| SEGMENT INFORMATION |
SEGMENT INFORMATION a)Operating segments IFRS 8, Operating Segments, requires operating segments to be determined based on internal reports that are regularly reviewed by the chief operating decision maker (“CODM”) for the purpose of allocating resources to the segment and to assessing its performance. The partnership’s operating segments are organized into four reportable segments: i) Office, ii) Retail, iii) LP Investments and iv) Corporate. This is consistent with how the partnership presents financial information to the CODM. These segments are independently and regularly reviewed and managed by the Chief Executive Officer, who is considered the CODM. b)Basis of measurement The CODM measures and evaluates the performance of the partnership’s operating segments based on funds from operations (“FFO”).
The partnership defines FFO as net income, prior to fair value gains, net, depreciation and amortization of real estate assets, and income taxes less non-controlling interests of others in operating subsidiaries and properties share of these items. When determining FFO, the partnership also includes its proportionate share of the FFO of unconsolidated partnerships and joint ventures and associates.
c)Reportable segment measures The following summaries present certain financial information regarding the partnership’s operating segments for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | (US$ Millions) | Total revenue | FFO | | Three months ended Jun. 30, | 2026 | 2025 | 2026 | 2025 | | Office | $ | 439 | | $ | 445 | | $ | (38) | | $ | (33) | | | Retail | 360 | | 364 | | 100 | | 89 | | | LP Investments | 1,040 | | 958 | | 52 | | 11 | | | Corporate | 47 | | 35 | | (199) | | (211) | | | Total | $ | 1,886 | | $ | 1,802 | | $ | (85) | | $ | (144) | |
| | | | | | | | | | | | | | | | (US$ Millions) | Total revenue | FFO | | Six months ended Jun. 30, | 2026 | 2025 | 2026 | 2025 | | Office | $ | 918 | | $ | 920 | | $ | (49) | | $ | (18) | | | Retail | 715 | | 730 | | 167 | | 168 | | | LP Investments | 1,853 | | 1,829 | | 79 | | 21 | | | Corporate | 85 | | 72 | | (413) | | (428) | | | Total | $ | 3,571 | | $ | 3,551 | | $ | (216) | | $ | (257) | |
The following summaries present the detail of total revenue from the partnership’s operating segments for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | (US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | | Three months ended Jun. 30, 2026 | | Office | $ | 258 | | $ | 109 | | $ | 8 | | $ | 64 | | $ | 439 | | | Retail | 259 | | 64 | | — | | 37 | | 360 | | | LP Investments | 302 | | 46 | | 603 | | 89 | | 1,040 | | | Corporate | — | | — | | — | | 47 | | 47 | | | Total | $ | 819 | | $ | 219 | | $ | 611 | | $ | 237 | | $ | 1,886 | |
| | | | | | | | | | | | | | | | | | | (US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | | Three months ended Jun. 30, 2025 | | Office | $ | 286 | | $ | 106 | | $ | 7 | | $ | 46 | | $ | 445 | | | Retail | 267 | | 64 | | — | | 33 | | 364 | | | LP Investments | 355 | | 65 | | 405 | | 133 | | 958 | | | Corporate | — | | — | | — | | 35 | | 35 | | | Total | $ | 908 | | $ | 235 | | $ | 412 | | $ | 247 | | $ | 1,802 | |
| | | | | | | | | | | | | | | | | | | (US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | | Six months ended Jun. 30, 2026 | | Office | $ | 575 | | $ | 217 | | $ | 15 | | $ | 111 | | $ | 918 | | | Retail | 526 | | 123 | | — | | 66 | | 715 | | | LP Investments | 618 | | 100 | | 994 | | 141 | | 1,853 | | | Corporate | — | | — | | — | | 85 | | 85 | | | Total | $ | 1,719 | | $ | 440 | | $ | 1,009 | | $ | 403 | | $ | 3,571 | |
| | | | | | | | | | | | | | | | | | | (US$ Millions) | Lease revenue | Other revenue from tenants | Hospitality revenue | Investment and other revenue | Total revenue | | Six months ended Jun. 30, 2025 | | Office | $ | 603 | | $ | 210 | | $ | 14 | | $ | 93 | | $ | 920 | | | Retail | 535 | | 127 | | — | | 68 | | 730 | | | LP Investments | 785 | | 147 | | 733 | | 164 | | 1,829 | | | Corporate | — | | — | | — | | 72 | | 72 | | | Total | $ | 1,923 | | $ | 484 | | $ | 747 | | $ | 397 | | $ | 3,551 | |
The following summaries present certain consolidated income statement items from the partnership’s operating segments for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | (US$ Millions) | Direct commercial property expense | Direct hospitality expense | | Three months ended Jun. 30, | 2026 | 2025 | 2026 | 2025 | | Office | $ | 186 | | $ | 196 | | $ | 5 | | $ | 5 | | | Retail | 101 | | 104 | | — | | — | | | LP Investments | 139 | | 174 | | 454 | | 286 | | | Corporate | 4 | | — | | — | | — | | | Total | $ | 430 | | $ | 474 | | $ | 459 | | $ | 291 | |
| | | | | | | | | | | | | | | | (US$ Millions) | Direct commercial property expense | Direct hospitality expense | | Six months ended Jun. 30, | 2026 | 2025 | 2026 | 2025 | | Office | $ | 386 | | $ | 382 | | $ | 11 | | $ | 11 | | | Retail | 217 | | 204 | | — | | — | | | LP Investments | 303 | | 376 | | 758 | | 561 | | | Corporate | 4 | | — | | — | | — | | | Total | $ | 910 | | $ | 962 | | $ | 769 | | $ | 572 | |
| | | | | | | | | | | | | | | | (US$ Millions) | Share of net earnings from equity accounted investments | Interest expense | | Three months ended Jun. 30, | 2026 | 2025 | 2026 | 2025 | | Office | $ | 190 | | $ | 43 | | $ | (199) | | $ | (193) | | | Retail | 120 | | 107 | | (158) | | (182) | | | LP Investments | 21 | | 42 | | (436) | | (391) | | | Corporate | — | | — | | (86) | | (92) | | | Total | $ | 331 | | $ | 192 | | $ | (879) | | $ | (858) | |
| | | | | | | | | | | | | | | | (US$ Millions) | Share of net earnings from equity accounted investments | Interest expense | | Six months ended Jun. 30, | 2026 | 2025 | 2026 | 2025 | | Office | $ | 306 | | $ | 104 | | $ | (395) | | $ | (379) | | | Retail | 256 | | 224 | | (332) | | (367) | | | LP Investments | 48 | | 90 | | (813) | | (857) | | | Corporate | — | | — | | (165) | | (195) | | | Total | $ | 610 | | $ | 418 | | $ | (1,705) | | $ | (1,798) | |
The following summary presents information about certain consolidated balance sheet items of the partnership, on a segmented basis, as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | Total assets | Total liabilities | Equity accounted investments | | (US$ Millions) | Jun. 30, 2026 | Dec. 31, 2025 | Jun. 30, 2026 | Dec. 31, 2025 | Jun. 30, 2026 | Dec. 31, 2025 | | Office | $ | 29,297 | | $ | 30,538 | | $ | 14,070 | | $ | 15,454 | | $ | 8,476 | | $ | 8,387 | | | Retail | 30,844 | | 30,617 | | 9,890 | | 10,972 | | 10,543 | | 10,261 | | | LP Investments | 40,526 | | 37,007 | | 29,352 | | 25,099 | | 3,827 | | 2,596 | | | Corporate | 1,491 | | 1,118 | | 6,215 | | 5,181 | | — | | — | | | Total | $ | 102,158 | | $ | 99,280 | | $ | 59,527 | | $ | 56,706 | | $ | 22,846 | | $ | 21,244 | |
The following summary presents a reconciliation of FFO to net loss for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | Three months ended Jun. 30, | Six months ended Jun. 30, | | (US$ Millions) | 2026 | 2025 | 2026 | 2025 | FFO(1) | $ | (85) | | $ | (144) | | $ | (216) | | $ | (257) | | | Depreciation and amortization of real estate assets | (84) | | (49) | | (139) | | (97) | | Fair value gains (losses), net | 56 | | 47 | | 123 | | (63) | | Share of equity accounted earnings - non-FFO | 193 | | 72 | | 331 | | 169 | | Income tax expense | (59) | | (30) | | (165) | | (19) | | | Non-controlling interests of others in operating subsidiaries and properties – non-FFO | (84) | | (211) | | (172) | | (267) | | Net loss attributable to unitholders(2) | (63) | | (315) | | (238) | | (534) | | | Non-controlling interests of others in operating subsidiaries and properties | 125 | | 269 | | 255 | | 359 | | Net income (loss) | $ | 62 | | $ | (46) | | $ | 17 | | $ | (175) | |
(1)FFO represents interests attributable to GP Units, LP Units, REUs, Special LP Units and FV LTIP Units. The interests attributable to REUs, Special LP Units and FV LTIP Units are presented as non-controlling interests in the consolidated income statements. (2)Includes net income attributable to GP Units, LP Units, REUs, Special LP Units and FV LTIP Units. The interests attributable to REUs, Special LP Units and FV LTIP Units are presented as non-controlling interests in the consolidated income statements.
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