HHC
The Howard Hughes Corp
Finance/Real Estate
06/08/2015
Presented
| Date | 06/04/2015 |
| Price | $142.99 |
| Market Cap | N/A |
| Ent Value | $7.32B |
| P/E Ratio | N/A |
| Book Value | $53.72 |
| Div Yield | N/A |
| Shares O/S | 394.65M |
| Ave Daily Vol | 130,000 |
| Short Int | 2.58% |
Current
| Price | $76.67 |
| Market Cap | $3.85B |
| The Howard Hughes Corporation develops and operates master planned communities, and mixed-use and other real estate properties in the United States. It operates in three segments: Master Planned Communities, Operating Assets, and Strategic Developments. The Master Planned Communities segment develops and sells residential and commercial land. It sells residential land designated for detached and attached single- and multi-family homes ranging from entry-level to luxury homes to home builders; and commercial land parcels designated for retail, office, resort, services, and other for-profit activities, as well as parcels designated for use by government, schools, and other not-for-profit entities. This segment also owns 5 master planned communities with approximately 13,000 acres of land. The Operating Assets segment owns retail and office properties, multi-family apartment buildings, a resort and conference center, a 36-hole golf and country club, and other operating assets and investments. The Strategic Development segment comprises near, medium, and long-term real estate properties and development projects. This segment’s real estate opportunities consist of mixed-use commercial development, retail component, office buildings, multi-family projects, mall development projects, redevelopment projects, and other property interests. The Howard Hughes Corporation is headquartered in Dallas, Texas. |
Publicly traded companies mentioned herein: Cousins Properties Inc (CUZ), General Growth Properties Inc (GGP), The Howard Hughes Corporation (HHC), Taylor Morrison Home Corp (TMHC)
Highlights
The Howard Hughes Corporation (HHC) owns great assets, and the presenter was complimentary of the manner in which the restructuring of General Growth Properties was handled, and how Bill Ackman and the team at General Growth formed and spun-off the developer and operator of master planned communities (MPCs) and mixed-use properties (2010). However, after a run from $30 (when the company was spun-off) to $150, HHC’s current market valuation is stretched and the presenter said there a many reasons to be comfortable with a short position. Lofty expectations on the Street have created the potential for investors to be disappointed near term, and based on his due diligence and scenario analysis the downside risk appears to be to the $95 - $105 range.
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