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NON-CONTROLLING INTERESTS
 6 Months Ended
Jun. 30, 2019
Disclosure Of Detailed Information About Non-controlling Interests [Abstract]  
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS
Brookfield Renewable`s non-controlling interests are comprised of the following:
(MILLIONS)
Jun 30, 2019

 
Dec 31, 2018

Participating non-controlling interests - in operating subsidiaries
$
8,226

 
$
8,129

General partnership interest in a holding subsidiary held by Brookfield
65

 
66

Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
3,166

 
3,252

Preferred equity
591

 
568

 
$
12,048

 
$
12,015


On February 24, 2019, Brookfield Renewable completed the sale of an additional 25% non-controlling, indirect interest in a portfolio of select Canadian hydroelectric assets to a consortium of buyers. This sale was for the same price as our initial 25% non-controlling interest sale of this portfolio disclosed in Note 31 of our 2018 annual consolidated financial statements, subject to an adjustment for dividend recapitalization completed in the fourth quarter of 2018. Cash consideration of C$331 million was received from the non-controlling shareholders on February 28, 2019. Upon completion of the sale, Brookfield Renewable recognized a $4 million gain directly in equity.
Subsequent to completion of the sale, Brookfield Renewable has continued to control and operate the assets and maintains a 50% economic interest in the portfolio.
Participating non-controlling interests -in operating subsidiaries
The net change in participating non-controlling interests - in operating subsidiaries is as follows:
(MILLIONS) 
Brookfield
Americas
Infrastructure Fund

 
Brookfield
Infrastructure Fund II

 
Brookfield
Infrastructure Fund III

 
Brookfield
Infrastructure Fund IV

 
Canadian Hydroelectric Portfolio

 
The
Catalyst Group

 
Isagen
institutional
investors

 
Isagen
public non-
controlling interests

 
Other

 
Total

As at December 31, 2017
$
850

 
$
1,682

 
$
1,852

 
$
—

 
$
—

 
$
134

 
$
1,701

 
$
9

 
$
70

 
$
6,298

Net income
1

 
9

 
86

 
—

 
4

 
14

 
174

 
1

 
8

 
297

OCI
66

 
298

 
805

 
—

 
(11
)
 
(18
)
 
504

 
5

 
58

 
1,707

Capital contributions
—

 
9

 
5

 
—

 
293

 
—

 
—

 
—

 
—

 
307

Acquisition
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
21

 
21

Distributions
(17
)
 
(81
)
 
(276
)
 
—

 
—

 
(6
)
 
(167
)
 
—

 
(6
)
 
(553
)
Other
—

 
12

 
(3
)
 
—

 
(10
)
 
—

 
—

 
—

 
53

 
52

As at December 31, 2018
$
900

 
$
1,929

 
$
2,469

 
$
—

 
$
276

 
$
124

 
$
2,212

 
$
15

 
$
204

 
$
8,129

Net income (loss)
8

 
4

 
44

 
1

 
14

 
14

 
81

 
—

 
2

 
168

OCI
2

 
13

 
46

 
—

 
12

 
—

 
27

 
—

 
(15
)
 
85

Capital contributions
—

 
—

 
2

 
20

 
277

 
—

 
—

 
—

 
(1
)
 
298

Acquisition
—

 
—

 
(21
)
 
—

 
—

 
—

 
—

 
—

 
21

 
—

Disposal
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(53
)
 
(53
)
Distributions
(7
)
 
(54
)
 
(171
)
 
—

 
(1
)
 
(11
)
 
(139
)
 
(1
)
 
(12
)
 
(396
)
Other
—

 
—

 
—

 
—

 
(4
)
 
—

 
(1
)
 
—

 
—

 
(5
)
As at June 30, 2019
$
903

 
$
1,892

 
$
2,369

 
$
21

 
$
574

 
$
127

 
$
2,180

 
$
14

 
$
146

 
$
8,226

Interests held by third parties
75-80%

 
43-60%

 
23-71%

 
71
%
 
50
%
 
25
%
 
53
%
 
0.5
%
 
20-50%

 
 
General partnership interest in a holding subsidiary held by Brookfield and Participating non-controlling interests – in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
Brookfield, as the owner of the 1% general partnership interest in BRELP held by Brookfield (“GP interest”), is entitled to regular distributions plus an incentive distribution based on the amount by which quarterly distributions exceed specified target levels. To the extent that LP Unit distributions exceed $0.375 per LP Unit per quarter, the incentive is 15% of distributions above this threshold. To the extent that quarterly LP Unit distributions exceed $0.4225 per LP Unit, the incentive distribution is equal to 25% of distributions above this threshold.
As at June 30, 2019, general partnership units, and Redeemable/Exchangeable partnership units outstanding were 2,651,506 (December 31, 2018: 2,651,506) and 129,658,623 (December 31, 2018: 129,658,623), respectively.
Distributions
The composition of the distributions for the three and six months ended June 30 is presented in the following table:
 
Three months ended Jun 30
 
Six months ended Jun 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

General partnership interest in a holding subsidiary held by Brookfield
$
1

 
$
2

 
$
3

 
$
3

Incentive distribution
12

 
9

 
25

 
20

 
$
13

 
$
11

 
$
28

 
$
23

Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
$
67

 
$
64

 
$
135

 
$
128

 
$
80

 
$
75

 
$
163

 
$
151


Preferred equity
Brookfield Renewable`s preferred equity consists of Class A Preference Shares of Brookfield Renewable Power Preferred Equity Inc. ("BRP Equity") as follows:
 
Shares
outstanding

 
Cumulative
distribution
rate (%)
 
Earliest
permitted
redemption
date
 
Distributions declared for the six months ended June 30
 
Carrying value as at
(MILLIONS EXCEPT AS NOTED)
 
 
2019

 
2018

 
Jun 30, 2019

 
Dec 31, 2018

Series 1 (C$136)
5.45

 
3.36
 
Apr 2020
 
$
2

 
$
2

 
$
104

 
$
100

Series 2 (C$113)(1)
4.51

 
4.27
 
Apr 2020
 
2

 
2

 
86

 
83

Series 3 (C$249)
9.96

 
4.40
 
Jul 2019
 
4

 
4

 
190

 
182

Series 5 (C$103)
4.11

 
5.00
 
Apr 2018
 
2

 
2

 
78

 
75

Series 6 (C$175)
7.00

 
5.00
 
Jul 2018
 
3

 
3

 
133

 
128

 
31.04

 
 
 
 
 
$
13

 
$
13

 
$
591

 
$
568

(1) 
Dividend rate represents annualized distribution based on the most recent quarterly floating rate.
The Class A Preference Shares do not have a fixed maturity date and are not redeemable at the option of the holders. As at June 30, 2019, none of the issued Class A Preference Shares have been redeemed by BRP Equity.
Class A Preference Shares – Normal Course Issuer Bid
In July 2019, the TSX accepted notice of BRP Equity’s intention to renew the normal course issuer bid in connection with its outstanding Class A Preference Shares for another year to July 8, 2020, or earlier should the repurchases be completed prior to such date. Under this normal course issuer bid, it is permitted to repurchase up to 10% of the total public float for each respective series of the Class A Preference Shares. Unitholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. No shares were repurchased during the six months ended June 30, 2019.