EQUITY ACCOUNTED INVESTMENTS

12 Months Ended

Dec. 31, 2022

Interests In Other Entities [Abstract]

The partnership has investments in joint arrangements that are joint ventures, and also has investments in associates. Joint ventures hold individual commercial properties and portfolios of commercial properties and developments that the partnership owns together with co-owners where decisions relating to the relevant activities of the joint venture require the unanimous consent of the co-owners. 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				Carrying value
(US$ Millions)	Principal activity	Principal place of business	Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2022		Dec. 31, 2021
Joint ventures
London Mixed-use District	Property holding company	United Kingdom	50	%	50	%	$	3,192	$	3,529
Midtown New York Mixed-use Complex	Property holding company	United States	56	%	56	%	2,518		2,396
U.S. Retail JV Pool A	Property holding company	United States	50	%	50	%	1,848		1,810
Honolulu Shopping Center	Property holding company	United States	50	%	50	%	1,507		1,939
U.S. Retail JV Pool B	Property holding company	United States	51	%	51	%	1,132		1,140
U.S. Retail JV Pool C	Property holding company	United States	50	%	50	%	737		679
Bryant Park Office Tower	Property holding company	United States	50	%	50	%	719		702
Las Vegas Mall A	Property holding company	United States	50	%	50	%	702		856
U.S. Retail JV Pool D	Property holding company	United States	48	%	48	%	646		612
Las Vegas Mall B	Property holding company	United States	50	%	50	%	625		455
Other(1)	Various	Various	15% - 68%		15% - 68%		5,778		6,361















							19,404		20,479
Associates
Other	Various	Various	16% - 50%		13% - 50%		539		328
							539		328
Total							$	19,943	$	20,807

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

The following table presents the change in the balance of the partnership’s equity accounted investments as of December 31, 2022 and 2021:


(US$ Millions) Years ended Dec. 31,	2022		2021
Equity accounted investments, beginning of year	$	20,807	$	19,719


Additions	100		698
Disposals and return of capital distributions	(967)		(459)
Share of net (losses) earnings from equity accounted investments	826		1,020
Distributions received	(263)		(172)
Foreign currency translation	(578)		(145)
Reclassification from (to) assets held for sale	(276)		(210)
Impact of change in accounting basis(1)	(706)		—
Manager Reorganization(2)	1,061		—
Other comprehensive income and other	(61)		356
Equity accounted investments, end of year	$	19,943	$	20,807

(1)The current 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.

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, 2022					Dec. 31, 2021
Equity accounted investments	Primary valuation method	Discount rate		Terminal capitalization rate		Investment horizon (yrs.)	Discount rate		Terminal capitalization rate		Investment horizon (yrs.)
Core Office	Discounted cash flow	6.4 %		4.9 %		11	6.0	%	4.7	%	11





Core Retail	Discounted cash flow	6.6	%	4.9	%	10	6.3	%	4.9	%	10
LP Investments(1)	Discounted cash flow	7.8	%	5.5	%	10	6.9	%	5.6	%	10

(1)The valuation method used to value multifamily investments is the direct capitalization method. The rates presented as the discount rate relate to the overall implied capitalization rate. 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, 2022 and 2021:


	Dec. 31, 2022
(US$ Millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities		Net assets
Joint ventures
London Mixed-use District	$	879	$	11,709	$	972	$	5,232	$	6,384
Midtown New York Mixed-use Complex	198		8,132		276		3,558		4,496
U.S. Retail JV Pool A	158		5,777		253		1,985		3,697
Honolulu Shopping Center	100		5,352		40		2,397		3,015
U.S. Retail JV Pool B	210		5,587		1,348		2,230		2,219
U.S. Retail JV Pool C	43		2,219		45		663		1,554
Bryant Park Office Tower	67		2,636		23		1,240		1,440
Las Vegas Mall A	22		2,231		16		833		1,404
U.S. Retail JV Pool D	28		1,833		508		—		1,353

Las Vegas Mall B	22		2,220		15		979		1,248
Other	1,912		25,951		3,283		10,603		13,977













	3,639		73,647		6,779		29,720		40,787
Associates


Other	183		2,705		109		1,057		1,722
	183		2,705		109		1,057		1,722
Total	$	3,822	$	76,352	$	6,888	$	30,777	$	42,509


	Dec. 31, 2021
(US$ Millions)	Current assets		Non-current assets		Current liabilities		Non-current liabilities		Net assets
Joint ventures
London Mixed-use District	$	1,276	$	13,213	$	1,242	$	6,187	$	7,060
Midtown New York Mixed-use Complex	229		8,434		153		4,231		4,279
U.S. Retail JV Pool A	249		5,763		122		2,269		3,621
Honolulu Shopping Center	131		5,695		52		1,895		3,879
U.S. Retail JV Pool B	353		5,508		231		3,396		2,234
U.S. Retail JV Pool C	52		2,100		44		669		1,439
Bryant Park Office Tower	73		2,593		20		1,238		1,408
Las Vegas Mall A	23		2,538		19		829		1,713
U.S. Retail JV Pool D	40		1,763		49		471		1,283

Las Vegas Mall B	56		1,867		40		974		909














Other	1,827		27,422		1,861		11,866		15,522
	4,309		76,896		3,833		34,025		43,347
Associates


Other	180		1,253		81		796		556
	180		1,253		81		796		556
Total	$	4,489	$	78,149	$	3,914	$	34,821	$	43,903

Summarized financial information in respect of the partnership’s equity accounted investments for the years ended December 31, 2022, 2021 and 2020 is set out below:


	Year ended December 31, 2022
(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 income		Distributions received
Joint ventures
London Mixed-use District	$	582	$	477	$	(61)	$	89	$	133	$	23	$	66	$	—
Midtown New York Mixed-use Complex	282		227		515		91		661		120		370		34
U.S. Retail JV Pool A	343		107		(96)		—		140		1		70		—
Honolulu Shopping Center	261		195		(405)		—		(339)		30		(170)		—
U.S. Retail JV Pool B	467		348		(148)		5		(24)		6		(12)		—
U.S. Retail JV Pool C	152		81		77		—		148		—		74		11
Bryant Park Office Tower	157		88		9		—		78		—		39		20
Las Vegas Mall A	106		56		(321)		—		(271)		—		(135)		8
U.S. Retail JV Pool D	88		46		47		—		89		—		43		4
Las Vegas Mall B	108		69		344		—		383		—		192		1
Other	2,138		1,683		120		42		618		289		285		185














	4,684		3,377		81		227		1,616		469		822		263
Associates
Other	230		244		8		—		(6)		69		4		—


	230		244		8		—		(6)		69		4		—
Total	$	4,914	$	3,621	$	89	$	227	$	1,610	$	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
London Mixed-use District	$	607	$	453	$	60	$	42	$	256	$	2	$	128	$	2
Midtown New York Mixed-use Complex	350		225		101		—		226		72		127		48
U.S. Retail JV Pool A	329		220		92		—		201		—		100		—
Honolulu Shopping Center	241		154		121		—		208		—		104		3
U.S. Retail JV Pool B	458		347		(46)		4		69		—		35		—
U.S. Retail JV Pool C	138		88		(13)		—		37		—		19		2
Bryant Park Office Tower	151		86		47		—		112		—		56		27
Las Vegas Mall A	98		54		63		—		107		—		53		8
U.S. Retail JV Pool D	80		37		121		—		164		—		78		1
Las Vegas Mall B	93		75		61		—		79		—		40		—













Other	1,825		1,576		424		89		762		301		330		81
	4,370		3,315		1,031		135		2,221		375		1,070		172
Associates
Other	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.


	Year ended December 31, 2020
(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
London Mixed-use District	$	619	$	377	$	(713)	$	19	$	(452)	$	(4)	$	(226)	$	4
Honolulu Shopping Center	269		158		(279)		—		(168)		—		(84)		9
Midtown New York Mixed-use Complex	259		179		379		—		459		(75)		257		221
U.S. Retail JV Pool A	353		230		(543)		—		(420)		—		(210)		—
U.S. Retail JV Pool B	483		356		(601)		4		(470)		—		(240)		—
Las Vegas Mall A	103		56		(46)		—		1		—		—		8
U.S. Retail JV Pool C	145		80		(222)		—		(157)		—		(78)		6
Bryant Park Office Tower	108		95		121		—		134		—		67		123
U.S. Retail JV Pool D	71		36		(203)		17		(151)		—		(72)		3
Las Vegas Mall B	92		84		(18)		—		(10)		—		(5)		—












Other	1,766		1,299		(480)		44		31		(28)		(68)		244
	4,268		2,950		(2,605)		84		(1,203)		(107)		(659)		618
Associates
Other	92		186		(39)		(2)		(135)		(939)		(90)		—


	92		186		(39)		(2)		(135)		(939)		(90)		—
Total	$	4,360	$	3,136	$	(2,644)	$	82	$	(1,338)	$	(1,046)	$	(749)	$	618

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

Certain of the partnership’s investment in joint ventures and associates are subject to restrictions over the extent to which they can remit funds to the partnership in the form of the cash dividends or repayments of loans and advances as a result of borrowing arrangements, regulatory restrictions and other contractual requirements.