The Howard Hughes Corporation (NYSE: HHC):
Third Quarter Highlights
- Third quarter 2012 net income was $14.9 million, excluding the $(64.3) million non-cash warrant loss compared to the third quarter 2011 net loss of $(5.6) million, excluding the $169.9 million non-cash warrant gain.
- Master Planned Community land sales were $40.4 million for the third quarter 2012 compared to $32.2 million for the third quarter 2011.
- Net operating income for our income-producing Operating Assets was $16.1 million for third quarter 2012, up from $13.5 million in the third quarter of 2011.
- Acquired a 169,590 square foot Class A office building in Columbia, MD by assuming a $16.0 million non-recourse mortgage bearing interest at 4.25% and our commitment to fund $5.0 million for leasing.
- Commenced Phase Two of the Ward Village Shops - part of Ward Centers in Honolulu, HI - a $26.0 million project to build 57,000 square feet of new retail space for Pier 1 Imports and Nordstrom Rack, whose relocation opens space for future redevelopment. The tenants are expected to take occupancy in late 2013/early 2014 and should contribute approximately $1.0 million of incremental annual NOI to Ward Centers.
- Announced the master plan to transform Ward Centers into an urban master planned community called Ward Village. Ward Village, when fully developed, will contain over 4,000 condominium units and over one million square feet of retail and other commercial space. Phase One of the redevelopment will consist of two market rate, mixed-use residential towers, one reserved housing tower and the renovation of the IBM building. Construction on Phase One is expected to begin in 2014.
- Closed on $40.0 million of mezzanine capital commitments for the ONE Ala Moana condominium development, including $3.0 million of non-refundable capital for pre-development costs.
- Entered into a letter of intent with Macy’s to become a 180,000 square foot anchor tenant at the Shops at Summerlin. This project is expected to contain 1.5 million square feet of mixed use development, including retail, entertainment and 198,000 square feet of office space. We expect Macy’s will be a catalyst for the launch of this project in 2013.
- Commenced construction on Millennium Woodlands Phase II, a 314-unit Class A apartment building located in The Woodlands, which is being developed through a joint venture with the same developer with whom we developed the Millennium Waterway Apartments.
The Howard Hughes Corporation (NYSE: HHC) today announced its results for the third quarter 2012.