Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Investor Day (November 2024)
139 slides from Howard Hughes's investor day presentation, Nov 18, 2024
Slide 1: 2024 Investor Day
2024 Investor Day November 18, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements Statements made in this presentation that are not historical facts, including statements accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “realize,” “should,” “transform,” “would,” and oth
Slide 3: Management Presenters
Management Presenters David O’Reilly L. Jay Cross Carlos Olea Chief Executive Officer President Chief Financial Officer HOWARD HUGHES 3
Slide 4: 2024 Investor Day Presentation Agenda
2024 Investor Day Presentation Agenda Welcome and Opening Video 20 min. State of the Business 5 min. Master Planned Communities 15 min. Operating Assets 10 min. Strategic Developments 25 min. HHCommunities 5 min. Corporate / Balance Sheet / Adjusted Operating Cash Flow 10 min. NAV Update 5 min. Q&A
Slide 5: HHH Investor Day Video
HHH Investor Day Video Click Here HOWARD HUGHES 5
Slide 6: State of the Business
State of the Business Deealand Wheghen
Slide 7: Master Planned Communities: Impressive Residential Performance
(1,2) Impressive Residential Performance Master Planned The Woodlands Communities Summerlin Bridgeland The Woodlands Hills 3 Years of Robust Results $1,344 $587 $1,295 $448 $468 $701 $337 $1.0B (2) $619 MPC EBT Price per Acre Price per Acre Price per Acre Price per Acre 2021 3Q '24 2021 3Q '24 2021
Slide 8: Operating Assets: New NOI Records Every Year Since 2021
New NOI Records Achieved Every Year Since 2021 Operating Assets $257M Solid Growth Since 2021 $241M $234M 17% $220M Total NOI Growth 2021 2022 2023 2024 Guidance 71% (1) Driven by Successful Results in Every Product Type Multi-Family NOI Growth Office Multi-Family Retail 1.4M 4 28% (2) 12% (2) Squar
Slide 9: Significant Value Creation Unlocked via New Developments
Significant Value Creation Unlocked via New Developments 19 Projects Underway Between 2022 and 2024 Operating Total Estimated Square Feet Project MPC Units Assets Development Stabilization Existing Delivered or Under Home Inventory Construction 66% 4.6M Multi-Family 1 Riva Row Starling at Bridgeland
Slide 10: New Financings Fortify the Balance Sheet
New Financings Fortify the Balance Sheet Despite Challenging Credit Markets Financings Completed 2022 to 2024 Loan Type Property Type $1.3B $0.8B $1.1B $0.7B Construction Refinancings $3.0B Condos Multi-Family Total $0.6B $0.3B $0.6B $0.6B New Other Office Other HHH’s financing success has extended
Slide 11: SEG Spin-off Allows HHH to Focus on Core Business
SEG Spin-off Allows HHH to Focus on Core Business Master Residential and commercial land sales in Planned Spinoff completed July 31, 2024 large-scale master planned communities Communities 472k SF of culinary, Strategic Condominium projects and entertainment, and mixed-use Developments development o
Slide 12: HHH Competitive Advantages Drive Value Creation
HHH Competitive Advantages Drive Value Creation HHH is the dominant owner of commercial assets in our MPCs Little to No Competition in Office Multi-Family Undeveloped Land our MPCs Build just to meet demand, outperforming in all market cycles Operating G&A MPC EBT Self-Funding …Funds Assets Future N
Slide 13: Cycle of Value Creation Fuels Higher Land Sales
Cycle of Value Creation Fuels Higher Land Sales MPC Gross Asset Value (3) 2017 GAV Since 2017 2024 GAV 3,802 $642k $328 X Avg. Price $177 Acres Sold (2) $592 per Acre $708 $3.7B $1,695 = $3.9B $2,284 $2.4B $847 Total Land $922 Sales (1) Revenue Summerlin Bridgeland The Woodlands The Woodlands Hills
Slide 14: Master Planned Communities
Master Planned Communities Deealand Wheghen
Slide 15: MPC Highlights
Residential Land Appreciation: Price Per Acre Growth MPC Highlights Summerlin Bridgeland The Woodlands Hills (2) A Decade of Robust Results $1,344 $587 $448 13% $577 $382 $313 MPC Earnings Before Taxes (EBT) CAGR Since ’15 (1) (1) (1) 2015 3Q '24 2015 3Q '24 2017 EBT 3Q '24 Residential MPC Mix 58% 9
Slide 16: MPC Performance Trends Remain Resilient
MPC Performance Trends Remain Resilient New Home Sales Activity is Strong 2,741 2,761 2,471 2,289 2,251 2,146 1,785 1,574 1,263 1,047 (1) 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q '24 Residential Acres Sold Expected to Rise 571 565 460 456 449 351 350 377 375 323 276 (2) 2014 2015 2016 2017 20
Slide 17: Howard Hughes' Land Appreciates in Value
Howard Hughes’ Land Appreciates in Value Residential Land Appreciation: Price Per Acre Growth (2) Summerlin Bridgeland The Woodlands Hills $1,344 $1,328 $587 $448 $1,212 $564 $427 $544 $382 $468 $337 $439 $313 $310 $408 $274 $276 $772 $382 $372 $377 $385 $701 $659 $577 $584 $591 $463 (1) (1) (1) Exe
Slide 18: Teravalis: Development Taking Shape
Teravalis: Development Taking Shape Seven Homebuilders Contracted in Floreo as Momentum Picks Up Floreo – 2024 Land Sales in Village 3 595 Lots Sold YTD $781k (1) Price Per Acre Source: Company filings and data. HOWARD HUGHES 18 Note: As of September 30, 2024. (1) Weighted-average price per acre ach
Slide 19: MPC EBT Continued Strength Ahead
MPC EBT Continued Strength Ahead A New TrendNew is Emerging in Continued Home Sales MPC Performance Strength Post-Covid ’15-’20 Average MPC EBT: $193M ’21-’23 Average MPC EBT: $314M $341M $330M $317M $283M $264M $203M $209M $179M $190M $114M 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q '24(1) 202
Slide 20: State of the Residential Housing Market
State of the Residential Housing Market Residential Market Trends and Status Mortgage Current rate of 6.7%, well above existing homeowner rates Rates Housing Existing inventory approaching historical lows Inventory Market New home share increased to 16% of total homes sold Share Tightening Median ex
Slide 21: 30-Yr Mortgage Rates Provide New Home Sales Tailwinds
30-Yr Mortgage Rates Provide New Home Sales Tailwinds 8.0% Existing and New Mortgage Spreads: 6.7% 7.0% Rate on Existing Mortgages: 4.0% Current Ave. Mortgage Rate: 6.7% 6.0% Current Spread: 270bps 5.0% 4.0% 3.0% 4.0% 2.0% 1.0% 0.0% Rate on Existing Mortgages Avg. 30-Year Mortgage Rate Mortgag
Slide 22: Opportunity in Existing Homes' Historically Low Inventory
Opportunity in Existing Homes’ Historically Low Inventory Home Shortage Provides Opportunity Existing Home Inventory Experiences Significant Decline 4,500 Existing Homes 35% Peak: 4,040k Existing Home Inventory 4,000 30% 66% Down 3,500 New Homes Share of Inventory Since 2000s Peak Existing Homes Inv
Slide 23: Percentage of New Home Sales Nearing 20-Year High
Percentage of New Home Sales Nearing 20-Year High New Home Sales Continued Strength New Home Sales Share More Than Doubled Since 2010 1.4M Sep ’24 New Home 16% Share of Total Sales: 16.1% Though existing home sales are 14% 1.2M down due to the macro environment, new homes are bridging the gap New Ho
Slide 24: New Homes: More Benefits at the Same Price Point
New Homes: More Benefits at the Same Price Point New Homes Offer Numerous Benefits Existing and New Home Median Price Spreads $480k Rate buydowns, covered closing costs, Builder and flexible financing options that $426k Incentives existing homeowners have difficulty $440k offering $400k Homebuyers’
Slide 25: Positive Dynamics that Ensure Continued Momentum
Positive Dynamics that Ensure Continued Momentum Housing Starts Continue to Steadily Rise Since 2010 1.3M Increase from Baseline 1.03M Housing Starts Since ’10 Decrease from Baseline 1.1M Jan '10 Baseline Starts 0.9M 510k 517K 0.7M 0.6M 0.4M 0.2M 101% 0.0M Jan-10 Nov-11 Sep-13 Jul-15 May-17 Mar-19 J
Slide 26: Numerous Demand Drivers Favor Future MPC Success
Numerous Demand Drivers Favor Future MPC Success Current Market Offers Tailwinds and Shields New Homes from Macro Trends Current mortgage rate of 6.7%, which is ~270bps higher than the average existing mortgage at 4.0% Housing shortage driven by inventory of existing homes at historical lows Pandemi
Slide 27: Operating Assets
Operating Assets Deealand Wheghen
Slide 28: Operating Assets Continue to Achieve New Record Highs
Operating Assets Office Retail Multi-Family Other Dispositions $257 Continue to Achieve $241 $234 $1 New Record Highs $221 $3 $12 $9 $208 $10 7% $194 $9 $62 $29 $4 $181 $55 $11 $40 $7 $25 Total NOI Increase $156 $24 $25 FY ’24 vs. FY ’23 $140 $20 $6 $52 $20 $52 $4 $40 $52 $121 $28 $257 $16 $63 12% (
Slide 29: Operating Assets Performance: Office
Operating Assets Performance: Office 10-Year NOI Performance Premier Office Assets Add Incremental Value Houston Columbia Summerlin 9950 Woodloch 6100 Merriweather 1700 Pavilion Forest Downtown Columbia Summerlin The Woodlands Completed 3Q ’19 Completed 4Q ’22 Acquired in 4Q ’19 $123 $118 $114 $110
Slide 30: Transformational Leasing Success: Premier Office Assets
Transformational Leasing Success: Premier Office Assets 9950 Woodloch Forest 6100 Merriweather 1700 Pavilion The Woodlands Downtown Columbia Summerlin Acquired empty 4Q’19 Completed 3Q ’19 Completed 4Q ’22 ~350k SF Leased in ’22-’24 ~110k SF Leased in ’22-’24 ~245k SF Leased in ’22-’24 $18M Stabiliz
Slide 31: Unlocking Greater Value in the Houston Office Market
Unlocking Greater Value in the Houston Office Market Recent Leasing Success has been Concentrated in The Woodlands Town Center 76% ~430k 94% 3Q ’21 Leased 3Q ’24 Leased Office SF The Leased The Woodlands Woodlands In the past Town Center Town Center three-years Class A-Office Class A-Office Our Focu
Slide 32: Columbia Office Recent Development Success
Columbia Office Recent Development Success Columbia Office Success: High Leasing Rates and Market-Leading NOI One Merriweather Two Merriweather 6100 Merriweather 94% 92% 98% Leased Leased Leased Class-A Assets Demonstrate Exceptional Leasing Demand and Financial Strength 661k $18M 96% Square Feet St
Slide 33: Strategic Enhancements to Columbia Office Assets
Strategic Enhancements to Columbia Office Assets Merriweather Row Office Improvements Size: 926k SF Leased: 74% Elevator upgrades Restroom remodels Prioritizing improvements and relocating our HHH regional office to Merriweather Row to enhance value Recent improvements are crucial for the assets' su
Slide 34: One Mall North: Prime Redevelopment Opportunity
One Mall North: Prime Redevelopment Opportunity Downtown Columbia One Mall North by the Numbers Size: 100k SF Leased: 48% Acquired at foreclosure for $22M 5.4 acres of prime land One Mall North is set to unlock substantial value through redevelopment, transforming a prime location into a Change of u
Slide 35: HHH Office Assets Outpace the Las Vegas Market
HHH Office Assets Outpace the Las Vegas Market Occupancy Trends: HHH vs. Las Vegas Market HHH Outperforms the Market HHH Market HHH’s quick absorption of new office 100% space showcases strong market demand 95% 1700 Pavilion The occupancy drop from 4Q 2022 to 3Q Opening 2023 was due to the opening o
Slide 36: HHH Office Assets Outpace the Las Vegas Market
HHH Office Assets Outpace the Las Vegas Market Average Monthly Asking Rent: HHH vs. Las Vegas Market HHH Outperforms the Market HHH Market $4.11 HHH’s 4.3% asking rent CAGR significantly $3.94 $3.98 outpaces the 2.4% CAGR of the Las Vegas $3.63 market HHH’s strong rent growth reflects our ability to
Slide 37: Operating Assets Performance: Multi-Family
Operating Assets Performance: Multi-Family (2) (2) 10-Year NOI Performance Same Store NOI Growth Stabilized Leased % Houston Columbia Summerlin $49 Houston $65 $45 95% Leased $62 Summerlin $55 96% Leased (2) Columbia $40 (1) 96% Leased 2023 3Q '24 New New Properties Properties in in Lease-Up Lease-U
Slide 38: HHH Value Creation: Spotlight on Marlow
HHH Value Creation: Spotlight on Marlow NAV Growth through Development Marlow Multi-Family Value Creation Marlow Operating Asset Value Stabilized NOI $9,320 Development Cost $121,831 Cap Rate 5.6% MPC Value of Commercial Land Acres 3.98 Price per Acre $580 Net NAV Impact $42.74 Per Share $0.86 7.7%
Slide 39: HHH Value Creation: Spotlight on Tanager Echo
HHH Value Creation: Spotlight on Tanager Echo NAV Growth through Development Tanager Echo Multi-Family Value Creation Tanager Echo Operating Asset Value Stabilized NOI $5,890 Development Cost $86,311 Cap Rate 5.3% MPC Value of Commercial Land Acres 2.94 Price per Acre $1,200 Net NAV Impact $21.61 Pe
Slide 40: Operating Assets Performance: Retail
Operating Assets Performance: Retail 10-Year NOI Performance Despite Multiple Dispositions…. Summerlin Ward Village Houston Columbia Since 2020 $55 $53 $52 $52 $52 $54 399k $6M $46M $49 Square Feet NOI Net Proceeds $47 $42 $36 ….Retail NOI is Near All-Time Highs Anaha Retail - Ward Village $54M $42M
Slide 41: Downtown Summerlin: HHH's Premier Retail Destination
Downtown Summerlin: HHH’s Premier Retail Destination Improving Sales/SF through Upcoming Expirations 71 tenants representing ~300k SF or 25% of the asset expire in 2025 and 2026 Provides HHH an opportunity to improve our tenant base to drive rents and sales higher Space backfilled by Lego | Sales/SF
Slide 42: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing and Under Construction Developments $19 $354 $86 $249 Office Amount Percent Houston $26M 47% Incremental Asset Type NOI Columbia $14M 26% Office $55 Summerlin $1M 2% Retail $13 Multi-Family $16 Unstabilized $1
Slide 43: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing and Under Construction Developments $19 $354 $86 $249 Incremental Asset Type NOI Ward Village Redevelopment Office $55 and Lease Up Retail $13 Multi-Family $16 Downtown Summerlin Other $2 Tenant Upgrades Total
Slide 44: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing and Under Construction Developments $19 $354 $86 $249 85% comes from 3 new Incremental developments in lease-up Asset Type NOI Office $55 Tanager Echo Retail $13 (now 74% leased) Multi-Family $16 Other $2 Marl
Slide 45: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing and Under Construction Developments $19 $354 $86 Incremental Property NOI $249 Multi-Family $10 1 Riva Row $10 Office $2 One Bridgeland Green $2 Retail $7 Village Green $2 Grogan’s Mill $1 Summerlin Grocery $2
Slide 46: Strategic Developments
Strategic Developments Deealand Wheghen
Slide 47: Strategic Focus on High-Impact Developments
Strategic Focus on High-Impact Developments Historical Development Returns are Strong HHH’s Reduced Operating Assets Development Pace (1) (1) ~$3.0B 6 $481M 3Q ’22 Assets Under Total Dev Deployed into Operating Assets Construction Costs Developments 9% 72 18% 5 $285M Historical Total Historical 3Q ’
Slide 48: Texas
THE woSollanps HILLS She — (en Nc
Slide 49: Under Construction: 1 Riva Row
Under Construction 1 Riva Row Multi-Family 268 1–3 Size Units Bedrooms Development $156M Cost Total Cost Construction 3Q ’23 2025 Timeline Commenced Completion Stabilization $10M 2028 Projections Stab. NOI Stab. Year Expect to command the highest multi-family rents ever achieved in The Woodlands HOW
Slide 50: 1 Riva Row
TEXAS 1 Riva Row HOWARD HUGHES 50 Source: Company filings and data.
Slide 51: 1 Riva Row
TEXAS 1 Riva Row HOWARD HUGHES 51 Source: Company filings and data.
Slide 52: 1 Riva Row – Construction Status
TEXAS 1 Riva Row – Construction Status HOWARD HUGHES 52 Source: Company filings and data.
Slide 53: Under Construction: The Ritz-Carlton Residences
Under Construction The Ritz-Carlton Residences Condo 111 39 Size Estate Homes Floor Plans 69% $334M Pre-sales Future Units Sold Revenue Construction 4Q ’24 2027 Timeline Start Completion The Woodlands’ first luxury condo project Will include a 5k SF high-end restaurant HOWARD HUGHES Source: Company
Slide 54: The Ritz-Carlton Residences, The Woodlands
TEXAS The Ritz-Carlton Residences, The Woodlands HOWARD HUGHES 54 Source: Company filings and data.
Slide 55: The Ritz-Carlton Residences, The Woodlands
TEXAS The Ritz-Carlton Residences, The Woodlands HOWARD HUGHES 55 Source: Company filings and data.
Slide 56: The Ritz-Carlton Residences, The Woodlands
TEXAS The Ritz-Carlton Residences, The Woodlands HOWARD HUGHES 56 Source: Company filings and data.
Slide 57: The Ritz-Carlton Residences – Construction Status
TEXAS The Ritz-Carlton Residences – Construction Status HUGHES LANDING ONE LAKES EDGE TWO LAKES EDGE HOWARD HUGHES 57 Source: Company filings and data.
Slide 58: Under Construction: Grogan's Mill Village Center Redevelopment
Under Construction Grogan's Mill Village Center Redevelopment Retail 32k $8.6M Center SF Total Cost Library and Community 54k $16.5M SF Total Cost Center Construction 3Q ’24 2025 Timeline Commenced Completion Retail Stabilization $850k 2028 Stab. NOI Stab. Year Projections Upon completion, the new l
Slide 59: Grogan's Mill Village Center – Land Swap Agreement
TEXAS Grogan’s Mill Village Center – Land Swap Agreement In 2023, HHH agreed to exchange HUGHES LANDING the new library and community center for the site of the existing RITZ- CARLTON library and community center in RESIDENCES The Woodlands To Howard Hughes THE WOODLANDS MALL Current library and com
Slide 60: Grogan's Mill – Library and Community Center Construction Status
TEXAS Grogan’s Mill – Library and Community Center Construction Status HOWARD HUGHES 60 Source: Company filings and data.
Slide 61: Under Construction: Village Green at Bridgeland Central
Under Construction Village Green at Bridgeland Central Retail 28k 100% Pre-Leased/ Size SF Negotiations Development $22M Cost Total Cost Construction 1Q ’24 4Q ’24 Timeline Commenced Completion First retail development in Bridgeland's future 925-acre commercial hub Adjacent to the Starling at Bridge
Slide 62: Village Green at Bridgeland Central
TEXAS Village Green at Bridgeland Central HOWARD HUGHES 62 Source: Company filings and data.
Slide 63: Village Green at Bridgeland Central
TEXAS Village Green at Bridgeland Central HOWARD HUGHES 63 Source: Company filings and data.
Slide 64: Under Construction: One Bridgeland Green
Under Construction One Bridgeland Green Office 50k 87% Pre-Leased/ Size SF Negotiations Development $35M Cost Total Cost Construction 2Q ’24 2025 Timeline Commenced Completion First Office Development in Bridgeland First Mass Timber Office Development in the Greater Houston Area HOWARD HUGHES Source
Slide 65: One Bridgeland Green
TEXAS One Bridgeland Green HOWARD HUGHES 65 Source: Company filings and data.
Slide 66: One Bridgeland Green – Construction Status
TEXAS One Bridgeland Green – Construction Status HOWARD HUGHES 66 Source: Company filings and data.
Slide 67: Nevada
NEVADA HOWARD HUGHES 67
Slide 68: Under Construction: Summerlin Grocery Anchored Center
Under Construction Summerlin Grocery Anchored Center Size 67k 75% SF Pre-leased Development $46M Cost Total Cost Construction 3Q ’23 4Q ’24 Timeline Commenced Completion Stabilization $1.8M 2027 Projections Stab. NOI Stab. Year Important Amenity Located Adjacent to Tanager and Tanager Echo Apartment
Slide 69: Summerlin Grocery Anchored Center
NEVADA Summerlin Grocery Anchored Center In-Line Retail HOWARD HUGHES 69 Source: Company filings and data.
Slide 70: Proposed Summerlin Movie Studios
Proposed Summerlin Movie Studios ~395k 10 Size Production SF Stages County Clark County Entitlements Approval Approved in March 2024 Legislative State to Deliberate Proposed Film Tax Credit Bill Approval in February 2025 2028 Timeline Estimated Completion Proposed joint venture between HHH and Sony
Slide 71: Summerlin Movie Studios
NEVADA Summerlin Movie Studios DOWNTOWN DOWNTOWN SUMMERLIN SUMMERLIN 2 MILES MOVIE STUDIO AND RETAIL SITES ONE MERIDIAN LAS VEGAS ARISTOCRAT STRIP 9 MILES HOWARD HUGHES 71 Source: Company filings and data.
Slide 72: Summerlin Movie Studios
NEVADA Summerlin Movie Studios HOWARD HUGHES 72 Source: Company filings and data.
Slide 73: Summerlin Movie Studios – Adjacent Retail
NEVADA Summerlin Movie Studios – Adjacent Retail HOWARD HUGHES 73 Source: Company filings and data.
Slide 74: Hawai'i
HAWAI’I HOWARD HUGHES 74
Slide 75: Ward Village Condo Towers by the Numbers
Ward Village Condo Towers by the Numbers $ Millions Revenues by Tower (Since Inception) $698 $6.2B Past and Future Revenues Closed $516 $513 and $219 4,839 Sold- Out $537 Units Closed and Under-Contract $635 ~25-30% Gross Profit Margin(1) 100% $373 (2) $777 Pre-Sold Under 96% 7 3 1 Pre-Sold $691 Con
Slide 76: Strong Record of Delivering World-Class Condominiums
Strong Record of Delivering World-Class Condominiums Completed and Sold-Out Towers – 2016 to 2023 KE WAIEA ANAHA AE’O ’A’ALI’I KŌ’ULA KILOHANA 177 Units 317 Units 465 Units 423 Units 750 Units 565 Units 2016 2017 2018 2019 2021 2022 2,697 Condominium Units Generated $3.1B of Condo Sales Revenue HOWA
Slide 77: New Condo Developments Underway
New Condo Developments Underway Now Complete Under Construction Pre-Sales VICTORIA (1) ULANA THE PARK KALAE THE LAUNIU PLACE 349 Units 696 Units 545 Units 329 Units 485 Units 2024 2025 2026 2027 2028 Towers Represent $3.1B of Future Contracted Revenue HOWARD HUGHES Source: Company filings and data.
Slide 78: Ward Village – Full Development
HAWAI’I Ward Village – Full Development Completed Under Construction Pre-Sales Future HOWARD HUGHES 78 Source: Company filings and data.
Slide 79: Recently Completed: Victoria Place
Recently Completed Victoria Place Size 349 Units Pre-sales 100% $777M Future Contracted Units Sold Revenue Construction 1Q ’21 4Q ’24 Timeline Start Completion First Row Luxury Tower Expect ~$760M of Condo Sales Revenue with 28% Gross Margins in 4Q’ 24 HOWARD HUGHES Source: Company filings and data.
Slide 80: Victoria Place
HAWAI’I Victoria Place HOWARD HUGHES 80 Source: Company filings and data.
Slide 81: Victoria Place
HAWAI’I Victoria Place HOWARD HUGHES 81 Source: Company filings and data.
Slide 82: Victoria Place
HAWAI’I Victoria Place HOWARD HUGHES 82 Source: Company filings and data.
Slide 83: Under Construction: The Park Ward Village
Under Construction The Park Ward Village Size 545 27k Units SF Retail Pre-sales 96% $691M Future Contracted of Units Revenue Construction 4Q ’22 2026 Estimated Timeline Start Completion Retail to Generate $1.9M of Stabilized NOI 20 Units Remaining to Sell HOWARD HUGHES Source: Company filings and da
Slide 84: The Park Ward Village
HAWAI’I The Park Ward Village HOWARD HUGHES 84 Source: Company filings and data.
Slide 85: The Park Ward Village
HAWAI’I The Park Ward Village HOWARD HUGHES 85 Source: Company filings and data.
Slide 86: The Park Ward Village
HAWAI’I The Park Ward Village HOWARD HUGHES 86 Source: Company filings and data.
Slide 87: The Park Ward Village – Construction Status
HAWAI’I The Park Ward Village – Construction Status HOWARD HUGHES 87 Source: Company filings and data.
Slide 88: Under Construction: Ulana
Under Construction Ulana Size 696 32k Units SF Retail Pre-sales 100% $373M Future Contracted of Units Revenue Construction 1Q ’23 4Q ’25 Estimated Timeline Start Completion Retail to Generate $760k of Stabilized NOI Satisfies HHH’s Remaining Workforce Housing Requirements HOWARD HUGHES Source: Compa
Slide 89: Ulana Ward Village
HAWAI’I Ulana Ward Village HOWARD HUGHES 89 Source: Company filings and data.
Slide 90: Ulana Ward Village
HAWAI’I Ulana Ward Village HOWARD HUGHES 90 Source: Company filings and data.
Slide 91: Ulana Ward Village
HAWAI’I Ulana Ward Village HOWARD HUGHES 91 Source: Company filings and data.
Slide 92: Ulana Ward Village – Construction Status
HAWAI’I Ulana Ward Village – Construction Status HOWARD HUGHES 92 Source: Company filings and data.
Slide 93: Under Construction: Kalae
Under Construction Kalae Size 329 2k Units SF Retail Pre-sales 92% $762M Future Contracted of Units Revenue Construction 2Q ’24 2027 Estimated Timeline Start Completion First Row Premier Tower 25 Units Remaining to Sell HOWARD HUGHES Source: Company filings and data. 93 Note: As of September 30, 202
Slide 94: Kalae
HAWAI’I Kalae HOWARD HUGHES 94 Source: Company filings and data.
Slide 95: Kalae
HAWAI’I Kalae HOWARD HUGHES 95 Source: Company filings and data.
Slide 96: Kalae
HAWAI’I Kalae HOWARD HUGHES 96 Source: Company filings and data.
Slide 97: Pre-Sales: The Launiu
Pre-Sales The Launiu Size 485 10k Units SF Retail Pre-sales 55% $453M Contracted Future of Units Revenue Construction 2025 2028 Estimated Estimated Timeline Start Completion First Row Premium Condo Tower Pre-Sales Commenced in 1Q 2024 HOWARD HUGHES Source: Company filings and data. 97 Note: As of Se
Slide 98: The Launiu
HAWAI’I The Launiu HOWARD HUGHES 98 Source: Company filings and data.
Slide 99: The Launiu
HAWAI’I The Launiu HOWARD HUGHES 99 Source: Company filings and data.
Slide 100: Future Ward Village Condos in Planning
Future Ward Village Condos in Planning 3 Condo Towers 834 Condo Units Up to ~$2.5B Potential Revenue Melia and ’Ilima Mahana Ward Village 18k SF Future Retail HOWARD HUGHES Source: Company filings and data. 100 Note: As of September 30, 2024.
Slide 101: Future Towers Melia and 'Ilima
Melia ’Ilima Future Towers Melia and ’Ilima Melia 221 8k Units SF Retail Partnership with ’Ilima 148 Discovery Land Units Company Timeline 2025 Pre-Sales Commence First Row Luxury on Ala Moana Beach Estimated Completion in 2030 HOWARD HUGHES Source: Company filings and data. 101 Note: As of Septembe
Slide 102: Melia and 'Ilima
Melia and ’Ilima Building Architecture Interior Design Landscape Architecture 15 Central Park West The Ritz-Carlton, Grand Cayman El Dorado Golf & Beach Club, Los Cabos The Diamondhead Dream Team – Bringing Melia and ’Ilima to Life HOWARD HUGHES Source: Company filings and data. 102
Slide 103: Melia and 'Ilima
HAWAI’I Melia and ’Ilima HOWARD HUGHES 103 Source: Company filings and data.
Slide 104: Melia and 'Ilima
HAWAI’I Melia and ’Ilima HOWARD HUGHES 104 Source: Company filings and data.
Slide 105: Melia and 'Ilima
HAWAI’I Melia and ’Ilima HOWARD HUGHES 105 Source: Company filings and data.
Slide 106: Future Tower Mahana Ward Village
Future Tower Mahana Ward Village Size 465 10k Units SF Retail 2026 Pre-sales Estimated Pre-Sales Commence Construction 2028 2031 Estimated Estimated Timeline Start Completion Third Row Development Represents the Final Condo Project Under Existing Entitlements HOWARD HUGHES Source: Company filings an
Slide 107: Mahana Ward Village
HAWAI’I Mahana Ward Village HOWARD HUGHES 107 Source: Company filings and data.
Slide 108: Ward Village Entitlements at Full Development
Ward Village Entitlements at Full Development 14 Condo Towers 5,935 Condo Units Up to ~$9B Potential Condo Revenue ~900k SF Retail HOWARD HUGHES Source: Company filings and data. 108 Note: As of September 30, 2024.
Slide 109: HHCommunities
HHCommunities Deealand Wheghen
Slide 110: HHH Sustainability Guidelines
HHH Sustainability Guidelines Master Planned Strategic Operating Corporate Communities Developments Assets Communities planned with Target LEED certification Mandated energy and Issued new carbon 20%+ open green space on all new developments water benchmarking reduction goals by 2030 with ex
Slide 111: HHCommunities: Driving Results and Receiving Recognition
HHCommunities: Driving Results and Receiving Recognition GRESB Sustainability Benchmark Green Certifications Certifications Across the Portfolio Sector Leader 83 LEED, ENERGY STAR and BOMA 360 1st Americas TEXAS MARYLAND NEVADA HAWAI’I Diversified Listed Peer Group – 2024 42 25 9 7 Energy Reduction
Slide 112: HHH Decarbonization Targets by 2030
HHH Decarbonization Targets by 2030 (vs. 2019 base year) Scope 3 Scope 3 Scope 1 and 2 Capital Goods Use of Sold Products Emissions reduction Absolute emissions Absolute emissions from use of sold reduction from reduction products per SF capital goods of sold building 46% 27.5% 55% Validated by Scie
Slide 113: Summerlin – Leading in Water Conservation
Summerlin – Leading in Water Conservation Growth Since 2018 20+ Years of Exceptional Water Management 2000 2022 2035 Goal First community in Nevada to implement strict water conservation guidelines ~7,300 211 GPCD 104 GPCD 86 GPCD Homes Southern Nevada Water Authority Consumption and Targets 2018 20
Slide 114: Teravalis – Water Management and Supply
Teravalis – Water Management and Supply Targeting a 35% Reduction vs. Arizona’s Current Consumption Water Rights in Teravalis US Avg. Arizona Teravalis 164 146 95 GPCD GPCD GPCD Community Requirements WaterSense and ENERGY STAR fixtures and appliances 100-Year Certificates of No natural turf all
Slide 115: HHH Culture
HHH Culture HHCares – Making a Positive Impact 2,800 220+ $2.6M Volunteer Charities Donated (Including $250k of Hours Supported employee donations and company matches) 865k 8,100+ $15k Employee Meals High School Award Packed Scholarships Moments As we build for the future, we remain sharply attuned
Slide 116: Corporate and Balance Sheet
Corporate and Balance Sheet Deealand Wheghen
Slide 117: HHH Financings and Future Debt Outlook
Debt Maturities by Segment Over the Next 5 Years HHH Financings and Operating Assets Future Debt Outlook MPC Strategic Development $1.7B Condo Development Years Until Maturity Corporate <1 16% $650M 6+ $1.2B 32% <2 8% 86% $12M $52M of Debt is Fixed $835M $650M or Capped <5 4% <3 22% <4 $490M (1) 18%
Slide 118: HHH Sufficient Recurring Income to Cover Debt
HHH Sufficient Recurring Income to Cover Debt Operating Assets Generate Ample Income to Service Debt Obligations 2.63x 2.48x 1.91x 1.82x Portfolio DSCR Retail DSCR 1.72x $257M 1.82x 3.13x $241M $234M $221M $194M $141M Multi-Family DSCR Office DSCR $140M $102M $94M 1.33x 1.68x $84M Operating Assets W
Slide 119: HHH has Significantly Reduced and Stabilized Cash G&A
HHH has Significantly Reduced and Stabilized Cash G&A 10-Year Cash G&A Trend (1) FY 2024 Cash G&A Guidance $137 Stabilization of G&A Lower End Mid-Point High End $83M $85.5M $88M $104 $92 (1) $82 $83 $86 Efficient Operations $80 $74 $76 $72 Decade of performance shows HHH’s $65 ability to right-size
Slide 120: Adjusted Operating Cash Flow Metric
Adjusted Operating Cash Flow Metric
Slide 121: New Guidance Metric: Adjusted Operating Cash Flow
New Guidance Metric: Adjusted Operating Cash Flow Giving Clarity into HHH’s Self-Funding Business Model Recurring Income Recurring Expenses A straightforward cash flow 1 metric that investors can easily track and model Operating Assets NOI Interest Expense Adjusted Utilizes previously provided MPC 2
Slide 122: Adjusted Operating Cash Flow Reflects Strong Results
Adjusted Operating Cash Flow Reflects Strong Results (1) (2) 2024 Adjusted Operating Cash Flow Capital Allocation Decisions $796M $209M Future Share Debt $541M Developments Buybacks Paydown $330M $255M Investing in current developments significantly improves our communities and strengthens our fin
Slide 123: Positive Outlook with Continued Growth Ahead
Positive Outlook with Continued Growth Ahead Strong 2025 Expected Through Successful 2026 and 2027 to Significantly Benefit Execution of HHH’s Business Model from Exceptional Condo Pre-Sales MPC EBT is anticipated to exceed historical 2026 averages and align with strong results EBT achieved over the
Slide 124: NAV Update
NAV Update Deealand Wheghen
Slide 125: Meaningful Upside Reflected in 2024 NAV
Meaningful Upside Reflected in 2024 NAV Tremendous Value Opportunity Illustrative Sum of the Parts Value During last year’s Investor Day, management walked HHH Segments NAV Per Share investors through HHH’s illustrative sum of the parts analysis Operating Assets $1,178 $24 HHH’s conservative sum
Slide 126: Bridging NAV From The Previous Investor Day
Bridging NAV From The Previous Investor Day HHH NAV/Share by Segment Financing Increase Offset by Value Creation HHH Segments Jun ’23 Sep ’24 $6 $0 $118 $7 ($1) Operating Assets $24 $24 $106 Master Planned Communities $98 $104 Condominiums $28 $27 Corporate ($44) ($37) Continuing Ops Total $106 $118
Slide 127: Operating Assets are an Impactful Component to NAV
Operating Assets are an Impactful Component to NAV 2024 Operating Assets NAV Operating Assets NAV Shifts Multi-Family New Developments Offset Dispositions $32/Share Office +$3 -$1 -$1 -$1 $22/Share Multi-Family Retail Other Net Debt $24 Retail/Other NAV/Share $19/Share Disposed of New Disposed of In
Slide 128: Cycle of Value Creation Drives MPC NAV Growth
Cycle of Value Creation Drives MPC NAV Growth Price Per Acre Growth Outpaces Land Sales 7% $12 10% 1% $104 $(5) (1) $(1) $1.0M $98 Average Price Per Acre Summerlin 82% Bridgeland Floreo The Woodlands Hills Driven by the quality of our communities, price per (1) acre reached an average record high
Slide 129: All-Time High in Condominium Construction
All-Time High in Condominium Construction New Towers Give Potential for Future Growth $28 $2 $27 $(1) $(1) $(1) Timing of future condo Timing of towers towers under construction and sell-out of A’ali’i and Ko’ula inventory Ward Village 2023 NAV Towers Under Construction Net Debt Ritz-Carlton Residen
Slide 130: Final Thoughts… HHH Investor Day
Final Thoughts… HHH Investor Day 2024 With the Seaport Entertainment spinoff completed, we are solely focused on creating value within our core businesses We have successfully navigated market headwinds across the portfolio and delivered significant growth and new financial records in every segm
Slide 131: Q&A
Q&A Deealand Wheghen
Slide 132: Appendix
Appendix Deealand Wheghen
Slide 133: NAV Sensitivity Analysis
NAV Sensitivity Analysis NAV Impact Based on Changes in Assumptions Change in Operating Assets Cap Rate 1.0% 0.5% 0.0% (0.5)% (1.0)% (1.0)% $114 $119 $125 $132 $140 Discount Rate Change in (0.5)% $110 $115 $121 $128 $136 0.0% $107 $112 $118 $124 $132 0.5% $104 $109 $114 $121 $129 1.0% $101 $105 $111
Slide 134: Operating Assets NAV
Operating Assets NAV NAV Detail NAV Assumptions 2023 2024 2023 2024 Stabilized Asset Per Asset Per (1) (1) Cap Rates Assets Value Share Value Share Office $1,009 $991 Office 11.2% 11.7% Multi-Family 1,119 1,198 Multi-Family 5.3% 5.2% Retail 795 725 Retail 6.5% 6.8% Other 289 169 Other 6.0% 6.0% Stab
Slide 135: Master Planned Communities NAV
Master Planned Communities NAV NAV Detail NAV Assumptions 2023 2024 Residential Assumptions Commercial Assumptions Asset Per Asset Per Land Price Growth Rate Land Price Growth Rate Residential (1) (1) Value Share Value Share Teravalis 6.0% Teravalis 3.5% Teravalis $517 $660 Floreo 6.0% Floreo 3.5% F
Slide 136: Condominium NAV
Condominium NAV NAV Detail NAV Assumptions 2023 2024 Completed & Under Construction Towers 2023 2024 Completed & Under Asset Per Asset Per Discount Rate Construction Towers Value Share Value Share Remaining Units on Completed Towers 4.0% - (1) Condo Tower Net Asset Value $358 $522 Under Construction
Slide 137: Net Debt Reconciliation
Net Debt Reconciliation 2023 Summary 2024 Summary Cash & Cash Cash & Cash Net Debt Debt Net Debt Net Debt Debt Net Debt Equivalents Equivalents Operating Assets (1) $(2,397) $21 $(2,376) Operating Assets (1) $(2,444) $15 $(2,429) Master Planned Communities (434) 731 297 Master Planned Communities (4
Slide 138: Other Assets / (Liabilities) & Other RE Assets
Other Assets / (Liabilities) & Other RE Assets Other Assets / (Liabilities) Other Real Estate Assets 2023 2024 2023 2024 Other Cash Assets Other Real Estate Assets Restricted cash $204 $108 West End Alexandria $57 $57 Accounts receivable, net 104 101 Total Book Value $57 $57 Notes receivable 0 0 Def
Slide 139: Reconciliation of Operating Assets Segment EBT to NOI
Reconciliation of Operating Assets Segment EBT to NOI HOWARD HUGHES Source: Company filings and data. 139 Note: As of September 30, 2024.
Howard Hughes Holdings — Investor Day (November 2024) on 6ix