v3.26.1
Investments in Unconsolidated Subsidiaries
6 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Subsidiaries 9.          Investments in Unconsolidated Subsidiaries
Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment
ownership percentages in equity method investments vary, generally ranging from 1% to 50%. The following table represents
the composition of investments in unconsolidated subsidiaries under the equity method of accounting and fair value option
(dollars in millions):
Investment type
June 30, 2026
December 31, 2025
Real estate investments (in projects and funds)
$753
$772
Other
100
98
Total investment in unconsolidated subsidiaries
$853
$870
Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars
in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Combined Condensed Statements of Operations Information:
Revenue
$781
$722
$1,639
$1,483
Operating income
335
293
672
536
Net income (1)
88
117
28
308
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(1)Included in Net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and
losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included
in Revenue and Operating income.
During the three and six months ended June 30, 2026, we recognized other-than-temporary losses related to equity
method investments of $8 million and $13 million, respectively. We also recognized non-cash asset impairment charges on real
estate assets of $2 million and $5 million, respectively.
During three and six months ended June 30, 2025, we recorded non-cash asset impairment charges of $20 million
related to equity method investments. There were no asset impairment charges or other significant non-recurring fair value
measurement adjustments recorded during the three and six months ended June 30, 2025.