Reportable Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Reportable Segments

NOTE 10. 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:

	Three Months Ended March 31,
	2025			2024
Revenues:
Real estate segment:
U.S.	$	1,913,893		$	1,757,371
Other Americas		46,323			29,723
Europe		25,427			28,733
Asia		12,883			12,382
Total real estate segment		1,998,526			1,828,209
Strategic capital segment:
U.S.		48,368			46,103
Other Americas		21,174			16,285
Europe		51,011			44,800
Asia		20,586			21,224
Total strategic capital segment		141,139			128,412
Total revenues		2,139,665			1,956,621
Expenses:
Real estate segment:
U.S. (1)		(471,212	)		(444,750	)
Other Americas		(8,327	)		(6,830	)
Europe		(13,533	)		(9,959	)
Asia		(4,894	)		(4,962	)
Total real estate segment		(497,966	)		(466,501	)
Strategic capital segment:
U.S. (1)		(28,533	)		(40,957	)
Other Americas		(2,982	)		(6,322	)
Europe		(17,577	)		(21,708	)
Asia		(11,685	)		(9,824	)
Total strategic capital segment		(60,777	)		(78,811	)
Total expenses		(558,743	)		(545,312	)
Segment net operating income:
Real estate segment:
U.S. (1)		1,442,681			1,312,621
Other Americas		37,996			22,893
Europe		11,894			18,774
Asia		7,989			7,420
Total real estate segment		1,500,560			1,361,708
Strategic capital segment:
U.S. (1)		19,835			5,146
Other Americas		18,192			9,963
Europe		33,434			23,092
Asia		8,901			11,400
Total strategic capital segment		80,362			49,601
Total segment net operating income		1,580,922			1,411,309
Non-segment items:
General and administrative expenses		(114,701	)		(111,291	)
Depreciation and amortization expenses		(652,058	)		(637,505	)
Gains on dispositions of development properties and land, net		27,451			40,308
Gains on other dispositions of investments in real estate, net		36,799			17,534
Operating income		878,413			720,355
Earnings from unconsolidated entities, net		67,899			72,472
Interest expense		(231,751	)		(193,320	)
Foreign currency, derivative and other gains (losses) and other income (expense), net		(31,658	)		63,564
Gains (losses) on early extinguishment of debt, net		-			536
Earnings before income taxes	$	682,903		$	663,607

	March 31, 2025		December 31, 2024
Segment assets:
Real estate segment:
U.S.	$	77,163,735	$	76,857,293
Other Americas		2,993,137		2,814,141
Europe		2,769,278		2,554,514
Asia		855,983		719,810
Total real estate segment		83,782,133		82,945,758
Strategic capital segment: (2)
U.S.		10,499		10,499
Europe		25,280		25,280
Asia		173		167
Total strategic capital segment		35,952		35,946
Total segment assets		83,818,085		82,981,704
Non-segment items:
Investments in and advances to unconsolidated entities		10,287,314		10,079,448
Assets held for sale or contribution		545,542		248,511
Cash and cash equivalents		671,117		1,318,591
Other assets		671,333		700,655
Total non-segment items		12,175,306		12,347,205
Total assets	$	95,993,391	$	95,328,909

(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 March 31, 2025 and December 31, 2024.