Debt and Interest Rates - The company has $1.4 billion of variable-rate debt outstanding as of December 31, 2024, with $250.2 million swapped to a fixed rate through interest rate swaps [319]. - Annual interest costs would increase approximately $3.2 million for every 1.00% increase in floating interest rates [320]. - The weighted-average interest rates for debt obligations range from 4.30% to 5.38% across various maturities [321]. - The company has $750 million in 5.375% Senior Notes due 2028, $650 million in 4.125% Senior Notes due 2029, and $650 million in 4.375% Senior Notes due 2031 [320]. - The company has interest rate cap contracts in place for $827.2 million of its variable-rate debt [319]. - The company is subject to interest rate risk, which could complicate refinancing fixed-rate debt when it becomes due [318]. - The company's secured mortgages payable totaled $2.752 billion as of December 31, 2024, with a weighted average interest rate of 5.93% [499]. - Interest rate derivatives are utilized to manage exposure to variable interest rate debt, with a weighted average interest rate of 7.02% for variable-rate mortgages as of December 31, 2024 [500]. Financial Performance - Total revenues for 2024 reached $1,750,689, a significant increase of 92.8% compared to $908,753 in 2023 [346]. - Net income attributable to common stockholders for 2024 was $197,703, a turnaround from a loss of $551,773 in 2023 [346]. - The company reported a basic income per share of $3.98 for 2024, compared to a loss of $11.13 in 2023 [346]. - Comprehensive income attributable to common stockholders for 2024 was $198,399, compared to a loss of $560,836 in 2023 [347]. - Net income for the year ended December 31, 2023, was $196,992,000, a significant recovery from a net loss of $551,530,000 in 2022 [357]. - Cash provided by operating activities of continuing operations was $447,751,000, compared to cash used of $(215,154,000) in the previous year [357]. - Total revenues from discontinued operations for 2024 were $60,846 thousand, a decrease of 47.3% compared to $115,349 thousand in 2023 [449]. - Net income (loss) from discontinued operations for 2024 was $(88,223) thousand, compared to $(634,940) thousand in 2023, indicating a significant improvement [449]. Assets and Liabilities - Total assets decreased to $9,211,236 in 2024 from $9,577,003 in 2023, reflecting a decline of 3.8% [343]. - Total liabilities decreased to $6,369,462 in 2024 from $6,518,079 in 2023, a reduction of 2.3% [343]. - The company’s cash and cash equivalents decreased to $596,083 in 2024 from $629,714 in 2023, a decline of 5.3% [343]. - The total stockholders' equity as of December 31, 2023, was $2,776,226,000, down from $2,992,871,000 in 2022 [353]. - The total assets increased from $814,627 thousand in 2023 to $879,908 thousand in 2024, while total liabilities rose from $436,289 thousand to $526,320 thousand [473]. - The Company’s total liabilities as of December 31, 2024, were $1,094,437 thousand, up from $1,054,267 thousand in 2023 [490]. Investments and Development - The company has a joint ownership of certain properties, which limits its control over those assets [318]. - The company faces risks related to increased construction costs and regulatory approvals that may affect property development [318]. - The Company owned an 88.0% interest in Teravalis as of December 31, 2024, with total Master Planned Community assets valued at $542.1 million [375][376]. - Total development costs increased to $1,190,746 thousand in 2024 from $982,368 thousand in 2023, representing a growth of approximately 21.2% [388]. - The Company acquired Waterway Plaza II for $19.2 million and Grogan's Mill Village Center for $5.9 million in 2024, indicating ongoing strategic acquisitions [474][475]. - The Company completed the sale of four non-core ground leases for $9.6 million in 2024, resulting in a gain of $6.7 million [476]. - The company has $1.2 billion of undrawn lender commitments available for property development as of December 31, 2024 [502]. Cash Flow and Financing Activities - Cash provided by financing activities of continuing operations was $(27.8) million in 2024, a decrease from $537.8 million in 2023 [359]. - Cash, cash equivalents, and restricted cash at the end of the period decreased to $998.5 million in 2024 from $1,053.1 million in 2023, a decline of 5.2% [359]. - Proceeds from mortgages, notes, and loans payable increased to $761.4 million in 2024 from $677.4 million in 2023, a growth of 12.3% [359]. - Principal payments on mortgages, notes, and loans payable rose significantly to $(807.5) million in 2024 compared to $(147.6) million in 2023, indicating a substantial increase in debt repayment [359]. - The Company reported a net change in cash, cash equivalents, and restricted cash of $(54.6) million in 2024, compared to $(45.9) million in 2023 [359]. Accounting and Reporting - The company’s internal control over financial reporting was assessed as effective as of December 31, 2024 [325]. - The Company has evaluated all material events occurring subsequent to the date of the Consolidated Financial Statements up to the filing date of the Annual Report [368]. - The company is evaluating the impact of recently issued accounting standards on its financial statement presentation and disclosures [445]. - The Company assesses impairment indicators for its assets, including significant decreases in sales pace or average selling prices, and significant increases in expected development costs [393]. - The Company recognizes only the portion of the improved land sale where the improvements are fully satisfied based on a cost input method [431]. Miscellaneous - The spinoff of Seaport Entertainment Group Inc. was completed on July 31, 2024, with stockholders receiving one share of SEG for every nine shares of HHH held [363][364]. - The Company completed the spinoff of Seaport Entertainment Group Inc. in 2024, which included all assets from the previously reported Seaport segment [381]. - The company continues to provide a full backstop guaranty for SEG's outstanding mortgage related to its 250 Water Street property [452]. - An impairment charge of $709.5 million was recorded in 2023 related to the Seaport segment, now reported in discontinued operations [487].
Howard Hughes (HHH) - 2024 Q4 - Annual Report