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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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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