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    Sheila McGrath

    Research Analyst at Evercore

    Sheila McGrath's questions to BPY leadership

    Sheila McGrath's questions to BPY leadership • Q4 2020

    Question

    In a follow-up, Sheila McGrath of Evercore asked about the strategy for bottom-tier retail assets with non-recourse debt and the company's engagement with local governments to encourage reopening in major U.S. cities.

    Answer

    CFO Bryan Davis stated that for about 20 malls where debt equals value, the company is negotiating with servicers for outcomes like deed in lieu of foreclosure or loan modifications. CEO Brian Kingston added that they are actively working with local governments on reopening plans, sharing their own successful protocols and providing space for testing and vaccinations.

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    Sheila McGrath's questions to Brookfield Property Partners (BPYPP) leadership

    Sheila McGrath's questions to Brookfield Property Partners (BPYPP) leadership • Q3 2020

    Question

    Sheila McGrath of Evercore asked for clarification on the share buyback program, the state of the financing market for retail assets, and the potential for repurchasing debt at a discount. She also questioned if Q3 represented a performance low point for retail, inquired about the sale of the Cambridge Life Science assets, the impact of BAM's retail fund, and the company's updated dividend policy.

    Answer

    CEO Brian Kingston and CFO Bryan Davis confirmed that Brookfield Asset Management (BAM) is conducting the buyback, increasing its ownership to about 65%. Kingston noted that financing markets are open for high-quality Class A retail centers like Oakbrook, and that debt restructuring is an option for other assets. He and Retail CEO Jared Chupaila expressed that Q3 was likely at or near a low point for retail. Kingston also confirmed the Cambridge Life Science assets are for sale with strong interest and that BAM's retail fund, through deals like JCPenney, is a net positive for BPY. He reiterated that the dividend is considered appropriate given the expected business recovery.

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    Sheila McGrath's questions to Brookfield Property Partners (BPYPP) leadership • Q2 2020

    Question

    Sheila McGrath of Evercore ISI inquired about several key areas, including the status of retail rent collections in July, government assistance for tenants, the strategy behind certain CMBS mortgages moving to special servicing, the impact of 'buy online, pick up in store' (BOPIS) on retail strategy, and the current leasing progress at the Two Manhattan West office project amid work-from-home trends.

    Answer

    CEO Brian Kingston confirmed that retail collections improved in July as stores reopened and that Brookfield actively assisted tenants in accessing government aid. He explained that moving a small, immaterial number of non-recourse loans to special servicing is a strategic, asset-by-asset decision that can lead to restructuring or reacquiring debt at a discount. Regarding office leasing, Kingston acknowledged a temporary slowdown in discussions for Two Manhattan West but expressed long-term confidence in office demand, citing Facebook's recent major lease as proof of commitment to physical space. Jared Chupaila, CEO of retail real estate, added that BOPIS and other omnichannel strategies are critical for retailers, and Brookfield is exploring using mall space for last-mile fulfillment.

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    Sheila McGrath's questions to Brookfield Property Partners (BPYPP) leadership • Q1 2020

    Question

    Sheila McGrath of Evercore inquired about Brookfield's new retail revitalization program, rent collection trends for April and May, and the company's strategy for improving collections. She also asked how BPY's secured debt financing positions it in the current environment, the impact of recent retailer bankruptcies, and the construction and leasing status of 2 Manhattan West.

    Answer

    CEO Brian Kingston explained that the $5 billion retail revitalization program is a classic Brookfield strategy to invest in quality retailers facing short-term liquidity issues. He noted May rent collections were tracking near April's 20% but expected improvement as centers reopen, with the goal of collecting the majority of deferred rent over time. He affirmed that asset-specific financing protects the broader business from localized stress. Kingston also stated that the current crisis is accelerating retail consolidation, which will be disruptive short-term but ultimately benefit high-quality assets. Executive Richard Clark added that while leasing at 2 Manhattan West is currently slow, the pipeline remains strong and construction was approved to recommence.

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