Toronto-based international landlord Brookfield Property Partners has put plans to convert into a U.S. REIT on ice now that President Trump's proposed overhaul of the country's corporate tax code has changed the playing field.
"We continue to investigate other potential paths to get our units trading closer to the underlying value of our business," Brookfield CEO Brian Kingston told investors on his firm's fourth-quarter earnings call. "Late last year at our Annual Investor Conference we mentioned that we are actively considering conversion of BPY structure to U.S. REIT. And while work continues in this regard, the uncertainty with respect to potential future changes in U.S. tax law under the new administration has led us to take a more cautious approach to this decision until we have greater clarity."
In 2016, the firm reported same-property NOI of 6.6%, driven in part by the completion of over 8 million square feet of office leasing and 13 million square feet of retail leasing. New leases signed during 2016 posted rents that were on average 14% and 20% higher than expiring leases respectively for Brookfield's office and retail divisions.