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Jun 30, 2024
Howard Hughes Q2 2024 Earnings Report
Howard Hughes Holdings Inc. reported strong performance across core businesses with record-setting price per acre in MPCs and improved full-year guidance for Operating Assets and Condos for the second quarter of 2024.
Key Takeaways
Howard Hughes Holdings Inc. delivered outstanding results in Q2 2024, with net income of $21.1 million, a significant improvement from a prior-year loss. This was driven by robust residential land sales in MPCs, strong Operating Assets NOI, and exceptional pre-sales activity for condominiums. The company also increased its full-year guidance for Operating Assets NOI and condo sales revenue.
Net income per diluted share was $0.42, a substantial improvement from a loss of $(0.39) in the prior-year period.
MPC EBT reached $123 million, driven by a 315% year-over-year increase in residential land sales at a record quarterly average price of $1 million per acre.
Total Operating Assets NOI was $68 million, contributing to a $5 million increase in full-year guidance mid-point to $255 million.
Contracted to sell 94 condominiums in Ward Village® and The Woodlands®, representing $207 million of future revenue.
Howard Hughes
Howard Hughes
Howard Hughes Revenue by Segment
Howard Hughes Revenue by Geographic Location
Revenue by Segment
MPC Land Sales Revenue
CapyFin.comRental Revenue
CapyFin.comOther Land, Rental & Property Revenue
CapyFin.comBuilder Price Participation Revenue
CapyFin.comRevenue by Geographic Location
Houston, TX (Office) Revenue
CapyFin.comColumbia, MD (Office) Revenue
CapyFin.comLas Vegas, NV (Office) Revenue
CapyFin.comHonolulu, HI (Retail) Revenue
CapyFin.com Forward Guidance
Howard Hughes Holdings Inc. has increased its full-year 2024 guidance for Operating Assets NOI and condo sales revenues, while reaffirming MPC EBT guidance.
Positive Outlook
- MPC EBT is expected to benefit from record residential land sales as homebuilders seek to replenish low lot inventories.
- New home sales in Summerlin, Bridgeland, and The Woodlands Hills are on pace to exceed 2023 results.
- Operating Assets NOI is projected to benefit from increased occupancy at new multi-family developments in Downtown Columbia, Summerlin, and Bridgeland.
- Improved retail leasing and new tenants in Downtown Columbia, Ward Village, and The Woodlands are expected to boost Operating Assets NOI.
- Condo sales revenues are now expected to range between $730 million and $750 million, an increase from previous guidance.
Challenges Ahead
- MPC EBT year-over-year gains are expected to be offset by reduced EBT associated with exceptional commercial land sales and builder price participation during 2023.
- Limited inventory of custom lots available to sell at Aria Isle in The Woodlands and The Summit in Summerlin due to their significant past success.
- Operating Assets NOI will be partially offset by free rent periods on many of the new office leases.
- The impact of some tenant vacancies in the office portfolio will negatively affect Operating Assets NOI.
- New office developments recently completed will partially offset Operating Assets NOI.