Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q4 2021 Earnings Presentation
38 slides from Howard Hughes's earnings presentation, Feb 28, 2022
Slide 1: Supplemental Information Three Months Ended December 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 December 31, 2021 NYSE: HHC Seaport New York, NY Exhibit 99.2 The Woodlands Towers at the Waterway The Woodlands, TX 6100 Merriweat
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 Definitions 4 Same Store Metrics 11 Ward Village - Sold Out Condominiums 20 Company Profile 5 NOI by Region 13 Ward Village - Condominiums Remaining to be So
Slide 4: Definitions
HowardHughes.com 281.719.6100 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 multifamily property has been in service for more than 36 months but d
Slide 5: Recent Company Highlights
HowardHughes.com 281.719.6100 5 ‘A‘ali‘i 12% Kō'ula 71% Victoria Place 17% Bridgeland 26% Summerlin 71% The Woodlands/Woodlands Hills 3% Recent Company Highlights HONOLULU, Oct. 6, 2021 (PRNewswire) -- The Howard Hughes Corporation (HHC) announced that it has begun welcoming residents to ʻAʻaliʻi ®,
Slide 6: Company Profile - Summary & Results
HowardHughes.com 281.719.6100 6 Office 30% Multi-family 64% Retail 6% Office 33% Multi-family 31% Retail 35% Office 49% Multi-family 23% Retail 21% Other 7% Office 47% Multi-family 20% Retail 25% Other 8% Office 85% Multi-family 10% Retail 5% Currently Under Construction Currently Unstabilized Curre
Slide 7: Company Profile
HowardHughes.com 281.719.6100 7 $ in thousands except share price and billions Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 FY 2021 FY 2020 Company Profile Share price (a) $ 101.78 $ 87.81 $ 97.46 $ 95.13 $ 78.93 $ 101.78 $ 78.93 Market Capitalization (b) $5.5b $4.8b $5.4b $5.2b $4.3b $5.5b $4.3b Enterpr
Slide 8: Financial Summary
HowardHughes.com 281.719.6100 8 Financial SummaryFinancial Summary (con't) (a) Operating Assets NOI includes the Howard Hughes Corporation's (the Company or HHC) share of equity method investments NOI and the annual distribution from our cost basis investment. Prior periods have been adjusted to be
Slide 9: Balance Sheets
HowardHughes.com 281.719.6100 9 thousands except par values and share amounts December 31, 2021 December 31, 2020 ASSETS Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 2,282,768 $ 1,687,519 Buildings and equipment 3,962,441 4,115,493 Less: accumulated depreciation
Slide 10: Statements of Operations
HowardHughes.com 281.719.6100 10 Comparative Statements of Operations: Total PortfolioStatements of Operations thousands except per share amounts Q4 2021 Q4 2020 FY 2021 FY 2020 REVENUES Unaudited Unaudited Unaudited Unaudited Rental revenue $ 99,740 $ 81,660 $ 369,330 $ 323,182 Master Planned Commu
Slide 11: Same Store NOI - Operating Assets Segment
HowardHughes.com 281.719.6100 11 Same Store NOI - Operating Assets Segment thousands except percentages Q4 2021 Q4 2020 $ Change % Change FY 2021 FY 2020 $ Change % Change Same Store Office Houston, TX $ 18,866 $ 19,684 $ (818) (4) % $ 69,469 $ 80,314 $ (10,845) (14) % Columbia, MD 6,272 4,420 1,852
Slide 12: Same Store Performance - Operating Assets Segment
HowardHughes.com 281.719.6100 12 Same Store Performance - Operating Assets Segment thousands except percentages Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Same Store Metrics Stabilized Leasing Percentages Office 90 % 88 % 89 % 89 % 93 % Retail 92 % 90 % 92 % 92 % 89 % Multi-Family 99 % 97 % 97 % 95 % 9
Slide 13: NOI by Region, excluding Seaport
HowardHughes.com 281.719.6100 13 NOI by Region, excluding Seaport in thousands except Sq. Ft. and units Property % Ownership (a) Total Q4 2021 Occupied (#) Q4 2021 Leased (#) Q4 2021 Occupied (%) Q4 2021 Leased (%) Q4 2021 Annualized NOI (b) Stabilized NOI (c) Time to Stabilize (Years) (d)Sq. Ft. Un
Slide 14: NOI by Region, excluding Seaport (con't)
HowardHughes.com 281.719.6100 14 NOI by RegionNOI by Region, excluding Seaport (con't) in thousands except Sq. Ft. and units Property % Ownership (a) Total Q4 2021 Occupied (#) Q4 2021 Leased (#) Q4 2021 Occupied (%) Q4 2021 Leased (%) Q4 2021 Annualized NOI (b) Stabilized NOI (c) Time to Stabilize
Slide 15: Stabilized Properties
HowardHughes.com 281.719.6100 15 in thousands except Sq. Ft. and units Property Location % Ownership Rentable Sq. Ft. Q4 2021 % Occ. Q4 2021 % Leased Annualized Q4 2021 NOI (a) (b) Est. Stabilized NOI (a) Office One Hughes Landing Houston, TX 100 % 197,719 97 % 97 % $ 6,169 $ 6,170 Two Hughes Landin
Slide 16: Stabilized Properties (con't)
HowardHughes.com 281.719.6100 16 in thousands except Sq. Ft. and units Q4 2021 % Occ.(e) Q4 2021 % Leased (e) Property Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units Annualized Q4 2021 NOI (a) (b) Est. Stabilized NOI (a) Multi-family Creekside Park Apartmen
Slide 17: Unstabilized Properties - Operating Assets Segment
HowardHughes.com 281.719.6100 17 Unstabilized Properties - Operating Assets Segment thousands except Sq. Ft. and units Q4 2021 % Occ.(a) Q4 2021 % Leased (a) Property Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units Develop. Costs Incurred Est. Total Cost (Ex
Slide 18: Under Construction Projects - Strategic Developments Segment
HowardHughes.com 281.719.6100 18 Under Construction PropertiesUnder Construction Projects - Strategic Developments Segment in thousands except Sq. Ft. and units Project Name Location % Ownership Est. Rentable Sq. Ft. Percent Pre- Leased (a) Project Status Const. Start Date Est. Stabilized Date (b) D
Slide 19: Seaport Operating Performance
HowardHughes.com 281.719.6100 19 NOI by RegionSeaport Operating Performance Q4 2021 Landlord Operations (a) Managed Businesses (b) Events, Sponsorships & Catering Business (f) Q4 2021 Total$ in thousands Historic District & Pier 17 Multi-Family (c) Historic District & Pier 17 (d) Tin Building (e) Re
Slide 20: Ward Village - Sold Out Condominiums
HowardHughes.com 281.719.6100 20 Ward Village - Sold Out Condominiums As of December 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 29
Slide 21: Ward Village - Condominiums Remaining to be Sold
HowardHughes.com 281.719.6100 21 Ward Village - Condominiums Remaining to be Sold As of December 31, 2021 Waiea ‘A‘ali‘i Kō'ula Victoria Place Total Key Metrics ($ in thousands) Type of building Luxury Upscale Upscale Luxury Number of units 177 750 565 349 1,841 Avg. unit Sq. Ft. 2,138 520 725 1,164
Slide 22: Summary of Remaining Development Costs
HowardHughes.com 281.719.6100 22 Summary of Remaining Development Costs thousands Location Total Estimated Costs (a) Costs Paid Through December 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 Debt and Bu
Slide 23: Portfolio Key Metrics
HowardHughes.com 281.719.6100 23 MPC Regions Non-MPC Regions The Woodlands The Woodlands Hills Bridgeland Summerlin Douglas Ranch Trillium Columbia Total Hawai‘i Seaport Other Total Houston, TX Houston, TX Houston, TX Las Vegas, NV Phoenix, AZ Phoenix, AZ Columbia, MD MPC Regions Honolulu, HI New Yo
Slide 24: MPC Portfolio
HowardHughes.com 281.719.6100 24 MPC Portfolio Master Planned Communities- Remaining Saleable Acres (a) Income Producing Assets - Stabilized and Unstabilized (b) Commercial 24% Residential 76% Stabilized 100% Commercial 38% Residential 62% Unstabilized 6% Stabilized 94% Unstabilized 6% Stabilized 94
Slide 25: MPC Performance
HowardHughes.com 281.719.6100 25 Master Planned Community Land Consolidated MPC Segment EBT The Woodlands The Woodlands Hills Bridgeland Summerlin Douglas Ranch Columbia Total Trillium (a) thousands Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 20
Slide 26: MPC Land
HowardHughes.com 281.719.6100 26 Master Planned Community Land Consolidated MPC Segment The Woodlands The Woodlands Hills Bridgeland Summerlin Douglas Ranch Columbia Trillium (a) $ in thousands Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4
Slide 27: Lease Expirations
HowardHughes.com 281.719.6100 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.
Slide 28: Acquisition / Disposition Activity
HowardHughes.com 281.719.6100 28 Acquisition / Disposition Activity Acquisition / Disposition Activity thousands except rentable Sq. Ft. / Units / Acres Q4 2021 Acquisitions Date Acquired Property % Ownership Location Acres Acquisition Price October 18, 2021 Douglas Ranch (a) 100% Phoenix, Arizona 3
Slide 29: Other Assets
HowardHughes.com 281.719.6100 29 Other Assets Property Name City, State % Ownership Acres Notes West End Alexandria (formerly Landmark Mall) Alexandria, VA 58.33% 41.1 In June 2021, a Contribution Agreement was executed by and between affiliates of HHC, Seritage, and Foulger-Pratt which establishes
Slide 30: Debt Summary
HowardHughes.com 281.719.6100 30 thousands December 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 31: Property-Level Debt
HowardHughes.com 281.719.6100 31 $ in thousands Asset Q4 2021 Principal Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Operating Assets 20/25 Waterway Avenue $ 12,564 4.79 % Fixed 4.79 % May-22 Millennium Waterway Apartments 50,813 3.7
Slide 32: Property-Level Debt Notes
HowardHughes.com 281.719.6100 32 (a) Extended maturity assumes exercise of all extension options. (b) The following properties are included as collateral for the credit facility: 10-70 Columbia Corporate Center, One Mall North, One Merriweather, 1701 Lake Robbins, Creekside Village Green, Lakeland V
Slide 33: Summary of Ground Leases
HowardHughes.com 281.719.6100 33 Minimum Contractual Ground Lease Payments ($ in thousands) Future Cash Payments Pro-Rata Three months ended Year Ended Year Ended Ground Leased Asset Share Expiration Date December 31, 2021 December 31, 2021 December 31, 2022 Thereafter Total Riverwalk (a) 100% 2045-
Slide 34: Impact of COVID-19
HowardHughes.com 281.719.6100 34 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 Q4 2021 in Billed Rent (0.5) % 25.1 % Q1 2020 Net Recurring Revenues $ 89,610 $ 4,676 Difference from Q1 2020 to Q4 2021 in
Slide 35: Reconciliation of Non-GAAP Measures
HowardHughes.com 281.719.6100 35 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 36: Reconciliation of Seaport segment EBT to Total NOI
HowardHughes.com 281.719.6100 36 Reconciliation of Seaport segment EBT to Total NOI: thousands Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 FY 2021 FY 2020 Seaport segment EBT (a) $ (18,146) $ (14,929) $ (12,869) $ (12,474) $ (11,730) $ (58,418) $ (99,968) Add back: Depreciation and amortization 7,941 9,
Slide 37: Reconciliation of Non-GAAP Measures (con't)
HowardHughes.com 281.719.6100 37 Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures thousands Three Months Ended December 31, Year Ended December 31, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2021 2020 2021 2020 Total residential land sales clos
Slide 38: Reconciliations of Net Income to FFO
HowardHughes.com 281.719.6100 38 thousands except share amounts Q4 2021 Q4 2020 FY 2021 FY 2020 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Unaudited Unaudited Net income attributable to common shareholders $ 113,800 $ (6,646) $ 56,100 $ (26,154) Adjustments to arrive at FFO: Segment re