INVESTMENT PROPERTIES (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Roll Forward of Investment Property Balances

The following table presents a roll forward of the partnership’s investment property balances, all of which are considered Level 3 within the fair value hierarchy, for the six months ended June 30, 2026 and the year ended December 31, 2025:


	Six months ended Jun. 30, 2026						Year ended Dec. 31, 2025
(US$ Millions)	Commercial properties		Commercial developments		Total		Commercial properties		Commercial developments		Total
Balance, beginning of period	$	54,672	$	2,262	$	56,934	$	60,093	$	1,985	$	62,078
Changes resulting from:
Property acquisitions	3,908		21		3,929		2,977		229		3,206
Acquisitions from business combinations(1)	—		—		—		361		—		361
Capital expenditures	258		173		431		710		410		1,120

Property dispositions(2)	(827)		—		(827)		(2,501)		(38)		(2,539)
Fair value gains (losses), net	145		78		223		(318)		155		(163)
Foreign currency translation	(281)		(10)		(291)		846		68		914
Transfers between commercial properties and commercial developments	1,275		(1,275)		—		414		(414)		—
Deconsolidation of India REIT(3)	—		—		—		(3,485)		(128)		(3,613)
Reclassification to assets held for sale and other changes	(664)		—		(664)		(4,425)		(5)		(4,430)
Reclassification of Opportunistic Fund Investments to assets held for sale(4)	(12,151)		(601)		(12,752)		—		—		—
Deconsolidation of South Korea Mixed-use(5)	(2,824)		—		(2,824)		—		—		—
Balance, end of period(6)	$	43,511	$	648	$	44,159	$	54,672	$	2,262	$	56,934

(1)Includes commercial properties acquired through business combinations during the period. See Note 3, Business Combinations, for more information.

(2)Property dispositions represent the carrying value on the date of sale.

(3)In the first quarter of 2025, the partnership sold a partial interest in Brookfield India Real Estate Trust (“India REIT”), resulting in a loss of control and deconsolidation of this investment. The partnership’s retained interest is now accounted for under the equity method (“Deconsolidation of India REIT”).

(4)See Note 29, Related Parties for further information on the Reclassification of Opportunistic Fund Investments to assets held for sale.

(5)The partnership recapitalized a mixed-use portfolio in South Korea in the Brookfield Strategic Real Estate Partners (“BSREP”) II fund for total commitments of approximately $826 million, including an approximately $100 million investment from the partnership. The recapitalization resulted in a loss of control and deconsolidation of this investment. The partnership’s retained interest is now accounted for under the equity method (“South Korea Mixed-use”).

(6)Includes right-of-use assets related to commercial properties and commercial developments of $730 million and nil, respectively, as of June 30, 2026 (December 31, 2025 - $903 million and $24 million). Current lease liabilities of $163 million (December 31, 2025 - $162 million) have been included in accounts payable and other liabilities, and non-current lease liabilities of $567 million (December 31, 2025 - $717 million) have been included in other non-current liabilities.

Schedule of Key Valuation Metrics for Investment Properties

The key valuation metrics for the partnership’s consolidated commercial properties are set forth in the following tables below on a weighted-average basis:


		Jun. 30, 2026					Dec. 31, 2025
Consolidated properties	Primary valuation method	Discount rate		Terminal capitalization rate		Investment horizon (years)	Discount rate		Terminal capitalization rate		Investment horizon (years)
Office(1)	Discounted cash flow	6.7	%	5.4	%	10	6.7	%	5.6	%	11





Retail(2)	Discounted cash flow	7.0	%	5.4	%	10	7.1	%	5.4	%	10
LP Investments(3)(4)	Discounted cash flow	9.2	%	6.8	%	9	9.3	%	5.8	%	8

(1)Included in the partnership's total Office portfolio are 16 Super Core office and mixed-use complexes in key global markets with a weighted-average discount rate of 6.7% (December 31, 2025 - 6.8%).

(2)Included in the partnership's total Retail portfolio are 18 Super Core retail centers with a weighted-average discount rate of 6.2% (December 31, 2025 - 6.2%).

(3)The valuation method used to value multifamily properties is the direct capitalization method. At June 30, 2026, the overall implied capitalization rate used for properties using the direct capitalization method was 5.1% (December 31, 2025 - 5.2%) except for certain multifamily investments valued using the discounted cash flow method.

(4)Excludes assets reclassified to held for sale and deconsolidated during the period. See Note 29, Related Parties for further information on the Reclassification of Opportunistic Fund Investments to assets held for sale and the Deconsolidation of South Korea Mixed-use.

Schedule of Investment Properties Measured at Fair Value

The following table presents the partnership’s investment properties measured at fair value in the condensed consolidated financial statements and the level of the inputs used to determine those fair values in the context of the hierarchy as defined in Note 2(h) in the consolidated financial statements as of December 31, 2025:


	Jun. 30, 2026								Dec. 31, 2025
					Level 3								Level 3
(US$ Millions)	Level 1		Level 2		Commercial properties		Commercial developments		Level 1		Level 2		Commercial properties		Commercial developments
Office	$	—	$	—	$	18,242	$	363	$	—	$	—	$	18,114	$	1,460





Retail	—		—		18,500		45		—		—		18,712		45
LP Investments	—		—		6,769		240		—		—		17,846		757










Total	$	—	$	—	$	43,511	$	648	$	—	$	—	$	54,672	$	2,262

The following table presents the change in the balance of financial assets and financial liabilities accounted for at fair value categorized as Level 3 as of June 30, 2026 and December 31, 2025:


	Jun. 30, 2026				Dec. 31, 2025
(US$ Millions)	Financial assets		Financial liabilities		Financial assets		Financial liabilities
Balance, beginning of period	$	1,903	$	81	$	2,508	$	208
Acquisitions		99		—		279		—
Dispositions		(51)		—		(627)		(3)
Fair value losses gains, net and OCI		(69)		—		(257)		(158)
Reclassification of Opportunistic Fund Investments to assets and liabilities held for sale(1)		(5)		(81)		—		—
Other		—		—		—		34
Balance, end of period	$	1,877	$	—	$	1,903	$	81

(1)See Note 29, Related Parties for further information on the Reclassification of Opportunistic Fund Investments.

Schedule of Sensitivity Analysis

The following table presents a sensitivity analysis to the impact of a 25-basis point (“bps”) increase of the discount rate and terminal capitalization or overall implied capitalization rate (“ICR”) on fair values of the partnership’s commercial properties as of June 30, 2026, for properties valued using the discounted cash flow or direct capitalization method, respectively:


	Jun. 30, 2026
(US$ Millions)	Impact of +25bps DR		Impact of +25bps TCR		Impact of +25bps DR and +25bps TCR or +25bps ICR
Office	$	387	$	601	$	973





Retail	463		680		1,028
LP Investments(1)	84		115		253









Total	$	934	$	1,396	$	2,254

(1) The valuation method used to value multifamily properties is the direct capitalization method except for certain multifamily investments valued using the discounted cash flow method. The impact of the sensitivity analysis on the discount rate includes properties valued using the DCF method as well as properties valued using an overall implied capitalization rate under the direct capitalization method.