XML 50 R38.htm IDEA: XBRL DOCUMENT
v3.22.4

FINANCIAL INSTRUMENTS | 12 Months Ended
--- | ---
Dec. 31, 2022
Financial Instruments [Abstract] |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS a)Derivatives and hedging activities The partnership and its operating entities use derivative and non-derivative instruments to manage financial risks, including interest rate, commodity, equity price and foreign exchange risks. The use of derivative contracts is governed by documented risk management policies and approved limits. The partnership does not use derivatives for speculative purposes. The partnership and its operating entities use the following derivative instruments to manage these risks: •foreign currency forward contracts to hedge exposures to Canadian Dollar, Australian Dollar, British Pound, Euro, Chinese Yuan, Brazilian Real, Indian Rupee and South Korean Won denominated net investments in foreign subsidiaries and foreign currency denominated financial assets; •interest rate swaps to manage interest rate risk associated with planned refinancings and existing variable rate debt; •interest rate caps to hedge interest rate risk on certain variable rate debt; and •cross currency swaps to manage interest rate and foreign currency exchange rates on existing variable rate debt. The partnership also designates Canadian Dollar financial liabilities of certain of its operating entities as hedges of its net investments in its Canadian operations. Interest Rate Hedging The following table provides the partnership’s outstanding derivatives that are designated as cash flow hedges of variability in interest rates associated with forecasted fixed rate financings and existing variable rate debt as of December 31, 2022 and 2021:
(US$ Millions) | Hedging item | Notional | Rates | Maturity dates | Fair value
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 | — |
Dec. 31, 2021 | Interest rate caps of US$ LIBOR debt | $ | 9,590 |  | 2.5% - 5.0% | Jan. 2022 - Jun. 2024 | $ | — |
| Interest rate swaps of US$ LIBOR debt | 2,130 |  | 1.0% - 2.6% | Nov. 2022 - Feb. 2024 | (50) |
| Interest rate caps of £ LIBOR debt | 2,301 |  | 1.0% - 2.5% | Jan. 2022 - Dec. 2023 | — |
| Interest rate caps of £ SONIA debt | 974 |  | 2.0% | Oct. 2022 - Mar. 2025 | 5 |
| Interest rate caps of € EURIBOR debt | 102 |  | 1.3% | Apr. 2022 | — |
| Interest rate caps of C$ LIBOR debt | 240 |  | 2.0% | Oct. 2022 | — |
| Interest rate swaps of AUD BBSW/BBSY debt | 422 |  | 0.8% - 1.6% | Apr. 2023 - Apr. 2024 | — |
For the year ended December 31, 2022, the amount of hedge ineffectiveness recorded in earnings in connection with the partnership’s interest rate hedging activities was nil (December 31, 2021 - nil). Foreign Currency Hedging The following table presents the partnership’s outstanding derivatives that are designated as net investment hedges in foreign subsidiaries or cash flow hedges as of December 31, 2022 and 2021:
(US$ Millions) | Hedging item | Net Notional | Rates | Maturity dates | Fair value
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) |
Dec. 31, 2021 | Net investment hedges | € | 389 |  | €0.81/$ - €0.88/$ | Jul. 2022 - Sep. 2024 | $ | (2) |
| Net investment hedges | £ | 4,395 |  | £0.71/$ - £0.76/$ | Jun. 2022 - Mar. 2023 | (89) |
| Net investment hedges | A$ | 974 |  | A$1.35/$ - A$1.41/$ | Mar. 2022 - Mar. 2023 | (14) |
| Net investment hedges | C¥ | 1,596 |  | C¥6.68/$ - C¥6.99/$ | Jun. 2022 - Jun. 2023 | (7) |
| Net investment hedges | R$ | 2,546 |  | R$5.87/$ - R$6.54/$ | Sep. 2022 - Oct. 2022 | (5) |
| Net investment hedges | ₩ | 720,095 |  | ₩1,165.75/$ - ₩1,197.60/$ | Jun. 2022 - Jun. 2023 | 4 |
| Net investment hedges | Rs | 75,690 |  | Rs76.35/$ - Rs87.13/$ | Jan. 2022 - Jul. 2024 | (27) |
| Net investment hedges | £ | 90 |  | £0.91/€ | Apr. 2022 | 9 |
| Cross currency swaps of C$ LIBOR debt | C$ | 2,500 |  | C$1.25/$ - C$1.38/$ | Jul. 2023 - Jan. 2027 | 56 |
For the years ended December 31, 2022 and 2021, the amount of hedge ineffectiveness recorded in earnings in connection with the partnership’s foreign currency hedging activities was not significant. Other Derivatives The following tables provide detail of the partnership’s other derivatives, not designated as hedges for accounting purposes, that have been entered into to manage financial risks as of December 31, 2022 and 2021:
(US$ millions) | Derivative type | Notional | Rates | Maturity dates | Fair value |
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) |  |
Dec. 31, 2021 | Interest rate caps | $ | 5,388 |  | 3.0% - 5.0% | Jan. 2022 - Feb. 2027 | $ | — |  |
| Interest rate swaps on forecasted fixed rate debt | 1,285 |  | 2.7% - 6.4% | Jun. 2022 - Jun. 2033 | (253) |  |
| Interest rate swaps of US$ debt | 1,696 |  | 0.8% - 5.1% | Nov. 2022 - Mar. 2024 | (8) |  |
The partnership recognized fair value losses of approximately nil (December 31, 2021 - losses of $31 million) related to the settlement of certain forward starting interest rate swaps that have not been designated as hedges. b)Measurement and classification of financial instruments Fair value is the amount that willing parties would accept to exchange a financial instrument based on the current market for instruments with the same risk, principal and remaining maturity. The fair value of interest bearing financial assets and liabilities is determined by discounting the contractual principal and interest payments at estimated current market interest rates for the instrument. Current market rates are determined by reference to current benchmark rates for a similar term and current credit spreads for debt with similar terms and risk. Classification and Measurement The following table outlines the classification and measurement basis, and related fair value for disclosures, of the financial assets and liabilities in the consolidated financial statements:
|  | Dec. 31, 2022 | Dec. 31, 2021
(US$ Millions) | Classification and measurement basis | Carrying value | Fair value | Carrying value | Fair value
Financial assets |  |  |  |  |
Loans and notes receivable | Amortized cost | 686 |  | 686 |  | 225 |  | 225 |
Other non-current assets |  |  |  |  |
Securities - FVTPL | FVTPL | 2,523 |  | 2,523 |  | 2,200 |  | 2,200 |
Derivative assets | FVTPL | 170 |  | 170 |  | 111 |  | 111 |
Accounts receivable | Amortized cost | 464 |  | 464 |  | 2 |  | 2 |
Securities - FVTOCI | FVTOCI | 69 |  | 69 |  | 108 |  | 108 |
Restricted cash | Amortized cost | 584 |  | 584 |  | 356 |  | 356 |
Current assets |  |  |  |  |
Securities - FVTOCI | FVTOCI | 36 |  | 36 |  | — |  | — |
Derivative assets | FVTPL | 124 |  | 124 |  | 33 |  | 33 |
Accounts receivable(1) | Amortized cost | 787 |  | 787 |  | 1,128 |  | 1,128 |
Restricted cash | Amortized cost | 342 |  | 342 |  | 331 |  | 331 |
Cash and cash equivalents | Amortized cost | 4,020 |  | 4,020 |  | 2,576 |  | 2,576 |
Total financial assets |  | $ | 9,805 |  | $ | 9,805 |  | $ | 7,070 |  | $ | 7,070 |
Financial liabilities |  |  |  |  |
Debt obligations(2) | Amortized cost | $ | 58,562 |  | $ | 57,790 |  | $ | 55,327 |  | $ | 55,474 |
Capital securities | Amortized cost | 2,256 |  | 2,256 |  | 2,226 |  | 2,226 |
Capital securities - fund subsidiaries | FVTPL | 577 |  | 577 |  | 859 |  | 859 |
Other non-current liabilities |  |  |  |  |
Loan payable | FVTPL | 171 |  | 171 |  | 1 |  | 1 |
Accounts payable | Amortized cost | 824 |  | 824 |  | 499 |  | 499 |
Derivative liabilities | FVTPL | 371 |  | 371 |  | 277 |  | 277 |
Accounts payable and other liabilities |  |  |  |  |
Accounts payable and other(3) | Amortized cost | 2,852 |  | 2,852 |  | 2,097 |  | 2,097 |
Loans and notes payable | Amortized cost | 226 |  | 226 |  | 899 |  | 899 |
Derivative liabilities | FVTPL | 167 |  | 167 |  | 221 |  | 221 |
Total financial liabilities |  | $ | 66,006 |  | $ | 65,234 |  | $ | 62,406 |  | $ | 62,553 |
(1)Includes other receivables associated with assets classified as held for sale on the consolidated balance sheets in the amounts of nil and $276 million as of December 31, 2022 and December 31, 2021, respectively. (2)Includes debt obligations associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $3,006 million as of December 31, 2022 and December 31, 2021, respectively. (3)Includes accounts payable and other liabilities associated with assets classified as held for sale on the consolidated balance sheets in the amount of nil and $76 million as of December 31, 2022 and December 31, 2021, respectively. The following table outlines financial assets and liabilities measured at fair value in the financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined above:
| Dec. 31, 2022 | Dec. 31, 2021
(US$ Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Financial assets |  |  |  |  |  |  |  |
Securities designated as FVTPL | 10 |  | 305 |  | 2,208 |  | 2,523 |  | 17 |  | 218 |  | 1,965 |  | 2,200 |
Securities designated as FVTOCI | 36 |  | — |  | 69 |  | 105 |  | 13 |  | — |  | 95 |  | 108 |
Derivative assets | — |  | 294 |  | — |  | 294 |  | — |  | 144 |  | — |  | 144 |
Total financial assets | $ | 46 |  | $ | 599 |  | $ | 2,277 |  | $ | 2,922 |  | $ | 30 |  | $ | 362 |  | $ | 2,060 |  | $ | 2,452 |
Financial liabilities |  |  |  |  |  |  |  |
Capital securities - fund subsidiaries | $ | — |  | $ | — |  | $ | 577 |  | $ | 577 |  | $ | — |  | $ | — |  | $ | 859 |  | $ | 859 |
Derivative liabilities | — |  | 538 |  | — |  | 538 |  | — |  | 498 |  | — |  | 498 |
Total financial liabilities | $ | — |  | $ | 538 |  | $ | 577 |  | $ | 1,115 |  | $ | — |  | $ | 498 |  | $ | 859 |  | $ | 1,357 |
The following table presents the valuation techniques and inputs of the partnership’s Level 2 assets and liabilities:
Type of asset/liability |  | Valuation technique
Foreign currency forward contracts |  | Discounted cash flow model - forward exchange rates (from observable forward exchange rates at the end of the reporting period) and discounted at a credit adjusted rate
Interest rate contracts |  | Discounted cash flow model - forward interest rates (from observable yield curves) and applicable credit spreads discounted at a credit adjusted rate
The table below presents the valuation techniques and inputs of Level 3 assets:
Type of asset/liability |  | Valuation techniques |  | Significant unobservable input(s) |  | Relationship of unobservable input(s) to fair value
Securities - FVTPL/FVTOCI |  | Net asset valuation |  | (a) Forward exchange rates (from observable forward exchange rates at the end of the reporting period) (b) Discount rate |  | (a) Increases (decreases) in the forward exchange rate would increase (decrease) fair value (b) Decreases (increases) in the discount rate would increase (decrease) fair value
The following table presents the change in the balance of financial assets and financial liabilities classified as Level 3 as of December 31, 2022 and 2021:
| Dec. 31, 2022 | Dec. 31, 2021
(US$ Millions) | Financial assets | Financial liabilities | Financial assets | Financial liabilities
Balance, beginning of year | $ | 2,060 |  | $ | 859 |  | $ | 1,682 |  | $ | 863 |
Additions | 353 |  | — |  | 553 |  | — |
Dispositions | (222) |  | — |  | (88) |  | — |
Fair value (losses) gains, net and OCI | 86 |  | (292) |  | 366 |  | 2 |
Other | — |  | 10 |  | (453) |  | (6) |
Balance, end of year | $ | 2,277 |  | $ | 577 |  | $ | 2,060 |  | $ | 859 |
c)Market Risk Interest rate risk The partnership faces interest rate risk on its variable rate financial assets and liabilities. In addition, there is interest rate risk associated with the partnership’s fixed rate debt due to the expected requirement to refinance such debt in the year of maturity. The following table outlines the impact on interest expense of a 100 basis point increase or decrease in interest rates on the partnership’s variable rate liabilities and fixed rate debt maturing within one year:
(US$ Millions) | Dec. 31, 2022 | Dec. 31, 2021
Variable rate property debt | $ | 367 |  | $ | 255 |
Fixed rate property debt due within one year | 35 |  | 31 |
Total | $ | 402 |  | $ | 286 |
The partnership manages interest rate risk by primarily entering into fixed rate operating property debt and staggering the maturities of its mortgage portfolio over a 10-year horizon when the market permits. The partnership also makes use of interest rate derivatives to manage interest rate risk on specific variable rate debts and on anticipated refinancing of fixed rate debt. Foreign currency risk The partnership is structured such that its foreign operations are primarily conducted by entities with a functional currency which is the same as the economic environment in which the operations take place. As a result, the net income impact of currency risk associated with financial instruments is limited as its financial assets and liabilities are generally denominated in the functional currency of the subsidiary that holds the financial instrument. However, the partnership is exposed to foreign currency risk on the net assets of its foreign currency denominated operations. The partnership’s exposures to foreign currencies and the sensitivity of net income and other comprehensive income, on a pre-tax basis, to a 10% change in the exchange rates relative to the U.S. dollar is summarized below:
| Dec. 31, 2022
(Millions) | Equity attributable to Unitholders | OCI | Net income
Canadian Dollar(1) | C$ | 142 |  | $ | (11) |  | $ | — |
Australian Dollar | A$ | 1,560 |  | (106) |  | — |
British Pound | £ | 4,059 |  | (490) |  | — |
Euro | € | 690 |  | (74) |  | — |
Brazilian Real | R$ | 3,129 |  | (60) |  | — |
Indian Rupee | Rs | 33,212 |  | (40) |  | — |
Chinese Yuan | C¥ | 2,554 |  | (37) |  | — |
South Korean Won | ₩ | 417,865 |  | (33) |  | — |
United Arab Emirates Dirham | AED | 1,287 |  | (35) |  | — |
Total |  |  | $ | (886) |  | $ | — |
(1)Net of Canadian Dollar denominated loans.
| Dec. 31, 2021
(Millions) | Equity attributable to Unitholders | OCI | Net income
Canadian Dollar(1) | C$ | 339 |  | $ | (27) |  | $ | — |
Australian Dollar | A$ | 1,708 |  | (124) |  | — |
British Pound | £ | 6,375 |  | (863) |  | — |
Euro | € | 1,297 |  | (147) |  | — |
Brazilian Real | R$ | 745 |  | (13) |  | — |
Indian Rupee | Rs | 617 |  | (1) |  | — |
Chinese Yuan | C¥ | 730 |  | (11) |  | — |
South Korean Won | ₩ | 289,443 |  | (24) |  | — |
United Arab Emirates Dirham | AED | 342 |  | (9) |  | — |
Czech Koruna | CZK | 5 |  | — |  | — |
Hungarian Forint | HUF | 5 |  | — |  | — |
Total |  |  | $ | (1,219) |  | $ | — |
(1)Net of Canadian Dollar denominated loans.
| Dec. 31, 2020
(Millions) | Equity attributable to Unitholders | OCI | Net income
Canadian Dollar(1) | C$ | 521 |  | $ | (41) |  | $ | — |
Australian Dollar | A$ | 2,056 |  | (158) |  | — |
British Pound | £ | 4,206 |  | (575) |  | — |
Euro | € | 328 |  | (40) |  | — |
Brazilian Real | R$ | 3,364 |  | (65) |  | — |
Indian Rupee | Rs | 28,281 |  | (39) |  | — |
Hong Kong Dollar | HK$ | — |  | — |  | — |
Chinese Yuan | C¥ | 1,084 |  | (17) |  | — |
South Korean Won | ₩ | 204,795 |  | (19) |  | — |
United Arab Emirates Dirham | AED | 708 |  | (19) |  | — |
Czech Koruna | CZK | 8 |  | — |  | — |
Hungarian Forint | HUF | 334 |  | — |  | — |
Poland Zloty | PLN | 3 |  | — |  | — |
Total |  |  | $ | (973) |  | $ | — |
(1)Net of Canadian Dollar denominated loans. d)Credit risk The partnership’s maximum exposure to credit risk associated with financial assets is equivalent to the carrying value of each class of financial asset as separately presented in loans and notes receivable, certain other non-current assets, accounts receivables and other, and cash and cash equivalents. Credit risk arises on loans and notes receivables in the event that borrowers default on the repayment to the partnership. The partnership mitigates this risk by attempting to ensure that adequate security has been provided in support of such loans and notes. Credit risk related to accounts receivable arises from the possibility that tenants may be unable to fulfill their lease commitments. The partnership mitigates this risk through diversification, ensuring that tenants meet minimum credit quality requirements and by ensuring that its tenant mix is diversified and by limiting its exposure to any one tenant. The partnership maintains a portfolio that is diversified by property type so that exposure to a business sector is lessened. Currently no one tenant represents more than 10% of operating property revenue.

X
- Definition Financial Instruments [Abstract] + References No definition available. + Details
Name: | bpy_FinancialInstrumentsAbstract
Namespace Prefix: | bpy_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for financial instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2022-03-24 -Section Scope -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2022-en-r&doctype=Standard&dita_xref=IFRS07_g3-5A__IFRS07_g3-5A_TI -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration