BROOK PPTY(US:BPYPN)2025-08-08 21:27Revenue Performance - Total revenue for Q2 2025 was $1,802 million, a decrease of 25.6% compared to $2,423 million in Q2 2024[3] - Commercial property revenue decreased to $1,143 million in Q2 2025, down 26% from $1,545 million in Q2 2024[3] - Hospitality revenue fell by 39.5% to $412 million in Q2 2025 from $682 million in Q2 2024[3] - The partnership's revenue for the three months ended June 30, 2025, was $1,396 million, an increase from $1,282 million in the same period of 2024[27] - Total revenue for the six months ended June 30, 2025, was $4,743 million, a decrease from $4,743 million in the same period of 2024[112] Financial Performance - Net loss for Q2 2025 was $46 million, compared to a net loss of $789 million in Q2 2024[5] - For the six months ended June 30, 2025, Brookfield Property Partners reported a net loss of $175 million, a significant improvement from a net loss of $1,498 million in the same period of 2024[9] - Funds from operations (FFO) for the three months ended June 30, 2025, reported a loss of $144 million, compared to a loss of $133 million in the same period of 2024[111] - The partnership's net income for the six months ended June 30, 2025, was $1,189 million, compared to $957 million for the same period in 2024, reflecting a year-over-year increase of 24.2%[27] Asset and Liability Management - Total assets decreased to $98,885 million as of June 30, 2025, down from $102,591 million at the end of 2024[2] - Total liabilities reduced to $58,683 million as of June 30, 2025, compared to $64,342 million at the end of 2024[2] - Non-current liabilities decreased to $38,249 million as of June 30, 2025, down from $42,672 million at the end of 2024[2] - The partnership's total liabilities were $38,623 million as of June 30, 2025, compared to $36,595 million as of December 31, 2024[27] Fair Value and Comprehensive Income - Fair value gains (losses) for Q2 2025 were $47 million, a significant improvement from losses of $508 million in Q2 2024[3] - Other comprehensive income for Q2 2025 was $327 million, compared to a loss of $68 million in Q2 2024[5] - The partnership's fair value gains, net, for the six months ended June 30, 2025, were $554 million, compared to $528 million for the same period in 2024[27] Investment Activity - The partnership's investment properties decreased from $62,078 million at the end of 2024 to $58,651 million by June 30, 2025, primarily due to property dispositions and deconsolidation of India REIT[19] - The partnership's capital expenditures for the first half of 2025 were $514 million, compared to $2,134 million for the entire year of 2024, indicating a reduction in investment activity[19] - The partnership sold assets for net proceeds of approximately $1.032 billion in the first half of 2025, including $642 million in Q1 and $390 million in Q2[43][44] Debt Management - Total debt obligations issued amounted to $5,130 million in 2025, down from $10,596 million in 2024, while debt repayments were $6,659 million compared to $9,962 million in the previous year[9] - The partnership's cash paid for interest decreased from $2,250 million in 2024 to $1,593 million in 2025, reflecting improved financing conditions[9] - Total debt obligations decreased to $47,993 million as of June 30, 2025, down from $51,499 million at December 31, 2024, a reduction of 6.5%[46] Equity and Non-controlling Interests - Total equity increased to $40,202 million as of June 30, 2025, up from $38,249 million at the end of 2024[2] - Non-controlling interests increased to $31,489 million as of June 30, 2025, from $29,829 million at the end of 2024[72] - The partnership's total non-controlling interests increased to $17,162 million as of June 30, 2025, up from $16,022 million at the end of 2024[73] Operational Efficiency - Direct commercial property expenses decreased to $474 million in Q2 2025, down 21% from $600 million in Q2 2024[77] - General and administrative expenses decreased to $308 million in Q2 2025, down 10% from $341 million in Q2 2024[79] - Direct hospitality expenses for Q2 2025 were $291 million, a reduction of 46% compared to $536 million in Q2 2024[78] Currency and Derivative Management - The partnership's foreign currency translation adjustments contributed $1,235 million to the investment property balance in the first half of 2025, contrasting with a loss of $1,391 million in 2024[19] - The notional value of net investment hedges in foreign currencies as of June 30, 2025, includes £992 million and €466 million, with fair values of $(278) million and $(53) million respectively[98] - The partnership's derivative assets decreased to $76 million as of June 30, 2025, down from $100 million at December 31, 2024, a decline of 24.0%[37]