XML 48 R22.htm IDEA: XBRL DOCUMENT v3.26.1
Reportable Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Reportable Segments

NOTE 10. REPORTABLE SEGMENTS

 

Our current business strategy includes two reportable segments: Real Estate (Rental Operations and Development) and Strategic Capital. We generate revenues, earnings, net operating income and cash flows through our segments, as follows:

 

•
Real Estate Segment. This reportable segment represents the ownership and development of operating properties and is the largest component of our revenue and earnings. We collect rent from our customers through operating leases, including reimbursements for the majority of our property operating costs. The Real Estate Segment also includes development activities that lead to rental operations, including land held for development and properties currently under development, and other real estate investments, including renewable energy assets.

 

•
Strategic Capital Segment. This reportable segment represents the management of unconsolidated co-investment ventures. We generate strategic capital revenues primarily from our unconsolidated co-investment ventures through asset management and property management services and we earn additional revenues by providing leasing, acquisition, construction, development, financing and disposition services. Depending on the structure of the venture and the returns provided to our partners, we also earn revenues through promotes periodically during the life of a venture or upon liquidation.

 

Our management Executive Committee (“EC”) is our Chief Operating Decision Maker (“CODM”) and regularly reviews operating results and makes strategic and operating decisions with regards to assessing performance and allocating resources based on our two reportable segments. At March 31, 2026, the EC consisted of the Chief Executive Officer; Chief Operating Officer; Chief Financial Officer; Chief Development Officer; Chief Legal Officer and General Counsel; Chief Administrative Officer/Chief Human Resources Officer; Chief Energy and Sustainability Officer and Managing Director, Strategic Capital. The operating results reviewed by the EC include net operating income (“NOI”), the measure most consistent with U.S. GAAP.

 

NOI from the Real Estate Segment is calculated directly from the Consolidated Statements of Income as Rental Revenues and Development Management and Other Revenues less Rental Expenses and Other Expenses.

 

NOI from the Strategic Capital Segment is calculated directly from the Consolidated Statements of Income as Strategic Capital Revenues less Strategic Capital Expenses.

 

Our EC analyzes the NOI of each reportable segment on a quarterly basis comparing actuals to prior period actuals, along with forecasted future amounts and utilizes operating metrics to understand and evaluate the performance of our operations and to allocate resources.

 

Below we present: (i) each reportable segment’s revenues from external customers to Total Revenues; (ii) each reportable segment’s expenses to Total Expenses; (iii) each reportable segment’s net operating income from external customers, calculated as each reportable segment's revenues less segment expenses, to Operating Income and Earnings Before Income Taxes; and (iv) each reportable segment’s assets to Total Assets.

 

The applicable components of Total Revenues, Total Expenses, Operating Income, Earnings Before Income Taxes and Total Assets in the Consolidated Financial Statements are allocated to each reportable segment’s revenues, expenses, net operating income and assets.

 

Items that are not directly assignable to a reportable segment, are not allocated but reflected as non-segment items (general and administrative expenses and real estate adjustments for depreciation and gains and losses on contributions and sales) due to how our CODM utilizes segment information for planning and execution of our business strategy.

 

The following reportable segment net operating income and assets are presented in thousands:

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

U.S.

 

$

2,020,207

 

 

$

1,913,893

 

Other Americas

 

 

55,317

 

 

 

46,323

 

Europe

 

 

40,447

 

 

 

25,427

 

Asia

 

 

20,940

 

 

 

12,883

 

Total real estate segment

 

 

2,136,911

 

 

 

1,998,526

 

Strategic capital segment:

 

 

 

 

 

 

U.S.

 

 

54,054

 

 

 

48,368

 

Other Americas

 

 

26,355

 

 

 

21,174

 

Europe

 

 

58,852

 

 

 

51,011

 

Asia

 

 

21,551

 

 

 

20,586

 

Total strategic capital segment

 

 

160,812

 

 

 

141,139

 

 

 

 

 

 

 

 

Total revenues

 

 

2,297,723

 

 

 

2,139,665

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

U.S. (1)

 

 

(490,025

)

 

 

(471,212

)

Other Americas

 

 

(12,156

)

 

 

(8,327

)

Europe

 

 

(18,690

)

 

 

(13,533

)

Asia

 

 

(9,535

)

 

 

(4,894

)

Total real estate segment

 

 

(530,406

)

 

 

(497,966

)

Strategic capital segment:

 

 

 

 

 

 

U.S. (1)

 

 

(39,103

)

 

 

(28,533

)

Other Americas

 

 

(6,775

)

 

 

(2,982

)

Europe

 

 

(23,355

)

 

 

(17,577

)

Asia

 

 

(12,656

)

 

 

(11,685

)

Total strategic capital segment

 

 

(81,889

)

 

 

(60,777

)

 

 

 

 

 

 

 

Total expenses

 

 

(612,295

)

 

 

(558,743

)

 

 

 

 

 

 

 

Segment net operating income:

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

U.S. (1)

 

 

1,530,182

 

 

 

1,442,681

 

Other Americas

 

 

43,161

 

 

 

37,996

 

Europe

 

 

21,757

 

 

 

11,894

 

Asia

 

 

11,405

 

 

 

7,989

 

Total real estate segment

 

 

1,606,505

 

 

 

1,500,560

 

Strategic capital segment:

 

 

 

 

 

 

U.S. (1)

 

 

14,951

 

 

 

19,835

 

Other Americas

 

 

19,580

 

 

 

18,192

 

Europe

 

 

35,497

 

 

 

33,434

 

Asia

 

 

8,895

 

 

 

8,901

 

Total strategic capital segment

 

 

78,923

 

 

 

80,362

 

 

 

 

 

 

 

 

Total segment net operating income

 

 

1,685,428

 

 

 

1,580,922

 

 

 

 

 

 

 

 

Non-segment items:

 

 

 

 

 

 

General and administrative expenses

 

 

(126,890

)

 

 

(114,701

)

Depreciation and amortization expenses

 

 

(731,506

)

 

 

(652,058

)

Gains on dispositions of development properties and land, net

 

 

292,983

 

 

 

27,451

 

Gains on other dispositions of investments in real estate, net

 

 

91,040

 

 

 

36,799

 

Operating income

 

 

1,211,055

 

 

 

878,413

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

93,296

 

 

 

67,899

 

Interest expense

 

 

(254,286

)

 

 

(231,751

)

Foreign currency, derivative and other gains (losses) and other income (expense), net

 

 

44,611

 

 

 

(31,658

)

Gains (losses) on early extinguishment of debt, net

 

 

(1,890

)

 

 

-

 

Earnings before income taxes

 

$

1,092,786

 

 

$

682,903

 

 

 

 

 

March 31,
2026

 

 

December 31,
2025

 

Segment assets:

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

U.S.

 

$

77,487,439

 

 

$

77,986,597

 

Other Americas

 

 

3,264,088

 

 

 

3,215,779

 

Europe

 

 

3,002,989

 

 

 

3,218,384

 

Asia

 

 

1,000,400

 

 

 

1,100,273

 

Total real estate segment

 

 

84,754,916

 

 

 

85,521,033

 

Strategic capital segment: (2)

 

 

 

 

 

 

U.S.

 

 

6,576

 

 

 

6,893

 

Europe

 

 

25,280

 

 

 

25,280

 

Asia

 

 

296

 

 

 

307

 

Total strategic capital segment

 

 

32,152

 

 

 

32,480

 

Total segment assets

 

 

84,787,068

 

 

 

85,553,513

 

 

 

 

 

 

 

 

Non-segment items:

 

 

 

 

 

 

Investments in and advances to unconsolidated entities

 

 

11,241,723

 

 

 

11,093,936

 

Assets held for sale or contribution

 

 

499,799

 

 

 

203,344

 

Cash and cash equivalents

 

 

861,144

 

 

 

1,145,647

 

Other assets

 

 

743,717

 

 

 

727,816

 

Total non-segment items

 

 

13,346,383

 

 

 

13,170,743

 

Total assets

 

$

98,133,451

 

 

$

98,724,256

 

 

(1)
This includes compensation and personnel costs for employees who were located in the U.S. but also support other geographies.

 

(2)
Represents management contracts and goodwill recorded in connection with business combinations associated with the Strategic Capital Segment. Goodwill was $25.3 million at March 31, 2026 and December 31, 2025.