Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q1 2024 Earnings Presentation
33 slides from Howard Hughes's earnings presentation, May 8, 2024
Slide 1: Supplemental Information Three Months Ended March 31, 2024
Howard Hughes Holdings Inc. Supplemental Information Three Months Ended March 31, 2024 NYSE: HHH Exhibit 99.2
Slide 2: Cautionary Statements
HOWARD HUGHES 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 performance and
Slide 3: Table of Contents
3 Table of Contents Table of Contents FINANCIAL OVERVIEW Definitions 4 Company Profile 5 Financial Summary 7 Balance Sheets 9 Statements of Operations 10 OPERATING PORTFOLIO PERFORMANCE Same Store Metrics 11 NOI by Region 13 Stabilized Properties 15 Unstabilized Properties 17 Under Construction Prop
Slide 4: Definitions
HOWARD HUGHES 4 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 multi-family property has been in service for more than 36 months but does not exceed
Slide 5: Company Profile - Summary & Results
HOWARD HUGHES 5 The Park Ward Village 2% The Launiu 72% Ritz-Carlon Residences 22% Kalae 4% Bridgeland 68% Summerlin 29% Teravalis 3%Recent Company Highlights Q1 2024 Company Performance Diluted Earnings / Share $ (1.06) FFO / Diluted Share $ (0.06) Core FFO / Diluted Share $ (0.12) AFFO / Diluted S
Slide 6: Path to Estimated Stabilized NOI
HOWARD HUGHES 6 Office 32% Multi-family 41% Retail 27% Office 39% Multi-family 45% Retail 16% Office 49% Multi-family 26% Retail 19% Other 6% Office 52% Multi-family 21% Retail 20% Other 7% Office 27% Multi-family 65% Retail 8% Q1 2024 Path to Estimated Stabilized NOI Currently Under Construction Cu
Slide 7: Company Profile
HOWARD HUGHES 7 thousands except share price and billions Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Company Profile Share price (a) $ 72.62 $ 85.55 $ 74.13 $ 78.92 $ 80.00 Market Capitalization (b) $3.6b $4.3b $3.7b $3.9b $4.0b Enterprise Value (c) $8.6b $9.0b $8.4b $8.5b $8.4b Weighted avg. shares -
Slide 8: Financial Summary
HOWARD HUGHES 8 Financial Summary (a) The Company’s share of NOI related to the Tin Building by Jean-Georges and the Lawn Club is calculated using our current partnership funding provisions. (b) Excludes a $3.0 million charge in the first quarter of 2024 and a $16.1 million charge in the second quar
Slide 9: Balance Sheets
HOWARD HUGHES 9 thousands except par values and share amounts (unaudited) March 31, 2024 December 31, 2023 ASSETS Master Planned Communities assets $ 2,481,538 $ 2,445,673 Buildings and equipment 4,207,900 4,177,677 Less: accumulated depreciation (1,071,110) (1,032,226) Land 303,380 303,685 Developm
Slide 10: Statements of Operations
HOWARD HUGHES 10 thousands except per share amounts (unaudited) Q1 2024 Q1 2023 REVENUES Condominium rights and unit sales $ 23 $ 6,087 Master Planned Communities land sales 32,415 59,361 Rental revenue 107,751 97,864 Other land, rental, and property revenues 18,383 18,968 Builder price participatio
Slide 11: Same Store Metrics - Operating Assets Segment
HOWARD HUGHES 11 thousands YTD Q1 2024 YTD Q1 2023 $ Change % Change Same Store Office Houston, TX $ 20,243 $ 18,554 $ 1,689 9 % Columbia, MD 6,098 6,177 (79) (1) % Las Vegas, NV 4,258 3,054 1,204 39 % Total Same Store Office 30,599 27,785 2,814 10 % Same Store Retail Houston, TX 3,039 3,405 (366) (
Slide 12: Same Store Performance - Operating Assets Segment
HOWARD HUGHES 12 thousands Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Same Store Metrics Stabilized Leasing Percentages Office 88 % 88 % 87 % 89 % 86 % Retail 95 % 96 % 95 % 96 % 96 % Multi-family 95 % 95 % 96 % 98 % 95 % Unstabilized Leasing Percentages Office 90 % 90 % 77 % 72 % 52 % Retail 66 % 66 %
Slide 13: NOI by Region
HOWARD HUGHES 13 thousands except Sq. Ft. and units % Ownership (a) Total Q1 2024 Occupied (b) Q1 2024 Leased (b) Q1 2024 Occupied (%) Q1 2024 Leased (%) In-Place NOI Estimated Stabilized NOI Time to Stabilize (Years) (c)Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Stabilize
Slide 14: NOI by Region, excluding Seaport (cont.)
HOWARD HUGHES 14 NOI by RegionNOI by Region, excluding Seaport (cont.) (a) Includes our share of NOI from our unconsolidated ventures. (b) Occupied and Leased metrics are as of March 31, 2024. (c) The expected stabilization date used in the Time to Stabilize calculation for all unstabilized and unde
Slide 15: Stabilized Properties
HOWARD HUGHES 15 thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Q1 2024 % Occupied (a) Q1 2024 % Leased (a) In-Place NOI (b) Est. Stabilized NOI (b) Office One Hughes Landing Houston, TX 100 % 200,639 61 % 65 % $ 2,350 $ 5,200 Two Hughes Landing Houston, TX 100 % 197,950 87
Slide 16: Stabilized Properties (cont.)
HOWARD HUGHES 16 Q1 2024 % Occupied (a) Q1 2024 % Leased (a) Estimated Stabilized NOI (b)thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units In-Place NOI (b) Multi-family Creekside Park Houston, TX 100 % — 292 n/a 94 % n/a 95 %
Slide 17: Unstabilized Properties
HOWARD HUGHES 17 Q1 2024 % Occupied (a) Q1 2024 % Leased (a) Development Costs Incurred to Date Total Estimated Development Costs In-Place NOI Est. Stabilized NOI (b) Est. Stab. Date (c) Est. Stab. Yield thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft.
Slide 18: Under Construction Properties
HOWARD HUGHES 18 Under Construction Properties thousands except Sq. Ft. and units Location % Ownership Estimated Rentable Square Feet Percent Pre- Leased (a) Const. Start Date Est. Stabilized Date (b) Development Costs Incurred to Date Total Estimated Development Costs Est. Stabilized NOI Est. Stab.
Slide 19: Seaport Operating Performance
HOWARD HUGHES 19 NOI by Region Q1 2024 Landlord Operations (a) Landlord Operations - Multi-family (b) Managed Businesses (c) Tin Building (d) Events and Sponsorships (e) Q1 2024 Totalthousands except sq. ft. Revenues (f) $ 3,271 $ 346 $ 4,004 $ 2,853 $ 1,028 $ 11,502 Operating expenses (f) (9,526) (
Slide 20: Completed Condominiums
HOWARD HUGHES 20 As of March 31, 2024 Waiea Anaha Ae`o Ke Kilohana ‘A‘ali‘i Kō'ula Total Key Metrics ($ in thousands) Location Ward Village Ward Village Ward Village Ward Village Ward Village Ward Village Type of building Luxury Luxury Upscale Workforce Upscale Upscale Number of units 177 317 465 42
Slide 21: Under Construction Condominiums
HOWARD HUGHES 21 As of March 31, 2024 Victoria Place The Park Ward Village Ulana Ward Village Total Key Metrics ($ in thousands) Location Ward Village Ward Village Ward Village Type of building Luxury Upscale Workforce Number of units 349 545 696 1,590 Avg. unit Sq. Ft. 1,164 847 623 819 Condo Sq. F
Slide 22: Predevelopment Condominiums
HOWARD HUGHES 22 As of March 31, 2024 Kalae The Launiu The Ritz-Carlton Residences Total Key Metrics ($ in thousands) Location Ward Village Ward Village The Woodlands Type of building Luxury Luxury Luxury Number of units 329 485 111 925 Avg. unit Sq. Ft. 1,207 950 2,524 1,230 Condo Sq. Ft. 397,203 4
Slide 23: Summary of Remaining Development Costs
HOWARD HUGHES 23 As of March 31, 2024 thousands Location Total Estimated Development Costs (a) Development Costs Incurred to Date Estimated Remaining to be Spent Remaining Buyer Deposits/ Holdback to be Drawn Debt to be Drawn Costs Remaining to be Paid, Net of Debt and Buyer Deposits/ Holdbacks to b
Slide 24: Portfolio Key Metrics
HOWARD HUGHES 24 MPC Regions Non-MPC Regions The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Floreo (a) Total Columbia Hawai‘i Seaport Total As of March 31, 2024 Houston, TX Houston, TX Houston, TX Las Vegas, NV Phoenix, AZ Phoenix, AZ MPC Regions Columbia, MD Honolulu, HI New York,
Slide 25: MPC Performance
HOWARD HUGHES 25 Master Planned Community Land Consolidated MPC Segment EBT The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Total Floreo (a) thousands Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Revenues: Residentia
Slide 26: MPC Land
HOWARD HUGHES 26 Master Planned Community Land Consolidated MPC Segment The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Floreo (a) thousands, except acres Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Key Performance Metrics: Residen
Slide 27: Lease Expirations
HOWARD HUGHES 27 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. Annualized Cash
Slide 28: Other Assets and Acquisition / Disposition Activity
HOWARD HUGHES 28 Other Assets Property Name Location % Ownership Acres Notes West End Alexandria Alexandria, VA 58% 41 West End Alexandria is a joint venture formed to redevelop the former Landmark Mall into four million square feet of residential, retail, commercial, and entertainment offerings wit
Slide 29: Debt Summary
HOWARD HUGHES 29 thousands March 31, 2024 December 31, 2023 Fixed-rate debt Unsecured 5.375% Senior Notes due 2028 $ 750,000 $ 750,000 Unsecured 4.125% Senior Notes due 2029 650,000 650,000 Unsecured 4.375% Senior Notes due 2031 650,000 650,000 Secured mortgages payable 1,482,958 1,485,494 Special I
Slide 30: Debt Summary (cont.)
HOWARD HUGHES 30 (a) Includes the impact of interest rate derivatives. (b) Does not include extension options, some of which have performance requirements. (c) Represents Secured Bridgeland Notes. (d) Represents 250 Water Street mortgage. (e) Excludes the Company's share of debt related to its uncon
Slide 31: Reconciliation of Operating Assets segment EBT to Total NOI
HOWARD HUGHES 31 Reconciliation of Operating Assets segment EBT to Total NOI thousands Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Total revenues $ 110,152 $ 104,406 $ 116,874 $ 121,427 $ 100,925 Total operating expenses (51,395) (52,329) (55,786) (54,452) (47,599) Segment operating income (loss) 58,757
Slide 32: Reconciliation of Seaport segment EBT to Total NOI
HOWARD HUGHES 32 Reconciliation of Non-GAAP Measures Reconciliation of Seaport segment EBT to Total NOI thousands Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Total revenues $ 11,502 $ 17,780 $ 29,490 $ 22,804 $ 11,897 Total operating expenses (21,485) (24,582) (33,303) (26,665) (18,916) Segment operatin
Slide 33: Reconciliations of Net Income to FFO
HOWARD HUGHES 33 RECONCILIATIONS OF NET INCOME TO FFO thousands except share amounts Q1 2024 Q1 2023 Net income attributable to common shareholders $ (52,477) $ (22,745) Adjustments to arrive at FFO: Segment real estate related depreciation and amortization 51,442 51,209 (Gain) loss on sale or dispo
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