Howard Hughes Corporation

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The Howard Hughes Corporation
TypePublic company
IndustryReal estate development
Founded2010; 12 years ago (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

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.

History[edit]

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[edit]

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

Master planned communities[edit]

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[edit]

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[edit]

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

Strategic developments[edit]

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

References[edit]

  1. ^ a b c Form 10-K: Annual Report (Report). Howard Hughes Corporation. March 24, 2021. p. 76 – via EDGAR.
  2. ^ a b 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. ^ a b "General Growth exits Chapter 11 after 19 months". Associated Press. November 10, 2010 – via NewsBank.
  8. ^ a b "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. ^ a b c d 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.

External links[edit]