Howard Hughes (HHC) Presentation at REIT Week This just concluded…..

Howard Hughes (HHC) Presentation at REIT Week REIT Week Presentation


Howard Hughes Notable points (was Q&A format):

  • Houston
  • is well prepared for current oil price drop
  • No spec construction out there……
  • No material fallout in land sales
  • Builders still buying lots
  • Pricing remains firm
  • Job losses have been primarily in oil fields
  • Houston port is now 2nd largest port in US
  • Still expect to see job gains in 2015
  • Summerlin
  • lot prices still increasing
  • retailers still ahead of plan in Downtown Summerlin
  • “we have best master planned communities in areas we operate”
  • Hawaii
  • buyers have moved into One AlMoana
  • 5 more towers now have approvals
  • looking at 30% margins excluding land
  • Capital
  • $2.5B under construction… needed for them $340M
  • $200M FCF from MPC’s alone in 2014
  • no need to raise any additional capital unless for acquisitions
  •  “looking at a dozen deals a week” …like to add on to existing projects (ie: Conroe)
  • Leasing at Seaport:
  • in discussions with several retailers
  • will not announce anything yet
  • historic district open 2016
  • Pier 17 open summer 2017
  • NOI projections in shareholder letter exclude Seaport
  • Stock Split?
  • have not evaluated it yet
  • Rising rates
  • financing locked in on CRE projects
  • mostly done with insurance co’s
  • rising rates will increase cash flows of businesses
  • Columbia
  • have made significant headway with plans
  • $9M NOI being generated from buildings obtained from GGP
  • office, multi family and retail going into The Crescent,  construction should start later 2015
  • Change to REIT?
  • right now, not the time to do that
  • while it would eliminate double taxation, very high depreciation in new assets + project level interest mitigates taxes on them
  • NOI’s shelter income for 12-18mos more
  • when tax shields wear off “everything worth looking at” ….would then consider REIT
Howard Hughes
Howard Hughes