Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q4 2020 Earnings Presentation
34 slides from Howard Hughes's earnings presentation, Feb 25, 2021
Slide 1: Supplemental Information Three Months Ended December 31, 2020
The Howard Hughes Corporation, 9950 Woodloch Forest Drive, Suite 1100, The Woodlands, TX 77380 HowardHughes.com 281.719.6100 Supplemental Information Three Months Ended December 31, 2020 NYSE: HHC Seaport District New York, NY Exhibit 99.2 The Woodlands Towers at the Waterway The Woodlands, TX 6100
Slide 2: Cautionary Statements
HowardHughes.com 281.719.6100 2 Cautionary StatementsCautionary Statements Forward Looking Statements This presentation includes forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future
Slide 3: Table of Contents
HowardHughes.com 281.719.6100 3 Table of Contents Table of Contents FINANCIAL OVERVIEW OPERATING PORTFOLIO PERFORMANCE OTHER PORTFOLIO METRICS Company Profile 4 NOI by Region 11 MPC Portfolio 18 Financial Summary 6 Stabilized Properties 13 Portfolio Key Metrics 19 Balance Sheets 8 Unstabilized Prope
Slide 4: Company Profile - Summary & Results: Recent Company Highlights
HowardHughes.com 281.719.6100 4 ‘A‘ali‘i 56% Kō'ula 44% Bridgeland 23%Summerlin 75% Woodlands/Woodlands Hills 2% Recent Company Highlights HOUSTON, Dec. 8, 2020 (PRNewswire) - The Howard Hughes Corporation (HHC) announced the hiring of Nathaniel Milner as Vice President of E-Commerce & Logistics to
Slide 5: Company Profile - Summary & Results (cont'd)
HowardHughes.com 281.719.6100 5 Multi-family 83% Retail 17% Multi-family 63% Retail 37% Office 47% Multi-family 19% Retail 21% Hotel 8% Other 6% Office 45% Multi-family 12% Retail 25% Hotel 10% Other 8% Office 60% Multi-family 36% Retail 4% Currently Under Construction Currently Unstabilized Current
Slide 6: Financial Summary
HowardHughes.com 281.719.6100 6 $ in thousands except share price and billions Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 YTD 2020 YTD 2019 Company Profile Share price (a) $ 78.93 $ 57.60 $ 51.95 $ 50.52 $ 126.80 $ 78.93 $ 126.80 Market Capitalization (b) $4.3b $3.2b $2.9b $2.8b $5.4b $4.3b $5.4b Enter
Slide 7: Financial Summary (con't)
HowardHughes.com 281.719.6100 7 Financial SummaryFinancial Summary (con't) (a) Operating Assets NOI = Operating Assets NOI excluding properties sold or in redevelopment + the Howard Hughes Corporation's (the "Company" or "HHC") share of equity method investments NOI and the annual distribution from
Slide 8: Balance Sheets
HowardHughes.com 281.719.6100 8 thousands except par values and share amounts FY 2020 FY 2019 ASSETS Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,687,519 $ 1,655,674 Buildings and equipment 4,115,493 3,813,595 Less: accumulated depreciation (634,064) (507,933)
Slide 9: Statements of Operations: Total Portfolio
HowardHughes.com 281.719.6100 9 Comparative Statements of Operations: Total PortfolioStatements of Operations thousands except per share amounts Q4 2020 Q4 2019 FY 2020 FY 2019 REVENUES Unaudited Unaudited Unaudited Unaudited Condominium rights and unit sales $ 958 $ 5,009 $ 1,143 $ 448,940 Master P
Slide 10: Reconciliations of Net Income to FFO, Core FFO and AFFO
HowardHughes.com 281.719.6100 10 Reconciliations of Net Income to FFO, Core FFO and AFFO thousands except share amounts Q4 2020 Q4 2019 FY 2020 FY 2019 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Unaudited Unaudited Net income attributable to common shareholders $ (6,646) $ (1,100) $ (2
Slide 11: NOI by Region, excluding the Seaport District
HowardHughes.com 281.719.6100 11 NOI by Region, excluding the Seaport District in thousands except Sq. Ft. and units Property % Ownership (a) Total Q4 2020 Occupied (#) Q4 2020 Leased (#) Q4 2020 Occupied (%) Q4 2020 Leased (%) Q4 2020 Annualized NOI (b) Stabilized NOI (c) Time to Stabilize (Years)S
Slide 12: NOI by Region, excluding the Seaport District (con't)
HowardHughes.com 281.719.6100 12 NOI by RegionNOI by Region, excluding the Seaport District (con't) in thousands except Sq. Ft. and units Property % Ownership (a) Total Q4 2020 Occupied (#) Q4 2020 Leased (#) Q4 2020 Occupied (%) Q4 2020 Leased (%) Q4 2020 Annualized NOI (b) Stabilized NOI (c) Time
Slide 13: Stabilized Properties - Office and Retail
HowardHughes.com 281.719.6100 13 in thousands except Sq. Ft. and units Property Location % Ownership Rentable Sq. Ft. Q4 2020 % Occ. Q4 2020 % Leased Annualized Q4 2020 NOI (a) (b) Est. Stabilized NOI (a) Office One Hughes Landing Houston, TX 100 % 197,719 92 % 97 % $ 5,858 $ 5,900 Two Hughes Landin
Slide 14: Stabilized Properties - Multi-family
HowardHughes.com 281.719.6100 14 in thousands except Sq. Ft. and units Q4 2020 %Occ.(e) Q4 2020 % Leased (e) Property Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units Annualized Q4 2020 NOI (a) (b) Est. Stabilized NOI (a) Multi-family Creekside Park Apartment
Slide 15: Unstabilized Properties - Operating Assets Segment
HowardHughes.com 281.719.6100 15 Unstabilized Properties - Operating Assets Segment thousands except Sq. Ft. and units Q4 2020 %Occ.(a) Q4 2020 % Leased (a) Project Name Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units Develop. Costs Incurred Est. Total Cost
Slide 16: Under Construction Properties
HowardHughes.com 281.719.6100 16 Under Construction PropertiesUnder Construction Projects - Strategic Developments Segment in thousands except Sq. Ft. and units (Owned & Managed) Project Name Location % Ownership Est. Rentable Sq. Ft. Percent Pre- Leased (a) Project Status Const. Start Date Est. Sta
Slide 17: Seaport District Operating Performance Q4 2020
HowardHughes.com 281.719.6100 17 NOI by RegionSeaport District Operating Performance Q4 2020 Real Estate Operations (Landlord) (a) Managed Businesses (b) Events, Sponsorships & Catering Business (f) Q4 2020 Total$ in thousands Historic District & Pier 17 Multi-Family (c) Historic District & Pier 17
Slide 18: MPC Portfolio
HowardHughes.com 281.719.6100 18 (a) Commercial acres may be developed by us or sold. (b) Reconciliation of GAAP MPC segment EBT to MPC Net Contribution for the three months ended December 31, 2020 is found under Reconciliation of Non-GAAP Measures on page 34. (c) Est. Stabilized NOI (Future) repres
Slide 19: Portfolio Key Metrics
HowardHughes.com 281.719.6100 19 MPC Regions Non-MPC Regions The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total Hawai‘i (a) Seaport Other Total Houston, TX Houston, TX Houston, TX Las Vegas, NV Columbia, MD MPC Regions Honolulu, HI New York, NY Non-MPC Operating - Stabilized Prope
Slide 20: Lease Expirations
HowardHughes.com 281.719.6100 20 Office Expirations (a) Retail Expirations (a) Expiration Year Annualized Cash Rent ($ in thousands) Percentage of Annualized Cash Rent Wtd. Avg. Annualized Cash Rent Per Leased Sq. Ft. Annualized Cash Rent ($ in thousands) Percentage of Annualized Cash Rent Wtd. Avg.
Slide 21: Acquisition / Disposition Activity
HowardHughes.com 281.719.6100 21 thousands except rentable Sq. Ft. / Units / Acres Q4 2020 Acquisitions Date Acquired Property % Ownership Location Rentable Sq. Ft. / Units / Acres Acquisition Price No acquisition activity in Q4 2020 Q4 2020 Dispositions Date Sold Property % Ownership Location Renta
Slide 22: Master Planned Community Land
HowardHughes.com 281.719.6100 22 Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total $ in thousands Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Revenues: Residential land sale revenues $ 2,569 $ 11,42
Slide 23: Ward Village Condominiums
HowardHughes.com 281.719.6100 23 Ward Village Condominiums As of December 31, 2020 Waiea (a) Anaha (a) Ae‘o Ke Kilohana (b) ‘A‘ali‘i Kō'ula Total (c) Key Metrics ($ in thousands) Type of building Ultra-Luxury Luxury Upscale Workforce Upscale Upscale Number of units 177 317 465 423 750 565 2,697 Avg.
Slide 24: Other Assets
HowardHughes.com 281.719.6100 24 Other Assets Property Name City, State % Own Acres Notes Landmark Mall Alexandria, VA 100 % 33 Plan to transform the mall into an open-air, mixed-use community. In January 2017, we acquired the 11.4 acre Macy's site for $22.2 million. Monarch City Allen, TX 100 % 230
Slide 25: Debt Summary
HowardHughes.com 281.719.6100 25 thousands December 31, 2020 December 31, 2019 Fixed-rate debt: Unsecured 5.375% Senior Notes due 2025 $ 1,000,000 $ 1,000,000 Unsecured 5.375% Senior Notes due 2028 $ 750,000 $ — Secured mortgages, notes and loans payable 590,517 884,935 Special Improvement District
Slide 26: Property-Level Debt
HowardHughes.com 281.719.6100 26 $ in thousands Asset Q4 2020 Principal Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Operating Assets 1201 Lake Robbins $ 273,070 L+235 Floating 2.49 % Dec-20 / Jun-21 The Woodlands Warehouse 7,230 L+2
Slide 27: Property-Level Debt (notes)
HowardHughes.com 281.719.6100 27 (a) Extended maturity assumes all extension options are exercised if available based on property performance. (b) The credit facility bears interest at one-month LIBOR plus 1.65%, but the $615.0 million term loan is swapped to an overall rate equal to 4.61%. The foll
Slide 28: Summary of Ground Leases
HowardHughes.com 281.719.6100 28 Minimum Contractual Ground Lease Payments ($ in thousands) Future Cash Payments Pro-Rata Three months ended Year Ended Year Ending December 31, Ground Leased Asset Share Expiration Date December 31, 2020 December 31, 2020 2021 Thereafter Total Riverwalk (a) 100% 2045
Slide 29: Summary of Restructuring Expenses
HowardHughes.com 281.719.6100 29 thousands Liability as of (Benefit) Expense Liability as of Restructuring Expenses September 30, 2020 Settled in Q4 2020 Recorded in Q4 2020 December 31, 2020 Estimated Expenses Employee relocation $ 728 $ (1,020) $ 592 $ 300 Total Restructuring Liability (a) $ 728 $
Slide 30: Impact of COVID-19
HowardHughes.com 281.719.6100 30 Impact of COVID-19 thousands except percentages Billed Rent Comparison OPR SEA Q1 2020 Billed Rent $ 96,176 $ 4,951 Difference from Q1 2020 to Q4 2020 in Billed Rent (6.1) % (1.9) % Q1 2020 Net Recurring Revenues $ 89,610 $ 4,676 Difference from Q1 2020 to Q4 2020 in
Slide 31: Definitions
HowardHughes.com 281.719.6100 31 Stabilized - Properties in the Operating Assets and Seaport District segments that have been in service for more than 36 months or have reached 90% occupancy, whichever occurs first. If an office, retail or multifamily property has been in service for more than 36 mo
Slide 32: Reconciliation of Non-GAAP Measures
HowardHughes.com 281.719.6100 32 Reconciliation of Non-GAAP Measures (a) EBT excludes corporate expenses and other items that are not allocable to the segments. (b) The Company's share of NOI related to 110 North Wacker is calculated using our stated ownership of 18% and does not include the impact
Slide 33: Reconciliation of Seaport District segment EBT to Total NOI
HowardHughes.com 281.719.6100 33 Reconciliation of Seaport District segment EBT to Total NOI: thousands Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 FY 2020 FY 2019 Total Seaport District segment EBT (a) $ (11,730) $ (27,646) $ (24,636) $ (35,956) $ (12,464) $ (99,968) $ (59,242) Add back: Depreciation a
Slide 34: Reconciliation of Non-GAAP Measures (con't)
HowardHughes.com 281.719.6100 34 Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures thousands Three Months Ended December 31, Year Ended December 31, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2020 2019 2020 2019 Total residential land sales clos