NYSE$HHH

Howard Hughes Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Howard Hughes reported solid fourth quarter and full-year 2022 results, with strong performance across all segments, including record condo sales and residential land prices.

The Howard Hughes Corporation reported a net income of $52.8 million for the fourth quarter of 2022, with diluted EPS of $1.07. Full-year net income reached $184.5 million, or $3.65 per diluted share, driven by record condo sales and strong Master Planned Community earnings.

  • Net income per diluted share for Q4 2022 was $1.07, compared to $2.09 in the prior-year period.
  • MPC EBT totaled $77 million in Q4, driven by strong land sales and record quarterly residential price per acre sold.
  • Ward Village closed on 159 condo units, generating $217 million in net revenue in Q4.
  • The company closed on nearly $1 billion in financings, reducing maturities in 2023 and 2024 to $228 million.

Headline financials

Total Revenue

$482M

No prior period
EPS (adj)

$1.07

No prior period
MPC EBT

$76.7M

No prior period
Total Operating Assets NOI

$55.1M

No prior period
Residential acres sold

108

No prior period
Residential price per acre

$856K

No prior period
New homes sold

251

No prior period
Multifamily NOI

$10.8M

No prior period
Retail NOI

$13M

No prior period
Office NOI

$27.9M

No prior period
Capital Expenditures

-$13.8M

No prior period
Free Cash Flow

$91.9M

No prior period
Net Income

$53.4M

No prior period
Operating Income

$136M

No prior period
Cash & Equivalents

$627M

No prior period
Total Assets

$9.6B

No prior period

Revenue & EPS history

Howard Hughes · Revenue · Quarterly

$482M

Q4 2022
Beat estimate in 2 of 4 quarters(50%)
ActualEstimate

Revenue by segment

Howard Hughes · $482M total across 5 segments · Q4 2022

  • Condominium rights and unit sales
    $217M
  • Master Planned Communities land sales
    $117M
  • Rental revenue
    $103M
  • Other land, rental, property revenues
    $24.6M
  • Builder price participation
    $19.9M

Forward guidance

For 2023, The Howard Hughes Corporation anticipates a decline in MPC EBT, relatively flat Operating Assets NOI, and specific ranges for condo sales revenues and cash G&A, reflecting ongoing market uncertainties.

Tailwinds

  • Operating Assets NOI is projected to benefit from multi-family rent growth and new developments encompassing nearly 1,400 units.
  • The office portfolio is expected to benefit from strong leasing momentum experienced throughout 2022.
  • Victoria Place, a major condo project, is on track to be delivered in early 2024 and is already 100% pre-sold.
  • The company's unmatched landbank in highly desirable communities and exceptional portfolio of assets position it well for future growth.
  • Robust balance sheet with over $1.3 billion in recent financings uniquely positions the company to advance new developments.

Headwinds

  • MPC EBT is expected to decline 25% to 35% year-over-year due to a slowing housing market, rising mortgage rates, and shrinking home affordability.
  • Operating Assets NOI is expected to be in a range of down 2% to up 2% year-over-year, excluding divested retail assets.
  • Office NOI is likely to see a modest year-over-year decline due to free rent periods on new leases and the impact of tenant vacancies in 2022.
  • Condo sales revenues are projected to range between $45 million and $55 million, driven by remaining units at 'A'ali'i and Kōʻula.
  • Cash G&A is projected to range between $80 million and $85 million, excluding anticipated non-cash stock compensation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+0.7%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.2%

Avg return

30 days after

45%

5 / 11 earnings

Positive

+11.3%

Q3 2025

Best reaction

-9.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.5%+1.0%+2.4%
Q4 2025-9.7%-11.5%-25.0%
Q3 2025+11.3%+7.3%+6.5%
Q2 2025+1.7%+4.7%+14.1%
Q1 2025+1.8%+4.3%-0.1%
Q4 2024+0.4%-0.2%+0.3%
Q3 2024-0.4%-1.6%-2.0%
Q2 2024+0.0%-0.4%+13.8%
Q1 2024+0.0%-8.1%-10.3%
Q4 2022+0.0%-3.1%-4.1%
Q3 2022-1.2%-3.1%+2.6%

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