Company: BPYPN
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001545772-25-000008
Chunk: 258

Company: Brookfield Property Partners L.P.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 19
Chunk 258
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 usually give rise to increased cash flows at the asset level. Refer to the table below for further information on valuation methods used by the partnership for its asset classes.

Commercial developments are also measured using a discounted cash flow model, net of costs to complete, as of the balance sheet date. Development sites in the planning phases are measured using comparable market values for similar assets.

In accordance with its policy, the partnership generally measures and records its commercial properties and developments using valuations prepared by management. However, for certain subsidiaries, the partnership relies on valuations prepared by external valuation professionals. Management compares the external valuations to the partnership’s internal valuations to review the work performed by the external valuation professionals. Additionally, a number of properties are externally appraised each year

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and the results of those appraisals are compared to the partnership’s internally prepared values and reconciles significant differences when they arise.

The key valuation metrics for the partnership’s consolidated commercial properties are set forth in the following tables below on a weighted-average basis:

                                                         Dec. 31, 2024                                          Dec. 31, 2023                                      
  Consolidated properties      Primary valuation              Discount            Terminal      Investment           Discount            Terminal      Investment  
                               method                             rate      capitalization         horizon               rate      capitalization         horizon  
                                                                                      rate          (yrs.)                                   rate          (yrs.)  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Office (1)                   Discounted cash flow                7.0                 5.6              11                7.0                 5.5              11  
  Retail (2)                   Discounted cash flow                7.1                 5.4              10                7.2                 5.5              10  
  LP Investments (3)           Discounted cash flow                9.6                 6.7               8                8.4                 5.8               9  

(1) Included in the total Office portfolio are 16 6.7

(2) Included in the total Retail portfolio are 19 6.2

(3) The valuation method used to value multifamily, self storage and manufactured housing properties is the direct capitalization method. At December 31, 2024, the overall implied capitalization rate used for properties using the direct capitalization method was 4.9 4.6

Operating investment