Corporate Profile March 2009
Contents Corporate Overview
Page 2
Residential Operations
13
Strong Financial Position
15
Portfolio
17
Additional Information
34
Note: All financial and leasing data are as at December 31, 2008
1
Forward Looking Statements This corporate profile contains forward-looking statements and information within the meaning of applicable securities legislation. Although Brookfield Properties believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements t t t andd iinformation f ti bbecause th they iinvolve l kknown andd unknown k risks, i k uncertainties t i ti andd other th ffactors t which may cause the actual results, assumptions, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forwardlooking statements and information. Accordingly, the company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forwardlooking statements and information include general economic conditions; local real estate conditions, including the development of properties in close proximity to the company’s properties; timely leasing of newly-developed properties and re-leasing of occupied square footage upon expiration; dependence on tenants' financial condition; the uncertainties of real estate development and acquisition activity; the ability to effectively integrate acquisitions; interest rates; availability of equity and debt financing; the impact of newly newly-adopted adopted accounting principles on the company's accounting policies and on period-to-period comparisons of financial results; and other risks and factors described from time to time in the documents filed by the company with the securities regulators in Canada and the United States, including in the Annual Information Form under the heading “Business of Brookfield Properties – Company and Real Estate Industry Risks,” and in the company’s annual report under the heading “Management’s Discussion and Analysis.” The company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise except as required by securities laws.
2
1
Overview
Overview •
Invested in 108 properties, comprising 74 million square feet
•
Prominent, well-located assets in North America’s top markets
•
High-quality office portfolio
•
High rents, high occupancy levels and 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
4
2
Top Markets, Premier Portfolio Brookfield Properties’ commercial property portfolio includes well-located, prominent assets in North America’s top markets C l Calgary 6.7 million sq. ft. Edmonton 0.7 million sq. ft.
Ottawa 2.8 million sq. ft.
Vancouver 0.9 million sq. ft.
Boston 2.3 million sq. ft.
Toronto 9.1 million sq. ft.
Minneapolis 3.1 million sq. ft.
New York 20.6 million sq. ft
Los Angeles 10.8 million sq. ft.
(18.5 million sq. ft.)*
(5.7 million sq. ft.)*
Houston 9.1 million sq. ft.
Denver 1.8 million sq. ft.
Washington, D.C. 6.6 million sq. ft.
*Excludes non-managed properties Note: Square footage is on gross basis and excludes development properties
5
High-Growth Markets •
Invested in markets with strong economies that produce stable demand
Financial
Government
Energy
Services
Total
2008 NOI %
57%
12%
16%
15%
100%
2000 NOI %
74%
-
13%
13%
100%
Washington, D.C., Ottawa
Calgary, Houston, Denver
GOVERNMENT CENTERS
ENERGY SECTOR MARKETS
9.4 million sq. ft. 34 properties
17.6 million sq. ft. 18 properties
New York, Toronto, Boston Los Angeles, Minneapolis, Other FINANCIAL SERVICES MARKETS 31.9 million sq. ft. (29.8 million sq. ft.)*
26 properties
108 PROPERTIES 74 MILLION SQ. FT.
(23 properties)*
SERVICES & OTHER MARKETS 15.5 million sq. ft. (10.4 million sq. ft.)*
30 properties (14 properties)*
Note: Square footage is on gross basis and excludes development properties
*Excludes non-managed properties
6
3
Liquidity Position •
$157 million of cash and cash equivalents on balance sheet
•
$467 million of undrawn credit facility available through YE 2010
•
2009 Debt Maturities: 13 asset-level loans; Currently at work on renewing Non-recourse $57 million average size 40% LTV average 1.8x debt service coverage ratio
•
No further significant debt maturities until 2011
•
Strong corporate sponsor and principal shareholder, Brookfield Asset Management, has in excess of $3 billion of consolidated liquidity in cash and undrawn lines
•
Standard & Poor's recently reaffirmed Brookfield Properties’ investment-grade rating
7
Well-Positioned to Ride Out Market Downturn •
Average occupancy on managed portfolio today: 96%
•
Average annual lease rollover over next three years: 5%
•
Average lease duration: over 7 years
•
Average tenant quality: “A” rated
•
Average net rent: 30% below current market
•
Investment grade financing at asset level: 94% non-recourse
•
Average duration of financing: 7 years
Exchange Tower, Toronto
8
4
Acquisitions Brookfield Properties’ 74 million square feet of commercial property was largely assembled through six portfolio acquisitions Trizec (45%) 2006 New York, Washington D.C., Houston, Los Angeles
Royal Trust (89%) 1997 - 2003
O&Y Properties (25%) 2005 Toronto, Calgary, Ottawa, Edmonton
BCE (100%) 1990, 1994 Toronto, Minneapolis, De nver
O&Y (USA) (99%) 1996 - 2002
Brookfield Properties 74M Sq. Sq Ft. Ft
T Toronto t
Single Acquisitions and Other
N York, New Y k Boston B t
Trizec Western Canada (100%) 2000 Calgary
Note: Square footage is on gross basis and excludes development properties
9
Long-Term Lease Profile Seven-year average lease term across the portfolio and minimal near-term lease expiries limits market risk 13
Average lease term by market(1)
8
8 7 6
7
7 6
6
7
7 6
5
(1) Excludes
Blackstone-managed properties
10
5
Diversified, High-Credit Quality Tenants Our premier portfolio attracts the best-credit tenants, providing a long-term, high-quality cash flow TENANT
LOCATION
Merrill Lynch(1)
New York, Toronto, Denver, LA
4,923,000
SQ. FT.
2013
EXPIRY
Government & Government Agencies
All markets
3,134,000
Various
Chevron U.S.A.
Houston
1,744,000
2017
Wachovia Securities(2)
New York
1,439,000
2015
Canadian Imperial Bank of Commerce
New York, Toronto, Calgary
1,437,000
2032
Royal Bank of Canada
Vancouver, Toronto, Calgary, NY, LA, Minneapolis
1,206,000
2019
Bank of Montreal
Toronto, Calgary
1,134,000
2018
Petro-Canada C
C Calgary
1,015,000
2028
JPMorgan Chase
NY, Denver, Houston, LA
975,000
2020
Goldman Sachs
New York
896,000
2012
Target Corporation
Minneapolis
886,000
2014
Devon Energy
Houston
865,000
2020
(1) (2)
Merrill Lynch occupies 2.8 million sq ft at the World Financial Center, NY, with 1.8 million sq ft leased to subtenants. Its lease expires in 2013. Wachovia occupies 148,000 sq ft at One NY Plaza, NY, with 1.2 million sq ft leased to subtenants. Its lease expires in 2015.
11
Industry-Leading Occupancy Rates Our proactive leasing strategy produced 6.4 million sq. ft. of leases in 2008, excluding leasing for developments. The current managed-portfolio occupancy rate is 96.3%. Vacancy Rates 13.8%
13.1% 12.3% 11.8%
8.5% 7.3%
7.4%
6.7% 5.7% 5.1% 4 5% 4.5%
3.8%
3.8% 2.2%
1.9%
Brookfield Properties
Market
Los Angeles*
0.5% Houston
Calgary
Toronto
Washington
Boston
Downtown NYC
Midtown NYC*
0.1%
Ottawa
1.0%
*Excludes non-managed properties
12
6
Low Rollover Profile Limited vacancy and low rollover exposure ensures continuity of cashflow, low levels of capital expenditures and leasing costs 000's Sq. Ft. CITY New York - Midtown New York – Downtown Boston Washington, D.C. Los Angeles Houston Toronto Calgary Ottawa Denver Minneapolis Other Total End of prior year Difference (1) Excludes
CURRENTLY AVAILABLE 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%
Leasing Profile (1)
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 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 1,030 503 521 385 8,502 ─
developments and non-managed properties
TOTAL 4,438 14,000 2,266 6,589 5,686 9,118 9,136 6,704 2 780 2,780 1,827 3,051 1,638 67,233 100.0% 100.0%
13
2008 Significant Leasing Transactions •
Petro-Canada – 15-year extension and expansion for 1 million square feet at Petro-Canada Centre, Calgary
•
Imperial Oil – 8-year extension and expansion for 717,000 square feet at Fifth Avenue Place, Calgary
•
Continental Airlines – 5-year renewals for 646,000 square feet at Continental Center I and II, Houston
•
World Bank – 10-year new lease for 227,000 square feet at 1225 Connecticut Ave., Washington, DC
•
Bennett Jones – 7-year renewal for 145,000 square feet at First Canadian Place, Toronto
•
Crescent Point – 11-year extension and expansion for 140,000 square feet at Petro-Canada Centre, Calgary
•
Citgo – 10-year new lease for 99,000 square feet at Hudson’s Bay Centre, Toronto
Petro-Canada Centre Calgary
14
7
2008 Investing Investing with partners in a fund format enhances returns and represents an important area of growth as we expand our assets under management. Our O&Y and Trizec acquisitions were completed in a fund format.
FEE CATEGORY Asset Management
Stable base fee for providing regular, ongoing services
Transaction
Development, redevelopment and leasing activities conducted on behalf of these funds
Performance
Earned when certain pre-determined benchmarks are exceeded
15
2008 Strategic Initiatives •
Completed the sale of our 50% stake in TD Canada Trust Tower, Toronto, for gross proceeds of C$425 million – or C$721 per square foot
•
Completed a number of financings, including:
Renewed the corporate revolver credit facility through June 2011
Renewed $300 million corporate revolving credit facility with Brookfield Asset Management Inc. into 2010
•
Realized net gain of $339 million, including a gain of $479 million associated with revaluing the company’s future tax liability as a result of management’s decision to convert its U.S. properties held outside the U.S. Fund into an internal REIT structure.
TD Canada Trust Tower Toronto
16
8
Share Buybacks Share Repurchase(1)
Average Price/Share
2008
2,268,600
$17.65
$40.1
2007
4,513,200
22.87
103.2
2006(2)
Total Cost ($ millions)
─
─
─
2005
4,040,250
18.32
74.0
2004
3,172,275
13.59
43.1
2003
11,265,075
9.38
105.7
2002
3 118 275 3,118,275
8 21 8.21
25 6 25.6
2001
5,406,075
7.70
41.6
2000
3,569,175
5.55
19.8
1999
875,700
4.68
4.1
38,228,625
$11.96
$457.2
(1) Share
information restated to reflect stock splits (2) No share repurchases occurred in 2006 due to M&A-related blackout periods
17
Premier Developer • • •
2.5 million sf under construction 16.5 million sf pipeline 65% pre-leased in aggregate
Bay Adelaide Centre I Toronto
Bankers Court Calgary
77 K Street Washington, D.C.
Reston Crescent II Reston, VA
1225 Connecticut Avenue* Washington, DC
1.2 million sq. ft. Q3 2009 completion
265,000 sq. ft. Q1 2009 completion
327,000 sq. ft. Complete
185,000 sq. ft. Complete
269,000 sq. ft. Complete
72% pre-leased
100% pre-leased
0% pre-leased
31% pre-leased
100% pre-leased *redevelopment property
18
9
Future Developments
Five Allen Center Houston
300 Queen Street Ottawa
Manhattan West New York
1.1 million sq. ft.
577,000 sq. ft.
5.4 million sq. ft.
19
Development Pipeline 14 sites totaling 16.2 million sq. ft. of buildable density in 7 high-growth markets LOCATION New York, New York Ninth Avenue Toronto, Ontario Bay Adelaide Centre Brookfield Place III Calgary, Alberta Bankers Court Herald Site Ottawa, Ontario 300 Queen St. Denver, Colorado 1501 Tremont Place Block 173 Washington, D.C. 77 K Street, N.E. Reston Crescent Waterview Houston, Texas 1500 Smith Street Five Allen Center Allen Center Clay St. Total
NUMBER OF SITES
OWNERSHIP %
DENSITY (SQ. FT.)
UNDER CONSTRUCTION SQ. FT.
1
100%
5,400,000
1 1
100% 54%
2,600,000 800,000
1,160,000
1 1
50% 100%
500,000 1,200,000
265,000
1
25%
577,000
1 1
100% 100%
733,000 600,000
1 1 1
50% 100%* 25%*
327,000 1,000,000 300,000
327,000 185,000 300,000
1 1 1 14
100%* 100%* 100%*
500,000 1,100,000 600,000 16,237,000
2,237,000
*Properties are held in the company’s US Office Fund, of which Brookfield Properties has a 45% economic interest
20
10
Bay Adelaide Centre, Toronto •
Three-phase, 2.6 million sq. ft. site in Toronto’s financial core built to a LEED Gold standard
•
Phase I launched in 2006, a 1.2 million sq. ft., 51 story tower
•
Concrete core and curtain wall topped out; most floors ready for tenant build-outs
•
Scheduled for completion in Q3 2009; currently 72% leased to five tenants
•
First new development in Toronto's financial core since Brookfield Place was completed in 1992
21
Bankers Court, Calgary •
15-story, 265,000-square-foot office building connected to Bankers Hall complex via skybridge
•
Concrete core and curtain wall topped out; floors turned over to tenants for commencement of build-outs
•
Scheduled for completion in Q1 2009
•
100% pre-leased to Compton Petroleum and Fraser Milner Casgrain
•
Long-term commitments at rental rates significantly greater than those achieved by competitive developments
22
11
77 K Street, NE, Washington, DC •
Located in the Capitol Hill submarket
•
Adjacent to Union Station
•
327,000 sq. ft., 11-story office building
•
Rooftop terrace with dramatic views of the Capitol
•
Completed in Q3 2008
23
Two Reston Crescent, Reston, VA •
Situated on a 1,000,000-square-foot landscaped campus
•
Sister Si t building b ildi tto O One R Reston t C Crescent, t completed in 2000
•
Six-story, 185,000 square foot building
•
Completed in Q2 2008
•
31% leased to United Health Care
24
12
1225 Connecticut Avenue, Washington, DC •
$32 million invested to redevelop in a Cl Class A A, LEED LEED-Gold G ld assett
•
Completely modernized, eight-story, 269,000-square-foot office building
•
100% of office space leased to World Bank
•
Completed in Q4 2008
25
4. Residential Operations
13
Residential Land Development Business ACRES BY MARKET*
Colorado 18%
Texas 26%
Ontario 13%
•
Mainly based in Western Canada's province of Alberta
•
Alberta's economy is driven by oil sands reserves and exploration
•
Net migration to Alberta in 2009 projected to be equal to 2008 levels(1)
Missouri 1%
Alberta 42%
* Excludes
land under development
(1)
Source: Statistics Canada
27
Residential Operations Achievements 555% increase in NOI 2002 – 2008 31% CAGR ($ millions)
237 144
144
106 22
31
42
2002
2003
2004
2005
2006
2007
2008 28
14
Strong Financial Position
Track Record of Steady Growth Earned FFO per diluted share of $1.59 during 2008 12.6% CAGR
FFO Per Share
0.43
0.50
1998
1999
0.65
0.73
2000
2001
0.83
2002
0.95
2003
1.13
2004
1.23
1.25
2005
2006
1.57
1.59
2007
2008
Reflects 2005 and 2007 three-for-two stock splits
30
15
A REOC…Not a REIT •
•
•
Brookfield Properties Corporation (Brookfield) is organized as a REOC (Real E t t Operating Estate O ti Company), C ) also l known k as a C-Corp. This corporate form allows the company to reinvest its profits in the business, rather than distributing 90% of profits to shareholders as REITs are required to do. Brookfield utilizes net operating losses (NOLs) in Canada and the United States to shelter the company from cash tax payments.
All Center Allen C t & Continental C ti t l Center C t I Houston
31
Solid Financial Ratios
(1)
OBJECTIVE
ANNUAL RESULTS 2008 2007 2006 2005
Debt to total market capitalization
69%
47%
41%
39%
Non-recourse debt(1)
94%
94%
94%
88%
Interest expense coverage
2.1x
2.0x
2.1x
2.6x
Non-recourse to Brookfield Properties Corporation
32
16
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
$
$
0.37
1.23
$
0.46
1.13
1.77
Dividends paid
0.56
0.55
0.50
0.43
0.28
7 73 7.73
19 25 19.25
26 22 26.22
19 61 19.61
16 62 16.62
Cl i market Closing k t price i — NYSE
0.59
1.25
Net income
0.39
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
33
Portfolio
17
Market Focus Our primary markets have strong economies that produce stable demand for office space. Focus is on financial service, government and energy sector tenant markets SQ. FT.
MARKET DISTRIBUTION BY NOI
Houston 8%
NYC - Downtown
NYC Midtown 12%
Los Angeles 14%
NYC Downtown 28%
Other 5% Washington, D.C. 11% Denver 2% Boston 5%
MARKET
Calgary 6%
SQ. FT.
2008
14,000
19%
28%
NYC - Midtown
6,563
9%
12%
Boston
2,266
3%
5%
Houston
9,118
12%
8%
10,763
15%
14%
Los Angeles
Toronto 9%
NOI
000’s
Washington, g , D.C.
6,589 ,
9%
11%
Denver
1,827
2%
2%
Toronto
9,136
12%
9%
Calgary
6,704
9%
6%
Ottawa
2,780
4%
1%
Minneapolis
3,051
4%
1%
Other
1,638
2%
3%
Total
74,435
100%
100% 35
New York - Downtown BPO VACANCY / ROLLOVER EXPOSURE 670
426
286 196 141
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of managed properties Total sq. ft. (000’s)
7 14,000
Portfolio vacancy
1.0%
Market vacancy
7.4%
% OF Downtown Portfolio
VACANT
1.0
2009 1.4
2010 2.1
2011 4.9
2012 3.1
Pictured Above: The World Financial Center
36
18
New York - Downtown
One World Financial Center
Two World Financial Center
Three World Financial Center
Four World Financial Center
• 1.7 million sq. ft.
• 2.7 million sq. ft.
• 1.3 million sq. ft.
• 2.0 million sq. ft.
• 99.2% occupied
• 100% occupied
• 99.8% occupied
• 100% occupied
37
New York - Downtown
The Winter Garden & WFC Retail
One Liberty Plaza
One New York Plaza
Newport Tower Jersey City
• 290,000 sq. ft.
• 2.3 million sq. ft.
• 2.6 million sq. ft.
• 1.1 million sq. ft.
• 80.4% occupied
• 99.0% occupied
• 99.0% occupied
• 96.2% occupied
38
19
New York - Midtown BPO VACANCY / ROLLOVER EXPOSURE 627 446 391 375
131
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of managed properties
3
Number of non-managed properties
3
Total sq. ft. (000’s)
6,563
Portfolio vacancy
9.6%
Market vacancy
8.5%
% OF Midtown Portfolio
VACANT
9.6
2009 5.7
Pictured Above: 300 Madison Avenue
2010 6.0
2011 2.0
2012 6.8
39
New York - Midtown
245 Park Avenue
300 Madison Avenue
Grace Building
• 1.8 million sq. ft.
• 1.1 million sq. ft.
• 1.6 million sq. ft.
• 95.4% occupied
• 100% occupied
• 94.5% occupied
Note: Brookfield-managed properties shown above
40
20
Boston BPO VACANCY / ROLLOVER EXPOSURE
454
183 125
113
48
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties
2
Total sq. ft. (000’s)
2,266
Portfolio vacancy
5.7%
Market vacancy
13.1%
% OF Boston Portfolio
VACANT
5.7
2009 9.2
2010 6.3
2011 22.8
2012 2.4
Pictured Above: 75 & 53 State Street
41
Boston
53 State Street
75 State Street
• 1.2 million sq. ft.
• 1.0 million sq. ft.
• 99.3% occupied
• 86.8% occupied
42
21
Washington, DC BPO VACANCY / ROLLOVER EXPOSURE
603
511 379 292 195
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties
28
Total sq. ft. (000’s)
6,589
Portfolio vacancy
6.7%
Market vacancy
7.3%
% OF Washington Portfolio
VACANT
6.7
2009 9.1
2010 5.2
2011 3.5
2012 10.8
Pictured Above: 1625 Eye St., N.W.
43
Washington, DC
1625 Eye Street
701 9th Street
1200 K Street
1250 23rd Street
• 571,000 sq. ft.
• 547,000 sq. ft.
• 434,000 sq. ft
• 144,000 sq. ft.
• 100% occupied
• 100% occupied
• 97.6% occupied
• 0% occupied
44
22
Washington, DC
1250 Connecticut Ave.
1400 K Street
2000 L Street
• 210,000 sq. ft.
• 224,000 sq. ft
• 383,000 sq. ft.
• 98.5% occupied
• 100% occupied
• 90.5% occupied
45
Washington, DC
2401 Pennsylvania Ave.
Victor Building
2001 M Street
• 93,000 sq. ft
• 347,000 sq. ft.
• 264,000 sq. ft.
• 86.9% occupied
• 73.1% occupied
• 98.9% occupied
46
23
Northern Virginia
Potomac Tower
601 & 701 S 12th Street
One Reston Crescent
Sunrise Technology Park
• 441,000 sq. ft.
• 562,000 sq. ft.
• 185,000 sq. ft.
• 316,000 sq. ft.
• 92.5% occupied
• 100% occupied
• 100% occupied
• 95.8% occupied
47
Northern Virginia
Two Ballston Plaza
1550 Wilson Blvd.
1560 Wilson Blvd.
• 223,000 sq. ft.
• 359,000 sq. ft.*
• 359,000 sq. ft.*
• 97.5% occupied
• 87.1% occupied*
• 87.1% occupied*
*Includes both 1550 & 1560 Wilson Boulevard
48
24
Suburban Maryland
7401 Bethesda Crescent
7475 Bethesda Crescent
4600 Bethesda Crescent
• 179,000 sq. ft.
• 336,000 sq. ft*
• 336,000 sq. ft.*
• 336,000 sq. ft.*
• 100% occupied
• 99.9% occupied*
• 99.9% occupied*
• 99.9% occupied*
One Bethesda Center
* Includes 7401, 7475, 4600 Bethesda Crescent
49
Suburban Maryland
8401 Silver Springs Metro Plaza
8403 Silver Springs Metro Plaza
8405 Silver Springs Metro Plaza
• 771,000 sq. ft.*
• 771,000 sq. ft*
• 771,000 sq. ft.*
• 94.0% occupied*
• 94.0% occupied*
• 94.0% occupied*
* Includes 8401, 8403, 8405 Silver Springs Metro Plaza
50
25
Houston BPO VACANCY / ROLLOVER EXPOSURE 1,102
780
425 304 181
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties
9
Total sq. ft. (000’s)
9,118
Portfolio vacancy
5.1%
Market vacancy
11.8%
% OF Houston Portfolio
VACANT
5.1
2009 2.2
2010 3.7
2011 9.4
2012 13.3
Pictured Above: Allen Center and Cullen Center
51
Houston
One Allen Center
Two Allen Center
Three Allen Center
Four Allen Center
1201 Louisiana Total Plaza
• 993,000 sq. ft
• 996,000 sq. ft.
• 1.2 million sq. ft.
• 1.3 million sq. ft.
• 892,000 sq. ft.
• 99.0% occupied
• 98.8% occupied
• 94.4% occupied
• 100% occupied
• 94.4% occupied
52
26
Houston
500 Jefferson
Continental Center I
Continental Center II
KBR Tower
• 434,000 sq. ft
• 1.5 million sq. ft.
• 530,000 sq. ft.
• 1.3 million sq. ft.
• 97.5% occupied
• 97.2% occupied
• 83.8% occupied
• 83.4% occupied
53
Los Angeles BPO VACANCY / ROLLOVER EXPOSURE 1,405
1,217 1 032 1,032 836
422
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of managed properties Number of non-managed properties
6 16
Total sq. ft. (000’s)
10,763
Portfolio vacancy
14.1%
Market vacancy
13.8%
Pictured Above: Figueroa at Wilshire
% OF Los Angeles Portfolio
VACANT
14.1
2009 4.9
2010 9.7
2011 12.0
2012 16.3
54
27
Los Angeles
Bank of America Plaza
Ernst & Young Plaza
Figueroa at Wilshire
Landmark Square
Marina Towers
• 1.8 million sq. ft
• 1.6 million sq. ft.
• 1.2 million sq. ft.
• 655,000 sq. ft.
• 468,000 sq. ft.
• 96.0% occupied
• 84.0% occupied
• 75.3% occupied
• 94.4% occupied
• 94.7% occupied
Note: Brookfield-managed properties shown above
55
Denver BPO VACANCY / ROLLOVER EXPOSURE 104
99 87
31
Vacant
39
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties Total sq. ft. (000’s)
1 1,827
Portfolio vacancy
2.3%
Market vacancy
16.5%
% OF Denver Portfolio
VACANT
2.3
2009 2.9
2010 7.9
2011 7.5
2012 6.6
Pictured Above: Republic Plaza
56
28
Minneapolis BPO VACANCY / ROLLOVER EXPOSURE
188
178
71
Vacant
65
2009
48
2010
2011
2012 000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties Total sq. ft. (000’s)
4 3,051
Portfolio vacancy
7.4%
Market vacancy
15.7%
% OF Minneapolis Portfolio
VACANT
7.4
2009 2.8
2010 2.6
2011 1.9
2012 7.0
Pictured Above: 33 South Sixth Street
57
Minneapolis
33 South Sixth Street & City Center
RBC Plaza & Gaviidae Common I & II
• 1.8 million sq. ft
• 1.2 million sq. ft.
• 91.6% occupied
• 93.9% occupied
58
29
Toronto BPO VACANCY / ROLLOVER EXPOSURE
763 580
511
432 164
Vacant
2009
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties
11
Total sq. ft. (000’s)
9,136
Portfolio vacancy
2.2%
Market vacancy
3.8%
% OF Toronto Portfolio
VACANT
2.2
2009 5.7
2010 7.6
2011 6.7
2012 10.0
Pictured Above: Bay Wellington Tower, Brookfield Place
59
Toronto
Bay Wellington Tower
Brookfield Place Retail/Parking
151 Yonge Street
First Canadian Place
• 1.3 million sq. ft.
• 742,000 sq. ft.
• 371,000 sq. ft.
• 2.8 million sq. ft
• 99.4% occupied
• 100% occupied
• 94.7% occupied
• 96.5% occupied
60
30
Toronto
Exchange Tower
2 Queen Street East
Hudson’s Bay Centre
105 Adelaide Street
• 1.2 million sq. ft.
• 232,000 sq. ft
• 1.1 million sq. ft.
• 545,000 sq. ft.
• 98.7% occupied
• 100% occupied
• 99.3% occupied
• 98.6% occupied
61
Toronto
Queen’s Quay Terminal
HSBC Building
22 Front Street
• 504,000 sq. ft.
• 225,000 sq. ft.
• 144,000 sq. ft.
• 96.4% occupied
• 97.1% occupied
• 99.2% occupied
62
31
Calgary BPO VACANCY / ROLLOVER EXPOSURE
680 461
346 7
61
Vacant
2009
2010
2011
2012 000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties
8
Total sq. ft. (000’s)
6,704
Portfolio vacancy
0.1%
Market vacancy
4.5%
% OF Calgary Portfolio
VACANT
0.1
2009 1.1
2010 6.1
2011 12.0
2012 8.1
Pictured Above: Bankers Hall
63
Calgary
Bankers Hall
Fifth Avenue Place
Petro-Canada Centre
Altius Centre
• 2.7 million sq. ft.
• 1.7 million sq. ft.
• 2.0 million sq. ft.
• 378,000 sq. ft
• 100% occupied
• 99.9% occupied
• 100% occupied
• 98.1% occupied
64
32
Ottawa BPO VACANCY / ROLLOVER EXPOSURE
35 8 Vacant
2009
7
8
6
2010
2011
2012
000’s sq. q ft.
BROOKFIELD STATISTICS Number of properties
6
Total sq. ft. (000’s)
2,780
Portfolio vacancy
0.5%
Market vacancy
1.9%
% OF Ottawa Portfolio
VACANT
0.5
2009 2.0
2010 0.4
2011 0.5
2012 0.3
Pictured Above: Place de Ville I
65
Ottawa
Place de Ville I
Place de Ville II
Jean Edmonds Towers
• 1.1 million sq. ft.
• 1.0 million sq. ft.
• 648,000 sq. ft
• 99.4% occupied
• 99.3% occupied
• 100% occupied
66
33
Edmonton / Vancouver
Canadian Western Bank Place, Edmonton
Enbridge Tower, Edmonton
Royal Centre, Vancouver
• 498,000 sq. ft
• 214,000 sq. ft.
• 853,000 sq. ft
• 99.8% occupied
• 100% occupied
• 96.9% occupied
67
Additional Information
34
Senior Management Team
NAME
POSITION
PHONE
Ric Clark
CEO
(212) 417-7063
Steve Douglas
President
(212) 417-7059
Tom Farley
President & CEO, Canadian Commercial Operations
(416) 369-2706
Dennis Friedrich
President & CEO, U.S. Commercial Operations
(212) 417-7032
Mark Brown
Senior Vice President, Finance
(212) 417-7064
Bryan Davis
Senior Vice President & CFO
(212) 417-7166 417 7166
Melissa Coley
Vice President, Investor Relations
(212) 417-7215
69
Analyst Coverage COMPANY
NAME
PHONE
NAME
PHONE
Banc of America - Merrill Lynch
Steve Sakwa
(212) 449-0335
Ian Weissman
(212) 449-6255
Blackmont Capital
Gail Mifsud
(416) 864-2070
BMO Nesbitt N bi B Burns
K i MacIndoe Karine M I d
(416) 359-4269 3 9 4269
G Garreth hM McRae R
(416) 359-6769 3 9 6 69
Canaccord Capital Corporation
Shant Poladian
(416) 869-6595
Yashwant Sankpa
(416) 869-3643
CIBC World Markets
Rossa O'Reilly
(416) 594-7296
Alex Avery
(416) 594-8179
Citigroup
Michael Bilerman
(212) 816-1383
Credit Suisse
Steve Benyik
(212) 538-0239
Deutsche Bank Securities
Louis Taylor
(212) 250-4912
Vincent Chao
(212) 250-6799
Genuity Capital Markets
Mark Rothschild
(416) 687-5428
Jenny Ma
(416) 687-5411
Goldman Sachs
Jay Haberman
(917) 343-4260
Sloan Bohlen
(212) 902-2796
Green Street Advisors
Cédrik Lachance
(949) 640-8780
John Stewart
(949) 640-8780
JP Morgan
Anthony Paolone
(212) 622-6682
Joseph Dazio
(212) 622-6416
National Bank
Jimmy Shan
(416) 869-8025
RBC Capital Markets
Neil Downey
(416) 842-7835
Tyler Bos
(416) 842-4123
Scotia Capital Markets
Mario Saric
(416) 863-7824
Stifel, Nicolaus
John Guinee
(443) 224-1307
Erin Aslakson
(443) 224-1350
TD Newcrest
Sam Damiani
(416) 983-9640
Maurice Choy
(416) 983-4406
70
35
Sustainability and Corporate Citizenship • Our premier office properties are sustainable, environmentally friendly and technologically advanced • We have pledged to build all future developments to a LEED Gold standard • We are a member of both the U.S. and Canadian Green Building Councils • We are a member of FTSE4Good stock index series which recognizes companies with high social environmental and ethical performance social,
Brookfield employees in Toronto volunteer with Habitat for Humanity
• We are a committed philanthropic partner and we encourage our employees to be active volunteers in the communities in which we operate 71
36
