Howard Hughes Corporation

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For the company that used this name from 1994 to 2010, see Summa Corporation.
Howard Hughes Holdings Inc.
Company typePublic
IndustryReal estate development
Founded2010; 14 years ago (2010)
HeadquartersThe Woodlands, Texas, U.S.
Key people
RevenueDecrease US$1.02 billion[3] (2023)
Decrease −US$528 million[3] (2023)
Decrease −US$552 million[3] (2023)
Total assetsDecrease US$9.58 billion[3] (2023)
Total equityDecrease US$2.99 billion[3] (2023)
OwnerPershing Square Capital Management (31%)[1]
Number of employees
795[3] (2023)
Websitehowardhughes.com

Howard Hughes Holdings Inc., formerly 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 on several master-planned communities. It took 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]

The company acquired its sixth master-planned community in 2021, purchasing the 37,000-acre Douglas Ranch development in the Phoenix area (later renamed to Teravalis) for $600 million.[14]

In 2023, HHC reorganized itself as a holding company named Howard Hughes Holdings, with the Howard Hughes Corporation as a subsidiary.[15] It then moved its entertainment-related properties into a new division, Seaport Entertainment, which it planned to spin off to shareholders by the end of 2024.[16][17] Seaport Entertainment's assets would include the South Street Seaport in Manhattan, the Las Vegas Aviators baseball team, the air rights to develop a casino at Fashion Show Mall on the Las Vegas Strip, and a minority stake in Jean-Georges Restaurants.[16]

Current properties[edit]

The company divides its properties into four segments: master planned communities, operating assets, the Seaport District, and strategic developments.[18]

Master planned communities[edit]

The company has six master planned communities, with a total of approximately 35,000 acres (14,000 ha) of land remaining to be developed or sold.[18]

Operating assets[edit]

This category comprises 73 revenue-generating assets, including retail, office, and multi-family residential properties, most of which are located in the company's six master planned communities.[18] The portfolio includes 11 retail properties with 2.1 million square feet of space; 34 office properties with 6.6 million square feet of space; and 17 apartment complexes with a total of 5,587 units.[19] Notable properties include:

Seaport District[edit]

This segment consists of properties at the South Street Seaport in Manhattan, with 472,000 square feet (43,900 m2) of usable space, including Pier 17, 250 Water Street, and the Tin Building.[19]

Strategic developments[edit]

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

Former properties[edit]

References[edit]

  1. ^ a b Lin, Ed (December 30, 2022). "Bill Ackman's Pershing Square Lifts Stake in Developer Howard Hughes". Barron's. Archived from the original on May 15, 2023.
  2. ^ Trentmann, Nina (December 1, 2020). "Howard Hughes Turns to Finance Chief to Fill CEO Position". The Wall Street Journal.
  3. ^ a b c d e f Form 10-K: Annual Report (Report). U.S. Securities and Exchange Commission. February 27, 2024. pp. 10, 68–69 – 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. ^ Angela Gonzales (October 19, 2021). "Howard Hughes Corp. pays $600M for Douglas Ranch in Buckeye". Phoenix Business Journal. Retrieved 2024-03-02.
  15. ^ "The Howard Hughes Corporation and Howard Hughes Holdings Inc. announce completion of new holding company structure" (Press release). Howard Hughes Holdings. August 11, 2023. Retrieved 2023-10-10 – via PR Newswire.
  16. ^ a b Sean Hemmersmeier (October 6, 2023). "Strip casino proposed at Fashion Show mall". Las Vegas Review-Journal. Retrieved 2023-10-08.
  17. ^ "Howard Hughes Holdings Inc. appoints Anton D. Nikodemus CEO of new entertainment division" (Press release). Howard Hughes Holdings. October 5, 2023. Retrieved 2023-10-08 – via PR Newswire.
  18. ^ a b c d Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 27, 2024. pp. 4–8 – via EDGAR.
  19. ^ a b Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 27, 2024. pp. 27–34 – via EDGAR.

External links[edit]

  • Howard Hughes Holdings
  • Business data for Howard Hughes Holdings Inc.:
  • Light-duty/civilian part of Hughes Helicopters, sold off by McDonnell-Douglas in 1995
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