Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Listings [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-35505 |
Entity Registrant Name | Brookfield Property Partners L.P. |
Entity Incorporation, State or Country Code | D0 |
Entity Address, Address Line One | 73 Front Street |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 12 |
Entity Address, Country | BM |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001545772 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
Nasdaq Stock Market | 6.50% Class A Cumulative Redeemable Perpetual Units, Series 1 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 6.50% Class A Cumulative Redeemable Perpetual Units, Series 1 |
Trading Symbol | BPYPP |
Security Exchange Name | NASDAQ |
Nasdaq Stock Market | 6.375% Class A Cumulative Redeemable Perpetual Units, Series 2 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 6.375% Class A Cumulative Redeemable Perpetual Units, Series 2 |
Trading Symbol | BPYPO |
Security Exchange Name | NASDAQ |
Nasdaq Stock Market | 5.750% Class A Cumulative Redeemable Perpetual Units, Series 3 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 5.750% Class A Cumulative Redeemable Perpetual Units, Series 3 |
Trading Symbol | BPYPN |
Security Exchange Name | NASDAQ |
Nasdaq Stock Market | 6.25% Class A Cumulative Redeemable Units, Series 1 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 6.25% Class A Cumulative Redeemable Units, Series 1 |
Trading Symbol | BPYPM |
Security Exchange Name | NASDAQ |
Business Contact | |
Entity Listings [Line Items] | |
Contact Personnel Name | Bryan K. Davis |
Entity Address, Address Line One | 73 Front Street |
Entity Address, Address Line Two | 5th Floor |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 12 |
Entity Address, Country | BM |
City Area Code | 441 |
Local Phone Number | 294-3309 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | Deloitte LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 1208 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Investment properties | $ 68,585 | $ 64,613 |
Equity accounted investments | 19,943 | 20,807 |
Property, plant and equipment | 9,401 | 5,623 |
Goodwill | 946 | 832 |
Intangible assets | 966 | 964 |
Other non-current assets | 5,217 | 3,578 |
Loans and notes receivable | 372 | 152 |
Total non-current assets | 105,430 | 96,569 |
Current assets | ||
Loans and notes receivable | 314 | 73 |
Accounts receivable and other | 2,176 | 2,276 |
Cash and cash equivalents | 4,020 | 2,576 |
Total current assets | 6,510 | 4,925 |
Assets held for sale | 576 | 10,510 |
Total assets | 112,516 | 112,004 |
Non-current liabilities | ||
Debt obligations | 38,858 | 38,579 |
Capital securities | 2,233 | 3,024 |
Other non-current liabilities | 2,443 | 1,499 |
Deferred tax liabilities | 3,064 | 3,250 |
Total non-current liabilities | 46,598 | 46,352 |
Current liabilities | ||
Debt obligations | 19,704 | 13,742 |
Capital securities | 600 | 61 |
Accounts payable and other liabilities | 3,877 | 3,762 |
Total current liabilities | 24,181 | 17,565 |
Liabilities associated with assets held for sale | 0 | 3,082 |
Total liabilities | 70,779 | 66,999 |
Equity | ||
Limited partners | 8,217 | 8,805 |
General partner | 4 | 4 |
Non-controlling interests attributable to: | ||
Redeemable/exchangeable and special limited partnership units | 14,688 | 15,736 |
FV LTIP units of the Operating Partnership | 45 | 55 |
Interests of others in operating subsidiaries and properties | 18,084 | 19,706 |
Total equity | 41,737 | 45,005 |
Total liabilities and equity | 112,516 | 112,004 |
Preferred equity | ||
Equity | ||
Preferred equity | $ 699 | $ 699 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Commercial property revenue | $ 4,849 | $ 5,163 | $ 5,397 |
Hospitality revenue | 1,511 | 1,073 | 702 |
Investment and other revenue | 1,005 | 864 | 494 |
Total revenue | 7,365 | 7,100 | 6,593 |
Direct commercial property expense | 1,852 | 1,931 | 1,975 |
Direct hospitality expense | 1,141 | 910 | 908 |
Investment and other expense | 328 | 294 | 69 |
Interest expense | 2,683 | 2,593 | 2,592 |
General and administrative expense | 930 | 924 | 816 |
Total expenses | 6,934 | 6,652 | 6,360 |
Total fair value (losses) gains, net | 20 | 2,521 | (1,322) |
Share of net earnings from equity accounted investments | 826 | 1,020 | (749) |
Income (loss) before income taxes | 1,277 | 3,989 | (1,838) |
Income tax expense | 281 | 490 | 220 |
Net income (loss) | 996 | 3,499 | (2,058) |
Net income (loss) attributable to: | |||
Limited partners | (47) | 530 | (1,098) |
General partner | 0 | 0 | 0 |
Non-controlling interests attributable to: | |||
Redeemable/exchangeable and special limited partnership units | (85) | 716 | (1,119) |
Limited partnership units of Brookfield Office Properties Exchange LP | 0 | 2 | (7) |
FV LTIP units of the Operating Partnership | 0 | 3 | (4) |
Class A shares of Brookfield Properties Retail Holding LLC | 0 | 25 | (130) |
Interests of others in operating subsidiaries and properties | $ 1,128 | $ 2,223 | $ 300 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |||
Net income (loss) | $ 996 | $ 3,499 | $ (2,058) |
Items that may be reclassified to net income: | |||
Foreign currency translation | (505) | (277) | 737 |
Cash flow hedges | 49 | 95 | 116 |
Equity accounted investments | 128 | 54 | (58) |
Items that will not be reclassified to net income: | |||
Securities - fair value through other comprehensive income (“FVTOCI”) | (26) | (33) | 17 |
Share of revaluation surplus on equity accounted investments | 113 | 354 | (206) |
Remeasurement of defined benefit obligations | 1 | 0 | (1) |
Revaluation surplus | 655 | 811 | (191) |
Total other comprehensive income | 415 | 1,004 | 414 |
Total comprehensive income (loss) | 1,411 | 4,503 | (1,644) |
Limited partners | |||
Net (loss) income | (47) | 530 | (1,098) |
Other comprehensive income | 8 | 116 | 211 |
Comprehensive income attributable to Limited partners | (39) | 646 | (887) |
General partner | |||
Net income (loss) | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Comprehensive income attributable to General Partners | 0 | 0 | 0 |
Redeemable/exchangeable and special limited partnership units | |||
Net (loss) income | (85) | 716 | (1,119) |
Other comprehensive income | 14 | 200 | 215 |
Comprehensive income attributable to Redeemable/exchangeable and special limited partnership units | (71) | 916 | (904) |
Limited partnership units of Brookfield Office Properties Exchange LP | |||
Net income (loss) | 0 | 2 | (7) |
Other comprehensive income | 0 | 0 | 1 |
Comprehensive income (loss) attributable to Limited partnership units of Brookfield Office Properties Exchange LP | 0 | 2 | (6) |
FV LTIP units of the Operating Partnership | |||
FV LTIP units of the Operating Partnership | 0 | 3 | (4) |
Other comprehensive income | 0 | 1 | 1 |
Comprehensive income attributable to FV LTIP units of the Operating Partnership | 0 | 4 | (3) |
Class A shares of Brookfield Properties Retail Holding LLC | |||
Net income (loss) | 0 | 25 | (130) |
Other comprehensive income | 0 | 1 | 25 |
Comprehensive income attributable to interest in Brookfield Property REIT Inc. | 0 | 26 | (105) |
Interests of others in operating subsidiaries and properties | |||
Net income | 1,128 | 2,223 | 300 |
Other comprehensive income (loss) | 393 | 686 | (39) |
Comprehensive income attributable to Interests of others in operating subsidiaries and properties | 1,521 | 2,909 | 261 |
Total comprehensive income (loss) | $ 1,411 | $ 4,503 | $ (1,644) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Limited partners | General partner | Capital Preferred equity | Capital Limited partners | Capital General partner | Retained earnings Limited partners | Retained earnings General partner | Ownership changes Limited partners | Ownership changes General partner | Accumulated other compre-hensive (loss) income Limited partners | Accumulated other compre-hensive (loss) income General partner | Non-controlling interests Redeemable/ exchangeable and special limited partnership units | Non-controlling interests Limited partnership units of Brookfield Office Properties Exchange LP | Non-controlling interests FV LTIP units of the Operating Partnership | Non-controlling interests Class A shares of Brookfield Properties Retail Holding LLC Class A | Non-controlling interests Interests of others in operating subsidiaries and properties |
Beginning balance at Dec. 31, 2019 | $ 44,935 | $ 13,274 | $ 4 | $ 420 | $ 9,257 | $ 4 | $ 2,539 | $ 2 | $ 1,960 | $ (1) | $ (482) | $ (1) | $ 13,200 | $ 87 | $ 35 | $ 1,930 | $ 15,985 |
Net income (loss) | (2,058) | (1,098) | (1,098) | (1,119) | (7) | (4) | (130) | 300 | |||||||||
Other comprehensive income (loss) | 414 | 211 | 211 | 215 | 1 | 1 | 25 | (39) | |||||||||
Total comprehensive income (loss) | (1,644) | (887) | (1,098) | 211 | (904) | (6) | (3) | (105) | 261 | ||||||||
Distributions | (2,167) | (583) | (583) | (587) | (4) | (2) | (68) | (923) | |||||||||
Preferred distributions | (42) | (20) | (20) | (20) | (2) | ||||||||||||
Issuances / repurchases of equity interests in operating subsidiaries | 441 | (231) | 279 | (857) | (352) | 1,012 | (34) | 198 | 5 | (174) | 364 | ||||||
Exchange of exchangeable units | 0 | 3 | 2 | 1 | 1 | (4) | |||||||||||
Conversion of Class A shares of Brookfield Properties Retail Holding LLC | 0 | 337 | 160 | 177 | (337) | ||||||||||||
Change in relative interests of non-controlling interests | 0 | (184) | (140) | (44) | 361 | 17 | (194) | ||||||||||
Ending balance at Dec. 31, 2020 | 41,523 | 11,709 | 4 | 699 | 8,562 | 4 | 486 | 2 | 3,010 | (1) | (349) | (1) | 12,249 | 73 | 52 | 1,050 | 15,687 |
Net income (loss) | 3,499 | 530 | 530 | 716 | 2 | 3 | 25 | 2,223 | |||||||||
Other comprehensive income (loss) | 1,004 | 116 | 116 | 200 | 1 | 1 | 686 | ||||||||||
Total comprehensive income (loss) | 4,503 | 646 | 530 | 116 | 916 | 2 | 4 | 26 | 2,909 | ||||||||
Distributions | (4,173) | (358) | (358) | (504) | (1) | 2 | (13) | (3,295) | |||||||||
Preferred distributions | (44) | (19) | (19) | (24) | (1) | ||||||||||||
Issuances / repurchases of equity interests in operating subsidiaries | 3,688 | 23 | 2 | 17 | 4 | 1,630 | (30) | 2,065 | |||||||||
Privatization of the Partnership | (491) | (3,454) | (2,872) | (199) | (483) | 100 | 1,502 | (71) | 3 | (811) | 2,340 | ||||||
Exchange of exchangeable units | (1) | 2 | 2 | 1 | (1) | (3) | |||||||||||
Conversion of Class A shares of Brookfield Properties Retail Holding LLC | 0 | 241 | 167 | 74 | (241) | ||||||||||||
Change in relative interests of non-controlling interests | 0 | 15 | (8) | 23 | (33) | (2) | 20 | ||||||||||
Ending balance at Dec. 31, 2021 | 45,005 | 8,805 | 4 | 699 | 5,861 | 4 | 457 | 2 | 2,598 | (1) | (111) | (1) | 15,736 | 0 | 55 | 0 | 19,706 |
Net income (loss) | 996 | (47) | (47) | (85) | 1,128 | ||||||||||||
Other comprehensive income (loss) | 415 | 8 | 8 | 14 | 393 | ||||||||||||
Total comprehensive income (loss) | 1,411 | (39) | (47) | 8 | (71) | 1,521 | |||||||||||
Distributions | (4,924) | (419) | (419) | (748) | (2) | (3,755) | |||||||||||
Preferred distributions | (44) | (16) | (16) | (28) | |||||||||||||
Issuances / repurchases of equity interests in operating subsidiaries | 289 | (120) | (42) | (78) | (207) | 4 | 612 | ||||||||||
Change in relative interests of non-controlling interests | 0 | 6 | 6 | 6 | (12) | ||||||||||||
Ending balance at Dec. 31, 2022 | $ 41,737 | $ 8,217 | $ 4 | $ 699 | $ 5,861 | $ 4 | $ (67) | $ 2 | $ 2,526 | $ (1) | $ (103) | $ (1) | $ 14,688 | $ 0 | $ 45 | $ 0 | $ 18,084 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) | $ 996 | $ 3,499 | $ (2,058) |
Share of equity accounted earnings, net of distributions | (563) | (848) | 1,367 |
Fair value (gains) losses, net | (20) | (2,521) | 1,322 |
Deferred income tax expense (benefit) | 118 | 356 | 162 |
Depreciation and amortization | 287 | 308 | 319 |
Working capital and other | (871) | (188) | 220 |
Cash flows from (used in) operating activities | (53) | 606 | 1,332 |
Financing activities | |||
Debt obligations, issuance | 9,048 | 16,010 | 11,392 |
Debt obligations, repayments | (10,704) | (15,704) | (9,821) |
Capital securities, issued | 57 | 932 | 0 |
Capital securities, redeemed | (3) | (301) | (13) |
Preferred equity, issued | 0 | 0 | 278 |
Non-controlling interests, issued | 2,605 | 4,624 | 350 |
Non-controlling interests, purchased | (2,455) | (263) | (30) |
Settlement of deferred consideration | (5) | 0 | 0 |
Repayment of lease liabilities | (26) | (23) | (22) |
Limited partnership units, issued | 0 | 0 | 738 |
Issuances to redeemable/exchangeable and special limited partnership unitholders | 0 | 1,252 | 225 |
Cash flows from (used in) financing activities | (6,458) | (666) | (215) |
Acquisitions | |||
Investment properties | (1,395) | (2,107) | (2,306) |
Property, plant and equipment | (207) | (156) | (169) |
Equity accounted investments | (91) | (688) | (522) |
Financial assets and other | (889) | (1,290) | (1,169) |
Cash acquired in business combinations | 70 | 35 | 0 |
Dispositions | |||
Investment properties | 1,861 | 2,431 | 2,252 |
Property, plant and equipment | 58 | 373 | 29 |
Equity accounted investments | 972 | 796 | 124 |
Financial assets and other | 1,702 | 1,267 | 1,273 |
Disposition of subsidiaries | 5,689 | (203) | 522 |
Cash impact of deconsolidation and reclassification to assets held for sale | (73) | 0 | (32) |
Restricted cash and deposits | 114 | (276) | (101) |
Cash flows from (used in) investing activities | 7,811 | 182 | (99) |
Cash and cash equivalents | |||
Net change in cash and cash equivalents during the year | 1,300 | 122 | 1,018 |
Effect of exchange rate fluctuations on cash and cash equivalents held in foreign currencies | (59) | (19) | 17 |
Balance, beginning of year | 2,576 | 2,473 | 1,438 |
Balance, end of year | 4,020 | 2,576 | 2,473 |
Cash paid for: | |||
Income taxes, net of refunds received | 114 | 67 | 107 |
Interest (excluding dividends on capital securities) | 2,450 | 2,312 | 2,276 |
Disposal groups classified as held for sale | |||
Cash and cash equivalents | |||
Net change in cash and cash equivalents during the year | 203 | 0 | 0 |
Exchange LP Units | |||
Financing activities | |||
Repurchased units | 0 | (18) | 0 |
Limited partners | |||
Operating activities | |||
Net income (loss) | (47) | 530 | (1,098) |
Financing activities | |||
Repurchased units | 0 | (2,660) | (935) |
Distributions | (419) | (358) | (583) |
Class A shares of Brookfield Properties Retail Holding LLC | |||
Financing activities | |||
Repurchased units | 0 | (370) | (171) |
Distributions | 0 | (13) | (68) |
Interests of others in operating subsidiaries and properties | |||
Financing activities | |||
Distributions | (3,757) | (3,223) | (920) |
Preferred distributions | |||
Financing activities | |||
Distributions | (44) | (44) | (42) |
Redeemable/ exchangeable and special limited partnership units | |||
Financing activities | |||
Distributions | (748) | (504) | (587) |
Limited partnership units of Brookfield Office Properties Exchange LP | |||
Financing activities | |||
Distributions | 0 | (1) | (4) |
FV LTIP units of the Operating Partnership | |||
Financing activities | |||
Repurchased units | (5) | 0 | 0 |
Distributions | $ (2) | $ (2) | $ (2) |
ORGANIZATION AND NATURE OF THE
ORGANIZATION AND NATURE OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
Management Commentary Explanatory [Abstract] | |
ORGANIZATION AND NATURE OF THE BUSINESS | ORGANIZATION AND NATURE OF THE BUSINESS Brookfield Property Partners L.P. (“BPY” or the “partnership”) was formed as a limited partnership under the laws of Bermuda, pursuant to a limited partnership agreement dated January 3, 2013, as amended and restated on August 8, 2013. BPY is a subsidiary of Brookfield Corporation, formerly known as Brookfield Asset Management Inc. (“BAM”) (“Brookfield Corporation,” “BN,” “The Corporation,”or the “parent company”) and is the primary entity through which the parent company and its affiliates own, operate, and invest in commercial and other income producing property on a global basis. The partnership’s sole direct investment is a 36% managing general partnership units (“GP Units”) interest in Brookfield Property L.P. (the “Operating Partnership”). The GP Units provide the partnership with the power to direct the relevant activities of the Operating Partnership. The partnership’s limited partnership units (“BPY Units” or “LP Units”) were delisted from the Nasdaq Stock Market (“Nasdaq”) and the Toronto Stock Exchange (“TSX”) on July 26, 2021. See Note 3, Privatization of the Partnership for further information. The partnership’s 6.50% Preferred Units, Series 1, 6.375% Preferred Units, Series 2, 5.75% Preferred Units, Series 3, and Brookfield Property Preferred L.P.’s (“New LP”) 6.25% Preferred Units, Series 1 are traded on the Nasdaq under the symbols “BPYPP”, “BPYPO”, “BPYPN”, and “BPYPM” respectively. The New LP 6.25% Preferred Units, Series 1 are also traded on the TSX under the symbol “BPYP.PR.A”. The registered head office and principal place of business of the partnership is 73 Front Street, 5th Floor, Hamilton HM 12, Bermuda. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Statement of compliance These consolidated financial statements of the partnership and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were approved and authorized for issue by the Board of Directors of the partnership on February 24, 2023. b) Basis of presentation These consolidated financial statements have been prepared on a going concern basis and are presented in United States (“U.S.”) Dollars rounded to the nearest million unless otherwise indicated. (i) Subsidiaries The consolidated financial statements include the accounts of the partnership and its subsidiaries over which the partnership has control. Control exists when the partnership has power over its investee, has exposure, or rights, to variable returns from its involvement with the investee and has the ability to use its power over the investee to affect the amount of its returns. The partnership considers all relevant facts and circumstances in assessing whether or not the partnership’s interests in the investee are sufficient to give it power over the investee. Consolidation of a subsidiary begins on the date on which the partnership obtains control over the subsidiary and ceases when the partnership loses control over the subsidiary. Income and expenses of a subsidiary acquired or disposed of during a reporting period are consolidated only for the period when the partnership has control over the subsidiary. Changes in the partnership’s ownership interests in subsidiaries that do not result in loss of control over the subsidiary are accounted for as equity transactions whereby the difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received, are recognized directly in equity and attributed to owners of the partnership. All accounts and transactions among the partnership and its subsidiaries are eliminated on consolidation. In cases where a subsidiary reports under a different accounting policy, adjustments are made to the financial statements of the subsidiary to present its financial position and financial performance in accordance with the partnership’s accounting policy. Net income and each component of other comprehensive income are attributed to owners of the partnership and to non-controlling interests. During the third quarter of 2021, Brookfield Corporation acquired all LP Units and limited partnership units of Brookfield Office Properties Exchange LP (“Exchange LP”) Units that it did not previously own (“Privatization”), in exchange for cash consideration, BN class A limited voting shares (“BN shares”) and BPY preferred units (“New LP Preferred Units”). See Note 3, Privatization of the Partnership for further discussion. Non-controlling interests in the partnership’s operating subsidiaries and properties, redeemable/exchangeable partnership units of the Operating Partnership (“Redeemable/Exchangeable Partnership Units” or “REUs”), special limited partnership units of the Operating Partnership (“Special LP Units”) and FV LTIP units of the Operating Partnership (“FV LTIP Units”) are presented separately in equity on the consolidated balance sheets. No Exchange LP Units or Class A stock of Brookfield Properties Retail Holding LLC (“BPYU Units”) are held by public holders following the Privatization. The Redeemable/Exchangeable Partnership Units have the same economic attributes as LP Units and prior to the Privatization, Exchange LP Units and BPYU Units had the same economic attributes as LP Units. Accordingly, the net income and components of other comprehensive income allocated to these units are equivalent to that allocated to the LP Units (on a per unit basis). Net income and the components of comprehensive income of the partnership’s operating subsidiaries and properties are generally allocated between the partnership and non-controlling equity holders based on the relative proportion of equity interests. Certain of the partnership’s subsidiaries are subject to profit sharing arrangements with affiliated entities who hold non-controlling interests that result in allocation of income on an other than proportionate basis if specified targets are met. In these circumstances, net income is allocated between the partnership and non-controlling interests based on proportionate equity interest until the attribution of profits under the agreement is no longer subject to adjustment based on future events. In the period that allocation of the subsidiary’s cumulative earnings under the profit-sharing arrangement is no longer subject to adjustment, it is recognized as a fair value loss attributable to unitholders for the period. (ii) Associates and joint ventures An associate is an entity over which the partnership has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee. The partnership is presumed to have significant influence when it holds 20 percent or more of the voting rights of an investee, unless it can be clearly demonstrated that this is not the case. The partnership does not control its associates. A joint arrangement is an arrangement in which two or more parties have joint control. Joint control is the contractually agreed upon sharing of control where decisions about the relevant activities require the unanimous consent of the parties sharing control. A joint venture is a joint arrangement where the parties that have joint control have rights to the net assets of the arrangement. None of the parties involved have unilateral control of a joint venture. The partnership accounts for its interests in associates and joint ventures using the equity method of accounting. Under the equity method, investment balances in an associate or joint venture are carried on the consolidated balance sheets at initial cost as adjusted for the partnership’s proportionate share of profit or loss and other comprehensive income of the joint venture or associate. When an interest in an associate or joint venture is initially acquired or increases, the partnership determines its share of the net fair value of the identifiable assets and liabilities of the investee that it has acquired, consistent with the procedure performed when acquiring control of a business. Goodwill relating to an associate or joint venture, represented as an excess of the cost of the investment over the net fair value of the partnership’s share of the net fair value of the identifiable assets and liabilities, is included in the carrying amount of the investment. Any excess of the partnership’s share of the net fair value of the associate’s or joint venture’s identifiable assets and liabilities over the cost of the investment results in a gain that is included in the partnership’s share of the associate or joint venture’s profit or loss in the period in which the investment is acquired or increases. The partnership determines at the end of each reporting period whether there exist any indications that an investment may be impaired. If any such indication exists, the partnership estimates the recoverable amount of the asset, which is the higher of (i) fair value less costs to sell and (ii) value in use. Value in use is the present value of the future cash flows expected to be derived from such an investment and may result in a measure which is different from fair value less costs to sell. For equity accounted investments, for which quoted market prices exist, the partnership also considers whether a significant or prolonged decline in the fair value of the equity instrument below its carrying value is also objective evidence of impairment. When the partnership transacts with a joint venture or an associate, any gain or loss is eliminated only to the extent of the partnership’s proportionate share and the remaining amounts are recognized in the partnership’s consolidated financial statements. Outstanding balances between the partnership and jointly controlled entities are not eliminated on the balance sheet. (iii) Joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to assets and obligations for liabilities relating to the arrangement. This usually results from direct interests in the assets and liabilities of an investee rather than through the establishment of a separate legal entity. None of the parties involved have unilateral control of a joint operation. The partnership recognizes its assets, its liabilities and its share of revenues and expenses of the joint operations in accordance with the IFRS applicable to the particular assets, liabilities, revenues and expenses. When the partnership sells or contributes assets to a joint operation in which it is a joint operator, the partnership is considered to be conducting transactions with the other parties to the joint operation, and any gain or loss resulting from the transactions is recognized in the partnership’s consolidated financial statements only to the extent of the other parties’ interests in the joint operation. When the partnership purchases an asset from a joint operation in which it is a joint operator, the partnership does not recognize its share of the gain or loss until those assets are resold to a third party. c) Foreign currency translation and transactions The U.S. Dollar is the functional currency and presentation currency of the partnership. The functional currency of each of the partnership’s subsidiaries, associates, joint ventures and joint operations is determined based on their primary economic environment, the currency in which funds from financing activities are generated and the currency in which receipts from operating activities are usually retained. Subsidiaries, associates or joint ventures having a functional currency other than the U.S. Dollar translate the carrying amounts of their assets and liabilities when reporting to the partnership at the rate of exchange prevailing as of the balance sheet date, and their revenues and expenses at average exchange rates during the quarterly reporting period. Any gains or losses on foreign currency translation are recognized by the partnership in other comprehensive income. On disposition or partial disposition resulting in the loss of control of a foreign operation, the accumulated foreign currency translation relating to that foreign operation is reclassified to fair value gain or loss in net income. On partial disposal of a foreign operation in which control is retained, the proportionate share of the accumulated foreign currency translation relating to that foreign operation is reattributed to the non-controlling interests. The partnership’s foreign currency transactions are translated into the functional currency using exchange rates as of the date of the transactions. At the end of each reporting period, foreign currency denominated monetary assets and liabilities are translated to the functional currency using the exchange rate prevailing as of the balance sheet date with any gain or loss recognized in net income, except for those related to monetary liabilities qualified as hedges of the partnership’s investment in foreign operations or intercompany loans with foreign operations for which settlement is neither planned nor likely to occur in the foreseeable future, which are included in other comprehensive income. Non-monetary assets and liabilities measured at fair value are translated at the exchange rate prevailing as of the date when the fair value was determined. Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. d) Cash and cash equivalents Cash and cash equivalents includes cash on hand and all non-restricted highly liquid investments with original maturities of three months or less. e) Investment properties Investment properties consists of commercial properties which are principally held to earn rental income and commercial developments that are being constructed or developed for future use as commercial properties. Investment properties are measured initially at cost, or fair value if acquired in a business combination (see Note 2(p), Business Combinations , for further discussion). The cost of commercial development properties includes direct development costs, realty taxes, borrowing costs directly attributable to the development and administrative costs, e.g., salaries and overhead that are specifically attributable to a development project. The partnership elects the fair value model for all investment properties and measures them at fair value subsequent to initial recognition on the consolidated balance sheet. As a result, it is not necessary to assess the carrying amounts of the investment properties for impairment. Substantially all of the partnership’s investment properties are valued using one of two accepted income approaches, the discounted cash flow approach or the direct capitalization approach. Under the discounted cash flow approach, cash flows for each property are forecast for an assumed holding period, generally, ten years. A capitalization rate is applied to the terminal year net operating income and an appropriate discount rate is applied to those cash flows to determine a value at the reporting date. Under the direct capitalization method, a capitalization rate is applied to estimated stabilized annual net operating income to determine value. In accordance with its policy, the partnership generally measures and records its commercial properties and developments using valuations prepared by management. However, for certain subsidiaries, the partnership relies on quarterly or annual valuations prepared by external valuation professionals. Where an external appraisal is obtained for a property that is valued using a model developed by management, the partnership compares the results of those external appraisals to its internally prepared values and reconciles significant differences when they arise. Discount and terminal capitalization rates are verified by comparing to market data, third party reports, research material and brokers opinions. Where there has been a recent market transaction for a specific property, such as an acquisition or sale of a partial interest, the partnership values the property on that basis. Certain of the partnership’s investment properties are right-of-use assets arising from leases where the partnership is the lessee, which are subsequently measured at fair value (see Note 2(j), Leases , for further discussion). Borrowing costs associated with direct expenditures on properties under development or redevelopment are capitalized. Borrowing costs are also capitalized on those properties acquired specifically for redevelopment in the short-term where activities necessary to prepare them for redevelopment are in progress. The amount of borrowing costs capitalized is determined first by borrowings specific to a property where relevant, and then by applying a weighted average borrowing cost to eligible expenditures after adjusting for borrowings specific to other developments. Where borrowings are associated with specific developments, the amount capitalized is the gross borrowing costs incurred less any incidental investment income. Borrowing costs are capitalized from the commencement of the development until the date of practical completion. The capitalization of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. The partnership considers practical completion to have occurred when the property is capable of operating in the manner intended by management. Generally this occurs upon completion of construction and receipt of all necessary occupancy and other material permits. Where the partnership has pre-leased space as of or prior to the start of the development and the lease requires the partnership to construct tenant improvements which enhance the value of the property, practical completion is considered to occur on completion of such improvements. Initial direct leasing costs incurred by the partnership in negotiating and arranging tenant leases are included in the cost of investment properties. f) Assets held for sale Non-current assets and groups of assets and liabilities which comprise disposal groups are presented as assets held for sale where the asset or disposal group is available for immediate sale in its present condition, and the sale is highly probable. For this purpose, a sale is highly probable if management is committed to a plan to achieve the sale; there is an active program to find a buyer; the non-current asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; the sale is anticipated to be completed within one year from the date of classification; and it is unlikely there will be significant changes to the plan or that the plan will be withdrawn. Non-current assets and disposal groups held for sale that are not investment properties are recorded at the lower of carrying amount and fair value less costs to sell on the consolidated balance sheet. Any gain or loss arising from the change in measurement basis as a result of reclassification is recognized in the profit or loss at the time of reclassification. Investment properties that are held for sale are recorded at fair value determined in accordance with IFRS 13, Fair Value Measurement . Where a component of an entity has been disposed of, or is classified as held for sale, and it represents a separate major line of business or geographical area of operations or is a subsidiary acquired exclusively with a view to resale, the related results of operations and gain or loss on reclassification or disposition are presented in discontinued operations. g) Hospitality assets The partnership accounts for its investments in hospitality properties as property, plant and equipment under the revaluation model. Hospitality properties are recognized initially at cost if acquired in an asset acquisition, or fair value if acquired in a business combination (see Note 2(p), Business Combinations , for further discussion) and subsequently carried at fair value at the revaluation date less any accumulated impairment and subsequent accumulated depreciation. The partnership evaluates the carrying amount of hospitality properties when events or circumstances indicate there may be an impairment. The partnership depreciates these assets on a straight-line basis over their relevant estimated useful lives. Fair values of hospitality properties are determined using a depreciated replacement cost method based on the age, physical condition and the construction costs of the assets. Fair value estimates for hospitality properties represent the estimated fair value of the property, plant and equipment of the hospitality business only and do not include any associated intangible assets. Revaluations of hospitality properties are performed annually at December 31, the end of the fiscal year. Where the carrying amount of an asset is increased as a result of a revaluation, the increase is recognized in other comprehensive income and accumulated in equity within revaluation surplus, unless the increase reverses a previously recognized revaluation loss recorded through prior period net income, in which case that portion of the increase is recognized in net income. Where the carrying amount of an asset is decreased, the decrease is recognized in other comprehensive income to the extent of any balance existing in revaluation surplus in respect of the asset, with the remainder recognized in net income. Revaluation gains are recognized in other comprehensive income, and are not subsequently recycled into profit or loss. The cumulative revaluation surplus is transferred directly to retained earnings when the asset is derecognized.Certain of the partnership’s hospitality assets are right- of-use assets arising from leases where the partnership is the lessee, which are subsequently measured on a depreciated cost basis since they represent a separate class of property, plant and equipment to the partnership’s owned hospitality assets (see Note 2(j), Leases , for further discussion). h) Inventory Develop-for-sale multifamily projects, residential development lots, homes and residential condominium projects are recorded in inventory. Residential development lots are recorded at the lower of cost, including pre-development expenditures and capitalized borrowing costs, and net realizable value, which the partnership determines as the estimated selling price of the inventory in the ordinary course of business in its completed state, less estimated expenses, including holding costs, costs to complete and costs to sell. Certain of the partnership’s inventory are right-of-use assets arising from leases where the partnership is the lessee, which are subsequently measured at cost subject to impairment (see Note 2(j), Leases , for further discussion). i) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the partnership takes into account the characteristics of the asset or liability and how market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Inputs to fair value measurement techniques are disaggregated into three hierarchical levels, which are directly based on the degree to which inputs to fair value measurement techniques are observable by market participants: • Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the asset’s or liability’s anticipated life. • Level 3 – Inputs are unobservable and reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs in determining the estimate. Fair value measurements are adopted by the partnership to calculate the carrying amounts of various assets and liabilities. j) Leases The partnership determines at the inception of a contract if the arrangement is, or contains, a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease components and non-lease components are separated on a relative stand-alone selling price basis for the partnership’s leases as lessor. For the partnership’s leases as lessee, the partnership applies the practical expedient which is available by asset class not to allocate contract consideration between lease and non-lease components. The partnership determines whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a period of time in exchange for consideration. The partnership recognizes a right-of-use (“ROU”) asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for leases with a lease term of 12 months or less (“short-term leases”) and leases of low value assets (“low-value leases”). For these leases, the partnership recognizes the lease payments as an expense on a straight-line basis over the lease term. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease if that rate can be readily determined. If the rate implicit in the lease cannot be readily determined, the partnership uses the incremental borrowing rate. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of similar value to the ROU asset in a similar economic environment. This rate is expected to be similar to the interest rate implicit in the lease. Where a lease contains a parental guarantee, the incremental borrowing rate may be determined with reference to the parent rather than the lessee. The partnership uses a single discount rate to account for portfolios of leases with similar characteristics. Lease payments included in the measurement of the lease liability is comprised of i) fixed lease payments, less any lease incentives; ii) variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; iii) the amount expected to be payable by the lessee under residual value guarantees; iv) the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and v) payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. Lease liabilities are presented in Accounts payable and other liabilities (current) and Other non-current liabilities (non-current) on the consolidated balance sheets. Lease liabilities are subsequently measured under the effective interest method that is increased by the interest expense on the lease liabilities recognized on the consolidated statements of income and reduced by lease payments made that are recognized in the consolidated statements of cash flows. Lease payments not included in the measurement of lease liabilities continue to be recognized in the direct commercial property expense, direct hospitality expense or general and administrative expense lines on the consolidated statements of income. A ROU asset comprises the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. ROU assets classified as investment properties are subsequently measured at fair value. ROU assets classified as property, plant and equipment are subsequently measured on a depreciated cost basis over the lease term. If such a lease transfers ownership of the underlying asset or the cost of the ROU asset reflects that the partnership expects to exercise a purchase option, the related ROU asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. ROU assets classified as inventory are subsequently carried at cost subject to impairment. ROU assets are presented in the respective lines based on their classification on the consolidated balance sheets. Whenever the partnership incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37 - Provision, Contingent Liabilities, and Contingent Assets. The costs are included in the related ROU asset. The partnership remeasures lease liabilities and makes a corresponding adjustment to the related ROU assets when i) the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate; ii) the lease payments have changed due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used); or iii) a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The partnership early adopted COVID-19 Related Rent Concessions, Amendment to IFRS 16 - Leases (“2020 IFRS 16 Amendment”) as of April 1, 2020. The 2020 IFRS 16 Amendment provides the partnership as lessee only with an optional exemption from assessing whether rent concessions related to COVID-19 meeting certain conditions are lease modifications. Such qualifying rent concessions are accounted for as if they are not lease modifications, generally resulting in the effects of rent abatements being recognized as variable lease payments. The partnership has applied the practical expedient to all such qualifying rent concessions. The adoption of the 2020 IFRS 16 Amendment did not have a material impact on the results of the partnership. The partnership adopted COVID-19 Related Rent Concessions beyond June 30 2021, Amendment to IFRS 16 – Leases (“2021 IFRS 16 Amendment”) as of January 1, 2021 in advance of its April 1, 2021 mandatory effective date. The 2021 IFRS 16 Amendment provides the partnership as lessee only with an extension to the scope of the exemption from assessing whether rent concessions related to COVID-19 meeting certain conditions are lease modifications. Such qualifying rent concessions are accounted for as if they are not lease modifications, generally resulting in the effects of rent abatements being recognized as variable lease payments. The partnership has applied the practical expedient to all such qualifying rent concessions. The adoption of the 2021 IFRS 16 Amendment did not have a material impact on the results of the partnership. k) Intangible assets Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at fair value at the acquisition date. The partnership’s intangible assets are comprised primarily of trademarks and licensing agreements. Subsequent to initial recognition, intangible assets with a finite life are measured at cost less accumulated amortization and impairment losses. Amortization is calculated on a straight-line basis over the estimated useful life of the intangible asset and is recognized in net income for the respective reporting period. Intangible assets with an indefinite life are measured at cost as adjusted for subsequent impairment. Impairment tests for intangible assets with an indefinite life are performed annually. Impairment losses previously taken may be subsequently reversed in net income of future reporting periods. l) Goodwill Goodwill represents the excess of the acquisition price paid for a business combination over the fair value of the net identifiable tangible and intangible assets and liabilities acquired. Upon initial recognition, goodwill is allocated to the cash-generating unit to which it relates. The partnership identifies a cash-generating unit as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The partnership evaluates the carrying amount of goodwill annually as of December 31 or more often when events or circumstances indicate there may be an impairment. The partnership’s goodwill impairment test is performed at the cash-generating unit level. If assets within a cash-generating unit or the cash-generating unit are impaired, impairments are taken for those assets or the cash-generating unit before any goodwill impairment test is performed. In assessing whether goodwill is impaired, the partnership assesses if the carrying value of a cash-generating unit, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs to sell and the present value of future cash flows expected from the cash-generating unit. Impairment losses recognized first reduce the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the cash-generating unit. Any goodwill impairment is charged to net income in the respective reporting period. Impairment losses on goodwill are not subsequently reversed. On disposal of a su |
PRIVATIZATION OF THE PARTNERSHI
PRIVATIZATION OF THE PARTNERSHIP | 12 Months Ended |
Dec. 31, 2022 | |
Privatization of Partnership [Abstract] | |
PRIVATIZATION OF THE PARTNERSHIP | PRIVATIZATION OF THE PARTNERSHIP During the first quarter of 2021, Brookfield Corporation announced a proposal to acquire all LP Units and limited partnership units of Brookfield Office Properties Exchange LP (“Exchange LP Units”) that it did not previously own (“Privatization”) for $18.17 cash per unit, BN shares, or New LP Preferred Units with a liquidation preference of $25.00 per unit (see Note 15, Capital Securities for further information), subject to pro-ration. On July 16, 2021, the Privatization was approved by the unitholders. On July 16, 2021, the Privatization was approved by the unitholders. On July 26, 2021, BN completed the Privatization and the acquisition of all BPYU Units, par value $.01 per share (“BPYU Units”) that it did not previously own. The LP Units were delisted from the TSX and Nasdaq at market close on July 26, 2021. The BPYU Units were delisted from Nasdaq at market close on the same date. The New LP Preferred Units issued in the privatization began trading on the TSX under the symbol “BPYP.PR.A” and Nasdaq under the symbol “BPYPM” on July 27, 2021. Based on unitholder elections, together with the amounts to be delivered to holders of BPYU Units, an aggregate of 51,971,192 units elected for cash, 271,358,615 units elected for BN shares and 17,970,971 units elected for New LP Preferred Units. As holders elected to receive more BN shares than were available under the transaction, unitholders that elected to receive BN shares received 54.5316% of the aggregate BN shares they elected to receive and the balance was delivered 93.05% in cash and 6.95% in New LP Preferred Units. Unitholders who made an election to receive 100% of their consideration in cash received $18.17 in cash and Unitholders who made an election to receive 100% of their consideration in New LP Preferred Units received 0.7268 New LP Preferred Units per LP Unit. Cash consideration of approximately $3.0 billion was paid by the partnership, whilst BN distributed 59,279,263 BN Class A shares and 19,287,783 New LP Preferred Units to holders of LP Units, BPYU Units and Exchange LP Units. The cash consideration was funded to the partnership by BN in exchange for approximately $2.5 billion non-voting common equity of a BPY subsidiary which is accounted for as non-controlling interests by BPY (“Canholdco Non-Voting Common Shares”) with the remainder for New LP Preferred Units. The New LP Preferred Units were recognized at a fair value of approximately $474 million upon issuance and classified as a financial liability under the amortized cost basis on the balance sheet. See Note 15, Capital Securities for further information on New LP Preferred Units. The impacts of the Privatization are disclosed separately in the Consolidated Statements of Changes in Equity for the year ended December 31, 2021. The Privatization was accounted for by the partnership as a redemption of LP Units, Exchange LP Units and BPYU Units for cash and REUs. The difference between the carrying value of the redeemed LP Units, Exchange LP Units, and BPYU Units and the fair value of the consideration paid was recognized in Ownership Changes and was attributed pro-rata to the remaining LP Units and the REUs. After the Privatization, all of the outstanding LP Units are owned by BN. No Exchange LP Units or BPYU Units are held by public holders following the Privatization. In connection with the Privatization, approximately $250 million of preferred equity of BPYU was fully redeemed for cash. Subsequent to the Privatization, there are no longer publicly traded LP Units. As such, earnings per unit is no longer presented. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
Investment property [abstract] | |
INVESTMENT PROPERTIES | INVESTMENT PROPERTIES The following table presents a roll forward of investment property balances for the years ended December 31, 2022 and 2021: Year ended Dec. 31, 2022 Year ended Dec. 31, 2021 (US$ Millions) Commercial Commercial Total Commercial Commercial Total Balance, beginning of year $ 62,313 $ 2,300 $ 64,613 $ 70,294 $ 2,316 $ 72,610 Changes resulting from: Property acquisitions 760 — 760 491 80 571 Capital expenditures 870 428 1,298 796 758 1,554 Property dispositions (1) (307) (1) (308) (1,299) (351) (1,650) Fair value (losses) gains, net (1,122) 64 (1,058) 1,791 171 1,962 Foreign currency translation (1,528) (149) (1,677) (558) (37) (595) Transfers between commercial properties and commercial developments 387 (387) — 635 (635) — Impact of deconsolidation due to loss of control (2) (575) — (575) — — — Manager Reorganization (3) 6,321 758 7,079 — — — Reclassifications of assets held for sale and other changes (1,052) (495) (1,547) (9,837) (2) (9,839) Balance, end of year (4) $ 66,067 $ 2,518 $ 68,585 $ 62,313 $ 2,300 $ 64,613 (1) Property dispositions represent the carrying value on date of sale. (2) The partnership deconsolidated its investment in a subsidiary as a result of the dilution of its interest. Prior to the transaction, the partnership's interest was consolidated and is now reflected as a financial asset. (3) See Note 32, Related Parties for further information on the Manager Reorganization. (4) Includes right-of-use commercial properties and commercial developments of $1,045 million and $127 million, respectively, as of December 31, 2022 (2021 - $557 million and $24 million, respectively). Current lease liabilities of $122 million (2021 - $118 million) has been included in accounts payable and other liabilities and non-current lease liabilities of $810 million (2021 - $558 million) have been included in other non-current liabilities. The partnership determines the fair value of each commercial property based upon, among other things, rental income from current leases and assumptions about rental income from future leases reflecting market conditions at the applicable balance sheet dates, less future cash outflows in respect of such leases. Investment property valuations are generally completed by undertaking one of two accepted income approach methods, which include either: i) discounting the expected future cash flows, generally over a term of 10 years including a terminal value based on the application of a capitalization rate to estimated year 11 cash flows; or ii) undertaking a direct capitalization approach whereby a capitalization rate is applied to estimated current year cash flows. Where there has been a recent market transaction for a specific property, such as an acquisition or sale of a partial interest, the partnership values the property on that basis. In determining the appropriateness of the methodology applied, the partnership considers the relative uncertainty of the timing and amount of expected cash flows and the impact such uncertainty would have in arriving at a reliable estimate of fair value. The partnership prepares these valuations considering asset and market specific factors, as well as observable transactions for similar assets. The determination of fair value requires the use of estimates, which are internally determined and compared with market data, third-party reports and research as well as observable conditions. Except for the impacts of interest rates and inflation, there are currently no known trends, events or uncertainties that the partnership reasonably believes could have a sufficiently pervasive impact across the partnership’s businesses to materially affect the methodologies or assumptions utilized to determine the estimated fair values reflected in these financial statements. Discount rates and capitalization rates are inherently uncertain and may be impacted by, among other things, movements in interest rates in the geographies and markets in which the assets are located. Changes in estimates of discount and capitalization rates across different geographies and markets are often independent of each other and not necessarily in the same direction or of the same magnitude. Further, impacts to the partnership’s fair values of commercial properties from changes in discount or capitalization rates and cash flows are usually inversely correlated. Decreases (increases) in the discount rate or capitalization rate result in increases (decreases) of fair value. Such decreases (increases) may be mitigated by decreases (increases) in cash flows included in the valuation analysis, as circumstances that typically give rise to increased interest rates (e.g., strong economic growth, inflation) usually give rise to increased cash flows at the asset level. Refer to the table below for further information on valuation methods used by the partnership for its asset classes. Commercial developments are also measured using a discounted cash flow model, net of costs to complete, as of the balance sheet date. Development sites in the planning phases are measured using comparable market values for similar assets. In accordance with its policy, the partnership generally measures and records its commercial properties and developments using valuations prepared by management. However, for certain subsidiaries, the partnership relies on quarterly valuations prepared by external valuation professionals to support its internal valuations. Management compares the external valuations to the partnership’s internal valuations to review the work performed by the external valuation professionals. Additionally, a number of properties are externally appraised each year and the results of those appraisals are compared to the partnership’s internally prepared values. In 2021, the COVID-19 pandemic caused disruption to business activities and supply chains as well as disrupted travel and adversely impacted market economic conditions. As a result, future revenues and cash flows produced by these investment properties and our equity accounted investment properties, as discussed on Note 6, Equity Accounted Investments , was more uncertain than normal. The subsequent economic recovery resulted in a significant increase in inflation rates in most jurisdictions that the partnership operates in during 2022, rising above target inflation rates set by governing central banks. As a result, most central banks raised their benchmark interest rates in an attempt to counter the economic effects leading to inflation. The impact continues to be more uncertainty than normal of future revenues and cash flows, as well as the cost of capital and appropriate capital spreads, which the partnership has reflected in adjusted cash flow assumptions and changes to discount and terminal capitalization rates. The key valuation metrics for the partnership’s consolidated commercial properties are set forth in the following tables below on a weighted-average basis: Dec. 31, 2022 Dec. 31, 2021 Consolidated properties Primary valuation Discount Terminal Investment Discount Terminal Investment Core Office Discounted cash flow 6.8 % 5.4 % 11 6.5 % 5.3 % 11 Core Retail Discounted cash flow 7.2 % 5.3 % 10 7.0 % 5.3 % 10 LP Investment (1) Discounted cash flow 9.1 % 6.3 % 8 9.4 % 7.0 % 8 (1) The valuation method used to value multifamily and manufactured housing properties is the direct capitalization method. At December 31, 2022, the overall implied capitalization rate used for properties using the direct capitalization method was 4.3% (December 31, 2021 - 4.3% ). Operating investment properties with a fair value of approximately $15.3 billion (December 31, 2021 - $11.3 billion) are situated on land held under leases or other agreements largely expiring after the year 2065. Investment properties do not include any buildings held under operating leases. The following table presents the partnership’s investment properties measured at fair value in the consolidated financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above in Note 2(i), Summary of Significant Accounting Policies, Fair value measurement. Dec. 31, 2022 Dec. 31, 2021 Level 3 Level 3 (US$ Millions) Level 1 Level 2 Commercial properties Commercial developments Level 1 Level 2 Commercial properties Commercial developments Core Office $ — $ — $ 22,129 $ 1,355 $ — $ — $ 24,644 $ 1,023 Core Retail — — 19,438 106 — — 18,991 — LP Investments — — 24,500 1,057 — — 18,678 1,277 Total $ — $ — $ 66,067 $ 2,518 $ — $ — $ 62,313 $ 2,300 (1) Represents excess land held for capital appreciation rather than an operating hotel asset. There were no transfers between levels within the fair value hierarchy related to investment properties during the years ended December 31, 2022 and 2021. Investment properties with a fair value of $63.9 billion (December 31, 2021 - $61.9 billion) are pledged as security for property debt. Fair value sensitivity The following table presents a sensitivity analysis to the impact of a 25 basis point (“bps”) increase of the discount rate and terminal capitalization or overall implied capitalization rate (“ICR”) on fair values of the partnership’s commercial properties for the year ended December 31, 2022, for properties valued using the discounted cash flow or direct capitalization method, respectively: Dec. 31, 2022 (US$ Millions) Impact of +25bps DR Impact of +25bps TCR Impact of +25bps DR and +25bps TCR or +25bps ICR Core Office $ 487 $ 732 $ 1,199 Core Retail 384 643 1,012 LP Investments (1) 757 605 1,357 Total $ 1,628 $ 1,980 $ 3,568 (1) The valuation method used to value multifamily, student housing, and manufactured housing properties is the direct capitalization method. The impact of the sensitivity analysis on the discount rate includes properties valued using the DCF method as well as properties valued using an overall implied capitalization rate under the direct capitalization method. During the year ended December 31, 2022, the partnership capitalized a total of $428 million (December 31, 2021 - $758 million) of costs related to development properties. Included in this amount is $405 million (December 31, 2021 - $730 million) of construction and related costs and $23 million (December 31, 2021 - $28 million) of borrowing costs capitalized. The weighted average interest rate used for the capitalization of borrowing costs to development properties for the year ended December 31, 2022 is 1.6% (December 31, 2021 - 1.2%). |
INVESTMENTS IN SUBSIDIARIES
INVESTMENTS IN SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
INVESTMENTS IN SUBSIDIARIES | INVESTMENTS IN SUBSIDIARIES The partnership considers all relevant facts and circumstances in determining that its decision making rights over the entities listed below are sufficient to give it power over these subsidiaries. In addition, the partnership has exposure and rights to substantial variable returns from its economic interests in these subsidiaries, even after consideration of material non-controlling interests in certain subsidiaries. The partnership is able to use its power to affect the amount of its returns and consolidates these subsidiaries. The following table presents the partnership’s material subsidiaries as of December 31, 2022 and 2021: Jurisdiction of formation Economic interest Voting interest Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Subsidiary of the partnership (1) Bermuda 36 % 36 % 100 % 100 % Holding entities of the Operating Partnership Various 100 % 100 % 100 % 100 % Real estate subsidiaries of the holding entities BPO Canada 100 % 100 % 100 % 100 % Australia Office (2) Canada 100 % 100 % 100 % 100 % U.S. Retail (3) United States 100 % 100 % 100 % 100 % U.K. Short Stay (4) United Kingdom 27 % 27 % — % — % Korea Mixed-use (4) South Korea 22 % 22 % — % — % U.K. Student Housing (4) Bermuda 25 % 25 % — % — % U.S. Hospitality United States 23 % — % — % — % U.S. Manufactured Housing (4) United States 24 % 26 % — % — % (1) BPY holds all managing general partner units of the Operating Partnership and therefore has the power to direct the relevant activities and affairs of the Operating Partnership. The managing general partner units represent 36% and 36% of the total number of the Operating Partnership’s units at December 31, 2022 and 2021, respectively. (2) This entity holds certain Australian properties not held through BPO. (3) The partnership controls BPYU as it held 100% of the voting stock of BPYU through its 100% ownership of the BPYU Class B and Class C shares. (4) The partnership holds its economic interest in these assets primarily through limited partnership interests in Brookfield-sponsored real estate funds. By their nature, limited partnership interests do not have any voting rights. The partnership has entered into voting agreements to provide the partnership with the ability to contractually direct the relevant activities of the investees. The table below shows details of non-wholly owned subsidiaries of the partnership that have material non-controlling interests: Jurisdiction of formation Proportion of economic Non-controlling interests: Interests of others in operating subsidiaries and properties (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Corporate Holding Entities (2) Bermuda/Canada — % — % $ 5,033 $ 3,871 BPO (1) Canada — % — % 2,835 5,020 U.K Student Housing (4) Bermuda 75 % 75 % 1,594 1,190 U.S. Retail (3) United States — % — % 1,280 1,274 U.S. Manufactured Housing (4) United States 76 % 74 % 1,191 932 Korea Mixed-use (4) South Korea 78 % 78 % 936 936 U.K. Short Stay (4) United Kingdom 73 % 73 % 756 799 U.S. Hospitality (4)(5) United States 77 % — % 724 — Other LP Investments Various 33% - 99% 33% -82% 3,735 5,684 Total $ 18,084 $ 19,706 (1) Includes non-controlling interests in BPO subsidiaries which vary from 1% - 100%. (2) Includes non-controlling interests in various corporate entities of the partnership (3) Includes non-controlling interests in BPYU subsidiaries. (4) Includes non-controlling interests representing interests held by other investors in Brookfield-sponsored real estate funds and holding entities through which the partnership participates in such funds. Also includes non-controlling interests in underlying operating entities owned by these funds. (5) Includes non-controlling interests acquired as part of the Manager Arrangement during the fourth quarter of 2022. Summarized financial information in respect of each of the partnership’s subsidiaries that have material non-controlling interests is set out below. The summarized financial information below represents amounts before intercompany eliminations. Dec. 31, 2022 Equity attributable to (US$ Millions) Current Non-current Current Non-current Non- Owners of the Corporate Holding Entities $ 6,385 $ 579 $ 6,087 $ 7,877 $ 5,457 $ (12,457) BPO 4,304 33,911 10,656 14,390 3,129 10,040 U.K. Student Housing 2,255 — 114 — 1,594 547 U.S. Retail 561 29,681 2,293 11,559 1,280 15,110 U.S. Manufactured Housing 61 4,279 2,593 178 1,191 378 Korea Mixed-use 167 3,745 64 2,642 936 270 U.K. Short Stay 197 4,419 485 3,068 756 307 U.S. Hospitality 159 3,530 373 2,378 724 214 Total $ 14,089 $ 80,144 $ 22,665 $ 42,092 $ 15,067 $ 14,409 Dec. 31, 2021 Equity attributable to (US$ Millions) Current Non-current Current Non-current Non- Owners of the Corporate Holding Entities $ 3,991 $ 3,120 $ 6,242 $ 13,647 $ 4,249 $ (17,027) BPO 7,168 40,341 9,664 16,648 5,232 15,965 U.K. Student Housing 62 3,562 1,378 651 1,190 405 U.S. Retail 1,051 29,534 3,023 11,333 1,274 14,955 U.S. Manufactured Housing 86 3,843 11 2,688 932 298 Korea Mixed-use 3,972 — 83 2,683 936 270 U.K. Short Stay 338 4,701 350 3,586 799 304 Total $ 16,668 $ 85,101 $ 20,751 $ 51,236 $ 14,612 $ 15,170 Year ended Dec. 31, 2022 Attributable to non-controlling interests Attributable to owners of the partnership (US$ Millions) Revenue Net Total Distributions Net Total Corporate Holding Entities $ 406 $ 36 $ 59 $ 113 $ (20) $ 156 BPO 2,105 124 106 24 (759) (802) U.K. Student Housing 191 492 482 65 148 134 U.S. Retail 1,557 (2) 2 4 165 203 U.S. Manufactured Housing 287 254 254 13 81 81 Korea Mixed-use 228 28 — — 8 (28) U.K. Short Stay 794 44 114 151 16 114 Total $ 5,568 $ 976 $ 1,017 $ 370 $ (361) $ (142) Year ended Dec. 31, 2021 Attributable to non-controlling interests Attributable to owners of the partnership (US$ Millions) Revenue Net Total Distributions Net Total Corporate Holding Entities $ 444 $ (7) $ (11) $ 389 $ (122) $ (48) BPO 2,151 264 257 79 494 482 U.K. Student Housing 160 204 191 — 69 51 U.S. Retail 1,511 (22) (22) 10 (126) (101) U.S. Manufactured Housing 266 572 572 675 183 183 Korea Mixed-use 211 364 304 — 105 28 U.K. Short Stay 546 (52) 26 — (20) 108 Total $ 5,289 $ 1,323 $ 1,317 $ 1,153 $ 583 $ 703 Year ended Dec. 31, 2020 Attributable to non-controlling interests Attributable to owners of the partnership (US$ Millions) Revenue Net Total Distributions Net Total Corporate Holding Entities $ 455 $ 1 $ 1 $ — $ (50) $ 385 BPO 2,079 142 152 69 (37) 7 U.K. Student Housing 129 63 99 8 21 33 U.S. Retail 1,612 (211) (214) 16 (1,974) (1,999) U.S. Manufactured Housing 252 281 281 11 90 90 Korea Mixed-use 268 (187) (187) — (177) (177) U.K. Short Stay 189 128 174 5 37 50 Total $ 4,984 $ 217 $ 306 $ 109 $ (2,090) $ (1,611) Certain of the partnership’s subsidiaries are subject to restrictions over the extent to which they can remit funds to the partnership in the form of cash dividends, or repayment of loans and advances as a result of borrowing arrangements, regulatory restrictions and other contractual requirements. |
EQUITY ACCOUNTED INVESTMENTS
EQUITY ACCOUNTED INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
EQUITY ACCOUNTED INVESTMENTS | EQUITY ACCOUNTED INVESTMENTS The partnership has investments in joint arrangements that are joint ventures, and also has investments in associates. Joint ventures hold individual commercial properties and portfolios of commercial properties and developments that the partnership owns together with co-owners where decisions relating to the relevant activities of the joint venture require the unanimous consent of the co-owners. Details of the partnership’s investments in joint ventures and associates, which have been accounted for in accordance with the equity method of accounting, are as follows: Proportion of ownership Carrying value (US$ Millions) Principal activity Principal place Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Joint ventures London Mixed-use District Property holding company United Kingdom 50 % 50 % $ 3,192 $ 3,529 Midtown New York Mixed-use Complex Property holding company United States 56 % 56 % 2,518 2,396 U.S. Retail JV Pool A Property holding company United States 50 % 50 % 1,848 1,810 Honolulu Shopping Center Property holding company United States 50 % 50 % 1,507 1,939 U.S. Retail JV Pool B Property holding company United States 51 % 51 % 1,132 1,140 U.S. Retail JV Pool C Property holding company United States 50 % 50 % 737 679 Bryant Park Office Tower Property holding company United States 50 % 50 % 719 702 Las Vegas Mall A Property holding company United States 50 % 50 % 702 856 U.S. Retail JV Pool D Property holding company United States 48 % 48 % 646 612 Las Vegas Mall B Property holding company United States 50 % 50 % 625 455 Other (1) Various Various 15% - 68% 15% - 68% 5,778 6,361 19,404 20,479 Associates Other Various Various 16% - 50% 13% - 50% 539 328 539 328 Total $ 19,943 $ 20,807 (1) Other joint ventures consists of approximately 50 joint ventures, each of which has a carrying value below $500 million. The following table presents the change in the balance of the partnership’s equity accounted investments as of December 31, 2022 and 2021: (US$ Millions) Years ended Dec. 31, 2022 2021 Equity accounted investments, beginning of year $ 20,807 $ 19,719 Additions 100 698 Disposals and return of capital distributions (967) (459) Share of net (losses) earnings from equity accounted investments 826 1,020 Distributions received (263) (172) Foreign currency translation (578) (145) Reclassification from (to) assets held for sale (276) (210) Impact of change in accounting basis (1) (706) — Manager Reorganization (2) 1,061 — Other comprehensive income and other (61) 356 Equity accounted investments, end of year $ 19,943 $ 20,807 (1) The current year includes the impact of change in accounting basis of assets that were accounted for under the equity method which are now accounted for as financial assets. (2) See Note 32, Related Parties for further information on the Manager Reorganization. The key valuation metrics for the partnership’s commercial properties held within the partnership’s equity accounted investments are set forth in the table below on a weighted-average basis: Dec. 31, 2022 Dec. 31, 2021 Equity accounted Primary valuation Discount Terminal Investment Discount Terminal Investment Core Office Discounted cash flow 6.4 % 4.9 % 11 6.0 % 4.7 % 11 Core Retail Discounted cash flow 6.6 % 4.9 % 10 6.3 % 4.9 % 10 LP Investments (1) Discounted cash flow 7.8 % 5.5 % 10 6.9 % 5.6 % 10 (1) The valuation method used to value multifamily investments is the direct capitalization method. The rates presented as the discount rate relate to the overall implied capitalization rate. The terminal capitalization rate and investment horizon are not applicable. The following tables present the gross assets and liabilities of the partnership’s equity accounted investments as of December 31, 2022 and 2021: Dec. 31, 2022 (US$ Millions) Current Non-current Current Non-current Net Joint ventures London Mixed-use District $ 879 $ 11,709 $ 972 $ 5,232 $ 6,384 Midtown New York Mixed-use Complex 198 8,132 276 3,558 4,496 U.S. Retail JV Pool A 158 5,777 253 1,985 3,697 Honolulu Shopping Center 100 5,352 40 2,397 3,015 U.S. Retail JV Pool B 210 5,587 1,348 2,230 2,219 U.S. Retail JV Pool C 43 2,219 45 663 1,554 Bryant Park Office Tower 67 2,636 23 1,240 1,440 Las Vegas Mall A 22 2,231 16 833 1,404 U.S. Retail JV Pool D 28 1,833 508 — 1,353 Las Vegas Mall B 22 2,220 15 979 1,248 Other 1,912 25,951 3,283 10,603 13,977 3,639 73,647 6,779 29,720 40,787 Associates Other 183 2,705 109 1,057 1,722 183 2,705 109 1,057 1,722 Total $ 3,822 $ 76,352 $ 6,888 $ 30,777 $ 42,509 Dec. 31, 2021 (US$ Millions) Current Non-current Current Non-current Net Joint ventures London Mixed-use District $ 1,276 $ 13,213 $ 1,242 $ 6,187 $ 7,060 Midtown New York Mixed-use Complex 229 8,434 153 4,231 4,279 U.S. Retail JV Pool A 249 5,763 122 2,269 3,621 Honolulu Shopping Center 131 5,695 52 1,895 3,879 U.S. Retail JV Pool B 353 5,508 231 3,396 2,234 U.S. Retail JV Pool C 52 2,100 44 669 1,439 Bryant Park Office Tower 73 2,593 20 1,238 1,408 Las Vegas Mall A 23 2,538 19 829 1,713 U.S. Retail JV Pool D 40 1,763 49 471 1,283 Las Vegas Mall B 56 1,867 40 974 909 Other 1,827 27,422 1,861 11,866 15,522 4,309 76,896 3,833 34,025 43,347 Associates Other 180 1,253 81 796 556 180 1,253 81 796 556 Total $ 4,489 $ 78,149 $ 3,914 $ 34,821 $ 43,903 Summarized financial information in respect of the partnership’s equity accounted investments for the years ended December 31, 2022, 2021 and 2020 is set out below: Year ended December 31, 2022 (US$ Millions) Revenue Expenses Fair value Income from EAI (1) Net Other Partnership’s Distributions Joint ventures London Mixed-use District $ 582 $ 477 $ (61) $ 89 $ 133 $ 23 $ 66 $ — Midtown New York Mixed-use Complex 282 227 515 91 661 120 370 34 U.S. Retail JV Pool A 343 107 (96) — 140 1 70 — Honolulu Shopping Center 261 195 (405) — (339) 30 (170) — U.S. Retail JV Pool B 467 348 (148) 5 (24) 6 (12) — U.S. Retail JV Pool C 152 81 77 — 148 — 74 11 Bryant Park Office Tower 157 88 9 — 78 — 39 20 Las Vegas Mall A 106 56 (321) — (271) — (135) 8 U.S. Retail JV Pool D 88 46 47 — 89 — 43 4 Las Vegas Mall B 108 69 344 — 383 — 192 1 Other 2,138 1,683 120 42 618 289 285 185 4,684 3,377 81 227 1,616 469 822 263 Associates Other 230 244 8 — (6) 69 4 — 230 244 8 — (6) 69 4 — Total $ 4,914 $ 3,621 $ 89 $ 227 $ 1,610 $ 538 $ 826 $ 263 (1) Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates. Year ended December 31, 2021 (US$ Millions) Revenue Expenses Fair value Income from EAI (1) Net Other Partnership’s Distributions Joint ventures London Mixed-use District $ 607 $ 453 $ 60 $ 42 $ 256 $ 2 $ 128 $ 2 Midtown New York Mixed-use Complex 350 225 101 — 226 72 127 48 U.S. Retail JV Pool A 329 220 92 — 201 — 100 — Honolulu Shopping Center 241 154 121 — 208 — 104 3 U.S. Retail JV Pool B 458 347 (46) 4 69 — 35 — U.S. Retail JV Pool C 138 88 (13) — 37 — 19 2 Bryant Park Office Tower 151 86 47 — 112 — 56 27 Las Vegas Mall A 98 54 63 — 107 — 53 8 U.S. Retail JV Pool D 80 37 121 — 164 — 78 1 Las Vegas Mall B 93 75 61 — 79 — 40 — Other 1,825 1,576 424 89 762 301 330 81 4,370 3,315 1,031 135 2,221 375 1,070 172 Associates Other 103 174 (8) 7 (72) 949 (50) — 103 174 (8) 7 (72) 949 (50) — Total $ 4,473 $ 3,489 $ 1,023 $ 142 $ 2,149 $ 1,324 $ 1,020 $ 172 (1) Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates. Year ended December 31, 2020 (US$ Millions) Revenue Expenses Fair value Income from EAI (1) Net Other Partnership’s Distributions Joint ventures London Mixed-use District $ 619 $ 377 $ (713) $ 19 $ (452) $ (4) $ (226) $ 4 Honolulu Shopping Center 269 158 (279) — (168) — (84) 9 Midtown New York Mixed-use Complex 259 179 379 — 459 (75) 257 221 U.S. Retail JV Pool A 353 230 (543) — (420) — (210) — U.S. Retail JV Pool B 483 356 (601) 4 (470) — (240) — Las Vegas Mall A 103 56 (46) — 1 — — 8 U.S. Retail JV Pool C 145 80 (222) — (157) — (78) 6 Bryant Park Office Tower 108 95 121 — 134 — 67 123 U.S. Retail JV Pool D 71 36 (203) 17 (151) — (72) 3 Las Vegas Mall B 92 84 (18) — (10) — (5) — Other 1,766 1,299 (480) 44 31 (28) (68) 244 4,268 2,950 (2,605) 84 (1,203) (107) (659) 618 Associates Other 92 186 (39) (2) (135) (939) (90) — 92 186 (39) (2) (135) (939) (90) — Total $ 4,360 $ 3,136 $ (2,644) $ 82 $ (1,338) $ (1,046) $ (749) $ 618 (1) Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates. Certain of the partnership’s investment in joint ventures and associates are subject to restrictions over the extent to which they can remit funds to the partnership in the form of the cash dividends or repayments of loans and advances as a result of borrowing arrangements, regulatory restrictions and other contractual requirements. |
INVESTMENTS IN JOINT OPERATIONS
INVESTMENTS IN JOINT OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
INVESTMENTS IN JOINT OPERATIONS | INVESTMENTS IN JOINT OPERATIONS The partnership’s interests in the following properties are subject to joint control and, accordingly, the partnership has recorded its share of the assets, liabilities, revenues, and expenses of the properties in these consolidated financial statements: Place of incorporation and Ownership (1) Name of property Principal activity Dec. 31, 2022 Dec. 31, 2021 Brookfield Place - Retail & Parking Property Toronto 56 % 56 % Brookfield Place III Development property Toronto 54 % 54 % Exchange Tower Property Toronto 50 % 50 % First Canadian Place (1) Property Toronto 25 % 25 % 2 Queen Street East Property Toronto 25 % 25 % Bankers Hall Property Calgary 50 % 50 % Bankers Court Property Calgary 50 % 50 % Bankers West Parkade Development property Calgary 50 % 50 % Suncor Energy Centre Property Calgary 50 % 50 % Fifth Avenue Place Property Calgary 50 % 50 % 52 Goulburn Street (2) Property Sydney — % 24 % 235 St Georges Terrace (2) Property Perth — % 24 % 108 St Georges Terrace (3) Property Perth — % 50 % Southern Cross West Property Melbourne 50 % 50 % Shopping Patio Higienópolis Property São Paulo 25 % 25 % Shopping Patio Higienópolis - Expansion Property São Paulo 32 % 32 % Shopping Patio Higienópolis - Co-Invest Property São Paulo 5 % 5 % Shopping Patio Higienópolis Expansion - Co-Invest Property São Paulo 6 % 6 % G2-Infospace Gurgaon Property NCR-Delhi Region 72 % 72 % (1) First Canadian Place in Toronto is subject to a ground lease with respect to 50% of the land on which the property is situated. At the expiry of the ground lease, the other land owner will have the option to acquire, for a nominal amount, an undivided 50% beneficial interest in the property. (2) The partnership deconsolidated its investment as a result of the dilution of its interest. Prior to the transaction, the partnership's interest was consolidated and is now reflected as a financial asset. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant, and equipment primarily consists of hospitality assets such as Center Parcs UK and a portfolio of select-service hotels in the U.S. The following table presents the useful lives of each hospitality asset by class: Hospitality assets by class Useful life Building and building improvements 2 to 50 + Land improvements 15 Furniture, fixtures and equipment 1 to 20 Hospitality properties are accounted for under the revaluation model with revaluation to fair value performed annually at December 31. Significant unobservable inputs (Level 3) in estimating hospitality property values under the revaluation method include estimates of replacement cost and estimates of remaining economic life. Hospitality properties with a fair value of approximately $5.7 billion (December 31, 2021 - $2.5 billion) are situated on land held under leases or other agreements largely expiring after the year 2065. On June 30, 2021, the partnership obtained control over a portfolio of select-service hotels (“Hospitality Investors Trust”) after converting its preferred equity interest and becoming the 100% common equity holder. The partnership’s investment in the subsidiary was accounted for as a financial asset prior to this date. This transaction was accounted for as a business combination. The following table summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed, in addition to the consideration paid in connection with this business combination: (US$ Millions) Hospitality Investors Trust Cash and cash equivalents $ 50 Accounts receivable and other 74 Equity accounted investments 7 Property, plant and equipment 1,727 Total assets 1,858 Less: Debt obligations (1,319) Accounts payable and other (75) Net assets acquired $ 464 Consideration (1) $ 464 (1) Consideration includes $8 million of contingent consideration, with the balance related to the fair value of the partnership’s forfeited preferred equity interest. There were no impairment indicators for the years ended December 31, 2022 and 2021. The following table presents the change to the components of the partnership’s hospitality assets from the beginning of the year: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Cost: Balance, beginning of year $ 5,723 $ 5,575 Additions 203 1,885 Disposals (47) (323) Foreign currency translation (363) (83) Manager Reorganization (1) 3,298 — Impact of deconsolidation due to loss of control and other (2) 236 (1,331) 9,050 5,723 Accumulated fair value changes: Balance, beginning of year 763 488 Revaluation gains (losses) gains, net 727 930 Impact of deconsolidation due to loss of control and other (2) 29 (593) Disposals (1) (65) Provision for impairment (93) 7 Foreign currency translation (49) (4) 1,376 763 Accumulated depreciation: Balance, beginning of year (863) (828) Depreciation (279) (294) Disposals 44 84 Foreign currency translation 76 13 Impact of deconsolidation due to loss of control and other (2) (3) 162 (1,025) (863) Total property, plant and equipment (2) $ 9,401 $ 5,623 (1) See Note 32, Related Parties for further information on the Manager Reorganization. (2) The current year reflects the reclassification of a mixed-use asset out of assets held for sale, and the reclassification of a student housing asset to held for sale. The prior year includes the reclassification of a hospitality portfolio to held for sale.. (3) Includes right-of-use assets of $393 million (December 31, 2021 - $204 million). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill [abstract] | |
GOODWILL | GOODWILL Goodwill of $946 million at December 31, 2022 (December 31, 2021 - $832 million) was primarily attributable to short-break destinations across the United Kingdom and Ireland owned by Center Parcs UK of $728 million (December 31, 2021 - $815 million) and IFC Seoul of $207 million (December 31, 2021 - nil ). The partnership performs a goodwill impairment test annually by assessing if the carrying value of the cash-generating unit, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs to sell or the value in use. The partnership tested the goodwill and trademark assets recorded as an intangible asset (Refer to Note 10, Intangible Assets ), attributed to Center Parcs UK for impairment as of December 31, 2022. The current year analysis uses a 10-year cash flow projection with a 3% long-term growth rate used to extrapolate cash flows after the third year, a discount rate derived from a market-based-weighted-average cost of capital, and a terminal capitalization rate derived from a market-based EBITDA multiple. Based on the impairment test, no impairment was recorded as the recoverable amount of the cash-generating unit of $4,980 million (2021 - $5,623 million) exceeded the carrying value of the cash-generating unit of $4,124 million (2021 - $4,391 million). The recoverable amount was determined based on a value-in-use approach based on a terminal capitalization rate of 6.2% (2021 - 6.6%) and a discount rate of 10.3% (2021 - 9.3%). A discount rate of 11.0% (2021 - 12.7%), a long-term growth rate of (2.0)% (2021 - (2.7)%), or a terminal capitalization rate of 8.0% (2021 - 9.4%) used in the impairment analysis would eliminate the headroom between the recoverable amount and carrying value of the cash-generating unit. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The partnership’s intangible assets are presented on a cost basis, net of accumulated amortization and accumulated impairment losses in the consolidated balance sheets. These intangible assets primarily represent the trademark assets related to Center Parcs UK. The trademark assets of Center Parcs UK had a carrying amount of $859 million as of December 31, 2022 (December 31, 2021 - $964 million). They have been determined to have an indefinite useful life as the partnership has the legal right to operate these trademarks exclusively in certain territories and in perpetuity. The business model of Center Parcs UK is not subject to technological obsolescence or commercial innovations in any material way. Refer to Note 9, Goodwill for detail on the Center Parcs impairment analysis. Intangible assets by class Useful life (in years) Trademarks Indefinite Other 4 to 88 Intangible assets with indefinite useful lives and intangible assets not yet available for use, are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. Intangible assets with finite useful lives are amortized over their respective useful lives as listed above. Amortization is recorded as part of depreciation and amortization included in Direct Hospitality Expense. Refer to Note 25, Direct Hospitality Expense . The following table presents the components of the partnership’s intangible assets as of December 31, 2022 and December 31, 2021: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Cost $ 1,017 $ 1,012 Accumulated amortization (51) (48) Balance, end of year $ 966 $ 964 The following table presents a roll forward of the partnership’s intangible assets December 31, 2022 and December 31, 2021: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Balance, beginning of year $ 964 $ 982 Acquisitions 5 6 Amortization (8) (14) Manager Reorganization (1) 108 — Foreign currency translation (103) (10) Balance, end of year $ 966 $ 964 (1) See Note 32, Related Parties for further information on the Manager Reorganization. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS The components of other non-current assets are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Securities - FVTPL $ 2,523 $ 2,200 Derivative assets 170 111 Securities - FVTOCI 69 108 Restricted cash 584 356 Inventory 1,267 652 Accounts receivable 464 2 Other 140 149 Total other non-current assets $ 5,217 $ 3,578 Securities - FVTPL Securities - FVTPL primarily consists of the partnership’s investment in the Brookfield Strategic Real Estate Partners III (“BSREP III”) fund, with a carrying value of the financial asset at December 31, 2022 of $1,183 million (December 31, 2021 - $1,154 million). |
ACCOUNTS RECEIVABLE AND OTHER
ACCOUNTS RECEIVABLE AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS RECEIVABLE AND OTHER | ACCOUNTS RECEIVABLE AND OTHER The components of accounts receivable and other are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Derivative assets $ 124 $ 33 Accounts receivable - net of expected credit loss of $63 million (December 31, 2021 - $112 million) 787 852 Restricted cash and deposits 342 331 Prepaid expenses 405 367 Inventory 176 574 Other current assets 342 119 Total accounts receivable and other $ 2,176 $ 2,276 |
HELD FOR SALE
HELD FOR SALE | 12 Months Ended |
Dec. 31, 2022 | |
Non-current Assets Held For Sale And Discontinued Operations [Abstract] | |
HELD FOR SALE | HELD FOR SALE Non-current assets and groups of assets and liabilities which comprise disposal groups are presented as assets held for sale where the asset or disposal group is available for immediate sale in its present condition, and the sale is highly probable. The following is a summary of the assets and liabilities that were classified as held for sale as of December 31, 2022 and December 31, 2021: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Investment properties $ 300 $ 8,037 Property, plant and equipment — 1,749 Equity accounted investments 276 — Accounts receivables and other assets — 724 Assets held for sale 576 10,510 Debt obligations — 3,006 Accounts payable and other liabilities — 76 Liabilities associated with assets held for sale $ — $ 3,082 The following table presents the change to the components of the assets held for sale from the beginning of the year: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Balance, beginning of year $ 10,510 $ 588 Reclassification to/(from) assets held for sale, net 1,208 12,561 Disposals (11,110) (2,610) Fair value adjustments 261 — Foreign currency translation (290) (57) Other (3) 28 Assets held for sale $ 576 $ 10,510 At December 31, 2021, assets held for sale included a triple net lease portfolio in the U.S, a hospitality portfolio in the U.S., a mixed-use asset in South Korea, ten malls in the U.S., an office asset in the U.S., an office asset in Brazil, a multifamily asset in the U.S. and a hotel in the U.S. In the first quarter of 2022, the partnership sold three malls in the U.S, a triple-net lease portfolio in the U.S., a multifamily asset in the U.S, a hospitality asset in the U.S. and a hospitality portfolio in the U.S. for net proceeds of approximately $1,481 million. In the second quarter of 2022, the partnership sold eleven multifamily assets in the U.S., an office asset in the U.K., and one mall in the U.S. for net proceeds of approximately $365 million. In the third quarter of 2022, the partnership sold five hospitality assets in the U.S., two office assets in the U.S., two malls in the U.S., and a multifamily asset in the U.S. for net proceeds of approximately $161 million and reclassified a mixed-use asset in Seoul out of assets held for sale and into commercial properties. In the fourth quarter of 2022, the partnership sold five malls in the U.S., one student housing portfolio in the U.K., one office asset in the U.S., and one multifamily asset in the U.S. for net proceeds of approximately $2,229 million. At December 31, 2022, assets held for sale included three malls in the U.S., two hospitality assets in the U.S., and one office asset in the U.S. as the partnership intends to sell controlling interests in these assets to third parties in the next 12 months. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The partnership’s debt obligations include the following: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Weighted- Debt balance Weighted- Debt balance Unsecured facilities: Brookfield Property Partners’ credit facilities 6.19 % $ 3,090 2.00 % $ 2,257 Brookfield Property Partners’ corporate bonds 4.12 % 1,847 4.11 % 1,982 Brookfield Properties Retail Holding LLC term debt 6.90 % 1,514 2.61 % 1,869 Brookfield Properties Retail Holding LLC senior secured notes 5.20 % 1,695 5.20 % 1,695 Brookfield Properties Retail Holding LLC corporate facility 7.17 % 320 3.10 % 70 Brookfield Properties Retail Holding LLC junior subordinated notes 5.86 % 192 1.58 % 206 Subsidiary borrowings 7.10 % 458 3.29 % 537 Secured debt obligations: Funds subscription credit facilities (1) 6.19 % 4,177 2.44 % 371 Fixed rate 4.47 % 16,155 4.31 % 26,248 Variable rate 6.99 % 29,416 3.29 % 20,341 Deferred financing costs (302) (249) Total debt obligations $ 58,562 $ 55,327 Current $ 19,704 $ 13,742 Non-current 38,858 38,579 Debt associated with assets held for sale — 3,006 Total debt obligations $ 58,562 $ 55,327 (1) Funds subscription credit facilities are secured by co-investors’ capital commitments. The partnership generally believes that it will be able to either extend the maturity date, repay, or refinance the debt that is scheduled to mature in 2023 to 2024, however, approximately 2% of its debt obligations represent non-recourse mortgages where the partnership has suspended contractual payment. The partnership is currently engaging in modification or restructuring discussions with the respective creditors. These negotiations may, under certain circumstances, result in certain properties securing these loans being transferred to the lender. Debt obligations include foreign currency denominated debt in the functional currencies of the borrowing subsidiaries. Debt obligations by local currency are as follows: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) U.S. Local U.S. Local U.S. dollars $ 44,049 $ 44,049 $ 37,559 $ 37,559 British pounds 5,079 £ 4,203 7,030 £ 5,196 Canadian dollars 4,027 C$ 5,455 4,419 C$ 5,585 South Korean Won 1,808 ₩ 2,280,000 1,918 ₩ 2,280,000 Australian dollars 1,300 A$ 1,908 2,014 A$ 2,773 Indian Rupee 1,777 Rs 146,860 1,801 Rs 134,378 Brazilian reais 554 R$ 2,888 476 R$ 2,655 Chinese Yuan 174 C¥ 1,204 69 C¥ 437 Euros 96 € 90 290 € 255 Deferred financing costs (302) (249) Total debt obligations $ 58,562 $ 55,327 The components of changes in debt obligations, including changes related to cash flows from financing activities, are summarized in the table below: Non-cash changes in debt obligations (US$ Millions) Dec. 31, 2021 Debt obligation issuance, net of repayments Debt from asset acquisitions Assumed by purchaser Amortization of deferred financing costs and (premium) discount Foreign currency translation Manager Reorganization (1) Impact of deconsolidation due to loss of control Dec. 31, 2022 Debt obligations $ 55,327 (1,656) 350 (3,836) 94 (1,489) 10,274 (502) $ 58,562 (1) See Note 32, Related Parties for further information on the Manager Reorganization. |
CAPITAL SECURITIES
CAPITAL SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
CAPITAL SECURITIES | CAPITAL SECURITIES The partnership had the following capital securities outstanding as of December 31, 2022 and 2021: (US$ Millions, except where noted) Shares Cumulative Dec. 31, 2022 Dec. 31, 2021 Operating Partnership Class A Preferred Equity Units: Series 2 24,000,000 6.50 % $ 575 $ 565 Series 3 24,000,000 6.75 % 556 546 New LP Preferred Units (1) 19,273,654 6.25 % 474 474 BPO Class B Preferred Shares: Series 1 (2) 3,600,000 70% of bank prime — — Series 2 (2) 3,000,000 70% of bank prime — — Brookfield Property Split Corp. (“BOP Split”) Senior Preferred Shares: Series 1 829,334 5.25 % 21 21 Series 2 555,146 5.75 % 10 11 Series 3 668,228 5.00 % 12 15 Series 4 541,892 5.20 % 10 12 Rouse Series A Preferred Shares 5,600,000 5.00 % 142 142 Brookfield India Real Estate Trust 155,003,656 See footnote (3) 456 440 Capital Securities – Fund Subsidiaries 577 859 Total capital securities $ 2,833 $ 3,085 Current $ 600 $ 61 Non-current 2,233 3,024 Total capital securities $ 2,833 $ 3,085 (1) New LP Preferred Units shares outstanding is presented net of intracompany shares held by Holding LP. (2) Class B, Series 1 and 2 capital securities - corporate are owned by Brookfield Corporation. BPO has an offsetting loan receivable against these securities earning interest at 95% of bank prime. (3) The dividend rate pertaining to India REIT is equal to a minimum of 90% of net distributable cash flows. The capital securities presented above represent interests in the partnership or its subsidiaries that are in legal form equity and are accounted for as liabilities in accordance with IAS 32 - Financial Instruments due to the redemption features of these instruments. The Class A Preferred Units were issued on December 4, 2014 in three tranches of $600 million each, with an average dividend yield of 6.5% and maturities of seven ten On December 30, 2021, Brookfield acquired the seven-year tranche of Class A Preferred Units, Series 1 units from the holder and exchanged such units for Redemption-Exchange Units. The Class A Preferred Units, Series 1 were subsequently cancelled. The holders of each series of the BOP Split Senior Preferred Shares are each entitled to receive fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of BOP Split. Dividends on each series of the BOP Split Senior Preferred Shares are payable quarterly on the last day of March, June, September and December in each year. Capital securities includes $474 million at December 31, 2022 (December 31, 2021 - $474 million) of preferred equity interests issued in connection with the Privatization which have been classified as a liability, rather than as a non-controlling interest, due to the fact that the holders of such interests can demand cash payment upon maturity of July 26, 2081, for the liquidation preference of $25.00 per unit and any accumulated unpaid dividends. Capital securities also includes $142 million at December 31, 2022 (December 31, 2021 - $142 million) of preferred equity interests held by a third party investor in Rouse Properties, L.P. which have been classified as a liability, rather than as a non- controlling interest, due to the fact that the interests are mandatorily redeemable on or after November 12, 2025 for a set price per unit plus any accrued but unpaid distributions; distributions are capped and accrue regardless of available cash generated. Capital securities also includes $456 million at December 31, 2022 (December 31, 2021 - $440 million) of preferred equity interests held by third party investors in the India REIT, which have been classified as a liability, rather than as a non-controlling interest, due to the fact BIRET has a contractual obligation to make distributions to unitholders every six months at an amount no less than 90% of net distributable cash flows. The Capital Securities - Fund Subsidiaries includes $545 million (December 31, 2021 - $810 million) of equity interests in Brookfield DTLA Holdings LLC (“DTLA”) held by co-investors in DTLA which have been classified as a liability, rather than as non-controlling interest, as holders of these interests can cause DTLA to redeem their interests in the fund for cash equivalent to the fair value of the interests on October 15, 2023, and on every fifth anniversary thereafter. Capital Securities – Fund Subsidiaries are measured at FVTPL. Capital Securities - Fund Subsidiaries also includes $32 million at December 31, 2022 (December 31, 2021 - $49 million) which represents the equity interests held by the partnership’s co-investor in the Brookfield D.C. Office Partners LLC ("D.C. Fund") which have been classified as a liability, rather than as non-controlling interest, due to the fact that on October 31, 2025, and on every second anniversary thereafter, the holders of these interests can redeem their interests in the D.C. Fund for cash equivalent to the fair value of the interests. Reconciliation of cash flows from financing activities from capital securities is shown in the table below: Non-cash changes on capital securities (US$ Millions) Dec. 31, 2021 Capital securities issued Capital securities redeemed Equity conversion of capital securities Fair value changes Other Dec. 31, 2022 Capital securities $ 3,085 $ 57 $ (3) $ — $ (321) $ 15 $ 2,833 Capital securities includes $33 million (December 31, 2021 - $38 million) repayable in Canadian Dollars of C$45 million (December 31, 2021 - C$49 million). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES The partnership is a flow-through entity for tax purposes and as such is not subject to Bermudian taxation. However, income taxes are recognized for the amount of taxes payable by the primary holding subsidiaries of the partnership (“Holding Entities”), any direct or indirect corporate subsidiaries of the Holding Entities and for the impact of deferred tax assets and liabilities related to such entities. The components of net deferred tax liability are presented as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Deferred income tax assets: Non-capital losses (Canada) $ 102 $ 95 Capital losses (Canada) 32 34 Net operating losses (United States) 570 352 Non-capital losses (foreign) 142 118 Tax credit carryforwards 61 77 Capital losses (United States) 758 203 Other 26 31 1,691 910 Deferred income tax (liabilities): Properties (4,755) (4,160) (4,755) (4,160) Net deferred tax (liability) $ (3,064) $ (3,250) The changes in deferred tax balances are presented as follows: Recognized in (US$ Millions) Dec. 31, 2021 Income Equity Acquisitions and Dispositions OCI Other Balance Sheet Dec. 31, 2022 Deferred tax assets $ 910 $ 810 $ — $ — $ (29) $ — $ 1,691 Deferred tax (liabilities) (4,160) (928) — 143 190 — (4,755) Net deferred tax (liability) $ (3,250) $ (118) $ — $ 143 $ 161 $ — $ (3,064) Recognized in (US$ Millions) Dec. 31, 2020 Income Equity Acquisitions and Dispositions OCI Other Balance Sheet Dec. 31, 2021 Deferred tax assets $ 772 $ 164 $ 7 $ — $ (5) $ (28) $ 910 Deferred tax (liabilities) (3,630) (519) — 85 (96) — (4,160) Net deferred tax (liability) $ (2,858) $ (355) $ 7 $ 85 $ (101) $ (28) $ (3,250) During 2022, the partnership and its subsidiaries have disposed of a corporate entity in BSREP II, as a result they have derecognized deferred tax liabilities of $143 million associated with that corporation. The Holding Entities and their Canadian subsidiaries have deferred tax assets of $102 million (December 31, 2021 - $95 million) related to non-capital losses that will begin to expire in 2032, and $32 million (December 31, 2021 - $34 million) related to capital losses that have no expiry. The Holding Entities and their U.S. subsidiaries have deferred tax assets of $570 million (December 31, 2021 - $352 million) related to net operating losses that will begin to expire in 2026. The Holding Entities and their U.S. subsidiaries have deferred tax assets of $758 million (December 31, 2021 - $203 million) related to non-capital losses which will begin to expire in 2023. The holding entities and their foreign subsidiaries, mainly in India, South Korea and the United Kingdom, have deferred tax assets of $142 million (December 31, 2021 - $118 million) related to non-capital losses which will begin to expire in 2023. The gross deductible temporary differences, unused tax losses, and unused tax credits for which no deferred tax asset is recognized are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Unused tax losses - gross Net operating losses (United States) $ 24 $ 34 Capital losses (United States) — 275 Net operating losses (foreign) 341 513 Other unrecognized tax attributes 37 — Unrecognized deductible temporary differences, unused tax losses, and unused tax credits $ 402 $ 822 The Holding Entities, their U.S. subsidiaries, and foreign subsidiaries have gross deductible temporary differences, unused tax losses, and unused tax credits which have not been recognized of $402 million (December 31, 2021 - $822 million) related to net operating losses and capital losses. Approximately $178 million of the foreign net operating losses will expire by 2031. The remaining foreign net operating losses have no expiry. The majority of the U.S. net operating losses will begin to expire in 2035. The majority of U.S. capital losses will begin to expire in 2035. The aggregate amount of gross temporary differences associated with investments and interests in joint arrangements in subsidiaries for which deferred tax liabilities have not been recognized as of December 31, 2022 is approximately $4 billion (December 31, 2021 - $10 billion). The major components of income tax expense include the following: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Current income tax expense $ 163 $ 134 $ 58 Deferred income tax expense (benefit) 118 356 162 Income tax expense $ 281 $ 490 $ 220 The decrease in income tax expense for the year ended December 31, 2022 compared to the prior year primarily relates to tax rate changes in jurisdictions in which the partnership holds investments. Years ended Dec. 31, 2022 2021 2020 Statutory income tax rate 26 % 26 % 26 % Increase (decrease) in rate resulting from: International operations subject to different tax rates (7) % (7) % (35) % Non-controlling interests in income of flow-through entities (2) % (10) % 8 % Change in tax rates applicable to temporary differences in other jurisdictions 4 % 2 % (8) % Other 1 % 1 % (3) % Effective income tax rate 22 % 12 % (12) % As the partnership is not subject to tax, the analyses used the applicable Canadian blended Federal and Provincial tax rate as the statutory income tax rate. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES The components of other non-current liabilities are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Accounts payable and accrued liabilities $ 824 $ 499 Lease liabilities (1) 1,049 690 Derivative liability 371 277 Provisions 7 16 Deferred revenue 21 16 Loans and notes payable 171 1 Total other non-current liabilities $ 2,443 $ 1,499 (1) For the year ended December 31, 2022, interest expense relating to total lease liabilities (see Note 18, Accounts Payable And Other Liabilities for the current portion) was $58 million (2021 - $59 million). |
ACCOUNTS PAYABLE AND OTHER LIAB
ACCOUNTS PAYABLE AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS PAYABLE AND OTHER LIABILITIES | ACCOUNTS PAYABLE AND OTHER LIABILITIES The components of accounts payable and other liabilities are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Accounts payable and accrued liabilities $ 2,852 $ 2,021 Loans and notes payable 226 899 Derivative liabilities 167 221 Deferred revenue 436 445 Lease liabilities (1) 163 160 Other liabilities 33 16 Total accounts payable and other liabilities $ 3,877 $ 3,762 (1) See Note 17, Other Non-Current Liabilities for further information on the interest expense related to these liabilities. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [abstract] | |
EQUITY | EQUITY The partnership’s capital structure is comprised of five classes of partnership units: GP Units, LP Units, REUs, Special LP Unit and FV LTIP Units. In addition, the partnership issued Class A Cumulative Redeemable Perpetual Preferred Units, Series 1 in the first quarter of 2019, Class A Cumulative Redeemable Perpetual Preferred Units, Series 2 in the third quarter of 2019 and Class A Cumulative Redeemable Perpetual Preferred Units, Series 3 in the first quarter of 2020 (“Preferred Equity Units”). As part of the Privatization, the partnership fully redeemed two classes of partnership units: Exchange LP Units and BPYU Units. Refer to Note 3, Privatization of the Partnership for discussion of the impacts of the privatization to the partnership’s equity structure. a) General and limited partnership units GP Units entitle the holder to the right to govern the financial and operating policies of the partnership. The GP Units are entitled to a 1% general partnership interest. LP Units entitle the holder to their proportionate share of distributions. Each LP Unit entitles the holder thereof to one vote for the purposes of any approval at a meeting of limited partners, provided that holders of the Redeemable/Exchangeable Partnership Units that are exchanged for LP Units will only be entitled to a maximum number of votes in respect of the Redeemable/Exchangeable Partnership Units equal to 49% of the total voting power of all outstanding units. The following table presents changes to the GP Units and LP Units from the beginning of the year: GP Units LP Units (Thousands of units), Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Outstanding, beginning of year 139 139 139 298,987 435,980 439,802 Privatization — — — (146,278) — Exchange LP Units exchanged — — — — 128 169 BPYU Units exchanged — 8,922 11,580 Distribution reinvestment program — — — — 123 998 Issued under unit-based compensation plan — — — — 112 — LP Units issued — — — — — 59,497 Repurchases of LP Units — — — — — (76,066) Outstanding, end of year 139 139 139 298,987 298,987 435,980 b) Units of the Operating Partnership held by Brookfield Corporation Redeemable/Exchangeable Partnership Units There were 529,473,303 Redeemable/Exchangeable Partnership Units outstanding at December 31, 2022 and 2021, and 451,365,017 outstanding at December 31, 2020. Special limited partnership units Brookfield Property Special L.P. (“Special LP”) is entitled to receive equity enhancement distributions and incentive distributions from the Operating Partnership as a result of its ownership of the Special LP Units. There were 4,759,997 Special LP Units outstanding at December 31, 2022, 2021 and 2020. c) Limited partnership units of Brookfield Office Properties Exchange LP The following table presents changes to the Exchange LP Units from the beginning of the year: Exchange LP Units (Thousands of units) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2020 Outstanding, beginning of year — 2,714 2,883 Exchange LP Units exchanged (1) — (128) (169) Privatization — (2,586) — Outstanding, end of year — — 2,714 (1) Exchange LP Units issued for the acquisition of incremental BPO common shares that have been exchanged are held by an indirect subsidiary of the partnership. Refer to the Consolidated Statements of Changes in Equity for the impact of such exchanges on the carrying value of Exchange LP Units. d) FV LTIP Units The partnership issued FV LTIP units under the Brookfield Property L.P. FV LTIP Unit Plan to certain participants in 2019. Each FV LTIP Unit will vest over a period of five years and is redeemable for LP Units or a cash payment subject to a conversion adjustment. There were 1,571,709, 1,818,717 and 1,899,661 FV LTIP Units outstanding at December 31, 2022, 2021 and 2020, respectively. e) Class A stock of Brookfield Properties Retail Holding LLC In connection with the Privatization discussed in Note 3, Privatization of the Partnership, all public outstanding BPYU Units were acquired. The partnership indirectly owns all of the remaining outstanding Units. During the year ended December 31, 2021, there were 8,922,243 BPYU Units exchanged for LP Units, 841,950 BPYU Units repurchased, 377,209 BPYU Units issued, and 6,091 BPYU Unit forfeitures. f) Preferred Equity Units During the year ended December 31, 2019, the partnership issued 7,360,000 Class A Cumulative Redeemable Perpetual Preferred Units, Series 1 at $25.00 per unit at a coupon rate of 6.5% and 10,000,000 Class A Cumulative Redeemable Perpetual Preferred Units, Series 2 at $25.00 per unit at a coupon rate of 6.375%. In total $722 million of gross proceeds were raised and $24 million in underwriting and issuance costs were incurred. The Series 1 Units were redeemed in the fourth quarter of 2021. During the year ended December 31, 2020, the partnership issued 11,500,000 Class A Cumulative Redeemable Perpetual Preferred Units, Series 3 at $25.00 per unit at a coupon rate of 5.75%. In total $288 million of gross proceeds were raised and $9 million in underwriting and issuance costs were incurred. At December 31, 2022, Preferred Equity Units had a total carrying value of $699 million (December 31, 2021 - $699 million). g) Distributions Distributions made to each class of partnership units, including units of subsidiaries that are exchangeable into LP Units, are as follows: (US$ Millions, except per unit information) Years ended Dec. 31, 2022 2021 2020 Limited partners $ 419 $ 358 $ 583 Holders of: Redeemable/exchangeable partnership units 743 499 581 Special LP Units 5 5 6 Exchange LP Units — 1 4 FV LTIP of the Operating Partnership 2 2 2 BPYU Units — 13 68 Total distributions $ 1,169 $ 878 $ 1,244 Per unit (1) $ 1.40 $ 1.05 $ 1.33 (1) Per unit outstanding on the record date for each. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2022 | |
Non-Controlling Interest 1 [Abstract] | |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS Non-controlling interests consists of the following: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Redeemable/Exchangeable Partnership Units and Special LP Units (1) $ 14,688 $ 15,736 FV LTIP units of the Operating Partnership (1) 45 55 Interest of others in operating subsidiaries and properties: Preferred shares held by Brookfield Corporation (2) 2,490 1,015 Preferred equity of subsidiaries 2,772 2,750 Non-controlling interests in subsidiaries and properties 12,822 15,941 Total interests of others in operating subsidiaries and properties 18,084 19,706 Total non-controlling interests $ 32,817 $ 35,497 (1) Each unit within these classes of non-controlling interest has economic terms substantially equivalent to those of an LP Unit. As such, income attributed to each unit or share of non-controlling interest is equivalent to that allocated to an LP Unit. The proportion of interests held by holders of the Redeemable/Exchangeable Units changes as a result of issuances, repurchases and exchanges. Consequently, the partnership adjusted the relative carrying amounts of the interests held by limited partners and non-controlling interests based on their relative share of the equivalent LP Units. The difference between the adjusted value and the previous carrying amounts was attributed to current LP Units as ownership changes in the Consolidated Statements of Changes in Equity. (2) See Note 32, Related Parties for further information on the Manager Reorganization. |
COMMERCIAL PROPERTY REVENUE
COMMERCIAL PROPERTY REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
COMMERCIAL PROPERTY REVENUE | COMMERCIAL PROPERTY REVENUE The components of commercial property revenue are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Base rent $ 3,153 $ 3,462 $ 3,613 Straight-line rent 25 25 133 Lease termination 27 68 27 Other lease income (1) 662 662 627 Other revenue from tenants (2) 982 946 997 Total commercial property revenue $ 4,849 $ 5,163 $ 5,397 (1) Other lease income includes parking revenue and recovery of property tax and insurance expense from tenants. (2) Consists of recovery of certain operating expenses and other revenue from tenants which are accounted for in accordance with IFRS 15. As a result of pandemic-related closures and restrictions, certain of the partnership’s tenants, primarily in the Core Retail segment, requested rental assistance, in the form of either a deferral or rent reduction. Lease concessions granted in response to the pandemic are accounted for as a lease modification and are recognized prospectively over the remaining lease term when they become legally enforceable. In the current period, the partnership granted abatements of $13 million (2021 - $82 million) for the twelve months ended December 31, 2022, primarily related to prior year rents in response to tenants impacted by the pandemic. The partnership leases properties under operating leases generally with lease terms of between 1 and 15 years, with options to extend. Minimum rental commitments under non-cancellable tenant operating leases are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Less than 1 year $ 2,933 $ 2,776 1-5 years 9,266 9,029 More than 5 years 8,559 8,522 Total $ 20,758 $ 20,327 The components of investment and other revenue are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Investment income $ 518 $ 476 $ 177 Fee revenue 285 255 228 Dividend income 114 77 44 Interest income and other 88 56 45 Total investment and other revenue $ 1,005 $ 864 $ 494 |
HOSPITALITY REVENUE
HOSPITALITY REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of revenue [Abstract] | |
HOSPITALITY REVENUE | HOSPITALITY REVENUE The components of hospitality revenue are as follows: (US$ Millions) 2022 2021 2020 Room, food and beverage $ 1,300 $ 931 $ 562 Gaming, and other leisure activities 175 111 106 Other hospitality revenue 36 31 34 Total hospitality revenue $ 1,511 $ 1,073 $ 702 |
INVESTMENT AND OTHER REVENUE
INVESTMENT AND OTHER REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
INVESTMENT AND OTHER REVENUE | COMMERCIAL PROPERTY REVENUE The components of commercial property revenue are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Base rent $ 3,153 $ 3,462 $ 3,613 Straight-line rent 25 25 133 Lease termination 27 68 27 Other lease income (1) 662 662 627 Other revenue from tenants (2) 982 946 997 Total commercial property revenue $ 4,849 $ 5,163 $ 5,397 (1) Other lease income includes parking revenue and recovery of property tax and insurance expense from tenants. (2) Consists of recovery of certain operating expenses and other revenue from tenants which are accounted for in accordance with IFRS 15. As a result of pandemic-related closures and restrictions, certain of the partnership’s tenants, primarily in the Core Retail segment, requested rental assistance, in the form of either a deferral or rent reduction. Lease concessions granted in response to the pandemic are accounted for as a lease modification and are recognized prospectively over the remaining lease term when they become legally enforceable. In the current period, the partnership granted abatements of $13 million (2021 - $82 million) for the twelve months ended December 31, 2022, primarily related to prior year rents in response to tenants impacted by the pandemic. The partnership leases properties under operating leases generally with lease terms of between 1 and 15 years, with options to extend. Minimum rental commitments under non-cancellable tenant operating leases are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Less than 1 year $ 2,933 $ 2,776 1-5 years 9,266 9,029 More than 5 years 8,559 8,522 Total $ 20,758 $ 20,327 The components of investment and other revenue are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Investment income $ 518 $ 476 $ 177 Fee revenue 285 255 228 Dividend income 114 77 44 Interest income and other 88 56 45 Total investment and other revenue $ 1,005 $ 864 $ 494 |
DIRECT COMMERCIAL PROPERTY EXPE
DIRECT COMMERCIAL PROPERTY EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
Direct operating expense from investment property [abstract] | |
DIRECT COMMERCIAL PROPERTY EXPENSE | DIRECT COMMERCIAL PROPERTY EXPENSE The components of direct commercial property expense are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Property maintenance $ 727 $ 713 $ 679 Real estate taxes 548 580 610 Employee compensation and benefits 148 155 158 Depreciation and amortization 29 39 39 Lease expense (1) 11 11 16 Other (2) 389 433 473 Total direct commercial property expense $ 1,852 $ 1,931 $ 1,975 (1) Represents the operating expenses relating to variable lease payments not included in the measurement of the lease liability. (2) For the twelve months ended December 31, 2022, the partnership recorded a loss recovery of $11 million (loss allowance of 2021 - $49 million, 2020 - $99 million) in commercial property operating expenses. |
DIRECT HOSPITALITY EXPENSE
DIRECT HOSPITALITY EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about investment property [abstract] | |
DIRECT HOSPITALITY EXPENSE | DIRECT HOSPITALITY EXPENSE The components of direct hospitality expense are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Employee compensation and benefits $ 230 $ 160 $ 180 Cost of food, beverage, and retail goods sold 245 158 142 Depreciation and amortization 258 269 280 Maintenance and utilities 105 99 112 Marketing and advertising 26 23 28 Other 277 201 166 Total direct hospitality expense $ 1,141 $ 910 $ 908 |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of General And Administrative Expense [Abstract] | |
GENERAL AND ADMINISTRATIVE EXPENSE | GENERAL AND ADMINISTRATIVE EXPENSE The components of general and administrative expense are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Employee compensation and benefits $ 376 $ 360 $ 385 Management fees 281 241 116 Transaction costs 26 48 24 Professional fees 92 97 98 Facilities and technology fees 43 47 54 Other 112 131 139 Total general and administrative expense $ 930 $ 924 $ 816 |
FAIR VALUE GAINS (LOSSES), NET
FAIR VALUE GAINS (LOSSES), NET | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement [Abstract] | |
FAIR VALUE GAINS (LOSSES), NET | FAIR VALUE GAINS (LOSSES), NET The components of fair value gains (losses), net, are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Commercial properties (1) $ (1,122) $ 1,791 $ (1,607) Commercial developments 64 171 219 Incentive fees (2) (45) (24) (16) Financial instruments and other (3) 1,123 583 82 Total fair value (losses) gains, net $ 20 $ 2,521 $ (1,322) (1) For the year ended December 31, 2022, includes fair value loss on right-of-use investment properties of $2 million (2021 - $5 million, 2020 - $16 million). (2) Represents incentive fees the partnership is obligated to pay to the general partner of the partnership’s various fund investments. (3) For the year ended December 31, 2022, primarily includes fair value gains on the disposition of a student housing portfolio. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive (loss) income consists of the following: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Items that may be reclassified to net income: Foreign currency translation Unrealized foreign currency translation (losses) gains in respect of foreign operations $ (1,233) $ (467) $ 87 Reclassification of realized foreign currency translation gains to net income on disposition of foreign operations 189 27 — Gains (losses) on hedges of net investments in foreign operations 539 163 650 (505) (277) 737 Cash flow hedges Gains on derivatives designated as cash flow hedges, net of income tax expense (benefit) of $(9) million (2021 - $(12) million; 2020 - $4 million) 49 95 116 49 95 116 Equity accounted investments Share of unrealized foreign currency translations (losses) gains in respect of foreign operations (1) (2) 4 Share of gains (losses) on derivatives designated as cash flow hedges 129 56 (62) 128 54 (58) Items that will not be reclassified to net income: Unrealized (losses) gains on securities - FVTOCI, net of income tax (expense) benefit of $(2) million (2021 - $(59) million; 2020 - $11 million) (26) (33) 17 Share of revaluation surplus (losses) on equity accounted investments 113 354 (206) Net remeasurement gains (losses) on defined benefit plan 1 — (1) Revaluation surplus (loss), net of income tax (expense) benefit of $(72) million (2021 –$(120) million; 2020 – $49 million) 655 811 (191) 743 1,132 (381) Total other comprehensive income $ 415 $ 1,004 $ 414 |
OBLIGATIONS, GUARANTEES, CONTIN
OBLIGATIONS, GUARANTEES, CONTINGENCIES AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Obligations, Guarantees, Contingencies And Other [Abstract] | |
OBLIGATIONS, GUARANTEES, CONTINGENCIES AND OTHER | OBLIGATIONS, GUARANTEES, CONTINGENCIES AND OTHER In the normal course of operations, the partnership and its consolidated entities execute agreements that provide for indemnification and guarantees to third parties in transactions such as business dispositions, business acquisitions, sales of assets and sales of services. Certain of the partnership’s operating subsidiaries have also agreed to indemnify their directors and certain of their officers and employees. The nature of substantially all of the indemnification undertakings prevent the partnership from making a reasonable estimate of the maximum potential amount that it could be required to pay third parties as the agreements do not specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, neither the partnership nor its consolidated subsidiaries have made significant payments under such indemnification agreements. The partnership and its operating subsidiaries may be contingently liable with respect to litigation and claims that arise from time to time in the normal course of business or otherwise. At December 31, 2022, the partnership had commitments totaling: • approximately $203 million for the development of Manhattan West in Midtown New York, 1100 Avenue of the Americas redevelopment in Midtown New York, Greenpoint Landing in Brooklyn, 755 Figueroa in Los Angeles and Halley Rise in Washington, D.C; and • approximately A$135 million ($92 million) primarily for the development of 1 The Esplanade in Sydney and Elizabeth Quay in Perth. During 2013, Brookfield Corporation announced the final close on the $4.4 billion BSREP I fund, a global private fund focused on making opportunistic investments in commercial property. The partnership, as lead investor, committed approximately $1.3 billion to the fund. As of December 31, 2022, there remained approximately $147 million of uncontributed capital commitments. In April 2016, Brookfield Corporation announced the final close on the $9.0 billion BSREP II fund to which the partnership had committed $2.3 billion as lead investor. As of December 31, 2022, there remained approximately $644 million of uncontributed capital commitments. In November 2017, Brookfield Corporation announced the final close on the $2.9 billion fifth Brookfield Real Estate Finance Fund to which the partnership had committed $400 million as lead investor. As of December 31, 2022, there remained approximately $157 million of uncontributed capital commitments. In September 2018, Brookfield Corporation announced the final close of the $1.0 billion third Brookfield Fairfield U.S. Multifamily Value Add Fund to which the partnership had committed $300 million. As of December 31, 2022, there remained approximately $159 million of uncontributed capital commitments. In January 2019, Brookfield Corporation announced the final close on the $15.0 billion BSREP III fund to which the partnership has committed $1.0 billion. As of December 31, 2022, there remained approximately $347 million of uncontributed capital commitments. In December 2022, Brookfield Corporation announced the final close on the $15.3 billion BSREP IV fund to which the partnership has committed $3.5 billion. As of December 31, 2022, there remained approximately $2.8 billion of uncontributed capital commitments. In October of 2020, Brookfield Corporation announced the final close on the €619 million ($663 million) Brookfield European Real Estate Partnership fund to which the partnership has committed €100 million ($107 million). As of December 31, 2022, all capital commitments have been contributed. The partnership maintains insurance on its properties in amounts and with deductibles that it believes are in line with what owners of similar properties carry. The partnership maintains all risk property insurance and rental value coverage (including coverage for the perils of flood, earthquake and named windstorm). The partnership does not conduct its operations, other than those of equity accounted investments, through entities that are not fully or proportionately consolidated in these financial statements, and has not guaranteed or otherwise contractually committed to support any material financial obligations not reflected in these financial statements. |
LIQUIDITY AND CAPITAL MANAGEMEN
LIQUIDITY AND CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
Liquidity and Capital Management [Abstract] | |
LIQUIDITY AND CAPITAL MANAGEMENT | LIQUIDITY AND CAPITAL MANAGEMENT The capital of the partnership’s business consists of debt obligations, capital securities, preferred stock and equity. The partnership’s objective when managing this capital is to maintain an appropriate balance between holding a sufficient amount of equity capital to support its operations and reducing its weighted average cost of capital to improve its return on equity. As at December 31, 2022, capital totaled $103 billion (December 31, 2021 - $100 billion). The partnership attempts to maintain a level of liquidity to ensure it is able to participate in investment opportunities as they arise and to better withstand sudden adverse changes in economic circumstances. The partnership’s primary sources of liquidity include cash, undrawn committed credit facilities, construction facilities, cash flow from operating activities and access to public and private capital markets. In addition, the partnership structures its affairs to facilitate monetization of longer-duration assets through financings and co-investor participations. The partnership seeks to increase income from its existing properties by maintaining quality standards for its properties that promote high occupancy rates and support increases in rental rates while reducing tenant turnover and related costs, and by controlling operating expenses. Consequently, the partnership believes its revenue, along with proceeds from financing activities and divestitures, will continue to provide the necessary funds to cover its short-term liquidity needs. However, material changes in the factors described above may adversely affect the partnership’s net cash flows. The partnership’s principal liquidity needs for the current year and for periods beyond include: • Recurring expenses; • Debt service requirements; • Distributions to preferred equity unitholders; • Distributions to unitholders; • Capital expenditures deemed mandatory, including tenant improvements; • Development costs not covered under construction loans; • Investing activities which could include: ◦ Fulfilling the partnership’s capital commitments to various funds; ◦ Discretionary capital expenditures; ◦ Property acquisitions; and ◦ Future development. Most of the partnership’s borrowings are in the form of long-term asset-specific financings with recourse only to the specific assets. Limiting recourse to specific assets ensures that poor performance within one area does not compromise the partnership’s ability to finance the balance of its operations. In addition, the partnership may, from time to time, issue equity instruments, including, but not limited to, LP Units, preferred equity and Redeemable/Exchangeable Partnership Units, to the public in private placements in certain circumstances to provide financing for significant transactions. The partnership’s operating subsidiaries are subject to limited covenants in respect of their corporate debt and are in full compliance with all such covenants at December 31, 2022. The partnership’s operating subsidiaries are also in compliance with all covenants and other capital requirements related to regulatory or contractual obligations of material consequence to the partnership. The partnership generally believes that it will be able to either extend the maturity date, repay, or refinance the debt that is scheduled to mature in 2023 to 2024, however, approximately 2% of its debt obligations represent non-recourse mortgages where the partnership has suspended contractual payment, and is currently engaging in modification or restructuring discussions with the respective creditors. The partnership is generally seeking relief given the circumstances resulting from the current economic slowdown, and may or may not be successful with these negotiations. If the partnership is unsuccessful, it is possible that certain properties securing these loans could be transferred to the lenders. The partnership’s strategy is to satisfy its liquidity needs in respect of the partnership using the partnership’s cash on hand, cash flows generated from operating activities and provided by financing activities, as well as proceeds from asset sales, primarily held in the LP Investments segment. The operating subsidiaries of the partnership also generate liquidity by accessing capital markets on an opportunistic basis. The partnership’s principal liquidity needs for periods beyond the next year are for scheduled debt maturities, distributions, recurring and non-recurring capital expenditures, development costs, potential property acquisitions, capital contributions to operating subsidiaries impacted by the shutdown and the partnership’s capital commitments to various funds. The partnership plans to meet these needs with one or more of: cash flows from operations; construction loans; creation of new funds; proceeds from sales of assets; proceeds from sale of non-controlling interests in subsidiaries and properties; and credit facilities and refinancing opportunities. The table below presents the partnership’s contractual obligations as of December 31, 2022: (US$ Millions) Payments due by period Dec. 31, 2022 Total < 1 Year 1 Year 2 Years 3 Years 4 Years > 5 Years Debt obligations (1) $ 58,864 $ 19,777 $ 13,486 $ 7,906 $ 4,189 $ 7,991 $ 5,515 Capital securities 2,833 600 575 172 555 — 931 Lease obligations 3,790 51 48 48 48 48 3,547 Commitments (2) 345 275 68 2 — — — Interest expense (3) : Debt obligations 8,872 3,072 1,932 1,329 982 657 900 Capital securities 1,169 152 154 118 109 73 563 Interest rate swaps (75) (16) (16) (15) (13) (15) — (1) Debt obligations gross of deferred financing costs of $302 million. (2) Primarily consists of construction commitments on commercial developments. (3) Represents aggregate interest expense expected to be paid over the term of the obligations. Variable interest rate payments have been calculated based on current rates. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS a) Derivatives and hedging activities The partnership and its operating entities use derivative and non-derivative instruments to manage financial risks, including interest rate, commodity, equity price and foreign exchange risks. The use of derivative contracts is governed by documented risk management policies and approved limits. The partnership does not use derivatives for speculative purposes. The partnership and its operating entities use the following derivative instruments to manage these risks: • foreign currency forward contracts to hedge exposures to Canadian Dollar, Australian Dollar, British Pound, Euro, Chinese Yuan, Brazilian Real, Indian Rupee and South Korean Won denominated net investments in foreign subsidiaries and foreign currency denominated financial assets; • interest rate swaps to manage interest rate risk associated with planned refinancings and existing variable rate debt; • interest rate caps to hedge interest rate risk on certain variable rate debt; and • cross currency swaps to manage interest rate and foreign currency exchange rates on existing variable rate debt. The partnership also designates Canadian Dollar financial liabilities of certain of its operating entities as hedges of its net investments in its Canadian operations. Interest Rate Hedging The following table provides the partnership’s outstanding derivatives that are designated as cash flow hedges of variability in interest rates associated with forecasted fixed rate financings and existing variable rate debt as of December 31, 2022 and 2021: (US$ Millions) Hedging item Notional Rates Maturity dates Fair value Dec. 31, 2022 Interest rate caps of US$ LIBOR debt $ 2,042 2.5% - 5.0% May 2023 - Apr. 2027 $ 20 Interest rate caps of US$ SOFR debt 3,989 1.0% - 6.0% Aug. 2023 - Nov. 2024 74 Interest rate swaps of US$ SOFR debt 2,500 3.7% Dec. 2027 3 Interest rate caps of £ SONIA debt 1,024 1.0% - 2.5% Jul. 2024 - Mar. 2025 41 Interest rate swaps of £ SONIA debt 804 2.7% Jan. 2023 - Jul. 2024 20 Interest rate caps of € EURIBOR debt 96 1.3% Apr. 2023 — Interest rate caps of C$ LIBOR debt 177 4.0% Oct. 2024 2 Interest rate swaps of AUD BBSW/BBSY debt 132 5.3% - 5.8% Apr. 2024 — Dec. 31, 2021 Interest rate caps of US$ LIBOR debt $ 9,590 2.5% - 5.0% Jan. 2022 - Jun. 2024 $ — Interest rate swaps of US$ LIBOR debt 2,130 1.0% - 2.6% Nov. 2022 - Feb. 2024 (50) Interest rate caps of £ LIBOR debt 2,301 1.0% - 2.5% Jan. 2022 - Dec. 2023 — Interest rate caps of £ SONIA debt 974 2.0% Oct. 2022 - Mar. 2025 5 Interest rate caps of € EURIBOR debt 102 1.3% Apr. 2022 — Interest rate caps of C$ LIBOR debt 240 2.0% Oct. 2022 — Interest rate swaps of AUD BBSW/BBSY debt 422 0.8% - 1.6% Apr. 2023 - Apr. 2024 — For the year ended December 31, 2022, the amount of hedge ineffectiveness recorded in earnings in connection with the partnership’s interest rate hedging activities was nil (December 31, 2021 - nil). Foreign Currency Hedging The following table presents the partnership’s outstanding derivatives that are designated as net investment hedges in foreign subsidiaries or cash flow hedges as of December 31, 2022 and 2021: (US$ Millions) Hedging item Net Notional Rates Maturity dates Fair value Dec. 31, 2022 Net investment hedges € 105 €0.91/$ - €1.02/$ Feb. 2023 - Dec. 2025 (7) Net investment hedges £ 1,319 £0.76/$ - £0.93/$ Jan. 2023 - Jul. 2023 (243) Net investment hedges A$ — A$1.49/$ - A$1.55/$ May. 2023 (1) Net investment hedges C¥ 2,703 C¥6.59/$ - C¥6.99/$ Jun. 2023 - Mar. 2025 (9) Net investment hedges R$ 908 R$6.24/$ - R$7.00/$ May. 2023 - Dec. 2024 (22) Net investment hedges ₩ 820,473 ₩1,283.60/$ - ₩1,410.00/$ Jan. 2023 - Nov. 2024 (42) Net investment hedges Rs 84,251 Rs79.40/$ - Rs89.84/$ Mar. 2023 - Jul. 2024 (5) Net investment hedges £ 374 £0.86/€ Jul. 2023 (16) Cross currency swaps of C$ LIBOR debt C$ 2,500 C$1.25/$ - C$1.38/$ Jul. 2023 - Jan. 2027 (45) Dec. 31, 2021 Net investment hedges € 389 €0.81/$ - €0.88/$ Jul. 2022 - Sep. 2024 $ (2) Net investment hedges £ 4,395 £0.71/$ - £0.76/$ Jun. 2022 - Mar. 2023 (89) Net investment hedges A$ 974 A$1.35/$ - A$1.41/$ Mar. 2022 - Mar. 2023 (14) Net investment hedges C¥ 1,596 C¥6.68/$ - C¥6.99/$ Jun. 2022 - Jun. 2023 (7) Net investment hedges R$ 2,546 R$5.87/$ - R$6.54/$ Sep. 2022 - Oct. 2022 (5) Net investment hedges ₩ 720,095 ₩1,165.75/$ - ₩1,197.60/$ Jun. 2022 - Jun. 2023 4 Net investment hedges Rs 75,690 Rs76.35/$ - Rs87.13/$ Jan. 2022 - Jul. 2024 (27) Net investment hedges £ 90 £0.91/€ Apr. 2022 9 Cross currency swaps of C$ LIBOR debt C$ 2,500 C$1.25/$ - C$1.38/$ Jul. 2023 - Jan. 2027 56 For the years ended December 31, 2022 and 2021, the amount of hedge ineffectiveness recorded in earnings in connection with the partnership’s foreign currency hedging activities was not significant. Other Derivatives The following tables provide detail of the partnership’s other derivatives, not designated as hedges for accounting purposes, that have been entered into to manage financial risks as of December 31, 2022 and 2021: (US$ millions) Derivative type Notional Rates Maturity dates Fair value Dec. 31, 2022 Interest rate caps $ 7,622 2.0% - 6.0% Jan. 2023 - Nov. 2032 $ 30 Interest rate swaps on forecasted fixed rate debt 335 3.6% - 5.3% Jun. 2023 (21) Dec. 31, 2021 Interest rate caps $ 5,388 3.0% - 5.0% Jan. 2022 - Feb. 2027 $ — Interest rate swaps on forecasted fixed rate debt 1,285 2.7% - 6.4% Jun. 2022 - Jun. 2033 (253) Interest rate swaps of US$ debt 1,696 0.8% - 5.1% Nov. 2022 - Mar. 2024 (8) The partnership recognized fair value losses of approximately nil (December 31, 2021 - losses of $31 million) related to the settlement of certain forward starting interest rate swaps that have not been designated as hedges. b) Measurement and classification of financial instruments Fair value is the amount that willing parties would accept to exchange a financial instrument based on the current market for instruments with the same risk, principal and remaining maturity. The fair value of interest bearing financial assets and liabilities is determined by discounting the contractual principal and interest payments at estimated current market interest rates for the instrument. Current market rates are determined by reference to current benchmark rates for a similar term and current credit spreads for debt with similar terms and risk. Classification and Measurement The following table outlines the classification and measurement basis, and related fair value for disclosures, of the financial assets and liabilities in the consolidated financial statements: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Classification and measurement basis Carrying Fair Carrying Fair Financial assets Loans and notes receivable Amortized cost 686 686 225 225 Other non-current assets Securities - FVTPL FVTPL 2,523 2,523 2,200 2,200 Derivative assets FVTPL 170 170 111 111 Accounts receivable Amortized cost 464 464 2 2 Securities - FVTOCI FVTOCI 69 69 108 108 Restricted cash Amortized cost 584 584 356 356 Current assets Securities - FVTOCI FVTOCI 36 36 — — Derivative assets FVTPL 124 124 33 33 Accounts receivable (1) Amortized cost 787 787 1,128 1,128 Restricted cash Amortized cost 342 342 331 331 Cash and cash equivalents Amortized cost 4,020 4,020 2,576 2,576 Total financial assets $ 9,805 $ 9,805 $ 7,070 $ 7,070 Financial liabilities Debt obligations (2) Amortized cost $ 58,562 $ 57,790 $ 55,327 $ 55,474 Capital securities Amortized cost 2,256 2,256 2,226 2,226 Capital securities - fund subsidiaries FVTPL 577 577 859 859 Other non-current liabilities Loan payable FVTPL 171 171 1 1 Accounts payable Amortized cost 824 824 499 499 Derivative liabilities FVTPL 371 371 277 277 Accounts payable and other liabilities Accounts payable and other (3) Amortized cost 2,852 2,852 2,097 2,097 Loans and notes payable Amortized cost 226 226 899 899 Derivative liabilities FVTPL 167 167 221 221 Total financial liabilities $ 66,006 $ 65,234 $ 62,406 $ 62,553 (1) Includes other receivables associated with assets classified as held for sale on the consolidated balance sheets in the amounts of nil and $276 million as of December 31, 2022 and December 31, 2021, respectively. (2) Includes debt obligations associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $3,006 million as of December 31, 2022 and December 31, 2021, respectively. (3) Includes accounts payable and other liabilities associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $76 million as of December 31, 2022 and December 31, 2021, respectively. The following table outlines financial assets and liabilities measured at fair value in the financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Securities designated as FVTPL 10 305 2,208 2,523 17 218 1,965 2,200 Securities designated as FVTOCI 36 — 69 105 13 — 95 108 Derivative assets — 294 — 294 — 144 — 144 Total financial assets $ 46 $ 599 $ 2,277 $ 2,922 $ 30 $ 362 $ 2,060 $ 2,452 Financial liabilities Capital securities - fund subsidiaries $ — $ — $ 577 $ 577 $ — $ — $ 859 $ 859 Derivative liabilities — 538 — 538 — 498 — 498 Total financial liabilities $ — $ 538 $ 577 $ 1,115 $ — $ 498 $ 859 $ 1,357 The following table presents the valuation techniques and inputs of the partnership’s Level 2 assets and liabilities: Type of asset/liability Valuation technique Foreign currency forward contracts Discounted cash flow model - forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at a credit adjusted rate Interest rate contracts Discounted cash flow model - forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate The table below presents the valuation techniques and inputs of Level 3 assets: Type of asset/liability Valuation techniques Significant unobservable input(s) Relationship of unobservable input(s) to fair value Securities - FVTPL/FVTOCI Net asset valuation (a) Forward exchange rates (from observable forward exchange rates at the end of the reporting period) (a) Increases (decreases) in the forward exchange rate would increase (decrease) fair value The following table presents the change in the balance of financial assets and financial liabilities classified as Level 3 as of December 31, 2022 and 2021: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Financial Financial Financial Financial Balance, beginning of year $ 2,060 $ 859 $ 1,682 $ 863 Additions 353 — 553 — Dispositions (222) — (88) — Fair value (losses) gains, net and OCI 86 (292) 366 2 Other — 10 (453) (6) Balance, end of year $ 2,277 $ 577 $ 2,060 $ 859 c) Market Risk Interest rate risk The partnership faces interest rate risk on its variable rate financial assets and liabilities. In addition, there is interest rate risk associated with the partnership’s fixed rate debt due to the expected requirement to refinance such debt in the year of maturity. The following table outlines the impact on interest expense of a 100 basis point increase or decrease in interest rates on the partnership’s variable rate liabilities and fixed rate debt maturing within one year: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Variable rate property debt $ 367 $ 255 Fixed rate property debt due within one year 35 31 Total $ 402 $ 286 The partnership manages interest rate risk by primarily entering into fixed rate operating property debt and staggering the maturities of its mortgage portfolio over a 10-year horizon when the market permits. The partnership also makes use of interest rate derivatives to manage interest rate risk on specific variable rate debts and on anticipated refinancing of fixed rate debt. Foreign currency risk The partnership is structured such that its foreign operations are primarily conducted by entities with a functional currency which is the same as the economic environment in which the operations take place. As a result, the net income impact of currency risk associated with financial instruments is limited as its financial assets and liabilities are generally denominated in the functional currency of the subsidiary that holds the financial instrument. However, the partnership is exposed to foreign currency risk on the net assets of its foreign currency denominated operations. The partnership’s exposures to foreign currencies and the sensitivity of net income and other comprehensive income, on a pre-tax basis, to a 10% change in the exchange rates relative to the U.S. dollar is summarized below: Dec. 31, 2022 (Millions) Equity attributable to Unitholders OCI Net income Canadian Dollar (1) C$ 142 $ (11) $ — Australian Dollar A$ 1,560 (106) — British Pound £ 4,059 (490) — Euro € 690 (74) — Brazilian Real R$ 3,129 (60) — Indian Rupee Rs 33,212 (40) — Chinese Yuan C¥ 2,554 (37) — South Korean Won ₩ 417,865 (33) — United Arab Emirates Dirham AED 1,287 (35) — Total $ (886) $ — (1) Net of Canadian Dollar denominated loans. Dec. 31, 2021 (Millions) Equity attributable to Unitholders OCI Net income Canadian Dollar (1) C$ 339 $ (27) $ — Australian Dollar A$ 1,708 (124) — British Pound £ 6,375 (863) — Euro € 1,297 (147) — Brazilian Real R$ 745 (13) — Indian Rupee Rs 617 (1) — Chinese Yuan C¥ 730 (11) — South Korean Won ₩ 289,443 (24) — United Arab Emirates Dirham AED 342 (9) — Czech Koruna CZK 5 — — Hungarian Forint HUF 5 — — Total $ (1,219) $ — (1) Net of Canadian Dollar denominated loans. Dec. 31, 2020 (Millions) Equity attributable to Unitholders OCI Net income Canadian Dollar (1) C$ 521 $ (41) $ — Australian Dollar A$ 2,056 (158) — British Pound £ 4,206 (575) — Euro € 328 (40) — Brazilian Real R$ 3,364 (65) — Indian Rupee Rs 28,281 (39) — Hong Kong Dollar HK$ — — — Chinese Yuan C¥ 1,084 (17) — South Korean Won ₩ 204,795 (19) — United Arab Emirates Dirham AED 708 (19) — Czech Koruna CZK 8 — — Hungarian Forint HUF 334 — — Poland Zloty PLN 3 — — Total $ (973) $ — (1) Net of Canadian Dollar denominated loans. d) Credit risk The partnership’s maximum exposure to credit risk associated with financial assets is equivalent to the carrying value of each class of financial asset as separately presented in loans and notes receivable, certain other non-current assets, accounts receivables and other, and cash and cash equivalents. Credit risk arises on loans and notes receivables in the event that borrowers default on the repayment to the partnership. The partnership mitigates this risk by attempting to ensure that adequate security has been provided in support of such loans and notes. Credit risk related to accounts receivable arises from the possibility that tenants may be unable to fulfill their lease commitments. The partnership mitigates this risk through diversification, ensuring that tenants meet minimum credit quality requirements and by ensuring that its tenant mix is diversified and by limiting its exposure to any one tenant. The partnership maintains a portfolio that is diversified by property type so that exposure to a business sector is lessened. Currently no one tenant represents more than 10% of operating property revenue. |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party [Abstract] | |
RELATED PARTIES | RELATED PARTIES In the normal course of operations, the partnership enters into transactions with related parties. These transactions are recognized in the consolidated financial statements. These transactions have been measured at exchange value and are recognized in the consolidated financial statements. The immediate parent of the partnership is the BPY General Partner. The ultimate parent of the partnership is Brookfield Corporation. Other related parties of the partnership include the partnership’s and Brookfield Corporation’s subsidiaries and operating entities, certain joint ventures and associates accounted for under the equity method, as well as officers of such entities and their spouses. The partnership has a management agreement with its service providers, wholly-owned subsidiaries of Brookfield Corporation. Pursuant to a Master Services Agreement, which was amended in connection with the Privatization, the partnership pays a management fee (“base management fee”), to the service providers. For the third and fourth quarters of 2021, the management fee was calculated one quarter in arrears based on the equity attributable to Unitholders of the Core Office, Core Retail and Corporate segments. Prior to the Privatization, the partnership paid a base management fee equal to 0.5% of the total capitalization of the partnership, subject to an annual minimum of $50 million, plus annual inflation adjustments. Post-Privatization, The management fee is calculated as 1.05% of the sum of the following amounts, as of the last day of the immediately preceding quarter: (i) the equity attributable to unitholders for the partnership’s Core Office, Core Retail and the Corporate segments; and (ii) the carrying value of the outstanding non-voting common shares of CanHoldco. The amount of the equity enhancement distribution is reduced by the amount by which the base management fee is greater than $50 million per annum, plus annual inflation adjustments. In connection with the 2018 acquisition of all of the outstanding common stock of GGP, the Master Services Agreement was amended so that the base management fee took into account any management fee payable by BPYU under its master services agreement with Brookfield Corporation and certain of its subsidiaries. For the year ended December 31, 2022, the partnership paid a base management fee of $223 million (2021 - $155 million; 2020 - $73 million). In connection with the issuance of Preferred Equity Units to the Class A Preferred Unitholder in 2014, Brookfield Corporation contingently agreed to acquire the seven-year and ten-year tranches of Preferred Equity Units from the Class A Preferred Unitholder for the initial issuance price plus accrued and unpaid distributions and to exchange such units for Preferred Equity Units with terms and conditions substantially similar to the twelve-year tranche to the extent that the market price of the LP Units is less than 80% of the exchange price at maturity. On December 30, 2021, BN acquired the seven-year tranche of Class A Preferred Units, Series 1 units from the holder and exchanged such units for REUs. The Class A Preferred Units, Series 1 were subsequently cancelled. The following table summarizes transactions and balances with related parties: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Balances outstanding with related parties: Net (payables)/receivables within equity accounted investments (110) (378) Loans and notes receivable 273 170 Receivables and other assets — 71 Deposit payable to Brookfield Corporation (1) — (680) Property-specific obligations (2,429) (250) Loans and notes payable and other liabilities (721) (259) Preferred shares held by Brookfield Corporation (2,490) (1,015) Brookfield Asset Management interest in Canholdco (1,759) (2,083) (1) As of December 31, 2022, a nil million on-demand deposit was payable to Brookfield Corporation, provided for in the deposit agreement between the partnership and Brookfield Corporation. The deposit limit was increased to $3.0 billion in the second quarter of 2021. (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Transactions with related parties: Commercial property revenue (1) $ 53 $ 35 $ 32 Management fee income 92 42 32 Income from equity accounted investments (22) 26 (11) Interest expense on debt obligations 20 24 19 Interest on capital securities held by Brookfield Corporation — — — General and administrative expense (2) 327 271 164 Construction costs (3) (68) 132 265 Return of capital distributions on Brookfield Corporation’s interest in Canholdco 118 176 — Distributions on Brookfield Corporation’s interest in Canholdco 113 369 — Incentive Fees (4) 45 35 16 (1) Amounts received from Brookfield Corporation and its subsidiaries for the rental of office premises. (2) Includes amounts paid to Brookfield Corporation and its subsidiaries for management fees, management fees associated with the partnership’s investments in Brookfield-sponsored real estate funds, and administrative services. (3) Includes amounts paid to Brookfield Corporation and its subsidiaries for construction costs of development properties. (4) Represents incentive fees the partnership is obligated to pay to the general partner of the partnership’s various fund investments. On December 9, 2022, Brookfield Corporation completed the distribution of 25% of its asset management business, through Brookfield Asset Management Ltd. (“the Manager”), by way of a plan of arrangement (the “Manager Distribution”). The transaction resulted in the division of Brookfield into two publicly traded companies – the Manager under the stock ticker BAM and Brookfield Corporation under the stock ticker BN. In advance of the Manager Distribution, a reorganization took place within Brookfield Corporation whereby the partnership redeemed $1 billion of preferred units issued by a subsidiary of the partnership and acquired certain LP interests in several real estate funds and other investment interests from the Corporation (“Manager Reorganization”) for net consideration of $2,475 million through the issuance of Class D junior preferred shares, Series 1 and 2 of a subsidiary of the partnership, Brookfield BPY Holdings Inc. (“CanHoldco Class D Junior Preferred Shares”), to the Corporation. The LP interests and other investment interests acquisitions, including related working capital balances acquired, were accounted for as a business acquisition under common control, as discussed in Note 2, Summary of Significant Accounting Policies , whereby the partnership records assets and liabilities recognized as a result of transfers of businesses or subsidiaries between entities under common control at carrying value. Differences between the consideration given or received and the carrying amount of the assets and liabilities transferred are recorded within ownership changes in equity. During the fourth quarter of 2021, the partnership sold two multifamily assets in the U.S. for approximately $73 million and a partial interest in an office asset in the U.K. for approximately $101 million to Brookfield Real Estate Income Trust Inc. On September 13, 2021, the partnership issued approximately 34 million Redeemable/Exchangeable Partnership Units and non-voting perpetual preferred shares of two of the partnership’s subsidiary holding entities to affiliates of Brookfield Corporation for aggregate consideration of $2 billion. On July 26, 2021, Brookfield Corporation completed its previously announced acquisition of all of the LP units of BPY it did not previously own. Cash consideration was funded to the partnership by BN in exchange for approximately $2.5 billion of Canholdco Non-Voting Common Shares, which is accounted for as non-controlling interests by BPY, with the remainder for New LP Preferred Units. For the year ended December 31, 2022, distributions of $113 million were paid to BN related to the Canholdco Non-Voting Common Shares. Refer to Note 3, Privatization of the Partnership , for further detail. On June 29, 2021, Brookfield Premier Real Estate Partners Australia acquired Brookfield Place Sydney from BSREP I for approximately $153 million. During the year ended December 31, 2020, the partnership issued 9,416,816 LP Units at $11.36 per unit, 2,696,841 LP Units at $12.00 per unit, 5,967,063 LP Units at $12.65 per unit, 13,392,277 LP Units at $13.92 per unit, and 18,715,912 Redeemable/Exchangeable Partnership Units at $12.00 per unit to Brookfield Corporation. During the third quarter of 2020, the partnership completed the recapitalization of the Atlantis with an investment from a Brookfield Corporation affiliate. |
PAYROLL EXPENSE
PAYROLL EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
PAYROLL EXPENSE | PAYROLL EXPENSE The partnership has no employees or directors; therefore the partnership does not remunerate key management personnel. Key decision makers of the partnership are all employees of Brookfield Corporation, the ultimate parent company, who provide management services under the Master Services Agreement. Throughout the year, the partnership’s general partner incurs director fees, a portion of which are charged to the partnership in accordance with the limited partnership agreement. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segments [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION a) Operating segments IFRS 8, Operating Segments, requires operating segments to be determined based on internal reports that are regularly reviewed by the chief operating decision maker (“CODM”) for the purpose of allocating resources to the segment and to assessing its performance. The partnership’s operating segments are organized into four reportable segments: i) Core Office, ii) Core Retail, iii) LP Investments and iv) Corporate. These segments are independently and regularly reviewed and managed by the Chief Executive Officer, who is considered the CODM. b) Basis of measurement The CODM measures and evaluates the operating performance of the partnership’s operating segments based on funds from operations (“FFO”). This performance metric does not have standardized meanings prescribed by IFRS and therefore may differ from similar metrics used by other companies and organizations. Management believes that while not an IFRS measure, FFO is the most consistent metric to measure the partnership’s financial statements and for the purpose of allocating resources and assessing its performance. The partnership defines FFO as net income, prior to fair value gains, net, depreciation and amortization of real estate assets, and income taxes less non-controlling interests of others in operating subsidiaries and properties share of these items. When determining FFO, the partnership also includes its proportionate share of the FFO of unconsolidated partnerships and joint ventures and associates. c) Reportable segment measures The following summaries present certain financial information regarding the partnership’s operating segments for the years ended December 31, 2022, 2021, and 2020. (US$ Millions) Total revenue FFO Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Core Office $ 2,210 $ 2,198 $ 2,049 $ 325 $ 539 $ 495 Core Retail 1,557 1,510 1,612 626 450 521 LP Investments 3,593 3,387 2,920 288 179 64 Corporate 5 5 12 (653) (590) (373) Total $ 7,365 $ 7,100 $ 6,593 $ 586 $ 578 $ 707 The following summary presents the detail of total revenue from the partnership’s operating segments for the years ended December 31, 2022, 2021 and 2020: (US$ Millions) Lease revenue Other revenue from tenants Hospitality revenue Investment and other revenue Total revenue Year ended Dec. 31, 2022 Core Office $ 1,373 $ 469 $ 22 $ 346 $ 2,210 Core Retail 1,138 264 — 155 1,557 LP Investments 1,357 248 1,489 499 3,593 Corporate — — — 5 5 Total $ 3,868 $ 981 $ 1,511 $ 1,005 $ 7,365 (US$ Millions) Lease revenue Other revenue from tenants Hospitality revenue Investment and other revenue Total revenue Year ended Dec. 31, 2021 Core Office $ 1,467 $ 442 $ 9 $ 280 $ 2,198 Core Retail 1,113 259 — 138 1,510 LP Investments 1,639 243 1,064 441 3,387 Corporate — — — 5 5 Total $ 4,219 $ 944 $ 1,073 $ 864 $ 7,100 (US$ Millions) Lease revenue Other revenue from tenants Hospitality revenue Investment and other revenue Total revenue Year ended Dec. 31, 2020 Core Office $ 1,429 $ 446 $ 6 $ 168 $ 2,049 Core Retail 1,166 284 — 162 1,612 LP Investments 1,805 267 696 152 2,920 Corporate — — — 12 12 Total $ 4,400 $ 997 $ 702 $ 494 $ 6,593 The following summaries presents share of net earnings from equity accounted investments and interest expense from the partnership’s operating segments for the years ended December 31, 2022, 2021, and 2020. (US$ Millions) Share of net earnings from equity accounted investments Interest expense Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Core Office $ 550 $ 644 $ 150 $ (723) $ (570) $ (586) Core Retail 234 472 (743) (660) (649) (647) LP Investments 42 (96) (156) (1,000) (1,069) (1,104) Corporate — — — (300) (305) (255) Total $ 826 $ 1,020 $ (749) $ (2,683) $ (2,593) $ (2,592) The following summary presents information about certain consolidated balance sheet items of the partnership, on a segmented basis, as of December 31, 2022 and 2021: Total assets Total liabilities Equity accounted investments (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Core Office $ 34,039 $ 37,661 $ 17,581 $ 18,172 $ 8,547 $ 9,819 Core Retail 30,363 30,585 13,850 14,316 9,674 9,945 LP Investments 47,458 43,403 32,146 27,516 1,722 1,043 Corporate 656 355 7,202 6,995 — — Total $ 112,516 $ 112,004 $ 70,779 $ 66,999 $ 19,943 $ 20,807 The following summary presents a reconciliation of FFO to net income for the years ended December 31, 2022, 2021, and 2020: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 FFO (1) $ 586 $ 578 $ 707 Add (deduct): Fair value gains (losses), net 20 2,521 (1,322) Share of equity accounted income (losses) - non-FFO 120 404 (1403) Depreciation and amortization of real-estate assets (190) (203) (249) Income tax (expense) (281) (490) (220) Non-controlling interests of others in operating subsidiaries and properties - non-FFO (387) (1,534) 129 Net income (loss) attributable to unitholders (2) (132) 1,276 (2,358) Non-controlling interests of others in operational subsidiaries and properties 1,128 2,223 300 Net income (loss) $ 996 $ 3,499 $ (2,058) (1) FFO represents interests attributable to GP Units, LP Units, Exchange LP Units, Redeemable/Exchangeable Partnership Units, Special LP Units, FV LTIP Units and BPYU Units. The interests attributable to Exchange LP Units, Redeemable/Exchangeable Units, Special LP Units, FV LTIP Units and BPYU Units are presented as non-controlling interests in the consolidated statements of income. (2) Includes net income attributable to GP Units, LP Units, Exchange LP Units, Redeemable/Exchangeable Partnership Units, Special LP Units, FV LTIP Units and BPYU Units. The interests attributable to Exchange LP Units, Redeemable/Exchangeable Units, Special LP Units, FV LTIP Units and BPYU Units are presented as non-controlling interests in the consolidated statements of income. The following summary presents financial information by the partnership’s geographic regions in which it operates: Total revenue Total non-current assets (US$ Millions) 2022 2021 2020 2022 2021 United States $ 4,740 $ 4,911 $ 4,743 $ 76,145 $ 64,695 Canada 491 421 424 5,120 5,446 Australia 360 322 182 2,338 4,081 Europe 1,151 887 592 11,949 16,956 Brazil 102 71 82 1,411 656 China 5 3 94 389 294 India 288 274 287 4,014 4,191 South Korea 228 211 189 3,745 — United Arab Emirates — — — 319 250 Total $ 7,365 $ 7,100 $ 6,593 $ 105,430 $ 96,569 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of events after reporting period [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 1, 2023, the Corporation transferred a 23% LP interest in the foreign investments owned by BSREP IV to the partnership for a non-interest bearing note of $588 million. On January 30, 2023, the board of directors declared the following quarterly distribution on the partnership’s: – LP Units of $0.35 per unit ($1.40 on an annualized basis) payable on March 31, 2023 to unitholders of record at the close of business on February 28, 2023; – Class A Cumulative Redeemable Perpetual Units, Series 1, $0.40625 per unit ($1.625 on an annualized basis) payable on March 31, 2023 to unitholders of record on March 1, 2023; – Class A Cumulative Redeemable Perpetual Units, Series 2, $0.3984375 per unit ($1.59375 on an annualized basis) payable on March 31, 2023 to unitholders on March 1, 2023; – Class A Cumulative Redeemable Perpetual Units, Series 3, $0.359375 per unit ($1.4375 on an annualized basis) payable on March 31, 2023 to unitholders of record on March 1, 2023; and – New LP Preferred Units, $0.390625 per unit ($1.5625 on an annualized basis) payable on March 31, 2023 to unitholders of record on March 1, 2023. On February 13, 2023, the partnership issued medium term notes for C$500 million at 7.125% per annum, with a term of five years via private placement. Interest on the notes are payable semi-annually. |
SCHEDULE III - SUPPLEMENTAL SCH
SCHEDULE III - SUPPLEMENTAL SCHEDULE OF INVESTMENT PROPERTY INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate And Accumulated Depreciation Disclosure 1 [Abstract] | |
SCHEDULE III - SUPPLEMENTAL SCHEDULE OF INVESTMENT PROPERTY INFORMATION | SCHEDULE III – SUPPLEMENTAL SCHEDULE OF INVESTMENT PROPERTY INFORMATION The table below presents the partnership’s number of commercial properties, the related fair value, debt obligations, weighted average year of acquisition and weighted average year of construction by asset class as of December 31, 2022. Dec. 31, 2022 Number of Fair value (1) Debt (2) Weighted average year of acquisition (3) Weighted average year of construction (3) (US$ millions, except where noted) Core Office United States 35 $ 13,459 $ 9,000 2004 1987 Canada 20 4,218 1,827 2002 1994 Australia 5 1,730 1,052 2013 2013 Europe 2 1,932 1,486 2020 2019 Brazil 2 374 55 2014 2014 64 $ 21,713 $ 13,420 2006 1994 Core Retail 54 19,406 9,141 2018 1975 Opportunistic Office 110 8,780 5,381 2017 1991 Opportunistic Retail 18 1,838 1,008 2015 1977 Logistics 33 673 3 2021 1989 Multifamily 10 1,995 1,651 2020 1990 Self-storage 19 95 61 2022 1998 Alternatives 1 66 195 2022 1960 Student Housing 41 1,712 1,238 2021 2012 Manufactured Housing 218 4,417 2,779 2018 1974 Mixed-use 7 3,098 1,904 2016 2010 Secondaries 44 917 551 2022 1985 Total $ 619 $ 64,710 $ 37,332 2014 1987 (1) Excludes right-of-use assets, development properties and land/parking lots with a fair value of $3,875 million. (2) Excludes debt related to development properties and land in the amount of $1,339 million, unsecured and corporate facilities of $13,378 million, debt on hospitality assets of $6,815 million and deferred financing costs of $302 million. (3) Weighted against the fair value of the properties at December 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Statement of compliance and Basis of presentation | Statement of compliance These consolidated financial statements of the partnership and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were approved and authorized for issue by the Board of Directors of the partnership on February 24, 2023. |
Subsidiaries | Subsidiaries The consolidated financial statements include the accounts of the partnership and its subsidiaries over which the partnership has control. Control exists when the partnership has power over its investee, has exposure, or rights, to variable returns from its involvement with the investee and has the ability to use its power over the investee to affect the amount of its returns. The partnership considers all relevant facts and circumstances in assessing whether or not the partnership’s interests in the investee are sufficient to give it power over the investee. Consolidation of a subsidiary begins on the date on which the partnership obtains control over the subsidiary and ceases when the partnership loses control over the subsidiary. Income and expenses of a subsidiary acquired or disposed of during a reporting period are consolidated only for the period when the partnership has control over the subsidiary. Changes in the partnership’s ownership interests in subsidiaries that do not result in loss of control over the subsidiary are accounted for as equity transactions whereby the difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received, are recognized directly in equity and attributed to owners of the partnership. All accounts and transactions among the partnership and its subsidiaries are eliminated on consolidation. In cases where a subsidiary reports under a different accounting policy, adjustments are made to the financial statements of the subsidiary to present its financial position and financial performance in accordance with the partnership’s accounting policy. Net income and each component of other comprehensive income are attributed to owners of the partnership and to non-controlling interests. During the third quarter of 2021, Brookfield Corporation acquired all LP Units and limited partnership units of Brookfield Office Properties Exchange LP (“Exchange LP”) Units that it did not previously own (“Privatization”), in exchange for cash consideration, BN class A limited voting shares (“BN shares”) and BPY preferred units (“New LP Preferred Units”). See Note 3, Privatization of the Partnership for further discussion. Non-controlling interests in the partnership’s operating subsidiaries and properties, redeemable/exchangeable partnership units of the Operating Partnership (“Redeemable/Exchangeable Partnership Units” or “REUs”), special limited partnership units of the Operating Partnership (“Special LP Units”) and FV LTIP units of the Operating Partnership (“FV LTIP Units”) are presented separately in equity on the consolidated balance sheets. No Exchange LP Units or Class A stock of Brookfield Properties Retail Holding LLC (“BPYU Units”) are held by public holders following the Privatization. The Redeemable/Exchangeable Partnership Units have the same economic attributes as LP Units and prior to the Privatization, Exchange LP Units and BPYU Units had the same economic attributes as LP Units. Accordingly, the net income and components of other comprehensive income allocated to these units are equivalent to that allocated to the LP Units (on a per unit basis). Net income and the components of comprehensive income of the partnership’s operating subsidiaries and properties are generally allocated between the partnership and non-controlling equity holders based on the relative proportion of equity interests. Certain of the partnership’s subsidiaries are subject to profit sharing arrangements with affiliated entities who hold non-controlling interests that result in allocation of income on an other than proportionate basis if specified targets are met. In these circumstances, net income is allocated between the partnership and non-controlling interests based on proportionate equity interest until the attribution of profits under the agreement is no longer subject to adjustment based on future events. In the period that allocation of the subsidiary’s cumulative earnings under the profit-sharing arrangement is no longer subject to adjustment, it is recognized as a fair value loss attributable to unitholders for the period. |
Associates and joint ventures | Associates and joint ventures An associate is an entity over which the partnership has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee. The partnership is presumed to have significant influence when it holds 20 percent or more of the voting rights of an investee, unless it can be clearly demonstrated that this is not the case. The partnership does not control its associates. A joint arrangement is an arrangement in which two or more parties have joint control. Joint control is the contractually agreed upon sharing of control where decisions about the relevant activities require the unanimous consent of the parties sharing control. A joint venture is a joint arrangement where the parties that have joint control have rights to the net assets of the arrangement. None of the parties involved have unilateral control of a joint venture. The partnership accounts for its interests in associates and joint ventures using the equity method of accounting. Under the equity method, investment balances in an associate or joint venture are carried on the consolidated balance sheets at initial cost as adjusted for the partnership’s proportionate share of profit or loss and other comprehensive income of the joint venture or associate. When an interest in an associate or joint venture is initially acquired or increases, the partnership determines its share of the net fair value of the identifiable assets and liabilities of the investee that it has acquired, consistent with the procedure performed when acquiring control of a business. Goodwill relating to an associate or joint venture, represented as an excess of the cost of the investment over the net fair value of the partnership’s share of the net fair value of the identifiable assets and liabilities, is included in the carrying amount of the investment. Any excess of the partnership’s share of the net fair value of the associate’s or joint venture’s identifiable assets and liabilities over the cost of the investment results in a gain that is included in the partnership’s share of the associate or joint venture’s profit or loss in the period in which the investment is acquired or increases. The partnership determines at the end of each reporting period whether there exist any indications that an investment may be impaired. If any such indication exists, the partnership estimates the recoverable amount of the asset, which is the higher of (i) fair value less costs to sell and (ii) value in use. Value in use is the present value of the future cash flows expected to be derived from such an investment and may result in a measure which is different from fair value less costs to sell. For equity accounted investments, for which quoted market prices exist, the partnership also considers whether a significant or prolonged decline in the fair value of the equity instrument below its carrying value is also objective evidence of impairment. When the partnership transacts with a joint venture or an associate, any gain or loss is eliminated only to the extent of the partnership’s proportionate share and the remaining amounts are recognized in the partnership’s consolidated financial statements. Outstanding balances between the partnership and jointly controlled entities are not eliminated on the balance sheet. |
Joint operations | Joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to assets and obligations for liabilities relating to the arrangement. This usually results from direct interests in the assets and liabilities of an investee rather than through the establishment of a separate legal entity. None of the parties involved have unilateral control of a joint operation. The partnership recognizes its assets, its liabilities and its share of revenues and expenses of the joint operations in accordance with the IFRS applicable to the particular assets, liabilities, revenues and expenses. When the partnership sells or contributes assets to a joint operation in which it is a joint operator, the partnership is considered to be conducting transactions with the other parties to the joint operation, and any gain or loss resulting from the transactions is recognized in the partnership’s consolidated financial statements only to the extent of the other parties’ interests in the joint operation. When the partnership purchases an asset from a joint operation in which it is a joint operator, the partnership does not recognize its share of the gain or loss until those assets are resold to a third party. |
Foreign currency translation | Foreign currency translation and transactions The U.S. Dollar is the functional currency and presentation currency of the partnership. The functional currency of each of the partnership’s subsidiaries, associates, joint ventures and joint operations is determined based on their primary economic environment, the currency in which funds from financing activities are generated and the currency in which receipts from operating activities are usually retained. Subsidiaries, associates or joint ventures having a functional currency other than the U.S. Dollar translate the carrying amounts of their assets and liabilities when reporting to the partnership at the rate of exchange prevailing as of the balance sheet date, and their revenues and expenses at average exchange rates during the quarterly reporting period. Any gains or losses on foreign currency translation are recognized by the partnership in other comprehensive income. On disposition or partial disposition resulting in the loss of control of a foreign operation, the accumulated foreign currency translation relating to that foreign operation is reclassified to fair value gain or loss in net income. On partial disposal of a foreign operation in which control is retained, the proportionate share of the accumulated foreign currency translation relating to that foreign operation is reattributed to the non-controlling interests. |
Foreign currency transactions | The partnership’s foreign currency transactions are translated into the functional currency using exchange rates as of the date of the transactions. At the end of each reporting period, foreign currency denominated monetary assets and liabilities are translated to the functional currency using the exchange rate prevailing as of the balance sheet date with any gain or loss recognized in net income, except for those related to monetary liabilities qualified as hedges of the partnership’s investment in foreign operations or intercompany loans with foreign operations for which settlement is neither planned nor likely to occur in the foreseeable future, which are included in other comprehensive income. Non-monetary assets and liabilities measured at fair value are translated at the exchange rate prevailing as of the date when the fair value was determined. Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. |
Cash and cash equivalents | Cash and cash equivalentsCash and cash equivalents includes cash on hand and all non-restricted highly liquid investments with original maturities of three months or less. |
Investment properties | Investment properties Investment properties consists of commercial properties which are principally held to earn rental income and commercial developments that are being constructed or developed for future use as commercial properties. Investment properties are measured initially at cost, or fair value if acquired in a business combination (see Note 2(p), Business Combinations , for further discussion). The cost of commercial development properties includes direct development costs, realty taxes, borrowing costs directly attributable to the development and administrative costs, e.g., salaries and overhead that are specifically attributable to a development project. The partnership elects the fair value model for all investment properties and measures them at fair value subsequent to initial recognition on the consolidated balance sheet. As a result, it is not necessary to assess the carrying amounts of the investment properties for impairment. Substantially all of the partnership’s investment properties are valued using one of two accepted income approaches, the discounted cash flow approach or the direct capitalization approach. Under the discounted cash flow approach, cash flows for each property are forecast for an assumed holding period, generally, ten years. A capitalization rate is applied to the terminal year net operating income and an appropriate discount rate is applied to those cash flows to determine a value at the reporting date. Under the direct capitalization method, a capitalization rate is applied to estimated stabilized annual net operating income to determine value. In accordance with its policy, the partnership generally measures and records its commercial properties and developments using valuations prepared by management. However, for certain subsidiaries, the partnership relies on quarterly or annual valuations prepared by external valuation professionals. Where an external appraisal is obtained for a property that is valued using a model developed by management, the partnership compares the results of those external appraisals to its internally prepared values and reconciles significant differences when they arise. Discount and terminal capitalization rates are verified by comparing to market data, third party reports, research material and brokers opinions. Where there has been a recent market transaction for a specific property, such as an acquisition or sale of a partial interest, the partnership values the property on that basis. Certain of the partnership’s investment properties are right-of-use assets arising from leases where the partnership is the lessee, which are subsequently measured at fair value (see Note 2(j), Leases , for further discussion). Borrowing costs associated with direct expenditures on properties under development or redevelopment are capitalized. Borrowing costs are also capitalized on those properties acquired specifically for redevelopment in the short-term where activities necessary to prepare them for redevelopment are in progress. The amount of borrowing costs capitalized is determined first by borrowings specific to a property where relevant, and then by applying a weighted average borrowing cost to eligible expenditures after adjusting for borrowings specific to other developments. Where borrowings are associated with specific developments, the amount capitalized is the gross borrowing costs incurred less any incidental investment income. Borrowing costs are capitalized from the commencement of the development until the date of practical completion. The capitalization of borrowing costs is suspended if there are prolonged periods when development activity is interrupted. The partnership considers practical completion to have occurred when the property is capable of operating in the manner intended by management. Generally this occurs upon completion of construction and receipt of all necessary occupancy and other material permits. Where the partnership has pre-leased space as of or prior to the start of the development and the lease requires the partnership to construct tenant improvements which enhance the value of the property, practical completion is considered to occur on completion of such improvements. Initial direct leasing costs incurred by the partnership in negotiating and arranging tenant leases are included in the cost of investment properties. |
Assets held for sale | Assets held for sale Non-current assets and groups of assets and liabilities which comprise disposal groups are presented as assets held for sale where the asset or disposal group is available for immediate sale in its present condition, and the sale is highly probable. For this purpose, a sale is highly probable if management is committed to a plan to achieve the sale; there is an active program to find a buyer; the non-current asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; the sale is anticipated to be completed within one year from the date of classification; and it is unlikely there will be significant changes to the plan or that the plan will be withdrawn. Non-current assets and disposal groups held for sale that are not investment properties are recorded at the lower of carrying amount and fair value less costs to sell on the consolidated balance sheet. Any gain or loss arising from the change in measurement basis as a result of reclassification is recognized in the profit or loss at the time of reclassification. Investment properties that are held for sale are recorded at fair value determined in accordance with IFRS 13, Fair Value Measurement . Where a component of an entity has been disposed of, or is classified as held for sale, and it represents a separate major line of business or geographical area of operations or is a subsidiary acquired exclusively with a view to resale, the related results of operations and gain or loss on reclassification or disposition are presented in discontinued operations. |
Hospitality assets | Hospitality assets The partnership accounts for its investments in hospitality properties as property, plant and equipment under the revaluation model. Hospitality properties are recognized initially at cost if acquired in an asset acquisition, or fair value if acquired in a business combination (see Note 2(p), Business Combinations , for further discussion) and subsequently carried at fair value at the revaluation date less any accumulated impairment and subsequent accumulated depreciation. The partnership evaluates the carrying amount of hospitality properties when events or circumstances indicate there may be an impairment. The partnership depreciates these assets on a straight-line basis over their relevant estimated useful lives. Fair values of hospitality properties are determined using a depreciated replacement cost method based on the age, physical condition and the construction costs of the assets. Fair value estimates for hospitality properties represent the estimated fair value of the property, plant and equipment of the hospitality business only and do not include any associated intangible assets. Revaluations of hospitality properties are performed annually at December 31, the end of the fiscal year. Where the carrying amount of an asset is increased as a result of a revaluation, the increase is recognized in other comprehensive income and accumulated in equity within revaluation surplus, unless the increase reverses a previously recognized revaluation loss recorded through prior period net income, in which case that portion of the increase is recognized in net income. Where the carrying amount of an asset is decreased, the decrease is recognized in other comprehensive income to the extent of any balance existing in revaluation surplus in respect of the asset, with the remainder recognized in net income. Revaluation gains are recognized in other comprehensive income, and are not subsequently recycled into profit or loss. The cumulative revaluation surplus is transferred directly to retained earnings when the asset is derecognized.Certain of the partnership’s hospitality assets are right- of-use assets arising from leases where the partnership is the lessee, which are subsequently measured on a depreciated cost basis since they represent a separate class of property, plant and equipment to the partnership’s owned hospitality assets (see Note 2(j), Leases , for further discussion). |
Inventory | Inventory Develop-for-sale multifamily projects, residential development lots, homes and residential condominium projects are recorded in inventory. Residential development lots are recorded at the lower of cost, including pre-development expenditures and capitalized borrowing costs, and net realizable value, which the partnership determines as the estimated selling price of the inventory in the ordinary course of business in its completed state, less estimated expenses, including holding costs, costs to complete and costs to sell. Certain of the partnership’s inventory are right-of-use assets arising from leases where the partnership is the lessee, which are subsequently measured at cost subject to impairment (see Note 2(j), Leases , for further discussion). |
Fair value measurement | Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the partnership takes into account the characteristics of the asset or liability and how market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Inputs to fair value measurement techniques are disaggregated into three hierarchical levels, which are directly based on the degree to which inputs to fair value measurement techniques are observable by market participants: • Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the asset’s or liability’s anticipated life. • Level 3 – Inputs are unobservable and reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs in determining the estimate. Fair value measurements are adopted by the partnership to calculate the carrying amounts of various assets and liabilities. |
Leases | Leases The partnership determines at the inception of a contract if the arrangement is, or contains, a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease components and non-lease components are separated on a relative stand-alone selling price basis for the partnership’s leases as lessor. For the partnership’s leases as lessee, the partnership applies the practical expedient which is available by asset class not to allocate contract consideration between lease and non-lease components. The partnership determines whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a period of time in exchange for consideration. The partnership recognizes a right-of-use (“ROU”) asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for leases with a lease term of 12 months or less (“short-term leases”) and leases of low value assets (“low-value leases”). For these leases, the partnership recognizes the lease payments as an expense on a straight-line basis over the lease term. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease if that rate can be readily determined. If the rate implicit in the lease cannot be readily determined, the partnership uses the incremental borrowing rate. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of similar value to the ROU asset in a similar economic environment. This rate is expected to be similar to the interest rate implicit in the lease. Where a lease contains a parental guarantee, the incremental borrowing rate may be determined with reference to the parent rather than the lessee. The partnership uses a single discount rate to account for portfolios of leases with similar characteristics. Lease payments included in the measurement of the lease liability is comprised of i) fixed lease payments, less any lease incentives; ii) variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; iii) the amount expected to be payable by the lessee under residual value guarantees; iv) the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and v) payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. Lease liabilities are presented in Accounts payable and other liabilities (current) and Other non-current liabilities (non-current) on the consolidated balance sheets. Lease liabilities are subsequently measured under the effective interest method that is increased by the interest expense on the lease liabilities recognized on the consolidated statements of income and reduced by lease payments made that are recognized in the consolidated statements of cash flows. Lease payments not included in the measurement of lease liabilities continue to be recognized in the direct commercial property expense, direct hospitality expense or general and administrative expense lines on the consolidated statements of income. A ROU asset comprises the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. ROU assets classified as investment properties are subsequently measured at fair value. ROU assets classified as property, plant and equipment are subsequently measured on a depreciated cost basis over the lease term. If such a lease transfers ownership of the underlying asset or the cost of the ROU asset reflects that the partnership expects to exercise a purchase option, the related ROU asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. ROU assets classified as inventory are subsequently carried at cost subject to impairment. ROU assets are presented in the respective lines based on their classification on the consolidated balance sheets. Whenever the partnership incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37 - Provision, Contingent Liabilities, and Contingent Assets. The costs are included in the related ROU asset. The partnership remeasures lease liabilities and makes a corresponding adjustment to the related ROU assets when i) the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate; ii) the lease payments have changed due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used); or iii) a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The partnership early adopted COVID-19 Related Rent Concessions, Amendment to IFRS 16 - Leases (“2020 IFRS 16 Amendment”) as of April 1, 2020. The 2020 IFRS 16 Amendment provides the partnership as lessee only with an optional exemption from assessing whether rent concessions related to COVID-19 meeting certain conditions are lease modifications. Such qualifying rent concessions are accounted for as if they are not lease modifications, generally resulting in the effects of rent abatements being recognized as variable lease payments. The partnership has applied the practical expedient to all such qualifying rent concessions. The adoption of the 2020 IFRS 16 Amendment did not have a material impact on the results of the partnership. The partnership adopted COVID-19 Related Rent Concessions beyond June 30 2021, Amendment to IFRS 16 – Leases (“2021 IFRS 16 Amendment”) as of January 1, 2021 in advance of its April 1, 2021 mandatory effective date. The 2021 IFRS 16 Amendment provides the partnership as lessee only with an extension to the scope of the exemption from assessing whether rent concessions related to COVID-19 meeting certain conditions are lease modifications. Such qualifying rent concessions are accounted for as if they are not lease modifications, generally resulting in the effects of rent abatements being recognized as variable lease payments. The partnership has applied the practical expedient to all such qualifying rent concessions. The adoption of the 2021 IFRS 16 Amendment did not have a material impact on the results of the partnership. |
Intangible assets | Intangible assets Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at fair value at the acquisition date. The partnership’s intangible assets are comprised primarily of trademarks and licensing agreements. Subsequent to initial recognition, intangible assets with a finite life are measured at cost less accumulated amortization and impairment losses. Amortization is calculated on a straight-line basis over the estimated useful life of the intangible asset and is recognized in net income for the respective reporting period. Intangible assets with an indefinite life are measured at cost as adjusted for subsequent impairment. Impairment tests for intangible assets with an indefinite life are performed annually. Impairment losses previously taken may be subsequently reversed in net income of future reporting periods. |
Goodwill | GoodwillGoodwill represents the excess of the acquisition price paid for a business combination over the fair value of the net identifiable tangible and intangible assets and liabilities acquired. Upon initial recognition, goodwill is allocated to the cash-generating unit to which it relates. The partnership identifies a cash-generating unit as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The partnership evaluates the carrying amount of goodwill annually as of December 31 or more often when events or circumstances indicate there may be an impairment. The partnership’s goodwill impairment test is performed at the cash-generating unit level. If assets within a cash-generating unit or the cash-generating unit are impaired, impairments are taken for those assets or the cash-generating unit before any goodwill impairment test is performed. In assessing whether goodwill is impaired, the partnership assesses if the carrying value of a cash-generating unit, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs to sell and the present value of future cash flows expected from the cash-generating unit. Impairment losses recognized first reduce the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the cash-generating unit. Any goodwill impairment is charged to net income in the respective reporting period. Impairment losses on goodwill are not subsequently reversed. |
Financial instruments and hedge accounting, Classification and measurement | Financial instruments and hedge accounting (i) Classification and measurement Financial assets and financial liabilities are recognized in the partnership’s balance sheet when the partnership becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. All recognized financial assets are measured subsequently in their entirety at either amortized cost or fair value, depending on the classification of the financial assets. Debt instruments are subsequently measured at amortized cost where the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt instruments are measured subsequently at fair value through other comprehensive income (“FVTOCI”) where the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. By default, all other financial assets are measured subsequently at fair value through profit or loss (“FVTPL”). Despite the foregoing, the partnership may make an irrevocable election/designation at initial recognition of a financial asset to present subsequent changes in fair value of an equity investment in other comprehensive income or to designate a debt investment that meets the amortized cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. Debt and equity instruments issued by the partnership are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments issued by the partnership that meet the definition of a financial liability are presented within capital securities on the partnership’s consolidated balance sheets. All financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL. Financial liabilities are measured at FVTPL when they are (i) contingent consideration of an acquirer in a business combination, (ii) held‑for‑trading, or (iii) designated as at FVTPL. A financial liability is classified as held for trading if it has been acquired principally for the purpose of repurchasing it in the near term, or on initial recognition it is part of a portfolio of identified financial instruments that is managed together and has a recent actual pattern of short‑term profit‑taking or it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument. A financial liability other than a financial liability held for trading or contingent consideration of an acquirer in a business combination may be designated as at FVTPL in limited circumstances specified in IFRS 9. Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit or loss to the extent that they are not part of a designated hedging relationship. The following table presents the types of financial instruments held by the partnership within each financial instrument classification: Classification and measurement basis Financial assets Loans and notes receivable Amortized cost Other non-current assets Securities designated as fair value through profit and loss (“FVTPL”) FVTPL Derivative assets FVTPL Securities designated as fair value through other comprehensive income (“FVTOCI”) FVTOCI Restricted cash Amortized cost Accounts receivable and other Derivative assets FVTPL Other receivables Amortized cost Cash and cash equivalents Amortized cost Financial liabilities Debt obligations Amortized cost Capital securities Amortized cost Capital securities - fund subsidiaries FVTPL Other non-current liabilities Loan payable FVTPL Other non-current financial liabilities Amortized cost Derivative liabilities FVTPL Accounts payable and other liabilities Amortized cost The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life of the instrument to the gross carrying amount of the debt instrument on initial recognition. Amortized cost is the amount at which the financial instrument is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance (in the case of financial assets). Financial instruments carried at fair value give rise to fair value gains or losses in each reporting period. Fair values of those financial instruments are determined by reference to quoted bid or ask prices or prices within the bid ask spread, as appropriate, and when unavailable, to the closing price of the most recent transaction of that instrument. Fair values of certain financial instruments also incorporate significant use of unobservable inputs which reflect the partnership’s market assumptions. Fair value gains and losses on FVTOCI financial assets are recognized in other comprehensive income. Fair value gains and losses on financial instruments designated as FVTPL are recognized in fair value gains, net. |
Financial instruments and hedge accounting, Impairment of financial instruments | Impairment of financial instruments The partnership recognizes a loss allowance for expected credit losses (“ECL”) on debt instruments that are measured at amortized cost or at FVTOCI and other receivables. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. For debt instruments, the partnership recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has not increased significantly since initial recognition, the loss allowance for that financial instrument is measured at an amount equal to 12‑month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12‑month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. The partnership always recognizes lifetime ECL for other receivables. Any related loss allowances are recorded through profit or loss. Refer to Note 12, Accounts Receivable And Other for detail on the current year loss allowance. |
Financial instruments and hedge accounting, Derivatives and hedging | Derivatives and hedging The partnership enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, options, interest rate swaps and interest rate caps. Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in net income immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The partnership designates certain derivatives as hedging instruments in respect of foreign currency risk and interest rate risk in cash flow hedges, fair value hedges, or hedges of net investments in foreign operations. The partnership also applies hedge accounting to certain non-derivative financial instruments designated as hedges of net investments in foreign subsidiaries. Hedge accounting is discontinued prospectively when the hedge relationship is terminated or no longer qualifies as a hedge, or when the hedging item is sold or terminated. In a cash flow hedge, the effective portion of the change in the fair value of the hedging derivative is recognized in other comprehensive income while the ineffective portion is recognized in fair value gains, net. Hedging gains and losses recognized in accumulated other comprehensive income are reclassified to net income in the periods when the hedged item affects net income, or recognized as part of the transaction price when the hedged transaction occurs. The partnership discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria. This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. Any gain or loss recognized in other comprehensive income and accumulated in the cash flow hedge reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in cash flow hedge reserve is reclassified immediately to net income. In a fair value hedge relationship, the fair value change on a qualifying hedging instrument is recognized in profit or loss except when the hedging instrument hedges an equity instrument designated at FVTOCI in which case it is recognized in other comprehensive income. The carrying amount of a hedged item not already measured at fair value is adjusted for the fair value change attributable to the hedged risk with a corresponding entry in profit or loss. Where hedging gains or losses are recognized in profit or loss, they are recognized in the same line as the hedged item. The partnership discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria. This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized to profit or loss from that date. In a net investment hedging relationship, the effective portion of the fair value of the hedging instruments is recognized in other comprehensive income and the ineffective portion is recognized in net income. The amounts recorded in accumulated other comprehensive income are reclassified to net income, together with the related cumulative translation gain or loss, when there is a disposition or partial disposition that results in the loss of control of foreign operations or the derivatives are not part of any other hedge relationships. In assessing whether a hedge relationship impacted by Interest Rate Benchmark Reform (“IBOR Reform”) is expected to be highly effective on a forward-looking basis, the partnership assumes the interest rate benchmark on which the cash flows of the derivative which hedges borrowings is not altered by IBOR Reform. These reliefs cease to apply to a hedged item or hedging instrument as applicable at the earlier of (i) when the uncertainty arising from IBOR Reform is no longer present with respect to the timing and amount of the interest rate benchmark based future cash flows, and (ii) when the hedging relationship is discontinued. The partnership adopted Interest Rate Benchmark Reform-Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16, issued by the IASB in August 2020, (“Phase 2 IBOR Amendments”) as of January 1, 2021, its mandatory effective date. The Phase 2 IBOR Amendments provide additional guidance to address issues that will arise during the transition of benchmark interest rates. The Phase 2 IBOR Amendments primarily relate to the modification of financial instruments where the basis for determining the contractual cash flows changes as a result of IBOR Reform, allowing for prospective application of the applicable benchmark interest rate, and to the application of hedge accounting, providing an exception such that changes in the formal designation and documentation of hedge accounting relationships that are needed to reflect the changes required by IBOR reform do not result in the discontinuation of hedge accounting or the designation of new hedging relationships. It is currently expected that Secured Overnight Financing Rate (“SOFR”) will replace US$ LIBOR effective June 30, 2023 for those tenors used by the partnership, but effective December 31, 2021 for certain tenors not used by the partnership, and that Canadian Overnight Rep Rate Average (“CORRA”) will replace CDOR effective June 30, 2024. The partnership is progressing through its transition plan to address the impact and effect required changes as a result of amendments to the contractual terms of US$ LIBOR and CDOR referenced floating-rate borrowings, interest rate swaps, interest rate caps, and to update hedge designations. The adoption is not expected to have a significant impact on the partnership’s financial reporting. Sterling Overnight Index Average (“SONIA”) replaced £ LIBOR effective December 31, 2021, and Euro Short-term Rate was published as an alternative to EURIBOR during 2021, though EURIBOR remains available for Euro lending. The partnership has addressed the impact and effected the changes required as a result of amendments to the contractual terms of £ LIBOR referenced floating-rate borrowings, interest rate swaps, interest rate caps, and to update hedge designations. The adoption did not have a significant impact on the partnership’s financial reporting. Note 31, Financial Instruments |
Income taxes | Income taxes The partnership is a flow-through entity for tax purposes and as such is not subject to Bermudian taxation. However, income tax expenses are recognized for taxes payable by holding entities and their direct or indirect corporate subsidiaries. Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities by the holding entities in respect of the partnership or directly by the partnership’s taxable subsidiaries, net of recoveries, based on the tax rates and laws enacted or substantively enacted at the balance sheet date. Deferred income tax liabilities are provided for using the liability method on temporary differences between the tax basis used in the computation of taxable income and carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses will be utilized. The carrying amounts of deferred income tax assets are reviewed at each balance sheet date and reduced to the extent it is no longer probable that the income tax asset will be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. |
Provisions | ProvisionsA provision is a liability of uncertain timing or amount. Provisions are recognized when the partnership has a present obligation (legal or constructive) as a result of a past event, it is probable that the partnership will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Provisions are re-measured at each balance sheet date using the current discount rate. The increase in the provision due to passage of time is recognized as interest expense. |
Business combinations | Business combinations The partnership accounts for business combinations in which control is acquired under the acquisition method. When an acquisition is made, the partnership considers the inputs, processes and outputs of the acquiree in assessing whether it meets the definition of a business. When the acquired set of activities and assets lack a substantive process, the acquisition fails to meet the definition of a business and is accounted for as asset acquisition. The partnership uses the optional concentration test on a transaction by transaction basis, and where used, if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar assets, accounts for the acquisition as an asset acquisition. Assets acquired through asset acquisitions are initially measured at cost, which includes the transaction costs incurred for the acquisitions. For business combinations, consideration is the aggregate of the fair values, at the date of exchange, of assets transferred, liabilities incurred by the partnership to the former owners, and equity instruments issued in exchange for control of the acquiree. Acquisitions-related costs are recognized in net income as incurred. At the acquisition date, the partnership recognizes the identifiable assets acquired and liabilities assumed at their acquisition-date fair values, except for non-current assets classified as held-for-sale, which are recognized at fair value less costs to sell, and deferred tax assets or liabilities, which are measured in accordance with IAS 12, Income Taxes. The partnership also evaluates whether there are intangible assets acquired that have not previously been recognized by the acquiree and recognizes them as identifiable intangible assets. For business combinations, non-controlling shareholders’ interests in the acquiree are initially measured at either fair value or their proportionate share of acquiree’s identifiable assets if the non-controlling interest represents a present ownership interest that entitles its holder to a proportionate share of the acquiree’s net assets. Other components of non-controlling interests in acquirees are recognized at fair value. Goodwill for a business combination is measured as the excess of the sum of the consideration transferred, the amount of any non‑controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the acquisition date values of the net assets acquired. If, after reassessment, the value of the net assets acquired exceeds the sum of the consideration transferred, the amount of any non‑controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in net income as a bargain purchase gain. Where a business combination is achieved in stages, previously held interests in the acquired entity are re-measured to fair value at the acquisition date, which is the date control is obtained, and the resulting gain or loss (if any), is recognized in net income. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to net income. Changes in the partnership’s ownership interest of an investee that do not result in a change of control are accounted for as equity transactions and are recorded as a component of equity. Acquisition costs are recorded as an expense in the reporting period as incurred. Measurement period adjustments for business combinations are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the business combination occurs, the partnership reports provisional amounts for items for where the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. |
Revenue recognition | Revenue recognition The partnership recognizes revenue from the following major sources: (i) Commercial property revenue Revenue from investment properties is presented within commercial property revenue on the consolidated statements of income. The partnership has retained substantially all of the risks and benefits of ownership of its investment properties and therefore accounts for leases with its tenants as operating leases. Revenue recognition under a lease commences when the tenant has a right to use the leased asset. Generally, this occurs on the lease commencement date or, where the partnership is required to make additions to the property in the form of tenant improvements to enhance the value of the property, upon substantial completion of those improvements. The total amount of contractual rents expected from operating leases is recognized on a straight-line basis over the term of the lease, including contractual base rent and subsequent rent increases as a result of rent escalation clauses. A rent receivable, included within the carrying amount of investment properties, is used to record the difference between the rental revenue recorded and the contractual amount received. Rental receivables and related revenue also includes percentage participating rents and recoveries of operating expenses. However, recoveries of operating expenses related to property taxes and insurance are deemed as other rental revenue. Percentage participating rents are recognized when tenants’ specified sales targets have been met. Operating expense recoveries classified as rental income or non-rental income are recognized in the period that recoverable costs are chargeable to tenants. Where a tenant is legally responsible for operating expenses and pays them directly in accordance with the terms of the lease, the partnership does not recognize the expenses or any related recovery revenue. Under IFRS 16, where the partnership is the intermediate lessor, it accounts for the head lease and the sublease as two separate contracts, classifying the sublease as a finance or operating lease with reference to the right-of-use asset arising from the head lease. (ii) Hospitality revenue Revenue from hospitality properties is presented within hospitality revenue on the consolidated statements of income. Room, food and beverage and other revenues are recognized as services are provided. The partnership recognizes room revenue net of taxes and levies. Advance deposits are deferred and included as a liability until services are provided to the customer. The partnership recognizes net wins from casino gaming activities (the difference between gaming wins and losses) as gaming revenue. The partnership recognizes liabilities for funds deposited by patrons before gaming play occurs and for chips in the patrons’ possession, both of which are included in accounts payable and other liabilities. Revenue and expenses from tour operations include the sale of travel and leisure packages and are recognized on the first day the travel package is in use. (iii) Performance and management fee revenue |
Unit-based compensation | Unit-based compensationPrior to the Privatization, the partnership and its subsidiaries issued unit-based awards to certain employees and non-employee directors of certain subsidiaries. The cost of cash-settled unit-based transactions, comprised of unit options, deferred share units and restricted share units, is measured as the fair value at the grant date and expensed on a proportionate basis over the vesting period. The corresponding accrued liability is measured at each reporting date at fair value with changes in fair value recognized in net income. The cost of equity-settled unit-based transactions, comprised of unit options and restricted units, is determined as the fair value of the award on the grant date. The cost of equity-settled unit-based transactions is recognized as each tranche vests and is recorded within equity. |
Redeemable/Exchangeable Partnership Units | Redeemable/Exchangeable Partnership UnitsThe Redeemable/Exchangeable Partnership Units may, at the request of the holder, be redeemed in whole or in part, for cash in an amount equal to the market value of one of the partnership’s LP Units multiplied by the number of units to be redeemed (subject to certain adjustments). This right is subject to the partnership’s right, at its sole discretion, to elect to acquire any unit presented for redemption in exchange for one of the partnership’s LP Units (subject to certain customary adjustments). If the partnership elects not to exchange the Redeemable/Exchangeable Partnership Units for LP Units, Redeemable/Exchangeable Partnership Units are required to be redeemed for cash. The Redeemable/Exchangeable Partnership Units provide the holder the direct economic benefits and exposures to the underlying performance of the Operating Partnership and accordingly to the variability of the distributions of the Operating Partnership, whereas the partnership’s unitholders have indirect access to the economic benefits and exposures of the Operating Partnership through direct ownership interest in the partnership which owned a direct interest in the managing general partnership interest. Accordingly, the Redeemable/Exchangeable Partnership Units have been presented within non-controlling interests on the consolidated balance sheets. The Redeemable/Exchangeable Partnership Units do not entail a contractual obligation on the part of the partnership to deliver cash and can be settled by the partnership, at its sole discretion, by issuing a fixed number of its own equity instruments. |
BPYU Units | BPYU Units Prior to the Privatization, BPYU Units were, at the request of the holder, able to be redeemed in whole or in part, for cash in an amount equal to the market value of one of the partnership’s LP Units multiplied by the number of units to be redeemed (subject to certain adjustments). This right was subject to the partnership’s right, at its sole discretion, to satisfy the redemption request with its LP Units, rather than cash, on a one-for-one basis. The BPYU Units provided the holder with direct economic benefits and exposures to Brookfield Properties Retail Holding LLC (“BPYU”) and accordingly to the variability of the distributions of BPYU. Accordingly, the BPYU Units were presented within non-controlling interests on the consolidated balance sheets. The BPYU Units did not entail a contractual obligation on the part of the partnership to deliver cash and could be settled by the partnership, at its sole discretion, by issuing a fixed number of its own equity instruments. As a result of the Privatization detailed in Note 3, Privatization of the Partnership , the terms of the BPYU Units were subsequently amended to, among other things, remove the entitlement to be exchanged for LP Units. |
Earnings per limited partnership unit | Earnings per limited partnership unitSubsequent to the Privatization, there are no longer publicly traded LP Units. As such, earnings per limited partnership unit is no longer presented. |
Critical judgments and estimates in applying accounting policies | Critical judgments and estimates in applying accounting policies The preparation of the partnership’s consolidated financial statements requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Critical judgments and estimates made by management and utilized in the normal course of preparing the partnership’s consolidated financial statements are outlined below. (i) Control In determining whether the partnership has power over an investee, the partnership makes judgments in identifying relevant activities that would significantly affect the returns of an investee, in assessing the partnership’s voting rights or other contractual rights that would give it power to unilaterally make decisions, and in assessing rights held by other stakeholders which might give them decision-making authority. In assessing if the partnership has exposure or rights to variable returns from its involvement with the investee, the partnership makes judgments concerning the variability of the returns from an investee based on the substance of the arrangement, the absolute and relative size of those returns. In determining if the partnership has the ability to use its power to affect its returns in an investee, the partnership makes judgments in assessing whether it is acting as a principal or an agent in decision-making and whether another entity with decision-making rights is acting as an agent for the partnership. Where other stakeholders have decision making authority, the partnership makes judgments as to whether its decision-making rights provide it with control, joint control or significant influence over the investee. In addition to the above, the partnership makes judgments in respect of joint arrangements that are carried on through a separate vehicle in determining whether the partnership’s interest represents an interest in the assets and liabilities of the arrangement (a joint operation) or in its net assets (a joint venture). (ii) Attribution of net income Certain of the partnership’s subsidiaries are subject to profit sharing arrangements between the partnership and the non-controlling equity holders. In determining whether the attribution of profits is subject to uncertainty, the partnership makes the judgment in considering a variety of factors, including but not limited to uncertainties arising from future events, timing of anticipated acquisition, disposition and financing activities, as well as past events of similar nature. (iii) Common control transactions The purchase and sale of businesses or subsidiaries between entities under common control are not specifically addressed in IFRS and accordingly, management uses judgment when determining a policy to account for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. The partnership’s policy is to record assets and liabilities recognized as a result of transfers of businesses or subsidiaries between entities under common control at carrying value. Differences between the carrying amount of the consideration given or received and the carrying amount of the assets and liabilities transferred are recorded directly in equity. (iv) Business combinations Judgment is applied in determining whether an acquisition is a business combination or an asset acquisition by considering the nature of the assets acquired and the processes applied to those assets, or if the integrated set of assets and activities is capable of being conducted and managed for the purpose of providing a return to investors or other owners. Judgment is also applied in identifying acquired assets and assumed liabilities and determining their fair values. (v) Investment properties In applying relevant accounting policies, judgment is made in determining whether certain costs are additions to the carrying amount of the property, in identifying the point at which practical completion of the development property occurs, and in identifying borrowing costs directly attributable to the carrying amount of the development property. In certain instances, on a case by case basis, the partnership applies judgment in determining whether a significant amount of development activities undertaken would trigger the reclassification of an operating property to a development property. The key valuation assumptions in determining the fair value of investment properties include discount rates and terminal capitalization rates for properties valued using a discounted cash flow model and capitalization rates for properties valued using a direct capitalization approach. Management also uses assumptions and estimates in determining expected future cash flows in discounted cash flow models and stabilized net operating income used in values determined using the direct capitalization approach. Properties under active development are recorded at fair value using a discounted cash flow model which includes estimates in respect of the timing and cost to complete the development. (vi) Assets held for sale The partnership’s accounting policies relating to assets held for sale are described in Note 2(f), Assets Held for Sale . In applying this policy, judgment is applied in determining whether sale of certain assets is highly probable, which is a necessary condition for being presented within assets held for sale. (vii) Revaluation of hospitality assets When the partnership determines the carrying amounts under the revaluation method, critical assumptions and estimates include estimates of replacement costs and estimates of remaining economic life. (viii) Income taxes In applying relevant accounting policies, judgments are made in determining the probability of whether deductions, tax credits and tax losses can be utilized. In addition, the consolidated financial statements include estimates and assumptions for determining the future tax rates applicable to subsidiaries and identifying the temporary differences that relate to each subsidiary. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply during the period when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the consolidated balance sheet dates. The partnership measures deferred income taxes associated with its investment properties based on its specific intention with respect to each asset at the end of the reporting period. Where the partnership has a specific intention to sell a property in the foreseeable future, deferred taxes on the building portion of the investment property are measured based on the tax consequences following from the disposition of the property. Otherwise, deferred taxes are measured on the basis that the carrying value of the investment property will be recovered substantially through use. Judgment is required in determining the manner in which the carrying amount of each investment property will be recovered. The partnership also makes judgments with respect to the taxation of gains inherent in its investments in foreign subsidiaries and joint ventures. While the partnership believes that the recovery of its original investment in these foreign subsidiaries and joint ventures will not result in additional taxes, certain unremitted gains inherent in those entities could be subject to foreign taxes depending on the manner of realization. (ix) Leases In applying its accounting policy for recognition of lease revenue, the partnership makes judgments with respect to whether tenant improvements provided in connection with a lease enhance the value of the leased property, which in turn is used to determine whether these amounts are treated as additions to operating property and the point in time to recognize revenue under the lease. In addition, where a lease allows a tenant to elect to take all or a portion of any unused tenant improvement allowance as a rent abatement, the partnership must exercise judgment in determining the extent to which the allowance represents an inducement that is amortized as a reduction of lease revenue over the term of the lease. The partnership also makes judgments in determining whether certain leases, in particular those tenant leases with long contractual terms where the lessee is the sole tenant in a property and long-term ground leases where the partnership is lessor, are operating or finance leases. The partnership has determined most of its leases are operating leases, with several finance leases that are not material. Where operating costs are paid directly by tenants, the partnership exercises judgment in determining whether those costs are expenses of the partnership or the tenant which impacts the extent to which operating costs recovery revenue is recognized. The partnership has applied critical judgments in respect of contracts where it is the lessee including identifying whether a contract (or part of a contract) includes a lease, determining whether it is reasonably certain that a lease extension or termination option will be exercised in determining the lease term, determining whether variable payments are in-substance fixed, establishing whether there are multiple leases in an arrangement, and determining the fair value method of ROU assets classified as investment properties. The partnership uses critical estimates in accounting for leases where it is a tenant, including the estimation of lease term and determination of the appropriate rate to discount the lease payments. (x) Financial instruments The critical judgments inherent in the relevant accounting policies relate to the classification of financial assets or financial liabilities, designation of financial instruments as FVTOCI or FVTPL, the assessment of the effectiveness of hedging relationships, the determination of whether the partnership has significant influence over investees with which it has contractual relationships, and the identification of embedded derivatives subject to fair value measurement in certain hybrid instruments. Estimates and assumptions used in determining the fair value of financial instruments are: equity and commodity prices; future interest rates; the credit risk of the partnership and its counterparties; amount and timing of estimated future cash flows; discount rates and volatility utilized in option valuations. The partnership holds other financial instruments that represent equity interests in investment property entities that are measured at fair value as these financial instruments are designated as FVTPL or FVTOCI. Estimation of the fair value of these instruments is also subject to the estimates and assumptions associated with investment properties. The fair value of interest rate caps is determined based on generally accepted pricing models using quoted market interest rates for the appropriate term. Interest rate swaps are valued at the present value of estimated future cash flows and discounted based on applicable yield curves derived from market interest rates. (xi) Indicators of impairment Judgment is applied when determining whether indicators of impairment exist when assessing the carrying values of the partnership’s assets for potential impairment. Consideration is given to a combination of factors, including but not limited to forecasts of revenues and expenses, values derived from publicly traded prices, and projections of market trends and economic environments. Judgment is also applied when quantifying the amount of impairment loss where indicators of impairment exist. (xii) Other critical judgments Other critical judgments utilized in the preparation of the partnership’s consolidated financial statements are: assets’ recoverable amounts; assets’ net realizable values; depreciation and amortization rates and assets’ useful lives; determination of assets held for sale and discontinued operations; impairment of goodwill and intangible assets; the determination of functional currency; the likelihood and timing of anticipated transactions for hedge accounting; and the selection of accounting policies, among others. (xiii) Changes in accounting policies As a result of the finalization in October 2022 of the IFRS interpretations committee’s tentative agenda decision regarding lessor forgiveness of lease payments, the partnership has changed its accounting policy. Previously the partnership’s accounting policy was to account for the sole forgiveness of lease payments negotiated as part of a lease contract as a lease modification under IFRS 16 – Leases, resulting in the straight-lining of the impact over the remaining lease term. The partnership’s revised accounting policy is to account for the forgiveness of lease payments accounted for in accounts receivable as a derecognition event under IFRS 9, resulting in an expense to net operating income. Prior periods were not adjusted to reflect this change as the change in accounting policy had no impact on net income. As a result of the finalization of the IFRS interpretations committee’s tentative agenda decision regarding demand deposits with restrictions on use arising from a contract with a third party, the partnership has aligned its accounting policy. The partnership’s accounting policy is to account for demand deposits subject to contractual restrictions on use as cash and cash equivalents and not restricted cash on the consolidated balance sheet. The updated accounting policy was applied retroactively and did not have a material impact to prior periods. (xiv) Future accounting policies The following are accounting policies issued that the partnership expects to adopt in the future: Amendments to IAS 1 – Classification of Liabilities as Current or Non-current The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the consolidated balance sheets and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items. The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether the partnership will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants with which an entity is required to comply on or before the end of the reporting period, and introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments are applied retrospectively for annual periods beginning on or after January 1, 2024, with early application permitted. The partnership is in the process of determining the impact of the amendments on its consolidated financial statements. Amendments to IAS 1 – Disclosure of Accounting Policies The amendments to IAS 1 require that the partnership discloses its material accounting policies instead of its significant accounting policies. The amendments are applied for annual periods beginning on or after January 1, 2023. The impact is limited to disclosure. There are no other accounting policies issued as of December 31, 2022 that the partnership expects to adopt in the future and which the partnership expects will have a material impact. |
Operating segment | Operating segmentsIFRS 8, Operating Segments, requires operating segments to be determined based on internal reports that are regularly reviewed by the chief operating decision maker (“CODM”) for the purpose of allocating resources to the segment and to assessing its performance. The partnership’s operating segments are organized into four reportable segments: i) Core Office, ii) Core Retail, iii) LP Investments and iv) Corporate. These segments are independently and regularly reviewed and managed by the Chief Executive Officer, who is considered the CODM. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of detailed information about financial instruments | The following table presents the types of financial instruments held by the partnership within each financial instrument classification: Classification and measurement basis Financial assets Loans and notes receivable Amortized cost Other non-current assets Securities designated as fair value through profit and loss (“FVTPL”) FVTPL Derivative assets FVTPL Securities designated as fair value through other comprehensive income (“FVTOCI”) FVTOCI Restricted cash Amortized cost Accounts receivable and other Derivative assets FVTPL Other receivables Amortized cost Cash and cash equivalents Amortized cost Financial liabilities Debt obligations Amortized cost Capital securities Amortized cost Capital securities - fund subsidiaries FVTPL Other non-current liabilities Loan payable FVTPL Other non-current financial liabilities Amortized cost Derivative liabilities FVTPL Accounts payable and other liabilities Amortized cost |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment property [abstract] | |
Schedule of roll forward of investment property balances | The following table presents a roll forward of investment property balances for the years ended December 31, 2022 and 2021: Year ended Dec. 31, 2022 Year ended Dec. 31, 2021 (US$ Millions) Commercial Commercial Total Commercial Commercial Total Balance, beginning of year $ 62,313 $ 2,300 $ 64,613 $ 70,294 $ 2,316 $ 72,610 Changes resulting from: Property acquisitions 760 — 760 491 80 571 Capital expenditures 870 428 1,298 796 758 1,554 Property dispositions (1) (307) (1) (308) (1,299) (351) (1,650) Fair value (losses) gains, net (1,122) 64 (1,058) 1,791 171 1,962 Foreign currency translation (1,528) (149) (1,677) (558) (37) (595) Transfers between commercial properties and commercial developments 387 (387) — 635 (635) — Impact of deconsolidation due to loss of control (2) (575) — (575) — — — Manager Reorganization (3) 6,321 758 7,079 — — — Reclassifications of assets held for sale and other changes (1,052) (495) (1,547) (9,837) (2) (9,839) Balance, end of year (4) $ 66,067 $ 2,518 $ 68,585 $ 62,313 $ 2,300 $ 64,613 (1) Property dispositions represent the carrying value on date of sale. (2) The partnership deconsolidated its investment in a subsidiary as a result of the dilution of its interest. Prior to the transaction, the partnership's interest was consolidated and is now reflected as a financial asset. (3) See Note 32, Related Parties for further information on the Manager Reorganization. (4) Includes right-of-use commercial properties and commercial developments of $1,045 million and $127 million, respectively, as of December 31, 2022 (2021 - $557 million and $24 million, respectively). Current lease liabilities of $122 million (2021 - $118 million) has been included in accounts payable and other liabilities and non-current lease liabilities of $810 million (2021 - $558 million) have been included in other non-current liabilities. |
Schedule of key valuation metrics for investment properties | The key valuation metrics for the partnership’s consolidated commercial properties are set forth in the following tables below on a weighted-average basis: Dec. 31, 2022 Dec. 31, 2021 Consolidated properties Primary valuation Discount Terminal Investment Discount Terminal Investment Core Office Discounted cash flow 6.8 % 5.4 % 11 6.5 % 5.3 % 11 Core Retail Discounted cash flow 7.2 % 5.3 % 10 7.0 % 5.3 % 10 LP Investment (1) Discounted cash flow 9.1 % 6.3 % 8 9.4 % 7.0 % 8 (1) The valuation method used to value multifamily and manufactured housing properties is the direct capitalization method. At December 31, 2022, the overall implied capitalization rate used for properties using the direct capitalization method was 4.3% (December 31, 2021 - 4.3% ). The following table presents the valuation techniques and inputs of the partnership’s Level 2 assets and liabilities: Type of asset/liability Valuation technique Foreign currency forward contracts Discounted cash flow model - forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at a credit adjusted rate Interest rate contracts Discounted cash flow model - forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate The table below presents the valuation techniques and inputs of Level 3 assets: Type of asset/liability Valuation techniques Significant unobservable input(s) Relationship of unobservable input(s) to fair value Securities - FVTPL/FVTOCI Net asset valuation (a) Forward exchange rates (from observable forward exchange rates at the end of the reporting period) (a) Increases (decreases) in the forward exchange rate would increase (decrease) fair value |
Schedule of investment properties measured at fair value | The following table presents the partnership’s investment properties measured at fair value in the consolidated financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above in Note 2(i), Summary of Significant Accounting Policies, Fair value measurement. Dec. 31, 2022 Dec. 31, 2021 Level 3 Level 3 (US$ Millions) Level 1 Level 2 Commercial properties Commercial developments Level 1 Level 2 Commercial properties Commercial developments Core Office $ — $ — $ 22,129 $ 1,355 $ — $ — $ 24,644 $ 1,023 Core Retail — — 19,438 106 — — 18,991 — LP Investments — — 24,500 1,057 — — 18,678 1,277 Total $ — $ — $ 66,067 $ 2,518 $ — $ — $ 62,313 $ 2,300 (1) Represents excess land held for capital appreciation rather than an operating hotel asset. The following table outlines financial assets and liabilities measured at fair value in the financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Securities designated as FVTPL 10 305 2,208 2,523 17 218 1,965 2,200 Securities designated as FVTOCI 36 — 69 105 13 — 95 108 Derivative assets — 294 — 294 — 144 — 144 Total financial assets $ 46 $ 599 $ 2,277 $ 2,922 $ 30 $ 362 $ 2,060 $ 2,452 Financial liabilities Capital securities - fund subsidiaries $ — $ — $ 577 $ 577 $ — $ — $ 859 $ 859 Derivative liabilities — 538 — 538 — 498 — 498 Total financial liabilities $ — $ 538 $ 577 $ 1,115 $ — $ 498 $ 859 $ 1,357 The following table presents the change in the balance of financial assets and financial liabilities classified as Level 3 as of December 31, 2022 and 2021: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Financial Financial Financial Financial Balance, beginning of year $ 2,060 $ 859 $ 1,682 $ 863 Additions 353 — 553 — Dispositions (222) — (88) — Fair value (losses) gains, net and OCI 86 (292) 366 2 Other — 10 (453) (6) Balance, end of year $ 2,277 $ 577 $ 2,060 $ 859 |
Schedule of sensitivity analysis | The following table presents a sensitivity analysis to the impact of a 25 basis point (“bps”) increase of the discount rate and terminal capitalization or overall implied capitalization rate (“ICR”) on fair values of the partnership’s commercial properties for the year ended December 31, 2022, for properties valued using the discounted cash flow or direct capitalization method, respectively: Dec. 31, 2022 (US$ Millions) Impact of +25bps DR Impact of +25bps TCR Impact of +25bps DR and +25bps TCR or +25bps ICR Core Office $ 487 $ 732 $ 1,199 Core Retail 384 643 1,012 LP Investments (1) 757 605 1,357 Total $ 1,628 $ 1,980 $ 3,568 (1) The valuation method used to value multifamily, student housing, and manufactured housing properties is the direct capitalization method. The impact of the sensitivity analysis on the discount rate includes properties valued using the DCF method as well as properties valued using an overall implied capitalization rate under the direct capitalization method. |
INVESTMENTS IN SUBSIDIARIES (Ta
INVESTMENTS IN SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
Schedule of interests in subsidiaries | The following table presents the partnership’s material subsidiaries as of December 31, 2022 and 2021: Jurisdiction of formation Economic interest Voting interest Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Subsidiary of the partnership (1) Bermuda 36 % 36 % 100 % 100 % Holding entities of the Operating Partnership Various 100 % 100 % 100 % 100 % Real estate subsidiaries of the holding entities BPO Canada 100 % 100 % 100 % 100 % Australia Office (2) Canada 100 % 100 % 100 % 100 % U.S. Retail (3) United States 100 % 100 % 100 % 100 % U.K. Short Stay (4) United Kingdom 27 % 27 % — % — % Korea Mixed-use (4) South Korea 22 % 22 % — % — % U.K. Student Housing (4) Bermuda 25 % 25 % — % — % U.S. Hospitality United States 23 % — % — % — % U.S. Manufactured Housing (4) United States 24 % 26 % — % — % (1) BPY holds all managing general partner units of the Operating Partnership and therefore has the power to direct the relevant activities and affairs of the Operating Partnership. The managing general partner units represent 36% and 36% of the total number of the Operating Partnership’s units at December 31, 2022 and 2021, respectively. (2) This entity holds certain Australian properties not held through BPO. (3) The partnership controls BPYU as it held 100% of the voting stock of BPYU through its 100% ownership of the BPYU Class B and Class C shares. (4) The partnership holds its economic interest in these assets primarily through limited partnership interests in Brookfield-sponsored real estate funds. By their nature, limited partnership interests do not have any voting rights. The partnership has entered into voting agreements to provide the partnership with the ability to contractually direct the relevant activities of the investees. The table below shows details of non-wholly owned subsidiaries of the partnership that have material non-controlling interests: Jurisdiction of formation Proportion of economic Non-controlling interests: Interests of others in operating subsidiaries and properties (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Corporate Holding Entities (2) Bermuda/Canada — % — % $ 5,033 $ 3,871 BPO (1) Canada — % — % 2,835 5,020 U.K Student Housing (4) Bermuda 75 % 75 % 1,594 1,190 U.S. Retail (3) United States — % — % 1,280 1,274 U.S. Manufactured Housing (4) United States 76 % 74 % 1,191 932 Korea Mixed-use (4) South Korea 78 % 78 % 936 936 U.K. Short Stay (4) United Kingdom 73 % 73 % 756 799 U.S. Hospitality (4)(5) United States 77 % — % 724 — Other LP Investments Various 33% - 99% 33% -82% 3,735 5,684 Total $ 18,084 $ 19,706 (1) Includes non-controlling interests in BPO subsidiaries which vary from 1% - 100%. (2) Includes non-controlling interests in various corporate entities of the partnership (3) Includes non-controlling interests in BPYU subsidiaries. (4) Includes non-controlling interests representing interests held by other investors in Brookfield-sponsored real estate funds and holding entities through which the partnership participates in such funds. Also includes non-controlling interests in underlying operating entities owned by these funds. (5) Includes non-controlling interests acquired as part of the Manager Arrangement during the fourth quarter of 2022. Dec. 31, 2022 Equity attributable to (US$ Millions) Current Non-current Current Non-current Non- Owners of the Corporate Holding Entities $ 6,385 $ 579 $ 6,087 $ 7,877 $ 5,457 $ (12,457) BPO 4,304 33,911 10,656 14,390 3,129 10,040 U.K. Student Housing 2,255 — 114 — 1,594 547 U.S. Retail 561 29,681 2,293 11,559 1,280 15,110 U.S. Manufactured Housing 61 4,279 2,593 178 1,191 378 Korea Mixed-use 167 3,745 64 2,642 936 270 U.K. Short Stay 197 4,419 485 3,068 756 307 U.S. Hospitality 159 3,530 373 2,378 724 214 Total $ 14,089 $ 80,144 $ 22,665 $ 42,092 $ 15,067 $ 14,409 Dec. 31, 2021 Equity attributable to (US$ Millions) Current Non-current Current Non-current Non- Owners of the Corporate Holding Entities $ 3,991 $ 3,120 $ 6,242 $ 13,647 $ 4,249 $ (17,027) BPO 7,168 40,341 9,664 16,648 5,232 15,965 U.K. Student Housing 62 3,562 1,378 651 1,190 405 U.S. Retail 1,051 29,534 3,023 11,333 1,274 14,955 U.S. Manufactured Housing 86 3,843 11 2,688 932 298 Korea Mixed-use 3,972 — 83 2,683 936 270 U.K. Short Stay 338 4,701 350 3,586 799 304 Total $ 16,668 $ 85,101 $ 20,751 $ 51,236 $ 14,612 $ 15,170 Year ended Dec. 31, 2022 Attributable to non-controlling interests Attributable to owners of the partnership (US$ Millions) Revenue Net Total Distributions Net Total Corporate Holding Entities $ 406 $ 36 $ 59 $ 113 $ (20) $ 156 BPO 2,105 124 106 24 (759) (802) U.K. Student Housing 191 492 482 65 148 134 U.S. Retail 1,557 (2) 2 4 165 203 U.S. Manufactured Housing 287 254 254 13 81 81 Korea Mixed-use 228 28 — — 8 (28) U.K. Short Stay 794 44 114 151 16 114 Total $ 5,568 $ 976 $ 1,017 $ 370 $ (361) $ (142) Year ended Dec. 31, 2021 Attributable to non-controlling interests Attributable to owners of the partnership (US$ Millions) Revenue Net Total Distributions Net Total Corporate Holding Entities $ 444 $ (7) $ (11) $ 389 $ (122) $ (48) BPO 2,151 264 257 79 494 482 U.K. Student Housing 160 204 191 — 69 51 U.S. Retail 1,511 (22) (22) 10 (126) (101) U.S. Manufactured Housing 266 572 572 675 183 183 Korea Mixed-use 211 364 304 — 105 28 U.K. Short Stay 546 (52) 26 — (20) 108 Total $ 5,289 $ 1,323 $ 1,317 $ 1,153 $ 583 $ 703 Year ended Dec. 31, 2020 Attributable to non-controlling interests Attributable to owners of the partnership (US$ Millions) Revenue Net Total Distributions Net Total Corporate Holding Entities $ 455 $ 1 $ 1 $ — $ (50) $ 385 BPO 2,079 142 152 69 (37) 7 U.K. Student Housing 129 63 99 8 21 33 U.S. Retail 1,612 (211) (214) 16 (1,974) (1,999) U.S. Manufactured Housing 252 281 281 11 90 90 Korea Mixed-use 268 (187) (187) — (177) (177) U.K. Short Stay 189 128 174 5 37 50 Total $ 4,984 $ 217 $ 306 $ 109 $ (2,090) $ (1,611) |
EQUITY ACCOUNTED INVESTMENTS (T
EQUITY ACCOUNTED INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
Disclosure of joint ventures | Details of the partnership’s investments in joint ventures and associates, which have been accounted for in accordance with the equity method of accounting, are as follows: Proportion of ownership Carrying value (US$ Millions) Principal activity Principal place Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Joint ventures London Mixed-use District Property holding company United Kingdom 50 % 50 % $ 3,192 $ 3,529 Midtown New York Mixed-use Complex Property holding company United States 56 % 56 % 2,518 2,396 U.S. Retail JV Pool A Property holding company United States 50 % 50 % 1,848 1,810 Honolulu Shopping Center Property holding company United States 50 % 50 % 1,507 1,939 U.S. Retail JV Pool B Property holding company United States 51 % 51 % 1,132 1,140 U.S. Retail JV Pool C Property holding company United States 50 % 50 % 737 679 Bryant Park Office Tower Property holding company United States 50 % 50 % 719 702 Las Vegas Mall A Property holding company United States 50 % 50 % 702 856 U.S. Retail JV Pool D Property holding company United States 48 % 48 % 646 612 Las Vegas Mall B Property holding company United States 50 % 50 % 625 455 Other (1) Various Various 15% - 68% 15% - 68% 5,778 6,361 19,404 20,479 Associates Other Various Various 16% - 50% 13% - 50% 539 328 539 328 Total $ 19,943 $ 20,807 (1) Other joint ventures consists of approximately 50 joint ventures, each of which has a carrying value below $500 million. |
Disclosure of associates | Details of the partnership’s investments in joint ventures and associates, which have been accounted for in accordance with the equity method of accounting, are as follows: Proportion of ownership Carrying value (US$ Millions) Principal activity Principal place Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Joint ventures London Mixed-use District Property holding company United Kingdom 50 % 50 % $ 3,192 $ 3,529 Midtown New York Mixed-use Complex Property holding company United States 56 % 56 % 2,518 2,396 U.S. Retail JV Pool A Property holding company United States 50 % 50 % 1,848 1,810 Honolulu Shopping Center Property holding company United States 50 % 50 % 1,507 1,939 U.S. Retail JV Pool B Property holding company United States 51 % 51 % 1,132 1,140 U.S. Retail JV Pool C Property holding company United States 50 % 50 % 737 679 Bryant Park Office Tower Property holding company United States 50 % 50 % 719 702 Las Vegas Mall A Property holding company United States 50 % 50 % 702 856 U.S. Retail JV Pool D Property holding company United States 48 % 48 % 646 612 Las Vegas Mall B Property holding company United States 50 % 50 % 625 455 Other (1) Various Various 15% - 68% 15% - 68% 5,778 6,361 19,404 20,479 Associates Other Various Various 16% - 50% 13% - 50% 539 328 539 328 Total $ 19,943 $ 20,807 (1) Other joint ventures consists of approximately 50 joint ventures, each of which has a carrying value below $500 million. |
Schedule of change in equity investments | The following table presents the change in the balance of the partnership’s equity accounted investments as of December 31, 2022 and 2021: (US$ Millions) Years ended Dec. 31, 2022 2021 Equity accounted investments, beginning of year $ 20,807 $ 19,719 Additions 100 698 Disposals and return of capital distributions (967) (459) Share of net (losses) earnings from equity accounted investments 826 1,020 Distributions received (263) (172) Foreign currency translation (578) (145) Reclassification from (to) assets held for sale (276) (210) Impact of change in accounting basis (1) (706) — Manager Reorganization (2) 1,061 — Other comprehensive income and other (61) 356 Equity accounted investments, end of year $ 19,943 $ 20,807 (1) The current year includes the impact of change in accounting basis of assets that were accounted for under the equity method which are now accounted for as financial assets. (2) See Note 32, Related Parties for further information on the Manager Reorganization. |
Equity method investments, valuation techniques and assumptions | The key valuation metrics for the partnership’s commercial properties held within the partnership’s equity accounted investments are set forth in the table below on a weighted-average basis: Dec. 31, 2022 Dec. 31, 2021 Equity accounted Primary valuation Discount Terminal Investment Discount Terminal Investment Core Office Discounted cash flow 6.4 % 4.9 % 11 6.0 % 4.7 % 11 Core Retail Discounted cash flow 6.6 % 4.9 % 10 6.3 % 4.9 % 10 LP Investments (1) Discounted cash flow 7.8 % 5.5 % 10 6.9 % 5.6 % 10 (1) The valuation method used to value multifamily investments is the direct capitalization method. The rates presented as the discount rate relate to the overall implied capitalization rate. The terminal capitalization rate and investment horizon are not applicable. The following tables present the gross assets and liabilities of the partnership’s equity accounted investments as of December 31, 2022 and 2021: Dec. 31, 2022 (US$ Millions) Current Non-current Current Non-current Net Joint ventures London Mixed-use District $ 879 $ 11,709 $ 972 $ 5,232 $ 6,384 Midtown New York Mixed-use Complex 198 8,132 276 3,558 4,496 U.S. Retail JV Pool A 158 5,777 253 1,985 3,697 Honolulu Shopping Center 100 5,352 40 2,397 3,015 U.S. Retail JV Pool B 210 5,587 1,348 2,230 2,219 U.S. Retail JV Pool C 43 2,219 45 663 1,554 Bryant Park Office Tower 67 2,636 23 1,240 1,440 Las Vegas Mall A 22 2,231 16 833 1,404 U.S. Retail JV Pool D 28 1,833 508 — 1,353 Las Vegas Mall B 22 2,220 15 979 1,248 Other 1,912 25,951 3,283 10,603 13,977 3,639 73,647 6,779 29,720 40,787 Associates Other 183 2,705 109 1,057 1,722 183 2,705 109 1,057 1,722 Total $ 3,822 $ 76,352 $ 6,888 $ 30,777 $ 42,509 Dec. 31, 2021 (US$ Millions) Current Non-current Current Non-current Net Joint ventures London Mixed-use District $ 1,276 $ 13,213 $ 1,242 $ 6,187 $ 7,060 Midtown New York Mixed-use Complex 229 8,434 153 4,231 4,279 U.S. Retail JV Pool A 249 5,763 122 2,269 3,621 Honolulu Shopping Center 131 5,695 52 1,895 3,879 U.S. Retail JV Pool B 353 5,508 231 3,396 2,234 U.S. Retail JV Pool C 52 2,100 44 669 1,439 Bryant Park Office Tower 73 2,593 20 1,238 1,408 Las Vegas Mall A 23 2,538 19 829 1,713 U.S. Retail JV Pool D 40 1,763 49 471 1,283 Las Vegas Mall B 56 1,867 40 974 909 Other 1,827 27,422 1,861 11,866 15,522 4,309 76,896 3,833 34,025 43,347 Associates Other 180 1,253 81 796 556 180 1,253 81 796 556 Total $ 4,489 $ 78,149 $ 3,914 $ 34,821 $ 43,903 Summarized financial information in respect of the partnership’s equity accounted investments for the years ended December 31, 2022, 2021 and 2020 is set out below: Year ended December 31, 2022 (US$ Millions) Revenue Expenses Fair value Income from EAI (1) Net Other Partnership’s Distributions Joint ventures London Mixed-use District $ 582 $ 477 $ (61) $ 89 $ 133 $ 23 $ 66 $ — Midtown New York Mixed-use Complex 282 227 515 91 661 120 370 34 U.S. Retail JV Pool A 343 107 (96) — 140 1 70 — Honolulu Shopping Center 261 195 (405) — (339) 30 (170) — U.S. Retail JV Pool B 467 348 (148) 5 (24) 6 (12) — U.S. Retail JV Pool C 152 81 77 — 148 — 74 11 Bryant Park Office Tower 157 88 9 — 78 — 39 20 Las Vegas Mall A 106 56 (321) — (271) — (135) 8 U.S. Retail JV Pool D 88 46 47 — 89 — 43 4 Las Vegas Mall B 108 69 344 — 383 — 192 1 Other 2,138 1,683 120 42 618 289 285 185 4,684 3,377 81 227 1,616 469 822 263 Associates Other 230 244 8 — (6) 69 4 — 230 244 8 — (6) 69 4 — Total $ 4,914 $ 3,621 $ 89 $ 227 $ 1,610 $ 538 $ 826 $ 263 (1) Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates. Year ended December 31, 2021 (US$ Millions) Revenue Expenses Fair value Income from EAI (1) Net Other Partnership’s Distributions Joint ventures London Mixed-use District $ 607 $ 453 $ 60 $ 42 $ 256 $ 2 $ 128 $ 2 Midtown New York Mixed-use Complex 350 225 101 — 226 72 127 48 U.S. Retail JV Pool A 329 220 92 — 201 — 100 — Honolulu Shopping Center 241 154 121 — 208 — 104 3 U.S. Retail JV Pool B 458 347 (46) 4 69 — 35 — U.S. Retail JV Pool C 138 88 (13) — 37 — 19 2 Bryant Park Office Tower 151 86 47 — 112 — 56 27 Las Vegas Mall A 98 54 63 — 107 — 53 8 U.S. Retail JV Pool D 80 37 121 — 164 — 78 1 Las Vegas Mall B 93 75 61 — 79 — 40 — Other 1,825 1,576 424 89 762 301 330 81 4,370 3,315 1,031 135 2,221 375 1,070 172 Associates Other 103 174 (8) 7 (72) 949 (50) — 103 174 (8) 7 (72) 949 (50) — Total $ 4,473 $ 3,489 $ 1,023 $ 142 $ 2,149 $ 1,324 $ 1,020 $ 172 (1) Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates. Year ended December 31, 2020 (US$ Millions) Revenue Expenses Fair value Income from EAI (1) Net Other Partnership’s Distributions Joint ventures London Mixed-use District $ 619 $ 377 $ (713) $ 19 $ (452) $ (4) $ (226) $ 4 Honolulu Shopping Center 269 158 (279) — (168) — (84) 9 Midtown New York Mixed-use Complex 259 179 379 — 459 (75) 257 221 U.S. Retail JV Pool A 353 230 (543) — (420) — (210) — U.S. Retail JV Pool B 483 356 (601) 4 (470) — (240) — Las Vegas Mall A 103 56 (46) — 1 — — 8 U.S. Retail JV Pool C 145 80 (222) — (157) — (78) 6 Bryant Park Office Tower 108 95 121 — 134 — 67 123 U.S. Retail JV Pool D 71 36 (203) 17 (151) — (72) 3 Las Vegas Mall B 92 84 (18) — (10) — (5) — Other 1,766 1,299 (480) 44 31 (28) (68) 244 4,268 2,950 (2,605) 84 (1,203) (107) (659) 618 Associates Other 92 186 (39) (2) (135) (939) (90) — 92 186 (39) (2) (135) (939) (90) — Total $ 4,360 $ 3,136 $ (2,644) $ 82 $ (1,338) $ (1,046) $ (749) $ 618 (1) Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates. |
INVESTMENTS IN JOINT OPERATIO_2
INVESTMENTS IN JOINT OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
Schedule of interests in joint operations | The partnership’s interests in the following properties are subject to joint control and, accordingly, the partnership has recorded its share of the assets, liabilities, revenues, and expenses of the properties in these consolidated financial statements: Place of incorporation and Ownership (1) Name of property Principal activity Dec. 31, 2022 Dec. 31, 2021 Brookfield Place - Retail & Parking Property Toronto 56 % 56 % Brookfield Place III Development property Toronto 54 % 54 % Exchange Tower Property Toronto 50 % 50 % First Canadian Place (1) Property Toronto 25 % 25 % 2 Queen Street East Property Toronto 25 % 25 % Bankers Hall Property Calgary 50 % 50 % Bankers Court Property Calgary 50 % 50 % Bankers West Parkade Development property Calgary 50 % 50 % Suncor Energy Centre Property Calgary 50 % 50 % Fifth Avenue Place Property Calgary 50 % 50 % 52 Goulburn Street (2) Property Sydney — % 24 % 235 St Georges Terrace (2) Property Perth — % 24 % 108 St Georges Terrace (3) Property Perth — % 50 % Southern Cross West Property Melbourne 50 % 50 % Shopping Patio Higienópolis Property São Paulo 25 % 25 % Shopping Patio Higienópolis - Expansion Property São Paulo 32 % 32 % Shopping Patio Higienópolis - Co-Invest Property São Paulo 5 % 5 % Shopping Patio Higienópolis Expansion - Co-Invest Property São Paulo 6 % 6 % G2-Infospace Gurgaon Property NCR-Delhi Region 72 % 72 % (1) First Canadian Place in Toronto is subject to a ground lease with respect to 50% of the land on which the property is situated. At the expiry of the ground lease, the other land owner will have the option to acquire, for a nominal amount, an undivided 50% beneficial interest in the property. (2) The partnership deconsolidated its investment as a result of the dilution of its interest. Prior to the transaction, the partnership's interest was consolidated and is now reflected as a financial asset. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | The following table presents the useful lives of each hospitality asset by class: Hospitality assets by class Useful life Building and building improvements 2 to 50 + Land improvements 15 Furniture, fixtures and equipment 1 to 20 The following table presents the change to the components of the partnership’s hospitality assets from the beginning of the year: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Cost: Balance, beginning of year $ 5,723 $ 5,575 Additions 203 1,885 Disposals (47) (323) Foreign currency translation (363) (83) Manager Reorganization (1) 3,298 — Impact of deconsolidation due to loss of control and other (2) 236 (1,331) 9,050 5,723 Accumulated fair value changes: Balance, beginning of year 763 488 Revaluation gains (losses) gains, net 727 930 Impact of deconsolidation due to loss of control and other (2) 29 (593) Disposals (1) (65) Provision for impairment (93) 7 Foreign currency translation (49) (4) 1,376 763 Accumulated depreciation: Balance, beginning of year (863) (828) Depreciation (279) (294) Disposals 44 84 Foreign currency translation 76 13 Impact of deconsolidation due to loss of control and other (2) (3) 162 (1,025) (863) Total property, plant and equipment (2) $ 9,401 $ 5,623 (1) See Note 32, Related Parties for further information on the Manager Reorganization. (2) The current year reflects the reclassification of a mixed-use asset out of assets held for sale, and the reclassification of a student housing asset to held for sale. The prior year includes the reclassification of a hospitality portfolio to held for sale.. (3) Includes right-of-use assets of $393 million (December 31, 2021 - $204 million). |
Disclosure of detailed information about business combinations | The following table summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed, in addition to the consideration paid in connection with this business combination: (US$ Millions) Hospitality Investors Trust Cash and cash equivalents $ 50 Accounts receivable and other 74 Equity accounted investments 7 Property, plant and equipment 1,727 Total assets 1,858 Less: Debt obligations (1,319) Accounts payable and other (75) Net assets acquired $ 464 Consideration (1) $ 464 (1) Consideration includes $8 million of contingent consideration, with the balance related to the fair value of the partnership’s forfeited preferred equity interest. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets [Abstract] | |
Disclosure of detailed information about intangible assets | Intangible assets by class Useful life (in years) Trademarks Indefinite Other 4 to 88 The following table presents the components of the partnership’s intangible assets as of December 31, 2022 and December 31, 2021: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Cost $ 1,017 $ 1,012 Accumulated amortization (51) (48) Balance, end of year $ 966 $ 964 The following table presents a roll forward of the partnership’s intangible assets December 31, 2022 and December 31, 2021: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Balance, beginning of year $ 964 $ 982 Acquisitions 5 6 Amortization (8) (14) Manager Reorganization (1) 108 — Foreign currency translation (103) (10) Balance, end of year $ 966 $ 964 (1) See Note 32, Related Parties for further information on the Manager Reorganization. |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other non-current assets | The components of other non-current assets are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Securities - FVTPL $ 2,523 $ 2,200 Derivative assets 170 111 Securities - FVTOCI 69 108 Restricted cash 584 356 Inventory 1,267 652 Accounts receivable 464 2 Other 140 149 Total other non-current assets $ 5,217 $ 3,578 |
ACCOUNTS RECEIVABLE AND OTHER (
ACCOUNTS RECEIVABLE AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts receivable and other | The components of accounts receivable and other are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Derivative assets $ 124 $ 33 Accounts receivable - net of expected credit loss of $63 million (December 31, 2021 - $112 million) 787 852 Restricted cash and deposits 342 331 Prepaid expenses 405 367 Inventory 176 574 Other current assets 342 119 Total accounts receivable and other $ 2,176 $ 2,276 |
HELD FOR SALE (Tables)
HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-current Assets Held For Sale And Discontinued Operations [Abstract] | |
Disclosure of assets and liabilities classified as held for sale | The following is a summary of the assets and liabilities that were classified as held for sale as of December 31, 2022 and December 31, 2021: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Investment properties $ 300 $ 8,037 Property, plant and equipment — 1,749 Equity accounted investments 276 — Accounts receivables and other assets — 724 Assets held for sale 576 10,510 Debt obligations — 3,006 Accounts payable and other liabilities — 76 Liabilities associated with assets held for sale $ — $ 3,082 |
Disclosure of reconciliation of changes in assets held for sale | The following table presents the change to the components of the assets held for sale from the beginning of the year: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Balance, beginning of year $ 10,510 $ 588 Reclassification to/(from) assets held for sale, net 1,208 12,561 Disposals (11,110) (2,610) Fair value adjustments 261 — Foreign currency translation (290) (57) Other (3) 28 Assets held for sale $ 576 $ 10,510 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | The partnership’s debt obligations include the following: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Weighted- Debt balance Weighted- Debt balance Unsecured facilities: Brookfield Property Partners’ credit facilities 6.19 % $ 3,090 2.00 % $ 2,257 Brookfield Property Partners’ corporate bonds 4.12 % 1,847 4.11 % 1,982 Brookfield Properties Retail Holding LLC term debt 6.90 % 1,514 2.61 % 1,869 Brookfield Properties Retail Holding LLC senior secured notes 5.20 % 1,695 5.20 % 1,695 Brookfield Properties Retail Holding LLC corporate facility 7.17 % 320 3.10 % 70 Brookfield Properties Retail Holding LLC junior subordinated notes 5.86 % 192 1.58 % 206 Subsidiary borrowings 7.10 % 458 3.29 % 537 Secured debt obligations: Funds subscription credit facilities (1) 6.19 % 4,177 2.44 % 371 Fixed rate 4.47 % 16,155 4.31 % 26,248 Variable rate 6.99 % 29,416 3.29 % 20,341 Deferred financing costs (302) (249) Total debt obligations $ 58,562 $ 55,327 Current $ 19,704 $ 13,742 Non-current 38,858 38,579 Debt associated with assets held for sale — 3,006 Total debt obligations $ 58,562 $ 55,327 (1) Funds subscription credit facilities are secured by co-investors’ capital commitments. Debt obligations include foreign currency denominated debt in the functional currencies of the borrowing subsidiaries. Debt obligations by local currency are as follows: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) U.S. Local U.S. Local U.S. dollars $ 44,049 $ 44,049 $ 37,559 $ 37,559 British pounds 5,079 £ 4,203 7,030 £ 5,196 Canadian dollars 4,027 C$ 5,455 4,419 C$ 5,585 South Korean Won 1,808 ₩ 2,280,000 1,918 ₩ 2,280,000 Australian dollars 1,300 A$ 1,908 2,014 A$ 2,773 Indian Rupee 1,777 Rs 146,860 1,801 Rs 134,378 Brazilian reais 554 R$ 2,888 476 R$ 2,655 Chinese Yuan 174 C¥ 1,204 69 C¥ 437 Euros 96 € 90 290 € 255 Deferred financing costs (302) (249) Total debt obligations $ 58,562 $ 55,327 The components of changes in debt obligations, including changes related to cash flows from financing activities, are summarized in the table below: Non-cash changes in debt obligations (US$ Millions) Dec. 31, 2021 Debt obligation issuance, net of repayments Debt from asset acquisitions Assumed by purchaser Amortization of deferred financing costs and (premium) discount Foreign currency translation Manager Reorganization (1) Impact of deconsolidation due to loss of control Dec. 31, 2022 Debt obligations $ 55,327 (1,656) 350 (3,836) 94 (1,489) 10,274 (502) $ 58,562 (1) See Note 32, Related Parties for further information on the Manager Reorganization. |
CAPITAL SECURITIES (Tables)
CAPITAL SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | The partnership had the following capital securities outstanding as of December 31, 2022 and 2021: (US$ Millions, except where noted) Shares Cumulative Dec. 31, 2022 Dec. 31, 2021 Operating Partnership Class A Preferred Equity Units: Series 2 24,000,000 6.50 % $ 575 $ 565 Series 3 24,000,000 6.75 % 556 546 New LP Preferred Units (1) 19,273,654 6.25 % 474 474 BPO Class B Preferred Shares: Series 1 (2) 3,600,000 70% of bank prime — — Series 2 (2) 3,000,000 70% of bank prime — — Brookfield Property Split Corp. (“BOP Split”) Senior Preferred Shares: Series 1 829,334 5.25 % 21 21 Series 2 555,146 5.75 % 10 11 Series 3 668,228 5.00 % 12 15 Series 4 541,892 5.20 % 10 12 Rouse Series A Preferred Shares 5,600,000 5.00 % 142 142 Brookfield India Real Estate Trust 155,003,656 See footnote (3) 456 440 Capital Securities – Fund Subsidiaries 577 859 Total capital securities $ 2,833 $ 3,085 Current $ 600 $ 61 Non-current 2,233 3,024 Total capital securities $ 2,833 $ 3,085 (1) New LP Preferred Units shares outstanding is presented net of intracompany shares held by Holding LP. (2) Class B, Series 1 and 2 capital securities - corporate are owned by Brookfield Corporation. BPO has an offsetting loan receivable against these securities earning interest at 95% of bank prime. (3) The dividend rate pertaining to India REIT is equal to a minimum of 90% of net distributable cash flows. The following table presents changes to the GP Units and LP Units from the beginning of the year: GP Units LP Units (Thousands of units), Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Outstanding, beginning of year 139 139 139 298,987 435,980 439,802 Privatization — — — (146,278) — Exchange LP Units exchanged — — — — 128 169 BPYU Units exchanged — 8,922 11,580 Distribution reinvestment program — — — — 123 998 Issued under unit-based compensation plan — — — — 112 — LP Units issued — — — — — 59,497 Repurchases of LP Units — — — — — (76,066) Outstanding, end of year 139 139 139 298,987 298,987 435,980 The following table presents changes to the Exchange LP Units from the beginning of the year: Exchange LP Units (Thousands of units) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2020 Outstanding, beginning of year — 2,714 2,883 Exchange LP Units exchanged (1) — (128) (169) Privatization — (2,586) — Outstanding, end of year — — 2,714 (1) Exchange LP Units issued for the acquisition of incremental BPO common shares that have been exchanged are held by an indirect subsidiary of the partnership. Refer to the Consolidated Statements of Changes in Equity for the impact of such exchanges on the carrying value of Exchange LP Units. |
Summary of reconciliation of cash flows from financing activities from capital securities | Reconciliation of cash flows from financing activities from capital securities is shown in the table below: Non-cash changes on capital securities (US$ Millions) Dec. 31, 2021 Capital securities issued Capital securities redeemed Equity conversion of capital securities Fair value changes Other Dec. 31, 2022 Capital securities $ 3,085 $ 57 $ (3) $ — $ (321) $ 15 $ 2,833 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Disclosure of deferred taxes | The components of net deferred tax liability are presented as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Deferred income tax assets: Non-capital losses (Canada) $ 102 $ 95 Capital losses (Canada) 32 34 Net operating losses (United States) 570 352 Non-capital losses (foreign) 142 118 Tax credit carryforwards 61 77 Capital losses (United States) 758 203 Other 26 31 1,691 910 Deferred income tax (liabilities): Properties (4,755) (4,160) (4,755) (4,160) Net deferred tax (liability) $ (3,064) $ (3,250) The changes in deferred tax balances are presented as follows: Recognized in (US$ Millions) Dec. 31, 2021 Income Equity Acquisitions and Dispositions OCI Other Balance Sheet Dec. 31, 2022 Deferred tax assets $ 910 $ 810 $ — $ — $ (29) $ — $ 1,691 Deferred tax (liabilities) (4,160) (928) — 143 190 — (4,755) Net deferred tax (liability) $ (3,250) $ (118) $ — $ 143 $ 161 $ — $ (3,064) Recognized in (US$ Millions) Dec. 31, 2020 Income Equity Acquisitions and Dispositions OCI Other Balance Sheet Dec. 31, 2021 Deferred tax assets $ 772 $ 164 $ 7 $ — $ (5) $ (28) $ 910 Deferred tax (liabilities) (3,630) (519) — 85 (96) — (4,160) Net deferred tax (liability) $ (2,858) $ (355) $ 7 $ 85 $ (101) $ (28) $ (3,250) |
Disclosure of deferred income taxes and deductible temporary differences | The gross deductible temporary differences, unused tax losses, and unused tax credits for which no deferred tax asset is recognized are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Unused tax losses - gross Net operating losses (United States) $ 24 $ 34 Capital losses (United States) — 275 Net operating losses (foreign) 341 513 Other unrecognized tax attributes 37 — Unrecognized deductible temporary differences, unused tax losses, and unused tax credits $ 402 $ 822 |
Schedule of components of income tax expense benefit | The major components of income tax expense include the following: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Current income tax expense $ 163 $ 134 $ 58 Deferred income tax expense (benefit) 118 356 162 Income tax expense $ 281 $ 490 $ 220 |
Schedule of income tax rates | Years ended Dec. 31, 2022 2021 2020 Statutory income tax rate 26 % 26 % 26 % Increase (decrease) in rate resulting from: International operations subject to different tax rates (7) % (7) % (35) % Non-controlling interests in income of flow-through entities (2) % (10) % 8 % Change in tax rates applicable to temporary differences in other jurisdictions 4 % 2 % (8) % Other 1 % 1 % (3) % Effective income tax rate 22 % 12 % (12) % |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Non-Current Liabilities | The components of other non-current liabilities are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Accounts payable and accrued liabilities $ 824 $ 499 Lease liabilities (1) 1,049 690 Derivative liability 371 277 Provisions 7 16 Deferred revenue 21 16 Loans and notes payable 171 1 Total other non-current liabilities $ 2,443 $ 1,499 (1) For the year ended December 31, 2022, interest expense relating to total lease liabilities (see Note 18, Accounts Payable And Other Liabilities for the current portion) was $58 million (2021 - $59 million). |
ACCOUNTS PAYABLE AND OTHER LI_2
ACCOUNTS PAYABLE AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Accounts Payable and Other Liabilities | The components of accounts payable and other liabilities are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Accounts payable and accrued liabilities $ 2,852 $ 2,021 Loans and notes payable 226 899 Derivative liabilities 167 221 Deferred revenue 436 445 Lease liabilities (1) 163 160 Other liabilities 33 16 Total accounts payable and other liabilities $ 3,877 $ 3,762 (1) See Note 17, Other Non-Current Liabilities for further information on the interest expense related to these liabilities. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [abstract] | |
Disclosure of classes of share capital | The partnership had the following capital securities outstanding as of December 31, 2022 and 2021: (US$ Millions, except where noted) Shares Cumulative Dec. 31, 2022 Dec. 31, 2021 Operating Partnership Class A Preferred Equity Units: Series 2 24,000,000 6.50 % $ 575 $ 565 Series 3 24,000,000 6.75 % 556 546 New LP Preferred Units (1) 19,273,654 6.25 % 474 474 BPO Class B Preferred Shares: Series 1 (2) 3,600,000 70% of bank prime — — Series 2 (2) 3,000,000 70% of bank prime — — Brookfield Property Split Corp. (“BOP Split”) Senior Preferred Shares: Series 1 829,334 5.25 % 21 21 Series 2 555,146 5.75 % 10 11 Series 3 668,228 5.00 % 12 15 Series 4 541,892 5.20 % 10 12 Rouse Series A Preferred Shares 5,600,000 5.00 % 142 142 Brookfield India Real Estate Trust 155,003,656 See footnote (3) 456 440 Capital Securities – Fund Subsidiaries 577 859 Total capital securities $ 2,833 $ 3,085 Current $ 600 $ 61 Non-current 2,233 3,024 Total capital securities $ 2,833 $ 3,085 (1) New LP Preferred Units shares outstanding is presented net of intracompany shares held by Holding LP. (2) Class B, Series 1 and 2 capital securities - corporate are owned by Brookfield Corporation. BPO has an offsetting loan receivable against these securities earning interest at 95% of bank prime. (3) The dividend rate pertaining to India REIT is equal to a minimum of 90% of net distributable cash flows. The following table presents changes to the GP Units and LP Units from the beginning of the year: GP Units LP Units (Thousands of units), Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Outstanding, beginning of year 139 139 139 298,987 435,980 439,802 Privatization — — — (146,278) — Exchange LP Units exchanged — — — — 128 169 BPYU Units exchanged — 8,922 11,580 Distribution reinvestment program — — — — 123 998 Issued under unit-based compensation plan — — — — 112 — LP Units issued — — — — — 59,497 Repurchases of LP Units — — — — — (76,066) Outstanding, end of year 139 139 139 298,987 298,987 435,980 The following table presents changes to the Exchange LP Units from the beginning of the year: Exchange LP Units (Thousands of units) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2020 Outstanding, beginning of year — 2,714 2,883 Exchange LP Units exchanged (1) — (128) (169) Privatization — (2,586) — Outstanding, end of year — — 2,714 (1) Exchange LP Units issued for the acquisition of incremental BPO common shares that have been exchanged are held by an indirect subsidiary of the partnership. Refer to the Consolidated Statements of Changes in Equity for the impact of such exchanges on the carrying value of Exchange LP Units. |
Schedule of distributions made to partners | Distributions made to each class of partnership units, including units of subsidiaries that are exchangeable into LP Units, are as follows: (US$ Millions, except per unit information) Years ended Dec. 31, 2022 2021 2020 Limited partners $ 419 $ 358 $ 583 Holders of: Redeemable/exchangeable partnership units 743 499 581 Special LP Units 5 5 6 Exchange LP Units — 1 4 FV LTIP of the Operating Partnership 2 2 2 BPYU Units — 13 68 Total distributions $ 1,169 $ 878 $ 1,244 Per unit (1) $ 1.40 $ 1.05 $ 1.33 (1) Per unit outstanding on the record date for each. |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-Controlling Interest 1 [Abstract] | |
Disclosure of non-controlling interests | Non-controlling interests consists of the following: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Redeemable/Exchangeable Partnership Units and Special LP Units (1) $ 14,688 $ 15,736 FV LTIP units of the Operating Partnership (1) 45 55 Interest of others in operating subsidiaries and properties: Preferred shares held by Brookfield Corporation (2) 2,490 1,015 Preferred equity of subsidiaries 2,772 2,750 Non-controlling interests in subsidiaries and properties 12,822 15,941 Total interests of others in operating subsidiaries and properties 18,084 19,706 Total non-controlling interests $ 32,817 $ 35,497 (1) Each unit within these classes of non-controlling interest has economic terms substantially equivalent to those of an LP Unit. As such, income attributed to each unit or share of non-controlling interest is equivalent to that allocated to an LP Unit. The proportion of interests held by holders of the Redeemable/Exchangeable Units changes as a result of issuances, repurchases and exchanges. Consequently, the partnership adjusted the relative carrying amounts of the interests held by limited partners and non-controlling interests based on their relative share of the equivalent LP Units. The difference between the adjusted value and the previous carrying amounts was attributed to current LP Units as ownership changes in the Consolidated Statements of Changes in Equity. (2) See Note 32, Related Parties for further information on the Manager Reorganization. |
COMMERCIAL PROPERTY REVENUE (Ta
COMMERCIAL PROPERTY REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
Disclosure of components of commercial property revenue | The components of commercial property revenue are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Base rent $ 3,153 $ 3,462 $ 3,613 Straight-line rent 25 25 133 Lease termination 27 68 27 Other lease income (1) 662 662 627 Other revenue from tenants (2) 982 946 997 Total commercial property revenue $ 4,849 $ 5,163 $ 5,397 (1) Other lease income includes parking revenue and recovery of property tax and insurance expense from tenants. (2) Consists of recovery of certain operating expenses and other revenue from tenants which are accounted for in accordance with IFRS 15. |
Disclosure of maturity analysis of operating lease payments | Minimum rental commitments under non-cancellable tenant operating leases are as follows: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Less than 1 year $ 2,933 $ 2,776 1-5 years 9,266 9,029 More than 5 years 8,559 8,522 Total $ 20,758 $ 20,327 |
HOSPITALITY REVENUE (Tables)
HOSPITALITY REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of revenue [Abstract] | |
Disclosure of detailed information of hospitality revenue | The components of hospitality revenue are as follows: (US$ Millions) 2022 2021 2020 Room, food and beverage $ 1,300 $ 931 $ 562 Gaming, and other leisure activities 175 111 106 Other hospitality revenue 36 31 34 Total hospitality revenue $ 1,511 $ 1,073 $ 702 |
INVESTMENT AND OTHER REVENUE (T
INVESTMENT AND OTHER REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [abstract] | |
Disclosure of investment and other revenue | The components of investment and other revenue are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Investment income $ 518 $ 476 $ 177 Fee revenue 285 255 228 Dividend income 114 77 44 Interest income and other 88 56 45 Total investment and other revenue $ 1,005 $ 864 $ 494 |
DIRECT COMMERCIAL PROPERTY EX_2
DIRECT COMMERCIAL PROPERTY EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Direct operating expense from investment property [abstract] | |
Disclosure of detailed information about direct commercial property expense | The components of direct commercial property expense are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Property maintenance $ 727 $ 713 $ 679 Real estate taxes 548 580 610 Employee compensation and benefits 148 155 158 Depreciation and amortization 29 39 39 Lease expense (1) 11 11 16 Other (2) 389 433 473 Total direct commercial property expense $ 1,852 $ 1,931 $ 1,975 (1) Represents the operating expenses relating to variable lease payments not included in the measurement of the lease liability. (2) For the twelve months ended December 31, 2022, the partnership recorded a loss recovery of $11 million (loss allowance of 2021 - $49 million, 2020 - $99 million) in commercial property operating expenses. |
DIRECT HOSPITALITY EXPENSE (Tab
DIRECT HOSPITALITY EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about investment property [abstract] | |
Disclosure of detailed information on direct hospitality expense | The components of direct hospitality expense are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Employee compensation and benefits $ 230 $ 160 $ 180 Cost of food, beverage, and retail goods sold 245 158 142 Depreciation and amortization 258 269 280 Maintenance and utilities 105 99 112 Marketing and advertising 26 23 28 Other 277 201 166 Total direct hospitality expense $ 1,141 $ 910 $ 908 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of General And Administrative Expense [Abstract] | |
Disclosure of detailed general and administrative expense | The components of general and administrative expense are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Employee compensation and benefits $ 376 $ 360 $ 385 Management fees 281 241 116 Transaction costs 26 48 24 Professional fees 92 97 98 Facilities and technology fees 43 47 54 Other 112 131 139 Total general and administrative expense $ 930 $ 924 $ 816 |
FAIR VALUE GAINS (LOSSES), NET
FAIR VALUE GAINS (LOSSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement [Abstract] | |
Schedule of fair value gains (losses) | The components of fair value gains (losses), net, are as follows: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Commercial properties (1) $ (1,122) $ 1,791 $ (1,607) Commercial developments 64 171 219 Incentive fees (2) (45) (24) (16) Financial instruments and other (3) 1,123 583 82 Total fair value (losses) gains, net $ 20 $ 2,521 $ (1,322) (1) For the year ended December 31, 2022, includes fair value loss on right-of-use investment properties of $2 million (2021 - $5 million, 2020 - $16 million). (2) Represents incentive fees the partnership is obligated to pay to the general partner of the partnership’s various fund investments. (3) For the year ended December 31, 2022, primarily includes fair value gains on the disposition of a student housing portfolio. |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Disclosure of other comprehensive income (loss) | Other comprehensive (loss) income consists of the following: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Items that may be reclassified to net income: Foreign currency translation Unrealized foreign currency translation (losses) gains in respect of foreign operations $ (1,233) $ (467) $ 87 Reclassification of realized foreign currency translation gains to net income on disposition of foreign operations 189 27 — Gains (losses) on hedges of net investments in foreign operations 539 163 650 (505) (277) 737 Cash flow hedges Gains on derivatives designated as cash flow hedges, net of income tax expense (benefit) of $(9) million (2021 - $(12) million; 2020 - $4 million) 49 95 116 49 95 116 Equity accounted investments Share of unrealized foreign currency translations (losses) gains in respect of foreign operations (1) (2) 4 Share of gains (losses) on derivatives designated as cash flow hedges 129 56 (62) 128 54 (58) Items that will not be reclassified to net income: Unrealized (losses) gains on securities - FVTOCI, net of income tax (expense) benefit of $(2) million (2021 - $(59) million; 2020 - $11 million) (26) (33) 17 Share of revaluation surplus (losses) on equity accounted investments 113 354 (206) Net remeasurement gains (losses) on defined benefit plan 1 — (1) Revaluation surplus (loss), net of income tax (expense) benefit of $(72) million (2021 –$(120) million; 2020 – $49 million) 655 811 (191) 743 1,132 (381) Total other comprehensive income $ 415 $ 1,004 $ 414 |
LIQUIDITY AND CAPITAL MANAGEM_2
LIQUIDITY AND CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Liquidity and Capital Management [Abstract] | |
Disclosure of contractual obligations | The table below presents the partnership’s contractual obligations as of December 31, 2022: (US$ Millions) Payments due by period Dec. 31, 2022 Total < 1 Year 1 Year 2 Years 3 Years 4 Years > 5 Years Debt obligations (1) $ 58,864 $ 19,777 $ 13,486 $ 7,906 $ 4,189 $ 7,991 $ 5,515 Capital securities 2,833 600 575 172 555 — 931 Lease obligations 3,790 51 48 48 48 48 3,547 Commitments (2) 345 275 68 2 — — — Interest expense (3) : Debt obligations 8,872 3,072 1,932 1,329 982 657 900 Capital securities 1,169 152 154 118 109 73 563 Interest rate swaps (75) (16) (16) (15) (13) (15) — (1) Debt obligations gross of deferred financing costs of $302 million. (2) Primarily consists of construction commitments on commercial developments. (3) Represents aggregate interest expense expected to be paid over the term of the obligations. Variable interest rate payments have been calculated based on current rates. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of hedging instruments | The following table provides the partnership’s outstanding derivatives that are designated as cash flow hedges of variability in interest rates associated with forecasted fixed rate financings and existing variable rate debt as of December 31, 2022 and 2021: (US$ Millions) Hedging item Notional Rates Maturity dates Fair value Dec. 31, 2022 Interest rate caps of US$ LIBOR debt $ 2,042 2.5% - 5.0% May 2023 - Apr. 2027 $ 20 Interest rate caps of US$ SOFR debt 3,989 1.0% - 6.0% Aug. 2023 - Nov. 2024 74 Interest rate swaps of US$ SOFR debt 2,500 3.7% Dec. 2027 3 Interest rate caps of £ SONIA debt 1,024 1.0% - 2.5% Jul. 2024 - Mar. 2025 41 Interest rate swaps of £ SONIA debt 804 2.7% Jan. 2023 - Jul. 2024 20 Interest rate caps of € EURIBOR debt 96 1.3% Apr. 2023 — Interest rate caps of C$ LIBOR debt 177 4.0% Oct. 2024 2 Interest rate swaps of AUD BBSW/BBSY debt 132 5.3% - 5.8% Apr. 2024 — Dec. 31, 2021 Interest rate caps of US$ LIBOR debt $ 9,590 2.5% - 5.0% Jan. 2022 - Jun. 2024 $ — Interest rate swaps of US$ LIBOR debt 2,130 1.0% - 2.6% Nov. 2022 - Feb. 2024 (50) Interest rate caps of £ LIBOR debt 2,301 1.0% - 2.5% Jan. 2022 - Dec. 2023 — Interest rate caps of £ SONIA debt 974 2.0% Oct. 2022 - Mar. 2025 5 Interest rate caps of € EURIBOR debt 102 1.3% Apr. 2022 — Interest rate caps of C$ LIBOR debt 240 2.0% Oct. 2022 — Interest rate swaps of AUD BBSW/BBSY debt 422 0.8% - 1.6% Apr. 2023 - Apr. 2024 — The following table presents the partnership’s outstanding derivatives that are designated as net investment hedges in foreign subsidiaries or cash flow hedges as of December 31, 2022 and 2021: (US$ Millions) Hedging item Net Notional Rates Maturity dates Fair value Dec. 31, 2022 Net investment hedges € 105 €0.91/$ - €1.02/$ Feb. 2023 - Dec. 2025 (7) Net investment hedges £ 1,319 £0.76/$ - £0.93/$ Jan. 2023 - Jul. 2023 (243) Net investment hedges A$ — A$1.49/$ - A$1.55/$ May. 2023 (1) Net investment hedges C¥ 2,703 C¥6.59/$ - C¥6.99/$ Jun. 2023 - Mar. 2025 (9) Net investment hedges R$ 908 R$6.24/$ - R$7.00/$ May. 2023 - Dec. 2024 (22) Net investment hedges ₩ 820,473 ₩1,283.60/$ - ₩1,410.00/$ Jan. 2023 - Nov. 2024 (42) Net investment hedges Rs 84,251 Rs79.40/$ - Rs89.84/$ Mar. 2023 - Jul. 2024 (5) Net investment hedges £ 374 £0.86/€ Jul. 2023 (16) Cross currency swaps of C$ LIBOR debt C$ 2,500 C$1.25/$ - C$1.38/$ Jul. 2023 - Jan. 2027 (45) Dec. 31, 2021 Net investment hedges € 389 €0.81/$ - €0.88/$ Jul. 2022 - Sep. 2024 $ (2) Net investment hedges £ 4,395 £0.71/$ - £0.76/$ Jun. 2022 - Mar. 2023 (89) Net investment hedges A$ 974 A$1.35/$ - A$1.41/$ Mar. 2022 - Mar. 2023 (14) Net investment hedges C¥ 1,596 C¥6.68/$ - C¥6.99/$ Jun. 2022 - Jun. 2023 (7) Net investment hedges R$ 2,546 R$5.87/$ - R$6.54/$ Sep. 2022 - Oct. 2022 (5) Net investment hedges ₩ 720,095 ₩1,165.75/$ - ₩1,197.60/$ Jun. 2022 - Jun. 2023 4 Net investment hedges Rs 75,690 Rs76.35/$ - Rs87.13/$ Jan. 2022 - Jul. 2024 (27) Net investment hedges £ 90 £0.91/€ Apr. 2022 9 Cross currency swaps of C$ LIBOR debt C$ 2,500 C$1.25/$ - C$1.38/$ Jul. 2023 - Jan. 2027 56 |
Disclosure of other derivatives | The following tables provide detail of the partnership’s other derivatives, not designated as hedges for accounting purposes, that have been entered into to manage financial risks as of December 31, 2022 and 2021: (US$ millions) Derivative type Notional Rates Maturity dates Fair value Dec. 31, 2022 Interest rate caps $ 7,622 2.0% - 6.0% Jan. 2023 - Nov. 2032 $ 30 Interest rate swaps on forecasted fixed rate debt 335 3.6% - 5.3% Jun. 2023 (21) Dec. 31, 2021 Interest rate caps $ 5,388 3.0% - 5.0% Jan. 2022 - Feb. 2027 $ — Interest rate swaps on forecasted fixed rate debt 1,285 2.7% - 6.4% Jun. 2022 - Jun. 2033 (253) Interest rate swaps of US$ debt 1,696 0.8% - 5.1% Nov. 2022 - Mar. 2024 (8) |
Disclosure of financial assets | The following table outlines the classification and measurement basis, and related fair value for disclosures, of the financial assets and liabilities in the consolidated financial statements: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Classification and measurement basis Carrying Fair Carrying Fair Financial assets Loans and notes receivable Amortized cost 686 686 225 225 Other non-current assets Securities - FVTPL FVTPL 2,523 2,523 2,200 2,200 Derivative assets FVTPL 170 170 111 111 Accounts receivable Amortized cost 464 464 2 2 Securities - FVTOCI FVTOCI 69 69 108 108 Restricted cash Amortized cost 584 584 356 356 Current assets Securities - FVTOCI FVTOCI 36 36 — — Derivative assets FVTPL 124 124 33 33 Accounts receivable (1) Amortized cost 787 787 1,128 1,128 Restricted cash Amortized cost 342 342 331 331 Cash and cash equivalents Amortized cost 4,020 4,020 2,576 2,576 Total financial assets $ 9,805 $ 9,805 $ 7,070 $ 7,070 Financial liabilities Debt obligations (2) Amortized cost $ 58,562 $ 57,790 $ 55,327 $ 55,474 Capital securities Amortized cost 2,256 2,256 2,226 2,226 Capital securities - fund subsidiaries FVTPL 577 577 859 859 Other non-current liabilities Loan payable FVTPL 171 171 1 1 Accounts payable Amortized cost 824 824 499 499 Derivative liabilities FVTPL 371 371 277 277 Accounts payable and other liabilities Accounts payable and other (3) Amortized cost 2,852 2,852 2,097 2,097 Loans and notes payable Amortized cost 226 226 899 899 Derivative liabilities FVTPL 167 167 221 221 Total financial liabilities $ 66,006 $ 65,234 $ 62,406 $ 62,553 (1) Includes other receivables associated with assets classified as held for sale on the consolidated balance sheets in the amounts of nil and $276 million as of December 31, 2022 and December 31, 2021, respectively. (2) Includes debt obligations associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $3,006 million as of December 31, 2022 and December 31, 2021, respectively. (3) Includes accounts payable and other liabilities associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $76 million as of December 31, 2022 and December 31, 2021, respectively. |
Disclosure of financial liabilities | The following table outlines the classification and measurement basis, and related fair value for disclosures, of the financial assets and liabilities in the consolidated financial statements: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Classification and measurement basis Carrying Fair Carrying Fair Financial assets Loans and notes receivable Amortized cost 686 686 225 225 Other non-current assets Securities - FVTPL FVTPL 2,523 2,523 2,200 2,200 Derivative assets FVTPL 170 170 111 111 Accounts receivable Amortized cost 464 464 2 2 Securities - FVTOCI FVTOCI 69 69 108 108 Restricted cash Amortized cost 584 584 356 356 Current assets Securities - FVTOCI FVTOCI 36 36 — — Derivative assets FVTPL 124 124 33 33 Accounts receivable (1) Amortized cost 787 787 1,128 1,128 Restricted cash Amortized cost 342 342 331 331 Cash and cash equivalents Amortized cost 4,020 4,020 2,576 2,576 Total financial assets $ 9,805 $ 9,805 $ 7,070 $ 7,070 Financial liabilities Debt obligations (2) Amortized cost $ 58,562 $ 57,790 $ 55,327 $ 55,474 Capital securities Amortized cost 2,256 2,256 2,226 2,226 Capital securities - fund subsidiaries FVTPL 577 577 859 859 Other non-current liabilities Loan payable FVTPL 171 171 1 1 Accounts payable Amortized cost 824 824 499 499 Derivative liabilities FVTPL 371 371 277 277 Accounts payable and other liabilities Accounts payable and other (3) Amortized cost 2,852 2,852 2,097 2,097 Loans and notes payable Amortized cost 226 226 899 899 Derivative liabilities FVTPL 167 167 221 221 Total financial liabilities $ 66,006 $ 65,234 $ 62,406 $ 62,553 (1) Includes other receivables associated with assets classified as held for sale on the consolidated balance sheets in the amounts of nil and $276 million as of December 31, 2022 and December 31, 2021, respectively. (2) Includes debt obligations associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $3,006 million as of December 31, 2022 and December 31, 2021, respectively. (3) Includes accounts payable and other liabilities associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $76 million as of December 31, 2022 and December 31, 2021, respectively. |
Disclosure of fair value measurement of assets | The following table presents the partnership’s investment properties measured at fair value in the consolidated financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above in Note 2(i), Summary of Significant Accounting Policies, Fair value measurement. Dec. 31, 2022 Dec. 31, 2021 Level 3 Level 3 (US$ Millions) Level 1 Level 2 Commercial properties Commercial developments Level 1 Level 2 Commercial properties Commercial developments Core Office $ — $ — $ 22,129 $ 1,355 $ — $ — $ 24,644 $ 1,023 Core Retail — — 19,438 106 — — 18,991 — LP Investments — — 24,500 1,057 — — 18,678 1,277 Total $ — $ — $ 66,067 $ 2,518 $ — $ — $ 62,313 $ 2,300 (1) Represents excess land held for capital appreciation rather than an operating hotel asset. The following table outlines financial assets and liabilities measured at fair value in the financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Securities designated as FVTPL 10 305 2,208 2,523 17 218 1,965 2,200 Securities designated as FVTOCI 36 — 69 105 13 — 95 108 Derivative assets — 294 — 294 — 144 — 144 Total financial assets $ 46 $ 599 $ 2,277 $ 2,922 $ 30 $ 362 $ 2,060 $ 2,452 Financial liabilities Capital securities - fund subsidiaries $ — $ — $ 577 $ 577 $ — $ — $ 859 $ 859 Derivative liabilities — 538 — 538 — 498 — 498 Total financial liabilities $ — $ 538 $ 577 $ 1,115 $ — $ 498 $ 859 $ 1,357 The following table presents the change in the balance of financial assets and financial liabilities classified as Level 3 as of December 31, 2022 and 2021: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Financial Financial Financial Financial Balance, beginning of year $ 2,060 $ 859 $ 1,682 $ 863 Additions 353 — 553 — Dispositions (222) — (88) — Fair value (losses) gains, net and OCI 86 (292) 366 2 Other — 10 (453) (6) Balance, end of year $ 2,277 $ 577 $ 2,060 $ 859 |
Disclosure of valuation techniques and inputs for fair value liabilities | The following table presents the valuation techniques and inputs of the partnership’s Level 2 assets and liabilities: Type of asset/liability Valuation technique Foreign currency forward contracts Discounted cash flow model - forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at a credit adjusted rate Interest rate contracts Discounted cash flow model - forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate The table below presents the valuation techniques and inputs of Level 3 assets: Type of asset/liability Valuation techniques Significant unobservable input(s) Relationship of unobservable input(s) to fair value Securities - FVTPL/FVTOCI Net asset valuation (a) Forward exchange rates (from observable forward exchange rates at the end of the reporting period) (a) Increases (decreases) in the forward exchange rate would increase (decrease) fair value |
Disclosure of valuation techniques and inputs for fair value assets | The key valuation metrics for the partnership’s consolidated commercial properties are set forth in the following tables below on a weighted-average basis: Dec. 31, 2022 Dec. 31, 2021 Consolidated properties Primary valuation Discount Terminal Investment Discount Terminal Investment Core Office Discounted cash flow 6.8 % 5.4 % 11 6.5 % 5.3 % 11 Core Retail Discounted cash flow 7.2 % 5.3 % 10 7.0 % 5.3 % 10 LP Investment (1) Discounted cash flow 9.1 % 6.3 % 8 9.4 % 7.0 % 8 (1) The valuation method used to value multifamily and manufactured housing properties is the direct capitalization method. At December 31, 2022, the overall implied capitalization rate used for properties using the direct capitalization method was 4.3% (December 31, 2021 - 4.3% ). The following table presents the valuation techniques and inputs of the partnership’s Level 2 assets and liabilities: Type of asset/liability Valuation technique Foreign currency forward contracts Discounted cash flow model - forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at a credit adjusted rate Interest rate contracts Discounted cash flow model - forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate The table below presents the valuation techniques and inputs of Level 3 assets: Type of asset/liability Valuation techniques Significant unobservable input(s) Relationship of unobservable input(s) to fair value Securities - FVTPL/FVTOCI Net asset valuation (a) Forward exchange rates (from observable forward exchange rates at the end of the reporting period) (a) Increases (decreases) in the forward exchange rate would increase (decrease) fair value |
Disclosure of fair value measurement of liabilities | The following table outlines financial assets and liabilities measured at fair value in the financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Securities designated as FVTPL 10 305 2,208 2,523 17 218 1,965 2,200 Securities designated as FVTOCI 36 — 69 105 13 — 95 108 Derivative assets — 294 — 294 — 144 — 144 Total financial assets $ 46 $ 599 $ 2,277 $ 2,922 $ 30 $ 362 $ 2,060 $ 2,452 Financial liabilities Capital securities - fund subsidiaries $ — $ — $ 577 $ 577 $ — $ — $ 859 $ 859 Derivative liabilities — 538 — 538 — 498 — 498 Total financial liabilities $ — $ 538 $ 577 $ 1,115 $ — $ 498 $ 859 $ 1,357 The following table presents the change in the balance of financial assets and financial liabilities classified as Level 3 as of December 31, 2022 and 2021: Dec. 31, 2022 Dec. 31, 2021 (US$ Millions) Financial Financial Financial Financial Balance, beginning of year $ 2,060 $ 859 $ 1,682 $ 863 Additions 353 — 553 — Dispositions (222) — (88) — Fair value (losses) gains, net and OCI 86 (292) 366 2 Other — 10 (453) (6) Balance, end of year $ 2,277 $ 577 $ 2,060 $ 859 |
Disclosure of interest rate and foreign currency risk | The following table outlines the impact on interest expense of a 100 basis point increase or decrease in interest rates on the partnership’s variable rate liabilities and fixed rate debt maturing within one year: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Variable rate property debt $ 367 $ 255 Fixed rate property debt due within one year 35 31 Total $ 402 $ 286 |
Disclosure of sensitivity analysis for types of market risk | The partnership’s exposures to foreign currencies and the sensitivity of net income and other comprehensive income, on a pre-tax basis, to a 10% change in the exchange rates relative to the U.S. dollar is summarized below: Dec. 31, 2022 (Millions) Equity attributable to Unitholders OCI Net income Canadian Dollar (1) C$ 142 $ (11) $ — Australian Dollar A$ 1,560 (106) — British Pound £ 4,059 (490) — Euro € 690 (74) — Brazilian Real R$ 3,129 (60) — Indian Rupee Rs 33,212 (40) — Chinese Yuan C¥ 2,554 (37) — South Korean Won ₩ 417,865 (33) — United Arab Emirates Dirham AED 1,287 (35) — Total $ (886) $ — (1) Net of Canadian Dollar denominated loans. Dec. 31, 2021 (Millions) Equity attributable to Unitholders OCI Net income Canadian Dollar (1) C$ 339 $ (27) $ — Australian Dollar A$ 1,708 (124) — British Pound £ 6,375 (863) — Euro € 1,297 (147) — Brazilian Real R$ 745 (13) — Indian Rupee Rs 617 (1) — Chinese Yuan C¥ 730 (11) — South Korean Won ₩ 289,443 (24) — United Arab Emirates Dirham AED 342 (9) — Czech Koruna CZK 5 — — Hungarian Forint HUF 5 — — Total $ (1,219) $ — (1) Net of Canadian Dollar denominated loans. Dec. 31, 2020 (Millions) Equity attributable to Unitholders OCI Net income Canadian Dollar (1) C$ 521 $ (41) $ — Australian Dollar A$ 2,056 (158) — British Pound £ 4,206 (575) — Euro € 328 (40) — Brazilian Real R$ 3,364 (65) — Indian Rupee Rs 28,281 (39) — Hong Kong Dollar HK$ — — — Chinese Yuan C¥ 1,084 (17) — South Korean Won ₩ 204,795 (19) — United Arab Emirates Dirham AED 708 (19) — Czech Koruna CZK 8 — — Hungarian Forint HUF 334 — — Poland Zloty PLN 3 — — Total $ (973) $ — (1) Net of Canadian Dollar denominated loans. |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party [Abstract] | |
Summary of Related Party Transactions | The following table summarizes transactions and balances with related parties: (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Balances outstanding with related parties: Net (payables)/receivables within equity accounted investments (110) (378) Loans and notes receivable 273 170 Receivables and other assets — 71 Deposit payable to Brookfield Corporation (1) — (680) Property-specific obligations (2,429) (250) Loans and notes payable and other liabilities (721) (259) Preferred shares held by Brookfield Corporation (2,490) (1,015) Brookfield Asset Management interest in Canholdco (1,759) (2,083) (1) As of December 31, 2022, a nil million on-demand deposit was payable to Brookfield Corporation, provided for in the deposit agreement between the partnership and Brookfield Corporation. The deposit limit was increased to $3.0 billion in the second quarter of 2021. (US$ Millions) Years ended Dec. 31, 2022 2021 2020 Transactions with related parties: Commercial property revenue (1) $ 53 $ 35 $ 32 Management fee income 92 42 32 Income from equity accounted investments (22) 26 (11) Interest expense on debt obligations 20 24 19 Interest on capital securities held by Brookfield Corporation — — — General and administrative expense (2) 327 271 164 Construction costs (3) (68) 132 265 Return of capital distributions on Brookfield Corporation’s interest in Canholdco 118 176 — Distributions on Brookfield Corporation’s interest in Canholdco 113 369 — Incentive Fees (4) 45 35 16 (1) Amounts received from Brookfield Corporation and its subsidiaries for the rental of office premises. (2) Includes amounts paid to Brookfield Corporation and its subsidiaries for management fees, management fees associated with the partnership’s investments in Brookfield-sponsored real estate funds, and administrative services. (3) Includes amounts paid to Brookfield Corporation and its subsidiaries for construction costs of development properties. (4) Represents incentive fees the partnership is obligated to pay to the general partner of the partnership’s various fund investments. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segments [Abstract] | |
Summary of financial information by segment | The following summaries present certain financial information regarding the partnership’s operating segments for the years ended December 31, 2022, 2021, and 2020. (US$ Millions) Total revenue FFO Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Core Office $ 2,210 $ 2,198 $ 2,049 $ 325 $ 539 $ 495 Core Retail 1,557 1,510 1,612 626 450 521 LP Investments 3,593 3,387 2,920 288 179 64 Corporate 5 5 12 (653) (590) (373) Total $ 7,365 $ 7,100 $ 6,593 $ 586 $ 578 $ 707 The following summary presents the detail of total revenue from the partnership’s operating segments for the years ended December 31, 2022, 2021 and 2020: (US$ Millions) Lease revenue Other revenue from tenants Hospitality revenue Investment and other revenue Total revenue Year ended Dec. 31, 2022 Core Office $ 1,373 $ 469 $ 22 $ 346 $ 2,210 Core Retail 1,138 264 — 155 1,557 LP Investments 1,357 248 1,489 499 3,593 Corporate — — — 5 5 Total $ 3,868 $ 981 $ 1,511 $ 1,005 $ 7,365 (US$ Millions) Lease revenue Other revenue from tenants Hospitality revenue Investment and other revenue Total revenue Year ended Dec. 31, 2021 Core Office $ 1,467 $ 442 $ 9 $ 280 $ 2,198 Core Retail 1,113 259 — 138 1,510 LP Investments 1,639 243 1,064 441 3,387 Corporate — — — 5 5 Total $ 4,219 $ 944 $ 1,073 $ 864 $ 7,100 (US$ Millions) Lease revenue Other revenue from tenants Hospitality revenue Investment and other revenue Total revenue Year ended Dec. 31, 2020 Core Office $ 1,429 $ 446 $ 6 $ 168 $ 2,049 Core Retail 1,166 284 — 162 1,612 LP Investments 1,805 267 696 152 2,920 Corporate — — — 12 12 Total $ 4,400 $ 997 $ 702 $ 494 $ 6,593 The following summaries presents share of net earnings from equity accounted investments and interest expense from the partnership’s operating segments for the years ended December 31, 2022, 2021, and 2020. (US$ Millions) Share of net earnings from equity accounted investments Interest expense Years ended Dec. 31, 2022 2021 2020 2022 2021 2020 Core Office $ 550 $ 644 $ 150 $ (723) $ (570) $ (586) Core Retail 234 472 (743) (660) (649) (647) LP Investments 42 (96) (156) (1,000) (1,069) (1,104) Corporate — — — (300) (305) (255) Total $ 826 $ 1,020 $ (749) $ (2,683) $ (2,593) $ (2,592) The following summary presents information about certain consolidated balance sheet items of the partnership, on a segmented basis, as of December 31, 2022 and 2021: Total assets Total liabilities Equity accounted investments (US$ Millions) Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Core Office $ 34,039 $ 37,661 $ 17,581 $ 18,172 $ 8,547 $ 9,819 Core Retail 30,363 30,585 13,850 14,316 9,674 9,945 LP Investments 47,458 43,403 32,146 27,516 1,722 1,043 Corporate 656 355 7,202 6,995 — — Total $ 112,516 $ 112,004 $ 70,779 $ 66,999 $ 19,943 $ 20,807 |
Summary of reconciliation of FFO to net income | The following summary presents a reconciliation of FFO to net income for the years ended December 31, 2022, 2021, and 2020: (US$ Millions) Years ended Dec. 31, 2022 2021 2020 FFO (1) $ 586 $ 578 $ 707 Add (deduct): Fair value gains (losses), net 20 2,521 (1,322) Share of equity accounted income (losses) - non-FFO 120 404 (1403) Depreciation and amortization of real-estate assets (190) (203) (249) Income tax (expense) (281) (490) (220) Non-controlling interests of others in operating subsidiaries and properties - non-FFO (387) (1,534) 129 Net income (loss) attributable to unitholders (2) (132) 1,276 (2,358) Non-controlling interests of others in operational subsidiaries and properties 1,128 2,223 300 Net income (loss) $ 996 $ 3,499 $ (2,058) (1) FFO represents interests attributable to GP Units, LP Units, Exchange LP Units, Redeemable/Exchangeable Partnership Units, Special LP Units, FV LTIP Units and BPYU Units. The interests attributable to Exchange LP Units, Redeemable/Exchangeable Units, Special LP Units, FV LTIP Units and BPYU Units are presented as non-controlling interests in the consolidated statements of income. (2) Includes net income attributable to GP Units, LP Units, Exchange LP Units, Redeemable/Exchangeable Partnership Units, Special LP Units, FV LTIP Units and BPYU Units. The interests attributable to Exchange LP Units, Redeemable/Exchangeable Units, Special LP Units, FV LTIP Units and BPYU Units are presented as non-controlling interests in the consolidated statements of income. |
Summary of financial information by geographic regions | The following summary presents financial information by the partnership’s geographic regions in which it operates: Total revenue Total non-current assets (US$ Millions) 2022 2021 2020 2022 2021 United States $ 4,740 $ 4,911 $ 4,743 $ 76,145 $ 64,695 Canada 491 421 424 5,120 5,446 Australia 360 322 182 2,338 4,081 Europe 1,151 887 592 11,949 16,956 Brazil 102 71 82 1,411 656 China 5 3 94 389 294 India 288 274 287 4,014 4,191 South Korea 228 211 189 3,745 — United Arab Emirates — — — 319 250 Total $ 7,365 $ 7,100 $ 6,593 $ 105,430 $ 96,569 |
ORGANIZATION AND NATURE OF TH_2
ORGANIZATION AND NATURE OF THE BUSINESS (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Series 1, Class A Preferred Equity Units | ||||
Disclosure of subsidiaries | ||||
Cumulative dividend rate | 6.50% | |||
Series 2, Class A Preferred Equity Units | ||||
Disclosure of subsidiaries | ||||
Cumulative dividend rate | 6.375% | |||
5.750% Class A Cumulative Redeemable Perpetual Units, Series 3 | ||||
Disclosure of subsidiaries | ||||
Cumulative dividend rate | 5.75% | |||
6.25% Class A Cumulative Redeemable Units, Series 1 | ||||
Disclosure of subsidiaries | ||||
Cumulative dividend rate | 6.25% | |||
Brookfield Property Partners L.P. | ||||
Disclosure of subsidiaries | ||||
Economic interest | 36% | 36% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reclassifications or changes in presentation [line items] | |||
Depreciation and amortization of real-estate assets | $ 190 | $ 203 | $ 249 |
PRIVATIZATION OF THE PARTNERS_2
PRIVATIZATION OF THE PARTNERSHIP (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2021 | Jul. 26, 2021 | |
Disclosure of classes of share capital [line items] | |||
Units elected for cash (in shares) | 51,971,192 | ||
Percentage of consideration received in cash | 93.05% | ||
Consideration, cash (in dollars per share) | $ 18.17 | ||
Consideration, shares (in shares) | 0.7268 | ||
Cash consideration | $ 3,000 | ||
Limited Partner Units | |||
Disclosure of classes of share capital [line items] | |||
Units repurchased, units issued (in shares) | 17,970,971 | ||
Percentage of consideration received in shares | 6.95% | ||
Cash consideration | $ 474 | ||
Share consideration (in shares) | 19,287,783 | ||
BAM shares | |||
Disclosure of classes of share capital [line items] | |||
Units repurchased, units issued (in shares) | 271,358,615 | ||
Percentage of consideration received in shares | 54.5316% | ||
Share consideration (in shares) | 59,279,263 | ||
Common equity of BPY subsidiary | |||
Disclosure of classes of share capital [line items] | |||
Cash consideration | $ 2,500 | ||
BPYU Preferred Equity | |||
Disclosure of classes of share capital [line items] | |||
Par value per share (in dollars per share) | $ 0.01 | ||
Cash consideration | $ 250 | ||
Brookfield Asset Management | Limited Partner Units | |||
Disclosure of classes of share capital [line items] | |||
Units repurchased, price (in dollars per share) | $ 18.17 | ||
Brookfield Asset Management | BPYU Preferred Equity | |||
Disclosure of classes of share capital [line items] | |||
Units repurchased, price (in dollars per share) | $ 25 |
INVESTMENT PROPERTIES - Roll Fo
INVESTMENT PROPERTIES - Roll Forward of Investment Property Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in investment property [abstract] | |||
Balance, beginning of year | $ 64,613 | $ 72,610 | |
Changes resulting from: | |||
Property acquisitions | 760 | 571 | |
Capital expenditures | 1,298 | 1,554 | |
Property dispositions | (308) | (1,650) | |
Fair value (losses) gains, net | (1,058) | 1,962 | |
Foreign currency translation | (1,677) | (595) | |
Transfers between commercial properties and commercial developments | 0 | 0 | |
Impact of deconsolidation due to loss of control | 0 | ||
Manager Reorganization | 0 | ||
Reclassifications of assets held for sale and other changes | (1,547) | (9,839) | |
Balance, end of year | 68,585 | 64,613 | $ 72,610 |
Right-of-use assets | 393 | 204 | |
Current lease liabilities | 163 | 160 | |
Non-current lease liabilities | 1,049 | 690 | |
Accounts payable and other | |||
Changes resulting from: | |||
Current lease liabilities | 122 | 118 | |
Other non-current liabilities | |||
Changes resulting from: | |||
Non-current lease liabilities | 810 | 558 | |
Investment Properties | BSREP III | |||
Changes resulting from: | |||
Impact of deconsolidation due to loss of control | (575) | ||
Manager Reorganization | 7,079 | ||
Commercial properties | |||
Reconciliation of changes in investment property [abstract] | |||
Balance, beginning of year | 62,313 | 70,294 | |
Changes resulting from: | |||
Property acquisitions | 760 | 491 | |
Capital expenditures | 870 | 796 | |
Property dispositions | (307) | (1,299) | |
Fair value (losses) gains, net | (1,122) | 1,791 | (1,607) |
Foreign currency translation | (1,528) | (558) | |
Transfers between commercial properties and commercial developments | 387 | 635 | |
Impact of deconsolidation due to loss of control | (575) | 0 | |
Manager Reorganization | 6,321 | 0 | |
Reclassifications of assets held for sale and other changes | (1,052) | (9,837) | |
Balance, end of year | 66,067 | 62,313 | 70,294 |
Right-of-use assets | 1,045 | 557 | |
Commercial developments | |||
Reconciliation of changes in investment property [abstract] | |||
Balance, beginning of year | 2,300 | 2,316 | |
Changes resulting from: | |||
Property acquisitions | 0 | 80 | |
Capital expenditures | 428 | 758 | |
Property dispositions | (1) | (351) | |
Fair value (losses) gains, net | 64 | 171 | 219 |
Foreign currency translation | (149) | (37) | |
Transfers between commercial properties and commercial developments | (387) | (635) | |
Impact of deconsolidation due to loss of control | 0 | 0 | |
Manager Reorganization | 758 | 0 | |
Reclassifications of assets held for sale and other changes | (495) | (2) | |
Balance, end of year | 2,518 | 2,300 | $ 2,316 |
Right-of-use assets | $ 127 | $ 24 |
INVESTMENT PROPERTIES - Valuati
INVESTMENT PROPERTIES - Valuation of Investment Properties (Details) - Commercial properties | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Discounted cash flow | Core Office | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate (percent) | 6.80% | 6.50% |
Terminal capitalization rate (percent) | 5.40% | 5.30% |
Investment horizon (yrs.) | 11 years | 11 years |
Discounted cash flow | Core Retail | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate (percent) | 7.20% | 7% |
Terminal capitalization rate (percent) | 5.30% | 5.30% |
Investment horizon (yrs.) | 10 years | 10 years |
Discounted cash flow | LP Investments | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate (percent) | 9.10% | 9.40% |
Terminal capitalization rate (percent) | 6.30% | 7% |
Investment horizon (yrs.) | 8 years | 8 years |
Direct capitalization | Multifamily and Manufactured Housing | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Implied capitalization rate | 4.30% | 4.30% |
INVESTMENT PROPERTIES - Fair Va
INVESTMENT PROPERTIES - Fair Value of Investment Properties (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of fair value measurement of assets [line items] | ||
Total assets | $ 112,516 | $ 112,004 |
Level 1 | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 1 | Core Office | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 1 | Core Retail | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 1 | LP Investments | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 2 | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 2 | Core Office | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 2 | Core Retail | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 2 | LP Investments | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | 0 |
Level 3 | Commercial properties | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 66,067 | 62,313 |
Level 3 | Commercial properties | Core Office | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 22,129 | 24,644 |
Level 3 | Commercial properties | Core Retail | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 19,438 | 18,991 |
Level 3 | Commercial properties | LP Investments | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 24,500 | 18,678 |
Level 3 | Commercial developments | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 2,518 | 2,300 |
Level 3 | Commercial developments | Core Office | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 1,355 | 1,023 |
Level 3 | Commercial developments | Core Retail | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 106 | 0 |
Level 3 | Commercial developments | LP Investments | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | $ 1,057 | $ 1,277 |
INVESTMENT PROPERTIES - Sensiti
INVESTMENT PROPERTIES - Sensitivity Analysis (Details) - Property $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
DR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | $ 1,628 |
TCR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 1,980 |
DR and TCR, or ICR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR and +25bps TCR or +25bps ICR | 3,568 |
Core Office | DR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 487 |
Core Office | TCR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 732 |
Core Office | DR and TCR, or ICR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR and +25bps TCR or +25bps ICR | 1,199 |
Core Retail | DR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 384 |
Core Retail | TCR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 643 |
Core Retail | DR and TCR, or ICR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR and +25bps TCR or +25bps ICR | 1,012 |
LP Investments | DR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 757 |
LP Investments | TCR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR or +25bps TCR | 605 |
LP Investments | DR and TCR, or ICR | |
Disclosure of fair value measurement of assets [line items] | |
Impact of +25bps DR and +25bps TCR or +25bps ICR | $ 1,357 |
INVESTMENT PROPERTIES - Narrati
INVESTMENT PROPERTIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about investment property | ||
Operating investment properties at fair value | $ 15,300 | $ 11,300 |
Investment property pledged as security | 63,900 | 61,900 |
Borrowing costs capitalised | 302 | 249 |
Commercial developments | ||
Disclosure of detailed information about investment property | ||
Construction in progress | 428 | 758 |
Construction and other related costs capitalised | 405 | 730 |
Borrowing costs capitalised | $ 23 | $ 28 |
Capitalisation rate of borrowing costs eligible for capitalisation (percent) | 1.60% | 1.20% |
INVESTMENTS IN SUBSIDIARIES - S
INVESTMENTS IN SUBSIDIARIES - Schedule of Partnership's Material Subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Brookfield Property L.P. | ||
Disclosure of subsidiaries | ||
Economic interest | 36% | 36% |
Voting interest | 100% | 100% |
Holding entities of the Operating Partnership | ||
Disclosure of subsidiaries | ||
Economic interest | 100% | 100% |
Voting interest | 100% | 100% |
BPO Real Estate Subsidiary | ||
Disclosure of subsidiaries | ||
Economic interest | 100% | 100% |
Voting interest | 100% | 100% |
Australia Office Real Estate Subsidiary | ||
Disclosure of subsidiaries | ||
Economic interest | 100% | 100% |
Voting interest | 100% | 100% |
US Retail | ||
Disclosure of subsidiaries | ||
Economic interest | 100% | 100% |
Voting interest | 100% | 100% |
UK Short Stay | ||
Disclosure of subsidiaries | ||
Economic interest | 27% | 27% |
Voting interest | 0% | 0% |
Korea Mixed Use | ||
Disclosure of subsidiaries | ||
Economic interest | 22% | 22% |
Voting interest | 0% | 0% |
U.K Student Housing | ||
Disclosure of subsidiaries | ||
Economic interest | 25% | 25% |
Voting interest | 0% | 0% |
US Manufactured Housing | ||
Disclosure of subsidiaries | ||
Economic interest | 24% | 26% |
Voting interest | 0% | 0% |
U.S. Hospitality | ||
Disclosure of subsidiaries | ||
Economic interest | 23% | 0% |
Voting interest | 0% | 0% |
INVESTMENTS IN SUBSIDIARIES -_2
INVESTMENTS IN SUBSIDIARIES - Schedule of Non-Wholly Owned Subsidiaries With Material Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of subsidiaries | ||
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 18,084 | $ 19,706 |
Subsidiaries with material non-controlling interests | ||
Disclosure of subsidiaries | ||
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 18,084 | $ 19,706 |
Subsidiaries with material non-controlling interests | Corporate Holding Entities | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 0% | 0% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 5,033 | $ 3,871 |
Subsidiaries with material non-controlling interests | BPO | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 0% | 0% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 2,835 | $ 5,020 |
Subsidiaries with material non-controlling interests | BPO | Bottom of range | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 1% | |
Subsidiaries with material non-controlling interests | BPO | Top of range | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 100% | |
Subsidiaries with material non-controlling interests | U.K Student Housing | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 75% | 75% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 1,594 | $ 1,190 |
Subsidiaries with material non-controlling interests | US Retail | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 0% | 0% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 1,280 | $ 1,274 |
Subsidiaries with material non-controlling interests | US Manufactured Housing | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 76% | 74% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 1,191 | $ 932 |
Subsidiaries with material non-controlling interests | Korea Mixed Use | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 78% | 78% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 936 | $ 936 |
Subsidiaries with material non-controlling interests | UK Short Stay | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 73% | 73% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 756 | $ 799 |
Subsidiaries with material non-controlling interests | U.S. Hospitality | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 77% | 0% |
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 724 | $ 0 |
Subsidiaries with material non-controlling interests | Other LP Investments | ||
Disclosure of subsidiaries | ||
Non-controlling interests: Interests of others in operating subsidiaries and properties | $ 3,735 | $ 5,684 |
Subsidiaries with material non-controlling interests | Other LP Investments | Bottom of range | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 33% | 33% |
Subsidiaries with material non-controlling interests | Other LP Investments | Top of range | ||
Disclosure of subsidiaries | ||
Proportion of economic interests held by non- controlling interests | 99% | 82% |
INVESTMENTS IN SUBSIDIARIES -_3
INVESTMENTS IN SUBSIDIARIES - Summary of Balance Sheet Items Before Intercompany Eliminations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of subsidiaries | ||
Non-current assets | $ 105,430 | $ 96,569 |
Non-current liabilities | 46,598 | 46,352 |
Equity attributable to Non-controlling interests | 32,817 | 35,497 |
Subsidiaries with material non-controlling interests | ||
Disclosure of subsidiaries | ||
Current assets | 14,089 | 16,668 |
Non-current assets | 80,144 | 85,101 |
Current liabilities | 22,665 | 20,751 |
Non-current liabilities | 42,092 | 51,236 |
Equity attributable to Non-controlling interests | 15,067 | 14,612 |
Equity attributable to owners of entity | 14,409 | 15,170 |
Subsidiaries with material non-controlling interests | Corporate Holding Entities | ||
Disclosure of subsidiaries | ||
Current assets | 6,385 | 3,991 |
Non-current assets | 579 | 3,120 |
Current liabilities | 6,087 | 6,242 |
Non-current liabilities | 7,877 | 13,647 |
Equity attributable to Non-controlling interests | 5,457 | 4,249 |
Equity attributable to owners of entity | (12,457) | (17,027) |
Subsidiaries with material non-controlling interests | BPO | ||
Disclosure of subsidiaries | ||
Current assets | 4,304 | 7,168 |
Non-current assets | 33,911 | 40,341 |
Current liabilities | 10,656 | 9,664 |
Non-current liabilities | 14,390 | 16,648 |
Equity attributable to Non-controlling interests | 3,129 | 5,232 |
Equity attributable to owners of entity | 10,040 | 15,965 |
Subsidiaries with material non-controlling interests | U.K Student Housing | ||
Disclosure of subsidiaries | ||
Current assets | 2,255 | 62 |
Non-current assets | 0 | 3,562 |
Current liabilities | 114 | 1,378 |
Non-current liabilities | 0 | 651 |
Equity attributable to Non-controlling interests | 1,594 | 1,190 |
Equity attributable to owners of entity | 547 | 405 |
Subsidiaries with material non-controlling interests | US Retail | ||
Disclosure of subsidiaries | ||
Current assets | 561 | 1,051 |
Non-current assets | 29,681 | 29,534 |
Current liabilities | 2,293 | 3,023 |
Non-current liabilities | 11,559 | 11,333 |
Equity attributable to Non-controlling interests | 1,280 | 1,274 |
Equity attributable to owners of entity | 15,110 | 14,955 |
Subsidiaries with material non-controlling interests | US Manufactured Housing | ||
Disclosure of subsidiaries | ||
Current assets | 61 | 86 |
Non-current assets | 4,279 | 3,843 |
Current liabilities | 2,593 | 11 |
Non-current liabilities | 178 | 2,688 |
Equity attributable to Non-controlling interests | 1,191 | 932 |
Equity attributable to owners of entity | 378 | 298 |
Subsidiaries with material non-controlling interests | Korea Mixed Use | ||
Disclosure of subsidiaries | ||
Current assets | 167 | 3,972 |
Non-current assets | 3,745 | 0 |
Current liabilities | 64 | 83 |
Non-current liabilities | 2,642 | 2,683 |
Equity attributable to Non-controlling interests | 936 | 936 |
Equity attributable to owners of entity | 270 | 270 |
Subsidiaries with material non-controlling interests | UK Short Stay | ||
Disclosure of subsidiaries | ||
Current assets | 197 | 338 |
Non-current assets | 4,419 | 4,701 |
Current liabilities | 485 | 350 |
Non-current liabilities | 3,068 | 3,586 |
Equity attributable to Non-controlling interests | 756 | 799 |
Equity attributable to owners of entity | 307 | $ 304 |
Subsidiaries with material non-controlling interests | U.S. Hospitality | ||
Disclosure of subsidiaries | ||
Current assets | 159 | |
Non-current assets | 3,530 | |
Current liabilities | 373 | |
Non-current liabilities | 2,378 | |
Equity attributable to Non-controlling interests | 724 | |
Equity attributable to owners of entity | $ 214 |
INVESTMENTS IN SUBSIDIARIES -_4
INVESTMENTS IN SUBSIDIARIES - Summary of Income Statement Items Before Intercompany Eliminations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Attributable to non-controlling interests | |||
Revenue | $ 7,365 | $ 7,100 | $ 6,593 |
Subsidiaries with material non-controlling interests | |||
Attributable to non-controlling interests | |||
Revenue | 5,568 | 5,289 | 4,984 |
Net income (loss) | 976 | 1,323 | 217 |
Total compre-hensive income | 1,017 | 1,317 | 306 |
Distributions | 370 | 1,153 | 109 |
Attributable to owners of the partnership | |||
Net income (loss) | (361) | 583 | (2,090) |
Total compre-hensive income | (142) | 703 | (1,611) |
Subsidiaries with material non-controlling interests | Corporate Holding Entities | |||
Attributable to non-controlling interests | |||
Revenue | 406 | 444 | 455 |
Net income (loss) | 36 | (7) | 1 |
Total compre-hensive income | 59 | (11) | 1 |
Distributions | 113 | 389 | 0 |
Attributable to owners of the partnership | |||
Net income (loss) | (20) | (122) | (50) |
Total compre-hensive income | 156 | (48) | 385 |
Subsidiaries with material non-controlling interests | BPO | |||
Attributable to non-controlling interests | |||
Revenue | 2,105 | 2,151 | 2,079 |
Net income (loss) | 124 | 264 | 142 |
Total compre-hensive income | 106 | 257 | 152 |
Distributions | 24 | 79 | 69 |
Attributable to owners of the partnership | |||
Net income (loss) | (759) | 494 | (37) |
Total compre-hensive income | (802) | 482 | 7 |
Subsidiaries with material non-controlling interests | U.K Student Housing | |||
Attributable to non-controlling interests | |||
Revenue | 191 | 160 | 129 |
Net income (loss) | 492 | 204 | 63 |
Total compre-hensive income | 482 | 191 | 99 |
Distributions | 65 | 0 | 8 |
Attributable to owners of the partnership | |||
Net income (loss) | 148 | 69 | 21 |
Total compre-hensive income | 134 | 51 | 33 |
Subsidiaries with material non-controlling interests | US Retail | |||
Attributable to non-controlling interests | |||
Revenue | 1,557 | 1,511 | 1,612 |
Net income (loss) | (2) | (22) | (211) |
Total compre-hensive income | 2 | (22) | (214) |
Distributions | 4 | 10 | 16 |
Attributable to owners of the partnership | |||
Net income (loss) | 165 | (126) | (1,974) |
Total compre-hensive income | 203 | (101) | (1,999) |
Subsidiaries with material non-controlling interests | US Manufactured Housing | |||
Attributable to non-controlling interests | |||
Revenue | 287 | 266 | 252 |
Net income (loss) | 254 | 572 | 281 |
Total compre-hensive income | 254 | 572 | 281 |
Distributions | 13 | 675 | 11 |
Attributable to owners of the partnership | |||
Net income (loss) | 81 | 183 | 90 |
Total compre-hensive income | 81 | 183 | 90 |
Subsidiaries with material non-controlling interests | Korea Mixed Use | |||
Attributable to non-controlling interests | |||
Revenue | 228 | 211 | 268 |
Net income (loss) | 28 | 364 | (187) |
Total compre-hensive income | 0 | 304 | (187) |
Distributions | 0 | 0 | 0 |
Attributable to owners of the partnership | |||
Net income (loss) | 8 | 105 | (177) |
Total compre-hensive income | (28) | 28 | (177) |
Subsidiaries with material non-controlling interests | UK Short Stay | |||
Attributable to non-controlling interests | |||
Revenue | 794 | 546 | 189 |
Net income (loss) | 44 | (52) | 128 |
Total compre-hensive income | 114 | 26 | 174 |
Distributions | 151 | 0 | 5 |
Attributable to owners of the partnership | |||
Net income (loss) | 16 | (20) | 37 |
Total compre-hensive income | $ 114 | $ 108 | $ 50 |
EQUITY ACCOUNTED INVESTMENTS -
EQUITY ACCOUNTED INVESTMENTS - Details of Investments in Joint Ventures and Associates (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) jointVenture | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investments | |||
Carrying value of joint ventures | $ 19,404 | $ 20,479 | |
Carrying value of associates | 539 | 328 | |
Investments in joint ventures and associates | $ 19,943 | 20,807 | $ 19,719 |
Number of joint ventures | jointVenture | 50 | ||
Joint ventures categorized as other threshold | $ 500 | ||
Other | |||
Investments | |||
Carrying value of associates | $ 539 | $ 328 | |
Other | Bottom of range | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 16% | 13% | |
Other | Top of range | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
London Mixed-use District | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 3,192 | $ 3,529 | |
Midtown New York Mixed-use Complex | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 56% | 56% | |
Carrying value of joint ventures | $ 2,518 | $ 2,396 | |
U.S. Retail JV Pool A | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 1,848 | $ 1,810 | |
Honolulu Shopping Center | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 1,507 | $ 1,939 | |
U.S. Retail JV Pool B | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 51% | 51% | |
Carrying value of joint ventures | $ 1,132 | $ 1,140 | |
U.S. Retail JV Pool C | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 737 | $ 679 | |
Bryant Park Office Tower | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 719 | $ 702 | |
Las Vegas Mall A | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 702 | $ 856 | |
U.S. Retail JV Pool D | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 48% | 48% | |
Carrying value of joint ventures | $ 646 | $ 612 | |
Las Vegas Mall B | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 50% | 50% | |
Carrying value of joint ventures | $ 625 | $ 455 | |
Other | |||
Investments | |||
Carrying value of joint ventures | $ 5,778 | $ 6,361 | |
Other | Bottom of range | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 15% | 15% | |
Other | Top of range | |||
Investments | |||
Proportion of ownership interests/voting rights held by the partnership | 68% | 68% |
EQUITY ACCOUNTED INVESTMENTS _2
EQUITY ACCOUNTED INVESTMENTS - Equity Accounted Investments, Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation Of Changes In Investments | |||
Equity accounted investments, beginning of year | $ 20,807 | $ 19,719 | |
Additions | 100 | 698 | |
Disposals and return of capital distributions | (967) | (459) | |
Share of net (losses) earnings from equity accounted investments | 826 | 1,020 | $ (749) |
Distributions received | (263) | (172) | |
Foreign currency translation | (578) | (145) | |
Reclassification from (to) assets held for sale | (276) | (210) | |
Impact of change in accounting basis | (706) | 0 | |
Manager Reorganization | 1,061 | 0 | |
Other comprehensive income and other | (61) | 356 | |
Equity accounted investments, end of year | $ 19,943 | $ 20,807 | $ 19,719 |
EQUITY ACCOUNTED INVESTMENTS _3
EQUITY ACCOUNTED INVESTMENTS - Key Valuation Metrics (Details) - Investments accounted for using equity method - Discounted cash flow | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Core Office | ||
Investments | ||
Discount rate (percent) | 6.40% | 6% |
Terminal capitalization rate (percent) | 4.90% | 4.70% |
Investment horizon (yrs.) | 11 years | 11 years |
Core Retail | ||
Investments | ||
Discount rate (percent) | 6.60% | 6.30% |
Terminal capitalization rate (percent) | 4.90% | 4.90% |
Investment horizon (yrs.) | 10 years | 10 years |
LP Investments | ||
Investments | ||
Discount rate (percent) | 7.80% | 6.90% |
Terminal capitalization rate (percent) | 5.50% | 5.60% |
Investment horizon (yrs.) | 10 years | 10 years |
EQUITY ACCOUNTED INVESTMENTS _4
EQUITY ACCOUNTED INVESTMENTS - Schedule of Assets and Liabilities of Joint Ventures and Associates (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments | ||
Non-current assets | $ 105,430 | $ 96,569 |
Non-current liabilities | 46,598 | 46,352 |
Other | ||
Investments | ||
Current assets | 183 | 180 |
Non-current assets | 2,705 | 1,253 |
Current liabilities | 109 | 81 |
Non-current liabilities | 1,057 | 796 |
Net assets | 1,722 | 556 |
Associates | ||
Investments | ||
Current assets | 183 | 180 |
Non-current assets | 2,705 | 1,253 |
Current liabilities | 109 | 81 |
Non-current liabilities | 1,057 | 796 |
Net assets | 1,722 | 556 |
London Mixed-use District | ||
Investments | ||
Current assets | 879 | 1,276 |
Non-current assets | 11,709 | 13,213 |
Current liabilities | 972 | 1,242 |
Non-current liabilities | 5,232 | 6,187 |
Net assets | 6,384 | 7,060 |
Midtown New York Mixed-use Complex | ||
Investments | ||
Current assets | 198 | 229 |
Non-current assets | 8,132 | 8,434 |
Current liabilities | 276 | 153 |
Non-current liabilities | 3,558 | 4,231 |
Net assets | 4,496 | 4,279 |
U.S. Retail JV Pool A | ||
Investments | ||
Current assets | 158 | 249 |
Non-current assets | 5,777 | 5,763 |
Current liabilities | 253 | 122 |
Non-current liabilities | 1,985 | 2,269 |
Net assets | 3,697 | 3,621 |
Honolulu Shopping Center | ||
Investments | ||
Current assets | 100 | 131 |
Non-current assets | 5,352 | 5,695 |
Current liabilities | 40 | 52 |
Non-current liabilities | 2,397 | 1,895 |
Net assets | 3,015 | 3,879 |
U.S. Retail JV Pool B | ||
Investments | ||
Current assets | 210 | 353 |
Non-current assets | 5,587 | 5,508 |
Current liabilities | 1,348 | 231 |
Non-current liabilities | 2,230 | 3,396 |
Net assets | 2,219 | 2,234 |
U.S. Retail JV Pool C | ||
Investments | ||
Current assets | 43 | 52 |
Non-current assets | 2,219 | 2,100 |
Current liabilities | 45 | 44 |
Non-current liabilities | 663 | 669 |
Net assets | 1,554 | 1,439 |
Bryant Park Office Tower | ||
Investments | ||
Current assets | 67 | 73 |
Non-current assets | 2,636 | 2,593 |
Current liabilities | 23 | 20 |
Non-current liabilities | 1,240 | 1,238 |
Net assets | 1,440 | 1,408 |
Las Vegas Mall A | ||
Investments | ||
Current assets | 22 | 23 |
Non-current assets | 2,231 | 2,538 |
Current liabilities | 16 | 19 |
Non-current liabilities | 833 | 829 |
Net assets | 1,404 | 1,713 |
U.S. Retail JV Pool D | ||
Investments | ||
Current assets | 28 | 40 |
Non-current assets | 1,833 | 1,763 |
Current liabilities | 508 | 49 |
Non-current liabilities | 0 | 471 |
Net assets | 1,353 | 1,283 |
Las Vegas Mall B | ||
Investments | ||
Current assets | 22 | 56 |
Non-current assets | 2,220 | 1,867 |
Current liabilities | 15 | 40 |
Non-current liabilities | 979 | 974 |
Net assets | 1,248 | 909 |
Other | ||
Investments | ||
Current assets | 1,912 | 1,827 |
Non-current assets | 25,951 | 27,422 |
Current liabilities | 3,283 | 1,861 |
Non-current liabilities | 10,603 | 11,866 |
Net assets | 13,977 | 15,522 |
Joint ventures | ||
Investments | ||
Current assets | 3,639 | 4,309 |
Non-current assets | 73,647 | 76,896 |
Current liabilities | 6,779 | 3,833 |
Non-current liabilities | 29,720 | 34,025 |
Net assets | 40,787 | 43,347 |
Joint ventures | Associates | ||
Investments | ||
Current assets | 3,822 | 4,489 |
Non-current assets | 76,352 | 78,149 |
Current liabilities | 6,888 | 3,914 |
Non-current liabilities | 30,777 | 34,821 |
Net assets | $ 42,509 | $ 43,903 |
EQUITY ACCOUNTED INVESTMENTS _5
EQUITY ACCOUNTED INVESTMENTS - Schedule of Revenues and Expenses of Joint Ventures and Associates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments | |||
Revenue | $ 7,365 | $ 7,100 | $ 6,593 |
Expenses | 6,934 | 6,652 | 6,360 |
Share of net earnings from equity accounted investments | 826 | 1,020 | (749) |
Net income (loss) | 996 | 3,499 | (2,058) |
Other comprehensive income | 415 | 1,004 | 414 |
Other | |||
Investments | |||
Revenue | 230 | 103 | 92 |
Expenses | 244 | 174 | 186 |
Fair value gains (losses) | 8 | (8) | (39) |
Share of net earnings from equity accounted investments | 4 | (50) | (90) |
Net income (loss) | (6) | (72) | (135) |
Other comprehensive income | 69 | 949 | (939) |
Distributions received | 0 | 0 | 0 |
Associates | |||
Investments | |||
Revenue | 230 | 103 | 92 |
Expenses | 244 | 174 | 186 |
Fair value gains (losses) | 8 | (8) | (39) |
Share of net earnings from equity accounted investments | 4 | (50) | (90) |
Net income (loss) | (6) | (72) | (135) |
Other comprehensive income | 69 | 949 | (939) |
Distributions received | 0 | 0 | 0 |
Joint ventures where entity is venturer | Other | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 7 | (2) |
Joint ventures where entity is venturer | Associates | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 7 | (2) |
London Mixed-use District | |||
Investments | |||
Revenue | 582 | 607 | 619 |
Expenses | 477 | 453 | 377 |
Fair value gains (losses) | (61) | 60 | (713) |
Share of net earnings from equity accounted investments | 66 | 128 | (226) |
Net income (loss) | 133 | 256 | (452) |
Other comprehensive income | 23 | 2 | (4) |
Distributions received | 0 | 2 | 4 |
London Mixed-use District | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 89 | 42 | 19 |
Midtown New York Mixed-use Complex | |||
Investments | |||
Revenue | 282 | 350 | 259 |
Expenses | 227 | 225 | 179 |
Fair value gains (losses) | 515 | 101 | 379 |
Share of net earnings from equity accounted investments | 370 | 127 | 257 |
Net income (loss) | 661 | 226 | 459 |
Other comprehensive income | 120 | 72 | (75) |
Distributions received | 34 | 48 | 221 |
Midtown New York Mixed-use Complex | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 91 | 0 | 0 |
U.S. Retail JV Pool A | |||
Investments | |||
Revenue | 343 | 329 | 353 |
Expenses | 107 | 220 | 230 |
Fair value gains (losses) | (96) | 92 | (543) |
Share of net earnings from equity accounted investments | 70 | 100 | (210) |
Net income (loss) | 140 | 201 | (420) |
Other comprehensive income | 1 | 0 | 0 |
Distributions received | 0 | 0 | 0 |
U.S. Retail JV Pool A | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
Honolulu Shopping Center | |||
Investments | |||
Revenue | 261 | 241 | 269 |
Expenses | 195 | 154 | 158 |
Fair value gains (losses) | (405) | 121 | (279) |
Share of net earnings from equity accounted investments | (170) | 104 | (84) |
Net income (loss) | (339) | 208 | (168) |
Other comprehensive income | 30 | 0 | 0 |
Distributions received | 0 | 3 | 9 |
Honolulu Shopping Center | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
U.S. Retail JV Pool B | |||
Investments | |||
Revenue | 467 | 458 | 483 |
Expenses | 348 | 347 | 356 |
Fair value gains (losses) | (148) | (46) | (601) |
Share of net earnings from equity accounted investments | (12) | 35 | (240) |
Net income (loss) | (24) | 69 | (470) |
Other comprehensive income | 6 | 0 | 0 |
Distributions received | 0 | 0 | 0 |
U.S. Retail JV Pool B | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 5 | 4 | 4 |
U.S. Retail JV Pool C | |||
Investments | |||
Revenue | 152 | 138 | 145 |
Expenses | 81 | 88 | 80 |
Fair value gains (losses) | 77 | (13) | (222) |
Share of net earnings from equity accounted investments | 74 | 19 | (78) |
Net income (loss) | 148 | 37 | (157) |
Other comprehensive income | 0 | 0 | 0 |
Distributions received | 11 | 2 | 6 |
U.S. Retail JV Pool C | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
Bryant Park Office Tower | |||
Investments | |||
Revenue | 157 | 151 | 108 |
Expenses | 88 | 86 | 95 |
Fair value gains (losses) | 9 | 47 | 121 |
Share of net earnings from equity accounted investments | 39 | 56 | 67 |
Net income (loss) | 78 | 112 | 134 |
Other comprehensive income | 0 | 0 | 0 |
Distributions received | 20 | 27 | 123 |
Bryant Park Office Tower | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
Las Vegas Mall A | |||
Investments | |||
Revenue | 106 | 98 | 103 |
Expenses | 56 | 54 | 56 |
Fair value gains (losses) | (321) | 63 | (46) |
Share of net earnings from equity accounted investments | (135) | 53 | 0 |
Net income (loss) | (271) | 107 | 1 |
Other comprehensive income | 0 | 0 | 0 |
Distributions received | 8 | 8 | 8 |
Las Vegas Mall A | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
U.S. Retail JV Pool D | |||
Investments | |||
Revenue | 88 | 80 | 71 |
Expenses | 46 | 37 | 36 |
Fair value gains (losses) | 47 | 121 | (203) |
Share of net earnings from equity accounted investments | 43 | 78 | (72) |
Net income (loss) | 89 | 164 | (151) |
Other comprehensive income | 0 | 0 | 0 |
Distributions received | 4 | 1 | 3 |
U.S. Retail JV Pool D | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 17 |
Las Vegas Mall B | |||
Investments | |||
Revenue | 108 | 93 | 92 |
Expenses | 69 | 75 | 84 |
Fair value gains (losses) | 344 | 61 | (18) |
Share of net earnings from equity accounted investments | 192 | 40 | (5) |
Net income (loss) | 383 | 79 | (10) |
Other comprehensive income | 0 | 0 | 0 |
Distributions received | 1 | 0 | 0 |
Las Vegas Mall B | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
Other | |||
Investments | |||
Revenue | 2,138 | 1,825 | 1,766 |
Expenses | 1,683 | 1,576 | 1,299 |
Fair value gains (losses) | 120 | 424 | (480) |
Share of net earnings from equity accounted investments | 285 | 330 | (68) |
Net income (loss) | 618 | 762 | 31 |
Other comprehensive income | 289 | 301 | (28) |
Distributions received | 185 | 81 | 244 |
Other | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 42 | 89 | 44 |
Joint ventures | |||
Investments | |||
Revenue | 4,684 | 4,370 | 4,268 |
Expenses | 3,377 | 3,315 | 2,950 |
Fair value gains (losses) | 81 | 1,031 | (2,605) |
Share of net earnings from equity accounted investments | 822 | 1,070 | (659) |
Net income (loss) | 1,616 | 2,221 | (1,203) |
Other comprehensive income | 469 | 375 | (107) |
Distributions received | 263 | 172 | 618 |
Joint ventures | Associates | |||
Investments | |||
Revenue | 4,914 | 4,473 | 4,360 |
Expenses | 3,621 | 3,489 | 3,136 |
Fair value gains (losses) | 89 | 1,023 | (2,644) |
Share of net earnings from equity accounted investments | 826 | 1,020 | (749) |
Net income (loss) | 1,610 | 2,149 | (1,338) |
Other comprehensive income | 538 | 1,324 | (1,046) |
Distributions received | 263 | 172 | 618 |
Joint ventures | Joint ventures where entity is venturer | |||
Investments | |||
Share of net earnings from equity accounted investments | 227 | 135 | 84 |
Joint ventures | Joint ventures where entity is venturer | Associates | |||
Investments | |||
Share of net earnings from equity accounted investments | $ 227 | $ 142 | $ 82 |
INVESTMENTS IN JOINT OPERATIO_3
INVESTMENTS IN JOINT OPERATIONS - Schedule of Investments in Joint Operations (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Brookfield Place - Retail & Parking | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 56% | 56% |
Brookfield Place III | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 54% | 54% |
Exchange Tower | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
First Canadian Place | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 25% | 25% |
Percentage of land subject to ground lease | 50% | |
Percentage of beneficial interest in property to be acquired | 50% | |
2 Queen Street East | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 25% | 25% |
Bankers Hall | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
Bankers Court | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
Bankers West Parkade | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
Suncor Energy Centre | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
Fifth Avenue Place | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
52 Goulburn Street | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 0% | 24% |
235 St Georges Terrace | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 0% | 24% |
108 St Georges Terrace | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 0% | 50% |
Southern Cross West | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 50% | 50% |
Shopping Patio Higienópolis | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 25% | 25% |
Shopping Patio Higienópolis - Expansion | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 32% | 32% |
Shopping Patio Higienópolis - Co-Invest | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 5% | 5% |
Shopping Patio Higienópolis Expansion - Co-Invest | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 6% | 6% |
G2-Infospace Gurgaon | ||
Disclosure of joint operations | ||
Proportion of ownership interest in joint operation | 72% | 72% |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Useful Life (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Building and building improvements | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 2 years |
Building and building improvements | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 50 years |
Land improvements | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 15 years |
Furniture, fixtures and equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 1 year |
Furniture, fixtures and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 20 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Business Combination (Details) - Hospitality Investors Trust $ in Millions | Jun. 30, 2021 USD ($) |
Disclosure of detailed information about business combination [line items] | |
Cash and cash equivalents | $ 50 |
Accounts receivable and other | 74 |
Equity accounted investments | 7 |
Property, plant and equipment | 1,727 |
Total assets | 1,858 |
Debt obligations | (1,319) |
Accounts payable and other | (75) |
Identifiable assets acquired (liabilities assumed) | 464 |
Consideration | 464 |
Contingent consideration | $ 8 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Narratives (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Disclosure of detailed information about investment property | |||
Properties. fair value | $ 5.7 | $ 2.5 | |
Hospitality Investors Trust | |||
Disclosure of detailed information about investment property | |||
Percentage of voting equity interests acquired | 100% |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of year | $ 5,623 | |
Balance, end of the year | 9,401 | $ 5,623 |
Right-of-use assets | 393 | 204 |
Cost: | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of year | 5,723 | 5,575 |
Additions | 203 | 1,885 |
Disposals | (47) | (323) |
Foreign currency translation | (363) | (83) |
Manager Reorganization | 3,298 | 0 |
Impact of deconsolidation due to loss of control and other | 236 | (1,331) |
Balance, end of the year | 9,050 | 5,723 |
Accumulated fair value changes: | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of year | 763 | 488 |
Revaluation (losses) gains, net | 727 | 930 |
Disposals | (1) | (65) |
Provision for impairment | (93) | 7 |
Foreign currency translation | (49) | (4) |
Impact of deconsolidation due to loss of control and other | 29 | (593) |
Balance, end of the year | 1,376 | 763 |
Accumulated depreciation: | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Balance, beginning of year | (863) | (828) |
Disposals | 44 | 84 |
Depreciation | 279 | 294 |
Foreign currency translation | 76 | 13 |
Impact of deconsolidation due to loss of control and other | (3) | 162 |
Balance, end of the year | $ (1,025) | $ (863) |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | $ 946 | $ 832 |
Projection period | 10 years | |
Growth rate used to extrapolate cash flow projections | 3% | |
Recoverable amount of asset or cash-generating unit | $ 4,980 | 5,623 |
Amount by which unit's recoverable amount exceeds its carrying amount | $ 4,124 | $ 4,391 |
TCR | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate (percent) | 6.20% | 6.60% |
Terminal capitalization rate, percent, assigned to key assumption for unit's recoverable amount to be equal to carrying amount | 8% | 9.40% |
DR | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate (percent) | 10.30% | 9.30% |
Discount rate, percent, assigned to key assumption for unit's recoverable amount to be equal to carrying amount | 11% | 12.70% |
Long-Term Growth Rate | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Long-term growth rate, percent, assigned to key assumption for unit's recoverable amount to be equal to carrying amount | (2.00%) | (2.70%) |
Center Parcs UK | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | $ 728 | $ 815 |
IFC Seoul | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | $ 207 | $ 0 |
INTANGIBLE ASSETS - Narratives
INTANGIBLE ASSETS - Narratives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ 966 | $ 964 | $ 982 |
Trademark assets | Center Parcs UK | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ 859 | $ 964 |
INTANGIBLE ASSETS - Useful Life
INTANGIBLE ASSETS - Useful Life (Details) - Other | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 4 years |
Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 88 years |
INTANGIBLE ASSETS - Components
INTANGIBLE ASSETS - Components Of Partnership Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ 966 | $ 964 | $ 982 |
Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 1,017 | 1,012 | |
Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ (51) | $ (48) |
INTANGIBLE ASSETS - Reconciliat
INTANGIBLE ASSETS - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets other than goodwill | $ 964 | $ 982 |
Acquisitions | 5 | 6 |
Amortization | (8) | (14) |
Manager Reorganization | 108 | 0 |
Foreign currency translation | (103) | (10) |
Intangible assets other than goodwill | $ 966 | $ 964 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Securities - FVTPL | $ 2,523 | $ 2,200 |
Derivative assets | 170 | 111 |
Securities - FVTOCI | 69 | 108 |
Restricted cash | 584 | 356 |
Inventory | 1,267 | 652 |
Accounts receivable | 464 | 2 |
Other | 140 | 149 |
Total other non-current assets | $ 5,217 | $ 3,578 |
OTHER NON-CURRENT ASSETS - Narr
OTHER NON-CURRENT ASSETS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Securities - FVTPL | $ 2,523 | $ 2,200 |
BSREP III | ||
Disclosure of financial assets [line items] | ||
Securities - FVTPL | $ 1,183 | $ 1,154 |
ACCOUNTS RECEIVABLE AND OTHER -
ACCOUNTS RECEIVABLE AND OTHER - Components (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Derivative assets | $ 124 | $ 33 |
Accounts receivable | 787 | 852 |
Restricted cash and deposits | 342 | 331 |
Prepaid expenses | 405 | 367 |
Inventory | 176 | 574 |
Other current assets | 342 | 119 |
Total accounts receivable and other | 2,176 | 2,276 |
Allowance account for credit losses of financial assets | $ 63 | $ 112 |
HELD FOR SALE - Summary (Detail
HELD FOR SALE - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | |||
Investment properties | $ 68,585 | $ 64,613 | $ 72,610 |
Property, plant and equipment | 9,401 | 5,623 | |
Equity accounted investments | 19,943 | 20,807 | 19,719 |
Accounts receivable and other | 2,176 | 2,276 | |
Total assets | 112,516 | 112,004 | |
Debt obligations | 58,562 | 55,327 | |
Accounts payable and other liabilities | 3,877 | 3,762 | |
Total liabilities | 70,779 | 66,999 | |
Held for sale | |||
Disclosure of financial assets [line items] | |||
Investment properties | 300 | 8,037 | |
Property, plant and equipment | 0 | 1,749 | |
Equity accounted investments | 276 | 0 | |
Accounts receivable and other | 0 | 724 | |
Total assets | 576 | 10,510 | $ 588 |
Debt obligations | 0 | 3,006 | |
Accounts payable and other liabilities | 0 | 76 | |
Total liabilities | $ 0 | $ 3,082 |
HELD FOR SALE - Reconciliation
HELD FOR SALE - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial assets [line items] | ||
Balance, beginning of year | $ 112,004 | |
Balance, end of year | 112,516 | $ 112,004 |
Held for sale | ||
Disclosure of financial assets [line items] | ||
Balance, beginning of year | 10,510 | 588 |
Reclassification to/(from) assets held for sale, net | 1,208 | 12,561 |
Disposals | (11,110) | (2,610) |
Fair value adjustments | 261 | 0 |
Foreign currency translation | (290) | (57) |
Other | (3) | 28 |
Balance, end of year | $ 576 | $ 10,510 |
HELD FOR SALE - Narratives (Det
HELD FOR SALE - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Non-current Assets Held For Sale And Discontinued Operations [Abstract] | ||||
Proceeds from sales of investment property | $ 2,229 | $ 161 | $ 365 | $ 1,481 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) € in Millions, ₩ in Millions, ₨ in Millions, ¥ in Millions, £ in Millions, R$ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 KRW (₩) | Dec. 31, 2022 AUD ($) | Dec. 31, 2022 INR (₨) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 KRW (₩) | Dec. 31, 2021 AUD ($) | Dec. 31, 2021 INR (₨) | Dec. 31, 2021 BRL (R$) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 EUR (€) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 58,562 | $ 55,327 | ||||||||||||||||
Deferred financing costs | (302) | (249) | ||||||||||||||||
Current | 19,704 | 13,742 | ||||||||||||||||
Non-current | $ 38,858 | 38,579 | ||||||||||||||||
Percent of debt representing non-recourse mortgages | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | |||||||||
U.S. dollars | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 44,049 | 37,559 | ||||||||||||||||
British pounds | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 5,079 | 7,030 | £ 4,203 | £ 5,196 | ||||||||||||||
Canadian dollars | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 4,027 | 4,419 | $ 5,455 | $ 5,585 | ||||||||||||||
South Korean Won | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 1,808 | 1,918 | ₩ 2,280,000 | ₩ 2,280,000 | ||||||||||||||
Australian dollars | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 1,300 | 2,014 | $ 1,908 | $ 2,773 | ||||||||||||||
Indian Rupee | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 1,777 | 1,801 | ₨ 146,860 | ₨ 134,378 | ||||||||||||||
Brazilian reais | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 554 | 476 | R$ 2888 | R$ 2655 | ||||||||||||||
Chinese Yuan | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 174 | 69 | ¥ 1,204 | ¥ 437 | ||||||||||||||
Euros | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 96 | 290 | € 90 | € 255 | ||||||||||||||
Held for sale | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | 0 | 3,006 | ||||||||||||||||
Secured Debt | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Secured debt obligation | 16,155 | 26,248 | ||||||||||||||||
Secured Debt | Variable rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Secured debt obligation | $ 29,416 | $ 20,341 | ||||||||||||||||
Secured Debt | Weighted average | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 4.47% | 4.31% | 4.47% | 4.47% | 4.47% | 4.47% | 4.47% | 4.47% | 4.47% | 4.47% | 4.31% | 4.31% | 4.31% | 4.31% | 4.31% | 4.31% | 4.31% | 4.31% |
Secured Debt | Weighted average | Variable rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 6.99% | 3.29% | 6.99% | 6.99% | 6.99% | 6.99% | 6.99% | 6.99% | 6.99% | 6.99% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% |
Brookfield Property Partners’ credit facilities | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 3,090 | $ 2,257 | ||||||||||||||||
Brookfield Property Partners’ credit facilities | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 6.19% | 2% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 2% | 2% | 2% | 2% | 2% | 2% | 2% | 2% |
Brookfield Property Partners’ corporate bonds | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 1,847 | $ 1,982 | ||||||||||||||||
Brookfield Property Partners’ corporate bonds | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 4.12% | 4.11% | 4.12% | 4.12% | 4.12% | 4.12% | 4.12% | 4.12% | 4.12% | 4.12% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% |
Brookfield Properties Retail Holding LLC term debt | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 1,514 | $ 1,869 | ||||||||||||||||
Brookfield Properties Retail Holding LLC term debt | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 6.90% | 2.61% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% | 2.61% | 2.61% | 2.61% | 2.61% | 2.61% | 2.61% | 2.61% | 2.61% |
Brookfield Properties Retail Holding LLC senior secured notes | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 1,695 | $ 1,695 | ||||||||||||||||
Brookfield Properties Retail Holding LLC senior secured notes | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% |
Brookfield Properties Retail Holding LLC corporate facility | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 320 | $ 70 | ||||||||||||||||
Brookfield Properties Retail Holding LLC corporate facility | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 7.17% | 3.10% | 7.17% | 7.17% | 7.17% | 7.17% | 7.17% | 7.17% | 7.17% | 7.17% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% |
Brookfield Properties Retail Holding LLC junior subordinated notes | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 192 | $ 206 | ||||||||||||||||
Brookfield Properties Retail Holding LLC junior subordinated notes | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 5.86% | 1.58% | 5.86% | 5.86% | 5.86% | 5.86% | 5.86% | 5.86% | 5.86% | 5.86% | 1.58% | 1.58% | 1.58% | 1.58% | 1.58% | 1.58% | 1.58% | 1.58% |
Subsidiary borrowings | Unsecured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total debt obligations | $ 458 | $ 537 | ||||||||||||||||
Subsidiary borrowings | Unsecured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 7.10% | 3.29% | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% | 3.29% |
Funds subscription credit facilities | Secured Debt | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Secured debt obligation | $ 4,177 | $ 371 | ||||||||||||||||
Funds subscription credit facilities | Secured Debt | Weighted average | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Weighted- average rate | 6.19% | 2.44% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 6.19% | 2.44% | 2.44% | 2.44% | 2.44% | 2.44% | 2.44% | 2.44% | 2.44% |
DEBT OBLIGATIONS - Reconciliati
DEBT OBLIGATIONS - Reconciliation of cash flows from financing activities from debt obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Borrowing [Roll Forward] | |
Debt obligations, beginning of period | $ 55,327 |
Debt obligation issuance, net of repayments | (1,656) |
Non-cash changes in debt obligations | |
Debt from asset acquisitions | 350 |
Assumed by purchaser | (3,836) |
Amortization of deferred financing costs and (premium) discount | 94 |
Foreign currency translation | (1,489) |
Manager Reorganization | 10,274 |
Impact of deconsolidation due to loss of control | (502) |
Debt obligations, end of period | $ 58,562 |
CAPITAL SECURITIES - Schedule o
CAPITAL SECURITIES - Schedule of Capital Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2019 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | |||
Capital securities | $ 600 | $ 61 | |
Capital securities | 2,233 | 3,024 | |
Total capital securities | $ 2,833 | 3,085 | |
Series 2, Class A Preferred Equity Units | |||
Disclosure of classes of share capital [line items] | |||
Cumulative dividend rate | 6.375% | ||
Series 1, Class B Preferred Shares | Prime Rate | |||
Disclosure of classes of share capital [line items] | |||
Percent of dividend rate (percent) | 7,000% | ||
Series 2, Class B Preferred Shares | Prime Rate | |||
Disclosure of classes of share capital [line items] | |||
Percent of dividend rate (percent) | 7,000% | ||
BPO | Prime Rate | |||
Disclosure of classes of share capital [line items] | |||
Weighted- average rate | 95% | ||
FV LTIP units of the Operating Partnership | Series 2, Class A Preferred Equity Units | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 24,000,000 | ||
Cumulative dividend rate | 6.50% | ||
Total capital securities | $ 575 | 565 | |
FV LTIP units of the Operating Partnership | Series 3, Class A Preferred Equity Units | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 24,000,000 | ||
Cumulative dividend rate | 6.75% | ||
Total capital securities | $ 556 | 546 | |
FV LTIP units of the Operating Partnership | Limited Partner Units | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 19,273,654 | ||
Cumulative dividend rate | 6.25% | ||
Total capital securities | $ 474 | 474 | |
BPO | Series 1, Class B Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 3,600,000 | ||
Total capital securities | $ 0 | 0 | |
BPO | Series 2, Class B Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 3,000,000 | ||
Total capital securities | $ 0 | 0 | |
Brookfield Property Split Corp. | Series 1, Senior Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 829,334 | ||
Cumulative dividend rate | 5.25% | ||
Total capital securities | $ 21 | 21 | |
Brookfield Property Split Corp. | Series 2, Senior Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 555,146 | ||
Cumulative dividend rate | 5.75% | ||
Total capital securities | $ 10 | 11 | |
Brookfield Property Split Corp. | Series 3, Senior Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 668,228 | ||
Cumulative dividend rate | 5% | ||
Total capital securities | $ 12 | 15 | |
Brookfield Property Split Corp. | Series 4, Senior Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 541,892 | ||
Cumulative dividend rate | 5.20% | ||
Total capital securities | $ 10 | 12 | |
Rouse Series A Preferred Shares | Series A Preferred Shares | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 5,600,000 | ||
Cumulative dividend rate | 5% | ||
Total capital securities | $ 142 | 142 | |
Brookfield India Real Estate Trust | Preferred equity | |||
Disclosure of classes of share capital [line items] | |||
Units outstanding (in shares) | 155,003,656 | ||
Total capital securities | $ 456 | 440 | |
Dividend rate, percent of distributable cash flows | 90% | ||
Capital Securities – Fund Subsidiaries | |||
Disclosure of classes of share capital [line items] | |||
Total capital securities | $ 577 | $ 859 |
CAPITAL SECURITIES - Narrative
CAPITAL SECURITIES - Narrative (Details) $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 30, 2021 | Dec. 04, 2014 USD ($) tranche $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
Disclosure of classes of share capital [line items] | ||||||
Number of tranches of preferred equity | tranche | 3 | |||||
Average dividend yield | 6.50% | |||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 25.70 | |||||
Total capital securities | $ 2,833 | $ 3,085 | ||||
Dividend payments, interval term | 6 months | |||||
Redemption amount | $ 33 | $ 45 | 38 | $ 49 | ||
Brookfield DTLA Holdings LLC | ||||||
Disclosure of classes of share capital [line items] | ||||||
Total capital securities | 545 | 810 | ||||
Preferred Equity Tranche One | ||||||
Disclosure of classes of share capital [line items] | ||||||
Preferred equity | $ 600 | |||||
Maturity term | 7 years | 7 years | ||||
Preferred Equity, Tranche Two | ||||||
Disclosure of classes of share capital [line items] | ||||||
Preferred equity | $ 600 | |||||
Maturity term | 10 years | |||||
Preferred Equity, Tranche Three | ||||||
Disclosure of classes of share capital [line items] | ||||||
Preferred equity | $ 600 | |||||
Maturity term | 12 years | |||||
Limited Partner Units | FV LTIP units of the Operating Partnership | ||||||
Disclosure of classes of share capital [line items] | ||||||
Total capital securities | $ 474 | 474 | ||||
Liquidation preference (in dollars per share) | $ / shares | $ 25 | |||||
Series A Preferred Shares | Rouse Series A Preferred Shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Total capital securities | $ 142 | 142 | ||||
Preferred equity | ||||||
Disclosure of classes of share capital [line items] | ||||||
Preferred equity | 699 | 699 | ||||
Capital securities | D.C. Fund | ||||||
Disclosure of classes of share capital [line items] | ||||||
Total capital securities | $ 32 | $ 49 |
CAPITAL SECURITIES - Reconcilia
CAPITAL SECURITIES - Reconciliation of cash flows from financing activities from capital securities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Capital Securities [Roll Forward] | |
Capital Securities, beginning of period | $ 3,085 |
Capital securities issued | 57 |
Capital securities redeemed | (3) |
Non-cash changes on capital securities | |
Equity conversion of capital securities | 0 |
Fair value changes | (321) |
Other | 15 |
Capital Securities, end of period | $ 2,833 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Asset (Liability) for Holding Entities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | $ 1,691 | $ 910 | |
Deferred income tax (liabilities): | (4,755) | (4,160) | |
Net deferred tax (liability) | (3,064) | (3,250) | $ (2,858) |
Tax credit carryforwards | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 61 | 77 | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 26 | 31 | |
Properties | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (liabilities): | (4,755) | (4,160) | |
Canada | Non-capital losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 102 | 95 | |
Canada | Capital losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 32 | 34 | |
United States | Non-capital losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 758 | 203 | |
United States | Capital losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 758 | 203 | |
United States | Net operating losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | 570 | 352 | |
Foreign countries | Non-capital losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets: | $ 142 | $ 118 |
INCOME TAXES - Schedule of Chan
INCOME TAXES - Schedule of Changes in Deferred Tax Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | $ 910 | |
Deferred tax (liabilities), beginning balance | (4,160) | |
Net deferred tax (liability), beginning balance | (3,250) | $ (2,858) |
Income | (118) | (355) |
Equity | 0 | 7 |
Acquisitions and Dispositions | 143 | 85 |
OCI | 161 | (101) |
Other Balance Sheet | 0 | (28) |
Deferred tax assets, ending balance | 1,691 | 910 |
Deferred tax liabilities, ending balance | (4,755) | (4,160) |
Net deferred tax (liability), ending balance | (3,064) | (3,250) |
Deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 910 | 772 |
Income | 810 | 164 |
Equity | 0 | 7 |
Acquisitions and Dispositions | 0 | 0 |
OCI | (29) | (5) |
Other Balance Sheet | 0 | (28) |
Deferred tax assets, ending balance | 1,691 | 910 |
Deferred tax (liabilities) | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax (liabilities), beginning balance | (4,160) | (3,630) |
Income | (928) | (519) |
Equity | 0 | 0 |
Acquisitions and Dispositions | 143 | 85 |
OCI | 190 | (96) |
Other Balance Sheet | 0 | 0 |
Deferred tax liabilities, ending balance | $ (4,755) | $ (4,160) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 1,691 | $ 910 |
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 402 | 822 |
Operating loss subject to future amortization | 178 | |
Deductible temporary differences for which no deferred tax liability is recognised | 4,000 | 10,000 |
Increase Decrease Through Business Combinations And Dispositions Deferred Tax Liability Asset | 143 | 85 |
Deferred tax (liabilities) | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Increase Decrease Through Business Combinations And Dispositions Deferred Tax Liability Asset | 143 | 85 |
Canada | Non-capital losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 102 | 95 |
Canada | Capital losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 32 | 34 |
United States | Net operating losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 570 | 352 |
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 24 | 34 |
United States | Non-capital losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 758 | 203 |
United States | Capital losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 758 | 203 |
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 0 | 275 |
Foreign countries | Net operating losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 341 | 513 |
Foreign countries | Non-capital losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 142 | $ 118 |
INCOME TAXES - Schedule of Gros
INCOME TAXES - Schedule of Gross Deductible Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | $ 402 | $ 822 |
Other unrecognized tax attributes | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 37 | 0 |
United States | Net operating losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 24 | 34 |
United States | Capital losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | 0 | 275 |
Foreign countries | Net operating losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized deductible temporary differences, unused tax losses, and unused tax credits | $ 341 | $ 513 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Current income tax expense | $ 163 | $ 134 | $ 58 |
Deferred income tax expense (benefit) | 118 | 356 | 162 |
Income tax expense | $ 281 | $ 490 | $ 220 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Statutory income tax rate | 26% | 26% | 26% |
International operations subject to different tax rates | (7.00%) | (7.00%) | (35.00%) |
Non-controlling interests in income of flow-through entities | (2.00%) | (10.00%) | 8% |
Change in tax rates applicable to temporary differences in other jurisdictions | 4% | 2% | (8.00%) |
Other | 1% | 1% | (3.00%) |
Effective income tax rate | 22% | 12% | (12.00%) |
OTHER NON-CURRENT LIABILITIES -
OTHER NON-CURRENT LIABILITIES - Summary of Other Non-current Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Accounts payable and accrued liabilities | $ 824 | $ 499 |
Lease liabilities | 1,049 | 690 |
Derivative liability | 371 | 277 |
Provisions | 7 | 16 |
Deferred revenue | 21 | 16 |
Loans and notes payable | 171 | 1 |
Total other non-current liabilities | 2,443 | 1,499 |
Interest expense on lease liabilities | $ 58 | $ 59 |
ACCOUNTS PAYABLE AND OTHER LI_3
ACCOUNTS PAYABLE AND OTHER LIABILITIES - Schedule of Accounts Payable and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Accounts payable and accrued liabilities | $ 2,852 | $ 2,021 |
Loans and notes payables | 226 | 899 |
Derivative liabilities | 167 | 221 |
Deferred revenue | 436 | 445 |
Lease liabilities | 163 | 160 |
Other liabilities | 33 | 16 |
Total accounts payable and other liabilities | $ 3,877 | $ 3,762 |
EQUITY - Narratives (Details)
EQUITY - Narratives (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 classOfShare | Dec. 31, 2022 USD ($) classOfShare shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2019 USD ($) $ / shares shares | |
Schedule of Partnership Units [Line Items] | |||||
Number of classes of shares | classOfShare | 5 | ||||
Proceeds from issuance of preferred units | $ | $ 0 | $ 0 | $ 738 | ||
Number Of Classes Of Shares Redeemed | classOfShare | 2 | ||||
Class A shares of Brookfield Properties Retail Holding LLC | |||||
Schedule of Partnership Units [Line Items] | |||||
Exchange LP Units exchanged (in shares) | 8,922,243 | ||||
Repurchase of BPR units (in shares) | 841,950 | ||||
BPYU Units issued (in shares) | 377,209 | ||||
Forfeitures (in shares) | 6,091 | ||||
Preferred equity | |||||
Schedule of Partnership Units [Line Items] | |||||
Proceeds from issuance of preferred units | $ | 288 | $ 722 | |||
Share issue related cost | $ | $ 9 | $ 24 | |||
Issued capital | $ | $ 699 | $ 699 | |||
Series 1, Class A Preferred Equity Units | |||||
Schedule of Partnership Units [Line Items] | |||||
Number of shares/units issued | 11,500,000 | 7,360,000 | |||
Par value per share (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Coupon rate (as a percentage) | 6.50% | ||||
Series 2, Class A Preferred Equity Units | |||||
Schedule of Partnership Units [Line Items] | |||||
Number of shares/units issued | 10,000,000 | ||||
Par value per share (in dollars per share) | $ / shares | $ 25 | ||||
Coupon rate (as a percentage) | 6.375% | ||||
5.750% Class A Cumulative Redeemable Perpetual Units, Series 3 | |||||
Schedule of Partnership Units [Line Items] | |||||
Coupon rate (as a percentage) | 5.75% | ||||
General partner | |||||
Schedule of Partnership Units [Line Items] | |||||
Proportion of voting rights held by non-controlling interests | 1% | ||||
Units outstanding (in shares) | 139,000 | 139,000 | 139,000 | 139,000 | |
Exchange LP Units exchanged (in shares) | 0 | 0 | 0 | ||
Limited partners | |||||
Schedule of Partnership Units [Line Items] | |||||
Proportion of voting rights held by non-controlling interests | 49% | ||||
Units outstanding (in shares) | 298,987,000 | 298,987,000 | 435,980,000 | 439,802,000 | |
Exchange LP Units exchanged (in shares) | 0 | 128,000 | 169,000 | ||
Redeemable and Exchangeable Units | |||||
Schedule of Partnership Units [Line Items] | |||||
Units outstanding (in shares) | 529,473,303 | 529,473,303 | 451,365,017 | ||
Special LP Units | |||||
Schedule of Partnership Units [Line Items] | |||||
Units outstanding (in shares) | 4,759,997 | 4,759,997 | 4,759,997 | ||
FV LTIP of the Operating Partnership | |||||
Schedule of Partnership Units [Line Items] | |||||
Units outstanding (in shares) | 1,571,709 | 1,818,717 | 1,899,661 | ||
Award vesting period | 5 years |
EQUITY - Schedule of Changes In
EQUITY - Schedule of Changes In Equity (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
General partner | |||
Reconciliation of number of shares outstanding [abstract] | |||
Beginning of year (in shares) | 139 | 139 | 139 |
Privatization (in shares) | 0 | 0 | |
Exchange LP Units exchanged (in shares) | 0 | 0 | 0 |
Distribution reinvestment program (in shares) | 0 | 0 | 0 |
Issued under unit-based compensation plan (in shares) | 0 | 0 | 0 |
LP units issued (in shares) | 0 | 0 | 0 |
Repurchases of LP Units (in shares) | 0 | 0 | 0 |
End of year (in shares) | 139 | 139 | 139 |
Limited partners | |||
Reconciliation of number of shares outstanding [abstract] | |||
Beginning of year (in shares) | 298,987 | 435,980 | 439,802 |
Privatization (in shares) | 0 | (146,278) | 0 |
Exchange LP Units exchanged (in shares) | 0 | 128 | 169 |
Distribution reinvestment program (in shares) | 0 | 123 | 998 |
Issued under unit-based compensation plan (in shares) | 0 | 112 | 0 |
LP units issued (in shares) | 0 | 0 | 59,497 |
Repurchases of LP Units (in shares) | 0 | 0 | (76,066) |
End of year (in shares) | 298,987 | 298,987 | 435,980 |
Limited partners | BPR | |||
Reconciliation of number of shares outstanding [abstract] | |||
Exchange LP Units exchanged (in shares) | 0 | 8,922 | 11,580 |
EQUITY - Schedule of Changes _2
EQUITY - Schedule of Changes in LP Units (Details) - Exchange LP Units - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of number of shares outstanding [abstract] | |||
Beginning of year (in shares) | 0 | 2,714 | 2,883 |
Exchange LP Units exchanged (in shares) | 0 | (128) | (169) |
Privatization (in shares) | 0 | (2,586) | 0 |
End of year (in shares) | 0 | 0 | 2,714 |
EQUITY - Schedule of Distributi
EQUITY - Schedule of Distributions Made (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Partnership Units [Line Items] | |||
Limited partners | $ 4,924 | $ 4,173 | $ 2,167 |
Total distributions | $ 1,169 | $ 878 | $ 1,244 |
Per unit (in dollars per share) | $ 1.40 | $ 1.05 | $ 1.33 |
Limited partners | |||
Schedule of Partnership Units [Line Items] | |||
Limited partners | $ 419 | $ 358 | $ 583 |
Redeemable/ exchangeable and special limited partnership units | Non-controlling interests | |||
Schedule of Partnership Units [Line Items] | |||
Limited partners | 748 | 504 | 587 |
Total distributions | 743 | 499 | 581 |
Special LP Units | Non-controlling interests | |||
Schedule of Partnership Units [Line Items] | |||
Total distributions | 5 | 5 | 6 |
Exchange LP Units | Non-controlling interests | |||
Schedule of Partnership Units [Line Items] | |||
Total distributions | 0 | 1 | 4 |
FV LTIP of the Operating Partnership | Non-controlling interests | |||
Schedule of Partnership Units [Line Items] | |||
Total distributions | 2 | 2 | 2 |
BPR | Non-controlling interests | |||
Schedule of Partnership Units [Line Items] | |||
Total distributions | $ 0 | $ 13 | $ 68 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Partnership Units [Line Items] | ||
Redeemable/exchangeable and special limited partnership units | $ 14,688 | $ 15,736 |
Interest of others in operating subsidiaries and properties: | ||
Preferred shares held by Brookfield Corporation | 2,490 | 1,015 |
Preferred equity of subsidiaries | 2,772 | 2,750 |
Non-controlling interests in subsidiaries and properties | 12,822 | 15,941 |
Total interests of others in operating subsidiaries and properties | 18,084 | 19,706 |
Total non-controlling interests | 32,817 | 35,497 |
FV LTIP of the Operating Partnership | ||
Schedule of Partnership Units [Line Items] | ||
Exchange LP Units | $ 45 | $ 55 |
COMMERCIAL PROPERTY REVENUE (De
COMMERCIAL PROPERTY REVENUE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue [abstract] | |||
Base rent | $ 3,153 | $ 3,462 | $ 3,613 |
Straight-line rent | 25 | 25 | 133 |
Lease termination | 27 | 68 | 27 |
Other lease income | 662 | 662 | 627 |
Other revenue from tenants | 982 | 946 | 997 |
Total commercial property revenue | 4,849 | 5,163 | $ 5,397 |
Rent abatements due to shutdown | 13 | 82 | |
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 20,758 | 20,327 | |
Less than 1 year | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 2,933 | 2,776 | |
1-5 years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 9,266 | 9,029 | |
More than 5 years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | $ 8,559 | $ 8,522 | |
Bottom of range | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Operating lease, term | 1 year | ||
Top of range | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Operating lease, term | 15 years |
HOSPITALITY REVENUE (Details)
HOSPITALITY REVENUE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from hotel operations | $ 1,511 | $ 1,073 | $ 702 |
Room, food and beverage | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from hotel operations | 1,300 | 931 | 562 |
Gaming, and other leisure activities | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from hotel operations | 175 | 111 | 106 |
Other hospitality revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from hotel operations | $ 36 | $ 31 | $ 34 |
INVESTMENT AND OTHER REVENUE (D
INVESTMENT AND OTHER REVENUE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue [abstract] | |||
Investment income | $ 518 | $ 476 | $ 177 |
Fee revenue | 285 | 255 | 228 |
Dividend income | 114 | 77 | 44 |
Interest income and other | 88 | 56 | 45 |
Total investment and other revenue | $ 1,005 | $ 864 | $ 494 |
DIRECT COMMERCIAL PROPERTY EX_3
DIRECT COMMERCIAL PROPERTY EXPENSE - Components of Direct Commercial Property Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about investment property | |||
Employee compensation and benefits | $ 376 | $ 360 | $ 385 |
Direct commercial property expense | 1,852 | 1,931 | 1,975 |
Loss (recovery) allowance in commercial property operating expenses | (11) | 49 | 99 |
Commercial Property | |||
Disclosure of detailed information about investment property | |||
Property maintenance | 727 | 713 | 679 |
Real estate taxes | 548 | 580 | 610 |
Employee compensation and benefits | 148 | 155 | 158 |
Depreciation and amortization | 29 | 39 | 39 |
Lease expense | 11 | 11 | 16 |
Other | $ 389 | $ 433 | $ 473 |
DIRECT HOSPITALITY EXPENSE - Co
DIRECT HOSPITALITY EXPENSE - Components of Direct Hospitality Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about investment property | |||
Employee compensation and benefits | $ 376 | $ 360 | $ 385 |
Total direct hospitality expense | 1,141 | 910 | 908 |
Hospitality | |||
Disclosure of detailed information about investment property | |||
Employee compensation and benefits | 230 | 160 | 180 |
Cost of food, beverage, and retail goods sold | 245 | 158 | 142 |
Depreciation and amortization | 258 | 269 | 280 |
Maintenance and utilities | 105 | 99 | 112 |
Marketing and advertising | 26 | 23 | 28 |
Other | $ 277 | $ 201 | $ 166 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of General And Administrative Expense [Abstract] | |||
Employee compensation and benefits | $ 376 | $ 360 | $ 385 |
Management fees | 281 | 241 | 116 |
Transaction costs | 26 | 48 | 24 |
Professional fees | 92 | 97 | 98 |
Facilities and technology fees | 43 | 47 | 54 |
Other | 112 | 131 | 139 |
Total general and administrative expense | $ 930 | $ 924 | $ 816 |
FAIR VALUE GAINS (LOSSES), NE_2
FAIR VALUE GAINS (LOSSES), NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Fair Value [Line Items] | |||
Gains (losses) on fair value adjustment, investment property | $ (1,058) | $ 1,962 | |
Incentive fees | (45) | (24) | $ (16) |
Financial instruments and other | 1,123 | 583 | 82 |
Total fair value (losses) gains, net | 20 | 2,521 | (1,322) |
Losses on change In fair value of and right-of-use investment properties | 2 | 5 | 16 |
Commercial properties | |||
Disclosure of Fair Value [Line Items] | |||
Gains (losses) on fair value adjustment, investment property | (1,122) | 1,791 | (1,607) |
Commercial developments | |||
Disclosure of Fair Value [Line Items] | |||
Gains (losses) on fair value adjustment, investment property | $ 64 | $ 171 | $ 219 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign currency translation | |||
Unrealized foreign currency translation (losses) gains in respect of foreign operations | $ (1,233) | $ (467) | $ 87 |
Reclassification of realized foreign currency translation gains to net income on disposition of foreign operations | 189 | 27 | 0 |
Gains (losses) on hedges of net investments in foreign operations | 539 | 163 | 650 |
Foreign currency translation | (505) | (277) | 737 |
Cash flow hedges | |||
Gains on derivatives designated as cash flow hedges, net of income tax expense (benefit) of $(9) million (2021 - $(12) million; 2020 - $4 million) | 49 | 95 | 116 |
Cash flow hedges | 49 | 95 | 116 |
Equity accounted investments | |||
Share of unrealized foreign currency translations (losses) gains in respect of foreign operations | (1) | (2) | 4 |
Share of gains (losses) on derivatives designated as cash flow hedges | 129 | 56 | (62) |
Equity accounted investments | 128 | 54 | (58) |
Items that will not be reclassified to net income: | |||
Unrealized (losses) gains on securities - FVTOCI, net of income tax (expense) benefit of $(2) million (2021 - $(59) million; 2020 - $11 million) | (26) | (33) | 17 |
Share of revaluation surplus (losses) on equity accounted investments | 113 | 354 | (206) |
Net remeasurement gains (losses) on defined benefit plan | 1 | 0 | (1) |
Revaluation surplus (loss), net of income tax (expense) benefit of $(72) million (2021 –$(120) million; 2020 – $49 million) | 655 | 811 | (191) |
Items that will not be reclassified to net income: | 743 | 1,132 | (381) |
Total other comprehensive income | $ 415 | $ 1,004 | $ 414 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |||
Income tax relating to cash flow hedges included in other comprehensive income | $ (9) | $ (12) | $ 4 |
Income tax relating to investments in equity instruments included in other comprehensive income | 2 | 59 | (11) |
Income tax relating to revaluation surplus | $ 72 | $ 120 | $ (49) |
OBLIGATIONS, GUARANTEES, CONT_2
OBLIGATIONS, GUARANTEES, CONTINGENCIES AND OTHER (Details) € in Millions, $ in Millions, $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 AUD ($) | Oct. 31, 2020 USD ($) | Oct. 31, 2020 EUR (€) | Jan. 31, 2019 USD ($) | Sep. 30, 2018 USD ($) | Nov. 30, 2017 USD ($) | Apr. 30, 2016 USD ($) | Dec. 31, 2013 USD ($) |
Disclosure of contingent liabilities [line items] | |||||||||
Capital commitments | $ 345 | ||||||||
New York, Brooklyn, Dallas, Camarillo, Washington DC and Houston | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Capital commitments | 203 | ||||||||
Australia | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Capital commitments | 92 | $ 135 | |||||||
Brookfield Corporation | BSREP I | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | $ 4,400 | ||||||||
Contributed commitments | $ 1,300 | ||||||||
Unfulfilled commitments | 147 | ||||||||
Brookfield Corporation | BSREP II | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | $ 9,000 | ||||||||
Contributed commitments | $ 2,300 | ||||||||
Unfulfilled commitments | 644 | ||||||||
Brookfield Corporation | BREF | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | $ 2,900 | ||||||||
Contributed commitments | $ 400 | ||||||||
Unfulfilled commitments | 157 | ||||||||
Brookfield Corporation | VAMF III | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | $ 1,000 | ||||||||
Contributed commitments | $ 300 | ||||||||
Unfulfilled commitments | 159 | ||||||||
Brookfield Corporation | BSREP III | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | $ 15,000 | ||||||||
Contributed commitments | $ 1,000 | ||||||||
Unfulfilled commitments | 347 | ||||||||
Brookfield Corporation | BSREP IV | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | 15,300 | ||||||||
Contributed commitments | 3,500 | ||||||||
Unfulfilled commitments | $ 2,800 | ||||||||
Brookfield Corporation | Brookfield European Real Estate Partnership Fund | |||||||||
Disclosure of contingent liabilities [line items] | |||||||||
Consideration | $ 663 | € 619 | |||||||
Contributed commitments | $ 107 | € 100 |
LIQUIDITY AND CAPITAL MANAGEM_3
LIQUIDITY AND CAPITAL MANAGEMENT - Contractual Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liquidity and Capital Management [Abstract] | ||
Capital | $ 103,000 | $ 100,000 |
Percent of debt representing non-recourse mortgages | 2% | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | $ 58,864 | |
Total capital securities | 2,833 | 3,085 |
Lease obligations | 3,790 | |
Commitments | 345 | |
Debt obligations | 8,872 | |
Capital securities | 1,169 | |
Interest rate swaps | (75) | |
Borrowing costs capitalised | 302 | $ 249 |
Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | 19,777 | |
Total capital securities | 600 | |
Lease obligations | 51 | |
Commitments | 275 | |
Debt obligations | 3,072 | |
Capital securities | 152 | |
Interest rate swaps | (16) | |
1 Year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | 13,486 | |
Total capital securities | 575 | |
Lease obligations | 48 | |
Commitments | 68 | |
Debt obligations | 1,932 | |
Capital securities | 154 | |
Interest rate swaps | (16) | |
2 Years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | 7,906 | |
Total capital securities | 172 | |
Lease obligations | 48 | |
Commitments | 2 | |
Debt obligations | 1,329 | |
Capital securities | 118 | |
Interest rate swaps | (15) | |
3 Years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | 4,189 | |
Total capital securities | 555 | |
Lease obligations | 48 | |
Commitments | 0 | |
Debt obligations | 982 | |
Capital securities | 109 | |
Interest rate swaps | (13) | |
4 Years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | 7,991 | |
Total capital securities | 0 | |
Lease obligations | 48 | |
Commitments | 0 | |
Debt obligations | 657 | |
Capital securities | 73 | |
Interest rate swaps | (15) | |
More than 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt obligations | 5,515 | |
Total capital securities | 931 | |
Lease obligations | 3,547 | |
Commitments | 0 | |
Debt obligations | 900 | |
Capital securities | 563 | |
Interest rate swaps | $ 0 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of financial assets | $ 9,805 | $ 7,070 |
Fair value of financial liabilities | $ (66,006) | $ (62,406) |
Net investment hedges | Interest rate caps of US$ LIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 2,042 | 9,590 |
Fair value of financial assets | $ 20 | $ 0 |
Net investment hedges | Interest rate caps of US$ LIBOR debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 2.50% | 2.50% |
Net investment hedges | Interest rate caps of US$ LIBOR debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 500% | 500% |
Net investment hedges | Interest rate caps of US$ SOFR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 3,989 | |
Fair value of financial assets | $ 74 | |
Net investment hedges | Interest rate caps of US$ SOFR debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 1% | |
Net investment hedges | Interest rate caps of US$ SOFR debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 600% | |
Net investment hedges | Interest rate swaps of US$ SOFR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 2,500 | |
Fair value of financial assets | $ 3 | |
Net investment hedges | Interest rate swaps of US$ SOFR debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 370% | |
Net investment hedges | Interest rate caps of £ SONIA debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 1,024 | |
Fair value of financial assets | $ 41 | |
Net investment hedges | Interest rate caps of £ SONIA debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 1% | |
Net investment hedges | Interest rate caps of £ SONIA debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 250% | |
Net investment hedges | Interest rate swaps of £ SONIA debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 804 | 974 |
Rates | 2.70% | 2% |
Fair value of financial assets | $ 20 | $ 5 |
Net investment hedges | Interest rate caps of € EURIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 96 | |
Rates | 1.30% | |
Fair value of financial assets | $ 0 | |
Net investment hedges | Interest rate caps of C$ LIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 177 | |
Fair value of financial assets | $ 2 | |
Net investment hedges | Interest rate caps of C$ LIBOR debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 4% | |
Net investment hedges | Interest rate swaps of AUD BBSW/BBSY debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 132 | 422 |
Fair value of financial assets | $ 0 | $ 0 |
Net investment hedges | Interest rate swaps of AUD BBSW/BBSY debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 5.30% | 0.80% |
Net investment hedges | Interest rate swaps of AUD BBSW/BBSY debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 580% | 160% |
Net investment hedges | Interest rate swaps of US$ LIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 2,130 | |
Fair value of financial liabilities | $ (50) | |
Net investment hedges | Interest rate swaps of US$ LIBOR debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 1% | |
Net investment hedges | Interest rate swaps of US$ LIBOR debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 260% | |
Net investment hedges | Interest rate caps of £ LIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 2,301 | |
Fair value of financial assets | $ 0 | |
Net investment hedges | Interest rate caps of £ LIBOR debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 1% | |
Net investment hedges | Interest rate caps of £ LIBOR debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 250% | |
Net investment hedges | Interest rate caps of € EURIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 102 | |
Rates | 1.30% | |
Fair value of financial assets | $ 0 | |
Net investment hedges | Interest rate caps of C$ LIBOR debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 240 | |
Rates | 2% | |
Fair value of financial assets | $ 0 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | |||
Fair value gains (losses) | $ 1,123 | $ 583 | $ 82 |
Portfolio investment horizon | 10 years | ||
Net investment hedges | |||
Disclosure of detailed information about financial instruments [line items] | |||
Hedge ineffectiveness recorded in earnings | $ 0 | 0 | |
Forward starting interest rate swap | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value gains (losses) | $ 0 | $ (31) |
FINANCIAL INSTRUMENTS - Deriv_2
FINANCIAL INSTRUMENTS - Derivatives, Net Investment Hedges (Details) € in Millions, ₩ in Millions, ₨ in Millions, ¥ in Millions, £ in Millions, R$ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2022 USD ($) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 EUR (€) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 GBP (£) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 AUD ($) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 CNY (¥) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 BRL (R$) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 KRW (₩) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 INR (₨) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2022 CAD ($) ₩ / $ € / $ ¥ / $ $ / shares $ / $ £ / $ R$ / $ | Dec. 31, 2021 USD ($) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 EUR (€) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 GBP (£) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 AUD ($) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 CNY (¥) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 KRW (₩) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 INR (₨) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ | Dec. 31, 2021 CAD ($) £ / $ ¥ / $ $ / shares ₩ / $ € / $ $ / $ R$ / $ |
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Fair value of financial assets | $ 9,805 | $ 7,070 | |||||||||||||||
Fair value of financial liabilities | (66,006) | (62,406) | |||||||||||||||
Net investment hedges | Euros | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | € | € 105 | € 389 | |||||||||||||||
Fair value of financial liabilities | $ (7) | $ (2) | |||||||||||||||
Net investment hedges | Euros | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | € / $ | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
Net investment hedges | Euros | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | € / $ | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 |
Net investment hedges | British pounds | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | £ | £ 1,319 | £ 4,395 | |||||||||||||||
Fair value of financial liabilities | $ (243) | $ (89) | |||||||||||||||
Net investment hedges | British pounds | Hedging Instrument Two | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | £ | £ 374 | £ 90 | |||||||||||||||
Rates | £ / $ | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | ||||||||
Fair value of financial assets | $ 9 | ||||||||||||||||
Fair value of financial liabilities | $ (16) | ||||||||||||||||
Net investment hedges | British pounds | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | £ / $ | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 |
Net investment hedges | British pounds | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | £ / $ | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 |
Net investment hedges | British pounds | Top of range | Hedging Instrument Two | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | £ / $ | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | 0.91 | |||||||||
Net investment hedges | Australian dollars | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | $ 0 | $ 974 | |||||||||||||||
Fair value of financial liabilities | $ (1) | $ (14) | |||||||||||||||
Net investment hedges | Australian dollars | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | $ / $ | 1.49 | 1.49 | 1.49 | 1.49 | 1.49 | 1.49 | 1.49 | 1.49 | 1.49 | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 |
Net investment hedges | Australian dollars | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | $ / $ | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.41 | 1.41 | 1.41 | 1.41 | 1.41 | 1.41 | 1.41 | 1.41 |
Net investment hedges | Chinese Yuan | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | ¥ | ¥ 2,703 | ¥ 1,596 | |||||||||||||||
Fair value of financial liabilities | $ (9) | $ (7) | |||||||||||||||
Net investment hedges | Chinese Yuan | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | ¥ / $ | 6.59 | 6.59 | 6.59 | 6.59 | 6.59 | 6.59 | 6.59 | 6.59 | 6.59 | 6.68 | 6.68 | 6.68 | 6.68 | 6.68 | 6.68 | 6.68 | 6.68 |
Net investment hedges | Chinese Yuan | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | ¥ / $ | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 | 6.99 |
Net investment hedges | Brazil Real | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | R$ 908 | $ 2,546 | |||||||||||||||
Fair value of financial liabilities | $ (22) | $ (5) | |||||||||||||||
Net investment hedges | Brazil Real | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | R$ / $ | 6.24 | 6.24 | 6.24 | 6.24 | 6.24 | 6.24 | 6.24 | 6.24 | 6.24 | 5.87 | 5.87 | 5.87 | 5.87 | 5.87 | 5.87 | 5.87 | 5.87 |
Net investment hedges | Brazil Real | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | R$ / $ | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 | 6.54 |
Net investment hedges | South Korean Won | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | ₩ | ₩ 820,473 | ₩ 720,095 | |||||||||||||||
Fair value of financial assets | $ 4 | ||||||||||||||||
Fair value of financial liabilities | $ (42) | ||||||||||||||||
Net investment hedges | South Korean Won | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | ₩ / $ | 1,283.6 | 1,283.6 | 1,283.6 | 1,283.6 | 1,283.6 | 1,283.6 | 1,283.6 | 1,283.6 | 1,283.6 | 1,165.75 | 1,165.75 | 1,165.75 | 1,165.75 | 1,165.75 | 1,165.75 | 1,165.75 | 1,165.75 |
Net investment hedges | South Korean Won | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | ₩ / $ | 1,410 | 1,410 | 1,410 | 1,410 | 1,410 | 1,410 | 1,410 | 1,410 | 1,410 | 1,197.6 | 1,197.6 | 1,197.6 | 1,197.6 | 1,197.6 | 1,197.6 | 1,197.6 | 1,197.6 |
Net investment hedges | Indian Rupee | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | ₨ | ₨ 84,251 | ₨ 75,690 | |||||||||||||||
Fair value of financial liabilities | $ (5) | $ (27) | |||||||||||||||
Net investment hedges | Indian Rupee | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | ₩ / $ | 79.4 | 79.4 | 79.4 | 79.4 | 79.4 | 79.4 | 79.4 | 79.4 | 79.4 | 76.35 | 76.35 | 76.35 | 76.35 | 76.35 | 76.35 | 76.35 | 76.35 |
Net investment hedges | Indian Rupee | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | ₩ / $ | 89.84 | 89.84 | 89.84 | 89.84 | 89.84 | 89.84 | 89.84 | 89.84 | 89.84 | 87.13 | 87.13 | 87.13 | 87.13 | 87.13 | 87.13 | 87.13 | 87.13 |
Cross currency swaps | Canadian dollars | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Notional amount | $ 2,500 | $ 2,500 | |||||||||||||||
Fair value of financial assets | $ 56 | ||||||||||||||||
Fair value of financial liabilities | $ (45) | ||||||||||||||||
Cross currency swaps | Canadian dollars | Bottom of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | $ / shares | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
Cross currency swaps | Canadian dollars | Top of range | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Rates | $ / shares | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 |
FINANCIAL INSTRUMENTS - Other D
FINANCIAL INSTRUMENTS - Other Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of financial assets | $ 9,805 | $ 7,070 |
Fair value of financial liabilities | (66,006) | (62,406) |
Interest rate risk | Interest rate caps | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | 7,622 | 5,388 |
Fair value of financial assets | $ 30 | $ 0 |
Interest rate risk | Interest rate caps | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 2% | 3% |
Interest rate risk | Interest rate caps | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 6% | 5% |
Interest rate risk | Interest rate swaps on forecasted fixed rate debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | $ 335 | $ 1,285 |
Fair value of financial liabilities | $ (21) | $ (253) |
Interest rate risk | Interest rate swaps on forecasted fixed rate debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 3.60% | 2.70% |
Interest rate risk | Interest rate swaps on forecasted fixed rate debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 5.30% | 6.40% |
Interest rate risk | Interest rate swaps of US$ debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional | $ 1,696 | |
Fair value of financial liabilities | $ (8) | |
Interest rate risk | Interest rate swaps of US$ debt | Bottom of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 0.80% | |
Interest rate risk | Interest rate swaps of US$ debt | Top of range | ||
Disclosure of detailed information about financial instruments [line items] | ||
Rates | 5.10% |
FINANCIAL INSTRUMENTS - Classif
FINANCIAL INSTRUMENTS - Classification and Measurement (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | $ 9,805 | $ 7,070 |
Fair value | 9,805 | 7,070 |
Carrying value | 66,006 | 62,406 |
Fair value | 65,234 | 62,553 |
Debt obligations | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 58,562 | 55,327 |
Fair value | 57,790 | 55,474 |
Capital securities | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 2,256 | 2,226 |
Fair value | 2,256 | 2,226 |
Capital securities - fund subsidiaries | FVTPL | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 577 | 859 |
Fair value | 577 | 859 |
Derivatives | Accounts payable | FVTPL | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 371 | 277 |
Fair value | 371 | 277 |
Derivatives | Accounts payable and other liabilities | FVTPL | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 167 | 221 |
Fair value | 167 | 221 |
Loan payable | Accounts payable | FVTPL | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 171 | 1 |
Fair value | 171 | 1 |
Accounts payable and other | Accounts payable | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 824 | 499 |
Fair value | 824 | 499 |
Accounts payable and other | Accounts payable and other liabilities | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 2,852 | 2,097 |
Fair value | 2,852 | 2,097 |
Loans and notes payable | Accounts payable and other liabilities | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 226 | 899 |
Fair value | 226 | 899 |
Held for sale | Debt obligations | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 0 | 3,006 |
Held for sale | Accounts payable and other liabilities | Other liabilities | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 0 | 76 |
Loans and notes receivable | Amortized cost | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 686 | 225 |
Fair value | 686 | 225 |
Other non-current assets | FVTPL | Equity investments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 2,523 | 2,200 |
Fair value | 2,523 | 2,200 |
Other non-current assets | FVTPL | Derivatives | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 170 | 111 |
Fair value | 170 | 111 |
Other non-current assets | Amortized cost | Accounts receivable | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 464 | 2 |
Fair value | 464 | 2 |
Other non-current assets | Amortized cost | Restricted cash | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 584 | 356 |
Fair value | 584 | 356 |
Other non-current assets | FVTOCI | Equity investments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 69 | 108 |
Fair value | 69 | 108 |
Accounts receivable and other | FVTPL | Equity investments | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 36 | 0 |
Fair value | 36 | 0 |
Accounts receivable and other | FVTPL | Derivatives | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 124 | 33 |
Fair value | 124 | 33 |
Accounts receivable and other | Amortized cost | Accounts receivable | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 787 | 1,128 |
Fair value | 787 | 1,128 |
Accounts receivable and other | Amortized cost | Restricted cash | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 342 | 331 |
Fair value | 342 | 331 |
Accounts receivable and other | Amortized cost | Held for sale | Accounts receivable | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 0 | 276 |
Cash and cash equivalents | Amortized cost | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Carrying value | 4,020 | 2,576 |
Fair value | $ 4,020 | $ 2,576 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total financial assets | $ 9,805 | $ 7,070 | |
Total capital securities | 2,833 | 3,085 | |
Total financial liabilities | 66,006 | 62,406 | |
Level 3 | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Total financial assets | 2,277 | 2,060 | $ 1,682 |
Total financial liabilities | 577 | 859 | $ 863 |
Fair value | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Securities designated as FVTPL | 2,523 | 2,200 | |
Securities designated as FVTOCI | 105 | 108 | |
Derivative assets | 294 | 144 | |
Total financial assets | 2,922 | 2,452 | |
Total capital securities | 577 | 859 | |
Derivative financial liabilities | 538 | 498 | |
Total financial liabilities | 1,115 | 1,357 | |
Fair value | Level 1 | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Securities designated as FVTPL | 10 | 17 | |
Securities designated as FVTOCI | 36 | 13 | |
Derivative assets | 0 | 0 | |
Total financial assets | 46 | 30 | |
Total capital securities | 0 | 0 | |
Derivative financial liabilities | 0 | 0 | |
Total financial liabilities | 0 | 0 | |
Fair value | Level 2 | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Securities designated as FVTPL | 305 | 218 | |
Securities designated as FVTOCI | 0 | 0 | |
Derivative assets | 294 | 144 | |
Total financial assets | 599 | 362 | |
Total capital securities | 0 | 0 | |
Derivative financial liabilities | 538 | 498 | |
Total financial liabilities | 538 | 498 | |
Fair value | Level 3 | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Securities designated as FVTPL | 2,208 | 1,965 | |
Securities designated as FVTOCI | 69 | 95 | |
Derivative assets | 0 | 0 | |
Total financial assets | 2,277 | 2,060 | |
Total capital securities | 577 | 859 | |
Derivative financial liabilities | 0 | 0 | |
Total financial liabilities | $ 577 | $ 859 |
FINANCIAL INSTRUMENTS - Level 3
FINANCIAL INSTRUMENTS - Level 3 Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial assets | ||
Balance, beginning of year | $ 7,070 | |
Changes in fair value measurement, assets [abstract] | ||
Balance, end of year | 9,805 | $ 7,070 |
Financial liabilities | ||
Balance, beginning of year | 62,406 | |
Changes in fair value measurement, liabilities [abstract] | ||
Balance, end of year | 66,006 | 62,406 |
Level 3 | ||
Financial assets | ||
Balance, beginning of year | 2,060 | 1,682 |
Changes in fair value measurement, assets [abstract] | ||
Additions | 353 | 553 |
Dispositions | (222) | (88) |
Fair value (losses) gains, net and OCI | 86 | 366 |
Other | 0 | (453) |
Balance, end of year | 2,277 | 2,060 |
Financial liabilities | ||
Balance, beginning of year | 859 | 863 |
Changes in fair value measurement, liabilities [abstract] | ||
Additions | 0 | 0 |
Dispositions | 0 | 0 |
Fair value (losses) gains, net and OCI | (292) | 2 |
Other | 10 | (6) |
Balance, end of year | $ 577 | $ 859 |
FINANCIAL INSTRUMENTS - Market
FINANCIAL INSTRUMENTS - Market Risk, Interest Rate Risk (Details) - Interest rate risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, impact on pre-tax earnings | $ 402 | $ 286 |
Variable rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, impact on pre-tax earnings | 367 | 255 |
Fixed interest rate | Within one year | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, impact on pre-tax earnings | $ 35 | $ 31 |
FINANCIAL INSTRUMENTS - Marke_2
FINANCIAL INSTRUMENTS - Market Risk, Foreign Currency Risk (Details) - Currency risk € in Millions, ₩ in Millions, ₨ in Millions, د.إ in Millions, ¥ in Millions, £ in Millions, zł in Millions, R$ in Millions, Kč in Millions, Ft in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 AUD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 INR (₨) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 KRW (₩) | Dec. 31, 2022 AED (د.إ) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 AUD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 BRL (R$) | Dec. 31, 2021 INR (₨) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 KRW (₩) | Dec. 31, 2021 AED (د.إ) | Dec. 31, 2021 CZK (Kč) | Dec. 31, 2021 HUF (Ft) | Dec. 31, 2020 CAD ($) | Dec. 31, 2020 AUD ($) | Dec. 31, 2020 GBP (£) | Dec. 31, 2020 EUR (€) | Dec. 31, 2020 BRL (R$) | Dec. 31, 2020 INR (₨) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 KRW (₩) | Dec. 31, 2020 AED (د.إ) | Dec. 31, 2020 CZK (Kč) | Dec. 31, 2020 HUF (Ft) | Dec. 31, 2020 HKD ($) | Dec. 31, 2020 PLN (zł) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Reasonably possible change in risk variable, percent | 10% | |||||||||||||||||||||||||||||||||||
OCI | $ (886) | $ (1,219) | $ (973) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Canadian dollars | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | $ 142 | $ 339 | $ 521 | |||||||||||||||||||||||||||||||||
OCI | (11) | (27) | (41) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Australian dollars | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | $ 1,560 | $ 1,708 | $ 2,056 | |||||||||||||||||||||||||||||||||
OCI | (106) | (124) | (158) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
British pounds | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | £ | £ 4,059 | £ 6,375 | £ 4,206 | |||||||||||||||||||||||||||||||||
OCI | (490) | (863) | (575) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Euros | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | € | € 690 | € 1,297 | € 328 | |||||||||||||||||||||||||||||||||
OCI | (74) | (147) | (40) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Brazilian reais | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | R$ | R$ 3129 | R$ 745 | R$ 3364 | |||||||||||||||||||||||||||||||||
OCI | (60) | (13) | (65) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Indian Rupee | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | ₨ | ₨ 33,212 | ₨ 617 | ₨ 28,281 | |||||||||||||||||||||||||||||||||
OCI | (40) | (1) | (39) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Hong Kong Dollar | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | $ 0 | |||||||||||||||||||||||||||||||||||
OCI | 0 | |||||||||||||||||||||||||||||||||||
Net income | 0 | |||||||||||||||||||||||||||||||||||
Chinese Yuan | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | ¥ | ¥ 2,554 | ¥ 730 | ¥ 1,084 | |||||||||||||||||||||||||||||||||
OCI | (37) | (11) | (17) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
South Korean Won | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | ₩ | ₩ 417,865 | ₩ 289,443 | ₩ 204,795 | |||||||||||||||||||||||||||||||||
OCI | (33) | (24) | (19) | |||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
United Arab Emirates Dirham | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | د.إ | د.إ 1,287 | د.إ 342 | د.إ 708 | |||||||||||||||||||||||||||||||||
OCI | (35) | (9) | (19) | |||||||||||||||||||||||||||||||||
Net income | $ 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
Czech Koruna | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | Kč | Kč 5 | Kč 8 | ||||||||||||||||||||||||||||||||||
OCI | 0 | 0 | ||||||||||||||||||||||||||||||||||
Net income | 0 | 0 | ||||||||||||||||||||||||||||||||||
Hungarian Forint | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | Ft | Ft 5 | Ft 334 | ||||||||||||||||||||||||||||||||||
OCI | 0 | 0 | ||||||||||||||||||||||||||||||||||
Net income | $ 0 | 0 | ||||||||||||||||||||||||||||||||||
Poland Zloty | ||||||||||||||||||||||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||||||||||||||||||||||||||
Equity attributable to Unitholders | zł | zł 3 | |||||||||||||||||||||||||||||||||||
OCI | 0 | |||||||||||||||||||||||||||||||||||
Net income | $ 0 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 09, 2022 USD ($) | Dec. 30, 2021 | Sep. 13, 2021 USD ($) shares | Jul. 26, 2021 USD ($) | Dec. 31, 2020 USD ($) $ / shares | Dec. 04, 2014 | Dec. 31, 2021 USD ($) multifamily_asset | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) $ / shares shares | Jun. 29, 2021 USD ($) | |
Disclosure of transactions between related parties [line items] | |||||||||||
Preferred Units redeemed | $ 1,000,000,000 | ||||||||||
Acquisition of LP interests | $ 2,475,000,000 | ||||||||||
Investment properties | $ 1,861,000,000 | $ 2,431,000,000 | $ 2,252,000,000 | ||||||||
Brookfield Corporation | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Distribution of business, percent | 25% | ||||||||||
Limited Partner Units, $12.00/unit | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of shares/units issued (in shares) | shares | 2,696,841 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 12 | $ 12 | |||||||||
Limited Partner Units, $12.65/unit | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of shares/units issued (in shares) | shares | 5,967,063 | ||||||||||
Share price (in dollars per share) | $ / shares | 12.65 | $ 12.65 | |||||||||
Limited Partner Units, $13.92/unit | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of shares/units issued (in shares) | shares | 13,392,277 | ||||||||||
Share price (in dollars per share) | $ / shares | 13.92 | $ 13.92 | |||||||||
Redeemable/Exchangeable Partnership Units | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of shares/units issued (in shares) | shares | 18,715,912 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 12 | $ 12 | |||||||||
Preferred Equity Tranche One | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Maturity term | 7 years | 7 years | |||||||||
Preferred Equity, Tranche Two | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Maturity term | 10 years | ||||||||||
Tranche Three | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Maturity term | 12 years | ||||||||||
Brookfield Asset Management | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Management fee Inflation adjustment, percent of total capitalization | 0.50% | ||||||||||
Management fee expense, minimum | $ 50,000,000 | $ 50,000,000 | |||||||||
Management fee percent | 1.05% | ||||||||||
Management fee expense | $ 223,000,000 | 155,000,000 | $ 73,000,000 | ||||||||
Brookfield Asset Management | Limited Partner Units, $11.36/unit | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of shares/units issued (in shares) | shares | 9,416,816 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 11.36 | $ 11.36 | |||||||||
Subsidiaries | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of real estate properties sold | multifamily_asset | 2 | ||||||||||
Subsidiaries | United States | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Investment properties | $ 73,000,000 | ||||||||||
Subsidiaries | United Kingdom | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Investment properties | $ 101,000,000 | ||||||||||
Subsidiaries | Brookfield Place Sydney | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Consideration | $ 153,000,000 | ||||||||||
Subsidiaries | Limited Partner Units | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Issuances to redeemable/exchangeable and special limited partnership unitholders | $ 2,500,000,000 | ||||||||||
Subsidiaries | Redeemable/Exchangeable Partnership Units | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Number of shares/units issued (in shares) | shares | 34,000,000 | ||||||||||
Issuances to redeemable/exchangeable and special limited partnership unitholders | $ 2,000,000,000 | ||||||||||
Affiliated entities | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Distributions on Brookfield Corporation’s interest in Canholdco | $ 113,000,000 | $ 369,000,000 | $ 0 | ||||||||
Preferred equity unit holders | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Conversion condition, limit of market price to exchange price at maturity, percent | 80% |
RELATED PARTIES - Assets_Liabil
RELATED PARTIES - Assets/Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Disclosure of transactions between related parties [line items] | |||
Preferred shares held by Brookfield Corporation | $ (2,490,000,000) | $ (1,015,000,000) | |
Affiliated entities | |||
Disclosure of transactions between related parties [line items] | |||
Net (payables)/receivables within equity accounted investments | (110,000,000) | (378,000,000) | |
Loans and notes receivable | 273,000,000 | 170,000,000 | |
Receivables and other assets | 0 | 71,000,000 | |
Deposit payable to Brookfield Asset Management | 0 | (680,000,000) | |
Property-specific obligations | (2,429,000,000) | (250,000,000) | |
Loans and notes payable and other liabilities | (721,000,000) | (259,000,000) | |
Preferred shares held by Brookfield Corporation | (2,490,000,000) | (1,015,000,000) | |
Brookfield Asset Management interest in Canholdco | $ (1,759,000,000) | $ (2,083,000,000) | |
Deposit limit | $ 3,000,000,000 |
RELATED PARTIES - Income_Expens
RELATED PARTIES - Income/Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Commercial property revenue | $ 4,849 | $ 5,163 | $ 5,397 |
Income from equity accounted investments | 826 | 1,020 | (749) |
Interest expense on debt obligations | 2,683 | 2,593 | 2,592 |
General and administrative expense | 930 | 924 | 816 |
Affiliated entities | |||
Disclosure of transactions between related parties [line items] | |||
Commercial property revenue | 53 | 35 | 32 |
Management fee income | 92 | 42 | 32 |
Income from equity accounted investments | (22) | 26 | (11) |
Interest expense on debt obligations | 20 | 24 | 19 |
Interest on capital securities held by Brookfield Corporation | 0 | 0 | 0 |
General and administrative expense | 327 | 271 | 164 |
Construction costs | (68) | 132 | 265 |
Return of capital distributions on Brookfield Corporation’s interest in Canholdco | 118 | 176 | 0 |
Distributions on Brookfield Corporation’s interest in Canholdco | 113 | 369 | 0 |
Incentive Fees | $ 45 | $ 35 | $ 16 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Operating Segments [Abstract] | |
Number of reportable segments | 4 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and FFO (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 7,365 | $ 7,100 | $ 6,593 |
FFO | 586 | 578 | 707 |
Core Office | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,210 | 2,198 | 2,049 |
FFO | 325 | 539 | 495 |
Core Retail | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,557 | 1,510 | 1,612 |
FFO | 626 | 450 | 521 |
LP Investments | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,593 | 3,387 | 2,920 |
FFO | 288 | 179 | 64 |
Corporate | |||
Disclosure of operating segments [line items] | |||
Revenue | 5 | 5 | 12 |
FFO | $ (653) | $ (590) | $ (373) |
SEGMENT INFORMATION - Detail of
SEGMENT INFORMATION - Detail of Total Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Other revenue from tenants | $ 982 | $ 946 | $ 997 |
Investment and other revenue | 1,005 | 864 | 494 |
Revenue | 7,365 | 7,100 | 6,593 |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Lease revenue | 3,868 | 4,219 | 4,400 |
Other revenue from tenants | 981 | 944 | 997 |
Hospitality revenue | 1,511 | 1,073 | 702 |
Investment and other revenue | 1,005 | 864 | 494 |
Revenue | 7,365 | 7,100 | 6,593 |
Core Office | Operating segments | |||
Disclosure of operating segments [line items] | |||
Lease revenue | 1,373 | 1,467 | 1,429 |
Other revenue from tenants | 469 | 442 | 446 |
Hospitality revenue | 22 | 9 | 6 |
Investment and other revenue | 346 | 280 | 168 |
Revenue | 2,210 | 2,198 | 2,049 |
Core Retail | Operating segments | |||
Disclosure of operating segments [line items] | |||
Lease revenue | 1,138 | 1,113 | 1,166 |
Other revenue from tenants | 264 | 259 | 284 |
Hospitality revenue | 0 | 0 | 0 |
Investment and other revenue | 155 | 138 | 162 |
Revenue | 1,557 | 1,510 | 1,612 |
LP Investments | Operating segments | |||
Disclosure of operating segments [line items] | |||
Lease revenue | 1,357 | 1,639 | 1,805 |
Other revenue from tenants | 248 | 243 | 267 |
Hospitality revenue | 1,489 | 1,064 | 696 |
Investment and other revenue | 499 | 441 | 152 |
Revenue | 3,593 | 3,387 | 2,920 |
Corporate | Operating segments | |||
Disclosure of operating segments [line items] | |||
Lease revenue | 0 | 0 | 0 |
Other revenue from tenants | 0 | 0 | 0 |
Hospitality revenue | 0 | 0 | 0 |
Investment and other revenue | 5 | 5 | 12 |
Revenue | $ 5 | $ 5 | $ 12 |
SEGMENT INFORMATION - Earnings
SEGMENT INFORMATION - Earnings from Equity Accounted Investment and Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Share of net earnings from equity accounted investments | $ 826 | $ 1,020 | $ (749) |
Interest expense | (2,683) | (2,593) | (2,592) |
Core Office | |||
Disclosure of operating segments [line items] | |||
Share of net earnings from equity accounted investments | 550 | 644 | 150 |
Interest expense | (723) | (570) | (586) |
Core Retail | |||
Disclosure of operating segments [line items] | |||
Share of net earnings from equity accounted investments | 234 | 472 | (743) |
Interest expense | (660) | (649) | (647) |
LP Investments | |||
Disclosure of operating segments [line items] | |||
Share of net earnings from equity accounted investments | 42 | (96) | (156) |
Interest expense | (1,000) | (1,069) | (1,104) |
Corporate | |||
Disclosure of operating segments [line items] | |||
Share of net earnings from equity accounted investments | 0 | 0 | 0 |
Interest expense | $ (300) | $ (305) | $ (255) |
SEGMENT INFORMATION - Balance S
SEGMENT INFORMATION - Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of operating segments [line items] | |||
Total assets | $ 112,516 | $ 112,004 | |
Total liabilities | 70,779 | 66,999 | |
Equity accounted investments | 19,943 | 20,807 | $ 19,719 |
Core Office | |||
Disclosure of operating segments [line items] | |||
Total assets | 34,039 | 37,661 | |
Total liabilities | 17,581 | 18,172 | |
Equity accounted investments | 8,547 | 9,819 | |
Core Retail | |||
Disclosure of operating segments [line items] | |||
Total assets | 30,363 | 30,585 | |
Total liabilities | 13,850 | 14,316 | |
Equity accounted investments | 9,674 | 9,945 | |
LP Investments | |||
Disclosure of operating segments [line items] | |||
Total assets | 47,458 | 43,403 | |
Total liabilities | 32,146 | 27,516 | |
Equity accounted investments | 1,722 | 1,043 | |
Corporate | |||
Disclosure of operating segments [line items] | |||
Total assets | 656 | 355 | |
Total liabilities | 7,202 | 6,995 | |
Equity accounted investments | $ 0 | $ 0 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of FFO to Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Segments [Abstract] | |||
FFO | $ 586 | $ 578 | $ 707 |
Fair value (gains) losses, net | 20 | 2,521 | (1,322) |
Share of equity accounted income (losses) - non-FFO | 120 | 404 | (1,403) |
Depreciation and amortization of real-estate assets | (190) | (203) | (249) |
Income tax expense | (281) | (490) | (220) |
Non-controlling interests of others in operating subsidiaries and properties - non-FFO | (387) | (1,534) | 129 |
Net income (loss) attributable to unitholders | (132) | 1,276 | (2,358) |
Interests of others in operating subsidiaries and properties | 1,128 | 2,223 | 300 |
Net income (loss) | $ 996 | $ 3,499 | $ (2,058) |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information by Geographic Regions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Revenue | $ 7,365 | $ 7,100 | $ 6,593 |
Non-current assets | 105,430 | 96,569 | |
United States | |||
Disclosure of geographical areas [line items] | |||
Revenue | 4,740 | 4,911 | 4,743 |
Non-current assets | 76,145 | 64,695 | |
Canada | |||
Disclosure of geographical areas [line items] | |||
Revenue | 491 | 421 | 424 |
Non-current assets | 5,120 | 5,446 | |
Australia | |||
Disclosure of geographical areas [line items] | |||
Revenue | 360 | 322 | 182 |
Non-current assets | 2,338 | 4,081 | |
Europe | |||
Disclosure of geographical areas [line items] | |||
Revenue | 1,151 | 887 | 592 |
Non-current assets | 11,949 | 16,956 | |
Brazil | |||
Disclosure of geographical areas [line items] | |||
Revenue | 102 | 71 | 82 |
Non-current assets | 1,411 | 656 | |
China | |||
Disclosure of geographical areas [line items] | |||
Revenue | 5 | 3 | 94 |
Non-current assets | 389 | 294 | |
India | |||
Disclosure of geographical areas [line items] | |||
Revenue | 288 | 274 | 287 |
Non-current assets | 4,014 | 4,191 | |
South Korea | |||
Disclosure of geographical areas [line items] | |||
Revenue | 228 | 211 | 189 |
Non-current assets | 3,745 | 0 | |
United Arab Emirates | |||
Disclosure of geographical areas [line items] | |||
Revenue | 0 | 0 | $ 0 |
Non-current assets | $ 319 | $ 250 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions, $ in Millions | Feb. 13, 2023 CAD ($) | Jan. 30, 2023 $ / shares | Jan. 01, 2023 USD ($) |
Major ordinary share transactions | LP Units | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Quarterly dividends, per share, declared | $ 0.35 | ||
Annual dividends, per share, declared | 1.40 | ||
Major ordinary share transactions | Class A Cumulative Redeemable Perpetual Unit, Series 1 | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Quarterly dividends, per share, declared | 0.40625 | ||
Annual dividends, per share, declared | 1.625 | ||
Major ordinary share transactions | Class A Cumulative Redeemable Perpetual Unit, Series 2 | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Quarterly dividends, per share, declared | 0.3984375 | ||
Annual dividends, per share, declared | 1.59375 | ||
Major ordinary share transactions | Class A Cumulative Redeemable Perpetual Unit, Series 3 | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Quarterly dividends, per share, declared | 0.359375 | ||
Annual dividends, per share, declared | 1.4375 | ||
Major ordinary share transactions | New LP Preferred Units | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Quarterly dividends, per share, declared | 0.390625 | ||
Annual dividends, per share, declared | $ 1.5625 | ||
Other disposals of assets | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Disposition of interest in equity method investment, percentage | 23% | ||
Notes receivable, related party | $ | $ 588 | ||
Major borrowings transaction | Medium Term Notes | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Notional amount | $ | $ 500 | ||
Interest rate | 7.125% | ||
Borrowings, term | 5 years |
SCHEDULE III - SUPPLEMENTAL S_2
SCHEDULE III - SUPPLEMENTAL SCHEDULE OF INVESTMENT PROPERTY INFORMATION (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) property | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 619 |
Fair value | $ 64,710 |
Debt | 37,332 |
Commercial Development properties and land/parking lots | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Fair value | 3,875 |
Development properties and land | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Debt | 1,339 |
Corporate facilities | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Debt | 13,378 |
Hospitality | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Debt | 6,815 |
Deferred finance costs | $ 302 |
Core Office | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 64 |
Fair value | $ 21,713 |
Debt | $ 13,420 |
Core Office | United States | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 35 |
Fair value | $ 13,459 |
Debt | $ 9,000 |
Core Office | Canada | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 20 |
Fair value | $ 4,218 |
Debt | $ 1,827 |
Core Office | Australia | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 5 |
Fair value | $ 1,730 |
Debt | $ 1,052 |
Core Office | Europe | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 2 |
Fair value | $ 1,932 |
Debt | $ 1,486 |
Core Office | Brazil | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 2 |
Fair value | $ 374 |
Debt | $ 55 |
Core Retail | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 54 |
Fair value | $ 19,406 |
Debt | $ 9,141 |
Opportunistic Office | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 110 |
Fair value | $ 8,780 |
Debt | $ 5,381 |
Opportunistic Retail | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 18 |
Fair value | $ 1,838 |
Debt | $ 1,008 |
Logistics | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 33 |
Fair value | $ 673 |
Debt | $ 3 |
Multifamily | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 10 |
Fair value | $ 1,995 |
Debt | $ 1,651 |
Self-storage | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 19 |
Fair value | $ 95 |
Debt | $ 61 |
Alternatives | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 1 |
Fair value | $ 66 |
Debt | $ 195 |
Student Housing | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 41 |
Fair value | $ 1,712 |
Debt | $ 1,238 |
Manufactured Housing | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 218 |
Fair value | $ 4,417 |
Debt | $ 2,779 |
Mixed-Use | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 7 |
Fair value | $ 3,098 |
Debt | $ 1,904 |
Secondaries | |
Real Estate And Accumulated Depreciation By Property [Line Items] | |
Number of properties | property | 44 |
Fair value | $ 917 |
Debt | $ 551 |