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EQUITY ACCOUNTED INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Interests In Other Entities [Abstract]

Details of the partnership’s investments in joint ventures and associates, which have been accounted for in accordance with the equity method of accounting, are as follows:


			Proportion of ownership interests/voting rights held by the partnership
(US$ Millions)	Principal activity	Principal place of business	Dec. 31, 2023		Dec. 31, 2022
Joint ventures
Stork Holdco LP	Property holding company	United Kingdom	50	%	50	%
Midtown New York Mixed-use Complex	Property holding company	United States	56	%	56	%
U.S. Retail JV Pool A	Property holding company	United States	50	%	50	%
Honolulu Shopping Center	Property holding company	United States	50	%	50	%
U.S. Retail JV Pool B	Property holding company	United States	51	%	51	%
U.S. Retail JV Pool C	Property holding company	United States	50	%	50	%
Bryant Park Office Tower	Property holding company	United States	50	%	50	%
Las Vegas Mall A	Property holding company	United States	50	%	50	%
U.S. Retail JV Pool D	Property holding company	United States	48	%	48	%
Las Vegas Mall B	Property holding company	United States	50	%	50	%
Other(1)	Various	Various	15% - 75%		15% - 68%
















Associates
Other	Various	Various	16% - 50%		16% - 50%

Total

(1)Other joint ventures consists of approximately 50 joint ventures, each of which has a carrying value below $500 million.

Disclosure of Associates

Details of the partnership’s investments in joint ventures and associates, which have been accounted for in accordance with the equity method of accounting, are as follows:


			Proportion of ownership interests/voting rights held by the partnership
(US$ Millions)	Principal activity	Principal place of business	Dec. 31, 2023		Dec. 31, 2022
Joint ventures
Stork Holdco LP	Property holding company	United Kingdom	50	%	50	%
Midtown New York Mixed-use Complex	Property holding company	United States	56	%	56	%
U.S. Retail JV Pool A	Property holding company	United States	50	%	50	%
Honolulu Shopping Center	Property holding company	United States	50	%	50	%
U.S. Retail JV Pool B	Property holding company	United States	51	%	51	%
U.S. Retail JV Pool C	Property holding company	United States	50	%	50	%
Bryant Park Office Tower	Property holding company	United States	50	%	50	%
Las Vegas Mall A	Property holding company	United States	50	%	50	%
U.S. Retail JV Pool D	Property holding company	United States	48	%	48	%
Las Vegas Mall B	Property holding company	United States	50	%	50	%
Other(1)	Various	Various	15% - 75%		15% - 68%
















Associates
Other	Various	Various	16% - 50%		16% - 50%

Total

(1)Other joint ventures consists of approximately 50 joint ventures, each of which has a carrying value below $500 million.

Schedule of Change in Equity Investments

The following table presents the change in the balance of the partnership’s equity accounted investments as of December 31, 2023 and 2022:


(US$ Millions) Years ended Dec. 31,	2023		2022
Equity accounted investments, beginning of year	$	19,943	$	20,807


Additions	476		100
Disposals and return of capital distributions	(863)		(967)
Share of net (losses) earnings from equity accounted investments	(94)		826
Distributions received	(212)		(263)
Foreign currency translation	220		(578)
Reclassification (to) assets held for sale	(54)		(276)
Impact of change in accounting basis(1)	—		(706)
Manager Reorganization(2)	—		1,061
Acquisition of Foreign Investments(2)	211		—
Other comprehensive income and other	(192)		(61)
Equity accounted investments, end of year	$	19,435	$	19,943

(1)The prior year includes the impact of change in accounting basis of assets that were accounted for under the equity method which are now accounted for as financial assets.

(2)See Note 32, Related Parties for further information on the Manager Reorganization and Acquisition of Foreign Investments.

Equity Method Investments, Valuation Techniques and Assumptions

The key valuation metrics for the partnership’s commercial properties held within the partnership’s equity accounted investments are set forth in the table below on a weighted-average basis:


		Dec. 31, 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(1)	Discounted cash flow	7.4	%	5.0	%	11	6.4	%	4.9	%	11





Retail(2)	Discounted cash flow	6.6	%	5.1	%	10	6.6	%	4.9	%	10
LP Investments(3)	Discounted cash flow	7.7	%	5.9	%	10	7.8	%	5.5	%	10

(1)Included in our total Office portfolio are 16 premier office and mixed-use complexes in key global markets with a weighted-average discount rate of 6.7%.

(2)Included in our total Retail portfolio are 19 Core premier retail centers with a weighted-average discount rate of 6.2%.

(3)The valuation method used to value multifamily investments is the direct capitalization method. At December 31, 2023, the overall implied capitalization rate used for properties using the direct capitalization method was 4.5% (December 31, 2022 - 4.2%). The terminal capitalization rate and investment horizon are not applicable.

The following tables present the gross assets and liabilities of the partnership’s equity accounted investments as of December 31, 2023 and 2022:


	Dec. 31, 2023
(US$ Millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities		Net assets		Carrying value
Joint ventures
Office	$	2,314	$	33,623	$	5,412	$	13,302	$	17,223	$	8,199
Retail	723		33,554		5,355		9,047		19,875		9,501
LP Investments	1,627		4,355		389		2,812		2,781		1,442
	4,664		71,532		11,156		25,161		39,879		19,142
Associates


LP Investments	64		552		22		80		514		293
	64		552		22		80		514		293
Total	$	4,728	$	72,084	$	11,178	$	25,241	$	40,393	$	19,435


	Dec. 31, 2022
(US$ Millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities		Net assets		Carrying value
Joint ventures
Office	$	1,602	$	34,833	$	3,037	$	15,174	$	18,224	$	8,547
Retail	791		33,383		3,089		11,323		19,762		9,549
LP Investments	1,246		5,431		653		3,223		2,801		1,308
	3,639		73,647		6,779		29,720		40,787		19,404
Associates


LP Investments	183		2,705		109		1,057		1,722		539
	183		2,705		109		1,057		1,722		539
Total	$	3,822	$	76,352	$	6,888	$	30,777	$	42,509	$	19,943

Summarized financial information in respect of the partnership’s equity accounted investments for the years ended December 31, 2023, 2022 and 2021 is set out below:


	Year ended December 31, 2023
(US$ Millions)	Revenue		Expenses		Fair value gains (losses)		Income from EAI(1)		Net (loss) income		Other compre- hensive (loss) income		Partnership’s share of net (loss) income		Distributions received
Joint ventures
Office	$	2,261	$	1,564	$	(1,924)	$	50	$	(1,177)	$	(61)	$	(434)	$	112
Retail	2,002		1,446		166		55		777		(29)		269		16
LP Investments	1,499		1,532		228		(78)		117		12		94		67






















	5,762		4,542		(1,530)		27		(283)		(78)		(71)		195
Associates
LP Investments	69		94		(104)		19		(110)		(50)		(50)		17


	69		94		(104)		19		(110)		(50)		(50)		17
Total	$	5,831	$	4,636	$	(1,634)	$	46	$	(393)	$	(128)	$	(121)	$	212

(1)Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates.


	Year ended December 31, 2022
(US$ Millions)	Revenue		Expenses		Fair value gains (losses)		Income from EAI(1)		Net income (loss)		Other compre- hensive income		Partnership’s share of net income (loss)		Distributions received
Joint ventures
Office	$	1,849	$	1,273	$	259	$	180	$	1,015	$	194	$	550	$	114
Retail	1,949		1,156		(290)		47		550		43		234		27
LP Investments	886		948		112		—		50		232		38		122
	4,684		3,377		81		227		1,615		469		822		263
Associates
LP Investments	230		244		8		—		(6)		69		4		—


	230		244		8		—		(6)		69		4		—
Total	4,914		3,621		89		227		1,609		538		826		263

(1)Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates.


	Year ended December 31, 2021
(US$ Millions)	Revenue		Expenses		Fair value gains (losses)		Income from EAI(1)		Net income		Other compre- hensive income		Partnership’s share of net income		Distributions received
Joint ventures
Office	$	1,917	$	1,280	$	686	$	80	$	1,403	$	100	$	644	$	138
Retail	1,844		1,266		286		55		919		—		472		16
LP Investments	609		769		59		—		(101)		275		(46)		18
	4,370		3,315		1,031		135		2,221		375		1,070		172
Associates
LP Investments	103		174		(8)		7		(72)		949		(50)		—


	103		174		(8)		7		(72)		949		(50)		—
Total	$	4,473	$	3,489	$	1,023	$	142	$	2,149	$	1,324	$	1,020	$	172

(1)Share of net earnings from equity accounted investments recorded by the partnership’s joint ventures and associates.