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Retail Properties:  Our retail portfolio consists of an interest in 163 retail properties in the United States, Brazil and Australia, encompassing 153 million square feet. Our North American retail operations are held through our 32% fully diluted interest in GGP and a 39% interest in Rouse Properties, both of which are equity accounted. Our Brazilian operations are held through a 35% owned institutional fund managed by us, and we also own direct property interests in Australia. Of the total properties in our retail portfolio, 154 properties, consisting of 149 million square feet, are equity accounted investments and the remaining are consolidated under IFRS. 

Multifamily, Industrial and Other Properties:  This category includes 25,500 multifamily units in the United States and Canada and 68 million square feet of industrial space in North America and Europe. We also own distressed and under-performing real estate assets and businesses and commercial real estate mortgages and mezzanine loans in North America, Europe and Australia, as well as interests in hotel and resort properties. 

The following table disaggregates segment FFO and segment equity into the amounts derived from our ownership of BPY, the amounts represented by other assets and liabilities and realized disposition gains to facilitate analysis: 

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1. BPY 2012 FFO and common equity by segment include assets contributed to BPY including BPO, GGP and our investment in Canary Wharf Group 

2. Brookfield’s equity units in BPY consist of 432.6 million redemption-exchange units, 45.2 million Class A LP units, 4.8 million special limited partnership units and 0.1 million general partnership units; together representing an effective economic interest of 89% of BPY 

FFO within our property segment was $554 million (2012 – $537 million). We recorded $28 million of realized disposition gains compared to realized disposition losses of $107 million in 2012, resulting in a positive variance of $135 million. This increase was partially offset by a decline in FFO from the operations that are now held through BPY to $548 million (2012 – $587 million). 

## Brookfield Property Partners 

Our share of BPY’s FFO during 2013 was $548 million, of which $56 million was received as dividends on preferred shares that were issued to us on the reorganization of the capital in our property segment on the formation of BPY. This represents a decline of $39 million from the $587 million of FFO recorded from the same businesses during 2012. The distribution of the initial 7.6% ownership position in BPY to shareholders in April 2013 reduced our interest in these operations, resulting in a $31 million decline over the 2012 results on a comparative basis. In addition, BPY’s FFO during 2013 was reduced by $36 million of base management fees paid to us and recorded as revenue in our asset management segment. BPY’s FFO from retail property operations and multifamily, industrial and other operations increased during the year, which was partially offset by lower FFO from office property operations. 

## Office Properties 

BPY recorded FFO of $312 million from office property operations in 2013 compared to $338 million in 2012, of which our share was $294 million and $338 million, respectively. Favourable leasing performance resulted in a 1% increase in in-place rents on existing properties using consistent foreign exchange rates (1% decrease using actual foreign exchange rates), however this was more than offset by the anticipated expiry of a large lease in New York City in the fourth quarter of 2013 that reduced BPY’s FFO from our U.S. operations by $21 million. In addition, the dividend received by BPY from Canary Wharf in 2013 was $14 million, lower than the $40 million received by us in 2012. 

Leasing activity during the year consisted of 8.9 million square feet of new leases at an average in-place net rent of $30.27 during the year and 10.4 million square feet of lease expiries at expiring net rents of $27.90 per square foot. This resulted in an increase in average in-place net rents from $29.40 to $30.15 per square foot and reduced the proportion of leases expiring over the next five years by 180 basis points compared to the end of 2012. Overall occupancy decreased to 88.0% at December 31, 2013 (2012 – 91.1%). The decrease in portfolio occupancy was primarily due to the expiry of a large lease in New York, decreasing U.S. occupancy from 87.7% to 83.3%. Our average remaining lease term is approximately seven years (2012 – seven years). Contractual lease expiries in the upcoming year consist of 4.8 million square feet and the associated expiring average in-place 

