3,417 2,050 3,417 2,050 Asset-level debt obligations 18,124 17,619 15,644 15,665 7,524 7,323 — — 41,292 40,607 Subsidiary borrowings, non-recourse to BPY 152 97 5,459 5,263 111 25 — — 5,722 5,385 Capital securities — — — — 145 145 1,729 1,722 1,874 1,867 Deferred tax liabilities 1,084 1,080 59 68 441 382 30 101 1,614 1,631 Other liabilities 2,398 2,422 841 767 709 680 750 790 4,698 4,659 Liabilities associated with assets held for sale — — — — 227 227 — — 227 227 EquityPreferred equity - partnership — — — — — — 699 420 699 420 Non-controlling interests 2,324 2,325 475 502 140 134 15 15 2,954 2,976 Equity attributable to Unitholders 13,867 14,240 — 12,915 14,138 4,973 5,126 (6,466) (4,974) 25,289 28,530 Total liabilities and equity $ 37,949 $ 37,783 $ 35,393 $ 36,403 $ 14,270 $ 14,042 $ 174 $ 124 $ 87,786 $ 88,352

Consolidated Overview

11

Consolidated OverviewPROPORTIONATE FAIR VALUE CONTINUITY

Quarter-to-dateBalance sheet

(US$ Millions) Jun. 30, 2020 Invest.(1) Acquisitions Dispositions Reclass FX Profit & Loss(2) Sep. 30, 2020Commercial properties(3)

Core Office $ 30,114 $ 96 $ 11 $ — $ 200 $ 501 $ 5 $ 30,927 Core Retail 33,968 69 — (3) 14 (3) (322) 33,723 LP Investments 8,067 40 45 (43) (235) 80 (18) 7,936

72,149 205 56 (46) (21) 578 (335) 72,586 Commercial developments

Core Office 3,673 252 — — (750) 83 — 3,258 LP Investments 589 51 1 — (56) 17 11 613

4,262 303 1 — (806) 100 11 3,871 Total investment properties $ 76,411 $ 508 $ 57 $ (46) $ (827) $ 678 $ (324) $ 76,457 Other fair value gains (losses)(4) 19 Total fair value losses $ (305)

(1) Represents investments in our assets through capital expenditures, tenant improvements and redevelopment initiatives(2) Represents changes in value as a result of amount and timing of cash flows at the property level due to leasing activity, leasing assumptions and investment horizon. In addition, includes the impact of changes in discount and terminal capitalization rates(3) Included in property, plant and equipment on our balance sheet are $2.346B of hospitality assets that are revalued once a year using the depreciated replacement cost method. Each quarter our hospitality assets are tested for impairments. During Q3 2020, we recorded $9M of impairments, $8M which was recognized through OCI and the balance through other fair value losses(4) Other fair value gains primarily includes mark-to-market gains on derivatives

Valuation Metrics for Commercial PropertiesSep. 30, 2020 Jun. 30, 2020

(US$)Discount

rateTerminal

cap rateHold period

(years)Capitali-

zation rate

Implied going-in capitali-

zation rate(1)

Implied value per

leasable sq. ft./unit(2)

Discountrate

Terminal cap rate

Hold period (years)

Capitali-zation rate

Implied going-in capitali-

zation rate(1)Implied value per leasable

sq. ft./unit(2)

Core Office 6.2 % 5.1 % 11 4.0 % $ 717 6.2 % 5.2 % 11 4.2 % $ 696 Core Retail 6.8 % 5.2 % 10 4.5 % 871 6.8 % 5.2 % 10 4.7 % 875 LP Investments Office 9.7 % 7.1 % 7 249 9.7 % 7.3 % 7 239 Retail 8.6 % 6.9 % 10 210 8.6 % 6.9 % 10 219 Mixed-use 7.3 % 5.3 % 10 484 7.4 % 5.3 % 10 463 Multifamily 5.0 % 196 5.0 % 194 Triple Net Lease 6.2 % 344 6.2 % 331 Self-storage 5.5 % 125 5.6 % 121 Student Housing 4.9 % 133 4.9 % 126 Manufactured Housing 5.5 % 80 5.5 % 78 (1) Annualized in-quarter NOI adjusted for acquisitions and dispositions that took place during the quarter and straight-line rental income as disclosed on pages 21 and 27(2) For retail assets, the leasable square feet exclude all anchor space. For multifamily, student housing and manufactured housing assets, the relevant calculation compares the value of commercial properties to the number of units, beds or sites, respectively, rather than square feet. Amounts are reflective of respective period foreign currency exchange rates.

12

Consolidated OverviewPROPORTIONATE FAIR VALUE CONTINUITY (Cont'd)

Year-to-dateBalance sheet

(US$ Millions) Dec. 31, 2019 Invest.(1) Acquisitions Dispositions Reclass FX Profit & Loss(2) Sep. 30, 2020Commercial properties(3)

Core Office $ 28,362 $ 266 $ 45 $ (403) $ 3,150 $ (180) $ (313) $ 30,927 Core Retail 35,146 282 174 (14) 34 (35) (1,864) 33,723 LP Investments 8,286 117 56 (80) (224) (197) (22) 7,936

71,794 665 275 (497) 2,960 (412) (2,199) 72,586 Commercial developments

Core Office 6,044 797 53 (21) (3,670) (118) 173 3,258 LP Investments 542 141 22 — (98) 1 5 613

6,586 938 75 (21) (3,768) (117) 178 3,871 Total investment properties $ 78,380 $ 1,603 $ 350 $ (518) $ (808) $ (529) $ (2,021) $ 76,457 Other fair value (losses) gains(4) (409) Total fair value losses $ (2,430) (1) Represents investments in our assets through capital expenditures, tenant improvements and redevelopment initiatives(2) Represents changes in value as a result of amount and timing of cash flows at the property level due to leasing activity, leasing assumptions and investment horizon. In addition, includes the impact of changes in discount and terminal capitalization rates(3) Included in property, plant and equipment on our balance sheet are $2.346B of hospitality assets that are revalued once a year using the depreciated replacement cost method. Each quarter our hospitality assets are tested for impairments. During 2020, we recorded $177M of impairments, $148M which was recognized through OCI and the balance through fair value losses.(4)Other fair value losses primarily includes mark-to-market losses on derivatives and hospitality impairments

13

Consolidated OverviewPROPORTIONATE SUMMARY CASH FLOW INFORMATION AND LIQUIDITY

Proportionate Summary Cash Flow InformationQuarter-to-date Year-to-date

(US$ Millions) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019Company FFO $ 161 $ 324 $ 648 $ 966 Proceeds from financings 1,081 2,994 3,020 7,517 Debt repayments (1,017) (2,869) (2,460) (5,341) Draws (repayments) on corporate and fund subscription facilities 755 (374) 1,649 (707) Issuances (redemptions) of capital securities — — (13) (419) Issuances (redemptions) of preferred equity — 242 249 404 Issuance (repurchases) of units (1) (39) (143) (470) Distributions paid (319) (315) (963) (951) Investments (630) (648) (1,656) (2,187) Disposals 116 628 234 1,718 Proceeds from (purchase of) financial assets, net (41) 144 91 (207) Change in working capital and other, net 58 16 (619) (666) Change in proportionate cash 163 103 37 (343) Proportionate cash at beginning of period 1,461 1,611 1,587 2,057 Proportionate cash at end of period $ 1,624 $ 1,714 $ 1,624 $ 1,714 Proportionate availability under credit facilities 2,974 4,081 Proportionate availability under construction facilities 1,445 1,288 Group-wide liquidity $ 6,043 $ 7,083

14

PROPORTIONATE DEBT SUMMARY

Sep. 30, 2020 Deferred financing

costs(US$ Millions)(US$ Millions) Avg. term Avg. rate Total 2020 (1) 2021(1) 2022 2023 2024 Thereafter % FloatingCore Office 4.9 3.00 % $ 18,276 $ 358 $ 2,441 $ 2,139 $ 1,476 $ 3,329 $ 8,688 $ (155) 21.8 %Weighted average interest rate 3.00 % 2.38 % 3.00 % 2.67 % 3.10 % 2.07 % 3.43 %% floating 21.8 % 12.8 % 20.6 % 46.6 % 4.7 % 18.0 % 20.8 %Core Retail 3.6 3.84 % 21,103 748 3,530 2,769 3,584 3,359 7,149 (36) 29.5 %Weighted average interest rate 3.84 % 4.05 % 3.62 % 3.75 % 3.60 % 4.24 % 3.89 %% floating 29.5 % 2.7 % 42.2 % 33.9 % 58.5 % 2.0 % 22.7 %LP Investments 5.0 4.06 % 7,635 101 374 748 895 2,119 3,439 (41) 58.2 %Weighted average interest rate 4.06 % 2.79 % 3.09 % 3.23 % 3.59 % 3.04 % 4.66 %% floating 58.2 % 100.0 % 64.8 % 33.8 % 50.6 % 57.5 % 64.0 %Corporate 3.7 2.94 % 3,417 — 300 — 381 2,075 676 (15) 47.3 %Weighted average interest rate 2.94 % — % 4.12 % — % 4.34 % 2.19 % 3.93 %% floating 47.3 % — % — % — % — % 78.3 % — %Total 4.3 3.51 % $ 50,431 $ 1,207 $ 6,645 $ 5,656 $ 6,336 $ 10,882 $ 19,952 $ (247) 32.3 %Maturity as a % of total 100.0 % 2.4 % 13.1 % 11.2 % 12.5 % 21.5 % 39.3 %Weighted average interest rate 3.51 % 3.45 % 3.38 % 3.32 % 3.55 % 3.09 % 3.82 %(1) $1.29 billion of forward starting swaps are in place to hedge the impact of changing interest rates on certain planned refinancings during these periods


15


Cumulative

(US$ Millions) Entity Authorized Outstanding dividend rate Sep. 30, 2020 Dec. 31, 2019Class A Preferred Equity Units Series 1 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.25 % $ 583 $ 574 Class A Preferred Equity Units Series 2(1) Brookfield Property L.P. 24,000,000 24,000,000 6.50 % 552 546 Class A Preferred Equity Units Series 3(1) Brookfield Property L.P. 24,000,000 24,000,000 6.75 % 536 530 Class A Senior Preferred Shares Series 1 Brookfield Property Split Corp. 1,000,000 842,534 5.25 % 22 23 Class A Senior Preferred Shares Series 2 Brookfield Property Split Corp. 1,000,000 556,746 5.75 % 10 13 Class A Senior Preferred Shares Series 3 Brookfield Property Split Corp. 1,000,000 789,718 5.00 % 15 18 Class A Senior Preferred Shares Series 4 Brookfield Property Split Corp. 1,000,000 594,994 5.20 % 11 18 Class B Series 1(2) Brookfield Office Properties Inc. 3,600,000 3,600,000 70% of bank prime — — Class B Series 2(2) Brookfield Office Properties Inc. 3,000,000 3,000,000 70% of bank prime — — Series A Preferred Shares Rouse Properties L.P. 5,600,000 5,600,000 5.00 % 71 71 Preferred Capital BSREP II MH B LLC — — 9.00 % 64 64 Preferred Shares BSREP II Vintage Estate Partners LLC 10,000 10,000 5.00 % 10 10

Total $ 1,874 $ 1,867 (1) Series 1, 2 and 3 are mandatorily convertible into units after seven, ten and twelve years, respectively(2) Class B capital securities are owned by Brookfield Asset Management. Brookfield Office Properties Inc. has an offsetting loan receivable against these securities

PROPORTIONATE CAPITAL SECURITIES

16


Cumulative

(US$ Millions) Entity Outstanding dividend rate Sep. 30, 2020 Dec. 31, 2019Class A Series 1 Brookfield Property Partners L.P. 7,360,000 6.50 % $ 179 $ 178 Class A Series 2 Brookfield Property Partners L.P. 10,000,000 6.38 % 242 242 Class A Series 3 Brookfield Property Partners L.P. 11,500,000 5.75 % 278 — Class A Various BPY holding entities 200,004 5.00 % 15 15 Class AAA Series N Brookfield Office Properties Inc. 11,000,000 3.78 % 257 257 Class AAA Series P Brookfield Office Properties Inc. 12,000,000 4.16 % 287 287 Class AAA Series R Brookfield Office Properties Inc. 8,883,425 4.16 % 227 227 Class AAA Series S Brookfield Office Properties Inc. 1,116,575 3 mo. T-Bill+ 3.48% 14 14 Class AAA Series T Brookfield Office Properties Inc. 10,000,000 5.38 % 250 250 Class AAA Series V(1) Brookfield Office Properties Inc. 1,290,789 70% of bank prime 18 18 Class AAA Series W(2) Brookfield Office Properties Inc. 1,884,427 70% of bank prime 27 27 Class AAA Series Y(3) Brookfield Office Properties Inc. 1,242,911 70% of bank prime 18 18 Class AAA Series Z(4) Brookfield Office Properties Inc. 600,000 30-day BA+ 0.4% 7 7 Class AAA Series AA Brookfield Office Properties Inc. 12,000,000 4.71 % 261 261 Class AAA Series CC Brookfield Office Properties Inc. 8,000,000 6.00 % 155 155 Class AAA Series EE Brookfield Office Properties Inc. 11,000,000 5.10 % 206 206 Class AAA Series GG Brookfield Office Properties Inc. 11,000,000 4.85 % 196 196 Class AAA Series II Brookfield Office Properties Inc. 10,000,000 4.85 % 190 190 Series C BP US REIT LLC 8,000 8.00 % 80 80 Series A Brookfield DTLA Fund Office Trust Investor Inc. 9,357,465 7.63 % 133 133 Series D Brookfield Property REIT Inc. 532,750 6.50 % 27 27 Series E Brookfield Property REIT Inc. 502,658 7.00 % 25 25 Series K(5) Brookfield Property REIT Inc. 653,825 — 17 44 Series A Brookfield Property REIT Inc. 10,000,000 6.38 % 242 242

Total $ 3,351 $ 3,099 (1) BPY and its subsidiaries own 514,700 of the Class AAA Series V preferred shares, which has been reflected as a reduction in outstanding shares(2) BPY and its subsidiaries own 1,932,100 of the Class AAA Series W preferred shares, which has been reflected as a reduction in outstanding shares(3) BPY and its subsidiaries own 1,604,800 of the Class AAA Series Y preferred shares, which has been reflected as a reduction in outstanding shares(4) BPY and its subsidiaries own 200,000 of the Class AAA Series Z preferred shares, which has been reflected as a reduction in outstanding shares(5) Series K shares are entitled to distributions identical to those paid on Brookfield Property REIT Inc. Class A Stock

PROPORTIONATE PREFERRED EQUITY

17

Consolidated OverviewPER UNIT CALCULATIONS

Book Value per UnitSep. 30, 2020 Dec. 31, 2019

(US$ Millions, except per unit amounts) Unitholder equityNumber of

units Per unit Unitholder equityNumber of

units Per unitBasic book value per unit $ 25,289 935.8 $ 27.02 $ 28,530 945.4 $ 30.18 Dilutive effect of conversion of preferred shares(1) 1,671 70.1 23.84 1,650 70.1 23.54 Fully diluted book value per unit $ 26,960 1,005.9 $ 26.80 $ 30,180 1,015.5 $ 29.72 (1) Represents preferred shares that are mandatorily convertible into units after seven, ten and twelve years and which were issued in Q4 2014; $265M of the preferred shares was classified in equity at the time of issuance

Company FFO per UnitQuarter-to-date

Sep. 30, 2020 Sep. 30, 2019

(US$ Millions, except per unit amounts) Company FFO (1)Average

number ofunits Per unit Company FFO

Average number of

units Per unitBasic $ 150 933.5 $ 0.16 $ 319 950.1 $ 0.34 Dilutive effect of conversion of preferred shares(2) 29 70.1 0.41 29 70.1 0.41

179 1,003.6 0.18 348 1,020.2 0.34 Dilutive effect of options — — — — — — Fully-diluted per Management $ 179 1,003.6 $ 0.18 $ 348 1,020.2 $ 0.34 (1) Company FFO is reduced by $11M of preferred dividends paid in the current period(2) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry

Net Income per UnitQuarter-to-date

Sep. 30, 2020 Sep. 30, 2019

(US$ Millions, except per unit amounts)

Net income attributable to Unitholders (1)

Averagenumber of

units Per unit

Net income attributable to

UnitholdersAverage number of

units Per unitBasic(2) $ (239) 933.5 $ (0.26) $ 469 950.1 $ 0.49 Dilutive effect of conversion of preferred shares(3) 29 70.1 0.41 29 70.1 0.41

(210) 1,003.6 (0.21) 498 1,020.2 0.49 Dilutive effect of options — — — — — — Fully-diluted per Management $ (210) 1,003.6 $ (0.21) $ 498 1,020.2 $ 0.49 Fully-diluted per IFRS(4) $ (239) 1,003.6 $ (0.24) $ 469 1,020.2 $ 0.46 (1) Net income attributable to Unitholders is reduced by $11M of preferred dividends paid in the current period(2) IFRS requires the inclusion of preferred shares that are mandatorily convertible into units without an add back to earnings of the associated carry on the preferred shares. Consequently, basic net income per unit per IFRS for the three months ended September 30, 2020 was $(0.24) (2019 – $0.46)(3) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(4) Excludes the add back to earnings of the carry on the mandatorily convertible preferred shares, as required under IFRS

18

Consolidated OverviewPER UNIT CALCULATIONS

Company FFO per UnitYear-to-date

Sep. 30, 2020 Sep. 30, 2019

(US$ Millions, except per unit amounts) Company FFO (1)Average

number ofunits Per unit Company FFO

Average number of units Per unit

Basic $ 617 937.5 $ 0.66 $ 958 957.6 $ 1.00 Dilutive effect of conversion of preferred shares(2) 88 70.1 1.26 88 70.1 1.26

705 1,007.6 0.70 1,046 1,027.7 1.02 Dilutive effect of conversion of capital securities and options(3) — — — 8 9.0 0.89 Fully-diluted per Management $ 705 1,007.6 $ 0.70 $ 1,054 1,036.7 $ 1.02 (1) Company FFO is reduced by $31M of preferred dividends paid in the current period(2) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(3) Capital securities were fully redeemed during the second quarter of 2019

Net Income per UnitYear-to-date

Sep. 30, 2020 Sep. 30, 2019

(US$ Millions, except per unit amounts)

Net income attributable to Unitholders (1)

Averagenumber of

units Per unit

Net income attributable to

UnitholdersAverage number of

units Per unitBasic(2) $ (1,998) 937.5 $ (2.13) $ 926 957.6 $ 0.97 Dilutive effect of conversion of preferred shares(3) 88 70.1 1.26 88 70.1 1.26

(1,910) 1,007.6 (1.90) 1,014 1,027.7 0.99 Dilutive effect of conversion of capital securities and options(4) — — — 8 9.0 0.89 Fully-diluted per Management $ (1,910) 1,007.6 $ (1.90) $ 1,022 1,036.7 $ 0.99 Fully-diluted per IFRS(5) $ (1,998) 1,007.6 $ (1.98) $ 934 1,036.7 $ 0.90 (1) Net income attributable to Unitholders is reduced by $31M of preferred dividends paid in the current period(2) IFRS requires the inclusion of preferred shares that are mandatorily convertible into units without an add back to earnings of the associated carry on the preferred shares. Consequently, basic net income per unit per IFRS for the nine months ended September 30, 2020 was $(1.98)(2019 – $0.90)(3) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(4) Capital securities were fully redeemed during the second quarter of 2019(5) Excludes the add back to earnings of the carry on the mandatorily convertible preferred shares, as required under IFRS

19

UNIT INFORMATION

Unit Distributions Current policy:

▪ Distribution of US$0.3325 per unit for the September 1, 2020 to November 30, 2020 period (US$1.33 per unit annualized)

▪ Record date - last business day of February, May, August and November▪ Payment date - last business day of March, June, September and

December

Earnings Announcements Brookfield Property Partners' financial results are scheduled to be announced on the following dates:

▪ Fourth quarter 2020 results on February 3, 2021▪ First quarter 2021 results on May 10, 2021▪ Second quarter 2021 results on August 4, 2021

Units OutstandingSep. 30, 2020 Dec. 31, 2019

Brookfield Property Partners L.P. limited partnership units 476,787,091 504,981,844 Brookfield Property Partners L.P. general partnership units 138,875 138,875 Total Brookfield Property Partners L.P. units(1) 476,925,966 505,120,719 Limited partner units of the operating partnership held by Brookfield Asset Management 456,125,014 437,409,102 Limited partner units of Brookfield Office Properties Exchange LP 2,750,363 2,883,835 Total units outstanding 935,801,343 945,413,656 (1) Brookfield Asset Management has economic interests in approximately 101.1M BPY L.P. units and 3.0M of Brookfield Property REIT Inc. units as at September 30, 2020, bringing Brookfield Asset Management's economic interest to approximately 560.4M units, or approximately 59.9%

Unit Trading StatisticsJul. 1, 2020 - Sep. 30, 2020 Apr. 1, 2020 - Jun. 30, 2020 Jan. 1, 2020 - Mar. 31, 2020 Oct. 1, 2019 - Dec. 31, 2019 Jul. 1, 2019 - Sep. 30, 2019

NASDAQ (USD) TSX (CAD)





High $ 12.29 $ 16.29 $ 13.95 $ 18.65 $ 20.13 $ 26.38 $ 20.52 $ 27.03 $ 20.58 $ 27.25 Low $ 9.95 $ 13.80 $ 7.10 $ 10.05 $ 7.11 $ 10.34 $ 17.99 $ 23.60 $ 18.26 $ 24.26 Close $ 11.73 $ 15.73 $ 9.89 $ 13.45 $ 8.06 $ 11.36 $ 18.28 $ 23.73 $ 20.30 $ 26.89 Volume 150,050,800 70,131,270 186,547,500 114,413,128 187,426,500 102,478,719 59,298,300 29,183,057 51,862,900 24,706,419


21

Core OfficeNET OPERATING INCOME

Total Net Operating IncomeQuarter-to-date Year-to-date % of Total

(Millions in source currency unless otherwise noted) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 (Current QTD)United States $ 149.7 $ 156.5 $ 446.3 $ 463.3 48.8 %Canada in C$ 73.9 76.6 227.6 232.5 in US$ 55.5 58.0 168.3 174.9 18.1 %Australia in A$ 38.7 50.0 117.5 168.4 in US$ 27.7 34.3 79.6 117.7 9.0 %United Kingdom in £ 53.0 42.8 157.9 122.7 in US$ 68.5 52.7 200.7 156.2 22.3 %Germany in € 2.7 2.7 8.9 9.9 in US$ 3.2 3.0 10.0 11.1 1.0 %United Arab Emirates in AED (0.7) — (0.7) — in US$ (0.2) — (0.2) — — %Brazil in R$ 14.2 15.4 46.6 43.4 in US$ 2.6 3.9 9.2 11.2 0.8 %Total Cash NOI 306.9 308.4 913.9 934.4 100.0 %Straight-line rental income 15.0 7.7 52.1 25.9 Total NOI (US$) $ 321.9 $ 316.1 $ 966.0 $ 960.3

% o

f Tot

al (Q

TD)

11.4%

16.9%

8.7%

6.6%

2.6% 2.7%

9.2%8.5%

5.8%

22.3%

5.3%

9.4%

17.5%

8.3%6.8%

5.1%3.5%

9.4% 9.0%

5.9%

17.1%

8.0%

Q3 2020 Q3 2019

Midtown New York

Downtown New York

Washington, D.C.

Los AngelesHouston

Other USToronto

CalgaryPerth London

Other

0

5

10

15

20

25

Composition of Net Operating Income by City

22

SAME-PROPERTY NET OPERATING INCOMECore Office

Same-Property Net Operating IncomeGrowth Quarter-to-date Year-to-date % of Total

(Millions in source currency unless otherwise noted) (QoQ) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 (Current QTD)United States (1.9) % $ 152.6 $ 155.6 $ 462.1 $ 467.5 52.3 %Canada in C$ (4.3) % 75.1 78.5 229.4 235.3 in US$ (5.2) % 56.4 59.5 169.6 177.1 19.3 %Australia in A$ (2.5) % 39.3 40.3 118.9 119.4 in US$ 1.8 % 28.1 27.6 80.5 83.4 9.6 %United Kingdom in £ (9.6) % 37.7 41.7 117.8 122.3 in US$ (5.3) % 48.7 51.4 149.7 155.6 16.7 %Germany in € (10.0) % 2.7 3.0 8.6 9.8 in US$ (3.0) % 3.2 3.3 9.7 11.0 1.1 %Brazil in R$ — % 15.0 15.0 46.9 43.8 in US$ (26.3) % 2.8 3.8 9.2 11.3 1.0 %Total same-property NOI (US$) $ 291.8 $ 301.2 $ 880.8 $ 905.9 100.0 %Percent of same-property NOI growth (3.1) % (2.8) %Percent of same-property NOI growth excluding the impact of FX (3.9) % (1.9) %

% o

f Tot

al (Q

TD)

9.8%

18.9%

9.1%

7.4%

4.5%

2.6%

9.9%9.1%

6.5%

16.7%

5.5%

8.7%

17.9%

8.5% 8.1%

5.5%

2.9%

10.1%9.3%

6.1%

17.1%

5.8%

Q3 2020 Q3 2019

Midtown New York

Downtown New York

Washington, D.C.

Los AngelesHouston

Other USToronto

CalgaryPerth London

Other

0

4

8

12

16

20

Composition of Same-Property Net Operating Income by City

23

HISTORICAL OCCUPANCY AND RENT METRICS

Historical Occupancy and Rent Metrics (Assets Under Management)Q3 2020 Q2 2020 Q3 2019

OccupancyIn-Place Net

RentsMarket Net

Rents

Avg. Remaining

Lease Term (years) Occupancy

In-Place Net Rents

Market Net Rents Occupancy

In-Place Net Rents

Market Net Rents

Midtown New York 96.3 % $ 49.09 $ 59.05 11.7 96.3 % $ 49.09 $ 55.90 94.9 % $ 45.89 $ 61.61 Downtown New York 96.9 % 35.71 43.65 9.1 97.1 % 35.61 44.97 96.7 % 35.18 43.11 Washington, D.C. 88.1 % 32.70 22.29 5.0 89.6 % 32.47 22.36 87.4 % 31.95 23.05 Los Angeles 81.6 % 28.00 27.53 6.5 82.2 % 27.82 28.92 84.6 % 26.90 28.00 Houston 78.6 % 23.50 24.25 6.0 79.6 % 23.48 24.32 84.7 % 25.93 26.00 Denver 86.7 % 25.06 20.00 4.9 87.1 % 25.05 20.00 84.6 % 24.48 21.00 San Francisco 86.2 % 55.97 53.00 4.2 89.0 % 53.23 53.00 84.3 % 48.97 55.00 United States 89.3 % 33.91 36.18 7.7 89.9 % 33.75 36.29 90.1 % 32.58 35.61 Toronto 97.7 % 33.69 37.00 6.7 98.7 % 33.87 37.00 98.9 % 33.28 37.00 Calgary 90.1 % 31.85 17.00 10.6 90.5 % 31.66 18.00 92.3 % 32.40 21.00 Ottawa 91.1 % 21.07 21.00 6.6 91.1 % 21.06 21.00 91.3 % 22.43 21.00 Canada 94.1 % 32.50 27.74 8.4 94.7 % 32.51 28.23 95.6 % 32.57 29.50 in US$ (2) 24.40 20.83 24.41 21.20 24.45 22.15 Sydney 57.6 % 105.61 111.58 10.9 — % — — — % — — Melbourne 99.8 % 63.34 57.62 2.1 99.8 % 63.28 57.88 99.9 % 60.90 54.39 Perth 96.0 % 80.67 58.06 6.1 96.3 % 80.46 58.06 96.4 % 78.13 57.73 Brisbane 82.6 % 69.68 58.71 4.6 90.2 % 69.66 58.71 82.9 % 69.92 56.29 Australia 91.8 % 76.49 60.83 5.1 97.2 % 74.68 58.05 96.6 % 69.15 63.91 in US$ (1) 54.78 43.57 53.49 41.58 49.53 45.77 London 95.3 % 50.74 55.23 12.0 95.0 % 50.73 55.25 95.1 % 46.70 51.35 in US$ (1) 65.56 71.36 65.55 71.38 60.34 66.34 Berlin 96.5 % 22.68 41.81 8.6 96.5 % 22.34 41.81 89.0 % 25.07 39.02 in US$ (1) 26.58 49.01 26.19 49.01 29.39 45.74 Dubai(2) 24.5 % 193.49 133.62 11.3 — % — — — % — — in US$ (1) 52.69 36.38 — — — — São Paulo 100.0 % 288.44 288.44 3.2 100.0 % 288.44 288.44 100.0 % 268.81 268.81 Rio de Janeiro 100.0 % 181.29 181.29 7.3 100.0 % 168.93 168.93 100.0 % 168.93 168.93 Brazil 100.0 % 234.67 234.67 5.2 100.0 % 228.47 228.47 100.0 % 218.69 218.69 in US$ (1) 41.61 41.61 40.51 40.51 38.77 38.77 Total 90.7 % $ 37.43 $ 38.20 8.3 92.3 % $ 37.10 $ 38.05 92.3 % $ 33.61 $ 35.36 Mark-to-market 2.1 % 2.6 % 5.2 %(1) Using the spot rate at September 30, 2020 for all periods presented(2) Dubai was operational in the period ended September 30, 2020

Core Office

24

Core OfficePROPORTIONATE LEASING ACTIVITY

Quarter-to-dateJun. 30, 2020 Quarter-to-date leasing activity Sep. 30, 2020

Total Year one Average Acq. (disp.)Leased Avg. in-place expiries Expiring Leasing leasing leasing additions Leased Avg. in-place Avg. mkt.

(Sq. ft. in net rent (Sq. ft. in net rent (Sq. ft. in net rent net rent (Sq. ft. in (Sq. ft. in net rent net rent(Local currency) 000's) (per sq. ft.) 000's) (per sq. ft.) 000's) (per sq. ft.) (per sq. ft.) 000's) 000's) (per sq. ft.) (per sq. ft.)Midtown New York 3,204 $ 49.09 — $ — 1 $ 164.08 $ 219.97 — 3,205 $ 49.09 $ 59.05 Downtown New York 6,710 35.61 (12) 156.74 5 106.71 106.71 — 6,703 35.71 43.65 Washington, D.C. 3,465 32.47 (108) 27.97 28 24.35 25.49 — 3,385 32.70 22.29 Los Angeles 3,479 27.82 (88) 30.87 61 28.70 31.10 — 3,452 28.00 27.53 Houston 3,419 23.48 (105) 27.00 54 25.97 27.12 — 3,368 23.50 24.25 Denver 581 25.05 (8) 25.35 5 23.25 24.01 — 578 25.06 20.00 San Francisco 188 53.23 (9) 13.54 — — — — 179 55.97 53.00 United States 21,046 33.75 (330) 32.66 154 30.19 32.13 — 20,870 33.91 36.18 Toronto 4,760 33.87 (119) 48.42 54 38.39 38.96 — 4,695 33.69 37.00 Calgary 3,889 31.66 (18) 26.45 3 16.46 16.46 — 3,874 31.85 17.00 Ottawa 272 21.06 (1) 11.83 1 14.10 14.10 — 272 21.07 21.00 Canada 8,921 32.51 (138) 45.29 58 36.84 37.37 — 8,841 32.50 27.74 in US$(1) 24.41 34.00 27.66 28.06 24.40 20.83 Sydney — — — — 9 90.58 115.42 118 127 105.61 111.58 Melbourne 677 63.28 — — — — — — 677 63.34 57.62 Perth 1,453 80.46 (5) 63.94 — — — — 1,448 80.67 58.06 Brisbane 135 69.66 (11) 75.80 — — — — 124 69.68 58.71 Australia 2,265 74.68 (16) 72.10 9 90.58 115.42 118 2,376 76.49 60.83 in US$(1) 53.49 51.64 64.87 82.66 54.78 43.57 London 5,311 50.73 (27) 42.93 39 48.04 48.04 — 5,323 50.74 55.23 in US$(1) 65.55 55.47 62.07 62.07 65.56 71.36 Berlin 525 22.34 (39) 21.74 39 28.48 28.48 — 525 22.68 41.81 in US$(1) 26.19 25.48 33.38 33.38 26.58 49.01 Dubai(2) — — — — — — — 134 134 193.49 133.62 in US$(1) — — — — 52.69 36.38 São Paulo 141 288.44 — — — — — — 141 288.44 288.44 Rio de Janeiro 142 168.93 — — — — — — 142 181.29 181.29 Brazil 283 228.47 — — — — — — 283 234.67 234.67 in US$(1) 40.51 — — — 41.61 41.61 Total 38,351 $ 37.10 (550) $ 34.16 299 $ 35.32 $ 36.93 252 38,352 $ 37.43 $ 38.20 (1) Using the spot rate at September 30, 2020 for all periods presented(2) Dubai was operational in the period ended September 30, 2020

25

Core Office

Sep. 30, 2020 Current 2020 2021 2022 2023 2024 2025 Thereafter Total(1)

(Local currency) (Sq. ft. in

000's) (Sq. ft. in

000's)

Net rent (per

sq. ft.)(2) (Sq. ft. in

000's)

Net rent (per


000's)

Net rent (per


000's)

Net rent (per


000's)

Net rent (per


000's)

Net rent (per


000's)

Net rent (per


000's)Midtown New York 98 — $ — 2 $ 47 8 $ 30 3 $ 53 17 $ 39 55 $ 68 3,120 $ 59 3,303 Downtown New York 216 — — 95 46 426 32 90 53 210 48 270 38 5,612 44 6,919 Washington, D.C. 458 121 26 678 30 306 33 422 32 201 30 224 34 1,433 47 3,843 Los Angeles 783 56 22 195 31 267 29 485 28 286 33 378 34 1,785 39 4,235 Houston 1,108 92 21 102 27 617 23 281 27 259 27 118 27 1,899 27 4,476 Denver 91 4 18 40 20 5 27 129 27 5 35 4 31 391 29 669 San Francisco 27 — 22 9 56 90 58 9 59 6 60 3 64 62 80 206 United States 2,781 273 23 1,121 31 1,719 30 1,419 31 984 34 1,052 36 14,302 44 23,651 Toronto 137 108 36 254 35 539 30 219 35 375 35 619 36 2,581 36 4,832 Calgary 434 13 44 23 31 181 30 53 33 75 42 282 38 3,247 36 4,308 Ottawa 26 — 75 3 13 5 13 1 28 24 19 — 45 239 22 298 Canada 597 121 37 280 34 725 30 273 35 474 35 901 37 6,067 35 9,438 in US$ 28 26 23 26 26 28 26 Sydney 94 — — — — — — — — — — — — 127 153 221 Melbourne 2 2 129 281 68 141 63 2 138 247 65 2 148 2 213 679 Perth 40 9 64 26 65 158 84 46 77 82 83 68 93 1,059 104 1,488 Brisbane 25 — — 18 78 20 113 7 80 — — 38 69 41 73 149 Australia 161 11 76 325 68 319 77 55 80 329 69 108 86 1,229 108 2,537 in US$ 54 49 55 57 49 62 77 London 324 — — 81 43 110 51 225 46 215 55 161 50 4,531 53 5,647 in US$ — 56 66 59 71 65 68 Berlin 18 3 24 24 27 29 25 37 26 46 23 28 26 358 22 543 in US$ 27 32 29 30 27 30 26 Dubai 415 — — — — — — 5 200 — — 31 200 98 228 549 in US$ — — — 54 — 54 62 São Paulo — — — — — — — — — 141 288 — — — — 141 Rio de Janeiro — — — — — — — — — — — — — 142 181 142 Brazil — — — — — — — — — 141 288 — — 142 181 283 in US$ — — — — 51 — 32

Total 4,296 408 $ 25 1,831 $ 35 2,902 $ 32 2,014 $ 34 2,189 $ 39 2,281 $ 36 26,727 $ 45 42,648 Total % expiring 10.1 % 1.0 % 4.3 % 6.8 % 4.7 % 5.1 % 5.3 % 62.7 % 100.0 %End of prior year 7.6 % 2.6 % 4.0 % 8.2 % 4.4 % 5.0 % 6.0 % 62.2 % 100.0 %Difference 2.5 % (1.6) % 0.3 % (1.4) % 0.3 % 0.1 % (0.7) % 0.5 %(1) Excludes developments(2) Net rent represents cash rent in year of expiry

PROPORTIONATE LEASE EXPIRY ANALYSIS

26

DEVELOPMENT SITES

Expected date of accounting stabilization

ProportionatePercent pre-

leased

Area currently under constructionSep. 30, 2020 Cost

Yield on cost Assets under management Proportionate(Local currency Millions and sq. ft. in 000's) Location Total To-dateOffice

Manhattan West Retail New York City Q4 2021 $ 119 $ 87 5 % 50 % 70 39 Wood Wharf - 20 Water Street London Q4 2021 £ 57 £ 33 10 % — % 236 118 1 The Esplanade Perth Q2 2023 A$ 331 A$ 85 7 % 63 % 610 305 Bay Adelaide North Toronto Q4 2023 C$ 496 C$ 208 6 % 89 % 823 823 Two Manhattan West New York City Q4 2023 $ 1,331 $ 526 6 % 25 % 1,948 1,091

Office - Redevelopment1100 Avenue of the Americas New York City Q2 2022 $ 113 $ 59 5 % 95 % 376 136

Multifamily - RentalTwo Blue Slip New York City Q3 2021 $ 344 $ 312 4 % n/a 348 331 Wood Wharf - 8 Water Street London Q3 2021 £ 51 £ 44 5 % n/a 131 66 Newfoundland London Q1 2022 £ 279 £ 247 5 % n/a 685 343 Halley Rise - Phase I (1) Washington, D.C. Q1 2023 $ 151 $ 76 5 % n/a 359 359 755 Figueroa Los Angeles Q1 2025 $ 257 $ 50 6 % n/a 674 319

Multifamily - Condominium (2)(3)

One Casson Square London Q4 2020 £ 68 £ 61 20 % n/a 175 44 Wood Wharf - One Park Drive London Q4 2021 £ 202 £ 153 30 % n/a 426 213

Hotel (2)

Wood Wharf - 15 Water Street (mixed-use) London Q1 2022 £ 70 £ 27 7 % n/a 188 94 Pendry Manhattan West New York City Q3 2023 $ 162 $ 109 4 % n/a 184 103 1 Charter Street London Q2 2025 £ 31 £ 3 6 % n/a 94 24

Active developments 7,327 4,408 Office - Elizabeth Quay Australia 1,018 1,018 Leadenhall (redevelopment) London 431 431 Water Square London 23 23 Halley Rise - Mixed-use Washington, D.C. 2,396 2,396 Active planning 3,868 3,868 Future developments 13,623 9,175 Total commercial developments 24,818 17,451 (1) Includes retail square feet that is 94% leased to Wegmans Food Market(2) Completion date and anticipated return on cost are presented instead of cash stabilization and yield on cost, respectively, for these developments(3) Multifamily-condominium are classified as inventory and hotel developments are classified as property, plant and equipment on the balance sheet

Core Office

Commercial DevelopmentsProportionate balance

(US $ Millions) Sep. 30, 2020 Dec. 31, 2019Active developments $ 2,119 $ 4,929 Active planning 242 227 Future developments 897 888 Total core office commercial developments $ 3,258 $ 6,044

27

NET OPERATING INCOME AND KEY PERFORMANCE METRICS

Commercial Property Net Operating IncomeQuarter-to-date Year-to-date

(US$ Millions unless otherwise noted) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019Same-property NOI $ 321.9 $ 395.6 $ 1,066.9 $ 1,196.0

Percent of same-property NOI growth -18.6 % -10.8 %Non same-property NOI 26.6 25.9 100.8 73.5 Total NOI 348.5 421.5 1,167.7 1,269.5 Less: straight-line rental income (15.1) (15.5) (36.0) (48.4) Total cash NOI $ 333.4 $ 406.0 $ 1,131.7 $ 1,221.1

Key Performance Metrics(US$ and sq. ft. in 000's) Sep. 30, 2020 Sep. 30, 2019Number of properties 122 123 Leasable sq. ft.:

Assets under management 119,789 121,602 Proportionate 50,315 49,602

Same-property:Leased 93.4 % 95.0 %Occupancy 92.8 % 93.6 %Permanent occupancy 89.0 % 90.1 %

Core Retail

28

SIGNED LEASES AND LEASE EXPIRY ANALYSIS

Leasing Activity - All LeasesTrailing 12 months commencements

Sep. 30, 2020# of leases Sq. ft. in 000's Term(in years)

Initial rentper sq. ft.

Average rent per sq. ft.(US$)

New and renewal leases 1,123 4,185 7.0 $ 51.93 $ 55.00 Percent in lieu/gross 415 2,342 5.9 N/A N/A

Total leases 1,538 6,527 6.6 $ 51.93 $ 55.00

Suite-to-Suite Lease Spreads(1,2)

New and renewal leasesSep. 30, 2020

# of leases Sq. ft. in 000's Term (in years)Initial rentper sq. ft.

Expiring rent per sq. ft. Initial rent spread(US$)

Trailing 12 months commencements 870 3,109 6.6 $ 52.14 $ 49.90 $ 2.24 4.5 %(1) Represents signed leases that have commenced in the specified period compared to expiring rent for the prior tenant in the same suite. New suites are within 10,000 square feet of the expiring suites(2) Represents leases where downtime between the new and previous tenant was less than 24 months

Lease Expiration

Sep. 30, 2020 Number of expiring

leases

Expiring GLA at 100%

(sq. ft. in 000's)

Percent of total

Expiring rent(in thousands)

Expiring rent per sq. ft.

(US$)Specialty leasing 968 2,255 4.3 % $ 36,535 $ 16.20 2020 844 2,500 4.8 % 152,485 61.01 2021 1,677 5,727 10.9 % 344,221 60.10 2022 1,644 6,359 12.1 % 348,182 54.75 2023 1,330 5,662 10.8 % 345,763 61.07 2024 1,300 6,850 13.0 % 394,067 57.53 2025 1,149 4,951 9.4 % 381,470 77.05 2026 838 3,968 7.6 % 296,966 74.84 2027 663 3,743 7.1 % 271,556 72.56 2028 583 3,061 5.8 % 193,531 63.23 Subsequent 1,271 7,440 14.2 % 398,419 53.55 Total 12,267 52,516 100.0 % $ 3,163,195 $ 60.23 Vacant space 1,575 3,699 Mall and freestanding GLA 13,842 56,215

Core Retail

29

REDEVELOPMENT SITES

Sep. 30, 2020Stabilized

Year

Expectedreturn on

investment

Proportionate cost

(US$ Millions) Location Description Total To-date

Active redevelopmentsAlderwood Lynnwood, WA Sears Redevelopment - Residential 2022 5-6% $ 13 $ 3

Stonestown Galleria San Francisco, CA Anchor Redevelopment for Retail and Entertainment 2022 8-9% 149 99

Tysons Galleria McLean, VA Macy's Redevelopment for theater and multi level small shop expansion

2023 6-7% 111 28

Other Projects Various 2020-2023 7-9% 172 61

Active redevelopments $ 445 $ 191 Active planning

Oxmoor Center Louisville, KY Sears Redevelopment for Entertainment and Restaurants 2024 6-7% 30

Cumberland Atlanta, GA Residential 2024 6-7% 19

Northridge Northridge, CA Residential 2025 8-9% 50

Ala Moana Honolulu, HI Residential Tower 2025 5-7% 157

Other Projects Various 2021-2025 7-9% 109

Active planning $ 365

Total retail redevelopments $ 810 $ 191

Core Retail

30

SUMMARY OF INVESTMENTSLP Investments

Current Quarter Highlights

Quarter-to-date Year-to-date

NOI Company FFO NOI Company FFO

(US$ Millions) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019Office $ 29 $ 33 $ 6 $ 4 $ 91 $ 99 $ 16 $ 14 Retail 17 23 10 17 60 71 36 49 Logistics — — — — 1 1 — — Multifamily 10 16 2 14 32 51 30 41 Hospitality 6 55 (11) 27 11 169 (49) 92 Triple Net Lease 22 22 9 7 63 69 26 19 Alternative Real Estate 15 17 5 5 53 55 18 18 Mixed-use 8 8 2 4 22 25 6 12 Finance Funds — 1 4 3 1 2 11 9 BSREP III — — 3 2 — — 6 11 Corporate — — (7) (9) — — (23) (26) Total $ 107 $ 175 $ 23 $ 74 $ 334 $ 542 $ 77 $ 239

Commercial properties Invested capitalLast 12 months realized gains(1)

(US$ Millions) Sep. 30, 2020 Dec. 31, 2019 Sep. 30, 2020 Dec. 31, 2019 Sep. 30, 2020Office $ 2,487 $ 2,485 $ 1,007 $ 1,110 $ 37 Retail 1,351 1,488 798 1,027 (1) Logistics — 26 19 20 — Multifamily 814 870 468 491 60 Hospitality(2) 18 — 791 796 — Triple Net Lease 1,275 1,291 362 341 (12) Alternative Real Estate 1,330 1,503 770 606 — Mixed-use 661 623 201 173 — Finance Funds — — 224 195 (1) BSREP III (3) — — 592 417 — Corporate — — (259) (50) — Total $ 7,936 $ 8,286 $ 4,973 $ 5,126 $ 83 (1) Net of carried interest(2) Hospitality assets are recorded separately from commercial properties within property, plant and equipment (3) BSREP III is accounted for as a financial asset on the balance sheet

31

SUMMARY OF INVESTMENTS (CONT'D)

Key Performance Metrics(1)

Sep. 30, 2020 Area

(Sq. ft. in 000's) No. of properties Assets under management Proportionate

Unit of measurement Occupancy %

Office 112 43,445 12,803 Sq. ft. 78.2 %Retail 40 25,299 8,260 Sq. ft. 85.5 %Logistics 1 357 84 Sq. ft. 100.0 %Multifamily 44 14,009 3,801 Units 92.2 %Hospitality 124 25,712 6,961 Rooms n/a(2)

Triple Net Lease 267 14,592 3,779 Sq. ft. 99.6 %Alternative Real Estate Self-storage 100 8,514 2,122 Sq. ft. 88.2 % Student Housing 53 19,877 5,032 Beds 93.7 % Manufactured Housing 136 32,424 8,288 Sites 88.3 %Mixed-use 7 5,643 1,367 Sq. ft. 93.2 %(1)Excludes BSREP III investments(2)In Q3 2020, our hospitality investments results improved as properties were granted permission to reopen. In particular, Center Parcs in the United Kingdom, which was closed for all of Q2 2020, reopened during the quarter and returned to 75% occupancy. Also, our North American extended-stay portfolio of 108 properties in BSREP II remained opened as it was largely not mandated to close and this portfolio operated at 77% occupancy during Q3. Average occupancy for the balance of our hotels was under 15%.

LP Investments

Summary of Hospitality Properties

Assets under management ProportionateNumber of

(US$ Millions) properties # of rooms Own % # of rooms

North America 9 7,517 29 % 2,194 United Kingdom 6 4,819 27 % 1,315 Extended Stay (North America) 108 12,943 26 % 3,316 Australia 1 433 31 % 136

Total 124 25,712 27 % 6,961

32

LP Investments BSREP Series

Sector Composition

51%

23%

19%

3%

4%

Sector Composition

23%

20%

18%

16%

15%

6%

2%

Sector Composition

28%

7%

12%9%

5%5%4%

30%

nOffice nRetail n Multifamily nMixed-use n Hospitality nLogistics nAlternative nUncommitted capital

BSREP I• $4.4B Fund• BPY has a 31% interest• BPY consolidates this fund• Fund is in year 9• Projected returns:

◦ 23.0% gross IRR◦ 2.6x multiple of capital

• 9 realizations to date

BSREP II• $9.0B Fund• BPY has a 26% interest• BPY consolidates this fund• Fund is in year 6• Projected returns:


• 2 realizations to date

BSREP III• $15.0B Fund• BPY has a 7% interest• BPY accounts for its interest in

this fund as a financial asset• Fund is in year 3• Projected returns:


• 30% of capital remains to be invested

33

FOREIGN CURRENCY EXPOSURE

Sep. 30, 2020(US$ Millions) USD GBP BRL AUD INR CAD KRW RMB EUR AED Other TotalNet equity - US$ $ 16,027 $ 5,704 $ 610 $ 1,458 $ 340 $ 263 $ 170 $ 156 $ 363 $ 196 $ 2 $ 25,289 FX contracts - US$ 764 (388) — (43) (2) — (140) (171) (17) — (3) — Net unhedged - US$ 16,791 5,316 610 1,415 338 263 30 (15) 346 196 (1) 25,289

% of total equity 66.5% 21.0% 2.4% 5.6% 1.3% 1.0% 0.1% (0.1%) 1.4% 0.8% —% End of prior year - US$ 23,614 1,928 695 1,342 373 252 — (9) 149 186 — 28,530

% of total equity 82.6 % 6.8 % 2.5 % 4.7 % 1.3 % 0.9 % — % — % 0.5 % 0.7 % — %

Corporate

34

CorporateMANAGEMENT FEE AND INCENTIVE DISTRIBUTION

▪ Performance-based fees paid to Brookfield Asset Management on BPY’s interests in Brookfield Asset Management-sponsored funds are offset against the incentive distribution. The amount available for the offset is calculated as the accumulated performance fees incurred since BPY’s spin-out in April 2013, less any prior gross incentive distribution offsets taken.

Management Fee(US$ Millions, except per unit amounts) No. of units Price Amount Current market value 933.9 $ 11.59 $ 10,826 Preferred equity units 2,436 Recourse debt, net of cash 3,409 Current market capitalization 16,671 Less: initial capitalization 11,468

Increased market capitalization $ 5,203 Minimum fee 14.1 Fee on increased market capitalization 16.3

Available creditable operating payments (11.2)

Total Management Fee $ 19.2

▪ Our total management fee paid in the third quarter of 2020 was $19.2M compared to $14.1M in the prior quarter and $32.6M in the prior year

Incentive Distribution(US$ Millions, except per unit amounts) Per unit Participation(1) AmountCurrent annual distribution 1.33First distribution hurdle >1.10 15 % 4.1 Second distribution hurdle >1.20 25 % 10.0 Incentive distribution 14.1

Fee credits(2) (14.1)

Incentive distribution $ — (1) Incentive distributions based upon increases in distributions paid to unitholders over pre-defined thresholds - 15% participation by Brookfield in distributions over $1.10 per unit - 25% participation by Brookfield in distributions over $1.20 per unitIncentive distributions equate to 18% and 33% of limited partner distributions increases over the first and second hurdles, respectively(2) BPY has $131M of credits, which represent incentive fees paid on investments in Brookfield-sponsored funds, that are available to offset current and future incentive distributions

35

RESULTS FROM OPERATIONSAppendix A

Quarter-to-date Year-to-dateIFRS Proportionate IFRS Proportionate

(US$ Millions) Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2020 Sep. 30, 2019

Commercial property and hospitality revenue $ 1,545 $ 1,852 $ 1,303 $ 1,440 $ 4,666 $ 5,706 $ 3,980 $ 4,374 Commercial property and hospitality expense (677) (776) (525) (527) (1,998) (2,403) (1,512) (1,602) NOI 868 1,076 778 913 2,668 3,303 2,468 2,772 Share of equity accounted income - FFO 151 177 — — 516 622 — — Investment and other income 30 98 48 88 120 211 156 160 Fee revenue 56 67 55 79 169 189 167 237 Interest expense (642) (738) (517) (571) (1,950) (2,194) (1,541) (1,637) Depreciation of non-real estate assets (18) (14) (13) (10) (53) (45) (36) (31) General and administrative expense (205) (214) (186) (195) (596) (656) (544) (585) Non-controlling interests (106) (191) (31) (43) (296) (620) (92) (106) FFO 134 261 134 261 578 810 578 810 Depreciation of non-real estate assets 13 10 13 10 36 31 36 31 Transaction costs(1) 7 35 7 35 5 72 5 72 Gains/losses on non-investment properties — 1 — 1 3 — 3 — Imputed interest(2) 5 15 5 15 21 42 21 42 BSREP III earnings(3) 2 2 2 2 5 11 5 11 Company FFO 161 324 161 324 648 966 648 966 Company FFO and realized LP Investments gains(4) 164 324 164 324 665 1,053 665 1,053 FFO 134 261 134 261 578 810 578 810 Depreciation of real estate assets (65) (72) (22) (26) (200) (211) (68) (75) Fair value gains, net (156) 449 (305) 322 (1,269) (273) (2,430) 315 Share of equity accounted income - non-FFO (75) 232 — — (1,233) 877 — — Income taxes (79) (191) (27) (109) (192) (217) (38) (92) Non-controlling interests 12 (205) (9) 26 348 (52) (10) (24) Net (loss) income attributable to Unitholders $ (229) $ 474 $ (229) $ 474 $ (1,968) $ 934 $ (1,968) $ 934 (1) Transaction costs primarily relate to acquisition costs and also include costs incurred on new financings(2) Represents imputed interest on commercial developments accounted for under the equity method under IFRS(3) BSREP III is accounted for as a financial asset which results in FFO being recognized only when distributions are received. This adjustment reflects our proportionate share of BSREP III's Company FFO(4) Realized LP investment gains are presented net of carried interest and other transaction costs

36

Appendix BFINANCIAL POSITION

IFRS Proportionate

(US$ Millions, except per unit amounts) Sep. 30, 2020Dec. 31,

2019Sep. 30,

2020Dec. 31,

2019AssetsCommercial properties $ 70,858 $ 71,565 $ 72,586 $ 71,794 Commercial developments 2,388 3,946 3,871 6,586 Equity accounted investments 19,573 20,764 — — Property, plant and equipment 4,980 7,278 2,670 2,534 Cash and cash equivalents 1,803 1,438 1,624 1,587 Other assets(1) 6,889 6,265 6,153 5,556 Assets held for sale 1,757 387 882 295 Total assets 108,248 111,643 87,786 88,352 LiabilitiesCorporate borrowings 2,721 1,902 3,417 2,050 Asset-level debt obligations 45,253 47,466 41,292 40,607 Subsidiary borrowings, non-recourse to BPY(2) 6,574 6,022 5,722 5,385 Capital securities 3,037 3,075 1,874 1,867 Deferred tax liabilities 2,615 2,515 1,614 1,631 Other liabilities(3) 5,784 5,588 4,698 4,659 Liabilities associated with assets held for sale 825 140 227 227 EquityPreferred equity - partnership 699 420 699 420 Preferred shares - subsidiaries 3,012 3,032 2,652 2,679 Non-controlling interests in subsidiaries and properties 12,439 12,953 302 297 Equity attributable to Unitholders 25,289 28,530 25,289 28,530 Total liabilities and equity 108,248 111,643 87,786 88,352 Unitholder equity per unit(4) $ 26.80 $ 29.72 $ 26.80 $ 29.72 (1) Other assets includes goodwill of $1,019M and $1,041M on an IFRS basis and $341M and $389M on a proportionate basis as at September 30, 2020 and December 31, 2019, respectively(2) Subsidiary borrowings includes GGP Inc. acquisition debt of $35M (L+225bps) maturing in 2021, $2,000M (L+225bps) maturing in 2023 and $1,955M (L+250bps) maturing in 2025 on an IFRS basis(3) Not included in other liabilities is an accrual of approximately $336M related to carried interest due to the general partner of Brookfield Asset Management-sponsored funds based on hypothetical liquidation of these funds as at September 30, 2020(4) Assumes conversion of mandatorily convertible preferred shares. Refer to page 17 for further detail

37

COMPANY FFO RECONCILIATIONAppendix C

Quarter-to-DateSep. 30, 2020 Core Office Core Retail LP Investments Corporate Total

(US$ Millions) FFO Adjustments CFFO FFO Adjustments CFFO FFO Adjustments CFFO FFO Adjustments CFFO FFO Adjustments CFFO NOI $ 322 $ — $ 322 $ 349 $ — $ 349 $ 107 $ — $ 107 $ — $ — $ — $ 778 $ — $ 778 Investment and other income 31 — 31 2 — 2 13 — 13 2 — 2 48 — 48 Fee revenue 29 — 29 25 — 25 1 — 1 — — — 55 — 55 BSREP III earnings — — — — — — — 2 2 — — — — 2 2 Interest expense (154) 6 (148) (208) — (208) (85) 2 (83) (70) — (70) (517) 8 (509) Depreciation and amortization of non-real estate assets (3) 3 — (6) 6 — (4) 4 — — — — (13) 13 —

General and administrative expense (68) — (68) (68) 1 (67) (18) 2 (16) (32) 1 (31) (186) 4 (182) Non-controlling interests (25) — (25) (4) — (4) (1) — (1) (1) — (1) (31) — (31)

FFO/Company FFO $ 132 $ 9 $ 141 $ 90 $ 7 $ 97 $ 13 $ 10 $ 23 $ (101) $ 1 $ (100) $ 134 $ 27 $ 161

38

ACQUISITION AND DISPOSITION ACTIVITY

DispositionsFor the three months endingSep. 30, 2020

Interest Sold BPY Direct InterestLP Investment

Fund InterestBPY Interest in

Fund% of BPY

Interest SoldProperty BPY Share

(US$, Millions) Assets Location Sales Price Sales Price Net Proceeds (USD)LP Investments

BSREP I 8 Various (US) 100 % 12 % 45 % 30 % 26 % $ 121 $ 31 $ 31 BSREP II 9 Various (US and Int'l) 80 % 13 % 87 % 27 % 27 % $ 74 $ 28 $ 21 BSREP III 2 Various (Int'l) 100 % — % 85 % 7 % 6 % $ 48 $ 3 $ 1 VAMF III 1 Various (US) 100 % — % 100 % 30 % 30 % $ 80 $ 24 $ 10

Total Dispositions 20 $ 63

Appendix D

AcquisitionsFor the three months endingSep. 30, 2020 BPY Direct

InterestLP Investment

Fund InterestBPY Interest

in FundBPY Ownership

AcquiredGross Purchase BPY Share

(US$, Millions) Assets Location Price Purchase PriceLP Investments

BSREP I 3 Various (US) 12 % 45 % 30 % 26 % $ 71 $ 18 BSREP II 3 Various (Int'l) — % 100 % 31 % 31 % $ 77 24 BSREP III 58 Various (Int'l) — % 100 % 7 % 7 % $ 296 $ 20

Total Acquisitions 64 $ 62

▪ During the third quarter we disposed of 20 assets for net proceeds of $63M.

39

GLOSSARY OF TERMS

Terms Description

Anchor Department stores whose merchandise appeals to a broad range of shoppers. Anchors either own their stores, the land under them and adjacent parking areas, or enter into long-term leases at rates that are generally lower than the rents charged to mall store tenants.

Average leasing net rent Average rent over the lease term on a per square foot basis including tenant expense reimbursements, less operating expenses being incurred for that space, but including the impact of straight-lining rent escalations or amortization of free rent periods.

Average rent Represents average rent over the term consisting of base minimum rent and common area costs.

Company FFO FFO before the impact of depreciation and amortization of non-real estate assets, transaction costs, gains (losses) associated with non-investment properties, imputed interest on equity accounted investments and the partnership’s share of BSREP III Company FFO. The partnership accounts for the investment in BSREP III as a financial asset and income (loss) of the fund is not presented in the partnership’s results. Distributions from BSREP III, recorded as dividend income under IFRS, are removed from investment and other income for Company FFO presentation.

DFC Deferred financing costs.

Expiring net rent Escalated cash rent at the end of the lease term on a per square foot basis including tenant expense reimbursements, less operating expenses being incurred for that space.

Expiring rent Represents rent at the end of the lease consisting of base minimum rent and common area costs.

Funds from Operations ("FFO") Income, including equity accounted income, before realized gains (losses) on investment property, fair value gains (losses) (including equity accounted fair value gains (losses)), unrealized fair value gains (losses) that arise as a result of reporting under IFRS, depreciation and amortization of real estate assets, income tax expense (benefit), and less non-controlling interests.

Gross Leasable Area ("GLA") Total gross leasable space at 100%.

In-place net rent For our office segment, the annualized amount of cash rent receivable from leases on a per square foot basis including tenant expense reimbursements, less operating expenses being incurred for that space, but excluding the impact of straight-lining rent escalations or amortization of free rent periods.

Leased Includes leases within definition of occupancy below, as well as leases and license agreements signed for vacant space but not yet paying rent

Mall and freestanding Inline mall shop and outparcel retail locations (locations that are not attached to the primary complex of buildings that comprise a shopping center). Excludes anchor stores.

Net Operating Income ("NOI") Revenues from commercial and hospitality operations of consolidated properties less direct property expenses.

Office (as defined by Core Retail segment only) Leasable office space, either peripheral to a retail center or a stand-alone office building without a retail component.

Occupancy (as defined by Core Retail segment only)

Includes leases as defined in permanent occupancy, as well as cancelable license agreements for greater than or equal to 1 year where tenants are either physically in the space, paying rent but vacated, or paying rent but not yet opened.

Operating Entity Subsidiaries of the operating partnership that hold interests, directly or indirectly, in BPY's real estate assets other than entities in which such subsidiaries hold interests for investment purposes only of less than 5% of the equity securities.

Operating partnership Brookfield Property L.P.

Permanent occupancy Includes leases where tenants are either physically in the space, paying rent but vacated, or paying rent but not yet opened

Proportionate Reflects proportionate share of the operating subsidiaries attributable to Unitholders.

Realized LP Investment gains Income earned on investing activity when fund investments are realized, inclusive of associated change in carried interest to be due at a future date to the general partner of the relevant Brookfield Asset Management-sponsored funds

Specialty leasing Temporary tenants on license agreements (as opposed to leases) with terms in excess of twelve months. License agreements are cancellable by the company with 60 days notice.

Strip center An attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores.

Tenant sales per square foot Comparative rolling twelve month sales for inline mall tenants that opened at less than 10,000 square feet.

Unitholders Refers to holders of general partnership and limited partnership units of BPY, limited partner units of the operating partnership, limited partner units of Brookfield Office Properties Exchange LP, FV LTIP units of the operating partnership and Class A shares of Brookfield Property REIT Inc.

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