Brookfield Losses Ease on Fund Gains and Lower Debt Costs

Brookfield losses shrink in Q2 2025 as fund values rise and debt costs drop, offsetting weaker office and retail income.

August 15, 2025

Jordan B.

Brookfield Property Partners posted a $46M loss for Q2 2025, sharply reduced from a $789M loss in Q2 2024, aided by stronger fund valuations and lower debt costs.
Office and mall net operating income fell due to asset sales, though portfolio valuations were largely stable.
The division holds $98B in assets and $48B in debt, with $6B maturing in 2025 and $11.5B in 2026.

Key Takeaways

Brookfield Property Partners, the division of Brookfield Asset Management that controls a $98B portfolio of offices, malls, and fund stakes, has trimmed its quarterly loss to $46M in Q2 2025, down from $789M a year earlier. Bisnow reports that the improvement comes despite lower property income, as gains from fund stakes and reduced borrowing costs helped offset declines.

What Changed

The turnaround was driven primarily by valuation gains in funds the company holds stakes in—opportunity, multifamily, and debt vehicles—contrasting with last year’s declines. Lower interest expenses also contributed to the smaller loss.

Office Performance

The 68M SF, 117-asset office portfolio saw net income fall to $200M from $241M, largely due to asset sales. Occupancy remained steady at 84%. Valuations on $18B worth of offices dropped by $200M.

Mall Performance

The 100M SF, 97-asset mall portfolio recorded a $10M drop in net operating income to $231M, again tied to asset sales. Valuation fell slightly by $13M.

Fund Stakes on the Rise

Net operating income from fund stakes rose by $45M, with net income swinging from a $506M loss to a $99M gain. The stakes include opportunity funds, multifamily funds, and debt funds managed by Brookfield Asset Management.

Debt Picture

Brookfield Properties carries $48B in debt, with 3% of it currently interest-free. Major maturities are on the horizon—$6B in 2025 and $11.5B in 2026—putting focus on the firm’s refinancing plans.

Why It Matters

The results highlight how diversification into fund stakes can buffer against weaker property-level income. For Brookfield, stable valuations and lower financing costs are key to managing a high-debt, large-scale portfolio in a slower transaction market.