INVESTMENT PROPERTIES

6 Months Ended

Jun. 30, 2026

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, 2026 (MILLIONS)
Fair value, beginning of period	$	85,613
Additions	5,199


Dispositions and assets reclassified as held for sale	(5,857)

Fair value changes	(161)
Foreign currency translation and other	(555)
Fair value, end of period1	$	84,239

1.As at June 30, 2026, the ending balance includes $4.4 billion of right-of-use investment properties (December 31, 2025 – $4.4 billion).

Investment properties include the company’s office, retail, residential and other properties. Additions of $5.2 billion primarily relate to acquisitions of a portfolio of multifamily properties in Spain, a mixed-use portfolio in France, two logistics portfolios and a student housing portfolio in the U.S., and a logistics asset in Australia, all within our LP Investments included in our Asset Management segment, and enhancement of existing assets during the period.

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


AS AT JUN. 30, 2026 (MILLIONS)






Super Core	$	19,471
Core Plus	10,164
Value Add	5,090

LP Investments	43,460








Other investment properties	6,054
	$	84,239

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

•Changes in future cash flows tend to be offset by corresponding movements in discount rates

• Discount rate

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

•Changes in discount rates tend to be offset by corresponding movements in cash flows

• Terminal capitalization rate

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

•Changes in terminal capitalization rates tend to be offset by corresponding movements in cash flows

• Investment horizon

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

•Changes 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 stabilized 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 stabilized net operating income.

The company’s investment properties are diversified by asset type, asset class, geography and market. Therefore, there may be mitigating factors in addition to those noted above, such as changes to assumptions that vary in direction and magnitude across different geographies and markets.

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



AS AT JUN. 30, 2026	Discount Rate		Terminal Capitalization Rate		Investment Horizon (years)






Super Core	6.2	%	4.8	%	10
Core Plus	6.9	%	5.5	%	10
Value Add	8.3	%	6.7	%	10

LP Investments1	8.6	%	5.5	%	9










Other investment properties2,3	8.2	%	6.7	%	9

1.The rates presented are for consolidated investment properties inclusive of non-controlling interests that are valued using the discounted cash flow method. These rates exclude residential, 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, investments with limited capital at risk that we expect to discontinue in our Real Estate segment, as well as direct investments within our Asset Management segment.

3.Terminal capitalization rate and investment horizon (years) are presented for investments with limited capital at risk that we expect to discontinue in our Real Estate segment.