v3.26.3
Reportable Segments
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Reportable Segments

NOTE 11. 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.

 

•
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 September 30, 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 excluding non-segment items; (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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,086,324

 

 

$

1,959,698

 

 

$

6,161,998

 

 

$

5,814,191

 

Other Americas

 

 

56,876

 

 

 

48,973

 

 

 

168,822

 

 

 

141,209

 

Europe

 

 

39,768

 

 

 

36,833

 

 

 

115,772

 

 

 

95,226

 

Asia

 

 

40,224

 

 

 

18,026

 

 

 

97,344

 

 

 

48,137

 

Total real estate segment

 

 

2,223,192

 

 

 

2,063,530

 

 

 

6,543,936

 

 

 

6,098,763

 

Strategic capital segment:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

60,149

 

 

 

51,005

 

 

 

170,112

 

 

 

149,083

 

Other Americas

 

 

25,587

 

 

 

22,154

 

 

 

153,387

 

 

 

65,933

 

Europe

 

 

60,910

 

 

 

54,167

 

 

 

184,825

 

 

 

159,247

 

Asia

 

 

17,680

 

 

 

23,025

 

 

 

58,433

 

 

 

64,389

 

Total strategic capital segment

 

 

164,326

 

 

 

150,351

 

 

 

566,757

 

 

 

438,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

2,387,518

 

 

 

2,213,881

 

 

 

7,110,693

 

 

 

6,537,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

(482,791

)

 

 

(459,261

)

 

 

(1,470,332

)

 

 

(1,394,588

)

Other Americas

 

 

(11,509

)

 

 

(10,073

)

 

 

(37,061

)

 

 

(28,255

)

Europe

 

 

(16,828

)

 

 

(18,387

)

 

 

(58,818

)

 

 

(51,814

)

Asia

 

 

(17,544

)

 

 

(5,638

)

 

 

(43,894

)

 

 

(16,337

)

Total real estate segment

 

 

(528,672

)

 

 

(493,359

)

 

 

(1,610,105

)

 

 

(1,490,994

)

Strategic capital segment:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

(40,303

)

 

 

(34,290

)

 

 

(134,233

)

 

 

(93,331

)

Other Americas

 

 

(7,250

)

 

 

(6,066

)

 

 

(20,363

)

 

 

(15,599

)

Europe

 

 

(24,341

)

 

 

(18,149

)

 

 

(70,638

)

 

 

(53,797

)

Asia

 

 

(12,308

)

 

 

(10,765

)

 

 

(36,447

)

 

 

(32,237

)

Total strategic capital segment

 

 

(84,202

)

 

 

(69,270

)

 

 

(261,681

)

 

 

(194,964

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

 

(612,874

)

 

 

(562,629

)

 

 

(1,871,786

)

 

 

(1,685,958

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment net operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

1,603,533

 

 

 

1,500,437

 

 

 

4,691,666

 

 

 

4,419,603

 

Other Americas

 

 

45,367

 

 

 

38,900

 

 

 

131,761

 

 

 

112,954

 

Europe

 

 

22,940

 

 

 

18,446

 

 

 

56,954

 

 

 

43,412

 

Asia

 

 

22,680

 

 

 

12,388

 

 

 

53,450

 

 

 

31,800

 

Total real estate segment

 

 

1,694,520

 

 

 

1,570,171

 

 

 

4,933,831

 

 

 

4,607,769

 

Strategic capital segment:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

19,846

 

 

 

16,715

 

 

 

35,879

 

 

 

55,752

 

Other Americas

 

 

18,337

 

 

 

16,088

 

 

 

133,024

 

 

 

50,334

 

Europe

 

 

36,569

 

 

 

36,018

 

 

 

114,187

 

 

 

105,450

 

Asia

 

 

5,372

 

 

 

12,260

 

 

 

21,986

 

 

 

32,152

 

Total strategic capital segment

 

 

80,124

 

 

 

81,081

 

 

 

305,076

 

 

 

243,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment net operating income

 

 

1,774,644

 

 

 

1,651,252

 

 

 

5,238,907

 

 

 

4,851,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-segment items:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

(127,597

)

 

 

(110,662

)

 

 

(384,113

)

 

 

(332,234

)

Depreciation and amortization expenses

 

 

(710,300

)

 

 

(647,999

)

 

 

(2,131,324

)

 

 

(1,957,278

)

Gains on dispositions of development properties and land, net

 

 

51,538

 

 

 

15,435

 

 

 

423,717

 

 

 

53,363

 

Gains on other dispositions of investments in real estate, net

 

 

56,435

 

 

 

32,235

 

 

 

359,924

 

 

 

116,078

 

Operating income

 

 

1,044,720

 

 

 

940,261

 

 

 

3,507,111

 

 

 

2,731,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

155,417

 

 

 

92,827

 

 

 

396,183

 

 

 

268,418

 

Interest expense

 

 

(286,955

)

 

 

(258,274

)

 

 

(817,552

)

 

 

(741,891

)

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

 

 

64,535

 

 

 

100,981

 

 

 

218,809

 

 

 

(53,506

)

Gains (losses) on early extinguishment of debt, net

 

 

144

 

 

 

-

 

 

 

(1,777

)

 

 

-

 

Earnings before income taxes

 

$

977,861

 

 

$

875,795

 

 

$

3,302,774

 

 

$

2,204,407

 

 

 

 

 

September 30,
2026

 

 

December 31,
2025

 

Segment assets:

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

U.S.

 

$

79,483,679

 

 

$

77,986,597

 

Other Americas

 

 

3,231,828

 

 

 

3,215,779

 

Europe

 

 

3,071,604

 

 

 

3,218,384

 

Asia

 

 

1,973,316

 

 

 

1,100,273

 

Total real estate segment

 

 

87,760,427

 

 

 

85,521,033

 

Strategic capital segment: (2)

 

 

 

 

 

 

U.S.

 

 

5,939

 

 

 

6,893

 

Europe

 

 

25,280

 

 

 

25,280

 

Asia

 

 

292

 

 

 

307

 

Total strategic capital segment

 

 

31,511

 

 

 

32,480

 

Total segment assets

 

 

87,791,938

 

 

 

85,553,513

 

 

 

 

 

 

 

 

Non-segment items:

 

 

 

 

 

 

Investments in and advances to unconsolidated entities

 

 

11,505,548

 

 

 

11,093,936

 

Assets held for sale or contribution

 

 

545,788

 

 

 

203,344

 

Cash and cash equivalents

 

 

2,273,497

 

 

 

1,145,647

 

Other assets

 

 

1,777,935

 

 

 

727,816

 

Total non-segment items

 

 

16,102,768

 

 

 

13,170,743

 

Total assets

 

$

103,894,706

 

 

$

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 September 30, 2026 and December 31, 2025.