Annual Shareholders Meeting April 30, 2009

William T. Cahill

2

Richard B. Clark

3

Jack L. Cockwell

4

J. Bruce Flatt

5

Roderick D. Fraser Ph.D., O.C.

6

Paul D. McFarlane

7

Allan S. Olson

8

Linda Rabbitt

9

Robert L. Stelzl

10

Diana L. Taylor

11

John E. Zuccotti

12

Annual Shareholders Meeting April 30, 2009

Today’s Topics • Company Overview • 2008 Achievements

• Market Conditions and Company Assessment • 2009 Objectives

14

Company Overview

Overview & Strategy • • • • • •

Invested in 108 properties, comprising 75 million square feet Prominent, well-located assets in North America’s top markets High-quality office portfolio; financing structures to minimize risk High rents, high occupancy levels, long-term leases Disciplined management team Stable operating income; steady stream of cashflow

1625 Eye Street, N.W., Washington, DC

Bankers Hall, Calgary

World Financial Center, New York

16

Top Markets, Premier Portfolio Brookfield Properties’ commercial property portfolio includes well-located, prominent assets in North America’s top markets totaling 75 million square feet US: 54.3 msf

Canada: 20.2 msf 0.7m Edmonton

2.3m Boston

0.9m Vancouver

20.6m New York

6.7m Calgary

6.6m Washington, DC

2.8m Ottawa

3.1m Minneapolis

9.1m Toronto

1.8m Denver 9.1m Houston 10.8m Los Angeles

Total area in square feet

32 msf

Financial Services

17.6 msf

Energy

9.4 msf

Government Centers

15.5 msf Services & Other

17

2008 Achievements

Track Record of Steady Growth Despite a challenging market, earned FFO per share excluding gains of $1.59 and net income per share of $1.77 during 2008 12.6% CAGR

19

2008 Leasing Achievements • Leased 6.4 million square feet, nearly three times the amount contractually expiring • Maintained occupancy at 96.3% • Reduced three-year lease rollover exposure by 400 bps • Completed almost one million square feet of lease take-backs with average uplift of $9/square foot on re-letting

75 & 53 State Street, Boston

20

Capital Generation • Completed $1.3 billion of financings, successfully rolling 2008 debt maturities • Sold interest in TD Canada Trust Tower in downtown Toronto for record price in market, as well as one other asset, for net proceeds of $200 million • Have already completed refinancing on 44% of 2009 debt maturities, including renewing the company’s revolving credit facility until 2011

• Only $60 million of property-specific debt coming due in 2010 TD Canada Trust Tower, Toronto 21

Premier Developer • Substantially wound down our commercial development activities • Completed three developments in greater Washington, DC totaling 781,000 square feet in 2008; 42% leased • Completed Bankers Court, Calgary in the first quarter of 2009; 265,000 square feet; 100% leased • Will complete 1.2 million square feet at Bay Adelaide Centre, Toronto in Q3 2009; 73% pre-leased; less than $25 million in equity to complete • 14 million square foot pipeline Bay Adelaide Centre I, Toronto

22

Residential Operations Earned FFO of $144 million during 2008, representing 17% return-onequity investment 555% increase in NOI 2002 – 2008 31% CAGR

($ millions)

23

Selected Financial Highlights (Millions, except per share information)

2008

2007

2006

2005

2004

Results of operations Funds from operations

$

Commercial property net operating income Net income

626

$

629

$

443

$

435

$

403

1,328

1,260

800

655

647

700

240

135

164

138

Per diluted common share(1) Funds from operations

$

1.59

$

1.57

$

1.25

$

1.23

$

1.13

Net income

1.77

0.59

0.37

0.46

0.39

Dividends paid

0.56

0.55

0.51

0.43

0.28

7.73

19.25

26.22

19.61

16.62

Closing market price — NYSE Financial position Total assets Shareholders’ equity (1) Restated

$

19,457 3,427

$

20,473 3,078

$

19,314 3,112

$

9,513 1,943

$

8,800 1,992

to reflect stock splits

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Market Conditions & Company Assessment

Historic Office Vacancy Maintain low vacancy through real estate cycles 18% 16% 14% 12% 10% 8% 6%

4% 2% 0% 1996

1997

1998

1999

2000

US Market

Source: Torto Wheaton / Cushman & Wakefield LePage

2001

2002

2003

Canadian Market

2004

2005

2006

2007

2008

Brookfield

26

Portfolio Vacancy Trend Compared to Market Trend (1) Market vacancy is up across the board, whereas we maintained/improved in 3 markets Market

Portfolio

Q4 2008

Q1 2009

Q4 2008

Q1 2009

Midtown New York

8.5

10.5

3.8

4.6

Downtown New York

7.4

8.1

1.0

1.1

13.1

14.9

5.7

12.7

7.3

8.3

6.7

8.2

13.8

14.8

12.3

13.3

Houston

9.9

10.0

5.1

5.4

Denver

16.5

18.1

2.3

2.2

Minneapolis

15.6

16.3

7.4

7.6

Total US

13.9

14.7

4.7

5.5

Toronto

3.8

4.4

2.2

2.8

Calgary

4.6

6.4

0.1

0.1

Ottawa

2.0

2.3

0.5

0.2

Vancouver & Edmonton

5.0

5.7

1.7

1.9

Total Canada

6.1

6.8

1.2

1.5

3.7

4.4

Boston Washington, D.C. Los Angeles

Total North America

27 (1) Includes

managed properties only. Market data for all classes and sourced by Torto Wheaton Research & Cushman & Wakefield LePage

Share Price Performance vs. Indices – Q109 (NYSE) 10%

0%

-10%

-20%

-30%

-40%

-50% Jan-09

Feb-09 SPX

BPO

DJ Equity REIT Total Return Index

Mar-09 DJ Wilshire REIT Index

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North American Office Outlook

Office fundamentals continue to weaken due to economic slowdown and lack of confidence

Vacancies are still well below normal in most markets

Tight credit constricting liquidity, pushing cap rates up, values down, and share prices down

Government programs have ensured health of major financial institutions Speculative development halted Buying opportunities on the horizon

29

Lease Expiry Profile Our limited vacancy and minimal rollover exposure ensures continuity of cashflow and low capital expenditures and leasing costs. In 2008, we lowered our three-year lease expiry profile by 400 basis points, and have just 3.3% of our leases expiring in 2009. 000's Sq. Ft. CITY

CURRENT Midtown(1)

New York – New York – Downtown Boston Washington, D.C. Los Angeles(1) Houston Toronto Calgary Ottawa Denver Minneapolis Other Total End of prior year Difference

167 141 113 379 558 425 164 7 8 31 188 21 2,202 3.7% 7.6% -3.8%

2009 102 196 183 511 114 181 432 61 35 39 71 41 1,966 3.3% 4.6% -1.3%

2010 248 286 125 292 226 304 580 346 7 104 65 181 2,764 4.7% 6.1% -1.4%

2011 66 670 454 195 485 780 511 680 8 99 48 142 4,138 7.0% 8.3% -1.3%

2012 17 426 48 603 971 1,102 763 461 6 87 178 90 4,752 8.1% 8.4% -0.3%

2013 627 4,759 32 418 192 775 1,478 502 1,131 151 791 104 10,960 18.7% 18.8% -0.1%

2014 154 410 30 1,232 414 595 280 111 9 134 172 45 3,586 6.1% 5.1% 1.0%

2015 92 2,156 − 273 191 657 715 1,016 542 59 434 115 6,250 10.6% 10.4% 0.2%

2016+ 2,965 4,675 1,005 1,716 1,379 3,461 2,694 2,497 4 620 583 514 22,113 37.8% 30.7% 7.1%

PARKING − 281 276 970 1,156 838 1,519 1,023 1,030 503 521 385 8,502 ─

TOTAL 4,438 14,000 2,266 6,589 5,686 9,118 9,136 6,704 2,780 1,827 3,051 1,638 67,233 100.0% 100.0%

30 (1) Excludes

developments and non-managed properties

Net In-Place Rents(1) Compared to Market Average in-place net rents are at a 22% discount to current market rents

($/sf)

Portfolio

Market

Discount to Market

Q1 2009

Q1 2009

Q1 2009

Midtown New York

$42.35

$60

29%

Downtown New York

$26.97

$30

10%

Boston

$30.87

$28

(10%)

Washington, D.C.

$25.17

$34

26%

Los Angeles

$19.95

$23

13%

Houston

$12.72

$24

47%

Denver

$17.55

$22

20%

Minneapolis

$ 8.99

$15

40%

Total US

$23.63

$31

24%

Toronto

$20.16

$20

─

Calgary

$22.99

$30

23%

Ottawa

$14.43

$17

15%

Vancouver & Edmonton

$11.50

$21

45%

Total Canada

$19.87

$23

14%

(1) Includes

managed properties only

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Debt Profile • Focus on investment-grade financing at the fund or asset level • 94% of debt is non-recourse to Brookfield Properties • Completed refinancings on 44% of debt maturing in 2009 – Remaining debt consists of 10 loans with estimated LTV of 40% and coverage of 1.8 times

• 2010 refinancings include two loans totaling $60 million Allen Center & Continental Center, Houston 32

Company Assessment • Average occupancy on managed portfolio today: 96% • Average annual lease rollover over next three years: 5% • Average lease duration: 7+ years • Average tenant quality: “A” rated(1) • Average net rent: 30% below current market • Investment grade financing at fund or asset level: 94% of debt non-recourse(2) • Average duration of financing: 7 years

• Well-positioned to ride out market downturn

(1) Among

tenants that are credit-rated Brookfield Properties Corporation

(2) Non-recourse to

Exchange Tower & First Canadian Place, Toronto 33

Company Strategy Due to a respect for the cyclical nature of real estate and financial markets, our strategy works to minimize market cycle risk within our portfolio by: – Investing in resilient markets that produce stable demand and sustainable cash flows; – Securing long-term lease contracts with high-quality tenants through proactive leasing; – Financing at the asset level and matching the maturity profile of our debt to that of our leases; and – Continuously advancing our development pipeline only when preleasing and financing commitments are met.

34

2009 Objectives

2009 Principal Objectives • Preserve and enhance capital liquidity • Complete balance of 2009 refinancings

• Maintain high office occupancy levels and office NOI growth

• Achieve FFO per share within guidance range of $1.42 - $1.49

36