INVESTMENT PROPERTIES (Tables)

6 Months Ended

Jun. 30, 2025

Disclosure of detailed information about investment property

The following table presents the change in the fair value of the company’s investment properties:


AS AT AND FOR THE SIX MONTHS ENDED JUN. 30, 2025 (MILLIONS)
Fair value, beginning of period	$	103,665
Additions	3,417

Dispositions	(1,728)
Assets reclassified as held for sale	(13,803)
India REIT deconsolidation	(3,609)
Fair value changes	(80)
Foreign currency translation and other	3,048
Fair value, end of period1	$	90,910

1.As at June 30, 2025, the ending balance includes $4.2 billion of right-of-use investment properties (December 31, 2024 – $4.2 billion).

The following table summarizes the key valuation metrics of the company’s investment properties:



AS AT JUN. 30, 2025	Discount Rate		Terminal Capitalization Rate		Investment Horizon (years)






Core	6.3	%	4.8	%	11

Transitional and development1	7.8	%	6.2	%	10
LP Investments1	8.6	%	5.5	%	9










Other investment properties2	7.9	%	n/a		n/a

1.The rates presented are for investment properties valued using the discounted cash flow method. These rates exclude multifamily, triple net lease, student housing, manufactured housing and other investment properties valued using the direct capitalization method.

2.Other investment properties include investment properties held in our Infrastructure segment and direct investments within our Asset Management segment.

Disclosure of fair value measurement of assets [text block]

The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the fair value hierarchy levels:


	2025						2024
AS AT JUN. 30, 2025 AND DEC. 31, 2024 (MILLIONS)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Other financial assets
Government bonds	$	30	$	1,357	$	—	$	21	$	1,362	$	—
Corporate bonds	—		1,621		796		—		1,554		740
Fixed income securities and other	337		938		5,721		475		909		6,036
Common shares and warrants	284		1,459		4,032		661		1,319		3,764

	651		5,375		10,549		1,157		5,144		10,540
Accounts receivable and other	—		2,026		1,003		—		4,387		353
	$	651	$	7,401	$	11,552	$	1,157	$	9,531	$	10,893
Financial liabilities
Accounts payable and other	$	64	$	5,498	$	3,182	$	—	$	2,037	$	3,523
Subsidiary equity obligations	—		—		76		—		—		129
	$	64	$	5,498	$	3,258	$	—	$	2,037	$	3,652

The following table presents our investment properties measured at fair value:


AS AT JUN. 30, 2025 (MILLIONS)






Core	$	17,957

Transitional and development	22,218
LP Investments	47,861








Other investment properties	2,874
	$	90,910

Disclosure of significant unobservable inputs used in fair value measurement of assets [text block]

The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:

(MILLIONS)

Type of Asset/Liability

Carrying Value

Jun. 30, 2025

Valuation
Techniques

Significant
Unobservable Inputs

Relationship of Unobservable
Inputs to Fair Value

Corporate bonds

796

Discounted cash flows

• Future cash flows

• Increases (decreases) in future cash flows increase (decrease) fair value

• Discount rate

• Increases (decreases) in discount rate decrease (increase) fair value

Fixed income securities and other

5,721

Discounted cash flows

• Future cash flows

• Increases (decreases) in future cash flows increase (decrease) fair value

• Discount rate

• Increases (decreases) in discount rate decrease (increase) fair value

Common shares and warrants

4,032

Discounted cash flows

• Future cash flows

• Increases (decreases) in future cash flows increase (decrease) fair value

• Discount rate

• Increases (decreases) in discount rate decrease (increase) fair value

Black-Scholes model

• Volatility

• Increases (decreases) in volatility increase (decreases) fair value

• Term to maturity

• Increases (decreases) in term to maturity increase (decrease) fair value

Derivative assets/
Derivative liabilities (accounts receivable/payable)

1,003 /

(3,182)

Discounted cash flows

• Future cash flows

• Increases (decreases) in future cash flows increase (decrease) fair value

• Discount rate

• Increases (decreases) in discount rate decrease (increase) fair value

Significant unobservable inputs (Level 3) are utilized when determining the fair value of investment properties. The significant Level 3 inputs include:

Valuation Technique

Significant Unobservable Inputs

Relationship of Unobservable Inputs to Fair Value

Mitigating Factors

Discounted cash flow analysis1

• Future cash flows – primarily driven by net operating income

• Increases (decreases) in future cash flows increase (decrease) fair value

•Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows

• Discount rate

•Increases (decreases) in discount rate decrease (increase) fair value

•Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates

• Terminal capitalization rate

•Increases (decreases) in terminal capitalization rate decrease (increase) fair value

•Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization rates

• Investment horizon

•Increases (decreases) in the investment horizon decrease (increase) fair value

•Increases (decreases) in the investment horizon tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year

1.Certain investment properties are valued using the direct capitalization method instead of a discounted cash flow model. Under the direct capitalization method, a capitalization rate is applied to estimated current year cash flows.