Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — REITWeek 2015: NAREIT Investor Forum
38 slides from Howard Hughes's conference presentation, Jun 10, 2015
Slide 1: Corporate Presentation, REITWeek 2015: NAREIT Investor Forum
The Howard Hughes Corporation Third Quarter 2014 Corporate Presentation REITWeek 2015: NAREIT Investor Forum June 10, 2015
Slide 2: Disclaimer and Safe Harbor Statement
The Howard Hughes Corporation (“HHC”) cautions that statements in this presentation that are forward-looking and provide other than historical information involve risks and uncertainties that may impact actual results and any future performance suggested by the forward-looking statements. The forwar
Slide 3: Company overview
The Howard Hughes Corporation Company overview HHC’s mission is to be the preeminent real estate developer and operator of master planned communities and mixed use properties across the United States. HHC owns a diversified portfolio of marquee assets spanning 16 states. Three core business segments
Slide 4: A distinguished legacy of more than six decades of real estate operations
A distinguished legacy of more than six decades of real estate operations 3 1973 The vast Hughes empire becomes the Summa Corporation 1994 The Summa Corporation becomes The Howard Hughes Corporation 1996 Merges with The Rouse Company 2009 GGP files for bankruptcy 1950s Howard Hughes acquires land en
Slide 5: Seasoned senior management team with aligned incentives
David R. Weinreb Chief Executive Officer Grant Herlitz President Andrew C. Richardson Chief Financial Officer Executive officers are equity owners having purchased $20 million of warrants and common equity Deep commercial real estate experience throughout HHC senior management and Board of Directors
Slide 6: Steady cash flow base combined with meaningful value creation opportunities
ExxonMobil Build-to-Suit Hughes Landing Retail One Lake’s Edge Three Hughes Landing Creekside Village Green The Metropolitan Downtown Columbia Steady cash flow base combined with meaningful value creation opportunities 5 Net Operating Income Shops at Summerlin ONE Ala Moana Millennium Woodlands Phas
Slide 7: Key investment highlights
Key investment highlights Premier portfolio of master planned communities Diverse collection of trophy MPC assets strategically located in Houston, Las Vegas and Columbia, MD. Housing market and macroeconomic conditions stabilized in each market. High-quality, geographically diverse income-producing
Slide 8: Premier portfolio of trophy master planned communities
Premier portfolio of trophy master planned communities 7 Master planned community real estate overview Summerlin Bridgeland Source: 12/31/14 10-K. (1) Recorded impairment charges of $346 million for Summerlin South and $59 million for the Maryland MPCs in 2010. The Woodlands Large scale, long-term c
Slide 9: Robust performance throughout the MPC portfolio
Robust performance throughout the MPC portfolio 8 Acreage sales revenue Market update Summerlin Scarcity of attractive developable residential land in the market and improved new housing demand. Summerlin commands premium pricing in Las Vegas metro area. Superpads (~20 acres) sold as less developed
Slide 10: Operating assets: high-quality, geographically diverse cash flows
Operating assets: high-quality, geographically diverse cash flows 9 Segment overview Proven stable of high-quality, cash flow generating assets. HHC’s retail assets include over 3.3 million total sq. ft. of leasable area. HHC’s office assets include approximately 2.5 million total sq. ft. of leasabl
Slide 11: Unlocking value at our strategic developments
Unlocking value at our strategic developments 10 3 Careful and active stewardship of our assets with rigorous evaluation of risk and economics South Street Seaport Phase I redevelopment construction began in Q3 2013 and expected to be completed in 2017 – 362K sq. ft. of GLA. Acquired land assemblage
Slide 12: The Woodlands commercial developments
The Woodlands commercial developments 11 Overview Strategy is to develop and hold commercial assets given the strong fundamentals with The Woodlands Town Center and Hughes Landing. Non-strategic commercial land located on fringes of The Woodlands will likely be sold over time. Existing Class A offic
Slide 13: The Woodlands Hughes Landing: Undeveloped in 2012
The Woodlands 12 3 Hughes Landing: Undeveloped in 2012
Slide 14: The Woodlands Hughes Landing: Under development in 2014
The Woodlands 13 3 Hughes Landing: Under development in 2014
Slide 15: The Woodlands Hughes Landing: completed and under construction
The Woodlands 14 3 Hughes Landing: ~1.4 million SF of office, 123k SF of retail, a 205-key hotel, and 390 multifamily units completed and/or under construction in ~2.5 years
Slide 16: Downtown Summerlin
Downtown Summerlin 15 Overview First phase of a 326-acre mixed use urban town center that will include retail, office, hotel and multi-family residential components incorporated with social, civic and cultural activities to create a vibrant downtown in Summerlin. ~$418 million of development costs e
Slide 17: Downtown Summerlin
Downtown Summerlin 16 3
Slide 18: Downtown Summerlin
EiDowntown Summerlin Howard Hoghec
Slide 19: Downtown Summerlin
EiDowntown Summerlin Pouand Paghes
Slide 20: Downtown Summerlin
Downtown Summerlin 20 3
Slide 21: Summerlin – The Ridges
ElSummerlin — The Ridges Henne Hoghes
Slide 22: Summerlin – The Ridges
Summerlin – The Ridges 22 3
Slide 23: Summerlin – The Ridges
Summerlin – The Ridges 23 3
Slide 24: Summerlin – Discovery Land Company JV
Summerlin – Discovery Land Company JV on 555 acres 24 3
Slide 25: Ward Centers / Ward Village
Ward Centers / Ward Village 25 Overview Currently includes a 665,000 sq. ft. shopping district with seven specialty centers, ~140 unique shops, a variety of restaurants and an entertainment center, which generates $24 million of annual NOI. In October 2012, HHC announced plans to create a world-clas
Slide 26: Ward Village
Ward Village 26 3
Slide 27: Ward Village
Ward Village 27 3
Slide 28: South Street Seaport
South Street Seaport 28 Overview Comprised of three mid-rise buildings and the Pier 17 pavilion shopping mall in historic waterfront district on Manhattan. Ranked 22nd among the most visited sites around the world by Travel+Leisure with over 9 million people visiting annually. Received unanimous app
Slide 29: South Street Seaport
South Street Seaport 29 3
Slide 30: South Street Seaport
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Slide 31: South Street Seaport
HiSouth Street Seaport Aouand ugha
Slide 32: South Street Seaport
HiSouth Street Seaport 32
Slide 33: Historical financial performance
Historical financial performance 33 Acreage sales revenue by MPC (1) Operating Assets NOI (2)(3) Development costs ($ in millions) ($ in millions) ($ in millions) (1) 2009-2011 include The Woodlands MPC assuming 100% ownership. (2) NOI negatively impacted at South Street Seaport and Riverwalk Market
Slide 34: Key takeaways
Key takeaways Premier portfolio of master planned communities High-quality, geographically diverse income-producing real estate assets Robust development pipeline with meaningful near-term opportunities Conservative capital structure with low leverage and staggered debt maturities Experienced leader
Slide 35: Appendix
Appendix 35 Appendix
Slide 36: Financial reconciliations
Financial reconciliations 36 Year ended December 31, Three Months Ended March 31, 2015 2011 2012 2013 2014 2015 2014 TTM Consolidated properties Real estate affiliates Segment basis Segment basis Segment basis Segment basis Segment basis Segment basis Segment basis ($ in thousands) Reconciliation of
Slide 37: Financial reconciliations (cont'd)
Financial reconciliations (cont’d) 37 Year ended December 31, Three months ended March 31, Twelve months ended March 31, ($ in thousands) 2011 2012 2013 2014 2014 2015 2015 Reconciliation of total operating assets NOI to total operating assets REP EBT: Total operating assets NOI $ 55,121 $ 59,259 $
Slide 38: Financial reconciliations (cont'd)
Financial reconciliations (cont’d) Year ended December 31, ($ in thousands) March 31, 2011 2012 2013 2014 2015 Reconciliation of Net debt to GAAP Total Mortgages, notes and loans payable Total debt Less: Cash and cash equivalents Net Debt 606,477 688,312 1,514,623 1,993,470 2,123,617 606,477 688,312