HHH - Earnings call transcript Q4 2024 | Howard Hughes Corporation

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Operator

Good day, and thank you for standing by. Welcome to Howard Hughes' Fourth Quarter 2024 Earnings Conference Call.

[Operator Instructions]

Please note that today's conference is being recorded. to Investor conference Relations. like Holcomb, to now of SVP would turn over the Eric I Please ahead. go

Eric Holcomb

Good morning, David Counsel. and Chief Management Quarter Officer; XXXX and welcome Cross; Financial to Howard Call. Jay Joe President me Hughes Officer; With Operations; Dave today of Carlos and are President; O'Reilly, Striph, Executive Earnings Chief Olea, Holdings Asset Fourth General Valane,

earnings would website, both include I measures begin, and like release quarter howardhughes.com our most today discussed you we you release our will relation to that supplemental Before to reconciliations our to directly download where can fourth earnings measures. financial package. their press and GAAP direct comparable be in of The non-GAAP package supplemental financial

that in the of or made expectations not company's the statements present discuss securities forward-looking the statements the Certain are laws. that today within tense federal meaning are

such reasonable earnings assurance our cause Although between reflected forward-looking for expectations and the forward-looking are filings in see quarter Please in expectations give statement risk statements factors no the actual could and statements results. release SEC believes factors can the disclaimer upon material our that company that that be achieved. we fourth forward-looking press differences based will these in the assumptions,

update not law. to are We under required any forward-looking by unless statements duty

I will David now turn the call CEO, over to O'Reilly. our

David O'Reilly

will strategic remarks with going of cover from Planned provide Striph begin who Welcome performance cover followed Dave fourth will We earnings quarter by Communities. operating to segment our our Cross our our development recap on updates incredible everyone. today, our Master highlights for projects. the good Jay to you, morning, assets, I'm and Thank Eric, call. On of the call year. a our

provide the for XXXX will review Olea up sheet balance and guidance before Carlos Q&A. lines we open our the of Finally, a

per residential Highlights to or quarter, of delivered year our latest financial each contributing record met expectations. which In guidance $XXX performance acre. exceeded sold solid Village, include: core million sales that growth of record EBT record every and NOI developments, across delivered Hughes, MPC in the fourth Victoria from gross and revenue segment million, unit revenue strong full increase of land the and price record in each average year delivered Howard Place appetite. of we generating results record a Operating resulting In year-over-year we X% out assets strategic with in $XXX condo margin. Ward

under under Texas, addition, In year towers with construction presales finished contract. and units we our with strong Hawaii XX% the at X combined their in of

we condo of start of $XXX as alone. Woodlands remained credit included loans than loans several executed XXXX, construction million and for transactions The X during Ritz-Carlton nearing Kalae maturity. the of more Residences over construction financings, in in Although the $XXX markets as enabling important million, totaling quarter tight including million refinancing significant well $XXX These fourth the

MPC improved receivables nearly an MPC pay through timeline. greatly future and maturity. our of liquidity line significantly transaction a innovative sale also $XXX our We down collection their of debt while in its and Bridgeland, This enabled credit extending of of accelerating million expanding also current [indiscernible]

included of an [ of sale mountain MPCs Looking was as XX our the $XXX,XXX EBT This in residential primarily on XX in across our well deeper luxury [indiscernible] [indiscernible], into the Hill of results fourth strong by price another residential total Woodland and as the in custom a quarter, community sold we the million MPC at where driven the our gated first side locks sales the of $XX ] acres acre. Summerlin. newest per of Bridgeland Texas, acres in segment, average demand in

acres we lots, X Las ultra-luxury In Summerlin's acres $XXX,XXX acres far, acre. Rock disappoint. closed In at approximately Teravalis, acquiring XX average in XXX XXX year. the not additional price begin the expect impressive average quarter, sale total an to we Red homes the the Vegas of Floreo X brand a incredible later an of holdovers of an demonstrating per on during Floreo views sales homebuyers. With opening on fourth clearly $X Valley, million X acre, quarter, of sold we per model lots will does land sweeping approximately in appeal Offering the [indiscernible] soon or with this bringing thus construction to price or custom

and The results which $XXX million to achieved a by driven exceeding acre. in at strong record a across backdrop record full totaling sales year was commercial This ] a results XXXX by recent land quarter price the guidance million, MPC market our EBT X%. of million difficult record by most and [ contributed in strong of result, of sales outpacing MPC decline midpoint $XX the a our $XX per acres was despite land average XXX $XXX,XXX residential remarkable year-over-year

sales. home Turning to new

for residences total year to homes. XXX fourth quarter, the the bringing sold MPC Our in the X,XXX

further Planned As were a ranked the recent growth for we continued have strong year stage factors. RCLCO's MPCs significant by driven #X setting respectively, Communities home in new perspective, construction XXXX. #X From rates in although range the XXXX a market and climbed XXXX result, anticipate back and the in appeal top-selling the exemplifying report, housing in nation, used for power as into the months, key person X% Summerlin award-winning several mortgage in Master another

higher. under more locked XX% by limiting is interest First, driving than existing rates market and be homes of up to inventory resale the existing high continues mortgages of resale X%. This with prices a

homes as U.S. additional efficiency incentives, warranties affordable. home well superior comprehensive premium insurance to and of only offer As And modern retail better buy-downs, XXXX. lows new quality, new compared historical over new a lower with rate in cost simply attractive in X% allowances now Also, the of homes as on years, This including new is XX very average result, market. amenities. making new or in finally, median existing more home a a the and home aim the today's the costs homes build and average homes builder mortgage make with

new to homebuilder combined with expect developed consumer and in Summerlin strong homes lack continued demand finished Las When for With dynamics, demand the of inventory Houston, lots see vacant anticipate we of for new XXXX. these increased in we particularly undersupply year, a continued acreage Vegas in an and market Bridgeland. and residential throughout

community sales for mountain [indiscernible], see Additionally, custom demand with the luxury in side. strong on to in also new expect we lots Summerlin, our gated XXX-acre increased

few the impressive we year expect average in this our from strong a XXXX, I'm operating EBT call set our now the X will forward. an provide of first to to turn the records. will lot per strong Striph more going we new community likely going segment which our assets. most on sales in another Dave for review MPC Overall, acre, contribution quarter, full With a expect fourth details in million guidance of over year $X during a commanding price new moments. Carlos

David Striph

NOI, quarter, delivered X% which unconsolidated strong Thank million our contribution In of assets operating the including you, ventures, from year-over-year. David. fourth of $XX the reflected growth

in with summer. operating leases, as in feet portfolio in of we most quarter and line midpoint X% in The was and leasing Downtown and relative For generated The a in in executing NOI record guidance $XX feet Columbia million At NOI our recent Woodlands various which our feet initial which full fourth of XXXX, In $XXX and XXXX. of NOI million, record continued increase square Woodlands, office, Front, and stabilized with Blake performance, Starting including XXXXX well of office year, XX% to the completed year at The company feet Downtown the full at produced respectively. last were XX,XXX we year, its losses XX% Columbia end the XXX,XXX related expirations both XX% of XX,XXX gains as occupancy periods, activity was the The improved increases primarily and to expanded square some tenant due Woodlands $XXX abatement the strong to million, offset most and vacancies or office in were Summerlin. Meridian Summerlin XXX,XXX both X% up leased, and lease-up square properties notably and of our These partially of at Woodlands new year-over-year. the Summerlin. recent which impressive leased square were were in by

NOI performance by the expect to as record the free With of and overall multifamily completed at XX% properties, our as lease-up leasing full improvement NOI growth, the in off. XX% in of quarter, properties was as improvement continued contributing year In million. rent XX% of the driven year over well year-over-year primarily $XX performance, year XXXX and successful ended which leased. our This $XX which unstabilized improved stabilized NOI strong periods our office solid at reflected fourth build-outs a are burn incremental representing portfolio, million we we prior the generated

Summerlin closer Bridgeland, Looking our during average. year including growth these improvement the XX% a prior we spend incremental growth River At XX%. during XXXX, anticipated for the [indiscernible] the years. solid NOI Marlow well end finished expect year and assets completion we This our from on Marlow in Woodlands to continue performance consistent were in and significant coming the considerable demand Echo Downtown and Tanager leased leased see unstabilized properties experiencing at Columbia, [indiscernible] these year, One aggregate. the Wingspan we leased with and the With was leased, XXXX. these property is assets, each was XX% when Row communities as was The of Overall, XX% XX% and leasing new of as continued with in

prior NOI nonrecurring various new ground $XX full XX% the year-over-year significant a Ward to retail XX% Hawaii to the as portfolio factors XXXX, [indiscernible] to as the of $XX improving X% fourth These primarily well million. in to was our impact opening Overall, year. our also In year increase with reserves reflected stabilized which floor compared was results had at in a This improvement Village. year for the retail, end the related retail quarter, tenants prior million NOI of leased. retail in

I its over which update to Before Jay, call in the an our tenth in celebrating anniversary Summerlin, leasing like progress Downtown would I XXXX. retail to on provide turn is

last to than back of or in we year, maturing in had feet tenants leases of embedded XX XXXX. more XXX,XXX square risk June Looking

performance leases we many the upgrade successful to of in very or As been To in mix have square we've value financial negotiations. an only nearly tenant all date, space XX,XXX of long-term enhancement. better which discussed to effort with to in not lease for provide to this the efforts remaining year, past, elected these and X of approximately feet our spaces are renew

have including More appeal, performance. and which importantly, new will impact and of Popma, Municipal names, Roche Chanel, Summerlin all positive financial Downtown improved greatly undoubtedly vibrancy Jim, with Summerlin's retail on we offering a d'Ivoire, have Allo downtown

this year, transition we new we positive will call XXXX, that, the to these a for With opportunities Summerlin reduction I'll are in now NOI very during but growth tenants Cross. long-term turn open Downtown With to and in the Jay the see ahead. short-term about in over years set

L. Cross

strategic Thanks, sale good we in strong of Dave, communities. developments, the an of the year morning, delivery including closing In in Hawaii, condo of new Victoria all and across seventh we the units developments, completion November X outstanding tower development another year. and everyone. the our and Place celebrated closed of retail the before had Starting end XXX of quarter, our on

contracting to revenue $XXX or XX quarter in later in steady a our projects, million condos. which sell another [indiscernible], At was gross impressive projects to we see an end, expected The the we XX% to At continues had profit our start strong condo margin. record [indiscernible] translated presales condo these quarter, of demand. related presold result, As gross the to construction in $XXX which XX% other quarter to recognized million XXXX. with Village, of of XXth majority of Ward the condo

At sold the to Village tower a XX% continues workforce to that XXX% progress these few respectively. XX% Ulana, Park presold, taking also presold, at units schedule. construction and Kalae, is Ward on and our We projects

luxury Ritz-Carlton October, in project of the quarter is early effort with presales. are of an in returns, to expect maximize started now unit the deliver this currently XXXX. quarter, Woodlands In XX% In this fourth the units to presold. X We fourth construction of Residences project the the XXX-unit remaining not available contracted XX majority in on Texas, we for

these recognized in represented together were construction projects and put closer market which the and project to presold and project each of is our XXXX in XX% the XXXX. $X.X Overall, billion XXXX delivered. We future than year-end, expect to completion be at revenue, will presales more under in remarkably as units between

demand. completed by and commercial the including River stabilized One The guidance Village redevelopment Foods and And Bridgeland our that, have and sheet. to HEB. retail million centers million, Woodlands contribution Row underway These have completed strong be the In hand will Central quarter These new our center NOI during approximately all retail future in multifamily timber Carlos expected the to NOI a fourth stabilized mass would in Grade office we the $X Texas, now are the project both projects are space finally, scheduled remaining Green and and of review portfolio, in generate call XXXX. $XX.X I like leased Olea, quarter, future Grogan over Bridgeland with the mill of And end, balance with X Bridgeland. projects projects, to the X during anchored XXXX our to CFO, projects combined X who we seen negotiations. currently XX% were retail grocery at Summerlin At anchored including other approximately Whole which has

Carlos Olea

Thank our business year resale to each delivering MPC supply our during complete, and In homes in of good aided our achieve new and XXXX. projected developed of now With vacant morning, performance of XXXX EBT records shift Jay, inventories by you, blocks. is lower to tight another everyone. continued our segments we in record-setting focus outstanding segment,

sales solid custom anticipate the In concentrated for and in home year. super fab expect land we in each result, land the largely quarters well in increased demand residential continued throughout as growth as sales by we third homebuilder Astra. and see a to sales new As driven second sales lot Summerlin, in strong residential

both and the expected in a were in increase while at XXXX expected is Overall, driven the office PBT strong Columbia, residential properties which development, XXXX opposite unstabilized leasing This in across is In with million. turnover XXXX be of anniversary. in Downtown Woodlands of to end ongoing be up expected NOI operating leased occupancy is types. modest portfolio. offset landfills anticipate in Village in its expected be our will Bridgeland. our Retail strong Multifamily performance lower are improvement, also and record X% expected improved growth leasing to multifamily and driven primarily by momentum to year-over-year the operating to approximately in office see and with collection Texas, and various we losses expiring midpoint however, Downtown occupancy are abatements XXXX asset impact assets, $XXX will multifamily of XX% from initial The XX% portfolios be our to reserves in primarily of In by from by newest partially developments. rent tenant of likely due XX-year upgrades to Ward tenant a during during tenant reduction underway which nonrecurring from in Summerlin our

nearly a at Ulana expected to in approximately projected and of out in with $XXX in in XXXX Because to with and [indiscernible] company Ward our workforce expected Park be asset be of already entirely grade with condo million that expect revenues not in sold $XXX presold to housing fourth that tower we in revenues closing the completed the any modest by XXXX next a from midpoint a is development rate Bojana, operating Village to expected gross a contracted of XXXX, does be range the is is Overall, be recognize market Ward XX% market approximately growth to The up X% is NOI Unit $XXX driven of profit not project. flat workforce are the million. power, a completed sales Village, expect to development quarter. million.

represents $X implemented due $XX an excluding midpoint range relative of G&A in This a improvement to XXXX cash and $XX approximately stock in We savings anticipated expect compensation. our million cost of cash $XX of guidance noncash $XX XXXX year. to to million million G&A between million million the for late

EBT, a announced and operating net G&A including less This November, and new NOI gross operating for MPC profit is Investor Day introducing operating metric last of XXXX performance, expense. our interest cash combined As cash flows. our asset called at we adjusting guidance a metric are condo view

enhanced provide while future We a into generation approach expect drivers modeling metric capabilities this and overall our growth. performance providing new our will to insights financial of straightforward more cash

generated in million will the profit when we Place in XXXX, disciplined to any guidance with to I and with of approximately additional from this condo with in approach million XXXX reconciliation Compared by that adjusted $XXX including approximately earnings release available we cash year. between and Overall, transacted flow cash project which we approximately flow expect $XXX or $XXX XXXX. million operating million per More of in benefit [indiscernible] a midpoint presentation reduction end on our a our range Relations is and provided, share. metrics XXXX million this cash investor later adjusted Using $XXX allocation, to of operating in of capital of approximately be our in we cash flows, $XXX information operating could a gross a guidance reduction and Victoria $XXX are adjusted Investor expect results million our XXXX driven on potential the website. not $X

Looking our we to our continue business better add asset at to disposition, model. streamline focus that our we portfolio asset properties XXXX on operating during and core value believe to

in a of $XX as during million Houston, X resulted resent the for quarter As a Center which the $XX well Village we in fourth million. noncore sold combined Lakeland at as ground result, leases gain

in recognized For million, during the of gains of Woodlands Plaza including quarter. full the first The sale we $XX year, Medical the Creekside

or we the to was project the $XXX balance needed contribution pipeline. over any allocate our leaving us available million XXXX equity of quarter, the that liquidity, remaining to year development for all the end of million. approximately positioned any Combined, fund capital corporate commitment can and strength cash be to our of $XXX not in At available $XXX sheet. current had $XXX in with of lender of million ended to will run development We be use. Turning position our projects which fourth million spent well a

year and in $X.X From perspective, the of the or construction the Panadorecco loans these XXXX [indiscernible] our a Pavilion including million newer XXXX. we development to related of Marlow, multifamily office $XXX of projects. debt maturities in the majority at million end outstanding have Wingman with of and The XXXX maturities

well of all expect year refinanced with most be We already for successfully this the will during underway. discussions

we fourth $XXX completed cash In refinancing and quarter, quarter. $XX during new $XX the the construction including X, the for important for million in loans residences, at ] a a million Ritz-Carlton in construction [indiscernible] a loan which transactions million several financing financing $XX.X second sterling for Plaza we the [ purchased million Geron

also Bridgeland our the We of debt maturity our with in at increased capacity XXXX. million the its was XX% year, years later. or extended $XXX end debt the X the years by Overall, X of XXXX and of weighted maturing to notes maturity by average

that, call David capped XX% swapped for over like debt our closing to back fixed, was to would Additionally, fixed a hand or to remarks. of I the rate. With

David O'Reilly

Carlos. you, Thank

we the lines touch to X on want I Q&A, Before up items. open for

potential X.X year, impact expect of will positively beyond significant this Village. for the redeveloped. of residential well earlier Ward the a impact continued the entitlements Hughes, Village for square yet change, future to Ward NAV towers condominium our could million This which Village been development Governor favorably we we our and XXXX. we First, X.X estimate additional to to of rules, not have Ward which in is development the areas With for construct projects feet Hawaii that an condo transformation believe this enable used entitlements, of additional approved million which be amendments local in Howard

and $XXX to primarily infrastructure, current moment want we into We cash also operating lies. our million projects developments in flow approximately generated a adjusted metric invested reinvested our how the I $XXX million XXXX. reflect on in future condominium to take for in Hawaii project in

for Hawaii, now condo record deliver our investment. in upfront of development potential most the with generation many developments with we strong contributions anchored supports more XXXX, in The perspective, portfolio. and require center towers these commercial delivering the in come. entitlements with The cash projects, in Whole margins XX% fully sold advanced While are the requirements additional our in to and and Summerlin. asset project underway From poised for With Foods X Woodlands towers years the significant latest a to significant for out operating considerable current our $XXX grocery in equity [indiscernible] to invested million being gross profitability the we track funding XX% X condo capital multifamily or approximately

across for development as We the some remaining our projects also pipeline. funded projects costs in as well various portfolio the predevelopment of on

are stream recurring of All generate solid, of years ahead. income returns to operating expected meaningfully these and the in our projects stabilized net grow

and addition, In X to Seaport successful its we spin-off months million $XXX spent approximately the fund of operating of Entertainment losses.

this flow XXXX, in opportunities. cash allocate can meaningful higher we significant to return future that represents savings While

cash which in in flow the highs that gross Finally, self-funding with This in future than or model and exceptional Overall, will of developments development. sales by highlights our all-time new remainder but sales, MPCs, and NAV of of reach invested cash of supported cost we net business was only land record greater the our capital. horizontal land generate returns in to of new not investing expect into approximately free EBT that our in the grow nonreceivable sale margins have opportunities XXXX our metric more. we drivers also key XX% XXXX

million, our well are cash look $XXX with we we As of the for liquidity adjusted XXXX, of future. flow foundation operating approximately strong into positioned anticipated and

return fund available the spend Although we we flow environment, approach planning achieve expect liquidity for development to to years adjusted capital highest with in possible coming the ample operating our that new opportunities remain shareholders. ensure will to projects many in allocation committed new generate. currently grow are not This a flow will we aligned cash to the our meaningfully investment we disciplined today's free with have cash rate and

of responsible and special provide taking Before everyone for questions Board interest evaluating such best can Directors the is any and Q&A want transaction. Q&A, The that The committee call. Square's company relating to portion we proposed Schedule filing stockholders committee today the the the of Pershing associated I appropriate. recent And when special and the first you Operator, most acting start committed Board line the XXD to please for will as are an special remind its begin in the our to question? committee With stockholders. open we that, update not as such, of be will matters. to our the and the let's of

Operator

[Operator Instructions]

Our coming from Piper first Sandler. question the line of Alexander Goldfarb with

Alex Barrón

Just entitlements And time, a just questions. Hawaii. been some congrats certainly, first, guys you few there. talking And in out for your been success something the That's on expanded have -- advocating, given about. and we've

So job nice there.

questions, a So David. few

first, you problem. no update Seaport. that I'll just has cost Can flow the a just appreciate not well with you tremendous -- first and drain of over are year cash money give XXXX Seaport any and you of by It's color. increased Maybe guys that. be for certainly First start an on because amount a will impacted also a decade. the cash been

the cost the cash metric you impact the how that have was drain I new substantial. about And could to cash aggregate how in few not cost some the just think that perspective project think a Because benefit as it's So how company of much flow that? that of would much people having on on past years? flow provide operating your over

David O'Reilly

spin spun set shareholders based to successfully want ton path $X have time Look, Entertainment. last the on time spend It back don't the I a Seaport was charge what was it's to you of year. on book its we've and see can go bit impairment taken interesting value and of of that billion spin. maximizing Alex, a for an clear question. on off that was the little filings, Yes. our at over pretty assets value And before

the owned transaction paydowns think the more cash that last months X last in of costs the and Q&A, us We're we or use before about up for operating with we this that flow talked in the our frees that. to $XXX make coming months having the to progresses. used million asset year in find that capital that opportunities adjusted we talked excited losses about year prepared about as adjusted better the year half that think not drive returns in where year's higher in cash and opportunity we'll year to the of went remarks that allocation just XXXX importantly, debt as X shareholders. decisions that I flow first do and risk-adjusted that free that and

Alexander Goldfarb

cash roughly The you gave flow, yet question and to expected guidance from last is, is next operating Okay. still free you're end which the cash Carlos, year down for net position unchanged.

retention that year? is So that really flow condo have different things your drain? on improved you having other in deliveries reflection efficiency that are this adjusted a not Or your Seaport there just a -- cash of the have the having guys mix in despite having the

Carlos Olea

this is Carlos. Alex,

being during that as it we've new that market we're change is, stable for deliberate capital in, conditions very where we cash on projects. driven we relatively the as this flow we the rate condo closing because remain, deploy in have the economic does as we're I but by say, in said, So signs before, don't fact units, said

And so our as where cash us has position you [indiscernible] development pipeline [indiscernible] don't specific closings. that very and a rate we make is when knows, a in know, in no market that time, and in focus even have to the been year healthy everybody sense a on projects retain more allows certain

Alexander Goldfarb

of acceleration update for a acre. mix discovery how a but $XXX,XXX, much changed helpful, trying type what this $XXX,XXX has very for say, dramatic the from in per have home value because that And acre. Summerlin. there? that on gross how the driver slide increased impressive let's stands out of on Summerlin real price asset how that final is to I'm you Okay. I'm community pretty one basis versus guys definitely a in understand November, And curious just The it's per much much normal just was it by, just price sort increased just is maybe driven stands out the

David O'Reilly

Alex. as partnership Summit, question, own across there of And lot weighted board the has the not great And averaged community with in that's valuation this pads sell sale custom given change. $X any the super our a benefiting $X meaningful over given Astra, Summerlin when It's in sales. million majority an change, from Discovery. and that's we're custom just buying in at sales acre. That's pads. driving $X.X reporting vast quarter, of price $X.X for of on we're super year is in But increase doing has selling reported super And that homes. years that within we're land pads of is to lots, we new appreciation Yes. our majority in average our majority those and in X been with calculation of is we're acres super this any quarter this the coming a it a the certainly But the million number the homebuilders relative million, million ago, pad current the production acre, that given XXX,XXX, at increase per just because the price land quarter, the building Summerlin, the that Summerlin X, we

Operator

JPMorgan. the from coming Paolone line with of question next Our Anthony

Anthony Paolone

cash, as the to planned the back $XXX of think uses? maybe us that zoom going of then give and look maybe guidance any out as and just discussion. sources for a minute of uses, just million just both your the we and operations the as on If you financing bigger source source at well picture from and guess midpoint a cash I flow can the

David O'Reilly

sure. Yes,

show down EBT, the is by guidance cash components operating that think well of G&A, walked which of of $XXX I offset of flow $XXX modestly. asset Carlos MPC NOI sources pretty that's million midpoint million the through of really

year of at deliver the year guidance. add the Those relative million to and up sources next expense. expect the We are interest and this $XXX that midpoint our

capital In next the projects unfunded existing some are uses terms for we in of for have of year, construction under go or projects that commitments will detailed that new to. that supplemental construction

that. as and Some of or development well it components our come Woodlands support whether Ritz-Carlton from condo equity to projects, go The will will other the it's

And within go will some recurring portfolio. of it operating asset into our CapEx

capital. that new projects any announced would haven't that we now, development use Right

talk at to year. balance, higher It's incremental next cash end the able we're similar. very a why about it's not it's slightly of liquidity and So

Anthony Paolone

because bit Maybe Hawaii -- it you get we Like and we out-of-pocket funded lot a Putting West think other spend as you recurring just have of ask over to I still those themselves, in about Like should condos if a several the years? to next Phoenix with almost MPCs. Okay. development a think what do if it aside the have differently. tend seems. your horizontal

David O'Reilly

and MPC contribution, that gets will question, an which that's investing we underlying to that because of difference selling EBT Anthony, and land So is cash the it flow dollars the the be the sell net we're profitability the tomorrow. between we're lots interesting because the that for today

Phoenix kind community neutral. is community, it take West by to of and general, In and flow cash Teravalis

there are itself for that the material. of be We future land based major the not infrastructure that sales self-fund the years talked they're The entirely uses of couple phases. as expected will remainder to next we've date we capital, expect into assets, but a projects land and create several future sales that about on interim of the get to

condo cash development we a it the And left incremental of other from I categories. representation about this receivable in operating talked remainder, is our pretty then good year pieces were kind walked in and went, vertical a horizontal components there's that over coming this was the the those that lot of after was and spend nominal relative which all the Seaport. the through where And flow of of development. just what when not mud think the sale pieces is development, bigger of with We to drain the

Anthony Paolone

expected happening just my kind Studios? the can see give And there? Nevada of I just the was on some anticipation in then some here, in legislation And the maybe what's follow-up here think update things for you move start us to early Okay. year. we'd

David O'Reilly

partner, legislative which assembly in I'm this There's the later to City of room to Warner optimistic today bill We're I'm question and through legislature XX is session actually great, Sony the us, all XXX, hotel Carson remaining the our City. would in up forces, and credits days provide tax Bros., the here legislature. tax joined we've to new film that Carson X credit Yes. testify to favor speak advance Assembly in timing in the that of a really of with because Bill Tony. in heading

And XX goal get we have over the so days this left line. to

we have updates investors. or to any as our changes, sure soon be we have material any we'll update As

Operator

Instructions] [Operator

John question next Markets. Our Capital coming line with of BMO the Kim from

John Kim

to be I move appreciate shareholder the update. sensitivity was needs confirm at approval when wondering timing sense if wanted an and around forward. I the all as Board far just of Pershing Square provide transaction proposal, And I the net but approval there you could as will to any

David O'Reilly

special the Pershing any Pershing in going between XXD Square and timing otherwise on for I'm is Yes, to on. them to leave Square, opine or comments the committee filing

John Kim

is that who committee? Can you name special on

David O'Reilly

out, a processing There's refer and those get special information the that and terms number you their would to of the this I need advisers. put been they're in to how you committees press releases proposal of

John Kim

going and office whether operations, to expect in Okay. the [indiscernible]? on you Can Columbia you what comment how the move-outs, multifamily an Any commentary many it's to turnover or move-outs. the kind of And related is on of potentially XXXX?

David Striph

strategic actually Quite Dave leasing the pretty it. of it out Striph. Merriweather turnover of regard actually actually it. about feel Yes, there, on bit with we're is good one and buildings to had explore are I'll we comment we've to quite right Colombia we've tenants discussions, and place got We're the in Rove marketing few space. But the in actively looking empty in out. alternatives now. a a move some This but at

further have things as unfold. updates So we'll

David O'Reilly

on date John, I strong. that fallout Yes, that any seen from add multifamily Washington, D.C. I in to remains think what's going would we've don't

consistent. months modestly we positive efficiency made over of office the workers or to absorption several our pretty and move-outs, any quarters, continue see haven't impact improving by been honestly, been Dodge? in fallout the back and X government office and to contractions the not, move-ins, If moves assets or days have negative it's past We positive seen

John Kim

your And super sales? as expect? pad acreage as and on for And you far this assumed year, currently price what's that breaker guidance then sold on bid any commentary you that

David O'Reilly

price national We've we're I to we'll the seen seen deliver to quarter, pads acre. meaningful we've we're do to remarks, resilience based strong increase the in those homebuilders think see We from of are on home third in And cautiously be timing to heavily [indiscernible] optimistic going see are going per resilience or we strong Carlos' concentrated a just in And headlines and in despite second sales. the in super to expecting super of those be sales, really builders. softening weakening that The when able to in continue some market. that Summerlin. Bridgeland. demand is incredibly prepared

us So which communities to to 'XX, for we're 'XX. expecting new EBT guidance 'XX MPC both has be modestly record to compared led our in up

Operator

Alex And Barrón Piper we have a follow-up from Sandler. with question

Alexander Goldfarb

the and dollar the outlook to or on all what's stuff as the Good market. legislature. question announcement. affordability and stories congrats with defy even yet guys for just filled going land sales the a can more and about home in David, with internet or price residents, bigger on their homebuilders this far challenged to A last, versus as incentives luck newspapers still today that. year seem Warner you this on Bros. on on you the value comment homebuilders

or buydowns to of changed to the even And going curious just that's sales towards if builders doing resident year stronger there sell last? are noticed you've that's change other any then this homebuilders allowing if Or land profile are you are So free the all? if the upgrades if also, on? guys versus at things at guide that or the sort in

David O'Reilly

the step I stand home Teravalis, in Hills be Look, markets. into to question, thinking and to I the soon prices which in believe amenities the we're the Las connectivity selling we've meaningfully higher. Vegas attractiveness the Alex, better, about prices superior. Valley, to are that and that think and the of that in of nature are I experience back quality relative land. these The within quality communities home out relative down Bridgeland, to residents Summerlin, taking the meaningfully quality the Houston the life it communities, Yes. really to relative can far The a of Bridgeland market comes is Summerlin and the Woodland believe, built here education,

to demonstrated to almost confidence homes. has sell an outperformed have this Communities daily. appetite all us land Planned Master our year led our after real-time result, Master throughout We've that provide cycles. having a our discussions Planned year And continue with year and they're Communities of because today. We're partners homebuilder to to As continuing in buy that guidance after showing we're

are under margins their Now pressure.

the would very being and are inflation. quarters. continued say builders over seeing home mortgage are rates mortgage continued are rate offer past I forced seeing buydowns. incentives to those some several We We're consistent high

seen our notable. ton any a of haven't markets We going on of in what's that's shift in

the back, confidence really discussions that having. the I taking we're had just success on think based a that So step our is and we've current

Operator

[Operator Instructions]

of line next Our the question Big coming from with Fund. Jesper Craig

Unknown Analyst

another a year. and outstanding is capital on quarter Congratulations this allocation I promise question.

waiver that given a the reducing already to real given XXX [indiscernible] to back XX% number bumping [ they're the Section buy method ] estate the material up discounts for funds, Has back and from on of closed-end true for Pershing land it companies, buying shares the stock. cap. trust maybe tried Board So prevented

David O'Reilly

a all where are in buybacks pretty great to always a at sir. allocate allocation into we're from we're that opportunities. easy our there it to Today, hear put those times to been Thank the value looking XX% looking are price an that you opportunity allocate underlying for higher. capital question. for value from margins. at Craig, can one, net where while, ways are to we decision it value disconnected and intrinsic our Look, asset is drive regard. is our capital at condos It's And capital And share is me. and uniquely there our times share

bit that I'm have and debate we'll buyback we that of every existing required updated program, something be if to conversation our little sure more. for any not boardroom, be sure been We And It's subject and authorization the in we to our are our buyback, it as we'll to in after a provide able left on decisions does made. quarter have promptly is Board announce be next do another one.

Unknown Analyst

over Pershing buyback if pushed if XX%. -- -- a buyback your What if you pushed would happen

David O'Reilly

for Look, is security in to as puts employers a I the question make control know that our I calculation. things our we and think, it that position And don't that than I'm the are things a can focused I today for us And authorization that's, we more that of I profitability rent where on can our of condos. really space, the sell land control. where the our me

those are really focus important So effort. and me I where my and things to time

Unknown Analyst

doing equity when calculation, of -- you're Okay. XX% to adjust your And discount discount when you the NAV? you're capital do for cost how

David O'Reilly

Right. the capital We're raise not using our to selling any equity. to allocate. not We're shares

investing REIT more issuing to were So worried day back acquisition, every material a When impact I of calculation. in I became I not we Howard it to a earn and our think [ executive equity cost if equity, the the about it's digits, what about about double our meaningfully higher. to make by think in our in shareholders ] -- and clearly was Hughes, want when our

decision, into we returns development sure to capital new when our to think project, Hughes. make we're the So any targets investors equity expect Howard allocation exceeding make we in those as about investors any want that

Unknown Analyst

at discount stock return to from NAV? expected those buying the a comparing shareholders you're And back

David O'Reilly

all calculation. the look the allocation of capital We make us those correct. are part different when opportunities in of decisions we Those front at Absolutely. all

Operator

[Operator Instructions]

the remarks. turn there Mr. now will further queue for at As any over are I call final to no O'Reilly David questions the in back this time.

David O'Reilly

today you appreciate when we to at questions, again. conference up concerns earnings or weren't Thank look call. there any you on soon follow seeing you speak call available. we We that today's on, for everyone to conference, again, If our always forward Once us the we all that asked again. investor are things are joining earnings want next next

Operator

Thank now This call. participation, and disconnect. concludes you may for you your today's conference

Howard Hughes (HHH) 27 Feb 252024 Q4 Earnings call transcript