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Howard Hughes (HHH) - 2023 Q4 - Annual Results
HHHHoward Hughes (HHH)2024-02-27 21:03

Financial Performance - Full year 2023 net loss was 551.8million,or551.8 million, or (11.13) per diluted share, including an after-tax impairment charge of 548.5millionrelatedtotheSeaport[10]−Fourthquarternetincomewas548.5 million related to the Seaport[10] - Fourth quarter net income was 34.3 million, or 0.69perdilutedshare,downfrom0.69 per diluted share, down from 52.8 million or 1.07perdilutedshareintheprior−yearperiod[10]−NetincomeattributabletocommonstockholdersfortheyearendedDecember31,2023,was1.07 per diluted share in the prior-year period[10] - Net income attributable to common stockholders for the year ended December 31, 2023, was 34,296,000, compared to 52,751,000in2022,reflectingadeclineof34.952,751,000 in 2022, reflecting a decline of 34.9%[30] - Basic income per share for the three months ended December 31, 2023, was 0.69, down from 1.07inthesameperiodof2022,representingadecreaseof35.51.07 in the same period of 2022, representing a decrease of 35.5%[30] - Total revenues for the three months ended December 31, 2023, were 335,838,000, a decrease of 30.4% compared to 482,005,000forthesameperiodin2022[30]MasterPlannedCommunities(MPC)Performance−RecordMasterPlannedCommunity(MPC)earningsbeforetaxes(EBT)reached482,005,000 for the same period in 2022[30] Master Planned Communities (MPC) Performance - Record Master Planned Community (MPC) earnings before taxes (EBT) reached 341 million, a 21% increase compared to the prior year, driven by a 45% growth in new homes sold[10] - New home sales in HHH's communities totaled 2,289 units, representing a 45% increase year-over-year, with Summerlin and Bridgeland ranked as the 4 and 5 best-selling MPCs in the nation[10] - Full Year 2024 MPC EBT is expected to decline modestly by 10% to 15% year-over-year, with a mid-point of approximately 300million[20]−TheMasterPlannedCommunitiesSegmentreportedtotalrevenuesof300 million[20] - The Master Planned Communities Segment reported total revenues of 212,329 thousand for Q4 2023, representing a significant increase of 70,954thousand(50.170,954 thousand (50.1%) from 141,375 thousand in Q4 2022[34] - Operating income for the Master Planned Communities Segment increased by 41,970thousand(52.041,970 thousand (52.0%) to 122,527 thousand in Q4 2023, compared to 80,557thousandinthesameperiodlastyear[34]SeaportSegmentPerformance−Seaportrevenuedeclined780,557 thousand in the same period last year[34] Seaport Segment Performance - Seaport revenue declined 7% to 82 million in 2023, impacted by the absence of certain restaurant concepts and poor weather conditions[17] - The Seaport Segment experienced a decline in total revenues, reporting 17,780thousandforQ42023,downby17,780 thousand for Q4 2023, down by 635 thousand (-3.4%) from 18,415thousandinQ42022[34]−TheSeaportSegmentreportedanoperatinglossof18,415 thousand in Q4 2022[34] - The Seaport Segment reported an operating loss of 6,802 thousand in Q4 2023, compared to a loss of 6,649thousandinQ42022,reflectinga2.36,649 thousand in Q4 2022, reflecting a 2.3% increase in losses[41] - The company reported a provision for impairment of 672,492 thousand in the Seaport Segment for the year ended December 31, 2023, which was not present in 2022[41] Operating Assets Performance - Total Operating Assets NOI for the year was 244million,a4244 million, a 4% increase from 2022, led by a 16% growth in multi-family[7] - Operating Assets NOI for 2024 is projected to range from 250 million to 260million,reflectingayear−over−yearincreaseof1260 million, reflecting a year-over-year increase of 1% to 4%[20] - In Q4 2023, Operating Assets NOI totaled 54.334 million, a decrease of 1% compared to Q4 2022[22] - Total revenues for the Operating Assets Segment increased to 104,406thousandinQ42023,upfrom104,406 thousand in Q4 2023, up from 104,092 thousand in Q4 2022, representing a change of 0.3%[39] - Segment operating income for the Operating Assets Segment decreased to 52,077thousandinQ42023,downfrom52,077 thousand in Q4 2023, down from 56,554 thousand in Q4 2022, a decline of 8.0%[39] Financial Position - Total assets as of December 31, 2023, were 9,577,003,000,slightlydownfrom9,577,003,000, slightly down from 9,603,463,000 in 2022[32] - Total liabilities increased to 6,518,079,000asofDecember31,2023,comparedto6,518,079,000 as of December 31, 2023, compared to 5,997,351,000 in 2022, marking an increase of 8.7%[32] - The company reported a total of 1,272,445,000indevelopmentsasofDecember31,2023,anincreasefrom1,272,445,000 in developments as of December 31, 2023, an increase from 1,125,027,000 in 2022, indicating a growth of 13.1%[32] - The company's cash and cash equivalents stood at 631,548,000asofDecember31,2023,comparedto631,548,000 as of December 31, 2023, compared to 626,653,000 in 2022, showing a slight increase of 0.6%[32] General and Administrative Expenses - Cash G&A expenses are anticipated to be between 80millionand80 million and 90 million, excluding 20 million related to the spin-off of Seaport Entertainment[20] - General and administrative (G&A) expenses for the year ended December 31, 2023, were 91,193,000, up 9,421,000(11.59,421,000 (11.5%) from 81,772,000 in 2022[48] - Cash G&A for the year ended December 31, 2023, was 82,720,000,anincreaseof82,720,000, an increase of 6,303,000 (8.2%) from 76,417,000in2022[48]ImpairmentandAssetValuation−Thecompanyreportedaprovisionforimpairmentof76,417,000 in 2022[48] Impairment and Asset Valuation - The company reported a provision for impairment of 672,492,000 in 2022, which was not present in 2023, indicating a significant recovery in asset valuation[30] - The company reported a provision for impairment of $672,492 thousand in Q4 2023, indicating significant challenges in asset valuation compared to the previous year[34]