Segments (Tables)

9 Months Ended

Sep. 30, 2025

Segment operating results are as follows:


thousands	Operating Assets Segment		MPC Segment		Strategic Developments Segment
Three Months Ended September 30, 2025
Total revenues	$	117,182	$	271,575	$	1,460
Condominium rights and unit cost of sales	—		—		(59)
Master Planned Communities cost of sales	—		(78,280)		—
Operating costs	(37,052)		(4,892)		(3,944)
Rental property real estate taxes	(15,006)		—		(624)
(Provision for) recovery of doubtful accounts	345		—		—
Segment operating income (loss)	65,469		188,403		(3,167)
Depreciation and amortization	(43,411)		(110)		(1,988)
Interest income (expense), net	(34,006)		19,414		4,311
Other income (loss), net	363		19		2,066
Equity in earnings (losses) from unconsolidated ventures	135		(2,721)		57
Gain (loss) on sale or disposal of real estate and other assets, net	4,385		—		10,064


Gain (loss) on extinguishment of debt	(173)		—		—

Segment EBT	$	(7,238)	$	205,005	$	11,343

Three Months Ended September 30, 2024
Total revenues	$	114,019	$	212,607	$	505
Condominium rights and unit cost of sales	—		—		(11,833)
Master Planned Communities cost of sales	—		(72,582)		—
Operating costs	(34,918)		(11,950)		(3,973)
Rental property real estate taxes	(13,879)		—		(605)
(Provision for) recovery of doubtful accounts	(190)		—		—
Segment operating income (loss)	65,032		128,075		(15,906)
Depreciation and amortization	(42,252)		(109)		(960)
Interest income (expense), net	(36,661)		16,425		4,353
Other income (loss), net	(54)		—		90,089
Equity in earnings (losses) from unconsolidated ventures	(2,109)		361		118
Gain (loss) on sale or disposal of real estate and other assets, net	3,165		—		—



Segment EBT	$	(12,879)	$	144,752	$	77,694

Nine Months Ended September 30, 2025
Total revenues	$	347,630	$	499,730	$	3,028
Condominium rights and unit cost of sales	—		—		(1,112)
Master Planned Communities cost of sales	—		(148,672)		—
Operating costs	(105,449)		(30,399)		(11,280)
Rental property real estate taxes	(44,507)		—		(1,787)
(Provision for) recovery of doubtful accounts	(41)		—		—
Segment operating income (loss)	197,633		320,659		(11,151)
Depreciation and amortization	(128,839)		(309)		(4,222)
Interest income (expense), net	(102,397)		54,307		13,590
Other income (loss), net	801		54		936
Equity in earnings (losses) from unconsolidated ventures	4,453		(7,780)		231
Gain (loss) on sale or disposal of real estate and other assets, net	14,363		3,750		11,721


Gain (loss) on extinguishment of debt	(480)		—		—

Segment EBT	$	(14,466)	$	370,681	$	11,105


thousands	Operating Assets Segment		MPC Segment		Strategic Developments Segment

Nine Months Ended September 30, 2024
Total revenues	$	331,779	$	433,663	$	1,607
Condominium rights and unit cost of sales	—		—		(15,694)
Master Planned Communities cost of sales	—		(143,254)		—
Operating costs	(100,518)		(37,210)		(11,684)
Rental property real estate taxes	(41,906)		—		(1,893)
(Provision for) recovery of doubtful accounts	(327)		—		—
Segment operating income (loss)	189,028		253,199		(27,664)
Depreciation and amortization	(125,903)		(327)		(6,257)
Interest income (expense), net	(103,768)		47,839		12,971
Other income (loss), net	896		—		90,075
Equity in earnings (losses) from unconsolidated ventures	4,044		(8,467)		193
Gain (loss) on sale or disposal of real estate and other assets, net	7,959		—		—


Gain (loss) on extinguishment of debt	(198)		—		—

Segment EBT	$	(27,942)	$	292,244	$	69,318

The following represents capital expenditures by segment:


	Nine Months Ended September 30,
thousands		2025		2024
Operating Assets		$	30,036	$	42,712
Master Planned Communities		118		189
Strategic Developments		153,794		179,479

Summary of reconciliation of operating income (loss) from segments to consolidated statements of operations

The following represents the reconciliation of segment EBT to Net income (loss) attributable to common stockholders in the Condensed Consolidated Statements of Operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2025		2024		2025		2024
Operating Assets EBT	$	(7,238)	$	(12,879)	$	(14,466)	$	(27,942)
MPC EBT	205,005		144,752		370,681		292,244
Strategic Developments EBT	11,343		77,694		11,105		69,318
General and administrative expense	(19,974)		(23,826)		(70,554)		(66,228)
Gain (loss) on sale of MUD receivables	—		(51,525)		(48,197)		(51,525)
Corporate interest expense, net	(27,878)		(22,578)		(77,754)		(60,369)
Corporate income, expenses, and other items	(4,241)		(3,879)		(14,769)		(12,665)
Net income (loss) from continuing operations before income tax	$	157,017	$	107,759	$	156,046	$	142,833

Summary of reconciliation of revenue from segments to consolidated statements of operations

The following represents the reconciliation of segment revenue to Total revenue in the Condensed Consolidated Statements of Operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2025		2024		2025		2024
Operating Assets revenue	$	117,182	$	114,019	$	347,630	$	331,779
MPC revenue	271,575		212,607		499,730		433,663
Strategic Developments revenue	1,460		505		3,028		1,607
Corporate income	18		16		55		50
Total revenues	$	390,235	$	327,147	$	850,443	$	767,099

Summary of assets by segment and the reconciliation of total segment assets to the total assets in the condensed consolidated balance sheets

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


thousands	September 30, 2025		December 31, 2024
Operating Assets	$	3,516,354	$	3,548,162
Master Planned Communities	3,378,423		3,373,827
Strategic Developments	2,506,349		1,836,791
Corporate	400,226		450,013
Total assets	$	9,801,352	$	9,208,793

Howard Hughes Corp 10-Q