net rent is $32. Our 10 largest tenants occupy 15.4 million square feet with the largest tenant class consisting of government and  government agencies representing 5.5 million square feet.  In North America, average in-place net rents across our 81.3 million square foot portfolio approximate $26 per square foot  compared to $26 per square foot at the end of 2012. Net rents represent a discount of approximately 15.7% to the average market  rent of $31 per square foot. This gives us confidence that we will be able to maintain or increase our net rental income in the  coming years and, together with our high overall occupancy, to exercise patience in signing new leases.  In Australasia, average in-place net rents in our 10.8 million square foot portfolio are $48 per square foot, which represents a  6% discount to market rents. The occupancy rate across the portfolio remains high at 97.6% and the weighted average lease term  is approximately six years. Leases in Australia typically include annual escalations, with the result that in-place lease rates tend  to increase along with long-term increases in market rents. Of our 19 million square feet of office developments, 8.4 million are under active development, 2.3 million are in the planning  stage and 8.2 million are held for future development. Active developments at December 31, 2013 had incurred a cost of  $951 million and had a total planned development cost of $732 per square foot with a weighted average planned construction  period of seven years. BPY’s FFO from retail operations, which is derived largely from its ownership interest in GGP, increased to $298 million in 2013  (2012 – $259 million), of which our share was $281 million and $259 million, respectively. BPY’s net share of GGP’s funds from operations was $271 million compared to $251 million in 2012. The growth in FFO  reflects increases in both net rents and occupancy. Initial rental rates for leases commencing in 2013 increased by 12.3% or  $7.05 per square foot, to $64.29 per square foot when compared to the rental rate for expired leases. Tenant sales were $564 per  square foot on a trailing 12-month basis as at year end, representing a 3.6% increase over the prior year on a comparable basis.  The remaining FFO includes the results of Rouse Properties, which was spun out of GGP during 2012, and our share of FFO  from our Brazilian retail property fund.  Total leasing activity during the year consisted of 14.6 million square feet of new leases at an average in-place net rent of $54.30  during the year and 13.5 million square feet of lease expiries at expiring net rents of $50.39 per square foot. This resulted in an  increase in average in-place net rents from $50.48 to $53.39 per square foot. Overall occupancy in our retail property portfolio  was 95.9% (2012 – 95.1%), and represented an average lease term of six years. Portfolio net rents represent a discount of  approximately 13% compared to market rents of $61.38 per square foot. Contractual lease expiries in the upcoming year consist  of 6.9 million square feet and the associated expiring average in-place net rent is $55. GGP completed 10.7 million square feet of new and renewal leasing in 2013, excluding anchor tenants. Same store regional mall  percentage leased was 97.1% at year-end 2013, an increase of 100 basis points over year-end 2012 and in-place rents increased  by 5.2% to $57.75 per square foot.  BPY holds industrial, multifamily and other property assets primarily through funds that are managed by us. The carrying value  of BPY’s investment in these operations increased by $404 million during 2013 to $1,042 million at December 31, 2013, and its  share of the associated FFO increased to $61 million (2012 – $10 million) largely as a result of acquisitions. Common equity by segment at the end of 2013 was $13.3 billion (2012 – $13.0 billion). The distribution of BPY units in  April 2013 reduced segment equity by $0.9 billion, which was more than offset by our purchase of additional units in BPY for  $995 million in the fourth quarter of 2013 and undistributed net income.  We continue to sell other investments at opportunistic times as they are not core to our operations. We sold three retail properties  in 2013 for $265 million generating net proceeds of $115 million. As noted above, we hope to complete the merger of BPY and BPO during the first half of 2014, positioning BPY as one of the  largest and most diverse global real estate investment entities.  We remain focused on the following strategic priorities: • Realizing value from our properties through proactive leasing and select redevelopment initiatives; • Prudent capital management, including refinancing mature properties and disposition of select mature or non-core assets;  • Advancing development assets as the economy rebounds and supply constraints create opportunities; and • Renewing and extending borrowings to take advantage of the current low interest rate environment. 42 BROOKFIELD ASSET MANAGEMENT  Outlook and Growth Initiatives Other Property Assets and Liabilities Common Equity by Segment Multifamily, Industrial and Other Properties Retail Properties