Date: | November 4, 2022 | BROOKFIELD PROPERTY PARTNERS L.P., | |||||||||
by its general partner, Brookfield Property Partners Limited | |||||||||||
By: | /s/ Jane Sheere | ||||||||||
Name: | Jane Sheere | ||||||||||
Title: | Secretary |
Exhibit | Description |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Commercial property revenue | $ | 1,182 | $ | 1,272 | $ | 3,622 | $ | 3,841 | ||||||
Hospitality revenue | 407 | 417 | 1,120 | 672 | ||||||||||
Investment and other revenue | 167 | 132 | 811 | 418 | ||||||||||
Total revenue | 1,756 | 1,821 | 5,553 | 4,931 | ||||||||||
Direct commercial property expense(1) | 471 | 475 | 1,393 | 1,457 | ||||||||||
Direct hospitality expense(1) | 282 | 298 | 847 | 605 | ||||||||||
Investment and other expense | 32 | 31 | 303 | 62 | ||||||||||
Interest expense | 707 | 616 | 1,930 | 1,938 | ||||||||||
General and administrative expense | 227 | 235 | 693 | 691 | ||||||||||
Total expenses | 1,719 | 1,655 | 5,166 | 4,753 | ||||||||||
Fair value (losses) gains, net | (387) | 50 | 906 | 1,188 | ||||||||||
Share of earnings from equity accounted investments | 527 | 284 | 1,326 | 743 | ||||||||||
Income before income taxes | 177 | 500 | 2,619 | 2,109 | ||||||||||
Income tax expense | 173 | 100 | 403 | 292 | ||||||||||
Net income | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 | ||||||
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Investment properties | ||||||||
Commercial properties | $ | 60,319 | $ | 62,313 | ||||
Commercial developments | 1,868 | 2,300 | ||||||
Equity accounted investments | 19,059 | 20,807 | ||||||
Property, plant and equipment | 5,240 | 5,623 | ||||||
Cash and cash equivalents | 1,995 | 2,576 | ||||||
Assets held for sale | 4,139 | 10,510 | ||||||
Total assets | 101,672 | 112,004 | ||||||
Debt obligations | 48,733 | 52,321 | ||||||
Liabilities associated with assets held for sale | 419 | 3,082 | ||||||
Total equity | 41,566 | 45,005 | ||||||
Sep. 30, 2022 | ||||||||
(US$ Millions) | Commercial properties | Commercial developments | ||||||
Investment properties, beginning of period | $ | 62,313 | $ | 2,300 | ||||
Acquisitions | 740 | — | ||||||
Capital expenditures | 633 | 350 | ||||||
Dispositions(1) | (109) | (1) | ||||||
Fair value (losses) gains, net | 496 | 25 | ||||||
Foreign currency translation | (2,316) | (184) | ||||||
Transfer between commercial properties and commercial developments | 127 | (127) | ||||||
Impact of deconsolidation due to loss of control(2) | (575) | — | ||||||
Reclassifications to assets held for sale and other changes | (990) | (495) | ||||||
Investment properties, end of period | $ | 60,319 | $ | 1,868 |
(US$ Millions) | Sep. 30, 2022 | ||||
Equity accounted investments, beginning of period | $ | 20,807 | |||
Additions | 63 | ||||
Disposals and return of capital distributions | (916) | ||||
Share of net earnings from equity accounted investments | 1,326 | ||||
Distributions received | (235) | ||||
Foreign currency translation | (903) | ||||
Reclassification (to)/from assets held for sale | (239) | ||||
Impact of deconsolidation(1) | (706) | ||||
Other comprehensive income and other | (138) | ||||
Equity accounted investments, end of period | $ | 19,059 |
2022 | 2021 | 2020 | ||||||||||||||||||||||||
(US$ Millions, except per unit information) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||||||||||||||||||
Revenue | $ | 1,756 | $ | 1,743 | $ | 2,054 | $ | 2,169 | $ | 1,821 | $ | 1,660 | $ | 1,450 | $ | 1,620 | ||||||||||
Direct operating costs(1) | 753 | 729 | 758 | 779 | 773 | 662 | 627 | 632 | ||||||||||||||||||
Net income (loss) | 4 | 520 | 1,692 | 1,682 | 400 | 686 | 731 | (38) | ||||||||||||||||||
Net income (loss) attributable to Unitholders | (38) | 400 | 702 | 620 | 71 | 319 | 266 | (390) | ||||||||||||||||||
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Core Office(1) | $ | 43 | $ | 153 | $ | 277 | $ | 407 | ||||||
Core Retail(1) | 107 | 115 | 463 | 313 | ||||||||||
LP Investments(1) | 74 | 59 | 219 | 93 | ||||||||||
Corporate(1) | (148) | (161) | (479) | (416) | ||||||||||
FFO(1) | $ | 76 | $ | 166 | $ | 480 | $ | 397 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Core Office(1) | $ | 58 | $ | 160 | $ | 311 | $ | 447 | ||||||
Core Retail(1) | 121 | 132 | 459 | 360 | ||||||||||
LP Investments(1) | 41 | 70 | 195 | 110 | ||||||||||
Corporate(1) | (148) | (153) | (477) | (407) | ||||||||||
CFFO(1) | $ | 72 | $ | 209 | $ | 488 | $ | 510 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Core Office(1) | $ | 12,830 | $ | 14,344 | ||||
Core Retail(1) | 15,586 | 14,995 | ||||||
LP Investments(1) | 5,211 | 5,772 | ||||||
Corporate(1) | (9,521) | (10,511) | ||||||
Equity attributable to Unitholders(1) | $ | 24,106 | $ | 24,600 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
FFO | $ | 43 | $ | 153 | $ | 277 | $ | 407 | ||||||
CFFO | 58 | 160 | 311 | 447 | ||||||||||
Net income | 65 | 303 | 765 | 1,245 |
Consolidated | Unconsolidated | |||||||||||||
(US$ Millions, except where noted) | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||||||||||
Total portfolio: | ||||||||||||||
NOI(1) | $ | 263 | $ | 266 | $ | 107 | $ | 124 | ||||||
Number of properties | 62 | 74 | 71 | 70 | ||||||||||
Leasable square feet (in thousands) | 45,932 | 50,361 | 29,879 | 29,469 | ||||||||||
Occupancy | 84.4 | % | 87.2 | % | 90.6 | % | 91.2 | % | ||||||
In-place net rents (per square foot)(2)(3) | $ | 31.92 | $ | 33.41 | $ | 46.33 | $ | 51.51 | ||||||
Same-property: | ||||||||||||||
NOI(1,3) | $ | 263 | $ | 252 | $ | 101 | $ | 99 | ||||||
Number of properties | 62 | 62 | 66 | 66 | ||||||||||
Leasable square feet (in thousands) | 45,932 | 46,024 | 28,069 | 28,053 | ||||||||||
Occupancy | 84.4 | % | 86.9 | % | 90.9 | % | 91.1 | % | ||||||
In-place net rents (per square foot)(2)(3) | $ | 31.92 | $ | 31.36 | $ | 46.21 | $ | 45.79 |
Sep. 30, 2022 | ||||||||
(US$ Millions) | Commercial properties | Commercial developments | ||||||
Investment properties, beginning of period | $ | 24,644 | $ | 1,023 | ||||
Capital expenditures | 169 | 269 | ||||||
Property dispositions | — | (1) | ||||||
Fair value gains, net | (342) | 6 | ||||||
Foreign currency translation | (1,122) | (89) | ||||||
Transfer between commercial properties and commercial developments | (11) | 11 | ||||||
Reclassifications to assets held for sale | (107) | 1 | ||||||
Impact of deconsolidation due to loss of control(1) | (575) | — | ||||||
Investment properties, end of period | $ | 22,656 | $ | 1,220 |
(US$ Millions) | Sep. 30, 2022 | ||||
Equity accounted investments, beginning of period | $ | 9,819 | |||
Additions | 9 | ||||
Disposals and return of capital distributions | (504) | ||||
Share of net earnings, including fair value gains | 831 | ||||
Distributions received | (96) | ||||
Foreign currency translation | (903) | ||||
Impact of deconsolidation due to loss of control(1) | (706) | ||||
Other comprehensive income and Other | 112 | ||||
Equity accounted investments, end of period | $ | 8,562 |
Total square feet under construction (in 000’s) | Proportionate square feet under construction (in 000’s) | Expected date of accounting stabilization | Cost | Loan | ||||||||||||||||||||||
(Millions, except square feet in thousands) | Percent pre-leased | Total(1) | To-date | Total | Drawn | |||||||||||||||||||||
Office: | ||||||||||||||||||||||||||
1 The Esplanade, Perth(2) | 610 | 153 | Q2 2023 | 84 | % | A$ | 170 | A$ | 140 | A$ | 113 | A$ | 69 | |||||||||||||
Two Manhattan West, Midtown New York(2) | 1,948 | 1,091 | Q4 2025 | 75 | % | $ | 1,342 | $ | 981 | $ | 812 | $ | 466 | |||||||||||||
Leadenhall Court, London | 430 | 430 | Q1 2026 | 57 | % | £ | 578 | £ | 230 | £ | 426 | £ | 122 | |||||||||||||
Multifamily: | ||||||||||||||||||||||||||
5 & 8 Harbord Square, London(2) | 82 | 41 | n/a | n/a | £ | 32 | £ | 17 | £ | 25 | £ | 8 | ||||||||||||||
755 Figueroa, Los Angeles(2) | 674 | 319 | Q2 2025 | n/a | $ | 270 | $ | 229 | $ | 166 | $ | 123 | ||||||||||||||
Mixed-Use: | ||||||||||||||||||||||||||
1 Charter Street, London(2) | 94 | 24 | Q4 2024 | n/a | £ | 36 | £ | 16 | £ | 19 | £ | 4 | ||||||||||||||
Total | 3,838 | 2,058 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
FFO | $ | 107 | $ | 115 | $ | 463 | $ | 313 | ||||||
CFFO | 121 | 132 | 459 | 360 | ||||||||||
Net income (loss) | 91 | (156) | 698 | (314) |
Consolidated | Unconsolidated | |||||||||||||
(US$ Millions, except where noted) | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||||||||||
Total portfolio: | ||||||||||||||
NOI | $ | 236 | $ | 237 | $ | 174 | $ | 175 | ||||||
Number of malls and urban retail properties | 58 | 59 | 53 | 56 | ||||||||||
Leasable square feet (in thousands)(1) | 51,678 | 51,888 | 59,843 | 62,840 | ||||||||||
Same-property: | ||||||||||||||
Number of malls and urban retail properties | 52 | 52 | 49 | 49 | ||||||||||
Leasable square feet - mall and freestanding (in thousands) | 22,779 | 22,673 | 27,551 | 27,049 | ||||||||||
Leased % | 93.3 | % | 92.0 | % | 96.0 | % | 94.7 | % | ||||||
Occupancy % | 92.1 | % | 91.0 | % | 94.7 | % | 93.2 | % | ||||||
Permanent Occupancy % | 86.2 | % | 85.3 | % | 89.5 | % | 88.1 | % | ||||||
Sep. 30, 2022 | |||||
(US$ Millions) | Commercial properties | ||||
Investment properties, beginning of period | $ | 18,991 | |||
Property acquisitions | 689 | ||||
Capital expenditures | 203 | ||||
Property dispositions | (8) | ||||
Fair value gains, net | 161 | ||||
Transfer between commercial properties and commercial developments | (98) | ||||
Reclassifications to assets held for sale | (86) | ||||
Investment properties, end of period | $ | 19,852 |
(US$ Millions) | Sep. 30, 2022 | ||||
Equity accounted investments, beginning of year | $ | 9,945 | |||
Additions | 27 | ||||
Disposals and return of capital | (368) | ||||
Share of net earnings from equity accounted investments | 437 | ||||
Distributions | (20) | ||||
Other | (264) | ||||
Equity accounted investments, end of period | $ | 9,757 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
FFO | $ | 74 | $ | 59 | $ | 219 | $ | 93 | ||||||
CFFO | 41 | 70 | 195 | 110 | ||||||||||
Net income | (5) | 346 | 1,066 | 1,238 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
FFO | $ | (148) | $ | (161) | $ | (479) | $ | (416) | ||||||
CFFO | (148) | (153) | (477) | (407) | ||||||||||
Net loss | (147) | (93) | (313) | (352) |
(US$ Millions) | Sep. 30, 2022 | ||||
2022 | $ | 2,742 | |||
2023 | 11,189 | ||||
2024 | 9,788 | ||||
2025 | 3,963 | ||||
2026 | 2,108 | ||||
2027 and thereafter | 6,634 | ||||
Deferred financing costs | (174) | ||||
Secured debt obligations | $ | 36,250 | |||
Debt to investment property ratio | 58.3 | % |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Commercial property revenue | $ | 1,182 | $ | 1,272 | $ | 3,622 | $ | 3,841 | ||||||
Direct commercial property expense | (471) | (475) | (1,393) | (1,457) | ||||||||||
Add: Depreciation and amortization expense in direct commercial property expense(1) | 7 | 8 | 22 | 30 | ||||||||||
Commercial property NOI(1) | 718 | 805 | 2,251 | 2,414 | ||||||||||
Hospitality revenue | 407 | 417 | 1,120 | 672 | ||||||||||
Direct hospitality expense | (282) | (298) | (847) | (605) | ||||||||||
Add: Depreciation and amortization expense in direct hospitality expense(1) | 61 | 79 | 196 | 193 | ||||||||||
Hospitality NOI | 186 | 198 | 469 | 260 | ||||||||||
Total NOI | 904 | 1,003 | 2,720 | 2,674 | ||||||||||
Investment and other revenue | 167 | 132 | 811 | 418 | ||||||||||
Share of net earnings from equity accounted investments | 527 | 284 | 1,326 | 743 | ||||||||||
Interest expense | (707) | (616) | (1,930) | (1,938) | ||||||||||
Depreciation and amortization(1) | (68) | (87) | (218) | (223) | ||||||||||
General and administrative expense | (227) | (235) | (693) | (691) | ||||||||||
Investment and other expense | (32) | (31) | (303) | (62) | ||||||||||
Fair value (losses) gains, net | (387) | 50 | 906 | 1,188 | ||||||||||
Income before taxes | 177 | 500 | 2,619 | 2,109 | ||||||||||
Income tax expense | (173) | (100) | (403) | (292) | ||||||||||
Net income | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 | ||||||
Net income attributable to non-controlling interests | 42 | 329 | 1,152 | 1,161 | ||||||||||
Net (loss) income attributable to Unitholders | $ | (38) | $ | 71 | $ | 1,064 | $ | 656 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net income | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 | ||||||
Add (deduct): | ||||||||||||||
Fair value losses (gains), net | 387 | (50) | (906) | (1,188) | ||||||||||
Share of equity accounted fair value (gains), net | (401) | (109) | (770) | (290) | ||||||||||
Depreciation and amortization of real estate assets(1) | 45 | 57 | 143 | 148 | ||||||||||
Income tax expense | 173 | 100 | 403 | 292 | ||||||||||
Non-controlling interests in above items | (132) | (232) | (606) | (382) | ||||||||||
FFO | $ | 76 | $ | 166 | $ | 480 | $ | 397 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) | 15 | 15 | 43 | 44 | ||||||||||
Transaction costs, net(2) | 21 | 23 | 5 | 96 | ||||||||||
Imputed interest(3) | 3 | 4 | 12 | 13 | ||||||||||
BSREP III earnings(4) | (43) | 1 | (52) | (40) | ||||||||||
Company FFO | $ | 72 | $ | 209 | $ | 488 | $ | 510 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Commercial property revenue | $ | 462 | $ | 466 | $ | 1,397 | $ | 1,425 | ||||||
Hospitality revenue(1) | 5 | 2 | 15 | 5 | ||||||||||
Direct commercial property expense | (202) | (203) | (610) | (631) | ||||||||||
Direct hospitality expense(1) | (5) | (3) | (16) | (10) | ||||||||||
Add: Depreciation and amortization included in direct commercial property expense and direct hospitality expense(2) | 3 | 4 | 9 | 12 | ||||||||||
Total NOI - Core Office(2) | $ | 263 | $ | 266 | $ | 795 | $ | 801 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Same-property NOI | $ | 263 | $ | 252 | $ | 797 | $ | 765 | ||||||
Currency variance | — | 6 | — | 14 | ||||||||||
NOI related to acquisitions and dispositions | — | 8 | (2) | 22 | ||||||||||
Total NOI - Core Office(1) | 263 | 266 | 795 | 801 | ||||||||||
Investment and other revenue | 78 | 81 | 241 | 188 | ||||||||||
Interest expense | (197) | (142) | (515) | (424) | ||||||||||
Depreciation and amortization included in direct commercial property expense and direct hospitality expense(2) | (3) | (4) | (9) | (12) | ||||||||||
Investment and other expense | (32) | (31) | (99) | (62) | ||||||||||
General and administrative expense | (61) | (55) | (185) | (183) | ||||||||||
Fair value (losses) gains, net | (208) | 46 | (120) | 431 | ||||||||||
Share of net earnings from equity accounted investments | 361 | 137 | 831 | 514 | ||||||||||
Income before taxes | 201 | 298 | 939 | 1,253 | ||||||||||
Income tax (expense) benefit | (136) | 5 | (174) | (8) | ||||||||||
Net income | 65 | 303 | 765 | 1,245 | ||||||||||
Net income attributable to non-controlling interests | 62 | 74 | 183 | 259 | ||||||||||
Net income attributable to Unitholders | $ | 3 | $ | 229 | $ | 582 | $ | 986 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net income | $ | 65 | $ | 303 | $ | 765 | $ | 1,245 | ||||||
Add (deduct): | ||||||||||||||
Fair value losses (gains), net | 208 | (46) | 120 | (431) | ||||||||||
Share of equity accounted fair value (gains), net | (322) | (46) | (638) | (258) | ||||||||||
Depreciation and amortization of real estate assets(1) | 1 | 2 | 3 | 4 | ||||||||||
Income tax expense | 136 | (5) | 174 | 8 | ||||||||||
Non-controlling interests in above items | (45) | (55) | (147) | (161) | ||||||||||
FFO | $ | 43 | $ | 153 | $ | 277 | $ | 407 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) | 5 | 3 | 12 | 10 | ||||||||||
Transaction costs, net(1) | 7 | — | 10 | 17 | ||||||||||
Imputed interest(3) | 3 | 4 | 12 | 13 | ||||||||||
Company FFO | $ | 58 | $ | 160 | $ | 311 | $ | 447 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Unconsolidated properties NOI | $ | 107 | $ | 124 | $ | 349 | $ | 357 | ||||||
Unconsolidated properties fair value gains, net | 322 | 46 | 638 | 258 | ||||||||||
Other(1) | (68) | (33) | (156) | (101) | ||||||||||
Share of net earnings from equity accounted investments | $ | 361 | $ | 137 | $ | 831 | $ | 514 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Commercial property revenue | $ | 344 | $ | 344 | $ | 1,021 | $ | 1,014 | ||||||
Direct commercial property expense | (113) | (124) | (314) | (337) | ||||||||||
Add: Depreciation and amortization included in direct commercial property expense(1) | 5 | 17 | 15 | 17 | ||||||||||
Total NOI | $ | 236 | $ | 237 | $ | 722 | $ | 694 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Total NOI - Core Retail(1) | $ | 236 | $ | 237 | $ | 722 | $ | 694 | ||||||
Investment and other revenue | 37 | 36 | 119 | 102 | ||||||||||
Interest expense | (175) | (164) | (470) | (492) | ||||||||||
Depreciation and amortization included in direct commercial property expense(2) | (5) | (5) | (15) | (17) | ||||||||||
General and administrative expense | (51) | (55) | (159) | (156) | ||||||||||
Fair value (losses) gains, net | (28) | (376) | 122 | (772) | ||||||||||
Share of net earnings from equity accounted investments | 122 | 156 | 437 | 323 | ||||||||||
Income (loss) before taxes | 136 | (171) | 756 | (318) | ||||||||||
Income tax (expense) benefit | (45) | 15 | (58) | 4 | ||||||||||
Net income (loss) | $ | 91 | $ | (156) | $ | 698 | $ | (314) | ||||||
Net income (loss) attributable to non-controlling interests | 13 | (14) | 64 | (18) | ||||||||||
Net income (loss) attributable to Unitholders | $ | 78 | $ | (142) | $ | 634 | $ | (296) |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net income (loss) | $ | 91 | $ | (156) | $ | 698 | $ | (314) | ||||||
Add (deduct): | ||||||||||||||
Share of equity accounted fair value (gains), net | (45) | (74) | (130) | (93) | ||||||||||
Fair value losses (gains), net | 28 | 376 | (122) | 772 | ||||||||||
Income tax expense (benefit) | 45 | (15) | 58 | (4) | ||||||||||
Non-controlling interests in above items | (12) | (16) | (41) | (48) | ||||||||||
FFO | $ | 107 | $ | 115 | $ | 463 | $ | 313 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) | 5 | 5 | 14 | 17 | ||||||||||
Transaction costs, net(2) | 9 | 12 | (18) | 30 | ||||||||||
Company FFO | $ | 121 | $ | 132 | $ | 459 | $ | 360 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Unconsolidated properties NOI | $ | 174 | $ | 175 | $ | 540 | $ | 499 | ||||||
Unconsolidated properties fair value gains, net and income tax expense | 45 | 74 | 130 | 93 | ||||||||||
Other(1) | (97) | (93) | (233) | (269) | ||||||||||
Share of net earnings from equity accounted investments | $ | 122 | $ | 156 | $ | 437 | $ | 323 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Commercial property revenue | $ | 376 | $ | 462 | $ | 1,204 | $ | 1,402 | ||||||
Hospitality revenue | 402 | 415 | 1,105 | 667 | ||||||||||
Direct commercial property expense | (156) | (181) | (469) | (489) | ||||||||||
Direct hospitality expense | (277) | (390) | (831) | (595) | ||||||||||
Add: Depreciation and amortization included in direct commercial property expense and direct hospitality expense(1) | 60 | 194 | 194 | 194 | ||||||||||
Total NOI(1) | 405 | 500 | 1,203 | 1,179 | ||||||||||
Investment and other revenue | 51 | 15 | 448 | 125 | ||||||||||
Interest expense | (262) | (231) | (733) | (801) | ||||||||||
General and administrative expense | (49) | (56) | (142) | (167) | ||||||||||
Investment and other expense | — | — | (204) | — | ||||||||||
Depreciation and amortization included in direct commercial property expense and direct hospitality expense(2) | (60) | (78) | (194) | (194) | ||||||||||
Fair value (losses) gains, net | (146) | 319 | 772 | 1,448 | ||||||||||
Share of net earnings (losses) from equity accounted investments | 44 | (9) | 58 | (94) | ||||||||||
Income (loss) before taxes | (17) | 460 | 1,208 | 1,496 | ||||||||||
Income tax benefit (expense) | 12 | (114) | (142) | (258) | ||||||||||
Net (loss) income | (5) | 346 | 1,066 | 1,238 | ||||||||||
Net (loss) income attributable to non-controlling interests | (15) | 252 | 818 | 903 | ||||||||||
Net income attributable to Unitholders | $ | 10 | $ | 94 | $ | 248 | $ | 335 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net (loss) income | $ | (5) | $ | 346 | $ | 1,066 | $ | 1,238 | ||||||
Add (deduct): | ||||||||||||||
Fair value (gains), net | 146 | (319) | (772) | (1,448) | ||||||||||
Share of equity accounted fair value losses, net | (34) | 11 | (2) | 61 | ||||||||||
Depreciation and amortization of real estate assets(1) | 44 | 55 | 140 | 144 | ||||||||||
Income tax expense | (12) | 114 | 142 | 258 | ||||||||||
Non-controlling interests in above items | (65) | (148) | (355) | (160) | ||||||||||
FFO | $ | 74 | $ | 59 | $ | 219 | $ | 93 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) | 5 | 7 | 17 | 17 | ||||||||||
Transaction costs, net(2) | 5 | 3 | 11 | 40 | ||||||||||
BSREP III earnings(3) | (43) | 1 | (52) | (40) | ||||||||||
CFFO | $ | 41 | $ | 70 | $ | 195 | $ | 110 | ||||||
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net loss | $ | (147) | $ | (93) | $ | (313) | $ | (352) | ||||||
Net loss attributable to non-controlling interests | (18) | 17 | 87 | 17 | ||||||||||
Net loss attributable to Unitholders | $ | (129) | $ | (110) | $ | (400) | $ | (369) |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net loss | $ | (147) | $ | (93) | $ | (313) | $ | (352) | ||||||
Add (deduct): | ||||||||||||||
Fair value (gains) losses, net | 5 | (61) | (132) | (81) | ||||||||||
Income tax expense | 4 | 6 | 29 | 30 | ||||||||||
Non-controlling interests in above items | (10) | (13) | (63) | (13) | ||||||||||
FFO | $ | (148) | $ | (161) | $ | (479) | $ | (416) | ||||||
Add (deduct): | ||||||||||||||
Transaction costs, net(1) | — | 8 | 2 | 9 | ||||||||||
CFFO | $ | (148) | $ | (153) | $ | (477) | $ | (407) |
(US$ Millions) For the three months ended Sep. 30, 2022 | Brookfield Property Partners L.P. | BOP Split Corp. | BOPI | Brookfield Property Preferred Equity Inc. | Brookfield Property Finance ULC | Brookfield Property Preferred L.P. | Holding entities(2) | Additional holding entities and eliminations(3) | Consolidating adjustments(4) | Brookfield Property Partners L.P consolidated | ||||||||||||||||||||||
Revenue | $ | — | $ | 8 | $ | 55 | $ | — | $ | 25 | $ | 52 | $ | 156 | $ | 84 | $ | 1,376 | $ | 1,756 | ||||||||||||
Net income attributable to unitholders(1) | (13) | 36 | (263) | — | 138 | 41 | (36) | 70 | (11) | (38) | ||||||||||||||||||||||
For the three months ended Sep. 30, 2021 | ||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | 5 | $ | (67) | $ | — | $ | 24 | $ | 36 | $ | 136 | $ | 14 | $ | 1,673 | $ | 1,821 | ||||||||||||
Net income attributable to unitholders(1) | 32 | 37 | 103 | — | 45 | 28 | 71 | 10 | (255) | 71 |
(US$ Millions) For the nine months ended Sep. 30, 2022 | Brookfield Property Partners L.P. | BOP Split Corp. | BOPI | Brookfield Property Preferred Equity Inc. | Brookfield Property Finance ULC | Brookfield Property Preferred L.P. | Holding entities(2) | Additional holding entities and eliminations(3) | Consolidating adjustments(4) | Brookfield Property Partners L.P consolidated | ||||||||||||||||||||||
Revenue | $ | — | $ | 20 | $ | 72 | $ | — | $ | 76 | $ | 150 | $ | 480 | $ | 275 | $ | 4,480 | $ | 5,553 | ||||||||||||
Net income attributable to unitholders(1) | 382 | 431 | (99) | — | 177 | 118 | 1,066 | 306 | (1,317) | 1,064 | ||||||||||||||||||||||
For the nine months ended Sep. 30, 2021 | ||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | 20 | $ | 218 | $ | — | $ | 65 | $ | 36 | $ | 406 | $ | 250 | $ | 3,936 | $ | 4,931 | ||||||||||||
Net income attributable to unitholders(1) | 318 | 576 | 496 | — | (5) | 28 | 656 | 247 | (1,660) | 656 |
(US$ Millions) As of Sep. 30, 2022 | Brookfield Property Partners L.P. | BOP Split Corp. | BOPI | Brookfield Property Preferred Equity Inc. | Brookfield Property Finance ULC | Brookfield Property Preferred L.P. | Holding entities(2) | Additional holding entities and eliminations(3) | Consolidating adjustments(4) | Brookfield Property Partners L.P consolidated | ||||||||||||||||||||||
Current assets | $ | — | $ | 436 | $ | 167 | $ | — | $ | 1,910 | $ | 2,952 | $ | 5,683 | $ | 218 | $ | (6,973) | $ | 4,393 | ||||||||||||
Non-current assets | 9,356 | 9,554 | 16,868 | — | 403 | — | 32,304 | 2,349 | 22,306 | 93,140 | ||||||||||||||||||||||
Assets held for sale | — | — | — | — | — | — | — | — | 4,139 | 4,139 | ||||||||||||||||||||||
Current liabilities | — | 2,552 | 899 | — | 695 | — | 7,269 | 1,416 | 6,181 | 19,012 | ||||||||||||||||||||||
Non-current liabilities | — | 21 | 4,350 | — | 1,445 | 659 | 5,191 | 60 | 28,949 | 40,675 | ||||||||||||||||||||||
Liabilities associated with assets held for sale | — | — | — | — | — | — | — | — | 419 | 419 | ||||||||||||||||||||||
Preferred equity | 699 | 3,430 | — | — | — | — | 722 | — | (4,152) | 699 | ||||||||||||||||||||||
Equity attributable to interests of others in operating subsidiaries and properties | — | — | 2,284 | — | — | — | — | — | 14,477 | 16,761 | ||||||||||||||||||||||
Equity attributable to unitholders(1) | $ | 8,657 | $ | 3,987 | $ | 9,502 | $ | — | $ | 173 | $ | 2,293 | $ | 24,805 | $ | 1,091 | $ | (26,402) | $ | 24,106 |
(US$ Millions) As of Dec. 31, 2021 | Brookfield Property Partners L.P. | BOP Split Corp. | BOPI | Brookfield Property Preferred Equity Inc. | Brookfield Property Finance ULC | Brookfield Property Preferred L.P. | Holding entities(2) | Additional holding entities and eliminations(3) | Consolidating adjustments(4) | Brookfield Property Partners L.P consolidated | ||||||||||||||||||||||
Current assets | $ | — | $ | 492 | $ | 145 | $ | — | $ | 1,915 | $ | 2,952 | $ | 6,468 | $ | 206 | $ | (7,253) | $ | 4,925 | ||||||||||||
Non-current assets | 11,270 | 10,491 | 23,197 | — | 441 | — | 40,820 | 2,320 | 8,030 | 96,569 | ||||||||||||||||||||||
Assets held for sale | — | — | — | — | — | — | — | — | 10,510 | 10,510 | ||||||||||||||||||||||
Current liabilities | — | 2,906 | 1,051 | — | 199 | — | 7,710 | 1,165 | 4,534 | 17,565 | ||||||||||||||||||||||
Non-current liabilities | — | 21 | 4,467 | — | 2,153 | 660 | 13,558 | 582 | 24,911 | 46,352 | ||||||||||||||||||||||
Liabilities associated with assets held for sale | — | — | — | — | — | — | — | — | 3,082 | 3,082 | ||||||||||||||||||||||
Preferred equity | 699 | 4,314 | — | — | — | — | 722 | — | (5,036) | 699 | ||||||||||||||||||||||
Equity attributable to interests of others in operating subsidiaries and properties | — | — | 2,723 | — | — | — | — | — | 16,983 | 19,706 | ||||||||||||||||||||||
Equity attributable to unitholders(1) | $ | 10,571 | $ | 3,742 | $ | 15,101 | $ | — | $ | 4 | $ | 2,292 | $ | 25,298 | $ | 779 | $ | (33,187) | $ | 24,600 |
(US$ Millions) For the nine months ended Sep. 30, 2022 | BPY | New LP | Other Guarantors | Consolidating adjustments | Combined Guarantor entities | ||||||||||||
Revenue - from non-guarantor subsidiaries | $ | — | $ | 150 | $ | 214 | $ | (23) | $ | 341 | |||||||
Dividend income - from non-guarantor subsidiaries | 347 | — | 946 | (873) | 420 | ||||||||||||
Operating profit | 347 | 118 | 808 | (864) | 409 | ||||||||||||
Net income | 347 | 118 | 941 | (864) | 542 |
(US$ Millions) For the year ended Dec. 31, 2021 | BPY | New LP | Other Guarantors | Consolidating adjustments | Combined Guarantor entities | ||||||||||||
Revenue | $ | — | $ | — | $ | 2 | $ | — | $ | 2 | |||||||
Revenue - from non-guarantor subsidiaries | — | 85 | 481 | (82) | 484 | ||||||||||||
Dividend income - from non-guarantor subsidiaries | 416 | — | 669 | (628) | 457 | ||||||||||||
Operating profit | 409 | 67 | 612 | (628) | 460 | ||||||||||||
Net income | 409 | 67 | 598 | (628) | 446 |
(US$ Millions) As at Sep. 30, 2022 | BPY | New LP | Other Guarantors | Consolidating adjustments | Combined Guarantor entities | ||||||||||||
Current assets | $ | 1 | $ | — | $ | 120 | $ | — | $ | 121 | |||||||
Current assets - due from non-guarantor subsidiaries | — | 2,952 | 6,316 | (1,264) | 8,004 | ||||||||||||
Long-term assets | — | — | 99 | — | 99 | ||||||||||||
Long-term assets - due from related parties | — | — | 51 | — | 51 | ||||||||||||
Current liabilities | — | — | 310 | — | 310 | ||||||||||||
Current liabilities - due to related parties | — | — | 23 | — | 23 | ||||||||||||
Current liabilities - due to non-guarantor subsidiaries | — | — | 8,887 | (1,264) | 7,623 | ||||||||||||
Long-term liabilities | — | — | 2,429 | — | 2,429 | ||||||||||||
Long-term liabilities - due to non-guarantor subsidiaries | — | — | 1,704 | — | 1,704 | ||||||||||||
Preferred equity and capital securities | 699 | 660 | 1,848 | (908) | 2,299 | ||||||||||||
Non-controlling interests | — | — | 1,870 | — | 1,870 |
(US$ Millions) As at Dec. 31, 2021 | BPY | New LP | Other Guarantors | Consolidating adjustments | Combined Guarantor entities | ||||||||||||
Current assets | $ | 1 | $ | — | $ | 55 | $ | — | $ | 56 | |||||||
Current assets - due from non-guarantor subsidiaries | — | 2,952 | 7,397 | (1,465) | 8,884 | ||||||||||||
Long-term assets | — | — | 60 | — | 60 | ||||||||||||
Current liabilities | — | — | 249 | 249 | |||||||||||||
Current liabilities - due to related parties | 1 | — | 699 | 700 | |||||||||||||
Current liabilities - due to non-guarantor subsidiaries | — | — | 8,703 | (1,465) | 7,238 | ||||||||||||
Long-term liabilities | — | — | 2,432 | — | 2,432 | ||||||||||||
Long-term liabilities - due to non-guarantor subsidiaries | — | — | 10,597 | — | 10,597 | ||||||||||||
Preferred equity and capital securities | 722 | 474 | 1,808 | (722) | 2,282 | ||||||||||||
Non-controlling interests | — | — | 2,088 | 2,088 |
Unaudited | As at | |||||||||||||
(US$ Millions) | Note | Sep. 30, 2022 | Dec. 31, 2021 | |||||||||||
Assets | ||||||||||||||
Non-current assets | ||||||||||||||
Investment properties | 4 | $ | 62,187 | $ | 64,613 | |||||||||
Equity accounted investments | 5 | 19,059 | 20,807 | |||||||||||
Property, plant and equipment | 6 | 5,240 | 5,623 | |||||||||||
Goodwill | 7 | 865 | 832 | |||||||||||
Intangible assets | 8 | 795 | 964 | |||||||||||
Other non-current assets | 9 | 4,758 | 3,578 | |||||||||||
Loans and notes receivable | 236 | 152 | ||||||||||||
Total non-current assets | 93,140 | 96,569 | ||||||||||||
Current assets | ||||||||||||||
Loans and notes receivable | 278 | 73 | ||||||||||||
Accounts receivable and other | 10 | 2,120 | 2,276 | |||||||||||
Cash and cash equivalents | 1,995 | 2,576 | ||||||||||||
Total current assets | 4,393 | 4,925 | ||||||||||||
Assets held for sale | 11 | 4,139 | 10,510 | |||||||||||
Total assets | 101,672 | $ | 112,004 | |||||||||||
Liabilities and equity | ||||||||||||||
Non-current liabilities | ||||||||||||||
Debt obligations | 12 | 33,196 | $ | 38,579 | ||||||||||
Capital securities | 13 | 2,892 | 3,024 | |||||||||||
Other non-current liabilities | 15 | 1,540 | 1,499 | |||||||||||
Deferred tax liabilities | 3,047 | 3,250 | ||||||||||||
Total non-current liabilities | 40,675 | 46,352 | ||||||||||||
Current liabilities | ||||||||||||||
Debt obligations | 12 | 15,537 | 13,742 | |||||||||||
Capital securities | 13 | 57 | 61 | |||||||||||
Accounts payable and other liabilities | 16 | 3,418 | 3,762 | |||||||||||
Total current liabilities | 19,012 | 17,565 | ||||||||||||
Liabilities associated with assets held for sale | 11 | 419 | 3,082 | |||||||||||
Total liabilities | 60,106 | 66,999 | ||||||||||||
Equity | ||||||||||||||
Limited partners | 17 | 8,630 | 8,805 | |||||||||||
General partner | 17 | 4 | 4 | |||||||||||
Preferred equity | 17 | 699 | 699 | |||||||||||
Non-controlling interests attributable to: | ||||||||||||||
Redeemable/exchangeable and special limited partnership units | 17, 18 | 15,426 | 15,736 | |||||||||||
FV LTIP units of the Operating Partnership | 17, 18 | 46 | 55 | |||||||||||
Interests of others in operating subsidiaries and properties | 18 | 16,761 | 19,706 | |||||||||||
Total equity | 41,566 | 45,005 | ||||||||||||
Total liabilities and equity | $ | 101,672 | $ | 112,004 |
Unaudited | Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||||
(US$ Millions, except per unit amounts) | Note | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Commercial property revenue | 19 | $ | 1,182 | $ | 1,272 | $ | 3,622 | $ | 3,841 | ||||||||
Hospitality revenue | 20 | 407 | 417 | 1,120 | 672 | ||||||||||||
Investment and other revenue | 21 | 167 | 132 | 811 | 418 | ||||||||||||
Total revenue | 1,756 | 1,821 | 5,553 | 4,931 | |||||||||||||
Direct commercial property expense | 22 | 471 | 475 | 1,393 | 1,457 | ||||||||||||
Direct hospitality expense | 23 | 282 | 298 | 847 | 605 | ||||||||||||
Investment and other expense | 32 | 31 | 303 | 62 | |||||||||||||
Interest expense | 707 | 616 | 1,930 | 1,938 | |||||||||||||
General and administrative expense | 24 | 227 | 235 | 693 | 691 | ||||||||||||
Total expenses | 1,719 | 1,655 | 5,166 | 4,753 | |||||||||||||
Fair value (losses) gains, net | 25 | (387) | 50 | 906 | 1,188 | ||||||||||||
Share of net earnings from equity accounted investments | 5 | 527 | 284 | 1,326 | 743 | ||||||||||||
Income before income taxes | 177 | 500 | 2,619 | 2,109 | |||||||||||||
Income tax expense | 14 | 173 | 100 | 403 | 292 | ||||||||||||
Net income | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 | |||||||||
Net income (loss) attributable to: | |||||||||||||||||
Limited partners | $ | (14) | $ | 30 | $ | 381 | $ | 304 | |||||||||
General partner | — | — | — | — | |||||||||||||
Non-controlling interests attributable to: | |||||||||||||||||
Redeemable/exchangeable and special limited partnership units | (24) | 40 | 681 | 324 | |||||||||||||
Limited partnership units of Brookfield Office Properties Exchange LP | — | — | — | 2 | |||||||||||||
FV LTIP units of the Operating Partnership | — | — | 2 | 1 | |||||||||||||
Class A shares of Brookfield Property Retail Holding LLC | — | 1 | — | 25 | |||||||||||||
Interests of others in operating subsidiaries and properties | 42 | 329 | 1,152 | 1,161 | |||||||||||||
Total | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 | |||||||||
Unaudited | Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||||
(US$ Millions) | Note | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 | |||||||||
Other comprehensive income (loss) | 26 | ||||||||||||||||
Items that may be reclassified to net income: | |||||||||||||||||
Foreign currency translation | (323) | (302) | (838) | (277) | |||||||||||||
Cash flow hedges | (19) | (36) | 47 | 59 | |||||||||||||
Equity accounted investments | 55 | 9 | 128 | 36 | |||||||||||||
Items that will not be reclassified to net income: | |||||||||||||||||
Securities - fair value through other comprehensive loss ("FVTOCI") | (1) | 6 | (21) | 4 | |||||||||||||
Share of revaluation deficit on equity accounted investments | — | — | — | (1) | |||||||||||||
Remeasurement of defined benefit obligations | — | — | 1 | — | |||||||||||||
Revaluation deficit | (8) | (6) | (8) | (105) | |||||||||||||
Total other comprehensive (loss) income | (296) | (329) | (691) | (284) | |||||||||||||
Total comprehensive (loss) income | $ | (292) | $ | 71 | $ | 1,525 | $ | 1,533 | |||||||||
Comprehensive income attributable to: | |||||||||||||||||
Limited partners | |||||||||||||||||
Net (loss) income | $ | (14) | $ | 30 | $ | 381 | $ | 304 | |||||||||
Other comprehensive (loss) income | (116) | (111) | (211) | (42) | |||||||||||||
(130) | (81) | 170 | 262 | ||||||||||||||
Non-controlling interests | |||||||||||||||||
Redeemable/exchangeable and special limited partnership units | |||||||||||||||||
Net (loss) income | (24) | 40 | 681 | 324 | |||||||||||||
Other comprehensive (loss) income | (206) | (142) | (376) | (71) | |||||||||||||
(230) | (102) | 305 | 253 | ||||||||||||||
Limited partnership units of Brookfield Office Properties Exchange LP | |||||||||||||||||
Net income | — | — | — | 2 | |||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||
— | — | — | 2 | ||||||||||||||
FV LTIP units of the Operating Partnership | |||||||||||||||||
Net income | — | — | 2 | 1 | |||||||||||||
Other comprehensive (loss) | — | — | (1) | — | |||||||||||||
— | — | 1 | 1 | ||||||||||||||
Class A shares of Brookfield Property Retail Holding LLC | |||||||||||||||||
Net income | — | 1 | — | 25 | |||||||||||||
Other comprehensive (loss) income | — | (5) | — | 1 | |||||||||||||
— | (4) | — | 26 | ||||||||||||||
Interests of others in operating subsidiaries and properties | |||||||||||||||||
Net income | 42 | 329 | 1,152 | 1,161 | |||||||||||||
Other comprehensive income (loss) | 26 | (71) | (103) | (172) | |||||||||||||
68 | 258 | 1,049 | 989 | ||||||||||||||
Total comprehensive income | $ | (292) | $ | 71 | $ | 1,525 | $ | 1,533 |
Limited partners | General partner | Preferred Equity | Non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited (US$ Millions) | Capital | Retained earnings | Ownership Changes | Accumulated other comprehensive (loss) income | Total limited partners equity | Capital | Retained earnings | Ownership Changes | Accumulated other comprehensive loss | Total general partner equity | Total preferred equity | Redeemable / exchangeable and special limited partnership units | Limited partnership units of Brookfield Office Properties Exchange LP | FV LTIP units of the Operating Partnership | Class A shares of Brookfield Property Retail Holding LLC | Interests of others in operating subsidiaries and properties | Total equity | |||||||||||||||||||||||||||||||||||||||||||||
Balance as at Dec. 31, 2021 | $ | 5,861 | $ | 457 | $ | 2,598 | $ | (111) | $ | 8,805 | $ | 4 | $ | 2 | $ | (1) | $ | (1) | $ | 4 | $ | 699 | $ | 15,736 | $ | — | $ | 55 | $ | — | $ | 19,706 | $ | 45,005 | ||||||||||||||||||||||||||||
Net income | — | 381 | — | — | 381 | — | — | — | — | — | — | 681 | — | 2 | — | 1,152 | 2,216 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (211) | (211) | — | — | — | — | — | — | (376) | — | (1) | — | (103) | (691) | |||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | 381 | — | (211) | 170 | — | — | — | — | — | — | 305 | — | 1 | — | 1,049 | 1,525 | |||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | (314) | — | — | (314) | — | — | — | — | — | — | (561) | — | (2) | — | (3,023) | (3,900) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred distributions | — | (12) | — | — | (12) | — | — | — | — | — | — | (21) | — | — | — | — | (33) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance / repurchase of interests in operating subsidiaries | — | (29) | 4 | — | (25) | — | — | — | — | — | — | (44) | — | 9 | — | (971) | (1,031) | |||||||||||||||||||||||||||||||||||||||||||||
Change in relative interests of non-controlling interests | — | — | 6 | — | 6 | — | — | — | — | — | — | 11 | — | (17) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance as at Sep. 30, 2022 | $ | 5,861 | $ | 483 | $ | 2,608 | $ | (322) | $ | 8,630 | $ | 4 | $ | 2 | $ | (1) | $ | (1) | $ | 4 | $ | 699 | $ | 15,426 | $ | — | $ | 46 | $ | — | $ | 16,761 | $ | 41,566 | ||||||||||||||||||||||||||||
Balance as at Dec. 31, 2020 | $ | 8,562 | $ | 486 | $ | 3,010 | $ | (349) | $ | 11,709 | $ | 4 | $ | 2 | $ | (1) | $ | (1) | $ | 4 | $ | 699 | $ | 12,249 | $ | 73 | $ | 52 | $ | 1,050 | $ | 15,687 | $ | 41,523 | ||||||||||||||||||||||||||||
Net income | — | 304 | — | — | 304 | — | — | — | — | — | — | 324 | 2 | 1 | 25 | 1,161 | 1,817 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | (42) | (42) | — | — | — | — | — | — | (71) | — | — | 1 | (172) | (284) | |||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | — | 304 | — | (42) | 262 | — | — | — | — | — | — | 253 | 2 | 1 | 26 | 989 | 1,533 | |||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | (259) | — | — | (259) | — | — | — | — | — | — | (334) | (1) | (1) | (13) | (2,611) | (3,219) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred distributions | — | (16) | — | — | (16) | — | — | — | — | — | — | (17) | — | — | (1) | — | (34) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance / repurchase of interest in operating subsidiaries | 2 | 14 | — | — | 16 | — | — | — | — | — | — | 1,019 | — | — | 24 | 2,328 | 3,387 | |||||||||||||||||||||||||||||||||||||||||||||
Privatization | (2,872) | (199) | (483) | 100 | (3,454) | — | — | — | — | — | — | 1,502 | (71) | 3 | (811) | 2,340 | (491) | |||||||||||||||||||||||||||||||||||||||||||||
Exchange of exchangeable units | 2 | — | 1 | (1) | 2 | — | — | — | — | — | — | 1 | (3) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A shares of Brookfield Property REIT Inc. | 167 | — | 74 | — | 241 | — | — | — | — | — | — | — | — | — | (241) | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Change in relative interest of non-controlling interests | — | — | 21 | 20 | 41 | — | — | — | — | — | — | (5) | — | (2) | (34) | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance as at Sep. 30, 2021 | $ | 5,861 | $ | 330 | $ | 2,623 | $ | (272) | $ | 8,542 | $ | 4 | $ | 2 | $ | (1) | $ | (1) | $ | 4 | $ | 699 | $ | 14,668 | $ | — | $ | 53 | $ | — | $ | 18,733 | $ | 42,699 |
Unaudited | Nine Months Ended Sep. 30, | ||||||||||
(US$ Millions) | Note | 2022 | 2021 | ||||||||
Operating activities | |||||||||||
Net income | $ | 2,216 | $ | 1,817 | |||||||
Share of equity accounted earnings, net of distributions | (1,091) | (604) | |||||||||
Fair value (gains), net | 25 | (906) | (1,188) | ||||||||
Deferred income tax expense | 14 | 269 | 188 | ||||||||
Depreciation and amortization | 22,23 | 218 | 223 | ||||||||
Working capital and other | (565) | 88 | |||||||||
141 | 524 | ||||||||||
Financing activities | |||||||||||
Debt obligations, issuance | 7,756 | 13,299 | |||||||||
Debt obligations, repayments | (8,228) | (12,932) | |||||||||
Capital securities issued | 57 | 482 | |||||||||
Capital securities redeemed | — | (248) | |||||||||
Non-controlling interests, issued | 495 | 4,921 | |||||||||
Non-controlling interests, purchased | (695) | (263) | |||||||||
Repayment of lease liabilities | (18) | (17) | |||||||||
Issuances to redeemable/exchangeable and special limited partnership unitholders | — | 1,252 | |||||||||
Exchange LP Units, repurchased | — | (18) | |||||||||
FV LTIP units, repurchased | (2) | (2,660) | |||||||||
Class A shares of Brookfield Property Retail Holding LLC, repurchased | — | (370) | |||||||||
Distributions to non-controlling interests in operating subsidiaries | (2,973) | (2,548) | |||||||||
Preferred distributions | (33) | (34) | |||||||||
Distributions to limited partnership unitholders | (314) | (259) | |||||||||
Distributions to redeemable/exchangeable and special limited partnership unitholders | (561) | (334) | |||||||||
Distributions to holders of Brookfield Office Properties Exchange LP units | — | (1) | |||||||||
Distributions to holders of FV LTIP units of the Operating Partnership | (2) | (1) | |||||||||
Distributions to holders of Class A shares of Brookfield Property Retail Holding LLC | — | (13) | |||||||||
(4,518) | 256 | ||||||||||
Investing activities | |||||||||||
Acquisitions | |||||||||||
Investment properties | (1,097) | (1,712) | |||||||||
Property, plant and equipment | (153) | (97) | |||||||||
Equity accounted investments | (59) | (645) | |||||||||
Financial assets and other | (576) | (934) | |||||||||
Cash acquired in business combinations | 26 | 35 | |||||||||
Dispositions | |||||||||||
Investment properties | 1,463 | 1,208 | |||||||||
Property, plant and equipment | 58 | — | |||||||||
Equity accounted investments | 920 | 521 | |||||||||
Financial assets and other | 1,221 | 739 | |||||||||
Disposition of subsidiaries | 1,937 | — | |||||||||
Cash impact of deconsolidation and reclassification to assets held for sale | (23) | — | |||||||||
Restricted cash and deposits | 5 | (210) | |||||||||
3,722 | (1,095) | ||||||||||
Cash and cash equivalents | |||||||||||
Net change in cash and cash equivalents during the period | (655) | (315) | |||||||||
Net change in cash classified within assets held for sale | 158 | — | |||||||||
Effect of exchange rate fluctuations on cash and cash equivalents held in foreign currencies | (84) | (20) | |||||||||
Balance, beginning of period | 2,576 | 2,473 | |||||||||
Balance, end of period | $ | 1,995 | $ | 2,138 | |||||||
Supplemental cash flow information | |||||||||||
Cash paid for: | |||||||||||
Income taxes, net of refunds received | $ | 93 | $ | 128 | |||||||
Interest (excluding dividends on capital securities) | $ | 1,727 | $ | 1,700 |
Nine months ended Sep. 30, 2022 | Year ended December 31, 2021 | |||||||||||||||||||
(US$ Millions) | Commercial properties | Commercial developments | Total | Commercial properties | Commercial developments | Total | ||||||||||||||
Balance, beginning of period | $ | 62,313 | $ | 2,300 | $ | 64,613 | $ | 70,294 | $ | 2,316 | $ | 72,610 | ||||||||
Changes resulting from: | ||||||||||||||||||||
Property acquisitions | 740 | — | 740 | 491 | 80 | 571 | ||||||||||||||
Capital expenditures | 633 | 350 | 983 | 796 | 758 | 1,554 | ||||||||||||||
Property dispositions(1) | (109) | (1) | (110) | (1,299) | (351) | (1,650) | ||||||||||||||
Fair value gains (losses), net | 496 | 25 | 521 | 1,791 | 171 | 1,962 | ||||||||||||||
Foreign currency translation | (2,316) | (184) | (2,500) | (558) | (37) | (595) | ||||||||||||||
Transfer between commercial properties and commercial developments | 127 | (127) | — | 635 | (635) | — | ||||||||||||||
Impact of deconsolidation due to loss of control (2) | (575) | — | (575) | — | — | — | ||||||||||||||
Reclassifications to assets held for sale and other changes | (990) | (495) | (1,485) | (9,837) | (2) | (9,839) | ||||||||||||||
Balance, end of period(3) | $ | 60,319 | $ | 1,868 | $ | 62,187 | $ | 62,313 | $ | 2,300 | $ | 64,613 |
Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||||||||||||||
Consolidated properties | Primary valuation method | Discount rate | Terminal capitalization rate | Investment horizon (years) | Discount rate | Terminal capitalization rate | Investment horizon (years) | ||||||||||||||||
Core Office | Discounted cash flow | 6.4 | % | 5.4 | % | 11 | 6.5 | % | 5.3 | % | 11 | ||||||||||||
Core Retail | Discounted cash flow | 7.0 | % | 5.3 | % | 10 | 7.0 | % | 5.3 | % | 10 | ||||||||||||
LP Investments(1) | Discounted cash flow | 9.0 | % | 6.6 | % | 8 | 9.4 | % | 7.0 | % | 8 | ||||||||||||
Sep. 30, 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 | $ | — | $ | — | $ | 22,656 | $ | 1,220 | $ | — | $ | — | $ | 24,643 | $ | 1,022 | ||||||||||
Core Retail | — | — | 19,852 | 98 | — | — | 18,991 | — | ||||||||||||||||||
LP Investments | — | — | 17,811 | 550 | — | — | 18,679 | 1,278 | ||||||||||||||||||
Total | $ | — | $ | — | $ | 60,319 | $ | 1,868 | $ | — | $ | — | $ | 62,313 | $ | 2,300 |
Sep. 30, 2022 | |||||||||||
(US$ Millions) | Impact of +25bps DR | Impact of +25bps TCR | Impact of +25bps DR and +25bps TCR or +25bps ICR | ||||||||
Core Office | $ | 530 | $ | 789 | $ | 1,297 | |||||
Core Retail | 403 | 664 | 1,040 | ||||||||
LP Investments(1) | 545 | 363 | 901 | ||||||||
Total | $ | 1,478 | $ | 1,816 | $ | 3,238 |
Proportion of ownership interests | Carrying value | |||||||||||||||||||
(US$ Millions) | Principal activity | Principal place of business | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||||||
Joint Ventures | ||||||||||||||||||||
Canary Wharf Joint Venture(1) | Property holding company | United Kingdom | 50 | % | 50 | % | $ | 3,298 | $ | 3,529 | ||||||||||
Manhattan West, New York | Property holding company | United States | 56 | % | 56 | % | 2,365 | 2,396 | ||||||||||||
BPYU JV Pool A | Property holding company | United States | 50 | % | 50 | % | 1,866 | 1,810 | ||||||||||||
Ala Moana Center, Hawaii | Property holding company | United States | 50 | % | 50 | % | 1,749 | 1,939 | ||||||||||||
BPYU JV Pool B | Property holding company | United States | 51 | % | 51 | % | 1,202 | 1,140 | ||||||||||||
Fashion Show, Las Vegas | Property holding company | United States | 50 | % | 50 | % | 885 | 856 | ||||||||||||
Grace Building, New York | Property holding company | United States | 50 | % | 50 | % | 709 | 702 | ||||||||||||
BPYU JV Pool C | Property holding company | United States | 50 | % | 50 | % | 688 | 679 | ||||||||||||
BPYU JV Pool D | Property holding company | United States | 48 | % | 48 | % | 635 | 612 | ||||||||||||
The Grand Canal Shoppes, Las Vegas | Property holding company | United States | 50 | % | 50 | % | 465 | 455 | ||||||||||||
One Liberty Plaza, New York | Property holding company | United States | 51 | % | 51 | % | 426 | 402 | ||||||||||||
The Mall in Columbia, Maryland | Property holding company | United States | 50 | % | 50 | % | 331 | 315 | ||||||||||||
ICD Brookfield Place Dubai | Property holding company | UAE | 50 | % | 50 | % | 298 | 250 | ||||||||||||
Shops at La Cantera, Texas | Property holding company | United States | 50 | % | 50 | % | 276 | 270 | ||||||||||||
Baybrook Mall, Texas | Property holding company | United States | 51 | % | 51 | % | 263 | 254 | ||||||||||||
Potsdamer Platz, Berlin | Property holding company | Germany | 25 | % | 25 | % | 248 | 261 | ||||||||||||
BPYU JV Pool F | Property holding company | United States | 51 | % | 51 | % | 232 | 223 | ||||||||||||
Miami Design District, Florida | Property holding company | United States | 22 | % | 22 | % | 223 | 212 | ||||||||||||
Brookfield Brazil Retail Fundo de Investimento em Participaçõe (“Brazil Retail”) | Holding company | Brazil | 43 | % | 43 | % | 216 | 228 | ||||||||||||
Southern Cross East, Melbourne | Property holding company | Australia | 25 | % | 50 | % | 216 | 472 | ||||||||||||
Brookfield D.C. Office Partners LLC (“D.C. Venture”), Washington, D.C. | Property holding company | United States | 51 | % | 51 | % | 183 | 225 | ||||||||||||
Brookfield Place Sydney(2) | Property holding company | Australia | — | % | 25 | % | — | 376 | ||||||||||||
680 George Street, Sydney(2) | Property holding company | Australia | — | % | 50 | % | — | 389 | ||||||||||||
BPYU JV Pool G(3) | Property holding company | United States | — | % | 68 | % | — | 263 | ||||||||||||
Other(4) | Various | Various | 15% - 55% | 15% - 55% | 2,198 | 2,221 | ||||||||||||||
18,972 | 20,479 | |||||||||||||||||||
Associates | ||||||||||||||||||||
Various | Various | Various | 16% - 31% | 13% - 31% | 87 | 328 | ||||||||||||||
87 | 328 | |||||||||||||||||||
Total | $ | 19,059 | $ | 20,807 |
Nine months ended | Year ended | |||||||
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Equity accounted investments, beginning of period | $ | 20,807 | $ | 19,719 | ||||
Additions | 63 | 698 | ||||||
Disposals and return of capital distributions | (916) | (459) | ||||||
Share of net earnings (losses) from equity accounted investments | 1,326 | 1,020 | ||||||
Distributions received | (235) | (172) | ||||||
Foreign currency translation | (903) | (145) | ||||||
Reclassification (to) from assets held for sale | (239) | (210) | ||||||
Impact of deconsolidation(1) | (706) | — | ||||||
Other comprehensive income and other | (138) | 356 | ||||||
Equity accounted investments, end of period | $ | 19,059 | $ | 20,807 |
Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||||||||||||||
Equity accounted investments | Primary valuation method | Discount rate | Terminal capitalization rate | Investment horizon (yrs) | Discount rate | Terminal capitalization rate | Investment horizon (yrs) | ||||||||||||||||
Core Office | Discounted cash flow | 6.1 | % | 4.7 | % | 11 | 6.0 | % | 4.7 | % | 11 | ||||||||||||
Core Retail | Discounted cash flow | 6.3 | % | 4.8 | % | 10 | 6.3 | % | 4.9 | % | 10 | ||||||||||||
LP Investments(1) | Discounted cash flow | 6.3 | % | 5.3 | % | 8 | 6.9 | % | 5.6 | % | 10 | ||||||||||||
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Non-current assets | $ | 72,219 | $ | 78,149 | ||||
Current assets | 3,371 | 4,489 | ||||||
Total assets | 75,590 | 82,638 | ||||||
Non-current liabilities | 30,419 | 34,821 | ||||||
Current liabilities | 5,523 | 3,914 | ||||||
Total liabilities | 35,942 | 38,735 | ||||||
Net assets | 39,648 | 43,903 | ||||||
Partnership’s share of net assets | $ | 19,059 | $ | 20,807 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Revenue | $ | 1,203 | $ | 1,206 | $ | 3,612 | $ | 3,316 | ||||||
Expenses | 900 | 930 | 2,575 | 2,605 | ||||||||||
Income from equity accounted investments(1) | 22 | 19 | 55 | 58 | ||||||||||
Income before fair value gains, net | 325 | 295 | 1,092 | 769 | ||||||||||
Fair value gains, net | 675 | 324 | 1,565 | 754 | ||||||||||
Net income | 1,000 | 619 | 2,657 | 1,523 | ||||||||||
Partnership’s share of net earnings | $ | 527 | $ | 284 | $ | 1,326 | $ | 743 |
Hospitality assets by class | Useful life (in years) | ||||
Building and building improvements | 2 to 50+ | ||||
Land improvements | 15 | ||||
Furniture, fixtures and equipment | 3 to 10 |
Nine months ended | Year ended | |||||||
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Cost: | ||||||||
Balance at the beginning of period | $ | 5,723 | $ | 5,575 | ||||
Additions | 153 | 1,885 | ||||||
Disposals | (29) | (323) | ||||||
Foreign currency translation | (621) | (83) | ||||||
Impact of deconsolidation due to loss of control and other(1) | 254 | (1,331) | ||||||
5,480 | 5,723 | |||||||
Accumulated fair value changes: | ||||||||
Balance at the beginning of period | 763 | 488 | ||||||
Revaluation (losses) gains, net | — | 930 | ||||||
Impact of deconsolidation due to loss of control and other(1) | 21 | (593) | ||||||
Disposals | (1) | (65) | ||||||
Provision for impairment | — | 7 | ||||||
Foreign currency translation | (94) | (4) | ||||||
689 | 763 | |||||||
Accumulated depreciation: | ||||||||
Balance at the beginning of period | (863) | (828) | ||||||
Depreciation | (212) | (294) | ||||||
Disposals | 34 | 84 | ||||||
Foreign currency translation | 132 | 13 | ||||||
Impact of deconsolidation due to loss of control and other(1) | (20) | 162 | ||||||
(929) | (863) | |||||||
Total property, plant and equipment(2) | $ | 5,240 | $ | 5,623 |
Intangible assets by class | Useful life (in years) | ||||
Trademarks | Indefinite | ||||
Other | 4 to 7 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Cost | $ | 832 | $ | 1,012 | ||||
Accumulated amortization | (37) | (48) | ||||||
Total intangible assets | $ | 795 | $ | 964 |
Nine months ended | Year ended | |||||||
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Balance, beginning of period | $ | 964 | $ | 982 | ||||
Acquisitions | 4 | 6 | ||||||
Amortization | (6) | (14) | ||||||
Foreign currency translation | (167) | (10) | ||||||
Balance, end of period | $ | 795 | $ | 964 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Securities - FVTPL | $ | 2,244 | $ | 2,200 | ||||
Derivative assets | 315 | 111 | ||||||
Securities - FVTOCI | 69 | 108 | ||||||
Restricted cash | 532 | 356 | ||||||
Inventory | 1,035 | 652 | ||||||
Accounts receivables - non-current | 415 | 2 | ||||||
Other | 148 | 149 | ||||||
Total other non-current assets | $ | 4,758 | $ | 3,578 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Derivative assets | $ | 373 | $ | 33 | ||||
Accounts receivable(1) - net of expected credit loss of $91 million (December 31, 2021 - $112 million) | 551 | 852 | ||||||
Restricted cash | 437 | 331 | ||||||
Prepaid expenses | 302 | 367 | ||||||
Inventory | 231 | 574 | ||||||
Other current assets | 226 | 119 | ||||||
Total accounts receivable and other | $ | 2,120 | $ | 2,276 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Investment properties | $ | 3,797 | $ | 8,037 | ||||
Equity accounted investments | 238 | — | ||||||
Property, plant and equipment | 26 | 1,749 | ||||||
Accounts receivable and other assets | 78 | 724 | ||||||
Assets held for sale | 4,139 | 10,510 | ||||||
Debt obligations | 241 | 3,006 | ||||||
Accounts payable and other liabilities | 178 | 76 | ||||||
Liabilities associated with assets held for sale | $ | 419 | $ | 3,082 |
(US$ Millions) | Nine months ended Sep. 30, 2022 | Twelve months ended Dec. 31, 2022 | ||||||
Balance, beginning of period | $ | 10,510 | $ | 588 | ||||
Reclassification to assets held for sale, net | 1,084 | 12,561 | ||||||
Disposals | (7,171) | (2,610) | ||||||
Fair value adjustments | 207 | — | ||||||
Foreign currency translation | (568) | (57) | ||||||
Other | 77 | 28 | ||||||
Balance, end of period | $ | 4,139 | $ | 10,510 |
Sep. 30, 2022 | Dec. 31, 2021 | |||||||||||||
(US$ Millions) | Weighted-average rate | Debt balance | Weighted-average rate | Debt balance | ||||||||||
Unsecured facilities: | ||||||||||||||
Brookfield Property Partners’ credit facilities | 4.69 | % | 2,366 | 2.00 | % | 2,257 | ||||||||
Brookfield Property Partners’ corporate bonds | 4.12 | % | 1,810 | 4.11 | % | 1,982 | ||||||||
Brookfield Property Retail Holding LLC term debt | 5.63 | % | 1,518 | 2.61 | % | 1,869 | ||||||||
Brookfield Property Retail Holding LLC senior secured notes | 5.20 | % | 1,695 | 5.20 | % | 1,695 | ||||||||
Brookfield Property Retail Holding LLC corporate facility | 5.91 | % | 310 | 3.10 | % | 70 | ||||||||
Brookfield Property Retail Holding LLC junior subordinated notes | 4.23 | % | 192 | 1.58 | % | 206 | ||||||||
Subsidiary borrowings | 6.33 | % | 372 | 3.29 | % | 537 | ||||||||
Secured debt obligations: | ||||||||||||||
Funds subscription credit facilities(1) | 4.75 | % | 154 | 2.44 | % | 371 | ||||||||
Fixed rate | 4.48 | % | 19,272 | 4.31 | % | 26,248 | ||||||||
Variable rate | 5.78 | % | 21,499 | 3.29 | % | 20,341 | ||||||||
Deferred financing costs | (214) | (249) | ||||||||||||
Total debt obligations | $ | 48,974 | $ | 55,327 | ||||||||||
Current | 15,537 | 13,742 | ||||||||||||
Non-current | 33,196 | 38,579 | ||||||||||||
Debt associated with assets held for sale | 241 | 3,006 | ||||||||||||
Total debt obligations | $ | 48,974 | $ | 55,327 |
Sep. 30, 2022 | Dec. 31, 2021 | |||||||||||||||||||
(Millions) | U.S. Dollars | Local currency | U.S. Dollars | Local currency | ||||||||||||||||
U.S. Dollars | $ | 33,595 | $ | 33,595 | $ | 37,559 | $ | 37,559 | ||||||||||||
British Pounds | 6,272 | £ | 5,615 | 7,030 | £ | 5,196 | ||||||||||||||
Canadian Dollars | 3,950 | C$ | 5,462 | 4,419 | C$ | 5,585 | ||||||||||||||
South Korean Won | 1,592 | ₩ | 2,280,000 | 1,918 | ₩ | 2,280,000 | ||||||||||||||
Australian Dollars | 1,240 | A$ | 1,938 | 2,014 | A$ | 2,773 | ||||||||||||||
Indian Rupee | 1,793 | Rs | 145,895 | 1,801 | Rs | 134,378 | ||||||||||||||
Brazilian Reais | 522 | R$ | 2,825 | 476 | R$ | 2,655 | ||||||||||||||
Chinese Yuan | 136 | C¥ | 972 | 69 | C¥ | 437 | ||||||||||||||
Euros | 88 | € | 90 | 290 | € | 255 | ||||||||||||||
Deferred financing costs | (214) | (249) | ||||||||||||||||||
Total debt obligations | $ | 48,974 | $ | 55,327 |
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 | Impact of deconsolidation due to loss of control | Sep. 30, 2022 | ||||||||||||||||||
Debt obligations | $ | 55,327 | (472) | 350 | (3,408) | 65 | (2,382) | (506) | $ | 48,974 |
(US$ Millions) | Shares outstanding | Cumulative dividend rate | Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||
Operating Partnership Class A Preferred Equity Units: | ||||||||||||||
Series 2 | 24,000,000 | 6.50 | % | $ | 572 | $ | 565 | |||||||
Series 3 | 24,000,000 | 6.75 | % | 552 | 546 | |||||||||
New LP Preferred Units(1) | 19,273,654 | 6.75 | % | 474 | 474 | |||||||||
Brookfield Office Properties Inc. (“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 | 842,534 | 5.25 | % | 21 | 21 | |||||||||
Series 2 | 556,746 | 5.75 | % | 10 | 11 | |||||||||
Series 3 | 777,892 | 5.00 | % | 14 | 15 | |||||||||
Series 4 | 582,894 | 5.20 | % | 11 | 12 | |||||||||
Rouse Properties L.P. (“Rouse”) Series A Preferred Shares | 5,600,000 | 5.00 | % | 142 | 142 | |||||||||
Brookfield India Real Estate Trust (“India REIT”) | 155,003,656 | n/a(3) | 448 | 440 | ||||||||||
Capital Securities – Fund Subsidiaries | 705 | 859 | ||||||||||||
Total capital securities | $ | 2,949 | $ | 3,085 | ||||||||||
Current | 57 | 61 | ||||||||||||
Non-current | 2,892 | 3,024 | ||||||||||||
Total capital securities | $ | 2,949 | $ | 3,085 |
Non-cash changes in capital securities | ||||||||||||||||||||
(US$ Millions) | Dec. 31, 2021 | Capital securities issued | Fair value changes | Foreign currency translation | Other | Sep. 30, 2022 | ||||||||||||||
Capital securities | $ | 3,085 | $ | 57 | $ | (166) | $ | (36) | $ | 9 | $ | 2,949 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Current income tax | $ | 58 | $ | 60 | $ | 134 | $ | 104 | ||||||
Deferred income tax | 115 | 40 | 269 | 188 | ||||||||||
Income tax expense | $ | 173 | $ | 100 | $ | 403 | $ | 292 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Accounts payable and accrued liabilities | $ | 722 | $ | 499 | ||||
Lease liabilities(1) | 634 | 690 | ||||||
Derivative liabilities | 155 | 277 | ||||||
Deferred revenue | 15 | 16 | ||||||
Provisions | 10 | 16 | ||||||
Loans and notes payables | 4 | 1 | ||||||
Total other non-current liabilities | $ | 1,540 | $ | 1,499 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Accounts payable and accrued liabilities | $ | 2,472 | $ | 2,021 | ||||
Loans and notes payable(1) | 139 | 899 | ||||||
Deferred revenue | 412 | 445 | ||||||
Derivative liabilities | 205 | 221 | ||||||
Lease liabilities(2) | 160 | 160 | ||||||
Other liabilities | 30 | 16 | ||||||
Total accounts payable and other liabilities | $ | 3,418 | $ | 3,762 |
General partnership units | Limited partnership units | |||||||||||||
(Thousands of units) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||
Outstanding, beginning of period | 139 | 139 | 298,987 | 435,980 | ||||||||||
Exchange LP Units exchanged | — | — | — | 128 | ||||||||||
BPYU Units exchanged | — | — | — | 8,922 | ||||||||||
Distribution Reinvestment Program | — | — | — | 123 | ||||||||||
Issued under unit-based compensation plan | — | — | — | 112 | ||||||||||
Privatization | — | — | — | (146,278) | ||||||||||
Outstanding, end of period | 139 | 139 | 298,987 | 298,987 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions, except per unit information) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Limited Partners | $ | 105 | $ | 114 | $ | 314 | $ | 259 | ||||||
Holders of: | ||||||||||||||
Redeemable/Exchangeable Partnership Units | 185 | 181 | 556 | 331 | ||||||||||
Special LP Units | 2 | 1 | 5 | 3 | ||||||||||
Exchange LP Units | — | — | — | 1 | ||||||||||
FV LTIP Units | 1 | — | 2 | 1 | ||||||||||
BPYU Units | — | — | — | 13 | ||||||||||
Total | $ | 293 | $ | 296 | $ | 877 | $ | 608 | ||||||
Per unit(1) | $ | 0.3500 | $ | 0.3800 | $ | 1.0500 | $ | 0.7125 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Redeemable/Exchangeable Partnership Units and Special LP Units(1) | $ | 15,426 | $ | 15,736 | ||||
FV LTIP Units(1) | 46 | 55 | ||||||
Interests of others in operating subsidiaries and properties: | ||||||||
Preferred shares held by Brookfield Asset Management | 1,015 | 1,015 | ||||||
Preferred equity of subsidiaries | 2,761 | 2,750 | ||||||
Non-controlling interests in subsidiaries and properties | 12,985 | 15,941 | ||||||
Total interests of others in operating subsidiaries and properties | 16,761 | 19,706 | ||||||
Total non-controlling interests | $ | 32,233 | $ | 35,497 |
Proportion of economic interests held by non-controlling interests | |||||||||||||||||
(US$ Millions) | Jurisdiction of formation | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||||
BPO(1) | Canada | — | % | — | % | $ | 3,741 | $ | 5,020 | ||||||||
BPY Subsidiary Holding Entities(2) | Bermuda/Canada | — | % | — | % | 3,653 | 3,871 | ||||||||||
BPR Retail Holdings LLC(3) | United States | — | % | — | % | 1,348 | 1,274 | ||||||||||
BSREP II MH Holdings LLC(4) | United States | 74 | % | 74 | % | 1,296 | 932 | ||||||||||
BSREP II PBSA Ltd.(4) | Bermuda | 75 | % | 75 | % | 1,149 | 1,190 | ||||||||||
BSREP II Korea Office Holdings Pte. Ltd.(4) | South Korea | 78 | % | 78 | % | 794 | 936 | ||||||||||
Center Parcs UK(4) | United Kingdom | 73 | % | 73 | % | 599 | 799 | ||||||||||
Brookfield Fairfield Multifamily Value Add Fund III LP(4) | United States | 70 | % | 70 | % | 379 | 383 | ||||||||||
BSREP II Retail Upper Pooling LLC(4) | United States | 50 | % | 50 | % | 423 | 383 | ||||||||||
BSREP II LA Mart Mezz LLC (DE)(4) | United States | 74 | % | 74 | % | 436 | 352 | ||||||||||
BSREP II Holdings Pte. Ltd.(4) | India | 68 | % | 68 | % | 360 | 355 | ||||||||||
Hospitality Investors Trust Inc.(4) | United States | 74 | % | 74 | % | 307 | 376 | ||||||||||
BSREP Citypoint Investments Ltd.(4) | United Kingdom | 69 | % | 69 | % | 261 | 342 | ||||||||||
Brookfield India Real Estate Trust(4) | India | 82 | % | 82 | % | 229 | 280 | ||||||||||
BSREP CARS Sub-Pooling LLC(4)(5) | United States | — | % | 74 | % | — | 588 | ||||||||||
BSREP II WS Hotel Holding LLC(4)(5) | United States | — | % | 74 | % | — | 544 | ||||||||||
Other | Various | 33% - 77% | 33% - 77% | 1,786 | 2,081 | ||||||||||||
Total | $ | 16,761 | $ | 19,706 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Base rent | $ | 795 | $ | 862 | $ | 2,375 | $ | 2,580 | ||||||
Straight-line rent | (2) | 4 | 5 | 29 | ||||||||||
Lease termination | 12 | 9 | 24 | 54 | ||||||||||
Other lease income(1) | 163 | 156 | 485 | 460 | ||||||||||
Other revenue from tenants(2) | 214 | 241 | 733 | 718 | ||||||||||
Total commercial property revenue | $ | 1,182 | $ | 1,272 | $ | 3,622 | $ | 3,841 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Room, food and beverage | $ | 351 | $ | 363 | $ | 964 | $ | 581 | ||||||
Gaming and other leisure activities | 48 | 45 | 130 | 70 | ||||||||||
Other hospitality revenue | 8 | 9 | 26 | 21 | ||||||||||
Total hospitality revenue | $ | 407 | $ | 417 | $ | 1,120 | $ | 672 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Investment income | $ | 44 | $ | 39 | $ | 472 | $ | 113 | ||||||
Fee revenue | 74 | 75 | 210 | 194 | ||||||||||
Dividend income | 47 | 10 | 80 | 69 | ||||||||||
Interest income and other | 2 | 7 | 49 | 26 | ||||||||||
Other | — | 1 | — | 16 | ||||||||||
Total investment and other revenue | $ | 167 | $ | 132 | $ | 811 | $ | 418 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Property maintenance | $ | 178 | $ | 174 | $ | 530 | $ | 528 | ||||||
Real estate taxes | 140 | 145 | 427 | 454 | ||||||||||
Employee compensation and benefits | 37 | 41 | 110 | 119 | ||||||||||
Depreciation and amortization | 7 | 8 | 22 | 30 | ||||||||||
Lease expense(1) | 3 | 3 | 9 | 9 | ||||||||||
Other(2) | 106 | 104 | 295 | 317 | ||||||||||
Total direct commercial property expense | $ | 471 | $ | 475 | $ | 1,393 | $ | 1,457 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Employee compensation and benefits | $ | 59 | $ | 57 | $ | 170 | $ | 103 | ||||||
Cost of food, beverage, and retail goods sold | 64 | 55 | 179 | 100 | ||||||||||
Maintenance and utilities | 24 | 30 | 77 | 68 | ||||||||||
Depreciation and amortization | 61 | 79 | 196 | 193 | ||||||||||
Marketing and advertising | 5 | 5 | 19 | 17 | ||||||||||
Other | 69 | 72 | 206 | 124 | ||||||||||
Total direct hospitality expense | $ | 282 | $ | 298 | $ | 847 | $ | 605 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Employee compensation and benefits | $ | 90 | $ | 87 | $ | 271 | $ | 262 | ||||||
Management fees | 70 | 58 | 212 | 164 | ||||||||||
Professional fees | 21 | 25 | 67 | 77 | ||||||||||
Facilities and technology | 13 | 11 | 33 | 37 | ||||||||||
Transaction costs | 9 | 14 | 24 | 43 | ||||||||||
Other | 24 | 40 | 86 | 108 | ||||||||||
Total general and administrative expense | $ | 227 | $ | 235 | $ | 693 | $ | 691 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Commercial properties | $ | (619) | $ | (142) | $ | 496 | $ | 741 | ||||||
Commercial developments | (79) | 34 | 25 | 163 | ||||||||||
Incentive fees(1) | (2) | (28) | (38) | (35) | ||||||||||
Financial instruments and other(2) | 313 | 186 | 423 | 319 | ||||||||||
Total fair values (losses) gains, net | $ | (387) | $ | 50 | $ | 906 | $ | 1,188 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Items that may be reclassified to net income: | ||||||||||||||
Foreign currency translation | ||||||||||||||
Net unrealized foreign currency translation gains (losses) in respect of foreign operations | $ | (953) | $ | (471) | $ | (2,057) | $ | (468) | ||||||
Reclassification of realized foreign currency translation gains to net income on dispositions of foreign operations | — | 1 | 17 | 26 | ||||||||||
Gains on hedges of net investments in foreign operations | 630 | 168 | 1,202 | 165 | ||||||||||
(323) | (302) | (838) | (277) | |||||||||||
Cash flow hedges | ||||||||||||||
Gains (losses) on derivatives designated as cash flow hedges, net of income taxes for the three and nine months ended Sep. 30, 2022 of $1 million and $(6) million (2021 – $(3) million and $(11) million) | (19) | (36) | 47 | 59 | ||||||||||
(19) | (36) | 47 | 59 | |||||||||||
Equity accounted investments | ||||||||||||||
Share of unrealized foreign currency translation losses in respect of foreign operations | (1) | — | (3) | (1) | ||||||||||
Gains (losses) on derivatives designated as cash flow hedges | 56 | 9 | 131 | 37 | ||||||||||
55 | 9 | 128 | 36 | |||||||||||
Items that will not be reclassified to net income: | ||||||||||||||
Unrealized gains on securities - FVTOCI, net of income taxes for the three and nine months ended Sep. 30, 2022 of $2 million and $(1) million (2021 – $5 million and $(8) million) | (1) | 6 | (21) | 4 | ||||||||||
Share of revaluation (deficit) on equity accounted investments | — | — | — | (1) | ||||||||||
Net remeasurement (losses) on defined benefit obligations | — | — | 1 | — | ||||||||||
Revaluation (deficit), net of income taxes for the three and nine months ended Sep. 30, 2022 of nil and nil (2021 – $(6) million and $(105) million) | (8) | (6) | (8) | (105) | ||||||||||
(9) | — | (28) | (102) | |||||||||||
Total other comprehensive (loss) | $ | (296) | $ | (329) | $ | (691) | $ | (284) |
(US$ Millions) | Hedging item | Notional | Rates | Maturity dates | Fair value | ||||||||||||
Sep. 30, 2022 | Interest rate caps of US$ LIBOR debt | $ | 1,521 | 2.5% - 4.9% | Nov. 2022 - Oct. 2023 | $ | 15 | ||||||||||
Interest rate swaps of US$ LIBOR debt | 130 | 1.4% | Dec. 2022 | — | |||||||||||||
Interest rate caps of US$ SOFR debt | 1,141 | 2.8% - 6.0% | Aug. 2023 - Aug. 2024 | 14 | |||||||||||||
Interest rate caps of £ SONIA debt | 1,651 | 1.0% - 2.5% | Jan. 2023 - Mar. 2025 | 42 | |||||||||||||
Interest rate caps of € EURIBOR debt | 88 | 1.3% | Apr. 2023 | — | |||||||||||||
Interest rate caps of C$ LIBOR debt | 174 | 3.0% | Oct. 2022 | — | |||||||||||||
Interest rate swaps of A$ BBSW/BBSY debt | 124 | 5.3% - 5.8% | Apr. 2024 | — | |||||||||||||
Interest rate swaps of £ SONIA debt | 743 | 2.7% | Jul. 2024 | 30 | |||||||||||||
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 A$ BBSW/BBSY debt | 422 | 0.8% - 1.6% | Apr. 2023 - Apr. 2024 | — |
(US$ Millions) | Hedging item | Notional | Rates | Maturity dates | Fair value | |||||||||||||||
Sep. 30, 2022 | Net investment hedges | € | 105 | €0.89/$ - €1.00/$ | Dec. 2022 - Sep. 2024 | $ | 20 | |||||||||||||
Net investment hedges | £ | 2,353 | £0.76/$ - £0.96/$ | Dec. 2022 - Jul. 2023 | 214 | |||||||||||||||
Net investment hedges | A$ | — | A$1.45/$ - A$1.56/$ | Dec. 2022 - Mar. 2023 | 12 | |||||||||||||||
Net investment hedges | C¥ | 4,792 | C¥6.59/$ - C¥6.99/$ | Jun. 2023 - Sep. 2025 | 19 | |||||||||||||||
Net investment hedges | C$ | — | C$1.26/$ - C$1.37/$ | Mar. 2023 - Sep. 2025 | 7 | |||||||||||||||
Net investment hedges | R$ | 764 | R$5.29/$ - R$7.00/$ | Oct. 2022 - Jul. 2024 | (68) | |||||||||||||||
Net investment hedges | ₩ | 820,473 | ₩1,281.00/$ - ₩1,436.26/$ | Dec. 2022 - Jun. 2023 | 65 | |||||||||||||||
Net investment hedges | Rs | 75,141 | Rs79.40/$ - Rs89.34/$ | Nov. 2022 - Jul. 2024 | 7 | |||||||||||||||
Net investment hedges | £ | 374 | £0.86/€ | Jul. 2023 | — | |||||||||||||||
Cross currency swaps of C$ LIBOR debt | C$ | 2,500 | C$1.25/$ - C$1.38/$ | Jul. 2023 - Jan. 2027 | (73) | |||||||||||||||
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 | C$ | 185 | C$1.26/$ - C$1.31/$ | Mar. 2023 - Mar. 2024 | (2) | |||||||||||||||
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 |
(US$ Millions) | Derivative type | Notional | Rates | Maturity dates | Fair value | ||||||||||||
Sep. 30, 2022 | Interest rate caps | $ | 7,749 | 2.0% | Apr. 2022 - Feb. 2024 | $ | 16 | ||||||||||
Interest rate swaps on forecasted fixed rate debt | 335 | 3.6% | Jun. 2023 - Jun. 2033 | (21) | |||||||||||||
Dec. 31, 2021 | Interest rate caps | $ | 5,388 | 2.0% - 7.9% | Jan. 2022 - Feb. 2027 | $ | — | ||||||||||
Interest rate swaps on forecasted fixed rate debt | 1,285 | 3.2% - 6.4% | Jun. 2022 - Jun. 2033 | (253) | |||||||||||||
Interest rate swaps of US$ debt | 1,696 | 0.8% - 5.1% | Nov. 2022 - Mar. 2024 | (8) | |||||||||||||
Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||||||||
(US$ Millions) | Classification and measurement basis | Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
Financial assets | |||||||||||||||||
Loans and notes receivable | Amortized cost | $ | 514 | $ | 514 | $ | 225 | $ | 225 | ||||||||
Other non-current assets | |||||||||||||||||
Securities - FVTPL | FVTPL | 2,244 | 2,244 | 2,200 | 2,200 | ||||||||||||
Derivative assets | FVTPL | 315 | 315 | 111 | 111 | ||||||||||||
Accounts receivable | Amortized cost | 415 | 415 | 2 | 2 | ||||||||||||
Securities - FVTOCI | FVTOCI | 69 | 69 | 108 | 108 | ||||||||||||
Restricted cash | Amortized cost | 532 | 532 | 356 | 356 | ||||||||||||
Current assets | |||||||||||||||||
Securities - FVTOCI | FVTOCI | 38 | 38 | — | — | ||||||||||||
Derivative assets | FVTPL | 373 | 373 | 33 | 33 | ||||||||||||
Accounts receivable(1) | Amortized cost | 629 | 629 | 1,128 | 1,128 | ||||||||||||
Restricted cash | Amortized cost | 437 | 437 | 331 | 331 | ||||||||||||
Cash and cash equivalents | Amortized cost | 1,995 | 1,995 | 2,576 | 2,576 | ||||||||||||
Total financial assets | $ | 7,561 | $ | 7,561 | $ | 7,070 | $ | 7,070 | |||||||||
Financial liabilities | |||||||||||||||||
Debt obligations(2) | Amortized cost | $ | 48,974 | $ | 48,378 | $ | 55,327 | $ | 55,474 | ||||||||
Capital securities | Amortized cost | 2,244 | 2,244 | 2,226 | 2,226 | ||||||||||||
Capital securities - fund subsidiaries | FVTPL | 705 | 705 | 859 | 859 | ||||||||||||
Other non-current liabilities | |||||||||||||||||
Loan payable | Amortized cost | 4 | 4 | 1 | 1 | ||||||||||||
Accounts payable | Amortized cost | 722 | 722 | 499 | 499 | ||||||||||||
Derivative liabilities | FVTPL | 155 | 155 | 277 | 277 | ||||||||||||
Accounts payable and other liabilities | |||||||||||||||||
Accounts payable and other(3) | Amortized cost | 2,650 | 2,650 | 2,097 | 2,097 | ||||||||||||
Loans and notes payable | Amortized cost | 139 | 139 | 899 | 899 | ||||||||||||
Derivative liabilities | FVTPL | 205 | 205 | 221 | 221 | ||||||||||||
Total financial liabilities | $ | 55,798 | $ | 55,202 | $ | 62,406 | $ | 62,553 |
Sep. 30, 2022 | Dec. 31, 2021 | |||||||||||||||||||||||||
(US$ Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||
Securities - FVTPL | $ | 11 | $ | 353 | $ | 1,880 | $ | 2,244 | $ | 17 | $ | 218 | $ | 1,965 | $ | 2,200 | ||||||||||
Securities - FVTOCI | 38 | — | 69 | 107 | 13 | — | 95 | 108 | ||||||||||||||||||
Derivative assets | — | 688 | — | 688 | — | 144 | — | 144 | ||||||||||||||||||
Total financial assets | $ | 49 | $ | 1,041 | $ | 1,949 | $ | 3,039 | $ | 30 | $ | 362 | $ | 2,060 | $ | 2,452 | ||||||||||
Financial liabilities | ||||||||||||||||||||||||||
Capital securities - fund subsidiaries | $ | — | $ | — | $ | 705 | $ | 705 | $ | — | $ | — | $ | 859 | $ | 859 | ||||||||||
Derivative liabilities | — | 360 | — | 360 | — | 498 | — | 498 | ||||||||||||||||||
Total financial liabilities | $ | — | $ | 360 | $ | 705 | $ | 1,065 | $ | — | $ | 498 | $ | 859 | $ | 1,357 |
Sep. 30, 2022 | Dec. 31, 2021 | |||||||||||||||||||||||||
(US$ Millions) | Financial assets | Financial liabilities | Financial assets | Financial liabilities | ||||||||||||||||||||||
Balance, beginning of period | $ | 2,060 | $ | 859 | $ | 1,682 | $ | 863 | ||||||||||||||||||
Acquisitions | 119 | — | 553 | — | ||||||||||||||||||||||
Dispositions | (210) | — | (88) | — | ||||||||||||||||||||||
Fair value gains (losses), net and OCI | (20) | (165) | 366 | 2 | ||||||||||||||||||||||
Other | — | 11 | (453) | (6) | ||||||||||||||||||||||
Balance, end of period | $ | 1,949 | $ | 705 | $ | 2,060 | $ | 859 |
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | ||||||
Balances outstanding with related parties: | ||||||||
Net (payables)/receivables within equity accounted investments | (338) | (378) | ||||||
Loans and notes receivable | 305 | 170 | ||||||
Deposit payable to Brookfield Asset Management(1) | — | (680) | ||||||
Property-specific debt obligations | (1,983) | (250) | ||||||
Loans and notes payable and other liabilities | (427) | (259) | ||||||
Preferred shares held by Brookfield Asset Management | (1,015) | (1,015) | ||||||
Brookfield Asset Management interest in Canholdco | (1,865) | (2,083) |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Transactions with related parties: | ||||||||||||||
Commercial property revenue(1) | $ | 15 | $ | 9 | $ | 39 | $ | 26 | ||||||
Management fee income | 30 | 10 | 63 | 23 | ||||||||||
Interest expense on debt obligations | 3 | 5 | 11 | 20 | ||||||||||
General and administrative expense(2) | 78 | 68 | 240 | 197 | ||||||||||
Construction costs(3) | 13 | 42 | 49 | 139 | ||||||||||
Return of capital distributions on Brookfield Asset Management’s interest in Canholdco | — | 328 | 118 | 328 | ||||||||||
Distributions on Brookfield Assets management’s interest in Canholdco | 28 | — | 85 | — | ||||||||||
Incentive fees | 2 | 13 | 38 | 35 |
(US$ Millions) | Total revenue | FFO | ||||||||||||
Three months ended Sep. 30, | 2022 | 2021 | 2022 | 2021 | ||||||||||
Core Office | $ | 545 | $ | 549 | $ | 43 | $ | 153 | ||||||
Core Retail | 381 | 380 | 107 | 115 | ||||||||||
LP Investments | 829 | 892 | 74 | 59 | ||||||||||
Corporate | 1 | — | (148) | (161) | ||||||||||
Total | $ | 1,756 | $ | 1,821 | $ | 76 | $ | 166 |
(US$ Millions) | Total revenue | FFO | ||||||||||||
Nine months ended Sep. 30, | 2022 | 2021 | 2022 | 2021 | ||||||||||
Core Office | $ | 1,653 | $ | 1,618 | $ | 277 | $ | 407 | ||||||
Core Retail | 1,140 | 1,116 | 463 | 313 | ||||||||||
LP Investments | 2,757 | 2,194 | 219 | 93 | ||||||||||
Corporate | 3 | 3 | (479) | (416) | ||||||||||
Total | $ | 5,553 | $ | 4,931 | $ | 480 | $ | 397 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Three months ended Sep. 30, 2022 | |||||||||||||||||
Core Office | $ | 378 | $ | 84 | $ | 5 | $ | 78 | $ | 545 | |||||||
Core Retail | 278 | 66 | — | 37 | 381 | ||||||||||||
LP Investments | 312 | 64 | 402 | 51 | 829 | ||||||||||||
Corporate | — | — | — | 1 | 1 | ||||||||||||
Total | $ | 968 | $ | 214 | $ | 407 | $ | 167 | $ | 1,756 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Three months ended Sep. 30, 2021 | |||||||||||||||||
Core Office | $ | 350 | $ | 116 | $ | 2 | $ | 81 | $ | 549 | |||||||
Core Retail | 279 | 65 | — | 36 | 380 | ||||||||||||
LP Investments | 402 | 60 | 415 | 15 | 892 | ||||||||||||
Corporate | — | — | — | — | — | ||||||||||||
Total | $ | 1,031 | $ | 241 | $ | 417 | $ | 132 | $ | 1,821 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Nine months ended Sep. 30, 2022 | |||||||||||||||||
Core Office | $ | 1,047 | $ | 350 | $ | 15 | $ | 241 | $ | 1,653 | |||||||
Core Retail | 825 | 196 | — | 119 | 1,140 | ||||||||||||
LP Investments | 1,017 | 187 | 1,105 | 448 | 2,757 | ||||||||||||
Corporate | — | — | — | 3 | 3 | ||||||||||||
Total | $ | 2,889 | $ | 733 | $ | 1,120 | $ | 811 | $ | 5,553 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Nine months ended Sep. 30, 2021 | |||||||||||||||||
Core Office | $ | 1,084 | $ | 341 | $ | 5 | $ | 188 | $ | 1,618 | |||||||
Core Retail | 817 | 197 | — | 102 | 1,116 | ||||||||||||
LP Investments | 1,222 | 180 | 667 | 125 | 2,194 | ||||||||||||
Corporate | — | — | — | 3 | 3 | ||||||||||||
Total | $ | 3,123 | $ | 718 | $ | 672 | $ | 418 | $ | 4,931 |
(US$ Millions) | Share of net earnings from equity accounted investments | Interest expense | ||||||||||||
Three months ended Sep. 30, | 2022 | 2021 | 2022 | 2021 | ||||||||||
Core Office | $ | 361 | $ | 137 | $ | (197) | $ | (142) | ||||||
Core Retail | 122 | 156 | (175) | (164) | ||||||||||
LP Investments | 44 | (9) | (262) | (231) | ||||||||||
Corporate | — | — | (73) | (79) | ||||||||||
Total | $ | 527 | $ | 284 | $ | (707) | $ | (616) |
(US$ Millions) | Share of net earnings from equity accounted investments | Interest expense | ||||||||||||
Nine months ended Sep. 30, | 2022 | 2021 | 2022 | 2021 | ||||||||||
Core Office | $ | 831 | $ | 514 | $ | (515) | $ | (424) | ||||||
Core Retail | 437 | 323 | (470) | (492) | ||||||||||
LP Investments | 58 | (94) | (733) | (801) | ||||||||||
Corporate | — | — | (212) | (221) | ||||||||||
Total | $ | 1,326 | $ | 743 | $ | (1,930) | $ | (1,938) |
Total assets | Total liabilities | Equity accounted investments | ||||||||||||||||||
(US$ Millions) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | ||||||||||||||
Core Office | $ | 34,489 | $ | 37,661 | $ | 17,791 | $ | 18,172 | $ | 8,562 | $ | 9,819 | ||||||||
Core Retail | 30,922 | 30,585 | 13,988 | 14,316 | 9,757 | 9,945 | ||||||||||||||
LP Investments | 35,755 | 43,403 | 21,955 | 27,516 | 740 | 1,043 | ||||||||||||||
Corporate | 506 | 355 | 6,372 | 6,995 | — | — | ||||||||||||||
Total | $ | 101,672 | $ | 112,004 | $ | 60,106 | $ | 66,999 | $ | 19,059 | $ | 20,807 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||
FFO(1) | $ | 76 | $ | 166 | $ | 480 | $ | 397 | ||||||
Depreciation and amortization of real estate assets | (45) | (57) | (143) | (148) | ||||||||||
Fair value gains (loss), net | (387) | 50 | 906 | 1,188 | ||||||||||
Share of equity accounted income - non-FFO | 401 | 109 | 770 | 290 | ||||||||||
Income tax expense | (173) | (100) | (403) | (292) | ||||||||||
Non-controlling interests of others in operating subsidiaries and properties – non-FFO | 90 | (97) | (546) | (779) | ||||||||||
Net (loss) income attributable to unitholders(2) | (38) | 71 | 1,064 | 656 | ||||||||||
Non-controlling interests of others in operating subsidiaries and properties | 42 | 329 | 1,152 | 1,161 | ||||||||||
Net income | $ | 4 | $ | 400 | $ | 2,216 | $ | 1,817 |
/s/ Brian W. Kingston | |||||
Brian W. Kingston | |||||
Chief Executive Officer of Brookfield Property Group LLC, | |||||
a manager of the issuer |
/s/ Bryan K. Davis | |||||
Bryan K. Davis | |||||
Chief Financial Officer of Brookfield Property Group LLC, | |||||
a manager of the issuer |