The first speaker at the 2013 Harbor Investment Conference: David Weinrub, CEO, Howard Hughes, talks about Howard Hughes Corp (NYSE:HHC).
Howard Hughes Corp (NYSE:HHC) CEO, CFO invested $19 million in Howard Hughes Corp (NYSE:HHC) warrants and wanted to buy more. Management will become largest shareholder when the options are exercised.
The valuation based on three strategic intiatives, Hawaii, MPC, and South Street Sea port.
Victoria Ward has some of the most valuable properties in Honalulu. Pre sales on first two towers will begin soon.
Ala Moana is another xample of a great property. The unit was sold out in 29 hours, people camped out to bid on the property.
Hawaii has a lack of supply as 20,000 units are needed by 2020 according to economists. Economists expect home sales to increase by 40% in the area.
The core master plan community is Woodland, which is 20,000 the size of Manhattan. He calls it the best acquisition of his career. For an example, a building Waterway is already 90% pre-leased. This unit alone created $40M of value. Another unit is Hughes landing with a 66 acre property consisting of offices, retail and more. Bridgeland is the 15th best selling master planned community in 2012.
Las Vegas home prices have increased by 24% in 2012. Summerlin is launching downtown, building a city just like the Woodlands. Will be home to high end retailers. The development should add another $100 million to the community separate from the income stream from properties.
South street seaport is 26th most visited tourist site in the world. The plan is to balance pier but cater to growing population. With 370,000 square feet of leasable area and a price of at least $100 per acre the value creation will be significant. The plan is to build venues for concerts, shows and more.
The developer of the Seaport came to discuss more about the potential of the area. The idea is to make it open to the harbor, with a nice view of the sea.
Conclusion:
Howard Hughes has world class assets.
Howard Hughes has management with money in the game.
Howard Hughe is transforming from asset to cash flow based company.
