| Segments |
Vantage Acquisition On June 4, 2026, HHH completed the acquisition of Vantage, a privately held specialty insurance and reinsurance company. Refer to Note 1 - Presentation of Financial Statements and Significant Accounting Policies and Note 2 - Vantage Acquisition for additional information on the transaction.
Due to the recent timing of the Vantage Acquisition, the Company is continuing to evaluate the acquired operations and overall strategy, including the manner in which the Chief Operating Decision Maker (CODM) reviews financial information and allocates resources. Accordingly, the results of the acquired business have not yet been separately reflected within the Company’s segment reporting disclosures as of September 30, 2026. The Company expects to finalize its segment reporting assessment as integration activities progress. The Company separately disclosed the impact of the Vantage Acquisition in the reconciliations below.
HHH Segments The Company has three business segments, Operating Assets, MPC, and Strategic Developments, which are organized based on the different products and services that each segment offers, and are separately managed as each requires different operating strategies or management expertise reflective of management’s operating philosophies and methods. The Company’s segments or assets within such segments could change in the future as development of certain properties commences or other operational or management changes occur. All operations within reportable segments are within the United States.
Activity within each of the Company’s reportable segments is as follows:
–Operating Assets – consists of developed or acquired retail, office, and multifamily properties along with other real estate investments. These properties are currently generating rental revenues and may be redeveloped, repositioned, or sold to improve segment performance or to recycle capital.
–MPC – consists of the development and sale of land in large‑scale, long‑term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. Revenues are primarily generated through the sale of residential and commercial land to homebuilders and developers.
–Strategic Developments – consists of residential condominium and commercial property projects currently under development and all other properties held for development which have no substantial operations. Revenues are primarily generated from the sale of condominium units.
The CODM, which is the Company’s Chief Executive Officer, may use different operating measures to assess operating results and allocate resources among the three segments - however the measure that is most consistent with the amounts included in the Condensed Consolidated Financial Statements is earnings before taxes (EBT). EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments. The CODM utilizes EBT to evaluate the current financial performance and project the future financial performance of each segment to determine the allocation of capital resources. This measure is also used to evaluate the need for operational adjustments, such as adjustments to prices, cost structures, and product mix necessary to achieve profitability targets. Segment operating results are as follows: | | | | | | | | | | | | | thousands | Operating Assets Segment | MPC Segment | Strategic Developments Segment | Three Months Ended September 30, 2026 | | | | | Total revenues | $ | 121,611 | | $ | 149,825 | | $ | 7,244 | | | Condominium rights and unit cost of sales | — | | — | | (5,414) | | | Master Planned Communities cost of sales | — | | (46,242) | | — | | | Operating costs | (35,479) | | (16,197) | | (3,890) | | | Rental property real estate taxes | (12,839) | | — | | (810) | | | (Provision for) recovery of doubtful accounts | (206) | | — | | — | | | Segment operating income (loss) | 73,087 | | 87,386 | | (2,870) | | | Depreciation and amortization | (43,503) | | (266) | | (2,380) | | | Interest income (expense), net | (39,284) | | 24,366 | | 4,558 | | | Other income (loss), net | 72 | | — | | (1,591) | | | Equity in earnings (losses) from unconsolidated ventures | 531 | | (22,010) | | 13,950 | | | Gain (loss) on sale or disposal of real estate and other assets, net | 429 | | — | | 6,153 | | | | | | | | | | | Gain (loss) on extinguishment of debt | (429) | | — | | — | | | | | | | Segment EBT | $ | (9,097) | | $ | 89,476 | | $ | 17,820 | | | | | | 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 | | | | | | Nine Months Ended September 30, 2026 | | | | | Total revenues | $ | 360,773 | | $ | 443,846 | | $ | 719,083 | | | Condominium rights and unit cost of sales | — | | — | | (583,937) | | | Master Planned Communities cost of sales | — | | (140,041) | | — | | | Operating costs | (106,860) | | (40,665) | | (15,416) | | | Rental property real estate taxes | (42,839) | | — | | (1,836) | | | (Provision for) recovery of doubtful accounts | (270) | | — | | — | | | Segment operating income (loss) | 210,804 | | 263,140 | | 117,894 | | | Depreciation and amortization | (141,109) | | (441) | | (6,505) | | | Interest income (expense), net | (110,664) | | 70,090 | | 13,629 | | | Other income (loss), net | (436) | | 1,860 | | (2,480) | | | Equity in earnings (losses) from unconsolidated ventures | 7,202 | | (26,114) | | 9,044 | | | Gain (loss) on sale or disposal of real estate and other assets, net | 52,229 | | — | | 6,153 | | | | | | | | | | | Gain (loss) on extinguishment of debt | (842) | | — | | — | | | | | | | Segment EBT | $ | 17,184 | | $ | 308,535 | | $ | 137,735 | | | | | |
| | | | | | | | | | | | | thousands | Operating Assets Segment | MPC Segment | Strategic Developments Segment | 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 | |
The following represents the reconciliation of segment EBT to Income (loss) before income taxes in the Condensed Consolidated Statements of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | thousands | 2026 | | 2025 | | 2026 | | 2025 | | Operating Assets EBT | $ | (9,097) | | | $ | (7,238) | | | $ | 17,184 | | | $ | (14,466) | | | MPC EBT | 89,476 | | | 205,005 | | | 308,535 | | | 370,681 | | | Strategic Developments EBT | 17,820 | | | 11,343 | | | 137,735 | | | 11,105 | | | General and administrative expense | (28,802) | | | (28,281) | | | (90,696) | | | (85,269) | | | Gain (loss) on sale of MUD receivables | (105,362) | | | — | | | (105,917) | | | (48,197) | | | Corporate interest expense, net | (32,158) | | | (18,288) | | | (74,709) | | | (62,408) | | | Vantage income (loss) before income taxes | 76,564 | | | — | | | 55,799 | | | — | | | Corporate income, expenses, and other items | (7,309) | | | (4,241) | | | (29,202) | | | (14,769) | | | Income (loss) before income taxes | $ | 1,132 | | | $ | 158,300 | | | $ | 218,729 | | | $ | 156,677 | |
The following represents the reconciliation of segment revenues to Total revenue in the Condensed Consolidated Statements of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | thousands | 2026 | | 2025 | | 2026 | | 2025 | | Operating Assets segment | $ | 121,611 | | | $ | 117,182 | | | $ | 360,773 | | | $ | 347,630 | | | MPC segment | 149,825 | | | 271,575 | | | 443,846 | | | 499,730 | | | Strategic Developments segment | 7,244 | | | 1,460 | | | 719,083 | | | 3,028 | | | Vantage | 357,529 | | | — | | | 470,670 | | | — | | | Corporate | 87 | | | 18 | | | 168 | | | 55 | | | Total revenues | $ | 636,296 | | | $ | 390,235 | | | $ | 1,994,540 | | | $ | 850,443 | |
The following represents the reconciliation of segment assets to Total assets on the Condensed Consolidated Balance Sheets: | | | | | | | | | | | | | thousands | September 30, 2026 | | December 31, 2025 | | Operating Assets segment | $ | 3,615,568 | | | $ | 3,606,214 | | | MPC segment | 3,730,413 | | | 3,487,301 | | | Strategic Developments segment | 2,075,039 | | | 2,378,762 | | | Vantage | 6,448,468 | | | — | | | Corporate | 449,558 | | | 1,167,184 | | | Total assets | $ | 16,319,046 | | | $ | 10,639,461 | |
The following represents capital expenditures by segment: | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | thousands | | | | | 2026 | | 2025 | | Operating Assets segment | | | | | $ | 31,902 | | | $ | 30,036 | | | MPC segment | | | | | 203 | | | 118 | | | Strategic Developments segment | | | | | 57,938 | | | 153,794 | |
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