Date: | November 13, 2023 | 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) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial property revenue | $ | 1,488 | $ | 1,182 | $ | 4,390 | $ | 3,622 | ||||||
Hospitality revenue | 699 | 407 | 1,951 | 1,120 | ||||||||||
Investment and other revenue | 246 | 167 | 659 | 811 | ||||||||||
Total revenue | 2,433 | 1,756 | 7,000 | 5,553 | ||||||||||
Direct commercial property expense | 597 | 471 | 1,737 | 1,393 | ||||||||||
Direct hospitality expense | 532 | 282 | 1,565 | 847 | ||||||||||
Investment and other expense | 136 | 32 | 212 | 303 | ||||||||||
Interest expense | 1,222 | 707 | 3,563 | 1,930 | ||||||||||
General and administrative expense | 339 | 227 | 1,023 | 693 | ||||||||||
Total expenses | 2,826 | 1,719 | 8,100 | 5,166 | ||||||||||
Fair value (losses) gains, net | (5) | (387) | (116) | 906 | ||||||||||
Share of earnings (losses) from equity accounted investments | 161 | 527 | (13) | 1,326 | ||||||||||
(Loss) income before income taxes | (237) | 177 | (1,229) | 2,619 | ||||||||||
Income tax expense (recovery) | 130 | 173 | (10) | 403 | ||||||||||
Net (loss) income | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 | ||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Investment properties | ||||||||
Commercial properties | $ | 77,634 | $ | 66,067 | ||||
Commercial developments | 4,656 | 2,518 | ||||||
Equity accounted investments | 19,566 | 19,943 | ||||||
Property, plant and equipment | 10,228 | 9,401 | ||||||
Cash and cash equivalents | 2,556 | 4,020 | ||||||
Assets held for sale | 1,638 | 576 | ||||||
Total assets | 129,980 | 112,516 | ||||||
Debt obligations | 66,434 | 58,562 | ||||||
Liabilities associated with assets held for sale | 933 | — | ||||||
Total equity | 48,443 | 41,737 | ||||||
Nine months ended Sep. 30, 2023 | ||||||||
(US$ Millions) | Commercial properties | Commercial developments | ||||||
Investment properties, beginning of period | $ | 66,067 | $ | 2,518 | ||||
Acquisitions | 2,245 | 683 | ||||||
Capital expenditures | 594 | 950 | ||||||
Dispositions(1) |
(864) | (44) | ||||||
Fair value (losses) gains, net | (772) | 26 | ||||||
Foreign currency translation | (309) | (24) | ||||||
Transfer between commercial properties and commercial developments | 801 | (801) | ||||||
Acquisition of Foreign Investments(2) |
11,286 | 1,408 | ||||||
Reclassifications to assets held for sale and other changes | (1,414) | (60) | ||||||
Investment properties, end of period | $ | 77,634 | $ | 4,656 |
(US$ Millions) | Nine months ended Sep. 30, 2023 |
||||
Equity accounted investments, beginning of period | $ | 19,943 | |||
Additions | 195 | ||||
Disposals and return of capital distributions | (592) | ||||
Share of net (loss) earnings from equity accounted investments | 14 | ||||
Distributions received | (136) | ||||
Foreign currency translation | 26 | ||||
Reclassification (to)/from assets held for sale | 73 | ||||
Acquisition of Foreign Investments(1) |
211 | ||||
Other comprehensive income and other | (168) | ||||
Equity accounted investments, end of period | $ | 19,566 |
(US$ Millions) | Nine months ended Sep. 30, 2023 | ||||
Cost: | |||||
Balance at the beginning of period | $ | 9,050 | |||
Additions | 389 | ||||
Disposals | (164) | ||||
Foreign currency translation | (29) | ||||
Acquisition of Foreign Investments(1) |
945 | ||||
Other | (6) | ||||
10,185 | |||||
Accumulated fair value changes: | |||||
Balance at the beginning of period | 1,376 | ||||
Disposals | (38) | ||||
Foreign currency translation | (2) | ||||
Other | (5) | ||||
1,331 | |||||
Accumulated depreciation: | |||||
Balance at the beginning of period | (1,025) | ||||
Depreciation | (308) | ||||
Disposals | 35 | ||||
Foreign currency translation | 3 | ||||
Other | 7 | ||||
(1,288) | |||||
Total property, plant and equipment(2) |
$ | 10,228 |
(US$ Millions) | Nine months ended Sep. 30, 2023 | ||||
Balance, beginning of period | $ | 576 | |||
Reclassification to assets held for sale, net | 1,401 | ||||
Disposals | (351) | ||||
Fair value adjustments | (52) | ||||
Foreign currency translation | 1 | ||||
Acquisition of Foreign Investments | 47 | ||||
Other | 16 | ||||
Balance, end of period | $ | 1,638 |
Non-cash changes in debt obligations | |||||||||||||||||||||||||||||
(US$ Millions) | Dec. 31, 2022 | Debt obligation issuance, net of repayments | Debt from asset acquisitions | Assumed by purchaser | Amortization of deferred financing costs and (premium) discount | Foreign currency translation | Acquisition of Foreign Investments(1) |
Other | Sep. 30, 2023 | ||||||||||||||||||||
Debt obligations | $ | 58,562 | (2,222) | 394 | (88) | 150 | (190) | 10,674 | (76) | $ | 67,204 |
2023 | 2022 | 2021 | ||||||||||||||||||||||||
(US$ Millions, except per unit information) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||||||||||||||||||
Revenue | $ | 2,433 | $ | 2,327 | $ | 2,240 | $ | 1,812 | $ | 1,756 | $ | 1,743 | $ | 2,054 | $ | 2,169 | ||||||||||
Direct operating costs | 1,129 | 1,077 | 1,096 | 753 | 753 | 729 | 758 | 779 | ||||||||||||||||||
Net income (loss) | (367) | (458) | (394) | (1,220) | 4 | 520 | 1,692 | 1,682 | ||||||||||||||||||
Net income (loss) attributable to Unitholders | (177) | (531) | (232) | (1,196) | (38) | 400 | 702 | 620 | ||||||||||||||||||
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Office | $ | (8) | $ | 43 | $ | 16 | $ | 277 | ||||||
Retail | 62 | 107 | 240 | 463 | ||||||||||
LP Investments | (44) | 74 | (74) | 219 | ||||||||||
Corporate | (175) | (148) | (554) | (479) | ||||||||||
FFO(1) |
$ | (165) | $ | 76 | $ | (372) | $ | 480 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Office(1) |
$ | 4 | $ | 58 | $ | 50 | $ | 311 | ||||||
Retail(1) |
81 | 121 | 291 | 459 | ||||||||||
LP Investments(1) |
(44) | 41 | (84) | 195 | ||||||||||
Corporate(1) |
(174) | (148) | (541) | (477) | ||||||||||
CFFO(1) |
$ | (133) | $ | 72 | $ | (284) | $ | 488 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Office(1) |
$ | 12,418 | $ | 13,491 | ||||
Retail(1) |
15,906 | 15,230 | ||||||
LP Investments(1) |
6,619 | 5,816 | ||||||
Corporate(1) |
(12,041) | (11,583) | ||||||
Equity attributable to Unitholders(1) |
$ | 22,902 | $ | 22,954 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
FFO | $ | (8) | $ | 43 | $ | 16 | $ | 277 | ||||||
CFFO | 4 | 58 | 50 | 311 | ||||||||||
Net (loss) income | (256) | 65 | (849) | 765 |
Consolidated | Unconsolidated | |||||||||||||
(US$ Millions, except where noted) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||||||||||
Total portfolio(1): |
||||||||||||||
Number of properties | 61 | 62 | 70 | 71 | ||||||||||
Leasable square feet (in thousands)(2) |
44,630 | 45,932 | 29,053 | 29,879 | ||||||||||
Occupancy | 83.5 | % | 84.4 | % | 88.2 | % | 90.6 | % | ||||||
Sep. 30, 2023 | ||||||||
(US$ Millions) | Commercial properties | Commercial developments | ||||||
Investment properties, beginning of period | $ | 22,129 | $ | 1,355 | ||||
Capital expenditures | 170 | 211 | ||||||
Property dispositions | (374) | (29) | ||||||
Fair value (losses) gains, net | (1,088) | 10 | ||||||
Foreign currency translation | (65) | (8) | ||||||
Transfer between commercial properties and commercial developments | 752 | (752) | ||||||
Reclassifications to assets held for sale | (794) | (14) | ||||||
Investment properties, end of period | $ | 20,730 | $ | 773 |
(US$ Millions) | Sep. 30, 2023 | ||||
Equity accounted investments, beginning of period | $ | 8,547 | |||
Additions | 38 | ||||
Disposals and return of capital distributions | (104) | ||||
Share of net earnings, including fair value gains | (100) | ||||
Distributions received | (76) | ||||
Foreign currency translation | 22 | ||||
Other comprehensive income and Other | (28) | ||||
Equity accounted investments, end of period | $ | 8,299 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
FFO | $ | 62 | $ | 107 | $ | 240 | $ | 463 | ||||||
CFFO | 81 | 121 | 291 | 459 | ||||||||||
Net income | 519 | 91 | 660 | 698 |
Consolidated | Unconsolidated | |||||||||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||||||||||
Total portfolio(1): |
||||||||||||||
Number of malls and urban retail properties | 57 | 58 | 51 | 53 | ||||||||||
Leasable square feet (in thousands)(2) |
50,723 | 51,678 | 58,339 | 59,843 | ||||||||||
Leased % |
93.3 | % | 93.3 | % | 96.6 | % | 96.1 | % | ||||||
Sep. 30, 2023 | |||||
(US$ Millions) | Commercial properties | ||||
Investment properties, beginning of period | $ | 19,438 | |||
Property acquisitions | 85 | ||||
Capital expenditures | 87 | ||||
Property dispositions | (4) | ||||
Fair value (losses), net | 63 | ||||
Transfer between commercial properties and commercial developments | 40 | ||||
Reclassifications to assets held for sale | (139) | ||||
Investment properties, end of period | $ | 19,570 |
(US$ Millions) | Sep. 30, 2023 | ||||
Equity accounted investments, beginning of year | $ | 9,674 | |||
Additions | 56 | ||||
Disposals and return of capital | (112) | ||||
Share of net earnings from equity accounted investments | 172 | ||||
Distributions | (14) | ||||
Other | (171) | ||||
Equity accounted investments, end of period | $ | 9,605 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
FFO | $ | (44) | $ | 74 | $ | (74) | $ | 219 | ||||||
CFFO | (44) | 41 | (84) | 195 | ||||||||||
Net (loss) income | (383) | (5) | (422) | 1,066 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
FFO | $ | (175) | $ | (148) | $ | (554) | $ | (479) | ||||||
CFFO | (174) | (148) | (541) | (477) | ||||||||||
Net loss | (247) | (147) | (608) | (313) |
(US$ Millions) | ||||||||||||||
Sep. 30, 2023 | Office | Retail | LP Investments | Total | ||||||||||
2023(1) |
$ | 1,230 | $ | 1,348 | $ | 3,012 | $ | 5,590 | ||||||
2024(1) |
5,656 | 2,919 | 11,885 | 20,460 | ||||||||||
2025 | 1,225 | 2,115 | 3,073 | 6,413 | ||||||||||
2026 | 2,402 | 709 | 997 | 4,108 | ||||||||||
2027 | 719 | 987 | 2,587 | 4,293 | ||||||||||
2028 and thereafter | 1,535 | 1,222 | 4,531 | 7,288 | ||||||||||
Deferred financing costs | (60) | (30) | (141) | (231) | ||||||||||
Secured debt obligations | $ | 12,707 | $ | 9,270 | $ | 25,944 | $ | 47,921 | ||||||
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 | ||||||
Add (deduct): | ||||||||||||||
Income tax expense (benefit) | 130 | 173 | (10) | 403 | ||||||||||
Investment and other revenue | (246) | (167) | (659) | (811) | ||||||||||
Interest expense | 1,222 | 707 | 3,563 | 1,930 | ||||||||||
Depreciation and amortization expense(1) |
113 | 68 | 329 | 218 | ||||||||||
Investment and other expense | 136 | 32 | 212 | 303 | ||||||||||
General and administrative expense | 339 | 227 | 1,023 | 693 | ||||||||||
Fair value losses (gains), net | 5 | 387 | 116 | (906) | ||||||||||
Share of net (earnings) loss from equity accounted investments | (161) | (527) | 13 | (1,326) | ||||||||||
Total NOI(1) |
$ | 1,171 | $ | 904 | $ | 3,368 | $ | 2,720 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial property revenue | $ | 1,488 | $ | 1,182 | $ | 4,390 | $ | 3,622 | ||||||
Direct commercial property expense | (597) | (471) | (1,737) | (1,393) | ||||||||||
Add: Depreciation and amortization expense in direct commercial property expense(1) |
13 | 7 | 38 | 22 | ||||||||||
Commercial property NOI(1) |
904 | 718 | 2,691 | 2,251 | ||||||||||
Hospitality revenue | 699 | 407 | 1,951 | 1,120 | ||||||||||
Direct hospitality expense | (532) | (282) | (1,565) | (847) | ||||||||||
Add: Depreciation and amortization expense in direct hospitality expense(1) |
100 | 61 | 291 | 196 | ||||||||||
Hospitality NOI(1) |
267 | 186 | 677 | 469 | ||||||||||
Total NOI(1) |
$ | 1,171 | $ | 904 | $ | 3,368 | $ | 2,720 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 | ||||||
Add (deduct): | ||||||||||||||
Fair value losses (gains), net | 5 | 387 | 116 | (906) | ||||||||||
Share of equity accounted fair value (gains) losses, net | (52) | (401) | 371 | (770) | ||||||||||
Depreciation and amortization of real estate assets(1) |
81 | 45 | 240 | 143 | ||||||||||
Income tax expense (benefit) | 130 | 173 | (10) | 403 | ||||||||||
Non-controlling interests in above items | 38 | (132) | 130 | (606) | ||||||||||
FFO | $ | (165) | $ | 76 | $ | (372) | $ | 480 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) |
13 | 15 | 44 | 43 | ||||||||||
Transaction costs, net(2) |
26 | 21 | 69 | 5 | ||||||||||
(Gains)/losses associated with non-investment properties, net(2) |
(4) | — | (4) | — | ||||||||||
Imputed interest(3) |
6 | 3 | 15 | 12 | ||||||||||
BSREP III (earnings) loss(4) |
(9) | (43) | (36) | (52) | ||||||||||
Company FFO | $ | (133) | $ | 72 | $ | (284) | $ | 488 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income | $ | (256) | $ | 65 | $ | (849) | $ | 765 | ||||||
Add (deduct): | ||||||||||||||
Income tax (benefit) expense | (14) | 136 | (101) | 174 | ||||||||||
Investment and other revenue | (30) | (78) | (123) | (241) | ||||||||||
Interest expense | 223 | 197 | 654 | 515 | ||||||||||
Depreciation and amortization included in direct commercial property expense and direct hospitality expense(2) |
3 | 3 | 9 | 9 | ||||||||||
Investment and other expense | 12 | 32 | 35 | 99 | ||||||||||
General and administrative expense | 56 | 61 | 188 | 185 | ||||||||||
Fair value losses (gains), net | 390 | 208 | 824 | 120 | ||||||||||
Share of net losses (earnings) from equity accounted investments | (139) | (361) | 100 | (831) | ||||||||||
Total NOI - Office(1) |
$ | 245 | $ | 263 | $ | 737 | $ | 795 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial property revenue | $ | 451 | $ | 462 | $ | 1,344 | $ | 1,397 | ||||||
Hospitality revenue(1) |
6 | 5 | 20 | 15 | ||||||||||
Direct commercial property expense | (209) | (202) | (617) | (610) | ||||||||||
Direct hospitality expense(1) |
(6) | $ | (5) | (19) | (16) | |||||||||
Add: Depreciation and amortization included in direct commercial property expense and direct hospitality expense(2) |
3 | $ | 3 | 9 | 9 | |||||||||
Total NOI - Office(2) |
$ | 245 | $ | 263 | $ | 737 | $ | 795 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income | $ | (256) | $ | 65 | $ | (849) | $ | 765 | ||||||
Add (deduct): | ||||||||||||||
Fair value losses, net | 390 | 208 | 824 | 120 | ||||||||||
Share of equity accounted fair value (gains) losses, net | (95) | (322) | 238 | (638) | ||||||||||
Depreciation and amortization of real estate assets(1) |
1 | 1 | 3 | 3 | ||||||||||
Income tax (benefit) expense | (14) | 136 | (101) | 174 | ||||||||||
Non-controlling interests in above items | (34) | (45) | (99) | (147) | ||||||||||
FFO | $ | (8) | $ | 43 | $ | 16 | $ | 277 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) |
1 | 5 | 10 | 12 | ||||||||||
Transaction costs, net(1) |
6 | 7 | 11 | 10 | ||||||||||
Imputed interest(3) |
5 | 3 | 13 | 12 | ||||||||||
Company FFO | $ | 4 | $ | 58 | $ | 50 | $ | 311 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Unconsolidated properties NOI | $ | 137 | $ | 107 | $ | 407 | $ | 349 | ||||||
Unconsolidated properties fair value (losses) gains, net | 95 | 322 | (238) | 638 | ||||||||||
Other(1) |
(93) | (68) | (269) | (156) | ||||||||||
Share of net (losses) earnings from equity accounted investments | $ | 139 | $ | 361 | $ | (100) | $ | 831 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | 519 | $ | 91 | $ | 660 | $ | 698 | ||||||
Add (deduct): | ||||||||||||||
Income tax expense | 7 | 45 | 33 | 58 | ||||||||||
Investment and other revenue | (33) | (37) | (100) | (119) | ||||||||||
Interest expense | 207 | 175 | 601 | 470 | ||||||||||
Depreciation and amortization expense(2) |
4 | 5 | 13 | 15 | ||||||||||
General and administrative expense | 57 | 51 | 171 | 159 | ||||||||||
Fair value losses (gains), net | (478) | 28 | (475) | (122) | ||||||||||
Share of net (earnings) losses from equity accounted investments | (47) | (122) | (172) | (437) | ||||||||||
Total NOI - Retail(1) |
$ | 236 | $ | 236 | $ | 731 | $ | 722 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial property revenue | $ | 343 | $ | 344 | $ | 1,037 | $ | 1,021 | ||||||
Direct commercial property expense | (111) | (113) | (319) | (314) | ||||||||||
Add: Depreciation and amortization included in direct commercial property expense(1) |
4 | 5 | 13 | 15 | ||||||||||
Total NOI - Retail(1) |
$ | 236 | $ | 236 | $ | 731 | $ | 722 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | 519 | $ | 91 | $ | 660 | $ | 698 | ||||||
Add (deduct): | ||||||||||||||
Share of equity accounted fair value losses (gains), net | 21 | (45) | 38 | (130) | ||||||||||
Fair value (gains) losses, net | (478) | 28 | (475) | (122) | ||||||||||
Income tax expense | 7 | 45 | 33 | 58 | ||||||||||
Non-controlling interests in above items | (7) | (12) | (16) | (41) | ||||||||||
FFO | $ | 62 | $ | 107 | $ | 240 | $ | 463 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) |
4 | 5 | 12 | 14 | ||||||||||
Transaction costs, net(2) |
19 | 9 | 43 | (18) | ||||||||||
(Gains)/losses associated with non-investment properties, net(2) |
(4) | — | (4) | — | ||||||||||
Company FFO | $ | 81 | $ | 121 | $ | 291 | $ | 459 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Unconsolidated properties NOI | $ | 179 | $ | 174 | $ | 543 | $ | 540 | ||||||
Unconsolidated properties fair value (losses) gains, net and income tax expense | (21) | 45 | (38) | 130 | ||||||||||
Other(1) |
(111) | (97) | (333) | (233) | ||||||||||
Share of net earnings from equity accounted investments | $ | 47 | $ | 122 | $ | 172 | $ | 437 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income | $ | (383) | $ | (5) | $ | (422) | $ | 1,066 | ||||||
Add (deduct): | ||||||||||||||
Income tax expense (benefit) | 58 | (12) | (56) | 142 | ||||||||||
Investment and other revenue | (114) | (51) | (256) | (448) | ||||||||||
Interest expense | 696 | 262 | 2,016 | 733 | ||||||||||
Depreciation and amortization expense(2) |
104 | 60 | 304 | 194 | ||||||||||
Investment and other expense | 124 | — | 177 | 204 | ||||||||||
General and administrative expense | 89 | 49 | 259 | 142 | ||||||||||
Fair value losses (gains), net | 90 | 146 | (208) | (772) | ||||||||||
Share of net losses (earnings) from equity accounted investments | 25 | (44) | 85 | (58) | ||||||||||
Total NOI(1) |
$ | 689 | $ | 405 | $ | 1,899 | $ | 1,203 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial property revenue | $ | 694 | $ | 376 | $ | 2,009 | $ | 1,204 | ||||||
Hospitality revenue | 693 | 402 | 1,931 | 1,105 | ||||||||||
Direct commercial property expense | (276) | (156) | (799) | (469) | ||||||||||
Direct hospitality expense | (526) | (277) | (1,546) | (831) | ||||||||||
Add: Depreciation and amortization included in direct commercial property expense and direct hospitality expense(1) |
104 | 60 | 304 | 194 | ||||||||||
Total NOI(1) |
$ | 689 | $ | 405 | $ | 1,899 | $ | 1,203 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net (loss) income | $ | (383) | $ | (5) | $ | (422) | $ | 1,066 | ||||||
Add (deduct): | ||||||||||||||
Fair value losses (gains), net | 90 | 146 | (208) | (772) | ||||||||||
Share of equity accounted fair value losses (gains), net | 22 | (34) | 95 | (2) | ||||||||||
Depreciation and amortization of real estate assets(1) |
80 | 44 | 237 | 140 | ||||||||||
Income tax expense (benefit) | 58 | (12) | (56) | 142 | ||||||||||
Non-controlling interests in above items | 89 | (65) | 280 | (355) | ||||||||||
FFO | $ | (44) | $ | 74 | $ | (74) | $ | 219 | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1)(2) |
8 | 5 | 19 | 17 | ||||||||||
Transaction costs, net(2) |
1 | 5 | 5 | 11 | ||||||||||
Imputed interest(3) |
1 | — | 2 | — | ||||||||||
BSREP III earnings(3) |
(10) | (43) | (36) | (52) | ||||||||||
CFFO | $ | (44) | $ | 41 | $ | (84) | $ | 195 | ||||||
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net loss | $ | (247) | $ | (147) | $ | (608) | $ | (313) | ||||||
Net (income) loss attributable to non-controlling interests | 18 | (18) | (43) | 87 | ||||||||||
Net loss attributable to Unitholders | $ | (265) | $ | (129) | $ | (565) | $ | (400) |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net loss | $ | (247) | $ | (147) | $ | (608) | $ | (313) | ||||||
Add (deduct): | ||||||||||||||
Fair value losses (gains), net | 3 | 5 | (25) | (132) | ||||||||||
Income tax (benefit) expense | 79 | 4 | 114 | 29 | ||||||||||
Non-controlling interests in above items | (10) | (10) | (35) | (63) | ||||||||||
FFO | $ | (175) | $ | (148) | $ | (554) | $ | (479) | ||||||
Add (deduct): | ||||||||||||||
Depreciation and amortization of non-real-estate assets, net(1) |
1 | — | 3 | — | ||||||||||
Transaction costs, net(1) |
— | — | 10 | 2 | ||||||||||
CFFO | $ | (174) | $ | (148) | $ | (541) | $ | (477) |
(US$ Millions)
For the three months ended Sep. 30, 2023
|
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 | $ | — | $ | 9 | $ | 27 | $ | — | $ | 28 | $ | 56 | $ | 120 | $ | 151 | $ | 2,042 | $ | 2,433 | ||||||||||||
Net income attributable to unitholders(1) |
(63) | (159) | (294) | — | 49 | 45 | (177) | 141 | 281 | (177) | ||||||||||||||||||||||
For the three months ended Sep. 30, 2022 |
||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||
(US$ Millions)
For the nine months ended Sep. 30, 2023
|
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 | $ | — | $ | 19 | $ | 49 | $ | — | $ | 88 | $ | 164 | $ | 369 | $ | 519 | $ | 5,792 | $ | 7,000 | ||||||||||||
Net income attributable to unitholders(1) |
(337) | (603) | (626) | — | 7 | 132 | (940) | 492 | 935 | (940) | ||||||||||||||||||||||
For the nine months ended Sep. 30, 2022 |
||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
(US$ Millions)
As of Sep. 30, 2023
|
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 | $ | — | $ | 426 | $ | 165 | $ | — | $ | 2,339 | $ | 2,952 | $ | 4,085 | $ | 1,102 | $ | (3,827) | $ | 7,242 | ||||||||||||
Non-current assets | 8,933 | 6,850 | 11,459 | — | 6 | — | 32,989 | 2,241 | 58,622 | 121,100 | ||||||||||||||||||||||
Assets held for sale | — | — | — | — | — | — | — | — | 1,638 | 1,638 | ||||||||||||||||||||||
Current liabilities | — | 1,458 | 2,510 | — | 626 | — | 7,358 | 652 | 19,963 | 32,567 | ||||||||||||||||||||||
Non-current liabilities | — | 15 | 1,585 | — | 1,562 | 659 | 5,393 | 276 | 38,547 | 48,037 | ||||||||||||||||||||||
Liabilities associated with assets held for sale | — | — | — | — | — | — | — | — | 933 | 933 | ||||||||||||||||||||||
Preferred equity | 699 | 3,728 | — | — | — | — | 722 | — | (4,450) | 699 | ||||||||||||||||||||||
Equity attributable to interests of others in operating subsidiaries and properties | — | — | 2,106 | — | — | — | — | — | 22,736 | 24,842 | ||||||||||||||||||||||
Equity attributable to unitholders(1) |
$ | 8,234 | $ | 2,075 | $ | 5,423 | $ | — | $ | 157 | $ | 2,293 | $ | 23,601 | $ | 2,415 | $ | (21,296) | $ | 22,902 |
(US$ Millions)
As of Dec. 31, 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 | $ | — | $ | 442 | $ | 1,058 | $ | — | $ | 2,146 | $ | 2,952 | $ | 5,792 | $ | 191 | $ | (6,071) | $ | 6,510 | ||||||||||||
Non-current assets | 8,946 | 7,368 | 16,205 | — | 190 | — | 31,158 | 2,352 | 39,211 | 105,430 | ||||||||||||||||||||||
Assets held for sale | — | — | — | — | — | — | — | — | 576 | 576 | ||||||||||||||||||||||
Current liabilities | — | 2,606 | 3,372 | — | 721 | — | 6,969 | 1,230 | 9,283 | 24,181 | ||||||||||||||||||||||
Non-current liabilities | — | 15 | 1,977 | — | 1,475 | 659 | 5,603 | 202 | 36,667 | 46,598 | ||||||||||||||||||||||
Liabilities associated with assets held for sale | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Preferred equity | 699 | 3,430 | — | — | — | — | 722 | — | (4,152) | 699 | ||||||||||||||||||||||
Equity attributable to interests of others in operating subsidiaries and properties | — | — | 2,284 | — | — | — | — | — | 15,800 | 18,084 | ||||||||||||||||||||||
Equity attributable to unitholders(1) |
$ | 8,247 | $ | 1,759 | $ | 9,630 | $ | — | $ | 140 | $ | 2,293 | $ | 23,656 | $ | 1,111 | $ | (23,882) | $ | 22,954 |
(US$ Millions)
For the nine months ended Sep. 30, 2023
|
Combined Guarantor entities | ||||
Revenue | $ | 2 | |||
Revenue - from related parties | 5 | ||||
Revenue - from non-guarantor subsidiaries | 291 | ||||
Dividend income - from non-guarantor subsidiaries | 573 | ||||
Operating profit | 551 | ||||
Net income | 1,814 |
(US$ Millions)
For the year ended Dec. 31, 2022
|
Combined Guarantor entities | ||||
Revenue - from non-guarantor subsidiaries | $ | 450 | |||
Dividend income - from non-guarantor subsidiaries | 827 | ||||
Operating profit | 804 | ||||
Net income | 943 |
(US$ Millions)
As at Sep. 30, 2023
|
Combined Guarantor entities | ||||
Current assets | $ | 56 | |||
Current assets - due from related parties | 1,310 | ||||
Current assets - due from non-guarantor subsidiaries | 6,137 | ||||
Long-term assets | 87 | ||||
Long-term assets - due from related parties | 73 | ||||
Current liabilities | 384 | ||||
Current liabilities - due to related parties | 266 | ||||
Current liabilities - due to non-guarantor subsidiaries | 6,724 | ||||
Long-term liabilities | 2,818 | ||||
Long-term liabilities - due to non-guarantor subsidiaries | 1,704 | ||||
Preferred equity and capital securities | 2,320 | ||||
Non-controlling interests | 4,176 |
(US$ Millions)
As at Dec. 31, 2022
|
Combined Guarantor entities | ||||
Current assets | $ | 77 | |||
Current assets - due from related parties | 2 | ||||
Current assets - due from non-guarantor subsidiaries | 8,084 | ||||
Long-term assets | 3 | ||||
Long-term assets - due from related parties | 58 | ||||
Current liabilities | 282 | ||||
Current liabilities - due to related parties | 27 | ||||
Current liabilities - due to non-guarantor subsidiaries | 7,115 | ||||
Long-term liabilities | 2,970 | ||||
Long-term liabilities - due to non-guarantor subsidiaries | 1,704 | ||||
Preferred equity and capital securities | 2,304 | ||||
Non-controlling interests | 4,252 |
Unaudited | As at | |||||||||||||
(US$ Millions) | Note | Sep. 30, 2023 | Dec. 31, 2022 | |||||||||||
Assets | ||||||||||||||
Non-current assets | ||||||||||||||
Investment properties | 3 | $ | 82,290 | $ | 68,585 | |||||||||
Equity accounted investments | 4 | 19,566 | 19,943 | |||||||||||
Property, plant and equipment | 5 | 10,228 | 9,401 | |||||||||||
Goodwill | 6 | 1,390 | 946 | |||||||||||
Intangible assets | 7 | 1,019 | 966 | |||||||||||
Other non-current assets | 8 | 6,062 | 5,217 | |||||||||||
Loans and notes receivable | 545 | 372 | ||||||||||||
Total non-current assets | 121,100 | 105,430 | ||||||||||||
Current assets | ||||||||||||||
Loans and notes receivable | 1,668 | 314 | ||||||||||||
Accounts receivable and other | 9 | 3,018 | 2,176 | |||||||||||
Cash and cash equivalents | 2,556 | 4,020 | ||||||||||||
Total current assets | 7,242 | 6,510 | ||||||||||||
Assets held for sale | 10 | 1,638 | 576 | |||||||||||
Total assets | 129,980 | $ | 112,516 | |||||||||||
Liabilities and equity | ||||||||||||||
Non-current liabilities | ||||||||||||||
Debt obligations | 11 | 39,347 | $ | 38,858 | ||||||||||
Capital securities | 12 | 2,653 | 2,233 | |||||||||||
Other non-current liabilities | 14 | 2,220 | 2,443 | |||||||||||
Deferred tax liabilities | 3,817 | 3,064 | ||||||||||||
Total non-current liabilities | 48,037 | 46,598 | ||||||||||||
Current liabilities | ||||||||||||||
Debt obligations | 11 | 27,087 | 19,704 | |||||||||||
Capital securities | 12 | 238 | 600 | |||||||||||
Accounts payable and other liabilities | 15 | 5,242 | 3,877 | |||||||||||
Total current liabilities | 32,567 | 24,181 | ||||||||||||
Liabilities associated with assets held for sale | 10 | 933 | — | |||||||||||
Total liabilities | 81,537 | 70,779 | ||||||||||||
Equity | ||||||||||||||
Limited partners | 16 | 8,208 | 8,217 | |||||||||||
General partner | 16 | 4 | 4 | |||||||||||
Preferred equity | 16 | 699 | 699 | |||||||||||
Non-controlling interests attributable to: | ||||||||||||||
Redeemable/exchangeable and special limited partnership units | 16, 17 | 14,671 | 14,688 | |||||||||||
FV LTIP units of the Operating Partnership | 16, 17 | 19 | 45 | |||||||||||
Interests of others in operating subsidiaries and properties | 17 | 24,842 | 18,084 | |||||||||||
Total equity | 48,443 | 41,737 | ||||||||||||
Total liabilities and equity | $ | 129,980 | $ | 112,516 |
Unaudited | Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||||
(US$ Millions, except per unit amounts) | Note | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Commercial property revenue | 18 | $ | 1,488 | $ | 1,182 | $ | 4,390 | $ | 3,622 | ||||||||
Hospitality revenue | 19 | 699 | 407 | 1,951 | 1,120 | ||||||||||||
Investment and other revenue | 20 | 246 | 167 | 659 | 811 | ||||||||||||
Total revenue | 2,433 | 1,756 | 7,000 | 5,553 | |||||||||||||
Direct commercial property expense | 21 | 597 | 471 | 1,737 | 1,393 | ||||||||||||
Direct hospitality expense | 22 | 532 | 282 | 1,565 | 847 | ||||||||||||
Investment and other expense | 136 | 32 | 212 | 303 | |||||||||||||
Interest expense | 1,222 | 707 | 3,563 | 1,930 | |||||||||||||
General and administrative expense | 23 | 339 | 227 | 1,023 | 693 | ||||||||||||
Total expenses | 2,826 | 1,719 | 8,100 | 5,166 | |||||||||||||
Fair value (losses) gains, net | 24 | (5) | (387) | (116) | 906 | ||||||||||||
Share of net (loss) earnings from equity accounted investments | 4 | 161 | 527 | (13) | 1,326 | ||||||||||||
(Loss) income before income taxes | (237) | 177 | (1,229) | 2,619 | |||||||||||||
Income tax expense (benefit) | 13 | 130 | 173 | (10) | 403 | ||||||||||||
Net (loss) income | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 | |||||||||
Net (loss) income attributable to: | |||||||||||||||||
Limited partners | $ | (63) | $ | (14) | $ | (337) | $ | 381 | |||||||||
General partner | — | — | — | — | |||||||||||||
Non-controlling interests attributable to: | |||||||||||||||||
Redeemable/exchangeable and special limited partnership units | (113) | (24) | (601) | 681 | |||||||||||||
FV LTIP units of the Operating Partnership | (1) | — | (2) | 2 | |||||||||||||
Interests of others in operating subsidiaries and properties | (190) | 42 | (279) | 1,152 | |||||||||||||
Total | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 | |||||||||
Unaudited | Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||||
(US$ Millions) | Note | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net (loss) income | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 | |||||||||
Other comprehensive (loss) income | 25 | ||||||||||||||||
Items that may be reclassified to net (loss) income: | |||||||||||||||||
Foreign currency translation | (266) | (323) | (80) | (838) | |||||||||||||
Cash flow hedges | (26) | (19) | 205 | 47 | |||||||||||||
Equity accounted investments | (31) | 55 | (27) | 128 | |||||||||||||
Items that will not be reclassified to net (loss) income: | |||||||||||||||||
Securities - fair value through other comprehensive loss ("FVTOCI") | (1) | (1) | (16) | (21) | |||||||||||||
Remeasurement of defined benefit obligations | — | — | (2) | 1 | |||||||||||||
Revaluation (deficit) surplus | — | (8) | 2 | (8) | |||||||||||||
Total other comprehensive (loss) income | (324) | (296) | 82 | (691) | |||||||||||||
Total comprehensive (loss) income | $ | (691) | $ | (292) | $ | (1,137) | $ | 1,525 | |||||||||
Comprehensive (loss) income attributable to: | |||||||||||||||||
Limited partners | |||||||||||||||||
Net (loss) income | $ | (63) | $ | (14) | $ | (337) | $ | 381 | |||||||||
Other comprehensive (loss) income | (91) | (116) | 18 | (211) | |||||||||||||
(154) | (130) | (319) | 170 | ||||||||||||||
Non-controlling interests | |||||||||||||||||
Redeemable/exchangeable and special limited partnership units | |||||||||||||||||
Net (loss) income | (113) | (24) | (601) | 681 | |||||||||||||
Other comprehensive (loss) income | (162) | (206) | 33 | (376) | |||||||||||||
(275) | (230) | (568) | 305 | ||||||||||||||
FV LTIP units of the Operating Partnership | |||||||||||||||||
Net (loss) income | (1) | — | (2) | 2 | |||||||||||||
Other comprehensive (loss) | — | — | — | (1) | |||||||||||||
(1) | — | (2) | 1 | ||||||||||||||
Interests of others in operating subsidiaries and properties | |||||||||||||||||
Net (loss) income | (190) | 42 | (279) | 1,152 | |||||||||||||
Other comprehensive (loss) income | (71) | 26 | 31 | (103) | |||||||||||||
(261) | 68 | (248) | 1,049 | ||||||||||||||
Total comprehensive (loss) income | $ | (691) | $ | (292) | $ | (1,137) | $ | 1,525 |
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 |
FV LTIP units of the Operating Partnership | Interests of others in operating subsidiaries and properties | Total equity | |||||||||||||||||||||||||||||||||||||||||
Balance as at Dec. 31, 2022 | $ | 5,861 | $ | (67) | $ | 2,526 | $ | (103) | $ | 8,217 | $ | 4 | $ | 2 | $ | (1) | $ | (1) | $ | 4 | $ | 699 | $ | 14,688 | $ | 45 | $ | 18,084 | $ | 41,737 | ||||||||||||||||||||||||||
Net (loss) | — | (337) | — | — | (337) | — | — | — | — | — | — | (601) | (2) | (279) | (1,219) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 18 | 18 | — | — | — | — | — | — | 33 | — | 31 | 82 | |||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | (337) | — | 18 | (319) | — | — | — | — | — | — | (568) | (2) | (248) | (1,137) | |||||||||||||||||||||||||||||||||||||||||
Distributions | — | (329) | — | — | (329) | — | — | — | — | — | — | (588) | (2) | (3,147) | (4,066) | |||||||||||||||||||||||||||||||||||||||||
Preferred distributions | — | (12) | — | — | (12) | — | — | — | — | — | — | (21) | — | — | (33) | |||||||||||||||||||||||||||||||||||||||||
Issuance (repurchase) of interests in operating subsidiaries | 603 | 28 | 17 | — | 648 | — | — | — | — | — | — | 1,155 | (14) | 10,153 | 11,942 | |||||||||||||||||||||||||||||||||||||||||
Change in relative interests of non-controlling interests | — | — | 3 | — | 3 | — | — | — | — | — | — | 5 | (8) | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as at Sep. 30, 2023 | $ | 6,464 | $ | (717) | $ | 2,546 | $ | (85) | $ | 8,208 | $ | 4 | $ | 2 | $ | (1) | $ | (1) | $ | 4 | $ | 699 | $ | 14,671 | $ | 19 | $ | 24,842 | $ | 48,443 | ||||||||||||||||||||||||||
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 interest in operating subsidiaries | — | (29) | 4 | — | (25) | — | — | — | — | — | — | (44) | 9 | (971) | (1,031) | |||||||||||||||||||||||||||||||||||||||||
Change in relative interest 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 |
Unaudited | Nine Months Ended Sep. 30, | ||||||||||
(US$ Millions) | Note | 2023 | 2022 | ||||||||
Operating activities | |||||||||||
Net (loss) income | $ | (1,219) | $ | 2,216 | |||||||
Share of equity accounted earnings (losses), net of distributions | 122 | (1,091) | |||||||||
Fair value losses (gains), net | 24 | 116 | (906) | ||||||||
Deferred income (benefit) tax expense | 13 | (82) | 269 | ||||||||
Depreciation and amortization | 21,22 | 329 | 218 | ||||||||
Working capital and other | 69 | (565) | |||||||||
(665) | 141 | ||||||||||
Financing activities | |||||||||||
Debt obligations, issuance | 12,907 | 7,756 | |||||||||
Debt obligations, repayments | (15,129) | (8,228) | |||||||||
Capital securities issued | 275 | 57 | |||||||||
Capital securities redeemed | (11) | — | |||||||||
Non-controlling interests, issued | 5,913 | 495 | |||||||||
Non-controlling interests, purchased | (51) | (695) | |||||||||
Settlement of deferred consideration | (438) | — | |||||||||
Repayment of lease liabilities | (19) | (18) | |||||||||
Issuances to limited partnership unitholders | 603 | — | |||||||||
Issuances to redeemable/exchangeable and special limited partnership unitholders | 1,077 | — | |||||||||
FV LTIP Units, repurchased | (15) | (2) | |||||||||
Distributions to non-controlling interests in operating subsidiaries | (3,149) | (2,973) | |||||||||
Preferred distributions | (33) | (33) | |||||||||
Distributions to limited partnership unitholders | (329) | (314) | |||||||||
Distributions to redeemable/exchangeable and special limited partnership unitholders | (588) | (561) | |||||||||
Distributions to holders of FV LTIP units of the Operating Partnership | (2) | (2) | |||||||||
1,011 | (4,518) | ||||||||||
Investing activities | |||||||||||
Acquisitions | |||||||||||
Investment properties | (3,946) | (1,097) | |||||||||
Property, plant and equipment | (383) | (153) | |||||||||
Equity accounted investments | (209) | (59) | |||||||||
Financial assets and other | (837) | (576) | |||||||||
Cash acquired in Acquisition of Foreign Investments | 914 | — | |||||||||
Acquisition of subsidiaries | 27 | 26 | |||||||||
Dispositions | |||||||||||
Investment properties | 1,007 | 1,463 | |||||||||
Property, plant and equipment | 209 | 58 | |||||||||
Equity accounted investments | 800 | 920 | |||||||||
Financial assets and other | 653 | 1,221 | |||||||||
Disposition of subsidiaries | (5) | 1,937 | |||||||||
Cash impact of deconsolidation | — | (23) | |||||||||
Restricted cash and deposits | (33) | 5 | |||||||||
(1,803) | 3,722 | ||||||||||
Cash and cash equivalents | |||||||||||
Net change in cash and cash equivalents during the period | (1,457) | (655) | |||||||||
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 | (7) | (84) | |||||||||
Balance, beginning of period | 4,020 | 2,576 | |||||||||
Balance, end of period | $ | 2,556 | $ | 1,995 | |||||||
Supplemental cash flow information | |||||||||||
Cash paid for: | |||||||||||
Income taxes, net of refunds received | $ | 122 | $ | 93 | |||||||
Interest (excluding dividends on capital securities) | $ | 3,459 | $ | 1,727 |
Nine months ended Sep. 30, 2023 | Year ended December 31, 2022 | |||||||||||||||||||
(US$ Millions) | Commercial properties | Commercial developments | Total | Commercial properties | Commercial developments | Total | ||||||||||||||
Balance, beginning of period | $ | 66,067 | $ | 2,518 | $ | 68,585 | $ | 62,313 | $ | 2,300 | $ | 64,613 | ||||||||
Changes resulting from: | ||||||||||||||||||||
Property acquisitions | 2,245 | 683 | 2,928 | 760 | — | 760 | ||||||||||||||
Capital expenditures | 594 | 950 | 1,544 | 870 | 428 | 1,298 | ||||||||||||||
Property dispositions(1) |
(864) | (44) | (908) | (307) | (1) | (308) | ||||||||||||||
Fair value (losses) gains, net | (772) | 26 | (746) | (1,122) | 64 | (1,058) | ||||||||||||||
Foreign currency translation | (309) | (24) | (333) | (1,528) | (149) | (1,677) | ||||||||||||||
Transfer between commercial properties and commercial developments | 801 | (801) | — | 387 | (387) | — | ||||||||||||||
Impact of deconsolidation due to loss of control (2) |
— | — | — | (575) | — | (575) | ||||||||||||||
Manager Reorganization(3) |
— | — | — | 6,321 | 758 | 7,079 | ||||||||||||||
Acquisition of Foreign Investments(3) |
11,286 | 1,408 | 12,694 | — | — | — | ||||||||||||||
Reclassifications to assets held for sale and other changes | (1,414) | (60) | (1,474) | (1,052) | (495) | (1,547) | ||||||||||||||
Balance, end of period(4) |
$ | 77,634 | $ | 4,656 | $ | 82,290 | $ | 66,067 | $ | 2,518 | $ | 68,585 |
Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||
Consolidated properties | Primary valuation method | Discount rate | Terminal capitalization rate | Investment horizon (years) | Discount rate | Terminal capitalization rate | Investment horizon (years) | ||||||||||||||||
Office | Discounted cash flow | 7.0 | % | 5.5 | % | 11 | 6.8 | % | 5.4 | % | 11 | ||||||||||||
Retail | Discounted cash flow | 7.2 | % | 5.2 | % | 10 | 7.2 | % | 5.3 | % | 10 | ||||||||||||
LP Investments(1)(2) |
Discounted cash flow | 8.1 | % | 5.8 | % | 9 | 9.1 | % | 6.3 | % | 8 | ||||||||||||
Sep. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||
Level 3 | Level 3 | |||||||||||||||||||||||||
(US$ Millions) | Level 1 | Level 2 | Commercial properties | Commercial developments | Level 1 | Level 2 | Commercial properties | Commercial developments | ||||||||||||||||||
Office | $ | — | $ | — | $ | 20,730 | $ | 773 | $ | — | $ | — | $ | 22,129 | $ | 1,355 | ||||||||||
Retail | — | — | 19,570 | 69 | — | — | 19,438 | 106 | ||||||||||||||||||
LP Investments | — | — | 37,334 | 3,814 | — | — | 24,500 | 1,057 | ||||||||||||||||||
Total | $ | — | $ | — | $ | 77,634 | $ | 4,656 | $ | — | $ | — | $ | 66,067 | $ | 2,518 |
Sep. 30, 2023 | |||||||||||
(US$ Millions) | Impact of +25bps DR | Impact of +25bps TCR | Impact of +25bps DR and +25bps TCR or +25bps ICR | ||||||||
Office | $ | 448 | $ | 658 | $ | 1,087 | |||||
Retail | 389 | 647 | 1,021 | ||||||||
LP Investments(1) |
700 | 1,384 | 2,028 | ||||||||
Total | $ | 1,537 | $ | 2,689 | $ | 4,136 |
Proportion of ownership interests | Carrying value | |||||||||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||
Joint Ventures | 15% - 75% |
15% - 68% |
$ | 19,256 | $ | 19,404 | ||||||||
Associates | 16% - 50% |
16% - 50% |
310 | 539 | ||||||||||
Total | $ | 19,566 | $ | 19,943 |
Nine months ended | Year ended | |||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Equity accounted investments, beginning of period | $ | 19,943 | $ | 20,807 | ||||
Additions | 195 | 100 | ||||||
Disposals and return of capital distributions | (592) | (967) | ||||||
Share of net earnings from equity accounted investments | 14 | 826 | ||||||
Distributions received | (136) | (263) | ||||||
Foreign currency translation | 26 | (578) | ||||||
Reclassification from (to) assets held for sale | 73 | (276) | ||||||
Impact of deconsolidation(1) |
— | (706) | ||||||
Manager Reorganization(2) |
— | 1,061 | ||||||
Acquisition of Foreign Investments(2) |
211 | — | ||||||
Other comprehensive income and other | (168) | (61) | ||||||
Equity accounted investments, end of period | $ | 19,566 | $ | 19,943 |
Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||
Equity accounted investments | Primary valuation method | Discount rate | Terminal capitalization rate | Investment horizon (yrs) | Discount rate | Terminal capitalization rate | Investment horizon (yrs) | ||||||||||||||||
Office | Discounted cash flow | 6.9 | % | 5.1 | % | 11 | 6.4 | % | 4.9 | % | 11 | ||||||||||||
Retail | Discounted cash flow | 6.6 | % | 4.9 | % | 10 | 6.6 | % | 4.9 | % | 10 | ||||||||||||
LP Investments(1) |
Discounted cash flow | 7.7 | % | 5.9 | % | 10 | 7.8 | % | 5.5 | % | 10 | ||||||||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Non-current assets | $ | 73,287 | $ | 76,352 | ||||
Current assets | 3,580 | 3,822 | ||||||
Total assets | 76,867 | 80,174 | ||||||
Non-current liabilities | 26,223 | 30,777 | ||||||
Current liabilities | 10,140 | 6,888 | ||||||
Total liabilities | 36,363 | 37,665 | ||||||
Net assets | 40,504 | 42,509 | ||||||
Partnership’s share of net assets | $ | 19,566 | $ | 19,943 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Revenue | $ | 1,479 | $ | 1,203 | $ | 4,119 | $ | 3,612 | ||||||
Expenses | 1,289 | 900 | 3,456 | 2,575 | ||||||||||
(Loss) income from equity accounted investments(1) |
(14) | 22 | (5) | 55 | ||||||||||
Income before fair value gains, net | 176 | 325 | 658 | 1,092 | ||||||||||
Fair value gains (losses), net | 140 | 675 | (897) | 1,565 | ||||||||||
Net income (loss) | 316 | 1,000 | (239) | 2,657 | ||||||||||
Partnership’s share of net earnings | $ | 161 | $ | 527 | $ | (13) | $ | 1,326 |
Hospitality assets by class | Useful life (in years) | ||||
Building and building improvements | 2 to 50+ |
||||
Land improvements | 15 |
||||
Furniture, fixtures and equipment | 1 to 20 |
Nine months ended | Year ended | |||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Cost: | ||||||||
Balance at the beginning of period | $ | 9,050 | $ | 5,723 | ||||
Additions | 389 | 203 | ||||||
Disposals | (164) | (47) | ||||||
Foreign currency translation | (29) | (363) | ||||||
Manager Reorganization(1) |
— | 3,298 | ||||||
Acquisition of Foreign Investments(1) |
945 | — | ||||||
Impact of deconsolidation due to loss of control and other(2) |
(6) | 236 | ||||||
10,185 | 9,050 | |||||||
Accumulated fair value changes: | ||||||||
Balance at the beginning of period | 1,376 | 763 | ||||||
Revaluation gains, net | — | 727 | ||||||
Impact of deconsolidation due to loss of control and other(2) |
(5) | 29 | ||||||
Disposals | (38) | (1) | ||||||
Provision for impairment | — | (93) | ||||||
Foreign currency translation | (2) | (49) | ||||||
1,331 | 1,376 | |||||||
Accumulated depreciation: | ||||||||
Balance at the beginning of period | (1,025) | (863) | ||||||
Depreciation | (308) | (279) | ||||||
Disposals | 35 | 44 | ||||||
Foreign currency translation | 3 | 76 | ||||||
Impact of deconsolidation due to loss of control and other(2) |
7 | (3) | ||||||
(1,288) | (1,025) | |||||||
Total property, plant and equipment(3) |
$ | 10,228 | $ | 9,401 |
Intangible assets by class | Useful life (in years) | ||||
Trademarks | Indefinite | ||||
Other | 4 to 88 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Cost | $ | 1,094 | $ | 1,017 | ||||
Accumulated amortization | (75) | (51) | ||||||
Total intangible assets | $ | 1,019 | $ | 966 |
Nine months ended | Year ended | |||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Balance, beginning of period | $ | 966 | $ | 964 | ||||
Acquisitions | 7 | 5 | ||||||
Amortization | (20) | (8) | ||||||
Manager Reorganization(1) |
— | 108 | ||||||
Acquisition of Foreign Investments(1) |
60 | — | ||||||
Foreign currency translation | 8 | (103) | ||||||
Other | (2) | — | ||||||
Balance, end of period | $ | 1,019 | $ | 966 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Securities - FVTPL | $ | 3,224 | $ | 2,523 | ||||
Derivative assets | 351 | 170 | ||||||
Securities - FVTOCI | 65 | 69 | ||||||
Restricted cash | 566 | 584 | ||||||
Inventory | 1,641 | 1,267 | ||||||
Accounts receivables - non-current | 50 | 464 | ||||||
Other | 165 | 140 | ||||||
Total other non-current assets | $ | 6,062 | $ | 5,217 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Derivative assets | $ | 373 | $ | 124 | ||||
Accounts receivable - net of expected credit loss of $67 million (December 31, 2022 - $63 million) |
1,253 | 787 | ||||||
Restricted cash | 336 | 342 | ||||||
Prepaid expenses | 269 | 405 | ||||||
Inventory | 274 | 176 | ||||||
Other current assets | 513 | 342 | ||||||
Total accounts receivable and other | $ | 3,018 | $ | 2,176 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Investment properties | $ | 1,593 | $ | 300 | ||||
Equity accounted investments | — | 276 | ||||||
Accounts receivable and other assets | 45 | — | ||||||
Assets held for sale | 1,638 | 576 | ||||||
Liabilities associated with assets held for sale | $ | 933 | $ | — |
(US$ Millions) | Nine months ended Sep. 30, 2023 | Twelve months ended Dec. 31, 2022 |
||||||
Balance, beginning of period | $ | 576 | $ | 10,510 | ||||
Reclassification to assets held for sale, net | 1,401 | 1,208 | ||||||
Disposals | (351) | (11,110) | ||||||
Fair value adjustments | (52) | 261 | ||||||
Foreign currency translation | 1 | (290) | ||||||
Acquisition of Foreign Investments(1) |
47 | — | ||||||
Other | 16 | (3) | ||||||
Balance, end of period | $ | 1,638 | $ | 576 |
Sep. 30, 2023 | Dec. 31, 2022 | |||||||||||||
(US$ Millions) | Weighted-average rate | Debt balance | Weighted-average rate | Debt balance | ||||||||||
Unsecured facilities: | ||||||||||||||
Brookfield Property Partners’ credit facilities | 7.33 | % | $ | 3,032 | 6.19 | % | $ | 3,090 | ||||||
Brookfield Property Partners’ corporate bonds | 4.67 | % | 1,841 | 4.12 | % | 1,847 | ||||||||
Brookfield Property Retail Holding LLC term debt |
7.92 | % | 1,492 | 6.90 | % | 1,514 | ||||||||
Brookfield Property Retail Holding LLC senior secured notes |
5.20 | % | 1,695 | 5.20 | % | 1,695 | ||||||||
Brookfield Property Retail Holding LLC corporate facility |
8.17 | % | 413 | 7.17 | % | 320 | ||||||||
Brookfield Property Retail Holding LLC junior subordinated notes |
7.04 | % | 199 | 5.86 | % | 192 | ||||||||
Subsidiary borrowings | 7.00 | % | 44 | 7.10 | % | 458 | ||||||||
Secured debt obligations: | ||||||||||||||
Funds subscription credit facilities(1) |
7.29 | % | 2,265 | 6.19 | % | 4,177 | ||||||||
Fixed rate | 4.29 | % | 28,177 | 4.47 | % | 16,155 | ||||||||
Variable rate | 8.09 | % | 28,373 | 6.99 | % | 29,416 | ||||||||
Deferred financing costs | (327) | (302) | ||||||||||||
Total debt obligations | $ | 67,204 | $ | 58,562 | ||||||||||
Current | 27,087 | 19,704 | ||||||||||||
Non-current | 39,347 | 38,858 | ||||||||||||
Debt associated with assets held for sale | 770 | — | ||||||||||||
Total debt obligations | $ | 67,204 | $ | 58,562 |
Sep. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||
(Millions) | U.S. Dollars | Local currency |
U.S. Dollars | Local currency |
||||||||||||||||
U.S. Dollars | $ | 42,566 | $ | 42,566 | $ | 44,049 | $ | 44,049 | ||||||||||||
Euros | 7,350 | € | 6,952 | 96 | € | 90 | ||||||||||||||
British Pounds | 5,905 | £ | 4,841 | 5,079 | £ | 4,203 | ||||||||||||||
Canadian Dollars | 3,831 | C$ | 5,201 | 4,027 | C$ | 5,455 | ||||||||||||||
Brazilian Reais | 2,152 | R$ | 10,779 | 554 | R$ | 2,888 | ||||||||||||||
Indian Rupee | 2,218 | Rs | 184,794 | 1,777 | Rs | 146,860 | ||||||||||||||
South Korean Won | 1,692 | ₩ | 2,280,000 | 1,808 | ₩ | 2,280,000 | ||||||||||||||
Australian Dollars | 1,207 | A$ | 1,876 | 1,300 | A$ | 1,908 | ||||||||||||||
Chinese Yuan | 478 | C¥ | 3,485 | 174 | C¥ | 1,204 | ||||||||||||||
Hong Kong Dollar | 93 | HK$ | 725 | — | HK$ | — | ||||||||||||||
Swedish Krona | 36 | SEK | 393 | — | SEK | — | ||||||||||||||
Polish Zloty | 3 | zł | 14 | — | zł | — | ||||||||||||||
Deferred financing costs | (327) | (302) | ||||||||||||||||||
Total debt obligations | $ | 67,204 | $ | 58,562 |
Non-cash changes in debt obligations | |||||||||||||||||||||||||||||
(US$ Millions) | Dec. 31, 2022 | Debt obligation issuance, net of repayments | Debt from asset acquisitions | Assumed by purchaser | Amortization of deferred financing costs and (premium) discount | Foreign currency translation | Acquisition of Foreign Investments(1) |
Other | Sep. 30, 2023 | ||||||||||||||||||||
Debt obligations | $ | 58,562 | (2,222) | 394 | (88) | 150 | (190) | 10,674 | (76) | $ | 67,204 |
(US$ Millions) | Shares outstanding | Cumulative dividend rate | Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||
Operating Partnership Class A Preferred Equity Units: | ||||||||||||||
Series 2 | 24,000,000 | 6.50 | % | $ | 584 | $ | 575 | |||||||
Series 3 | 24,000,000 | 6.75 | % | 562 | 556 | |||||||||
New LP Preferred Units(1) |
19,273,654 | 6.25 | % | 474 | 474 | |||||||||
Brookfield Property Split Corp. (“BOP Split”) Senior Preferred Shares: | ||||||||||||||
Series 1 | 733,072 | 5.25 | % | 18 | 21 | |||||||||
Series 2 | 429,316 | 5.75 | % | 8 | 10 | |||||||||
Series 3 | 447,653 | 5.00 | % | 8 | 12 | |||||||||
Series 4 | 434,821 | 5.20 | % | 8 | 10 | |||||||||
Rouse Properties L.P. (“Rouse”) Series A Preferred Shares | 5,600,000 | 5.00 | % | 144 | 142 | |||||||||
Subsidiary Preferred Shares and Capital - alstria office Prime Portfolio GmbH & Co. KG (“Alstria Office Prime”) | 19,472,214 | n/a(2) |
129 | — | ||||||||||
Brookfield India Real Estate Trust (“India REIT”) | 246,305,005 | n/a(3) |
733 | 456 | ||||||||||
Capital Securities – Fund Subsidiaries | 223 | 577 | ||||||||||||
Total capital securities | $ | 2,891 | $ | 2,833 | ||||||||||
Current | 238 | 600 | ||||||||||||
Non-current | 2,653 | 2,233 | ||||||||||||
Total capital securities | $ | 2,891 | $ | 2,833 |
Non-cash changes in capital securities | |||||||||||||||||||||||
(US$ Millions) | Dec. 31, 2022 | Capital securities issued | Capital securities redeemed | Fair value changes | Foreign currency translation and other | Acquisition of Foreign Investments | Sep. 30, 2023 | ||||||||||||||||
Capital securities | $ | 2,833 | $ | 275 | (11) | (349) | 13 | 130 | $ | 2,891 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Current income tax | $ | 12 | $ | 58 | $ | 72 | $ | 134 | ||||||
Deferred income tax | 118 | 115 | (82) | 269 | ||||||||||
Income tax expense (benefit) | $ | 130 | $ | 173 | $ | (10) | $ | 403 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Accounts payable and accrued liabilities | $ | 718 | $ | 824 | ||||
Lease liabilities(1) |
1,128 | 1,049 | ||||||
Derivative liabilities | 335 | 371 | ||||||
Deferred revenue | 18 | 21 | ||||||
Provisions | 19 | 7 | ||||||
Loans and notes payables | 2 | 171 | ||||||
Total other non-current liabilities | $ | 2,220 | $ | 2,443 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Accounts payable and accrued liabilities | $ | 3,297 | $ | 2,852 | ||||
Loans and notes payable | 779 | 226 | ||||||
Deferred revenue | 513 | 436 | ||||||
Derivative liabilities | 580 | 167 | ||||||
Lease liabilities(1) |
51 | 163 | ||||||
Other liabilities | 22 | 33 | ||||||
Total accounts payable and other liabilities | $ | 5,242 | $ | 3,877 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions, except per unit information) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Limited Partners | $ | 112 | $ | 105 | $ | 329 | $ | 314 | ||||||
Holders of: | ||||||||||||||
REUs | 198 | 185 | 582 | 556 | ||||||||||
Special LP Units | 3 | 2 | 6 | 5 | ||||||||||
FV LTIP Units | 1 | 1 | 2 | 2 | ||||||||||
Total | $ | 314 | $ | 293 | $ | 919 | $ | 877 | ||||||
Per unit(1) |
$ | 0.35 | $ | 0.35 | $ | 1.05 | $ | 1.05 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
REUs and Special LP Units(1) |
$ | 14,671 | $ | 14,688 | ||||
FV LTIP Units(1) |
19 | 45 | ||||||
Interests of others in operating subsidiaries and properties: | ||||||||
Preferred shares held by Brookfield Corporation(2) |
2,619 | 2,490 | ||||||
Preferred equity of subsidiaries | 4,360 | 2,772 | ||||||
Non-controlling interests in subsidiaries and properties | 17,863 | 12,822 | ||||||
Total interests of others in operating subsidiaries and properties | 24,842 | 18,084 | ||||||
Total non-controlling interests | $ | 39,532 | $ | 32,817 |
Proportion of economic interests held by non-controlling interests | |||||||||||||||||
(US$ Millions) | Jurisdiction of formation | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||||
BPO(1) |
Canada | — | % | — | % | $ | 3,127 | $ | 2,835 | ||||||||
Corporate Holding Entities(2) |
Bermuda/Canada | — | % | — | % | 6,558 | 5,033 | ||||||||||
U.S. Retail(3) |
United States | — | % | — | % | 1,292 | 1,280 | ||||||||||
U.S. Manufactured Housing(4) |
United States | 76 | % | 76 | % | 1,283 | 1,191 | ||||||||||
U.K. Student Housing(4) |
Bermuda | 75 | % | 75 | % | 1,598 | 1,594 | ||||||||||
Korea Mixed-use(4) |
South Korea | 78 | % | 78 | % | 989 | 936 | ||||||||||
U.K. Short Stay(4) |
United Kingdom | 73 | % | 73 | % | 443 | 756 | ||||||||||
U.S. Hospitality(4) |
United States | 77 | % | 77 | % | 641 | 724 | ||||||||||
U.S. Logistics | United States | 77 | % | 77 | % | 1,150 | 434 | ||||||||||
Other | Various | 33% - 99% |
33% - 99% |
7,761 | 3,301 | ||||||||||||
Total | $ | 24,842 | $ | 18,084 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Base rent | $ | 1,020 | $ | 795 | $ | 2,974 | $ | 2,375 | ||||||
Straight-line rent | (1) | (2) | 10 | 5 | ||||||||||
Lease termination | 3 | 12 | 24 | 24 | ||||||||||
Other lease income(1) |
158 | 163 | 528 | 485 | ||||||||||
Other revenue from tenants(2) |
308 | 214 | 854 | 733 | ||||||||||
Total commercial property revenue | $ | 1,488 | $ | 1,182 | $ | 4,390 | $ | 3,622 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Room, food and beverage | $ | 605 | $ | 351 | $ | 1,690 | $ | 964 | ||||||
Gaming and other leisure activities | 61 | 48 | 163 | 130 | ||||||||||
Other hospitality revenue | 33 | 8 | 98 | 26 | ||||||||||
Total hospitality revenue | $ | 699 | $ | 407 | $ | 1,951 | $ | 1,120 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Investment income | $ | 91 | $ | 44 | $ | 182 | $ | 472 | ||||||
Fee revenue | 113 | 74 | 324 | 210 | ||||||||||
Dividend income | 3 | 47 | 31 | 80 | ||||||||||
Interest income and other | 39 | 2 | 122 | 49 | ||||||||||
Total investment and other revenue | $ | 246 | $ | 167 | $ | 659 | $ | 811 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Property maintenance | $ | 236 | $ | 178 | $ | 645 | $ | 530 | ||||||
Real estate taxes | 153 | 140 | 493 | 427 | ||||||||||
Employee compensation and benefits | 48 | 37 | 141 | 110 | ||||||||||
Depreciation and amortization | 13 | 7 | 38 | 22 | ||||||||||
Lease expense(1) |
5 | 3 | 14 | 9 | ||||||||||
Other | 142 | 106 | 406 | 295 | ||||||||||
Total direct commercial property expense | $ | 597 | $ | 471 | $ | 1,737 | $ | 1,393 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Employee compensation and benefits | $ | 147 | $ | 59 | $ | 432 | $ | 170 | ||||||
Depreciation and amortization | 100 | 61 | 291 | 196 | ||||||||||
Cost of food, beverage, and retail goods sold | 89 | 64 | 254 | 179 | ||||||||||
Maintenance and utilities | 40 | 24 | 121 | 77 | ||||||||||
Marketing and advertising | 22 | 5 | 68 | 19 | ||||||||||
Other | 134 | 69 | 399 | 206 | ||||||||||
Total direct hospitality expense | $ | 532 | $ | 282 | $ | 1,565 | $ | 847 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Employee compensation and benefits | $ | 163 | $ | 90 | $ | 481 | $ | 271 | ||||||
Management fees | 72 | 70 | 225 | 212 | ||||||||||
Professional fees | 37 | 21 | 115 | 67 | ||||||||||
Facilities and technology | 16 | 13 | 42 | 33 | ||||||||||
Transaction costs | 16 | 9 | 44 | 24 | ||||||||||
Other | 35 | 24 | 116 | 86 | ||||||||||
Total general and administrative expense | $ | 339 | $ | 227 | $ | 1,023 | $ | 693 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial properties | $ | (642) | $ | (619) | $ | (772) | $ | 496 | ||||||
Commercial developments | 86 | (79) | 26 | 25 | ||||||||||
Incentive fees(1) |
(11) | (2) | (22) | (38) | ||||||||||
Financial instruments and other | 562 | 313 | 652 | 423 | ||||||||||
Total fair values (losses) gains, net | $ | (5) | $ | (387) | $ | (116) | $ | 906 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Items that may be reclassified to net income: | ||||||||||||||
Foreign currency translation | ||||||||||||||
Net unrealized foreign currency translation (losses) in respect of foreign operations | $ | (484) | $ | (953) | $ | (98) | $ | (2,057) | ||||||
Reclassification of realized foreign currency translation gains to net income on dispositions of foreign operations |
— | — | — | 17 | ||||||||||
Gains on hedges of net investments in foreign operations | 218 | 630 | 18 | 1,202 | ||||||||||
(266) | (323) | (80) | (838) | |||||||||||
Cash flow hedges | ||||||||||||||
(Losses) gains on derivatives designated as cash flow hedges, net of income taxes for the three and nine months ended Sep. 30, 2023 of $(3) million and $(32) million (2022 – $1 million and $(6) million) |
(26) | (19) | 205 | 47 | ||||||||||
(26) | (19) | 205 | 47 | |||||||||||
Equity accounted investments | ||||||||||||||
Share of unrealized foreign currency translation losses in respect of foreign operations | (1) | (1) | — | (3) | ||||||||||
(Losses) gains on derivatives designated as cash flow hedges | (30) | 56 | (27) | 131 | ||||||||||
(31) | 55 | (27) | 128 | |||||||||||
Items that will not be reclassified to net income: | ||||||||||||||
Unrealized losses on securities - FVTOCI, net of income taxes for the three and nine months ended Sep. 30, 2023 of nil (2022 – nil and $(1) million) |
(1) | (1) | (16) | (21) | ||||||||||
Net remeasurement (losses) gains on defined benefit obligations | — | — | (2) | 1 | ||||||||||
Revaluation surplus (deficit), net of income taxes for the three and nine months ended Sep. 30, 2023 of nil and $(1) million (2022 – nil and nil) |
— | (8) | 2 | (8) | ||||||||||
(1) | (9) | (16) | (28) | |||||||||||
Total other comprehensive (loss) income | $ | (324) | $ | (296) | $ | 82 | $ | (691) |
(US$ Millions) | Hedging item | Notional | Rates | Maturity dates | Fair value | ||||||||||||
Sep. 30, 2023 | Interest rate caps of US$ LIBOR debt | $ | 651 | 2.4% - 5.4% |
Apr 2024 - May. 2024 | $ | 4 | ||||||||||
Interest rate caps of US$ SOFR debt | 7,257 | 1.0% - 6.0% |
Oct. 2023 - Mar. 2025 | 107 | |||||||||||||
Interest rate swaps of US$ SOFR debt | 8,860 | 3.3% - 4.5% |
Aug. 2024 - Mar. 2027 | 191 | |||||||||||||
Interest rate caps of £ SONIA debt | 1,319 | 1.0% - 7.0% |
Oct. 2023 - Mar. 2025 | 38 | |||||||||||||
Interest rate swaps of £ SONIA debt | 1,072 | 2.0% - 5.2% |
Jan. 2024 - Jan. 2025 | 21 | |||||||||||||
Interest rate caps of € EURIBOR debt | 554 | 3.5% - 4.0% | Jul. 2025 - Apr. 2030 | 10 | |||||||||||||
Interest rate caps of €STR debt | 375 | 1.9% |
Oct. 2023 - Oct. 2024 | 9 | |||||||||||||
Interest rate swaps of € EURIBOR debt | 867 | 1.8% - 4.0% |
Sep. 2027 - Apr. 2030 | 37 | |||||||||||||
Interest rate caps of C$ LIBOR debt | 177 | 4.0% |
Oct. 2024 | 3 | |||||||||||||
Interest rate swaps of AUD BBSW/BBSY debt | 257 | 4.1% |
Sep. 2024 | 1 | |||||||||||||
Other interest rate derivatives | 20 | 0.4% - 6.6% |
Dec. 2027 | — | |||||||||||||
Dec. 31, 2022 | Interest rate caps of US$ LIBOR debt | $ | 2,042 | 2.5% - 5.0% |
May 2023 - Apr. 2027 | $ | 20 | ||||||||||
Interest rate caps of US$ SOFR debt | 3,989 | 1.0% - 6.0% |
Aug. 2023 - Nov. 2024 | 74 | |||||||||||||
Interest rate swaps of US$ SOFR debt | 2,500 | 3.7% |
Dec. 2027 | 3 | |||||||||||||
Interest rate caps of £ SONIA debt | 1,024 | 1.0% - 2.5% |
Jul. 2024 - Mar. 2025 | 41 | |||||||||||||
Interest rate swaps of £ SONIA debt | 804 | 2.7% |
Jan. 2023 - Jul. 2024 | 20 | |||||||||||||
Interest rate caps of € EURIBOR debt | 96 | 1.3% |
Apr. 2023 | — | |||||||||||||
Interest rate caps of C$ LIBOR debt | 177 | 4.0% |
Oct. 2024 | 2 | |||||||||||||
Interest rate swaps of AUD BBSW/BBSY debt | 132 | 5.3% - 5.8% |
Apr. 2024 | — |
(US$ Millions) | Hedging item | Notional | Rates | Maturity dates | Fair value | |||||||||||||||
Sep. 30, 2023 | Net investment hedges | € | $ | 2,193 | €0.89/$ - €0.98/$ |
Nov. 2023 - Dec. 2025 | $ | (186) | ||||||||||||
Net investment hedges | £ | 1,588 | £0.79/$ - £0.93/$ |
Oct. 2023 - Jul. 2024 | (244) | |||||||||||||||
Net investment hedges | A$ | 74 | A$0.63/$ - A$0.72/$ |
Dec. 2023 | (6) | |||||||||||||||
Net investment hedges | C¥ | — | C¥6.59/$ - C¥6.77/$ |
Mar. 2025 | (2) | |||||||||||||||
Net investment hedges | R$ | 7,364 | R$5.00/$ - R$7.37/$ |
Dec. 2023 - Dec. 2024 | (109) | |||||||||||||||
Net investment hedges | ₩ | 820,473 | ₩1,214.55/$ - ₩1,410.00/$ |
Jun. 2024 - Jan. 2025 | 3 | |||||||||||||||
Net investment hedges | Rs | 69,827 | Rs81.82/$ - Rs89.84/$ |
Nov. 2023 - Sep. 2024 | (15) | |||||||||||||||
Net investment hedges | HKD | 709 | HKD7.75/$ - HKD7.84/$ |
Mar. 2024 - Apr. 2026 | — | |||||||||||||||
Net investment hedges | £ | 375 | £0.86/€ |
Jul. 2024 | (5) | |||||||||||||||
Net investment hedges | C$ | 67 | C$1.28/$ - C$1.34/$ |
Oct. 2024 - Jan. 2025 | 1 | |||||||||||||||
Net investment hedges | CNH | 3,836 | CNH6.54/$ - CNH7.02/$ |
Jun. 2024 - Jan. 2026 | 7 | |||||||||||||||
Net investment hedges | SEK | 1,836 | SEK10.15/$ - SEK11.01/$ |
Dec. 2023 - Mar. 2026 | 4 | |||||||||||||||
Cross currency swaps of C$ LIBOR debt | C$ | 2,500 | C$1.25/$ - C$1.34/$ |
Mar. 2024 - Feb. 2028 | (69) | |||||||||||||||
Dec. 31, 2022 | Net investment hedges | € | $ | 105 | €0.91/$ - €1.02/$ |
Feb. 2023 - Dec. 2025 | $ | (7) | ||||||||||||
Net investment hedges | £ | 1,319 | £0.76/$ - £0.93/$ |
Jan. 2023 - Jul. 2023 | $ | (243) | ||||||||||||||
Net investment hedges | A$ | — | A$1.49/$ - A$1.55/$ |
May 2023 | (1) | |||||||||||||||
Net investment hedges | C¥ | 2,703 | C¥6.59/$ - C¥6.99/$ |
Jun. 2023 - Mar. 2025 | (9) | |||||||||||||||
Net investment hedges | R$ | 908 | R$6.24/$ - R$7.00/$ |
May 2023 - Dec. 2024 | (22) | |||||||||||||||
Net investment hedges | ₩ | 820,473 | ₩1,283.60/$ - ₩1,410.00/$ |
Jan. 2023 - Nov. 2024 | (42) | |||||||||||||||
Net investment hedges | Rs | 84,251 | Rs79.40/$ - Rs89.84/$ |
Mar. 2023 - Jul. 2024 | (5) | |||||||||||||||
Net investment hedges | £ | 374 | £0.86/€ |
Jul. 2023 | (16) | |||||||||||||||
Cross currency swaps of C$ LIBOR debt | C$ | 2,500 | C$1.25/$ - C$1.38/$ |
Jul. 2023 - Jan. 2027 | (45) | |||||||||||||||
(US$ Millions) |
Derivative type |
Notional |
Rates
|
Maturity
dates
|
Fair value | ||||||||||||
Sep. 30, 2023 | Interest rate caps | $ | 19,800 | 0.3% - 9.9% |
Oct. 2023 - Apr. 2026 | $ | (37) | ||||||||||
Interest rate swaps on forecasted fixed rate debt | 75 | 5.3% |
Jun. 2028 - Jun. 2030 | (21) | |||||||||||||
Interest rate swaps of US$ debt | 710 | 0.4% - 7.1% |
Feb. 2024 - Dec. 2028 | 26 | |||||||||||||
Dec. 31, 2022 | Interest rate caps | $ | 7,622 | 2.0% - 6.0% |
Jan. 2023 - Nov. 2032 | $ | 30 | ||||||||||
Interest rate swaps on forecasted fixed rate debt | 335 | 3.6% - 5.3% |
Jun. 2023 | (21) | |||||||||||||
Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||
(US$ Millions) | Classification and measurement basis | Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
Financial assets | |||||||||||||||||
Loans and notes receivable | Amortized cost | $ | 2,213 | $ | 2,213 | $ | 686 | $ | 686 | ||||||||
Other non-current assets | |||||||||||||||||
Securities - FVTPL | FVTPL | 3,224 | 3,224 | 2,523 | 2,523 | ||||||||||||
Derivative assets | FVTPL | 351 | 351 | 170 | 170 | ||||||||||||
Accounts receivable | Amortized cost | 50 | 50 | 464 | 464 | ||||||||||||
Securities - FVTOCI | FVTOCI | 65 | 65 | 69 | 69 | ||||||||||||
Restricted cash | Amortized cost | 566 | 566 | 584 | 584 | ||||||||||||
Current assets | |||||||||||||||||
Securities - FVTOCI | FVTOCI | 21 | 21 | 36 | 36 | ||||||||||||
Derivative assets | FVTPL | 373 | 373 | 124 | 124 | ||||||||||||
Accounts receivable(1) |
Amortized cost | 1,253 | 1,253 | 787 | 787 | ||||||||||||
Restricted cash | Amortized cost | 336 | 336 | 342 | 342 | ||||||||||||
Cash and cash equivalents | Amortized cost | 2,556 | 2,556 | 4,020 | 4,020 | ||||||||||||
Total financial assets | $ | 11,008 | $ | 11,008 | $ | 9,805 | $ | 9,805 | |||||||||
Financial liabilities | |||||||||||||||||
Debt obligations(2) |
Amortized cost | 67,204 | 66,701 | 58,562 | 57,790 | ||||||||||||
Capital securities | Amortized cost | 2,668 | 2,668 | 2,256 | 2,256 | ||||||||||||
Capital securities - fund subsidiaries | FVTPL | 223 | 223 | 577 | 577 | ||||||||||||
Other non-current liabilities | |||||||||||||||||
Loan payable | FVTPL | 2 | 2 | 171 | 171 | ||||||||||||
Accounts payable | Amortized cost | 718 | 718 | 824 | 824 | ||||||||||||
Derivative liabilities | FVTPL | 335 | 335 | 371 | 371 | ||||||||||||
Accounts payable and other liabilities | |||||||||||||||||
Accounts payable and other(3) |
Amortized cost | 3,297 | 3,297 | 2,852 | 2,852 | ||||||||||||
Loans and notes payable | Amortized cost | 779 | 779 | 226 | 226 | ||||||||||||
Derivative liabilities | FVTPL | 580 | 580 | 167 | 167 | ||||||||||||
Total financial liabilities | $ | 75,806 | $ | 75,303 | $ | 66,006 | $ | 65,234 |
Sep. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||
(US$ Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||
Securities - FVTPL | — | 903 | 2,321 | 3,224 | 10 | 305 | 2,208 | 2,523 | ||||||||||||||||||
Securities - FVTOCI | 21 | — | 65 | 86 | 36 | — | 69 | 105 | ||||||||||||||||||
Derivative assets | — | 724 | — | 724 | — | 294 | — | 294 | ||||||||||||||||||
Total financial assets | $ | 21 | $ | 1,627 | $ | 2,386 | $ | 4,034 | $ | 46 | $ | 599 | $ | 2,277 | $ | 2,922 | ||||||||||
Financial liabilities | ||||||||||||||||||||||||||
Capital securities - fund subsidiaries | — | — | 223 | 223 | — | — | 577 | 577 | ||||||||||||||||||
Derivative liabilities | — | 915 | — | 915 | — | 538 | — | 538 | ||||||||||||||||||
Total financial liabilities | $ | — | $ | 915 | $ | 223 | $ | 1,138 | $ | — | $ | 538 | $ | 577 | $ | 1,115 |
Sep. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||
(US$ Millions)
|
Financial
assets
|
Financial
liabilities
|
Financial
assets
|
Financial
liabilities
|
||||||||||||||||||||||
Balance, beginning of period | $ | 2,277 | $ | 577 | $ | 2,060 | $ | 859 | ||||||||||||||||||
Acquisitions | 218 | — | 353 | — | ||||||||||||||||||||||
Dispositions | (33) | — | (222) | — | ||||||||||||||||||||||
Fair value gains (losses), net and OCI | (98) | (372) | 86 | (292) | ||||||||||||||||||||||
Acquisition of Foreign Investments | 22 | — | — | — | ||||||||||||||||||||||
Other | — | 18 | — | 10 | ||||||||||||||||||||||
Balance, end of period | $ | 2,386 | $ | 223 | $ | 2,277 | $ | 577 |
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | ||||||
Balances outstanding with related parties: | ||||||||
Net (payables)/receivables within equity accounted investments | $ | (38) | $ | (110) | ||||
Loans and notes receivable | 169 | 273 | ||||||
Deposit payable to Brookfield Corporation(1) |
(200) | — | ||||||
Property-specific debt obligations | (2,345) | (2,429) | ||||||
Loans and notes payable and other liabilities | (1,188) | (721) | ||||||
Preferred shares held by Brookfield Corporation | (2,619) | (2,490) | ||||||
Brookfield Corporation interest in Canholdco | (1,567) | (1,759) | ||||||
Preferred shares held by Brookfield Reinsurance Ltd. (”BNRE”) |
(1,600) | — | ||||||
Receivable from Brookfield Corporation | 1,305 | — |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Transactions with related parties: | ||||||||||||||
Commercial property revenue(1) |
$ | 14 | $ | 15 | $ | 43 | $ | 39 | ||||||
Management fee income | 47 | 30 | 118 | 63 | ||||||||||
Interest expense on debt obligations | 24 | 3 | 65 | 11 | ||||||||||
General and administrative expense(2) |
83 | 78 | 264 | 240 | ||||||||||
Construction costs(3) |
12 | 13 | 47 | 49 | ||||||||||
Return of capital distributions on Brookfield Corporation’s interest in Canholdco | — | — | — | 118 | ||||||||||
Distributions on Brookfield Corporation’s interest in Canholdco | 7 | 28 | 43 | 85 | ||||||||||
Capital calls, net funded by BNRE(4) |
5 | — | 58 | — | ||||||||||
Incentive fees | 11 | 2 | 22 | 38 |
(US$ Millions) | Total revenue | FFO | ||||||||||||
Three months ended Sep. 30, | 2023 | 2022 | 2023 | 2022 | ||||||||||
Office | $ | 487 | $ | 545 | $ | (8) | $ | 43 | ||||||
Retail | 376 | 381 | 62 | 107 | ||||||||||
LP Investments | 1,501 | 829 | (44) | 74 | ||||||||||
Corporate | 69 | 1 | (175) | (148) | ||||||||||
Total | $ | 2,433 | $ | 1,756 | $ | (165) | $ | 76 |
(US$ Millions) | Total revenue | FFO | ||||||||||||
Nine months ended Sep. 30, | 2023 | 2022 | 2023 | 2022 | ||||||||||
Office | $ | 1,487 | $ | 1,653 | $ | 16 | $ | 277 | ||||||
Retail | 1,137 | 1,140 | 240 | 463 | ||||||||||
LP Investments | 4,196 | 2,757 | (74) | 219 | ||||||||||
Corporate | 180 | 3 | (554) | (479) | ||||||||||
Total | $ | 7,000 | $ | 5,553 | $ | (372) | $ | 480 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Three months ended Sep. 30, 2023 | |||||||||||||||||
Office | $ | 332 | $ | 119 | $ | 6 | $ | 30 | $ | 487 | |||||||
Retail | 276 | 67 | — | 33 | 376 | ||||||||||||
LP Investments | 572 | 122 | 693 | 114 | 1,501 | ||||||||||||
Corporate | — | — | — | 69 | 69 | ||||||||||||
Total | $ | 1,180 | $ | 308 | $ | 699 | $ | 246 | $ | 2,433 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Three months ended Sep. 30, 2022 | |||||||||||||||||
Office | $ | 378 | $ | 84 | $ | 5 | $ | 78 | $ | 545 | |||||||
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 | ||||||||||||
Nine months ended Sep. 30, 2023 | |||||||||||||||||
Office | $ | 997 | $ | 347 | $ | 20 | $ | 123 | $ | 1,487 | |||||||
Retail | 836 | 201 | — | 100 | 1,137 | ||||||||||||
LP Investments | 1,703 | 306 | 1,931 | 256 | 4,196 | ||||||||||||
Corporate | — | — | — | 180 | 180 | ||||||||||||
Total | $ | 3,536 | $ | 854 | $ | 1,951 | $ | 659 | $ | 7,000 |
(US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | ||||||||||||
Nine months ended Sep. 30, 2022 | |||||||||||||||||
Office | $ | 1,047 | $ | 350 | $ | 15 | $ | 241 | $ | 1,653 | |||||||
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) | Share of net earnings from equity accounted investments | Interest expense | ||||||||||||
Three months ended Sep. 30, | 2023 | 2022 | 2023 | 2022 | ||||||||||
Office | $ | 139 | $ | 361 | $ | (223) | $ | (197) | ||||||
Retail | 47 | 122 | (207) | (175) | ||||||||||
LP Investments | (25) | 44 | (696) | (262) | ||||||||||
Corporate | — | — | (96) | (73) | ||||||||||
Total | $ | 161 | $ | 527 | $ | (1,222) | $ | (707) |
(US$ Millions) | Share of net earnings from equity accounted investments | Interest expense | ||||||||||||
Nine months ended Sep. 30, | 2023 | 2022 | 2023 | 2022 | ||||||||||
Office | $ | (100) | $ | 831 | $ | (654) | $ | (515) | ||||||
Retail | 172 | 437 | (601) | (470) | ||||||||||
LP Investments | (85) | 58 | (2,016) | (733) | ||||||||||
Corporate | — | — | (292) | (212) | ||||||||||
Total | $ | (13) | $ | 1,326 | $ | (3,563) | $ | (1,930) |
Total assets
|
Total liabilities
|
Equity accounted investments | ||||||||||||||||||
(US$ Millions) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | ||||||||||||||
Office | $ | 32,368 | $ | 34,039 | $ | 16,675 | $ | 17,581 | $ | 8,299 | $ | 8,547 | ||||||||
Retail | 30,979 | 30,363 | 13,781 | 13,850 | 9,605 | 9,674 | ||||||||||||||
LP Investments | 64,514 | 47,458 | 43,487 | 32,146 | 1,662 | 1,722 | ||||||||||||||
Corporate | 2,119 | 656 | 7,594 | 7,202 | — | — | ||||||||||||||
Total | $ | 129,980 | $ | 112,516 | $ | 81,537 | $ | 70,779 | $ | 19,566 | $ | 19,943 |
Three months ended Sep. 30, | Nine months ended Sep. 30, | |||||||||||||
(US$ Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
FFO(1) |
$ | (165) | $ | 76 | $ | (372) | $ | 480 | ||||||
Depreciation and amortization of real estate assets | (81) | (45) | (240) | (143) | ||||||||||
Fair value (loss) gains, net | (5) | (387) | (116) | 906 | ||||||||||
Share of equity accounted (loss) income - non-FFO | 52 | 401 | (371) | 770 | ||||||||||
Income tax expense (benefit) | (130) | (173) | 10 | (403) | ||||||||||
Non-controlling interests of others in operating subsidiaries and properties – non-FFO | 152 | 90 | 149 | (546) | ||||||||||
Net (loss) income attributable to unitholders(2) |
(177) | (38) | (940) | 1,064 | ||||||||||
Non-controlling interests of others in operating subsidiaries and properties | (190) | 42 | (279) | 1,152 | ||||||||||
Net (loss) income | $ | (367) | $ | 4 | $ | (1,219) | $ | 2,216 |
/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 |