v3.26.1
Segments and Geographic Locations
3 Months Ended
Mar. 31, 2026
Segments and Geographic Locations  
Segments and Geographic Locations

11. Segments and Geographic Locations

Our primary business is the ownership, development and management of premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, and The Mills.  We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance, and makes decisions.  Our CODM is our Chief Executive Officer, President, and Chief Operating Officer who is actively involved in all aspects of the portfolio operations.  We have aggregated our consolidated real estate operations, including malls, Premium Outlets, The Mills, and our consolidated international real estate operations into one reportable segment because they have similar economic characteristics and we provide similar products and services to similar types of, and in many cases, the same, tenants.  Revenue earned from these segment operations represents substantially all of lease income reported on the consolidated statements of operations and comprehensive income, all of which is generated from external customers, with the exception of eliminations made to remove our share of lease income earned from tenants in which we have an ownership interest.  The primary financial measure the CODM uses to measure the operating performance of the consolidated real estate operations is net operating income (“NOI”), which is reconciled to consolidated net income below.  The Company believes that NOI is helpful to investors as a measure of operating performance because it is a direct measure of the actual operating results of the Company’s properties and because it is a widely recognized measure of the performance of REITs providing a relevant basis for comparison among REITs.  Non-segment revenue includes Management Fees and Other revenues, described earlier in Note 3, and the majority of Other income, which primarily includes interest income and miscellaneous activities such as land sales, dividends received from certain investments and other activities as disclosed through these notes to the extent material, as well as eliminations. None of our unconsolidated investments meet the materiality threshold required for separate reporting as a reportable segment, though we have included disclosures related to the activities of these investments in Note 6.  Approximately 97% of total consolidated assets, with the exception of our investment in Klépierre and other unconsolidated entities and certain other assets, are attributable to our real estate segment.

As of March 31, 2026 and 2025, approximately 6.6% and 9.0%, respectively, of our consolidated long-lived assets were located outside the United States and as of March 31, 2026 and 2025, approximately 4.7% and 6.1%, respectively, of our consolidated total revenues were derived from assets located outside the United States.  Substantially all of our capital expenditures reported in the consolidated statements of cash flows relate to our segment operations.

The following table reconciles our reportable segment to net income:

For the Three Months Ended March 31, 2026

All other &

Real estate

eliminations,

  ​ ​ ​

segment

  ​ ​ ​

net

  ​ ​ ​

Consolidated

For the period ended March 31, 2026:

Income:

Lease Income

$

1,631,420

$

(2,888)

$

1,628,532

Management fees and other revenues

 

40,189

40,189

Other Income

39,432

48,940

88,372

Total

 

1,670,852

86,241

1,757,093

Expenses:

Property Operating

225,918

(55,158)

170,760

Real estate taxes

139,063

(3,103)

135,960

Repairs and maintenance

39,503

697

40,200

Advertising and promotion

35,820

(1,890)

33,930

Other

22,791

10,424

33,215

Total

463,095

(49,030)

414,065

NOI of consolidated entities

$

1,207,757

$

135,271

$

1,343,028

Other Income:

Income and other tax benefit

19,934

Unrealized gains in fair value of publicly traded equity instruments and derivative instrument, net

25,388

Gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net

64,339

Other Expenses:

Depreciation and amortization

458,898

Home and regional office costs

67,656

General and administrative

54,299

Interest expense

275,662

Income from unconsolidated entities

21,248

Loss due to disposal, exchange, or revaluation of equity interests, net

6,379

Other expense

12

Consolidated Net Income

$

568,535

For the Three Months Ended March 31, 2025

All other &

Real estate

eliminations,

segment

net

Consolidated

For the period ended March 31, 2025:

Income:

Lease Income

$

1,374,956

$

(7,528)

$

1,367,428

Management fees and other revenues

 

33,792

33,792

Other Income

25,700

46,092

71,792

Total

 

1,400,656

72,356

1,473,012

Expenses:

Property Operating

171,737

$

(34,916)

$

136,821

Real estate taxes

113,486

(6,034)

107,452

Repairs and maintenance

29,558

584

30,142

Advertising and promotion

35,828

(1,571)

34,257

Other

14,659

16,319

30,978

Total

365,268

(25,618)

339,650

NOI of consolidated entities

$

1,035,388

$

97,974

$

1,133,362

Other Income:

Income and other tax benefit

7,637

Income from unconsolidated entities

30,359

Other Expenses:

Depreciation and amortization

328,051

Home and regional office costs

65,066

General and administrative

12,629

Interest expense

226,995

Loss due to disposal, exchange, or revaluation of equity interests, net

23,992

Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net

36,765

Consolidated Net Income

$

477,860