BROOKFIELD PROPERTY PARTNERS L.P. Q2 2017 Supplemental .../media/Files/B/... · BROOKFIELD PROPERTY...

BROOKFIELD PROPERTY PARTNERS L.P.

Q2 2017 Supplemental

NYSE: BPY TSX: BPY.UN

Information

1

FORWARD-LOOKING STATEMENTS

This supplemental information package contains “forward-looking information” within the meaning of Canadian provincial securities laws and applicable regulations and forward-looking statements within the meaning of “safeharbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, includestatements 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 forNorth 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 readershould 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 actualresults, 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 propertiesincluding 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 favourableterms; 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 ofreal 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 ofinternational 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 abilityto 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; andother 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 foregoingfactors 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 aresult 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 termsdo 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 measurespresented 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 FFOincludes 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 investmentproperty, 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 byNAREIT, 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 taxesthat 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 thepartnership 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 leasetermination 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 awidely 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 netincome 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) associatedwith non-investment properties, imputed interest and the FFO that would have been attributable to the partnership's shares of GGP Inc. ("GGP") if all outstanding warrants of GGP were exercised on a cashless basis. It alsoincludes dilution adjustments to undiluted FFO as a result of the net settled warrants. The partnership believes this adjustment appropriately reflects its full economic interest in GGP based on the common shares and warrantsowned by the partnership, as such warrants are currently exercisable. 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 mandatorilyconvertible 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 effectof mandatorily convertible preferred shares in the basic average number of units outstanding.

2

TABLE OF CONTENTS

Page PageSummary of Results Operating Statistics (cont'd)

Financial Overview 3 Core Office (cont'd)Business Overview 4 Summary of Properties 26Core Office 5 Historical Occupancy 27Core Retail 6 Historical Rents 28Opportunistic 7 Proportionate Leasing Activity 29Corporate 8 Proportionate Lease Expiry Analysis 31

Consolidated Overview Top Tenants 32Results from Operations 9 Development Sites 33Proportionate Results from Operations by Segment 10 Debt 34Financial Position 12 Core RetailProportionate Financial Position by Segment 13 Net Operating Income and Key Performance Metrics 37Proportionate Fair Value Continuity 14 Signed Leases and Lease Expiry Analysis 38Proportionate Summary Cash Flow Information and Liquidity 16 Top Tenants 39Proportionate Debt Summary 17 Development Sites 40Proportionate Capital Securities 18 OpportunisticProportionate Preferred Equity 19 Summary of Opportunistic Investments 41Per Unit Calculations 20 CorporateUnit Information 22 Foreign Currency Exposure 43

Operating Statistics Management Fee and Incentive Distribution 44Core Office Glossary of Terms 45

Net Operating Income 24

3

Summary of ResultsFINANCIAL OVERVIEW

Current Quarter HighlightsCompany FFO(1) Net income attributable to unitholders

Invested capital Quarter-to-date Year-to-date Quarter-to-date Year-to-date(US$ Millions) Jun. 30, 2017 Dec. 31, 2016 Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016Core Office $ 14,126 $ 14,626 $ 162 $ 150 $ 318 $ 299 $ 149 $ 271 $ (41) $ 354Core Retail 8,643 8,707 119 108 229 219 53 194 47 404Opportunistic 5,230 4,653 96 110 179 183 186 63 369 174Corporate (5,997) (5,628) (119) (118) (231) (234) (149) (179) (302) (332)Unitholder equity $ 22,002 $ 22,358 $ 258 $ 250 $ 495 $ 467 $ 239 $ 349 $ 73 $ 600

Key MetricsQuarter-to-date Year-to-date

(US$) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016Company FFO per unit(2) $ 0.37 $ 0.35 $ 0.70 $ 0.66Net income per unit(2) 0.34 0.49 0.10 0.84Company FFO and realized gains per unit(2,3) 1.39 0.52 2.01 1.26Distributions per unit(2) 0.30 0.28 0.59 0.56

(US$ Millions, except per unit amounts) Jun. 30, 2017 Dec. 31, 2016Unitholder equity per unit(4) $ 30.46 $ 30.72Commercial properties 51,642 50,811Commercial developments 4,829 5,126Total assets 66,251 64,547Corporate borrowings 1,230 1,152Funds subscription facilities 144 282Asset-level borrowings 28,797 27,415Subsidiary borrowings 1,489 1,324(1) A reconciliation of FFO to Company FFO is included on page 9(2) Per unit calculations are based on the basic number of units outstanding and detailed on pages 20 and 21(3) Realized gains for investment properties sold during the quarter represent difference between transaction price and invested capital. These gains have previously been recognized in earnings through fair valuegains, net(4)Assumes conversion of mandatorily convertible preferred shares. Refer to page 20 for further detail

4

Summary of ResultsBUSINESS OVERVIEW

Core Office

▪ 146 premier office properties totaling 99.4 million square feet in gateway markets including New York City, London,Toronto, Los Angeles, Sydney and Berlin.

▪ 10.6 million square feet of development projects currently underway.▪ Primarily consists of our wholly-owned subsidiary Brookfield Office Properties Inc. (“BPO”) and a 50/50 joint venture

interest in Canary Wharf Group plc (“Canary Wharf”), as well as urban multifamily development sites currently underconstruction.

Core Retail

▪ 126 best-in-class retail properties totaling 123.2 million square feet throughout the United States through our 33%fully-diluted interest in GGP.

Opportunistic

▪ Includes investments in Brookfield Asset Management-sponsored funds, through which we own interests in:▪ 114 office properties comprising 29.9 million square feet of office space in the United States, United Kingdom,

Brazil, India and South Korea.▪ Approximately 28.8 million square feet of retail space across 46 properties in the United States and in select

Brazilian markets.▪ Approximately 45 million square feet of industrial space across 179 properties, primarily consisting of modern

logistics assets in North America, Europe and China.▪ Approximately 30,400 multifamily units throughout the United States.▪ 19 hospitality properties in North America, Europe and Australia with over 13,800 rooms.▪ 338 properties leased to car dealerships in North America under triple net lease arrangements.▪ 201 self-storage properties comprising 14.8 million square feet across the United States.▪ 29 student housing properties with over 11,000 beds in the United Kingdom.▪ 135 manufactured housing communities with approximately 32,300 sites across the United States.

5

Highlights

▪ The Core Office business generated Company FFO of $162M inthe second quarter of 2017, compared to $150M in the sameperiod in 2016. The increase of $12M was driven mainly by incomeassociated with a legal settlement which contributed $32M duringthe quarter. Offsetting this was the impact of asset dispositions ofwhich the proceeds have been redeployed into higher-yieldingopportunistic investments. Additionally, foreign exchange had asignificant negative impact over the prior year due to the post-Brexit impact on the Great Britain Pound.

▪ Company FFO increased by $6M from the first quarter of 2017largely as a result of legal settlements mentioned above partiallyoffset by the impact of asset dispositions and vacancies.

▪ Company FFO and realized gains of $890M include gains earnedon the disposition of our interest in 245 Park Avenue in New Yorkduring the current quarter.

▪ Fair value gains primarily reflect improved market conditions andcash flows related to new leasing in Toronto, Sydney and MidtownNew York.

▪ Equity attributable to Unitholders decreased by $500M since theprior year-end primarily driven by distributions of capital raisedthrough the sale of our interest in 245 Park Avenue mentionedabove.

CORE OFFICE

Proportionate Results from OperationsQuarter-to-date Year-to-date

(US$ Millions) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016

Revenue $ 605 $ 629 $ 1,209 $ 1,259

Direct expenses (266) (259) (522) (521)

NOI 339 370 687 738

Investment and other income 15 8 43 13

Fee revenue 13 17 27 31

Interest expense (128) (170) (286) (341)

General and administrative expense (51) (50) (102) (92)

Non-controlling interests (26) (25) (51) (50)

Company FFO 162 150 318 299

Company FFO and realized gains 890 237 1,249 665

FFO 148 159 295 303

Fair value (losses), net 26 158 (205) 98

Income taxes (36) (48) (137) (58)

Non-controlling interests 11 2 6 11

Net income attributable to Unitholders $ 149 $ 271 $ (41) $ 354

Proportionate Financial Position(US$ Millions) Jun. 30, 2017 Dec. 31, 2016

Commercial properties $ 30,125 $ 30,159

Commercial developments 4,136 4,620

Cash and cash equivalents 644 599

Other assets 1,661 1,663

Assets held for sale 539 —

Total assets 37,105 37,041

Debt obligations 17,321 16,819

Capital securities — 297

Deferred tax liabilities 1,300 1,307

Other liabilities 1,874 1,836

Liabilities associated with assets held for sale 406 —

Total liabilities 20,901 20,259

Non-controlling interests 2,078 2,156

Equity attributable to Unitholders $ 14,126 $ 14,626

Summary of Results

6

CORE RETAIL

Highlights

▪ The Core Retail business generated Company FFO of $119M inthe second quarter of 2017, compared to $108M in the prior year,driven by $9M of income recognized on the sale of residentialcondominiums as well as 1% same-property NOI growth.

▪ Compared to the prior quarter, Company FFO increased by $9Mdue to the income from condominium sales mentioned above.

▪ Fair value losses primarily reflect valuation adjustments on lowerincome-earning properties.

▪ Equity attributable to Unitholders decreased by $64M comparedto December 31, 2016 due primarily to dividends of $113M,partially offset by positive net income.



Revenue $ 217 $ 215 $ 438 $ 443

Direct expenses (56) (54) (113) (113)

NOI 161 161 325 330


Fee revenue 6 5 14 11

Net contribution from GGP warrants 12 10 23 23




Company FFO 119 108 229 219

Company FFO and realized gains 115 121 225 256

FFO 119 99 218 202

Fair value (losses) gains, net (61) 95 (166) 199

Income taxes (4) 1 (4) 4


Net income attributable to Unitholders $ 53 $ 194 $ 47 $ 404



Commercial developments 153 123





Deferred tax liabilities — (6)

Other liabilities 666 838


Non-controlling interests 192 201


Summary of Results

7

Highlights

▪ Our Opportunistic business generated Company FFO of $96M inthe second quarter of 2017, compared to $110M in the prior year.The decrease was primarily driven by $21M of other incomeearned on develop-for-sale multifamily asset dispositions earnedin the prior period, partially offset by investment activity and same-store growth in our industrial, retail and Brazil and India officeportfolios.

▪ Investment activity in the last 12 months includes the followingacquisitions:

▪ A portfolio of six office assets in suburban Maryland in the secondquarter of 2016.

▪ A portfolio of 13 student housing properties in the United Kingdomin the second quarter of 2016 and an additional 16 propertiesacquired in the remainder of 2016 and the second quarter of 2017.

▪ The remaining interest in Rouse Properties, Inc. ("Rouse") notpreviously owned by us was acquired during the third quarter of2016.

▪ The International Finance Center ("IFC") mixed-use complex(office, retail, hospitality) in Seoul, South Korea in the fourthquarter of 2016.

▪ A portfolio of 135 manufactured housing communities and aportfolio of eight office properties both in the United States in thefirst quarter of 2017.

▪ Company FFO increased by $13M compared to the first quarterof 2017 primarily driven by the positive impact of seasonality inour UK hospitality assets and investment activity as noted above.

▪ Equity attributable to Unitholders increased by $577M, as a resultof income earned in the current period and incremental capitalinvested and the impact of foreign exchange, partially offset bydistributions.

OPPORTUNISTIC



Revenue $ 363 $ 350 $ 699 $ 659

Direct expenses (178) (187) (342) (348)

NOI(1) 185 163 357 311





Company FFO(1) 96 110 179 183

Company FFO and realized gains 90 127 176 211

FFO 80 101 149 165

Fair value gains, net 145 8 271 93

Income taxes (17) (22) (7) (27)

Depreciation of real estate assets (20) (25) (41) (47)

Non-controlling interests (2) 1 (3) (10)

Net income attributable to Unitholders $ 186 $ 63 $ 369 $ 174

(1) Please refer to pages 38 - 39 for additional information by asset class



Commercial developments 540 383

Property, plant and equipment 2,158 2,105



Assets held for sale 195 52



Capital securities 146 82

Other liabilities 911 719

Liabilities associated with assets held for sale 91 21




Summary of Results

8

CORPORATE

Highlights

▪ During the second quarter of 2017, Company FFO was $(119)Mas compared to $(118)M in the prior year.

▪ The decrease in equity of $369M compared to December 31, 2016was primarily the result of current period net losses anddistributions to unitholders, offset by the partial repayment of fundsubscription facilities.



Interest expense $ (67) $ (67) $ (131) $ (136)


Company FFO (119) (118) (231) (234)

Company FFO and realized gains (119) (118) (231) (234)

FFO (120) (120) (233) (236)

Fair value (losses) gains, net (17) (7) (26) 11

Income taxes (12) (52) (43) (107)

Net income attributable to Unitholders $ (149) $ (179) $ (302) $ (332)


Cash and cash equivalents $ 147 $ 125

Other assets 43 59

Total assets 190 184


Funds subscription facilities 144 282

Capital securities(1) 2,908 2,897

Deferred tax liabilities 637 431

Other liabilities 1,253 1,035



Equity attributable to Unitholders $ (5,997) $ (5,628)

(1) Refer to page 16 for details

Summary of Results

9

RESULTS FROM OPERATIONSConsolidated Overview

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

(US$ Millions)Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Commercial property and hospitality revenue $ 1,480 $ 1,282 $ 1,185 $ 1,194 $ 2,849 $ 2,494 $ 2,346 $ 2,361Commercial property and hospitality expense (689) (594) (500) (500) (1,321) (1,170) (977) (982)NOI 791 688 685 694 1,528 1,324 1,369 1,379Share of equity accounted income - FFO 248 220 — — 460 438 — —Investment and other income 28 39 41 64 54 64 80 87Fee revenue 11 11 19 22 22 21 41 42Interest expense (510) (401) (339) (364) (982) (817) (708) (729)Depreciation and amortization of non-real estate assets (11) (5) (7) (5) (17) (10) (13) (11)General and administrative expense (156) (138) (144) (143) (307) (269) (283) (275)Non-controlling interests (174) (175) (28) (29) (329) (317) (57) (59)FFO 227 239 227 239 429 434 429 434Depreciation and amortization of non-real estate assets 7 5 7 5 13 11 13 11Transaction costs(1) 2 10 2 10 16 19 16 19Gains/losses associated with non-investment properties 1 (14) 1 (14) — (20) — (20)Imputed interest(2) 9 — 9 — 14 — 14 —Net contribution from GGP warrants(3) 12 10 12 10 23 23 23 23Company FFO 258 250 258 250 495 467 495 467Company FFO and realized gains 976 367 976 367 1,419 898 1,419 898

FFO 227 239 227 239 429 434 429 434Depreciation and amortization of real estate assets (58) (56) (20) (25) (115) (115) (41) (47)Fair value gains, net 454 286 93 254 378 623 (126) 401Share of equity accounted income - non-FFO (55) 66 — — 66 (22) — —Income taxes (78) (141) (69) (121) (236) (228) (191) (188)Non-controlling interests (251) (45) 8 2 (449) (92) 2 —Net income attributable to Unitholders $ 239 $ 349 $ 239 $ 349 $ 73 $ 600 $ 73 $ 600(1) Transaction costs primarily relate to the acquisitions of opportunistic office and industrial portfolios and a manufactured housing portfolio(2) Represents imputed interest on commercial developments accounted for under the equity method under IFRS(3) Represents incremental FFO that would have been attributable to the partnership's shares of GGP, if all outstanding warrants of GGP had been exercised on a cashless basis. It alsoincludes the dilution adjustments to FFO as a result of the net settled warrants

10

Consolidated OverviewPROPORTIONATE RESULTS FROM OPERATIONS BY SEGMENT

Quarter-to-dateCore Office Core Retail Opportunistic Corporate Total


2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Commercial property and hospitality revenue $ 605 $ 629 $ 217 $ 215 $ 363 $ 350 $ — $ — $ 1,185 $ 1,194Commercial property and hospitality expense (266) (259) (56) (54) (178) (187) — — (500) (500)NOI 339 370 161 161 185 163 — — 685 694Investment and other income 14 20 13 12 14 32 — — 41 64Fee revenue 13 17 6 5 — — — — 19 22Interest expense (137) (170) (41) (58) (93) (69) (68) (67) (339) (364)Depreciation and amortization of non-real estateassets (4) (3) (2) (1) (1) (1) — — (7) (5)General and administrative expense (51) (50) (17) (19) (24) (21) (52) (53) (144) (143)Non-controlling interests (26) (25) (1) (1) (1) (3) — — (28) (29)FFO 148 159 119 99 80 101 (120) (120) 227 239Depreciation and amortization of non-real estateassets 4 3 2 1 1 1 — — 7 5Transaction costs 1 — (15) — 15 8 1 2 2 10Gains/losses associated with non-investmentproperties — (12) 1 (2) — — — — 1 (14)Imputed interest 9 — — — — — — — 9 —Net contribution from GGP warrants — — 12 10 — — — — 12 10Company FFO 162 150 119 108 96 110 (119) (118) 258 250Company FFO and realized gains 890 237 115 121 90 127 (119) (118) 976 367

FFO 148 159 119 99 80 101 (120) (120) 227 239Depreciation and amortization of real estate assets — — — — (20) (25) — — (20) (25)Fair value (losses) gains, net 26 158 (61) 95 145 8 (17) (7) 93 254Income taxes (36) (48) (4) 1 (17) (22) (12) (52) (69) (121)Non-controlling interests 11 2 (1) (1) (2) 1 — — 8 2Net income attributable to Unitholders $ 149 $ 271 $ 53 $ 194 $ 186 $ 63 $ (149) $ (179) $ 239 $ 349

11

Consolidated OverviewPROPORTIONATE RESULTS FROM OPERATIONS BY SEGMENT

Year-to-dateCore Office Core Retail Opportunistic Corporate Total


2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Jun. 30,

2017Jun. 30,

2016Commercial property and hospitality revenue $ 1,209 $ 1,259 $ 438 $ 443 $ 699 $ 659 $ — $ — $ 2,346 $ 2,361Commercial property and hospitality expense (522) (521) (113) (113) (342) (348) — — (977) (982)NOI 687 738 325 330 357 311 — — 1,369 1,379Investment and other income 41 25 17 20 22 42 — — 80 87Fee revenue 27 31 14 11 — — — — 41 42Interest expense (300) (341) (96) (116) (179) (136) (133) (136) (708) (729)Depreciation and amortization of non-real estateassets (7) (7) (3) (2) (3) (2) — — (13) (11)General and administrative expense (102) (93) (36) (37) (45) (45) (100) (100) (283) (275)Non-controlling interests (51) (50) (3) (4) (3) (5) — — (57) (59)FFO 295 303 218 202 149 165 (233) (236) 429 434Depreciation and amortization of non-real estateassets 7 7 3 2 3 2 — — 13 11Transaction costs 2 1 (15) — 27 16 2 2 16 19Gains/losses associated with non-investmentproperties — (12) — (8) — — — — — (20)Imputed interest 14 — — — — — — — 14 —Net contribution from GGP warrants — — 23 23 — — — — 23 23Company FFO 318 299 229 219 179 183 (231) (234) 495 467Company FFO and realized gains 1,249 665 225 256 176 211 (231) (234) 1,419 898

FFO 295 303 218 202 149 165 (233) (236) 429 434Depreciation and amortization of real estate assets — — — — (41) (47) — — (41) (47)Fair value (losses) gains, net (205) 98 (166) 199 271 93 (26) 11 (126) 401Income taxes (137) (58) (4) 4 (7) (27) (43) (107) (191) (188)Non-controlling interests 6 11 (1) (1) (3) (10) — — 2 —Net income attributable to Unitholders $ (41) $ 354 $ 47 $ 404 $ 369 $ 174 $ (302) $ (332) $ 73 $ 600

12

Consolidated OverviewFINANCIAL POSITION

IFRS Proportionate

(US$ Millions, except per unit amounts)Jun. 30,

2017Dec. 31,

2016Jun. 30,

2017Dec. 31,

2016Commercial properties $ 48,271 $ 45,699 $ 51,642 $ 50,811Commercial developments 2,974 3,085 4,829 5,126Equity accounted investments 17,493 16,844 — —Property, plant and equipment 5,476 5,357 2,263 2,187Participating loan interests 474 471 — —Cash and cash equivalents 1,754 1,456 1,304 1,227Other assets(1) 5,434 5,068 5,479 5,144Assets held for sale 934 147 734 52Total assets 82,810 78,127 66,251 64,547Corporate debt obligations 1,230 1,152 1,230 1,152Funds subscription facilities 392 828 144 282Asset-level debt obligations 33,263 30,070 28,797 27,415Subsidiary borrowings 1,551 1,469 1,489 1,324Capital securities 4,164 4,171 3,054 3,276Deferred tax liabilities 2,956 2,455 2,264 2,007Other liabilities 4,182 3,760 4,377 4,153Liabilities associated with assets held for sale 563 61 497 21Total liabilities 48,301 43,966 41,852 39,630Preferred shares 2,231 1,831 2,072 1,672Non-controlling interests in subsidiaries and properties 10,276 9,972 325 887Non-controlling interests 12,507 11,803 2,397 2,559Equity attributable to Unitholders $ 22,002 $ 22,358 $ 22,002 $ 22,358Unitholder equity per unit(2) $ 30.46 $ 30.72 $ 30.46 $ 30.72(1) Other assets includes GGP warrants of $1,152M and $1,254M at June 30, 2017 and December 31, 2016, respectively, as well as goodwillof $1,028M and $761M on an IFRS basis and $823M and $761M on a proportionate basis as of June 30, 2017 and December 31, 2016,respectively(2) Assumes conversion of mandatorily convertible preferred shares. Refer to page 20 for further detail

13

PROPORTIONATE FINANCIAL POSITION BY SEGMENT

Core Office Core Retail Opportunistic Corporate Total


2017Dec. 31,

2016Jun. 30,

2017Dec. 31,

2016Jun. 30,

2017Dec. 31,

2016Jun. 30,

2017Dec. 31,

2016Jun. 30,

2017Dec. 31,

2016Commercial properties $ 30,125 $ 30,159 $ 12,551 $ 12,512 $ 8,966 $ 8,140 $ — $ — $ 51,642 $ 50,811Commercial developments 4,136 4,620 153 123 540 383 — — 4,829 5,126Property, plant and equipment 90 82 15 — 2,158 2,105 — — 2,263 2,187Cash and cash equivalents 644 599 135 205 378 298 147 125 1,304 1,227Other assets 1,571 1,581 1,988 2,188 1,877 1,316 43 59 5,479 5,144Assets held for sale 539 — — — 195 52 — — 734 52Total assets 37,105 37,041 14,842 15,028 14,114 12,294 190 184 66,251 64,547Corporate debt obligations — — — — — — 1,230 1,152 1,230 1,152Funds subscription facilities — — — — — — 144 282 144 282Asset-level debt obligations 15,858 15,649 5,341 5,288 7,598 6,478 — — 28,797 27,415Subsidiary borrowings 1,463 1,170 — — 26 154 — — 1,489 1,324Capital securities — 297 — — 146 82 2,908 2,897 3,054 3,276Deferred tax liabilities 1,300 1,307 — (6) 327 275 637 431 2,264 2,007Other liabilities 1,874 1,836 666 838 584 444 1,253 1,035 4,377 4,153Liabilities associated with assets held forsale 406 — — — 91 21 — — 497 21Total liabilities 20,901 20,259 6,007 6,120 8,772 7,454 6,172 5,797 41,852 39,630Non-controlling interests 2,078 2,156 192 201 112 187 15 15 2,397 2,559Equity attributable to Unitholders $ 14,126 $ 14,626 $ 8,643 $ 8,707 $ 5,230 $ 4,653 $ (5,997) $ (5,628) $ 22,002 $ 22,358

Consolidated Overview

14

Consolidated OverviewPROPORTIONATE FAIR VALUE CONTINUITY

Quarter-to-dateBalance sheet

(US$ Millions) Mar. 31, 2017 Invest.(1) Acquisitions Dispositions Reclass FX Profit & Loss(2) Jun. 30, 2017Commercial properties

Core Office $ 29,666 $ 99 $ 15 $ — $ (15) $ 309 $ 51 $ 30,125Core Retail 12,545 74 75 (85) 35 (1) (92) 12,551Opportunistic 9,158 50 246 (15) (603) 18 112 8,966

51,369 223 336 (100) (583) 326 71 51,642Commercial developments

Core Office 4,253 273 — — (469) 90 (11) 4,136Core Retail 131 52 — — (30) — — 153Opportunistic 477 66 2 — (32) 6 21 540

4,861 391 2 — (531) 96 10 4,829Total investment properties $ 56,230 $ 614 $ 338 $ (100) $ (1,114) $ 422 $ 81 $ 56,471Other fair value (losses)(3) 12Total fair value (losses) $ 93

(1) Represents investments in our assets through capital expenditures and tenant improvements(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 ofchanges in discount and terminal capitalization rates(3) Other fair value (losses) primarily relate to mark-to-market adjustments on certain derivatives and our investment in GGP warrants

Valuation Metrics for Commercial PropertiesJun. 30, 2017 Mar. 31, 2017

(US$)Discount

rateTerminalcap rate

Hold period(years)

Capitali-zation rate

Impliedgoing-incapitali-

zation rate(1)

Impliedvalue per

leasable sq.ft./unit(2)

Discountrate

Terminal caprate

Hold period(years)

Capitali-zation rate

Impliedgoing-incapitali-

zation rate(1)

Impliedvalue per

leasable sq.ft./unit(2)

Core Office 6.5% 5.5% 11 4.1% $ 636 6.3% 5.5% 11 4.2% $ 631Core Retail 6.9% 5.4% 10 5.3% 901 7.4% 5.9% 10 5.3% 885Opportunistic Office 9.1% 6.9% 8 5.6% 198 9.0% 6.9% 8 5.8% 210Opportunistic Retail 10.0% 7.6% 11 6.3% 308 9.9% 7.7% 11 6.5% 367Industrial 7.0% 6.2% 10 5.8% 66 7.3% 6.4% 10 5.9% 58Multifamily 4.8% 5.1% 186 5.1% 4.9% 188Triple Net Lease 6.3% 6.4% 322 6.2% 6.3% 319Self-storage 5.7% 5.5% 115 5.7% 5.7% 113Student Housing 5.8% 5.6% 102 5.9% 5.7% 91Manufactured Housing 5.8% 6.6% 66 5.9% 6.7% 65

(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 24 and 37(2) For retail assets, the leasable square feet exclude anchors. For multifamily, student housing and manufactured housing assets, the relevant calculation compares the value of commercial properties to thenumber of units, beds or sites, respectively, rather than square feet

15

Consolidated OverviewPROPORTIONATE FAIR VALUE CONTINUITY(CONT'D)

Year-to-dateBalance sheet

(US$ Millions) Dec. 31, 2016 Invest.(1) Acquisitions Dispositions Reclass FX Profit & Loss(2) Jun. 30, 2017Commercial properties

Core Office $ 30,159 $ 257 $ 82 $ — $ (760) $ 645 $ (258) $ 30,125Core Retail 12,512 117 75 (85) 35 3 (106) 12,551Opportunistic 8,140 74 1,183 (107) (616) 107 185 8,966

50,811 448 1,340 (192) (1,341) 755 (179) 51,642Commercial developments

Core Office 4,620 554 — (325) (821) 119 (11) 4,136Core Retail 123 60 — — (30) — — 153Opportunistic 383 106 7 — (33) 17 60 540

5,126 720 7 (325) (884) 136 49 4,829Total investment properties $ 55,937 $ 1,168 $ 1,347 $ (517) $ (2,225) $ 891 $ (130) $ 56,471Other fair value (losses)(3) 4Total fair value (losses) $ (126)

(1) Represents investments in our assets through capital expenditures and tenant improvements(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 ofchanges in discount and terminal capitalization rates(3) Other fair value (losses) primarily relate to mark-to-market adjustments on certain derivatives and our investment in GGP warrants

16

Consolidated OverviewPROPORTIONATE SUMMARY CASH FLOW INFORMATION AND LIQUIDITY

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

(US$ Millions) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016Company FFO $ 258 $ 250 $ 495 $ 467Distributions paid (208) (200) (416) (399)Unit repurchases (11) (8) (112) (15)Investments (1,483) (1,148) (2,139) (1,980)Disposals 425 656 809 1,338Debt repayments (1,440) (1,561) (2,687) (3,803)Proceeds from financings 1,989 1,677 3,963 4,302Draws (repayments) on corporate and funds subscription facilities 487 680 537 202Proceeds from (purchase of) financial assets, net (56) (123) (90) (18)Change in working capital and other, net 61 (165) (283) 5Change in proportionate cash 22 58 77 99Proportionate cash at beginning of period 1,282 1,118 1,227 1,077Proportionate cash at end of period $ 1,304 $ 1,176 $ 1,304 $ 1,176

Proportionate Liquidity(US$ Millions) Jun. 30, 2017 Dec. 31, 2016Corporate cash and cash equivalents $ 147 $ 125Available committed corporate credit facilities 866 869Available subordinated credit facilities 268 253Corporate liquidity 1,281 1,247Proportionate cash retained at subsidiaries 1,157 1,102Proportionate availability under construction facilities 2,887 3,013Proportionate availability under subsidiary credit facilities 935 992Group-wide liquidity $ 6,260 $ 6,354

17

PROPORTIONATE DEBT SUMMARY

Jun. 30, 2017 Deferredfinancing

costs(US$ Millions) Avg. term Avg. rate Total 2017 2018 2019 2020 2021 Thereafter % FloatingCore Office 5.4 3.99% $ 17,321 $ 942 $ 2,661 $ 2,089 $ 2,388 $ 3,553 $ 5,840 $ (152) 44.4%Weighted average interest rate 3.99% 5.94% 3.58% 3.35% 3.35% 3.79% 4.44%% floating 44.4% 10.3% 80.6% 94.4% 64.5% 47.0% 8.0%Core Retail 5.0 4.10% 5,341 — 152 598 912 926 2,768 (15) 21.1%Weighted average interest rate 4.10% —% 3.52% 4.06% 3.87% 4.13% 4.21%% floating 21.1% —% 40.9% 45.2% 30.9% 44.7% 3.7%Opportunistic 4.4 4.57% 7,624 36 546 446 615 2,304 3,730 (53) 52.7%Weighted average interest rate 4.57% 4.15% 3.46% 3.66% 3.28% 5.24% 4.64%% floating 52.7% 58.3% 91.6% 83.2% 56.0% 47.4% 46.0%Corporate 2.6 2.74% 1,374 57 — — 1,324 — — (7) 100.0%Weighted average interest rate 2.74% 2.35% —% —% 2.76% —% —%% floating 100.0% 100.0% —% —% 100.0% —% —%Total 5.0 4.09% $ 31,660 $ 1,035 $ 3,359 $ 3,133 $ 5,239 $ 6,783 $ 12,338 $ (227) 44.9%Maturity as a % of total 100.0% 3.2% 10.5% 9.8% 16.4% 21.3% 38.8%Weighted average interest rate 4.09% 5.68% 3.56% 3.53% 3.28% 4.33% 4.45%


18


Cumulative(US$ Millions) Entity Authorized Outstanding dividend rate Jun. 30, 2017 Dec. 31, 2016Class A Preferred Equity Units Series 1 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.25% $ 546 $ 541Class A Preferred Equity Units Series 2 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.50% 526 522Class A Preferred Equity Units Series 3 (1) Brookfield Property L.P. 24,000,000 24,000,000 6.75% 514 511Class B Junior Preferred Shares Brookfield BPY Holdings Inc. 30,000,000 30,000,000 5.75% 750 750Class C Junior Preferred Shares Brookfield BPY Holdings Inc. 20,000,000 20,000,000 6.75% 500 500Class A Senior Preferred Shares Series 1 Brookfield Property Split Corp. 1,000,000 924,390 5.25% 23 24Class A Senior Preferred Shares Series 2 Brookfield Property Split Corp. 1,000,000 699,165 5.75% 13 13Class A Senior Preferred Shares Series 3 Brookfield Property Split Corp. 1,000,000 913,194 5.00% 17 17Class A Senior Preferred Shares Series 4 Brookfield Property Split Corp. 1,000,000 984,586 5.20% 19 19Class AAA Series G (2) Brookfield Office Properties Inc. 6,000,000 — 5.25% — 81Class AAA Series J(2)(3) Brookfield Office Properties Inc. 8,000,000 — 5.00% — 123Class AAA Series K(3) Brookfield Office Properties Inc. 8,000,000 — 5.20% — 93Class B Series 1(4) Brookfield Office Properties Inc. 3,600,000 3,600,000 70% of bank prime — —Class B Series 2(4) 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% 72 72Preferred Capital BSREP II RH B LLC — — 9.00% 64 —Preferred Shares BSREP II Vintage Estate Partners LLC 10,000 10,000 5.00% 10 10Total $ 3,054 $ 3,276

(1) Series 1, 2 and 3 are mandatorily convertible into units after seven, ten and twelve years, respectively(2) 4,123,863 shares of Series G and 2,804,795 shares of Series J shares were redeemed on June 5, 2017 at a price of $25.00 and C$25.00 respectively, per share plus accrued and unpaid dividends (3) 4,760,750 shares of Series J and 5,909,250 shares of Series K shares were redeemed on March 31, 2017 at a price of C$25.00 per share plus accrued and unpaid dividends(4) Class B capital securities are owned by Brookfield Asset Management. BPO has an offsetting loan receivable against these securities

PROPORTIONATE CAPITAL SECURITIES

19


Cumulative(US$ Millions) Entity Outstanding dividend rate Jun. 30, 2017 Dec. 31, 2016Class A Various BPY holding entities 200,004 5.00% $ 15 $ 15Class A redeemable voting(1) Brookfield Office Properties Inc. — 7.50% — —Class AA Series E(2) Brookfield Office Properties Inc. 299 70% of bank prime — —Class AAA Series N Brookfield Office Properties Inc. 11,000,000 3.78% 257 257Class AAA Series P Brookfield Office Properties Inc. 12,000,000 4.16% 287 287Class AAA Series R Brookfield Office Properties Inc. 8,883,425 4.16% 227 227Class AAA Series S Brookfield Office Properties Inc. 1,116,575 3.96% 14 14Class AAA Series T Brookfield Office Properties Inc. 10,000,000 4.60% 250 250Class AAA Series V(3) Brookfield Office Properties Inc. 1,290,789 70% of bank prime 18 18Class AAA Series W(4) Brookfield Office Properties Inc. 1,884,427 70% of bank prime 27 27Class AAA Series X(5) Brookfield Office Properties Inc. — 30-day BA+ 0.4% — —Class AAA Series Y(6) Brookfield Office Properties Inc. 1,242,911 70% of bank prime 18 18Class AAA Series Z(7) Brookfield Office Properties Inc. 600,000 30-day BA+ 0.4% 7 7Class AAA Series AA Brookfield Office Properties Inc. 12,000,000 4.75% 261 261Class AAA Series CC Brookfield Office Properties Inc. 8,000,000 6.00% 155 155Class AAA Series EE Brookfield Office Properties Inc. 11,000,000 5.10% 206 —Class AAA Series GG Brookfield Office Properties Inc. 11,000,000 4.85% 196 —Series A Brookfield DTLA Fund Office Trust Investor Inc. 9,357,465 7.63% 134 130Various IDI Realty, LLC — 6Total $ 2,072 $ 1,672

(1) As of June 30, 2017, BPY and its subsidiaries own all 13,797,320 of the Class A redeemable voting preferred shares, which has been reflected as a reduction in outstanding shares(2) BPY and its subsidiaries own 1,999,701 of the Class AA Series E preferred shares, which has been reflected as a reduction in outstanding shares(3) 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(4) 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(5) BPY and its subsidiaries own all 300 of the Class AAA Series X preferred shares, which has been reflected as a reduction in outstanding shares(6) 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(7) 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

PROPORTIONATE PREFERRED EQUITY

20

Consolidated OverviewPER UNIT CALCULATIONS

Book Value per UnitJun. 30, 2017 Dec. 31, 2016

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

units Per unit Unitholder equityNumber of

units Per unitBasic book value per unit $ 22,002 704.5 $ 31.23 $ 22,358 709.1 $ 31.53Dilutive effect of conversion of preferred shares(1) 1,586 70.0 22.66 1,574 70.0 22.49

23,588 774.5 30.46 23,932 779.1 30.72Dilutive effect of conversion of capital securities(2) 375 17.8 21.07 671 33.2 20.21Fully diluted book value per unit $ 23,963 792.3 $ 30.24 $ 24,603 812.3 $ 30.29(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 thetime of issuance(2) Certain series of capital securities can be settled in cash, at the option of the partnership or its subsidiaries which issued such capital securities, which has been the past practice of the partnership and itssubsidiaries to avoid dilution associated with issuing units

Company FFO per UnitQuarter-to-date

Jun. 30, 2017 Jun. 30, 2016

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

Averagenumber of

units Per unit Company FFO

Average number of

units Per unitBasic $ 258 704.6 $ 0.37 $ 250 711.2 $ 0.35Dilutive effect of conversion of preferred shares(1) 29 70.0 0.41 29 70.0 0.41

287 774.6 0.37 279 781.2 0.36Dilutive effect of conversion of capital securities and options 7 22.3 0.31 10 37.3 0.27Fully-diluted per Management $ 294 796.9 $ 0.37 $ 289 818.5 $ 0.35(1) 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

Jun. 30, 2017 Jun. 30, 2016

(US$ Millions, except per unit amounts)

Net incomeattributable to

Unitholders

Averagenumber of

units Per unit


UnitholdersAverage number

of units Per unitBasic(1) $ 239 704.6 $ 0.34 $ 349 711.2 $ 0.49Dilutive effect of conversion of preferred shares(2) 29 70.0 0.41 29 70.0 0.41

268 774.6 0.35 378 781.2 0.48Dilutive effect of conversion of capital securities and options 7 22.3 0.31 10 37.3 0.27Fully-diluted per Management $ 275 796.9 $ 0.35 $ 388 818.5 $ 0.47Fully-diluted per IFRS(3) $ 246 796.9 $ 0.31 $ 359 818.5 $ 0.44(1) 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 incomeper unit per IFRS for the three months ended June 30, 2017 was $(0.31) (2016 – $0.45)(2) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(3) Excludes the add back to earnings of the carry on the mandatorily convertible preferred shares, as required under IFRS

21

Consolidated OverviewPER UNIT CALCULATIONS

Company FFO per UnitYear-to-date

Jun. 30, 2017 Jun. 30, 2016

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

Averagenumber of

units Per unit Company FFO

Average number of

units Per unitBasic $ 495 705.7 $ 0.70 $ 467 711.2 $ 0.66Dilutive effect of conversion of preferred shares(1) 58 70.0 0.83 58 70.0 0.83

553 775.7 0.71 525 781.2 0.67Dilutive effect of conversion of capital securities and options 16 28.2 0.57 21 37.1 0.57Fully-diluted per Management $ 569 803.9 $ 0.71 $ 546 818.3 $ 0.67(1) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry

Net Income per UnitYear-to-date

Jun. 30, 2017 Jun. 30, 2016

(US$ Millions, except per unit amounts)


Unitholders

Averagenumber of

units Per unit


UnitholdersAverage number

of units Per unitBasic(1) $ 73 705.7 $ 0.10 $ 600 711.2 $ 0.84Dilutive effect of conversion of preferred shares(2) 58 70.0 0.83 58 70.0 0.83

131 775.7 0.17 658 781.2 0.84Dilutive effect of conversion of capital securities and options 16 28.2 0.57 21 37.1 0.57Fully-diluted per Management $ 147 803.9 $ 0.18 $ 679 818.3 $ 0.83Fully-diluted per IFRS(3)(4) $ 73 775.9 $ 0.09 $ 621 818.3 $ 0.76(1) 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 incomeper unit per IFRS for the six months ended June 30, 2017 was $0.09 (2016 – $0.77)(2) Represents preferred shares that are mandatorily convertible into units at a price of $25.70 and the associated carry(3) Excludes the add back to earnings of the carry on the mandatorily convertible preferred shares, as required under IFRS(4) For the six months ended June 30, 2017, the conversion of capital securities would be anti-dilutive and, as such, are excluded from the calculation of fully-diluted earnings per unit under IFRS

22

UNIT INFORMATION

Unit DistributionsCurrent policy:

▪ Distribution of US$0.295 per unit for the June 1, 2017 to August 31, 2017period (US$1.18 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 AnnouncementsBrookfield Property Partners' financial results arescheduled to be announced on the following dates:

▪ Third quarter 2017 results on November 2, 2017▪ Fourth quarter 2017 results on February 8, 2018▪ First quarter 2018 results on May 4, 2018

Units OutstandingJun. 30, 2017 Dec. 31, 2016

Brookfield Property Partners L.P. limited partnership units 255,802,748 260,222,314Brookfield Property Partners L.P. general partnership units 138,875 138,875Total Brookfield Property Partners L.P. units(1) 255,941,623 260,361,189Limited partner units of the operating partnership held by Brookfield Asset Management 437,409,102 437,409,102Limited partner units of Brookfield Office Properties Exchange LP 11,139,946 11,363,023Total units outstanding 704,490,671 709,133,314

(1) Brookfield Asset Management has economic interests in approximately 50.4M BPY L.P. units as of June 30, 2017, bringingBrookfield Asset Management's economic interest to approximately 488.0M units, or approximately 69.3%

Unit Trading StatisticsApr. 1, 2017 - Jun. 30, 2017 Jan. 1, 2017 - Mar. 31, 2017 Oct. 1, 2016 - Dec. 31, 2016 Jul. 1, 2016 - Sep. 30, 2016 Apr. 1, 2016 - Jun. 30, 2016 NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD) NYSE (USD) TSX (CAD)

High $ 24.10 C$ 31.50 $ 23.54 C$ 30.99 $ 23.09 C$ 30.80 $ 24.94 C$ 32.80 $ 24.98 C$ 31.94Low $ 21.13 C$ 28.79 $ 21.22 C$ 28.30 $ 20.31 C$ 27.40 $ 22.07 C$ 29.01 $ 21.41 C$ 28.14Close $ 23.67 C$ 30.68 $ 22.26 C$ 29.66 $ 21.99 C$ 29.33 $ 22.92 C$ 30.00 $ 22.46 C$ 29.05Volume 9,414,200 9,244,124 12,116,100 9,345,119 8,150,800 10,314,100 8,593,600 11,330,200 7,165,900 9,639,600



24

Core OfficeNET OPERATING INCOME

Quarter-to-date Year-to-date % of Total(Millions in source currency unless otherwise noted) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016 (Current QTD)United States

Midtown New York $ 28.6 $ 36.4 $ 66.5 $ 76.3 8.4%Downtown New York 70.8 65.0 143.0 127.6 21.0%Washington, D.C. 24.6 25.8 48.1 51.9 7.3%Los Angeles 23.9 24.2 47.6 50.4 7.1%Houston 19.4 21.3 37.4 42.9 5.7%Denver 7.7 6.9 14.9 13.6 2.3%Boston 2.1 4.1 4.2 7.4 0.6%San Francisco 1.7 2.5 3.0 4.6 0.5%

178.8 186.2 364.7 374.7 52.9%Canada

Toronto 44.2 42.1 89.5 79.9 9.7%Calgary 23.9 24.5 46.7 49.3 5.3%Ottawa 2.3 2.3 4.7 4.7 0.5%Vancouver — — — 1.6 —%

in C$ 70.4 68.9 140.9 135.5in US$ 52.4 53.4 105.6 102.0 15.5%Australia

Sydney 24.0 37.8 47.4 79.0 5.3%Perth 26.2 28.1 52.7 54.4 5.8%Melbourne 7.7 7.7 16.3 15.7 1.7%Brisbane 2.3 3.5 4.6 7.1 0.5%Canberra — 0.7 — 1.9 —%New Zealand — 0.4 — 0.7 —%

in A$ 60.2 78.2 121.0 158.8in US$ 45.2 58.3 91.3 116.6 13.3%United Kingdom

London 44.0 45.2 89.9 90.1 16.6%in £ 44.0 45.2 89.9 90.1in US$ 56.3 64.9 113.2 129.2 16.6%Germany

Berlin 3.0 4.6 6.3 9.8 0.9%in € 3.0 4.6 6.3 9.8in US$ 3.2 5.2 6.8 11.0 0.9%Brazil

São Paulo 8.5 8.0 17.1 16.0 0.8%Rio de Janeiro — — — — —%

in R$ 8.5 8.0 17.1 16.0in US$ 2.7 2.2 5.4 4.3 0.8%Total NOI 338.6 370.2 687.0 737.8 100.0%Less: straight-line rental income (22.5) (36.2) (40.6) (57.7)Total cash NOI $ 316.1 $ 334.0 $ 646.4 $ 680.1

25

Core OfficeSAME-PROPERTY NET OPERATING INCOME

Quarter-to-date Year-to-date(Millions in source currency unless otherwise noted) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016United States

Midtown New York $ 22.3 $ 23.5 $ 46.8 $ 50.2Downtown New York 72.4 56.9 141.2 109.7Washington, D.C. 24.1 24.4 47.6 48.7Los Angeles 23.2 24.0 47.0 47.9Houston 18.1 21.3 36.1 42.3Denver 7.7 6.9 14.9 13.6Boston 2.1 2.2 3.8 3.7San Francisco 0.8 1.2 2.1 2.3

170.7 160.4 339.5 318.4Canada

Toronto 44.1 42.1 89.2 80.4Calgary 23.9 24.2 46.7 49.0Ottawa 2.3 2.3 4.7 4.7

in C$ 70.3 68.6 140.6 134.1in US$ 52.3 53.2 105.4 101.0Australia

Sydney 22.3 30.6 43.5 60.9Perth 26.0 27.8 52.1 53.5Melbourne 7.7 7.7 16.2 15.6Brisbane 2.2 2.3 4.6 4.6

in A$ 58.2 68.4 116.4 134.6in US$ 43.7 51.0 87.8 98.9United Kingdom

London 37.6 40.0 83.6 75.5in £ 37.6 40.0 83.6 75.5in US$ 48.1 57.4 105.3 108.2Germany

Berlin 3.0 2.9 5.9 5.7in € 3.0 2.9 5.9 5.7in US$ 3.3 3.3 6.4 6.4Brazil

São Paulo 8.5 8.0 17.1 15.9in R$ 8.5 8.0 17.1 15.9in US$ 2.6 2.3 5.4 4.3Total same-property NOI (US$) $ 320.7 $ 327.6 $ 649.8 $ 637.2Percent of same-property NOI growth (2.1)% 2.0%Percent of same-property NOI growth excluding the impact of FX 0.3 % 3.7%

26

SUMMARY OF PROPERTIES

Jun. 30, 2017 Number ofproperties

Assets under management Proportionate(Sq. ft. in 000's) Office Retail Leasable Parking Total Own % Leasable TotalUnited StatesMidtown New York 5 4,730 264 4,994 111 5,105 61% 3,057 3,116Downtown New York 7 12,416 448 12,864 543 13,407 83% 10,670 11,158Washington, D.C. 25 5,524 220 5,744 2,943 8,687 69% 3,817 6,025Los Angeles 9 8,475 461 8,936 4,668 13,604 47% 4,209 6,397Houston 6 6,056 131 6,187 1,885 8,072 69% 4,502 5,582Boston 2 883 27 910 245 1,155 28% 255 320Denver 2 2,571 82 2,653 1,093 3,746 51% 1,340 1,892San Francisco 2 593 30 623 6 629 33% 206 208Total United States 58 41,248 1,663 42,911 11,494 54,405 64% 28,056 34,698

CanadaToronto 11 8,527 726 9,253 1,737 10,990 69% 6,417 7,613Calgary 8 5,431 307 5,738 1,194 6,932 50% 2,869 3,465Ottawa 7 1,703 31 1,734 804 2,538 25% 436 637Total Canada 26 15,661 1,064 16,725 3,735 20,460 57% 9,722 11,715

AustraliaSydney 10 3,566 155 3,721 694 4,415 58% 2,180 2,572Melbourne 2 1,315 42 1,357 356 1,713 50% 679 856Perth 4 1,807 82 1,889 256 2,145 84% 1,586 1,805Brisbane 1 304 — 304 33 337 100% 304 337Total Australia 17 6,992 279 7,271 1,339 8,610 65% 4,749 5,570

London 27 9,466 887 10,353 1,188 11,541 45% 4,543 5,166Berlin 16 1,375 1,102 2,477 1,170 3,647 25% 620 912BrazilSão Paulo 1 — 276 — 276 209 485 51% 141 248Rio de Janeiro 1 191 13 204 64 268 47% 95 125Total Brazil 2 467 13 480 273 753 50% 236 373Total 146 75,209 5,008 80,217 19,199 99,416 59% 47,926 58,434

Core Office

27

HISTORICAL OCCUPANCY

Historical Occupancy by Country (Assets under Management)

Q2 2017 Q1 2017 Q4 2016(1) Q3 2016 Q2 2016Five-quarter

averageMidtown New York 86.4% 84.1% 88.3% 87.9% 88.9% 87.1%Downtown New York 92.4% 93.0% 93.1% 91.9% 93.3% 92.7%Washington, D.C. 89.9% 89.2% 89.6% 86.5% 86.4% 88.3%Los Angeles 85.4% 86.2% 87.4% 85.3% 85.6% 86.0%Houston 84.8% 84.4% 88.3% 87.8% 90.8% 87.2%Boston 97.8% 98.1% 98.8% 98.8% 99.4% 98.6%Denver 92.4% 91.1% 93.4% 90.2% 89.5% 91.3%San Francisco 97.1% 97.2% 97.5% 97.2% 97.2% 97.2%United States 89.0% 88.7% 90.3% 88.7% 89.7% 89.3%Toronto 96.5% 94.8% 94.1% 93.1% 92.5% 94.2%Calgary 93.0% 93.3% 93.3% 92.0% 91.7% 92.7%Ottawa 95.0% 95.0% 95.0% 95.0% 95.2% 95.0%Canada 95.1% 94.3% 93.9% 92.9% 92.5% 93.7%Sydney 96.7% 96.9% 98.1% 98.7% 99.3% 97.9%Melbourne 100.0% 100.0% 99.9% 99.9% 99.8% 99.9%Perth 90.8% 90.4% 89.9% 88.0% 88.6% 89.5%Brisbane 73.1% 60.7% 57.3% 88.0% 85.3% 72.9%Canberra —% —% —% 100.0% 100.0% 40.0%Australia 94.8% 94.3% 94.6% 95.6% 95.9% 95.0%London 97.6% 97.9% 97.8% 98.1% 97.8% 97.8%Berlin 86.2% 88.1% 89.5% 88.5% 84.1% 87.3%São Paulo 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Rio de Janeiro 100.0% —% —% —% —% —%Brazil 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total 91.9% 91.5% 92.3% 91.4% 91.7% 91.8%(1) Restated for remeasurements performed during the first quarter of 2017

Core Office

28

HISTORICAL RENTS

Historical Average In-place Net Rents Historical Average Market Net Rents(Local currency) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016Midtown New York $ 42.84 $ 46.67 $ 45.08 $ 45.13 $ 44.43 $ 72.00 $ 72.00 $ 72.00 $ 72.00 $ 72.00Downtown New York 32.98 32.71 33.13 32.13 31.81 45.00 45.00 45.00 45.00 45.00Washington, D.C. 31.66 31.36 31.10 29.71 29.47 32.00 32.00 32.00 32.00 32.00Los Angeles 25.09 24.96 24.68 24.56 24.47 24.00 24.00 24.00 24.00 24.00Houston 22.44 22.53 21.77 21.34 21.58 21.00 21.00 21.00 21.00 22.00Boston 24.51 24.12 23.80 23.67 23.41 33.00 33.00 33.00 33.00 33.00Denver 22.59 22.34 22.13 22.05 22.06 21.00 21.00 21.00 21.00 21.00San Francisco 41.14 38.54 48.55 47.71 47.66 50.00 50.00 50.00 49.00 49.00United States 30.63 31.30 30.96 30.42 30.16 38.30 39.26 39.00 39.24 39.34Toronto 31.62 31.78 31.59 31.86 31.63 33.00 33.00 32.00 32.00 32.00Calgary 31.12 31.18 31.71 31.95 32.20 23.00 23.00 23.00 23.00 25.00Ottawa 20.48 20.44 20.46 20.46 20.47 18.00 18.00 18.00 18.00 18.00Canada 30.97 31.09 31.12 31.35 31.28 29.44 29.39 28.73 28.73 29.30

in US$(1) 23.90 23.99 24.01 24.19 24.14 22.72 22.68 22.17 22.17 22.61Sydney 62.25 62.05 62.61 61.37 60.00 86.14 77.83 75.41 73.61 69.93Melbourne 54.62 54.38 53.51 49.92 49.62 49.00 48.00 46.82 44.40 43.30Perth 74.29 72.78 72.91 72.46 72.37 57.00 58.00 57.88 58.40 58.60Brisbane 69.09 69.31 71.60 56.28 55.79 54.00 53.00 53.23 53.30 53.40Canberra — — — 41.17 41.22 — — — 32.50 32.30Australia 65.39 64.73 64.92 61.87 61.11 69.39 65.71 64.45 61.86 60.74

in US$(1) 50.27 49.76 49.90 47.56 46.98 53.34 50.51 49.54 47.55 46.69London 43.25 43.18 42.39 43.02 43.01 52.26 54.17 46.19 50.22 48.29

in US$(1) 56.34 56.25 55.22 56.04 56.02 68.07 70.56 60.17 65.42 62.90Berlin 25.47 24.26 24.41 24.98 25.02 31.22 30.66 30.66 30.10 28.99

in US$(1) 29.10 27.72 27.89 28.54 28.59 35.67 35.03 35.03 34.39 33.12São Paulo 249.97 249.97 249.97 233.24 233.24 249.97 249.97 249.97 233.24 233.24Rio de Janeiro 162.17 — — — — 162.17 — — — —Brazil 214.62 249.97 249.97 233.24 233.24 214.62 249.97 249.97 233.24 233.24

in US$(1) 64.88 75.56 75.56 70.51 70.51 64.88 75.56 75.56 70.51 70.51Total $ 33.98 $ 34.25 $ 33.81 $ 33.56 $ 33.41 $ 39.67 $ 40.18 $ 38.64 $ 39.32 $ 39.19Current mark-to-market opportunity 16.7%(1) Using the spot rate at June 30, 2017 for all periods presented

Core Office

29

Core OfficePROPORTIONATE LEASING ACTIVITY

Quarter-to-dateMar. 31, 2017 Quarter-to-date leasing activity Jun. 30, 2017

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

(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 lease term(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.) (years)Midtown New York 3,398 $ 46.67 (25) $ 58.34 192 $ 72.68 $ 79.50 (863) 2,702 $ 42.84 $ 72.00 11.8Downtown New York 9,906 32.71 (178) 33.90 100 27.18 30.99 — 9,828 32.98 45.00 10.9Washington, D.C. 3,324 31.36 (80) 27.19 117 32.79 38.40 — 3,361 31.66 32.00 5.7Los Angeles 3,625 24.96 (85) 19.36 52 17.68 19.88 — 3,592 25.09 24.00 6.4Houston 3,668 22.53 (134) 26.46 164 22.55 23.86 — 3,698 22.44 21.00 4.6Boston 246 24.12 (18) 33.58 18 38.78 39.40 — 246 24.51 33.00 5.7Denver 1,221 22.34 (38) 18.69 56 23.48 24.68 — 1,239 22.59 21.00 7.0San Francisco 200 38.54 (1) 90.00 — — — — 199 41.14 50.00 4.3United States 25,588 31.30 (559) 29.09 699 38.83 42.77 (863) 24,865 30.63 38.30 8.4Toronto 6,046 31.78 (70) 24.69 178 32.75 33.74 — 6,154 31.62 33.00 7.0Calgary 2,677 31.18 (22) 32.80 13 24.60 31.23 — 2,668 31.12 23.00 9.5Ottawa 414 20.44 (1) 20.00 1 31.28 32.35 — 414 20.48 18.00 6.3Canada 9,137 31.09 (93) 26.56 192 32.19 33.56 — 9,236 30.97 29.44 7.7in US$(1) 23.99 20.49 24.84 25.90 23.90 22.72Sydney 2,128 62.05 (4) 101.03 4 127.60 144.21 — 2,128 62.25 86.14 6.4Melbourne 679 54.38 — — — — — — 679 54.62 49.00 5.3Perth 1,478 72.78 (1) 240.10 5 35.58 36.73 — 1,482 74.29 57.00 8.9Brisbane 185 69.31 — — 37 63.63 73.80 — 222 69.09 54.00 4.6Australia 4,470 64.73 (5) 128.85 46 66.15 75.89 — 4,511 65.39 69.39 7.0in US$(1) 49.76 99.05 50.85 58.34 50.27 53.34London 4,441 43.18 (51) 45.84 11 58.01 58.01 — 4,401 43.25 52.26 10.7in US$(1) 56.25 59.71 75.56 75.56 56.34 68.07Berlin 547 24.26 (111) 17.12 98 20.34 20.34 — 534 25.47 31.22 6.0in US$(1) 27.72 19.56 23.24 23.24 29.10 35.67São Paulo 141 249.97 — — — — — — 141 249.97 249.97 6.4Rio de Janeiro — — — — — — — 95 95 162.17 162.17 10.5Brazil 141 249.97 — — — — — 95 236 214.62 214.62 8.1in US$(1) 75.56 — — — 64.88 64.88Total 44,324 $ 34.25 (819) $ 29.16 1,046 $ 35.72 $ 38.87 (768) 43,783 $ 33.98 $ 39.67 8.3(1) Using the spot rate at June 30, 2017 for all periods presented

30

Core OfficePROPORTIONATE LEASING ACTIVITY (CONT'D)

Year-to-dateDec. 31, 2016 Year-to-date leasing activity Jun. 30, 2017

Total Year one Average Acq. (disp.)Leased Avg. in-place expiries Expiring Leasing leasing leasing additions Leased Avg. in- 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 3,389 $ 45.08 (240) $ 26.40 229 $ 66.60 $ 78.06 (676) 2,702 $ 42.84 $ 72.00Downtown New York 9,877 33.13 (570) 35.29 521 30.17 33.31 — 9,828 32.98 45.00Washington, D.C. 3,339 31.10 (117) 26.46 132 31.35 36.25 7 3,361 31.66 32.00Los Angeles 3,678 24.68 (204) 23.03 118 26.28 28.93 — 3,592 25.09 24.00Houston 3,871 21.77 (476) 23.12 303 23.61 24.69 — 3,698 22.44 21.00Boston 250 23.80 (63) 22.44 59 30.11 31.86 — 246 24.51 33.00Denver 1,252 22.13 (236) 21.41 223 23.17 24.59 — 1,239 22.59 21.00San Francisco 97 48.55 (1) 90.00 — — — 103 199 41.14 50.00United States 25,753 30.96 (1,907) 27.17 1,585 33.00 36.77 (566) 24,865 30.63 38.30Toronto 5,978 31.59 (159) 28.56 335 32.88 34.06 — 6,154 31.62 33.00Calgary 2,678 31.71 (25) 32.24 15 23.79 29.36 — 2,668 31.12 23.00Ottawa 414 20.46 (1) 20.00 1 31.28 32.35 — 414 20.48 18.00Canada 9,070 31.12 (185) 29.01 351 32.49 33.85 — 9,236 30.97 29.44in US$(1) 24.01 22.38 25.07 26.12 23.90 22.72Sydney 2,125 62.61 (247) 66.24 250 70.86 82.64 — 2,128 62.25 86.14Melbourne 679 53.51 — — — — — — 679 54.62 49.00Perth 1,440 72.91 (30) 70.92 72 59.12 61.53 — 1,482 74.29 57.00Brisbane 174 71.60 — — 48 54.41 62.36 — 222 69.09 54.00Australia 4,418 64.92 (277) 66.75 370 66.44 75.90 — 4,511 65.39 69.39in US$(1) 49.90 51.31 51.07 58.34 50.27 53.34London 4,128 42.39 (75) 43.66 43 56.17 55.76 305 4,401 43.25 52.26in US$(1) 55.22 56.87 73.17 72.63 56.34 68.07Berlin 554 24.41 (156) 20.59 136 23.22 23.22 — 534 25.47 31.22in US$(1) 27.89 23.53 26.53 26.53 29.10 35.67São Paulo 141 249.97 — — — — — — 141 249.97 249.97Rio de Janeiro — — — — — — — 95 95 162.17 162.17Brazil 141 249.97 — — — — — 95 236 214.62 214.62in US$(1) 75.56 — — — 64.88 64.88Total 44,064 $ 33.81 (2,600) $ 30.04 2,485 $ 34.91 $ 38.54 (166) 43,783 $ 33.98 $ 39.67(1) Using the spot rate at June 30, 2017 for all periods presented

31

Core Office

Jun. 30, 2017 Current 2017 2018 2019 2020 2021 2022 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 355 5 $ 38 81 $ 24 420 $ 47 33 $ 51 32 $ 61 16 $ 55 2,115 $ 49 3,057Downtown New York 842 56 20 132 37 125 25 553 37 709 34 138 37 8,115 44 10,670Washington, D.C. 456 72 35 314 36 232 31 509 32 824 30 103 33 1,307 49 3,817Los Angeles 617 127 27 336 22 307 30 173 29 262 30 519 30 1,868 33 4,209Houston 804 163 20 197 22 154 25 1,113 23 145 22 703 24 1,223 27 4,502Boston 9 6 34 22 28 11 28 24 36 47 28 35 28 101 31 255Denver 101 53 18 38 22 29 24 28 24 80 24 40 24 971 28 1,340San Francisco 7 5 38 8 38 56 35 19 35 3 70 81 57 27 56 206United States 3,191 487 24 1,128 28 1,334 35 2,452 29 2,102 31 1,635 30 15,727 41 28,056Toronto 263 24 47 287 34 468 23 702 32 495 35 702 32 3,476 35 6,417Calgary 201 4 43 66 40 40 41 138 42 63 37 202 31 2,155 34 2,869Ottawa 22 3 25 8 17 23 24 3 30 144 23 5 13 228 19 436Canada 486 31 44 361 35 531 24 843 34 702 33 909 32 5,859 34 9,722in US$ 34 27 19 26 25 25 26Sydney 52 8 40 259 71 165 55 77 42 176 70 221 69 1,222 85 2,180Melbourne — 1 111 1 94 2 126 3 136 281 67 141 47 250 67 679Perth 104 25 59 11 76 80 80 — 235 16 87 151 81 1,199 100 1,586Brisbane 82 21 61 — — 45 57 22 74 47 75 29 122 58 81 304Australia 238 55 58 271 71 292 63 102 52 520 69 542 69 2,729 90 4,749in US$ 45 55 48 40 53 53 69London 142 63 45 283 45 63 63 271 43 156 50 78 34 3,487 42 4,543in US$ 59 59 82 56 65 44 55Berlin 86 6 20 124 28 21 46 17 29 7 29 15 28 344 23 620in US$ 23 32 53 33 33 32 26São Paulo — — — — — — — — — — — — — 141 250 141Rio de Janeiro — — — — — — — — — — — — — 95 162 95Brazil — — — — — — — — — — — — — 236 215 236in US$ — — — — — — 65Total 4,143 642 $ 30 2,167 $ 35 2,241 $ 34 3,685 $ 31 3,487 $ 35 3,179 $ 33 28,382 $ 42 47,926Total % expiring 8.6% 1.3 % 4.5 % 4.7 % 7.7 % 7.3% 6.6 % 59.3% 100.0%End of prior year 8.5% 4.2 % 5.0 % 5.2 % 8.0 % 7.2% 6.8 % 55.1% 100.0%Difference 0.1% (2.9)% (0.5)% (0.5)% (0.3)% 0.1% (0.2)% 4.2%

(1) Excludes developments(2) Net rent represents cash rent in year of expiry

PROPORTIONATE LEASE EXPIRY ANALYSIS

32

TOP TENANTS

Tenant Primary location Credit rating(1) Year of expiry(2)Total

(sq. ft. in 000's) Exposure (%)(3)

1 Government and Government Agencies Various AAA/AA+ 2025 6,897 8.5%2 Barclays London BBB 2033 2,040 2.5%3 Morgan Stanley NY/Toronto/London BBB+ 2029 1,948 2.4%4 CIBC World Markets(4) Calgary/NY/Toronto A+ 2035 1,445 1.8%5 Suncor Energy Inc. Calgary/Houston A- 2028 1,335 1.7%6 Bank of Montreal Calgary/Toronto A+ 2023 1,130 1.4%7 Bank of America | Merrill Lynch Denver/NY/LA/Toronto/D.C. A+ 2023 1,102 1.4%8 Deloitte Cal./Houston/LA/Toronto Not Rated 2029 1,057 1.3%9 Royal Bank of Canada Various AA- 2032 867 1.1%

10 BHP Billiton Perth A 2027 734 0.9%11 HBO NY Not rated 2019 716 0.9%12 Amazon London AA- 2032 700 0.9%13 Time Inc NY Not Rated 2033 696 0.9%14 Hudson's Bay Company NY/Toronto BBB+ 2033 673 0.8%15 PricewaterhouseCoopers Cal./LA/Perth/Sydney Not Rated 2033 671 0.8%16 Devon Energy Houston BBB 2020 638 0.8%17 Commonwealth Bank Brisbane/Melbourne/Sydney AA- 2023 615 0.8%18 Cleary, Gottlieb, Steen & Hamilton LLP NY Not Rated 2031 562 0.7%19 CIB Properties Limited London Not Rated 2026 544 0.7%20 CNR Canadian Natural Resources Limited Calgary BBB+ 2026 531 0.7%

Total 24,901 31.0%(1) From Standard & Poor's Rating Services, Moody's Investment Services, Inc. or DBRS Limited(2) Reflects year of maturity related to lease(s) and is calculated based on a weighted average basis based on square feet where applicable(3) Prior to considering partnership interests in partially-owned properties(4) CIBC World Markets leases 1.1 million square feet at 300 Madison Avenue in New York, of which they sublease 925,000 square feet to PricewaterhouseCoopers LLP and 100,000square feet to Sumitomo Corporation of America

Core Office

33

DEVELOPMENT SITES

Active Developments

Expected date ofcash stabilization

Proportionate

Percent pre-leased

Area currently under constructionJun. 30, 2017 Cost

Yield on costAssets undermanagement Proportionate(Local currency Millions and sq. ft. in 000's) Location Total To-date

OfficeBrookfield Place East Tower Calgary Q3 2018 C$ 726 C$ 654 8% 81% 1,400 1,400London Wall Place London Q2 2020 £ 203 £ 183 7% 71% 505 253One Manhattan West New York City Q4 2020 $ 1,063 $ 368 6% 40% 2,117 1,186ICD Brookfield Place Dubai Q1 2021 AED 1,256 AED 554 11% —% 1,104 552655 New York Avenue Washington, D.C. Q2 2021 $ 285 $ 134 7% 70% 766 383

100 Bishopsgate London Q1 2023 £ 875 £ 507 7% 60% 938 9381 Bank Street London Q1 2023 £ 247 £ 104 7% 40% 715 358

MultifamilyCamarillo Camarillo, CA Q1 2019 $ 127 $ 65 7% n/a 413 409Studio Plaza Silver Spring, MD Q4 2019 $ 106 $ 36 7% n/a 343 296Greenpoint Landing Building G New York City Q4 2019 $ 273 $ 110 6% n/a 250 238New District - 8 Water Street & 2 George Street London Q4 2020 £ 151 £ 88 5% n/a 371 186Newfoundland London Q4 2020 £ 242 £ 110 4% n/a 546 273Principal Place - Residential(1) London Q1 2019 £ 190 £ 83 17% n/a 303 152One and Three York Square & Belvedere Gardens(1) London Q3 2019 £ 164 £ 72 21% n/a 529 132New District - 10 Park Drive(1) London Q4 2019 £ 117 £ 78 23% n/a 269 135

Active developments 10,569 6,891

Active planning 12,592 7,162

Future developments 8,501 6,699

Total developments 31,662 20,752

(1) Represents condominium/market sale developments. Completion date and anticipated return on cost are presented instead of cash stabilization and yield on cost, respectively, for these developments

Core Office

34

Core OfficeDEBT

Jun. 30, 2017 Proportionate Mortgagedetails(US$ Millions) Location Rate Maturity date IFRS Total 2017 2018 2019 2020 2021 Thereafter

United StatesOne Liberty Plaza New York 6.14% August 2017 $ 785 $ 785 $ 785 $ — $ — $ — $ — $ — FixedGreenpoint Landing F(1) New York 4.55% November 2017 42 42 42 — — — — — FloatingGreenpoint Landing G(1) New York 4.55% November 2017 33 33 33 — — — — — FloatingOne & Two Reston Crescent Washington, D.C. 3.00% December 2017 71 60 60 — — — — — FloatingManhattan West New York 5.90% April 2018 122 122 — 122 — — — — FixedTwo Allen Center Houston 6.45% May 2018 185 156 — 156 — — — — FixedRetail and Winter Garden New York 3.80% June 2018 325 325 — 325 — — — — FloatingThree Bethesda Metro Center Washington, D.C. 2.65% June 2018 107 107 — 107 — — — — Floating1201 Louisiana Street Houston 4.65% November 2018 88 88 — 88 — — — — FixedOne North End Avenue New York 3.87% December 2018 166 166 — 166 — — — — FloatingPotomac Tower Washington, D.C. 4.50% January 2019 78 78 — — 78 — — — FixedFIGat7th Los Angeles 3.37% September 2019 35 17 — — 17 — — — Floating2001 M Street Washington, D.C. 3.80% October 2019 99 83 — — 83 — — — Floating1801 California Street Denver 3.62% October 2020 232 118 — — — 118 — — Floating777 Tower Los Angeles 3.24% November 2020 220 104 — — — 104 — — Floating601 & 701 South 12th Street Washington, D.C. 4.18% November 2020 100 100 — — — 100 — — FixedErnst & Young Tower Los Angeles 3.93% November 2020 179 85 — — — 85 — — Fixed200 Vesey Street New York 3.46% December 2020 275 275 — — — 275 — — Floating1550 & 1560 Wilson Boulevard Washington, D.C. 2.74% January 2021 53 45 — — — — 45 — FloatingOne Post Street San Francisco 3.55% March 2021 125 31 — — — — 31 — Floating1600 Smith Street and One and ThreeAllen Center Houston 4.05% April 2021 425 358 — — — — 358 — Floating

Camarillo(1) Camarillo, CA 3.35% May 2021 15 15 — — — — 15 — FloatingThe Gas Company Tower Los Angeles 4.35% August 2021 450 213 — — — — 213 — FixedSilver Spring Metro Plaza Washington, D.C. 3.80% October 2021 115 97 — — — — 97 — Floating685 Market Street San Francisco 2.70% October 2021 85 43 — — — — 43 — FloatingDoubleTree Houston Houston 4.55% November 2021 32 27 — — — — 27 — FloatingWells Fargo Center - South Tower Los Angeles 4.78% December 2021 250 118 — — — — 118 — FloatingWells Fargo Center - North Tower Los Angeles 6.41% April 2022 470 222 — — — — — 222 Floating601 Figueroa Los Angeles 3.49% July 2023 250 118 — — — — — 118 FixedBank of America Plaza Los Angeles 4.05% September 2024 400 189 — — — — — 189 Fixed250 Vesey Street New York 3.77% November 2025 600 600 — — — — — 600 Fixed225 Liberty Street New York 4.66% February 2026 900 900 — — — — — 900 Fixed200 Liberty Street New York 4.50% February 2027 550 550 — — — — — 550 Fixed701 9th Street Washington, D.C. 6.73% December 2028 138 138 — — — — — 138 Fixed300 Madison Avenue New York 7.26% April 2032 296 296 — — — — — 296 FixedUnited States properties 4.66% $ 8,296 $ 6,704 $ 920 $ 964 $ 178 $ 682 $ 947 $ 3,013

(1) Development debt

35

Core Office


Canada2 Queen Street East Toronto 5.57% December 2017 $ 22 $ 22 $ 22 $ — $ — $ — $ — $ — FixedHudson's Bay Centre Toronto 2.34% May 2018 106 106 — 106 — — — — FloatingBrookfield Place Calgary East(1) Calgary 2.56% November 2018 295 295 — 295 — — — — FloatingBay Adelaide East Toronto 2.73% December 2018 262 262 — 262 — — — — FloatingBay Wellington Tower Toronto 3.24% January 2020 371 371 — — — 371 — — Fixed22 Front Street Toronto 6.16% October 2020 12 12 — — — 12 — — FixedBankers Court Calgary 4.91% November 2020 31 31 — — — 31 — — FixedQueen's Quay Terminal Toronto 5.34% April 2021 60 60 — — — — 60 — FixedFifth Avenue Place Calgary 4.71% August 2021 117 117 — — — — 117 — FixedBay Adelaide West Toronto 4.39% December 2021 281 281 — — — — 281 — FixedExchange Tower Toronto 4.00% April 2022 80 80 — — — — — 80 Fixed105 Adelaide Toronto 3.84% May 2023 26 26 — — — — — 26 FixedBankers Hall Calgary 4.38% November 2023 217 217 — — — — — 217 FixedFirst Canadian Place Toronto 3.53% December 2023 57 57 — — — — — 57 FixedJean Edmonds Towers Ottawa 6.70% January 2024 12 12 — — — — — 12 FixedPlace de Ville I Ottawa 3.72% June 2025 34 34 — — — — — 34 FixedSuncor Energy Centre Calgary 5.19% August 2033 196 196 — — — — — 196 FixedCanadian properties 3.75% 2,179 2,179 22 663 — 414 458 622

AustraliaBrookfield Place Tower 2 Perth 3.42% June 2018 $ 170 $ 170 $ — $ 170 $ — $ — $ — $ — FloatingBrookfield Place Perth 3.30% July 2018 500 500 — 500 — — — — FloatingSouthern Cross West Tower & 52Goldburn Street

Melbourne/Sydney 4.91% January 2019 170 170 — — 170 — — — Fixed/floating

Southern Cross East Tower Melbourne 3.27% June 2019 151 151 — — 151 — — — Floating240 Queen Street Brisbane 3.27% June 2019 88 88 — — 88 — — — Floating3 Spring Street Sydney 3.27% July 2019 27 27 — — 27 — — — FloatingBrookfield Prime Property Fund pool debt Various 3.73% July 2020 243 243 — — — 243 — — Floating10 Shelley Street & 235 St.GeorgesTerrace Sydney/Perth 3.63% December 2021 182 182 — — — — 182 — Floating

Australian properties 3.59% 1,531 1,531 — 670 436 243 182 —United Kingdom

20 Canada Square(2) London 6.31% July 2017 $ 371 $ 371 $ 371 $ — $ — $ — $ — $ — FixedLeadenhall Court London 2.83% August 2018 38 38 — 38 — — — — Floating100 Bishopsgate(1) London 3.27% June 2021 209 209 — — — — 209 — FloatingUnited Kingdom properties 5.07% 618 618 371 38 — — 209 —BrazilFaria Lima 3500 São Paulo 10.51% October 2034 $ 90 $ 46 $ — $ — $ — $ — $ — $ 46 FloatingBrazilian properties 10.51% $ 90 $ 46 $ — $ — $ — $ — $ — $ 46

(1) Development debt(2) Represents debt associated with assets held for sale

DEBT (CONT’D)

36

Core OfficeDEBT (CONT’D)


CorporateSenior Notes — 4.00% April 2018 $ 116 $ 116 $ — $ 116 $ — $ — $ — $ — Fixed$1B Corporate Revolver — 2.28% January 2019 708 708 — — 708 — — — FloatingMezzanine Financing — 5.87% May 2019 200 169 — — 169 — — — FloatingBPY Canadian Corporate Credit Facility — 2.46% June 2019 205 205 — — 205 — — — FloatingC$350M BOX Corporate Revolver — 2.43% August 2021 267 267 — — — — 267 — FloatingCorporate 2.88% 1,496 $ 1,465 $ — $ 116 $ 1,082 $ — $ 267 $ —

Other jointly controlled properties1400 K Street Washington, D.C. 5.30% February 2018 $ — $ 20 $ — $ 20 $ — $ — $ — $ — FixedLondon Wall Place(1) London 3.00% June 2018 — 137 — 137 — — — — Floating424/434 West 33rd Street New York 3.55% July 2018 — 39 — 39 — — — — FloatingFive Manhattan West New York 3.80% July 2019 — 322 — — 322 — — — FloatingPrincipal Place - Residential(1) London 3.07% December 2019 — 31 — — 31 — — — FloatingOne Manhattan West(1) New York 4.40% April 2020 — 161 — — — 161 — — FloatingPrincipal Place - Commercial London 2.65% April 2020 — 136 — — — 136 — — Floating1250 Connecticut Avenue, Victor Buildingand 799 9th Street Washington, D.C. 2.75% June 2020 — 123 — — — 123 — — Floating

Manhattan West(1) New York 3.80% November 2020 — 155 — — — 155 — — FloatingPotsdamer Platz Berlin 1.25% December 2020 — 224 — — — 224 — — Floating1200 K Street Washington, D.C. 5.88% February 2021 — 52 — — — — 52 — FixedBethesda Crescent Washington, D.C. 5.58% February 2021 — 23 — — — — 23 — FixedOne New York Plaza New York 3.05% March 2021 — 113 — — — — 113 — Fixed15 Broad Street Boston 2.74% March 2021 — 9 — — — — 9 — Floating655 New York Avenue(1) Washington, D.C. 3.36% April 2021 — 41 — — — — 41 — FloatingThe Grace Building New York 3.61% June 2021 — 378 — — — — 378 — FixedMarina Towers Los Angeles 3.30% September 2021 — 35 — — — — 35 — FloatingIAG House Sydney 3.73% December 2021 — 71 — — — — 71 — FloatingDarling Park Complex Sydney 3.73% December 2021 — 153 — — — — 153 — Floating650 Massachusetts Avenue Washington, D.C. 3.21% June 2022 — 36 — — — — — 36 Fixed77 K Street Washington, D.C. 4.58% June 2022 — 44 — — — — — 44 FixedRepublic Plaza Denver 4.24% December 2022 — 137 — — — — — 137 FixedICD Brookfield Place(1) Dubai 4.80% December 2023 — 7 — — — — — 7 Floating75 State Street Boston 3.50% May 2025 — 81 — — — — — 81 Fixed99 Bishopsgate London 3.41% July 2025 — 47 — — — — — 47 FixedJessie St Centre Sydney 4.51% February 2026 — 138 — — — — — 138 FixedThree Manhattan West(1) New York 2.89% November 2049 — 189 — — — — — 189 FloatingCanary Wharf London 3.72% Sep 2018-Jan 2035 — 2,399 — 14 40 250 615 1,480 FixedOther jointly controlled properties 3.08% — $ 5,301 $ — $ 210 $ 393 $ 1,049 $ 1,490 $ 2,159Total including debt associated with assets held for sale 14,210 17,844 1,313 2,661 2,089 2,388 3,553 5,840Less: Debt associated with assets held for sale (371) (371) (371) — — — — —Total before deferred financing costs 13,839 17,473 942 2,661 2,089 2,388 3,553 5,840Less: Deferred financing costs (121) (152)Total $ 13,718 $ 17,321

Weighted average interest rate 3.99% 5.94% 3.58% 3.35% 3.35% 3.79% 4.44%

(1) Development debt

37

NET OPERATING INCOME AND KEY PERFORMANCE METRICS

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

(US$ Millions unless otherwise noted) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016Same-property NOI $ 158.3 $ 157.2 $ 319.8 $ 314.6

Percent of same-property NOI growth 0.7% 1.6%Non same-property NOI 3.1 3.8 5.2 15.4Total NOI 161.4 161.0 325.0 330.0Less: straight-line rental income (4.1) (2.1) (3.7) (4.3)Total cash NOI $ 157.3 $ 158.9 $ 321.3 $ 325.7

Key Performance Metrics(US$ and sq. ft. in 000's) Jun. 30, 2017Number of properties 126Leasable sq. ft.:

Assets under management 123,215Proportionate 29,780

Same-property:Occupancy 94.6%Average in-place rents per square foot 62.81Tenant sales per square foot 591

Core Retail

38

SIGNED LEASES AND LEASE EXPIRY ANALYSIS

Leasing Activity - All LeasesTrailing 12 months commencements Trailing 12 months commencements

Jun. 30, 2017 Sq. ft. in000's

Term(in years)

Initial rentper sq. ft.

Average rentper sq. ft. # of leases Sq. ft. in 000's

Term(in years)

Initial rentper sq. ft.

Average rentper sq. ft.(US$) # of leases

New and renewal leases 2,120 7,943 7.4 $ 55.48 $ 59.34 2,120 7,943 7.4 $ 55.48 $ 59.34Percent in lieu/gross 366 1,674 4.8 n/a n/a 366 1,674 4.8 n/a n/aTotal leases 2,486 9.617 6.9 $ 55.48 $ 59.34 2,486 9,617 6.9 $ 55.48 $ 59.34

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

New and renewal leasesJun. 30, 2017

# of leases Sq. ft. in 000'sTerm

(in years)Initial rentper sq. ft.

Average rentper sq. ft.

Expiring rentper sq. ft. Initial rent spread Average rent spread(US$)

Trailing 12 months commencements 1,524 4,731 6.9 $ 62.51 $ 68.27 $ 56.84 $ 5.67 10.0% $ 11.43 20.1%(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

Jun. 30, 2017 Number ofexpiring

leases

Expiring GLAat 100%(sq. ft. in

000's)Percent of

totalExpiring rent

(in thousands)Expiring rent

per sq. ft.(US$)Specialty leasing 1,003 2,111 4.0% $ 45,720 $ 21.662017 875 2,364 4.5% 151,244 63.982018 1,789 6,168 11.6% 361,661 58.642019 1,577 6,104 11.5% 337,377 55.272020 1,282 4,513 8.5% 261,152 57.862021 1,254 4,667 8.8% 295,742 63.362022 1,065 4,631 8.7% 273,824 59.132023 915 3,543 6.7% 271,400 76.602024 865 4,060 7.7% 312,896 77.062025 942 4,512 8.5% 350,986 77.79Subsequent 1,625 10,347 19.5% 699,636 67.62Total 13,192 53,020 100.0% $ 3,361,638 $ 63.40Vacant space 790 2,394Mall and freestanding GLA 13,982 55,414

Core Retail

39

TOP TENANTS

Tenant Primary DBA Exposure(1)

1 L Brands, Inc. Victoria's Secret, Bath & Body Works, PINK, Henri Bendel 3.7%2 Foot Locker, Inc. Footlocker, Champs Sports, Footaction USA, House of Hoops, SIX:02 2.9%3 The Gap, Inc. Gap, Banana Republic, Old Navy, Athleta 2.7%4 Forever 21 Retail, Inc. Forever 21 2.2%5 Abercrombie & Fitch Stores, Inc. Abercrombie, Abercrombie & Fitch, Hollister 2.0%6 Ascena Retail Group Dress Barn, Justice, Lane Bryant, Maurices, Ann Taylor, Loft 1.7%7 Signet Jewelers Limited Zales, Gordon's, Kay, Jared 1.7%8 Genesco Inc. Journeys, Lids, Underground Station, Johnston & Murphy 1.5%9 Luxottica Group S.p.A. Lenscrafters, Sunglass Hut, Pearle Vision 1.5%

10 American Eagle Outfitters, Inc American Eagle, Aerie, Martin + Osa 1.4%Total 21.3%

(1) Percent of minimum rents, tenant recoveries and other

Core Retail

40

DEVELOPMENT SITES

Jun. 30, 2017 StabilizedYear

Proportionate cost Expectedreturn on

investment(US$ Millions) Location Description Total To-dateActive developments

Staten Island Mall Staten Island, New York Expansion 2019 $ 66.9 $ 17.7 8%New Mall Development Norwalk, Connecticut Ground up development 2020 152.0 18.2 8-9%Other Various 2017-2018 153.8 96.1 6-8%

Active developments 372.7 132.0In planning

Other Various TBD 66.6 18.5 8-9%In planning 66.6 18.5Total retail developments $ 439.3 $ 150.5

Core Retail

41

SUMMARY OF OPPORTUNISTIC INVESTMENTS

Current Quarter HighlightsNOI Company FFO

Quarter-to-date Year-to-date Quarter-to-date Year-to-date(US$ Millions) Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016Office $ 28 $ 18 $ 57 $ 35 $ 13 $ 11 $ 30 $ 22Retail 32 27 68 52 14 11 27 19Industrial 14 13 25 27 6 4 10 10Multifamily 21 20 42 42 13 33 24 45Hospitality 52 60 94 111 30 36 51 59Triple Net Lease 22 20 44 38 7 9 16 17Self-storage 6 4 13 5 3 2 6 3Student Housing 3 1 5 1 2 1 3 1Manufactured Housing 7 — 9 — 3 — 4 —Finance Funds — — — — 5 3 8 7Total $ 185 $ 163 $ 357 $ 311 $ 96 $ 110 $ 179 $ 183

Commercial properties Invested capital(US$ Millions) Jun. 30, 2017 Dec. 31, 2016 Jun. 30, 2017 Dec. 31, 2016Office $ 1,795 $ 1,612 $ 1,062 $ 951Retail 1,943 2,324 1,189 967Industrial 880 808 604 558Multifamily 1,716 1,581 741 762Hospitality(1) — — 632 598Triple Net Lease 1,367 1,252 320 428Self-storage 434 407 168 158Student Housing 286 156 146 69Manufactured Housing 545 — 179 —Finance Funds — — 189 162Total $ 8,966 $ 8,140 $ 5,230 $ 4,653

(1) Hospitality assets are recorded separately from commercial properties within property, plant and equipment

Opportunistic

42

SUMMARY OF OPPORTUNISTIC INVESTMENTS (CONT'D)

Key Performance MetricsJun. 30, 2017 Area

(US$ and sq. ft. in 000's) No. of properties Assets undermanagement Proportionate

Unit ofmeasurement Occupancy %

Opportunistic Office 114 29,853 9,046 Sq. ft. 85.4%Opportunistic Retail 46 28,884 6,956 Sq. ft. 88.7%Industrial 179 44,996 13,481 Sq. ft. 94.1%Multifamily 103 30,362 9,223 Units 95.0%Hospitality 19 13,861 4,275 Rooms n/aTriple Net Lease 338 16,643 4,768 Sq. ft. 100.0%Self-storage 201 14,810 3,786 Sq. ft. 90.7%Student Housing 29 11,011 2,815 Beds 95.9%Manufactured Housing 135 32,272 8,249 1 Sites 85.7%

Summary of Hospitality Properties

Avg. daily rate per room(1) Revenue per available room(1)Assets undermanagement ProportionateNumber of

properties Jun. 30, 2017 Jun. 30, 2016 Jun. 30, 2017 Jun. 30, 2016 # of rooms Own % # of rooms

North America 11 $ 245 $ 242 $ 179 $ 191 8,763 32% 2,843United Kingdom(2) 5 238 229 234 220 4,123 27% 1,125Australia(2) 3 135 138 92 105 975 31% 307Total 19 13,861 32% 4,275(1) Excludes portfolio of hospitality assets in Germany disposed of during the third quarter of 2016(2) Using the average quarter-to-date exchange rate for the three months ended June 30, 2017 for all periods presented

Opportunistic

43

FOREIGN CURRENCY EXPOSURE

Jun. 30, 2017(US$ Millions) USD GBP BRL AUD INR CAD KRW RMB EUR AED HKD TotalNet equity - US$ $ 13,214 $ 4,961 $ 775 $ 1,951 $ 174 $ 38 $ 185 $ 185 $ 415 $ 123 $ (19) $ 22,002FX contracts - US$ 6,206 (4,127) — (1,343) — — (183) (162) (391) — — —Net unhedged - US$ 19,420 834 775 608 174 38 2 23 24 123 (19) 22,002

% of total equity 88.2% 3.8% 3.5% 2.8% 0.8% 0.2% —% 0.1% 0.1% 0.6% (0.1%)End of prior year - US$ 19,957 1,259 596 520 154 (245) (2) 23 106 — (10) 22,358

% of total equity 89.2% 5.6% 2.7% 2.3% 0.7% (1.1)% —% 0.1% 0.5% —% — %

Corporate

44

CorporateMANAGEMENT FEE AND INCENTIVE DISTRIBUTION

▪ Performance-based fees paid to Brookfield Asset Management on BPY’sinterests in Brookfield Asset Management-sponsored funds are offsetagainst the incentive distribution. The amount available for the offsets iscalculated as the accumulated performance fees incurred since BPY’sspin-out in April 2013, less any prior gross incentive distribution offsetstaken.

▪ In the second quarter of 2017, Brookfield Asset Management earned$2.49M of incentive distributions, which were fully offset by the availablecredits. As of June 30, 2017, BPY has an additional $11.2M of creditsavailable to offset against future incentive distributions.

Management Fee(US$ Millions, except per unit amounts) No. of Price AmountInitial market value of BPY units 466.3 $ 21.91 $ 10,218Corporate capital securities

Class B and Class C preferred shares(1) 1,250Class A preferred equity 25

Recourse debt, net of cash (25)Initial capitalization 11,468 A

Current market value of BPY units 704.5 $ 23.76 16,733Corporate capital securities

Class B and Class C preferred shares(1) 1,250Preferred equity units(2) 1,800Class A preferred equity 15

Recourse debt, net of cash 1,581Current capitalization 21,379 B

Minimum fee ($50M annually) 12.5Fee on increased market capitalization ((B - A) x 0.3125%) 31.0Available creditable operating payments (8.8)Total management fee(3) $ 34.7(1) Refer to page 18 for details on these preferred shares(2) Preferred shares of $1,800M were issued in the fourth quarter of 2014 in connection with thejoint venture in Canary Wharf and are comprised of three series of Class A preferred equity unitsthat are mandatorily convertible into units after seven, ten and twelve years, respectively, basedon tranche(3) Total management fee consists of a base management fee ("Base") equal to 0.125% ofcurrent market capitalization per quarter, subject to a minimum of $12.5M, and an equityenhancement distribution ("EED") equal to 0.3125% of the change in capitalization since initialcapitalization. The EED is reduced by the amount the Base exceeds the minimum of $12.5M.The total fee is reduced by the amount of similar fees paid by BPY for capital invested inBrookfield Asset Management-sponsored funds

▪ Our total management fee paid in the second quarter of 2017 was$34.7M compared to $30.4M in the prior quarter, as a result of anincrease in current capitalization.

Incentive Distribution(US$ Millions, except per unit amounts) Rate Per Unit AmountDistribution per quarter $ 0.295 $ 207.78 AFirst distribution

First distribution threshold 0.275 193.69193.69 B

Second distribution(1)

Distribution above first threshold (A - B) 0.025 14.09Add: 15% incentive distribution 15.0% 2.49

16.58 CThird distribution(2)

Distribution above second threshold — —Add: 25% incentive distribution 25.0% —

—Total distributions (B + C) 210.27Incentive distributions 2.49Less: Incentive distribution account credits (2.49)Net incentive distribution payable to Brookfield Asset Management $ —(1) The incentive distribution is 15% of BPY's regular distributions (i.e., excluding the EED)between $1.10 and $1.20 per year (or $0.275 and $0.30 per quarter)(2) The incentive distribution is 25% of BPY's regular distributions (i.e., excluding the EED) above$1.20 per year (or $0.30 per quarter)

45

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 adjacentparking 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 thatspace, 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 and the FFO that would have been attributable to the partnership's shares of GGP if all outstanding warrants of GGP wereexercised on a cashless basis.

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 estateassets, 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 offree rent periods.

In-place rent For our retail segment, the amount of cash consisting of base minimum rent and common area costs.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.

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

Operating partnership Brookfield Property L.P.Proportionate Reflects proportionate share of the operating subsidiaries attributable to Unitholders.Service Recipient BPY, the operating partnership and its primary holding subsidiaries and any wholly-owned subsidiary thereof excluding any operating entity.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 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 and limited partner units

of Brookfield Office Properties Exchange LP.

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