Howard Hughes Corporation

The Howard Hughes Corporation is a real estate development and management company based in The Woodlands, Texas. It was formed in 2010 as a spin-off from General Growth Properties (GGP). Most of its holdings are focused around several master-planned communities. It takes its name from the original Howard Hughes Corporation, which had developed the planned community of Summerlin, Nevada and later became a subsidiary of GGP.

For the company that used this name from 1994 to 2010, see Summa Corporation.
The Howard Hughes Corporation
TypePublic company
IndustryReal estate development
Founded2010 (2010)
HeadquartersThe Woodlands, Texas, U.S.
RevenueUS$699 million[1] (2020)
US$−119 million[1] (2020)
US$−3 million[1] (2020)
Total assetsUS$9.1 billion[2] (2020)
Total equityUS$3.7 billion[2] (2020)
Number of employees
600[3] (2020)
Websitehowardhughes.com

History

General Growth Properties filed for Chapter 11 bankruptcy protection in 2009.[4] The company proposed a reorganization plan that included spinning off a new company named General Growth Opportunities, which would include those properties that had long-term development potential but little or no income.[5] The name of the proposed spin-off was later changed to The Howard Hughes Corporation (HHC).[6] The spin-off of HHC to GGP's shareholders was completed on November 9, 2010, when GGP exited bankruptcy.[7][8] The new company held a portfolio that included GGP's master planned communities, mixed-use developments, and undeveloped land.[8] Hedge fund manager Bill Ackman was appointed chairman of the new company.[7]

In 2019, in response to investor disappointment with the company's stock price, HHC conducted a review of strategic options, including the possibility of selling the company.[9][10] Ultimately, the company announced a "transformation plan", under which it would focus on its master-planned communities and sell off $2 billion of non-core assets.[11][12] HHC moved its headquarters from Dallas to The Woodlands in 2020 as a cost-cutting measure under this plan.[13]

Current properties

The company divides its properties into four segments: master planned communities, operating assets, the Seaport District, and strategic developments.[14]

Master planned communities

The company has five master planned communities, with a total of approximately 10,000 acres (4,000 ha) of land remaining to be developed or sold.[14]

Operating assets

This category comprises 76 revenue-generating assets, including retail, office, multi-family residential, and hotel properties, most of which are located in the company's five master planned communities.[14] The portfolio includes 15 retail properties with 2.7 million square feet of space; 33 office properties with 7.7 million square feet of space; 12 apartment complexes with a total of 3,840 units; and 3 hotel properties with a total of 909 rooms.[15] Notable properties include:

Seaport District

This segment consists of properties at the South Street Seaport in Manhattan.

Strategic developments

The company lists 18 strategic projects, in various stages of development.[14] Notable projects include:

References
  1. Form 10-K: Annual Report (Report). Howard Hughes Corporation. March 24, 2021. p. 76 – via EDGAR.
  2. Form 10-K: Annual Report (Report). Howard Hughes Corporation. March 24, 2021. p. 75 – via EDGAR.
  3. Form 10-K: Annual Report (Report). Howard Hughes Corporation. March 24, 2021. p. 7 – via EDGAR.
  4. Steve Green (April 15, 2009). "General Growth files for bankruptcy; malls likely stay open". Las Vegas Sun. Retrieved 2018-02-25.
  5. Dale Kasler (February 25, 2010). "New firm could get stalled mall". Sacramento Bee – via NewsBank.
  6. Steve Green (October 8, 2010). "General Growth's new real estate business: Howard Hughes Corporation". Las Vegas Sun. Retrieved 2018-02-25.
  7. "General Growth exits Chapter 11 after 19 months". Associated Press. November 10, 2010 – via NewsBank.
  8. "General Growth Properties completes spinoff of The Howard Hughes Corporation" (Press release). General Growth Properties. November 9, 2010. Retrieved 2018-02-25 – via BusinessWire.
  9. "Howard Hughes considers selling itself amid strategic review". Dallas Business Journal. June 27, 2019. Retrieved 2021-11-13.
  10. Jeff Jeffrey (October 22, 2019). "Behind the deal: Howard Hughes Corp. considered whole-company sale". Houston Business Journal. Retrieved 2021-11-13.
  11. "The Howard Hughes Corporation announces transformation plan and new leadership following strategic review process" (Press release). The Howard Hughes Corporation. October 21, 2019 – via EDGAR.
  12. Nancy Sarnoff (October 21, 2019). "Howard Hughes Corp. to move HQ to The Woodlands amid restructuring". Houston Chronicle. Retrieved 2021-11-13.
  13. Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 25, 2021. p. 4 – via EDGAR.
  14. Form 10-K: Annual Report (Report). The Howard Hughes Corporation. March 24, 2021. pp. 8–9 – via EDGAR.
  15. Form 10-K: Annual Report (Report). The Howard Hughes Corporation. March 24, 2021. pp. 26–31 – via EDGAR.
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