Brookfield Property Partners L.P. 6.25% Class A Cumulative Redeemable Perpetual Preferred Units, Series 1

Company Overview

Business Model: Brookfield Property Partners L.P. serves as Brookfield Corporation’s primary vehicle for global real estate investments, focusing on owning and operating high-quality real estate assets. The company generates revenue primarily through commercial property operations (Office and Retail segments) and opportunistic investments in Brookfield-sponsored real estate funds (LP Investments segment), which target various real estate sectors and generate profits from realization events.

Market Position: Brookfield Property Partners L.P. aims to be a leading global owner and operator of high-quality real estate. Its Office segment comprises 71 million leasable square feet across 124 premier office assets in global gateway cities, while its Retail segment includes 102 million square feet across 100 best-in-class malls and urban retail properties in the United States. The LP Investments segment provides exposure to opportunistic real estate funds across diverse sectors globally.

Recent Strategic Developments:

• Privatization and Restructuring (2021-2022): Brookfield Corporation acquired all outstanding LP Units and Exchange LP Units of Brookfield Property Partners L.P. not previously owned, leading to the delisting of LP Units and Brookfield Properties Retail Holding LLC (BPYU) Units. Subsequently, Brookfield Corporation distributed 25% of its asset management business, Brookfield Asset Management Ltd., creating two publicly traded companies.
• Portfolio Rebalancing & Fund Investments (2023-2024): The company actively engaged in significant acquisition and disposition activities, particularly within its LP Investments segment. This included acquiring numerous logistics, multifamily, and student housing assets across Europe and the U.S. through opportunistic real estate funds, alongside strategic dispositions of manufactured housing, logistics, and hospitality assets.
• BSREP IV Deconsolidation (2024): Brookfield Wealth Solutions Ltd. completed its acquisition of interests in Brookfield Strategic Real Estate Partners IV, leading to its deconsolidation from Brookfield Property Partners L.P.'s financial statements. Brookfield Property Partners L.P. now holds an approximate 8% indirect LP interest in Brookfield Strategic Real Estate Partners IV investments, accounted for as an equity-accounted joint venture.
• Preferred Unit Redemption (2024): Brookfield acquired and cancelled the Series 2 units of Class A Preferred Units on December 31, 2024.

Geographic Footprint: As of December 31, 2024, approximately 69% of assets and 64% of revenues originated from the United States. The remaining 31% of assets and 36% of revenues originated from Canada, Australia, United Kingdom, Europe, Brazil, and Asia. Key international office markets include London, Dubai, Toronto, and Berlin.

Cross-Border Operations: Brookfield Property Partners L.P. operates through a network of consolidated and unconsolidated subsidiaries and joint ventures globally. Notable international operations include direct interests in Australian office properties, a 67% ownership of an office building in Rio de Janeiro, Brazil, and significant equity investments in Brookfield-sponsored real estate opportunity funds with global mandates. The company manages foreign currency risk through local currency debt and derivative contracts.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Net Margin: -21.9% (2024) vs. -19.5% (2023)

Investment in Growth:

• Capital Expenditures: $9,881 million (2024) vs. $5,832 million (2023)
• Strategic Investments:
  • Acquired two logistics portfolios in Europe for approximately $791 million (Q4 2024).
  • Acquired nine multifamily assets in the U.S. for approximately $920 million (Q4 2024).
  • Acquired 14 student housing assets in the U.S. for approximately $874 million (Q4 2024).
  • Acquired 129 logistics assets in the U.S. for approximately $1.3 billion (Q3 2024).
  • Acquired 23 multifamily assets in the U.S. for $1.6 billion (Q2 2024).
  • Acquired 75 multifamily assets out of foreclosure in the U.S. for $629 million (Q1 2024).
  • Acquired a portfolio of single-family rental homes in the U.S. for approximately $924 million (post-period, Feb 2025).

Currency Impact Analysis: Approximately 31% of assets and 36% of revenues originate outside the United States, exposing the company to foreign currency risk. Brookfield Property Partners L.P. aims for a natural hedged position through local currency debt and utilizes derivative contracts such as foreign currency forward contracts, interest rate swaps, interest rate caps, and cross currency swaps. A 10% change in foreign exchange rates would have impacted Other Comprehensive Income by $(722) million as of December 31, 2024. The U.S. Dollar is the functional and presentation currency.

Business Segment Analysis

Office

Financial Performance:

• Revenue: $1,954 million (2024) vs. $1,998 million (2023)
• NOI: $929 million (2024) vs. $984 million (2023) (-5.6% YoY)
• FFO: $(11) million (2024) vs. $185 million (2023)
• Net loss: $752 million (2024) vs. $1,443 million (2023)
• Key Growth Drivers: Decrease in NOI due to dispositions, partially offset by lease commencements at higher rents. FFO decrease due to higher lease termination income in the U.K. in the prior year and dispositions, partially offset by lower interest expense. Net loss decreased due to lower fair value losses and lower share of equity accounted losses in the U.K.

Product Portfolio:

• Comprises 71 million leasable square feet across 124 premier office assets.
• Includes 16 Core office and mixed-use complexes in global gateway cities.
• Consolidated properties: 54 properties (40.8 million leasable square feet) with 84.9% occupancy (2024).
• Unconsolidated properties: 70 properties (30.7 million leasable square feet) with 88.2% occupancy (2024).
• Core properties (total portfolio): 66 properties in 16 complexes, approximately 36 million leasable square feet, 94.3% occupied (2024).

Market Dynamics:

• Competitive positioning is based on property quality, design, location, and management expertise in global gateway cities.
• Top 10 customer exposure is 19.7%, with diverse tenants including government agencies, financial institutions, and professional services firms.
• Weighted average remaining lease life is approximately 6 years.

Geographic Revenue Distribution:

• United States: Significant portion of office revenue.
• Canada: $524 million (2024) total revenue for Canada.
• Australia: $170 million (2024) total revenue for Australia.
• Europe: $1,734 million (2024) total revenue for Europe.
• Brazil: $156 million (2024) total revenue for Brazil.
• South Korea: $228 million (2024) total revenue for South Korea.

Retail

Financial Performance:

• Revenue: $1,548 million (2024) vs. $1,559 million (2023)
• NOI: $989 million (2024) vs. $1,005 million (2023) (-1.6% YoY)
• FFO: $367 million (2024) vs. $345 million (2023) (+6.4% YoY)
• Net income: $527 million (2024) vs. $669 million (2023)
• Key Growth Drivers: NOI decrease due to dispositions and bad debt expense, offset by higher rents. FFO increase due to lower interest expense. Net income decrease due to fair value gains in prior year from a U.S. department store chain investment, partially offset by fair value gains at Core premier retail centers.

Product Portfolio:

• Comprises 102 million square feet across 100 best-in-class malls and urban retail properties in the United States.
• Includes 19 Core premier retail centers in markets such as Honolulu and Las Vegas.
• Consolidated properties: 51 properties (46.4 million leasable square feet) with 94.0% leased (2024).
• Unconsolidated properties: 49 properties (55.7 million leasable square feet) with 96.6% leased (2024).
• Core premier retail centers (total portfolio): 19 properties, approximately 24 million leasable square feet, 97.5% occupied (2024).

Market Dynamics:

• Competitive positioning is based on property quality, design, location, and management expertise in the U.S.
• Top 10 customer exposure is 18.3% of minimum rents and tenant recoveries, including luxury brands and major apparel retailers.
• Faces competition from online shopping.
• Weighted average remaining lease life is approximately 6 years.

Geographic Revenue Distribution:

• United States: Primary market for the Retail segment.

LP Investments

Financial Performance:

• Revenue: $5,353 million (2024) vs. $5,678 million (2023)
• NOI: $2,552 million (2024) vs. $2,548 million (2023) (largely unchanged, but excluding BSREP IV deconsolidation, increased by $185 million)
• FFO: $(57) million (2024) vs. $(98) million (2023) (increase of $41 million)
• Net loss: $(1,091) million (2024) vs. $(610) million (2023)
• Key Growth Drivers: NOI increase (excluding deconsolidation) due to net acquisitions, strong leasing in India office portfolio, and higher occupancies/average daily rates in U.K. and Ireland hospitality portfolio. FFO increase due to higher NOI, partially offset by higher interest expense and operating expenses. Net loss increased due to fair value losses in 2024 compared to gains in 2023.

Product Portfolio:

• Equity invested in Brookfield-sponsored real estate opportunity funds targeting opportunistic returns across various real estate sectors (office, retail, multifamily, logistics, hospitality, triple net lease, manufactured housing, mixed-use, student housing).
• Interests include:
  • 31% in Brookfield Strategic Real Estate Partners I (13th year, fully invested, realizing).
  • 26% in Brookfield Strategic Real Estate Partners II (10th year, fully invested, realizing).
  • 9% in Brookfield Strategic Real Estate Partners III (8th year).
  • 8% in Brookfield Strategic Real Estate Partners IV (4th year).
  • Blended 30% interest in two value-add multifamily funds.
  • Blended 33% interest in a series of real estate debt funds.

Market Dynamics:

• Targets opportunistic returns (gross returns of 20% for opportunistic funds, 25% for value-add multifamily funds).
• Investments have defined hold periods, generating profits primarily from realization events.
• Active acquisition and disposition strategy across diverse global real estate sectors.

Geographic Revenue Distribution:

• Global reach through fund investments, including significant activity in the U.S., Europe, and Asia (e.g., India office portfolio, South Korea hospitality).

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: Brookfield Office Properties Inc. (Canada, 100% economic/voting), U.S. Retail (United States, 100% economic/voting), Korea Mixed-use (South Korea, 22% economic), UK and Ireland Short Stay (United Kingdom, 27% economic).
• Joint Ventures: Stork Holdco L.P. (UK, 50%), Midtown New York Mixed-use Complex (US, 56%), various U.S. Retail JV Pools (50-51%), and an approximate 8% indirect LP interest in Brookfield Strategic Real Estate Partners IV investments with Brookfield Wealth Solutions Ltd.
• Licensing Agreements: Not explicitly detailed in the provided text.

Cross-Border Trade:

• Export Markets: Not explicitly detailed as product exports, but real estate investments and fund activities span multiple countries.
• Import Dependencies: Not explicitly detailed.
• Transfer Pricing: The company's tax liabilities depend on income distribution across jurisdictions, and it applies assumptions and conventions for U.S. and Canadian federal income tax laws, which tax authorities may challenge.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: 272,905 New LP Preferred Units purchased in Q1 2024 at an average price of $12.75-$13.14 per unit.
• Dividend Payments: $496 million (2024) vs. $484 million (2023) (includes distributions to limited partnership unitholders and preferred distributions).
• Future Capital Return Commitments: TSX approval to purchase up to 1,917,745 New LP Preferred Units (approximately 10% of public float) between January 11, 2024, and January 10, 2025.

Balance Sheet Position:

• Cash and Equivalents: $2,208 million (Dec 31, 2024) vs. $2,341 million (Dec 31, 2023)
• Total Debt: $51,499 million (Dec 31, 2024) vs. $68,712 million (Dec 31, 2023)
• Net Cash Position: $(49,291) million (Dec 31, 2024) vs. $(66,371) million (Dec 31, 2023)
• Consolidated debt obligations to capitalization: 55% (Dec 31, 2024) vs. 57% (Dec 31, 2023)

Cash Flow Generation:

• Operating Cash Flow: $1,018 million (2024) vs. $(670) million (2023)
• Free Cash Flow: $(8,863) million (2024) (Operating Cash Flow less Capital Expenditures of $9,881 million)
• Cash Conversion Metrics: Net cash inflows from LP Investments realizations were $2.5 billion in 2024, $1.4 billion in 2023, and $1.7 billion in 2022.

Currency Management:

• Cash holdings by major currencies are not explicitly detailed.
• Natural hedging is pursued through local currency debt.
• Financial hedging instruments include foreign currency forward contracts, interest rate swaps, interest rate caps, and cross currency swaps.

Operational Excellence

Production & Service Model: Brookfield Property Partners L.P. operates as a global owner and operator of real estate. It does not have direct employees; management and administrative services are provided by subsidiaries of Brookfield Asset Management Ltd. under a Master Services Agreement. The operational philosophy focuses on active management of its diverse real estate portfolio, including commercial property operations and opportunistic fund investments.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Service Providers: Subsidiaries of Brookfield Asset Management ULC - provide management and administrative services globally.
• Co-Venturers: Various partners in joint ventures (e.g., Stork Holdco L.P., Midtown New York Mixed-use Complex, U.S. Retail JV Pools) - contribute to property ownership and development.

Facility Network:

• Office: 71 million leasable square feet across 124 premier office assets in global gateway cities (e.g., New York, London, Dubai, Toronto, Berlin).
• Retail: 102 million square feet across 100 best-in-class malls and urban retail properties in the United States.
• LP Investments: Diverse portfolio across various real estate sectors globally, including logistics, multifamily, student housing, and hospitality assets.

Operational Metrics:

• Office Portfolio Occupancy (2024): 84.9% (consolidated), 88.2% (unconsolidated). Core properties 94.3%.
• Retail Portfolio Leased % (2024): 94.0% (consolidated), 96.6% (unconsolidated). Core premier retail centers 97.5% occupied.
• Weighted Average Remaining Lease Life: Approximately 6 years for Office and Retail segments.
• Average Annual Lease Maturities (up to 2029): Approximately 9.7% for Office and Retail.
• Employees: Approximately 25,700 employees involved in Brookfield’s real estate businesses globally (provided by the Manager).

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Leasing: Utilizes its global operational expertise and local market presence to directly lease office and retail spaces.
• Fund Investments: Accesses capital and investment opportunities through Brookfield-sponsored real estate opportunity funds.

Customer Portfolio: Enterprise Customers:

• Office Segment (Top 10, Dec 31, 2024): Represents 19.7% of exposure, including Government and Government Agencies (4.6%), Morgan Stanley (2.4%), CIBC World Markets (2.0%), Suncor Energy (1.9%), Clifford Chance (1.7%), EY (1.5%), Barclays (1.4%), Cenovus (1.4%), Royal Bank of Canada (1.4%), and Amazon (1.4%).
• Retail Segment (Top 10, Dec 31, 2024): Represents 18.3% of minimum rents and tenant recoveries, including LVMH (3.3%), Foot Locker, Inc (2.4%), Victoria's Secret & Co (2.4%), The Gap, Inc (1.7%), American Eagle Outfitters, Inc (1.7%), Signet Jewelers Limited (1.6%), Abercrombie & Fitch Stores, Inc (1.4%), Luxottica Group S.P.A. (1.4%), Tapestry, Inc (1.2%), and Venetian Las Vegas Gaming, LLC (1.2%).
• Customer Concentration: No one tenant represents more than 10% of operating property revenue.

Regional Market Penetration:

• United States: Strong market penetration in both Office and Retail segments, with a significant portion of assets and revenues.
• Global Gateway Cities: Strategic presence in key international office markets like London, Dubai, Toronto, and Berlin.
• Growth Markets: Active investment in opportunistic real estate funds targeting various sectors in Europe and Asia.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: Brookfield Property Partners L.P. operates in diverse real estate sectors including office, retail, multifamily, logistics, hospitality, and mixed-use. The industry is characterized by competition from other operating companies, public and private real estate companies and funds, commercial property developers, and other real estate owners. The retail sector also faces significant competition from online shopping. Key competitive factors for tenants include rental rates, property quality, design, location, property count, geographic distribution, management/operational expertise, and landlord financial position.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Other Office, Retail, Multifamily, Logistics, Hospitality, Mixed-use, and Alternative Real Estate Operating Companies: Global and regional players in each specific real estate sector.
• Public and Private Real Estate Companies and Funds: Competing for investment opportunities and tenant relationships.
• Commercial Property Developers: Competing for new developments and market share.
• Online Shopping: A significant competitive threat to the Retail segment.

Regional Competitive Dynamics: The competitive landscape varies by region and asset class. For instance, office markets in global gateway cities face competition from other premier office landlords, while U.S. retail properties compete with other best-in-class malls and urban retail centers, as well as the growing e-commerce sector. The LP Investments segment competes with other opportunistic real estate funds for attractive investment opportunities.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics: Risks include economic downturns, local market conditions, interest rate fluctuations, intense competition, tenant defaults, renovation costs, natural disasters, and property taxes. The company's dependence on economic conditions in North America, Europe, Australia, South America, and Asia creates regional impact variations. Trends in office real estate (hybrid/remote work, shared spaces) and retail (unemployment, weak income growth, inflation, consumer credit, internet sales) pose ongoing challenges. Technology Disruption: The rise of online shopping directly impacts the retail segment.

Operational & Execution Risks

Global Supply Chain Vulnerabilities: Not explicitly detailed as a supply chain risk, but business disruptions (cybersecurity failures, natural disasters, pandemics, terrorism, war) can impact global operations. Regional Disruptions: Political, economic, and natural disaster risks are inherent in multi-jurisdictional operations. Joint Venture/Partnership Risks: Risks include co-venturer bankruptcy, inconsistent interests, lack of control over major decisions, finite fund terms, and rights of first refusal/offer. Health and Safety and Environmental Liabilities: Remediation costs, changes in laws, government orders, and civil liability. Climate Change: Physical risks (sea level rise, extreme weather) and transition risks from a shift to a low-carbon economy.

Financial & Regulatory Risks

Currency & Financial Risks:

• Foreign Exchange: Exposure to multiple currencies (Canadian Dollar, Australian Dollar, British Pound, Euro, Brazilian Real, Indian Rupee, Korean Won, United Arab Emirates Dirham, Swedish Krona, Japanese Yen, Chinese Yuan) creates risk from U.S. Dollar not being the functional currency in all operations, depreciation, and hedging effectiveness.
• Interest Rate Risk: Increased interest expense (approximately $294 million for a 100 basis point increase on floating rate debt), decreased asset value, impact on acquisitions/sales, and refinancing risk. Approximately 58% of outstanding debt obligations were floating rate at December 31, 2024.
• Credit & Liquidity: Risks include insufficient cash flow, refinancing challenges, restrictive covenants, high leverage, and ability to fund commitments and deleverage. The company has suspended contractual payments on approximately 5% of its non-recourse mortgages. Regulatory & Compliance Risks:
• Multi-Jurisdictional Compliance: Subject to federal, state, provincial, and local laws related to real property ownership and operation, including environmental matters, building codes, human rights codes, zoning, design, construction, and fire/life safety requirements.
• Trade Regulations: Not explicitly detailed.
• Tax Regulations: Tax liabilities depend on income distribution across jurisdictions, with potential for challenges from tax authorities regarding assumptions and conventions for U.S. and Canadian federal income tax laws. The EIFEL Rules (Bill C-59) may deny deductibility of net interest and financing expenses.

Geopolitical & External Risks

Country-Specific Risks: Political instability, unfamiliar cultural factors, government policies, currency transfer restrictions, labor relations, financial markets, legal/regulatory environment, corruption, hostility to foreign investors, enforcement, expropriation, tariffs, and trade restrictions in various jurisdictions (e.g., Korean Peninsula, U.S., Brazil, European, Asian markets).

Innovation & Technology Leadership

Research & Development Focus: Brookfield Property Partners L.P. does not explicitly detail a dedicated R&D department or specific technology development initiatives. Its innovation focus is primarily embedded within its sustainability strategy and operational improvements.

Global R&D Network: Not explicitly detailed.

Intellectual Property Portfolio:

• Trademark Strategy: Intangible assets primarily represent trademark assets related to UK and Ireland Short Stay, with a carrying amount of $893 million (2024), which have an indefinite useful life.
• Licensing Programs: Not explicitly detailed.
• IP Litigation: Not explicitly detailed.

Technology Partnerships: Not explicitly detailed.

Leadership & Governance

Executive Leadership Team

International Management Structure: Brookfield Property Partners L.P. has no employees; management and administrative services are provided by subsidiaries of Brookfield Asset Management Ltd. under a Master Services Agreement. This centralized management structure oversees global operations.

Board Composition: The BPY General Partner's board consists of five directors, with a majority being independent. Not more than 50% of directors or independent directors may be residents of any one jurisdiction (other than Bermuda and any other designated jurisdiction). The Class A Preferred Unitholder is entitled to designate one independent director if it owns at least 5% of fully-diluted LP Units, but has not exercised this right.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Bermuda: As a Bermuda exempted limited partnership, it is subject to Bermuda laws.
• United States, Canada, Australia, United Kingdom, Europe, Brazil, Asia: Subject to federal, state, provincial, and local laws and regulations related to real property ownership and operation in these jurisdictions, including environmental matters, building codes, human rights codes, zoning, design, construction, and fire/life safety requirements.
• Industry-Specific Regulations: Compliance with real estate specific regulations in each market.

Cross-Border Compliance:

• Export Controls: Not explicitly detailed.
• Sanctions Compliance: Not explicitly detailed.
• Anti-Corruption: Has policies including a modern slavery and human trafficking policy, Code of Conduct, Anti-Bribery and Corruption Policy, and Whistleblowing Policy.
• Sustainability-related Legislation: Monitors proposed and evolving sustainability-related legislation and regulation, including the SEC’s proposed rules on climate-related disclosures and the EU’s Corporate Sustainability Reporting Directive.
• Data Privacy and Cybersecurity: Has a cybersecurity program aligned with NIST Cybersecurity Framework, with mandatory training and regular testing.

International Tax Strategy:

• Transfer Pricing: Tax liabilities depend on income distribution across jurisdictions. The company applies assumptions and conventions for U.S. and Canadian federal income tax laws, which tax authorities may challenge.
• Tax Treaties: Not explicitly detailed.
• BEPS Compliance: Bill C-59, implementing the EIFEL Rules, generally applies to taxation years beginning on or after October 1, 2023, potentially denying deductibility of net interest and financing expenses if they exceed a fixed ratio of adjusted taxable income.

Environmental & Social Impact

Global Sustainability Strategy: Brookfield Property Partners L.P.'s sustainability strategy is embedded throughout its investment process, focusing on business resilience and value creation by integrating sustainability considerations into decision-making. It leverages leading industry guidance to identify material sustainability factors.

Environmental Commitments:

• Climate Strategy: Strives to minimize environmental impact, improve resource use, and supports net zero greenhouse gas (GHG) emissions by 2050 or sooner. It is a signatory to the Net Zero Asset Managers (NZAM) initiative.
• Carbon Neutrality: Interim target: reduce in-scope Scope 1 and 2 emissions from a 2019 base year by at least 50% by 2030.
• Renewable Energy: Initiatives include GHG emissions measurement, energy reduction, alternative energy (solar), water conservation, recycling, enhanced indoor air quality, biodiversity, alternative transportation parking, and eco-friendly cleaning.

Regional Sustainability Initiatives:

• Reporting and Certifications: Participates in the Global Real Estate Sustainability Benchmark (GRESB). In 2024, Brookfield’s average score in the Standing Investments Benchmark was 84% (global average 76%), and in the Development Benchmark was 92% (global average 92%).
• Property Certifications: Properties have achieved numerous certifications including WELL Health & Safety (129), LEED (140), Energy Star (55 U.S.), UL Verified Healthy Building (44 U.S.), BOMA 360 (58 U.S./Canada), IREM (82 U.S. Retail), NABERS (40 Australia), Fitwel (34 international), and BREEM (111 U.K.).

Social Impact by Region:

• Community Investment: Focuses on diversity, equity, and inclusion, with a primary focus on gender diversity.
• Labor Standards: Aims for zero serious safety incidents through occupational health and safety initiatives. Committed to human rights and preventing modern slavery, with policies including a modern slavery and human trafficking policy, Code of Conduct, Anti-Bribery and Corruption Policy, and Whistleblowing Policy.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: Uses foreign currency forward contracts to manage short-term foreign exchange risk.
• Translation Hedging: Employs net investment hedges for balance sheet currency exposure in major foreign currencies.
• Economic Hedging: Aims for a natural hedged position through local currency debt to mitigate long-term competitive exposure.
• Interest Rate Hedging: Utilizes interest rate caps and interest rate swaps for US$ SOFR debt, £ SONIA debt, and AUD BBSW/BBSY debt to manage interest rate risk. Approximately 58% of outstanding debt obligations were floating rate at December 31, 2024.