Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segments

16. Segments

The Company has four business segments that offer different products and services. HHC’s four segments are managed separately because each requires different operating strategies or management expertise and are reflective of management’s operating philosophies and methods. As further discussed in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, one common operating measure used to assess operating results for the Company’s business segments is earnings before taxes (EBT). 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. The Company’s reportable segments are as follows: 

–Operating Assets – consists of developed or acquired retail, office and multi-family properties along with other real estate investments. These properties are currently generating revenues and may be redeveloped, repositioned, or sold to improve segment performance or to recycle capital. This segment also included hospitality properties prior to the sale of The Woodlands Resort, The Westin at The Woodlands and Embassy Suites at Hughes Landing in the third quarter of 2021. Refer to Note 3 - Acquisitions and Dispositions for additional information.

–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; Phoenix, Arizona; and Columbia, Maryland.

–Seaport – consists of approximately 461,000 square feet of restaurant, retail and entertainment properties situated in three primary locations in New York, New York: Pier 17, Historic Area/Uplands and Tin Building as well as the 250 Water Street parking lot, and equity interest in Jean-Georges Restaurants.

–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.

Segment operating results are as follows:

thousands	Operating Assets Segment (a)		MPC Segment		Seaport Segment		Strategic Developments Segment		Total
Three Months Ended March 31, 2022
Total revenues	$	99,687	$	80,692	$	9,376	$	20,456	$	210,211
Total operating expenses	(46,615)		(36,896)		(18,859)		(18,077)		(120,447)
Segment operating income (loss)	53,072		43,796		(9,483)		2,379		89,764
Depreciation and amortization	(38,430)		(90)		(7,823)		(1,332)		(47,675)
Interest income (expense), net	(20,118)		10,422		(47)		3,989		(5,754)
Other income (loss), net	(169)		—		350		(485)		(304)
Equity in earnings (losses) from real estate and other affiliates	15,175		5,550		(3,711)		898		17,912
Gain (loss) on sale or disposal of real estate and other assets, net	—		—		—		(9)		(9)
Gain (loss) on extinguishment of debt	(282)		—		—		—		(282)
Segment EBT	$	9,248	$	59,678	$	(20,714)	$	5,440	$	53,652
Corporate income, expenses and other items									(51,481)
Net income (loss)									2,171
Net (income) loss attributable to noncontrolling interests									(49)
Net income (loss) attributable to common stockholders									$	2,122
Three Months Ended March 31, 2021
Total revenues	$	96,439	$	48,287	$	7,453	$	38,300	$	190,479
Total operating expenses	(47,234)		(23,267)		(12,506)		(59,623)		(142,630)
Segment operating income (loss)	49,205		25,020		(5,053)		(21,323)		47,849
Depreciation and amortization	(39,651)		(72)		(6,835)		(1,598)		(48,156)
Interest income (expense), net	(19,000)		10,757		102		1,101		(7,040)
Other income (loss), net	(10,098)		—		(336)		—		(10,434)
Equity in earnings (losses) from real estate and other affiliates	(11,404)		27,650		(352)		(98)		15,796
Gain (loss) on extinguishment of debt	(836)		—		—		—		(836)
Segment EBT	$	(31,784)	$	63,355	$	(12,474)	$	(21,918)	$	(2,821)
Corporate income, expenses and other items									(65,338)
Net income (loss)									(68,159)
Net (income) loss attributable to noncontrolling interests									1,565
Net income (loss) attributable to common stockholders									$	(66,594)

(a)Total revenues includes hospitality revenues of $7.7 million for the three ended March 31, 2021. Total operating expenses includes hospitality operating costs of $7.9 million for the three ended March 31, 2021. In September 2021, the Company completed the sale of its three hospitality properties.

The assets by segment and the reconciliation of total segment assets to the Total assets in the Condensed Consolidated Balance Sheets are summarized as follows:

thousands	March 31, 2022		December 31, 2021
Operating Assets	$	3,543,302	$	3,607,718
Master Planned Communities	3,066,995		3,056,240
Seaport	1,121,784		1,046,992
Strategic Developments	1,350,270		1,193,549
Total segment assets	9,082,351		8,904,499
Corporate	385,336		677,195
Total assets	$	9,467,687	$	9,581,694