Item 7.01 Regulation FD Disclosure.
On July 2, 2020, Brookfield Property REIT Inc. (the "Company") issued a press
release announcing its intention to commence a tender offer. A copy of the press
release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 7.01, including Exhibit 99.1, is being furnished
pursuant to Item 7.01 of Form 8-K and shall not be deemed "filed" for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to the liabilities of that section, nor shall the
information be deemed incorporated by reference in any filing under the
Securities Act of 1933, as amended, or the Exchange Act.
Item 8.01 Other Events.
On July 2, 2020, the Company announced its intention to commence a tender offer
to purchase up to 9,166,667 million of its shares of its class A stock, par
value $0.01 per share ("Class A Stock"), from public shareholders at a price of
$12 per share (the "Tender Offer").
Important Information and Where to Find It
This Current Report on Form 8-K is for informational purposes only and is
neither an offer to buy nor the solicitation of an offer to sell any securities
of the Company. The Tender Offer will be made only pursuant to an offer to
purchase, a letter of transmittal, and related materials that the Company
intends to distribute to its stockholders and file with the Securities and
Exchange Commission (the "SEC").
Forward Looking Statements
Certain statements made in this Current Report on Form 8-K may be deemed
"forward-looking statements" within the meaning of the U.S. federal securities
laws. Statements that do not relate to historical or current facts or matters
are forward-looking statements. When used, the words "may," "will," "seek,"
"expects," "anticipates," "believes," "targets," "intends," "should,"
"estimates," "could," "continue," "assume," "projects," "plans," or similar
expressions, are intended to identify forward-looking statements. Although we
believe the expectations reflected in any forward-looking statement are based on
reasonable assumptions, we can give no assurances that our expectations will be
attained, and it is possible that actual results may differ materially from
those indicated in these forward-looking statements due variety of risks,
uncertainties and other factors, including the recent novel coronavirus,
COVID-19 outbreak. Our future results and the results of our tenants may be
impacted by risks associated with the global pandemic caused by COVID-19 and the
related global reduction in commerce, travel and substantial volatility in stock
markets worldwide, which may result in a decrease in cash flows and impairment
losses on our investments and real estate properties, and we may be unable to
achieve our expected returns. Factors that could cause actual results to vary
materially from those contemplated or implied by forward-looking statements
include, but are not limited to: the Company's ability to complete the
anticipated Tender Offer in a timely manner or at all; the price at which shares
of Class A Stock trade on Nasdaq, which may be higher or lower than the purchase
price for the shares of Class A Stock in the anticipated Tender Offer; the
market price of limited partnership units of Brookfield Property Partners
("BPY") and the combined business performance of BPY as a whole; general
volatility of conditions affecting the retail sector; the impact or
unanticipated impact of general, economic, political and market factors in
countries where the Company does business, including as a result of the global
pandemic caused by COVID-19; the Company's ability to acquire and maintain
tenants or to lease space on terms favorable to it or at all; risks related to
bankruptcy or store closures of national tenants with chains of stores in many
of the Company's properties; the Company's inability to sell real estate quickly
or at all; risks related to perceptions by retailers and shoppers of the
convenience and attractiveness of the Company's retail properties; risks related
to the development, expansion and acquisition of properties; risks related to
competition in the Company's business; risks related to natural disasters,
pandemics/epidemics or terrorists attacks; risks related to cyber and data
security breaches or information technology failures; environmental
uncertainties and related costs, including costs resulting from uninsured
potential losses; general risks related to inflation or deflation; risks
relating to impairment charges for the Company's real estate assets; risks
related to conflicts of interest with BPY and the Company's status as a
"controlled company" within the meaning of the rules of Nasdaq; the Company's
dependence on its subsidiaries for cash; risks related to the Company's joint
venture partners, including risks related to conflict of interests, potential
bankruptcies, tax-related obligations and financial support relating to such
joint venture partners; the Company's inability to maintain status as a REIT,
and possible adverse changes to tax laws; risks related to the Company's
indebtedness and debt restrictions and covenants; the Company's inability to
refinance, extend, restructure or repay near and indeterminate debt; the
Company's inability to raise capital through financing activities or asset
sales; risks related to the structure and trading of the Class A Stock; and
other risks and factors detailed from time to time in our documents filed with
the SEC; as well as the risk factors included in the section of the Company's
Form 10-K filed with the SEC and updated on Form 10-Q entitled "Risk Factors."
We caution that the foregoing list of important factors that may affect future
results is not exhaustive. Forward-looking statements in this Current Report on
Form 8-K speak only as of the date on which such statements were made and,
except as required by law, the Company undertakes no obligation to update any
such statements that may become untrue because of subsequent events.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit No. Description
99.1 Press Release dated July 2, 2020.
101.SCH Inline XBRL Taxonomy Extension Schema Document.
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
104 Cover Page Interactive Data File (formatted as Inline XBRL with
applicable taxonomy extension information contained in Exhibits
101.*).
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