Stock in action: The Howard Hughes Corporation (NYSE: HHC)

Shares of The Howard Hughes Corporation (HHC) closed the trading at a price of $139.56 with the positive change of +0.77 percent. In the past session approximately 233,300 shares were exchanged against the average daily trading volume of 223,306 shares. The stock touched to the maximum level of $140.00, and it reached the lower level of $138.79 in past session. The stock’s market capitalization has now valued at $5.999 billion. The stock’s low price in its 52 week is $114.28 per share while $140.38 as the 52 week high price.

The Howard Hughes Corporation ® (HHC) recently declared operating results for the 1st quarter ended March 31, 2018. The financial statements, exhibits and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information, as accessible through the Investors section of our website, provide further details of these results.

First Quarter 2018 Highlights

  • Net income attributable to ordinary stockholders reduced to $1.5Mor $0.03 per diluted share for the 3 months ended March 31, 2018, as contrast to $5.7M, or $0.13 per diluted share, for the three months ended March 31, 2017.
  • Total net operating income (“NOI”) from operating assets was $46.8Mfor the 3-months ended March 31, 2018, and raise of $2.2M or 5.0 percent contrast to $44.5Mfor the 3 months ended March 31, 2017. Adjusting for the impact of the transfer of 110 North Wacker and Ward Warehouse to development, NOI would have raised by an additional $3.0M for a total raise of $5.2M, or 11.7 percent, as a result of raised banquet and events revenue, coupled with strong occupancy across our hospitality assets of 68 percent.
  • Master Planned Communities (“MPC”) section earnings before tax (“EBT”) was $36.8Mfor the 3-months ended March 31, 2018, a decrease of $7.3M or 16.6 percent contrast to the 3 months ended March 31, 2017. The decrease was largely a result of the timing of land sales at Summerlin and Bridgeland.
  • Sold 222 condominiums at Ward Villagein the 1st quarter of 2018, including 183 at ‘A’ali’i, our newest building that began public sales in January 2018. ‘A’ali’i was 24.4 percent presold as of March 31, 2018 and 39.0 percent presold as of April 30, 2018. Not Including ‘A’ali’i, 1,325 homes, or 95.9 percent of the 1,381 residences accessible for sale at our four residential buildings that are either delivered or under construction, were closed or under contract as of March 31, 2018.
  • Began construction in February on the development of the new Las Vegas Ballpark located in Downtown Summerlin for our wholly owned Las Vegas51s Triple-A professional baseball team. Last year, we reported a 20-year, $80.0M naming rights contract for the stadium with the Las Vegas Convention and Visitor’s Authority.
  • Completed demolition and began construction of a new 1.4M square foot office building at 110 North Wacker.  Finalized detailed project capitalization, including both new construction financing and a joint venture joint venture contract.
  • Executed a license contract with renowned Californiawaterfront restaurant Malibu Farm to open its first New York location at Pier 17 in the Seaport District. Founded by acclaimed Chef Helene Henderson, the restaurant is one of the most iconic dining destinations in the Los Angeles
  • Purchased 475,920 shares of our ordinary stock in a private transaction with an unassociated entity at a purchase price of $120.33per share or about $57.3M in the aggregate.

Financial Results

  • During the first quarter of 2018, our total revenues were $161.7M, a decrease of $70.1Mcontrast to the first quarter of 2017, driven by a decline in our Planned Developments section primarily Because of a required change in accounting method as to how we must now recognize revenue in our condominium projects. We adopted the new revenue recognition standard on January 1, 2018, as mandated by the Financial Accounting Standards Board for all public companies. The adoption mandated a change in revenue recognition for our condominium sales from percentage of completion to recognizing revenue and cost of sales for condominiums only after construction is complete and sales to buyers have closed. This change relates only to the timing of revenue recognition and will more closely match the actual cash flows from the sale of units. As a result of this accounting change, condominium revenue will be recognized later than it before had been and will be lumpier as revenue will only be recognized as unit sales close. The substantial majority of our closings have occurred at the time of building completion as a result of presales and units sold while construction is under way. The reduction in revenue from this accounting change and lower MPC land sales during the quarter were partially offset by higher hospitality revenues, raised minimum rents and other rental and property revenues.

The stock price is trading upbeat from its 200 days moving average with 8.39 percent and up from 50 days moving average with 5.15 percent. HHC A look on the firm performance, its monthly performance is 2.80 percent and a quarterly performance of 3.12 percent.


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