Howard Hughes (HHH) Investor Day 2024 summary

Strategic Vision and Business Model

• Focus on long-term value creation through master-planned communities, maintaining large land holdings and controlling supply for high risk-adjusted returns across market cycles.

• Unique self-funding model uses recurring NOI, land, and condo sales to finance future developments, share buybacks, or debt reduction, without diluting shareholders.

• Competitive advantages include dominant land positions, self-funding cycle, and little competition in core markets.

• Emphasis on innovation, sustainability, and adaptability, integrating technology and ESG principles into planning and construction.

• Recent spinoff of Seaport Entertainment sharpened focus on core master-planned community business.

Financial Performance and Guidance

• Achieved $1 billion in MPC EBT, 1,100+ residential acres sold, and 72% growth in residential price per acre over three years; 13% MPC EBT CAGR and 58% residential price per acre increase since 2015.

• Operating asset NOI grew 17% since 2021, with multifamily NOI up 71% over three years and a 28% CAGR since 2015.

• Condo sales generated $3.2 billion in revenue (closed or under contract) in three years; $3.6B in total development costs for 19 projects between 2022 and 2024.

• Adjusted Operating Cash Flow introduced as a new metric, with $796M projected for 2024; 2024 guidance would have been $541 million under previous metrics.

• NAV per share increased to $118 in 2024 (up from $106 in 2023), reflecting a 48% discount to share price, with strong performance in land and operating assets.

Regional and Project Highlights

• Major communities include The Woodlands, Bridgeland, Summerlin, Ward Village (Hawaii), and Teravalis (Arizona), each with significant long-term development pipelines.

• Summerlin: 20 years of development remaining, new residential, commercial, and entertainment projects, including a planned Sony Pictures studio targeting 2028 completion.

• Ward Village: Seven towers completed, three under construction, two in planning; $6.2 billion in past and future revenues, with strong demand from local and international buyers.

• Teravalis: 37,000-acre Arizona project expected to welcome 300,000 residents and 55 million sq ft of commercial space over 30–50 years; 595 lots sold YTD at $781k per acre.

• Bridgeland and The Woodlands: Continued commercial expansion, new office and retail projects, and high demand for multifamily and luxury condo products.