Howard Hughes (HHH) - 2024 Q4 - Annual Results

Financial Performance - Net income from continuing operations for 2024 was $285.2 million, or$ 5.73 per diluted share, a 241% increase from $83.4 million, or$ 1.68 per diluted share in 2023[10] - Fourth quarter net income from continuing operations was $162.3 million, or$ 3.25 per diluted share, compared to $52.8 million, or$ 1.06 per diluted share in the prior-year period[10] - Net income attributable to common stockholders for the year ended December 31, 2024, was $197,703,000, compared to a net loss of$ 551,773,000 in 2023, indicating a turnaround in profitability[28] - The company reported a basic income per share from continuing operations of $5.75 for the year ended December 31, 2024, up from$ 1.68 in 2023, reflecting a substantial improvement in earnings[28] - Adjusted Operating Cash Flow for the year ended December 31, 2024, reached $534,576, reflecting a significant performance measure for the company[48] - Adjusted Operating Cash Flow per diluted share was$ 10.71 for the year ended December 31, 2024[48] Revenue Generation - Master Planned Community (MPC) Earnings Before Taxes (EBT) reached a record $349 million, up 2% from$ 341.4 million in the prior year, driven by record land sales of $453.2 million, a 22% year-over-year increase[13] - Total revenues for the three months ended December 31, 2024, were$ 983,590,000, a significant increase from $312,964,000 in the same period of 2023, representing a growth of approximately 213%[28] - Master Planned Communities land sales generated$ 453,195,000 in revenue for the year ended December 31, 2024, compared to $370,185,000 in 2023, marking an increase of approximately 22%[28] - Rental revenue increased to$ 422,100,000 for the year ended December 31, 2024, from $383,617,000 in 2023, showing a growth of about 10%[28] - The Strategic Developments segment reported total revenues of$ 783,396,000 for the year ended December 31, 2024, compared to $733,409,000 in 2023, reflecting an increase of about 7%[32] - The Master Planned Communities segment experienced a decrease in total revenues to$ 522,925,000 for the year ended December 31, 2024, from $448,452,000 in 2023, a decline of approximately 16%[32] Operating Assets and Performance - Total Operating Assets Net Operating Income (NOI) for 2024 was$ 257 million, representing a 6% increase year-over-year, with multifamily NOI up 11% and office NOI up 5%[12] - Total Operating Assets NOI for the year ended December 31, 2024, was $257,007,000, compared to$ 241,340,000 in 2023, a growth of 6.5%[41] - Total Operating Assets NOI increased by 9% year-over-year to $61.199 million for the three months ended December 31, 2024[19] - Same Store NOI for the total portfolio increased to$ 59,467,000 in Q4 2024 from $56,476,000 in Q4 2023, a rise of 5.3%[41] - The company's share of NOI from unconsolidated ventures increased by 25% year-over-year to$ 2.288 million for the three months ended December 31, 2024[19] - The company's share of NOI from unconsolidated ventures increased to $2,288,000 in Q4 2024 from$ 1,837,000 in Q4 2023, a rise of 24.5%[41] Future Projections - The company anticipates MPC EBT to increase by 5% to 10% year-over-year in 2025, with a mid-point guidance of approximately $375 million[16] - Operating Assets NOI is projected to be flat to up 4% year-over-year in 2025, with a mid-point of approximately$ 262 million[5] - Condo sales revenues are expected to reach approximately $375 million in 2025, driven entirely by the closing of units at Ulana, which is 100% pre-sold[5] - Adjusted Operating Cash Flow is projected to range between$ 325 million and $375 million in 2025, with a mid-point of approximately$ 350 million or $7.00 per share[5] - The company expects to end 2025 with cash and cash equivalents of approximately$ 600 million, excluding any potential MUD receivable sales[5] Financing and Liquidity - The company closed on $862 million in financings, including$ 680 million in construction loans for condo projects[4] - The company maintained a strong liquidity position with $596.1 million in cash and cash equivalents and$ 1.2 billion in undrawn lender commitments[10] - Cash G&A is projected to be between $76 million and$ 86 million in 2025, with a mid-point of $81 million, excluding approximately$ 9 million of anticipated non-cash stock compensation[5] Corporate Developments - The company completed the spinoff of Seaport Entertainment Group on July 31, 2024, allowing for increased focus on real estate operations[4] Cost and Expense Management - Total operating expenses rose to $51,840,000 in Q4 2024, up from$ 45,379,000 in Q4 2023, marking an increase of 14.3%[37] - Cash G&A for Q4 2024 was reported at $20,593,000, up from$ 19,575,000 in Q4 2023, indicating an increase of 5.2%[43] - The company reported a decrease in interest expense, net, to $34,439,000 in Q4 2024 from$ 35,778,000 in Q4 2023, a reduction of 3.7%[37] Real Estate Transactions - The company delivered Victoria Place, generating $778.6 million in condominium revenues with an adjusted gross profit of$ 211.1 million[16] - Future condominium sales in Hawai'i and Texas are projected to generate an additional $533.4 million in revenue from 316 contracted units[16] - The Park Ward Village condo tower, comprising 545 market rate units, is already 97% pre-sold and expected to contribute significant revenues in 2026[5] - Condominium rights and unit sales for Q4 2024 were$ 778,590, showing a decrease of $792 compared to Q4 2023[45] - Adjusted condo gross profit for the year ended December 31, 2024, was$ 211,133, an increase of $8,416 from the previous year[45] Asset and Equity Changes - Total assets decreased to$ 9,211,236,000 as of December 31, 2024, from $9,577,003,000 in 2023, a decline of approximately 4%[29] - Total liabilities decreased to$ 6,369,462,000 as of December 31, 2024, from $6,518,079,000 in 2023, representing a reduction of about 2%[29] - The company’s total stockholders' equity decreased to$ 2,776,226,000 as of December 31, 2024, from $2,992,871,000 in 2023, indicating a decline of approximately 7%[29]