Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q1 2021 Earnings Presentation
35 slides from Howard Hughes's earnings presentation, May 10, 2021
Slide 1: Supplemental Information Three Months Ended March 31, 2021
The Howard Hughes Corporation, 9950 Woodloch Forest Drive, Suite 1100, The Woodlands, TX 77380 HowardHughes.com 281.719.6100 Supplemental Information Three Months Ended March 31, 2021 NYSE: HHC Seaport New York, NY Exhibit 99.2 The Woodlands Towers at the Waterway The Woodlands, TX 6100 Merriweather
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 Ward Village - Sold Out Condominiums 18 Financial Summary 6 Stabilized Properties 13 Ward Village - Condominiums Remaining
Slide 4: Recent Company Highlights
HowardHughes.com 281.719.6100 4 ‘A‘ali‘i 17% Kō'ula 17% Victoria Place 65% Bridgeland 21% Summerlin 79% Woodlands/Woodlands Hills 0% Recent Company Highlights HOUSTON, March 15, 2021 (PRNewswire) - The Howard Hughes Corporation (HHC) announced the completion of the redemption of its remaining, outst
Slide 5: Company Profile - Summary & Results
HowardHughes.com 281.719.6100 5 Multi-family 91% Retail 9% Office 69% Multi-family 29% Retail 2% Office 46% Multi-family 20% Retail 20% Hotel 8% Other 6% Office 44% Multi-family 13% Retail 25% Hotel 10% Other 8% Office 64% Multi-family 32% Retail 4% Currently Under Construction Currently Unstabilize
Slide 6: Company Profile
HowardHughes.com 281.719.6100 6 $ in thousands except share price and billions Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Company Profile Share price (a) $ 95.13 $ 78.93 $ 57.60 $ 51.95 $ 50.52 Market Capitalization (b) $5.2b $4.3b $3.2b $2.9b $2.8b Enterprise Value (c) $8.7b $7.6b $6.5b $6.5b $6.3b We
Slide 7: Financial Summary
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 our
Slide 8: Balance Sheets
HowardHughes.com 281.719.6100 8 thousands except par values and share amounts March 31, 2021 December 31, 2020 ASSETS Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,714,092 $ 1,687,519 Buildings and equipment 4,137,760 4,115,493 Less: accumulated depreciation (6
Slide 9: Statements of Operations
HowardHughes.com 281.719.6100 9 Comparative Statements of Operations: Total PortfolioStatements of Operations thousands except per share amounts Q1 2021 Q1 2020 REVENUES Unaudited Unaudited Condominium rights and unit sales $ 37,167 $ 43 Master Planned Communities land sales 37,477 39,732 Rental rev
Slide 10: Income Reconciliations
HowardHughes.com 281.719.6100 10 thousands except share amounts YTD Q1 2021 YTD Q1 2020 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Net income attributable to common shareholders $ (66,594) $ (125,134) Adjustments to arrive at FFO: Segment real estate related depreciation and amortizati
Slide 11: NOI by Region, excluding Seaport
HowardHughes.com 281.719.6100 11 NOI by Region, excluding Seaport in thousands except Sq. Ft. and units Property % Ownership (a) Total Q1 2021 Occupied (#) Q1 2021 Leased (#) Q1 2021 Occupied (%) Q1 2021 Leased (%) Q1 2021 Annualized NOI (b) Stabilized NOI (c) Time to Stabilize (Years)Sq. Ft. Units
Slide 12: NOI by Region, excluding Seaport (con't)
HowardHughes.com 281.719.6100 12 NOI by RegionNOI by Region, excluding Seaport (con't) in thousands except Sq. Ft. and units Property % Ownership (a) Total Q1 2021 Occupied (#) Q1 2021 Leased (#) Q1 2021 Occupied (%) Q1 2021 Leased (%) Q1 2021 Annualized NOI (b) Stabilized NOI (c) Time to Stabilize
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. Q1 2021 % Occ. Q1 2021 % Leased Annualized Q1 2021 NOI (a) Est. Stabilized NOI (a) Office One Hughes Landing Houston, TX 100 % 197,719 92 % 97 % $ 5,350 $ 5,900 Two Hughes Landing Ho
Slide 14: Stabilized Properties - Multi-family
HowardHughes.com 281.719.6100 14 in thousands except Sq. Ft. and units Q1 2021 %Occ.(d) Q1 2021 % Leased (d) Property Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units Annualized Q1 2021 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 Q1 2021 %Occ.(a) Q1 2021 % 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 Operating Performance
HowardHughes.com 281.719.6100 17 NOI by RegionSeaport Operating Performance Q1 2021 Landlord Operations (a) Managed Businesses (b) Events, Sponsorships & Catering Business (f) Q1 2021 Total$ in thousands Historic District & Pier 17 Multi-Family (c) Historic District & Pier 17 (d) Tin Building (e) Re
Slide 18: Ward Village - Sold Out Condominiums
HowardHughes.com 281.719.6100 18 Ward Village - Sold Out Condominiums As of March 31, 2021 Anaha Ae‘o Ke Kilohana (a) Total Key Metrics ($ in thousands) Type of building Luxury Upscale Workforce Number of units 317 465 423 1,205 Avg. unit Sq. Ft. 1,417 838 696 940 Condo Sq. Ft. 449,205 389,663 294,2
Slide 19: Ward Village - Condominiums Remaining to be Sold
HowardHughes.com 281.719.6100 19 Ward Village - Condominiums Remaining to be Sold As of March 31, 2021 Waiea ‘A‘ali‘i Kō'ula Victoria Place Total Key Metrics ($ in thousands) Type of building Ultra-Luxury Upscale Upscale Ultra-Luxury Number of units 177 750 565 349 1,841 Avg. unit Sq. Ft. 2,138 520
Slide 20: Summary of Remaining Development Costs
HowardHughes.com 281.719.6100 20 Summary of Remaining Development Costs in thousands Property Location Total Estimated Costs (a) Costs Paid Through March 31, 2021 Estimated Remaining to be Spent Remaining Buyer Deposits/ Holdback to be Drawn Debt to be Drawn (b) Costs Remaining to be Paid, Net of De
Slide 21: Portfolio Key Metrics
HowardHughes.com 281.719.6100 21 MPC Regions Non-MPC Regions The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total Hawai‘i 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 Propertie
Slide 22: MPC Portfolio
HowardHughes.com 281.719.6100 22 (a) Commercial acres may be developed by us or sold. (b) Reconciliation of GAAP MPC segment EBT to MPC Net Contribution is found under Reconciliation of Non-GAAP Measures on page 35. (c) Est. Stabilized NOI (Future) and Wtd. avg. time to stabilize (yrs.) represents a
Slide 23: Master Planned Community Land
HowardHughes.com 281.719.6100 23 Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total $ in thousands Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Revenues: Residential land sale revenues (a) $ — $ 8,701
Slide 24: Lease Expirations
HowardHughes.com 281.719.6100 24 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 25: Acquisition / Disposition Activity
HowardHughes.com 281.719.6100 25 thousands except rentable Sq. Ft. / Units / Acres Q1 2021 Acquisitions Date Acquired Property % Ownership Location Rentable Sq. Ft. / Units / Acres Acquisition Price No acquisition activity in Q1 2021 Q1 2021 Dispositions Date Sold Property % Ownership Location Renta
Slide 26: Other Assets
HowardHughes.com 281.719.6100 26 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 27: Debt Summary
HowardHughes.com 281.719.6100 27 thousands March 31, 2021 December 31, 2020 Fixed-rate debt: Unsecured 5.375% Senior Notes due 2025 $ — $ 1,000,000 Unsecured 5.375% Senior Notes due 2028 750,000 750,000 Unsecured 4.125% Senior Notes due 2029 650,000 — Unsecured 4.375% Senior Notes due 2031 650,000 —
Slide 28: Property-Level Debt
HowardHughes.com 281.719.6100 28 $ in thousands Asset Q1 2021 Principal Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Operating Assets Outlet Collection at Riverwalk 28,194 L+250 Floating 3.50 % Oct-21 20/25 Waterway Avenue 12,781 0.0
Slide 29: Property-Level Debt Notes
HowardHughes.com 281.719.6100 29 (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 $615.0 million term loan is swapped to an overall rate equal to 4.61%. The foll
Slide 30: Summary of Ground Leases
HowardHughes.com 281.719.6100 30 Minimum Contractual Ground Lease Payments ($ in thousands) Future Cash Payments Pro-Rata Three months ended Remaining Year Ending December 31, Ground Leased Asset Share Expiration Date March 31, 2021 2021 2022 Thereafter Total Riverwalk (a) 100% 2045-2046 $ 510 $ 1,2
Slide 31: Impact of COVID-19
HowardHughes.com 281.719.6100 31 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 Q1 2021 in Billed Rent (5.4) % (33.2) % Q1 2020 Net Recurring Revenues $ 89,610 $ 4,676 Difference from Q1 2020 to Q1 2021 i
Slide 32: Definitions
HowardHughes.com 281.719.6100 32 Stabilized - Properties in the Operating Assets and Seaport 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 months but
Slide 33: Reconciliation of Non-GAAP Measures
HowardHughes.com 281.719.6100 33 Reconciliation of Non-GAAP Measures (a) EBT excludes corporate expenses and other items that are not allocable to the segments. (b) During the third quarter of 2020, 110 North Wacker was completed and placed in service, resulting in the deconsolidation of 110 North W
Slide 34: Reconciliation of Seaport segment EBT to Total NOI
HowardHughes.com 281.719.6100 34 Reconciliation of Seaport segment EBT to Total NOI: thousands Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Total Seaport segment EBT (a) $ (12,474) $ (11,730) $ (27,646) $ (24,636) $ (35,956) Add back: Depreciation and amortization 6,835 6,777 7,174 6,776 20,875 Interest
Slide 35: Reconciliation of Non-GAAP Measures (con't)
HowardHughes.com 281.719.6100 35 Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures thousands Three Months Ended March 31, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2021 2020 Total residential land sales closed in period $ 34,737 $ 29,745 Total