Company: BPYPN
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001545772-25-000008
Chunk: 59

Company: Brookfield Property Partners L.P.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 5
Chunk 59
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 Direct commercial property expense                                                 2,381                   2,336                1,852  
  Direct hospitality expense                                                         1,885                   2,090                1,141  
  Investment and other expense                                             37                     304                    328             
  Interest expense                                                                   4,764                   4,823                2,683  
  General and administrative expense                                                 1,391                   1,404       930             
  Total expenses                                                                    10,458                  10,957                6,934  
  Fair value (losses) gains, net                                        (692)                   (673)                     20             
  Share of net earnings (losses) from equity accounted investments        331                   (121)                    826             
  (Loss) income before income taxes                                                (1,708)                 (2,268)                1,277  
  Income tax expense (benefit)                                            289                   (419)                    281             
  Net (losses) income                                                       $      (1,997)          $      (1,849)         $        996  

We recognized a net loss of $1,997 million for the year ended December 31, 2024 which compares to a net loss of $1,849 million during 2023. The decrease was driven by disposition activity during the year and valuation losses of $692 million in the current year, reflecting updated market and cashflow assumptions for certain LP Investments and office assets in our portfolio. These impacts were partially offset by an increase in earnings from equity accounted investments of $452 million, as these investments recorded fair value gains in the current year compared with fair value losses in the prior year and acquisition activity in LP Investments since the prior year. We also recorded lower interest expense of $59 million due to interest savings from paydown of corporate debt and lower interest rates in the current year, partially offset by higher debt balances resulting from acquisition activity and asset-level financings.

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Commercial property revenue and direct commercial property expense

I n 2024, commercial property revenue increased by $32 million compared to2023. Excluding the impact of the Deconsolidation of BSREP IV of$218 million, the increase in commercial property revenue was driven by net acquisition activity in our LP Investments, which increased commercial property revenue by $258 million compared to prior year.

Direct commercial property expense increased by $45 million due to acquisition activity in our LP Investments segment which resulted in an increase of