Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q4 2018 Earnings Presentation
29 slides from Howard Hughes's earnings presentation, Feb 27, 2019
Slide 1: Supplemental Information Three Months Ended December 31, 2018
Exhibit 99.2 Seaport District Hughes Landing 6100 Merriweather New York, NY Houston, TX Columbia, MD Supplemental Information Three Months Ended December 31, 2018 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 PORTFOLIO PERFORMANCE DEBT & OTHER Company Profile 4 Stabilized Properties 12 Debt Summary 23 Financial Summary 6 Unstabilized Properties 14 Property-Level Debt 24 Balance Sheets 7 Under Construction Properties 15 Ground Leases 26 Statements of
Slide 4: Company Profile - Summary & Results
Company Profile - Summary & Results Company Profile - Summary & Results Company Overview - Q4 2018 Recent Company Highlights Honolulu--(PRNewswire)--Oct. 16, 2018-- The Howard Hughes Corporation breaks ground on 'A'ali'i at Exchange / Ticker NYSE: HHC Ward Village. The mixed-use residential developm
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 Sq.Ft. 2,117,164 Ret
Slide 6: Financial Summary
Financial Summary Financial Summary (In thousands, except share price and billions) Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 YTD 2018 YTD 2017 Company Profile Share price (a) $97.62 $124.22 $132.50 $139.13 $131.27 $97.62 $131.27 Market Capitalization (b) $4.2b $5.4b $5.7b $6.0b $5.9b $4.2b $5.9b Ente
Slide 7: Balance Sheets
Balance Sheets Balance Sheets (In thousands, except par values and share amounts) FY 2018 FY 2017 ASSETS Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,642,660 $ 1,642,278 Buildings and equipment 2,932,963 2,238,617 Less: accumulated depreciation (380,892) (321,
Slide 8: Statements of Operations
Statements of Operations Comparative Statements of Operations: Total Portfolio (In thousands, except share amounts) Q4 2018 Q4 2017 FY 2018 FY 2017 Revenues: Unaudited Unaudited Unaudited Unaudited Condominium rights and unit sales $ 317,953 $ 122,043 $ 357,720 $ 464,251 Master Planned Community lan
Slide 9: 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) Q4 2018 Q4 2017 YTD 2018 YTD 2017 RECONCILIATIONS OF NET INCOME TO FFO Net income attributable to common stockholders $ 37,261 $ 149,121 $ 57,012 $ 168,404 Add: Segment real estate related depreciation and a
Slide 10: NOI by Region
NOI by Region NOI by Region % Total 4Q18 Occupied (#) 4Q18 Leased (#) 4Q18 Occupied (%) 4Q18 Leased (%) 4Q18 Time to Ownership Annualized Stabilized Stabilize Property ($ in thousands) (a) Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units NOI (b) NOI (c) (Years) Stabilized Proper
Slide 11: NOI by Region (cont'd)
NOI by Region (con't) NOI by Region % Total 4Q18 Occupied (#) 4Q18 Leased (#) 4Q18 Occupied (%) 4Q18 Leased (%) 4Q18 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) Under Construction Propert
Slide 12: Stabilized Properties
Stabilized Properties Stabilized Properties ($ in thousands) Rentable Q4 2018 Q4 2018 Annualized Est. Stabilized Property Location % Ownership Sq. Ft./Units % Occ. % Leased Q4 2018 NOI NOI Office 3 Waterway Square Houston, TX 100 % 234,659 100 % 100 % $ 6,441 $ 6,900 4 Waterway Square Houston, TX 10
Slide 13: Stabilized Properties (cont'd)
Stabilized Properties (con't) Stabilized Properties (cont'd) ($ in thousands) Rentable Sq. Ft. / Q4 2018 % Annualized Est. Stabilized Property Location % Ownership Units Q4 2018 % Occ. Leased Q4 2018 NOI NOI Residential Millennium Six Pines Apartments Houston, TX 100 % 314 95% 95% $ 3,743 $ 4,500 Mi
Slide 14: Unstabilized Properties
Unstabilized Properties Unstabilized Properties (Dollars in thousands) % Rentable Sq. Q4 2018 Q4 2018 % Develop. Est. Total Cost Annualized Est. Stabilized NOI Est. Stab. Est. Stab. Project Name Location Ownership Ft. / Units % Occ. (a) Leased (a) Costs Incurred (Excl. Land) Q4 2018 NOI (b) Date Yie
Slide 15: Under Construction Properties
Under Construction Projects Under Construction Properties (In thousands, except sq. ft. and units) Owned & Managed % Est. Rentable Percent Pre- Const. Est. Stabilized Develop. Est. Total Cost Est. Stab. Project Name City, State Ownership Sq. Ft. Leased (a) Project Status Start Date Date (b) Costs In
Slide 16: MPC Portfolio
MPC Portfolio MPC Portfolio ($ in thousands) Nevada Texas Maryland Total (c) MPC Performance - 4Q18 & 4Q17 MPC Net Contribution (4Q18) (b) $6,057 $25,827 $(344) $31,540 MPC Net Contribution (4Q17) (b) $62,507 $16,646 $9,903 $89,056 Operating Asset Performance - 2018 & Future Annualized 4Q18 In-Place
Slide 17: Portfolio Key Metrics
Portfolio Key Metrics Portfolio Key Metrics MPC Regions Non-MPC Regions The The Woodlands Woodlands Hills Bridgeland Summerlin Columbia Total Hawaii Seaport Other Total Houston, TX Houston, TX Houston, TX Las Vegas, NV Columbia, MD MPC Regions Honolulu, HI New York, NY Non-MPC Operating - Stabilized
Slide 18: Lease Expirations
Lease Expirations Lease Expirations Office and Retail Lease Expirations Total Office and Retail Portfolio as of December 31, 2018 Office Expirations (a) Retail Expirations (a) Annualized Cash Rent Percentage of Wtd. Avg. Annualized Cash Annualized Cash Rent Percentage of Wtd. Avg. Annualized Cash Ex
Slide 19: Acquisition / Disposition Activity
Acquisition / Disposition Activity Acquisition / Disposition Activity In thousands, except Sq. Ft. / Units / Acres 4Q 2018 Acquisitions Rentable Date Acquired Property % Ownership Location Sq. Ft. / Units / Acres Acquisition Price No acquisition activity in Q4 2018 4Q 2018 Dispositions Rentable Date
Slide 20: Master Planned Community Land
Master Planned Community Land Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total ($ in thousands) Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Revenues: Residential land sale revenues $ 9,435 $ 13,114
Slide 21: Ward Village Condominiums
Ward Village Condominiums Ward Village Condominiums Waiea (a) Anaha (b) Ae'o (c) Ke Kilohana (d) 'A'ali'i (e) Total Key Metrics ($ in thousands) Type of building Ultra-Luxury Luxury Upscale Workforce Upscale Number of units 174 317 465 423 750 2,129 Avg. unit Sq. Ft. 2,174 1,417 834 696 518 891 Cond
Slide 22: 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 23: Debt Summary
Debt Summary Debt Summary December 31, (In thousands) 2018 2017 Fixed-rate debt: Unsecured 5.375% Senior Notes $ 1,000,000 $ 1,000,000 Secured mortgages, notes and loans payable 648,707 499,299 Special Improvement District bonds 15,168 27,576 Variable-rate debt: Mortgages, notes and loans payable, e
Slide 24: Property-Level Debt
Property-Level Debt Property-Level Debt (Dollars in thousands) Q4 2018 Principal Contract Interest Interest Rate Current Annual Interest Initial / Extended Asset Balance Rate Hedge Rate Maturity (a) Master Planned Communities The Woodlands Master Credit Facility $ 150,000 L+275 Floating/Cap 5.25% Ap
Slide 25: Property-Level Debt (cont'd)
Property-Level Debt (con't) (Dollars in thousands) Q4 2018 Principal Contract Interest Interest Rate Current Annual Interest Initial / Extended Asset Balance Rate Hedge Rate Maturity (a) Strategic Developments 250 Water Street $ 129,723 6.00% Fixed 6.00% Dec-18 / Jun-20 Ke Kilohana 96,757 L+325 Floa
Slide 26: 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 Year Ended Year Ending December 31, Ground Leased Asset Share Expiration Date 12/31/2018 12/31/2018 2019 Thereafter Total Riverwalk (a) 100% 2
Slide 27: Definitions
Definitions Definitions Under Construction - Projects in the Strategic Developments segment for which construction has commenced as of December 31, 2018, unless otherwise noted. This excludes MPC and condominium development. Unstabilized - Properties in the Operating Assets segment that have been in
Slide 28: 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) Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 FY 2018 FY 2017 Total Operating Assets segment EBT (a) $ (14,920) $ (9,415) $ 4,715 $ 7,269 $ (11,834) $ (12,351
Slide 29: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue Three Months Ended December 31, Year Ended December 31, (In thousands) 2018 2017 2018 2017 Total residential land sales closed in period $ 30,197 $ 55,7