Shares of The Howard Hughes Corp. (HHC) - Get Report plunged in after-hours trading Monday after the real-estate developer announced is CEO is stepping down and it is planning a restructuring move that includes the sale of $2 billion in "non-core assets," as well as a headquarters move designed to save $45 million to $50 million a year in expenses.
The stock dropped $24.38, or 19%, to $104 in after hours trading.
The company said CEO David Weinreb is leaving immediately. He will be replaced by Paul Layne, president of the company's central region.
In addition, the company will move its headquarters from Dallas to The Woodlands, Texas, a move that it projects will save $45 million to $50 million a year in expenses.
The company also plans to sell $2 billion in "non-core assets" over the next 12 to 18 months. The $600 million in net cash, after debt repayment and transaction costs, will be used for share repurchases and development opportunities in its master planned communities business.
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