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    Neil Downey

    Managing Director and Associate Director of Canadian Research at RBC Capital Markets

    Neil Downey is a Managing Director and Associate Director of Canadian Research at RBC Capital Markets, specializing in the Canadian real estate and REIT sectors. He has covered prominent companies such as Brookfield Property Partners and Choice Properties, and is recognized for delivering strong research performance and leadership in Canadian equity analysis. With over 25 years in finance, Downey began as a Senior Staff Accountant at Ernst & Young before joining RBC, where he progressed through roles including Vice President and Managing Director of Global Equity Research. He is a CFA charterholder, Chartered Accountant (CA), and CPA, holding an Honours Bachelor of Business Administration in Accounting and Finance from Wilfrid Laurier University.

    Neil Downey's questions to Brookfield Property Partners (BPYPP) leadership

    Neil Downey's questions to Brookfield Property Partners (BPYPP) leadership • Q1 2020

    Question

    Neil Downey of RBC Capital Markets requested details on valuation sensitivities for the Core Retail business, the current borrowing climate for malls, the character of upcoming debt maturities, the potential for an NOI deficit in the hospitality portfolio, and the net effect of foreign currency movements on equity. He also asked about the investment structure of the retail revitalization program and liquidity within the BPYU entity.

    Answer

    CFO Bryan Davis provided sensitivity metrics, noting a 25 bps move in discount rates impacts value by about 2.5%. He stated they have requested 12-month extensions on 2020 retail debt and are confident in refinancing due to low LTVs. He acknowledged the hospitality portfolio could see negative FFO in Q2 but noted some positive signs of recovery. Davis also quantified the negative FX impact on equity at approximately $500 million. CEO Brian Kingston added that the retail revitalization program would be flexible, offering various forms of capital, and clarified that BPYU has no liquidity limitations separate from the parent company.

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