Howard Hughes Holdings Inc. has recently released its 10-Q report, providing insights into its financial performance for the second quarter of 2024. The company operates as a real estate development firm with four key segments: Operating Assets, Master Planned Communities (MPCs), Seaport, and Strategic Developments. The Operating Assets segment includes retail, office, and multi-family properties, while the MPCs segment focuses on developing residential and commercial land in various markets. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its properties in New York City, while the Strategic Developments segment focuses on developing and redeveloping residential condominiums and commercial properties.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Howard Hughes reported a net income attributable to common stockholders of $21.1 million for the second quarter of 2024, compared to a net loss of $19.1 million in the same period in 2023. The company also highlighted its strong liquidity position, with $436.8 million in cash and cash equivalents and $1.2 billion of undrawn lender commitment available for property development. The company also noted limited near-term debt maturities.
In the Operating Assets segment, the net operating income (NOI) totaled $65.5 million in the second quarter of 2024, a slight decrease from $66.1 million in the same period in 2023. The decrease was primarily attributed to reduced attendance and sales revenues at the Las Vegas Ballpark, offset by strong leasing activity and abatement expirations at various properties in The Woodlands and Summerlin.
The MPC segment reported Earnings Before Tax (EBT) of $123.2 million in the second quarter of 2024, a significant increase from $54.9 million in the same period in 2023. The increase was driven by higher residential land sales, particularly in Summerlin, with the company achieving a record quarterly average price per acre of $1.0 million for all residential land sold during the second quarter.
However, the Seaport segment reported a decrease in NOI, resulting in a loss of $9.4 million in the second quarter of 2024, compared to a loss of $2.4 million in the same period in 2023. This change was primarily due to increased overhead costs associated with the stand-up of Seaport Entertainment.
Following these announcements, the company's shares moved 5.5%, and are now trading at a price of $74.36. For the full picture, make sure to review Howard Hughes's 10-Q report.
