Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q1 2019 Earnings Presentation
32 slides from Howard Hughes's earnings presentation, May 6, 2019
Slide 1: Supplemental Information Three months ended March 31, 2019
Exhibit 99.2 Seaport District Hughes Landing 6100 Merriweather New York, NY Houston, TX Columbia, MD Supplemental Information Three months ended March 31, 2019 NYSE: HHC The Howard Hughes Corporation, 13355 Noel Road, 22nd Floor, Dallas, TX 75240 HowardHughes.com 214.741.7744
Slide 2: Cautionary Statements
Cautionary Statements Cautionary 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 business. You c
Slide 3: Table of Contents
Table of Contents Table of Contents FINANCIAL OVERVIEW OPERATING PORTFOLIO PERFORMANCE OTHER PORTFOLIO METRICS Company Profile 4 NOI by Region 11 MPC Portfolio 18 Financial Summary 6 Stabilized Properties 13 Portfolio Key Metrics 19 Balance Sheets 8 Unstabilized Properties 15 Lease Expirations 20 St
Slide 4: Company Profile - Summary & Results
Company Profile - Summary & Results Company Profile - Summary & Results Company Overview - Q1 2019 Recent Company Highlights NEW YORK, Feb. 25, 2019--(PRNewswire)-- The Howard Hughes Corporation, in Exchange / Ticker NYSE: HHC partnership with exclusive booking partner Live Nation Entertainment, Inc
Slide 5: Company Profile - Summary & Results (cont'd)
Company Profile - Summary & Results (con't) Company Profile - Summary & Results (cont'd) Path to Projected Annual Stabilized NOI Currently Under Construction Currently Unstabilized Currently Stabilized Total $ in millions $ in millions $ in millions $ in millions Retail & Office S.F. 2,363,783 Retai
Slide 6: Financial Summary
Financial Summary Financial Summary ($ in thousands, except share price and billions) Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 FY 2018 FY 2017 Company Profile Share price (a) $110.00 $97.62 $124.22 $132.50 $139.13 $97.62 $131.27 Market Capitalization (b) $4.8b $4.2b $5.4b $5.7b $6.0b $4.2b $5.9b Ente
Slide 7: Financial Summary (cont'd)
Financial Summary (con't) Financial Summary ($ in thousands) Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 FY 2018 FY 2017 Earnings Profile Operating Assets Segment Income Revenues $ 89,107 $ 80,940 $ 83,676 $ 85,905 $ 84,624 $ 335,145 $ 309,077 Expenses (42,754) (41,453) (42,786) (40,849) (41,593) (166,6
Slide 8: Balance Sheets
Balance Sheets (In thousands, except par values and share amounts) Q1 2019 Q1 2018 FY 2018 FY 2017 Assets: Unaudited Unaudited Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,665,037 $ 1,633,492 $ 1,642,660 $ 1,642,278 Buildings and equipment 3,082,749 2,365,773
Slide 9: Statements of Operations
Statements of Operations Comparative Statements of Operations: Total Portfolio (In thousands, except per share amounts) Q1 2019 Q1 2018 FY 2018 FY 2017 Revenues: Unaudited Unaudited Unaudited Unaudited Condominium rights and unit sales $ 198,310 $ 10,837 $ 357,720 $ 464,251 Master Planned Communitie
Slide 10: Reconciliations of Net Income to FFO, Core FFO and AFFO
Reconciliations of Net Income to FFO, Core FFO and AFFO (In thousands, except share amounts) Q1 2019 Q1 2018 FY 2018 FY 2017 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Unaudited Unaudited Net income attributable to common stockholders $ 31,821 $ 1,474 $ 57,012 $ 168,404 Adjustments to
Slide 11: NOI by Region, excluding the Seaport District
NOI by Region, excluding the Seaport District NOI by Region % Total 1Q19 Occupied (#) 1Q19 Leased (#) 1Q19 Occupied (%) 1Q19 Leased (%) 1Q19 Time to Ownership Annualized Stabilized Stabilize Property (a) Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units NOI (b) NOI (c) (Years) St
Slide 12: NOI by Region, excluding the Seaport District (con't)
NOI by Region, excluding the Seaport District (con't) NOI by Region % Total 1Q19 Occupied (#) 1Q19 Leased (#) 1Q19 Occupied (%) 1Q19 Leased (%) 1Q19 Time to Ownership Annualized Stabilized Stabilize Property (a) Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units NOI (b) NOI (c) (Y
Slide 13: Stabilized Properties - Operating Assets Segment
Stabilized Properties - Operating Assets Segment Stabilized Properties ($ in thousands) Rentable Q1 2019 Q1 2019 Annualized Est. Stabilized Property Location % Ownership Sq. Ft./Units % Occ. % Leased Q1 2019 NOI NOI Office 3 Waterway Square Houston, TX 100 % 232,021 100 % 100 % $ 6,327 $ 6,900 4 Wat
Slide 14: Stabilized Properties - Operating Assets Segment (con't)
Stabilized Properties - Operating Assets Segment (con't) Stabilized Properties (cont'd) ($ in thousands) Rentable Sq. Ft. / Q1 2019 % Annualized Est. Stabilized Property Location % Ownership Units Q1 2019 % Occ. Leased Q1 2019 NOI NOI Multi-family Millennium Six Pines Apartments Houston, TX 100 % 31
Slide 15: Unstabilized Properties - Operating Assets Segment
Unstabilized Properties - Operating Assets Segment Unstabilized Properties ($ in thousands) Annualized % Rentable Sq. Q1 2019 Q1 2019 % Develop. Est. Total Cost Q1 2019 Est. Stabilized Est. Stab. Est. Stab. Project Name Location Ownership Ft. / Units % Occ. (a) Leased (a) Costs Incurred (Excl. Land)
Slide 16: Under Construction Projects - Strategic Developments Segment
Under Construction Projects - Strategic Developments Segment Under Construction Properties ($ In thousands, except Sq. Ft. and units) (Owned & Managed) % Est. Rentable Sq. Percent Pre- Const. Est. Stabilized Develop. Est. Total Cost Est. Stabilized Est. Stab. Project Name Location Ownership Ft. Leas
Slide 17: Seaport District Segment Performance
Seaport District Segment Performance NOI by Region Real Estate Managed Operations (Landlord) (a) Businesses (b) Events, Sponsorships Historic District & Historic District & & Q1 2019 ($ in thousands) Pier 17 Multi-Family (d) Hospitality (e) Pier 17 Tin Building (f) Catering Business (c) Total Revenu
Slide 18: MPC Portfolio
MPC Portfolio ($ in thousands) Nevada Texas Maryland Total (c) MPC Performance - 1Q19 & 1Q18 MPC Net Contribution (1Q19) (b) $9,174 $(17,350) $(313) $(8,489) MPC Net Contribution (1Q18) (b) $24,977 $(18,112) $(163) $6,702 Operating Asset Performance - 2019 & Future Annualized 1Q19 in-place NOI $37,2
Slide 19: Portfolio Key Metrics
Portfolio Key Metrics Portfolio Key Metrics MPC Regions Non-MPC Regions The The Woodlands Woodlands Hills Bridgeland Summerlin Columbia Total Hawai‘i Seaport Other Total Houston, TX Houston, TX Houston, TX Las Vegas, NV Columbia, MD MPC Regions Honolulu, HI New York, NY Non-MPC Operating - Stabilize
Slide 20: Lease Expirations
Lease Expirations Lease Expirations Office and Retail Lease Expirations Total Office and Retail Portfolio as of March 31, 2019 Office Expirations (a) Retail Expirations (a) Annualized Cash Rent Percentage of Wtd. Avg. Annualized Cash Annualized Cash Rent Percentage of Wtd. Avg. Annualized Cash Expir
Slide 21: Acquisition / Disposition Activity
Acquisition / Disposition Activity Acquisition / Disposition Activity (In thousands, except rentable Sq. Ft. / Units / Acres) Q1 2019 Acquisitions Rentable Date Acquired Property % Ownership Location Sq. Ft. / Units / Acres Acquisition Price No acquisition activity in Q1 2019 Q1 2019 Dispositions Re
Slide 22: Master Planned Community Land
Master Planned Community Land Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Maryland Total ($ in thousands) Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Revenues: Residential land sale revenues $ 10,683 $ 5,639
Slide 23: Ward Village Condominiums
Ward Village Condominiums Ward Village Condominiums Waiea (a) Anaha (b) Ae‘o (c) Ke Kilohana (d) ‘A‘ali‘i (e) Total (h) Key Metrics ($ in thousands) Type of building Ultra-Luxury Luxury Upscale Workforce Upscale Number of units 177 (f) 317 465 423 750 2,132 Avg. unit Sq. Ft. 2,137 1,417 834 696 518
Slide 24: Other Assets
Other Assets Other Assets Property Name City, State % Own Acres Notes Planned Future Development The Elk Grove Collection Elk Grove, CA 100% 64 Sold 36 acres for $36 million in total proceeds in 2017. We are assessing our plans for the remaining acres. Previous development plans have been placed on
Slide 25: Debt Summary
Debt Summary Debt Summary (In thousands) March 31, 2019 December 31, 2018 Fixed-rate debt: Unsecured 5.375% Senior Notes $ 1,000,000 $ 1,000,000 Secured mortgages, notes and loans payable 660,229 648,707 Special Improvement District bonds 14,978 15,168 Variable-rate debt: Mortgages, notes and loans
Slide 26: Property-Level Debt
Property-Level Debt Property-Level Debt ($ in thousands) Q1 2019 Principal Asset Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Master Planned Communities The Woodlands Master Credit Facility $ 150,000 L+275 Floating/Cap 5.24% Apr-20 /
Slide 27: Property-Level Debt (con't)
Property-Level Debt (con't) ($ in thousands) Q1 2019 Principal Asset Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Strategic Developments Ke Kilohana 104,254 L+325 Floating 5.74% Dec-19 / Dec-20 100 Fellowship Drive 38,099 L+150 Float
Slide 28: Summary of Ground Leases
Summary of Ground Leases Summary of Ground Leases Minimum Contractual Ground Lease Payments ($ in thousands) Future Cash Payments Pro-Rata Three months ended Remaining Year Ending December 31, Ground Leased Asset Share Expiration Date March 31, 2019 2019 2020 Thereafter Total Riverwalk (a) 100% 2045
Slide 29: Definitions
Definitions Definitions Under Construction - Projects in the Strategic Developments and Seaport District segments for which construction has commenced as of March 31, 2019, unless otherwise noted. This excludes MPC and condominium development. Unstabilized - Properties in the Operating Assets and Se
Slide 30: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Measures Reconciliation of Operating Assets segment EBT to Total NOI: (In thousands) Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 FY 2018 FY 2017 Total Operating Assets segment EBT (a) $ 5,686 $ (5,793) $ (4,115) $ 5,386 $ 8,365 $ 3,843 $ (17
Slide 31: Reconciliation of Non-GAAP Measures (con't)
Reconciliation of Non-GAAP Measures (con't) Reconciliation of Non-GAAP Measures Reconciliation of Seaport District segment EBT to Total NOI: (In thousands) Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 FY 2018 FY 2017 Total Seaport District segment EBT (a) $ (15,852) $ (15,660) $ (8,798) $ (856) $ 1,449 $
Slide 32: Reconciliation of Non-GAAP Measures (con't)
Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures (In thousands) Three Months Ended March 31, Three Months Ended December 31, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2019 2018 2018 2017 Total residential land sales closed in period $ 39,479 $