Investment in Real Estate and Other Affiliates (Tables)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Summary of equity of investments in real estate and other affiliates

Investments in real estate and other affiliates are reported as follows:

	Economic/Legal Ownership				Carrying Value				Share of Earnings/Dividends
	September 30,		December 31,		September 30,		December 31,		Three Months Ended September 30,				Nine Months Ended September 30,
thousands except percentages	2022		2021		2022		2021		2022		2021		2022		2021
Equity Method Investments
Operating Assets:
110 North Wacker (a)	—	%	see below		$	—	$	194,999	$	—	$	(15,954)	$	4,914	$	(42,966)
The Metropolitan Downtown Columbia (b)	50	%	50	%	—		—		1,568		(233)		4,516		(122)
Stewart Title of Montgomery County, TX	50	%	50	%	3,771		4,185		136		715		848		1,349
Woodlands Sarofim #1	20	%	20	%	3,034		3,215		6		34		(9)		87
m.flats/TEN.M (c)	50	%	50	%	—		—		2,422		330		6,991		966
Master Planned Communities:
The Summit (d) (e)	see below		see below		67,031		41,536		15,283		8,277		17,635		54,568
Floreo (e)	50	%	50	%	58,733		59,080		(421)		—		(645)		—
Seaport:
The Lawn Club (e)	see below		see below		2,553		447		—		—		—		—
Ssäm Bar (Momofuku) (e)	see below		see below		5,661		5,852		(216)		(1,009)		(473)		(1,697)
The Tin Building by Jean-Georges (e)	see below		see below		3,730		—		(11,366)		—		(20,565)		—
Jean-Georges Restaurants (f)	25	%	—	%	46,215		—		309		—		815		—
Strategic Developments:
HHMK Development	50	%	50	%	10		10		—		—		—		—
KR Holdings	50	%	50	%	485		127		(18)		(8)		796		(125)
West End Alexandria	see below		see below		56,613		56,546		5		—		67		—
					247,836		365,997		7,708		(7,848)		14,890		12,060
Other equity investments (g)					13,779		3,952		—		—		4,638		3,755
Investment in real estate and other affiliates					$	261,615	$	369,949	$	7,708	$	(7,848)	$	19,528	$	15,815

(a)During the first quarter of 2022, the Company completed the sale of its ownership interest in 110 North Wacker. Refer to discussion below for additional information.

(b)The Metropolitan Downtown Columbia was in a deficit position of $7.9 million at September 30, 2022, and $11.3 million at December 31, 2021, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at September 30, 2022, and December 31, 2021.

(c)M.flats/TEN.M was in a deficit position of $0.9 million at September 30, 2022, and $6.0 million at December 31, 2021, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at September 30, 2022, and December 31, 2021.

(d)In July 2022, the Company contributed an additional 54 acres to the Summit (Phase II land) and recognized a gain of $13.5 million. Excluding this gain, equity earnings at The Summit decreased for the three and nine months ended September 30, 2022, as a result of lower sales in 2022 due to limited available Phase I inventory and the impact of an increase in projected amenity and completion costs recognized in 2022.

(e)Refer to the discussion below for details on the ownership structure.

(f)On March 1, 2022, the Company purchased a 25% interest in Jean-Georges Restaurants. Refer to discussion below for additional information.

(g)Other equity investments represent equity investments not accounted for under the equity method. The Company elected the measurement alternative as these investments do not have readily determinable fair values. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year or cumulatively. As of September 30, 2022, Other equity investments includes $10.0 million of warrants, which represents cash paid by HHC for the option to acquire additional ownership interest in Jean-Georges Restaurants. Refer to discussion below for additional details.

Summary of changes in redeemable noncontrolling interest

The following table presents changes in Redeemable noncontrolling interest:

thousands	Redeemable Noncontrolling Interest
Balance at December 31, 2021		$	22,500
Net income (loss) attributable to noncontrolling interest		(407)
Disposition of noncontrolling interest related to 110 North Wacker		(22,093)
Balance at September 30, 2022		$	—
Balance at December 31, 2020		$	29,114
Net income (loss) attributable to noncontrolling interest		(4,296)
Share of investee’s other comprehensive income		582
Balance at September 30, 2021		$	25,400