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HHC - Howard Hughes Corp


hyten1

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Found this link on the HHC investors page.  Good article (maybe it is already posted elsewhere on Ackman related companies).  Wouldn't surprise me with the way Ackman speaks about HHC if he did try to transform the company once they spin out the income producing assets into a REIT.  Whether they continue to invest in real estate assets only or turn the company into a hold co for other investments will be interesting to see.  Doesn't have anything to do with the thesis for HHC at this time, but is interesting to consider. 

 

http://www.forbes.com/sites/antoinegara/2015/05/06/bill-ackman-baby-buffett-howard-hughes/

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  • 4 weeks later...

Just wondering if anyone has thoughts on HHC lately - shares have been quite weak, due presumably to concerns about oil price impacting the Houston assets.

 

Also curious if anyone knows how we should think about the impact of higher rates on HHC and whether concerns about rising rates are another factor impacting HHC.

 

Then of course there are always noises about the so called community's objections to HHC's South Seaport proposals.

 

Thanks...

 

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Seems like Howard Hughes can't get a break with their Seaport development.  They canned the 52 st tower, the 42 st tower, now the hotel/mixed use concept is tabled as well.  In a separate article, some have speculated that Howard Hughes doesn't have the political and local connections like a Tishman and related company to get projects to move forward. 

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In case anyone cares -

 

NEW YORK--(BUSINESS WIRE)--The Howard Hughes Corporation® (NYSE: HHC) announced the closing yesterday of the sale of 80 South Street to China Oceanwide Holdings for $390 million. The company expects to recognize a pre-tax gain of approximately $140 million during the quarter ended March 31, 2016. The 42,694 square foot zoning lot adjacent to the Historic District at the Seaport is capable of supporting 817,784 square feet of fully entitled development rights.

 

http://www.businesswire.com/news/home/20160317005365/en/Howard-Hughes-Corporation%C2%AE-Completes-Sale-80-South

 

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In case anyone cares -

 

NEW YORK--(BUSINESS WIRE)--The Howard Hughes Corporation® (NYSE: HHC) announced the closing yesterday of the sale of 80 South Street to China Oceanwide Holdings for $390 million. The company expects to recognize a pre-tax gain of approximately $140 million during the quarter ended March 31, 2016. The 42,694 square foot zoning lot adjacent to the Historic District at the Seaport is capable of supporting 817,784 square feet of fully entitled development rights.

 

http://www.businesswire.com/news/home/20160317005365/en/Howard-Hughes-Corporation%C2%AE-Completes-Sale-80-South

 

 

great thanks  ;)

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Howard Hughes is hosting an OPUS festival in Columbia, MD.  The admission is free. 

 

Is there anyone that live in the DC/Baltimore/Columbia area that may want to attend this event and share their findings.  I would love to hear your thoughts on the event.  I can arrange to make a small donation to your charity as an added incentive.   

 

http://opusmerriweather.com/

http://www.businesswire.com/news/home/20170830005919/en/Howard-Hughes-Corporation%C2%AE-Launch-OPUS-Festival-Columbia

 

 

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From Whitney Tilson's latest email to investors:

 

1) I have invested my children's college accounts in 50% Berkshire (BRK.A, BRK.B), 25% Howard Hughes Corp. (NYSE:HHC), and 25% split evenly among Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Facebook (NASDAQ:FB).

 

https://seekingalpha.com/article/4152156-whitney-tilson-puts-childrens-college-savings-berkshire-howard-hughes-corp-fa-n-g

 

 

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I find it funny that Seritage has 57 pages and HHC has 7 pages.  Shares trades below its 2014 high of $160.  But a lot of value has been created since 2013/2014 with the condos in Hawaii built and sold, residential lots in The Woodlands, The Bridgelands, and Summerlin sold, South Street Seaport about to open (in stages) in 2018.  The O&G crisis is the reason why the shares trades where it trades at today. 

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I find it funny that Seritage has 57 pages and HHC has 7 pages.  Shares trades below its 2014 high of $160.  But a lot of value has been created since 2013/2014 with the condos in Hawaii built and sold, residential lots in The Woodlands, The Bridgelands, and Summerlin sold, South Street Seaport about to open (in stages) in 2018.  The O&G crisis is the reason why the shares trades where it trades at today.

 

It is interesting that a few years ago - many people who were sort of challenging the long investors thesis - were sort of questioning whether the values of some of these properties were really what the longs were claiming they were.  Subsequent events have sort of shown that those properties - like the Hawaii specifically but also Summerlin in Vegas and others - really are as valuable as HHC's proponents claimed - yet the stock is cheaper now than it was then.  That is kind of interesting.

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I think HHC is a 10-20 year hold.  As I have gotten older, I have come to appreciate the ability to hold something for 10 years.  That means that you're not constantly having to find new ideas every calendar year.  I think it's got a 10 year runway where you can compound at 10-15%.  In a shorter time frame, it's likely a double a 3 years (I'm using a $125 share price).  With the Trump policies, I think The Woodlands, TX and Summerlin becomes more attractive when you view it from a 10 year horizon.  One of the better management team that I've seen in a while. 

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I do think that if the market crash like it did in 2008/2009, HHC NPV drops.  Now I said NPV, not necessarily intrinsic value.  The same lots etc are still very valuable.  It pushes out the time table 3-5 years.  The management team has a lot of discipline where they won't sell lots in a bear market. Or sell enough to cover overhead and no more. 

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i'm still holding, it is almost 8 years  :) and :(

 

Well, I think the first 3 years were awesome and the last 5 has been muddling along.  But overall a 3-4 bagger in 8 years, not too shabby.  Frankly, I think the stock got ahead of itself in 13 and 14.  Since then, the developments and increase in NAV have caught up to the price a bit. 

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I find it funny that Seritage has 57 pages and HHC has 7 pages. 

 

I made the same comment in the Seritage thread.  I suspect Buffett plus a superficially easier to model business explains Seritage's greater appeal.  But I don't think it's a close question whether you'd rather own Seaport + Ward Village + Summerlin + Woodlands + 50 N. Wacker, et al. for the next 20 years over Seritage's collection of assets.

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I find it funny that Seritage has 57 pages and HHC has 7 pages. 

 

I made the same comment in the Seritage thread.  I suspect Buffett plus a superficially easier to model business explains Seritage's greater appeal.  But I don't think it's a close question whether you'd rather own Seaport + Ward Village + Summerlin + Woodlands + 50 N. Wacker, et al. for the next 20 years over Seritage's collection of assets.

 

I agree with you.....but I'm not sure how relevant the comparison is unless price is factored in. HHC's EV is nearly $8B, SRG's is $3.1B.

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