Howard Hughes Holdings Inc. · NYSE:HHH

Howard Hughes — Q3 2023 Earnings Presentation

32 slides from Howard Hughes's earnings presentation, Nov 6, 2023

  1. Slide 1: Supplemental Information Three Months Ended September 30, 2023

    Howard Hughes Holdings Inc. Supplemental Information Three Months Ended September 30, 2023 NYSE: HHH Exhibit 99.2

  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

  3. 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

  4. Slide 4: Definitions

    HOWARD HUGHES 4 Stabilized - Properties in the Operating Assets and Seaport segments that have been in service for more than 36 months or have reached 90% occupancy, whichever occurs first. If an office, retail or multi-family property has been in service for more than 36 months but does not exceed

  5. Slide 5: Company Profile - Summary & Results

    HOWARD HUGHES 5 The Park Ward Village 6% ‘A‘ali‘i 29% Kō'ula 29% Ulana Ward Village 13% Kalae 23%Bridgeland 26% Summerlin 73% The Woodlands/ Woodlands Hills 1% Recent Company Highlights Q3 2023 Company Performance Diluted Earnings / Share $ (10.97) FFO / Diluted Share $ 1.11 Core FFO / Diluted Share

  6. Slide 6: Operating Portfolio and Path to Projected Stabilized NOI

    HOWARD HUGHES 6 Office 28% Multi-family 55% Retail 17% Office 16% Multi-family 79% Retail 5% Office 48% Multi-family 26% Retail 20% Other 6% Office 51% Multi-family 20% Retail 21% Other 8% Office 29% Multi-family 63% Retail 8% Q3 2023 Path to Projected Annual Stabilized NOI Currently Under Construct

  7. Slide 7: Company Profile

    HOWARD HUGHES 7 thousands except share price and billions Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 YTD Q3 2023 YTD Q3 2022 Company Profile Share price (a) $ 74.13 $ 78.92 $ 80.00 $ 76.42 $ 55.39 $ 74.13 $ 55.39 Market Capitalization (b) $3.7b $3.9b $4.0b $3.8b $2.7b $3.7b $2.7b Enterprise Value (c) $

  8. Slide 8: Financial Summary

    HOWARD HUGHES 8 Financial Summary (a) Company's share of NOI for the Tin Building by Jean-Georges has been updated for the first and second quarters of 2022 using our current partnership funding provisions compared to the stated ownership of 65% used previously. (b) Excludes $16.1 million charge in

  9. Slide 9: Balance Sheets

    HOWARD HUGHES 9 thousands except par values and share amounts (unaudited) September 30, 2023 December 31, 2022 ASSETS Master Planned Communities assets $ 2,472,497 $ 2,411,526 Buildings and equipment 4,093,344 4,246,389 Less: accumulated depreciation (987,801) (867,700) Land 303,685 312,230 Developm

  10. Slide 10: Statements of Operations

    HOWARD HUGHES 10 thousands except per share amounts (unaudited) Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 REVENUES Condominium rights and unit sales $ 25,962 $ 418,645 $ 46,915 $ 459,681 Master Planned Communities land sales 75,378 52,585 177,045 199,032 Rental revenue 105,192 96,917 306,395 296,081 O

  11. Slide 11: Same Store NOI

    HOWARD HUGHES 11 thousands Q3 2023 Q3 2022 $ Change % Change YTD Q3 2023 YTD Q3 2022 $ Change % Change Same Store Office Houston, TX $ 20,449 $ 19,050 $ 1,399 7 % $ 63,427 $ 54,527 $ 8,900 16 % Columbia, MD 5,566 5,881 (315) (5) % 17,868 18,259 (391) (2) % Las Vegas, NV 3,434 3,499 (65) (2) % 10,110

  12. Slide 12: Same Store Performance - Operating Assets Segment

    HOWARD HUGHES 12 thousands Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Same Store Metrics Stabilized Leasing Percentages Office 87 % 89 % 86 % 85 % 89 % Retail 95 % 96 % 96 % 95 % 96 % Multi-family 96 % 98 % 95 % 95 % 96 % Unstabilized Leasing Percentages (a) Office — % — % — % 71 % 64 % Retail — % — %

  13. Slide 13: NOI by Region - Stabilized Properties

    HOWARD HUGHES 13 thousands except Sq. Ft. and units % Ownership (a) Total Q3 2023 Occupied (b) Q3 2023 Leased (b) Q3 2023 Occupied (%) Q3 2023 Leased (%) In-Place NOI Stabilized NOI Time to Stabilize (Years) (c)Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Stabilized Properti

  14. Slide 14: NOI by Region, excluding Seaport (cont.)

    HOWARD HUGHES 14 NOI by RegionNOI by Region, excluding Seaport (cont.) (a) Includes our share of NOI from our unconsolidated ventures. (b) Occupied and Leased metrics are as of September 30, 2023. (c) The expected stabilization date used in the Time to Stabilize calculation for all unstabilized and

  15. Slide 15: Stabilized Properties - Office and Retail

    HOWARD HUGHES 15 thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Q3 2023 % Occ. (a) Q3 2023 % Leased (a) In-Place NOI (b) Est. Stabilized NOI (b) Office One Hughes Landing Houston, TX 100 % 200,639 58 % 63 % $ 2,190 $ 6,170 Two Hughes Landing Houston, TX 100 % 197,950 75 % 9

  16. Slide 16: Stabilized Properties - Multi-family

    HOWARD HUGHES 16 Q3 2023 % Occ.(a) Q3 2023 % Leased (a) thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Units Rentable Sq. Ft. Units Rentable Sq. Ft. Units In-Place NOI (b) Est. Stabilized NOI (b) Multi-family Creekside Park Apartments Houston, TX 100 % — 292 n/a 93 % n/a 95

  17. Slide 17: Unstabilized Properties

    HOWARD HUGHES 17 Q3 2023 % Occ. (a) Q3 2023 % Leased (a) Dev. Costs Incurred to Date Total Estimated Dev. 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. Units Rentable Sq.

  18. Slide 18: Under Construction Properties

    HOWARD HUGHES 18 Under Construction Properties thousands except Sq. Ft. and units Location % Ownership Est. Rentable Sq. Ft. Percent Pre- Leased (a) Const. Start Date Est. Stabilized Date (b) Develop. Costs Incurred to Date Total Estimated Development Costs Est. Stabilized NOI Est. Stab. Yield Offic

  19. Slide 19: Seaport Operating Performance

    HOWARD HUGHES 19 NOI by Region Q3 2023 Landlord Operations (a) Landlord Operations - Multi-family (b) Managed Businesses (c) Tin Building (d) Events and Sponsorships (e) Q3 2023 Totalthousands except sq. ft. and percentages Revenues (f) $ 2,307 $ 340 $ 10,378 $ 2,680 $ 13,785 $ 29,490 Operating expe

  20. Slide 20: Ward Village - Sold Out Condominiums

    HOWARD HUGHES 20 As of September 30, 2023 Waiea Anaha Ae`o Ke Kilohana ‘A‘ali‘i Victoria Place Ulana Ward Village Total Key Metrics ($ in thousands) Type of building Luxury Luxury Upscale Workforce Upscale Luxury Workforce Number of units 177 317 465 423 750 349 696 3,177 Avg. unit Sq. Ft. 2,138 1,4

  21. Slide 21: Ward Village - Remaining to be Sold

    HOWARD HUGHES 21 As of September 30, 2023 Kō'ula The Park Ward Village Kalae Total Key Metrics ($ in thousands) Type of building Upscale Upscale Luxury Number of units 565 545 329 1,439 Avg. unit Sq. Ft. 725 846 1,207 881 Condo Sq. Ft. 409,612 460,864 397,203 1,267,679 Street retail Sq. Ft. (a) 36,9

  22. Slide 22: Summary of Remaining Development Costs

    HOWARD HUGHES 22 As of September 30, 2023 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

  23. Slide 23: Portfolio Key Metrics

    HOWARD HUGHES 23 MPC Regions Non-MPC Regions The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Floreo Total Columbia (a) Hawai‘i Seaport Total As of September 30, 2023 Houston, TX Houston, TX Houston, TX Las Vegas, NV Phoenix, AZ Phoenix, AZ MPC Regions Columbia, MD Honolulu, HI New Y

  24. Slide 24: MPC Performance

    HOWARD HUGHES 24 Master Planned Community Land Consolidated MPC Segment EBT The Woodlands The Woodlands Hills Bridgeland Summerlin Teravalis Columbia (a) Total Floreo (b) thousands Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023

  25. 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 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Key Performance Metrics: Residential Total acr

  26. Slide 26: Lease Expirations

    HOWARD HUGHES 26 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

  27. Slide 27: Other Assets and Acquisition / Disposition Activity

    HOWARD HUGHES 27 Other Assets Property Name Location % Ownership Acres Notes West End Alexandria (formerly Landmark Mall) Alexandria, VA 58% 41.1 West End Alexandria is a joint venture formed to redevelop the former Landmark Mall into four million square feet of residential, retail, commercial, and

  28. Slide 28: Debt Summary

    HOWARD HUGHES 28 thousands September 30, 2023 December 31, 2022 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 1,492,580 1,500,841 Speci

  29. Slide 29: Debt Summary by Segment

    HOWARD HUGHES 29 (a) Includes the impact of interest rate derivatives. The Company's interest rate swap with a notional amount of $615 million matured in September 2023. (b) Does not include extension options, some of which have performance requirements. (c) Represents Secured Bridgeland Notes. (d)

  30. 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 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 YTD Q3 2023 YTD Q3 2022 Total revenues $ 116,874 $ 121,427 $ 100,925 $ 104,092 $ 109,493 $ 339,226 $ 327,742 Total operating expenses (55,786) (54,452) (47,599) (47,538) (48

  31. Slide 31: Reconciliation of Seaport segment EBT to Total NOI

    HOWARD HUGHES 31 Reconciliation of Non-GAAP Measures Reconciliation of Seaport segment EBT to Total NOI thousands Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 YTD Q3 2023 YTD Q3 2022 Total revenues $ 29,490 $ 22,804 $ 11,897 $ 18,415 $ 32,501 $ 64,191 $ 70,053 Total operating expenses (33,303) (26,665) (

  32. Slide 32: Reconciliations of Net Income to FFO

    HOWARD HUGHES 32 RECONCILIATIONS OF NET INCOME TO FFO thousands except share amounts Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 Net income attributable to common shareholders $ (544,181) $ 108,096 $ (586,069) $ 131,782 Adjustments to arrive at FFO: Segment real estate related depreciation and amortizat

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