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real estate joint ventures (Tables)
 6 Months Ended
Jun. 30, 2018
real estate joint ventures  
Schedule of real estate joint ventures financial information

 

As at (millions)

 

June 30,
2018

 

December 31,
2017

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and temporary investments, net

 

$
15

 

$
20

 

Escrowed deposits for tenant inducements and liens

 
1

 
1

 

Other

 
3

 
4

 

 

 

 

 

 

 

 

 
19

 
25

 

Assets classified as held for sale 1

 
249

 

—

 

 

 

 

 

 

 

 

 
268

 
25

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property under development — Investment property

 
237

 
194

 

Investment property

 

—

 
221

 

Other

 
3

 
35

 

 

 

 

 

 

 

 

 
240

 
450

 

 

 

 

 

 

 

 

 

$
508

 

$
475

 

 

 

 

 

 

 

 

 

LIABILITIES AND OWNERS’ EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued liabilities

 

$
11

 

$
13

 

Current portion of 3.7% mortgage and senior secured 3.4% bonds

 

—

 
5

 

Construction holdback liabilities

 
12

 
10

 

 

 

 

 

 

 

 

 
23

 
28

 

Liabilities directly associated with assets classified as held for sale 1

 
238

 

—

 

 

 

 

 

 

 

 

 
261

 
28

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Construction credit facilities

 
180

 
141

 

3.7% mortgage due September 2024

 

—

 
27

 

Senior secured 3.4% bonds due July 2025

 

—

 
208

 

 

 

 

 

 

 

 

 
180

 
376

 

 

 

 

 

 

 

Liabilities

 
441

 
404

 

 

 

 

 

 

 

Owners’ equity

 

 

 

 

 

TELUS 2

 
27

 
29

 

Other partners

 
40

 
42

 

 

 

 

 

 

 

 

 
67

 
71

 

 

 

 

 

 

 

 

 

$
508

 

$
475

 

 

 

 

 

 

 

 

 

 

(1)

Assets held for sale include investment property of $218. Liabilities directly associated with assets classified as held for sale include $27 and $211 for the 3.7% mortgage due September 2024 and senior secured 3.4% bonds due July 2025, respectively.

 

(2)

The equity amounts recorded by the real estate joint ventures differ from those recorded by us by the amount of the deferred gains on our real estate contributed and the valuation provision we have recorded in excess of that recorded by the real estate joint venture.

 

 

 

 

 

Three months

 

Six months

 

Periods ended June 30 (millions)

 

2018

 

2017

 

2018

 

2017

 

Revenue

 

 

 

 

 

 

 

 

 

From investment property

 

$
8

 

$
8

 

$
16

 

$
17

 

From sale of residential condominiums

 

$

—

 

$
11

 

$

—

 

$
13

 

Depreciation and amortization

 

$
2

 

$
2

 

$
4

 

$
4

 

Interest expense 1

 

$
2

 

$
2

 

$
4

 

$
4

 

Net income and comprehensive income 2

 

$
(3

)

$
4

 

$
(2

)

$
6

 

 

(1)

During the three-month and six-month periods ended June 30, 2018, the real estate joint ventures capitalized $2 (2017 – $1) and $4 (2017 – $2), respectively, of financing costs.

 

(2)

As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income.
Schedule of joint ventures investment activity

 

 

Three-month periods ended June 30 (millions)

 

2018

 

2017

 

 

 

Loans and
receivables 1

 

Equity 2

 

Total

 

Loans and
receivables 1

 

Equity 2

 

Total

 

Related to real estate joint ventures’ statements of income and other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to us 3

 

$

—

 

$
(1

)

$
(1

)

$

—

 

$
2

 

$
2

 

Related to real estate joint ventures’ statements of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

Items not affecting currently reported cash flows

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognition of gain deferred on our real estate initially contributed

 

—

 

—

 

—

 

—

 
1

 
1

 

Cash flows in the current reporting period

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction credit facilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts advanced

 
7

 

—

 
7

 
8

 

—

 
8

 

Funds repaid to us and earnings distributed

 

—

 
(1

)
(1

)

—

 
(1

)
(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease)

 
7

 
(2

)
5

 
8

 
2

 
10

 

Real estate joint ventures carrying amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 
53

 
15

 
68

 
26

 
28

 
54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, end of period

 

$
60

 

$
13

 

$
73

 

$
34

 

$
30

 

$
64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six-month periods ended June 30 (millions)

 

2018

 

2017

 

 

 

Loans and
receivables 1

 

Equity 2

 

Total

 

Loans and
receivables 1

 

Equity 2

 

Total

 

Related to real estate joint ventures’ statements of income and other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to us 3

 

$

—

 

$
(1

)

$
(1

)

$

—

 

$
3

 

$
3

 

Related to real estate joint ventures’ statements of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

Items not affecting currently reported cash flows

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognition of gain deferred on our real estate initially contributed

 

—

 

—

 

—

 

—

 
1

 
1

 

Construction credit facilities financing costs charged by us and other (Note 6)

 
1

 

—

 
1

 

—

 

—

 

—

 

Cash flows in the current reporting period

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction credit facilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts advanced

 
13

 

—

 
13

 
13

 

—

 
13

 

Financing costs paid to us

 
(1

)

—

 
(1

)

—

 

—

 

—

 

Funds repaid to us and earnings distributed

 

—

 
(1

)
(1

)

—

 
(4

)
(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease)

 
13

 
(2

)
11

 
13

 

—

 
13

 

Real estate joint ventures carrying amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 
47

 
15

 
62

 
21

 
30

 
51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, end of period

 

$
60

 

$
13

 

$
73

 

$
34

 

$
30

 

$
64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Loans and receivables are included in our Consolidated statements of financial position as Real estate joint venture advances and are comprised of advances under construction credit facilities (see (d)).

(2)

We account for our interests in the real estate joint ventures using the equity method of accounting.

(3)

As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income; provision for income taxes is made in determining the comprehensive income attributable to us.
Schedule of construction credit facility

 

As at (millions)

 

Note

 

June 30,
2018

 

December 31,
2017

 

Construction credit facilities commitment — TELUS Corporation

 

 

 

 

 

 

 

Undrawn

 

4(c)

 

$
54

 

$
67

 

Advances

 

 

 
60

 
47

 

 

 

 

 

 

 

 

 

 

 

 

 
114

 
114

 

Construction credit facilities commitment — other

 

 

 
228

 
228

 

 

 

 

 

 

 

 

 

 

 

 

 

$
342

 

$
342