EQUITY ACCOUNTED INVESTMENTS

12 Months Ended

Dec. 31, 2021

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 interests/voting rights held by the partnership				Carrying value
(US$ Millions)	Principal activity	Principal place of business	Dec. 31, 2021		Dec. 31, 2020		Dec. 31, 2021		Dec. 31, 2020
Joint ventures
Canary Wharf Joint Venture(1)	Property holding company	United Kingdom	50	%	50	%	$	3,529	$	3,440
Manhattan West, New York	Property holding company	United States	56	%	56	%	2,396		2,122
Ala Moana Center, Hawaii	Property holding company	United States	50	%	50	%	1,939		1,862
BPYU JV Pool A	Property holding company	United States	50	%	50	%	1,810		1,723
BPYU JV Pool B	Property holding company	United States	51	%	51	%	1,140		1,121
Fashion Show, Las Vegas	Property holding company	United States	50	%	50	%	856		835
Grace Building, New York	Property holding company	United States	50	%	50	%	702		676
BPYU JV Pool C	Property holding company	United States	50	%	50	%	679		692
BPYU JV Pool D	Property holding company	United States	48	%	48	%	612		548
Southern Cross East, Melbourne	Property holding company	Australia	50	%	50	%	472		433
The Grand Canal Shoppes, Las Vegas	Property holding company	United States	50	%	50	%	455		416
One Liberty Plaza, New York	Property holding company	United States	51	%	51	%	402		382
680 George Street, Sydney	Property holding company	Australia	50	%	50	%	389		375
Brookfield Place Sydney	Property holding company	Australia	25	%	—	%	376		—
The Mall in Columbia, Maryland	Property holding company	United States	50	%	50	%	315		298
Shops at La Cantera, Texas	Property holding company	United States	50	%	50	%	270		249
BPYU JV Pool G	Property holding company	United States	68	%	68	%	263		251
Potsdamer Platz, Berlin	Property holding company	Germany	25	%	25	%	261		255
Baybrook Mall, Texas	Property holding company	United States	51	%	51	%	254		251
Brookfield Brazil Retail Fundo de Investimento em Participações (“Brazil Retail”)	Holding company	Brazil	43	%	46	%	228		251
Brookfield D.C. Office Partners LLC ("D.C. Fund"), Washington, D.C.	Property holding company	United States	51	%	51	%	225		257
BPYU JV Pool F	Property holding company	United States	51	%	51	%	223		253
Miami Design District, Florida	Property holding company	United States	22	%	22	%	212		238
Other(2)	Various	Various	15% - 55%		14% - 55%		2,471		2,510
							20,479		19,438
Associates
Other	Various	Various	13% - 31%		16% - 31%		328		281
							328		281
Total							$	20,807	$	19,719

(1)Stork Holdco LP is the joint venture through which the partnership acquired Canary Wharf Group plc in London.

(2)Other joint ventures consists of approximately 36 joint ventures, each of which has a carrying value below $212 million.

The following table presents the change in the balance of the partnership’s equity accounted investments as of December 31, 2021 and 2020:

(US$ Millions) Years ended Dec. 31,	2021		2020
Equity accounted investments, beginning of year	$	19,719	$	20,764
Additions	698		522
Disposals and return of capital distributions	(459)		(108)
Share of net (losses) earnings from equity accounted investments	1,020		(749)
Distributions received	(172)		(618)
Foreign currency translation	(145)		107
Reclassification from (to) assets held for sale(1)	(210)		121
Other comprehensive income and other	356		(320)
Equity accounted investments, end of year	$	20,807	$	19,719

(1)The partnership’s interest in the Diplomat Resort and Spa (“Diplomat”) was reclassified from assets held for sale in the second quarter of 2020.

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, 2021					Dec. 31, 2020
Equity accounted investments	Primary valuation method	Discount rate		Terminal capitalization rate		Investment horizon (yrs.)	Discount rate		Terminal capitalization rate		Investment horizon (yrs.)
Core Office
United States	Discounted cash flow	6.4	%	4.7	%	12	6.4 %		4.7 %		11
Australia	Discounted cash flow	5.9	%	4.8	%	10	6.3 %		5.3 %		10
Europe	Discounted cash flow	5.5	%	4.6	%	10	5.6	%	4.7	%	10
Dubai	Discounted cash flow	7.7	%	6.5	%	10	8.6	%	7.0	%	10
Core Retail	Discounted cash flow	6.3	%	4.9	%	10	6.3	%	4.9	%	10
LP Investments - Office	Discounted cash flow	5.4	%	4.3	%	10	6.0 %		5.3 %		10
LP Investments - Retail	Discounted cash flow	7.4	%	6.1	%	10	7.4 %		6.1 %		10
Multifamily(1)	Direct capitalization	4.2	%	n/a		n/a	4.3 %		n/a		n/a

(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, 2021 and 2020:

	Dec. 31, 2021
(US$ Millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities		Net assets
Joint ventures
Canary Wharf Joint Venture	$	1,276	$	13,213	$	1,242	$	6,187	$	7,060
Manhattan West	229		8,434		153		4,231		4,279
Ala Moana	131		5,695		52		1,895		3,879
BPYU JV Pool A	249		5,763		122		2,269		3,621
BPYU JV Pool B	353		5,508		231		3,396		2,234
Fashion Show	23		2,538		19		829		1,713
Grace Building	73		2,593		20		1,238		1,408
BPYU JV Pool C	52		2,100		44		669		1,439
BPYU JV Pool D	40		1,763		49		471		1,283
Southern Cross East	11		944		11		—		944
The Grand Canal Shoppes	56		1,867		40		974		909
One Liberty Plaza	49		1,625		11		875		788
680 George Street	8		777		8		—		777
Brookfield Place Sydney	10		1,504		13		2		1,499
The Mall in Columbia	44		845		13		248		628
The Shops at La Cantera	11		788		10		249		540
BPYU JV Pool G	16		738		16		351		387
Potsdamer Platz	70		2,383		43		1,366		1,044
Baybrook Mall	15		723		13		227		498
Brazil Retail	74		701		4		69		702
D.C. Fund	24		1,195		201		577		441
BPYU JV Pool F	17		720		12		287		438
Miami Design District	73		1,600		30		689		954
Other	1,405		12,879		1,476		6,926		5,882
	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

	Dec. 31, 2020
(US$ Millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities		Net assets
Joint ventures
Canary Wharf Joint Venture	$	1,608	$	13,160	$	2,146	$	5,742	$	6,880
Manhattan West	361		7,775		497		3,850		3,789
Ala Moana	156		5,508		50		1,889		3,725
BPYU JV Pool A	256		5,618		108		2,320		3,446
BPYU JV Pool B	301		5,572		161		3,514		2,198
Fashion Show	54		2,461		16		829		1,670
BPYU JV Pool C	67		2,090		37		655		1,465
Grace Building	130		2,495		34		1,237		1,354
BPYU JV Pool D	67		1,619		69		469		1,148
Southern Cross East	8		869		10		—		867
The Grand Canal Shoppes	49		1,794		38		974		831
One Liberty Plaza	40		1,681		118		853		750
680 George Street	9		749		7		—		751
The Mall in Columbia	29		825		13		246		595
D.C. Fund	45		1,241		353		429		504
Potsdamer Platz	69		2,397		42		1,402		1,022
BPYU JV Pool F	21		709		6		227		497
BPYU JV Pool G	19		721		15		355		370
Baybrook Mall	19		718		13		232		492
Brazil Retail	27		764		6		74		711
The Shops at La Cantera	20		736		11		246		499
Miami Design District	68		1,635		50		576		1,077
Other	1,540		13,881		1,088		7,279		7,054
	4,963		75,018		4,888		33,398		41,695
Associates
Other	91		2,800		998		1,111		782
	91		2,800		998		1,111		782
Total	$	5,054	$	77,818	$	5,886	$	34,509	$	42,477

Summarized financial information in respect of the partnership’s equity accounted investments for the years ended December 31, 2021, 2020 and 2019 is set out below:

	Year ended December 31, 2021
(US$ Millions)	Revenue		Expenses		Fair value gains (losses)		Income from EAI(1)		Net (loss) income		Other compre- hensive (loss)income		Partnership’s share of net income		Distributions received
Joint ventures
Canary Wharf Joint Venture	$	607	$	453	$	60	$	42	$	256	$	2	$	128	$	2
Manhattan West	350		225		101		—		226		72		127		48
Ala Moana	241		154		121		—		208		—		104		3
BPYU JV Pool A	329		220		92		—		201		—		100		—
BPYU JV Pool B	458		347		(46)		4		69		—		35		—
Fashion Show	98		54		63		—		107		—		53		8
Grace Building	151		86		47		—		112		—		56		27
BPYU JV Pool C	138		88		(13)		—		37		—		19		2
BPYU JV Pool D	80		37		121		—		164		—		78		1
Southern Cross East	47		9		125		—		163		—		81		16
The Grand Canal Shoppes	93		75		61		—		79		—		40		—
One Liberty Plaza	131		81		(21)		—		29		29		15		7
680 George Street	38		11		75		—		102		—		51		15
Brookfield Place Sydney	27		13		53		—		67		—		17		4
The Mall in Columbia	49		28		14		—		35		—		17		—
Shops at La Cantera	—		17		43		36		62		—		31		—
BPYU JV Pool G	44		33		9		—		20		—		14		—
Potsdamer Platz	73		54		83		—		102		—		25		—
Baybrook Mall	39		25		1		—		15		—		8		—
Brazil Retail	28		16		36		—		48		—		22		9
D.C. Fund	107		76		(68)		—		(37)		1		(19)		13
BPYU JV Pool F	36		20		5		—		21		—		11		—
Miami Design District	84		75		(36)		—		(27)		—		(6)		—
Other	1,122		1,118		105		53		162		271		63		17
	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 gains (losses)		Income from EAI(1)		Net income		Other compre- hensive income		Partnership’s share of net income		Distributions received
Joint ventures
Canary Wharf Joint Venture	$	619	$	377	$	(713)	$	19	$	(452)	$	(4)	$	(226)	$	4
Ala Moana	269		158		(279)		—		(168)		—		(84)		9
Manhattan West	259		179		379		—		459		(75)		257		221
BPYU JV Pool A	353		230		(543)		—		(420)		—		(210)		—
BPYU JV Pool B	483		356		(601)		4		(470)		—		(240)		—
Fashion Show	103		56		(46)		—		1		—		—		8
BPYU JV Pool C	145		80		(222)		—		(157)		—		(78)		6
Grace Building	108		95		121		—		134		—		67		123
BPYU JV Pool D	71		36		(203)		17		(151)		—		(72)		3
Southern Cross East	40		6		6		—		40		—		20		18
The Grand Canal Shoppes	92		84		(18)		—		(10)		—		(5)		—
One Liberty Plaza	149		88		(34)		—		27		(35)		14		21
680 George Street	36		9		3		—		30		—		15		12
Brazil Retail	28		12		(22)		—		(6)		—		(3)		5
Baybrook Mall	40		26		(134)		—		(120)		—		(61)		—
D.C. Fund	115		80		(89)		—		(54)		(1)		(27)		—
The Mall in Columbia	55		33		(58)		—		(36)		—		(18)		—
Potsdamer Platz	79		61		25		—		43		—		11		—
BPYU JV Pool F	37		7		(64)		—		(34)		—		(18)		—
BPYU JV Pool G	48		33		(27)		—		(12)		—		(8)		—
The Shops at La Cantera	11		24		(28)		31		(10)		—		(5)		—
Miami Design District	65		88		(51)		—		(74)		—		(16)		—
Other	1,063		832		(7)		13		237		8		28		188
	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.

	Year ended December 31, 2019
(US$ Millions)	Revenue		Expenses		Fair value gains (losses)		Income of EAI(1)		Net income		Other compre- hensive income		Partnership’s share of net income		Distributions received
Joint ventures
Canary Wharf Joint Venture	$	555	$	320	$	126	$	22	$	383	$	(11)	$	191	$	9
Ala Moana	300		149		758		—		909		—		455		48
Manhattan West	201		136		155		—		220		(43)		123		42
BPYU JV Pool A	379		214		172		—		337		—		168		6
BPYU JV Pool B	564		350		(50)		65		229		—		116		—
Fashion Show	118		57		(112)		—		(51)		—		(26)		15
BPYU JV Pool C	158		73		7		—		92		—		46		10
Grace Building	107		84		215		—		238		—		119		—
BPYU JV Pool D	—		—		(49)		64		15		—		8		5
Southern Cross East	42		6		110		—		146		—		73		5
The Grand Canal Shoppes	138		73		(44)		—		21		—		11		21
One Liberty Plaza	134		84		(25)		—		25		(33)		13		9
680 George Street	36		9		47		—		74		—		37		15
Brazil Retail	59		54		157		—		162		—		75		39
Baybrook Mall	45		26		204		—		223		—		114		—
D.C. Fund	125		82		(50)		—		(7)		—		(4)		—
The Mall in Columbia	56		29		5		—		32		—		16		—
BPYU JV Pool F	39		17		178		—		200		—		102		—
BPYU JV Pool G	53		32		50		—		71		—		48		—
Miami Design District	72		67		(234)		—		(229)		—		(51)		—
Other	1,746		1,217		349		11		889		(17)		359		142
	4,927		3,079		1,969		162		3,979		(104)		1,993		366
Associates
Diplomat	172		181		(6)		—		(15)		—		(13)		73
BPREP	—		—		—		—		—		—		—		—
Other	216		251		(10)		3		(42)		50		(11)		31
	388		432		(16)		3		(57)		50		(24)		104
Total	$	5,315	$	3,511	$	1,953	$	165	$	3,922	$	(54)	$	1,969	$	470

(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.