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real estate joint ventures (Tables)
 12 Months Ended
Dec. 31, 2018
real estate joint ventures  
Schedule of real estate joint ventures financial information

 

 

 

 

 

 

 

As at December 31 (millions)

    

2018

    

2017

ASSETS

 

 

 

 

 

 

Current assets 

 

 

 

 

 

 

Cash  and temporary investments, net

 

$

11

 

$

20

Escrowed deposits for tenant inducements and liens

 

 

 4

 

 

 1

Other

 

 

 2

 

 

 4

 

 

 

17

 

 

25

Non-current  assets

 

 

 

 

 

 

Property under development – Investment property

 

 

256

 

 

194

Investment property

 

 

 —

 

 

221

Other

 

 

 —

 

 

35

 

 

$

256

 

$

450

 

 

 

 

 

 

 

 

 

$

273

 

$

475

LIABILITIES AND OWNERS’ EQUITY

 

 

 

 

 

 

Current liabilities 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

19

 

$

13

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

 

 

 —

 

 

 5

Construction holdback liabilities

 

 

15

 

 

10

 

 

 

34

 

 

28

Non-current  liabilities

 

 

 

 

 

 

Construction credit facilities

 

 

207

 

 

141

3.7% mortgage due September 2024

 

 

 —

 

 

27

Senior secured 3.4% bonds due July 2025

 

 

 —

 

 

208

 

 

 

207

 

 

376

 

 

 

241

 

 

404

Owners’ equity 

 

 

 

 

 

 

TELUS 1

 

 

13

 

 

29

Other partners

 

 

19

 

 

42

 

 

 

32

 

 

71

 

 

$

273

 

$

475

1

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

 

 

 

 

 

 

 

 

Years ended December 31 (millions)

    

2018

    

2017

Revenue

 

 

  

 

 

  

From investment property

 

$

21

 

$

34

From sale of residential condominiums

 

$

 —

 

$

19

Other operating income

 

$

345

 

$

 —

Depreciation and amortization 

 

$

 5

 

$

 8

Interest expense 1

 

$

 6

 

$

 8

Net income and comprehensive income 2

 

$

322

 

$

(6)

1

During the year ended December 31, 2018, the real estate joint ventures capitalized $8 (2017 – $3) of financing costs.

2

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

2017

 

    

Loans and

    

 

 

    

 

 

    

Loans and

    

 

 

    

 

 

Years ended December 31 (millions)

 

receivables 1

 

Equity 2

 

Total

 

receivables 1

 

Equity 2

 

Total

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

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Comprehensive income attributable to us 3

 

$

 —

 

$

171

 

$

171

 

$

 —

 

$

 2

 

$

 2

Related to real estate joint ventures’ statements of financial position

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Items not affecting currently reported cash flows

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Recognition of gain deferred on our real estate initially contributed

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 1

 

 

 1

Construction credit facilities financing costs charged by us and other (Note 7)

 

 

 3

 

 

 —

 

 

 3

 

 

 —

 

 

 —

 

 

 —

Cash flows in the current reporting period

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Construction credit facilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts advanced

 

 

22

 

 

 —

 

 

22

 

 

26

 

 

 —

 

 

26

Financing costs paid to us

 

 

(3)

 

 

 —

 

 

(3)

 

 

 —

 

 

 —

 

 

 —

Funds repaid to us and earnings distributed

 

 

 —

 

 

(181)

 

 

(181)

 

 

 —

 

 

(18)

 

 

(18)

Net increase (decrease)

 

 

22

 

 

(10)

 

 

12

 

 

26

 

 

(15)

 

 

11

Real estate joint ventures carrying amounts

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Balance, beginning of period

 

 

47

 

 

15

 

 

62

 

 

21

 

 

30

 

 

51

Balance, end of period

 

$

69

 

$

 5

 

$

74

 

$

47

 

$

15

 

$

62

1

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

2

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

3

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

 

 

 

 

 

 

 

 

 

As at December 31 (millions)

    

Note

    

2018

    

2017

Construction credit facilities commitment – TELUS Corporation

 

  

 

 

  

 

 

  

Undrawn

 

4(c)

 

$

45

 

$

67

Advances

 

  

 

 

69

 

 

47

 

 

  

 

 

114

 

 

114

Construction credit facilities commitment – other

 

  

 

 

228

 

 

228

 

 

  

 

$

342

 

$

342