Howard Hughes Holdings Inc. Reports Fourth Quarter and Full Year 2024 Results
Strong fourth quarter performance leads to record financial results across all segments-- MPC and Operating Assets momentum expected to continue into 2025
THE WOODLANDS, Texas, Feb. 26, 2025 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. $(HHH)$ (the "Company," "HHH," or "we") today announced operating results for the fourth quarter and year ended December 31, 2024. The financial statements, exhibits, and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information, as available through the Investors section of our website, provide further detail of these results.
Full Year 2024 Highlights:
-- Net income from continuing operations per diluted share of $5.73, up
$4.05 per share or 241% year-over-year
-- Record Master Planned Community $(MPC)$ Earnings Before Taxes (EBT) of
$349 million accentuated by all-time high residential land sales revenues
and average price per acre
-- Record Total Operating Assets Net Operating Income (NOI) of $257 million
led by strong leasing performance resulting in year-over-year increases
of 11% in multifamily and 5% in office
-- Record condominium revenues of $779 million with the delivery of Victoria
Place$(R)$ and strong pre-sales of 394 condominiums from other towers in
Hawai'i and Texas representing future revenues of $870 million
-- Closed on $862 million of financings, including $680 million of
construction loans for condo projects and $168 million of
refinancings--as well as the accelerated collection of $177 million from
the sale of existing and future MUD receivables
-- Completed the spinoff of Seaport Entertainment Group on July 31, 2024,
providing increased focus on HHH's real estate operations and MPC
development
Fourth Quarter 2024 Highlights:
-- Net income from continuing operations per diluted share of $3.25 in the
quarter, up 207% compared to $1.06 in the prior-year period
-- Delivered Victoria Place in Ward Village, generating $212 million of
gross profit
-- MPC EBT of $57 million driven by the sale of 60 residential acres at an
average price of $909,000 per acre, including six custom lots in
Summerlin(R) at an average price of $6.0 million per acre
-- Total Operating Assets NOI of $61 million was up 9% year-over-year with
growth in retail, multifamily, and office
-- Sold Lakeland Village Center at Bridgeland for $28 million generating an
$11 million gain on sale
-- Closed on $312 million of financings, including a $260 million
construction loan for The Ritz-Carlton Residences, The Woodlands
"Howard Hughes delivered another exceptional year in 2024, led by record-setting financial results in each of our business segments," commented David R. O'Reilly, Chief Executive Officer of Howard Hughes. "Our outstanding performance was complemented by the successful streamlining and refocusing of our business--most notably with the spinoff of Seaport Entertainment--and the strengthening of our balance sheet through key financings and innovative transactions which firmly place the Company in a position of financial strength for the future.
"In our MPC segment, we closed out the year on a strong note, delivering $57 million of EBT in the fourth quarter, including robust land sales to homebuilders in Texas and the sale of six custom lots in Summerlin at an impressive average price of $6 million per acre. With this solid performance, we achieved key milestones in our residential land business--including new full-year records for price per acre and land sales revenues--helping propel MPC EBT to an all-time high of $349 million. Looking ahead, we anticipate continued strong homebuilder demand which is expected to contribute to incremental land sales growth and record MPC EBT in 2025.
"In Operating Assets, we delivered record NOI for a fourth consecutive year, increasing NOI by 6% compared to 2023. Growth was realized in each of our core property types, with the most significant percentage gain in multifamily which benefited from strong leasing momentum at our newest developments and improved overall leasing at our stabilized properties. In office, our successful leasing strategy in recent years started to pay dividends in 2024 as rent abatements began to expire across the portfolio. With another 473,000 square feet leased during the year, we closed out 2024 with our stabilized office portfolio 89% leased, well positioning us to deliver continued growth in the years ahead.
"In Strategic Developments, we had another remarkable year which culminated in the fourth quarter with the delivery and record sell-out of every condominium at Victoria Place in Ward Village. In addition to this milestone, our sales teams pre-sold nearly 400 additional condominiums in Hawai'i and Texas during the year, bringing the total value of future condo sales which will be recognized in the next few years to more than $2.6 billion. Subsequent to year end, the State of Hawai'i amended rules which we estimate will provide the potential for an additional 2.5 to 3.5 million gross square feet of residential entitlements in Ward Village. These entitlements could be used for the construction of additional residential towers in the undeveloped areas of the community, providing much needed additional housing in O'ahu and further enhancing the exceptional quality of life and vibrancy of the neighborhood.
"We closed out 2024 on a solid financial foundation with over $900 million of liquidity, including nearly $600 million of cash on the balance sheet and over $300 million of undrawn and fully available commitments. In 2025, we anticipate another strong year with mid-point guidance in both our MPC and Operating Assets segments that imply new full-year records. This is expected to yield approximately $350 million of Adjusted Operating Cash Flow--our new guidance metric which provides enhanced visibility into the key drivers of our cash flow generation and self-funding business model. We are also evaluating additional MUD receivable sales which, if completed, would add substantial additional liquidity to the Company. As always, we remain committed to deploying capital in a disciplined manner, seeking growth opportunities that improve our communities and achieve the highest risk-adjusted returns for our shareholders."
Click Here: Fourth Quarter 2024 Howard Hughes Quarterly Spotlight Video
Click Here: Fourth Quarter 2024 Earnings Call Webcast
Financial Highlights
Total Company
Full Year
-- HHH reported net income from continuing operations of $285.2 million, or
$5.73 per diluted share in 2024, compared to $83.4 million, or $1.68 per
diluted share in 2023. The year-over-year growth was primarily driven by
the delivery of Victoria Place in Ward Village, increased MPC residential
land sales, improved Operating Asset NOI, and final settlement of the
construction defect dispute at Waiea in Ward Village.
-- The Company continued to maintain a strong liquidity position with $596.1
million of cash and cash equivalents, $1.2 billion of undrawn lender
commitments available to be drawn for property development, and limited
near-term debt maturities.
-- On July 31, 2024, HHH completed the spinoff of Seaport Entertainment
Group Inc. $(SEG)$, with holders of HHH common stock receiving one share of
SEG common stock for every nine shares of HHH common stock. All current
and historical net income and losses related to SEG are reflected in
discontinued operations in the Company's financial statements.
Fourth Quarter
-- Net income from continuing operations was $162.3 million, or $3.25 per
diluted share in the quarter, compared to net income of $52.8 million, or
$1.06 per diluted share in the prior-year period.
-- The year-over-year increase was primarily related to the delivery of
Victoria Place in Ward Village, partially offset by reduced MPC land
sales due to timing of superpad sales in Summerlin which occurred earlier
in 2024.
MPC
Full Year
-- MPC EBT totaled a record $349.1 million, representing a 2% increase
compared to $341.4 million in the prior year.
-- Record MPC land sales of $453.2 million increased 22% year-over-year,
driven by the sale of 445 residential acres at a record average price of
$990,000 per acre.
-- In Teravalis$(TM)$, residential land sales commenced in Floreo with the
sale of 115 acres to seven homebuilders at an impressive average price of
$777,000 per acre. During the year, HHH recognized $4.9 million of equity
earnings from Floreo.
-- New homes sold at a robust pace in HHH's communities during 2024 and
totaled 2,234 units, with Summerlin and Bridgeland ranking #5 and #7 in
RCLCO's annual list of top-selling master planned communities,
respectively.
Fourth Quarter
-- MPC EBT totaled $56.9 million in the fourth quarter, down from
$139.3 million in the prior-year period. The reduction was primarily due
to the timing of superpad sales in Summerlin which occurred earlier in
the year and contributed to record MPC residential land sales and EBT in
2024.
-- MPC land sales totaled $67.8 million and were driven by the sale of 60
acres of residential land across Bridgeland(R), The Woodlands Hills(R),
and Summerlin for an average price of $909,000 per acre.
-- In Nevada, custom lot sales commenced in Astra--Summerlin's newest luxury
gated community--resulting in the sale of six lots totaling 3.8 acres for
an average price of $6.0 million per acre.
-- In Arizona, 34 acres were sold in HHH's Floreo joint venture for an
average price of $767,000 per acre.
Operating Assets
Full Year
-- Total Operating Assets NOI, including the contribution from
unconsolidated ventures, was $257.0 million--a new full-year record
representing a $15.7 million or 6% year-over-year increase.
-- Office delivered record NOI in 2024, increasing $6.4 million or 5%
year-over-year largely due to strong lease-up activity and abatement
expirations in The Woodlands(R) and Summerlin. These increases were
partially offset by some tenant vacancies in The Woodlands and Downtown
Columbia(R), as well as initial operating losses at Meridian in
Summerlin. In 2024, the Company executed 473,000 square feet of new or
expanded office leases including 323,000 square feet in The Woodlands,
91,000 square feet in Downtown Columbia, and 59,000 square feet in
Summerlin.
-- Multifamily contributed record NOI and increased 11% year-over-year,
predominantly due to strong lease-up at new developments in Downtown
Columbia, Summerlin, and Bridgeland, as well as improved overall leasing
at HHH's stabilized properties.
-- Retail NOI was up 8% primarily due to the collection of prior-year
reserves for tenants in Ward Village and improved occupancy in the ground
floor retail at Juniper and Marlow in Downtown Columbia and K 'ula(R) in
Ward Village.
-- During the year, HHH divested Creekside Medical Plaza in The Woodlands,
Lakeland Village Center at Bridgeland, and four non-core ground leases in
Houston which resulted in a combined gain on sale of $22.9 million.
Fourth Quarter
-- Total Operating Assets NOI--including the contribution from
unconsolidated ventures--totaled $61.2 million in the quarter,
representing an 9% year-over-year increase.
-- Office NOI of $29.0 million increased 5% year-over-year, driven primarily
by rent abatement expirations and increased occupancy at 9950 Woodloch
Forest in The Woodlands and 1700 Pavilion in Summerlin, partially offset
by lower occupancy at 1725 Hughes Landing in The Woodlands. At quarter
end, the stabilized office portfolio was 89% leased, and 129,000 square
feet of new or expanded leases were executed during the quarter.
-- Multifamily NOI of $15.0 million increased 13% compared to the prior-year
period primarily due to the continued lease-up of HHH's newest properties
including Tanager Echo in Summerlin, Wingspan in Bridgeland, and Marlow
in Downtown Columbia. At year end, the stabilized portfolio was 96%
leased.
-- Retail NOI of $13.0 million increased 15% year-over-year primarily due to
non-recurring prior-year reserves for various tenants in Ward Village and
the opening of the ground floor retail at K 'ula. At quarter end, the
retail portfolio was 96% leased.
-- The Company sold Lakeland Village Center at Bridgeland for $28.0 million
and two non-core ground leases in Houston, resulting in a combined gain
on sale of $14.9 million.
Strategic Developments
Full Year
-- Delivered Victoria Place in the fourth quarter, closing on the sale of
all 349 condo units and generating record annual condominium revenues of
$778.6 million with adjusted gross profit of $211.1 million.
-- In Hawai'i, HHH contracted to sell 316 condominium units at three towers
in pre-sales--The Park Ward Village(R), Kalae(R), and The
Launiu--representing incremental future revenue of $533.4 million. The
majority of these pre-sales occurred at The Launiu, which contracted 283
units during the year. At year end, The Park Ward Village was 97%
pre-sold, Kalae was 93% pre-sold, and The Launiu was 58% pre-sold.
-- In Texas, pre-sales at The Ritz Carlton Residences, The Woodlands--a new
111-unit luxury condominium development on the shores of Lake
Woodlands--commenced in March. Construction began in early October and
70% of its units representing $336.9 million of future revenue are
already pre-sold.
-- In the third quarter, the Company recovered $90.0 million of insurance
proceeds related to the settlement of construction defect claims at Waiea
in Ward Village--including window remediation expenditures incurred since
2020. During the year, the Company recognized $15.1 million of additional
condominium rights and unit cost of sales in conjunction with this
project and to settle final costs previously incurred by the Waiea
general contractor.
Fourth Quarter
-- Closed on the sale of all 349 condo units at Victoria Place, generating
$778.4 million of condominium revenues with a 27% gross margin.
-- Contracted to sell 19 condominium units in Hawai'i and Texas representing
$40.7 million of future revenue, including 15 units at The Launiu, two at
The Park Ward Village, one at Kalae, and one at The Ritz-Carlton
Residences, The Woodlands.
-- Subsequent to year end in January, the Governor of Hawai'i approved
amendments to the HCDA Mauka Area Rules to include updated guidelines for
smart growth in areas including Ward Village. The Company estimates this
amendment increases its potential residential entitlements in Ward
Village to between 2.5 to 3.5 million gross square feet, which could be
used for the development of additional condominium towers in future
years.
-- Completed construction on Village Green at Bridgeland Central and the
Summerlin Grocery Center anchored by Whole Foods. At quarter end, both of
these retail centers were approximately 75% leased with all of the
remaining square footage in LOI or lease negotiations.
Financing Activity
Fourth Quarter
-- Closed on a $260 million three-year construction loan for The
Ritz-Carlton Residences, The Woodlands. The loan bears interest at SOFR
plus 5.1%.
-- Closed on a $38.0 million loan to refinance the construction loan for
Starling at Bridgeland. The five-year non-recourse loan bears interest at
a fixed rate of 5.35%.
-- Closed on a $13.5 million financing for Waterway Plaza II, which was
purchased in an all-cash transaction for $19.2 million in the second
quarter of 2024. The loan bears interest at SOFR plus 3.5% and matures in
2029.
-- Increased the capacity of the Bridgeland Notes from $475.0 million to
$600.0 million and extended the maturity date from September 2026 to
September 2029. This transaction was supported by the proceeds from the
Bridgeland MUD receivables sale in the third quarter which were used to
pay down the notes by $192.0 million.
Full Year 2025 Guidance
-- MPC EBT is projected to be strong in 2025 and aided by continued tight
supply of existing homes on the market and low inventories of vacant
developed lots in our MPCs. As a result, we anticipate solid new home
sales in Summerlin, Bridgeland, and The Woodlands Hills and continued
strong homebuilder demand for residential land throughout 2025.
Residential land sales are expected to occur throughout the year, but the
second and third quarters will likely see a higher concentration of
superpad sales in Summerlin. Overall, 2025 MPC EBT is expected to be up
5% to 10% year-over-year with a mid-point of approximately $375 million.
-- Operating Assets NOI, including the contribution from unconsolidated
ventures, is projected to benefit from continued growth in multifamily
driven by increased occupancy at new multifamily developments. Office is
also expected to improve year-over-year due to strong leasing momentum
and expiring rent abatements across the portfolio. This improvement will
likely be partially offset by lower occupancy at various properties in
Downtown Columbia, some tenant turnover in The Woodlands, and initial
operating losses from our newest office developments. Retail is expected
to see a modest reduction in NOI during 2025, primarily due to
non-recurring collections of tenant reserves in Ward Village during 2024
and the impact of some turnover resulting from tenant upgrades in
Downtown Summerlin as this property reaches its 10-year anniversary.
Overall, 2025 Operating Assets NOI is expected to be flat to up 4%
year-over-year with a mid-point of approximately $262 million.
-- Condo sales revenues are projected to be approximately $375 million in
2025 and driven entirely by the closing of units at Ulana--a 696-unit
development in Ward Village which is 100% pre-sold and expected to be
completed in the fourth quarter. Because Ulana is a workforce housing
tower, the Company does not expect to recognize any gross profit from the
project. The Park Ward Village--HHH's next condo tower which comprises
545 market rate units--is already 97% pre-sold and expected to contribute
meaningful revenues and gross profit in 2026.
-- Cash G&A is projected to range between $76 million and $86 million in
2025--or a mid-point of $81 million--excluding approximately $9 million
of anticipated non-cash stock compensation.
-- Overall, Adjusted Operating Cash Flow is projected to range between
$325 million and $375 million in 2025 with a mid-point of approximately
$350 million or $7.00 per share.
-- With a disciplined approach to capital allocation throughout the year,
the Company expects to end 2025 with cash and cash equivalents of
approximately $600 million. This does not include the benefit of any MUD
receivable sales that could occur during the year.
Conference Call & Webcast Information
Howard Hughes Holdings Inc. will host its fourth quarter 2024 earnings conference call on Thursday, February 27, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Please visit the Howard Hughes website to listen to the earnings call via a live webcast. For listeners who wish to participate in the question-and-answer session via telephone, please preregister using HHH's earnings call registration webpage. All registrants will receive dial-in information and a PIN allowing them to access the live call. An on-demand replay of the earnings call will be available on the Company's website.
We are primarily focused on creating shareholder value by increasing our per-share net asset value. Often, the nature of our business results in short-term volatility in our net income due to the timing of MPC land sales, recognition of condominium revenue and operating business pre-opening expenses, and, as such, we believe the following metrics summarized below are most useful in tracking our progress towards net asset value creation.
Three Months Ended December 31, Year Ended December 31,
------------------------------------------ ------------------------------------------
$ in thousands 2024 2023 $ Change % Change 2024 2023 $ Change % Change
------------------ ------- ------- --------- ---------- ------- ------- --------- ----------
Operating Assets
NOI (1)
Office $ 28,993 $ 27,504 $ 1,489 5% $124,594 $118,165 $ 6,429 5%
Retail 13,027 11,301 1,726 15% 54,163 49,981 4,182 8%
Multifamily 15,000 13,319 1,681 13% 58,827 52,831 5,996 11%
Other 1,459 2,035 (576) (28)% 6,153 7,411 (1,258) (17)%
Redevelopments
(a) -- (107) 107 100% -- (189) 189 100%
Dispositions
(a) 432 299 133 44% 1,718 2,363 (645) (27)%
------------------ ------- ------- ------- ----- ------- ------- ------- ------
Operating Assets
NOI 58,911 54,351 4,560 8% 245,455 230,562 14,893 6%
Company's share
of NOI from
unconsolidated
ventures 2,288 1,837 451 25% 11,552 10,778 774 7%
------------------ ------- ------- ------- ----- ------- ------- ------- ------
Total Operating
Assets NOI $ 61,199 $ 56,188 $ 5,011 9% $257,007 $241,340 $ 15,667 6%
Projected
stabilized NOI
Operating Assets
($ in millions) $ 352.2 $ 349.8 $ 2.4 1%
MPC
Acres Sold -
Residential 60 207 (147) (71)% 445 375 70 19%
Acres Sold -
Commercial 10 9 1 11% 14 132 (118) (90)%
Price Per Acre -
Residential $ 909 $ 1,047 $ (138) (13)% $ 990 $ 944 $ 46 5%
Price Per Acre -
Commercial $ 218 $ 480 $ (262) (55)% $ 369 $ 273 $ 96 35%
MPC EBT $ 56,890 $139,323 $(82,433) (59)% $349,134 $341,419 $ 7,715 2%
Strategic
Developments
Condominium rights
and unit sales $778,590 $ 792 $777,798 NM $778,616 $ 47,707 $730,909 NM
------------------ ------- ------- ------- ---------- ------- ------- ------- ----------
(a) Properties that were transferred to our Strategic
Developments segment for redevelopment and properties
that were sold are shown separately for all periods
presented.
NM - Not Meaningful
Financial Data
(1) See the accompanying appendix for a reconciliation
of GAAP to non-GAAP financial measures and a statement
indicating why management believes the non-GAAP financial
measure provides useful information for investors.
About Howard Hughes Holdings Inc.(R)
Howard Hughes Holdings Inc. owns, manages, and develops commercial, residential, and mixed-use real estate throughout the U.S. Its award-winning assets include the country's preeminent portfolio of master planned communities, as well as operating properties and development opportunities including: Downtown Columbia(R) in Maryland; The Woodlands(R) , Bridgeland(R) and The Woodlands Hills(R) in the Greater Houston, Texas area; Summerlin(R) in Las Vegas; Ward Village(R) in Honolulu, Hawai i; and Teravalis(TM) in the Greater Phoenix, Arizona area. The Howard Hughes portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative placemaking, the company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. Howard Hughes Holdings Inc. is traded on the New York Stock Exchange as HHH. For additional information visit www.howardhughes.com.
Safe Harbor Statement
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts, including, among others, statements regarding the Company's future financial position, results or performance, are forward-looking statements. We claim the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements (however we acknowledge that in the event that a transaction contemplated by the unsolicited proposals by Pershing Square Capital Management LP (Pershing Square) to acquire additional shares of our common stock (collectively, the Pershing Square Proposals) take the form of a tender offer, Safe Harbor protections would not apply to statements made in connection to the Pershing Square Proposals). Forward-looking statements include statements regarding the intent, belief, or current expectations of the Company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "may," "plan," "project," "realize," "should," "transform," "will," "would," and other statements of similar expression. Forward-looking statements are not a guaranty of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the Company's abilities to control or predict. Some of the risks, uncertainties and other important factors that may affect future results or cause actual results to differ materially from those expressed or implied by forward-looking statements include: (i) macroeconomic conditions such as volatility in capital markets, and a prolonged recession in the national economy, including any adverse business or economic conditions in the homebuilding, condominium-development, retail, and office sectors; (ii) our inability to obtain operating and development capital for our properties, including our inability to obtain or refinance debt capital from lenders and the capital markets; (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; (iv) the availability of debt and equity capital; (v) interest rate volatility and inflation; (vi) ability to compete effectively, including the potential impact of heightened competition for tenants and potential decreases in occupancy at our properties; (vii) our ability to realize the anticipated benefits of the spinoff of Seaport Entertainment Group Inc. that we completed in 2024; (viii) the effects of the completion of the spinoff on our ongoing business; (ix) the effects of the Pershing Square Proposal, and our response thereto, upon our business and personnel; (x) our inability to obtain operating and development capital for our properties, including our inability to obtain or refinance debt capital from lenders and the capital markets; (xi) our ability to successfully identify, acquire, develop and/or manage properties on favorable terms and in accordance with applicable zoning and permitting laws; (xii) changes in governmental laws and regulations; (xiii) general inflation, including core and wage inflation; commodity and energy price and currency volatility; as well as monetary, fiscal, and policy interventions in anticipation of our reaction to such events, including increases in interest rates; (xiv) mismatch of supply and demand, including interruptions of supply lines; (xv) lack of control over certain of the Company's properties due to the joint ownership of such property; (xvi) impairment charges; (xvii) the effects of catastrophic events or geopolitical conditions, such as international armed conflict, or the occurrence of epidemics or pandemics; (xiii) the effects of extreme weather conditions or climate change, including natural disasters, that may cause property damage or interrupt business; (xviii) the impact of water and electricity shortages; (xix) contamination of our property by hazardous or toxic substances; (xx) terrorist activity, acts of violence, or breaches of our or our vendors' data security; (xvii) losses that are not insured or exceed the applicable insurance limits (xxi) our ability to lease new or redeveloped space; (xxii) our ability to obtain the necessary governmental permits for the development of our properties and necessary regulatory approvals pursuant to an extensive entitlement process involving multiple and overlapping regulatory jurisdictions, which often require discretionary action by local
governments; (xxiii) increased construction costs exceeding our original estimates, delays or overruns, claims for construction defects, or other factors affecting our ability to develop, redevelop or construct our properties; (xiv) regulation of the portion of our business that is dedicated to the formation and sale of condominiums, including regulatory filings to state agencies, additional entitlement processes, and requirements to transfer control to a condominium association's board of directors in certain situations, as well as potential defaults by purchasers on their obligations to purchase condominiums; (xv) fluctuations in regional and local economies, the impact of changes in interest rates on residential housing and condominium markets, local real estate conditions, tenant rental rates, and competition from competing retail properties and the internet; (xvi) the inherent risks related to disruption of information technology networks and related systems, including cyber security attacks; and (xvii) the ability to attract and retain key personnel. The Company refers you to the section entitled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's filings with the Securities and Exchange Commission. Copies of each filing may be obtained from the Company or the Securities and Exchange Commission. The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the Company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.
Financial Presentation
As discussed throughout this release, we use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. A non-GAAP financial measure used throughout this release is net operating income (NOI). We provide a more detailed discussion about this non-GAAP measure in our reconciliation of non-GAAP measures provided in the appendix in this earnings release.
Contacts
Howard Hughes Holdings Inc.
Media Relations:
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com
Investor Relations:
Eric Holcomb, 281-475-2144
Senior Vice President, Investor Relations
eric.holcomb@howardhughes.com
HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
-------------------- -------------------------
thousands except
per share amounts 2024 2023 2024 2023
------- --------
REVENUES
Condominium
rights and
unit sales $778,590 $ 792 $ 778,616 $ 47,707
Master Planned
Communities
land sales 67,751 193,140 453,195 370,185
Rental revenue 106,639 93,453 422,100 383,617
Other land,
rental, and
property
revenues 13,650 10,353 44,755 46,255
Builder price
participation 16,960 15,226 52,023 60,989
------------------ ------- ------- --------- --------
Total revenues 983,590 312,964 1,750,689 908,753
------------------ ------- ------- --------- --------
EXPENSES
Condominium
rights and
unit cost of
sales 566,880 (973) 582,574 55,417
Master Planned
Communities
cost of sales 25,937 73,916 169,191 140,050
Operating costs 59,166 57,527 208,578 205,453
Rental property
real estate
taxes 14,596 10,891 58,395 55,649
Provision for
(recovery of)
doubtful
accounts 177 (1,728) 504 (2,762)
General and
administrative 22,822 21,300 91,752 86,671
Depreciation
and
amortization 44,966 46,517 179,799 168,734
Other 3,734 4,468 15,002 13,302
------------------ ------- ------- --------- --------
Total expenses 738,278 211,918 1,305,795 722,514
------------------ ------- ------- --------- --------
OTHER
Gain (loss) on
sale or
disposal of
real estate
and other
assets, net 14,948 3,162 22,907 24,162
Other income
(loss), net 250 909 92,120 5,823
------------------ ------- ------- --------- --------
Total other 15,198 4,071 115,027 29,985
------------------ ------- ------- --------- --------
Operating income
(loss) 260,510 105,117 559,921 216,224
Interest income 6,079 8,734 25,349 25,500
Interest expense (42,329) (44,792) (164,926) (157,575)
Gain (loss) on
extinguishment of
debt (267) (97) (465) (97)
Gain (loss) on
sale of MUD
receivables 2,874 -- (48,651) --
Equity in earnings
(losses) from
unconsolidated
ventures (1,599) (685) (5,829) 25,776
------------------ ------- ------- --------- --------
Income (loss) from
continuing
operations before
income taxes 225,268 68,277 365,399 109,828
Income tax expense
(benefit) 62,948 15,443 80,184 26,418
------------------ ------- ------- --------- --------
Net income (loss)
from continuing
operations 162,320 52,834 285,215 83,410
Net income (loss)
from discontinued
operations, net
of taxes (6,416) (18,461) (88,223) (634,940)
------------------ ------- ------- --------- --------
Net income (loss) 155,904 34,373 196,992 (551,530)
Net (income) loss
attributable to
noncontrolling
interests 414 (77) 711 (243)
------------------ ------- ------- --------- --------
Net income (loss)
attributable to
common
stockholders $156,318 $ 34,296 $ 197,703 $(551,773)
------------------ ------- ------- --------- --------
Basic income
(loss) per share
-- continuing
operations $ 3.27 $ 1.06 $ 5.75 $ 1.68
Diluted income
(loss) per share
-- continuing
operations $ 3.25 $ 1.06 $ 5.73 $ 1.68
------------------ ------- ------- --------- --------
HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED
thousands except par values
and share amounts December 31, 2024 December 31, 2023
----------------------------- -------------------- ---------------------
ASSETS
Master Planned Communities
assets $ 2,511,662 $ 2,445,673
Buildings and equipment 3,841,872 3,649,376
Less: accumulated
depreciation (949,533) (829,018)
Land 302,446 294,189
Developments 1,341,029 1,169,571
----------------------------- --------------- --------------
Net investment in real estate 7,047,476 6,729,791
Investments in unconsolidated
ventures 169,566 182,799
Cash and cash equivalents 596,083 629,714
Restricted cash 402,420 379,498
Accounts receivable, net 105,185 101,373
Municipal Utility District
$(MUD)$ receivables, net 463,799 550,884
Deferred expenses, net 139,350 138,182
Operating lease right-of-use
assets 5,806 5,463
Other assets, net 281,551 244,027
Assets of discontinued
operations -- 615,272
----------------------------- --------------- --------------
Total assets $ 9,211,236 $ 9,577,003
----------------------------- --------------- --------------
LIABILITIES
Mortgages, notes, and loans
payable, net $ 5,127,469 $ 5,146,992
Operating lease obligations 5,456 5,362
Deferred tax liabilities, net 142,100 84,293
Accounts payable and other
liabilities 1,094,437 1,054,267
Liabilities of discontinued
operations -- 227,165
(MORE TO FOLLOW) Dow Jones Newswires
February 26, 2025 16:01 ET (21:01 GMT)