Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Investor Day (September 2023)
142 slides from Howard Hughes's investor day presentation, Sep 6, 2023
Slide 1: 2023 Investor Day
2023 Investor Day September 6, 2023
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: HHH Investor Day Video
HHH Investor Day Video Click Here HOWARD HUGHES 4
Slide 5: 2023 Investor Day Presentation Agenda
2023 Investor Day Presentation Agenda Welcome 2 min. HHH Overview Video 3 min. State of the Business 15 min. Market Outlook 15 min. Development Pipeline: What’s Next? 30 min. HHCommunities 5 min. Corporate / Balance Sheet 5 min. NAV Update 15 min. Q&A 30 min. HOWARD HUGHES 5
Slide 6: HHH at a Glance
HHH at a Glance Howard Hughes is the country’s premier developer HHH Portfolio of large-scale master planned communities Highlights Proven track record of developing the most sought-after 6.8M SF 2.6M SF places to live in the nation Office Retail Self-funding business cycle, using proceeds from land
Slide 7: Opportunities Spanning from Wall St. to Waikiki
Opportunities Spanning from Wall St. to Waikiki Situated in affluent and growing markets Building award- winning communities Communities spread across six states Concentrated in low- Summerlin Seaport NEVADA NEW YORK tax / business-friendly states 36k acres of raw land remaining Columbia M
Slide 8: State of the Business
State of the Business Deealand Wheghen
Slide 9: Holding Company to Provide Financial Flexibility
Holding Company to Provide Financial Flexibility Howard Hughes Holdings Inc. (1) Jean-Georges Future HHC Restaurants Opportunity Core Real Estate MPC’s Operating Assets Strategic Developments Seaport Howard Hughes Holdings Inc. has become the new parent company of The Howard Hughes Corporation T
Slide 10: MPCs Produced Robust Results
(1) Residential Land Appreciation: Price Per Acre Growth MPCs Produced Summerlin Bridgeland The Woodlands Hills Robust Results $1,297 $407 $547 $313 $269M $584 $377 Earnings Before Taxes (EBT) 2Q ’23 TTM 2017 2Q '23 2017 2Q '23 2017 2Q '23 (1) Residential MPC Mix 19% 6% 11% 1% Residential Price Per
Slide 11: The Woodlands: Aria Isle at East Shore Custom Lot Sales
The Woodlands: Aria Isle at East Shore Custom Lot Sales Residential Acres 15 Revenue $43M EBT $20M Price per Acre Premier Lots 2 Premier Lot Closings Commenced Remain to be Sold in 4Q 2022 $2.8M HOWARD HUGHES Source: Company filings and data. 11 Note: As of Aug. 31st, 2023
Slide 12: Bridgeland Poised for Significant Commercial Growth
Bridgeland Poised for Significant Commercial Growth Chevron Purchases Over 77 Acres in Bridgeland Central The land sales were completed in 4Q ‘22 (~65 acres) and 3Q ‘23 (~12 acres) The site is located in Bridgeland Central—the MPC’s future 925-acre downtown The potential R&D campus will advanc
Slide 13: Teravalis: Development Taking Shape
Teravalis: Development Taking Shape Teravalis at a Glance 37k 100k 300k 55M Acres Future Future SF of Commercial Homes Residents Entitlements Floreo – The First Village Mass grading and infrastructure installation is well-underway Residential: - Mass grading the first phase comprising 330 acres
Slide 14: Operating Asset NOI Notches All-Time High
(1) Operating Asset NOI Office Retail Multi-Family Other Dispositions Notches All-Time High $239 $1 $243 $227 $3 $16 $217 $5 $20 $20 6% $180 $29 $16 $4 $191 $10 $40 $54 $57 NOI Increase $158 $25 $24 $25 FY ‘22 vs. FY ‘21 $20 $5 $19 $52 $6 $58 $51 $40 $16 $63 $243M $55 $64 NOI 2Q ‘23 TTM $111 $111 $1
Slide 15: Operating Asset Performance: Office
Operating Asset Performance: Office (1) 5-Year NOI Performance New and Expanded Office Leases The Woodlands Columbia Summerlin The Woodlands Columbia Summerlin 198k 159k 156k $114 142k 114k Sq. Ft. $110 $111 80k $84 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 9950 Woodloch Forest 6100 Merriweather 1700 Pavi
Slide 16: Operating Asset Performance: Multi-Family
Operating Asset Performance: Multi-Family (1) 5-Year NOI Performance Stabilized Leased % Houston Columbia Summerlin Houston Columbia Summerlin 97% 97% 99% 97% $53 96% 96% 96% 96% 95% 95% 94% 93% $40 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q $30 '22 '22 '23 '23 '22 '22 '23 '23 '22 '22 '23 '23 $27 (2) $25 $
Slide 17: Multi-Family Demand at Unprecedented Levels
Multi-Family Demand at Unprecedented Levels Bridgeland Downtown Columbia Summerlin Lakeside Row Juniper Tanager Opened 4Q 2019 Opened 1Q 2020 Opened 4Q 2019 Size: 312 Units Initial Rent(1): $1.58/SF Size: 382 Units Initial Rent(1): $2.40/SF Size: 267 Units Initial Rent(1): $1.96/SF Leased: 93% Curre
Slide 18: Operating Asset Performance: Retail
Operating Asset Performance: Retail 5-Year NOI Performance Stabilized Leased % Summerlin Ward Village Houston Columbia Houston Summerlin Ward Village 100% 100% 100% 94% 99% 93% 93% $53 $52 92% 91% 92% 91% $52 90% $36 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q '22 '22 '23 '23 '22 '22 '23 '23 '22 '22 '23 '23
Slide 19: Downtown Summerlin: Strengthening Tenant Base
Downtown Summerlin: Strengthening Tenant Base Sales/SF Improvement Impact of Upcoming Expirations $821 $817 $798 SF Expiring $725 89 tenants representing ~355k SF of leases expiring over a three- Percent of Total SF $648 year span, opening up the 363k $624 opportunity for impactful tenant $609 $582
Slide 20: Strong Returns on Recently Completed Strategic Developments
Strong Returns on Recently Completed Strategic Developments Marlow 1700 Pavilion Creekside Park Tanager Echo Starling at Bridgeland Medical Plaza The Location Bridgeland Downtown Columbia Summerlin Summerlin Woodlands Type Multi-Family Multi-Family Office Medical Office Multi-Family Size 358 Units 4
Slide 21: New Developments Unlock Tremendous Value
New Developments Unlock Tremendous Value Current Development Activity Track Record of Outperformance Square Feet Historical Under Construction 2.2M Yield on Cost 9.1% Estimated Historical Development Costs $1.8B Return on Equity 21.1% Communities Cash Equity With Active Projects 5 Invested Since 201
Slide 22: The Woodlands Village Retail Value Creation
The Woodlands Village Retail Value Creation Creekside Village Green Lake Woodlands Crossing Asset Details Asset Details Size (SF) 74,670 Size (SF) 60,261 Disposition Detail Disposition Detail In-Place NOI $2.4M In-Place NOI $1.3M Project Cost(1) (delivered 1Q ‘15) $15.0M Project Cost(1) (delivered 4
Slide 23: Ward Village Condo Sales by the Numbers
Ward Village Condo Sales by the Numbers Condo Revenues by Tower (Inception to August 2023) $ Millions $698 2,685 Units Sold and Closed $627 $533 $516 $513 $3.1B Revenues ~25-30% Gross Profit Margin(1,2) $219 Towers 6 Towers Under Tower in 3 1 Completed Construction Pre-Sales (1) Excludes charges for
Slide 24: Consistent Tower Delivery to Meet Oahu's Housing Needs
Consistent Tower Delivery to Meet Oahu’s Housing Needs Completed Towers WAIEA ANAHA AE’O KE KILOHANA ‘A‘ALI‘I KŌ‘ULA 44 Units Sold YTD FY ‘23 177 Units 317 Units 465 Units 423 Units 750 Units 565 Units Sold Out Sold Out Sold Out Sold Out Sold Out 99.6% Sold First Row Second Row Third Row Third Row T
Slide 25: Seaport Activity is at Record Levels
Seaport Activity is at Record Levels 47% Increase in Foot Traffic FY ‘22 vs. FY ‘21 $88M FY ‘22 Revenue Up 61% YoY 10% Increase in Foot Traffic YTD ‘23(1) HOWARD HUGHES Source: Company filings and data. 25 (1) As of Jul. 31st, 2023
Slide 26: Seaport: Significant Upside in Landlord Operations
Seaport: Significant Upside in Landlord Operations Pier 17 Fulton Market Building Current Office Tenants 100% leased Available IPIC movie theaters leased through 2035 20k 23k 88k New tenants coming late 2023 Global Fashion HQ SF SF SF ESPN recently extended to FY 2025 46k SF One waterfront
Slide 27: Seaport: Events are Delivering Strong Results
Seaport: Events are Delivering Strong Results The 2023 Summer Concert Series is the Most Successful Yet Average Ticket Scans Per Concert 3,124 ANNOUNCED SHOWS GROSS TICKET SALES SOLD OUT SHOWS 2,846 2,806 2,470 2,464 2018 2019 2021 2022 YTD 2023 61 $10M More Shows to Come $1M More Than Same Time in
Slide 28: Seaport: Premier Restaurants Building Momentum
Seaport: Premier Restaurants Building Momentum Restaurant Revenue per SF Restaurant Profit per SF FY 2021 FY 2022 FY 2023E(1) $1,621 $1,416 $1,282 $1,294 $190 $191 $1,059 $997 $924 $947 $107 $92 $95 $88 $35 $33 N/A N/A Restaurant 1 Restaurant 2 Restaurant 3 Restaurant 1 Restaurant 2 Restaurant 3 Man
Slide 29: Seaport: Tin Building's First Year in Review
Seaport: Tin Building’s First Year in Review One-of-a-Kind F&B Destination The Tin Building opened in August 2022 and has sparked significant interest from locals, tourists, and the media 54k 600+ Monthly revenue has grown nearly 3x since opening SF Culinary Total Full-service dining has perf
Slide 30: Market Outlook
Market Outlook Deealand Wheghen
Slide 31: State of the Residential Housing Market
State of the Residential Housing Market Mortgage rates are largely correlated nationally but not in our markets Builder incentives, such as rate buydowns, remain attractive to buyers of new homes Homeowners are reluctant to sell their historically low mortgages–severely limiting inventory of r
Slide 32: Monthly New Home Sales
National Home Sales Historically Sensitive to Interest Rates National New Home Sales vs 30YR MTG Rate (1) 85k New home sales in 2023 are rising as R² = 0.2666 Monthly New Home Sales homebuyers adjust to interest rates 75k being higher for longer 65k 55k 45k 35k 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0
Slide 33: Home Sales in Houston & Las Vegas are Less Correlated to Rates
Home Sales in Houston & Las Vegas are Less Correlated to Rates Houston New Home Sales vs 30YR MTG Rate (1) Las Vegas New Home Sales vs 30YR MTG Rate(1) 4,250 1,175 3,750 1,075 Monthly New Home Sales Monthly New Home Sales 3,250 975 2,750 875 2,250 775 R² = 0.01403 R² = 0.1019 1,750 675 1,250 575 2.5
Slide 34: New Home Sales Have Made a Strong Comeback in 2023
New Home Sales Have Made a Strong Comeback in 2023 U.S. Housing Units Sold in Millions Total Home Sales (LHS) 1.6M 8.0M Existing Home Sales (LHS) New Home Sales (RHS) 1.4M 7.0M 1.2M 6.0M 1.0M 5.0M 0.8M 4.0M 0.6M 3.0M 2.0M 0.4M Activity Since July ’22 Lows: 1.0M New Home Sales: +26% 0.2M Existing
Slide 35: Homebuying Strong, Just Scaling Down Home Size
Homebuying Strong, Just Scaling Down Home Size New Home Prices are Elevated Despite Normalization Homebuyers Pivot to Slightly Smaller Homes $625 Median New Home Sales Price 2,500 Median SF of Newly Constructed Homes (LHS) $240 Average New Home Sales Price Median List Price per SF of For-Sale Homes
Slide 36: Housing Supply Remains Near Historic Lows
Housing Supply Remains Near Historic Lows Existing Home Inventory Has Significantly Declined …Leaving New Home Construction to Pick Up the Slack Housing Units in Thousands % Share of Total Housing Inventory Existing Home Inventory (LHS) 32.0% New Home Inventory (RHS) 475 Market Share of New 29.0% Ho
Slide 37: Constrained Lot Supply Continues in HHH's Key Markets
Constrained Lot Supply Continues in HHH’s Key Markets Vacant Developed Lot Months of Supply (2014 – 2023) 60 Bridgeland Summerlin 50 Equilibrium 40 MoS Equilibrium: Months 30 20 Months 20 17.3 13.7 10 0 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 HOWARD HUGHES Source: Zonda
Slide 38: New Home Sales Point to Continued Strength Ahead
New Home Sales Point to Continued Strength Ahead New Home Sales Activity Picking Up Residential Acres Sold Expected to Rise 112 108 604 605 552 435 60 53 284 251 44 32 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 Summerlin Bridgeland The Woodlands Hills The Woo
Slide 39: MPC FY 2023 Guidance
MPC FY 2023 Guidance MPC EBT Performance Trend FY 2023 EBT Guidance (vs. FY 2022) $317 Lower End Mid-Point Upper End High $283 $283 $264 -10% $270M 0% Low Strong new home sales and limited $255M vacant lot inventories across all MPC’s $209 $209 expected to drive improved residential land sales in
Slide 40: Operating Asset NOI Growth Through Development
Operating Asset NOI Growth Through Development Historical NOI Progression NOI % Mix Total Operating Asset NOI (in $ millions) 7% (2) $363 20% Stabilized 49% NOI (1) by Asset $239 $241 $227 24% $217 $191 $180 $159 Office Multi-Family Retail Other $140 $119 8% $71 19% $46 $58 $55 Stabilized NOI 51% by
Slide 41: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing & Under Construction Developments 50% comes from 3 office towers in lease-up Incremental 9950 Woodloch Forest Asset Type NOI (now 91% leased) Office $ 58 Retail $ 17 6100 Merriweather Multi-Family $ 18 (now 95
Slide 42: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing & Under Construction Developments Incremental Asset Type NOI $11M - Ward Village lease-up Office $ 58 and COVID concessions Retail $ 17 Multi-Family $ 18 $4M – Downtown Summerlin Other $ 8 tenant upgrades Tota
Slide 43: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing & Under Construction Developments Incremental Asset Type NOI 70% comes from 2 new Office $ 58 developments in lease-up Retail $ 17 Starling at Bridgeland Multi-Family $ 18 (now 87% leased) Other $ 8 Total NOI
Slide 44: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing & Under Construction Developments Incremental Property NOI Multi-Family $ 11 Tanager Echo $ 6 Wingspan $ 5 Office $ 7 South Lake MOB $ 3 Summerlin South Office $ 4 Retail $ 3 The Park Retail $ 2 Ulana Ward Vil
Slide 45: Operating Assets FY 2023 Guidance
Operating Assets FY 2023 Guidance Operating Asset NOI Performance Trend FY 2023 NOI Guidance (vs. FY 2022 Excluding Dispositions) High $244 $239 Lower End Mid-Point Upper End $227 $217 Low $237M +1% $241M +4% $191 $180 Guidance range excludes $3.4M of NOI from divested retail assets in FY 2022 S
Slide 46: Development Projects Expected to Deliver Strong Returns
Development Projects Expected to Deliver Strong Returns South Lake Wingspan Summerlin South Office MOB Downtown Location Bridgeland Summerlin Columbia Type Single-Family for Rent Medical Office Office Size 263 Units 86k SF 147k SF Development Cost (ex Land) $87.0M $46.8M $55.5M Construction Start 2Q
Slide 47: New Condo Developments Underway to Meet Demand
New Condo Developments Underway to Meet Demand Under Construction Pre-Sales VICTORIA PLACE VICTORIA PLACE THE PARK THEWARD PARKVILLAGE ULANA ULANA WARD VILLAGE KALAE 2024 2025 2025 2026 349 Units 545 Units 696 Units 329 Units Sold Out 93% Pre-Sold 99% Pre-Sold 83% Pre-Sold First Row Second Row Secon
Slide 48: Future Ward Village Condo Developments in Planning
Future Ward Village Condo Developments in Planning New Premier Condos Coming Between 2027 and 2030 THE LAUNIU MAHANA WARD VILLAGE BLOCKS D AND E Block D Block E 498 Units 340 Units 242 Units 148 Units First Row Third Row First Row First Row HOWARD HUGHES Source: Company filings and data. 48
Slide 49: Key Pathways to Seaport Profitability
Key Pathways to Seaport Profitability PIER 17 HISTORIC DISTRICT TIN BUILDING Lease the remaining 88k SF of Complete build-out and Continue to refine the operating available office space commencement of Alexander model to drive labor and cost Activate the pier with new events Wang’s 46k SF le
Slide 50: Development Pipeline: What's Next?
Development Pipeline: What’s Next?
Slide 51: Texas
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Slide 52: The Woodlands
The Woodlands Deealand Wheghen
Slide 53: 731 Acres Of Commercial Development Remaining
731 Acres Of Commercial Development Remaining THE WOODLANDS HOWARD HUGHES 53 Source: Company filings and data.
Slide 54: Town Center
THE WOODLANDS Town Center HOWARD HUGHES 54 Source: Company filings and data.
Slide 55: Town Center Connectivity
THE WOODLANDS Town Center Connectivity KIRBY ICE HOUSE FUTURE PERFORMING ARTS CENTER THE WOODLANDS TOWERS (HHH CORPORATE OFFICE) TINY BOXWOODS & GALLERY RIVA ROW MULTI-FAMILY HOWARD HUGHES 55 Source: Company filings and data.
Slide 56: Riva Row Multi-Family
THE WOODLANDS Riva Row Multi-Family HOWARD HUGHES 56 Source: Company filings and data.
Slide 57: Waterway Tiny Boxwoods and Gallery
THE WOODLANDS Waterway Tiny Boxwoods and Gallery HOWARD HUGHES 57 Source: Company filings and data.
Slide 58: Waterway Tiny Boxwoods and Gallery
THE WOODLANDS Waterway Tiny Boxwoods and Gallery HOWARD HUGHES 58 Source: Company filings and data.
Slide 59: Lakefront South Condos
THE WOODLANDS Lakefront South Condos HOWARD HUGHES 59 Source: Company filings and data.
Slide 60: Grogan's Mill Village Center – Current State
THE WOODLANDS Grogan’s Mill Village Center – Current State HOWARD HUGHES 60 Source: Company filings and data.
Slide 61: Grogan's Mill Village Center – Future Renovation
THE WOODLANDS Grogan’s Mill Village Center – Future Renovation HOWARD HUGHES 61 Source: Company filings and data.
Slide 62: Future Corporate Campus on Waterway
THE WOODLANDS Future Corporate Campus on Waterway HOWARD HUGHES 62 Source: Company filings and data.
Slide 63: Bridgeland
Bridgeland Deealand Wheghen
Slide 64: 1,048 Acres Of Commercial Development Remaining
1,048 Acres Of Commercial Development Remaining BRIDGELAND HOWARD HUGHES 64 Source: Company filings and data.
Slide 65: Village Green at Bridgeland Central
BRIDGELAND Village Green at Bridgeland Central HOWARD HUGHES 65 Source: Company filings and data.
Slide 66: Village Green at Bridgeland Central
BRIDGELAND Village Green at Bridgeland Central HOWARD HUGHES 66 Source: Company filings and data.
Slide 67: Mass Timber Office
BRIDGELAND Mass Timber Office HOWARD HUGHES 67 Source: Company filings and data.
Slide 68: Future Corporate Campus
BRIDGELAND Future Corporate Campus HOWARD HUGHES 68 Source: Company filings and data.
Slide 69: Nevada
NEVADA HOWARD HUGHES 69
Slide 70: 700 Acres Of Commercial Development Remaining
700 Acres Of Commercial Development Remaining SUMMERLIN HOWARD HUGHES 70 Source: Company filings and data.
Slide 71: Downtown Summerlin
Downtown Summerlin HOWARD HUGHES 71 Source: Company filings and data.
Slide 72: Downtown Summerlin
SUMMERLIN Downtown Summerlin HOWARD HUGHES 72 Source: Company filings and data.
Slide 73: Red Rock Villas
SUMMERLIN Red Rock Villas HOWARD HUGHES 73 Source: Company filings and data.
Slide 74: Superblock
SUMMERLIN Superblock HOWARD HUGHES 74 Source: Company filings and data.
Slide 75: Downtown Grocer
SUMMERLIN Downtown Grocer HOWARD HUGHES 75
Slide 76: Summerlin West
Summerlin West HOWARD HUGHES 76 Source: Company filings and data.
Slide 77: Summerlin West
SUMMERLIN Summerlin West HOWARD HUGHES 77 Source: Company filings and data.
Slide 78: Future Corporate Campus
SUMMERLIN Future Corporate Campus HOWARD HUGHES 78 Source: Company filings and data.
Slide 79: Summerlin Village 15
Summerlin Village 15 HOWARD HUGHES 79 Source: Company filings and data.
Slide 80: Village 15
SUMMERLIN Village 15 HOWARD HUGHES 80 Source: Company filings and data.
Slide 81: Summerlin South Office
SUMMERLIN Summerlin South Office HOWARD HUGHES 81 Source: Company filings and data.
Slide 82: Village 15 Production Studios
SUMMERLIN Village 15 Production Studios HOWARD HUGHES 82 Source: Company filings and data.
Slide 83: Village 15 Production Studio Retail
SUMMERLIN Village 15 Production Studio Retail HOWARD HUGHES 83 Source: Company filings and data.
Slide 84: Maryland
MARYLAND HOWARD HUGHES 84
Slide 85: 149 Acres Of Commercial Development Remaining
149 Acres Of Commercial Development Remaining COLUMBIA HOWARD HUGHES 85 Source: Company filings and data.
Slide 86: Downtown Columbia
COLUMBIA Downtown Columbia HOWARD HUGHES Source: Company filings and data.
Slide 87: Lakefront District Today
Lakefront District Today Lakefront District HOWARD HUGHES 87 87 Source: Company filings and data. 87
Slide 88: Lakefront District Future
Lakefront District Future OMN 5.375 AC LIBRARY MEDICAL OFFICE (Under Construction) TEACHER’S WHOLE FOODS EXHIBIT LAKEFRONT NORTH PARCEL D1 1.23 AC PARCEL E 1.02 AC EXISTING FUTURE HOWARD HUGHES 88 Source: Company filings and data.
Slide 89: Lakefront North Multi-Family
COLUMBIA Lakefront North Multi-Family HOWARD HUGHES 89 Source: Company filings and data.
Slide 90: Lakefront North Retail and Open Space
COLUMBIA Lakefront North Retail and Open Space HOWARD HUGHES 90 Source: Company filings and data.
Slide 91: Lakefront Library
COLUMBIA Lakefront Library HOWARD HUGHES 91 Source: Company filings and data.
Slide 92: Lakefront Library
COLUMBIA Lakefront Library HOWARD HUGHES 92 Source: Company filings and data.
Slide 93: Merriweather District
Merriweather District THE MALL IN COLUMBIA TEN.M.FLATS MERRIWEATHER ROW THE METROPOLITAN WHOLE FOODS ONE MERRIWEATHER AREA 4 TWO 2.07 AC MERRIWEATHER AREA 1 1.99 AC MERRIWEATHER POST PAVILION FUTURE CORPORATE 6100 MERRIWEATHER CAMPUS JUNIPER 6.5 AC RESIDENTIAL 2.05 AC 6300 MERRIWEATHER BUSBOYS AND P
Slide 94: 6300 Merriweather
COLUMBIA 6300 Merriweather HOWARD HUGHES 94 Source: Company filings and data.
Slide 95: Future Corporate Campus
COLUMBIA Future Corporate Campus HOWARD HUGHES 95 Source: Company filings and data.
Slide 96: Hawai'i
HAWAI’I HOWARD HUGHES 96
Slide 97: Ward Village Master Plan
WARD VILLAGE Master Plan Completed Under Construction Pre-Sales Future HOWARD HUGHES 97 Source: Company filings and data.
Slide 98: Kalae
WARD VILLAGE Kalae HOWARD HUGHES 98 Source: Company filings and data.
Slide 99: The Launiu
WARD VILLAGE The Launiu HOWARD HUGHES 99 Source: Company filings and data.
Slide 100: Public Parks and Green Space
WARD VILLAGE Public Parks and Green Space HOWARD HUGHES 100 Source: Company filings and data.
Slide 101: Mahana Ward Village (Block N-West)
WARD VILLAGE Mahana Ward Village (Block N-West) HOWARD HUGHES 101 Source: Company filings and data.
Slide 102: Blocks D and E
WARD VILLAGE Blocks D and E HOWARD HUGHES 102 Source: Company filings and data.
Slide 103: Arizona – Teravalis
ARIZONA TERAVALIS HOWARD HUGHES 103
Slide 104: 10,988 Acres of Commercial Development
10,988 Acres of Commercial Development TERAVALIS HOWARD HUGHES 104 Source: Company filings and data.
Slide 105: Floreo: The First Village
TERAVALIS Floreo: The First Village 3,000 Acres 457 Acres of Development of Commercial Development HOWARD HUGHES 105 Source: Company filings and data.
Slide 106: Floreo: First Phase of ~100 Commercial Acres
TERAVALIS Floreo: First Phase of ~100 Commercial Acres HOWARD HUGHES 106 Source: Company filings and data.
Slide 107: Floreo Community Center
TERAVALIS Floreo Community Center HOWARD HUGHES 107 Source: Company filings and data.
Slide 108: New York
NEW YORK rowan nucnes HHH 10
Slide 109: 250 Water Street Mixed-Use Development
SEAPORT 250 Water Street Mixed-Use Development HOWARD HUGHES 109 Source: Company filings and data.
Slide 110: 250 Water Street Mixed-Use Development
SEAPORT 250 Water Street Mixed-Use Development HOWARD HUGHES 110 Source: Company filings and data.
Slide 111: 250 Water Street Mixed-Use Development
SEAPORT 250 Water Street Mixed-Use Development HOWARD HUGHES 111 Source: Company filings and data.
Slide 112: HHCommunities
HHCommunities Deealand Wheghen
Slide 113: Our Legacy for Innovative and Sustainable Placemaking
Our Legacy for Innovative and Sustainable Placemaking Howard Hughes George Mitchell Jim Rouse Victoria Ward Tech & Innovation Sustainability Inclusivity Community Integrated fiber technology Established LEED-certified HHH communities cater to Provide access to natural for ultimate connectivi
Slide 114: Delivering a Consistent Strategy Across All Segments
Delivering a Consistent Strategy Across All Segments How You Live MPC How We Build Operating Corporate HHCommunities Assets Strategic Developments “We believe, because it is true, that people are affected by their environment—by space and scale, by color and texture, by nature and beauty, that they
Slide 115: HHCommunities: Driving Results and Receiving Recognition
HHCommunities: Driving Results and Receiving Recognition GRESB Sustainability Benchmark Green Building and Community Certifications Number of LEED Certified Properties by State Sector Leader 1st US Diversified Texas Hawaii Maryland Nevada New York Listed Peer Group 13 12 11 5 2 Energy Reduction Init
Slide 116: Leading the Way in Water Conservation
Leading the Way in Water Conservation Summerlin Teravalis 20+ Years of Exceptional Water Management Targeting a 35% Reduction vs. Arizona’s Current Consumption Despite significant growth since 2018—including more than US Avg. Arizona Current Goal 5,000 new homes and new commercial developments—total
Slide 117: HHCommunities: Amplifying Diverse Perspectives
HHCommunities: Amplifying Diverse Perspectives HHH is committed to inclusivity across all its spheres Summer Internship Program of influence, including within: The 2023 class of summer associates completed cross-functional internships, The company closing with presentations to senior The communi
Slide 118: Corporate & Balance Sheet
Corporate & Balance Sheet Deealand Wheghen
Slide 119: HHH has Significantly Reduced Cash G&A
HHH has Significantly Reduced Cash G&A 4-Year Cash G&A Trend FY 2023 Cash G&A Guidance(1) Cash G&A G&A Percent of Total Assets Lower End Mid-Point Upper End $120M $80M $82.5M $85M $104M Streamlined overhead costs 0.80% of total assets—representing a 29% reduction $76M compared to 2019 1.43% $72M
Slide 120: Demonstrated Financial Flexibility in Challenging Credit Markets
Demonstrated Financial Flexibility in Challenging Credit Markets Financings Fortify the Balance Sheet Long-Dated Debt Maturity Profile 2022 Highlights Closed on $2B of permanent financings, including $1B $3,332 just in 4Q Mortgages & Loans Payable Closed four new construction loans totaling $459
Slide 121: Reducing Interest Rate Risk with Strategic Debt Swaps
Reducing Interest Rate Risk with Strategic Debt Swaps Upcoming Debt Swap Maturities $1,619 $135 $368M of condominium construction loans $391 $983 $135M related to Summerlin construction loans $368 $23M of condominium construction loans $1,093 $276 $615 $233 $127 $135 $23 $75 Total Debt Swaps 2023 20
Slide 122: Continued Free Cash Flow Generation
Continued Free Cash Flow Generation Illustrative Cash Flow Self-Funded Development Cycle (1) $516M Operating Asset NOI Condo (3) Profit > $5M covers recurring debt service and G&A (1) MPC EBT > $270M $289M Opportunity to Creating free cash achieve the best risk- flow from condo $227M adjusted return
Slide 123: NAV Update
NAV Update Deealand Wheghen
Slide 124: Meaningful Value Upside Reflected in 2023 NAV
Meaningful Value Upside Reflected in 2023 NAV Tremendous Value Opportunity Illustrative Sum of the Parts Value During last year’s Investor Day, management walked Per investors through HHH’s illustrative sum of the parts HHH Segments NAV Share analysis Operating Assets $1,234 $25 By using the sam
Slide 125: NAV Drivers Over the Last 18 Months
NAV Drivers Over the Last 18 Months HHH NAV / Share by Segment NAV/Share Bridge Dec ‘21 Jun ‘23 Operating Assets $59 $25 Master Planned Communities $99 $98 Ward Village $27 $24 Seaport $18 $20 Non-Core & Corporate $(33) $(38) Sum of the Parts Total $170 $129 (1) Market Premium / (Discount) to NAV (6
Slide 126: Operating Assets are an Impactful Component to NAV
Operating Assets are an Impactful Component to NAV NAV Bridge Office • Cap rates(1) increased from 6.9% to 11.2% decreasing NAV $18/share • Sold 110 N. Wacker in 2022 decreasing segment NAV by $3.60/share • Recent lease up of 9950 WL and 6100 MW will add $13M of NOI or $3.53/share once new leases co
Slide 127: Operating Assets are an Impactful Component to NAV
Operating Assets are an Impactful Component to NAV NAV Bridge Retail (1) • Cap rates increased from 5.4% to 6.5% decreasing NAV $4/share HOWARD HUGHES Source: Company filings and data. Note: Value $ per share. As of Jun. 30th, 2023. 127 (1) Cap Rates are weighted based on NOI and region to calculate
Slide 128: Operating Assets are an Impactful Component to NAV
Operating Assets are an Impactful Component to NAV NAV Bridge (1) Multi-Family • NOI grew from $46M to $59M increasing NAV $7/share • Cap rates increased from 3.8% to 6.5% decreasing NAV $10/share HOWARD HUGHES Source: Company filings and data. Note: Value $ per share. As of Jun. 30th, 2023. 128 (1)
Slide 129: MPC NAV Largely Unchanged Compared to 2021
MPC NAV Largely Unchanged Compared to 2021 NAV Bridge Since 2021 • 407 residential acres sold at an average of $759k/acre • 246 commercial acres sold at average of $422k/acre • Weighted-average price per residential acre increased 15% per acre between Dec ‘21 and Jun ‘23 HOWARD HUGHES Source: Compan
Slide 130: Land Appreciation Offsets Shrinking Land Bank
Land Appreciation Offsets Shrinking Land Bank MPC Gross Asset Value (2) 2017 GAV Since 2017 2023 GAV 2,725 $562k $1.7B $328 Total Acres Sold X Weighted- Avg. Price Per Acre = Total Land Sales Revenue (1) $210 $611 $708 Residential Price Per Acre $3.7B $1,695 Summerlin $1,297 Bridgeland The Woodlands
Slide 131: Ward Village Condo Sales & Retail Component Drive Value
Ward Village Condo Sales & Retail Component Drive Value Ward Village NAV Drivers NAV Bridge Tower $Δ Cash proceeds from To-Be-Built Residential and Retail declined $3/share: Ko’ula $(4) condo sales ‘A’ali’i $(1) transferred to - Reduction of gross profit expectations on future towers from Victoria
Slide 132: Seaport & Corporate / Non-Core NAV Impact
Seaport & Corporate / Non-Core NAV Impact Seaport NAV For simplicity purposes, management suggests valuing 2021 2023 the Seaport at cost Seaport Asset Per Asset Per Value at Cost Value Share Value Share More valuation clarity will be provided once the office Pier 17/Uplands/Historic Area $659 $6
Slide 133: Building on Foundation of Strong Value Creation
Building on Foundation HHH Investor Day of Strong Value Creation 2023 Developing the most sought-after places to live in the nation gives HHH a competitive advantage to continue delivering outsized returns Strong results delivered in 2022 and H1 2023 demonstrate HHH’s unique ability to outperfor
Slide 134: Q&A
Q&A Deealand Wheghen
Slide 135: Appendix
Appendix Deealand Wheghen
Slide 136: NAV Sensitivity Analysis
NAV Sensitivity Analysis NAV Impact Based on Changes in Assumptions Change in Operating Asset Cap Rate 1.0% 0.5% 0.0% (0.5)% (1.0)% (1.0)% $125 $130 $136 $143 $151 Discount Rate Change in (0.5)% $121 $126 $132 $139 $147 0.0% $118 $123 $129 $135 $144 0.5% $114 $119 $125 $132 $140 1.0% $111 $116 $122
Slide 137: Operating Asset NAV
Operating Asset NAV NAV Detail NAV Assumptions 2021 2023 2021 2023 Stabilized Asset Per Asset Per (1) (1) Cap Rates Assets Value Share Value Share Office $1,738 $1,009 Office 6.9% 11.2% Multi-Family 1,225 1,119 Multi-Family 3.8% 5.3% Retail 1,023 795 Retail 5.4% 6.5% Other 337 289 Other 6.0% 6.0% St
Slide 138: MPC NAV
MPC NAV NAV Detail NAV Assumptions 2021 2023 Residential Assumptions Commercial Assumptions Asset Per Asset Per Land Price Growth Rate Land Price Growth Rate Residential Value Share Value Share Teravalis 5.0% Teravalis 3.5% Teravalis $384 $517 Floreo 5.0% Floreo 3.5% Floreo 46 60 The Woodlands 7.0%
Slide 139: Ward Village NAV
Ward Village NAV NAV Detail NAV Assumptions 2021 2023 Completed & Under Construction Towers 2021 2023 Completed & Under Asset Per Asset Per Discount Rate Construction Towers Value Share Value Share Remaining Units on Completed Towers 4.0% 4.0% Gross Asset Value (1,2) $406 $264 Under Construction Tow
Slide 140: Net Debt Reconciliation
Net Debt Reconciliation 2021 Summary 2023 Summary Cash & Cash Cash & Cash Net Debt Debt Net Debt Net Debt Debt Net Debt Equivalents Equivalents Operating Assets (1) $(2,217) $78 $(2,139) Operating Assets (1) $(2,398) $21 $(2,377) Master Planned Communities (349) 633 284 Master Planned Communities (4
Slide 141: Other Assets / (Liabilities) Reconciliation
Other Assets / (Liabilities) Reconciliation Other Assets / (Liabilities) Other Real Estate Assets 2021 2023 2021 2023 Other Cash Assets Other Real Estate Assets Restricted cash $373 $454 West End Alexandria $57 $57 Accounts receivable, net 86 104 Total Book Value $57 $57 Notes receivable 8 0 Deferre
Slide 142: Reconciliation of Operating Assets Segment EBT to NOI
Reconciliation of Operating Assets Segment EBT to NOI YTD Q2 YTD Q2 thousands Q2 2023 Q2 2022 2023 2022 2022 2021 2020 2019 2018 Total revenues $ 121,427 $ 118,562 $ 222,352 $ 218,249 $ 431,834 $ 442,698 $ 372,057 $ 400,131 $ 348,242 Total operating expenses (54,452) (51,349) (102,051) (97,964) (194
Howard Hughes Holdings — Investor Day (September 2023) on 6ix