Segments

3 Months Ended

Mar. 31, 2023

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. Because the Company’s four segments, Operating Assets, MPC, Seaport, and Strategic Developments, are managed separately, the Company uses different operating measures to assess operating results and allocate resources among them. The one common operating measure used to assess operating results for the Company’s business segments is earnings before tax (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 Company presents EBT for each segment because the Company uses this measure, among others, internally to assess the core operating performance of the Company’s assets. 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.

–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.

–Seaport – consists of approximately 472,000 square feet of restaurant, retail, and entertainment properties situated in three primary locations in New York City: Pier 17, Historic Area/Uplands, and Tin Building as well as the 250 Water Street development, 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		MPC Segment		Seaport Segment		Strategic Developments Segment		Total
Three Months Ended March 31, 2023
Total revenues	$	100,925	$	77,013	$	11,897	$	6,440	$	196,275
Total operating expenses	(47,599)		(34,351)		(18,916)		(11,059)		(111,925)
Segment operating income (loss)	53,326		42,662		(7,019)		(4,619)		84,350
Depreciation and amortization	(39,632)		(107)		(10,527)		(943)		(51,209)
Interest income (expense), net	(28,911)		15,812		1,186		2,063		(9,850)
Other income (loss), net	2,282		(103)		1		94		2,274
Equity in earnings (losses) from unconsolidated ventures	1,905		4,108		(10,820)		5		(4,802)
Gain (loss) on sale or disposal of real estate and other assets, net	4,730		—		—		—		4,730
Segment EBT	$	(6,300)	$	62,372	$	(27,179)	$	(3,400)	$	25,493
Corporate income, expenses, and other items									(48,120)
Net income (loss)									(22,627)
Net (income) loss attributable to noncontrolling interests									(118)
Net income (loss) attributable to common stockholders									$	(22,745)
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 unconsolidated ventures	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

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

thousands	March 31, 2023		December 31, 2022
Operating Assets	$	3,464,019	$	3,448,823
Master Planned Communities	3,255,892		3,272,655
Seaport	1,162,486		1,166,950
Strategic Developments	1,435,242		1,359,180
Total segment assets	9,317,639		9,247,608
Corporate	262,493		355,855
Total assets	$	9,580,132	$	9,603,463