Brookfield Property Partners L.P.'s $100 Million Series 1 Cumulative Redeemable Preference Shares Rated 'BB+'

NEW YORK (S&P Global Ratings) March 14, 2019--S&P Global Ratings today 
assigned its 'BB+' issue-level rating to Bermuda-based Brookfield Property 
Partners L.P.'s (BPY) $100 million series 1 cumulative redeemable preference 
shares. The company will use the proceeds from these preferred shares for 
general corporate purposes. We expect to assign intermediate equity credit 
(50% equity) to the preferred shares based on the proposed terms.

BPY is a global, diversified real estate company that is majority owned and 
externally managed by Brookfield Asset Management Inc. (BAM). BPY is BAM's 
primary vehicle to make investments across the real estate sector, holds $86 
billion in real estate assets, and operates as BAM's largest investment 
vehicle. BPY's strategy for its core office and retail portfolio focuses on 
owning high-quality assets and the bulk of its portfolio is located in high 
barrier markets in the U.S., Toronto, Western Europe, and Australia.

BPY's balance sheet is highly leveraged with debt to EBITDA in the high 13x 
area when incorporating the GGP acquisition. The stable outlook on BPY 
reflects our expectation that its consolidated credit metrics will improve 
modestly by year-end 2019 as its debt to EBITDA declines to the mid- to 
high-13x area while its fixed charge coverage (FCC) strengthens to 1.5x. We 
also expect BPY to increase its same-store net operating income (NOI) by the 
low-single-digit percent area aided by new developments.