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Delaware
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36-4673192
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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Title of each class:
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Trading Symbol(s)
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Name of each exchange on which registered:
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Common stock, par value $0.01 per share
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HHC
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Item No.
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Page
Number
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our “Transformation Plan”, including new executive leadership, reduction in our overhead expenses, the proposed sale of our non-core assets and accelerated growth in our core Master Planned Communities (“MPC”) assets;
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expected performance of our stabilized, income-producing properties and the performance and stabilization timing of properties that we have recently placed into service or are under construction;
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forecasts of our future economic performance;
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expected capital required for our operations and development opportunities for our properties;
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expected performance of our MPC segment;
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expected commencement and completion for property developments and timing of sales or rentals of certain properties;
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estimates of our future liquidity, development opportunities, development spending and management plans; and
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descriptions of assumptions underlying or relating to any of the foregoing.
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our inability to obtain operating and development capital, including our inability to obtain or refinance debt capital from lenders and the capital markets;
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a prolonged recession in the national economy and adverse economic conditions in the homebuilding, condominium development, retail, office and hospitality sectors;
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our inability to compete effectively;
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the successful transition of our new Chief Executive Officer and to execute on our Transformation Plan;
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the successful relocation of our headquarters from Dallas, Texas to The Woodlands, Texas and the retention of senior members of management and key employees in connection with the Transformation Plan;
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the sale of our non-core assets;
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natural disasters (including the results of litigation or any other potential negative impact from Hurricane Harvey on the Houston, Texas region), terrorist activity, acts of violence, breaches of our data security, contamination of our properties by hazardous or toxic substances, or other similar disruptions, as well as losses that are not insured or exceed the applicable insurance limits;
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our ability to lease new or redeveloped space;
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our ability to obtain the necessary governmental permits for the development of our properties and necessary regulatory approvals pursuant to an extensive entitlement process involving multiple and overlapping regulatory jurisdictions, which often require discretionary action by local governments;
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increased construction costs exceeding our original estimates, delays or overruns, claims for construction defects, or other factors affecting our ability to develop, redevelop or construct our properties;
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regulation of the portion of our business that is dedicated to the formation and sale of condominiums, including regulatory filings to state agencies, additional entitlement processes and requirements to transfer control to a condominium association’s board of directors in certain situations, as well as defaults by purchasers on their obligations to purchase condominiums;
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fluctuations in regional and local economies, the residential housing and condominium markets, local real estate conditions, tenant rental rates and competition from competing retail properties and the internet;
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our ability to retain key executive personnel;
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our ability to collect rent, attract tenants and customers to our hotels;
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our indebtedness, including our $1,000,000,000 5.375% senior notes due 2025, our $615,000,000 Term Loan (as defined below) and $85,000,000 Revolver Loan (as defined below) (which currently remains undrawn) and that are secured by
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our directors’ involvement or interests in other businesses, including real estate activities and investments;
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our inability to control certain of our properties due to the joint ownership of such property and our inability to successfully attract desirable strategic partners;
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the potential impact of the recently enacted U.S. tax reform legislation; and
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the other risks described in “Item 1A. Risk Factors.”
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71 assets, including our investments in joint ventures and other assets, consisting of 14 retail, 32 office, nine multi-family, three hospitality properties and 13 other operating assets and investments.
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Excluding our projects under construction, we own approximately 9.0 million square feet of retail and office space, 2,909 multi-family units and 909 rooms in our hospitality assets.
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We own the MPCs of Summerlin in Las Vegas; The Woodlands, The Woodlands Hills and Bridgeland in Houston; and Columbia in Maryland.
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Our MPCs encompass over 80,000 gross acres of land and include approximately 9,943 remaining saleable acres of land.
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Spans across approximately 453,000 square feet and several city blocks, including Pier 17, the Tin Building and the Historic District. The Seaport District also includes the 250 Water Street parking lot and our interest in the 66-room Mr. C Seaport hotel.
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As of December 31, 2019, total project costs, not including insurance proceeds, for Pier 17, the Tin Building and Seaport District Historic Area / Uplands, are estimated to be $832.5 million, of which $654.6 million has already been spent.
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Consists of 21 development or redevelopment projects, excluding the Seaport District.
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As of December 31, 2019, total project costs, excluding the Seaport District, are estimated to be $3.5 billion, of which $2.1 billion has already been spent. Our remaining equity requirements, net of debt and buyer deposits to be drawn, are $74.5 million relative to $422.9 million of cash on hand as of December 31, 2019.
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Management Team with Track Record of Value Creation. We have completed the development of over 5.2 million square feet of office and retail operating properties, 2,516 multi-family units and 909 hospitality keys since 2011. Excluding land which we own, we have invested approximately $2.0 billion in these developments, which is projected to generate a 9.5% yield on cost, or $192.7 million per year of NOI upon stabilization. At today’s market cap rates, this implies value creation to our shareholders in excess of $1.0 billion. Our investment of approximately $444.9 million of cash equity in our development projects since inception, which is computed as total costs excluding land less the related construction debt, is projected to generate a 25.5% return on cash equity assuming a 5.0% cost of debt, which approximates our weighted-average cost. These investments and returns exclude condominium development as well as projects under construction such as the Seaport District. We exclude condominium developments since they do not result in recurring NOI, and we exclude projects under development due to the wider range of NOI they are expected to generate upon stabilization. In Ward Village, we have either opened or have under construction 2,697 condominium units, which have approximately 89.8% units sold as of December 31, 2019 at a targeted profit margin, excluding land costs, of 23.6% or $747.3 million.
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Unique, Diverse Portfolio. We own a portfolio with many diverse market leading assets located across 9 states with a combination of steady cash flow and longer-term value creation opportunities.
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Significant Value Creation Opportunity. We own one of the preeminent development pipelines in the world with over 50.0 million square feet of vertical entitlements remaining across our portfolio. This represents approximately 10 times the 5.2 million square feet we have delivered in the last nine years without having to acquire another development site or external asset, which we believe is a significant competitive advantage over other real estate development corporations.
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Low Leverage, Flexible Balance Sheet. As of December 31, 2019, our total debt equaled approximately 48.7% of the book value of our total assets, which we believe is significantly less than our market value. Our net debt, which includes our share of debt of real estate and other affiliates less cash and Special Improvement District (“SID”) and Municipal Utility District (“MUD”) receivables, equaled approximately 36.6% of our total enterprise value. “Real estate and other affiliates” refers to partnerships or joint ventures primarily for the development and operation of real estate assets. We finished the year with $422.9 million of cash on hand. We have focused our efforts on obtaining non-recourse debt for both our construction financing and long-term fixed-rate mortgage financing and have limited cross-collateralization for construction financing. Our low leverage, with a focus on project specific financing, provides substantial insulation against potential downturns and provides us with the flexibility to evaluate new real estate project opportunities.
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Self-Funded Business Plan. One of our key differentiators is our ability to self-fund significant portions of our new development without having to dispose of our recently completed developments or raise additional equity. Our residential land sales, recurring NOI and profits on the sales of condominium units generate substantial amounts of free cash flow, which is used to fund the equity required to execute our many development opportunities. Furthermore, we are not required to pay dividends and are not restricted from investing in any asset type, amenity or service, providing further flexibility as compared to many other real estate companies, which are limited in their activities because they have elected to be taxed as real estate investment trusts (“REIT”). We believe our structure currently provides significant financial and operating flexibility to maximize the value of our real estate portfolio.
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Geographic
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Operating
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Master Planned
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Seaport
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Strategic
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Region
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Assets
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Communities
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District
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Developments
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Houston
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Retail
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Office
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• Bridgeland
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Under Construction
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• Creekside Park West (a)
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• 100 Fellowship Drive (a)(b)
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• The Woodlands
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• Creekside Park Apartments Phase II
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• Creekside Village Green
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• One Hughes Landing
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• The Woodlands Hills
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• Millennium Phase III Apartments
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• Hughes Landing Retail
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• Two Hughes Landing
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• 8770 New Trails
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• 1701 Lake Robbins
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• Three Hughes Landing
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• Two Lakes Edge
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• Lakeland Village Center at Bridgeland
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• 1725-1735 Hughes Landing
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• Lake Woodlands Crossing Retail (c)
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Boulevard
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Other
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• 20/25 Waterway Avenue
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• 2201 Lake Woodlands Drive
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• Century Park (e)
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• Waterway Garage Retail
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• Lakefront North (d)
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• 2000 Woodlands Parkway
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• 9303 New Trails
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• 3831 Technology Forest
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Multi-family
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Drive
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• Creekside Park Apartments (c)
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• 3 Waterway Square
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• Lakeside Row (a)
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• 4 Waterway Square
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• Millennium Six Pines Apartments (f)
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• The Woodlands Towers at
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• Millennium Waterway Apartments
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The Waterway (e)
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• One Lakes Edge
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• 1400 Woodloch Forest
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Hospitality
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Other
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• Embassy Suites at Hughes Landing
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• HHC 242 Self-Storage
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• The Westin at The Woodlands
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• HHC 2978 Self-Storage
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• The Woodlands Resort &
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• Hughes Landing Daycare (a)(b)
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Conference Center
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• Stewart Title of Montgomery
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County, TX (g)
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• The Woodlands Parking
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Garages
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• Woodlands Sarofim #1 (g)
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• Woodlands Ground Lease
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• The Woodlands Warehouse (e)
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Las Vegas
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Retail
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Office
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• Summerlin
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Other
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• Downtown Summerlin
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• Aristocrat (c)
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• 80% Interest in Fashion
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• One Summerlin
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Other
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Show Air Rights
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Multi-family
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• Two Summerlin (c)
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• The Summit (g)
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• Constellation (f)
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• Tanager Apartments (a)
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Other
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• Hockey Ground Lease
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• Las Vegas Aviators
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• Las Vegas Ballpark (a)(h)
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• Summerlin Hospital Medical
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Center (g)
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Columbia
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Retail
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Office
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• Columbia
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Under Construction
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• Columbia Regional Building
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• 10-70 Columbia Corporate
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• Merriweather District Area 3
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Center
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Standalone Restaurant
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Multi-family
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• Columbia Office Properties
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• Juniper Apartments (i)
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• The Metropolitan Downtown
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• One Mall North
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Columbia (g)
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• One Merriweather
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Other
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• m.flats/TEN.M (c)(g)
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• Two Merriweather
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• American City Building (j)
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• 6100 Merriweather (a)
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• Ridgely Building (j)
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• Sterrett Place (j)
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New York
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Retail
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• Seaport District Historic Area/
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Uplands
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• Pier 17 (c)
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Multi-family
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• 85 South Street
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Hospitality
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• Mr. C Seaport (c)(g)
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• Bar Wayo (g)
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Under Construction
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• Tin Building
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Other
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• 250 Water Street
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Geographic
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Operating
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Master Planned
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Seaport
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Strategic
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Region
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Assets
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Communities
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District
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Developments
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Honolulu
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Retail
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Other
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Under Construction
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• Ward Village Retail (k)
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• Kewalo Basin Harbor
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• ‘A‘ali‘i
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• Kō'ula
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Unsold Condominium Inventory
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• Anaha
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• Waiea
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Other
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Retail
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Under Construction
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• Outlet Collection at Riverwalk
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• 110 North Wacker (l)
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Other
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• Circle T Ranch and Power Center (g)
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• The Elk Grove Collection
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• Landmark Mall
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• Maui Ranch Land
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• Monarch City
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(a)
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Asset was placed in service and moved from Strategic Developments to Operating Assets during 2019.
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(b)
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Asset was derecognized and a Net investment in lease receivable was recorded during 2019. Refer to Note 1 - Summary of Significant Accounting Policies for additional information.
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(c)
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Asset was placed in service and moved from Strategic Developments to Operating Assets during 2018.
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(d)
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Lakefront North is comprised of two office buildings.
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(e)
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Asset was acquired in 2019.
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(f)
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Asset was held as a joint venture until our acquisition of our partner’s interest.
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(g)
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A non-consolidated investment. Refer to Note 2 - Real Estate and Other Affiliates in our Notes to Consolidated Financial Statements.
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(h)
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Formerly known as Summerlin Ballpark.
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(i)
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Formerly known as Columbia Multi-family.
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(j)
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Assets demolished and represent future development rights.
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(k)
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Includes retail within the recently opened Waiea, Anaha, Ae‘o and Ke Kilohana condominium towers.
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(l)
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Asset is in redevelopment and moved from Operating Assets to Strategic Developments during 2018.
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the size and scope of our MPCs;
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years of experience serving and strong reputation within the industry;
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the recreational and cultural amenities available within our communities;
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the commercial centers in the communities, including the properties that we own and/or operate or may develop;
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our relationships with homebuilders;
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our level of debt relative to total assets; and
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the proximity of our developments to major metropolitan areas.
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the disruption of operations and displacement of revenue at operating hotels, including revenue lost while rooms, restaurants or meeting space under renovation are out of service;
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the cost of funding renovations or developments and inability to obtain financing on attractive terms;
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the return on our investment in these capital improvements or developments failing to meet expectations;
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governmental restrictions on the nature or size of a project or the inability to obtain all necessary zoning, land use, building, occupancy and construction permits; and
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disputes with franchisors or property managers regarding compliance with relevant franchise agreements or management agreements.
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inability to obtain construction financing for the development or redevelopment of properties;
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increased construction costs for a project that exceeded our original estimates due to increases in materials, labor or other costs, which could make completion of the project less profitable because market rents or condominium prices may not increase sufficiently to compensate for the increased construction costs;
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construction delays, which may increase project development costs;
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claims for construction defects after a property has been developed;
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poor performance or nonperformance by any of our joint venture partners or other third parties on whom we rely;
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health and safety incidents and site accidents;
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easement restrictions which may impact our development costs and timing;
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compliance with building codes and other local regulations; and
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the inability to secure tenants necessary to support commercial projects.
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making it more difficult for us to satisfy our obligations with respect to our indebtedness, including the Senior Notes and Loan Agreements;
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limiting our ability to obtain additional financing to fund future working capital, capital expenditures, debt service requirements, execution of our business strategy or finance other general corporate requirements;
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requiring us to make non-strategic divestitures, particularly when the availability of financing in the capital markets is limited, which may adversely impact sales prices;
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requiring a substantial portion of our cash flow to be allocated to debt service payments instead of other business purposes, thereby reducing the amount of cash flow available for working capital, capital expenditures, acquisitions, dividends and other general corporate purposes;
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increasing our vulnerability to general adverse economic and industry conditions, including increases in interest rates, particularly given that certain indebtedness bears interest at variable rates;
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limiting our ability to capitalize on business opportunities, reinvest in and develop properties, and to react to competitive pressures and adverse changes in government regulations;
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placing us at a disadvantage compared to other, less leveraged competitors;
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limiting our ability, or increasing the costs, to refinance indebtedness; and
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resulting in an event of default if we fail to satisfy our obligations under our indebtedness, which default could result in all or part of our indebtedness becoming immediately due and payable and, in the case of our secured debt, could permit the lenders to foreclose on our assets securing such debt.
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incur indebtedness or issue certain equity;
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create certain liens;
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pay dividends on, redeem or repurchase capital stock or make other restricted payments;
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make investments;
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incur obligations that restrict the ability of our subsidiaries to make dividend or other payments to us;
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consolidate, merge or transfer all, or substantially all, of our assets;
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enter into transactions with our affiliates; and
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create or designate unrestricted subsidiaries.
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incur further indebtedness
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distribute cash generated from borrowers if financial coverage ratios or other covenants are not met
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enter into or amend lease or other agreements or transactions without lender consent
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substitute collateral due to product and geographic concentrations
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results of operations that vary from the expectations of securities analysts and investors, including our ability to finance and achieve operational success at the Seaport District project;
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results of operations that vary from those of our competitors;
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changes in expectations as to our future financial performance, including financial estimates and investment recommendations by securities analysts and investors;
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declines in the market prices of stocks generally, particularly those in the real estate industry;
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strategic actions by us or our competitors;
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announcements by us or our competitors of new significant real-estate developments, acquisitions, joint ventures, other strategic relationships, or capital commitments;
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changes in general economic or market conditions, including increases in interest rates, or trends in our industry or markets;
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changes in business or regulatory conditions;
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future sales of our common stock or other securities;
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investor perceptions or the investment opportunity associated with our common stock relative to other investment alternatives;
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the successful transition of our new Chief Executive Officer and the services and contribution of our other senior management and key employees to execute on our Transformation Plan and to identify new opportunities;
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the sale of our non-core assets;
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the public’s response to press releases or other public announcements by us or third parties, including our filings with the Securities and Exchange Commission;
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announcements relating to litigation;
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guidance, if any, that we provide to the public, any changes in this guidance, or our failure to meet this guidance;
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the development and sustainability of an active trading market for our stock;
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changes in accounting principles;
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events or factors resulting from natural disasters, such as the impact of Hurricane Harvey in the Houston, Texas area; and
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other events or factors, including those resulting from war, acts of terrorism, or responses to these events.
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the inability of our stockholders to act by written consent;
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restrictions on the ability of stockholders to call a special meeting without 15% or more of the voting power of the issued and outstanding shares entitled to vote generally in the election of our directors;
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rules regarding how stockholders may present proposals or nominate directors for election at stockholder meetings;
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the right of our board of directors to issue preferred stock without stockholder approval;
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a requirement that, to the fullest extent permitted by law, certain proceedings against or involving us or our directors or officers be brought exclusively in the Court of Chancery in the State of Delaware; and
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that certain provisions may be amended only by the affirmative vote of at least 66 2/3% of the shares of common stock entitled to vote generally in the election of directors.
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Retail Properties
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Location
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Rentable Sq.Ft./Units
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% Leased
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Annualized Base Rent
(In thousands) (a) |
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Annualized Base Rent Per Square Foot (a)
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Year Built / Acquired / Last Renovated
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The Woodlands
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Creekside Park West
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The Woodlands, TX
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72,264
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(b)
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59.0
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%
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$
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—
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$
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—
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2019
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Creekside Village Green
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The Woodlands, TX
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74,670
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89.0
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2,040
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30.18
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2015
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Hughes Landing Retail
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The Woodlands, TX
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126,131
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100.0
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4,039
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32.02
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2015
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1701 Lake Robbins
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The Woodlands, TX
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12,376
|
|
|
|
|
100.0
|
|
508
|
|
|
41.03
|
|
|
2014
|
||
Lake Woodlands Crossing Retail
|
|
The Woodlands, TX
|
|
60,261
|
|
|
|
|
90.6
|
|
1,600
|
|
|
29.32
|
|
|
2018
|
||
20/25 Waterway Avenue
|
|
The Woodlands, TX
|
|
50,062
|
|
|
|
|
76.0
|
|
1,379
|
|
|
37.53
|
|
|
2007 / 2009
|
||
Waterway Garage Retail
|
|
The Woodlands, TX
|
|
21,513
|
|
|
|
|
78.0
|
|
625
|
|
|
37.44
|
|
|
2011
|
||
2000 Woodlands Parkway
|
|
The Woodlands, TX
|
|
7,900
|
|
|
|
|
100.0
|
|
243
|
|
|
30.75
|
|
|
1996
|
||
|
|
|
|
425,177
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Lakeland Village Center at Bridgeland
|
|
Cypress, TX
|
|
83,488
|
|
|
|
|
88.0
|
|
1,641
|
|
|
30.40
|
|
|
2016
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Columbia Regional Building
|
|
Columbia, MD
|
|
89,199
|
|
|
|
|
100.0
|
|
2,633
|
|
|
29.52
|
|
|
2014
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Downtown Summerlin
|
|
Las Vegas, NV
|
|
823,531
|
|
|
(c)
|
|
94.0
|
|
23,812
|
|
|
30.02
|
|
|
2014
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ward Village
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ward Village Retail - Pending Redevelopment
|
|
Honolulu, HI
|
|
583,837
|
|
|
|
|
87.9
|
|
12,560
|
|
|
27.67
|
|
|
2002
|
||
Ward Village - New or Renovated
|
|
Honolulu, HI
|
|
451,878
|
|
|
|
|
98.5
|
|
19,186
|
|
|
43.69
|
|
|
2012 - 2019
|
||
|
|
|
|
1,035,715
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Outlet Collection at Riverwalk
|
|
New Orleans, LA
|
|
268,556
|
|
|
(d)
|
|
99.4
|
|
7,208
|
|
|
29.11
|
|
|
2014
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
|
|
|
2,725,666
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Annualized Base Rent is calculated as the monthly Base Minimum Rent for the property for December 31, 2019, multiplied by 12. Annualized Base Rent Per Square Foot is the Annualized Base Rent for the property at December 31, 2019, divided by the average occupied square feet.
|
(b)
|
Creekside Park West was transferred from Strategic Developments in the fourth quarter of 2019 and tenants have not taken occupancy as of December 31, 2019. Therefore, the Annualized Base Rent and Annualized Base Rent Per Square Foot data is not meaningful.
|
(c)
|
Excludes 381,767 square feet of anchors, 206,279 square feet for One Summerlin, 144,615 square feet for Two Summerlin and 36,914 square feet of additional office space above our retail space.
|
(d)
|
The entire property is subject to a ground lease where we are the ground lessee.
|
Office Assets
|
|
Location
|
|
Rentable Sq.Ft./Units
|
|
% Leased
|
|
|
Annualized
Base Rent (In thousands) (a) |
|
Annualized Base Rent Per Square Foot (a)
|
|
Effective
Annual Rent (In thousands) (b) |
|
Effective Annual Rent per Square Foot (b)
|
|
Year Built /
Acquired / Last Renovated |
|||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
100 Fellowship Drive (c)
|
|
The Woodlands, TX
|
|
203,257
|
|
|
100.0
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2019
|
One Hughes Landing
|
|
The Woodlands, TX
|
|
197,719
|
|
|
98.0
|
|
|
4,816
|
|
|
29.82
|
|
|
7,238
|
|
|
44.82
|
|
|
2013
|
||||
Two Hughes Landing
|
|
The Woodlands, TX
|
|
197,714
|
|
|
97.0
|
|
|
5,774
|
|
|
30.13
|
|
|
8,745
|
|
|
45.64
|
|
|
2014
|
||||
Three Hughes Landing
|
|
The Woodlands, TX
|
|
320,815
|
|
|
86.7
|
|
|
7,203
|
|
|
27.27
|
|
|
10,459
|
|
|
39.60
|
|
|
2016
|
||||
1725 Hughes Landing Boulevard
|
|
The Woodlands, TX
|
|
331,754
|
|
|
95.0
|
|
|
6,291
|
|
|
20.04
|
|
|
8,816
|
|
|
28.08
|
|
|
2015
|
||||
1735 Hughes Landing Boulevard
|
|
The Woodlands, TX
|
|
318,170
|
|
|
100.0
|
|
|
7,576
|
|
|
23.81
|
|
|
11,054
|
|
|
34.74
|
|
|
2015
|
||||
2201 Lake Woodlands Drive
|
|
The Woodlands, TX
|
|
24,119
|
|
|
100.0
|
|
|
422
|
|
|
17.50
|
|
|
752
|
|
|
31.17
|
|
|
1994
|
||||
Lakefront North
|
|
The Woodlands, TX
|
|
258,058
|
|
|
88.0
|
|
|
5,067
|
|
|
21.14
|
|
|
7,146
|
|
|
29.82
|
|
|
2018
|
||||
9303 New Trails
|
|
The Woodlands, TX
|
|
97,967
|
|
|
87.0
|
|
|
1,226
|
|
|
15.82
|
|
|
1,851
|
|
|
23.88
|
|
|
2008
|
||||
3831 Technology Forest Drive
|
|
The Woodlands, TX
|
|
95,078
|
|
|
100.0
|
|
|
2,254
|
|
|
23.70
|
|
|
3,250
|
|
|
34.18
|
|
|
2014
|
||||
3 Waterway Square
|
|
The Woodlands, TX
|
|
232,021
|
|
|
100.0
|
|
|
6,703
|
|
|
28.89
|
|
|
9,523
|
|
|
41.05
|
|
|
2013
|
||||
4 Waterway Square
|
|
The Woodlands, TX
|
|
218,551
|
|
|
100.0
|
|
|
6,458
|
|
|
29.55
|
|
|
9,038
|
|
|
41.36
|
|
|
2010
|
||||
The Woodlands Towers at The Waterway (d)
|
|
The Woodlands, TX
|
|
1,403,440
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2019
|
||||
1400 Woodloch Forest
|
|
The Woodlands, TX
|
|
95,667
|
|
|
78.0
|
|
|
2,025
|
|
|
31.55
|
|
|
2,076
|
|
|
32.33
|
|
|
1981
|
||||
|
|
|
|
3,994,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
10-70 Columbia Corporate Center
|
|
Columbia, MD
|
|
888,219
|
|
|
95.0
|
|
|
22,290
|
|
|
26.85
|
|
|
22,507
|
|
|
27.11
|
|
|
2012 / 2014
|
||||
Columbia Office Properties (e)
|
|
Columbia, MD
|
|
62,038
|
|
|
89.0
|
|
|
1,741
|
|
|
31.60
|
|
|
1,772
|
|
|
32.17
|
|
|
1969 / 1972
|
||||
One Mall North
|
|
Columbia, MD
|
|
98,619
|
|
|
97.0
|
|
|
2,823
|
|
|
29.79
|
|
|
2,864
|
|
|
30.23
|
|
|
2016
|
||||
One Merriweather
|
|
Columbia, MD
|
|
206,865
|
|
|
97.2
|
|
|
6,864
|
|
|
35.76
|
|
|
7,003
|
|
|
36.49
|
|
|
2017
|
||||
Two Merriweather
|
|
Columbia, MD
|
|
130,022
|
|
|
87.0
|
|
|
3,658
|
|
|
32.12
|
|
|
3,703
|
|
|
35.55
|
|
|
2017
|
||||
6100 Merriweather (f)
|
|
Columbia, MD
|
|
318,545
|
|
|
50.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2019
|
||||
|
|
|
|
1,704,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Aristocrat (c)
|
|
Las Vegas, NV
|
|
181,534
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2018
|
||||
One Summerlin
|
|
Las Vegas, NV
|
|
206,279
|
|
|
99.0
|
|
|
7,914
|
|
|
38.66
|
|
|
8,082
|
|
|
39.48
|
|
|
2015
|
||||
Two Summerlin
|
|
Las Vegas, NV
|
|
144,615
|
|
|
98.1
|
|
|
4,821
|
|
|
33.98
|
|
|
4,821
|
|
|
33.98
|
|
|
2018
|
||||
|
|
|
|
532,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
6,231,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Annualized Base Rent is calculated as the monthly Base Minimum Rent for the property for December 31, 2019 multiplied by 12. Annualized Base Rent Per Square Foot is the Annualized Base Rent for the property at December 31, 2019 divided by the average occupied square feet.
|
(b)
|
Effective Annual Rent includes base minimum rent and common area maintenance recovery revenue. Effective Annual Rent Per Square Foot is the Effective Annual Rent divided by the average occupied square feet.
|
(c)
|
100 Fellowship Drive and Aristocrat are build-to-suit projects entirely leased by a single tenant. Therefore, the Annualized Base Rent and Effective Annual Rent details have been excluded for competitive reasons.
|
(d)
|
The Woodlands Towers at The Waterway was acquired on December 30, 2019, and therefore, the Annualized Base Rent, Annualized Base Rent Per Square Foot, Effective Annual Rent and Effective Annual Rent per Square Foot data is not meaningful.
|
(e)
|
Excludes the Ridgely Building which was moved to Strategic Developments in the fourth quarter of 2017.
|
(f)
|
6100 Merriweather was transferred from Strategic Developments in the fourth quarter of 2019. Therefore, the Annualized Base Rent, Annualized Base Rent Per Square Foot, Effective Annual Rent and Effective Annual Rent per Square Foot data is not meaningful.
|
Multi-family Assets
|
|
Location
|
|
Economic
Ownership % |
|
# Units
|
|
Retail Square Feet
|
|
% Leased
|
|
Average Monthly Rate
|
|
Average Monthly Rate Per Square Foot
|
|
Year Built / Acquired / Last Renovated
|
||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Creekside Park Apartments
|
|
The Woodlands, TX
|
|
100.0
|
|
%
|
292
|
|
|
—
|
|
|
92.0
|
|
%
|
$
|
1,504
|
|
|
$
|
1.53
|
|
|
2018
|
Millennium Six Pines Apartments
|
|
The Woodlands, TX
|
|
100.0
|
|
|
314
|
|
|
—
|
|
|
92.0
|
|
|
1,844
|
|
|
1.92
|
|
|
2014
|
||
Millennium Waterway Apartments
|
|
The Woodlands, TX
|
|
100.0
|
|
|
393
|
|
|
—
|
|
|
95.0
|
|
|
1,513
|
|
|
1.68
|
|
|
2010
|
||
One Lakes Edge
|
|
The Woodlands, TX
|
|
100.0
|
|
|
390
|
|
|
23,280
|
|
|
93.0
|
|
|
2,137
|
|
|
2.16
|
|
|
2015
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Lakeside Row
|
|
The Woodlands, TX
|
|
100.0
|
|
|
312
|
|
|
—
|
|
|
33.0
|
|
|
1,411
|
|
|
1.43
|
|
|
2019
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Metropolitan Downtown Columbia
|
|
Columbia, MD
|
|
50.0
|
|
|
380
|
|
|
13,591
|
|
|
98.0
|
|
|
2,095
|
|
|
2.22
|
|
|
2015
|
||
m.flats/TEN.M
|
|
Columbia, MD
|
|
50.0
|
|
|
437
|
|
|
28,026
|
|
|
95.0
|
|
|
2,007
|
|
|
2.26
|
|
|
2018
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Constellation
|
|
Las Vegas, NV
|
|
100.0
|
|
|
124
|
|
|
—
|
|
|
95.0
|
|
|
2,223
|
|
|
1.99
|
|
|
2016
|
||
Tanager Apartments
|
|
Las Vegas, NV
|
|
100.0
|
|
|
267
|
|
|
—
|
|
|
56.0
|
|
|
1,945
|
|
|
2.00
|
|
|
2019
|
||
|
|
|
|
|
|
2,909
|
|
|
64,897
|
|
|
|
|
|
|
|
|
|
Hospitality Assets
|
|
Location
|
|
Economic
Ownership % |
|
# Keys
|
|
2019 Average Daily Rate
|
|
2019 Revenue Per Available Room
|
|
Year Built / Acquired / Last Renovated
|
|||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Embassy Suites at Hughes Landing
|
|
The Woodlands, TX
|
|
100.0
|
|
%
|
205
|
|
|
$
|
202.87
|
|
|
$
|
169.55
|
|
|
2015
|
|
The Westin at The Woodlands
|
|
The Woodlands, TX
|
|
100.0
|
|
|
302
|
|
|
220.47
|
|
|
165.15
|
|
|
2016
|
|
||
The Woodlands Resort & Conference Center
|
|
The Woodlands, TX
|
|
100.0
|
|
|
402
|
|
|
207.59
|
|
|
114.66
|
|
|
2014
|
(a)
|
|
(a)
|
The Woodlands Resort & Conference Center was built in 1974, expanded in 2002, and renovated in 2014.
|
Other Assets
|
|
Location
|
|
Economic
Ownership % |
|
Asset Type
|
|
Square Feet / Acres / Units / Spaces
|
|
% Leased
|
|
Year Built / Acquired / Last Renovated
|
|
|||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Hughes Landing Daycare
|
|
The Woodlands, TX
|
|
100
|
|
%
|
Daycare
|
|
10,000
|
|
|
100.0
|
%
|
2019
|
|
|
HHC 242 Self-Storage
|
|
The Woodlands, TX
|
|
100
|
|
|
Storage
|
|
639
|
|
|
82.0
|
|
2017
|
|
|
HHC 2978 Self-Storage
|
|
The Woodlands, TX
|
|
100
|
|
|
Storage
|
|
735
|
|
|
87.0
|
|
2017
|
|
|
Stewart Title of Montgomery County, TX
|
|
The Woodlands, TX
|
|
50
|
|
|
Title Company
|
|
—
|
|
|
N/A
|
|
—
|
|
|
Woodlands Ground Leases
|
|
The Woodlands, TX
|
|
100
|
|
|
Ground lease
|
|
N/A
|
|
|
N/A
|
|
2011
|
|
|
Woodlands Sarofim #1
|
|
The Woodlands, TX
|
|
20
|
|
|
Industrial
|
|
129,790
|
|
|
79.6
|
|
late 1980's
|
|
|
The Woodlands Warehouse
|
|
The Woodlands, TX
|
|
100
|
|
|
Warehouse
|
|
—
|
|
|
100.0
|
|
2019
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Hockey Ground Lease
|
|
Las Vegas, NV
|
|
100
|
|
|
Ground lease
|
|
N/A
|
|
|
N/A
|
|
2017
|
|
|
Las Vegas Aviators
|
|
Las Vegas, NV
|
|
100
|
|
|
Minor League Baseball Team
|
|
—
|
|
|
N/A
|
|
2017
|
|
|
Las Vegas Ballpark
|
|
Las Vegas, NV
|
|
100
|
|
|
Ballpark
|
|
N/A
|
|
|
N/A
|
|
2019
|
|
|
Summerlin Hospital Medical Center
|
|
Las Vegas, NV
|
|
5
|
|
|
Hospital
|
|
—
|
|
|
N/A
|
|
1997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Ward Village
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Kewalo Basin Harbor
|
|
Honolulu, HI
|
|
Ground Lease
|
|
|
Marina
|
|
55 acres
|
|
|
N/A
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Parking Garages
|
|
Various
|
|
100
|
|
|
Garage
|
|
6,784
|
|
|
N/A
|
|
2008 - 2018
|
|
(b)
|
|
(a)
|
The Woodlands Warehouse was acquired in 2019.
|
(b)
|
Parking Garages consists of Woodloch Forest Garage, Waterway Square Garage, Hughes Landing Garage, Ward Village Shops Garage, Ae‘o Garage, Lakefront Parking Garages and Two Summerlin Garage.
|
Year
|
|
Number of Expiring Leases
|
|
|
|
Total Square Feet Expiring
|
|
Total
Annualized Base Rent Expiring |
|
% of Total
Annual Gross Rent Expiring |
|
||||
2020
|
|
319
|
|
|
(a)
|
|
946,173
|
|
|
$
|
12,704,763
|
|
|
4.5
|
%
|
2021
|
|
135
|
|
|
|
|
583,077
|
|
|
11,967,111
|
|
|
4.2
|
|
|
2022
|
|
205
|
|
|
|
|
1,780,448
|
|
|
20,306,259
|
|
|
7.2
|
|
|
2023
|
|
126
|
|
|
|
|
716,137
|
|
|
20,707,394
|
|
|
7.3
|
|
|
2024
|
|
143
|
|
|
|
|
1,013,751
|
|
|
21,638,841
|
|
|
7.6
|
|
|
2025
|
|
214
|
|
|
|
|
1,264,644
|
|
|
31,874,020
|
|
|
11.3
|
|
|
2026
|
|
58
|
|
|
|
|
358,364
|
|
|
9,568,367
|
|
|
3.4
|
|
|
2027
|
|
68
|
|
|
|
|
733,507
|
|
|
18,565,517
|
|
|
6.6
|
|
|
2028
|
|
54
|
|
|
|
|
461,784
|
|
|
16,729,462
|
|
|
5.9
|
|
|
2029
|
|
61
|
|
|
|
|
735,900
|
|
|
13,597,490
|
|
|
4.8
|
|
|
2030+
|
|
197
|
|
|
|
|
3,236,691
|
|
|
105,549,314
|
|
|
37.2
|
|
|
Total
|
|
1,580
|
|
|
|
|
11,830,476
|
|
|
$
|
283,208,538
|
|
|
100.0
|
%
|
|
(a)
|
Includes 137 specialty leases totaling 211,548 square feet which expire in less than 365 days.
|
|
|
|
|
|
|
|
|
Remaining
|
Projected
|
Average
|
Undiscounted/
|
||||||||||||||||
|
|
Total
|
|
|
Average Price Per Acre
|
Saleable
|
Community
|
Cash
|
Uninflated Value
|
||||||||||||||||||
|
|
Gross
|
Approx. No.
|
Remaining Saleable Acres
|
($ in thousands) (b)
|
Residential
|
Sell-Out Date
|
Margin (d)
|
($ in millions) (e)
|
||||||||||||||||||
Community
|
Location
|
Acres (a)
|
Residents
|
Residential
|
Commercial
|
Residential
|
Commercial
|
Lots (c)
|
Residential
|
Commercial
|
Residential
|
Residential
|
Commercial
|
||||||||||||||
Bridgeland
|
Cypress, TX
|
11,506
|
|
12,550
|
|
2,166
|
|
1,543
|
|
$
|
422
|
|
$
|
543
|
|
13,128
|
|
|
2034
|
2045
|
81%
|
$
|
740
|
|
$
|
838
|
|
Columbia
|
Columbia, MD
|
16,450
|
|
112,000
|
|
—
|
|
96
|
|
N/A
|
|
580
|
|
—
|
|
|
N/A
|
2023
|
N/A
|
—
|
|
56
|
|
||||
Summerlin
|
Las Vegas, NV
|
22,500
|
|
113,000
|
|
2,991
|
|
831
|
|
676
|
|
1,125
|
|
35,477
|
|
(f)
|
2039
|
2039
|
70%
|
1,415
|
|
935
|
|
||||
The Woodlands
|
Houston, TX
|
28,505
|
|
118,000
|
|
71
|
|
722
|
|
1,068
|
|
1,147
|
|
177
|
|
|
2022
|
2031
|
100%
|
76
|
|
828
|
|
||||
The Woodlands Hills
|
Conroe, TX
|
2,055
|
|
300
|
|
1,348
|
|
175
|
|
274
|
|
515
|
|
4,560
|
|
|
2031
|
2030
|
92%
|
340
|
|
90
|
|
||||
Total
|
|
81,016
|
|
355,850
|
|
6,576
|
|
3,367
|
|
|
|
53,342
|
|
|
|
|
|
$
|
2,571
|
|
$
|
2,747
|
|
|
(a)
|
Encompasses all of the land located within the borders of the master planned community, including parcels already sold, saleable parcels and non-saleable areas such as roads, parks and recreation areas, conservation areas and parcels acquired during the year.
|
(b)
|
Average Price Per Acre is the weighted-average land value per acre estimated in the Company’s 2020 land models, which include estimates of future pricing over the remaining life of each project.
|
(c)
|
Remaining Saleable Residential Lots are estimates and include only lots that are intended for sale or joint venture. The mix of intended use on our remaining saleable and developable acres is primarily based on assumptions regarding entitlements and zoning of the remaining project and are likely to change over time as the master plan is refined.
|
(d)
|
Average Cash Margin represents the total projected cash profit (total projected cash sales minus remaining projected cash development expenditures excluding land costs), divided by total projected cash sales. It is calculated based on future revenues and future projected non-reimbursable development costs, capitalized overhead, capitalized taxes and capitalized interest.
|
(e)
|
Undiscounted / Uninflated Value represents Remaining Saleable Acres, multiplied by Average Price Per Acre, multiplied by Average Cash Margin.
|
(f)
|
Amount represents remaining entitlements and not necessarily the number of lots that may ultimately be developed and sold.
|
|
|
Real Estate
Operations (Landlord) (a) |
|
Managed
Businesses (b) |
|
Events, Sponsorships &
Catering Business (g) |
|
2019 Total
|
||||||||||||||||||||||
($ in thousands)
|
|
Historic District & Pier 17
|
Multi-Family (c)
|
Hospitality (d)
|
|
Historic District & Pier 17 (e)
|
Tin Building (f)
|
|
|
|||||||||||||||||||||
Project Status
|
|
Unstabilized
|
Stabilized
|
Unstabilized
|
|
Unstabilized
|
Under Construction
|
|
Unstabilized
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Rentable Sq. Ft. / Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Sq. Ft. / units
|
|
305,265
|
|
13,000
|
|
/
|
21
|
66
|
|
|
73,488
|
|
53,396
|
|
|
21,077
|
|
|
|
|
|
|||||||||
Leased Sq. Ft. / units
|
(h)
|
127,637
|
|
—
|
|
/
|
21
|
57
|
|
|
73,488
|
|
53,396
|
|
|
21,077
|
|
|
|
|
|
|||||||||
% Leased or occupied
|
(h)
|
42
|
%
|
—
|
%
|
/
|
100%
|
86
|
%
|
|
100
|
%
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Development
|
(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Development costs incurred
|
|
$
|
517,561
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
72,057
|
|
|
$
|
—
|
|
|
$
|
589,618
|
|
|||||
Estimated total costs (excl. land)
|
|
$
|
594,018
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
173,452
|
|
|
$
|
—
|
|
|
$
|
767,470
|
|
|
(a)
|
Real Estate Operations (Landlord) represents physical real estate developed and owned by HHC.
|
(b)
|
Managed Businesses represents retail and food and beverage businesses that HHC owns, either wholly or through joint ventures, and operates, including license and management agreements.
|
(c)
|
Multi-Family represents 85 South Street which includes base level retail in addition to residential units.
|
(d)
|
Hospitality represents Mr. C Seaport, of which HHC has a 35% ownership interest. Percentage occupied is the average for the fourth quarter of 2019.
|
(e)
|
Includes our 90% share of NOI from Bar Wayō.
|
(f)
|
Represents the food hall by Jean-Georges.
|
(g)
|
Events, Sponsorships & Catering Business includes private events, catering, sponsorships, concert series and other rooftop activities.
|
(h)
|
The percent leased for Historic District & Pier 17 landlord operations includes agreements with terms of less than one year and excludes leases with our managed businesses.
|
(i)
|
Development costs incurred and Estimated total costs (excl. land) are shown net of insurance proceeds of approximately $65.0 million.
|
($ in thousands)
|
|
Location
|
|
Size / GLA
|
|
Size
(Acres) |
|
Total Estimated Cost
|
|
Construction Start
|
|
Estimated Completion
|
|
Estimated Stabilization Date
|
||||
Strategic Developments Under Construction
|
||||||||||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Creekside Park Apartments Phase II
|
|
The Woodlands, TX
|
|
360 units
|
|
|
14
|
|
|
$
|
57,472
|
|
|
Q3 2019
|
|
2021
|
|
2023
|
Millennium Phase III Apartments
|
|
The Woodlands, TX
|
|
163 units
|
|
|
2
|
|
|
45,033
|
|
|
Q2 2019
|
|
Q4 2020
|
|
2021
|
|
8770 New Trails
|
|
The Woodlands, TX
|
|
180,000
|
|
|
14
|
|
|
45,985
|
|
|
Q1 2019
|
|
Q1 2020
|
|
2020
|
|
Two Lakes Edge
|
|
The Woodlands, TX
|
|
386 units
|
|
|
3
|
|
|
107,706
|
|
|
Q2 2018
|
|
Q2 2020
|
|
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Chicago
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
110 North Wacker
|
|
Chicago, IL
|
|
1,500,000
|
|
|
1
|
|
|
722,643
|
|
|
Q2 2018
|
|
Q4 2020
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Juniper Apartments
|
|
Columbia, MD
|
|
382 units / 56,683 retail
|
|
|
3
|
|
|
116,386
|
|
|
Q2 2018
|
|
Q1 2020
|
|
2023
|
|
Merriweather District Area 3 Standalone Restaurant
|
|
Columbia, MD
|
|
10,700
|
|
|
0.4
|
|
|
5,624
|
|
|
Q3 2019
|
|
Q4 2020
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ward Village
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
‘A‘ali‘i
|
|
Honolulu, HI
|
|
750 units / 11,336 retail
|
|
|
2
|
|
|
411,900
|
|
|
Q4 2018
|
|
2021
|
|
N/A
|
|
Ae‘o
|
|
Honolulu, HI
|
|
465 units / 70,799 retail
|
|
|
3
|
|
|
429,603
|
|
|
Q1 2016
|
|
Open
|
(a)
|
N/A
|
|
Anaha
|
|
Honolulu, HI
|
|
317 units / 16,048 retail
|
|
|
2
|
|
|
401,314
|
|
|
Q4 2014
|
|
Open
|
(a)
|
N/A
|
|
Ke Kilohana
|
|
Honolulu, HI
|
|
423 units / 28,386 retail
|
|
|
1
|
|
|
218,898
|
|
|
Q4 2016
|
|
Open
|
(a)
|
N/A
|
|
Kō'ula
|
|
Honolulu, HI
|
|
565 units / 36,414 retail
|
|
|
2
|
|
|
487,110
|
|
|
Q3 2019
|
|
2022
|
|
N/A
|
|
Waiea
|
|
Honolulu, HI
|
|
174 units / 11,336 retail
|
|
|
2
|
|
|
464,269
|
|
|
Q2 2014
|
|
Open
|
(a)
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Future Strategic Developments Rights or Pending Construction
|
||||||||||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Century Park
|
|
Houston, TX
|
|
1,302,597
|
|
|
63
|
|
(b)
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lakefront District
|
|
Columbia, MD
|
|
2,000,000
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
80% Interest in Fashion Show Air Rights
|
|
Las Vegas, NV
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Circle T Ranch and Power Center (b)
|
|
Dallas / Ft. Worth, TX
|
|
—
|
|
|
198
|
|
|
|
|
|
|
|
|
|
||
The Elk Grove Collection
|
|
Elk Grove, CA
|
|
—
|
|
|
64
|
|
|
|
|
|
|
|
|
|
||
Landmark Mall
|
|
Alexandria, VA
|
|
—
|
|
|
33
|
|
|
|
|
|
|
|
|
|
||
Maui Ranch Land
|
|
Maui, HI
|
|
—
|
|
|
20
|
|
|
|
|
|
|
|
|
|
||
Monarch City
|
|
Allen, TX
|
|
—
|
|
|
238
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial Land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
The Woodlands Commercial Land
|
|
The Woodlands, TX
|
|
—
|
|
|
13
|
|
(d)
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Merriweather District Land
|
|
Columbia, MD
|
|
—
|
|
|
23
|
|
(e)
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ward
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ward Commercial Land
|
|
Honolulu, HI
|
|
—
|
|
|
13
|
|
(f)
|
|
|
|
|
|
|
|
|
(a)
|
Retail for each open condominium tower has been placed into service.
|
(b)
|
We expect to remarket this asset, which was acquired in 2019.
|
(c)
|
We are currently approved for approximately 2.0 million square feet of net new mixed-use development which will include office, retail and residual assets. This future development district also includes the 3 acres of land related to Ridgely Building, Sterrett Place and American City Building, all of which have been demolished.
|
(d)
|
Represents 4 and 9 acres of land transferred and acquired, respectively, to the Strategic Developments segment in 2013 and 2019, respectively, for future development at The Woodlands.
|
(e)
|
Represents land transferred to the Strategic Developments segment in 2015 for future development in the Merriweather District in Columbia, Maryland, excluding acreage relating to One and Two Merriweather and 6100 Merriweather, all of which are now in service in our Operating Assets segment, as well as Juniper Apartments, which is reflected above.
|
(f)
|
Represents land transferred to the Strategic Developments segment for future development at Ward Village, excluding acreage related to ‘A‘ali‘i, Ae‘o, Anaha, Ke Kilohana, Kō'ula and Waiea.
|
|
Year Ended December 31,
|
||||||||||||||||||
(In thousands, except per share amounts)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues (a)
|
$
|
1,300,539
|
|
|
$
|
1,064,537
|
|
|
$
|
1,100,120
|
|
|
$
|
1,035,005
|
|
|
$
|
797,088
|
|
Operating expenses
|
(1,028,972
|
)
|
|
(830,226
|
)
|
|
(803,981
|
)
|
|
(728,647
|
)
|
|
(581,156
|
)
|
|||||
Depreciation and amortization
|
(155,798
|
)
|
|
(126,565
|
)
|
|
(132,252
|
)
|
|
(95,864
|
)
|
|
(98,997
|
)
|
|||||
Total other (b)
|
34,541
|
|
|
(940
|
)
|
|
58,483
|
|
|
115,151
|
|
|
30,902
|
|
|||||
Selling profit from sales-type leases
|
13,537
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Interest expense, net
|
(95,577
|
)
|
|
(73,542
|
)
|
|
(60,525
|
)
|
|
(64,365
|
)
|
|
(59,158
|
)
|
|||||
Gain (loss) on extinguishment of debt
|
4,641
|
|
|
—
|
|
|
(46,410
|
)
|
|
—
|
|
|
—
|
|
|||||
Warrant liability (loss) gain
|
—
|
|
|
—
|
|
|
(43,443
|
)
|
|
(24,410
|
)
|
|
58,320
|
|
|||||
Gain on acquisition of joint venture partner's interest
|
—
|
|
|
—
|
|
|
23,332
|
|
|
27,088
|
|
|
—
|
|
|||||
Equity in earnings from real estate and other affiliates
|
30,629
|
|
|
39,954
|
|
|
25,498
|
|
|
56,818
|
|
|
3,721
|
|
|||||
(Provision) benefit for income taxes
|
(29,245
|
)
|
|
(15,492
|
)
|
|
45,801
|
|
|
(118,450
|
)
|
|
(24,001
|
)
|
|||||
Net income
|
74,295
|
|
|
57,726
|
|
|
166,623
|
|
|
202,326
|
|
|
126,719
|
|
|||||
Net (income) loss attributable to noncontrolling interests
|
(339
|
)
|
|
(714
|
)
|
|
1,781
|
|
|
(23
|
)
|
|
—
|
|
|||||
Net income attributable to common stockholders
|
$
|
73,956
|
|
|
$
|
57,012
|
|
|
$
|
168,404
|
|
|
$
|
202,303
|
|
|
$
|
126,719
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per share:
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
4.07
|
|
|
$
|
5.12
|
|
|
$
|
3.21
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per share:
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
3.91
|
|
|
$
|
4.73
|
|
|
$
|
1.60
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Cash Flow Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
$
|
207,732
|
|
|
$
|
210,520
|
|
|
$
|
165,567
|
|
|
$
|
239,103
|
|
|
$
|
(79,431
|
)
|
Investing activities
|
(1,232,897
|
)
|
|
(841,771
|
)
|
|
(315,604
|
)
|
|
(33,958
|
)
|
|
(568,988
|
)
|
|||||
Financing activities
|
921,085
|
|
|
391,166
|
|
|
199,198
|
|
|
199,857
|
|
|
436,488
|
|
|
As of December 31,
|
||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments in real estate - cost (c)
|
$
|
7,390,045
|
|
|
$
|
6,265,574
|
|
|
$
|
5,432,002
|
|
|
$
|
5,056,216
|
|
|
$
|
4,832,443
|
|
Total assets
|
8,413,766
|
|
|
7,355,799
|
|
|
6,729,064
|
|
|
6,367,382
|
|
|
5,721,582
|
|
|||||
Total debt
|
4,096,470
|
|
|
3,181,213
|
|
|
2,857,945
|
|
|
2,690,747
|
|
|
2,443,962
|
|
|||||
Total equity
|
3,332,988
|
|
|
3,238,126
|
|
|
3,188,551
|
|
|
2,571,510
|
|
|
2,363,889
|
|
|
(a)
|
We adopted Accounting Standards Update (“ASU”) 2014-09, Revenues from Contracts with Customers (Topic 606), on January 1, 2018 using the modified retrospective transition method, and 2017 amounts presented have not been adjusted. The adoption of the new standard primarily impacted the recognition of condominium rights and unit sales revenues and cost of sales. Prior to 2018, Condominium rights and unit sales revenues were required to be recognized under the percentage of completion method. Under the new guidance, revenue and cost of sales for condominium units sold are not recognized until the construction is complete, the sale closes and the title to the property has transferred to the buyer.
|
(b)
|
2019 includes gains of $24.1 million and $12.0 million and a loss of $8.8 million on the sales of Cottonwood Mall, West Windsor and Bridges at Mint Hill, respectively. 2017 includes the $32.2 million gain on sale of 36 acres of land at The Elk Grove Collection and the $20.2 million gain on sale of Kendall Town Center. 2016 includes the $140.5 million gain on the sale of 80 South Street and a $35.7 million impairment charge on Park West.
|
(c)
|
Amount represents Net investment in real estate excluding accumulated depreciation.
|
•
|
cash expenditures, or future requirements for capital expenditures or contractual commitments;
|
•
|
corporate general and administrative expenses;
|
•
|
interest expense on our corporate debt;
|
•
|
income taxes that we may be required to pay;
|
•
|
any cash requirements for replacement of fully depreciated or amortized assets; and
|
•
|
limitations on, or costs related to, the transfer of earnings from our real estate and other affiliates to us.
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands, except per share amounts)
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Assets segment revenues
|
$
|
400,131
|
|
|
$
|
348,242
|
|
|
$
|
317,296
|
|
|
$
|
51,889
|
|
|
$
|
30,946
|
|
MPC segment revenues
|
386,781
|
|
|
309,451
|
|
|
299,543
|
|
|
77,330
|
|
|
9,908
|
|
|||||
Seaport District segment revenues
|
55,645
|
|
|
32,632
|
|
|
10,259
|
|
|
23,013
|
|
|
22,373
|
|
|||||
Strategic Developments segment revenues
|
457,948
|
|
|
374,212
|
|
|
473,022
|
|
|
83,736
|
|
|
(98,810
|
)
|
|||||
Total segment revenues
|
$
|
1,300,505
|
|
|
$
|
1,064,537
|
|
|
$
|
1,100,120
|
|
|
$
|
235,968
|
|
|
$
|
(35,583
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Assets segment EBT
|
$
|
34,632
|
|
|
$
|
3,836
|
|
|
$
|
10,113
|
|
|
$
|
30,796
|
|
|
$
|
(6,277
|
)
|
MPC segment EBT
|
257,586
|
|
|
202,955
|
|
|
190,351
|
|
|
54,631
|
|
|
12,604
|
|
|||||
Seaport District segment EBT
|
(59,242
|
)
|
|
(23,862
|
)
|
|
3,402
|
|
|
(35,380
|
)
|
|
(27,264
|
)
|
|||||
Strategic Developments segment EBT
|
101,111
|
|
|
97,954
|
|
|
174,807
|
|
|
3,157
|
|
|
(76,853
|
)
|
|||||
Corporate income, expenses and other items
|
(230,547
|
)
|
|
(207,665
|
)
|
|
(257,851
|
)
|
|
(22,882
|
)
|
|
50,186
|
|
|||||
Income before taxes
|
103,540
|
|
|
73,218
|
|
|
120,822
|
|
|
30,322
|
|
|
(47,604
|
)
|
|||||
(Provision) benefit for income taxes
|
(29,245
|
)
|
|
(15,492
|
)
|
|
45,801
|
|
|
(13,753
|
)
|
|
(61,293
|
)
|
|||||
Net income
|
74,295
|
|
|
57,726
|
|
|
166,623
|
|
|
16,569
|
|
|
(108,897
|
)
|
|||||
Net (income) loss attributable to noncontrolling interests
|
(339
|
)
|
|
(714
|
)
|
|
1,781
|
|
|
375
|
|
|
(2,495
|
)
|
|||||
Net income attributable to common stockholders
|
$
|
73,956
|
|
|
$
|
57,012
|
|
|
$
|
168,404
|
|
|
$
|
16,944
|
|
|
$
|
(111,392
|
)
|
Diluted income per share
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
3.91
|
|
|
$
|
0.39
|
|
|
$
|
(2.59
|
)
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Minimum rents
|
$
|
214,130
|
|
|
$
|
197,379
|
|
|
$
|
175,518
|
|
|
$
|
16,751
|
|
|
$
|
21,861
|
|
Tenant recoveries
|
53,073
|
|
|
48,376
|
|
|
44,499
|
|
|
4,697
|
|
|
3,877
|
|
|||||
Hospitality revenues
|
87,864
|
|
|
82,037
|
|
|
76,020
|
|
|
5,827
|
|
|
6,017
|
|
|||||
Other rental and property revenues
|
42,875
|
|
|
20,450
|
|
|
21,259
|
|
|
22,425
|
|
|
(809
|
)
|
|||||
Interest income from sales-type leases
|
2,189
|
|
|
—
|
|
|
—
|
|
|
2,189
|
|
|
—
|
|
|||||
Total revenues
|
400,131
|
|
|
348,242
|
|
|
317,296
|
|
|
51,889
|
|
|
30,946
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other property operating costs
|
(81,107
|
)
|
|
(59,384
|
)
|
|
(62,570
|
)
|
|
(21,723
|
)
|
|
3,186
|
|
|||||
Rental property real estate taxes
|
(32,563
|
)
|
|
(28,706
|
)
|
|
(25,879
|
)
|
|
(3,857
|
)
|
|
(2,827
|
)
|
|||||
Rental property maintenance costs
|
(13,804
|
)
|
|
(12,122
|
)
|
|
(11,014
|
)
|
|
(1,682
|
)
|
|
(1,108
|
)
|
|||||
Hospitality operating costs
|
(60,226
|
)
|
|
(59,195
|
)
|
|
(56,362
|
)
|
|
(1,031
|
)
|
|
(2,833
|
)
|
|||||
Provision (recovery) for doubtful accounts
|
378
|
|
|
(5,038
|
)
|
|
(2,596
|
)
|
|
5,416
|
|
|
(2,442
|
)
|
|||||
Total operating expenses
|
(187,322
|
)
|
|
(164,445
|
)
|
|
(158,421
|
)
|
|
(22,877
|
)
|
|
(6,024
|
)
|
|||||
Segment operating income
|
212,809
|
|
|
183,797
|
|
|
158,875
|
|
|
29,012
|
|
|
24,922
|
|
|||||
Depreciation and amortization
|
(115,499
|
)
|
|
(103,293
|
)
|
|
(117,835
|
)
|
|
(12,206
|
)
|
|
14,542
|
|
|||||
Interest expense, net
|
(81,029
|
)
|
|
(71,551
|
)
|
|
(61,583
|
)
|
|
(9,478
|
)
|
|
(9,968
|
)
|
|||||
Other income (loss), net
|
1,142
|
|
|
(7,107
|
)
|
|
(279
|
)
|
|
8,249
|
|
|
(6,828
|
)
|
|||||
Equity in earnings from real estate and other affiliates
|
3,672
|
|
|
1,994
|
|
|
3,735
|
|
|
1,678
|
|
|
(1,741
|
)
|
|||||
(Loss) gain on sale or disposal of real estate and other assets, net
|
—
|
|
|
(4
|
)
|
|
3,868
|
|
|
4
|
|
|
(3,872
|
)
|
|||||
Gain on acquisition of joint venture partner's interest
|
—
|
|
|
—
|
|
|
23,332
|
|
|
—
|
|
|
(23,332
|
)
|
|||||
Selling profit from sales-type leases
|
13,537
|
|
|
—
|
|
|
—
|
|
|
13,537
|
|
|
—
|
|
|||||
EBT
|
$
|
34,632
|
|
|
$
|
3,836
|
|
|
$
|
10,113
|
|
|
$
|
30,796
|
|
|
$
|
(6,277
|
)
|
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Retail
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Creekside Village Green
|
|
$
|
2,053
|
|
|
$
|
2,025
|
|
|
$
|
1,893
|
|
|
$
|
28
|
|
|
$
|
132
|
|
Hughes Landing Retail
|
|
4,329
|
|
|
4,301
|
|
|
3,733
|
|
|
28
|
|
|
568
|
|
|||||
1701 Lake Robbins
|
|
540
|
|
|
515
|
|
|
284
|
|
|
25
|
|
|
231
|
|
|||||
Lake Woodlands Crossing Retail (a)
|
|
1,297
|
|
|
104
|
|
|
—
|
|
|
1,193
|
|
|
104
|
|
|||||
One Lakes Edge Retail
|
|
1,048
|
|
|
962
|
|
|
860
|
|
|
86
|
|
|
102
|
|
|||||
20/25 Waterway Avenue
|
|
1,573
|
|
|
1,942
|
|
|
1,837
|
|
|
(369
|
)
|
|
105
|
|
|||||
Waterway Garage Retail
|
|
573
|
|
|
703
|
|
|
719
|
|
|
(130
|
)
|
|
(16
|
)
|
|||||
2000 Woodlands Parkway
|
|
79
|
|
|
81
|
|
|
(94
|
)
|
|
(2
|
)
|
|
175
|
|
|||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lakeland Village Center at Bridgeland
|
|
1,869
|
|
|
1,190
|
|
|
782
|
|
|
679
|
|
|
408
|
|
|||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Columbia Regional
|
|
2,198
|
|
|
2,101
|
|
|
1,536
|
|
|
97
|
|
|
565
|
|
|||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Downtown Summerlin
|
|
21,585
|
|
|
20,842
|
|
|
17,950
|
|
|
743
|
|
|
2,892
|
|
|||||
Ward Village
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ward Village Retail (a) (b)
|
|
19,387
|
|
|
22,795
|
|
|
21,080
|
|
|
(3,408
|
)
|
|
1,715
|
|
|||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Outlet Collection at Riverwalk
|
|
6,037
|
|
|
6,285
|
|
|
5,879
|
|
|
(248
|
)
|
|
406
|
|
|||||
Total Retail NOI
|
|
62,568
|
|
|
63,846
|
|
|
56,459
|
|
|
(1,278
|
)
|
|
7,387
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Office
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
100 Fellowship Drive (b)
|
|
2,214
|
|
|
—
|
|
|
—
|
|
|
2,214
|
|
|
—
|
|
|||||
One Hughes Landing
|
|
6,968
|
|
|
6,263
|
|
|
6,168
|
|
|
705
|
|
|
95
|
|
|||||
Two Hughes Landing
|
|
5,573
|
|
|
5,862
|
|
|
5,790
|
|
|
(289
|
)
|
|
72
|
|
|||||
Three Hughes Landing (a)
|
|
5,546
|
|
|
1,804
|
|
|
(623
|
)
|
|
3,742
|
|
|
2,427
|
|
|||||
1725 Hughes Landing Boulevard
|
|
5,665
|
|
|
5,002
|
|
|
3,531
|
|
|
663
|
|
|
1,471
|
|
|||||
1735 Hughes Landing Boulevard (a)
|
|
7,887
|
|
|
7,512
|
|
|
7,509
|
|
|
375
|
|
|
3
|
|
|||||
2201 Lake Woodlands Drive
|
|
455
|
|
|
(87
|
)
|
|
(32
|
)
|
|
542
|
|
|
(55
|
)
|
|||||
Lakefront North (a)
|
|
(161
|
)
|
|
(993
|
)
|
|
—
|
|
|
832
|
|
|
(993
|
)
|
|||||
9303 New Trails
|
|
941
|
|
|
1,043
|
|
|
1,171
|
|
|
(102
|
)
|
|
(128
|
)
|
|||||
3831 Technology Forest Drive
|
|
2,346
|
|
|
2,316
|
|
|
2,268
|
|
|
30
|
|
|
48
|
|
|||||
3 Waterway Square
|
|
6,466
|
|
|
6,824
|
|
|
6,709
|
|
|
(358
|
)
|
|
115
|
|
|||||
4 Waterway Square
|
|
6,768
|
|
|
6,730
|
|
|
6,473
|
|
|
38
|
|
|
257
|
|
|||||
The Woodlands Towers at The Waterway (c)
|
|
189
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|||||
1400 Woodloch Forest
|
|
1,369
|
|
|
1,878
|
|
|
1,781
|
|
|
(509
|
)
|
|
97
|
|
|||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
10-70 Columbia Corporate Center
|
|
14,400
|
|
|
13,288
|
|
|
11,568
|
|
|
1,112
|
|
|
1,720
|
|
|||||
Columbia Office Properties
|
|
1,104
|
|
|
1,325
|
|
|
861
|
|
|
(221
|
)
|
|
464
|
|
|||||
One Mall North
|
|
1,786
|
|
|
1,844
|
|
|
1,900
|
|
|
(58
|
)
|
|
(56
|
)
|
|||||
One Merriweather
|
|
3,728
|
|
|
2,418
|
|
|
1,499
|
|
|
1,310
|
|
|
919
|
|
|||||
Two Merriweather (a)
|
|
967
|
|
|
(889
|
)
|
|
(141
|
)
|
|
1,856
|
|
|
(748
|
)
|
|||||
6100 Merriweather (b)
|
|
(215
|
)
|
|
—
|
|
|
—
|
|
|
(215
|
)
|
|
—
|
|
|||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Aristocrat (a) (d)
|
|
4,133
|
|
|
—
|
|
|
—
|
|
|
4,133
|
|
|
—
|
|
|||||
One Summerlin
|
|
5,702
|
|
|
5,510
|
|
|
3,898
|
|
|
192
|
|
|
1,612
|
|
|||||
Two Summerlin (a)
|
|
1,942
|
|
|
(120
|
)
|
|
—
|
|
|
2,062
|
|
|
(120
|
)
|
|||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
110 North Wacker (a)
|
|
—
|
|
|
—
|
|
|
723
|
|
|
—
|
|
|
(723
|
)
|
|||||
Total Office NOI
|
|
85,773
|
|
|
67,530
|
|
|
61,053
|
|
|
18,243
|
|
|
6,477
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Multi-family
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Creekside Park Apartments (a)
|
|
1,654
|
|
|
—
|
|
|
—
|
|
|
1,654
|
|
|
—
|
|
|||||
Millennium Six Pines Apartments
|
|
4,207
|
|
|
3,869
|
|
|
3,579
|
|
|
338
|
|
|
290
|
|
|||||
Millennium Waterway Apartments
|
|
3,890
|
|
|
3,423
|
|
|
3,208
|
|
|
467
|
|
|
215
|
|
|||||
One Lakes Edge
|
|
5,762
|
|
|
5,623
|
|
|
4,464
|
|
|
139
|
|
|
1,159
|
|
|||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lakeside Row (b)
|
|
(88
|
)
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
—
|
|
|||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Constellation Apartments (a)
|
|
1,980
|
|
|
2,291
|
|
|
15
|
|
|
(311
|
)
|
|
2,276
|
|
|||||
Tanager Apartments (b)
|
|
657
|
|
|
—
|
|
|
—
|
|
|
657
|
|
|
—
|
|
|||||
Total Multi-family NOI
|
|
18,062
|
|
|
15,206
|
|
|
11,266
|
|
|
2,856
|
|
|
3,940
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Hospitality
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Embassy Suites at Hughes Landing
|
|
5,612
|
|
|
5,262
|
|
|
4,816
|
|
|
350
|
|
|
446
|
|
|||||
The Westin at The Woodlands
|
|
9,553
|
|
|
7,736
|
|
|
6,189
|
|
|
1,817
|
|
|
1,547
|
|
|||||
The Woodlands Resort & Conference Center
|
|
13,678
|
|
|
12,373
|
|
|
8,740
|
|
|
1,305
|
|
|
3,633
|
|
|||||
Total Hospitality NOI
|
|
28,843
|
|
|
25,371
|
|
|
19,745
|
|
|
3,472
|
|
|
5,626
|
|
|||||
Total Retail, Office, Multi-family, and Hospitality NOI
|
|
195,246
|
|
|
171,953
|
|
|
148,523
|
|
|
23,293
|
|
|
23,430
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands Ground Leases
|
|
1,778
|
|
|
1,589
|
|
|
1,608
|
|
|
189
|
|
|
(19
|
)
|
|||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Las Vegas Ballpark (e)
|
|
8,135
|
|
|
(509
|
)
|
|
760
|
|
|
8,644
|
|
|
(1,269
|
)
|
|||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Parking Garages (f)
|
|
(1,286
|
)
|
|
(957
|
)
|
|
(540
|
)
|
|
(329
|
)
|
|
(417
|
)
|
|||||
Other Properties (b)
|
|
1,747
|
|
|
23
|
|
|
134
|
|
|
1,724
|
|
|
(111
|
)
|
|||||
Total Other NOI
|
|
10,374
|
|
|
146
|
|
|
1,962
|
|
|
10,228
|
|
|
(1,816
|
)
|
|||||
Operating Assets NOI excluding properties sold or in redevelopment
|
|
$
|
205,620
|
|
|
$
|
172,099
|
|
|
$
|
150,485
|
|
|
$
|
33,521
|
|
|
$
|
21,614
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Redevelopments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
110 North Wacker (a)
|
|
$
|
(5
|
)
|
|
$
|
(513
|
)
|
|
$
|
—
|
|
|
$
|
508
|
|
|
$
|
(513
|
)
|
Total Operating Assets Redevelopments NOI
|
|
(5
|
)
|
|
(513
|
)
|
|
—
|
|
|
508
|
|
|
(513
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dispositions
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Park West
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
60
|
|
|||||
Cottonwood Square
|
|
—
|
|
|
(11
|
)
|
|
750
|
|
|
11
|
|
|
(761
|
)
|
|||||
Total Operating Assets Dispositions NOI
|
|
—
|
|
|
(11
|
)
|
|
690
|
|
|
11
|
|
|
(701
|
)
|
|||||
Total Operating Assets NOI - Consolidated
|
|
$
|
205,615
|
|
|
$
|
171,575
|
|
|
$
|
151,175
|
|
|
$
|
34,040
|
|
|
$
|
20,400
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Operating Assets EBT to NOI
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Operating Assets NOI - Consolidated
|
|
$
|
205,615
|
|
|
$
|
171,575
|
|
|
$
|
151,175
|
|
|
$
|
34,040
|
|
|
$
|
20,400
|
|
Depreciation and amortization
|
|
(115,499
|
)
|
|
(103,293
|
)
|
|
(117,835
|
)
|
|
(12,206
|
)
|
|
14,542
|
|
|||||
Interest expense, net
|
|
(81,029
|
)
|
|
(71,551
|
)
|
|
(61,583
|
)
|
|
(9,478
|
)
|
|
(9,968
|
)
|
|||||
Equity in earnings (losses) from real estate and other affiliates
|
|
3,672
|
|
|
1,994
|
|
|
3,735
|
|
|
1,678
|
|
|
(1,741
|
)
|
|||||
(Loss) gain on sale or disposal of real estate and other assets, net
|
|
—
|
|
|
(4
|
)
|
|
3,868
|
|
|
4
|
|
|
(3,872
|
)
|
|||||
Gain on acquisition of joint venture partner's interest
|
|
—
|
|
|
—
|
|
|
23,332
|
|
|
—
|
|
|
(23,332
|
)
|
|||||
Selling profit from sales-type leases
|
|
13,537
|
|
|
—
|
|
|
—
|
|
|
13,537
|
|
|
—
|
|
|||||
Impact of straight-line rent
|
|
9,007
|
|
|
12,427
|
|
|
8,220
|
|
|
(3,420
|
)
|
|
4,207
|
|
|||||
Other
|
|
(671
|
)
|
|
(7,312
|
)
|
|
(798
|
)
|
|
6,641
|
|
|
(6,514
|
)
|
|||||
Total Operating Assets segment EBT
|
|
$
|
34,632
|
|
|
$
|
3,836
|
|
|
$
|
10,114
|
|
|
$
|
30,796
|
|
|
$
|
(6,278
|
)
|
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Operating Assets NOI - Equity and Cost Method Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stewart Title of Montgomery County, TX
|
|
$
|
2,581
|
|
|
$
|
1,762
|
|
|
$
|
1,329
|
|
|
$
|
819
|
|
|
$
|
433
|
|
Woodlands Sarofim # 1
|
|
1,208
|
|
|
1,034
|
|
|
901
|
|
|
174
|
|
|
133
|
|
|||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Metropolitan Downtown Columbia
|
|
5,818
|
|
|
5,500
|
|
|
5,858
|
|
|
318
|
|
|
(358
|
)
|
|||||
m.flats/TEN.M (a)
|
|
5,751
|
|
|
1,493
|
|
|
—
|
|
|
4,258
|
|
|
1,493
|
|
|||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Constellation (a)
|
|
—
|
|
|
152
|
|
|
1,549
|
|
|
(152
|
)
|
|
(1,397
|
)
|
|||||
Las Vegas Aviators (a)
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
|
—
|
|
|
295
|
|
|||||
Total NOI - equity investees
|
|
15,358
|
|
|
9,941
|
|
|
9,342
|
|
|
5,417
|
|
|
599
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, interest and other adjustments to NOI
|
|
(14,888
|
)
|
|
(12,541
|
)
|
|
(8,475
|
)
|
|
(2,347
|
)
|
|
(4,066
|
)
|
|||||
Equity Method Investments EBT
|
|
470
|
|
|
(2,600
|
)
|
|
867
|
|
|
3,070
|
|
|
(3,467
|
)
|
|||||
Less: Joint Venture Partner's Share of EBT
|
|
423
|
|
|
(1,159
|
)
|
|
513
|
|
|
1,582
|
|
|
(1,672
|
)
|
|||||
Equity in earnings (loss) from Real Estate Affiliates
|
|
47
|
|
|
(1,441
|
)
|
|
352
|
|
|
1,488
|
|
|
(1,793
|
)
|
|||||
Distributions from Summerlin Hospital Investment
|
|
3,625
|
|
|
3,435
|
|
|
3,383
|
|
|
190
|
|
|
52
|
|
|||||
Segment equity in earnings from real estate and other affiliates
|
|
$
|
3,672
|
|
|
$
|
1,994
|
|
|
$
|
3,735
|
|
|
$
|
1,678
|
|
|
$
|
(1,741
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company's Share of Equity Method Investments NOI
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stewart Title of Montgomery County, TX
|
|
$
|
1,291
|
|
|
$
|
881
|
|
|
$
|
665
|
|
|
$
|
410
|
|
|
$
|
216
|
|
Woodlands Sarofim # 1
|
|
242
|
|
|
207
|
|
|
180
|
|
|
35
|
|
|
27
|
|
|||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
||||||||||
The Metropolitan Downtown Columbia
|
|
2,909
|
|
|
2,750
|
|
|
2,929
|
|
|
159
|
|
|
(179
|
)
|
|||||
m.flats/TEN.M (a)
|
|
2,876
|
|
|
747
|
|
|
—
|
|
|
2,129
|
|
|
747
|
|
|||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Constellation (a)
|
|
—
|
|
|
76
|
|
|
775
|
|
|
(76
|
)
|
|
(699
|
)
|
|||||
Las Vegas Aviators (a)
|
|
—
|
|
|
—
|
|
|
(148
|
)
|
|
—
|
|
|
148
|
|
|||||
Company's share NOI - equity investees
|
|
$
|
7,318
|
|
|
$
|
4,661
|
|
|
$
|
4,401
|
|
|
$
|
2,657
|
|
|
$
|
260
|
|
|
|
Economic
|
|
December 31, 2019
|
|||||||
(In thousands)
|
|
Ownership
|
|
Total Debt
|
|
Total Cash
|
|||||
The Woodlands
|
|
|
|
|
|
|
|||||
Stewart Title of Montgomery County, TX
|
|
50.00
|
%
|
|
$
|
—
|
|
|
$
|
1,895
|
|
Woodlands Sarofim # 1
|
|
20.00
|
|
|
4,563
|
|
|
944
|
|
||
Columbia
|
|
|
|
|
|
|
|||||
The Metropolitan Downtown Columbia
|
|
50.00
|
|
|
70,000
|
|
|
619
|
|
||
m.flats/TEN.M
|
|
50.00
|
|
|
87,293
|
|
|
2,005
|
|
|
(a)
|
Please refer to discussion in the following Other Transferred or Consolidated Properties section regarding this property.
|
(b)
|
Please refer to discussion in the following Retail, Office, Multi-family and Other sections regarding this property.
|
(c)
|
The Woodlands Towers at The Waterway was acquired on December 30, 2019.
|
(d)
|
The building was placed in service and tenant took occupancy in late December 2018, and therefore 2018 NOI on the property is not meaningful.
|
(e)
|
Includes the Las Vegas Aviators. The Las Vegas Ballpark was placed in service in 2019.
|
(f)
|
Includes parking garages in The Woodlands, Columbia, Ward Village and Summerlin.
|
|
|
|
|
|
|
Square Feet
|
|
Per Square Foot per Annum
|
|||||||||||||||||||
Retail Properties (a)
|
|
Total Executed
|
|
Avg. Lease Term (Months)
|
|
Total Leased
|
|
Associated with Tenant Improvements
|
|
Associated with Leasing Commissions
|
|
Avg. Starting Rents (b)
|
|
Total Tenant Improvements
|
|
Total Leasing Commissions
|
|||||||||||
Pre-leased (c)
|
|
9
|
|
|
123
|
|
|
46,781
|
|
|
46,781
|
|
|
25,001
|
|
|
$
|
49.14
|
|
|
$
|
31.94
|
|
|
$
|
1.06
|
|
Comparable - Renewal (d)
|
|
30
|
|
|
42
|
|
|
84,809
|
|
|
8,112
|
|
|
2,430
|
|
|
27.52
|
|
|
—
|
|
|
—
|
|
|||
Comparable - New (e)
|
|
9
|
|
|
68
|
|
|
32,888
|
|
|
4,457
|
|
|
4,272
|
|
|
28.69
|
|
|
16.03
|
|
|
10.38
|
|
|||
Non-comparable (f)
|
|
19
|
|
|
78
|
|
|
69,960
|
|
|
50,374
|
|
|
38,280
|
|
|
34.99
|
|
|
18.46
|
|
|
1.81
|
|
|||
Total
|
|
|
|
|
|
234,438
|
|
|
109,724
|
|
|
69,983
|
|
|
|
|
|
|
|
|
(a)
|
Excludes executed leases with a term of 12 months or less, partnerships, internal leases, and percentage rent leases.
|
(b)
|
Avg. Starting Rent is based on Base Minimum Rent only.
|
(c)
|
Pre-leased information is associated with our projects under development at December 31, 2019.
|
(d)
|
Comparable - Renewal information is associated with stabilized assets for which the space was occupied by the same tenant within 12 months prior to the executed agreement. The leases represent an increase of 12.1% in cash rents from $24.56 per square foot collected from previous leases to $27.52 per square foot collected from current leases.
|
(e)
|
Comparable - New information is associated with stabilized assets for which the space was occupied by a different tenant within 12 months prior to the executed agreement. The leases represent an increase of 15.1% in cash rents from $24.92 per square foot collected from previous leases to $28.69 per square foot collected from current leases.
|
(f)
|
Non-comparable information is associated with space that was previously vacant for more than 12 months or has never been occupied.
|
|
|
|
|
|
|
Square Feet
|
|
Per Square Foot per Annum
|
|||||||||||||||||||
Office Properties (a)
|
|
Total Executed
|
|
Avg. Lease Term (Months)
|
|
Total Leased
|
|
Associated with Tenant Improvements
|
|
Associated with Leasing Commissions
|
|
Avg. Starting Rents (b)
|
|
Total Tenant Improvements
|
|
Total Leasing Commissions
|
|||||||||||
Pre-leased (c)
|
|
9
|
|
|
133
|
|
|
799,137
|
|
|
799,137
|
|
|
799,137
|
|
|
$
|
56.18
|
|
|
$
|
6.86
|
|
|
$
|
1.96
|
|
Comparable - Renewal (d)
|
|
39
|
|
|
51
|
|
|
334,142
|
|
|
165,035
|
|
|
147,888
|
|
|
29.60
|
|
|
6.22
|
|
|
1.67
|
|
|||
Comparable - New (e)
|
|
10
|
|
|
37
|
|
|
44,089
|
|
|
39,027
|
|
|
43,640
|
|
|
29.69
|
|
|
15.74
|
|
|
4.79
|
|
|||
Non-comparable (f)
|
|
39
|
|
|
62
|
|
|
260,538
|
|
|
224,989
|
|
|
239,453
|
|
|
34.92
|
|
|
8.14
|
|
|
2.58
|
|
|||
Total
|
|
|
|
|
|
1,437,906
|
|
|
1,228,188
|
|
|
1,230,118
|
|
|
|
|
|
|
|
|
(a)
|
Excludes executed leases with a term of 12 months or less, subleases, percentage rent leases and intercompany leases.
|
(b)
|
Avg. Starting Rents is based on the gross rents, including recoveries.
|
(c)
|
Pre-leased information is associated with projects under development at December 31, 2019.
|
(d)
|
Comparable - Renewal information is associated with stabilized assets for which the space was occupied by the same tenant within 12 months prior to the executed agreement. The leases represent a decrease of 2.6% in cash rents from $30.40 per square foot collected from previous leases to $29.60 per square foot collected from current leases. The decrease is driven by the lower current market rates.
|
(e)
|
Comparable - New information is associated with stabilized assets for which the space was occupied by a different tenant within 12 months prior to the executed agreement. The leases represent a decrease of 6.1% in cash rents from $31.61 per square foot collected from previous leases to $29.69 per square foot collected from current leases. The decrease is driven by the limited sample size of Comparable - New leases reported this period.
|
(f)
|
Non-comparable information is associated with space that was previously vacant for more than 12 months or has never been occupied.
|
|
|
Bridgeland
|
|
Columbia
|
|
Summerlin
|
|
The Woodlands
|
|
The Woodlands Hills
|
|
Total MPC
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||||||
Land sales (a)
|
|
$
|
61,401
|
|
|
$
|
50,150
|
|
|
$
|
39,529
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,800
|
|
|
$
|
214,793
|
|
|
$
|
168,311
|
|
|
$
|
156,617
|
|
|
$
|
42,846
|
|
|
$
|
34,551
|
|
|
$
|
40,367
|
|
|
$
|
11,106
|
|
|
$
|
8,893
|
|
|
$
|
1,282
|
|
|
$
|
330,146
|
|
|
$
|
261,905
|
|
|
$
|
248,595
|
|
Builder price participation (b)
|
|
920
|
|
|
569
|
|
|
398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,355
|
|
|
26,245
|
|
|
21,731
|
|
|
290
|
|
|
250
|
|
|
706
|
|
|
116
|
|
|
21
|
|
|
—
|
|
|
35,681
|
|
|
27,085
|
|
|
22,835
|
|
||||||||||||||||||
Minimum rents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||||||||||||||||
Other land revenues (c)
|
|
150
|
|
|
1,207
|
|
|
10,952
|
|
|
—
|
|
|
327
|
|
|
445
|
|
|
12,830
|
|
|
11,996
|
|
|
10,121
|
|
|
7,966
|
|
|
6,444
|
|
|
6,572
|
|
|
8
|
|
|
487
|
|
|
31
|
|
|
20,954
|
|
|
20,461
|
|
|
28,121
|
|
||||||||||||||||||
Total revenues
|
|
62,471
|
|
|
51,926
|
|
|
50,879
|
|
|
—
|
|
|
327
|
|
|
11,245
|
|
|
261,978
|
|
|
206,552
|
|
|
188,461
|
|
|
51,102
|
|
|
41,245
|
|
|
47,645
|
|
|
11,230
|
|
|
9,401
|
|
|
1,313
|
|
|
386,781
|
|
|
309,451
|
|
|
299,543
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Cost of sales - land
|
|
22,781
|
|
|
16,097
|
|
|
12,792
|
|
|
—
|
|
|
—
|
|
|
5,839
|
|
|
93,590
|
|
|
87,229
|
|
|
83,343
|
|
|
20,600
|
|
|
16,563
|
|
|
18,470
|
|
|
4,881
|
|
|
4,325
|
|
|
672
|
|
|
141,852
|
|
|
124,214
|
|
|
121,116
|
|
||||||||||||||||||
Land sales operations
|
|
8,586
|
|
|
7,877
|
|
|
7,463
|
|
|
1,281
|
|
|
1,541
|
|
|
1,692
|
|
|
13,460
|
|
|
12,449
|
|
|
9,715
|
|
|
21,189
|
|
|
20,253
|
|
|
19,080
|
|
|
3,359
|
|
|
3,097
|
|
|
827
|
|
|
47,875
|
|
|
45,217
|
|
|
38,777
|
|
||||||||||||||||||
Provision for doubtful accounts
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
2
|
|
||||||||||||||||||
Total operating expenses
|
|
31,367
|
|
|
24,007
|
|
|
20,255
|
|
|
1,281
|
|
|
1,541
|
|
|
7,531
|
|
|
107,050
|
|
|
99,688
|
|
|
93,060
|
|
|
41,789
|
|
|
36,816
|
|
|
37,550
|
|
|
8,240
|
|
|
7,422
|
|
|
1,499
|
|
|
189,727
|
|
|
169,474
|
|
|
159,895
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
Operating income
|
|
31,104
|
|
|
27,919
|
|
|
30,624
|
|
|
(1,281
|
)
|
|
(1,214
|
)
|
|
3,714
|
|
|
154,928
|
|
|
106,864
|
|
|
95,401
|
|
|
9,313
|
|
|
4,429
|
|
|
10,095
|
|
|
2,990
|
|
|
1,979
|
|
|
(186
|
)
|
|
197,054
|
|
|
139,977
|
|
|
139,648
|
|
||||||||||||||||||
Depreciation and amortization
|
|
133
|
|
|
127
|
|
|
102
|
|
|
(20
|
)
|
|
(51
|
)
|
|
8
|
|
|
176
|
|
|
31
|
|
|
93
|
|
|
135
|
|
|
136
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
424
|
|
|
243
|
|
|
323
|
|
||||||||||||||||||
Other (income) loss
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
(311
|
)
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
(18
|
)
|
|
(3,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
(18
|
)
|
|
(3,500
|
)
|
||||||||||||||||||
Interest (income) expense, net (d)
|
|
(15,639
|
)
|
|
(13,035
|
)
|
|
(10,566
|
)
|
|
—
|
|
|
(151
|
)
|
|
3
|
|
|
(20,736
|
)
|
|
(17,514
|
)
|
|
(17,386
|
)
|
|
5,497
|
|
|
4,656
|
|
|
4,221
|
|
|
(1,141
|
)
|
|
(875
|
)
|
|
(564
|
)
|
|
(32,019
|
)
|
|
(26,919
|
)
|
|
(24,292
|
)
|
||||||||||||||||||
Equity in earnings in real estate and other affiliates (e)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,336
|
)
|
|
(36,284
|
)
|
|
(23,234
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,336
|
)
|
|
(36,284
|
)
|
|
(23,234
|
)
|
||||||||||||||||||
EBT (f)
|
|
$
|
46,833
|
|
|
$
|
40,827
|
|
|
$
|
41,088
|
|
|
$
|
(950
|
)
|
|
$
|
(1,012
|
)
|
|
$
|
3,703
|
|
|
$
|
203,819
|
|
|
$
|
160,631
|
|
|
$
|
135,928
|
|
|
$
|
3,753
|
|
|
$
|
(345
|
)
|
|
$
|
9,254
|
|
|
$
|
4,131
|
|
|
$
|
2,854
|
|
|
$
|
378
|
|
|
$
|
257,586
|
|
|
$
|
202,955
|
|
|
$
|
190,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
(GAAP Basis) Residential Gross Margin %
|
|
62.9
|
%
|
|
67.6
|
%
|
|
66.4
|
%
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
56.4
|
%
|
|
48.4
|
%
|
|
40.8
|
%
|
|
51.9
|
%
|
|
54.4
|
%
|
|
52.0
|
%
|
|
56.1
|
%
|
|
51.4
|
%
|
|
47.6
|
%
|
|
57.0
|
%
|
|
52.9
|
%
|
|
46.5
|
%
|
||||||||||||||||||
(GAAP Basis) Commercial Gross Margin % (g)
|
|
74.9
|
%
|
|
75.9
|
%
|
|
71.8
|
%
|
|
NM
|
|
|
NM
|
|
|
45.9
|
%
|
|
NM
|
|
|
32.8
|
%
|
|
87.3
|
%
|
|
NM
|
|
|
(4.7
|
)%
|
|
76.3
|
%
|
|
NM
|
|
|
NM
|
|
|
NM
|
|
|
74.9
|
%
|
|
38.3
|
%
|
|
62.4
|
%
|
|
(a)
|
Land sales include deferred revenue from land sales closed in a previous period which met criteria for recognition in the current period.
|
(b)
|
Builder price participation revenue is based on an agreed-upon percentage of the sales price of homes closed relative to the base lot price which was paid by the homebuilders to us. This revenue fluctuates based upon the number and the prices of homes closed that qualify for builder price participation payments.
|
(c)
|
For the year ended December 31, 2017, Other land revenues includes two sales of utility easements at our Bridgeland community totaling $14.1 million less related costs of $3.7 million.
|
(d)
|
Interest expense, net reflects the amount of interest that is capitalized at the project level. Negative interest expense amounts relate to interest capitalized relating to debt assigned to our Operating Assets segment and corporate debt.
|
(e)
|
Equity in earnings in real estate and other affiliates reflects our share of earnings in The Summit joint venture.
|
(f)
|
The negative MPC segment EBT in Columbia in 2019 and 2018 was due to real estate taxes and administrative expenses.
|
(g)
|
Commercial land sales in The Woodlands in 2018 consisted of a 1.6-acre site that was acquired in 2014 at market value, as the original purchaser did not proceed with construction, our holding costs exceeded the 2018 sale price.
|
Summary of Residential MPC Land Sales Closed for the Year Ended December 31,
|
|||||||||||||||||||||||||||||||||||||||
|
Land Sales
|
Acres Sold
|
Number of Lots/Units
|
Price Per Acre
|
Price Per Lot
|
||||||||||||||||||||||||||||||||||
($ in thousands)
|
2019
|
2018
|
2017
|
2019
|
2018
|
2017
|
2019
|
2018
|
2017
|
2019
|
2018
|
2017
|
2019
|
2018
|
2017
|
||||||||||||||||||||||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Single family
|
$
|
61,320
|
|
$
|
48,200
|
|
$
|
30,429
|
|
150.3
|
|
125.3
|
|
80.7
|
|
773
|
|
620
|
|
391
|
|
$
|
408
|
|
$
|
385
|
|
$
|
377
|
|
$
|
79
|
|
$
|
78
|
|
$
|
78
|
|
Change
|
13,120
|
|
17,771
|
|
|
25.0
|
|
44.6
|
|
|
153
|
|
229
|
|
|
23
|
|
8
|
|
|
1
|
|
—
|
|
|
||||||||||||||
% Change
|
27.2
|
%
|
58.4
|
%
|
|
20.0
|
%
|
55.3
|
%
|
|
24.7
|
%
|
58.6
|
%
|
|
6.0
|
%
|
2.1
|
%
|
|
1.3
|
%
|
—
|
%
|
|
||||||||||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
No residential land sales
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Superpad sites
|
204,647
|
|
136,246
|
|
110,223
|
|
315.9
|
|
240.8
|
|
201.5
|
|
1,862
|
|
786
|
|
1,164
|
|
648
|
|
566
|
|
547
|
|
110
|
|
173
|
|
95
|
|
|||||||||
Custom lots
|
5,952
|
|
8,485
|
|
10,515
|
|
3.5
|
|
4.0
|
|
5.1
|
|
8
|
|
6
|
|
11
|
|
1,701
|
|
2,121
|
|
2,062
|
|
744
|
|
1,414
|
|
956
|
|
|||||||||
Total
|
210,599
|
|
144,731
|
|
120,738
|
|
319.4
|
|
244.8
|
|
206.6
|
|
1,870
|
|
792
|
|
1,175
|
|
659
|
|
591
|
|
584
|
|
113
|
|
183
|
|
103
|
|
|||||||||
Change
|
65,868
|
|
23,993
|
|
|
74.6
|
|
38.2
|
|
|
1,078
|
|
(383)
|
|
|
68
|
|
7
|
|
|
(70)
|
|
80
|
|
|
||||||||||||||
% Change
|
45.5
|
%
|
19.9
|
%
|
|
30.5
|
%
|
18.5
|
%
|
|
136.1
|
%
|
(32.6
|
)%
|
|
11.5
|
%
|
1.2
|
%
|
|
(38.3
|
)%
|
77.7
|
%
|
|
||||||||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Single family
|
39,246
|
|
33,189
|
|
36,568
|
|
57.0
|
|
53.7
|
|
58.2
|
|
240
|
|
215
|
|
255
|
|
689
|
|
618
|
|
628
|
|
164
|
|
154
|
|
143
|
|
|||||||||
Superpad sites
|
3,600
|
|
—
|
|
—
|
|
3.9
|
|
—
|
|
—
|
|
30
|
|
—
|
|
—
|
|
923
|
|
—
|
|
—
|
|
120
|
|
—
|
|
—
|
|
|||||||||
Total
|
42,846
|
|
33,189
|
|
36,568
|
|
60.9
|
|
53.7
|
|
58.2
|
|
270
|
|
215
|
|
255
|
|
704
|
|
618
|
|
628
|
|
159
|
|
154
|
|
143
|
|
|||||||||
Change
|
9,657
|
|
(3,379)
|
|
|
7.2
|
|
(4.5)
|
|
|
55
|
|
(40)
|
|
|
86
|
|
(10)
|
|
|
5
|
|
11
|
|
|
||||||||||||||
% Change
|
29.1
|
%
|
(9.2
|
)%
|
|
13.4
|
%
|
(7.7
|
)%
|
|
25.6
|
%
|
(15.7
|
)%
|
|
13.9
|
%
|
(1.6
|
)%
|
|
3.2
|
%
|
7.7
|
%
|
|
||||||||||||||
The Woodlands Hills (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Single family
|
11,107
|
|
8,893
|
|
1,282
|
|
40.2
|
|
32.4
|
|
4.1
|
|
171
|
|
146
|
|
18
|
|
276
|
|
274
|
|
313
|
|
65
|
|
61
|
|
71
|
|
|||||||||
Change
|
2,214
|
|
7,611
|
|
|
7.8
|
|
28.3
|
|
|
25
|
|
128
|
|
|
2
|
|
(39)
|
|
|
4
|
|
(10)
|
|
|
||||||||||||||
% Change
|
24.9
|
%
|
593.7
|
%
|
|
24.1
|
%
|
690.2
|
%
|
|
17.1
|
%
|
711.1
|
%
|
|
0.7
|
%
|
(12.5
|
)%
|
|
6.6
|
%
|
(14.1
|
)%
|
|
||||||||||||||
Total residential land sales closed in period (b)
|
$
|
325,872
|
|
$
|
235,013
|
|
$
|
189,017
|
|
570.8
|
|
456.2
|
|
349.6
|
|
3,084
|
|
1,773
|
|
1,839
|
|
|
|
|
|
|
|
|
(a)
|
The Woodlands Hills began closing land sales in the fourth quarter of 2017.
|
(b)
|
Excludes revenues closed and deferred for recognition in a previous period that met criteria for recognition in the current period. Please see the Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue table below which reconciles Total residential and commercial land sales closed to Land sales revenue for the years ended December 31, 2019, 2018 and 2017.
|
Summary of Commercial MPC Land Sales Closed for the Year Ended December 31,
|
|||||||||||||||||||||||||||||||||
|
|
Land Sales
|
|
Acres Sold
|
|
Price Per Acre
|
|||||||||||||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Not-for-profit
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,379
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
264
|
|
|
Other
|
|
—
|
|
|
1,398
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
583
|
|
|
—
|
|
||||||
Total
|
|
—
|
|
|
1,398
|
|
|
2,379
|
|
|
—
|
|
|
2.4
|
|
|
9.0
|
|
|
—
|
|
|
583
|
|
|
264
|
|
||||||
Change
|
|
(1,398)
|
|
|
(981)
|
|
|
|
|
|
(2.4)
|
|
|
(6.6)
|
|
|
|
|
|
(583)
|
|
|
319
|
|
|
|
|
||||||
% Change
|
|
(100
|
)%
|
|
(41.2
|
)%
|
|
|
|
|
(100
|
)%
|
|
(73.3
|
)%
|
|
|
|
|
(100
|
)%
|
|
120.8
|
%
|
|
|
|
||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Medical
|
|
—
|
|
|
—
|
|
|
10,800
|
|
|
—
|
|
|
—
|
|
|
11.3
|
|
|
—
|
|
|
—
|
|
|
956
|
|
||||||
Change
|
|
—
|
|
|
(10,800)
|
|
|
|
|
|
—
|
|
|
(11.3)
|
|
|
|
|
|
—
|
|
|
(956)
|
|
|
|
|
||||||
% Change
|
|
NM
|
|
|
NM
|
|
|
|
|
|
NM
|
|
|
NM
|
|
|
|
|
|
NM
|
|
|
NM
|
|
|
|
|
||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Not-for-profit
|
|
—
|
|
|
2,356
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
399
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
1,276
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
255
|
|
||||||
Total
|
|
—
|
|
|
2,356
|
|
|
1,276
|
|
|
—
|
|
|
5.9
|
|
|
5.0
|
|
|
—
|
|
|
399
|
|
|
255
|
|
||||||
Change
|
|
(2,356)
|
|
|
1,080
|
|
|
|
|
|
(5.9)
|
|
|
0.9
|
|
|
|
|
|
(399)
|
|
|
144
|
|
|
|
|
||||||
% Change
|
|
(100.0
|
)%
|
|
84.6
|
%
|
|
|
|
|
(100.0
|
)%
|
|
18.0
|
%
|
|
|
|
|
(100.0
|
)%
|
|
56.5
|
%
|
|
|
|
||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Retail
|
|
—
|
|
|
1,362
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
851
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
3,799
|
|
|
—
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
|
—
|
|
|
365
|
|
||||||
Total
|
|
—
|
|
|
1,362
|
|
|
3,799
|
|
|
—
|
|
|
1.6
|
|
|
10.4
|
|
|
—
|
|
|
851
|
|
|
365
|
|
||||||
Change
|
|
(1,362)
|
|
|
(2,437)
|
|
|
|
|
|
(1.6)
|
|
|
(8.8)
|
|
|
|
|
|
(851)
|
|
|
486
|
|
|
|
|
||||||
% Change
|
|
(100.0
|
)%
|
|
(64.1
|
)%
|
|
|
|
|
(100.0
|
)%
|
|
(84.6
|
)%
|
|
|
|
|
(100.0
|
)%
|
|
133.2
|
%
|
|
|
|
||||||
Total commercial land sales closed in period (a)
|
|
$
|
—
|
|
|
$
|
5,116
|
|
|
$
|
18,254
|
|
|
—
|
|
|
9.9
|
|
|
35.7
|
|
|
|
|
|
|
|
|
(a)
|
Excludes revenues closed and deferred for recognition in a previous period that met criteria for recognition in the current period. Please see the Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue table below which reconciles Total residential and commercial land sales closed to Land sales for the years ended December 31, 2019, 2018 and 2017.
|
|
|
For the Year Ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Total residential land sales closed in period
|
|
$
|
325,872
|
|
|
$
|
235,013
|
|
|
$
|
189,017
|
|
Total commercial land sales closed in period
|
|
—
|
|
|
5,116
|
|
|
18,254
|
|
|||
Net recognized (deferred) revenue:
|
|
|
|
|
|
|
||||||
Bridgeland
|
|
81
|
|
|
553
|
|
|
6,722
|
|
|||
Summerlin
|
|
(19,290
|
)
|
|
7,049
|
|
|
20,063
|
|
|||
Total net recognized (deferred) revenue
|
|
(19,209
|
)
|
|
7,602
|
|
|
26,785
|
|
|||
Special Improvement District revenue
|
|
23,483
|
|
|
14,174
|
|
|
14,539
|
|
|||
Land sales
|
|
$
|
330,146
|
|
|
$
|
261,905
|
|
|
$
|
248,595
|
|
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
MPC segment EBT (a)
|
|
$
|
257,586
|
|
|
$
|
202,955
|
|
|
$
|
190,351
|
|
|
$
|
54,631
|
|
|
$
|
12,604
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales - land
|
|
141,852
|
|
|
124,214
|
|
|
121,116
|
|
|
17,638
|
|
|
3,098
|
|
|||||
Depreciation and amortization
|
|
424
|
|
|
243
|
|
|
323
|
|
|
181
|
|
|
(80
|
)
|
|||||
MUD and SID bonds collections, net (b)
|
|
24,047
|
|
|
37,401
|
|
|
56,509
|
|
|
(13,354
|
)
|
|
(19,108
|
)
|
|||||
Distributions from real estate and other affiliates
|
|
16,051
|
|
|
10,000
|
|
|
10,000
|
|
|
6,051
|
|
|
—
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MPC development expenditures
|
|
(238,951
|
)
|
|
(195,504
|
)
|
|
(193,087
|
)
|
|
(43,447
|
)
|
|
(2,417
|
)
|
|||||
MPC land acquisitions
|
|
(752
|
)
|
|
(8,826
|
)
|
|
(4,391
|
)
|
|
8,074
|
|
|
(4,435
|
)
|
|||||
Equity in earnings in real estate and other affiliates
|
|
(28,336
|
)
|
|
(36,284
|
)
|
|
(23,234
|
)
|
|
7,948
|
|
|
(13,050
|
)
|
|||||
MPC Net Contribution
|
|
$
|
171,921
|
|
|
$
|
134,199
|
|
|
$
|
157,587
|
|
|
$
|
37,722
|
|
|
$
|
(23,388
|
)
|
|
(a)
|
For a detailed breakdown of our MPC segment EBT, refer to Note 17 - Segments in our Notes to Consolidated Financial Statements.
|
(b)
|
SID collections are shown net of SID transfers to buyers in the respective periods.
|
(In thousands)
|
|
Bridgeland
|
|
Columbia
|
|
Summerlin
|
|
The Woodlands
|
|
The Woodlands Hills
|
|
Total MPC
|
||||||||||||
Balance December 31, 2017
|
|
$
|
458,908
|
|
|
$
|
16,628
|
|
|
$
|
852,233
|
|
|
$
|
206,049
|
|
|
$
|
108,460
|
|
|
$
|
1,642,278
|
|
Acquisitions
|
|
506
|
|
|
—
|
|
|
—
|
|
|
8,320
|
|
|
—
|
|
|
8,826
|
|
||||||
Development expenditures (a)
|
|
87,737
|
|
|
15
|
|
|
75,485
|
|
|
12,398
|
|
|
19,869
|
|
|
195,504
|
|
||||||
MPC Cost of sales
|
|
(16,097
|
)
|
|
—
|
|
|
(87,229
|
)
|
|
(16,563
|
)
|
|
(4,325
|
)
|
|
(124,214
|
)
|
||||||
MUD reimbursable costs (b)
|
|
(59,842
|
)
|
|
—
|
|
|
—
|
|
|
(2,521
|
)
|
|
(7,994
|
)
|
|
(70,357
|
)
|
||||||
Transfer to Strategic Developments
|
|
(812
|
)
|
|
—
|
|
|
(6,705
|
)
|
|
(3,235
|
)
|
|
—
|
|
|
(10,752
|
)
|
||||||
Other (c)
|
|
3,451
|
|
|
(9
|
)
|
|
(3,876
|
)
|
|
(167
|
)
|
|
1,976
|
|
|
1,375
|
|
||||||
Balance December 31, 2018
|
|
473,851
|
|
|
16,634
|
|
|
829,908
|
|
|
204,281
|
|
|
117,986
|
|
|
1,642,660
|
|
||||||
Acquisitions
|
|
752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
752
|
|
||||||
Development expenditures (a)
|
|
115,135
|
|
|
—
|
|
|
98,303
|
|
|
10,978
|
|
|
14,535
|
|
|
238,951
|
|
||||||
MPC Cost of sales
|
|
(22,781
|
)
|
|
—
|
|
|
(93,590
|
)
|
|
(20,600
|
)
|
|
(4,881
|
)
|
|
(141,852
|
)
|
||||||
MUD reimbursable costs (b)
|
|
(82,636
|
)
|
|
—
|
|
|
—
|
|
|
(1,483
|
)
|
|
(7,568
|
)
|
|
(91,687
|
)
|
||||||
Transfer to Strategic Developments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,426
|
)
|
|
—
|
|
|
(6,426
|
)
|
||||||
Other (c)
|
|
2,993
|
|
|
9
|
|
|
10,819
|
|
|
23
|
|
|
(568
|
)
|
|
13,276
|
|
||||||
Balance December 31, 2019
|
|
$
|
487,314
|
|
|
$
|
16,643
|
|
|
$
|
845,440
|
|
|
$
|
186,773
|
|
|
$
|
119,504
|
|
|
$
|
1,655,674
|
|
|
(a)
|
Development expenditures are inclusive of capitalized interest and property taxes.
|
(b)
|
MUD reimbursable costs represent land development expenditures transferred to MUD Receivables.
|
(c)
|
Primarily consists of changes in development expenditures payable.
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Minimum rents
|
$
|
7,404
|
|
|
$
|
8,753
|
|
|
$
|
6,950
|
|
|
$
|
(1,349
|
)
|
|
$
|
1,803
|
|
Tenant recoveries
|
1,178
|
|
|
1,209
|
|
|
867
|
|
|
(31
|
)
|
|
342
|
|
|||||
Other land revenues
|
2,408
|
|
|
814
|
|
|
—
|
|
|
1,594
|
|
|
814
|
|
|||||
Other rental and property revenues
|
44,655
|
|
|
21,856
|
|
|
2,442
|
|
|
22,799
|
|
|
19,414
|
|
|||||
Total revenues
|
55,645
|
|
|
32,632
|
|
|
10,259
|
|
|
23,013
|
|
|
22,373
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other property operating costs
|
(73,373
|
)
|
|
(44,698
|
)
|
|
(10,520
|
)
|
|
(28,675
|
)
|
|
(34,178
|
)
|
|||||
Rental property real estate taxes
|
(1,366
|
)
|
|
(1,019
|
)
|
|
(644
|
)
|
|
(347
|
)
|
|
(375
|
)
|
|||||
Rental property maintenance costs
|
(3,154
|
)
|
|
(3,017
|
)
|
|
(1,858
|
)
|
|
(137
|
)
|
|
(1,159
|
)
|
|||||
Provision (recovery) for doubtful accounts
|
21
|
|
|
(982
|
)
|
|
(114
|
)
|
|
1,003
|
|
|
(868
|
)
|
|||||
Total operating expenses
|
(77,872
|
)
|
|
(49,716
|
)
|
|
(13,136
|
)
|
|
(28,156
|
)
|
|
(36,580
|
)
|
|||||
Segment operating income
|
(22,227
|
)
|
|
(17,084
|
)
|
|
(2,877
|
)
|
|
(5,143
|
)
|
|
(14,207
|
)
|
|||||
Depreciation and amortization
|
(26,381
|
)
|
|
(12,466
|
)
|
|
(6,270
|
)
|
|
(13,915
|
)
|
|
(6,196
|
)
|
|||||
Interest (expense) income, net
|
(12,865
|
)
|
|
6,291
|
|
|
13,229
|
|
|
(19,156
|
)
|
|
(6,938
|
)
|
|||||
Other (loss) income, net
|
(22
|
)
|
|
102
|
|
|
(37
|
)
|
|
(124
|
)
|
|
139
|
|
|||||
Equity in losses from real estate and other affiliates
|
(2,592
|
)
|
|
(705
|
)
|
|
(643
|
)
|
|
(1,887
|
)
|
|
(62
|
)
|
|||||
Loss on sale or disposal of real estate and other assets
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|||||
Gain on extinguishment of debt
|
4,851
|
|
|
—
|
|
|
—
|
|
|
4,851
|
|
|
—
|
|
|||||
EBT
|
$
|
(59,242
|
)
|
|
$
|
(23,862
|
)
|
|
$
|
3,402
|
|
|
$
|
(35,380
|
)
|
|
$
|
(27,264
|
)
|
Reconciliation of Operating Assets Segment EBT to NOI
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Total Seaport District segment EBT
|
|
$
|
(59,242
|
)
|
|
$
|
(23,862
|
)
|
|
$
|
3,402
|
|
|
$
|
(35,380
|
)
|
|
$
|
(27,264
|
)
|
Depreciation and amortization
|
|
26,381
|
|
|
12,466
|
|
|
6,270
|
|
|
13,915
|
|
|
6,196
|
|
|||||
Interest expense (income), net
|
|
12,865
|
|
|
(6,291
|
)
|
|
(13,229
|
)
|
|
19,156
|
|
|
6,938
|
|
|||||
Equity in losses from real estate and other affiliates
|
|
2,592
|
|
|
705
|
|
|
643
|
|
|
1,887
|
|
|
62
|
|
|||||
Loss on sale or disposal of real estate and other assets
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Gain on extinguishment of debt
|
|
(4,851
|
)
|
|
—
|
|
|
—
|
|
|
(4,851
|
)
|
|
—
|
|
|||||
Impact of straight-line rent
|
|
1,634
|
|
|
(433
|
)
|
|
115
|
|
|
2,067
|
|
|
(548
|
)
|
|||||
Other - development-related
|
|
5,595
|
|
|
11,937
|
|
|
1,541
|
|
|
(6,342
|
)
|
|
10,396
|
|
|||||
Total Seaport District NOI - Consolidated
|
|
(15,020
|
)
|
|
(5,478
|
)
|
|
(1,258
|
)
|
|
(9,542
|
)
|
|
(4,220
|
)
|
|||||
Company's Share NOI - Equity investees
|
|
(710
|
)
|
|
(713
|
)
|
|
—
|
|
|
3
|
|
|
(713
|
)
|
|||||
Total Seaport District NOI
|
|
$
|
(15,730
|
)
|
|
$
|
(6,191
|
)
|
|
$
|
(1,258
|
)
|
|
$
|
(9,539
|
)
|
|
$
|
(4,933
|
)
|
|
|
Economic
|
|
December 31, 2019
|
|||||||
(In thousands)
|
|
Ownership
|
|
Total Debt
|
|
Total Cash
|
|||||
The Seaport District
|
|
|
|
|
|
|
|||||
Mr. C Seaport
|
|
35.00
|
%
|
|
$
|
41,000
|
|
|
$
|
1,838
|
|
Bar Wayō
|
|
89.75
|
%
|
|
$
|
—
|
|
|
$
|
725
|
|
•
|
The Rooftop at Pier 17® at the Seaport District was named “Best New Concert Venue in North America” for 2018 at the 30th Annual Pollstar Awards;
|
•
|
Completed our first season of the Pier 17 Winterland, in which we attracted 28,000 skaters to New York’s only outdoor rooftop ice rink;
|
•
|
Celebrated the openings of several new businesses, including The Fulton by Jean-Georges, Bar Wayō, the latest offering from the renowned Momofuku restaurant group, Malibu Farm, a California-inspired farm-to-table eatery and The Lookout on Pier 17, a seasonal pop-up bar; and
|
•
|
Sold out 30 concerts held at The Rooftop at Pier 17® during the Summer Concert Series, selling over 124,000 tickets. The full artist lineup included a diverse roster of A-list talent from various genres.
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Minimum rents
|
$
|
373
|
|
|
$
|
1,183
|
|
|
$
|
565
|
|
|
$
|
(810
|
)
|
|
$
|
618
|
|
Condominium rights and unit sales
|
448,940
|
|
|
357,720
|
|
|
464,251
|
|
|
91,220
|
|
|
(106,531
|
)
|
|||||
Other land, rental and property revenues
|
8,635
|
|
|
15,309
|
|
|
8,206
|
|
|
(6,674
|
)
|
|
7,103
|
|
|||||
Total revenues
|
457,948
|
|
|
374,212
|
|
|
473,022
|
|
|
83,736
|
|
|
(98,810
|
)
|
|||||
Condominium rights and unit cost of sales
|
(369,759
|
)
|
|
(262,562
|
)
|
|
(338,361
|
)
|
|
(107,197
|
)
|
|
75,799
|
|
|||||
Other property operating costs
|
(18,725
|
)
|
|
(25,097
|
)
|
|
(18,639
|
)
|
|
6,372
|
|
|
(6,458
|
)
|
|||||
Real estate taxes
|
(2,932
|
)
|
|
(2,458
|
)
|
|
(2,662
|
)
|
|
(474
|
)
|
|
204
|
|
|||||
Rental property maintenance costs
|
(447
|
)
|
|
(674
|
)
|
|
(560
|
)
|
|
227
|
|
|
(114
|
)
|
|||||
Provision (recovery) for doubtful accounts
|
15
|
|
|
(15
|
)
|
|
2
|
|
|
30
|
|
|
(17
|
)
|
|||||
Total operating expenses
|
(391,848
|
)
|
|
(290,806
|
)
|
|
(360,220
|
)
|
|
(101,042
|
)
|
|
69,414
|
|
|||||
Segment operating income
|
66,100
|
|
|
83,406
|
|
|
112,802
|
|
|
(17,306
|
)
|
|
(29,396
|
)
|
|||||
Depreciation and amortization
|
(5,473
|
)
|
|
(3,307
|
)
|
|
(1,210
|
)
|
|
(2,166
|
)
|
|
(2,097
|
)
|
|||||
Interest income, net
|
11,321
|
|
|
12,476
|
|
|
12,237
|
|
|
(1,155
|
)
|
|
239
|
|
|||||
Other income, net
|
831
|
|
|
3,015
|
|
|
109
|
|
|
(2,184
|
)
|
|
2,906
|
|
|||||
Equity in earnings (losses) from real estate and other affiliates
|
1,213
|
|
|
2,364
|
|
|
(373
|
)
|
|
(1,151
|
)
|
|
2,737
|
|
|||||
Gain on sale or disposal of real estate and other assets, net
|
27,119
|
|
|
—
|
|
|
51,242
|
|
|
27,119
|
|
|
(51,242
|
)
|
|||||
EBT
|
$
|
101,111
|
|
|
$
|
97,954
|
|
|
$
|
174,807
|
|
|
$
|
3,157
|
|
|
$
|
(76,853
|
)
|
Ward Village Condominiums as of December 31, 2019
|
|||||||||||||||||||
($ in millions)
|
|
Total Units
|
|
Closed or Under Contract
|
|
Percent of Units Sold
|
|
Total Projected Costs
|
|
Costs Paid to Date
|
|
Estimated
Completion Date |
|||||||
Waiea
|
|
177
|
|
|
172
|
|
|
97.2
|
%
|
|
$
|
464.3
|
|
|
$
|
416.2
|
|
|
Complete
|
Anaha
|
|
317
|
|
|
315
|
|
|
99.4
|
%
|
|
401.3
|
|
|
394.6
|
|
|
Complete
|
||
Ae‘o
|
|
465
|
|
|
465
|
|
|
100.0
|
%
|
|
429.6
|
|
|
417.9
|
|
|
Complete
|
||
Ke Kilohana
|
|
423
|
|
|
423
|
|
|
100.0
|
%
|
|
218.9
|
|
|
211.8
|
|
|
Complete
|
||
‘A‘ali‘i
|
|
750
|
|
|
626
|
|
|
83.5
|
%
|
|
411.9
|
|
|
116.2
|
|
|
2021
|
||
Kō'ula
|
|
565
|
|
|
420
|
|
|
74.3
|
%
|
|
487.1
|
|
|
44.6
|
|
|
2022
|
||
Total under construction
|
|
2,697
|
|
|
2,421
|
|
|
89.8
|
%
|
|
$
|
2,413.1
|
|
|
$
|
1,601.2
|
|
|
|
•
|
6100 Merriweather and Garage
|
•
|
Two Merriweather
|
•
|
Creekside Park West
|
•
|
1725-1735 Hughes Landing Boulevard
|
•
|
Three Hughes Landing
|
•
|
Two Summerlin
|
•
|
Pier 17
|
($ in thousands)
|
|
Total Estimated
Costs (a) |
|
Costs Paid Through December 31, 2019 (b)
|
|
Estimated Remaining to be Spent
|
|
Remaining Buyer Deposits/Holdback to be Drawn
|
|
Debt
to be Drawn (c) |
|
Costs Remaining to be Paid, Net of Debt and Buyer Deposits/Holdbacks to be Drawn (c)
|
Estimated
Completion Date |
|||||||||||||
Operating Assets
|
|
(A)
|
|
(B)
|
|
(A) - (B) = (C)
|
|
(D)
|
|
(E)
|
|
(C) - (D) - (E) = (F)
|
|
|
||||||||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
6100 Merriweather and Garage
|
|
$
|
138,221
|
|
|
$
|
83,228
|
|
|
$
|
54,993
|
|
|
$
|
—
|
|
|
$
|
53,426
|
|
|
$
|
1,567
|
|
(d)
|
Open
|
Two Merriweather
|
|
40,941
|
|
|
34,679
|
|
|
6,262
|
|
|
—
|
|
|
6,315
|
|
|
(53
|
)
|
(d)
|
Open
|
||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Creekside Park West
|
|
22,625
|
|
|
12,580
|
|
|
10,045
|
|
|
—
|
|
|
9,495
|
|
|
550
|
|
(d)
|
Open
|
||||||
100 Fellowship Drive
|
|
63,278
|
|
|
57,390
|
|
|
5,888
|
|
|
—
|
|
|
3,510
|
|
|
2,378
|
|
|
Open
|
||||||
1725-1735 Hughes Landing Boulevard
|
|
204,878
|
|
|
197,584
|
|
|
7,294
|
|
|
—
|
|
|
—
|
|
|
7,294
|
|
(d)(e)
|
Open
|
||||||
Three Hughes Landing
|
|
90,133
|
|
|
81,057
|
|
|
9,076
|
|
|
—
|
|
|
1,360
|
|
|
7,716
|
|
(d)
|
Open
|
||||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lakeside Row
|
|
48,412
|
|
|
37,039
|
|
|
11,373
|
|
|
—
|
|
|
10,273
|
|
|
1,100
|
|
|
Open
|
||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Las Vegas Ballpark
|
|
127,802
|
|
|
120,426
|
|
|
7,376
|
|
|
—
|
|
|
—
|
|
|
7,376
|
|
(f)
|
Open
|
||||||
Two Summerlin
|
|
53,238
|
|
|
47,109
|
|
|
6,129
|
|
|
|
|
—
|
|
|
6,129
|
|
(d)(e)
|
Open
|
|||||||
Tanager Apartments
|
|
59,276
|
|
|
49,862
|
|
|
9,414
|
|
|
—
|
|
|
14,494
|
|
|
(5,080
|
)
|
(g)
|
Open
|
||||||
Total Operating Assets
|
|
848,804
|
|
|
720,954
|
|
|
127,850
|
|
|
—
|
|
|
98,873
|
|
|
28,977
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Seaport District Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pier 17 and Seaport District Historic Area / Uplands
|
|
659,018
|
|
|
582,561
|
|
|
76,457
|
|
|
—
|
|
|
—
|
|
|
76,457
|
|
(d)(h)(i)
|
Open
|
||||||
Tin Building
|
|
173,452
|
|
|
72,057
|
|
|
101,395
|
|
|
—
|
|
|
—
|
|
|
101,395
|
|
(i)
|
2021
|
||||||
Total Seaport District Assets
|
|
832,470
|
|
|
654,618
|
|
|
177,852
|
|
|
—
|
|
|
—
|
|
|
177,852
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Strategic Developments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Chicago
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
110 North Wacker
|
|
722,643
|
|
|
348,043
|
|
|
374,600
|
|
|
—
|
|
|
374,600
|
|
|
—
|
|
(j)
|
Q4 2020
|
||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Juniper Apartments
|
|
116,386
|
|
|
66,307
|
|
|
50,079
|
|
|
—
|
|
|
51,047
|
|
|
(968
|
)
|
(g)
|
Q1 2020
|
||||||
Merriweather District Area 3 Standalone Restaurant
|
|
5,624
|
|
|
522
|
|
|
5,102
|
|
|
—
|
|
|
—
|
|
|
5,102
|
|
(k)
|
Q4 2020
|
||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Creekside Park Apartments Phase II
|
|
57,472
|
|
|
1,736
|
|
|
55,736
|
|
|
—
|
|
|
—
|
|
|
55,736
|
|
(k)
|
2021
|
||||||
Two Lakes Edge
|
|
107,706
|
|
|
70,126
|
|
|
37,580
|
|
|
—
|
|
|
35,821
|
|
|
1,759
|
|
|
Q2 2020
|
||||||
Millennium Phase III Apartments
|
|
45,033
|
|
|
7,496
|
|
|
37,537
|
|
|
—
|
|
|
30,699
|
|
|
6,838
|
|
|
Q4 2020
|
||||||
8770 New Trails
|
|
45,985
|
|
|
23,038
|
|
|
22,947
|
|
|
—
|
|
|
20,363
|
|
|
2,584
|
|
|
Q1 2020
|
||||||
Ward Village
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
‘A‘ali‘i
|
|
411,900
|
|
|
116,169
|
|
|
295,731
|
|
|
49,351
|
|
|
262,983
|
|
|
(16,603
|
)
|
(g)
|
2021
|
||||||
Ae‘o
|
|
429,603
|
|
|
417,873
|
|
|
11,730
|
|
|
—
|
|
|
—
|
|
|
11,730
|
|
(l)
|
Open
|
||||||
Anaha
|
|
401,314
|
|
|
394,643
|
|
|
6,671
|
|
|
—
|
|
|
—
|
|
|
6,671
|
|
|
Open
|
||||||
Ke Kilohana
|
|
218,898
|
|
|
211,763
|
|
|
7,135
|
|
|
—
|
|
|
—
|
|
|
7,135
|
|
(l)
|
Open
|
||||||
Kō'ula
|
|
487,110
|
|
|
44,615
|
|
|
442,495
|
|
|
—
|
|
|
—
|
|
|
442,495
|
|
(k)(m)
|
2022
|
||||||
Waiea
|
|
464,269
|
|
|
416,158
|
|
|
48,111
|
|
|
—
|
|
|
—
|
|
|
48,111
|
|
(n)
|
Open
|
||||||
Total Strategic Developments
|
|
3,513,943
|
|
|
2,118,489
|
|
|
1,395,454
|
|
|
49,351
|
|
|
775,513
|
|
|
570,590
|
|
|
|
||||||
Combined Total at December 31, 2019
|
|
$
|
5,195,217
|
|
|
$
|
3,494,061
|
|
|
$
|
1,701,156
|
|
|
$
|
49,351
|
|
|
$
|
874,386
|
|
|
$
|
777,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Creekside Park Apartments Phase II financing
|
|
|
$
|
(43,387
|
)
|
(o)
|
|
|||||||||||||
|
|
|
|
|
|
Kō'ula estimated buyer deposits
|
|
|
(95,900
|
)
|
|
|
||||||||||||||
|
|
|
|
|
|
Kō'ula estimated financing
|
|
|
(356,800
|
)
|
|
|
||||||||||||||
|
|
|
|
Estimated costs to be funded net of financing, assuming closing on estimated financing
|
|
|
$
|
281,332
|
|
|
|
|
(a)
|
Total Estimated Costs represent all costs to be incurred on the project which include construction costs, demolition costs, marketing costs, capitalized leasing, payroll or project development fees, deferred financing costs and advances for certain accrued costs from lenders and excludes land costs and capitalized corporate interest allocated to the project. Total Estimated Costs for assets at Ward Village and Columbia exclude master plan infrastructure and amenity costs at Ward Village and Merriweather District.
|
(b)
|
Costs included in (a) above which have been paid through December 31, 2019.
|
(c)
|
With respect to our condominium projects, remaining debt to be drawn is reduced by deposits utilized for construction.
|
(d)
|
Final completion is dependent on lease-up and tenant build-out.
|
(e)
|
Construction loans for 1725-1735 Hughes Landing Boulevard, Aristocrat and Two Summerlin have been repaid in full and any remaining project costs will be funded by us.
|
(f)
|
Excludes cost to acquire the Las Vegas Aviators.
|
(g)
|
Negative balances represent cash to be received in excess of Estimated Remaining to be Spent. These items are primarily related to December 2019 costs that were paid by us, but not yet reimbursed by our lenders. We expect to receive funds from our lenders for these costs in the future.
|
(h)
|
Pier 17 and Seaport District Historic Area / Uplands Total Estimated Costs and Costs Paid Through December 31, 2019 include costs required for the Pier 17 and Historic Area/Uplands and are not reduced by the insurance proceeds received to date.
|
(i)
|
We closed on a $250.0 million loan for the redevelopment of the Seaport District during the three months ended June 30, 2019. All proceeds, less the interest escrow, have been received, and future project costs will be funded with the loan proceeds, which are included in our cash balance.
|
(j)
|
110 North Wacker is a consolidated joint venture discussed further in Note 2 - Real Estate and Other Affiliates. Total Estimated Costs exclude $76.0 million of the $86.0 million land value contributed to the joint venture at closing; The Debt to be Drawn includes future draws on the construction loan and anticipated equity partner and JV partner contributions. Costs Remaining to be Paid represent our remaining equity commitment. At loan closing, we received a $52.2 million cash distribution from the venture. In May 2019, we closed on a loan modification which reduced the amount of equity we are required to put into the project by $35.3 million.
|
(k)
|
Positive balances represent future spending which we anticipate will be funded through a combination of construction loans which we are currently seeking and equity.
|
(l)
|
The Ae‘o facility was repaid in December 2018 in conjunction with closing on the sales of units at the property. The Ke Kilohana facility was repaid in June 2019 in conjunction with closing on the sales of units at the property.
|
(m)
|
Initial estimated costs to be finalized.
|
(n)
|
Total estimate includes amounts necessary for warranty repairs. However, we anticipate recovering a substantial amount of these costs in the future which is not reflected in this schedule.
|
(o)
|
The financing for Creekside Park Apartments Phase II closed in January 2020. See Note 7 - Mortgages, Notes and Loans Payable, Net for additional information.
|
|
Year Ended December 31,
|
|
2019-2018
|
|
2018-2017
|
||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
Change
|
|
Change
|
||||||||||
Corporate income
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
General and administrative
|
(158,281
|
)
|
|
(105,305
|
)
|
|
(89,882
|
)
|
|
(52,976
|
)
|
|
(15,423
|
)
|
|||||
Corporate interest expense, net
|
(45,023
|
)
|
|
(47,677
|
)
|
|
(48,700
|
)
|
|
2,654
|
|
|
1,023
|
|
|||||
Loss on extinguishment of debt
|
(210
|
)
|
|
—
|
|
|
(46,410
|
)
|
|
(210
|
)
|
|
46,410
|
|
|||||
Warrant liability loss
|
—
|
|
|
—
|
|
|
(43,443
|
)
|
|
—
|
|
|
43,443
|
|
|||||
Corporate other income (loss), net
|
9,627
|
|
|
(866
|
)
|
|
(45
|
)
|
|
10,493
|
|
|
(821
|
)
|
|||||
Corporate (loss) gain on sale or disposal of real estate and other assets, net
|
(4,751
|
)
|
|
—
|
|
|
125
|
|
|
(4,751
|
)
|
|
(125
|
)
|
|||||
Equity in earnings (loss) from real estate and other affiliates
|
—
|
|
|
17
|
|
|
(455
|
)
|
|
(17
|
)
|
|
472
|
|
|||||
Corporate depreciation and amortization
|
(8,021
|
)
|
|
(7,256
|
)
|
|
(6,614
|
)
|
|
(765
|
)
|
|
(642
|
)
|
|||||
Demolition costs
|
(855
|
)
|
|
(17,329
|
)
|
|
(1,923
|
)
|
|
16,474
|
|
|
(15,406
|
)
|
|||||
Development-related marketing costs
|
(23,067
|
)
|
|
(29,249
|
)
|
|
(20,504
|
)
|
|
6,182
|
|
|
(8,745
|
)
|
|||||
(Provision) benefit for income taxes
|
(29,245
|
)
|
|
(15,492
|
)
|
|
45,801
|
|
|
(13,753
|
)
|
|
(61,293
|
)
|
|||||
Total Corporate income, expenses and other items
|
$
|
(259,792
|
)
|
|
$
|
(223,157
|
)
|
|
$
|
(212,050
|
)
|
|
$
|
(36,635
|
)
|
|
$
|
(11,107
|
)
|
|
Capitalized Internal Costs
|
|
Capitalized Internal Costs Related to
Compensation Costs |
||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Operating Assets segment
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
1.5
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
1.3
|
|
MPC segment
|
9.4
|
|
|
9.6
|
|
|
9.6
|
|
|
7.3
|
|
|
7.6
|
|
|
7.7
|
|
||||||
Seaport District segment
|
2.8
|
|
|
6.0
|
|
|
4.9
|
|
|
2.5
|
|
|
5.2
|
|
|
4.1
|
|
||||||
Strategic Developments segment
|
24.1
|
|
|
24.1
|
|
|
21.0
|
|
|
21.5
|
|
|
21.2
|
|
|
17.8
|
|
||||||
Total
|
$
|
36.5
|
|
|
$
|
39.9
|
|
|
$
|
37.0
|
|
|
$
|
31.5
|
|
|
$
|
34.2
|
|
|
$
|
30.9
|
|
(In thousands)
Segment Basis (a) |
Operating
Assets |
Master
Planned Communities |
The Seaport District
|
Strategic
Developments |
Segment
Totals |
Non-
Segment Amounts |
December 31, 2019
|
||||||||||||||||||
Mortgages, notes and loans payable
|
$
|
2,315,806
|
|
(b)
|
$
|
239,275
|
|
(d)
|
$
|
352,408
|
|
(f)
|
$
|
296,758
|
|
|
$
|
3,204,247
|
|
$
|
992,542
|
|
$
|
4,196,789
|
|
Less: Cash and cash equivalents
|
(59,801
|
)
|
(c)
|
(129,028
|
)
|
(e)
|
(8,253
|
)
|
(g)
|
(12,165
|
)
|
(h)
|
(209,247
|
)
|
(270,312
|
)
|
(479,559
|
)
|
|||||||
Special Improvement District receivables
|
—
|
|
|
(42,996
|
)
|
|
—
|
|
|
—
|
|
|
(42,996
|
)
|
—
|
|
(42,996
|
)
|
|||||||
Municipal Utility District receivables, net
|
—
|
|
|
(280,742
|
)
|
|
—
|
|
|
—
|
|
|
(280,742
|
)
|
—
|
|
(280,742
|
)
|
|||||||
TIF receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,931
|
)
|
|
(3,931
|
)
|
—
|
|
(3,931
|
)
|
|||||||
Net Debt
|
$
|
2,256,005
|
|
|
$
|
(213,491
|
)
|
|
$
|
344,155
|
|
|
$
|
280,662
|
|
|
$
|
2,667,331
|
|
$
|
722,230
|
|
$
|
3,389,561
|
|
|
(a)
|
Please refer to Note 17 - Segments in our Notes to Consolidated Financial Statements.
|
(b)
|
Includes our $79.6 million share of Mortgages, notes and loans payable of our real estate and other affiliates in Operating Assets (Woodlands Sarofim #1, The Metropolitan Downtown Columbia and m.flats/TEN.M).
|
(c)
|
Includes our $2.4 million share of Cash and cash equivalents of our real estate and other affiliates in Operating Assets (Woodlands Sarofim #1, The Metropolitan Downtown Columbia, Stewart Title of Montgomery County, TX and m.flats/TEN.M).
|
(d)
|
Includes our $6.4 million share of Mortgages, notes and loans payable of our real estate and other affiliates in MPC related to The Summit.
|
(e)
|
Includes our $51.6 million share of Cash and cash equivalents of our real estate and other affiliates in MPC related to The Summit.
|
(f)
|
Includes our $14.4 million share of Mortgages, notes and loans payable of our real estate and other affiliates in the Seaport District related to Mr. C Seaport.
|
(g)
|
Includes our $1.3 million share of Cash and cash equivalents of our real estate and other affiliates in Seaport District (Mr. C Seaport and Bar Wayō).
|
(h)
|
Includes our $1.3 million share of Cash and cash equivalents of our real estate and other affiliates in Strategic Developments (KR Holdings, HHMK Development and Circle T Ranch and Power Center).
|
(In thousands)
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
Mortgages, notes and loans payable (a)
|
|
$
|
424,933
|
|
|
$
|
320,641
|
|
|
$
|
137,825
|
|
|
$
|
967,129
|
|
|
$
|
764,615
|
|
|
$
|
1,523,475
|
|
|
$
|
4,138,618
|
|
Interest Payments (b)
|
|
184,846
|
|
|
173,275
|
|
|
161,404
|
|
|
147,400
|
|
|
95,811
|
|
|
141,367
|
|
|
904,103
|
|
|||||||
Ground lease and other leasing commitments
|
|
6,927
|
|
|
7,066
|
|
|
6,328
|
|
|
6,374
|
|
|
6,432
|
|
|
266,852
|
|
|
299,979
|
|
|||||||
Total
|
|
$
|
616,706
|
|
|
$
|
500,982
|
|
|
$
|
305,557
|
|
|
$
|
1,120,903
|
|
|
$
|
866,858
|
|
|
$
|
1,931,694
|
|
|
$
|
5,342,700
|
|
|
(a)
|
Based on final maturity, inclusive of extension options.
|
(b)
|
Interest is based on the borrowings that are presently outstanding and current floating interest rates.
|
|
|
Contractual Maturity Date
|
|
|
||||||||||||||||||||||||
(In thousands)
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
Mortgages, notes and loans payable
|
|
$
|
424,933
|
|
|
$
|
320,641
|
|
|
$
|
137,825
|
|
|
$
|
967,129
|
|
|
$
|
764,615
|
|
|
$
|
1,523,475
|
|
|
$
|
4,138,618
|
|
Weighted-average interest rate
|
|
4.58
|
%
|
|
4.62
|
%
|
|
4.72
|
%
|
|
4.80
|
%
|
|
4.93
|
%
|
|
4.99
|
%
|
|
|
Exhibit No.
|
|
Description of Exhibit
|
1.1
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2+
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3*
|
|
|
|
|
|
10.4*
|
|
|
|
|
|
10.5*
|
|
|
|
|
|
10.6*
|
|
|
|
|
|
10.7*
|
|
|
|
|
|
10.8*
|
|
|
|
|
|
10.9*
|
|
|
|
|
|
10.10*
|
|
|
|
|
|
10.11*
|
|
|
|
|
|
10.12*
|
|
|
|
|
|
10.13*
|
|
|
|
|
10.14*
|
|
|
|
|
|
10.15*
|
|
|
|
|
|
10.16*
|
|
|
|
|
|
10.17*
|
|
|
|
|
|
10.18*
|
|
|
|
|
|
10.19*
|
|
|
|
|
|
10.20*
|
|
|
|
|
|
10.21*
|
|
|
|
|
|
10.22*
|
|
|
|
|
|
10.23
|
|
|
|
|
|
10.24
|
|
|
|
|
|
10.25
|
|
|
|
|
10.26*
|
|
|
|
|
|
10.27*
|
|
|
|
|
|
10.28*
|
|
|
|
|
|
10.29*
|
|
|
|
|
|
10.30*
|
|
|
|
|
|
10.31*
|
|
|
|
|
|
10.32*
|
|
|
|
|
|
21.1+
|
|
|
|
|
|
23.1+
|
|
|
|
|
|
24.1+
|
|
|
|
|
|
31.1+
|
|
|
|
|
|
31.2+
|
|
|
|
|
|
32.1+
|
|
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document -- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
101.SCH+
|
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL+
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.LAB+
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE+
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.DEF+
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
|
/s/ Paul H. Layne
|
|
|
Paul H. Layne
|
|
|
Chief Executive Officer
|
|
February 27, 2020
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
*
|
|
Chairman of the Board and Director
|
|
February 27, 2020
|
William Ackman
|
|
|
|
|
|
|
|
|
|
/s/ Paul H. Layne
|
|
Director and Chief Executive Officer
|
|
February 27, 2020
|
Paul H. Layne
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ David R. O’Reilly
|
|
Chief Financial
Officer (Principal Financial and Accounting Officer)
|
|
February 27, 2020
|
David O’Reilly
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
Adam Flatto
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
Jeffrey Furber
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
Beth Kaplan
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
Allen Model
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
R. Scot Sellers
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
Steven Shepsman
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
February 27, 2020
|
Mary Ann Tighe
|
|
|
|
|
|
|
|
|
|
*/s/ Paul H. Layne
|
|
|
|
|
Paul H. Layne
|
|
|
|
|
Attorney-in-fact
|
|
|
|
|
Consolidated Financial Statements
|
Page Number
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Statement Schedule
|
|
|
|
|
|
Master Planned Communities (MPC) Cost of Sales Estimates
|
Description of the Matter
|
|
As discussed in Note 1 of the consolidated financial statements, when developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs, based on relative sales value, that benefit the property sold. For purposes of allocating development costs, estimates of future revenues and development costs are re-evaluated throughout the year, with adjustments being allocated prospectively to the remaining parcels available for sale.
MPC cost of sales estimates are highly judgmental as they are sensitive to cost escalation, sales price escalation and lot absorption, which are subject to judgment and affected by expectations about future market or economic conditions.
|
How We Addressed the Matter in Our Audit
|
|
We obtained an understanding of and evaluated the design and operating effectiveness of the Company’s internal controls over the estimation process that affect MPC cost of sales. This included controls over management’s monitoring and review of key assumptions, including the Company’s procedures to validate the completeness and accuracy of data used to determine estimates.
Our testing of the Company’s MPC cost of sales estimates included, among other procedures, evaluating management’s methodology of estimating future costs and revenues, testing the significant assumptions related to cost escalation, sales price escalation and lot absorption, evaluating the underlying data used by management and performing site visits for certain MPC developments to compare the overall status of the developments to what is reflected within the development cost models. We involved internal specialists to assist in comparing a sample of estimated future costs, lot absorption rates, and sales price escalation to market data, assessing contrary information and obtaining supporting evidence used to derive the estimates. We also assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the cost of sale estimates that resulted from changes in the assumptions.
|
|
|
December 31,
|
||||||
(In thousands, except par values and share amounts)
|
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
|
||||
Investment in real estate:
|
|
|
|
|
||||
Master Planned Communities assets
|
|
$
|
1,655,674
|
|
|
$
|
1,642,660
|
|
Buildings and equipment
|
|
3,813,595
|
|
|
2,932,963
|
|
||
Less: accumulated depreciation
|
|
(507,933
|
)
|
|
(380,892
|
)
|
||
Land
|
|
353,022
|
|
|
297,596
|
|
||
Developments
|
|
1,445,997
|
|
|
1,290,068
|
|
||
Net property and equipment
|
|
6,760,355
|
|
|
5,782,395
|
|
||
Investment in real estate and other affiliates
|
|
121,757
|
|
|
102,287
|
|
||
Net investment in real estate
|
|
6,882,112
|
|
|
5,884,682
|
|
||
Net investment in lease receivable
|
|
79,166
|
|
|
—
|
|
||
Cash and cash equivalents
|
|
422,857
|
|
|
499,676
|
|
||
Restricted cash
|
|
197,278
|
|
|
224,539
|
|
||
Accounts receivable, net
|
|
12,279
|
|
|
12,589
|
|
||
Municipal Utility District receivables, net
|
|
280,742
|
|
|
222,269
|
|
||
Notes receivable, net
|
|
36,379
|
|
|
4,694
|
|
||
Deferred expenses, net
|
|
133,182
|
|
|
95,714
|
|
||
Operating lease right-of-use assets, net
|
|
69,398
|
|
|
—
|
|
||
Prepaid expenses and other assets, net
|
|
300,373
|
|
|
411,636
|
|
||
Total assets
|
|
$
|
8,413,766
|
|
|
$
|
7,355,799
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Mortgages, notes and loans payable, net
|
|
$
|
4,096,470
|
|
|
$
|
3,181,213
|
|
Operating lease obligations
|
|
70,413
|
|
|
—
|
|
||
Deferred tax liabilities
|
|
180,748
|
|
|
157,188
|
|
||
Accounts payable and accrued expenses
|
|
733,147
|
|
|
779,272
|
|
||
Total liabilities
|
|
5,080,778
|
|
|
4,117,673
|
|
||
|
|
|
|
|
||||
Commitments and Contingencies (see Note 10)
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Equity:
|
|
|
|
|
||||
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued
|
|
—
|
|
|
—
|
|
||
Common stock: $.01 par value; 150,000,000 shares authorized, 43,635,893 issued and 42,585,633 outstanding as of December 31, 2019, and 43,511,473 shares issued and 42,991,624 outstanding as of December 31, 2018
|
|
437
|
|
|
436
|
|
||
Additional paid-in capital
|
|
3,343,983
|
|
|
3,322,433
|
|
||
Accumulated deficit
|
|
(46,385
|
)
|
|
(120,341
|
)
|
||
Accumulated other comprehensive loss
|
|
(29,372
|
)
|
|
(8,126
|
)
|
||
Treasury stock, at cost, 1,050,260 and 519,849 shares as of December 31, 2019 and 2018
|
|
(120,530
|
)
|
|
(62,190
|
)
|
||
Total stockholders' equity
|
|
3,148,133
|
|
|
3,132,212
|
|
||
Noncontrolling interests
|
|
184,855
|
|
|
105,914
|
|
||
Total equity
|
|
3,332,988
|
|
|
3,238,126
|
|
||
Total liabilities and equity
|
|
$
|
8,413,766
|
|
|
$
|
7,355,799
|
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Condominium rights and unit sales
|
|
$
|
448,940
|
|
|
$
|
357,720
|
|
|
$
|
464,251
|
|
Master Planned Communities land sales
|
|
330,146
|
|
|
261,905
|
|
|
248,595
|
|
|||
Minimum rents
|
|
221,907
|
|
|
207,315
|
|
|
183,025
|
|
|||
Tenant recoveries
|
|
54,710
|
|
|
49,993
|
|
|
45,814
|
|
|||
Hospitality revenues
|
|
87,864
|
|
|
82,037
|
|
|
76,020
|
|
|||
Builder price participation
|
|
35,681
|
|
|
27,085
|
|
|
22,835
|
|
|||
Other land revenues
|
|
23,399
|
|
|
21,314
|
|
|
28,166
|
|
|||
Other rental and property revenues
|
|
95,703
|
|
|
57,168
|
|
|
31,414
|
|
|||
Interest income from sales-type leases
|
|
2,189
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
|
1,300,539
|
|
|
1,064,537
|
|
|
1,100,120
|
|
|||
Expenses:
|
|
|
|
|
|
|
||||||
Condominium rights and unit cost of sales
|
|
369,759
|
|
|
262,562
|
|
|
338,361
|
|
|||
Master Planned Communities cost of sales
|
|
141,852
|
|
|
124,214
|
|
|
121,116
|
|
|||
Master Planned Communities operations
|
|
47,875
|
|
|
45,217
|
|
|
38,777
|
|
|||
Other property operating costs
|
|
175,230
|
|
|
133,761
|
|
|
91,729
|
|
|||
Rental property real estate taxes
|
|
36,861
|
|
|
32,183
|
|
|
29,185
|
|
|||
Rental property maintenance costs
|
|
17,410
|
|
|
15,813
|
|
|
13,432
|
|
|||
Hospitality operating costs
|
|
60,226
|
|
|
59,195
|
|
|
56,362
|
|
|||
(Recovery of) provision for doubtful accounts
|
|
(414
|
)
|
|
6,078
|
|
|
2,710
|
|
|||
Demolition costs
|
|
855
|
|
|
17,329
|
|
|
1,923
|
|
|||
Development-related marketing costs
|
|
23,067
|
|
|
29,249
|
|
|
20,504
|
|
|||
General and administrative
|
|
156,251
|
|
|
104,625
|
|
|
89,882
|
|
|||
Depreciation and amortization
|
|
155,798
|
|
|
126,565
|
|
|
132,252
|
|
|||
Total expenses
|
|
1,184,770
|
|
|
956,791
|
|
|
936,233
|
|
|||
Other:
|
|
|
|
|
|
|
||||||
Gain (loss) on sale or disposal of real estate and other assets, net
|
|
22,362
|
|
|
(4
|
)
|
|
55,235
|
|
|||
Other income (loss), net
|
|
12,179
|
|
|
(936
|
)
|
|
3,248
|
|
|||
Total other
|
|
34,541
|
|
|
(940
|
)
|
|
58,483
|
|
|||
|
|
|
|
|
|
|
||||||
Operating income
|
|
150,310
|
|
|
106,806
|
|
|
222,370
|
|
|||
|
|
|
|
|
|
|
||||||
Selling profit from sales-type leases
|
|
13,537
|
|
|
—
|
|
|
—
|
|
|||
Interest income
|
|
9,797
|
|
|
8,486
|
|
|
4,043
|
|
|||
Interest expense
|
|
(105,374
|
)
|
|
(82,028
|
)
|
|
(64,568
|
)
|
|||
Gain (loss) on extinguishment of debt
|
|
4,641
|
|
|
—
|
|
|
(46,410
|
)
|
|||
Warrant liability loss
|
|
—
|
|
|
—
|
|
|
(43,443
|
)
|
|||
Gain on acquisition of joint venture partner's interest
|
|
—
|
|
|
—
|
|
|
23,332
|
|
|||
Equity in earnings from real estate and other affiliates
|
|
30,629
|
|
|
39,954
|
|
|
25,498
|
|
|||
Income before taxes
|
|
103,540
|
|
|
73,218
|
|
|
120,822
|
|
|||
Provision (benefit) for income taxes
|
|
29,245
|
|
|
15,492
|
|
|
(45,801
|
)
|
|||
Net income
|
|
74,295
|
|
|
57,726
|
|
|
166,623
|
|
|||
Net (income) loss attributable to noncontrolling interests
|
|
(339
|
)
|
|
(714
|
)
|
|
1,781
|
|
|||
Net income attributable to common stockholders
|
|
$
|
73,956
|
|
|
$
|
57,012
|
|
|
$
|
168,404
|
|
Basic income per share:
|
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
4.07
|
|
Diluted income per share:
|
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
3.91
|
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
74,295
|
|
|
$
|
57,726
|
|
|
$
|
166,623
|
|
Other comprehensive loss
|
|
|
|
|
|
|
||||||
Interest rate swaps (a)
|
|
(18,475
|
)
|
|
955
|
|
|
(9
|
)
|
|||
Capitalized swap interest (expense) income (b)
|
|
(73
|
)
|
|
30
|
|
|
(170
|
)
|
|||
Pension adjustment (c)
|
|
11
|
|
|
759
|
|
|
—
|
|
|||
Adoption of ASU 2018-02 (d)
|
|
—
|
|
|
(1,148
|
)
|
|
—
|
|
|||
Adoption of ASU 2017-12 (e)
|
|
—
|
|
|
(739
|
)
|
|
—
|
|
|||
Terminated swap amortization
|
|
(2,709
|
)
|
|
(1,018
|
)
|
|
—
|
|
|||
Other comprehensive loss
|
|
(21,246
|
)
|
|
(1,161
|
)
|
|
(179
|
)
|
|||
Comprehensive income
|
|
53,049
|
|
|
56,565
|
|
|
166,444
|
|
|||
Comprehensive (income) loss attributable to noncontrolling interests
|
|
(339
|
)
|
|
(714
|
)
|
|
1,781
|
|
|||
Comprehensive income attributable to common stockholders
|
|
$
|
52,710
|
|
|
$
|
55,851
|
|
|
$
|
168,225
|
|
|
(a)
|
Amounts are shown net of deferred tax benefit of $5.0 million for the year ended December 31, 2019 and $0.3 million for the years ended December 31, 2018 and 2017.
|
(b)
|
The deferred tax impact was not meaningful for the years ended December 31, 2019 and 2018. Amount is net of deferred tax benefit of $0.1 million for the year ended December 31, 2017.
|
(c)
|
The deferred tax impact is not meaningful for the year ended December 31, 2019. Amount is net of deferred tax expense of $0.5 million for the year ended December 31, 2018.
|
(d)
|
The Company adopted Accounting Standards Update (“ASU”) 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, as of January 1, 2018.
|
(e)
|
The Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as of January 1, 2018.
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
|
|
|
|
Total
|
|
|
|
|
||||||||||||||||||
(In thousands, except shares)
|
|
Common Stock
|
|
Paid-In
|
|
Accumulated
|
|
Comprehensive
|
|
Treasury Stock
|
|
Stockholders'
|
|
Noncontrolling
|
|
Total
|
||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
(Loss)
|
|
Shares
|
|
Amount
|
|
Equity
|
|
Interests
|
|
Equity
|
|||||||||||||||||||
Balance, January 1, 2017
|
|
39,802,064
|
|
|
$
|
398
|
|
|
$
|
2,853,269
|
|
|
$
|
(277,912
|
)
|
|
$
|
(6,786
|
)
|
|
(12,061
|
)
|
|
$
|
(1,231
|
)
|
|
$
|
2,567,738
|
|
|
$
|
3,772
|
|
|
$
|
2,571,510
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168,404
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168,404
|
|
|
(1,781
|
)
|
|
166,623
|
|
||||||||
Preferred dividend payment on behalf of subsidiary
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
||||||||
Initial consolidation of HOAs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,586
|
|
|
3,586
|
|
||||||||
Interest rate swaps, net of tax of $323
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||||
Capitalized swap interest, net of tax of $91
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
(170
|
)
|
||||||||
Stock plan activity
|
|
445,736
|
|
|
4
|
|
|
21,651
|
|
|
—
|
|
|
—
|
|
|
(17,312
|
)
|
|
(2,245
|
)
|
|
19,410
|
|
|
—
|
|
|
19,410
|
|
||||||||
Exercise of warrants
|
|
3,052,453
|
|
|
31
|
|
|
375,582
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
375,613
|
|
|
—
|
|
|
375,613
|
|
||||||||
Issuance of Management Warrants
|
|
—
|
|
|
—
|
|
|
52,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,000
|
|
|
—
|
|
|
52,000
|
|
||||||||
Balance, December 31, 2017
|
|
43,300,253
|
|
|
$
|
433
|
|
|
$
|
3,302,502
|
|
|
$
|
(109,508
|
)
|
|
$
|
(6,965
|
)
|
|
(29,373
|
)
|
|
$
|
(3,476
|
)
|
|
$
|
3,182,986
|
|
|
$
|
5,565
|
|
|
$
|
3,188,551
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,012
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,012
|
|
|
714
|
|
|
57,726
|
|
||||||||
Preferred dividend payment on behalf of subsidiary
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
||||||||
Interest rate swaps, net of tax of $342
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
955
|
|
|
—
|
|
|
—
|
|
|
955
|
|
|
—
|
|
|
955
|
|
||||||||
Terminated swap amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,018
|
)
|
|
—
|
|
|
—
|
|
|
(1,018
|
)
|
|
—
|
|
|
(1,018
|
)
|
||||||||
Pension adjustment, net of tax of $467
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
759
|
|
|
—
|
|
|
—
|
|
|
759
|
|
|
—
|
|
|
759
|
|
||||||||
Capitalized swap interest, net of tax of $8
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
||||||||
Adoption of ASU 2014-09
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(69,732
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(69,732
|
)
|
|
—
|
|
|
(69,732
|
)
|
||||||||
Adoption of ASU 2017-12
|
|
—
|
|
|
—
|
|
|
—
|
|
|
739
|
|
|
(739
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adoption of ASU 2018-02
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,148
|
|
|
(1,148
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock activity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,556
|
)
|
|
(1,447
|
)
|
|
(1,447
|
)
|
|
—
|
|
|
(1,447
|
)
|
||||||||
Repurchase of common shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(475,920
|
)
|
|
(57,267
|
)
|
|
(57,267
|
)
|
|
—
|
|
|
(57,267
|
)
|
||||||||
Contributions to joint ventures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99,646
|
|
|
99,646
|
|
||||||||
Stock plan activity
|
|
211,220
|
|
|
3
|
|
|
19,931
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,934
|
|
|
—
|
|
|
19,934
|
|
||||||||
Balance, December 31, 2018
|
|
43,511,473
|
|
|
$
|
436
|
|
|
$
|
3,322,433
|
|
|
$
|
(120,341
|
)
|
|
$
|
(8,126
|
)
|
|
(519,849
|
)
|
|
$
|
(62,190
|
)
|
|
$
|
3,132,212
|
|
|
$
|
105,914
|
|
|
$
|
3,238,126
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,956
|
|
|
339
|
|
|
74,295
|
|
||||||||
Interest rate swaps, net of tax of $5,041
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,475
|
)
|
|
—
|
|
|
—
|
|
|
(18,475
|
)
|
|
—
|
|
|
(18,475
|
)
|
||||||||
Terminated swap amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,709
|
)
|
|
—
|
|
|
—
|
|
|
(2,709
|
)
|
|
—
|
|
|
(2,709
|
)
|
||||||||
Pension adjustment, net of tax of $41
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||||
Capitalized swap interest, net of tax of $20
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
(73
|
)
|
||||||||
Deconsolidation of equity investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,750
|
)
|
|
(3,750
|
)
|
||||||||
Deconsolidation of Associations of Unit Owners
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,538
|
)
|
|
(2,538
|
)
|
||||||||
Restricted stock activity
|
|
927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,411
|
)
|
|
(4,417
|
)
|
|
(4,417
|
)
|
|
—
|
|
|
(4,417
|
)
|
||||||||
Repurchase of common shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(496,000
|
)
|
|
(53,923
|
)
|
|
(53,923
|
)
|
|
—
|
|
|
(53,923
|
)
|
||||||||
Contributions to joint ventures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,890
|
|
|
84,890
|
|
||||||||
Stock plan activity
|
|
123,493
|
|
|
1
|
|
|
21,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,551
|
|
|
—
|
|
|
21,551
|
|
||||||||
Balance, December 31, 2019
|
|
43,635,893
|
|
|
$
|
437
|
|
|
$
|
3,343,983
|
|
|
$
|
(46,385
|
)
|
|
$
|
(29,372
|
)
|
|
(1,050,260
|
)
|
|
$
|
(120,530
|
)
|
|
$
|
3,148,133
|
|
|
$
|
184,855
|
|
|
$
|
3,332,988
|
|
|
|
Year Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
74,295
|
|
|
$
|
57,726
|
|
|
$
|
166,623
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation
|
|
143,698
|
|
|
113,518
|
|
|
116,401
|
|
|||
Amortization
|
|
10,684
|
|
|
13,047
|
|
|
15,851
|
|
|||
Amortization of deferred financing costs
|
|
11,726
|
|
|
9,347
|
|
|
5,587
|
|
|||
Amortization of intangibles other than in-place leases
|
|
788
|
|
|
1,681
|
|
|
(1,327
|
)
|
|||
Straight-line rent amortization
|
|
(5,652
|
)
|
|
(12,584
|
)
|
|
(5,401
|
)
|
|||
Deferred income taxes
|
|
27,818
|
|
|
16,195
|
|
|
(43,463
|
)
|
|||
Restricted stock and stock option amortization
|
|
19,502
|
|
|
12,128
|
|
|
7,385
|
|
|||
Net gain on sales and acquisitions of properties
|
|
(22,669
|
)
|
|
—
|
|
|
(78,568
|
)
|
|||
Selling profit from sales-type leases
|
|
(13,537
|
)
|
|
—
|
|
|
—
|
|
|||
Loss on redemption of senior notes due 2021
|
|
—
|
|
|
—
|
|
|
46,410
|
|
|||
Warrant liability loss
|
|
—
|
|
|
—
|
|
|
43,443
|
|
|||
Gain on extinguishment of debt
|
|
(4,851
|
)
|
|
—
|
|
|
—
|
|
|||
Equity in earnings from real estate and other affiliates, net of distributions
|
|
(9,585
|
)
|
|
(24,809
|
)
|
|
(9,325
|
)
|
|||
Provision for doubtful accounts
|
|
3,920
|
|
|
6,078
|
|
|
2,710
|
|
|||
Master Planned Community land acquisitions
|
|
(752
|
)
|
|
(3,565
|
)
|
|
(4,391
|
)
|
|||
Master Planned Community development expenditures
|
|
(238,806
|
)
|
|
(195,504
|
)
|
|
(193,087
|
)
|
|||
Master Planned Community cost of sales
|
|
119,429
|
|
|
113,282
|
|
|
107,218
|
|
|||
Condominium development expenditures
|
|
(211,617
|
)
|
|
(289,084
|
)
|
|
(352,813
|
)
|
|||
Condominium rights and units cost of sales
|
|
369,759
|
|
|
262,562
|
|
|
338,361
|
|
|||
Percentage of completion revenue recognition from sale of condominium rights
|
|
—
|
|
|
—
|
|
|
(464,251
|
)
|
|||
Net Changes:
|
|
|
|
|
|
|
||||||
Accounts and notes receivable
|
|
24,519
|
|
|
26,209
|
|
|
24,034
|
|
|||
Prepaid expenses and other assets
|
|
3,147
|
|
|
(6,942
|
)
|
|
(4,123
|
)
|
|||
Condominium deposits received
|
|
(68,842
|
)
|
|
108,061
|
|
|
315,901
|
|
|||
Deferred expenses
|
|
(52,503
|
)
|
|
(17,697
|
)
|
|
(15,156
|
)
|
|||
Accounts payable and accrued expenses
|
|
27,261
|
|
|
20,676
|
|
|
8,181
|
|
|||
Condominium Receivables
|
|
—
|
|
|
—
|
|
|
140,122
|
|
|||
Other, net
|
|
—
|
|
|
195
|
|
|
(755
|
)
|
|||
Cash provided by operating activities
|
|
207,732
|
|
|
210,520
|
|
|
165,567
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
||||||
Property and equipment expenditures
|
|
(6,951
|
)
|
|
(4,485
|
)
|
|
(6,968
|
)
|
|||
Operating property improvements
|
|
(55,524
|
)
|
|
(47,750
|
)
|
|
(14,389
|
)
|
|||
Property development and redevelopment
|
|
(674,244
|
)
|
|
(572,966
|
)
|
|
(369,086
|
)
|
|||
Reimbursement of development cost
|
|
—
|
|
|
—
|
|
|
12,777
|
|
|||
Acquisition of assets
|
|
(565,552
|
)
|
|
(234,541
|
)
|
|
(23,299
|
)
|
|||
Proceeds from sales of properties
|
|
67,110
|
|
|
—
|
|
|
88,384
|
|
|||
Reimbursements under tax increment financings
|
|
6,883
|
|
|
22,651
|
|
|
—
|
|
|||
Notes issued to real estate and other affiliates and third party
|
|
—
|
|
|
(3,795
|
)
|
|
(5,252
|
)
|
|||
Distributions from real estate and other affiliates
|
|
1,437
|
|
|
1,732
|
|
|
—
|
|
|||
Investments in real estate and other affiliates, net
|
|
(6,056
|
)
|
|
(2,617
|
)
|
|
(1,138
|
)
|
|||
Maturity of long-term investment
|
|
—
|
|
|
—
|
|
|
3,367
|
|
|||
Cash used in investing activities
|
|
(1,232,897
|
)
|
|
(841,771
|
)
|
|
(315,604
|
)
|
(in thousands)
|
|
Year Ended December 31,
|
||||||||||
Cash Flows from Financing Activities:
|
|
2019
|
|
2018
|
|
2017
|
||||||
Proceeds from mortgages, notes and loans payable
|
|
1,292,083
|
|
|
1,172,622
|
|
|
1,501,290
|
|
|||
Principal payments on mortgages, notes and loans payable
|
|
(386,489
|
)
|
|
(838,462
|
)
|
|
(1,350,226
|
)
|
|||
Purchase of treasury stock
|
|
(53,922
|
)
|
|
(58,715
|
)
|
|
—
|
|
|||
Premium paid to redeem 2021 Senior Notes
|
|
—
|
|
|
—
|
|
|
(39,966
|
)
|
|||
Special Improvement District bond funds released from (held in) escrow
|
|
6,077
|
|
|
8,051
|
|
|
35,678
|
|
|||
Deferred financing costs and bond issuance costs, net
|
|
(19,639
|
)
|
|
(15,833
|
)
|
|
(14,188
|
)
|
|||
Taxes paid on stock options exercised and restricted stock vested
|
|
(5,449
|
)
|
|
(3,995
|
)
|
|
(11,672
|
)
|
|||
Issuance of management warrants
|
|
—
|
|
|
—
|
|
|
52,000
|
|
|||
Gain on unwinding of swaps
|
|
—
|
|
|
16,104
|
|
|
—
|
|
|||
Stock options exercised
|
|
3,535
|
|
|
11,748
|
|
|
22,708
|
|
|||
Issuance of noncontrolling interests
|
|
84,889
|
|
|
99,646
|
|
|
3,586
|
|
|||
Preferred dividend payment on behalf of REIT subsidiary
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||
Cash provided by financing activities
|
|
921,085
|
|
|
391,166
|
|
|
199,198
|
|
|||
Net change in cash, cash equivalents and restricted cash
|
|
(104,080
|
)
|
|
(240,085
|
)
|
|
49,161
|
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
|
724,215
|
|
|
964,300
|
|
|
915,139
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
620,135
|
|
|
$
|
724,215
|
|
|
$
|
964,300
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
|
||||||
Interest paid
|
|
$
|
168,925
|
|
|
$
|
149,693
|
|
|
$
|
129,022
|
|
Interest capitalized
|
|
73,002
|
|
|
77,918
|
|
|
73,207
|
|
|||
Income taxes paid (refunded), net
|
|
(2,138
|
)
|
|
70
|
|
|
(19,381
|
)
|
|||
Non-Cash Transactions:
|
|
|
|
|
|
|
||||||
Initial recognition of ASC 842 operating leases ROU asset
|
|
72,106
|
|
|
—
|
|
|
—
|
|
|||
Initial recognition of ASC 842 operating lease obligation
|
|
71,888
|
|
|
—
|
|
|
—
|
|
|||
Accrued property improvements, developments, and redevelopments
|
|
14,454
|
|
|
—
|
|
|
—
|
|
|||
Special Improvement District bond transfers associated with land sales
|
|
22,423
|
|
|
10,937
|
|
|
13,898
|
|
|||
Accrued interest on construction loan borrowing
|
|
10,154
|
|
|
7,584
|
|
|
1,559
|
|
|||
Acquisition of below-market lease intangible
|
|
—
|
|
|
1,903
|
|
|
—
|
|
|||
Exercise of sponsor warrants and management warrants
|
|
—
|
|
|
—
|
|
|
375,581
|
|
|||
Capitalized stock compensation
|
|
1,443
|
|
|
2,434
|
|
|
1,121
|
|
|||
Special Improvement District bonds held in third party escrow
|
|
9,686
|
|
|
—
|
|
|
—
|
|
|||
Net assets acquired in the acquisition of Las Vegas Aviators
|
|
—
|
|
|
—
|
|
|
31,311
|
|
|||
Net assets acquired in the acquisition of Constellation
|
|
—
|
|
|
—
|
|
|
41,744
|
|
Asset Type
|
|
Years
|
|
Location of Asset
|
Buildings and improvements
|
|
7 - 40
|
|
Buildings and Equipment
|
Equipment and fixtures
|
|
5 - 20
|
|
Buildings and Equipment
|
Computer hardware and software, and vehicles
|
|
3 - 5
|
|
Buildings and Equipment
|
Tenant improvements
|
|
Lesser of lease term or useful life
|
|
Buildings and Equipment
|
Leasing costs
|
|
Related lease term
|
|
Prepaid expenses and other assets, net
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2019
|
|
2018
|
||||
Land and improvements
|
|
$
|
423,520
|
|
|
$
|
456,450
|
|
Development costs
|
|
1,022,477
|
|
|
829,842
|
|
||
Condominium projects
|
|
—
|
|
|
3,776
|
|
||
Total Developments
|
|
$
|
1,445,997
|
|
|
$
|
1,290,068
|
|
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as of January 1,
|
|
$
|
10,664
|
|
|
$
|
9,300
|
|
|
$
|
7,799
|
|
Provision for doubtful accounts
|
|
5,881
|
|
|
6,078
|
|
|
2,710
|
|
|||
Write-offs
|
|
(900
|
)
|
|
(4,714
|
)
|
|
(1,209
|
)
|
|||
Balance as of December 31,
|
|
$
|
15,645
|
|
|
$
|
10,664
|
|
|
$
|
9,300
|
|
•
|
BPP is highly susceptible to factors outside HHC’s influence such as unemployment and interest rates;
|
•
|
the time between the sale of land to a developer and closing on a completed home can take up to three years; and
|
•
|
historical experience is of little value when it comes to predicting future home prices.
|
(In thousands)
|
|
Year Ended
|
||
Lease Cost
|
|
December 31, 2019
|
||
Operating lease cost
|
|
$
|
9,082
|
|
Variable lease costs
|
|
1,682
|
|
|
Sublease income
|
|
—
|
|
|
Net lease cost
|
|
$
|
10,764
|
|
(In thousands)
|
|
Operating
|
||
Year Ended December 31,
|
|
Leases
|
||
2020
|
|
$
|
6,927
|
|
2021
|
|
7,066
|
|
|
2022
|
|
6,328
|
|
|
2023
|
|
6,374
|
|
|
2024
|
|
6,432
|
|
|
Thereafter
|
|
266,852
|
|
|
Total lease payments
|
|
299,979
|
|
|
Less: imputed interest
|
|
(229,566
|
)
|
|
Present value of lease liabilities
|
|
$
|
70,413
|
|
(In thousands)
|
|
Year Ended
|
||
Supplemental Consolidated Statements of Cash Flows Information
|
|
December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows on operating leases
|
|
$
|
6,980
|
|
Other Information
|
|
December 31, 2019
|
|
Weighted-average remaining lease term (years)
|
|
|
|
Operating leases
|
|
37.0
|
|
Weighted-average discount rate
|
|
|
|
Operating leases
|
|
7.8
|
%
|
|
|
Year Ended
|
||
(In thousands)
|
|
December 31, 2019
|
||
Total Minimum Rent Payments
|
|
$
|
218,740
|
|
|
|
Total
|
||
(In thousands)
|
|
Minimum
|
||
Year Ending December 31,
|
|
Rent
|
||
2020
|
|
$
|
220,810
|
|
2021
|
|
229,968
|
|
|
2022
|
|
239,756
|
|
|
2023
|
|
228,196
|
|
|
2024
|
|
216,632
|
|
|
Thereafter
|
|
1,344,529
|
|
|
Total
|
|
$
|
2,479,891
|
|
|
|
Year Ended
|
||
(In thousands)
|
|
December 31, 2019
|
||
Selling profit from sales-type leases
|
|
$
|
13,537
|
|
Interest income from sales-type leases
|
|
$
|
2,189
|
|
|
|
Total
|
||
(In thousands)
|
|
Minimum
|
||
Year Ending December 31,
|
|
Rent
|
||
2020
|
|
$
|
5,462
|
|
2021
|
|
5,592
|
|
|
2022
|
|
5,725
|
|
|
2023
|
|
5,862
|
|
|
2024
|
|
6,023
|
|
|
Thereafter
|
|
104,133
|
|
|
Total
|
|
$
|
132,797
|
|
(In thousands)
|
|
Restructuring Costs
|
||
Balance at January 1, 2019
|
|
$
|
—
|
|
Charges (a)
|
|
39,039
|
|
|
Charges paid/settled (a)
|
|
(29,354
|
)
|
|
Balance at December 31, 2019
|
|
$
|
9,685
|
|
|
(a)
|
Includes the $4.8 million loss on sale of the corporate aircraft, which is included in Gain (loss) on sale of real estate and other assets in the accompanying Consolidated Statements of Operations. The balance relates to relocation, retention and severance expenses and is included in General and administrative expense in the accompanying Consolidated Statements of Operations.
|
|
|
Economic/Legal Ownership
|
|
Carrying Value
|
|
Share of Earnings/Dividends
|
||||||||||||||||||||
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
Year Ended December 31,
|
||||||||||||||||
($ in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Equity Method Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Las Vegas Aviators (a)
|
|
100
|
%
|
|
100
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(152
|
)
|
Constellation (a)
|
|
100
|
%
|
|
100
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(323
|
)
|
|||||
The Metropolitan Downtown Columbia (b)
|
|
50
|
%
|
|
50
|
%
|
|
—
|
|
|
—
|
|
|
694
|
|
|
467
|
|
|
390
|
|
|||||
Stewart Title of Montgomery County, TX
|
|
50
|
%
|
|
50
|
%
|
|
4,175
|
|
|
3,920
|
|
|
1,105
|
|
|
573
|
|
|
386
|
|
|||||
Woodlands Sarofim #1
|
|
20
|
%
|
|
20
|
%
|
|
2,985
|
|
|
2,760
|
|
|
125
|
|
|
94
|
|
|
53
|
|
|||||
m.flats/TEN.M (c)
|
|
50
|
%
|
|
50
|
%
|
|
2,431
|
|
|
4,701
|
|
|
(1,875
|
)
|
|
(2,478
|
)
|
|
—
|
|
|||||
Master Planned Communities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The Summit (d)
|
|
—
|
%
|
|
—
|
%
|
|
84,455
|
|
|
72,171
|
|
|
28,336
|
|
|
36,284
|
|
|
23,234
|
|
|||||
Seaport District:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mr. C Seaport (e)
|
|
35
|
%
|
|
35
|
%
|
|
7,650
|
|
|
8,721
|
|
|
(1,980
|
)
|
|
(465
|
)
|
|
—
|
|
|||||
Bar Wayō (Momofuku) (d)
|
|
—
|
%
|
|
—
|
%
|
|
7,469
|
|
|
—
|
|
|
(612
|
)
|
|
—
|
|
|
—
|
|
|||||
Strategic Developments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Circle T Ranch and Power Center
|
|
50
|
%
|
|
50
|
%
|
|
8,207
|
|
|
5,989
|
|
|
950
|
|
|
1,534
|
|
|
—
|
|
|||||
HHMK Development
|
|
50
|
%
|
|
50
|
%
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
KR Holdings
|
|
50
|
%
|
|
50
|
%
|
|
422
|
|
|
159
|
|
|
263
|
|
|
830
|
|
|
41
|
|
|||||
m.flats/TEN.M (c)
|
|
50
|
%
|
|
50
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(415
|
)
|
|||||
Mr. C Seaport (e)
|
|
35
|
%
|
|
35
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(240
|
)
|
|
(643
|
)
|
|||||
|
|
|
|
|
|
117,804
|
|
|
98,431
|
|
|
27,006
|
|
|
36,599
|
|
|
22,571
|
|
|||||||
Other equity investments (f)
|
|
|
|
|
|
3,953
|
|
|
3,856
|
|
|
3,623
|
|
|
3,355
|
|
|
2,927
|
|
|||||||
Investments in real estate and other affiliates
|
|
|
|
|
|
$
|
121,757
|
|
|
$
|
102,287
|
|
|
$
|
30,629
|
|
|
$
|
39,954
|
|
|
$
|
25,498
|
|
|
(a)
|
The Company acquired this joint venture partner’s interest in 2017 and has consolidated the assets and liabilities of the entity in its financial results. See Note 3 - Acquisitions and Dispositions for additional information regarding the transaction.
|
(b)
|
Metropolitan Downtown Columbia was in a deficit position of $4.7 million and $3.8 million at December 31, 2019 and December 31, 2018, respectively, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at December 31, 2019 and 2018.
|
(c)
|
Property was transferred from Strategic Developments to Operating Assets during the three months ended March 31, 2018.
|
(d)
|
Please refer to the discussion below for a description of the joint venture ownership structure.
|
(e)
|
Property was transferred from Strategic Developments to Operating Assets during the three months ended September 30, 2018. The share of earnings/dividends for Mr. C Seaport in the Operating Assets and Strategic Developments sections represents the Company’s share recognized when the investment was in the respective segment.
|
(f)
|
Other equity investments represent equity investments not accounted for under the equity method. The Company elected the measurement alternative as these investments do not have readily determinable fair values. See Note 1 - Summary of Significant Accounting Policies for additional information. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year 2019 or cumulatively.
|
|
|
December 31,
|
||||||
(In millions)
|
|
2019
|
|
2018
|
||||
Total Assets
|
|
$
|
220.0
|
|
|
$
|
218.9
|
|
Total Liabilities
|
|
133.4
|
|
|
144.6
|
|
||
Total Equity
|
|
86.6
|
|
|
74.3
|
|
|
|
December 31,
|
||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues (a)
|
|
$
|
122.0
|
|
|
$
|
101.2
|
|
|
$
|
58.6
|
|
Net income
|
|
28.3
|
|
|
36.3
|
|
|
23.2
|
|
|||
Gross Margin (b)
|
|
33.8
|
|
|
41.9
|
|
|
31.2
|
|
|
(a)
|
The Summit adopted ASU 2014-09, Revenues from Contracts with Customers (Topic 606) effective in the fourth quarter of 2019 using the modified retrospective transition method. Therefore, for 2019, revenues allocated to each of The Summit’s performance obligations is recognized over time based on an input measure of progress. Prior period amounts have not been adjusted and are recognized on a percentage of completion basis. The Summit’s adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements.
|
(b)
|
The decrease in gross margin from 2018 to 2019 is primarily due to the mix of product sold in each year. Built product has a lower margin than lot sales, and built product comprised a higher percentage of revenues in 2019 than in 2018.
|
Asset Acquisition Date Fair Value
($ in thousands) |
The Woodlands Towers at The Waterway
|
The Woodlands Warehouse
|
Waterway Land
|
Century Park
|
Total
|
||||||||||
Building
|
$
|
377,308
|
|
$
|
4,198
|
|
$
|
—
|
|
$
|
24,585
|
|
$
|
406,091
|
|
Tenant improvements
|
58,869
|
|
—
|
|
—
|
|
—
|
|
58,869
|
|
|||||
In-place leases
|
49,511
|
|
1,410
|
|
—
|
|
—
|
|
50,921
|
|
|||||
Land
|
11,044
|
|
4,480
|
|
11,511
|
|
19,816
|
|
46,851
|
|
|||||
Leasing commission
|
18,599
|
|
720
|
|
—
|
|
—
|
|
19,319
|
|
|||||
Site Improvements
|
1,384
|
|
190
|
|
—
|
|
667
|
|
2,241
|
|
|||||
Legal and marketing costs
|
16
|
|
3
|
|
—
|
|
—
|
|
19
|
|
|||||
Total (a)
|
$
|
516,731
|
|
$
|
11,001
|
|
$
|
11,511
|
|
$
|
45,068
|
|
$
|
584,311
|
|
|
(a)
|
Total is inclusive of the asset acquisition price as well as leasing commission paid at closing.
|
Asset ($ in millions)
|
Acquisition Date Fair Value
|
||
Building
|
$
|
38,213
|
|
Land
|
3,069
|
|
|
Improvements
|
957
|
|
|
Furniture, fixtures and equipment
|
590
|
|
|
In-place leases
|
714
|
|
|
Other identifiable assets
|
18
|
|
|
Total
|
$
|
43,561
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2019
|
|
2018
|
||||
Condominium inventory
|
|
$
|
56,421
|
|
|
$
|
198,352
|
|
Straight-line rent
|
|
56,223
|
|
|
50,493
|
|
||
In-place leases
|
|
54,471
|
|
|
6,539
|
|
||
Special Improvement District receivable
|
|
42,996
|
|
|
18,838
|
|
||
Intangibles
|
|
33,275
|
|
|
33,955
|
|
||
Security and escrow deposits
|
|
17,464
|
|
|
17,670
|
|
||
Prepaid expenses
|
|
13,263
|
|
|
16,981
|
|
||
Other
|
|
9,252
|
|
|
18,429
|
|
||
Tenant incentives and other receivables
|
|
7,556
|
|
|
8,745
|
|
||
Food and beverage and lifestyle inventory
|
|
4,310
|
|
|
1,935
|
|
||
TIF receivable
|
|
3,931
|
|
|
2,470
|
|
||
Federal income tax receivable
|
|
655
|
|
|
2,000
|
|
||
Above-market tenant leases
|
|
556
|
|
|
1,044
|
|
||
Equipment, net of accumulated depreciation of $0.0 million and $8.3 million, respectively
|
|
—
|
|
|
15,543
|
|
||
Below-market ground leases
|
|
—
|
|
|
18,296
|
|
||
Interest rate swap derivative assets
|
|
—
|
|
|
346
|
|
||
Prepaid expenses and other assets, net
|
|
$
|
300,373
|
|
|
$
|
411,636
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2019
|
|
2018
|
||||
Construction payables
|
|
$
|
261,523
|
|
|
$
|
258,749
|
|
Condominium deposit liabilities
|
|
194,794
|
|
|
263,636
|
|
||
Deferred income
|
|
63,483
|
|
|
42,734
|
|
||
Accrued payroll and other employee liabilities
|
|
44,082
|
|
|
42,591
|
|
||
Interest rate swap liabilities
|
|
40,135
|
|
|
16,517
|
|
||
Accounts payable and accrued expenses
|
|
37,480
|
|
|
38,748
|
|
||
Accrued real estate taxes
|
|
27,559
|
|
|
26,171
|
|
||
Tenant and other deposits
|
|
24,080
|
|
|
20,893
|
|
||
Accrued interest
|
|
23,838
|
|
|
23,080
|
|
||
Other
|
|
16,173
|
|
|
29,283
|
|
||
Straight-line ground rent liability
|
|
—
|
|
|
16,870
|
|
||
Accounts payable and accrued expenses
|
|
$
|
733,147
|
|
|
$
|
779,272
|
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||
|
|
Gross
|
|
Accumulated
|
|
Net
|
|
Gross
|
|
Accumulated
|
|
Net
|
||||||||||||
|
|
Asset
|
|
(Amortization)
|
|
Carrying
|
|
Asset
|
|
(Amortization)
|
|
Carrying
|
||||||||||||
(In thousands)
|
|
(Liability)
|
|
/ Accretion
|
|
Amount
|
|
(Liability)
|
|
/ Accretion
|
|
Amount
|
||||||||||||
Intangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Indefinite lived intangibles
|
|
$
|
25,028
|
|
|
$
|
—
|
|
|
$
|
25,028
|
|
|
$
|
25,028
|
|
|
$
|
—
|
|
|
$
|
25,028
|
|
Goodwill
|
|
1,307
|
|
|
—
|
|
|
1,307
|
|
|
1,307
|
|
|
—
|
|
|
1,307
|
|
||||||
Other intangibles
|
|
10,278
|
|
|
(3,338
|
)
|
|
6,940
|
|
|
10,278
|
|
|
(2,658
|
)
|
|
7,620
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tenant leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
In-place value
|
|
66,606
|
|
|
(12,135
|
)
|
|
54,471
|
|
|
19,966
|
|
|
(13,427
|
)
|
|
6,539
|
|
||||||
Above-market
|
|
2,247
|
|
|
(1,691
|
)
|
|
556
|
|
|
3,313
|
|
|
(2,269
|
)
|
|
1,044
|
|
||||||
Below-market
|
|
(7,008
|
)
|
|
4,912
|
|
|
(2,096
|
)
|
|
(7,326
|
)
|
|
3,140
|
|
|
(4,186
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ground leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Below-market
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,096
|
|
|
(4,800
|
)
|
|
18,296
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total indefinite lived intangibles
|
|
|
|
|
|
$
|
26,335
|
|
|
|
|
|
|
$
|
26,335
|
|
||||||||
Total amortizing intangibles
|
|
|
|
|
|
$
|
59,871
|
|
|
|
|
|
|
$
|
29,313
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2019
|
|
2018
|
||||
Fixed-rate debt:
|
|
|
|
|
||||
Unsecured 5.375% Senior Notes
|
|
$
|
1,000,000
|
|
|
$
|
1,000,000
|
|
Secured mortgages, notes and loans payable
|
|
884,935
|
|
|
648,707
|
|
||
Special Improvement District bonds
|
|
23,725
|
|
|
15,168
|
|
||
Variable-rate debt:
|
|
|
|
|
||||
Mortgages, notes and loans payable (a)
|
|
2,229,958
|
|
|
1,551,336
|
|
||
Unamortized bond issuance costs
|
|
(5,249
|
)
|
|
(6,096
|
)
|
||
Unamortized deferred financing costs (b)
|
|
(36,899
|
)
|
|
(27,902
|
)
|
||
Total mortgages, notes and loans payable, net
|
|
$
|
4,096,470
|
|
|
$
|
3,181,213
|
|
|
(a)
|
As more fully described below, $630.1 million and $615.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt as of December 31, 2019 and 2018. An additional $184.3 million and $50.0 million of variable-rate debt was subject to interest rate collars as of December 31, 2019 and December 31, 2018, and $75.0 million of variable-rate debt was capped at a maximum interest rate as of December 31, 2019 and 2018.
|
(b)
|
Deferred financing fees are amortized to interest expense over the terms of the respective financing agreements using the effective interest method (or other methods which approximate the effective interest method).
|
|
|
|
|
|
|
|
|
Maximum
|
|
Carrying Value
|
|||||||||
|
|
Initial / Extended
|
|
Interest
|
|
Facility
|
|
December 31,
|
|
December 31,
|
|||||||||
($ in thousands)
|
|
Maturity (a)
|
|
Rate
|
|
Amount
|
|
2019
|
|
2018
|
|||||||||
Operating Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three Hughes Landing
|
|
March 2020
|
|
4.33
|
%
|
|
(b)
|
|
$
|
61,200
|
|
|
$
|
59,822
|
|
|
$
|
55,759
|
|
The Woodlands Towers at the Waterway
|
|
June 2020
|
|
3.68
|
%
|
|
(b), (c)
|
|
|
|
336,570
|
|
|
—
|
|
||||
The Woodlands Warehouse
|
|
June 2020
|
|
3.68
|
%
|
|
(b), (c)
|
|
|
|
7,230
|
|
|
—
|
|
||||
Downtown Summerlin
|
|
September 2020 / September 2021
|
|
3.88
|
%
|
|
(b)
|
|
|
|
259,179
|
|
|
266,755
|
|
||||
Two Merriweather
|
|
October 2020 / October 2021
|
|
4.23
|
%
|
|
(b)
|
|
33,156
|
|
|
28,216
|
|
|
24,000
|
|
|||
Outlet Collection at Riverwalk
|
|
October 2021
|
|
4.23
|
%
|
|
(b)
|
|
|
|
30,615
|
|
|
47,552
|
|
||||
100 Fellowship Drive
|
|
May 2022
|
|
3.23
|
%
|
|
(b)
|
|
51,426
|
|
|
47,916
|
|
|
35,481
|
|
|||
20/25 Waterway Avenue
|
|
May 2022
|
|
4.79
|
%
|
|
|
|
|
|
13,131
|
|
|
13,395
|
|
||||
Millennium Waterway Apartments
|
|
June 2022
|
|
3.75
|
%
|
|
|
|
|
|
53,032
|
|
|
54,083
|
|
||||
HHC 242 Self-Storage
|
|
December 2021 / December 2022
|
|
4.33
|
%
|
|
(b)
|
|
|
|
5,499
|
|
|
6,604
|
|
|
|
|
|
|
|
|
|
Maximum
|
|
Carrying Value
|
|||||||||
|
|
Initial / Extended
|
|
Interest
|
|
Facility
|
|
December 31,
|
|
December 31,
|
|||||||||
($ in thousands)
|
|
Maturity (a)
|
|
Rate
|
|
Amount
|
|
2019
|
|
2018
|
|||||||||
HHC 2978 Self-Storage
|
|
December 2021 / December 2022
|
|
4.33
|
%
|
|
(b)
|
|
|
|
5,395
|
|
|
6,042
|
|
||||
Lake Woodlands Crossing Retail
|
|
January 2023
|
|
3.53
|
%
|
|
(b)
|
|
15,523
|
|
|
12,163
|
|
|
9,539
|
|
|||
Lakeside Row
|
|
July 2022 / July 2023
|
|
3.98
|
%
|
|
(b)
|
|
34,231
|
|
|
23,958
|
|
|
—
|
|
|||
Senior Secured Credit Facility
|
|
September 2023
|
|
4.61
|
%
|
|
(d)
|
|
700,000
|
|
|
615,000
|
|
|
615,000
|
|
|||
The Woodlands Resort & Conference Center
|
|
December 2021 / December 2023
|
|
4.23
|
%
|
|
(b)
|
|
|
|
62,500
|
|
|
62,500
|
|
||||
Lakefront North
|
|
December 2022 / December 2023
|
|
3.73
|
%
|
|
(b)
|
|
51,821
|
|
|
32,731
|
|
|
21,120
|
|
|||
9303 New Trails
|
|
December 2023
|
|
4.88
|
%
|
|
|
|
|
|
11,196
|
|
|
11,610
|
|
||||
4 Waterway Square
|
|
December 2023
|
|
4.88
|
%
|
|
|
|
|
|
32,789
|
|
|
33,998
|
|
||||
Creekside Park West
|
|
March 2023 / March 2024
|
|
3.98
|
%
|
|
(b)
|
|
18,000
|
|
|
8,505
|
|
|
—
|
|
|||
6100 Merriweather
|
|
September 2022 / September 2024
|
|
4.48
|
%
|
|
(b)
|
|
89,844
|
|
|
36,418
|
|
|
—
|
|
|||
Tanager Apartments
|
|
October 2021 / October 2024
|
|
3.98
|
%
|
|
(b)
|
|
|
|
29,165
|
|
|
—
|
|
||||
Two Summerlin
|
|
October 2022 / October 2025
|
|
4.25
|
%
|
|
|
|
|
|
33,183
|
|
|
14,431
|
|
||||
3831 Technology Forest Drive
|
|
March 2026
|
|
4.50
|
%
|
|
|
|
|
|
21,137
|
|
|
21,571
|
|
||||
Kewalo Basin Harbor
|
|
September 2027
|
|
4.48
|
%
|
|
(b)
|
|
11,562
|
|
|
11,110
|
|
|
3,499
|
|
|||
Millennium Six Pines Apartments
|
|
August 2028
|
|
3.39
|
%
|
|
|
|
|
|
42,500
|
|
|
42,500
|
|
||||
3 Waterway Square
|
|
August 2028
|
|
3.94
|
%
|
|
|
|
|
|
47,647
|
|
|
49,013
|
|
||||
One Lakes Edge
|
|
March 2029
|
|
4.50
|
%
|
|
|
|
|
|
69,440
|
|
|
69,440
|
|
||||
Aristocrat
|
|
September 2029
|
|
3.67
|
%
|
|
|
|
|
|
38,055
|
|
|
21,296
|
|
||||
Creekside Park Apartments
|
|
October 2029
|
|
3.52
|
%
|
|
|
|
|
|
37,730
|
|
|
—
|
|
||||
One Hughes Landing
|
|
December 2029
|
|
4.30
|
%
|
|
|
|
|
|
52,000
|
|
|
52,000
|
|
||||
Two Hughes Landing
|
|
December 2030
|
|
4.20
|
%
|
|
|
|
|
|
48,000
|
|
|
48,000
|
|
||||
Hockey Ground Lease SIDS
|
|
December 2030
|
|
6.05
|
%
|
|
|
|
|
|
135
|
|
|
141
|
|
||||
Downtown Summerlin SID Bonds - S128
|
|
December 2030
|
|
6.05
|
%
|
|
|
|
|
|
2,569
|
|
|
2,652
|
|
||||
Constellation Apartments
|
|
January 2033
|
|
4.07
|
%
|
|
|
|
|
|
24,200
|
|
|
24,200
|
|
||||
Hughes Landing Retail
|
|
December 2036
|
|
3.50
|
%
|
|
|
|
|
|
35,000
|
|
|
35,000
|
|
||||
Columbia Regional Building
|
|
February 2037
|
|
4.48
|
%
|
|
|
|
|
|
24,664
|
|
|
25,000
|
|
||||
Las Vegas Ballpark
|
|
December 2039
|
|
4.92
|
%
|
|
|
|
|
|
51,231
|
|
|
26,766
|
|
||||
Operating Assets Total
|
|
|
|
|
|
|
|
|
|
2,249,631
|
|
|
1,698,947
|
|
|||||
Master Planned Communities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Summerlin South SID Bonds - S128
|
|
December 2020
|
|
7.30
|
%
|
|
|
|
|
|
—
|
|
|
213
|
|
||||
Summerlin South SID Bonds - S132
|
|
December 2020
|
|
6.00
|
%
|
|
|
|
|
|
—
|
|
|
562
|
|
||||
The Woodlands Master Credit Facility
|
|
October 2022 / October 2024
|
|
4.23
|
%
|
|
(b)
|
|
250,000
|
|
|
107,500
|
|
|
150,000
|
|
|||
Bridgeland Credit Facility
|
|
October 2022 / October 2024
|
|
4.23
|
%
|
|
(b)
|
|
250,000
|
|
|
107,500
|
|
|
65,000
|
|
|||
Summerlin South SID Bonds - S151
|
|
June 2025
|
|
6.00
|
%
|
|
|
|
|
|
—
|
|
|
913
|
|
||||
Summerlin South SID Bonds - S128C
|
|
December 2030
|
|
6.05
|
%
|
|
|
|
|
|
2,014
|
|
|
3,211
|
|
||||
Summerlin West SID Bonds - S812
|
|
October 2035
|
|
6.00
|
%
|
|
|
|
|
|
1,960
|
|
|
6,709
|
|
||||
Summerlin West SID Bonds - S814
|
|
April 2049
|
|
4.00
|
%
|
|
|
|
|
|
16,310
|
|
|
—
|
|
||||
Master Planned Communities Total
|
|
|
|
|
|
|
|
|
|
235,284
|
|
|
226,608
|
|
|||||
Seaport District
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
250 Water Street
|
|
November 2022 / November 2023
|
|
5.23
|
%
|
|
(b)
|
|
100,000
|
|
|
100,000
|
|
|
129,723
|
|
|||
Seaport District
|
|
June 2024
|
|
6.10
|
%
|
|
(e)
|
|
250,000
|
|
|
250,000
|
|
|
—
|
|
|||
Seaport District Total
|
|
|
|
|
|
|
|
|
|
350,000
|
|
|
129,723
|
|
|||||
Strategic Developments
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Ke Kilohana
|
|
December 2019 / December 2020
|
|
5.75
|
%
|
|
(b)
|
|
|
|
—
|
|
|
96,757
|
|
||||
‘A‘ali‘i
|
|
June 2022 / June 2023
|
|
4.83
|
%
|
|
(b)
|
|
293,700
|
|
|
30,717
|
|
|
—
|
|
|||
Two Lakes Edge
|
|
October 2022 / October 2023
|
|
3.88
|
%
|
|
(b)
|
|
74,035
|
|
|
38,214
|
|
|
—
|
|
|||
110 North Wacker
|
|
April 2022 / April 2024
|
|
4.73
|
%
|
|
(b), (f)
|
|
558,900
|
|
|
184,300
|
|
|
50,000
|
|
|||
Millennium Phase III Apartments
|
|
August 2023 / August 2024
|
|
3.48
|
%
|
|
(b)
|
|
30,700
|
|
|
1
|
|
|
—
|
|
|||
Juniper Apartments
|
|
September 2022 / September 2024
|
|
4.48
|
%
|
|
(b)
|
|
85,657
|
|
|
34,610
|
|
|
—
|
|
|||
Other SID Bonds
|
|
December 2020 / December 2030
|
|
6.00% - 7.30%
|
|
|
(g)
|
|
|
|
737
|
|
|
767
|
|
||||
8770 New Trails
|
|
June 2021 / January 2032
|
|
4.89
|
%
|
|
(h)
|
|
35,487
|
|
|
15,124
|
|
|
—
|
|
|||
Strategic Developments Total
|
|
|
|
|
|
|
|
|
|
303,703
|
|
|
147,524
|
|
|||||
Other corporate financing arrangements
|
|
May 2023
|
|
4.33
|
%
|
|
(i)
|
|
|
|
—
|
|
|
12,409
|
|
|
|
|
|
|
|
|
|
Maximum
|
|
Carrying Value
|
|||||||||
|
|
Initial / Extended
|
|
Interest
|
|
Facility
|
|
December 31,
|
|
December 31,
|
|||||||||
($ in thousands)
|
|
Maturity (a)
|
|
Rate
|
|
Amount
|
|
2019
|
|
2018
|
|||||||||
Senior Notes
|
|
March 2025
|
|
5.38
|
%
|
|
|
|
|
|
1,000,000
|
|
|
1,000,000
|
|
||||
Unamortized bond issuance costs
|
|
|
|
|
|
|
|
|
|
(5,249
|
)
|
|
(6,096
|
)
|
|||||
Unamortized deferred financing costs
|
|
|
|
|
|
|
|
|
|
(36,899
|
)
|
|
(27,902
|
)
|
|||||
Total mortgages, notes, and loans payable
|
|
|
|
|
|
|
|
|
|
$
|
4,096,470
|
|
|
$
|
3,181,213
|
|
|
(a)
|
Maturity dates presented represent initial maturity dates and the extended or final maturity dates as contractually stated. HHC has the option to exercise extension periods at the initial maturity date, subject to extension terms that are based on current property performance projections. Extension terms may include minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable and other performance criteria. In certain cases, due to property performance not meeting covenants, HHC may have to pay down a portion of the loan to obtain the extension.
|
(b)
|
The interest rate presented is based on the one-month LIBOR, three-month LIBOR or Prime rate, as applicable, which was 1.73%, 1.90% and 4.75%, respectively, at December 31, 2019. Interest rates associated with loans which have been paid off reflect the prior year interest rate.
|
(c)
|
100.0% of the outstanding principal of the $343.8 million is recourse to the Company but not currently secured by any mortgage.
|
(d)
|
100.0% of the outstanding principal of the $615.0 million Term Loan is swapped to a fixed rate equal to 4.61%.
|
(e)
|
The loan initially bears interest at 6.10% and will begin bearing interest at one-month LIBOR plus 4.10%, subject to a LIBOR cap of 2.30% and LIBOR floor of 0.00%, at the earlier of June 20, 2021 or the date certain debt coverage ratios are met.
|
(f)
|
100.0% of the outstanding principal of the $184.3 million is subject to fixed interest rate collar contracts for the remaining term of the debt.
|
(g)
|
Includes SID Bonds related to Two Summerlin, Aristocrat, Tanager Apartments, and Las Vegas Ballpark. Maturity dates range between December 2020 and December 2030 and interest rates range between 6.00% and 7.30%.
|
(h)
|
Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails on June 27, 2019, the Company entered into an interest rate swap which is designated as a cash flow hedge. The Loan will bear interest at one-month LIBOR plus 2.45% but it is currently swapped to a fixed rate equal to 4.89%.
|
(i)
|
The Company completed the sale of its corporate aircraft during the quarter ended December 31, 2019.
|
i.
|
100%, or $1.0 billion of Senior Notes due 2025;
|
ii.
|
100%, or $336.6 million of The Woodlands Towers at the Waterway outstanding balance;
|
iii.
|
100%, or $7.2 million of The Woodlands Warehouse outstanding balance;
|
iv.
|
35%, or $90.7 million of the Downtown Summerlin outstanding balance;
|
v.
|
35%, or $35.0 million of the 250 Water Street outstanding loan balance;
|
vi.
|
50%, or $15.3 million, of the Outlet Collection at Riverwalk outstanding loan balance;
|
vii.
|
18%, or $33.2 million, of the 110 North Wacker outstanding loan balance;
|
viii.
|
25%, or $7.3 million of the Tanager Apartments outstanding loan balance;
|
ix.
|
25%, or $6.0 million of the Lakeside Row outstanding loan balance;
|
x.
|
25%, or $8.7 million of the Juniper Apartments outstanding loan balance;
|
xi.
|
25%, or $7.7 million of the ‘A‘ali‘i outstanding loan balance; and
|
xii.
|
25%, or $9.1 million of the 6100 Merriweather outstanding loan balance.
|
|
|
Mortgages, notes
|
||
|
|
and loans payable
|
||
(In thousands)
|
|
principal payments
|
||
2020
|
|
$
|
424,933
|
|
2021
|
|
320,641
|
|
|
2022
|
|
137,825
|
|
|
2023
|
|
967,129
|
|
|
2024
|
|
764,615
|
|
|
Thereafter
|
|
1,523,475
|
|
|
Total principal payments
|
|
4,138,618
|
|
|
Unamortized deferred financing costs, net and unamortized underwriting fees
|
|
(42,148
|
)
|
|
Total mortgages, notes and loans payable
|
|
$
|
4,096,470
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
|
Fair Value Measurements Using
|
|
Fair Value Measurements Using
|
||||||||||||||||||||||||||||
(In thousands)
|
|
Total
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivative assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
346
|
|
|
$
|
—
|
|
|
$
|
346
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate derivative liabilities
|
|
40,135
|
|
|
—
|
|
|
40,135
|
|
|
—
|
|
|
16,517
|
|
|
—
|
|
|
16,517
|
|
|
—
|
|
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as of January 1,
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
332,170
|
|
Warrant liability loss (a)
|
|
—
|
|
|
—
|
|
|
43,443
|
|
|||
Exercises of Sponsor and Management Warrants
|
|
—
|
|
|
—
|
|
|
(375,613
|
)
|
|||
Balance as of December 31,
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(a)
|
Amount represents losses recognized relating to each warrant prior to the respective exercise date.
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(In thousands)
|
|
Fair Value
Hierarchy |
|
Carrying
Amount |
|
Estimated
Fair Value |
|
Carrying
Amount |
|
Estimated
Fair Value |
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and Restricted cash
|
|
Level 1
|
|
$
|
620,135
|
|
|
$
|
620,135
|
|
|
$
|
724,215
|
|
|
$
|
724,215
|
|
Accounts receivable, net (a)
|
|
Level 3
|
|
12,279
|
|
|
12,279
|
|
|
12,589
|
|
|
12,589
|
|
||||
Notes receivable, net (b)
|
|
Level 3
|
|
36,379
|
|
|
36,379
|
|
|
4,694
|
|
|
4,694
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed-rate debt (c)
|
|
Level 2
|
|
1,908,660
|
|
|
1,949,773
|
|
|
1,663,875
|
|
|
1,608,635
|
|
||||
Variable-rate debt (c)
|
|
Level 2
|
|
2,229,958
|
|
|
2,229,958
|
|
|
1,551,336
|
|
|
1,551,336
|
|
|
(a)
|
Accounts receivable, net is shown net of an allowance of $15.6 million and $10.7 million at December 31, 2019 and 2018, respectively.
|
(b)
|
Notes receivable, net is shown net of an allowance of $0.2 million and $0.1 million at December 31, 2019 and 2018.
|
(c)
|
Excludes related unamortized financing costs.
|
|
(a)
|
These rates represent the strike rate on HHC’s interest swaps, caps and collars.
|
(b)
|
Interest income of $0.2 million is included in the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018 related to these contracts.
|
(c)
|
The Company settled this Interest rate cap on February 1, 2019.
|
(d)
|
On August 30, 2019, the Company executed an agreement to extend the maturing position of this cap.
|
(e)
|
On May 17, 2018 and May 18, 2018, the Company entered into these interest rate collars which are designated as cash flow hedges. On May 1, 2019, the $51.6 million interest rate collar matured as scheduled.
|
(f)
|
Concurrent with the funding of the new $615.0 million Term Loan, on September 21, 2018, the Company entered into this interest rate swap which is designated as a cash flow hedge.
|
(g)
|
Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails on June 27, 2019, the Company entered into this interest rate swap which is designated as a cash flow hedge.
|
|
|
Amount of (Loss) Gain Recognized
|
||||||||||
|
|
in AOCI on Derivative
|
||||||||||
|
|
December 31,
|
||||||||||
Derivatives in Cash Flow Hedging Relationships
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest rate derivatives
|
|
$
|
(19,245
|
)
|
|
$
|
2,090
|
|
|
$
|
(726
|
)
|
|
|
Amount of (Loss) Gain Reclassified from
|
||||||||||
|
|
AOCI into Operations
|
||||||||||
|
|
December 31,
|
||||||||||
Location of Loss Reclassified from AOCI into Operations
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest expense
|
|
$
|
(770
|
)
|
|
$
|
1,135
|
|
|
$
|
(905
|
)
|
|
|
Total Interest Expense Presented
|
||||||||||
|
|
in the Results of Operations in which
|
||||||||||
|
|
the Effects of Cash Flow Hedges are Recorded
|
||||||||||
|
|
December 31,
|
||||||||||
Interest Expense Presented in Results of Operations
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest expense
|
|
$
|
105,374
|
|
|
$
|
82,028
|
|
|
$
|
64,568
|
|
|
|
|
|
|
|
Weighted-Average
|
|
|
||||
|
|
|
|
|
|
Remaining
|
|
Aggregate
|
||||
|
|
|
|
Weighted-Average
|
|
Contractual Term
|
|
Intrinsic
|
||||
|
|
Shares
|
|
Exercise Price
|
|
(In years)
|
|
Value
|
||||
Stock options outstanding at January 1, 2017
|
|
1,176,640
|
|
|
$
|
78.87
|
|
|
|
|
|
|
Granted
|
|
58,000
|
|
|
119.85
|
|
|
|
|
|
||
Exercised
|
|
(395,482
|
)
|
|
58.81
|
|
|
|
|
|
||
Forfeited
|
|
(54,976
|
)
|
|
105.17
|
|
|
|
|
|
||
Expired
|
|
(1,000
|
)
|
|
57.77
|
|
|
|
|
|
||
Stock options outstanding at December 31, 2017
|
|
783,182
|
|
|
$
|
90.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Granted
|
|
265,000
|
|
|
$
|
124.56
|
|
|
|
|
|
|
Exercised
|
|
(183,592
|
)
|
|
65.72
|
|
|
|
|
|
||
Forfeited
|
|
(46,592
|
)
|
|
121.34
|
|
|
|
|
|
||
Stock options outstanding at December 31, 2018
|
|
817,998
|
|
|
$
|
105.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Granted
|
|
21,500
|
|
|
$
|
105.37
|
|
|
|
|
|
|
Exercised
|
|
(39,402
|
)
|
|
63.73
|
|
|
|
|
|
||
Forfeited
|
|
(65,800
|
)
|
|
128.02
|
|
|
|
|
|
||
Expired
|
|
(12,800
|
)
|
|
143.45
|
|
|
|
|
|
||
Stock options outstanding at December 31, 2019
|
|
721,496
|
|
|
$
|
104.55
|
|
|
5.5
|
|
17,098,603
|
|
|
|
|
|
|
|
|
|
|
||||
Stock options exercisable at December 31, 2019
|
|
256,296
|
|
|
$
|
76.61
|
|
|
2.0
|
|
13,356,723
|
|
Stock options vested and expected to vest at December 31, 2019
|
|
705,947
|
|
|
$
|
104.17
|
|
|
5.4
|
|
17,011,899
|
|
|
|
|
|
|
|
|
|
Weighted-Average
|
|
|
||||||||
|
|
|
|
|
|
|
|
Remaining
|
|
|
||||||||
|
|
|
|
Number
|
|
Weighted-Average
|
|
Contractual Term
|
|
Number
|
||||||||
Range of Exercise Prices
|
|
Outstanding
|
|
Exercise Price
|
|
(In years)
|
|
Exercisable
|
||||||||||
$
|
46.46
|
|
|
$
|
55.82
|
|
|
8,775
|
|
|
$
|
48.38
|
|
|
1.8
|
|
8,775
|
|
$
|
57.77
|
|
|
$
|
60.33
|
|
|
131,874
|
|
|
58.03
|
|
|
1.2
|
|
131,874
|
|
|
$
|
61.64
|
|
|
$
|
69.75
|
|
|
47,529
|
|
|
66.75
|
|
|
2.3
|
|
47,529
|
|
|
$
|
81.80
|
|
|
$
|
110.50
|
|
|
75,710
|
|
|
103.12
|
|
|
5.9
|
|
33,210
|
|
|
$
|
112.64
|
|
|
$
|
151.72
|
|
|
457,608
|
|
|
123.20
|
|
|
7.0
|
|
34,908
|
|
|
|
|
|
|
721,496
|
|
|
$
|
104.56
|
|
|
5.5
|
|
256,296
|
|
|
|
As of December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Grant date fair value
|
|
$
|
32.51
|
|
|
$
|
48.27
|
|
|
$
|
34.51
|
|
Expected life of options (in years)
|
|
7.5
|
|
|
8.4
|
|
|
8.4
|
|
|||
Risk-free interest rate
|
|
2.2
|
%
|
|
2.7
|
%
|
|
2.2
|
%
|
|||
Expected volatility
|
|
22.6
|
%
|
|
24.7
|
%
|
|
22.8
|
%
|
|||
Expected annual dividend per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Weighted-Average
|
|||||
|
|
Grant Date
|
|||||
|
|
Shares
|
|
Fair Value
|
|||
Restricted stock outstanding at January 1, 2017
|
|
289,112
|
|
|
$
|
88.88
|
|
Granted
|
|
177,708
|
|
|
85.88
|
|
|
Vested
|
|
(68,819
|
)
|
|
88.58
|
|
|
Forfeited
|
|
(43,482
|
)
|
|
76.10
|
|
|
Restricted stock outstanding at December 31, 2017
|
|
354,519
|
|
|
$
|
89.00
|
|
Granted
|
|
142,332
|
|
|
83.09
|
|
|
Vested
|
|
(52,479
|
)
|
|
124.50
|
|
|
Forfeited
|
|
(37,828
|
)
|
|
91.71
|
|
|
Restricted stock outstanding at December 31, 2018
|
|
406,544
|
|
|
$
|
82.10
|
|
Granted
|
|
236,145
|
|
|
98.78
|
|
|
Vested
|
|
(118,560
|
)
|
|
122.51
|
|
|
Forfeited
|
|
(117,327
|
)
|
|
95.03
|
|
|
Restricted stock outstanding at December 31, 2019
|
|
406,802
|
|
|
$
|
76.27
|
|
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current
|
|
$
|
1,427
|
|
|
$
|
(703
|
)
|
|
$
|
(2,338
|
)
|
Deferred
|
|
27,818
|
|
|
16,195
|
|
|
(43,463
|
)
|
|||
Total
|
|
$
|
29,245
|
|
|
$
|
15,492
|
|
|
$
|
(45,801
|
)
|
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Tax at statutory rate on earnings from continuing operations before income taxes
|
|
$
|
21,672
|
|
|
$
|
15,226
|
|
|
$
|
42,911
|
|
Increase (decrease) in valuation allowance, net
|
|
4,419
|
|
|
8,033
|
|
|
(175
|
)
|
|||
State income taxes, net of Federal income tax benefit
|
|
417
|
|
|
(4,933
|
)
|
|
1,408
|
|
|||
Tax benefit from Tax Act
|
|
—
|
|
|
—
|
|
|
(101,688
|
)
|
|||
Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences
|
|
250
|
|
|
(1,292
|
)
|
|
2,941
|
|
|||
Tax benefit on equity compensation
|
|
(317
|
)
|
|
(1,490
|
)
|
|
(6,403
|
)
|
|||
Tax expense on compensation disallowance
|
|
2,804
|
|
|
1,168
|
|
|
—
|
|
|||
Tax benefit on historic tax credit
|
|
—
|
|
|
(1,220
|
)
|
|
—
|
|
|||
Non-deductible warrant liability loss
|
|
—
|
|
|
—
|
|
|
15,205
|
|
|||
Income tax expense (benefit)
|
|
$
|
29,245
|
|
|
$
|
15,492
|
|
|
$
|
(45,801
|
)
|
|
|
|
|
Expiration
|
||
(In thousands)
|
|
Amount
|
|
Date
|
||
Net operating loss carryforwards - Federal
|
|
$
|
145,671
|
|
|
2024-2037
|
Net operating loss carryforwards - Federal
|
|
311,972
|
|
|
n/a
|
|
Net operating loss carryforwards - State
|
|
632,122
|
|
|
2020-2039
|
|
Tax credit carryforwards - Federal AMT
|
|
1,736
|
|
|
n/a
|
|
Tax credit carryforwards - Historic Tax Credit
|
|
1,574
|
|
|
2038
|
(In thousands)
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities
|
|
$
|
65,590
|
|
|
$
|
83,263
|
|
Interest deduction carryforwards
|
|
—
|
|
|
34,611
|
|
||
Operating loss and tax credit carryforwards
|
|
132,277
|
|
|
65,071
|
|
||
Total deferred tax assets
|
|
197,867
|
|
|
182,945
|
|
||
Valuation allowance
|
|
(29,723
|
)
|
|
(25,304
|
)
|
||
Total net deferred tax assets
|
|
$
|
168,144
|
|
|
$
|
157,641
|
|
Deferred tax liabilities:
|
|
|
|
|
||||
Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs
|
|
$
|
(163,024
|
)
|
|
$
|
(146,124
|
)
|
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities
|
|
(67,125
|
)
|
|
(59,517
|
)
|
||
Deferred income
|
|
(118,743
|
)
|
|
(109,188
|
)
|
||
Total deferred tax liabilities
|
|
(348,892
|
)
|
|
(314,829
|
)
|
||
Total net deferred tax liabilities
|
|
$
|
(180,748
|
)
|
|
$
|
(157,188
|
)
|
(In thousands)
|
|
|
||
Balance as of December 31, 2017
|
|
$
|
(6,965
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
2,120
|
|
|
(Gain) loss reclassified from accumulated other comprehensive loss to net income
|
|
(1,135
|
)
|
|
Adjustment related to adoption of ASU 2018-02
|
|
(1,148
|
)
|
|
Balance as of Adjustment related to adoption of ASU 2017-12
|
|
(739
|
)
|
|
Pension adjustment
|
|
759
|
|
|
Terminated swap amortization
|
|
(1,018
|
)
|
|
Net current-period other comprehensive income (loss)
|
|
(1,161
|
)
|
|
Balance as of December 31, 2018
|
|
(8,126
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
|
(19,318
|
)
|
|
(Gain) loss reclassified from accumulated other comprehensive loss to net income
|
|
770
|
|
|
Pension adjustment
|
|
11
|
|
|
Terminated swap amortization
|
|
(2,709
|
)
|
|
Net current-period other comprehensive income (loss)
|
|
(21,246
|
)
|
|
Balance as of Balance as of December 31, 2019
|
|
$
|
(29,372
|
)
|
|
|
|
|
Amounts reclassified from
Accumulated Other Comprehensive Income (Loss) |
||||||
(In thousands)
|
|
Affected line items in the
|
|
For the Year Ended
|
||||||
Accumulated Other Comprehensive Income (Loss) Components
|
|
Statements of Operations
|
|
2019
|
|
2018
|
||||
(Gains) losses on cash flow hedges
|
|
Interest expense
|
|
$
|
974
|
|
|
$
|
(1,437
|
)
|
Interest rate swap contracts
|
|
Provision for income taxes
|
|
(204
|
)
|
|
302
|
|
||
Total reclassifications of (income) loss for the period
|
|
Net of tax
|
|
$
|
770
|
|
|
$
|
(1,135
|
)
|
|
|
December 31,
|
||||||||||
(In thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Basic EPS:
|
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
74,295
|
|
|
$
|
57,726
|
|
|
$
|
166,623
|
|
Net income attributable to noncontrolling interests
|
|
(339
|
)
|
|
(714
|
)
|
|
1,781
|
|
|||
Net income attributable to common stockholders
|
|
$
|
73,956
|
|
|
$
|
57,012
|
|
|
$
|
168,404
|
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
|
||||||
Weighted-average basic common shares outstanding
|
|
43,136
|
|
|
43,036
|
|
|
41,364
|
|
|||
|
|
|
|
|
|
|
||||||
Diluted EPS:
|
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income attributable to common stockholders
|
|
$
|
73,956
|
|
|
$
|
57,012
|
|
|
$
|
168,404
|
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
|
||||||
Weighted-average basic common shares outstanding
|
|
43,136
|
|
|
43,036
|
|
|
41,364
|
|
|||
Restricted stock and stock options
|
|
168
|
|
|
201
|
|
|
279
|
|
|||
Warrants
|
|
4
|
|
|
—
|
|
|
1,446
|
|
|||
Weighted-average diluted common shares outstanding (a)
|
|
43,308
|
|
|
43,237
|
|
|
43,089
|
|
|||
|
|
|
|
|
|
|
||||||
Basic income per share:
|
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
4.07
|
|
Diluted income per share:
|
|
$
|
1.71
|
|
|
$
|
1.32
|
|
|
$
|
3.91
|
|
|
(a)
|
The diluted EPS computation excludes 379,608, 425,908 and 313,500 shares of stock options as of December 31, 2019, 2018 and 2017, respectively, because their inclusion would have been anti-dilutive. The diluted EPS computation also excludes 235,894, 205,979 and 161,155 shares of restricted stock because performance conditions provided for in the restricted stock awards have not been satisfied as of December 31, 2019, 2018 and 2017, respectively.
|
|
|
Year Ended
|
|
Year Ended
|
||||
(In thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Revenues
|
|
|
|
|
||||
From contracts with customers
|
|
|
|
|
||||
Recognized at a point in time:
|
|
|
|
|
||||
Condominium rights and unit sales
|
|
$
|
448,940
|
|
|
$
|
357,720
|
|
Master Planned Communities land sales
|
|
330,146
|
|
|
261,905
|
|
||
Hospitality revenues
|
|
87,864
|
|
|
82,037
|
|
||
Builder price participation
|
|
35,681
|
|
|
27,085
|
|
||
Total revenue from contracts with customers
|
|
902,631
|
|
|
728,747
|
|
||
|
|
|
|
|
||||
Recognized at a point in time and/or over time:
|
|
|
|
|
||||
Other land revenues
|
|
23,399
|
|
|
21,314
|
|
||
Other rental and property revenues
|
|
95,703
|
|
|
57,168
|
|
||
Total other income
|
|
119,102
|
|
|
78,482
|
|
||
|
|
|
|
|
||||
Rental and other income (lease-related revenues)
|
|
|
|
|
||||
Minimum rents
|
|
221,907
|
|
|
207,315
|
|
||
Tenant recoveries
|
|
54,710
|
|
|
49,993
|
|
||
Interest income from sales-type leases
|
|
2,189
|
|
|
—
|
|
||
Total rental income
|
|
278,806
|
|
|
257,308
|
|
||
|
|
|
|
|
||||
Total revenues
|
|
$
|
1,300,539
|
|
|
$
|
1,064,537
|
|
|
|
|
|
|
||||
Revenues by segment
|
|
|
|
|
||||
Operating Assets revenues
|
|
$
|
400,131
|
|
|
$
|
348,242
|
|
Master Planned Communities revenues
|
|
386,781
|
|
|
309,451
|
|
||
Seaport revenues
|
|
55,645
|
|
|
32,632
|
|
||
Strategic Developments revenues
|
|
457,948
|
|
|
374,212
|
|
||
Corporate revenues
|
|
34
|
|
|
—
|
|
||
|
|
|
|
|
||||
Total revenues
|
|
$
|
1,300,539
|
|
|
$
|
1,064,537
|
|
|
|
Contract
|
|
Contract
|
||||
(In thousands)
|
|
Liabilities
|
|
Assets
|
||||
Balance as of January 1, 2018
|
|
$
|
—
|
|
|
$
|
179,179
|
|
Consideration earned during the period
|
|
(35,834
|
)
|
|
(308,898
|
)
|
||
Consideration received during the period
|
|
35,834
|
|
|
426,215
|
|
||
Balance as of December 31, 2018
|
|
—
|
|
|
296,496
|
|
||
Consideration earned during the period
|
|
—
|
|
|
(490,137
|
)
|
||
Consideration received during the period
|
|
—
|
|
|
439,651
|
|
||
Balance as of December 31, 2019
|
|
$
|
—
|
|
|
$
|
246,010
|
|
(In thousands)
|
|
Less than 1 year
|
|
1-2 years
|
|
3 years and thereafter
|
||||||
Total remaining unsatisfied performance obligations
|
|
$
|
120,856
|
|
|
$
|
431,263
|
|
|
$
|
491,466
|
|
•
|
Operating Assets – consists of retail, office, hospitality and multi-family properties along with other real estate investments. These assets are currently generating revenues and are comprised of commercial real estate properties recently developed or acquired, and properties with an opportunity to redevelop, reposition or sell to improve segment performance or to recycle capital.
|
•
|
MPC – consists of the development and sale of land in large‑scale, long‑term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Columbia, Maryland.
|
•
|
Seaport District - consists of approximately 453,000 square feet of restaurant, retail and entertainment properties situated in three primary locations in New York, New York: Pier 17, Historic Area/Uplands and Tin Building. While the latter is still under development and will comprise about 53,000 square feet when completed, the two operating locations consist of third-party tenants, tenants either directly or jointly owned and operated by the Company, and businesses owned and operated by the Company under licensing agreements.
|
•
|
Strategic Developments – consists of residential condominium and commercial property projects currently under development and all other properties held for development which have no substantial operations.
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Assets Segment EBT
|
|
|
|
|
|
|
||||||
Total revenues
|
|
$
|
400,131
|
|
|
$
|
348,242
|
|
|
$
|
317,296
|
|
Total operating expenses
|
|
(187,322
|
)
|
|
(164,445
|
)
|
|
(158,421
|
)
|
|||
Segment operating income
|
|
212,809
|
|
|
183,797
|
|
|
158,875
|
|
|||
Depreciation and amortization
|
|
(115,499
|
)
|
|
(103,293
|
)
|
|
(117,835
|
)
|
|||
Interest expense, net
|
|
(81,029
|
)
|
|
(71,551
|
)
|
|
(61,583
|
)
|
|||
Other income (loss), net
|
|
1,142
|
|
|
(7,107
|
)
|
|
(279
|
)
|
|||
Equity in earnings from real estate and other affiliates
|
|
3,672
|
|
|
1,994
|
|
|
3,735
|
|
|||
(Loss) gain on sale or disposal of real estate and other assets, net
|
|
—
|
|
|
(4
|
)
|
|
3,868
|
|
|||
Gain on acquisition of joint venture partner's interest
|
|
—
|
|
|
—
|
|
|
23,332
|
|
|||
Selling profit from sales-type leases
|
|
13,537
|
|
|
—
|
|
|
—
|
|
|||
Operating Assets segment EBT
|
|
34,632
|
|
|
3,836
|
|
|
10,113
|
|
|||
|
|
|
|
|
|
|
||||||
Master Planned Communities Segment EBT
|
|
|
|
|
|
|
||||||
Total revenues
|
|
386,781
|
|
|
309,451
|
|
|
299,543
|
|
|||
Total operating expenses
|
|
(189,727
|
)
|
|
(169,474
|
)
|
|
(159,895
|
)
|
|||
Segment operating income
|
|
197,054
|
|
|
139,977
|
|
|
139,648
|
|
|||
Depreciation and amortization
|
|
(424
|
)
|
|
(243
|
)
|
|
(323
|
)
|
|||
Interest income, net
|
|
32,019
|
|
|
26,919
|
|
|
24,292
|
|
|||
Other income, net
|
|
601
|
|
|
18
|
|
|
3,500
|
|
|||
Equity in earnings from real estate and other affiliates
|
|
28,336
|
|
|
36,284
|
|
|
23,234
|
|
|||
MPC segment EBT
|
|
257,586
|
|
|
202,955
|
|
|
190,351
|
|
|||
|
|
|
|
|
|
|
||||||
Seaport District Segment EBT
|
|
|
|
|
|
|
||||||
Total revenues
|
|
55,645
|
|
|
32,632
|
|
|
10,259
|
|
|||
Total operating expenses
|
|
(77,872
|
)
|
|
(49,716
|
)
|
|
(13,136
|
)
|
|||
Segment operating income
|
|
(22,227
|
)
|
|
(17,084
|
)
|
|
(2,877
|
)
|
|||
Depreciation and amortization
|
|
(26,381
|
)
|
|
(12,466
|
)
|
|
(6,270
|
)
|
|||
Interest (expense) income, net
|
|
(12,865
|
)
|
|
6,291
|
|
|
13,229
|
|
|||
Other (loss) income, net
|
|
(22
|
)
|
|
102
|
|
|
(37
|
)
|
|||
Equity in losses from real estate and other affiliates
|
|
(2,592
|
)
|
|
(705
|
)
|
|
(643
|
)
|
|||
Loss on sale or disposal of real estate and other assets
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on extinguishment of debt
|
|
4,851
|
|
|
—
|
|
|
—
|
|
|||
Seaport District segment EBT
|
|
(59,242
|
)
|
|
(23,862
|
)
|
|
3,402
|
|
|||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Strategic Developments Segment EBT
|
|
|
|
|
|
|
||||||
Total revenues
|
|
457,948
|
|
|
374,212
|
|
|
473,022
|
|
|||
Total operating expenses
|
|
(391,848
|
)
|
|
(290,806
|
)
|
|
(360,220
|
)
|
|||
Segment operating income
|
|
66,100
|
|
|
83,406
|
|
|
112,802
|
|
|||
Depreciation and amortization
|
|
(5,473
|
)
|
|
(3,307
|
)
|
|
(1,210
|
)
|
|||
Interest income, net
|
|
11,321
|
|
|
12,476
|
|
|
12,237
|
|
|||
Other income, net
|
|
831
|
|
|
3,015
|
|
|
109
|
|
|||
Equity in earnings (losses) from real estate and other affiliates
|
|
1,213
|
|
|
2,364
|
|
|
(373
|
)
|
|||
Gain on sale or disposal of real estate and other assets, net
|
|
27,119
|
|
|
—
|
|
|
51,242
|
|
|||
Strategic Developments EBT
|
|
101,111
|
|
|
97,954
|
|
|
174,807
|
|
|||
|
|
|
|
|
|
|
||||||
Consolidated Segment EBT
|
|
|
|
|
|
|
||||||
Total revenues
|
|
1,300,505
|
|
|
1,064,537
|
|
|
1,100,120
|
|
|||
Total operating expenses
|
|
(846,769
|
)
|
|
(674,441
|
)
|
|
(691,672
|
)
|
|||
Segment operating income
|
|
453,736
|
|
|
390,096
|
|
|
408,448
|
|
|||
Depreciation and amortization
|
|
(147,777
|
)
|
|
(119,309
|
)
|
|
(125,638
|
)
|
|||
Interest expense, net
|
|
(50,554
|
)
|
|
(25,865
|
)
|
|
(11,825
|
)
|
|||
Other income (loss), net
|
|
2,552
|
|
|
(3,972
|
)
|
|
3,293
|
|
|||
Equity in earnings from real estate and other affiliates
|
|
30,629
|
|
|
39,937
|
|
|
25,953
|
|
|||
Gain (loss) on sale or disposal of real estate and other assets, net
|
|
27,113
|
|
|
(4
|
)
|
|
55,110
|
|
|||
Gain on acquisition of joint venture partner's interest
|
|
—
|
|
|
—
|
|
|
23,332
|
|
|||
Selling profit from sales-type leases
|
|
13,537
|
|
|
—
|
|
|
—
|
|
|||
Gain on extinguishment of debt
|
|
4,851
|
|
|
—
|
|
|
—
|
|
|||
Consolidated segment EBT
|
|
334,087
|
|
|
280,883
|
|
|
378,673
|
|
|||
|
|
|
|
|
|
|
||||||
Corporate income, expenses and other items
|
|
(259,792
|
)
|
|
(223,157
|
)
|
|
(212,050
|
)
|
|||
Net income
|
|
74,295
|
|
|
57,726
|
|
|
166,623
|
|
|||
Net (income) loss attributable to noncontrolling interests
|
|
(339
|
)
|
|
(714
|
)
|
|
1,781
|
|
|||
Net income attributable to common stockholders
|
|
$
|
73,956
|
|
|
$
|
57,012
|
|
|
$
|
168,404
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2019
|
|
2018
|
||||
Operating Assets
|
|
$
|
3,476,718
|
|
|
$
|
2,562,257
|
|
Master Planned Communities
|
|
2,166,472
|
|
|
2,076,678
|
|
||
Seaport District
|
|
930,067
|
|
|
839,522
|
|
||
Strategic Developments
|
|
1,540,161
|
|
|
1,538,917
|
|
||
Total segment assets
|
|
8,113,418
|
|
|
7,017,374
|
|
||
Corporate
|
|
300,348
|
|
|
338,425
|
|
||
Total assets
|
|
$
|
8,413,766
|
|
|
$
|
7,355,799
|
|
|
|
2019
|
||||||||||||||
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
(In thousands, except share amounts)
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||
Total revenues
|
|
$
|
353,890
|
|
|
$
|
431,316
|
|
|
$
|
231,172
|
|
|
$
|
284,161
|
|
Operating income
|
|
53,743
|
|
|
33,399
|
|
|
46,639
|
|
|
16,529
|
|
||||
Net income
|
|
31,925
|
|
|
13,328
|
|
|
30,043
|
|
|
(1,001
|
)
|
||||
Net income attributable to common stockholders
|
|
31,821
|
|
|
13,477
|
|
|
29,758
|
|
|
(1,100
|
)
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
0.74
|
|
|
0.31
|
|
|
0.69
|
|
|
(0.03
|
)
|
||||
Diluted (a)
|
|
0.74
|
|
|
0.31
|
|
|
0.69
|
|
|
(0.03
|
)
|
||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
43,106
|
|
|
43,113
|
|
|
43,134
|
|
|
43,190
|
|
||||
Diluted
|
|
43,257
|
|
|
43,271
|
|
|
43,428
|
|
|
43,356
|
|
|
|
2018
|
||||||||||||||
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
(In thousands, except share amounts)
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||||||
Total revenues
|
|
$
|
161,679
|
|
|
$
|
181,005
|
|
|
$
|
257,160
|
|
|
$
|
464,693
|
|
Operating income
|
|
2,539
|
|
|
(8,295
|
)
|
|
42,312
|
|
|
70,254
|
|
||||
Net income
|
|
1,834
|
|
|
(5,879
|
)
|
|
23,847
|
|
|
37,924
|
|
||||
Net income attributable to common stockholders
|
|
1,474
|
|
|
(5,088
|
)
|
|
23,365
|
|
|
37,261
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
0.03
|
|
|
(0.12
|
)
|
|
0.54
|
|
|
0.87
|
|
||||
Diluted (a)
|
|
0.03
|
|
|
(0.12
|
)
|
|
0.54
|
|
|
0.86
|
|
||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
42,976
|
|
|
42,573
|
|
|
43,066
|
|
|
43,075
|
|
||||
Diluted
|
|
43,363
|
|
|
42,942
|
|
|
43,317
|
|
|
43,250
|
|
|
(a)
|
Diluted earnings per share includes the impact of dilutive warrants, in the money options and restricted stock.
|
|
|
|
|
Initial Cost (b)
|
Costs Capitalized Subsequent to Acquisition (c)
|
Gross Amounts at Which Carried at Close of Period (d)
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
Buildings
|
|
Buildings
|
|
Buildings
|
|
|
|
Date
|
||||||||||||||||||
(In thousands)
|
|
|
|
|
and
|
|
and
|
|
and
|
|
Accumulated
|
Date of
|
Acquired /
|
||||||||||||||||||
Name of Center
|
Location
|
Center Type
|
Encumbrances (a)
|
Land
|
Improvements
|
Land (e)
|
Improvements (e)(f)
|
Land
|
Improvements (f)
|
Total
|
Depreciation (g)
|
Construction
|
Completed
|
||||||||||||||||||
Bridgeland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Bridgeland
|
Cypress, TX
|
MPC
|
$
|
107,500
|
|
$
|
260,223
|
|
$
|
—
|
|
$
|
227,091
|
|
$
|
1,822
|
|
$
|
487,314
|
|
$
|
1,822
|
|
$
|
489,136
|
|
$
|
(476
|
)
|
|
2004
|
Lakeland Village Center at Bridgeland (h)
|
Cypress, TX
|
Retail
|
14,135
|
|
2,404
|
|
11,135
|
|
—
|
|
3,306
|
|
2,404
|
|
14,441
|
|
16,845
|
|
(1,424
|
)
|
|
2016
|
|||||||||
Lakeside Row
|
Cypress, TX
|
Multi-family
|
23,958
|
|
—
|
|
—
|
|
812
|
|
42,065
|
|
812
|
|
42,065
|
|
42,877
|
|
(172
|
)
|
2018
|
2019
|
|||||||||
Columbia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
American City Building
|
Columbia, MD
|
Other
|
—
|
|
—
|
|
13,534
|
|
—
|
|
1,043
|
|
—
|
|
14,577
|
|
14,577
|
|
—
|
|
|
2016
|
|||||||||
Columbia
|
Columbia, MD
|
MPC
|
—
|
|
457,552
|
|
—
|
|
(440,909
|
)
|
—
|
|
16,643
|
|
—
|
|
16,643
|
|
—
|
|
|
2004
|
|||||||||
10 - 70 Columbia Corporate Center (h)
|
Columbia, MD
|
Office
|
99,184
|
|
24,685
|
|
94,824
|
|
—
|
|
26,511
|
|
24,685
|
|
121,335
|
|
146,020
|
|
(20,345
|
)
|
|
2012/2014
|
|||||||||
Columbia Office Properties
|
Columbia, MD
|
Office
|
—
|
|
1,175
|
|
14,913
|
|
—
|
|
(937
|
)
|
1,175
|
|
13,976
|
|
15,151
|
|
(5,362
|
)
|
|
1969/1972
|
|||||||||
Columbia Regional Building
|
Columbia, MD
|
Office
|
24,664
|
|
—
|
|
28,865
|
|
—
|
|
2,357
|
|
—
|
|
31,222
|
|
31,222
|
|
(5,042
|
)
|
|
2014
|
|||||||||
Juniper Apartments
|
Columbia, MD
|
Development
|
34,610
|
|
—
|
|
—
|
|
—
|
|
84,635
|
|
—
|
|
84,635
|
|
84,635
|
|
—
|
|
2018
|
|
|||||||||
Lakefront
|
Columbia, MD
|
Other
|
—
|
|
—
|
|
1,964
|
|
—
|
|
2,692
|
|
—
|
|
4,656
|
|
4,656
|
|
—
|
|
|
2004
|
|||||||||
Merriweather District
|
Columbia, MD
|
Development
|
—
|
|
—
|
|
—
|
|
—
|
|
95,431
|
|
—
|
|
95,431
|
|
95,431
|
|
—
|
|
|
2015
|
|||||||||
Merriweather District Area 3 Standalone Restaurant
|
Columbia, MD
|
Development
|
—
|
|
—
|
|
—
|
|
—
|
|
8,815
|
|
—
|
|
8,815
|
|
8,815
|
|
—
|
|
2019
|
|
|||||||||
6100 Merriweather
|
Columbia, MD
|
Office
|
36,418
|
|
—
|
|
—
|
|
2,489
|
|
88,385
|
|
2,489
|
|
88,385
|
|
90,874
|
|
(589
|
)
|
2018
|
2019
|
|||||||||
One Mall North (h)
|
Columbia, MD
|
Office
|
12,425
|
|
7,822
|
|
10,818
|
|
—
|
|
906
|
|
7,822
|
|
11,724
|
|
19,546
|
|
(983
|
)
|
|
2016
|
|||||||||
One Merriweather (h)
|
Columbia, MD
|
Office
|
42,008
|
|
1,433
|
|
58,936
|
|
—
|
|
15,401
|
|
1,433
|
|
74,337
|
|
75,770
|
|
(6,255
|
)
|
|
2017
|
|||||||||
Two Merriweather
|
Columbia, MD
|
Office
|
28,216
|
|
1,019
|
|
4,931
|
|
—
|
|
32,842
|
|
1,019
|
|
37,773
|
|
38,792
|
|
(2,388
|
)
|
|
2017
|
|||||||||
Ridgely Building
|
Columbia, MD
|
Other
|
—
|
|
400
|
|
58,937
|
|
(400
|
)
|
(58,537
|
)
|
—
|
|
400
|
|
400
|
|
—
|
|
|
2017
|
|||||||||
Sterrett Place
|
Columbia, MD
|
Other
|
—
|
|
—
|
|
5,618
|
|
—
|
|
303
|
|
—
|
|
5,921
|
|
5,921
|
|
(77
|
)
|
|
2018
|
|||||||||
Seaport District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
85 South Street
|
New York, NY
|
Multi-family
|
—
|
|
15,913
|
|
8,137
|
|
—
|
|
1,341
|
|
15,913
|
|
9,478
|
|
25,391
|
|
(3,311
|
)
|
|
2014
|
|||||||||
Seaport Predevelopment
|
New York, NY
|
Development
|
—
|
|
—
|
|
7,641
|
|
—
|
|
3,493
|
|
—
|
|
11,134
|
|
11,134
|
|
—
|
|
2013
|
|
|||||||||
Tin Building
|
New York, NY
|
Development
|
—
|
|
—
|
|
8,290
|
|
—
|
|
59,037
|
|
—
|
|
67,327
|
|
67,327
|
|
—
|
|
|
2015
|
|||||||||
Pier 17
|
New York, NY
|
Retail
|
250,000
|
|
—
|
|
468,476
|
|
—
|
|
195
|
|
—
|
|
468,671
|
|
468,671
|
|
(24,912
|
)
|
2017
|
2018
|
|||||||||
Seaport District Historic Area / Uplands
|
New York, NY
|
Retail
|
—
|
|
—
|
|
7,884
|
|
—
|
|
112,532
|
|
—
|
|
120,416
|
|
120,416
|
|
(13,418
|
)
|
2013
|
2016
|
|||||||||
250 Water Street
|
New York, NY
|
Development
|
100,000
|
|
—
|
|
179,471
|
|
—
|
|
330
|
|
—
|
|
179,801
|
|
179,801
|
|
—
|
|
|
2018
|
|||||||||
Summerlin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Aristocrat (i)
|
Las Vegas, NV
|
Office
|
38,092
|
|
5,004
|
|
34,588
|
|
—
|
|
—
|
|
5,004
|
|
34,588
|
|
39,592
|
|
(1,554
|
)
|
2017
|
2018
|
|||||||||
Constellation
|
Las Vegas, NV
|
Multi-family
|
24,200
|
|
3,069
|
|
39,759
|
|
—
|
|
—
|
|
3,069
|
|
39,759
|
|
42,828
|
|
(1,815
|
)
|
|
2016
|
|||||||||
Downtown Summerlin (i) (j)
|
Las Vegas, NV
|
Retail/Office
|
261,748
|
|
30,855
|
|
364,100
|
|
—
|
|
38,175
|
|
30,855
|
|
402,275
|
|
433,130
|
|
(75,151
|
)
|
|
2014
|
|||||||||
Hockey Ground Lease (i)
|
Las Vegas, NV
|
Other
|
135
|
|
—
|
|
—
|
|
6,705
|
|
2,198
|
|
6,705
|
|
2,198
|
|
8,903
|
|
(128
|
)
|
|
2017
|
|||||||||
Las Vegas Ballpark (i)
|
Las Vegas, NV
|
Other
|
51,561
|
|
—
|
|
179
|
|
5,318
|
|
122,626
|
|
5,318
|
|
122,805
|
|
128,123
|
|
(5,100
|
)
|
|
2019
|
|||||||||
Two Summerlin (i)
|
Las Vegas, NV
|
Office
|
33,283
|
|
3,037
|
|
47,104
|
|
—
|
|
—
|
|
3,037
|
|
47,104
|
|
50,141
|
|
(1,599
|
)
|
2017
|
2018
|
|||||||||
Summerlin
|
Las Vegas, NV
|
MPC
|
20,284
|
|
990,179
|
|
—
|
|
(144,740
|
)
|
640
|
|
845,439
|
|
640
|
|
846,079
|
|
(256
|
)
|
|
2004
|
|||||||||
Tanager Apartments (i)
|
Las Vegas, NV
|
Multi-family
|
29,434
|
|
—
|
|
—
|
|
9,633
|
|
53,542
|
|
9,633
|
|
53,542
|
|
63,175
|
|
(632
|
)
|
2017
|
2019
|
|||||||||
The Woodlands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Creekside Park Apartments
|
The Woodlands, TX
|
Multi-family
|
37,730
|
|
729
|
|
40,116
|
|
—
|
|
—
|
|
729
|
|
40,116
|
|
40,845
|
|
(1,468
|
)
|
2017
|
2018
|
|||||||||
Creekside Park Apartments Phase II
|
The Woodlands, TX
|
Development
|
—
|
|
—
|
|
—
|
|
—
|
|
5,749
|
|
—
|
|
5,749
|
|
5,749
|
|
—
|
|
2019
|
|
|
|
|
|
Initial Cost (b)
|
Costs Capitalized Subsequent to Acquisition (c)
|
Gross Amounts at Which Carried at Close of Period (d)
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
Buildings
|
|
Buildings
|
|
Buildings
|
|
|
|
Date
|
||||||||||||||||||
(In thousands)
|
|
|
|
|
and
|
|
and
|
|
and
|
|
Accumulated
|
Date of
|
Acquired /
|
||||||||||||||||||
Name of Center
|
Location
|
Center Type
|
Encumbrances (a)
|
Land
|
Improvements
|
Land (e)
|
Improvements (e)(f)
|
Land
|
Improvements (f)
|
Total
|
Depreciation (g)
|
Construction
|
Completed
|
||||||||||||||||||
Ae‘o
|
Honolulu, HI
|
Condominium
|
—
|
|
9,795
|
|
85,046
|
|
(9,795
|
)
|
(83,884
|
)
|
—
|
|
1,162
|
|
1,162
|
|
(29
|
)
|
2016
|
2018
|
|||||||||
Anaha
|
Honolulu, HI
|
Condominium
|
—
|
|
5,546
|
|
47,450
|
|
(5,546
|
)
|
(46,353
|
)
|
—
|
|
1,097
|
|
1,097
|
|
(57
|
)
|
2014
|
2017
|
|||||||||
Ke Kilohana
|
Honolulu, HI
|
Condominium
|
—
|
|
2,615
|
|
17,784
|
|
(2,463
|
)
|
(4,942
|
)
|
152
|
|
12,842
|
|
12,994
|
|
(290
|
)
|
2016
|
2019
|
|||||||||
Kewalo Basin Harbor
|
Honolulu, HI
|
Other
|
11,111
|
|
—
|
|
—
|
|
—
|
|
23,721
|
|
—
|
|
23,721
|
|
23,721
|
|
(1,310
|
)
|
2017
|
2019
|
|||||||||
Kō'ula
|
Honolulu, HI
|
Development
|
—
|
|
—
|
|
—
|
|
—
|
|
47,483
|
|
—
|
|
47,483
|
|
47,483
|
|
(1,402
|
)
|
2019
|
|
|||||||||
Waiea
|
Honolulu, HI
|
Condominium
|
—
|
|
—
|
|
20,812
|
|
—
|
|
(16,898
|
)
|
—
|
|
3,914
|
|
3,914
|
|
(93
|
)
|
2014
|
2017
|
|||||||||
Ward Predevelopment
|
Honolulu, HI
|
Development
|
—
|
|
—
|
|
24,069
|
|
—
|
|
54,310
|
|
—
|
|
78,379
|
|
78,379
|
|
(1,779
|
)
|
2013
|
|
|||||||||
Ward Village Retail (h)
|
Honolulu, HI
|
Retail
|
245,436
|
|
164,007
|
|
89,321
|
|
(76,405
|
)
|
280,901
|
|
87,602
|
|
370,222
|
|
457,824
|
|
(83,280
|
)
|
|
2002
|
|||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Century Park
|
Houston, TX
|
Development
|
—
|
|
19,816
|
|
36,763
|
|
—
|
|
—
|
|
19,816
|
|
36,763
|
|
56,579
|
|
—
|
|
|
2019
|
|||||||||
Landmark Mall
|
Alexandria, VA
|
Development
|
—
|
|
28,396
|
|
67,235
|
|
(28,396
|
)
|
(10,344
|
)
|
—
|
|
56,891
|
|
56,891
|
|
(247
|
)
|
|
2004
|
|||||||||
Monarch City
|
Dallas, TX
|
Development
|
—
|
|
25,575
|
|
—
|
|
(25,575
|
)
|
28,609
|
|
—
|
|
28,609
|
|
28,609
|
|
—
|
|
|
2006
|
|||||||||
110 North Wacker
|
Chicago, IL
|
Development
|
184,300
|
|
—
|
|
29,035
|
|
—
|
|
334,492
|
|
—
|
|
363,527
|
|
363,527
|
|
—
|
|
2018
|
|
|||||||||
Outlet Collection at Riverwalk
|
New Orleans, LA
|
Retail
|
30,615
|
|
—
|
|
94,513
|
|
—
|
|
(578
|
)
|
—
|
|
93,935
|
|
93,935
|
|
(16,526
|
)
|
|
2014
|
|||||||||
The Elk Grove Collection
|
Elk Grove, CA
|
Development
|
—
|
|
—
|
|
—
|
|
—
|
|
10,771
|
|
—
|
|
10,771
|
|
10,771
|
|
—
|
|
|
2003
|
|||||||||
3,138,618
|
|
2,558,278
|
|
3,153,071
|
|
(549,581
|
)
|
2,059,364
|
|
2,008,697
|
|
5,212,435
|
|
7,221,132
|
|
(476,421
|
)
|
|
|
||||||||||||
Corporate
|
Various
|
|
1,000,000
|
|
885
|
|
1,027
|
|
(885
|
)
|
46,129
|
|
—
|
|
47,156
|
|
47,156
|
|
(31,512
|
)
|
|
|
|||||||||
Unamortized bond issuance costs
|
N/A
|
|
(5,249
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|||||||||
Deferred financing costs
|
N/A
|
|
(36,899
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|||||||||
|
|
Total
|
$
|
4,096,470
|
|
$
|
2,559,163
|
|
$
|
3,154,098
|
|
$
|
(550,466
|
)
|
$
|
2,105,493
|
|
$
|
2,008,697
|
|
$
|
5,259,591
|
|
$
|
7,268,288
|
|
$
|
(507,933
|
)
|
|
|
|
(a)
|
See description of Encumbrances in Note 7 - Mortgages, Notes and Loans Payable, Net of the Consolidated Financial Statements.
|
(b)
|
Initial cost for projects undergoing development or redevelopment is cost at end of first complete calendar year subsequent to opening.
|
(c)
|
For retail and other properties, costs capitalized subsequent to acquisitions is net of cost of disposals or other property write‑downs. For MPCs, costs capitalized subsequent to acquisitions are net of the cost of land sales.
|
(d)
|
The aggregate cost of land, building and improvements for federal income tax purposes is approximately $6.1 billion.
|
(e)
|
Reductions in Land reflect transfers to Buildings and Improvements for projects which the Company is internally developing.
|
(f)
|
Includes all amounts related to Developments.
|
(g)
|
Depreciation is computed based upon the useful lives in Note 1 - Summary of Significant Accounting Policies.
|
(h)
|
Property is collateral for the Senior Secured Credit Facility. See Note 7 - Mortgages, Notes and Loans Payable, Net of the Consolidated Financial Statements for additional information.
|
(i)
|
Encumbrances balance either represents or is inclusive of SIDs. See Note 7 - Mortgages, Notes and Loans Payable, Net of the Consolidated Financial Statements for additional information.
|
(j)
|
Downtown Summerlin includes the One Summerlin office property, which was placed in service in 2015.
|
(k)
|
Lands, buildings and improvements were derecognized and a Net investment in lease receivable was recorded during 2019. Refer to Note 1 - Summary of Significant Accounting Policies for additional information.
|
Reconciliation of Real Estate
|
||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
|
$
|
6,163,287
|
|
|
$
|
5,355,409
|
|
|
$
|
4,979,840
|
|
Change in land
|
|
239,558
|
|
|
199,069
|
|
|
93,833
|
|
|||
Additions
|
|
1,513,888
|
|
|
1,148,826
|
|
|
790,183
|
|
|||
Impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Dispositions and write-offs and land and condominium costs of sales
|
|
(648,445
|
)
|
|
(540,017
|
)
|
|
(508,447
|
)
|
|||
Balance at end of year
|
|
$
|
7,268,288
|
|
|
$
|
6,163,287
|
|
|
$
|
5,355,409
|
|
Entity
|
|
Jurisdiction
|
|
|
|
10 CCC, LLC
|
|
Delaware
|
|
|
|
10/20/30 CCC Parking Deck, LLC
|
|
Delaware
|
|
|
|
20 CCC, LLC
|
|
Delaware
|
|
|
|
30 CCC, LLC
|
|
Delaware
|
|
|
|
40 CCC, LLC
|
|
Delaware
|
|
|
|
40 CCC Parking Deck, LLC
|
|
Delaware
|
|
|
|
50 CCC, LLC
|
|
Delaware
|
|
|
|
50/60/70 CCC Parking Deck, LLC
|
|
Delaware
|
|
|
|
60 CCC, LLC
|
|
Delaware
|
|
|
|
3 Waterway Holdings, LLC
|
|
Texas
|
|
|
|
4 Waterway Holdings, LLC
|
|
Delaware
|
|
|
|
20 & 25 Waterway Holdings, LLC
|
|
Delaware
|
|
|
|
70 CC, LLC
|
|
Delaware
|
|
|
|
80 South, LLC
|
|
Delaware
|
|
|
|
85 South Street LLC
|
|
Delaware
|
|
|
|
110 Holding, LLC
|
|
Delaware
|
|
|
|
110 N. Wacker Development, LLC
|
|
Delaware
|
|
|
|
110 N. Wacker Managing Member, LLC
|
|
Delaware
|
|
|
|
110 North Wacker Titleholder LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
110 Wacker Property Sub, LLC
|
|
Delaware
|
|
|
|
110 Wacker, LLC
|
|
Delaware
|
|
|
|
117 Beekman Street Holdings, LLC
|
|
Delaware
|
|
|
|
170 John Street Holdings, LLC
|
|
Delaware
|
|
|
|
170 Retail Associates, Ltd.
|
|
Texas
|
|
|
|
170 Retail Holding, LLC
|
|
Delaware
|
|
|
|
170 Retail Holding, GP, LLC
|
|
Delaware
|
|
|
|
250 Seaport District, LLC
|
|
Delaware
|
|
|
|
988 Halekauwila, LLC
|
|
Delaware
|
|
|
|
1000 Auahi, LLC
|
|
Delaware
|
|
|
|
1001 Queen, LLC
|
|
Delaware
|
|
|
|
1060 Ala Moana, LLC
|
|
Delaware
|
|
|
|
1108 Auahi, LLC
|
|
Delaware
|
|
|
|
1118 Ala Moana, LLC
|
|
Delaware
|
|
|
|
1240 Ala Moana, LLC
|
|
Delaware
|
|
|
|
1360 Schermerhorn, LLC
|
|
Delaware
|
|
|
|
1701 Lake Robbins, LLC
|
|
Delaware
|
|
|
|
2000 WP Holdings, LLC
|
|
Delaware
|
|
|
|
2103 Research Forest Holding Company, LLC
|
|
Delaware
|
|
|
|
2201 LW Holdings, LLC
|
|
Delaware
|
|
|
|
3831 TF Holding Company, LLC
|
|
Delaware
|
|
|
|
8770 New Trails Holdings, LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
9303 New Trails Holdings, LLC
|
|
Delaware
|
|
|
|
Aalii, LLC
|
|
Delaware
|
|
|
|
ACB Parking Business Trust
|
|
Maryland
|
|
|
|
Ae O Holdings, LLC
|
|
Delaware
|
|
|
|
Ae O Retail Holdings, LLC
|
|
Delaware
|
|
|
|
Alameda Plaza, LLC
|
|
Delaware
|
|
|
|
AllenTowne Mall, LLC
|
|
Delaware
|
|
|
|
American City Building Business Trust
|
|
Maryland
|
|
|
|
Anaha Management Development Company, LLC
|
|
Delaware
|
|
|
|
Anaha Retail Holdings, LLC
|
|
Delaware
|
|
|
|
Angels Entertainment, LLC
|
|
Delaware
|
|
|
|
API/HHC Lake Robbins Holdings Company, LLC
|
|
Delaware
|
|
|
|
Beverage Operations, Inc.
|
|
Texas
|
|
|
|
BLLV Apartments Holding Company, LLC
|
|
Delaware
|
|
|
|
Bridgeland Construction, LLC
|
|
Delaware
|
|
|
|
Bridgeland Development, LP
|
|
Maryland
|
|
|
|
Bridgeland GP, LLC
|
|
Delaware
|
|
|
|
Bridgeland Holding Company, Inc.
|
|
Delaware
|
|
|
|
Bridgeland Management Development Company, LLC
|
|
Delaware
|
|
|
|
Bridges at Mint Hill, LLC
|
|
Delaware
|
|
|
|
Bridges at Mint Hill Member, LLC
|
|
Delaware
|
|
|
|
Clark County Las Vegas Stadium, LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
Clover Acquisitions LLC
|
|
Delaware
|
|
|
|
Cottonwood Mall, LLC
|
|
Delaware
|
|
|
|
Creekside Equities, LLC
|
|
Delaware
|
|
|
|
Creekside Park West Holdings, LLC
|
|
Delaware
|
|
|
|
Crescent Area 1-A Holdings, LLC
|
|
Delaware
|
|
|
|
Crescent Area 1-B Holdings, LLC
|
|
Delaware
|
|
|
|
Crescent Area 1 – Parking Deck 1, LLC
|
|
Delaware
|
|
|
|
CS Apartments Holding Company, LLC
|
|
Delaware
|
|
|
|
CS Apartments II Holding Company, LLC
|
|
Delaware
|
|
|
|
CSPV Holdings, LLC
|
|
Delaware
|
|
|
|
Cypress LA, LLC
|
|
Delaware
|
|
|
|
Discovery Property Company, LLC
|
|
Delaware
|
|
|
|
DLV/HHPI Summerlin, LLC
|
|
Delaware
|
|
|
|
DTS Office Holdings, LLC
|
|
Delaware
|
|
|
|
Elk Grove Management Development Company, LLC
|
|
Delaware
|
|
|
|
Elk Grove Town Center L.L.C.
|
|
Delaware
|
|
|
|
Elk Grove Town Center, L.P.
|
|
Delaware
|
|
|
|
Emerson Land Business Trust
|
|
Maryland
|
|
|
|
Emerson Land, LLC
|
|
Delaware
|
|
|
|
Fairwood Commercial Development Corporation
|
|
Maryland
|
|
|
|
Fairwood Commercial Development Holding, LP
|
|
Maryland
|
|
|
|
Fairwood Commercial Development Limited Partnership
|
|
Maryland
|
|
|
|
Entity
|
|
Jurisdiction
|
Fairwood Commercial Front Foot Benefit Company, LLC
|
|
Maryland
|
|
|
|
Fulton Seafood Market, LLC
|
|
Delaware
|
|
|
|
Gateway Overlook III Business Trust
|
|
Maryland
|
|
|
|
Grandview SHG LLC
|
|
California
|
|
|
|
GG DR, L.L.C.
|
|
Illinois
|
|
|
|
Greengate Mall, Inc.
|
|
Pennsylvania
|
|
|
|
Harper’s Choice Business Trust
|
|
Maryland
|
|
|
|
Hexalon Real Estate, LLC
|
|
Delaware
|
|
|
|
HF Holding Company, LLC
|
|
Delaware
|
|
|
|
HF Management Development Company, LLC
|
|
Delaware
|
|
|
|
HH Allison Tower Holding Company, LLC
|
|
Delaware
|
|
|
|
HH Hawaii Development Company, LLC
|
|
Delaware
|
|
|
|
HH Lake Robbins Holdings, LLC
|
|
Delaware
|
|
|
|
HH New York Development Company, LLC
|
|
Delaware
|
|
|
|
HH One Hughes Landing, LLC
|
|
Delaware
|
|
|
|
HH Two Hughes Landing, LLC
|
|
Texas
|
|
|
|
HH Wacker Acquisition Company, LLC
|
|
Delaware
|
|
|
|
HH Wacker Management Development Company, LLC
|
|
Delaware
|
|
|
|
HH Warehouse Land Holdings, LLC
|
|
Delaware
|
|
|
|
HH Waterway Land Holdings, LLC
|
|
Delaware
|
|
|
|
HH WHC Holdings, LLC
|
|
Delaware
|
|
|
|
HH Woodlands Tower Holdings, LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
HHC 242 Self-Storage, LLC
|
|
Delaware
|
|
|
|
HHC 2978 Self-Storage, LLC
|
|
Delaware
|
|
|
|
HHC 33 Peck Slip Holdings, LLC
|
|
Delaware
|
|
|
|
HHC 33 Peck Slip Member, LLC
|
|
Delaware
|
|
|
|
HHC 33 Peck Slip Resources, LLC
|
|
Delaware
|
|
|
|
HHC Acquisitions, LLC
|
|
Delaware
|
|
|
|
HHC Blockhouse, LLC
|
|
Delaware
|
|
|
|
HHC Bridgeview, LLC
|
|
Delaware
|
|
|
|
HHC Circle T Management Development Company, LLC
|
|
Delaware
|
|
|
|
HHC Cobblestones, LLC
|
|
Delaware
|
|
|
|
HHC Constellation Holdings, LLC
|
|
Delaware
|
|
|
|
HHC F Box Event Space, LLC
|
|
Delaware
|
|
|
|
HHC Fulton Club, LLC
|
|
Delaware
|
|
|
|
HHC Fulton Retail LLC
|
|
Delaware
|
|
|
|
HHC Hughes Landing Retail, LLC
|
|
Delaware
|
|
|
|
HHC Landmark Redevelopment Member, LLC
|
|
Delaware
|
|
|
|
HHC Millennium Six Pines, LLC
|
|
Delaware
|
|
|
|
HHC Pier Village, LLC
|
|
Delaware
|
|
|
|
HHC Riverdeck, LLC
|
|
Delaware
|
|
|
|
HHC Summerlin Office Holdings, LLC
|
|
Delaware
|
|
|
|
HHC Travel, LLC
|
|
Delaware
|
|
|
|
HHC Two Hughes Landing, LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
HHC Ventures, LLC
|
|
Delaware
|
|
|
|
HHC Village 13 Apartments, LLC
|
|
Delaware
|
|
|
|
HHC Warehouse Holding Company, LLC
|
|
Delaware
|
|
|
|
HHC-SRG Landmark Redevelopment JV, LLC
|
|
Delaware
|
|
|
|
HHC-SRG Landmark Redevelopment Property Sub, LLC
|
|
Delaware
|
|
|
|
HHMK Development, LLC
|
|
Delaware
|
|
|
|
HL Amenities Holdings, LLC
|
|
Delaware
|
|
|
|
HL Beverage Company, LLC
|
|
Delaware
|
|
|
|
HL Champion Holding Company, LLC
|
|
Delaware
|
|
|
|
HL Multi-Family Holdings, LLC
|
|
Delaware
|
|
|
|
HL Restaurant Row, LLC
|
|
Delaware
|
|
|
|
HL Retail Row, LLC
|
|
Delaware
|
|
|
|
HL-2LE Holding Company, LLC
|
|
Delaware
|
|
|
|
HL-Hotel Holding Company, LLC
|
|
Delaware
|
|
|
|
HLDC Holding Company, LLC
|
|
Delaware
|
|
|
|
Howard Hughes Hospitality, LLC
|
|
Delaware
|
|
|
|
Howard Hughes Management, Co. LLC
|
|
Delaware
|
|
|
|
Howard Hughes Management Services Company, LLC
|
|
Delaware
|
|
|
|
Howard Hughes Properties, Inc.
|
|
Nevada
|
|
|
|
HRD Development Management, LLC
|
|
Delaware
|
|
|
|
HRD Parking Deck Business Trust
|
|
Maryland
|
|
|
|
HRD Parking, Inc.
|
|
Maryland
|
|
|
|
Entity
|
|
Jurisdiction
|
Kai Investments, LLC
|
|
Delaware
|
|
|
|
Kapiolani Residential LLC
|
|
Delaware
|
|
|
|
Ke Kilohana Retail Holdings, LLC
|
|
Delaware
|
|
|
|
Kewalo Harbor Development Company, LLC
|
|
Delaware
|
|
|
|
Kewalo Harbor Management Company, LLC
|
|
Delaware
|
|
|
|
Kewalo Harbor, LLC
|
|
Hawaii
|
|
|
|
Kewalo Makai, LLC
|
|
Hawaii
|
|
|
|
Koula Management Development Company, LLC
|
|
Delaware
|
|
|
|
KR Holdings, LLC
|
|
Delaware
|
|
|
|
Lake Front North Holding Company, LLC
|
|
Delaware
|
|
|
|
Lake Woodlands Crossing Retail, LLC
|
|
Delaware
|
|
|
|
Lakeland Village Holding Company, LLC
|
|
Delaware
|
|
|
|
Land Trust No. 89433
|
|
Hawaii
|
|
|
|
Land Trust No. 89434
|
|
Hawaii
|
|
|
|
Land Trust No. FHB-TRES 20061
|
|
Hawaii
|
|
|
|
Land Trust No. FHB-TRES 20062
|
|
Hawaii
|
|
|
|
Landmark Mall L.L.C.
|
|
Delaware
|
|
|
|
Landmark Management Development Company, LLC
|
|
Delaware
|
|
|
|
LRVC Business Trust
|
|
Maryland
|
|
|
|
Marginal Street Development, LLC
|
|
Delaware
|
|
|
|
MD 3LRA, LLC
|
|
Delaware
|
|
|
|
MD Color Burst Park, LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
Merriweather Post Business Trust
|
|
Maryland
|
|
|
|
MF Seaport, LLC
|
|
Delaware
|
|
|
|
Millennium Woodlands Phase II, LLC
|
|
Delaware
|
|
|
|
Millennium Woodlands Phase II Member, LLC
|
|
Delaware
|
|
|
|
Monarch City Management Development Company, LLC
|
|
Delaware
|
|
|
|
MPIII Holding Company, LLC
|
|
Delaware
|
|
|
|
MWD 3G1, LLC
|
|
Delaware
|
|
|
|
MWD 3HA, LLC
|
|
Delaware
|
|
|
|
MWD 3MFB, LLC
|
|
Delaware
|
|
|
|
MWD 3MFC, LLC
|
|
Delaware
|
|
|
|
MWD 3OA, LLC
|
|
Delaware
|
|
|
|
MWD 3RE2, LLC
|
|
Delaware
|
|
|
|
Natick Residence LLC
|
|
Delaware
|
|
|
|
Oakland Ridge Industrial Development Corporation
|
|
Maryland
|
|
|
|
One Lakes Edge Holdings, LLC
|
|
Delaware
|
|
|
|
One Mall North, LLC
|
|
Delaware
|
|
|
|
Parcel C Business Trust
|
|
Maryland
|
|
|
|
Parcel C Development LLC
|
|
Delaware
|
|
|
|
Parcel C Property LLC
|
|
Delaware
|
|
|
|
Parcel D Business Trust
|
|
Maryland
|
|
|
|
Parcel D Development LLC
|
|
Delaware
|
|
|
|
Parcel D Property LLC
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
Pier 17 Bar, LLC
|
|
Delaware
|
|
|
|
Pier 17 GR Restaurant, LLC
|
|
Delaware
|
|
|
|
Pier 17 HHC Member, LLC
|
|
Delaware
|
|
|
|
Pier 17 Restaurant C101, LLC
|
|
Delaware
|
|
|
|
Pier 17 Restaurant, LLC
|
|
Delaware
|
|
|
|
Pier 17 Seafood Restaurant, LLC
|
|
Delaware
|
|
|
|
Price Development TRS, Inc.
|
|
Delaware
|
|
|
|
Princeton Land, LLC
|
|
Delaware
|
|
|
|
Princeton Management Development Company, LLC
|
|
Delaware
|
|
|
|
Red Rock Investment, LLC
|
|
Nevada
|
|
|
|
RFD Acquisitions, LLC
|
|
Delaware
|
|
|
|
Riverwalk Marketplace (New Orleans), LLC
|
|
Delaware
|
|
|
|
Riverwalk Operating Company, LLC
|
|
Delaware
|
|
|
|
Robinson Kunia Land, LLC
|
|
Delaware
|
|
|
|
Seaport Development Holdings, LLC
|
|
Delaware
|
|
|
|
Seaport Hospitality, LLC
|
|
Delaware
|
|
|
|
Seaport Management Development Company, LLC
|
|
Delaware
|
|
|
|
Seaport Marketing Services, LLC
|
|
Texas
|
|
|
|
Seaport Marketplace Theatre, LLC
|
|
Maryland
|
|
|
|
Seaport Marketplace, LLC
|
|
Maryland
|
|
|
|
Seaport Phase 1 Holdings, LLC
|
|
Delaware
|
|
|
|
South Street Seaport Limited Partnership
|
|
Maryland
|
|
|
|
Entity
|
|
Jurisdiction
|
SSSLP Pier 17 Restaurant C101, LLC
|
|
Delaware
|
|
|
|
Sterrett Building Holdings, LLC
|
|
Delaware
|
|
|
|
Stewart Title of Montgomery County Inc.
|
|
Texas
|
|
|
|
Stone Lake, LLC
|
|
Maryland
|
|
|
|
Summerlin Baseball Club Member, LLC
|
|
Delaware
|
|
|
|
Summerlin Centre, LLC
|
|
Delaware
|
|
|
|
Summerlin Centre Apartments, LLC
|
|
Delaware
|
|
|
|
Summerlin Corporation
|
|
Delaware
|
|
|
|
Summerlin Development, LLC
|
|
Delaware
|
|
|
|
Summerlin Development Management Company, LLC
|
|
Delaware
|
|
|
|
Summerlin Hospital Medical Center, L.P.
|
|
Delaware
|
|
|
|
Summerlin Las Vegas Baseball Club, LLC
|
|
Delaware
|
|
|
|
Summerlin North GP, LLC
|
|
Delaware
|
|
|
|
Summerlin Operating Company, LLC
|
|
Delaware
|
|
|
|
Summerlin Restaurant, LLC
|
|
Delaware
|
|
|
|
Summerlin South GP, LLC
|
|
Delaware
|
|
|
|
The Howard Hughes Company, LLC
|
|
Delaware
|
|
|
|
The Howard Hughes Corporation Japan, GK
|
|
Japan
|
|
|
|
The Howard Research And Development Corporation
|
|
Maryland
|
|
|
|
The Hughes Corporation
|
|
Delaware
|
|
|
|
The Shops At Summerlin North, LP
|
|
Delaware
|
|
|
|
The Shops at Summerlin South, LP
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
The Woodlands Beverage, Inc.
|
|
Texas
|
|
|
|
The Woodlands Commercial Properties Company, LP
|
|
Texas
|
|
|
|
The Woodlands Corporation
|
|
Delaware
|
|
|
|
The Woodlands Custom Residential Sales, LLC
|
|
Texas
|
|
|
|
The Woodlands Custom Sales, LP
|
|
Texas
|
|
|
|
The Woodlands GL Holdings, LLC
|
|
Delaware
|
|
|
|
The Woodlands Holding Company, Inc.
|
|
Delaware
|
|
|
|
The Woodlands Hotel Management Company, LLC
|
|
Delaware
|
|
|
|
The Woodlands Land Development Company, L.P.
|
|
Texas
|
|
|
|
The Woodlands Management Development Company, LLC
|
|
Delaware
|
|
|
|
The Woodlands Marketing Services, LLC
|
|
Texas
|
|
|
|
The Woodlands MDA, LLC
|
|
Delaware
|
|
|
|
The Woodlands Operating Company, L.P.
|
|
Texas
|
|
|
|
Three Hughes Landing, LLC
|
|
Delaware
|
|
|
|
Town Center Development Company GP, L.L.C.
|
|
Texas
|
|
|
|
Town Center Development Company, L.P.
|
|
Texas
|
|
|
|
Town Center East Business Trust
|
|
Maryland
|
|
|
|
Town Center East Parking Lot Business Trust
|
|
Maryland
|
|
|
|
TWC Commercial Properties, LLC
|
|
Delaware
|
|
|
|
TWC Commercial Properties LP
|
|
Delaware
|
|
|
|
TWC Land Development, LLC
|
|
Delaware
|
|
|
|
TWC Land Development LP
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
TWC Operating, LLC
|
|
Delaware
|
|
|
|
TWC Operating LP
|
|
Delaware
|
|
|
|
TWCPC Holdings GP, L.L.C.
|
|
Texas
|
|
|
|
TWCPC Holdings, L.P.
|
|
Texas
|
|
|
|
TWL-Bridgeland Holding Company, LLC
|
|
Delaware
|
|
|
|
TWLDC Holdings GP, L.L.C.
|
|
Texas
|
|
|
|
TWLDC Holdings, L.P.
|
|
Texas
|
|
|
|
Victoria Place, LLC
|
|
Delaware
|
|
|
|
Victoria Ward, Limited
|
|
Delaware
|
|
|
|
Victoria Ward Center L.L.C.
|
|
Delaware
|
|
|
|
Victoria Ward Entertainment Center L.L.C.
|
|
Delaware
|
|
|
|
Victoria Ward Services, Inc.
|
|
Delaware
|
|
|
|
VW Condominium Development, LLC
|
|
Delaware
|
|
|
|
Waiea Management Development Company, LLC
|
|
Delaware
|
|
|
|
Waiea Retail Holdings, LLC
|
|
Delaware
|
|
|
|
Ward Condominium Holdings, LLC
|
|
Delaware
|
|
|
|
Ward Gateway-Industrial-Village, LLC
|
|
Delaware
|
|
|
|
Ward Plaza-Warehouse, LLC
|
|
Delaware
|
|
|
|
Ward Management Development Company, LLC
|
|
Delaware
|
|
|
|
Ward Village CK Holdings, LLC
|
|
Delaware
|
|
|
|
Ward Village Commercial, LLC
|
|
Delaware
|
|
|
|
Ward Village Holding Company
|
|
Delaware
|
|
|
|
Entity
|
|
Jurisdiction
|
Ward Village Operating Company, LLC
|
|
Delaware
|
|
|
|
Ward Village Properties, LLC
|
|
Delaware
|
|
|
|
Waterway Ave Partners, L.L.C.
|
|
Texas
|
|
|
|
Waterway Coffee Holdings, LLC
|
|
Delaware
|
|
|
|
Waterway Condo Holdings, LLC
|
|
Delaware
|
|
|
|
Waterway Hotel Beverage Company, LLC
|
|
Delaware
|
|
|
|
Waterway Hotel Holdings, LLC
|
|
Delaware
|
|
|
|
WECCR General Partnership
|
|
Texas
|
|
|
|
WECCR, Inc.
|
|
Texas
|
|
|
|
Westlake Retail Associates, Ltd.
|
|
Texas
|
|
|
|
Westlake Retail Holding, LLC
|
|
Delaware
|
|
|
|
Wincopin Restaurant Business Trust
|
|
Maryland
|
|
|
|
Woodlands Acquisition, LLC
|
|
Texas
|
|
|
|
Woodlands Office Equities-95, LLC
|
|
Texas
|
|
|
|
Woodlands Sarofim #1, Ltd.
|
|
Texas
|
|
|
|
WRCC Holdings, LLC
|
|
Delaware
|
|
(1)
|
Registration Statement (Form S-3 No. 333- 184466) of The Howard Hughes Corporation;
|
|
(2)
|
Registration Statements (Form S-8 No. 333-170431, Form S-8 No. 333-170432, Form S-8 No. 333-171909, and Form S-8 No. 333-171910) pertaining to the 2010 Amended and Restated Incentive Plan of The Howard Hughes Corporation;
|
|
|
|
/s/ William Ackman
|
|
/s/ Allen Model
|
William Ackman
|
|
Allen Model
|
|
|
|
/s/ Adam Flatto
|
|
/s/ R. Scot Sellers
|
Adam Flatto
|
|
R. Scot Sellers
|
|
|
|
/s/ Jeffrey Furber
|
|
/s/ Steven Shepsman
|
Jeffrey Furber
|
|
Steven Shepsman
|
|
|
|
/s/ Beth Kaplan
|
|
/s/ Mary Ann Tighe
|
Beth Kaplan
|
|
Mary Ann Tighe
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of The Howard Hughes Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
By:
|
/s/ Paul H. Layne
|
|
|
Paul H. Layne
|
|
|
Chief Executive Officer (principal executive officer)
|
|
|
February 27, 2020
|
1.
|
I have reviewed this Annual Report on Form 10-K of The Howard Hughes Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
By:
|
/s/ David R. O’Reilly
|
|
|
David R. O’Reilly
|
|
|
Chief Financial Officer
|
|
|
February 27, 2020
|
7
|
|
|
|
|
By:
|
/s/ Paul H. Layne
|
|
|
|
Paul H. Layne
|
|
|
|
Chief Executive Officer (principal executive officer)
|
|
|
|
February 27, 2020
|
|
|
|
|
|
|
By:
|
/s/ David R. O’Reilly
|
|
|
|
David R. O’Reilly
|
|
|
|
Chief Financial Officer
|
|
|
|
February 27, 2020
|