The Howard Hughes Corporation® Reports Third Quarter 2016 Results

The Howard Hughes Corporation (NYSE: HHC) (the "Company") announced operating results for the third quarter ended September 30, 2016. The attached financial statements, exhibits and reconciliations of non-GAAP measures provide the details of these results.

Third Quarter Highlights:
  • Net income attributable to common stockholders was $8.0 million or $0.19 per diluted common share.
  • Adjusted net income was $47.2 million, an increase of $18.7 million compared to the third quarter of 2015.
  • Furthered the revitalization of the Seaport District by obtaining approval for the Pier 17 and Tin Building Minor Modification, announcing that iconic Italian fashion store 10 Corso Como will open its only North American location in the district and welcoming iPic Theaters as the first anchor to open as part of the redevelopment.
  • Commenced construction of Two Merriweather, a 130,000 square-foot, Class A mixed-use office building in Downtown Columbia after successfully pre-leasing 75.0% of the office space.
  • Continued sales momentum at Ward Village with 35 new condominium contracts executed since the end of the second quarter, representing over 11.1% of the remaining inventory under construction as of June 30, 2016. Began construction of Ke Kilohana.
  • Strong third quarter MPC performance driven by Bridgeland with 12.2 acres of residential land sales, an increase of 110.3% compared to the same period in 2015, and by The Summit, our joint venture with Discovery Land in Summerlin, which contracted 21 custom lots for approximately $94.3 million in land sales during the third quarter 2016.
  • Successfully completed a $238.7 million refinancing at Ward Village, extending the initial maturity to September 12, 2021, and at Two Merriweather, obtaining a $33.2 million non-recourse construction loan maturing on October 7, 2020.
  • Announced the appointment of David R. O'Reilly to the position of Chief Financial Officer effective October 17, 2016.

"We had a solid third quarter as we continued to increase cash flow across the portfolio and make progress in delivering value at our strategic developments while strengthening our MPCs. In Las Vegas, by bringing the NHL practice facility to Downtown Summerlin, we continue to further distinguish the community as the premier place to live in the region while also increasing visitors to our downtown," said David R. Weinreb, Chief Executive Officer. "I am particularly pleased at the progress we have made towards the revitalization of the Seaport District. During the quarter, we announced that iconic Italian fashion store 10 Corso Como will be coming to the Seaport as our retail anchor, opened iPic Theaters as our first cornerstone tenant and received approval to move and reconstruct the Tin Building as part of the Minor Modification."

"We continue to advance our plans at Ward Village where Waiea, our first residential tower, is nearing completion. We expect to start closing on condominium unit sales and welcoming new homeowners within the next couple of weeks. In addition, we celebrated the topping out of Anaha, our second building, which is on schedule for completion by mid-summer 2017. It is gratifying to see our vision for this vibrant community beginning to take shape."

Third Quarter Financial Results
                 
Three Months Ended September 30, Nine Months Ended September 30,
(In thousands, except per share amounts) 2016 2015 2016 2015
Net income attributable to common stockholders $ 7,973 $ 156,224 $ 158,708 $ 100,838
 
Basic income per share: $ 0.20 $ 3.96 $ 4.02 $ 2.55
 
Diluted income per share: $ 0.19 $ 0.76 $ 3.72 $ 1.01
 
Adjusted net income $ 47,242 $ 28,509 $ 260,231 $ 85,892
 

Adjusted income per diluted share:
$ 1.10 $ 0.66 $ 6.09 $ 2.00
 

As we complete and place our developments into service, non-cash depreciation and amortization expense associated with these cash-generative commercial real estate properties is a material component of our net income. Adjusted net income is a non-GAAP measure that excludes depreciation and amortization expense, provision for impairment, non-cash warrant liability gains and losses, gain on acquisition of our joint venture partner's interest and gains or losses on sales of operating properties. For additional information, please see the reconciliation of Adjusted Net Income to Net Income (loss) attributable to common stockholders in the Supplemental Information contained on page 11 of this earnings release.

Business Segment Operating Results

Operating Assets Segment Highlights
                 
Three Months Ended September 30, Nine Months Ended September 30,
(In thousands) 2016 2015 2016 2015
Retail, Office, Multi-family and Hospitality NOI (a) $

30,694
$ 31,905 $ 98,341 $ 87,498
 
Operating Assets REP EBT (34,316 ) (1,198 ) (24,893 ) (7,332 )
 
Adjusted Operating Assets REP EBT $ 24,116 $ 24,903 $ 80,919 $ 67,045
(a)  

Includes our share of NOI from our non-consolidated equity method ventures (our "income-producing Operating Assets"). These amounts exclude NOI from properties that are substantially closed for redevelopment and properties sold during the periods.
 

Net operating income ("NOI") from our income-producing Operating Assets is presented in our Supplemental Information to this earnings release. For a reconciliation of Operating Assets NOI to Operating Assets real estate property earnings before taxes ("REP EBT"), Operating Assets REP EBT to GAAP-basis net income (loss) and Adjusted Net Income to Net Income, please refer to the Supplemental Information contained in this earnings release.

We calculate Adjusted Operating Assets REP EBT, which excludes depreciation and amortization and development-related demolition, marketing costs and provision for impairment, as they do not represent operating costs for stabilized real estate properties.

Operating assets REP EBT decreased $33.1 million to $(34.3) million, compared to $(1.2) million for the third quarter 2015. During the third quarter 2016, we implemented a plan to sell Park West, a 249,177 square foot open-air shopping, dining and entertainment destination in Peoria, Arizona that is one of our non-core operating assets. A sale will allow us to redeploy the net cash proceeds from this unleveraged property into our core six assets. As a result, we incurred a $35.7 million provision for impairment on this property.

The decrease in NOI from income-producing Operating Assets in the third quarter 2016 compared to the third quarter 2015 is primarily driven by headwinds in the Houston economy that have negatively impacted occupancy and conference business at The Woodlands Resort & Conference Center and our two recently opened hotels in The Woodlands. The increase in NOI from income-producing Operating Assets in the nine months ended September 30, 2016 compared to the same period in the prior year is primarily due to Downtown Summerlin and the openings of one Summerlin office and two multi-family properties in 2015.

On July 20, 2016, we purchased our joint venture partner's 18.57% interest in Millennium Six Pines Apartments (formerly known as Millennium Woodlands Phase II) for $4.0 million which resulted in a gain of $27.1 million relating to the step-up to fair value of the assets acquired.

On September 26, 2016, we announced the signing of a 20-year ground lease for a to-be-built practice facility in Downtown Summerlin® for the newly awarded NHL franchise in Las Vegas. The two-rink practice facility will be built on a 4.6-acre parcel located in Downtown Summerlin. Groundbreaking on the new facility took place last month with an expected completion date of August 2017.

On September 8, 2016, we announced that iconic Italian fashion retailer 10 Corso Como will be coming to the Seaport District. Founded in Milan in 1991 by style visionary and former fashion editor Carla Sozzani, 10 Corso Como pioneered a new retail model as the world's original concept store. 10 Corso Como New York will be located in the historic area of the Seaport District and contain approximately 13,000 square feet that will be designed by American artist Kris Ruhs. The New York store will be 10 Corso Como's only U.S. location and is consistent with the other offerings curated to date that will include culinary experiences from renowned restaurateurs Jean-Georges Vongerichten and the Momofuku Group led by David Chang, iPic Theaters, McNally Jackson Books and the new Pier 17® highlighted by its 1.5-acre rooftop, overlooking the East River of Manhattan that will be programmed as a year-round destination, home to a seasonal summer concert series as well as a winter village and a cultural entertainment gathering for all New Yorkers and visitors. On October 13, 2016, iPic Theaters, the nation's ultimate movie going experience, opened as the first anchor in the revitalized Seaport District in their first New York location. The new iPic is Manhattan's first new commercial multiplex movie theater opened in over a decade.

On October 19, 2016, we received approval for the Seaport District's Pier 17 Minor Modification of the 2013 Uniform Land Use Review Procedure ("ULURP") Approval which grants approval for the reconstruction of the Tin Building, the demolition of the Link Building and head house structure for the Pier 17 building, installation of the same façade treatment on the western elevation that was previously approved for the new Pier 17 Building, and the installation of a reconfigured service access drive.

Master Planned Communities Segment Highlights

Generally MPC revenues fluctuate during the year; therefore, a better measurement of performance is the full year impact instead of quarterly results.

A Summary of our MPC segment is shown below. For additional detail, please refer to the Supplemental Information section of this release.

                           

Summary of MPC Land Sales Closed in the Three Months Ended September 30,
 
Land Sales Acres Sold Price per acre
($ In thousands) 2016 2015 2016 2015 2016 2015
Bridgeland
Residential $ 4,687 $ 2,273 12.2 5.8 $ 384 $ 392
Commercial     20,475 160.2     128
Total 4,687 22,748 12.2 166.0 384 137
 
Summerlin
Residential 16,525 19,334 31.7 36.9 521 524
 
The Woodlands
Residential 10,581 10,481 19.9 14.2 532 738
Commercial     6,837 3.3     2,072
Total 10,581 17,318 19.9 17.5 532 990
 
Total land sales closed in period $ 31,793 $ 59,400 63.8 220.4
 
 

Summary of MPC Land Sales Closed in the Nine Months Ended September 30,
 
Land Sales Acres Sold Price per acre
($ In thousands) 2016 2015 2016 2015 2016 2015
Bridgeland
Residential $ 13,557 $ 8,346 36.2 21.3 $ 375 $ 392
Commercial     20,475 160.2     128
Total 13,557 28,821 36.2 181.5 375 159
 
Summerlin
Residential 86,157 85,334 203.5 137.4 423 621
Commercial   348   3,136 10.0 3.6   35   871
Total 86,505 88,470 213.5 141.0 405 627
 
The Woodlands
Residential 14,431 24,748 26.3 37.0 549 669
Commercial   10,405   8,891 4.3 9.2   2,420   966
Total 24,836 33,639 30.6 46.2 812 728
 
Total land sales closed in period $ 124,898 $ 150,930 280.3 368.7
 

Land sales closed in our MPC segment for the three months ended September 30, 2016 decreased $27.6 million or 46.5% to $31.8 million, compared to $59.4 million for the same period in 2015 primarily due to a $20.5 million commercial land sale at Bridgeland in 2015. Land sales revenue of $44.1 million recognized for three months ended September 30, 2016 included $10.2 million in revenue from closings in prior periods that was previously deferred and that met criteria for recognition in the current quarter. Land sales closed in our MPC segment for the nine months ended September 30, 2016 decreased $26.0 million or 17.2% to $124.9 million compared to $150.9 million for the same period in 2015. Land sales revenue of $147.2 million recognized for nine months ended September 30, 2016 included $16.4 million in revenue from closings in prior periods which was previously deferred and that met criteria for recognition in the current year.

Bridgeland's residential land sales for the three and nine months ended September 30, 2016 were substantially higher compared to the same periods in 2015 due to increased demand from homebuilders, offset by a $20.5 million decrease in commercial land sales from 2015. For the nine months ended September 30, 2016, residential land sales at Bridgeland are 62.4% higher than the same period in the prior year, and we believe this trend will continue through the end of the year. While the broader Houston market remains impacted by moderated oil prices, particularly affecting the sales of higher priced homes, the Bridgeland submarket has shown improvement in the mid-range of the residential market. In October, Bridgeland reached a significant milestone and celebrated its 10 th year anniversary.

Summerlin's land sales for the three months ended September 30, 2016 were lower compared to the same period in 2015 due to the sale of one superpad in the third quarter 2016 compared to two superpads in the third quarter 2015. However, residential land sales in Summerlin for the nine months ended September 30, 2016 increased slightly to $86.2 million, compared to $85.3 million for the same period in 2015. The average price per superpad acre for the nine months ended September 30, 2016 of $408,000 is not comparable to the average price per acre of $544,000 for the same period in 2015 due to a $40.0 million bulk sale to a homebuilder for a large parcel in the first quarter 2016. This sale was unique as the homebuilder will be responsible for installing power and drainage facilities to the village, and unlike a typical sale, Summerlin is not obligated to incur any development costs within the boundaries of the parcel. Gross margin increased for the nine months ended September 30, 2016 compared to 2015 due to this sale of undeveloped land for which we incurred much lower development costs. In addition, as part of the transaction we negotiated a favorable adjustment to the builder price participation on the land we sold to the same homebuilder in 2006.

Land development began at The Summit, our joint venture with Discovery Land in our Summerlin MPC, in the second quarter 2015 and continues to progress on schedule based upon the initial plan. For the three months ended September 30, 2016, 38 custom residential lots had closed resulting in the recognition of $13.7 million Equity in earnings in Real Estate and Other Affiliates. As of September 30, 2016, contracted sales since inception are $204.6 of which $119.8 million had closed.

The Woodlands decrease in total land sales for the three months ended September 30, 2016 compared to the same period in 2015 is primarily due to a 3.3-acre medical office building land sale in the third quarter 2015 for $6.8 million. The $8.8 million decrease in total land sales for the nine months ended September 30, 2016 compared to the same period in 2015 is due to reduced residential sales of $10.3 million due to fewer closings, offset by a $1.5 million increase in commercial land sales. The reduced sales pace is due primarily to the downturn in the Houston economy resulting from moderated oil prices and the disproportionate impact this has had on the upper end of the housing market. Also contributing to the reduced price per acre and slower lot sales pace is the build-up of homebuilder vacant lot inventory levels.

Strategic Developments Segment Highlights

We have condominiums for sale in Ward Village across five condominium projects, four of which are under construction: Waiea, Anaha, Ae'o and Ke Kilohana. These four projects have a total unit count of 1,381, of which 1,101 were under contract as of September 30, 2016, including 35 units placed under contract in the third quarter, reducing the total number of unsold units under construction to 280.
                       

Ward Village Towers Under Construction as of September 30, 2016
 
($ in millions) Total Units

Under Contract

Percent of Units Sold

Total Projected Costs

Costs Incurred to Date

Estimated Completion Date
Waiea 174 160 92.0 % $ 403.4 $ 346.3 Q4 2016
Anaha 317 297 93.7 % 401.3 207.8

2017
Ae'o 466 257 55.2 % 428.5 (a) 53.8 2018
Ke Kilohana 424 387 91.3 %   218.9   11.1 2019
Total under construction 1,381 1,101 79.7 % $

1,452.1
$ 619.0
(a)   Also includes project costs for our flagship Whole Foods Market located on the same block.
 

The increase in condominium rights and unit sales for the three and nine months ended September 30, 2016 as compared to the same periods in 2015 is primarily related to revenue recognition at our Anaha condominium project for which we began recognizing revenue in the second quarter 2015. As condominium projects advance towards completion, revenue is recognized on qualifying sales contracts under the percentage of completion method of accounting. All development cost estimates presented herein are exclusive of land costs.

On August 17, 2016, along with our joint-venture partner, we announced the launch of a 130-acre, mixed-use development at Circle T Ranch, a scenic, 2,500-acre, master planned community in Westlake, Texas, that is located within the 18,000-acre AllianceTexas development. The development, which is situated at the junction of SH 114 and SH 170, will include more than two million square feet of mixed-use office, retail and entertainment space and will be anchored by the recently announced 500,000-square-foot corporate campus for the Charles Schwab Corporation, one of the nation's largest financial service providers.

We began construction of Two Merriweather, a Class A mixed-use office building, in the third quarter 2016. Two Merriweather will consist of 100,000 square feet of office and 30,000 square feet of retail space. Total estimated development costs are approximately $41 million. As of September 30, 2016, we have incurred $3.3 million of development costs. As of October 20, 2016, 57.7% of the total project and 75.0% of the office space is pre-leased.

For a more complete description of the status of our developments, please refer to "Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations" beginning on page 33 of our Form 10-Q for the three and nine months ended September 30, 2016.

Balance Sheet and Other Quarterly Activity

Simultaneously with the buyout of our partner's interest in Millennium Six Pines Apartments (formerly known as Millennium Woodlands Phase II) on July 20, 2016, we secured a new $42.5 million fixed rate loan at 3.39% maturing August 1, 2028. This new loan replaced the joint venture's existing $37.7 million loan and funded the purchase of our partner's interest.

On September 29, 2016, we completed a $238.7 million refinancing of the debt maturing September 29, 2016 for Ward Village®. The new non-recourse term loan bears interest at one-month LIBOR plus 2.50% and has an initial maturity of September 12, 2021 with two, one-year extension options. We swapped $119.4 million of the loan to a fixed rate of 3.64% through its initial maturity date, representing an all-in interest rate of approximately 3.33% based on the current one-month LIBOR rate. The financing is secured by the existing Ward Village commercial properties, excluding condominium towers currently under development, and allows for the future release of collateral to develop additional residential condominium towers and retail properties across the master planned community.

In connection with starting construction of Two Merriweather, on October 7, 2016 we closed on a $33.2 million non-recourse construction loan for this project, bearing interest at one-month LIBOR plus 2.50% with an initial maturity date of October 7, 2020 and a one-year extension option.

*Non-recourse debt means that the debt is non-recourse to The Howard Hughes Corporation but is collateralized by a real estate asset and/or is recourse to the subsidiary entity owning such asset.

About The Howard Hughes Corporation®

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Our properties include master planned communities, operating properties, development opportunities and other unique assets spanning 16 states from New York to Hawai'i. The Howard Hughes Corporation is traded on the New York Stock Exchange under HHC with major offices in New York, Columbia, MD, Dallas, Houston, Las Vegas and Honolulu. For additional information about HHC, visit www.howardhughes.com or find us on Facebook, Twitter, Instagram, and LinkedIn.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as "will," "believe," "expect," "enables," "realize", "plan," "intend," "assume," "transform" and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation's filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
                 
 
THE HOWARD HUGHES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
 
Three Months Ended September 30, Nine Months Ended September 30,
(In thousands, except per share amounts) 2016 2015 2016 2015
Revenues:
Condominium rights and unit sales $ 115,407 $ 78,992 $ 362,613 $ 200,362
Master Planned Community land sales 44,128 45,423 147,168 138,937
Minimum rents 44,910 37,814 128,255 109,997
Builder price participation 4,483 6,680 15,631 20,285
Tenant recoveries 11,657 10,706 33,108 31,074
Hospitality revenues 14,088 11,772 46,126 35,256
Other land revenues 2,595 4,617 8,387 11,055
Other rental and property revenues   3,538     7,438     11,335     20,729  
Total revenues   240,806     203,442     752,623     567,695  
 
Expenses and other income:
Condominium rights and unit cost of sales 83,218 47,573 237,759 126,747
Master Planned Community cost of sales 21,432 19,674 66,128 67,806
Master Planned Community operations 9,216 10,349 26,616 32,295
Other property operating costs 16,535 16,680 47,513 54,459
Rental property real estate taxes 7,033 6,908 21,110 19,676
Rental property maintenance costs 3,332 3,094 9,217 8,738
Hospitality expenses 12,662 8,767 37,379 26,738
Provision for doubtful accounts 1,940 1,007 4,629 3,082
Demolition costs 256 1,024 1,218 2,637
Development-related marketing costs 4,716 7,639 15,586 19,476
General and administrative 21,128 18,526 61,505 57,095
Other income, net (432 ) 659 (9,858 ) (1,204 )
Gain on sale of 80 South Street Assemblage (70 ) (140,549 )
Depreciation and amortization 23,322 24,998 71,246 71,577
Provision for impairment   35,734         35,734      
Total expenses, net of other income   240,022     166,898     485,233     489,122  
 
Operating income 784 36,544 267,390 78,573
 
Interest income 196 109 900 516
Interest expense (16,102 ) (15,212 ) (48,628 ) (43,143 )
Warrant liability (loss) gain (7,300 ) 123,640 (21,630 ) 57,450
Gain on acquisition of joint venture partner's interest 27,087

27,087
Gain on sale of The Club at Carlton Woods

29,073

29,073
Equity in earnings from Real Estate and Other Affiliates   13,493     295     35,700     3,164  
Income before taxes 18,158 174,449 260,819 125,633
Provision for income taxes   10,162     18,237     102,088     24,795  
Net income 7,996 156,212 158,731 100,838
Net (income) loss attributable to noncontrolling interests   (23 )   12     (23 )    
Net income attributable to common stockholders $ 7,973   $ 156,224   $ 158,708   $ 100,838  
 
Basic income per share: $ 0.20   $ 3.96   $ 4.02   $ 2.55  
 
Diluted income per share: $ 0.19   $ 0.76   $ 3.72   $ 1.01  
 
       
THE HOWARD HUGHES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
 
September 30, December 31,
(In thousands, except share amounts) 2016 2015
Assets:
Investment in real estate:
Master Planned Community assets $ 1,660,523 $ 1,642,842
Land 314,400 322,462
Buildings and equipment 1,900,172 1,772,401
Less: accumulated depreciation (242,034 ) (232,969 )
Developments   976,209     1,036,927  
Net property and equipment 4,609,270 4,541,663
Investment in Real Estate and Other Affiliates   78,890     57,811  
Net investment in real estate 4,688,160 4,599,474
Cash and cash equivalents 653,041 445,301
Accounts receivable, net 38,241 32,203
Municipal Utility District receivables, net 171,691 139,946
Notes receivable, net 69 1,664
Deferred expenses, net 64,053 61,804
Prepaid expenses and other assets, net 820,240 441,190
Property held for sale   34,888      
Total assets $ 6,470,383   $ 5,721,582  
 
Liabilities:
Mortgages, notes and loans payable $ 2,847,002 $ 2,443,962
Deferred tax liabilities 156,882 89,221
Warrant liabilities 329,390 307,760
Uncertain tax position liability 19,987 1,396
Accounts payable and accrued expenses   603,237     515,354  
Total liabilities   3,956,498     3,357,693  
 
Equity:
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued
Common stock: $.01 par value; 150,000,000 shares authorized, 39,851,036 shares issued and 39,838,975 outstanding as of September 30, 2016 and 39,714,838 shares issued and outstanding as of December 31, 2015 398 398
Additional paid-in capital 2,856,335 2,847,823
Accumulated deficit (321,507 ) (480,215 )
Accumulated other comprehensive loss (23,818 ) (7,889 )
Treasury stock, at cost, 12,061 shares as of September 30, 2016 and 0 shares as of December 31, 2015 (1,295 )  
Total stockholders' equity 2,510,113 2,360,117
Noncontrolling interests   3,772     3,772  
Total equity   2,513,885     2,363,889  
Total liabilities and equity $ 6,470,383   $ 5,721,582  
 
 

Supplemental Information

September 30, 2016

As our three segments, Master Planned Communities, Operating Assets and Strategic Developments, are managed separately, we use different operating measures to assess operating results and allocate resources among these three segments. The one common operating measure used to assess operating results for our business segments is real estate property earnings before taxes ("REP EBT"). REP EBT, as it relates to our business, is defined as net income (loss) excluding general and administrative expenses, corporate other income, corporate interest income, and corporate interest and depreciation expense, provision for income taxes, warrant liability gain (loss), gains or losses on sales of operating properties, and gain on acquisition of joint venture partner interest. We present REP EBT because we use this measure, among others, internally to assess the core operating performance of our assets. However, REP EBT should not be considered as an alternative to GAAP net income (loss).
               
Reconciliation of REP EBT to GAAP income (loss) before taxes Three Months Ended September 30, Nine Months Ended September 30,
(In thousands) 2016 2015 2016   2015
REP EBT $ 34,498 $ 55,190 $ 354,521 $ 139,178
General and administrative (21,128 ) (18,526 ) (61,505 ) (57,095 )
Corporate interest expense, net (13,263 ) (13,262 ) (39,358 ) (39,709 )
Warrant liability (loss) gain (7,300 ) 123,640 (21,630 ) 57,450
Corporate other income expense, net 123 (222 ) 6,190 1,304
Gain on sale of The Club at Carlton Woods

29,073 29,073
Gain on acquisition of joint venture partner's interest 27,087 27,087
Corporate depreciation and amortization   (1,859 )   (1,444 )   (4,486 )   (4,568 )
Income before taxes $ 18,158   $ 174,449   $ 260,819   $ 125,633  
 
 

We also adjust GAAP net income (loss) for non-cash warrant liability gains and losses and depreciation and amortization. The presentation of Adjusted net income is consistent with other companies in the real estate business who also typically report an earnings measure that excludes depreciation and amortization and other non-operating related items.
         
Reconciliation of Adjusted net income to Net income Three Months Ended September 30, Nine Months Ended September 30,
(loss) attributable to common stockholders 2016     2015 2016     2015
(In thousands)
Adjusted Net Income $

47,242
$ 28,509 $

260,231
$ 85,892
Depreciation and amortization (23,322 ) (24,998 ) (71,246 ) (71,577 )
Provision for impairment (35,734 ) - (35,734 )

Warrant liability (loss) gain (7,300 ) 123,640 (21,630 ) 57,450
Gain on acquisition of joint venture partner's interest 27,087

27,087

Gain on sale of The Club at Carlton Woods  

    29,073    

    29,073  
Net income attributable to common stockholders $ 7,973   $ 156,224   $ 158,708   $ 100,838  
 
 

When a development property is placed in service, depreciation is calculated for the property ratably over the estimated useful lives of each of its components; however, most of our recently developed properties do not reach stabilization for 12 to 36 months after being placed in service due to the timing of tenants taking occupancy and subsequent leasing of remaining unoccupied space during that period. As a result, operating income, earnings before taxes (EBT) and net income will not reflect the ongoing earnings potential of newly placed in service operating assets during this transition period to stabilization. Accordingly, we calculate Adjusted Operating Assets REP EBT, which excludes depreciation and amortization and development-related demolition and marketing costs and provision for impairment, as they do not represent operating costs for stabilized real estate properties.

The following table reconciles Adjusted Operating Assets REP EBT to Operating Assets REP EBT:

                 
Reconciliation of Adjusted Operating Assets REP EBT to Three Months Ended September 30, Nine Months Ended September 30,
Operating Assets REP EBT (in thousands) 2016 2015 2016 2015
Adjusted Operating Assets REP EBT $ 24,116 $ 24,903 $ 80,919 $ 67,045
Provision for impairment (35,734 ) (35,734 )
Depreciation and amortization (20,732 ) (22,936 ) (64,546 ) (64,585 )
Demolition costs (16 ) (798 ) (494 ) (2,411 )
Development-related marketing costs   (1,950 )   (2,367 )   (5,038 )   (7,381 )
Operating Assets REP EBT $ (34,316 ) $ (1,198 ) $ (24,893 ) $ (7,332 )
 
                                               
Summary of MPC Land Sales Closed in the Three Months Ended September 30,
 
Land Sales Acres Sold Number of Lots/Units Price per acre Price per lot
($ In thousands) 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
Bridgeland
Residential
Single family - detached $ 4,687 $ 2,273 12.2 5.8 69 34 $ 384 $ 392 $ 68 $ 67
Commercial
Not-for-profit       20,475     160.2         128      
Total 4,687 22,748 12.2 166.0 69 34 384 137 68 67

$ Change
(18,061 ) (153.8 ) 35 247 1

% Change
(79.4 %) (92.7 %) 102.9 % 180.3 % 1.5 %
 
Maryland Communities
No land sales
 
Summerlin
Residential
Superpad sites 15,000 17,754 30.9 36.1 75 160 485 492 200 111
Custom lots 1,525   1,580   0.8   0.8 2   2 1,906   1,975 763   790
Total 16,525 19,334 31.7 36.9 77 162 521 524 215 119

$ Change
(2,809 ) (5.2 ) (85 ) (3 ) 96

% Change
(14.5 %) (14.1 %) (52.5 %) (0.6 %) 80.7 %
 
The Woodlands
Residential
Single family - detached 10,581 5,609 19.9 9.2 79 32 532 610 134 175
Single family - attached 4,872 5.0 56 974 87
Commercial
Medical     6,837     3.3         2,072      
Total 10,581 17,318 19.9 17.5 79 88 532 990 134 119

$ Change
(6,737 ) 2.4 (9 ) (458 ) 15

% Change
(38.9 %) 13.7 % (10.2 %) (46.2 %) 12.6 %
 
Total land sales closed in period $ 31,793   $ 59,400   63.8   220.4 225   284
 
Net recognized (deferred) revenue
Bridgeland $ 2,523 $ (11,361 )
Summerlin   7,649     (2,633 )
Total net recognized (deferred) revenue (a)   10,172     (13,994 )
Special Improvement District revenue   2,163     17  
Total land sales revenue - GAAP basis $ 44,128   $ 45,423  
(a)   Represents revenues on sales closed in prior periods where revenue was previously deferred and met criteria for recognition in the current periods, offset by revenues deferred on sales closed in the current period.
 
                                             
Summary of MPC Land Sales Closed in the Nine Months Ended September 30,
 
Land Sales Acres Sold Number of Lots/Units Price per acre Price per lot
($ In thousands) 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
Bridgeland
Residential
Single family - detached $ 13,557 $ 8,346 36.2 21.3 201 94 $ 375 $ 392 $ 67 $ 89
Commercial
Not-for-profit       20,475     160.2         128      
Total 13,557 28,821 36.2 181.5 201 94 375 159 67 89

$ Change
(15,264 ) (145.3 ) 107 216 (22 )

% Change
(53.0 %) (80.1 %) 113.8 % 135.8 % (24.7 %)
 
Maryland Communities
No land sales
 
Summerlin
Residential
Superpad sites 81,987 63,784 201.1 117.2 943 393 408 (a) 544 87 162
Single family - detached 13,650 14.9 75 916 182
Custom lots 4,170 7,900 2.4 5.3 7 13 1,738 1,491 596 608
Commercial
Not-for-profit 348 10.0 35
Other       3,136     3.6         871      
Total 86,505 88,470 213.5 141.0 950 481 405 627 91 177

$ Change
(1,965 ) 72.5 469 (222 ) (86 )

% Change
(2.2 %) 51.4 % 97.5 % (35.4 %) (48.6 %)
 
The Woodlands
Residential
Single family - detached 14,431 19,468 26.3 31.2 105 112 549 624 137 174
Single family - attached 5,280 5.8 65 910 81
Commercial
Not-for-profit 733 5.0 147
Medical 10,405 6,837 4.3 3.3 2,420 2,072
Other       1,321     0.9         1,468      
Total 24,836 33,639 30.6 46.2 105 177 812 728 137 140

$ Change
(8,803 ) (15.6 ) (72 ) 84 (3 )

% Change
(26.2 %) (33.8 %) (40.7 %) 11.5 % (2.1 %)
 
Total land sales closed in period $ 124,898   $ 150,930   280.3   368.7 1,256   752
 
Net recognized (deferred) revenue
Bridgeland $ 2,435 $ (11,361 )
Summerlin   13,941     (4,740 )
Total net recognized (deferred) revenue (b)   16,376     (16,101 )
Special Improvement District revenue   5,894     4,108  
Total land sales revenue - GAAP basis $ 147,168   $ 138,937  
 
(a)   Please see discussion below.
(b) Represents revenues on sales closed in prior periods where revenue was previously deferred and met criteria for recognition in the current periods, offset by revenues deferred on sales closed in the current period.
 

Operating Assets Net Operating Income

We believe that NOI is a useful supplemental measure of the performance of our Operating Assets because it provides a performance measure that, when compared year-over-year, reflects the revenues and expenses directly associated with owning and operating real estate properties and the impact on operations from trends in occupancy rates, rental rates, and operating costs. We define NOI as revenues (rental income, tenant recoveries and other income) less expenses (real estate taxes, repairs and maintenance, marketing and other property expenses). NOI also excludes straight line rents and tenant incentives amortization, net interest expense, ground rent amortization, demolition costs, amortization, depreciation, development-related marketing costs and equity in earnings from Real Estate and Other Affiliates.

We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on our operating results, gross margins and investment returns.

Although we believe that NOI provides useful information to the investors about the performance of our Operating Assets due to the exclusions noted above, NOI should only be used as an alternative measure of the financial performance of such assets and not as an alternative to GAAP net income (loss).
                         

Operating Assets NOI and REP EBT
 
Three Months Ended September 30, Nine Months Ended September 30,
(In thousands) 2016 2015 Change 2016 2015 Change
Retail
Columbia Regional $ 422 $ 535 $ (113 ) $ 1,024 $ 1,000 $ 24
Cottonwood Square 170 189 (19 ) 530 494 36
Creekside Village Green (a) 380 314 66 1,169 539 630
Downtown Summerlin (a) 4,020 2,507 1,513 12,261 6,700 5,561
Hughes Landing Retail (a) 822 400 422 2,345 786 1,559
1701 Lake Robbins 90 111 (21 ) 274 296 (22 )
Lakeland Village Center (b) 56 56
Landmark Mall (c) (202 ) (116 ) (86 ) (526 ) (302 ) (224 )
Outlet Collection at Riverwalk (d) 1,424 1,726 (302 ) 3,656 4,845 (1,189 )
Park West (e) 411 211 200 1,346 1,386 (40 )
Ward Village (f) 5,149 6,370 (1,221 ) 17,039 19,385 (2,346 )
20/25 Waterway Avenue 442 437 5 1,282 1,384 (102 )
Waterway Garage Retail   184     186     (2 )   480     539     (59 )
Total Retail   13,312     12,870     442     40,936     37,052     3,884  
Office
10-70 Columbia Corporate Center (g) 2,631 2,925 (294 ) 8,701 9,449 (748 )
Columbia Office Properties (h) (16 ) 263 (279 ) (133 ) 342 (475 )
One Hughes Landing (j) 1,457 1,475 (18 ) 4,462 4,112 350
Two Hughes Landing (i) 322 2,528 (2,206 ) 2,979 3,380 (401 )
Three Hughes Landing (b) (251 ) (251 ) (409 ) (409 )
1725 Hughes Landing Boulevard (b) 817 817 (330 ) (330 )
1735 Hughes Landing Boulevard (b) 1,531 1,531 956 956
2201 Lake Woodlands Drive (42 ) (32 ) (10 ) (113 ) (119 ) 6
9303 New Trails (d) 401 476 (75 ) 1,257 1,459 (202 )
110 N. Wacker 1,525 1,519 6 4,576 4,577 (1 )
ONE Summerlin (a) 691 (148 ) 839 1,529 (317 ) 1,846
3831 Technology Forest Drive 600 487 113 1,515 1,415 100
3 Waterway Square (j) 1,545 1,499 46 4,938 4,670 268
4 Waterway Square (j) 1,485 1,520 (35 ) 4,786 4,462 324
1400 Woodloch Forest (k)   367     485     (118 )   1,294     1,248     46  
Total Office   13,063     12,997     66     36,008     34,678     1,330  
Multi-family
Millennium Six Pines Apartments (l) 513 513 513 513
Millennium Waterway Apartments (m) 704 1,106 (402 ) 2,327 3,151 (824 )
One Lakes Edge (a) 967 688 279 2,623 147 2,476
85 South Street   141     144     (3 )   391     359     32  
Total Multi-family   2,325     1,938     387     5,854     3,657     2,197  
Hospitality
Embassy Suites at Hughes Landing (b) 929 929 2,498 2,498
The Westin at The Woodlands (b) (24 ) (24 ) 585 585
The Woodlands Resort & Conference Center (n)   520     3,006     (2,486 )   5,663     8,518     (2,855 )
Total Hospitality   1,425     3,006     (1,581 )   8,746     8,518     228  
Total Retail, Office, Multi-family, and Hospitality   30,125     30,811     (686 )   91,544     83,905     7,639  
 
The Woodlands Ground leases 378 330 48 1,046 856 190
The Woodlands Parking Garages (129 ) (184 ) 55 (320 ) (455 ) 135
Other Properties   971     951     20     2,920     2,827     93  
Total Other   1,220     1,097     123     3,646     3,228     418  
Operating Assets NOI - Consolidated and Owned   31,345     31,908     (563 )   95,190     87,133     8,057  
 
Redevelopments
South Street Seaport (b) (o) 186 (22 ) 208 (624 ) (423 ) (201 )
 
Dispositions
The Club at Carlton Woods (p)       751     (751 )       (942 )   942  
Total Operating Assets NOI - Consolidated   31,531     32,637     (1,106 )   94,566     85,768     8,798  
 
Straight-line lease amortization (q) 2,550 408 2,142 9,632 2,632 7,000
Demolition costs (r) (16 ) (798 ) 782 (494 ) (2,411 ) 1,917
Development-related marketing costs (1,950 ) (2,367 ) 417 (5,038 ) (7,381 ) 2,343
Provision for impairment (35,734 ) (35,734 ) (35,734 ) (35,734 )
Depreciation and Amortization (20,732 ) (22,936 ) 2,204 (64,546 ) (64,585 ) 39
Write-off of lease intangibles and other (439 ) 439 (593 ) 593
Other income, net 13 13 3,126 3,126
Equity in earnings from Real Estate Affiliates (209 ) 289 (498 ) 2,617 1,333 1,284
Interest, net   (9,769 )   (7,992 )   (1,777 )   (29,022 )   (22,095 )   (6,927 )
Total Operating Assets REP EBT (s) $ (34,316 ) $ (1,198 ) $ (33,118 ) $ (24,893 ) $ (7,332 ) $ (17,561 )
 
                         

Operating Assets NOI and REP EBT
 
Three Months Ended September 30, Nine Months Ended September 30,
(In thousands) 2016 2015 Change 2016 2015 Change
Operating Assets NOI - Equity and Cost Method Investments
Grandview SHG, LLC (b) $ 590 $ $ 590 $ 899 $ $ 899
Millennium Six Pines Apartments (l) (83 ) 496 (579 ) 1,537 503 1,034
Stewart Title Company 891 330 561 1,411 1,329 82
Summerlin Baseball Club 28 211 (183 ) 628 780 (152 )
The Metropolitan Downtown Columbia (a) (174 ) 652 (826 ) 2,759 283 2,476
Woodlands Sarofim # 1   278     465     (187 )   1,070     1,194     (124 )
Total NOI - equity investees 1,530 2,154 (624 ) 8,304 4,089 4,215
 
Adjustments to NOI (t)   (1,978 )   (805 )   (1,173 )   (8,040 )   (2,260 )   (5,780 )
Equity Method Investments REP EBT (448 ) 1,349 (1,797 ) 264 1,829 (1,565 )
Less: Joint Venture Partner's Share of REP EBT   239     (1,060 )   1,299     (263 )   (2,243 )   1,980  
Equity in earnings from Real Estate and Other Affiliates   (209 )   289     (498 )   1     (414 )  

415
 
 
Distributions from Summerlin Hospital Investment (u)               2,616     1,747     869  
Segment equity in earnings from Real Estate and Other Affiliates $ (209 ) $ 289   $ (498 ) $ 2,617   $ 1,333   $ 1,284  
 
Company's Share of Equity Method Investments NOI
Grandview SHG, LLC $ 207 $ $ 207 $ 315 $ $ 315
Millennium Six Pines Apartments (l) (67 ) 404 (471 ) 1,252 410 842
Stewart Title Company 446 165 281 706 665 41
Summerlin Baseball Club 14 105 (91 ) 314 390 (76 )
The Metropolitan Downtown Columbia (87 ) 327 (414 ) 1,380 142 1,238
Woodlands Sarofim # 1   56     93     (37 )   214     239     (25 )
Total NOI - equity investees $ 569   $ 1,094   $ (525 ) $ 4,181   $ 1,846   $ 2,335  
 
           
Economic As of September 30, 2016
(In thousands) Ownership Total Debt Total Cash
Grandview, LLC 35.00 % $ 36,000 $ 18,244
Stewart Title Company 50.00 % 218
Summerlin Baseball Club 50.00 % 33 1,745
The Metropolitan Downtown Columbia 50.00 % 70,000 281
Woodlands Sarofim # 1 20.00 % 5,690 950
(a)   NOI increase for the quarter ended September 30, 2016 as compared to 2015 relates to an increase in occupancy and/or stabilization of the property.
(b) Please refer to Condensed Consolidated Financial Statements on Form 10-Q for further discussion.
(c) The NOI losses in 2016 and 2015 are due to a decline in occupancy as the property loses tenants in anticipation of its redevelopment.
(d) The NOI decrease is due to higher than normal tenant recoveries in 2015.
(e) NOI increase for the nine month period ended September 30, 2016 is due to an increase in occupancy.
(f) The decrease in NOI is due to rent abatement for a tenant related to a lease modification, decrease in occupancy related to a bankrupt tenant and decrease in occupancy due to pending redevelopment.
(g) NOI decrease is due to a decrease in occupancy.
(h) NOI decrease for the three and nine month period ended September 30, 2016 is due primarily to decreased occupancy related to water damage in 2015 and subsequent loss of tenants. Amounts settled with insurers with respect to the water damage are being held in escrow.
(i) The NOI decrease for the three and nine months ended September 30, 2016 is due to the provision for doubtful accounts related to a tenant's termination fee in third quarter 2016 and a large lease termination fee received in 2015.
(j) NOI increase for the nine months ended September 30, 2016 is due to a decrease in real estate taxes and other operating expenses.
(k) NOI decrease for the three months ended September 30, 2016 is due to lower occupancy.
(l)

Purchased our partner's 18.57% interest in Millennium Six Pines Apartments (formerly known as Millennium Woodlands Phase II, LLC) in July 2016 and consolidated property at that time.
(m)

NOI decrease is due to a decrease in rental rates to maintain occupancy during the lease up of Millennium Six Pines Apartments and One Lakes Edge
(n) NOI decrease for the three and nine months ended September 30, 2016 is due to lower occupancy and a decrease in conference center services.
(o) NOI increase for the three months ended September 30, 2016 is due to increased occupancy. NOI decrease for the nine months ended September 30, 2016 is due to higher employment costs and professional expenses.
(p) The Club at Carlton Woods was sold in September 2015.
(q) The increase is primarily due to new leases at Downtown Summerlin and 1725-1735 Hughes Landing Boulevard which were placed in service in the fourth quarter 2015.
(r) The decrease in demolition costs is due to completion of the interior demolition of the Fulton Market Building and demolition of Pier 17 at Seaport.
(s) For a detailed breakdown of our Operating Asset segment REP EBT, please refer to Note 16 - Segments in the condensed consolidated financial statements.
(t) Adjustments to NOI include straight-line rent and market lease amortization, demolition costs, depreciation and amortization and non-real estate taxes.
(u) Distributions from the Summerlin Hospital are typically made one time per year in the first quarter.
 
                       

Commercial Properties NOI
 
(In millions, except square feet/number of units and %) Square Feet/Number of Units % Occupied % Leased

Three Months Ended September 30, 2016

Projected Annual Stabilized NOI

Debt Balance as of September 30, 2016

Commercial Properties - Stabilized
 
Retail
Cottonwood Square 77,080 95.7 % 95.7 % $ 0.2 $ 0.7 $
Hughes Landing Retail 126,136 91.9 97.4 0.8 3.5 34.5
1701 Lake Robbins 12,376 100.0 100.0 0.1 0.4 4.6
Outlet Collection at Riverwalk 264,321 86.8 99.8 1.4 7.5 56.1
One Lakes Edge Retail 23,280 92.0 92.0
Park West 249,363 80.2 80.2 0.4 1.8
Ward Village 1,122,483 90.5 91.4 5.1 25.6 238.7
20/25 Waterway Avenue 50,062 100.0 100.0 0.4 1.6 13.9
Waterway Garage Retail 21,513 85.4 % 100.0 %   0.2     0.8    
Total Retail - Stabilized 1,946,614 89.2 % 92.0 % $ 8.6 $ 41.9 $ 347.8
 
Office
10-70 Columbia Corporate Center 898,965 84.4 % 88.3 % $ 2.6 $ 12.4 $ 100.0

Columbia Office Properties (a)
107,674 85.1 85.1 0.5
One Hughes Landing 197,719 100.0 100.0 1.5 5.3 52.0
Two Hughes Landing 197,714 93.8 96.3 0.3 5.1 48.0
1735 Hughes Landing Boulevard 318,170 100.0 100.0 1.5 7.5 52.5
9303 New Trails 97,553 82.8 86.7 0.4 1.8 12.5
110 N. Wacker 226,000 100.0 100.0 1.5 6.1 23.6
2201 Lake Woodlands Drive 24,119 25.8 25.8
3831 Technology Forest Drive 95,078 100.0 100.0 0.6 1.9 22.5
3 Waterway Square 232,021 100.0 100.0 1.5 6.3 51.9
4 Waterway Square 218,551 100.0 100.0 1.5 5.5 36.5
1400 Woodloch Forest 95,667 95.8   96.9     0.4     1.2    
Total Office - Stabilized 2,709,231 92.4 % 94.0 % $ 11.8 $ 53.6 $ 399.5
 
Multi-family
The Metropolitan Downtown Columbia 380 92.1 % 92.1 % (0.1 ) 3.5
Millennium Waterway Apartments 393 81.2 77.9 0.7 4.5 55.6

Millennium Six Pines Apartments
314 90.8 87.8 0.5 4.6 42.5
85 South Street 21 100.0   100.0   $ 0.1   $ 0.6   $
Total Multi-family 1,108 88.0 % 86.0 % $ 1.2 $ 13.2 $ 98.1
 

Hospitality (b)
Grandview SHG, LLC 72 92.8 % 92.8 % $ 0.2 $ $
The Woodlands Resort & Conference Center 406 49.9   49.9     0.5     16.5     85.0
Total Hospitality - Stabilized 478 56.4 % 56.4 % $ 0.7 $ 16.5 $ 85.0
 
Total Commercial Properties - Stabilized $ 22.3   $ 125.2   $ 930.4
 

Commercial Properties - Recently Developed And Not Yet Stabilized
 
Retail
Columbia Regional 88,556 77.4 % 77.4 % $ 0.4 $ 2.2 $ 22.2
Creekside Village Green 74,669 84.5 84.5 0.4 1.9
Downtown Summerlin 1,006,471 80.8 86.0 4.0 26.3 299.4
Lakeland Village Center 83,444 36.3   40.6         1.7     9.2
Total Retail - Not Stabilized 1,253,140 77.8 % 82.3 % $ 4.8 $ 32.1 $ 330.8
 
Office
Three Hughes Landing 320,815 2.8 % 9.0 % (0.3 ) 7.6 34.2
1725 Hughes Landing Boulevard 331,067 49.0 66.9 0.8 6.9 52.5
ONE Summerlin 206,279 61.4   63.6   $ 0.7   $ 5.7   $
Total Office - Not Stabilized 858,161 34.7 % 44.4 % $ 1.2 $ 20.2 $ 86.7
 
Multi-family
One Lakes Edge 390 66.2 % 67.2 % $ 1.0   $ 7.5   $ 71.9
Total Multi-family - Not Stabilized 390 66.2 % 67.2 % $ 1.0 $ 7.5 $ 71.9
 

Hospitality (b)
Embassy Suites at Hughes Landing 205 73.8 % 73.8 % $ 0.9 $ 4.5 $ 29.2
The Westin at The Woodlands 302 42.3   42.3         10.5     57.2
Total Hospitality - Not Stabilized 507 55.0 % 55.0 % $ 0.9 $ 15.0 $ 86.4
 
Total Commercial Properties - Not Stabilized $ 7.9   $ 74.8   $ 575.8
 
 
(In millions, except square feet/number of units and %) Square Feet/Number of Units % Occupied % Leased

Three Months Ended September 30, 2016
Projected Annual Stabilized NOI

Debt Balance as of September 30, 2016

Commercial Properties - Pending Redevelopment
 
Retail
Landmark Mall 440,325 31.5   31.5   $ (0.2 ) $ (0.3 ) $

Total Retail - Pending Redevelopment 440,325 31.5 % 31.5 % $ (0.2 ) $ (0.3 )

$

 
Office
American City Building 117,098 3.4   3.4  

$

N/A
 

$

N/A
  $
Total Office - Pending Redevelopment 117,098 3.4 % 3.4 %

$

N/A

$

N/A
$
 
Total Commercial Properties - Pending Redevelopment $ (0.2 ) $ (0.3 ) $
 

Under Construction or Renovation
 
Retail
South Street Seaport 362,000 N/A   N/A  

$

N/A
 

$

N/A
  $
Total Retail - Under Construction 362,000

N/A

%

N/A

%

$

N/A

$

N/A
$
 
Office
One Merriweather 199,000 N/A 48.9 %

$

N/A
$ 5.1 $ 13.7
Two Merriweather 123,604 N/A   58.7     N/A     3.6    
Total Office - Under Construction 322,604

N/A

%
52.6 %

$

N/A
$ 8.7 $ 13.7
 
Multi-family
Constellation 124 14.5 % 42.7 %

$

N/A
$ 1.1 $
m.flats 437 N/A   N/A     N/A     4.0    
Total Multi-family - Under Construction 561 3.2 % 9.4 %

$

N/A
$ 5.1 $
 
Self Storage
HHC 242 Self Storage Facility 657 N/A N/A

$

N/A
$ 0.8 $ 2.6
HHC 2978 Self Storage Facility 784 N/A   N/A     N/A     0.8     0.4
Total Self Storage - Under Construction 1,441

N/A

%

N/A

%

$

N/A
$ 1.6 $ 3.0
 
Total Commercial Properties - Under Construction

$

N/A
  $ 15.4   $ 16.7
     

Total Commercial Properties
$ 30.0   $ 215.1   $ 1,522.9

(a)
 

Excludes American City Building as it is reflected in the Commercial Properties - Pending Redevelopment section below.

(b)
Hospitality occupancy is the average occupancy for the quarter based on occupied rooms relative to total available rooms.

View source version on businesswire.com: http://www.businesswire.com/news/home/20161108005594/en/

Copyright Business Wire 2010

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