Howard Hughes (HHC) reported earlier and the results were good, very good.
Third Quarter Highlights
· Third quarter 2014 net income increased 39.6%, or $4.4 million to $15.5 million, excluding the $24.7 million non-cash warrant gain and $5.5 million non-cash increase in the tax indemnity receivable, compared to third quarter 2013 net income of $11.1 million, excluding the $(4.5) million non-cash warrant loss and $0.7 million non-cash increase in the tax indemnity receivable.
· Master Planned Community (“MPCâ€) land sales increased 4.2% to $57.2 million for the third quarter 2014 compared to $54.9 million for the third quarter 2013 due primarily to increased lot sales volume and higher prices at our Woodlands and Bridgeland MPCs.
· Net operating income (“NOIâ€) for our income-producing Operating Assets increased 33.3% to $18.4 million for the third quarter 2014, compared to $13.8 million for the third quarter 2013. The increase is primarily related to the Outlet Collection at Riverwalk, which was re-opened in May 2014, and the One Hughes Landing and 3 Waterway Square office buildings which were placed into service in 2013 and reached stabilization in 2014. South Street Seaport NOI has been excluded from income-producing Operating Assets NOI because it is substantially shut down and under redevelopment.
· We opened Downtown Summerlin, our 1.6 million square foot mixed-use development in the heart of the Summerlin MPC, on October 9, 2014. Over 250,000 people visited the property during its four-day grand opening celebration and a majority of our tenants reported better than anticipated sales in their stores.
· We completed construction and placed into service Two Hughes Landing, the second office building in Hughes Landing which is 84.8% leased as of November 1, 2014.
· We began construction of Three Hughes Landing, a 324,000 square foot Class A office building in Hughes Landing, which is expected to open during the fourth quarter of 2015.
· We began construction of The Embassy Suites by Hilton in Hughes Landing, a nine-story, 205-room upscale, full-service hotel that will be managed by us. The hotel is expected to be completed by the end of 2015.
· Our Millennium Woodlands Phase II joint venture completed construction of, and placed into service, a 314-unit Class A multi-family property in The Woodlands Town Center.
· We announced the development of Lakeland Village Center, an 84,200 square foot mixed-use commercial project at our Bridgeland MPC. CVS Pharmacy has entered into a ground lease and will construct a 15,300 square foot store on the site to anchor the project, which will consist of ground-level retail, restaurant, and professional office space organized within nine buildings all totaling approximately 68,900 square feet. We expect to begin construction in the first quarter of 2015 with completion expected in early 2016.
· On August 6, 2014, we closed a $69.3 million non-recourse construction financing for The Westin, The Woodlands bearing interest at one-month LIBOR plus 2.65% with an August 2019 final maturity date.
· On October 2, 2014, we closed a $37.1 million non-recourse construction financing for the Embassy Suites by Hilton in Hughes Landing. The loan bears interest at one-month LIBOR plus 2.50% with an October 2020 final maturity date.
· On November 6, 2014, we closed a $600.0 million non-recourse construction financing for the Waiea and Anaha condominium towers at WardVillage bearing interest at one-month LIBOR plus 6.75% with a December 2019 final maturity date
