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INVESTMENT PROPERTIES (Tables) | 12 Months Ended
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Dec. 31, 2021
Investment property [abstract] |
Disclosure of detailed information about investment property | The following table presents the change in the fair value of the company’s investment properties:
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS) | 2021 |  | 2020
Fair value, beginning of year | $ | 96,782 |  |  | $ | 96,686 |
Additions | 13,558 |  |  | 8,180 |
Acquisitions through business combinations | 988 |  | — |
Changes in basis of accounting | 599 |  |  | 193 |
Dispositions 1 | (15,017) |  |  | (9,284) |
Fair value changes | 5,073 |  |  | (269) |
Foreign currency translation and other | (1,118) |  |  | 1,276 |
Fair value, end of year 2 | $ | 100,865 |  |  | $ | 96,782 |
1. Includes amounts reclassified to held for sale. 2. As at December 31, 2021, the ending balance includes $94.9 billion (2020 – $90.4 billion) of investment properties leased to third parties and $4.1 billion of ROU investment properties (December 31, 2020 – $3.3 billion).
Disclosure of fair value measurement of assets [text block] | The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the fair value hierarchy levels:
| 2021 |  | 2020
AS AT DEC. 31 (MILLIONS) | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Financial assets |  |  |  |  |  |  |  |  |  |  |
Other financial assets |  |  |  |  |  |  |  |  |  |  |
Government bonds | $ | 48 |  |  | $ | 1,972 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 2,644 |  |  | $ | — |
Corporate bonds | 85 |  |  | 2,050 |  |  | 383 |  |  | 192 |  |  | 2,764 |  |  | 286 |
Fixed income securities and other | 762 |  |  | 1,908 |  |  | 451 |  |  | 867 |  |  | 912 |  |  | 491 |
Common shares and warrants | 4,063 |  |  | 548 |  |  | 1,316 |  |  | 4,548 |  |  | 577 |  |  | 1,389 |
Loans and notes receivables | — |  |  | — |  |  | 5 |  |  | — |  |  | 42 |  |  | 68 |
| 4,958 |  |  | 6,478 |  |  | 2,155 |  |  | 5,614 |  |  | 6,939 |  |  | 2,234 |
Accounts receivable and other | 3 |  |  | 2,265 |  |  | 77 |  |  | 50 |  |  | 1,581 |  |  | 135 |
| $ | 4,961 |  |  | $ | 8,743 |  |  | $ | 2,232 |  |  | $ | 5,664 |  |  | $ | 8,520 |  |  | $ | 2,369 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |
Accounts payable and other | $ | 29 |  |  | $ | 4,150 |  |  | $ | 1,311 |  |  | $ | 75 |  |  | $ | 5,090 |  |  | $ | 724 |
Subsidiary equity obligations | — |  |  | 135 |  |  | 1,403 |  |  | — |  |  | 77 |  |  | 1,380 |
| $ | 29 |  |  | $ | 4,285 |  |  | $ | 2,714 |  |  | $ | 75 |  |  | $ | 5,167 |  |  | $ | 2,104 |
The following table presents our investment properties measured at fair value:
AS AT DEC. 31 (MILLIONS) | 2021 |  | 2020
Core | $ | 19,384 |  |  | $ | 19,339 |
Transitional and Development | 27,669 |  |  | 29,764 |
LP investments | 51,620 |  |  | 45,857 |
Other investment properties | 2,192 |  |  | 1,822 |
| $ | 100,865 |  |  | $ | 96,782 |
Disclosure of significant unobservable inputs used in fair value measurement of assets [text block] | The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:
(MILLIONS) Type of Asset/Liability |  | Carrying Value Dec. 31, 2021 |  | Valuation Techniques |  | Significant Unobservable Inputs |  | Relationship of Unobservable Inputs to Fair Value
Corporate bonds |  | $ | 383 |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
Fixed income securities and other |  | 451 |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
Common shares and warrants |  | 1,316 |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
|  |  |  | Black-Scholes model |  | • Volatility |  | • Increases (decreases) in volatility increase (decreases) fair value
|  |  |  |  |  | • Term to maturity |  | • Increases (decreases) in term to maturity increase (decrease) fair value
Derivative assets/Derivative liabilities (accounts receivable/payable) |  | 77 / (1,311) |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
Limited-life funds (subsidiary equity obligations) |  | (1,403) |  |  | Discounted cash flows |  | • Future cash flows |  | • Increases (decreases) in future cash flows increase (decrease) fair value
|  |  |  |  |  | • Discount rate |  | • Increases (decreases) in discount rate decrease (increase) fair value
|  |  |  |  |  | • Terminal capitalization rate |  | • Increases (decreases) in terminal capitalization rate decrease (increase) fair value
|  |  |  |  |  | • Investment horizon |  | • Increases (decreases) in the investment horizon decrease (increase) fair value
The significant unobservable inputs (Level 3) included in the discounted cash flow models used when determining the fair value of standing timber and agricultural assets include:
Valuation Techniques |  | Significant Unobservable Inputs |  | Relationship of Unobservable Inputs to Fair Value |  | Mitigating Factors
Discounted cash flow analysis |  | •Future cash flows |  | •Increases (decreases) in future cash flows increase (decrease) fair value |  | •Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
|  | •Timber / agricultural prices |  | •Increases (decreases) in price increase (decrease) fair value |  | •Increases (decreases) in price tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from price
|  | •Discount rate /terminal capitalization rate |  | •Increases (decreases) in discount rate or terminal capitalization rate decrease (increase) fair value |  | •Decreases (increases) in discount rates or terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from rates
|  | •Exit Date |  | •Increases (decreases) in exit date decrease (increase) fair value |  | •Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
The following table summarizes the key valuation metrics of the company’s investment properties:
| 2021 |  | 2020
AS AT DEC. 31 | Discount Rate |  | Terminal Capitalization Rate |  | Investment Horizon (years) |  | Discount Rate |  | Terminal Capitalization Rate |  | Investment Horizon (years)
Core | 5.9 | % |  | 4.6 | % |  | 11 |  | 6.0 | % |  | 4.6 | % |  | 11
Transitional and Development 1 | 7.3 | % |  | 5.8 | % |  | 10 |  | 7.2 | % |  | 5.9 | % |  | 10
LP investments 1 | 9.1 | % |  | 5.9 | % |  | 13 |  | 9.4 | % |  | 6.0 | % |  | 14
Other investment properties 2 | 8.7% |  | n/a |  | n/a |  | 5.0 – 8.7% |  | n/a |  | n/a
1. The rates presented are for investment properties valued using the discounted cash flow method. These rates exclude multifamily, triple net lease, student housing, manufactured housing and other investment properties valued using the direct capitalization method. 2. Other investment properties include investment properties held in our Infrastructure and Residential Development segments. The following table presents our renewable power and transition property, plant and equipment measured at fair value by geography:
AS AT DEC. 31 (MILLIONS) | 2021 |  | 2020
North America | $ | 32,629 |  |  | $ | 28,044 |
Colombia | 8,497 |  |  | 8,150 |
Europe | 3,935 |  |  | 4,912 |
Brazil | 3,547 |  |  | 3,005 |
Other 1 | 1,709 |  |  | 1,095 |
| $ | 50,317 |  |  | $ | 45,206 |
1. Other refers primarily to China, India and Chile. Key valuation metrics of the company’s hydroelectric, wind and solar generating facilities at the end of 2021 and 2020 are summarized below.
| North America |  | Brazil |  | Colombia |  | Europe
AS AT DEC. 31 | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Discount rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contracted | 4.1 – 4.3% |  | 4.1 – 4.5% |  | 7.2 | % |  | 7.3 | % |  | 7.9 | % |  | 8.1 | % |  | 3.9 | % |  | 3.0 – 3.6%
Uncontracted | 5.4 – 5.6% |  | 5.6 – 6.0% |  | 8.5 | % |  | 8.6 | % |  | 9.2 | % |  | 9.4 | % |  | 3.9 | % |  | 3.6 – 4.7%
Terminal capitalization rate 1 | 4.8 – 5.1% |  | 5.8 – 6.2% |  | n/a |  | n/a |  | 8.0 | % |  | 8.9 | % |  | n/a |  | n/a
Exit date | 2042 |  | 2041 |  | 2048 |  | 2048 |  | 2041 |  | 2040 |  | 2036 |  | 2035
1. Terminal capitalization rate applies only to hydroelectric assets in North America and Colombia. Key valuation metrics of the company’s utilities, transport, midstream and sustainable resources assets at the end of 2021 and 2020 are summarized below.
| Utilities |  | Transport |  | Midstream |  |  |  | Sustainable Resources
AS AT DEC. 31 | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  |  |  |  |  | 2021 |  | 2020
Discount rates | 7 – 11% |  | 7 – 14% |  | 7 – 14% |  | 7 – 13% |  | 15 | % |  | 15 | % |  |  |  |  |  | n/a |  | 6 | %
Terminal capitalization multiples | 20x |  | 7x – 23x |  | 9x – 15x |  | 9x – 14x |  | 10x |  | 10x |  |  |  |  |  | n/a |  | 6x
Investment horizon/Exit date (years) | 10 – 20 |  | 10 |  | 10 |  |  | 10 |  | 5 – 10 |  | 5 – 10 |  |  |  |  |  | n/a |  | 10

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