Howard Hughes Holdings Inc.HHH
Howard Hughes Holdings Inc. Segments Disclosure
19. Segments | ||
The Company has three business segments, Operating Assets, MPC, and Strategic Developments, which are organized based on the different products and services that each segment offers, and are separately managed as each requires different operating strategies or management expertise reflective of management’s operating philosophies and methods. The Company’s segments or assets within such segments could change in the future as development of certain properties commences or other operational or management changes occur. All operations are within the United States.
Activity within each of the Company’s reportable segments is as follows:
–Operating Assets – consists of developed or acquired retail, office, and multifamily properties along with other real estate investments. These properties are currently generating rental revenues and may be redeveloped, repositioned, or sold to improve segment performance or to recycle capital.
–MPC – consists of the development and sale of land in large‑scale, long‑term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. Revenues are primarily generated through the sale of residential and commercial land to homebuilders and developers.
–Strategic Developments – consists of residential condominium and commercial property projects currently under development and all other properties held for development which have no substantial operations. Revenues are primarily generated from the sale of condominium units.
The Chief Operating Decision Maker (CODM), which is the Company’s Chief Executive Officer, may use different operating measures to assess operating results and allocate resources among the three segments, however the measure that is most consistent with the amounts included in the consolidated financial statements is earnings before taxes (EBT). EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments. The CODM utilizes EBT to evaluate the current financial performance and project the future financial performance of each segment to determine the allocation of capital resources. This measure is also used to evaluate the need for operational adjustments, such as adjustments to prices, cost structures, and product mix necessary to achieve profitability targets.
Segment EBT is as follows for the years ended December 31:
| thousands | Operating Assets Segment | MPC Segment | Strategic Developments Segment | ||||||||
| Year Ended December 31, 2025 | |||||||||||
| Total revenues | $ | 465,568 | $ | 634,856 | $ | 374,363 | |||||
| Condominium rights and unit cost of sales | — | — | (369,408) | ||||||||
| Master Planned Communities cost of sales | — | (188,704) | — | ||||||||
| Operating costs | (145,464) | (45,298) | (22,490) | ||||||||
| Rental property real estate taxes | (58,577) | — | (2,191) | ||||||||
| (Provision for) recovery of doubtful accounts | (232) | — | — | ||||||||
| Segment operating income (loss) | 261,295 | 400,854 | (19,726) | ||||||||
| Depreciation and amortization | (172,835) | (408) | (6,579) | ||||||||
| Interest income (expense), net | (136,637) | 75,160 | 18,851 | ||||||||
| Other income (loss), net | 2,266 | 120 | (18,487) | ||||||||
| Equity in earnings (losses) from unconsolidated ventures | 4,829 | (3,374) | 317 | ||||||||
| Gain (loss) on sale or disposal of real estate and other assets, net | 14,354 | 3,750 | 11,721 | ||||||||
| Gain (loss) on extinguishment of debt | (698) | — | — | ||||||||
| Segment EBT | $ | (27,426) | $ | 476,102 | $ | (13,903) | |||||
| Year Ended December 31, 2024 | |||||||||||
| Total revenues | $ | 444,300 | $ | 522,925 | $ | 783,396 | |||||
| Condominium rights and unit cost of sales | — | — | (582,574) | ||||||||
| Master Planned Communities cost of sales | — | (169,191) | — | ||||||||
| Operating costs | (138,172) | (52,736) | (17,670) | ||||||||
| Rental property real estate taxes | (55,915) | — | (2,480) | ||||||||
| (Provision for) recovery of doubtful accounts | (504) | — | — | ||||||||
| Segment operating income (loss) | 249,709 | 300,998 | 180,672 | ||||||||
| Depreciation and amortization | (169,040) | (438) | (7,255) | ||||||||
| Interest income (expense), net | (138,207) | 60,473 | 18,603 | ||||||||
| Other income (loss), net | 822 | — | 90,534 | ||||||||
| Equity in earnings (losses) from unconsolidated ventures | 5,819 | (11,899) | 251 | ||||||||
| Gain (loss) on sale or disposal of real estate and other assets, net | 22,907 | — | — | ||||||||
| Gain (loss) on extinguishment of debt | (465) | — | — | ||||||||
| Segment EBT | $ | (28,455) | $ | 349,134 | $ | 282,805 | |||||
| Year Ended December 31, 2023 | |||||||||||
| Total revenues | $ | 410,254 | $ | 448,452 | $ | 49,987 | |||||
| Condominium rights and unit cost of sales | — | — | (55,417) | ||||||||
| Master Planned Communities cost of sales | — | (140,050) | — | ||||||||
| Operating costs | (130,125) | (53,420) | (21,908) | ||||||||
| Rental property real estate taxes | (52,502) | — | (3,147) | ||||||||
| (Provision for) recovery of doubtful accounts | 2,762 | — | — | ||||||||
| Segment operating income (loss) | 230,389 | 254,982 | (30,485) | ||||||||
| Depreciation and amortization | (161,138) | (418) | (3,963) | ||||||||
| Interest income (expense), net | (125,197) | 64,291 | 16,074 | ||||||||
| Other income (loss), net | 2,092 | (102) | 690 | ||||||||
| Equity in earnings (losses) from unconsolidated ventures | 2,968 | 22,666 | 142 | ||||||||
| Gain (loss) on sale or disposal of real estate and other assets, net | 23,926 | — | 236 | ||||||||
| Gain (loss) on extinguishment of debt | (97) | — | — | ||||||||
| Segment EBT | $ | (27,057) | $ | 341,419 | $ | (17,306) | |||||
The following represents the reconciliation of segment EBT to Net income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations for the years ended December 31:
| thousands | 2025 | 2024 | 2023 | ||||||||||||||
| Operating Assets EBT | $ | (27,426) | $ | (28,455) | $ | (27,057) | |||||||||||
| MPC EBT | 476,102 | 349,134 | 341,419 | ||||||||||||||
| Strategic Developments EBT | (13,903) | 282,805 | (17,306) | ||||||||||||||
| General and administrative expenses | (122,240) | (91,752) | (86,671) | ||||||||||||||
| Gain (loss) on sale of MUD receivables | (48,197) | (48,651) | — | ||||||||||||||
| Corporate interest expense, net | (80,307) | (80,446) | (87,243) | ||||||||||||||
| Corporate income, expenses, and other items | (22,570) | (17,236) | (13,314) | ||||||||||||||
| Net income (loss) from continuing operations before income taxes | $ | 161,459 | $ | 365,399 | $ | 109,828 | |||||||||||
The following represents the reconciliation of segment revenue to Total revenues in the Consolidated Statements of Operations for the years ended December 31:
| thousands | 2025 | 2024 | 2023 | ||||||||||||||
| Operating Assets revenue | $ | 465,568 | $ | 444,300 | $ | 410,254 | |||||||||||
| MPC revenue | 634,856 | 522,925 | 448,452 | ||||||||||||||
| Strategic Developments revenue | 374,363 | 783,396 | 49,987 | ||||||||||||||
| Corporate income | 105 | 68 | 60 | ||||||||||||||
| Total revenues | $ | 1,474,892 | $ | 1,750,689 | $ | 908,753 | |||||||||||
The following represents asset information by segment and the reconciliation of total segment assets to Total assets on the Consolidated Balance Sheets as of December 31:
| thousands | 2025 | 2024 | |||||||||
| Operating Assets | $ | 3,606,214 | $ | 3,548,162 | |||||||
| Master Planned Communities | 3,487,301 | 3,373,827 | |||||||||
| Strategic Developments | 2,378,762 | 1,836,791 | |||||||||
| Corporate | 1,167,184 | 452,456 | |||||||||
| Total assets | $ | 10,639,461 | $ | 9,211,236 | |||||||
The following represents capital expenditures by segment for the years ended December 31:
| thousands | 2025 | 2024 | |||||||||
| Operating Assets | $ | 45,333 | $ | 63,781 | |||||||
| Master Planned Communities | 184 | 232 | |||||||||
| Strategic Developments | 176,689 | 239,472 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.