Reportable Segments

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Reportable Segments

NOTE 17. REPORTABLE SEGMENTS

Our current business strategy includes two reportable segments: Real Estate (Rental Operations and Development) and Strategic Capital. We generate revenues, earnings, net operating income and cash flows through our segments, as follows:

•Real Estate Segment. This reportable segment represents the ownership and development of operating properties and is the largest component of our revenue and earnings. We collect rent from our customers through operating leases, including reimbursements for the majority of our property operating costs. The Real Estate Segment also includes development activities that lead to rental operations, including land held for development and properties currently under development, and other real estate investments, including renewable energy assets. Within this line of business, we utilize the following: (i) our land bank; (ii) the development and leasing expertise of our local teams; and (iii) our customer relationships.

•Strategic Capital Segment. This reportable segment represents the management of unconsolidated co-investment ventures. We generate strategic capital revenues primarily from our unconsolidated co-investment ventures through asset management and property management services and we earn additional revenues by providing leasing, acquisition, construction, development, financing and disposition services. Depending on the structure of the venture and the returns provided to our partners, we also earn revenues through promotes periodically during the life of a venture or upon liquidation.

Our management Executive Committee (“EC”) is our Chief Operating Decision Maker (“CODM”) and regularly reviews operating results and makes strategic and operating decisions with regards to assessing performance and allocating resources based on our two reportable segments. The EC consists of the Chief Executive Officer; Chief Operating Officer; Chief Financial Officer; Chief Investment Officer; Managing Director, Global Strategic Capital; President; Chief Human Resources Officer; Chief Legal Officer and Chief Energy

and Sustainability Officer. The operating results reviewed by the EC include net operating income (“NOI”), the measure most consistent with U.S. GAAP.

NOI from the Real Estate Segment is calculated directly from the Consolidated Statements of Income as Rental Revenues and Development Management and Other Revenues less Rental Expenses and Other Expenses.

NOI from the Strategic Capital Segment is calculated directly from the Consolidated Statements of Income as Strategic Capital Revenues less Strategic Capital Expenses.

Our EC analyzes the NOI of each reportable segment on a quarterly basis comparing actuals to prior period actuals, along with forecasted future amounts and utilizes operating metrics to understand and evaluate the performance of our operations and to allocate resources.

Below we present: (i) each reportable segment’s revenues from external customers to Total Revenues; (ii) each reportable segment’s expenses to Total Expenses; (iii) each reportable segment’s net operating income from external customers, calculated as each reportable segment's revenues less segment expenses, to Operating Income and Earnings Before Income Taxes; and (iv) each reportable segment’s assets to Total Assets.

The applicable components of Total Revenues, Total Expenses, Operating Income, Earnings Before Income Taxes and Total Assets in the Consolidated Financial Statements are allocated to each reportable segment’s revenues, expenses, net operating income and assets.

Items that are not directly assignable to a reportable segment, are not allocated but reflected as non-segment items (G&A expenses and real estate adjustments for depreciation and gains and losses on contributions and sales) due to how our CODM utilizes segment information for planning and execution of our business strategy.

The following reportable segment net operating income and assets are presented in thousands:

	Years Ended December 31,
	2024			2023			2022
Revenues:
Real estate segment:
U.S.	$	7,216,817		$	6,558,051		$	4,726,072
Other Americas		137,893			110,305			92,751
Europe		115,103			95,915			56,731
Asia		59,890			58,966			58,553
Total real estate segment		7,529,703			6,823,237			4,934,107
Strategic capital segment:
U.S.		296,995			833,402			215,416
Other Americas		92,307			89,783			82,462
Europe		194,530			181,651			644,832
Asia		88,075			95,396			96,875
Total strategic capital segment		671,907			1,200,232			1,039,585
Total revenues		8,201,610			8,023,469			5,973,692
Expenses:
Real estate segment:
U.S. (1)		(1,714,071	)		(1,603,486	)		(1,170,445	)
Other Americas		(28,953	)		(25,383	)		(25,199	)
Europe		(46,759	)		(27,715	)		(31,993	)
Asia		(22,646	)		(21,563	)		(18,437	)
Total real estate segment		(1,812,429	)		(1,678,147	)		(1,246,074	)
Strategic capital segment:
U.S. (1)		(154,654	)		(204,066	)		(155,855	)
Other Americas		(21,833	)		(27,018	)		(18,998	)
Europe		(75,500	)		(103,025	)		(87,156	)
Asia		(39,869	)		(51,433	)		(41,347	)
Total strategic capital segment		(291,856	)		(385,542	)		(303,356	)
Total expenses		(2,104,285	)		(2,063,689	)		(1,549,430	)
Segment net operating income:
Real estate segment:
U.S. (1)		5,502,746			4,954,565			3,555,627
Other Americas		108,940			84,922			67,552
Europe		68,344			68,200			24,738
Asia		37,244			37,403			40,116
Total real estate segment		5,717,274			5,145,090			3,688,033
Strategic capital segment:
U.S. (1)		142,341			629,336			59,561
Other Americas		70,474			62,765			63,464
Europe		119,030			78,626			557,676
Asia		48,206			43,963			55,528
Total strategic capital segment		380,051			814,690			736,229
Total segment net operating income		6,097,325			5,959,780			4,424,262
Non-segment items:
General and administrative expenses		(418,765	)		(390,406	)		(331,083	)
Depreciation and amortization expenses		(2,580,519	)		(2,484,891	)		(1,812,777	)
Gains on dispositions of development properties and land, net		413,743			462,270			597,745
Gains on other dispositions of investments in real estate, net		904,136			161,039			589,391
Operating income		4,415,920			3,707,792			3,467,538
Earnings from unconsolidated entities, net		353,623			307,227			310,872
Interest expense		(863,932	)		(641,332	)		(309,037	)
Foreign currency, derivative and other gains (losses) and other      income (expense), net		208,731			87,221			241,621
Gains (losses) on early extinguishment of debt, net		536			3,275			(20,184	)
Earnings before income taxes	$	4,114,878		$	3,464,183		$	3,690,810

	December 31,
	2024		2023
Segment assets:
Real estate segment:
U.S.	$	76,857,293	$	76,633,566
Other Americas		2,814,141		2,029,438
Europe		2,554,514		2,366,539
Asia		719,810		793,916
Total real estate segment		82,945,758		81,823,459
Strategic capital segment: (2)
U.S.		10,499		10,499
Europe		25,280		25,280
Asia		167		203
Total strategic capital segment		35,946		35,982
Total segment assets		82,981,704		81,859,441
Non-segment items:
Investments in and advances to unconsolidated entities		10,079,448		9,543,970
Assets held for sale or contribution		248,511		461,657
Cash and cash equivalents		1,318,591		530,388
Other assets		700,655		625,384
Total non-segment items		12,347,205		11,161,399
Total assets	$	95,328,909	$	93,020,840

(1)This includes compensation and personnel costs for employees who were located in the U.S. but also support other geographies.

(2)Represents management contracts and goodwill recorded in connection with business combinations associated with the Strategic Capital Segment. Goodwill was $25.3 million at December 31, 2024, and 2023.