Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Property Partners — SPAC Merger (April 2013)
42 slides from Brookfield's SPAC merger presentation, April 2013
Slide 1: Brookfield Property Partners L.P. Corporate Profile April 2013
2013 APRIL BROOKFIELD PROPERTY PARTNERS L.P. CORPORATE PROFILE
Slide 2: Contents
Turn to pages 39-41 for Important Cautionary Notes regarding this corporate profile Contents Pages Formation 3–5 Overview 6 – 14 Value Proposition & Strategy 15 – 27 Brookfield Advantage 28 – 32 Management Team/Contacts 33 – 34 Appendices/Case Studies 35 – 38 Important Cautionary Notes 39 – 41 2
Slide 3: Formation
Brookfield Property Partners Formation
Slide 4: Property Partners' formation continues strategy to simplify Brookfield's structure
Brookfield Property Partners’ formation is the continuation of our strategy to simplify Brookfield’s structure and maximize its capital flexibility Brookfield Asset Management (“Brookfield”) $18 billion equity base $181 billion AUM 28% 68% 92.4% 100% Flagship Brookfield Brookfield Brookfield Brookfi
Slide 5: Property Partners represents a pure real estate investment opportunity
Brookfield Property Partners, the next step in this strategy, represents a pure real estate investment opportunity Brookfield’s Previously Launched Market Compound Flagship Listed Entities Capitalization(1) Years Listed Annual Return Brookfield Infrastructure (2) $7B 5 20% Brookfield Renewable Energ
Slide 6: Overview
Brookfield Property Partners Overview
Slide 7: Property Partners Value Proposition
Brookfield Property Partners Value Proposition • BPY is for real estate investors seeking diversified exposure to best in class property assets Unique Opportunity • Diversified by sector and geography • Managed by one of the most experienced and successful investment managers in the world One of the
Slide 8: BPY Growth Potential
Brookfield Property Partners Value Proposition BPY Growth Potential (1) Cap rate 5.7% Intrinsic value per unit at Dec. 31, 2012(2) $ 25 Add: Increase in cash flows through operating initiatives 7 Add: Development / redevelopment program valued @ 6% 3 Add: Capital recycling and new investments 2 Scal
Slide 9: Premier entity for diversified global real estate exposure
Premier entity for investors seeking diversified global real estate exposure Diversity across geographies and property sectors reduces earnings volatility and provides access to a broader universe of investment opportunities Invested Capital by Sector (1) Invested Capital by Geography (1) Multi- Oth
Slide 10: Invested in over $90 billion of assets (gross)
Invested in over $90 billion of assets (gross) 30 offices or locations | ~250 investment professionals | ~15,000 operating employees Canada UK & Western Europe Australia 44 RE Professionals 34 RE Professionals 30 RE Professionals 2,350 RE Employees 2,390 RE Employees 1,605 RE Employees United States
Slide 11: Highly diversified, global owner, operator and investor in premier property assets
Highly diversified, global owner, operator and investor in premier property assets BROOKFIELD PROPERTY PARTNERS $31.2B assets(1) $13.1B invested capital(2) OFFICE RETAIL MULTI-FAMILY & INDUSTRIAL OTHER 124 properties, 80 msf 170 properties, 156 msf 15,600 multifamily units 11 msf office and other as
Slide 12: Selected Balance Sheet Highlights by Segment
Selected Balance Sheet Highlights by Segment For the year ended December 31, 2012 (US$ millions) Proportionate Pro-forma(1) Unaudited $ $/per unit Assets Office $ 16,349 $ 34 Retail 11,380 24 Multi-family & Industrial 1,072 2 Other 2,106 4 Total Assets $ 30,907 $ 65 Liabilities Office $ 8,531 $ 18 R
Slide 13: Income Statement Reconciliation
Income Statement Reconciliation For the year ended December 31, 2012 Income Statement (US$ millions) Proportionate Unaudited Pro forma IFRS(1) Proportionate Pro forma(2) Adjustments(2) $ $/per unit Commercial property revenue $ 2,780 $ (523) $ 2,257 $ 4.76 Hospitality revenue 743 (507) 236 0.50 Dire
Slide 14: Selected Income Statement Highlights by Segment
Selected Income Statement Highlights by Segment For the year ended December 31, 2012 (US$ millions) Proportionate Pro-forma(1) Unaudited $ $/per unit Net Operating Income Office $ 830 $ 2 Retail 562 1 Multi-family & Industrial 14 - Other 53 - Net Operating Income $ 1,459 $ 3 - Funds from Operations
Slide 15: Value Proposition & Strategy
Brookfield Property Partners Value Proposition & Strategy
Slide 16: One of the world's largest publicly-traded commercial property companies
Brookfield Property Partners is one of the world’s largest and most experienced publicly‐traded commercial property companies Experienced Established capabilities management team Strong acquisition currency • Committed team with strong track • Long‐established experience Global scale record sourcing
Slide 17: Illustrative invested capital profile over time
Illustrative invested capital profile over time Current(1) Near-term goal(1) Long-term goal(1) Direct, Public, 14% 20% Funds, Direct, 8% 35% Public, 50% Direct, 55% Funds, 25% Public, 78% Funds, 15% (1) Invested capital is proportionate pro-forma equity attributable to LP units and REUs. 17
Slide 18: Public company investments provide operating scale and recurring income
Public company investments provide operating scale, predictable recurring income and a solid base from which to grow Company Listing Geographic BPY’s Invested Highlights focus capital (US$ millions) • Interests in 110 properties totaling 77 msf, including US, Canada, 10 msf of parking NYSE / TSX $5,
Slide 19: Private fund investments drive gains and capital to recycle
Private fund investments drive gains and capital to recycle for growth BPY’s BPY’s Type of Number invested committed Highlights fund of funds capital capital • Includes global flagship opportunity funds sponsored by Brookfield • Predecessor funds included: • North American opportunity funds, investe
Slide 20: Direct investments will scale future growth
Direct investments will scale future growth BPY’s Type of invested Highlights investment capital • The Canary Wharf Estate extends over 97 acres and is comprised of over 30 completed buildings and 200 shops, bars and restaurants within four retail malls. Approximately 15 million square feet of offic
Slide 21: Growth strategy: growth from new investment opportunities
Key aspects of Brookfield Property Partners’ growth strategy Growth from new investment opportunities • Acquire assets for value directly, through Brookfield sponsored funds, or through significant positions in public entities • BPY provides the opportunity for shareholders to participate in Brookfi
Slide 22: Growth strategy: proactive management of investments
Key aspects of Brookfield Property Partners’ growth strategy Optimize growth from proactive management of investments • Meaningful organic growth exists within current investments and businesses • “Built-in” growth from below market rents and contractual increases on leases • Leverage operating plat
Slide 23: Growth strategy: recycle capital for accretive growth
Key aspects of Brookfield Property Partners’ growth strategy Recycle capital for accretive growth • We acquire core quality assets on an opportunistic and core-plus return basis then • Add value through pro-actively managing our holdings then • Recycle capital and reformulate holdings to enhance val
Slide 24: Track record of successful capital recycling
Track record of successful capital recycling Over the past six years, Brookfield has deployed on average $2.6 billion annually to real estate transactions and completed 217 property dispositions totaling ~$7.6 billion Multiplex Olympia &York Australian Thakral Holdings (USA) U.S. BCE Development Cri
Slide 25: Recent Strategic Transactions - 2012
Recent Strategic Transactions - 2012 • Completed the acquisition of Thakral Holdings Group (now Wynyard Properties Holdings Group), a diversified Australian property company with ~$1 billion of assets, including a prime office site in Sydney Office • Acquired Hammerson’s London office portfolio enco
Slide 26: Development/Redevelopment Highlights
Development/Redevelopment Highlights • BPY and affiliates have a significant development and redevelopment pipeline, including office, retail, multi-family and industrial opportunities • Projects will be developed to enhance portfolio value on a selective basis when attractive risk-adjusted returns
Slide 27: Development/Redevelopment Highlights table
Development/Redevelopment Highlights(1) Area currently under Estimated NOI Estimated Number of development upon Estimated yield development cost sites/assets /redevelopment completion on cost ($M) (‘000 sq. ft.) ($M) Office United States 1 5,000 $ 310 $ 4,300 7.2% Canada 2 2,180 93 1,070 8.7% Austra
Slide 28: Brookfield Advantage
Brookfield Advantage
Slide 29: Access to Brookfield's global platform is a competitive advantage
Access to Brookfield’s global platform and expertise is a competitive advantage Brookfield is a global alternative asset manager with $181 billion AUM Brookfield profile Advantages to Brookfield Property Partners Global reach World class capabilities and capital relationships Strong presence in curr
Slide 30: Property Partners' relationship with Brookfield
Brookfield Property Partners’ relationship with Brookfield • Largest investor with an effective economic interest of approximately 92.4% (~$11B) Relationship with Brookfield after • General partner spin-off • BPY has a board of seven directors, the majority of whom are independent of Brookfield Rela
Slide 31: Security holders' and managers' interests are aligned
Security holders’ and managers’ interests are aligned • Base management fee +/- covers manager’s overhead • Equity enhancement and incentive distribution fees reward equity appreciation and dividend distribution increases only • Brookfield retains +/-$11B in invested equity in BPY making returns on
Slide 32: Brookfield is in for the long haul with $11B initial investment
Brookfield is in Brookfield Property Partners for the long haul, with an $11B initial investment and fees that align interests Brookfield Capital Investment Total Return Expected Annual Returns Expectations On Capital to Brookfield $11 billion 12% - 15% $1.2 - $1.5 billion Fee Returns to Brookfield
Slide 33: Management Team & Contacts
Brookfield Property Partners Management Team & Contacts
Slide 34: Investor Relations Contacts
Investor Relations Contacts Years in Contact Title industry/ E-Mail Address Phone Number with affiliates Ric Clark Chief Executive Officer 32/29 ric.clark@brookfield.com (212) 417.7063 Brian Kingston President & Chief Investment Officer 15/12 brian.kingston@brookfield.com (212) 979.1646 Steve Dougla
Slide 35: Appendices & Case Studies
Brookfield Property Partners Appendices & Case Studies
Slide 36: Infrastructure Partners Case Study
Brookfield Infrastructure Partners Case Study Transaction overview Value of Brookfield investment in BIP over time(1) • On January 31, 2008, Brookfield Asset Management announced the spin-off of Brookfield Infrastructure Partners LP (“BIP”), $2,000 $816 $1,858 Brookfield’s primary growth vehicle for
Slide 37: General Growth Properties Case Study
General Growth Properties (“GGP”) Case Study • GGP is the second largest retail property REIT in the U.S., with interests in 126 regional malls comprising of ~129 million square feet of gross leasable space • $545 sales per sq ft among U.S. malls • Interest in 18 malls in Brazil, totaling 6.6 msf In
Slide 38: Optimal Structure
Optimal Structure • Bermuda-based publicly traded partnership that owns holding corporations primarily in the U.S., Canada, Australia, Western Europe and Brazil • Favorable structure relative to MLPs(1) • Committed to structuring our activities to avoid generating income connected with the conduct o
Slide 39: Important Cautionary Notes
Brookfield Property Partners Important Cautionary Notes
Slide 40: Important Cautionary Notes
Important Cautionary Notes A registration statement containing important information relating to the securities described in this presentation has been filed with the United States Securities and Exchange Commission. This presentation does not provide full disclosure of all material facts relating t
Slide 41: Important Cautionary Notes
Important Cautionary Notes The forward-looking statements are based on Brookfield’s beliefs, assumptions and expectations of BPY’s future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible ev
Slide 42: Brookfield Property Partners
Brookfield Property Partners 2013
Brookfield Property Partners — SPAC Merger (April 2013) on 6ix