Howard Hughes (HHH) The 14th Annual East Coast IDEAS Conference summary

Business model and operations

• Operates in four segments: master plan communities, strategic development, operating assets, and the Seaport, with a focus on building entire cities from the ground up rather than just properties.

• Measures development opportunity in acres, not square feet, and is unique as a public company with tens of thousands of acres in high-growth areas.

• Business model centers on selling land to homebuilders, reinvesting proceeds into commercial amenities, and generating recurring income from leasing.

• Maintains strict discipline in land sales to avoid oversupply and ensure vibrant, fully occupied communities.

• Focuses on amenities and thoughtful master planning to create desirable communities with short commutes and high quality of life.

Growth, financial performance, and pipeline

• NOI has grown from $46 million to $252 million in 13 years, driven by increasing residents and demand for multifamily and commercial assets.

• Land value has appreciated significantly, with price per acre increases outpacing infrastructure investment.

• Recurring income from leases now covers overhead and interest, reducing reliance on land and condo sales for funding.

• Current pipeline includes $82 million in existing assets (over half already leased) and $24 million in projects under construction, targeting $358 million in NOI.

• Inventory in key communities like Teravalis and The Woodlands provides decades of future development and NOI growth.

Strategic transformation and Seaport spinoff

• Spinning off the Seaport District and related assets to focus exclusively on master planned communities, with the transaction expected in Q3 pending SEC approval.

• Seaport generated $55 million in losses in 2023; spinoff will unlock $120 million in operating losses for tax benefits and eliminate future funding of Seaport losses.

• New management will take over Seaport, allowing focus on core business and accretive use of capital.