Author Topic: HHC - Howard Hughes Corp  (Read 39941 times)

hyten1

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HHC - Howard Hughes Corp
« on: November 10, 2010, 06:59:57 AM »
what do people think of hhc?
« Last Edit: August 31, 2017, 02:43:45 PM by Parsad »


Myth465

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #1 on: November 10, 2010, 07:00:53 AM »
What do you think?

hyten1

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #2 on: November 10, 2010, 07:28:00 AM »
complicated situation, still looking at it, just a note, blackstone etc purchase 5.2mil share of hhc at $47 and change as part of the reorg investment plan


rogermunibond

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #3 on: November 10, 2010, 08:42:11 AM »
Hyten - is that $37?  Why would Blackstone buy at $10 over the trading price?

maxprogram

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #4 on: November 10, 2010, 09:45:49 AM »
It's hard to peg any kind of precise value to any of HHC's assets, but I think there is certainly a lot of potential upside, and not much downside.

It's trading at an Enterprise Value of about $1.8 billion right now. Their Master Planned Communities (the biggest of which is Summerlin) have a net interest of ~13,500 acres, which I think could be worth at least $1 billion ($74k an acre, with about 7 or 8 lots per acre in Summerlin). They just sold some unfinished lots to other homebuilders for over $500k an acre.

Some other "premier" properties are the South Street Seaport, Victoria Ward Centers, and Landmark Mall. The South St. Seaport in NYC is on the books for $2.9mm, probably worth 100x or more that amount. The Ward Centers in Honolulu are on the books for $320mm, probably worth at least 2x that if not up to $1bb. The rest of their properties have a book value of $400mm, but many need to be developed and could be worth more. The company is relatively unlevered and they have the opportunity to either sell properties to a developer or take on some new debt and have someone develop some of the good properties. (For example, one of the smaller properties, Cottonwood Mall, is a mile away from my office and is 11 acres of empty land in a prime location. Before the crash, it was slated to be a $500mm mixed use development.)

So, hard to put a value on but some good potential especially with Ackman and connections to Brookfield. Now that they are out of bankruptcy they can start the ball rolling on realizing some value in these properties.
Twitter: @maxolson @explorists

hyten1

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #5 on: November 10, 2010, 10:29:40 AM »
rogermunibond you read it correct its $47 and change

Bronco

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #6 on: November 15, 2010, 08:58:28 AM »
This stock is up nicely today.  Any reasons?


vn35

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #7 on: November 20, 2010, 08:48:40 AM »
The current valuation of HHC holdings  are presented already (in the CS Boston paper).  I think the downside is probably limited but a good upside is there.   I will take a nibble on this.

momentumgeek

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Re: HHC - howard hughes corp - new spinoff from ggp
« Reply #8 on: November 30, 2010, 01:09:41 PM »
Which CS paper? The GGP initiation from 9/13/2010 or is there another more complete one?

rogermunibond

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #9 on: April 06, 2011, 05:26:17 PM »
HHC has been fantastic.  Massively underpriced at the spinoff.  Anyone have an inkling of the IV now?