Brookfield Property Partners

INVESTOR DAY

SEPTEMBER 26 , 2019

2

Agenda

Overview and Twelve-Month Review Brian Kingston, Managing Partner & CEO

3

Building BusinessesNatalie Adomait, SVP, Portfolio Management

24

Brookfield’s Mixed-Use Development Capabilities Bea Hsu, SVP, Mixed-Use Development

34

Financial UpdateBryan Davis, Managing Partner & CFO

53

3

Overview and Twelve-Month Review

Brian Kingston

Managing Partner & CEO

4

We are Brookfield’s investment

partnership across all strategies in

real estate

5

We own one of the world’s largest, highest quality portfolios

FIRST CANADIAN PLACE

TORONTO

CANARY WHARF

LONDON

BROOKFIELD PLACE

NEW YORK

POTSDAMER PLATZ

BERLIN

FASHION SHOW

LAS VEGAS

6

41%

43%

16%

Office Retail LP Investments

2019

Multifamily

Logistics

Hospitality

Triple Net Lease

Self-Storage

Student Housing

Manufactured Housing

Mixed-Use

100%DIRECT

Invested Capital by Sector

7

Global investor with local expertise

1. At the Brookfield Property Group level which includes assets of BPY and Brookfield-managed funds.

2. Employee figures are as of December 31, 2018.

3. AUM in the Bahamas are included within our U.S. AUM figure.

ASIA PACIFIC

$14B

BRAZIL

$3B

EUROPE & MIDDLE EAST

$31B

CANADA

$9B

~$194B Total RE AUM1 | 30 Offices | ~19K Operating Employees2

UNITED STATES3

$137B

8

2019 accomplishments

Leasing • Completed over 19 million sf in Core Office + Core Retail

Development • Delivered over 5 million sf

Capital

Recycling• Realized $2 billion of net proceeds from asset sales

New Capital• Invested over $1 billion in new developments and $300 million in

acquisitions

9

OCT. 2014ACQUISITION DATE

$790MACQUISITION PRICE

$80MRENOVATION CAPITAL

~1,600APARTMENTS RENOVATED

17.3% / 2.1X TOTAL RETURN IRR / MOC

Manhattan Multifamily

Portfolio of five Class B multifamily properties with ~2,800 units located in

New York City

THE HERITAGE ROOSEVELT LANDINGS

10

COMPLETION DATE

September 2019

TOTAL AREA

2.1 million sq. ft

LEASING

86%

TOTAL COST

$1.9 billion

YIELD ON COST

6%

VALUE TODAY

$1.9 billion

1 Manhattan West

State of the art premier office tower in Manhattan

SEPT. 2019COMPLETION DATE

2.1M SFTOTAL AREA

86%LEASING

$1.9BTOTAL COST

6%YIELD ON COST

$2.9BSTABILIZED VALUE

~$1.0BUNREALIZED GAIN

11

100 Bishopsgate

1 million sf class AAA office tower in the city of London

DEC. 2019COMPLETION DATE

1M SFTOTAL AREA

83%LEASING

£800M TOTAL COST

7.9%YIELD ON COST

£1.5BSTABILIZED VALUE

~$1.0BUNREALIZED GAIN

12

Update on GGP acquisition

• Cost synergies to date

~$25 million

• Extended maturity on

$1 billion of acquisition

facility

• Developed targeted

redevelopment strategy

on select malls

ALA MOANA CENTER

HONOLULU

WOODLANDS MALL

HOUSTON

13

Mall Location

Projected

Spend Yield on Cost

Value

Creation Description

Ala Moana Center Honolulu, HI $1.2BN 5.4% $340M Residential

Stonestown Galleria San Francisco, CA $165M 7.7% $132M Retail, Residential

Northridge Fashion Center Los Angeles, CA $152M 6.8% $79M Retail, Residential

Perimeter Mall Atlanta, GA $110M 8.3% $58M Office, Retail

Streets at Southpoint Durham, NC $250M 6.9% $57MRetail, Residential,

Office, Hotel

Cumberland Mall Atlanta, GA $250M 7.0% $54MRetail, Residential,

Office

Shops at Merrick Park Coral Gables, FL $65M 9.2% $27M Hotel

Northpoint Mall Alpharetta, GA $83M 6.7% $19M Retail, Residential

Northbrook Court Chicago, IL $224M 5.1% $9M Retail, Residential

Total $2.5BN $775M

Near-term projects

14

Long-term projects

Mall Location

Projected

Spend Yield on Cost

Value

Creation Description

Stonestown Galleria San Francisco, CA $1.7BN 6.2% $740M Residential

Ala Moana Center Honolulu, HI $475M 6.0% $195M Residential

Park Meadows Denver, CO $100M 6.0% $33M Residential

Cumberland Mall Atlanta, GA $160M 7.8% $26M Hotel, Office

Otay Ranch Town Center Chula Vista, CA $86M 6.3% $23M Residential

Streets at Southpoint Durham, NC $68M 7.4% $12M Office

Total $2.6BN $1.0BN

15

Ala Moana Center – Honolulu, HI

16

Ala Moana Center – Honolulu, HI

EXISTING

POTENTIAL FUTURE

Short Term

• ~550 rental units with 20% affordable

• ~340 ultra-luxury condo/hotel units

Long Term

• Additional residential towers

17

Stonestown Galleria – San Francisco, CA

18

Stonestown Galleria – San Francisco, CA

Short Term

• Nordstrom and Macy’s box

redevelopments

Long Term

• Potential to unlock up to 2,400+ units

SHORT TERM

POTENTIAL FUTURE

19

Cumberland Mall – Atlanta, GA

20

Cumberland Mall – Atlanta, GA

Short Term

• Sears box redevelopment

• Re-zoning process underway

Long Term

• Office and hotel

EXISTING

POTENTIAL FUTURE

21

Outlook

Over the past five years, we have built the premier real

estate platform in the world

This platform allows us to buy, build and operate assets that

generate stable and growing cash flows

In a low interest rate environment, these assets will only

become more valuable in the future

22

POLLING QUESTION #1

Where do you see the yield on the U.S. 10-year

Treasury Note going in the next 12 months?

a. Up >50 bps

b. Up 25 bps

c. Unchanged

d. Down 25 bps

e. Down >50 bps

23

Cap Rate Environment

Office and retail cap rates have not yet adjusted to the current interest rate

environment

1. Source: Real Capital Analytics.

2. Source: U.S. Department of Treasury.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Office Cap Rates1 vs. US 10Yr2

Office 10Yr Note

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Mall Cap Rates1 vs. US 10Yr2

Mall 10Yr Note

24

Building Businesses

Natalie Adomait

SVP, Portfolio Management

25

Characteristics of our opportunistic investments

Multi-faceted

Transactions

Building

BusinessesMulti-faceted

Operationally

IntensiveContrarian

26

Global investment portfolio

$70B2019 Portfolio Company AUM

27

The Brookfield Advantage

120 years as an owner-operator of real

assets, allowing us to bring deep

operational expertise

28

Why we build businesses

Build Scale in Nascent Sectors or Regions

Secure Operational Control

Generate Premium Exit Value

29

Case Study: Student Roost

PITTODRIE STREET

ABERDEEN

30

Growth through consolidation

Achieved bed growth of +3.5x since initial acquisition

13 asset

portfolio

31

Building the business

Student Roost

Brand and

website launch

Internalized

Outsourced

Functions

Brookfield acquires

13 student housing

assets in the UK

Hired COO &

CFO

>450 FTE

Launched

Monthly

Reporting

Packs

Investment in

New IT Systems

Nov-17 Jan-18Apr-16

5,684Apr-17 Oct-17 May-Oct-18

32

65%

70%

75%

80%

Acquistion Apr-16 19/20 AY Forecast

NO

I M

arg

in

Bottom line cash flow growth through margin improvement

+600

bps

NOI Margin %

33

Set up to generate premium value on exit

73,000 beds

32,000 beds

20,850 beds

1

2

Top Direct Let U.K. Owners

3

Competitor #1

Competitor #2

34

Brookfield’s Mixed-Use Development Capabilities

Bea Hsu

SVP, Mixed-Use Development

35

Our Platform

and

Operations

Our

Pipeline

Our

Commitment

To Innovation

Creating

Value

Through

Placemaking

Mixed-use development overview

36

Our mixed-use development capabilities

directly reflect our core investment principle:

Enhancing asset value

through operations

37

Full lifecycle multidisciplinary capabilities

SITE ANALYSIS &

MASTER PLANNING

LAND-USE

ENTITLEMENTS

PLACEMAKING &

DESIGN

CONSTRUCTION

MANAGEMENT

MARKETING &

BRANDING

LEASING &

OPERATIONS

38

DIPLOMAT BEACH

HOLLYWOOD

ALA MOANA CENTER

HONOLULU

ATELIER

LOS ANGLES

ONE POST

SAN FRANCISCO

Full range of asset expertise

The breadth of our real estate portfolio is a key advantage to our development

platform, just as our development platform is a key advantage to our portfolio

Office

$79BAUM

• 259 properties

• 142 million sf

Retail

$60BAUM

• 150 properties

• 153 million sf

Multifamily

$15BAUM

• 66,000 owned units

• 205 assets

Residential (For Sale)

$13BDEVELOPED

• 88,000 lots and $3.7B

controlled

Hospitality

$4BAUM

• 119 hotels

• 21,400 rooms

STAPLETON

DENVER

39

90+YEARS

40+MILLION SF

DEVELOPED

90+YEARS

$12BDEVELOPED

60+YEARS

$13BDEVELOPED

40+YEARS

$5BDEVELOPED

Building on our shared history

150+DEVELOPMENT

PROFESSIONALS

1400OPERATING

EMPLOYEES

40

Corporate & regional offices

Corporate Offices

Regional Offices

41

Development pipeline

Corporate Offices Development

Regional Offices

42

Mall densification priority projects

36M+ SF Under Development

20M+ SF Active Construction

11M+ SF Planned Mall Densification

Corporate Offices Development

Regional Offices Mall Densification

43

755 South Figueroa – Los Angeles, California

784RESIDENTIAL UNITS

2M SFOFFICE SPACE

300,000 SFRETAIL

15CHEF-DRIVEN,

FAST-CASUAL EATERIES

$210MPROFIT POTENTIAL

(RESIDENTIAL)

44

5M – San Francisco, California

4-ACRESITE INCORPORATING

HISTORIC BUILDINGS

302RENTAL UNITS

648,000 SFOFFICE

49,000 SFGREEN SPACE

$385MPROFIT POTENTIAL

45

NewPark Mall – Newark, California

74-ACREREDEVELOPMENT

1,519RESIDENTIAL UNITS

450+HOTEL ROOMS

500,000 SFOFFICE SPACE

$285MPROFIT POTENTIAL

46

The pace of change is faster than ever

today…so we keep a high level of

commitment to innovation

47

Leading edge operations and technology

48

Our scale and skillsets allow us

to co-locate mutually accretive uses,

ultimately amplifying asset value

through placemaking

49

POLLING QUESTION #2

What rent premiums can landlords achieve in

walkable/mixed-use urban markets vs. suburban,

‘drive-only’ locations within the same metro area?

a. <50%

b. 50-60%

c. 60-70%

d. >70%

50

The quantifiable mixed-use premium

Rent premiums for office, retail and multifamily in walkable mixed-use/urban vs.

suburban “drive only” locations are on average 75% within the same metro area

Source: The George Washington University School of Business & Smart Growth America.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Re

nt P

rem

ium

Making Special Places Happen

53

Financial Update

Bryan Davis

Managing Partner & CFO

54

Growth in Core

Business

Liquidity from

LP Investments

Sustainability

Initiatives

55

Continuing to build our track record

(Per Unit)

• Annual CFFO growth of 5%

• CFFO + realized gains from LP earnings growth of 10%

• Annual distribution growth of 6%

$0

$1

$2

2014 2015 2016 2017 2018 LTM

Earnings Distributed Earnings Retained

56

Core business – what is our focus?

85% of our balance sheet is invested in core office, retail and multifamily

businesses

Target stabilized occupancy of 95%

Generate net operating income growth of 2-3% annually

Invest earnings back into properties to maintain them at high quality

Complete $7 billion active development pipeline on time and budget

Repay $2 billion of debt in core retail with equity from asset sales

57

Core business – how does this translate to $ and ¢ ?

Achieving same store growth and completion of development pipeline

significantly increases earnings and cash flows…

1. 2-3% annual same store growth and assumes we sell properties to repay $2 billion of retail acquisition debt.

2. Assumes cap rates stay consistent with current rates.

In US$ millions CURRENT

Net operating income (NOI)1 $ 3,100

Company funds from operations 1,450

Cash retained to invest in properties 500

Cash available for distributions 950

FIVE YEARS

$ 3,700

2,000

550

1,450 9%

…achieves a 9% total return2

4%

58

Core business – strengthens the balance sheet

Will also naturally de-lever our balance sheet

• Target earnings growth naturally de-levers balance sheet to <50% LTV

• Layering on the repayment of acquisition debt in core retail improves leverage even

further:

1. Assumes cap rates stay consistent with current rates.

In US$ millions CURRENT

Properties1 $ 66,000

Property-level debt 36,000

Equity 30,000

55%

FIVE YEARS

$ 73,000

33,000

40,000

45% 10%

…Capacity to raise $5 billion in incremental debt

59

Core business – active recycling improves returns

By maintaining investment-grade leverage metrics on each property (~50% LTV),

and redeploying the capital generated from the re-financings

Continuing to sell mature assets where we feel value is maximized and recycling

proceeds into accretive opportunities ($1 to $2 billion per year)

1. Assuming we reinvest capital raised and achieve a spread between yield on cash and value on stabilization.

…We can get to a 10-12% total return1

60

LP investments – what is our focus?

15% of our balance sheet is invested as an LP in “Brookfield-sponsored” real

estate funds that target opportunistic total returns

Monitoring performance of invested capital which targets 20% IRR

and 2.0X MOC

Matching future capital calls with capital returned from earlier

generation fund investments to self-fund

61

LP investments – liquidity generation

We committed over $5 billion in capital to these funds since 2012 and expect

a significant amount of liquidity to be returned as those funds mature…

1. LP investments in BSREP I, II and III including co-investments.

2. LP Investment in a retail portfolio in Brazil, real estate finance fund series, and multifamily fund series.

In US$ millions 2012-2018

Capital invested in BSREP series1 $ (2,900)

Profit earned 1,400

Net cash (outflow) inflow $ (1,500)

FIVE YEARS

$ 1,900

2,600

$ 4,500

In addition, we expect another $1.5 billion2 to be returned from other funds

investments, which combined provides significant liquidity to fund

distributions and future LP investments

62

POLLING QUESTION #3

How much do you consider an organization’s

ESG practices prior to making a new investment

in that company?

a. Not at all

b. It is of minor importance

c. It is of considerable importance

d. It is of paramount importance

63

Sustainability approach

Sustainability is an integral component of BPY’s long-term success1We strive to minimize the environmental impact of our operations and

explore ways to foster energy efficiency, conserve natural resources

and reduce waste2Using resources in a responsible manner preserves and protects the

environment and results in operational cost savings3

64

Core Office Core Retail LP Investments

Sustainability initiatives

We pursue sustainability objectives across our portfolio

Energy reduction

Water conservation

Recycling

Enhanced indoor air quality

Alternative transportation parking

Green cleaning materials

• Construct energy

efficient assets

• Reduce energy demand

through operations

• Lower our carbon

footprint

• Deliver a superior tenant

comfort experience

• Use solar energy

• Reduce heating, cooling

costs

• Waste management

• Engage with tenants

and guests

• Implement sustainable

technologies

• Monitor energy

efficiency

• Apply best practices

• Support asset-level

engagement

65

Sustainability leadership

• Seek environmental certifications

• Participate in the Global Real Estate Sustainability Benchmark

• Our commitment to sustainable practices has earned us recognition

• Issued the first ever perpetual green units in our industry in August 2019

• Our retail business is among the highest users of solar technology in the U.S.

• Participate in green industry organizations and support new initiatives to foster

energy and resource efficient operations

66

BPY is a compelling investment opportunity

1. Using forecasted CFFO and current trading multiple and 5% distribution growth over a 5-year period.

2. Using forecasted NOI at various cap rates and 5% distribution growth over a 5-year period.

• An investment today has the

potential to offer a very

attractive return to shareholders

• Yield backed by cash flow from a

portfolio of high-quality assets

• Entry point at discount to average

analyst NAV

• Potential for significant

appreciation

Investment / Cash Distributions

$ 20

5% Cap 2Today

$ 55

Future 1,2

$ 20

$ 28

14%IRR

Current Multiple

4% Cap 2

Low Rate Environment

+$45

+$65

24%IRR

33%IRR

67

Q & A

68

Notice to Recipients

All amounts are in U.S. dollars unless otherwise

specified. Unless otherwise indicated, the statistical and

financial data in this document is presented as of June

30, 2019.

This presentation 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”.

Forward-looking statements include, without limitation,

statements about target earnings, realized gains and

distribution growth, the growth potential of our existing

and new investments, return on invested capital, gains on

mark-to-market releasing and occupancy, targeted same-

store growth and returns on redevelopment and

development projects, the availability of suitable

investment opportunities, the ability to obtain approvals

and execute on planned development and redevelopment

projects, and the availability of financing and our

financing strategy.

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;

the ability to enter into new leases or renew leases on

favorable 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 and hurricanes; and other risks and

factors detailed from time to time in our documents filed

with the securities regulators in Canada and the United

States.

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.

In considering investment performance information

contained herein, prospective investors should bear in

mind that past performance is not necessarily indicative

of future results and there can be no assurance that

comparable results will be achieved, that an investment

will be similar to the historic investments presented herein

(because of economic conditions, the availability of

investment opportunities or otherwise), that targeted

returns, diversification or asset allocations will be met or

that an investment strategy or investment objectives will

be achieved.

This presentation includes estimates regarding market

and industry data that is prepared based on its

management's knowledge and experience in the markets

in which we operate, together with information obtained

from various sources, including publicly available

information and industry reports and publications. While

we believe such information is reliable, we cannot

guarantee the accuracy or completeness of this

information and we have not independently verified any

third-party information.

This presentation makes reference to net operating

income (“NOI”), funds from operations (“FFO”), and

Company funds from operations (“CFFO”). NOI, FFO and

CFFO do not have any standardized meaning prescribed

by International Financial Reporting Standards (“IFRS”)

and therefore may not be comparable to similar measures

presented by other companies. The Partnership uses

NOI, FFO and CFFO to assess its operating results.

These measures should not be used as alternatives to

Net Income and other operating measures determined in

accordance with IFRS but rather to provide supplemental

insights into performance. Further, these measures do

not represent liquidity measures or cash flow from

operations and are not intended to be representative of

the funds available for distribution to unitholders either in

aggregate or on a per unit basis, where presented.

For further reference, specific definitions of NOI, FFO,

and CFFO are available in the Partnership’s press

releases announcing its financial results each quarter.

Brookfield Property Partners

INVESTOR DAY

SEPTEMBER 26 , 2019