Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q4 2023 Earnings Presentation
32 slides from Howard Hughes's earnings presentation, Feb 27, 2024
Slide 1: Supplemental Information Three Months Ended December 31, 2023
Howard Hughes Holdings Inc. Supplemental Information Three Months Ended December 31, 2023 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 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
Slide 5: Company Profile - Summary & Results
HOWARD HUGHES 5 The Park Ward Village 20% Kō'ula 10%Kalae 70% Bridgeland 18% Summerlin 79% The Woodlands/ Woodlands Hills 3% Recent Company Highlights Q4 2023 Company Performance Diluted Earnings / Share $ 0.69 FFO / Diluted Share $ 1.77 Core FFO / Diluted Share $ 2.10 AFFO / Diluted Share $ 1.90 Op
Slide 6: Path to Projected Annual Stabilized NOI
HOWARD HUGHES 6 Office 34% Multi-family 46% Retail 20% Office 28% Multi-family 68% Retail 4% Office 48% Multi-family 26% Retail 19% Other 7% Office 51% Multi-family 21% Retail 20% Other 8% Office 29% Multi-family 63% Retail 8% Q4 2023 Path to Projected Annual Stabilized NOI Currently Under Construct
Slide 7: Company Profile
HOWARD HUGHES 7 thousands except share price and billions Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 FY 2023 FY 2022 Company Profile Share price (a) $ 85.55 $ 74.13 $ 78.92 $ 80.00 $ 76.42 $ 85.55 $ 76.42 Market Capitalization (b) $4.3b $3.7b $3.9b $4.0b $3.8b $4.2b $3.8b Enterprise Value (c) $9.0b $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
Slide 9: Balance Sheets
HOWARD HUGHES 9 thousands except par values and share amounts (unaudited) December 31, 2023 December 31, 2022 ASSETS Master Planned Communities assets $ 2,445,673 $ 2,411,526 Buildings and equipment 4,177,677 4,246,389 Less: accumulated depreciation (1,032,226) (867,700) Land 303,685 312,230 Develop
Slide 10: Statements of Operations
HOWARD HUGHES 10 thousands except per share amounts (unaudited) Q4 2023 Q4 2022 YTD Q4 2023 YTD Q4 2022 REVENUES Condominium rights and unit sales $ 792 $ 217,397 $ 47,707 $ 677,078 Master Planned Communities land sales 193,140 117,033 370,185 316,065 Rental revenue 98,968 103,022 405,363 399,103 Ot
Slide 11: Same Store Metrics
HOWARD HUGHES 11 thousands Q4 2023 Q4 2022 $ Change % Change FY 2023 FY 2022 $ Change % Change Same Store Office Houston, TX $ 19,607 $ 19,249 $ 358 2 % $ 83,033 $ 73,776 $ 9,257 13 % Columbia, MD 3,954 5,275 (1,321) (25) % 21,835 23,570 (1,735) (7) % Las Vegas, NV 3,666 3,467 199 6 % 13,776 14,027
Slide 12: Same Store Performance - Operating Assets Segment
HOWARD HUGHES 12 thousands Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Same Store Metrics Stabilized Leasing Percentages Office 88 % 87 % 89 % 86 % 85 % Retail 96 % 95 % 96 % 96 % 95 % Multi-family 95 % 96 % 98 % 95 % 95 % Unstabilized Leasing Percentages (a) Office — % — % — % — % 71 % Retail — % — % —
Slide 13: NOI by Region, excluding Seaport
HOWARD HUGHES 13 thousands except Sq. Ft. and units % Ownership (a) Total Q4 2023 Occupied (b) Q4 2023 Leased (b) Q4 2023 Occupied (%) Q4 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
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 December 31, 2023. (c) The expected stabilization date used in the Time to Stabilize calculation for all unstabilized and u
Slide 15: Stabilized Properties
HOWARD HUGHES 15 thousands except Sq. Ft. and units Location % Ownership Rentable Sq. Ft. Q4 2023 % Occupied (a) Q4 2023 % Leased (a) In-Place NOI (b) Stabilized NOI (b) Office One Hughes Landing Houston, TX 100 % 200,639 63 % 65 % $ 2,190 $ 5,200 Two Hughes Landing Houston, TX 100 % 197,950 87 % 87
Slide 16: Unstabilized Properties
HOWARD HUGHES 16 Q4 2023 % Occupied (a) Q4 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) Stabilized NOI (b) Multi-family Creekside Park Houston, TX 100 % — 292 n/a 92 % n/a 95 % $ 2,990
Slide 17: Unstabilized Properties (cont.)
HOWARD HUGHES 17 Q4 2023 % Occupied (a) Q4 2023 % Leased (a) Development Costs Incurred to Date Total Estimated Development Costs In-Place NOI 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
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 Stabilized NOI Est. Stab. Yiel
Slide 19: Seaport Operating Performance
HOWARD HUGHES 19 NOI by Region Q4 2023 Landlord Operations (a) Landlord Operations - Multi-family (b) Managed Businesses (c) Tin Building (d) Events and Sponsorships (e) Q4 2023 Totalthousands except sq. ft. Revenues (f) $ 2,353 $ 345 $ 7,317 $ 2,907 $ 4,858 $ 17,780 Operating expenses (f) (8,820) (
Slide 20: Ward Village - Completed Condominiums
HOWARD HUGHES 20 As of December 31, 2023 Waiea Anaha Ae`o Ke Kilohana ‘A‘ali‘i Kō'ula Total Key Metrics ($ in thousands) Type of building Luxury Luxury Upscale Workforce Upscale Upscale Number of units 177 317 465 423 750 565 2,697 Condo Sq. Ft. 378,488 449,205 389,663 294,273 390,097 409,612 2,311,
Slide 21: Ward Village - Under Construction and Predevelopment
HOWARD HUGHES 21 As of December 31, 2023 Victoria Place The Park Ward Village Ulana Ward Village Kalae Total Key Metrics ($ in thousands) Type of building Luxury Upscale Workforce Luxury Number of units 349 545 696 329 1,919 Avg. unit Sq. Ft. 1,164 847 623 1,207 885 Condo Sq. Ft. 406,351 461,360 433
Slide 22: Summary of Remaining Development Costs
HOWARD HUGHES 22 As of December 31, 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 t
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 December 31, 2023 Houston, TX Houston, TX Houston, TX Las Vegas, NV Phoenix, AZ Phoenix, AZ MPC Regions Columbia, MD Honolulu, HI New Yo
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 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023
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 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Key Performance Metrics: Residential Total acr
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
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 acres West End Alexandria is a joint venture formed to redevelop the former Landmark Mall into four million square feet of residential, retail, commercial,
Slide 28: Debt Summary
HOWARD HUGHES 28 thousands December 31, 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 1,485,494 1,500,841 Specia
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. (d) Represents 250 Water Street mortgage. (e) Excludes the Company's share of debt related to its uncon
Slide 30: Reconciliation of Operating Assets segment EBT to Total NOI
HOWARD HUGHES 30 Reconciliation of Operating Assets segment EBT to Total NOI thousands Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 FY 2023 FY 2022 Total revenues $ 104,406 $ 116,874 $ 121,427 $ 100,925 $ 104,092 $ 443,632 $ 431,834 Total operating expenses (52,329) (55,786) (54,452) (47,599) (47,538) (2
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 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 FY 2023 FY 2022 Total revenues $ 17,780 $ 29,490 $ 22,804 $ 11,897 $ 18,415 $ 81,971 $ 88,468 Total operating expenses (24,582) (33,303) (26,665)
Slide 32: Reconciliations of Net Income to FFO
HOWARD HUGHES 32 RECONCILIATIONS OF NET INCOME TO FFO thousands except share amounts Q4 2023 Q4 2022 FY 2023 FY 2022 Net income attributable to common shareholders $ 34,296 $ 52,751 $ (551,773) $ 184,533 Adjustments to arrive at FFO: Segment real estate related depreciation and amortization 54,298 5
Howard Hughes Holdings — Q4 2023 Earnings Presentation on 6ix