Strong MPC and Operating Assets results
strengthen full-year outlook and guidance expectations
THE
WOODLANDS, Texas, Nov. 6, 2023
/PRNewswire/ -- Howard Hughes Holdings Inc.® (NYSE: HHH)
(the "Company," "Howard Hughes," "HHH," or "we") today announced
operating results for the third quarter ended September 30,
2023. 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.
Third Quarter 2023 Highlights:
- Quarterly net loss of $544.2
million, or $(10.97) per
diluted share, including a $555.0
million or $(11.19) per share
after-tax impairment charge at the Seaport
- MPC EBT of $85 million driven by
a 16% increase in price per acre and complemented by a 113%
year-over-year increase in new home sales—signaling continued
strong demand for new homes and robust future land sales
- Full-year 2023 MPC EBT guidance increased to $325 million at the mid-point, up $55 million from prior guidance and $125 million from initial guidance
- Operating Assets NOI of $63
million driven by double-digit year-over-year growth in
multi-family, contributing to increased full-year 2023 NOI guidance
to $243 million at the mid-point, up
$7 million from initial guidance
- In Ward Village®,
'A'ali'i® and Ulana are now sold out, with the final
unit at Kō'ula® contracted on October 3rd; remaining towers under
construction or in pre-sales are now 96% sold
Howard Hughes Holdings Inc. Reports Third
Quarter 2023 Results
"The third quarter reflected exceptional results throughout our
core businesses, further demonstrating the robust demand we are
experiencing across our world-class portfolio of mixed-use assets,"
commented David R. O'Reilly, Chief
Executive Officer of Howard Hughes. "During the quarter, we saw
continued growth in new home sales and healthy land sales in our
MPCs, solid year-over-year NOI improvement in Operating Assets, and
impressive condo sales in Ward Village—including the complete
sell-out of 'A'ali'i and Ulana.
"During this time when credit markets are incredibly tight, we
executed several important financing deals—including two new
construction loans, the refinancing of 250 Water Street, and the
extensions of two office loans and one retail center loan nearing
maturity. These financings are a testament to the exceptional
quality of the Howard Hughes portfolio, and they further strengthen
our balance sheet—reducing our maturities through 2024 to only
$17 million. Our new construction loans enable the start of
projects in our pipeline, including 1 Riva Row—a new multi-family
development in The
Woodlands® that sets a new standard for luxury in
the Howard Hughes portfolio.
"Subsequent to quarter end, we announced our intent to establish
Seaport Entertainment—a new division comprising our
entertainment-related assets in New
York and Las Vegas—which we expect to spinoff as an
independent, publicly traded company in 2024. Anton Nikodemus, a veteran of the entertainment
and hospitality industries, will serve as Chief Executive Officer
and focus on delivering a world-class guest experience, improving
operating performance, and exploring new strategic opportunities.
The anticipated separation of Seaport Entertainment from Howard
Hughes represents a tremendous opportunity to unlock the
considerable value inherent in these unique assets and pursue new
accelerated growth.
"With the year nearly complete, we are extremely pleased with
our performance thus far, and we maintain a robust near-term
outlook. As a result, we have further increased our full-year
guidance—most notably for MPC EBT and Operating Assets NOI. Beyond
2023, we are incredibly excited about the future of Howard Hughes.
The anticipated spin off of Seaport Entertainment will allow HHH to
operate as a pure play real estate company, focused entirely on
long-term growth opportunities and value creation within our
acclaimed portfolio of master planned communities—where families
want to live and companies choose to thrive—for many generations to
come."
Click Here: Third Quarter 2023 Howard
Hughes Quarterly Spotlight Video
Click Here: Third
Quarter 2023 Earnings Call Webcast
Financial Highlights
Total Company
- HHH reported a net loss of $544.2
million, or $(10.97) per
diluted share in the third quarter, including an after-tax
impairment of $555.0 million or
$(11.19) per share related to the
Seaport. This compares to net income of $108.1 million or $2.19 per diluted share in the prior-year period.
Excluding the after-tax impairment, the year-over-year reduction
was primarily due to the timing of condo sales as the prior-year
included the delivery of Kō'ula in Ward
Village.
- In August, the Company reorganized into a holding company
structure to provide additional financial flexibility to fund
future opportunities and segregate assets and related liabilities
in separate subsidiaries. The new parent company—Howard Hughes
Holdings Inc.—trades under the ticker symbol "HHH" on the New York
Stock Exchange. HHH net income is substantially the same as its
wholly owned subsidiary, The Howard Hughes Corporation, aside from
immaterial costs incurred directly by HHH in the current
period.
- Subsequent to quarter end, Howard Hughes announced its intent
to create Seaport Entertainment—a new division expected to include
the Company's entertainment-related assets in New York and Las Vegas—including the Seaport
in Lower Manhattan and the Las Vegas Aviators® Triple-A
Minor League Baseball team, as well as the Company's ownership
stake in Jean-Georges Restaurants and its 80% interest in the air
rights above the Fashion Show Mall, which are intended to be used
to create a new casino on the Las Vegas Strip. HHH
intends to spinoff Seaport Entertainment into its own publicly
traded company in 2024, which will be led by Anton Nikodemus, a known leader in the
entertainment and resort industry.
MPC
- MPC EBT totaled $84.8 million in
the quarter, or a 12% increase compared to $75.4 million in the prior-year period.
- New home sales totaled 605 homes—surging 113%
year-over-year—signifying strong future residential land
sales.
- MPC land sales totaled $75.4
million, or a 43% year-over-year increase, primarily related
to the increased super pad sales in Summerlin® and
residential lot sales in Bridgeland®.
- Builder price participation revenue remained strong at
$15.8 million, representing a
$3.0 million year-over-year
moderation from the all-time highs of 2022.
- The average price per acre of residential land sold was
approximately $913,000 during the
quarter—representing a 16% year-over-year increase and an all-time
record high for HHH.
- MPC equity earnings were $14.3
million—representing a $0.6 million
decrease year-over-year—primarily related to the sale of clubhouse
condos at The Summit. Prior year earnings included a non-recurring
$13.5 million gain related to HHH's
contribution of an additional 54 acres of land to the joint
venture.
Operating Assets
- Total Operating Assets NOI—including the contribution from
unconsolidated ventures—totaled $62.8
million in the quarter, representing a 3% increase compared
to $60.8 million in the prior-year
period.
- Office NOI of $29.3 million
increased $0.8 million or 3%
year-over-year largely due to strong lease-up activity and
abatement expirations in The
Woodlands. These increases were partially offset by tenant
vacancies at various properties in Downtown Columbia® and initial
operating losses at 1700 Pavilion in Summerlin. As of September 30th, the stabilized office
portfolio was 87% leased, and 87,000 square feet of new or expanded
leases were executed during the quarter.
- Multi-family NOI of $13.8 million
increased $2.1 million or 18%
compared to the prior year period primarily due to strong lease-up
at HHH's newest properties—Marlow in Downtown Columbia and Starling at
Bridgeland—and 4.5% average in-place rent growth, partially offset
by initial operating losses at Tanager Echo in Summerlin.
- Retail NOI of $12.8 million
increased $0.5 million or 4%
year-over-year with modest improvements in all regions. At quarter
end, the retail portfolio was 95% leased.
- In July, HHH divested its two self-storage facilities in
The Woodlands for a combined sales
price of $30.5 million, generating a
gain on sale of $16.1 million
Strategic Developments
- Closed on 26 condo units in the third quarter—including 16 at
'A'ali'i and 10 at Kō'ula—generating $26.0
million in revenue. At quarter end, 'A'ali'i and Kō'ula were
100% and 99.8% sold, respectively, with the final unit at Kō'ula
contracted three days subsequent to quarter end.
- Contracted to sell 13 units at the three towers in
pre-sales—Ulana, The Park Ward Village, and Kalae. At quarter end,
Ulana was sold out, and the Park Ward Village and Kalae were 94%
and 85% pre-sold, respectively.
- Commenced construction on 1 Riva Row in The Woodlands, a 268-unit luxury high rise
multi-family development which is expected to contribute
$9.9 million of NOI upon
stabilization at a 6% yield on cost. The asset is expected to be
completed in 2025.
- Commenced construction on a new 67,000 square-foot retail
center which will be anchored by a new Whole Foods Market in
Downtown Summerlin. This new retail center is expected to be
completed in 2024 and is expected to generate $1.8 million of NOI upon stabilization.
Seaport
- During the third quarter, HHH recorded a $555.0 million after-tax impairment charge
related to the Seaport due to reductions in estimated future cash
flows resulting from significant uncertainty of future performance
as stabilization and profitability are taking longer than expected,
pressure on the current cost structure, lower demand for office
space, as well as an increase in the capitalization rate and a
decrease in restaurant multiples used to evaluate future cash
flows.
- Seaport revenue of $29.5 million
declined $3.0 million or 9% compared
to the third quarter of 2022 primarily due to the absence of
certain restaurant concepts in the current year, fewer private
events, and poor weather conditions.
- Seaport generated negative NOI of $0.9
million, representing a $2.5
million year-over-year reduction. Including $8.6 million of losses from unconsolidated
ventures—primarily related to the Tin Building by
Jean-Georges—Total Seaport NOI was a loss of $9.5 million.
- At the Tin Building by Jean-Georges, equity losses were
$8.1 million, or a $3.3 million year-over-year improvement primarily
due to significantly increased sales revenues.
Financing Activity
- In August, HHH closed on a $93.3
million construction financing for the 1 Riva Row
multi-family project, bearing interest at a fixed rate of 7.39%
with an initial maturity in 2030.
- In August, the Company closed on a $50.0
million loan to fund new infrastructure projects in
Ward Village including park
development and street, sewer, and electrical improvements. The
loan bears interest at SOFR plus 3.75% and has an initial maturity
in 2025.
- In September, the Company closed on a $115.0 million refinancing for 250 Water St. at
the Seaport. The loan bears interest at SOFR plus 3.875% with a
maturity in 2026.
- In October, subsequent to quarter end, the Company closed on a
three-year extension of the 4 Waterway and 9303 New Trails office
buildings loan in The Woodlands.
The refinancing required a principal pay down of $8 million and has a new principal balance of
$29.0 million bearing interest at a
fixed rate of 8.08%. The Company also closed on a two-year
extension of the Creekside Park West retail center construction
loan in The Woodlands. The
extended loan has a total commitment of $17
million, bears interest at SOFR plus 3.00%, and has an
initial maturity in 2026.
Full-Year 2023 Guidance
- MPC EBT, which was revised in the prior quarter to be flat to
down 10% year-over-year, has continued to benefit from increased
sales of new homes in Bridgeland, Summerlin, and The Woodlands
Hills® year-to-date. With low inventories of new homes
and vacant lots, homebuilder interest in new acreage continues to
strengthen, and the Company expects material land sales during the
fourth quarter. As a result, 2023 MPC EBT is now expected to be up
10% to 20% year-over-year, with a mid-point of approximately
$325 million. This represents a
$125 million improvement at the
mid-point compared to the initial full-year guidance issued in
early 2023.
- Operating Assets NOI, which was previously projected to be in a
range of up 1% to 4% year-over-year, has benefited from strong
multi-family rent growth and lease-up at new developments in
Bridgeland, Downtown Columbia, and
Summerlin which encompass nearly 1,400 units. The office portfolio
has also delivered solid financial performance year-to-date,
benefiting from expiring abatements; however, strong leasing
momentum in recent quarters is not expected to have a material
impact on 2023 results due to free-rent periods on many of the new
leases. Overall, excluding the $3.4
million contribution from divested retail assets in the
prior year, Operating Assets NOI is now expected to be in a range
of up 2% to 4% year-over-year, with a mid-point of approximately
$243 million. This represents a
$7 million improvement at the
mid-point compared to the initial full-year guidance issued in
early 2023.
- Condo sales revenues, which were previously projected to range
between $40 million and $45 million with gross margins between 10% to
13%, are now expected to be $47
million to $48 million with
gross margins of 13% to 14%. 2023 condo sales revenues and gross
margins are entirely driven by the closing of remaining units at
'A'ali'i and Kō'ula, which were 100% and 99.8% sold, respectively,
as of September 30, 2023. The final
unit at Kō'ula closed in the fourth quarter. Despite lower
margins on these remaining units in the current year, overall gross
margins for 'A'ali'i and Kō'ula remained in a range of 25% and 30%.
The next major condo project scheduled to be completed is
Victoria Place, which is expected to
be delivered in 2024 and is 100% pre-sold.
- Cash G&A guidance is unchanged and is projected to range
between $80 million and $85 million, which excludes anticipated non-cash
stock compensation of approximately $5
million.
Conference Call & Webcast Information
Howard Hughes Holdings Inc. will host its third quarter 2023
earnings conference call on Tuesday, November 7, 2023, 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. To access the call via telephone, please dial
877-270-2148 within the U.S., 866-605-3850 within
Canada, or +1 412-902-6510
when dialing internationally. All participants should dial in at
least five minutes prior to the scheduled start time using
10173050 as the passcode.
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
September 30,
|
|
Nine Months Ended
September 30,
|
$ in
thousands
|
2023
|
|
2022
|
|
$
Change
|
%
Change
|
|
2023
|
|
2022
|
|
$
Change
|
%
Change
|
Operating Assets
NOI (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office
|
$ 29,326
|
|
$ 28,540
|
|
$
786
|
3 %
|
|
$
90,720
|
|
$
83,338
|
|
$ 7,382
|
9 %
|
Retail
|
12,783
|
|
12,293
|
|
490
|
4 %
|
|
39,904
|
|
38,447
|
|
1,457
|
4 %
|
Multi-family
|
13,817
|
|
11,725
|
|
2,092
|
18 %
|
|
39,512
|
|
34,710
|
|
4,802
|
14 %
|
Other
|
4,615
|
|
5,316
|
|
(701)
|
(13) %
|
|
10,308
|
|
12,762
|
|
(2,454)
|
(19) %
|
Dispositions
|
169
|
|
783
|
|
(614)
|
(78) %
|
|
699
|
|
3,875
|
|
(3,176)
|
(82) %
|
Operating Assets
NOI
|
60,710
|
|
58,657
|
|
2,053
|
4 %
|
|
181,143
|
|
173,132
|
|
8,011
|
5 %
|
Company's share of NOI
from unconsolidated ventures
|
2,121
|
|
2,139
|
|
(18)
|
(1) %
|
|
8,941
|
|
11,279
|
|
(2,338)
|
(21) %
|
Total Operating
Assets NOI
|
$ 62,831
|
|
$ 60,796
|
|
$ 2,035
|
3 %
|
|
$
190,084
|
|
$
184,411
|
|
$ 5,673
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected stabilized
NOI Operating Assets ($ in millions)
|
$
373.8
|
|
$
360.4
|
|
$
13.4
|
4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acres Sold -
Residential
|
84
|
|
60
|
|
24
|
41 %
|
|
169
|
|
216
|
|
(47)
|
(22) %
|
Acres Sold -
Commercial
|
13
|
|
17
|
|
(4)
|
(25) %
|
|
123
|
|
51
|
|
72
|
143 %
|
Price Per Acre -
Residential
|
$
913
|
|
$
790
|
|
$
123
|
16 %
|
|
$
818
|
|
$
724
|
|
$
94
|
13 %
|
Price Per Acre -
Commercial
|
$
262
|
|
$
436
|
|
$
(174)
|
(40) %
|
|
$
258
|
|
$
730
|
|
$
(472)
|
(65) %
|
MPC
EBT
|
$ 84,798
|
|
$ 75,383
|
|
$ 9,415
|
12 %
|
|
$
202,096
|
|
$
206,327
|
|
$ (4,231)
|
(2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seaport NOI
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Landlord
Operations
|
$
(6,242)
|
|
$ (4,335)
|
|
$ (1,907)
|
(44) %
|
|
$
(15,292)
|
|
$
(10,260)
|
|
$ (5,032)
|
(49) %
|
Landlord Operations -
Multi-family
|
15
|
|
22
|
|
(7)
|
(32) %
|
|
76
|
|
96
|
|
(20)
|
(21) %
|
Managed
Businesses
|
644
|
|
1,010
|
|
(366)
|
(36) %
|
|
(1,942)
|
|
149
|
|
(2,091)
|
NM
|
Tin
Building
|
2,286
|
|
1,612
|
|
674
|
42 %
|
|
7,061
|
|
1,612
|
|
5,449
|
NM
|
Events and
Sponsorships
|
2,395
|
|
3,259
|
|
(864)
|
(27) %
|
|
1,164
|
|
3,545
|
|
(2,381)
|
(67) %
|
Seaport
NOI
|
(902)
|
|
1,568
|
|
(2,470)
|
(158) %
|
|
(8,933)
|
|
(4,858)
|
|
(4,075)
|
(84) %
|
Company's share of NOI
from unconsolidated ventures
|
(8,603)
|
|
(11,034)
|
|
2,431
|
22 %
|
|
(27,456)
|
|
(19,851)
|
|
(7,605)
|
(38) %
|
Total Seaport
NOI
|
$
(9,505)
|
|
$ (9,466)
|
|
$
(39)
|
— %
|
|
$
(36,389)
|
|
$
(24,709)
|
|
$
(11,680)
|
(47) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic
Developments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condominium rights and
unit sales
|
$ 25,962
|
|
$
418,645
|
|
$ (392,683)
|
(94) %
|
|
$
46,915
|
|
$
459,681
|
|
$ (412,766)
|
(90) %
|
|
|
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.®
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: the Seaport in
New York City; Downtown Columbia® in Maryland; The
Woodlands®, Bridgeland® and The
Woodlands Hills® in the Greater Houston, Texas area;
Summerlin® in Las
Vegas; Ward
Village® in Honolulu, Hawaiʻi; and Teravalis™ 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. Those 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) general adverse economic and local real
estate conditions; (ii) potential changes in the financial markets
and interest rates; (iii) the inability of major tenants to
continue paying their rent obligations due to bankruptcy,
insolvency or a general downturn in their business; (iv) financing
risks, such as the inability to obtain equity, debt or other
sources of financing or refinancing on favorable terms, if at all;
(v) ability to compete effectively, including the potential impact
of heightened competition for tenants and potential decreases in
occupancy at our properties; (vi) ability to successfully dispose
of non-core assets on favorable terms, if at all; (vii) ability to
successfully identify, acquire, develop and/or manage properties on
favorable terms and in accordance with applicable zoning and
permitting laws; (xiii) changes in governmental laws and
regulations; (ix) increases in operating costs, including
construction cost increases as the result of trade disputes and
tariffs on goods imported in the United
States; (x) the impact of the COVID-19 pandemic on the
Company's business, tenants and the economy in general, and our
ability to accurately assess and predict such impacts; (xi) lack of
control over certain of the Company's properties due to the joint
ownership of such property; (xii) impairment charges; (xiii) the
effects of geopolitical instability and risks such as terrorist
attacks and trade wars; (xiv) the effects of natural disasters,
including floods, droughts, wind, tornadoes and hurricanes; (xv)
the inherent risks related to disruption of information technology
networks and related systems, including cyber security attacks; and
(xvi) the ability to attract and retain key employees. 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, 2022. 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.
Media Contact
Howard Hughes Holdings Inc.
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com
Investor Relations Contact
Howard Hughes Holdings
Inc.
Eric Holcomb, 281-475-2144
Senior Vice President, Investor Relations
eric.holcomb@howardhughes.com
HOWARD HUGHES
HOLDINGS INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
UNAUDITED
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
thousands except per share amounts
|
2023
|
|
2022
|
|
2023
|
|
2022
|
REVENUES
|
|
|
|
|
|
|
|
Condominium rights and
unit sales
|
$
25,962
|
|
$
418,645
|
|
$
46,915
|
|
$
459,681
|
Master Planned
Communities land sales
|
75,378
|
|
52,585
|
|
177,045
|
|
199,032
|
Rental
revenue
|
105,192
|
|
96,917
|
|
306,395
|
|
296,081
|
Other land, rental,
and property revenues
|
46,280
|
|
52,550
|
|
112,146
|
|
119,870
|
Builder price
participation
|
15,847
|
|
18,852
|
|
45,763
|
|
51,819
|
Total
revenues
|
268,659
|
|
639,549
|
|
688,264
|
|
1,126,483
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Condominium rights and
unit cost of sales
|
22,537
|
|
295,300
|
|
56,390
|
|
329,026
|
Master Planned
Communities cost of sales
|
28,264
|
|
19,355
|
|
66,134
|
|
75,304
|
Operating
costs
|
92,439
|
|
85,089
|
|
248,626
|
|
236,763
|
Rental property real
estate taxes
|
15,262
|
|
12,118
|
|
46,259
|
|
40,314
|
Provision for
(recovery of) doubtful accounts
|
1,446
|
|
106
|
|
(1,000)
|
|
2,238
|
General and
administrative
|
21,601
|
|
19,471
|
|
65,371
|
|
60,874
|
Depreciation and
amortization
|
55,974
|
|
50,015
|
|
161,204
|
|
147,584
|
Other
|
2,225
|
|
2,902
|
|
8,885
|
|
7,985
|
Total
expenses
|
239,748
|
|
484,356
|
|
651,869
|
|
900,088
|
|
|
|
|
|
|
|
|
OTHER
|
|
|
|
|
|
|
|
Provision for
impairment
|
(672,492)
|
|
—
|
|
(672,492)
|
|
—
|
Gain (loss) on sale or
disposal of real estate and other assets, net
|
16,286
|
|
—
|
|
21,000
|
|
4,009
|
Other income (loss),
net
|
173
|
|
2,004
|
|
3,547
|
|
2,497
|
Total
other
|
(656,033)
|
|
2,004
|
|
(647,945)
|
|
6,506
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(627,122)
|
|
157,197
|
|
(611,550)
|
|
232,901
|
|
|
|
|
|
|
|
|
Interest
income
|
7,729
|
|
995
|
|
16,813
|
|
1,273
|
Interest
expense
|
(38,552)
|
|
(24,373)
|
|
(110,636)
|
|
(79,963)
|
Gain (loss) on
extinguishment of debt
|
(48)
|
|
—
|
|
(48)
|
|
(645)
|
Equity in earnings
(losses) from unconsolidated ventures
|
(30,886)
|
|
7,708
|
|
(41,874)
|
|
19,528
|
Income (loss) before
income taxes
|
(688,879)
|
|
141,527
|
|
(747,295)
|
|
173,094
|
Income tax expense
(benefit)
|
(144,744)
|
|
33,858
|
|
(161,392)
|
|
41,822
|
Net income
(loss)
|
(544,135)
|
|
107,669
|
|
(585,903)
|
|
131,272
|
Net (income) loss
attributable to noncontrolling interests
|
(46)
|
|
427
|
|
(166)
|
|
510
|
Net income (loss)
attributable to common stockholders
|
$
(544,181)
|
|
$
108,096
|
|
$
(586,069)
|
|
$
131,782
|
|
|
|
|
|
|
|
|
Basic income (loss) per
share
|
$
(10.97)
|
|
$ 2.19
|
|
$
(11.83)
|
|
$ 2.59
|
Diluted income (loss)
per share
|
$
(10.97)
|
|
$ 2.19
|
|
$
(11.83)
|
|
$ 2.59
|
HOWARD HUGHES
HOLDINGS INC.
CONSOLIDATED BALANCE
SHEETS
UNAUDITED
|
|
thousands except par values and
share amounts
|
September 30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Master Planned
Communities assets
|
$
2,472,497
|
|
$ 2,411,526
|
Buildings and
equipment
|
4,093,344
|
|
4,246,389
|
Less: accumulated
depreciation
|
(987,801)
|
|
(867,700)
|
Land
|
303,685
|
|
312,230
|
Developments
|
1,159,215
|
|
1,125,027
|
Net investment in real
estate
|
7,040,940
|
|
7,227,472
|
Investments in
unconsolidated ventures
|
225,580
|
|
246,171
|
Cash and cash
equivalents
|
491,679
|
|
626,653
|
Restricted
cash
|
444,119
|
|
472,284
|
Accounts receivable,
net
|
108,875
|
|
103,437
|
Municipal Utility
District receivables, net
|
593,984
|
|
473,068
|
Deferred expenses,
net
|
141,410
|
|
128,865
|
Operating lease
right-of-use assets
|
45,596
|
|
46,926
|
Other assets,
net
|
278,935
|
|
278,587
|
Total
assets
|
$
9,371,118
|
|
$ 9,603,463
|
|
|
|
|
LIABILITIES
|
|
|
|
Mortgages, notes, and
loans payable, net
|
$
5,196,000
|
|
$ 4,747,183
|
Operating lease
obligations
|
51,761
|
|
51,321
|
Deferred tax
liabilities, net
|
87,245
|
|
254,336
|
Accounts payable and
other liabilities
|
1,006,283
|
|
944,511
|
Total
liabilities
|
6,341,289
|
|
5,997,351
|
|
|
|
|
EQUITY
|
|
|
|
Preferred stock: $0.01
par value; 50,000,000 shares authorized, none issued
|
—
|
|
—
|
Common stock: $0.01 par
value; 150,000,000 shares authorized, 56,560,880 issued,
and
50,114,936 outstanding
as of September 30, 2023, 56,226,273 shares issued, and
49,801,997 outstanding
as of December 31, 2022
|
566
|
|
564
|
Additional paid-in
capital
|
3,986,513
|
|
3,972,561
|
Retained earnings
(accumulated deficit)
|
(417,992)
|
|
168,077
|
Accumulated other
comprehensive income (loss)
|
7,571
|
|
10,335
|
Treasury stock, at
cost, 6,445,944 shares as of September 30, 2023, and
6,424,276
shares as of December
31, 2022
|
(612,763)
|
|
(611,038)
|
Total
stockholders' equity
|
2,963,895
|
|
3,540,499
|
Noncontrolling
interests
|
65,934
|
|
65,613
|
Total
equity
|
3,029,829
|
|
3,606,112
|
Total liabilities and
equity
|
$
9,371,118
|
|
$ 9,603,463
|
Segment Earnings Before Tax (EBT)
As a result of our four segments—Operating Assets, Master
Planned Communities (MPC), Seaport, and Strategic
Developments—being managed separately, we use different operating
measures to assess operating results and allocate resources among
these four segments. The one common operating measure used to
assess operating results for our business segments is EBT. EBT, as
it relates to each business segment, includes the revenues and
expenses of each segment, as shown below. EBT excludes corporate
expenses and other items that are not allocable to the segments. We
present EBT because we use this measure, among others, internally
to assess the core operating performance of our assets.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
thousands
|
2023
|
|
2022
|
|
$
Change
|
|
2023
|
|
2022
|
|
$
Change
|
Operating Assets
Segment EBT
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
116,874
|
|
$
109,493
|
|
$
7,381
|
|
$
339,226
|
|
$
327,742
|
|
$
11,484
|
Total operating
expenses
|
(55,786)
|
|
(48,994)
|
|
(6,792)
|
|
(157,837)
|
|
(146,958)
|
|
(10,879)
|
Segment operating
income (loss)
|
61,088
|
|
60,499
|
|
589
|
|
181,389
|
|
180,784
|
|
605
|
Depreciation and
amortization
|
(43,127)
|
|
(37,714)
|
|
(5,413)
|
|
(123,637)
|
|
(115,143)
|
|
(8,494)
|
Interest income
(expense), net
|
(31,884)
|
|
(23,340)
|
|
(8,544)
|
|
(91,080)
|
|
(64,776)
|
|
(26,304)
|
Other income (loss),
net
|
(244)
|
|
421
|
|
(665)
|
|
1,998
|
|
(57)
|
|
2,055
|
Equity in earnings
(losses) from unconsolidated ventures
|
1,364
|
|
4,132
|
|
(2,768)
|
|
5,311
|
|
21,898
|
|
(16,587)
|
Gain (loss) on sale or
disposal of real estate and other assets, net
|
16,050
|
|
—
|
|
16,050
|
|
20,764
|
|
4,018
|
|
16,746
|
Gain (loss) on
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
(645)
|
|
645
|
Operating Assets
segment EBT
|
$
3,247
|
|
$
3,998
|
|
$
(751)
|
|
$ (5,255)
|
|
$
26,079
|
|
$
(31,334)
|
|
|
|
|
|
|
|
|
|
|
|
|
Master Planned
Communities Segment EBT
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$ 95,799
|
|
$ 78,188
|
|
$ 17,611
|
|
$
236,123
|
|
$
266,990
|
|
$
(30,867)
|
Total operating
expenses
|
(41,239)
|
|
(31,055)
|
|
(10,184)
|
|
(103,668)
|
|
(113,087)
|
|
9,419
|
Segment operating
income (loss)
|
54,560
|
|
47,133
|
|
7,427
|
|
132,455
|
|
153,903
|
|
(21,448)
|
Depreciation and
amortization
|
(103)
|
|
(104)
|
|
1
|
|
(316)
|
|
(286)
|
|
(30)
|
Interest income
(expense), net
|
16,031
|
|
13,492
|
|
2,539
|
|
49,004
|
|
35,697
|
|
13,307
|
Other income (loss),
net
|
—
|
|
—
|
|
—
|
|
(103)
|
|
23
|
|
(126)
|
Equity in earnings
(losses) from unconsolidated ventures
|
14,310
|
|
14,862
|
|
(552)
|
|
21,056
|
|
16,990
|
|
4,066
|
MPC segment
EBT
|
$ 84,798
|
|
$ 75,383
|
|
$
9,415
|
|
$
202,096
|
|
$
206,327
|
|
$ (4,231)
|
|
|
|
|
|
|
|
|
|
|
|
|
Seaport Segment
EBT
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$ 29,490
|
|
$ 32,501
|
|
$ (3,011)
|
|
$ 64,191
|
|
$
70,053
|
|
$ (5,862)
|
Total operating
expenses
|
(33,303)
|
|
(31,404)
|
|
(1,899)
|
|
(78,884)
|
|
(79,329)
|
|
445
|
Segment operating
income (loss)
|
(3,813)
|
|
1,097
|
|
(4,910)
|
|
(14,693)
|
|
(9,276)
|
|
(5,417)
|
Depreciation and
amortization
|
(10,808)
|
|
(9,651)
|
|
(1,157)
|
|
(31,804)
|
|
(25,194)
|
|
(6,610)
|
Interest income
(expense), net
|
1,358
|
|
1,731
|
|
(373)
|
|
3,855
|
|
3,003
|
|
852
|
Other income (loss),
net
|
313
|
|
(18)
|
|
331
|
|
(1,287)
|
|
289
|
|
(1,576)
|
Equity in earnings
(losses) from unconsolidated ventures
|
(46,619)
|
|
(11,273)
|
|
(35,346)
|
|
(68,335)
|
|
(20,223)
|
|
(48,112)
|
Gain (loss) on
extinguishment of debt
|
(48)
|
|
—
|
|
(48)
|
|
(48)
|
|
—
|
|
(48)
|
Provision for
impairment
|
(672,492)
|
|
—
|
|
(672,492)
|
|
(672,492)
|
|
—
|
|
(672,492)
|
Seaport segment
EBT
|
$
(732,109)
|
|
$
(18,114)
|
|
$ (713,995)
|
|
$
(784,804)
|
|
$
(51,401)
|
|
$ (733,403)
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic
Developments Segment EBT
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$ 26,481
|
|
$
419,353
|
|
$ (392,872)
|
|
$ 48,679
|
|
$
461,655
|
|
$ (412,976)
|
Total operating
expenses
|
(29,620)
|
|
(300,515)
|
|
270,895
|
|
(76,020)
|
|
(344,271)
|
|
268,251
|
Segment operating
income (loss)
|
(3,139)
|
|
118,838
|
|
(121,977)
|
|
(27,341)
|
|
117,384
|
|
(144,725)
|
Depreciation and
amortization
|
(962)
|
|
(1,406)
|
|
444
|
|
(2,848)
|
|
(4,083)
|
|
1,235
|
Interest income
(expense), net
|
4,412
|
|
5,817
|
|
(1,405)
|
|
11,917
|
|
12,334
|
|
(417)
|
Other income (loss),
net
|
81
|
|
900
|
|
(819)
|
|
158
|
|
1,361
|
|
(1,203)
|
Equity in earnings
(losses) from unconsolidated ventures
|
59
|
|
(13)
|
|
72
|
|
94
|
|
863
|
|
(769)
|
Gain (loss) on sale or
disposal of real estate and other assets, net
|
236
|
|
—
|
|
236
|
|
236
|
|
(9)
|
|
245
|
Strategic Developments
segment EBT
|
$
687
|
|
$
124,136
|
|
$ (123,449)
|
|
$
(17,784)
|
|
$
127,850
|
|
$ (145,634)
|
Appendix – Reconciliation of Non-GAAP
Measures
Below are GAAP to non-GAAP reconciliations of certain financial
measures, as required under Regulation G of the Securities Exchange
Act of 1934. Non-GAAP information should be considered by the
reader in addition to, but not instead of, the financial statements
prepared in accordance with GAAP. The non-GAAP financial
information presented may be determined or calculated differently
by other companies and may not be comparable to similarly titled
measures.
Net Operating Income (NOI)
We define NOI as operating revenues (rental income, tenant
recoveries, and other revenue) less operating expenses (real estate
taxes, repairs and maintenance, marketing, and other property
expenses). NOI excludes straight-line rents and amortization of
tenant incentives, net; interest expense, net; ground rent
amortization; demolition costs; other income (loss); amortization;
depreciation; development-related marketing costs; gain on sale or
disposal of real estate and other assets, net; provision for
impairment; and equity in earnings from unconsolidated ventures.
This amount is presented as Operating Assets NOI and Seaport NOI
throughout this document. Total Operating Assets NOI and Total
Seaport NOI represent NOI as defined above with the addition of our
share of NOI from unconsolidated ventures.
We believe that NOI is a useful supplemental measure of the
performance of our Operating Assets and Seaport segments because it
provides a performance measure that reflects the revenues and
expenses directly associated with owning and operating real estate
properties. We use NOI to evaluate our operating performance on a
property-by-property basis because NOI allows us to evaluate the
impact that property-specific factors such as rental and occupancy
rates, tenant mix, and operating costs have on our operating
results, gross margins, and investment returns.
A reconciliation of segment EBT to NOI for Operating Assets and
Seaport is presented in the tables below:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
thousands
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
$
Change
|
Operating Assets
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
116,874
|
|
$
109,493
|
|
$
332,147
|
|
$
339,226
|
|
$
327,742
|
|
$
11,484
|
Total operating
expenses
|
(55,786)
|
|
(48,994)
|
|
(147,881)
|
|
(157,837)
|
|
(146,958)
|
|
(10,879)
|
Segment operating
income (loss)
|
61,088
|
|
60,499
|
|
184,266
|
|
181,389
|
|
180,784
|
|
605
|
Depreciation and
amortization
|
(43,127)
|
|
(37,714)
|
|
(116,196)
|
|
(123,637)
|
|
(115,143)
|
|
(8,494)
|
Interest income
(expense), net
|
(31,884)
|
|
(23,340)
|
|
(69,841)
|
|
(91,080)
|
|
(64,776)
|
|
(26,304)
|
Other income (loss),
net
|
(244)
|
|
421
|
|
(971)
|
|
1,998
|
|
(57)
|
|
2,055
|
Equity in earnings
(losses) from unconsolidated ventures
|
1,364
|
|
4,132
|
|
7,088
|
|
5,311
|
|
21,898
|
|
(16,587)
|
Gain (loss) on sale or
disposal of real estate and other assets, net
|
16,050
|
|
—
|
|
29,588
|
|
20,764
|
|
4,018
|
|
16,746
|
Gain (loss) on
extinguishment of debt
|
—
|
|
—
|
|
(1,948)
|
|
—
|
|
(645)
|
|
645
|
Operating Assets
segment EBT
|
3,247
|
|
3,998
|
|
(751)
|
|
(5,255)
|
|
26,079
|
|
(31,334)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
43,127
|
|
37,714
|
|
5,413
|
|
123,637
|
|
115,143
|
|
8,494
|
Interest (income)
expense, net
|
31,884
|
|
23,340
|
|
8,544
|
|
91,080
|
|
64,776
|
|
26,304
|
Equity in (earnings)
losses from unconsolidated ventures
|
(1,364)
|
|
(4,132)
|
|
2,768
|
|
(5,311)
|
|
(21,898)
|
|
16,587
|
(Gain) loss on sale or
disposal of real estate and other assets, net
|
(16,050)
|
|
—
|
|
(16,050)
|
|
(20,764)
|
|
(4,018)
|
|
(16,746)
|
(Gain) loss on
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
645
|
|
(645)
|
Impact of straight-line
rent
|
(470)
|
|
(1,744)
|
|
1,274
|
|
(2,664)
|
|
(7,283)
|
|
4,619
|
Other
|
336
|
|
(519)
|
|
855
|
|
420
|
|
(312)
|
|
732
|
Operating Assets
NOI
|
60,710
|
|
58,657
|
|
2,053
|
|
181,143
|
|
173,132
|
|
8,011
|
|
|
|
|
|
|
|
|
|
|
|
|
Company's share of NOI
from equity investments
|
2,121
|
|
2,139
|
|
(18)
|
|
5,908
|
|
6,641
|
|
(733)
|
Distributions from
Summerlin Hospital investment
|
—
|
|
—
|
|
—
|
|
3,033
|
|
4,638
|
|
(1,605)
|
Company's share of NOI
from unconsolidated ventures
|
2,121
|
|
2,139
|
|
(18)
|
|
8,941
|
|
11,279
|
|
(2,338)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Assets NOI
|
$
62,831
|
|
$ 60,796
|
|
$
2,035
|
|
$
190,084
|
|
$
184,411
|
|
$
5,673
|
|
|
|
|
|
|
|
|
|
|
|
|
Seaport
Segment
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
29,490
|
|
$ 32,501
|
|
$ (3,011)
|
|
$ 64,191
|
|
$
70,053
|
|
$ (5,862)
|
Total operating
expenses
|
(33,303)
|
|
(31,404)
|
|
(1,899)
|
|
(78,884)
|
|
(79,329)
|
|
445
|
Segment operating
income (loss)
|
(3,813)
|
|
1,097
|
|
(4,910)
|
|
(14,693)
|
|
(9,276)
|
|
(5,417)
|
Depreciation and
amortization
|
(10,808)
|
|
(9,651)
|
|
(1,157)
|
|
(31,804)
|
|
(25,194)
|
|
(6,610)
|
Interest income
(expense), net
|
1,358
|
|
1,731
|
|
(373)
|
|
3,855
|
|
3,003
|
|
852
|
Other income (loss),
net
|
313
|
|
(18)
|
|
331
|
|
(1,287)
|
|
289
|
|
(1,576)
|
Equity in earnings
(losses) from unconsolidated ventures
|
(46,619)
|
|
(11,273)
|
|
(35,346)
|
|
(68,335)
|
|
(20,223)
|
|
(48,112)
|
Gain (loss) on
extinguishment of debt
|
(48)
|
|
—
|
|
(48)
|
|
(48)
|
|
—
|
|
(48)
|
Provision for
impairment
|
(672,492)
|
|
—
|
|
(672,492)
|
|
(672,492)
|
|
—
|
|
(672,492)
|
Seaport segment
EBT
|
(732,109)
|
|
(18,114)
|
|
(713,995)
|
|
(784,804)
|
|
(51,401)
|
|
(733,403)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
10,808
|
|
9,651
|
|
1,157
|
|
31,804
|
|
25,194
|
|
6,610
|
Interest (income)
expense, net
|
(1,358)
|
|
(1,731)
|
|
373
|
|
(3,855)
|
|
(3,003)
|
|
(852)
|
Equity in (earnings)
losses from unconsolidated ventures
|
46,619
|
|
11,273
|
|
35,346
|
|
68,335
|
|
20,223
|
|
48,112
|
(Gain) loss on
extinguishment of debt
|
48
|
|
—
|
|
48
|
|
48
|
|
—
|
|
48
|
Impact of straight-line
rent
|
435
|
|
(185)
|
|
620
|
|
1,567
|
|
1,519
|
|
48
|
Other (income) loss,
net (a)
|
2,163
|
|
674
|
|
1,489
|
|
5,480
|
|
2,610
|
|
2,870
|
Provision for
impairment
|
672,492
|
|
—
|
|
672,492
|
|
672,492
|
|
—
|
|
672,492
|
Seaport
NOI
|
(902)
|
|
1,568
|
|
(2,470)
|
|
(8,933)
|
|
(4,858)
|
|
(4,075)
|
|
|
|
|
|
|
|
|
|
|
|
|
Company's share of NOI
from unconsolidated ventures (b)
|
(8,603)
|
|
(11,034)
|
|
2,431
|
|
(27,456)
|
|
(19,851)
|
|
(7,605)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Seaport
NOI
|
$
(9,505)
|
|
$ (9,466)
|
|
$
(39)
|
|
$
(36,389)
|
|
$
(24,709)
|
|
$
(11,680)
|
|
|
(a)
|
Includes miscellaneous
development-related items.
|
(b)
|
The Company's share of
NOI related to the Tin Building by Jean-Georges is calculated using
our current partnership funding provisions.
|
Same Store NOI - Operating Assets Segment
The Company defines Same Store Properties as consolidated and
unconsolidated properties that are acquired or placed in-service
prior to the beginning of the earliest period presented and owned
by the Company through the end of the latest period presented. Same
Store Properties exclude properties placed in-service, acquired,
repositioned or in development or redevelopment after the beginning
of the earliest period presented or disposed of prior to the end of
the latest period presented. Accordingly, it takes at least one
year and one quarter after a property is acquired or treated as
in-service for that property to be included in Same Store
Properties.
We calculate Same Store Net Operating Income (Same Store NOI) as
Operating Assets NOI applicable to Same Store Properties. Same
Store NOI also includes the Company's share of NOI from
unconsolidated ventures and the annual distribution from a cost
basis investment. Same Store NOI is a non-GAAP financial measure
and should not be viewed as an alternative to net income calculated
in accordance with GAAP as a measurement of our operating
performance. We believe that Same Store NOI is helpful to investors
as a supplemental comparative performance measure of the income
generated from the same group of properties from one period to the
next. Other companies may not define Same Store NOI in the same
manner as we do; therefore, our computation of Same Store NOI may
not be comparable to that of other companies. Additionally, we do
not control investments in unconsolidated properties and while we
consider disclosures of our share of NOI to be useful, they may not
accurately depict the legal and economic implications of our
investment arrangements.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
thousands
|
2023
|
|
2022
|
|
$
Change
|
|
2023
|
|
2022
|
|
$
Change
|
Same Store
Office
|
|
|
|
|
|
|
|
|
|
|
|
Houston, TX
|
$ 20,449
|
|
$ 19,050
|
|
$
1,399
|
|
$
63,427
|
|
$
54,527
|
|
$
8,900
|
Columbia,
MD
|
5,566
|
|
5,881
|
|
(315)
|
|
17,868
|
|
18,259
|
|
(391)
|
Las Vegas,
NV
|
3,434
|
|
3,499
|
|
(65)
|
|
10,110
|
|
10,560
|
|
(450)
|
Total Same Store
Office
|
29,449
|
|
28,430
|
|
1,019
|
|
91,405
|
|
83,346
|
|
8,059
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Retail
|
|
|
|
|
|
|
|
|
|
|
|
Houston, TX
|
2,954
|
|
2,843
|
|
111
|
|
8,976
|
|
7,368
|
|
1,608
|
Columbia,
MD
|
660
|
|
565
|
|
95
|
|
1,997
|
|
1,794
|
|
203
|
Las Vegas,
NV
|
5,856
|
|
5,687
|
|
169
|
|
18,113
|
|
17,328
|
|
785
|
Honolulu,
HI
|
3,490
|
|
3,378
|
|
112
|
|
11,261
|
|
11,859
|
|
(598)
|
Total Same Store
Retail
|
12,960
|
|
12,473
|
|
487
|
|
40,347
|
|
38,349
|
|
1,998
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Multi-family
|
|
|
|
|
|
|
|
|
|
|
|
Houston, TX
|
8,791
|
|
8,260
|
|
531
|
|
27,501
|
|
24,333
|
|
3,168
|
Columbia,
MD
|
1,783
|
|
1,667
|
|
116
|
|
5,027
|
|
4,934
|
|
93
|
Las Vegas,
NV
|
1,863
|
|
1,895
|
|
(32)
|
|
5,604
|
|
5,543
|
|
61
|
Company's share of NOI
from unconsolidated ventures
|
1,906
|
|
1,910
|
|
(4)
|
|
5,520
|
|
5,440
|
|
80
|
Total Same Store
Multi-family
|
14,343
|
|
13,732
|
|
611
|
|
43,652
|
|
40,250
|
|
3,402
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Other
|
|
|
|
|
|
|
|
|
|
|
|
Houston, TX
|
1,555
|
|
1,313
|
|
242
|
|
4,727
|
|
4,305
|
|
422
|
Columbia,
MD
|
3
|
|
(17)
|
|
20
|
|
21
|
|
(141)
|
|
162
|
Las Vegas,
NV
|
3,013
|
|
3,876
|
|
(863)
|
|
5,377
|
|
8,293
|
|
(2,916)
|
Honolulu,
HI
|
45
|
|
144
|
|
(99)
|
|
183
|
|
305
|
|
(122)
|
Company's share of NOI
from unconsolidated ventures
|
215
|
|
229
|
|
(14)
|
|
3,421
|
|
5,839
|
|
(2,418)
|
Total Same Store
Other
|
4,831
|
|
5,545
|
|
(714)
|
|
13,729
|
|
18,601
|
|
(4,872)
|
Total Same Store
NOI
|
61,583
|
|
60,180
|
|
1,403
|
|
189,133
|
|
180,546
|
|
8,587
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Same Store
NOI
|
1,248
|
|
616
|
|
632
|
|
951
|
|
3,865
|
|
(2,914)
|
Total Operating
Assets NOI
|
$ 62,831
|
|
$ 60,796
|
|
$
2,035
|
|
$
190,084
|
|
$
184,411
|
|
$
5,673
|
Cash G&A
The Company defines Cash G&A as General and administrative
expense less non-cash stock compensation expense. Cash G&A is a
non-GAAP financial measure that we believe is useful to our
investors and other users of our financial statements as an
indicator of overhead efficiency without regard to non-cash
expenses associated with stock compensation. However, it should not
be used as an alternative to general and administrative expenses in
accordance with GAAP.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
thousands
|
2023
|
|
2022
|
|
$
Change
|
|
2023
|
|
2022
|
|
$
Change
|
General and
Administrative
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative (G&A) (a)
|
$ 21,601
|
|
$ 19,471
|
|
$
2,130
|
|
$ 65,371
|
|
$ 60,874
|
|
$
4,497
|
Less: Non-cash stock
compensation
|
(1,699)
|
|
(1,298)
|
|
(401)
|
|
(6,748)
|
|
(3,989)
|
|
(2,759)
|
Cash
G&A
|
$ 19,902
|
|
$ 18,173
|
|
$
1,729
|
|
$ 58,623
|
|
$ 56,885
|
|
$
1,738
|
|
|
(a)
|
G&A expense
includes $1.6 million of severance and bonus costs and $2.1 million
of non-cash stock compensation related to our former General
Counsel in the first quarter of 2023 and $2.3 million of severance
and bonus costs related to our former Chief Financial Officer in
the first quarter of 2022.
|
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SOURCE Howard Hughes Holdings Inc.