The Howard Hughes Corporation (NYSE: HHC) today announced its results for the third quarter of 2011, which includes the first full quarter of consolidated results for The Woodlands master planned community.

Net income attributable to common stockholders was $164.3 million for the three months ended September 30, 2011, compared with net loss of $(16.2) million for the three months ended September 30, 2010. Excluding the warrant gain, early extinguishment of debt and basis adjustments described below, net income attributable to common stockholders for the three months ended September 30, 2011 was $9.6 million, or $0.25 per diluted share. Third quarter 2011 net income includes a $169.9 million non-cash gain relating to the decrease in estimated value of outstanding warrants during the quarter, a $(11.3) million after-tax loss relating to the refinancing of $209.5 million of mortgage debt carried on our books at a discount, and a non-cash $(3.9) million after-tax loss to adjust the basis of our equity investment in The Woodlands prior to its consolidation. Diluted loss per common share was $(0.14) for the three months ended September 30, 2011, compared with $(0.43) per share for the same period in 2010. The warrant liability gain is not included in diluted earnings per share according to generally accepted accounting principles.

On July 1, 2011, we acquired our partner’s 47.5% economic interest (represented by a 57.5% legal interest) in The Woodlands master planned community. The consideration consisted of $20.0 million in cash paid at closing and a $97.5 million non-interest bearing note due December 1, 2011. We intend to repay the note at maturity with cash on hand. We consolidated approximately $591.5 million of assets and $346.2 million of liabilities, including $271.2 million of net debt, as of the acquisition date. Prior to the acquisition of our partner’s interest, The Woodlands was accounted for as a non-consolidated equity investment. As part of the consolidation, we eliminated the $134.8 million carrying value of our pre-existing non-controlling interest in The Woodlands, which resulted in a $(3.9) million after-tax book basis adjustment loss. Howard Hughes is in the process of integrating The Woodlands’ operations.

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