Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q3 2020 Earnings Presentation
33 slides from Howard Hughes's earnings presentation, Nov 5, 2020
Slide 1: Supplemental Information Three months ended September 30, 2020
Exhibit 99.2 Seaport District HughesThe Woodlands Landing Towers at the Waterway 6100 Merriweather New York, NY Houston,The Woodlands, TX TX Columbia, MD Supplemental Information Three months ended September 30, 2020 NYSE: HHC The Howard Hughes Corporation, 9950 Woodloch Forest Drive, Suite 1100, Th
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 - Q3 2020 Recent Company Highlights THE WOODLANDS, September 21, 2020 (PRNewswire) -- The Howard Hughes Exchange / Ticker NYSE: HHC Corporation (HHC) announced that David O'Reilly, President and Chief Financial
Slide 5: Company Profile - Summary & Results (cont'd)
Company Profile - Summary & Results (cont'd) Company Profile - Summary & Results (con't) Q3 2020 Path to Projected Annual Stabilized NOI Under Construction Unstabilized Stabilized Total $ in millions $ in millions $ in millions $ in millions Retail Other Other Retail 3% Hotel 6% Hotel 6% 19% Multi-
Slide 6: Financial Summary
Financial Summary Financial Summary $ in thousands except share price and billions Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Company Profile Share price (a) $57.60 $51.95 $50.52 $126.80 $129.60 $57.60 $129.60 Market Capitalization (b) $3.2b $2.9b $2.8b $5.4b $5.6b $3.2b $5.6b E
Slide 7: Financial Summary (con't)
Financial Summary (con't) Financial Summary $ in thousands Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Earnings Profile Operating Assets Segment Income Revenues $ 83,430 $ 81,004 $ 111,170 $ 93,639 $ 101,694 $ 275,604 $ 297,405 Expenses (47,508) (42,007) (53,264) (48,414) (48,571
Slide 8: Balance Sheets
Balance Sheets thousands except par values and share amounts Q3 2020 Q3 2019 FY 2019 FY 2018 ASSETS Unaudited Unaudited Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,693,478 $ 1,675,536 $ 1,655,674 $ 1,642,660 Buildings and equipment 4,069,640 3,136,130 3,813,5
Slide 9: Statements of Operations
Statements of Operations Comparative Statements of Operations: Total Portfolio thousands except per share amounts Q3 2020 Q3 2019 YTD Q3 2020 YTD Q3 2019 REVENUES Unaudited Unaudited Unaudited Unaudited Condominium rights and unit sales $ 142 $ 9,999 $ 185 $ 443,931 Master Planned Communities land s
Slide 10: Reconciliations of Net Income to FFO, Core FFO and AFFO
Reconciliations of Net Income to FFO, Core FFO and AFFO thousands except share amounts Q3 2020 Q3 2019 YTD Q3 2020 YTD Q3 2019 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Unaudited Unaudited Net income (loss) attributable to common stockholders $ 139,710 $ 29,758 $ (19,508) $ 75,056 Adj
Slide 11: NOI by Region, excluding the Seaport District
NOI by Region, excluding the Seaport District in thousands except Sq. Ft. and units % Total Q3 2020 Occupied (#) Q3 2020 Leased (#) Q3 2020 Occupied (%) Q3 2020 Leased (%) Q3 2020 Est. Time to Ownership Annualized Stabilized Stabilize Property (a) Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Un
Slide 12: NOI by Region, excluding the Seaport District (con't)
NOI by Region, excluding the Seaport District (con't) NOI by Region in thousands except Sq. Ft. and units % Total Q3 2020 Occupied (#) Q3 2020 Leased (#) Q3 2020 Occupied (%) Q3 2020 Leased (%) Q3 2020 Est. Time to Ownership Annualized Stabilized Stabilize Property (a) Sq. Ft. Units Sq. Ft. Units Sq
Slide 13: Stabilized Properties - Operating Assets Segment
Stabilized Properties - Operating Assets Segment in thousands except Sq. Ft. and units Rentable Q3 2020 Q3 2020 Annualized Q3 Est. Stabilized Property Location % Ownership Sq. Ft. % Occ. % Leased 2020 NOI (a) NOI (a) Office 3 Waterway Square Houston, TX 100% 232,021 96% 96% $ 3,784 $ 6,900 4 Waterwa
Slide 14: Stabilized Properties - Operating Assets Segment (con't)
Stabilized Properties - Operating Assets Segment (con't) in thousands except Sq. Ft. and units Q3 2020 % Occ. (c) Q3 2020 % Leased (c) % Rentable Rentable Rentable Annualized Q3 Est. Stabilized Property Location Ownership Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units 2020 NOI (a) NOI (a) Multi-family Mi
Slide 15: Unstabilized Properties - Operating Assets Segment
Unstabilized Properties - Operating Assets Segment in thousands except Sq. Ft. and units Q3 2020 % Occ. (a) Q3 2020 % Leased (a) Develop. Est. Total Annualized Est. Est. Est. % Rentable Rentable Rentable Costs Cost (Excl. Q3 2020 Stabilized Stab. Stab. Project Name Location Ownership Sq. Ft. Units S
Slide 16: Under Construction Projects - Strategic Developments Segment
Under Construction Projects - Strategic Developments Segment Under Construction Properties in thousands except Sq. Ft. and units Est. Develop. Est. Total Est. (Owned & Managed) Project % Est. Rentable Percent Pre- Const. Stabilized Costs Cost (Excl. Est. Stabilized Stab. Name Location Ownership Sq.
Slide 17: Seaport District Operating Performance
Seaport District Operating Performance NOI by Region Real Estate Managed Events, Q3 2020 Operations (Landlord) (a) Businesses (b) Sponsorships & Historic District Historic District Catering Business Q3 2020 $ in thousands & Pier 17 Multi-Family (c) & Pier 17 (d) Tin Building (e) (f) Total Revenues R
Slide 18: MPC Portfolio
MPC Portfolio Commercial 22% Commercial Master Planned 42% Commercial Communities- Remaining Residential 100% 58% Saleable Acres (a) Residential 78% Unstabilized 7% Unstabilized Unstabilized 10% 17% Income-Producing Assets - Stabilized and Unstabilized Stabilized Stabilized Stabilized 93% 90% 83% $
Slide 19: Portfolio Key Metrics
Portfolio Key Metrics Portfolio Key Metrics MPC Regions Non-MPC Regions The The Woodlands As of September 30, 2020 Woodlands Hills Bridgeland Summerlin Columbia Total Hawai‘i (a) Seaport Other Total Houston, TX Houston, TX Houston, TX Las Vegas, NV Columbia, MD MPC Regions Honolulu, HI New York, NY
Slide 20: Lease Expirations
Lease Expirations Lease Expirations Office and Retail Lease Expirations Total Office and Retail Portfolio as of September 30, 2020 54% g n 48% i r i p x 42% E t n e 36% R h s 30% a C d 24% e z i l a 18% u n n A 12% f o 6% % 0% Office Retail Office Retail Office Retail Office Retail Office Retail Off
Slide 21: Acquisition / Disposition Activity
Acquisition / Disposition Activity Acquisition / Disposition Activity thousands except rentable Sq. Ft. / Units / Acres Q3 2020 Acquisitions Rentable Date Acquired Property % Ownership Location Sq. Ft. / Units / Acres Acquisition Price No acquisition activity in Q3 2020 Q3 2020 Dispositions Rentable
Slide 22: Master Planned Community Land
Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total $ in thousands Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Revenues: Residential land sale revenues $ 3,089 $ 11,722 $ 6,672 $ 2,988 $ 17,472 $ 17,6
Slide 23: Ward Village Condominiums
Ward Village Condominiums As of September 30, 2020 Waiea Anaha Ae‘o Ke Kilohana (a) ‘A‘ali‘i Kō'ula Total Key Metrics ($ in thousands) Type of building Ultra-Luxury Luxury Upscale Workforce Upscale Upscale Number of units 177 317 465 423 750 565 2,697 Avg. unit Sq. Ft. 2,138 1,417 838 696 518 725 85
Slide 24: Other/Non-core Assets
Other/Non-core Assets Other Assets Property Name City, State % Own Acres Notes 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 hold as we believe
Slide 25: Debt Summary
Debt Summary Debt Summary thousands September 30, 2020 December 31, 2019 Fixed-rate debt: Unsecured 5.375% Senior Notes due 2025 $ 1,000,000 $ 1,000,000 Unsecured 5.375% Senior Notes due 2028 750,000 — Secured mortgages, notes and loans payable 594,920 884,935 Special Improvement District bonds 42,2
Slide 26: Property-Level Debt
Property-Level Debt Property-Level Debt $ in thousands Q3 2020 Principal Contract Interest Interest Rate Current Annual Initial / Extended Asset Balance Rate Hedge Interest Rate Maturity (a) Operating Assets 1201 Lake Robbins $ 273,070 L+235 Floating 2.50% Dec-20 / Jun-21 The Woodlands Warehouse 7,2
Slide 27: Property-Level Debt (con't)
Property-Level Debt (con't) $ in thousands Q3 2020 Principal Contract Interest Interest Rate Current Annual Initial / Extended Asset Balance Rate Hedge Interest Rate Maturity (a) Master Planned Communities Bridgeland Credit Facility $ 75,000 L+250 Floating/Cap 2.66% Oct-22 / Oct-24 The Woodlands Mas
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 September 30, 2020 2020 2021 Thereafter Total Riverwalk (a) 100%
Slide 29: Summary of Restructuring Expenses
Summary of Restructuring Expenses Summary of Ground Leases $ in thousands Liability as of (Benefit) Expense Liability as of Restructuring Expenses June 30, 2020 Settled in Q3 2020 Recorded in Q3 2020 September 30, 2020 Known Expenses Employee severance $ 753 $ (753) $ — $ — Estimated Expenses Employ
Slide 30: Definitions
Definitions Definitions Stabilized - Properties in the Operating Assets and Seaport District 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
Slide 31: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Measures Reconciliation of Operating Assets segment EBT to Total NOI: thousands Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Total Operating Assets segment EBT (a) $ (28,831) $ (17,342) $ (7,544) $ (3,507) $ 19,825 $ (
Slide 32: 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: thousands Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Total Seaport District segment EBT (a) $ (27,646) $ (24,636) $ (35,956) $ (12,464) $
Slide 33: Reconciliation of Non-GAAP Measures (con't)
Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures thousands Three Months Ended September 30, Nine Months Ended September 30, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2020 2019 2020 2019 Total residential land sales closed in period $ 31,059 $