UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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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):
November 1, 2018

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Brookfield Property REIT Inc.
(Exact name of registrant as specified in its charter)

 

Delaware 001-34948 27-2963337
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

 

250 Vesey Street, 15th Floor, New York, NY 10281
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (212) 417-7000

 

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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))

 

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 November 1, 2018, Brookfield Property REIT Inc. (the “Company”) disclosed the following financial information:

 

The following is the Company’s balance sheet as at September 30, 2018 and December 31, 2017.

 

 

Brookfield Property REIT Inc.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

   September 30, 2018   December 31, 2017 
   (Dollars in thousands) 
Assets:        
Investment in real estate:          
Land  $ 2,745,90 5   $4,013,874 
Buildings and equipment   11,005,853    16,957,720 
Less accumulated depreciation   (2,183,128)   (3,188,481)
Construction in progress   525,169    473,118 
Net property and equipment   12,093,799    18,256,231 
Investment in Unconsolidated Real Estate Affiliates   5,197,113    3,377,112 
Net investment in real estate   17,290,912    21,633,343 
Cash and cash equivalents   260,716    164,604 
Accounts receivable, net   221,535    334,081 
Notes receivable   335,943    417,558 
Deferred expenses, net   164,228    284,512 
Prepaid expenses and other assets   292,746    494,795 
Deferred tax assets, net   591,589    18,633 
Total assets  $19,157,669   $23,347,526 
Liabilities:          
Mortgages, notes and loans payable  $13,012,731   $12,832,459 
Investment in Unconsolidated Real Estate Affiliates   123,701    21,393 
Accounts payable and accrued expenses   876,166    919,432 
Dividend payable   3,942    219,508 
Junior subordinated notes   206,200    206,200 
Total liabilities   14,222,740    14,198,992 
Redeemable equity interests   3,080,808    — 
Redeemable noncontrolling interests   73,581    248,126 
Total redeemable interests   3,154,389    248,126 
Equity:          
Total stockholders' equity   239,442    8,795,660 
Noncontrolling interests   1,541,098    104,748 
Total equity   1,780,540    8,900,408 
Total liabilities, redeemable interests, equity and Noncontrolling interests  $19,157,669   $23,347,526 

 

 

 

 

The following is the Company’s income statement for the three and nine months ended September 30, 2018 and September 30, 2017.

 

Brookfield Property REIT Inc.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

                 
   Three Months Ended September 30,   Nine Months Ended September 30, 
   2018   2017   2018   2017 
   (Dollars in thousands) 
Revenues:                
Minimum rents  $309,983   $363,857   $1,057,817   $1,062,075 
Tenant recoveries   133,103    160,755    446,260    485,737 
Overage rents   4,681    4,582    14,853    13,799 
Management fees and other corporate revenues   30,483    28,806    82,278    77,797 
Other   14,899    20,357    49,250    61,079 
Total revenues   493,149    578,357    1,650,458    1,700,487 
Expenses:                    
Real estate taxes   55,081    61,516    177,417    178,053 
Property maintenance costs   8,381    10,281    34,070    35,980 
Marketing   1,801    1,744    4,961    5,185 
Other property operating costs   66,327    75,848    209,832    214,742 
Provision for doubtful accounts   3,517    2,152    9,180    8,769 
Property management and other costs   43,763    35,195    119,932    115,334 
General and administrative   15,947    12,037    40,235    42,582 
Costs related to the BPY Transaction   204,159    —    204,159    — 
Provision for impairment   7,487    —    45,866    — 
Depreciation and amortization   156,401    161,278    515,437    505,875 
Total expenses   562,864    360,051    1,361,089    1,106,520 
Operating income (loss)   (69,715)   218,306    289,369    593,967 
Interest and dividend income   7,240    15,948    25,906    51,336 
Interest expense   (144,632)   (135,980)   (423,120)   (402,512)
Gain on foreign currency   —    3,889    —    3,195 
Gain on extinguishment of debt   —    —    —    55,112 
Gain from changes in control of investment properties and other, net   2,850,017    95,165    2,862,681    79,325 
Income before income taxes, equity in income of Unconsolidated Real Estate Affiliates and allocation to noncontrolling interests   2,642,910    197,328    2,754,836    380,423 
Benefit from (provision for) income taxes   570,716    (6,993)   571,018    (15,347)
Equity in income of Unconsolidated Real Estate Affiliates   20,336    35,937    59,206    99,884 
Unconsolidated Real Estate Affiliates - gain on investment, net   478,293    —    488,654    — 
Net income   3,712,255    226,272    3,873,714    464,960 
Allocation to noncontrolling interests   (28,981)   (3,492)   (32,790)   (9,157)
Net income attributable to Brookfield Property REIT Inc.   3,683,274    222,780    3,840,924    455,803 
                     

 

 

 

 

 

 

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.
   
Date: November 1, 2018 By: /s/ Michelle Campbell
  Name: Michelle Campbell
  Title: Secretary