Brookfield Property Partners (BPY) propped up its first
quarter earnings by selling its stake in retailer Forever 21 for $63 million.
The publicly traded REIT – which parent Brookfield Asset
Management plans to take private later this year – reported that its first
quarter funds from operations fell nearly 60 percent year over year to $125
Overall, the company’s net income was $731 million, up from its $373 million loss a year ago.
“While we continue to experience challenges in certain of
our operations and markets due to the ongoing consequences of the pandemic and
global economic slowdown, we remain encouraged by a recovery in activity in
select sectors within our business,” said Brian Kingston, CEO of Brookfield
Property Partners .
BPY partnered with Simon Property Group and Authentic Brands
Group by buy Forever 21 out of bankruptcy last spring for $81 million. Its exit
from the venture came as its core retail business dropped from $195 million
during 1Q 2020 to $108 million this year as Brookfield handed back to keys to
three malls in Kentucky, California and Louisiana amid a drag in the sector
that included “occupancy changes, co-tenancy claims, reduction in rents, impact
of abatements and reduced overage and temporary rents,” according to its Q1
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