Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q3 2024 Earnings Presentation
31 slides from Howard Hughes's earnings presentation, Nov 4, 2024
Slide 1: Supplemental Information Three Months Ended September 30, 2024
Howard Hughes Holdings Inc. Supplemental Information Three Months Ended September 30, 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 segment that have reached 90% occupancy or have been in service for 36 months or more, whichever occurs first. If an office, retail, or multi-family property has been in service for more than 36 months but does not exceed 90% occupancy,
Slide 5: Company Profile - Summary & Results
HOWARD HUGHES 5 Company Profile - Summary & Results The Park Ward Village 10% The Launiu 69% Ritz-Carlon Residences 17% Kalae 4% Bridgeland 14% Summerlin 83% The Woodlands/ Woodlands Hills 3% MPC EBT $144.8M Condos Contracted 29 units Office 49% Multi-family 29% Retail 19% Other 3% Operating Assets
Slide 6: Path to Estimated Stabilized NOI
HOWARD HUGHES 6 Office 9% Multi- family 52% Retail 39% Office 39%Multi- family 61% Office 49% Multi- family 27% Retail 20% Other 4% Office 53%Multi- family 22% Retail 21% Other 4% Office 46%Multi- family 48% Retail 6% Q3 2024 Path to Estimated Stabilized NOI Currently Under Construction Currently Un
Slide 7: Company Profile
HOWARD HUGHES 7 thousands except share price and billions Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 YTD Q3 2024 YTD Q3 2023 Company Profile Share price (a) $ 77.43 $ 64.82 $ 72.62 $ 85.55 $ 74.13 $ 77.43 $ 74.13 Market Capitalization (b) $3.9b $3.2b $3.6b $4.3b $3.7b $3.8b $3.7b Enterprise Value (c) $
Slide 8: Financial Summary
HOWARD HUGHES 8 Financial Summary (a) Excludes a $3.0 million charge in the first quarter of 2024 and a $16.1 million charge in the second quarter of 2023 related to increases in the estimated costs related to construction defects at the Waiea tower. The sixth and final amendment of resolution of di
Slide 9: Balance Sheets
HOWARD HUGHES 9 thousands except par values and share amounts (unaudited) September 30, 2024 December 31, 2023 ASSETS Master Planned Communities assets $ 2,491,291 $ 2,445,673 Buildings and equipment 3,794,960 3,649,376 Less: accumulated depreciation (915,279) (829,018) Land 299,406 294,189 Developm
Slide 10: Statements of Operations
HOWARD HUGHES 10 thousands except per share amounts (unaudited) Q3 2024 Q3 2023 YTD Q3 2024 YTD Q3 2023 REVENUES Condominium rights and unit sales $ 3 $ 25,962 $ 26 $ 46,915 Master Planned Communities land sales 198,239 75,378 385,444 177,045 Rental revenue 108,613 99,978 315,461 290,164 Other land,
Slide 11: Same Store NOI by Region
HOWARD HUGHES 11 thousands Q3 2024 Q3 2023 $ Change % Change YTD Q3 2024 YTD Q3 2023 $ Change % Change Same Store Office Houston, TX $ 21,283 $ 20,449 $ 834 4 % $ 63,453 $ 63,426 $ 27 — % Columbia, MD 5,376 5,572 (196) (4) % 17,734 17,881 (147) (1) % Las Vegas, NV 4,913 3,272 1,641 50 % 14,241 9,368
Slide 12: Same Store Metrics
HOWARD HUGHES 12 thousands Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Same Store Metrics Stabilized Leasing Percentages Office 88 % 89 % 88 % 88 % 87 % Retail 94 % 94 % 95 % 96 % 95 % Multi-family 95 % 97 % 95 % 95 % 96 % Unstabilized Leasing Percentages Office (a) 92 % 92 % 90 % 90 % 77 % Retail 66 %
Slide 13: NOI by Region: Stabilized Properties
HOWARD HUGHES 13 thousands except Sq. Ft. and units % Ownership (a) Total Q3 2024 Occupied (b) Q3 2024 Leased (b) Q3 2024 Occupied (%) (b) Q3 2024 Leased (%) (b) 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 S
Slide 14: NOI by Region (cont.)
HOWARD HUGHES 14 NOI by RegionNOI by Region (cont.) (a) Includes our share of NOI from our unconsolidated ventures. (b) Occupied and Leased metrics are as of September 30, 2024. (c) The estimated stabilization date used in the Time to Stabilize calculation for all unstabilized and under construction
Slide 15: Stabilized Properties
HOWARD HUGHES 15 thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Q3 2024 % Occupied (a) Q3 2024 % Leased (a) In-Place NOI (b) Est. Stabilized NOI (b) Office Columbia Office Properties Columbia, MD 100 % 67,066 72 % 72 % $ 830 $ 1,190 One Mall North Columbia, MD 100 % 99,806
Slide 16: Stabilized Properties (cont.)
HOWARD HUGHES 16 Q3 2024 % Occupied (a) Q3 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 Juniper Columbia, MD 100 % 55,677 382 77 % 96 % 95 % 97
Slide 17: Unstabilized Properties
HOWARD HUGHES 17 Q3 2024 % Occupied (a) Q3 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: Completed Condominiums
HOWARD HUGHES 19 As of September 30, 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 46
Slide 20: Under Construction Condominiums
HOWARD HUGHES 20 As of September 30, 2024 Victoria Place The Park Ward Village Ulana Ward Village Kalae Total Key Metrics ($ in thousands) Location Ward Village Ward Village Ward Village Ward Village Type of building Luxury Upscale Workforce Luxury Number of units 349 545 696 329 1,919 Avg. unit Sq.
Slide 21: Predevelopment Condominiums
HOWARD HUGHES 21 As of September 30, 2024 The Launiu The Ritz-Carlton Residences Total Key Metrics ($ in thousands) Location Ward Village The Woodlands Type of building Luxury Luxury Number of units 485 111 596 Avg. unit Sq. Ft. 950 2,524 1,243 Condo Sq. Ft. 460,735 280,172 740,907 Street retail Sq.
Slide 22: Summary of Remaining Development Costs
HOWARD HUGHES 22 As of September 30, 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
Slide 23: Portfolio Key Metrics
HOWARD HUGHES 23 MPC Regions Non-MPC Regions The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Floreo (a) Total Columbia Hawai‘i Total As of September 30, 2024 Houston, TX Houston, TX Houston, TX Las Vegas, NV Phoenix, AZ Phoenix, AZ MPC Regions Columbia, MD Honolulu, HI Non-MPC Stabi
Slide 24: MPC Performance
HOWARD HUGHES 24 Master Planned Community Land Consolidated MPC Segment EBT The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Total Floreo (a) thousands Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Revenues: Residentia
Slide 25: MPC Land
HOWARD HUGHES 25 Master Planned Community Land Consolidated MPC Segment The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Floreo (a) thousands, except acres Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Key Performance Metrics: Residen
Slide 26: MPC Land Appreciation
HOWARD HUGHES 26 Master Planned Community Land GAV in $ millions, unless otherwise specified. Price per acre in $ thousands. (a) Land sales revenue excludes deferred revenue and SID bond revenue. (b) Excludes value of Teravalis for comparative purposes. (c) Price per acre is a trailing 12 months cal
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: Debt Summary
HOWARD HUGHES 28 thousands September 30, 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 1,576,763 1,442,505 Speci
Slide 29: Debt Summary (cont.)
HOWARD HUGHES 29 (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. In the fourth quarter of 2024, the borrowing capacity of this obligation was expanded to $600.0 million
Slide 30: Reconciliation of Operating Assets segment EBT to Total NOI
HOWARD HUGHES 30 Reconciliation of Operating Assets segment EBT to Total NOI thousands Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 YTD Q3 2024 YTD Q3 2023 Total revenues $ 114,019 $ 110,760 $ 107,000 $ 99,312 $ 106,178 $ 331,779 $ 310,942 Total operating expenses (48,987) (47,610) (46,154) (45,379) (47,
Slide 31: Reconciliations to FFO, Core FFO, and AFFO
HOWARD HUGHES 31 RECONCILIATIONS OF NET INCOME FROM CONTINUING OPERATIONS TO FFO, Core FFO, and AFFO thousands except share amounts Q3 2024 Q3 2023 YTD Q3 2024 YTD Q3 2023 Net income (loss) from continuing operations $ 96,528 $ 32,064 $ 122,895 $ 30,576 Adjustments to arrive at FFO: Segment real est
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