Author Topic: HHC - Howard Hughes Corp  (Read 41628 times)

txlaw

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #10 on: April 08, 2011, 01:52:11 PM »
Reading Ackman's letter, I can't help but think about how his insights apply to JOE as well.

The difficulty is that the real estate assets owned by HHC are notoriously difficult to value.  First, you should consider that their long-term value - the value that can be achieved by a long-term owner - is, in my opinion, materially higher than their liquidation value.

. .  .

For our MPC assets, one can make assumptions about the timing and number of future lot sales and then discount back these cash flows over the 30-or-so-year life of the project at a discount rate you deem appropriate. The problem with such an approach is that small changes in assumptions on discount rates, lot pricing and selling velocity, inflation, etc. can have an enormous impact on fair value.

For our development assets, one needs to make assumptions about what will be built, when it will it be built, to whom it will be leased, what rents it will achieve, what expenses it will incur, and what multiple an investor will place on these cash flows. Again, even highly sophisticated real estate investors will assign substantially divergent values to the same assets when using their own assumptions.

. . .

In light of the complexity of our asset base and the inadequacy of GAAP accounting to track our progress, you should now understand how important it is to get the right management team in place with the right incentives.


I'm guessing Bruce Berkowitz would wholeheartedly agree with almost all of what's in Ackman's letter.


Junto

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #11 on: April 09, 2011, 05:23:35 AM »
It is hard to discuss HHC without reading the informed analysis by @ToddSullivan; http://Www.valueplays.net


rogermunibond

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #13 on: April 14, 2011, 10:43:32 AM »
Junto are you shilling for Todd Sullivan.  'Cause it's hard to read the informed analysis of Todd Sullivan behind the paywall.

ShahKhezri

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #14 on: May 03, 2011, 12:54:38 PM »
Looking to see what kind of pop Tilson gives it today:

http://www.valueinvestingcongress.com/images/VIC_P11_Agenda.pdf

Just a hunch he's probably going to talk about HHC.

accutronman

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #15 on: May 09, 2011, 12:38:14 PM »
Tilson's presentation on HHC (as well as his short thesis on JOE) is located here: http://www.marketfolly.com/2011/05/whitney-tilsons-presentation-on-st-joe.html

The exciting part about HHC is the potential worth of the Hawaii property (Ward Center) as well as the Ala Moana air rights:

Ward Centers is comprised of approximately 60 acres situated along Ala Moana Beach Park and is within one mile of Waikiki and downtown Honolulu. Ward Centers currently is a 550,000-square-foot shopping district containing six specialty centers and over 135 unique shops, a variety of restaurants and an entertainment center, which includes a 16-screen movie theater. In January 2009, the Hawaii Community Development Authority approved a 15-year master plan, which entitles a mixed-use development encompassing up to 9.3 million square feet, including up to 7.6 million square feet of residential (4,300 units), five million square feet of retail and four million square feet of office, commercial and other uses.


The Howard Hughes Corporation also owns the rights to develop a residential condominium tower over a parking structure at Ala Moana Center, one of the most visited and profitable shopping centers in the world. Ideally located between downtown Honolulu and the world-famous Waikiki Beach, Ala Moana hosts more than 42 million visitors each year. The parking structure is designed to accommodate the construction of a condominium tower and is located adjacent to Nordstrom.

Have held HHC since the spin-off...definitely a winner!

accutronman

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #16 on: May 10, 2011, 01:36:19 PM »
The Howard Hughes Corporation Reports First Quarter 2011 Results

First quarter 2011 net income was $11.5 million, excluding the $126.0 million non-cash charge relating to an increase in estimated value of the Company’s warrants, compared to net loss of $(20.5) million for the same period in the prior year. First quarter 2011 net loss was $(114.5) million inclusive of the non-cash warrant expense.
Master Planned Community land sales, including our share of the sales at The Woodlands joint venture, were $34.3 million for first quarter 2011, compared to $15.1 million for first quarter 2010.
Net operating income for our Operating Assets was $13.5 million for first quarter 2011, compared to $10.6 million for first quarter 2010.

stahleyp

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #17 on: May 10, 2011, 02:20:11 PM »
it looks like HHC has some warrants. Anyone know anything about them? I've done some digging but haven't found much.
Paul

claphands22

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #18 on: May 12, 2011, 10:36:12 AM »
it looks like HHC has some warrants. Anyone know anything about them? I've done some digging but haven't found much.

I think those were only given to insiders...interactive brokers doesn't offer the warrants.

Liberty

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Re: HHC - Howard Hughes Corp - new spinoff from ggp
« Reply #19 on: December 26, 2011, 03:56:22 PM »
This looks like an interesting one. I've starting looking at it, but very early stages. I'm mostly looking to learn, far from investing at this point.

No updates in a while; anyone still holding it?
« Last Edit: December 26, 2011, 04:05:26 PM by Liberty »
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