Howard Hughes Holdings Inc. (HHH), a pure-play real estate company, focuses on its core businesses and development of its master planned communities (MPCs).
On July 31, 2024, the spinoff of Seaport Entertainment Group Inc. and the company’s subsidiaries (Seaport Entertainment or SEG) was completed.
The company’s assets include one of the nation's largest portfolios of master planned communities (MPCs), spanning approximately 101,000 gross acres, as well as operating properties, strategic devel...
Howard Hughes Holdings Inc. (HHH), a pure-play real estate company, focuses on its core businesses and development of its master planned communities (MPCs).
On July 31, 2024, the spinoff of Seaport Entertainment Group Inc. and the company’s subsidiaries (Seaport Entertainment or SEG) was completed.
The company’s assets include one of the nation's largest portfolios of master planned communities (MPCs), spanning approximately 101,000 gross acres, as well as operating properties, strategic developments, and other assets across five states. The company creates some of the most sought-after communities in the country by curating an environment tailored to meet the needs of its residents and tenants.
The company operates through three business segments: Operating Assets, MPCs, and Strategic Developments. It creates a continuous value-creation cycle through operational and financial synergies associated with these three business segments. In the company’s MPC segment, it plans, develops, and manages small cities and large-scale, mixed-use communities, in markets with strong long-term growth fundamentals. This business focuses on the horizontal development of residential land. The company builds these commercial properties through its Strategic Developments business at the appropriate times. Once the commercial developments are completed, the assets transition to the company’s Operating Assets segment, which increases recurring Net Operating Income (NOI), further funding its Strategic Developments. New office, retail, and other commercial amenities make the company’s MPC residential land more appealing to buyers and increase the velocity of land sales at premiums that typically exceed the broader market.
The company’s assets are located across the United States, with the vast majority of the assets in its Operating Assets segment located within its MPCs. The company’s MPCs, including Floreo, its unconsolidated joint venture, span approximately 101,000 gross acres, with approximately 21,000 residential acres of land remaining to be developed and sold in high-demand geographic areas. In addition to the residential land, the company’s MPC segment contains approximately 14,000 acres designated for commercial development or sale to non-competing users, such as hospitals. This land is held in its MPC segment until it identifies demand for a new commercial development, at which point the land is transitioned into its Strategic Developments segment.
Operating Assets
As of December 31, 2024, the company had 74 Operating Assets, including its investments in unconsolidated ventures, consisting of 12 retail properties, 36 office properties, 17 multifamily properties, and 9 other operating properties or investments. Excluding the company’s projects under construction, it owns approximately 9.2 million square feet of retail and office space and 5,587 multifamily units.
In 2024, the company completed the sale of four non-core ground leases, a medical office building in The Woodlands, and a retail property in Bridgeland.
The company generally transfers an operating asset that is being repositioned or redeveloped into its Strategic Developments segment when it closes operations at a property and/or begins construction on the redevelopment project. Upon completion of construction or renovation of a development or redevelopment, the asset is fully or partially placed in service and transferred back into the company’s Operating Assets segment.
Master Planned Communities
As of December 31, 2024, the company’s portfolio of MPCs consisted of Summerlin in Las Vegas; The Woodlands, The Woodlands Hills, and Bridgeland in the Houston region; and Teravalis in the Phoenix region. The company’s MPC segment includes the development and sale of residential and commercial land, primarily in large-scale, long-term projects. These developments often require decades of investment and continued focus on the changing market dynamics surrounding these communities.
Summerlin and Bridgeland were again ranked by Robert Charles Lesser & Co., LLC (RCLCO), capturing fifth and seventh top-selling master planned communities in the nation, respectively, for the year ended December 31, 2024.
As of December 31, 2024, the company’s MPCs, which included Floreo, its unconsolidated joint venture, encompassed approximately 101,000 gross acres of land and included approximately 35,000 acres of land available for sale or development. Residential sales, which are generated primarily from the sale of finished lots and undeveloped superpads to residential homebuilders and developers, include standard and custom parcels designated for detached and attached single-family homes and range from entry-level to luxury homes. Superpad sites are generally 10- to 25-acre parcels of unimproved land where the company develops and constructs the major utilities (water, sewer, and storm drainage) and roads to the borders of the parcel, and the homebuilder completes the on-site utilities, roads, and finished lots.
The company also occasionally sells or leases land for commercial development. Commercial sales include land parcels designated for retail, office, hospitality, high-density residential projects (condominiums and apartments), services, and other for-profit activities, as well as those parcels designated for use by government, schools, and other not-for-profit entities.
The Summit
Within its Summerlin MPC, an exclusive luxury community named The Summit is being developed and managed through a joint venture with Discovery Land Company, a leading developer of luxury communities and private clubs. The original 555-acre community, which is expected to include approximately 245 homes and 32 condominiums, is nearing completion. In 2022, the company contributed an additional 54 acres to The Summit adjacent to the existing Summit community to develop approximately 28 custom home sites.
Floreo
Floreo, the first village to be developed in the company’s Teravalis MPC, is being developed and managed through a 50% joint venture. The 3,029-acre village is located in the greater Phoenix, Arizona area and is expected to consist of approximately 5,000 residential lots, commercial sites, as well as a planned business park. The first land sales closed in the first quarter of 2024.
Strategic Developments
The company’s Strategic Developments segment consists of 15 development or redevelopment projects, including developments within its MPCs that will transition to Operating Assets upon completion and condominium towers at Ward Village in Hawai‘i and The Woodlands. Many of these developments require extensive planning and expertise in large-scale and long-range development to maximize their highest and best uses. The strategic process is complex and unique to each asset and requires ongoing assessment of the changing market dynamics prior to the commencement of construction. The company must study each local market, determine the highest and best use of the land and necessary improvements to the area, obtain entitlements and permits, complete architectural design and construction drawings, secure tenant commitments, and obtain and commit sources of capital.
The company is in various stages of predevelopment or execution of its strategic plans for many of these assets based on market conditions. As of December 31, 2024, eight properties were under construction and not yet placed into service. The company generally obtains construction financing to fund a significant amount of the costs associated with developing these assets.
Ward Village: The company continues to transform Ward Village into a vibrant neighborhood offering unique retail experiences, dining, and entertainment, along with exceptional residences and workforce housing set among open public spaces and pedestrian-friendly streets.
History
Howard Hughes Holdings Inc., a Delaware corporation, was founded in 2010. The company was incorporated in 2010.