Document
false0001498828 0001498828 2020-11-05 2020-11-05


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): November 5, 2020
 
 
THE HOWARD HUGHES CORPORATION
(Exact name of registrant as specified in its charter)
  
Delaware
 
001-34856
 
36-4673192
 (State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
 (I.R.S. Employer
Identification No.)
 
9950 Woodloch Forest Drive, Suite 1100
The Woodlands, Texas  77381
(Address of principal executive offices)
 
Registrant’s telephone number, including area code:  (214) 741-7744
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class:
 
Trading Symbol(s)
 
Name of each exchange on which registered:
Common stock $0.01 par value per share
 
HHC
 
New York Stock Exchange
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company






If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02                                           Results of Operations and Financial Condition.
 
On November 5, 2020, The Howard Hughes Corporation (the “Company”) issued a press release announcing the Company’s financial results for the third quarter ended September 30, 2020. A copy of this press release is attached hereto as Exhibit 99.1.
 
The information contained in this Current Report on Form 8-K pursuant to this “Item 2.02 Results of Operations and Financial Condition” is being furnished. This information shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section or shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, unless specifically identified therein as being incorporated by reference.
 
Item 7.01                                           Regulation FD Disclosure.
 
On November 5, 2020, the Company issued supplemental information for the third quarter ended September 30, 2020. The supplemental information contains key information about the Company. The supplemental information is attached hereto as Exhibit 99.2 and has been posted on our website at www.howardhughes.com under the “Investors” tab.
 
The information contained in this Current Report on Form 8-K pursuant to this “Item 7.01 Regulation FD Disclosure” is being furnished.  This information shall not be deemed to be filed for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section or shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, unless specifically identified therein as being incorporated by reference.
 
Item 9.01                                           Financial Statements and Exhibits.
 
(d)                                 Exhibits
 
Exhibit No.
 
Description
 
 
 
99.1
 
 
 
 
99.2
 





SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
THE HOWARD HUGHES CORPORATION
 
 
 
 
 
 
 
 
 
 
By:
/s/ Peter F. Riley
 
 
 
Peter F. Riley
 
 
 
Senior Executive Vice President, Secretary and
General Counsel
 
Date:  November 5, 2020



Exhibit


Exhibit 99.1
    
PRESS RELEASE
Contact Information:    
David R. O’Reilly
Interim Chief Executive Officer, President and Chief Financial Officer
(214) 741-7744    
David.O’Reilly@howardhughes.com

The Howard Hughes Corporation® Reports Third Quarter 2020 Results
Robust new home sales growth throughout MPCs, positive momentum and strong collections among Operating Assets, and a successful $750 million bond offering highlight a strong third quarter

The Woodlands, TX, November 5, 2020The Howard Hughes Corporation® (NYSE: HHC) (the “Company,” “HHC” or “we”) announced today operating results for the third quarter ended September 30, 2020. The financial statements, exhibits and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information at Exhibit 99.2 provide further detail of these results.

“While the impact of COVID-19 affected all of our business segments in the first half of the year, we saw notable performance improvements and significant sales momentum during the third quarter,” said David O’Reilly, Interim Chief Executive Officer; President and Chief Financial Officer.

“While third quarter land sales were lower compared to the third quarter of 2019 as a result of timing related to superpad sales in Summerlin, we did experience positive growth in new home sales throughout our regions. Growth in new home sales, a leading indicator for future land sales, continued to expand in our master planned communities (MPCs) as The Woodlands Hills, Bridgeland and Summerlin all saw greater new home sales compared to the third quarter of 2019 with increases of 185%, 32% and 27%, respectively. We believe that this continued new home sales growth is a result of buyers relocating outside of densely populated cities, seeking walkable communities in natural settings with expansive open green space and sought-after urban amenities. If this trend continues, it will offer us further development opportunities in addition to land sales.

“Our retail collections improved to 66% during the third quarter. In addition, occupancy rates remained above 90% for the majority of our stabilized retail assets as a result of our year-to-date retail leasing activity where we have executed 45 new leases for 148,000 square feet and have executed lease renewals for 50 existing tenants representing 143,000 square feet. Notably, our hotels generated positive NOI during the quarter as occupancy levels continue to rise since the second quarter, with guests ranging from weekend vacationers and business travelers to Major League Baseball teams. Further, our office and multi-family properties maintained strong collections at 97.3% and 98.5%, respectively. Even in the midst of the pandemic, our new multi-family developments are leasing up ahead of projections, due to their high-quality amenities and superior locations within our MPCs.

“We completed construction on our 77% leased, Class-AAA office tower, 110 North Wacker, in September. In connection with the deconsolidation of this asset upon completion of construction, we reported a gain of $267.5 million which reflects our proportionate share of this investment’s fair market value. While this gain will not be reflected in our cash balance until the building’s ultimate sale, we believe this amount accurately reflects the inherent value created through the development of this project and the value that will ultimately be realized by HHC shareholders.

“Condo sales in Ward Village continued to progress throughout the quarter with 24 homes sold, almost exclusively through a digital homebuyer experience. Our future revenue associated with all of our contracted units is $1.5 billion which is a testament to the community we have built in Hawai’i. The latest tower in pre-development, Victoria Place, is now 71% pre-sold and our other two towers under construction, ‘A‘ali‘i and Kô‘ula, sold 5 and 6 units during the quarter and are well sold at 85% and 77%, respectively.

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“At the Seaport, we were able to reopen many of the restaurants on a limited basis during the quarter. We also resumed construction on the Tin Building for the Jean-Georges Food Hall and launched our new concept The Greens on Pier 17’s rooftop, where guests can reserve their own socially distanced, mini-lawn space overlooking the Brooklyn Bridge and Lower Manhattan waterfront. The Greens was sold out each day this summer and had a 20-thousand-person waitlist which reinforces our view that the Seaport’s location and outdoor space is incredibly valuable. This activation was key to retaining the majority of our sponsorship income that would have been lost due to the postponement of the summer concert series.

“During the quarter, we executed on a $750 million bond offering and used the proceeds, along with cash on hand, to pay down $808 million of asset-level debt. The bond offering increased our book value of unencumbered assets by over $1 billion, further diversified our funding sources, and extended our overall maturity profile.

“We continue to make progress on our Transformation Plan. Our corporate-overhead cost reduction initiatives are substantially complete, and we continue to pursue the sale of our non-core assets, committed to achieving the maximum value for these dispositions and having the luxury of patience given our current liquidity position. We have resumed modest investment in pre-development work as our regional leaders continue to seek out the best opportunities across multiple asset types to deploy capital at outsized risk-adjusted returns.

“While we continue to feel the impacts of COVID-19, it is encouraging to see the strength in new home sales in our MPCs, the momentum in condo sales at Ward Village, and the improvements within our Operating Assets and the Seaport. We believe our high-quality assets and strategically located master planned communities put The Howard Hughes Corporation in an excellent position to thrive in a post-COVID environment.”

Third Quarter 2020 Highlights
Net income attributable to common stockholders increased to income of $139.7 million, or $2.51 per diluted share, for the three months ended September 30, 2020, compared to income of $29.8 million, or $0.69 per diluted share, for the three months ended September 30, 2019, primarily due to the $267.5 million gain on the deconsolidation of 110 North Wacker, partially offset by lower land sales revenues due to superpad sales in Summerlin in 2019 that did not recur in 2020, decreased revenues from declines in occupancy at our recently reopened hospitality properties and cancellation of the Las Vegas Aviators 2020 baseball season as a result of the COVID-19 pandemic, and a decrease resulting from a $24.2 million gain on the sale of the Cottonwood Mall during the three months ended September 30, 2019.
We continue to maintain a strong liquidity position with $857.4 million cash as of September 30, 2020.
On August 18, 2020, the Company issued $750 million in 5.375% senior notes due August 2028. These senior notes will be unsecured senior obligations of the Company and will be guaranteed by certain subsidiaries of the Company. The Company used the net proceeds from this issuance, together with cash on hand, for the repayment of existing indebtedness of approximately $807.9 million.
For the three months ended September 30, 2020, we collected 97.3% of our office portfolio billings, 98.5% of our multi-family portfolio billings and 96.2% of our other portfolio billings. As several of our tenants have resumed operations with phased reopenings, collections of our retail portfolio billings have increased from 49.7% for the three months ended June 2020 to 65.7% for three months ended September 30, 2020.
MPC segment earnings before tax (“EBT”) decreased by $25.5 million to $36.6 million for the three months ended September 30, 2020, compared to the three months ended September 30, 2019, primarily due to lower land sales revenues primarily driven by reductions in acres sold at Summerlin due to the timing of superpad sales and lower earnings at The Summit. Bridgeland price per acre increased 8.3% with acres sold remaining consistent with results in the third quarter of 2019. The Woodlands Hills’ price per acre increased 9.6% coupled with a 103.6% increase in acres sold due to a higher volume and change in product type of lots sold in the third quarter of 2020, compared to the same period in 2019.
Total Net operating income (“NOI”)(1) from the Operating Assets segment, including our share of NOI from equity investments, decreased by 30.7% to $38.2 million for the three months ended September 30, 2020, compared to $55.2 million for the prior year period. The decrease in NOI was primarily due to rent deferrals and collection reserves related to our retail properties, declines in occupancy at our recently reopened hospitality properties and cancellation of the Las Vegas Aviators 2020 baseball season, all as a result of the COVID-19 pandemic.
Progressed public pre-sales of our newest project at Ward Village®, Victoria Place®, where as of September 30, 2020, we have executed contracts for 249 condominium units, or 71.3% of total units. Across all of Ward Village®, potential future revenue associated with total contracted units is $1.50 billion.
Seaport District NOI decreased $3.2 million to a loss of $6.1 million for the three months ended September 30, 2020, compared to the prior year period, primarily due to business closures and cancellation of events related to

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the COVID-19 pandemic. Multiple changes were made at the Seaport as a result of COVID-19 including expanded outdoor seating at our restaurants, updates to the Tin Building’s e-commerce strategy to include grocery and restaurant delivery and the launch of The Greens, which replaced the canceled summer concert series.

We are primarily focused on creating shareholder value by increasing our per share net asset value. Often, the nature of our business results in short-term volatility in our net income due to the timing of MPC land sales, recognition of condominium revenue and operating business pre-opening expenses, and, as such, we believe the following metrics summarized below are most useful in tracking our progress towards net asset value creation.

 
Nine Months Ended September 30, 2020
 
Three Months Ended September 30,
$ in thousands
2020
 
2019
 
Change
% Change
 
2020
 
2019
 
Change
% Change
Operating Assets NOI
 (1) 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
$
86,098

 
$
61,918

 
$
24,180

39.1
 %
 
$
23,857

 
$
22,996

 
$
861

4
 %
Retail
30,021

 
47,188

 
(17,167
)
(36.4
)%
 
6,932

 
15,683

 
(8,751
)
(56
)%
Multi-family
12,286

 
14,503

 
(2,217
)
(15.3
)%
 
3,924

 
5,317

 
(1,393
)
(26
)%
Hospitality
3,163

 
23,419

 
(20,256
)
(86.5
)%
 
626

 
7,231

 
(6,605
)
(91
)%
Other
1,257

 
11,153

 
(9,896
)
(88.7
)%
 
583

 
1,896

 
(1,313
)
(69
)%
Company's share NOI (a)
10,112

 
8,820

 
1,292

14.6
 %
 
2,315

 
2,043

 
272

13
 %
Total Operating Assets NOI (b)
$
142,937

 
$
167,001

 
$
(24,064
)
(14.4
)%
 
$
38,237

 
$
55,166

 
$
(16,929
)
(31
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected stabilized NOI Operating Assets ($ in millions)
$
362.3

 
$
323.1

 
$
39.2

12.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MPC
 
 
 
 
 
 
 
 
 
 
 
 
 
Acres Sold - Residential
218

 
337

 
(119
)
(35.4
)%
 
70

 
147

 
(77
)
(53
)%
Acres Sold - Commercial
17

 

 
17

 %
 
1

 

 
1

100%

Price Per Acre - Residential
$
541

 
$
543

 
$
(2
)
(0.3
)%
 
$
445

 
$
574

 
$
(129
)
(22
)%
Price Per Acre - Commercial
$
131

 
$

 
$
131

 %
 
$

 
$

 
$

100%

MPC EBT
$
122,929

 
$
149,868

 
$
(26,939
)
(18.0
)%
 
$
36,621

 
$
62,109

 
$
(25,488
)
(41
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Seaport District NOI
(1) 
 
 
 
 
 
 
 
 
 
 
 
 
 
Historic District & Pier 17 - Landlord
$
(5,494
)
 
$
(5,156
)
 
$
(338
)
(6.6
)%
 
$
(2,022
)
 
$
(2,150
)
 
$
128

6
 %
Multi-family
260

 
303

 
(43
)
(14.2
)%
 
46

 
112

 
(66
)
(59
)%
Hospitality
(12
)
 
41

 
(53
)
(129
)%
 

 

 

100
 %
Historic District & Pier 17 - Managed Businesses
(4,993
)
 
(4,420
)
 
(573
)
(13.0
)%
 
(1,657
)
 
(879
)
 
(778
)
(89
)%
Events, Sponsorships & Catering Business
(3,190
)
 
(536
)
 
(2,654
)
(495.1
)%
 
(2,466
)
 
25

 
(2,491
)
9,964
 %
Company's share NOI (a)
(787
)
 
(385
)
 
(402
)
(104.4
)%
 
(106
)
 
(148
)
 
42

28
 %
Total Seaport District NOI
$
(14,216
)
 
$
(10,153
)
 
$
(4,063
)
40.0
 %
 
$
(6,205
)
 
$
(3,040
)
 
$
(3,165
)
104
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Strategic Developments
 
 
 
 
 
 
 
 
 
 
 
 
 
Condominium units contracted to sell (c)
27

 
82

 
(55
)
(67.1
)%
 
11

 
55

 
(44
)
(80
)%
(a)
Includes Company’s share of NOI from non-consolidated assets
(b)
Excludes properties sold or in redevelopment
(c)
Includes units at our buildings that are open or under construction as of September 30, 2020. Excludes two purchaser defaults at Kō'ula in the second quarter of 2020.

Financial Data
(1)
See the accompanying appendix for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measure provides useful information for investors.


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About The Howard Hughes Corporation® 

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Its award-winning assets include the country’s preeminent portfolio of master planned communities, as well as operating properties and development opportunities including: the Seaport District in New York; Columbia, Maryland; The Woodlands®, The Woodlands Hills®, and Bridgeland® in the Greater Houston, Texas area; Summerlin®, Las Vegas; and Ward Village® in Honolulu, Hawai‘i. The Howard Hughes Corporation’s portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative place making, the Company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. The Howard Hughes Corporation is traded on the New York Stock Exchange as HHC. For additional information visit www.howardhughes.com.

The Howard Hughes Corporation has partnered with Say, the fintech startup reimagining shareholder communications, to allow investors to submit and upvote questions they would like to see addressed on the Company’s third quarter earnings call. Say verifies all shareholder positions and provides permission to participate on the November 6, 2020 call, during which the Company’s leadership will be answering top questions. Utilizing the Say platform, The Howard Hughes Corporation elevates its capabilities for responding to Company shareholders, making its investor relations Q&A more transparent and engaging.

The Howard Hughes Corporation will host its investor conference call on Friday, November 6, 2020, at 9:00 a.m Central Standard Time (10:00 a.m. Eastern Standard Time) to discuss third quarter 2020 results. To participate, please dial 1-877-883-0383 within the U.S., 1-877-885-0477 within Canada, or 1-412-902-6506 when dialing internationally. All participants should dial in at least five minutes prior to the scheduled start time, using 0985696 as the passcode. In addition to dial-in options, institutional and retail shareholders can participate by going to app.saytechnologies.com/howardhughes. Shareholders can email hello@saytechnologies.com for any support inquiries.

Safe Harbor Statement

We may make forward-looking statements in this press release and in other reports and presentations that we file or furnish with the Securities and Exchange Commission (the “SEC”). In addition, our management may make forward-looking statements orally to analysts, investors, creditors, the media and others. Forward-looking statements include:

projected impact of COVID-19, including the recent surge of COVID-19 cases in regions where we operate, on our business
expected impact of numerous governmental restrictions and other orders instituted in response to the COVID-19 pandemic on our business
announcement of certain changes, which we refer to as 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 MPC assets
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
capital required for our operations and development opportunities for the properties in our Operating Assets, Seaport District and Strategic Developments segments
expected commencement and completion for property developments and timing of sales or rentals of certain properties
expected performance of each business segment
forecasts of economic performance
future liquidity, finance opportunities, development opportunities, development spending and management plans

These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements to materially differ from any future results, performance and achievements expressed or implied by such forward-looking statements. These risk factors are described in our Annual Report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained on our Investor relations website at www.investor.howardhughes.com. Any factor could, by itself, or together with one or more other factors, adversely affect our business, results of operations, plans, objectives, future performance or financial condition. There may be other factors currently unknown to us that we have not described in our Annual Report or other SEC filings that could cause results to differ from our expectations. These forward-looking statements present our estimates and assumptions as of the date of this press release. Except as may be required by law, we undertake no obligation to modify or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release.

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Our Financial Presentation

As discussed throughout this release, we use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. We continually evaluate the usefulness, relevance, limitations and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. A non-GAAP financial measure used throughout this release is Net operating income (“NOI”). We provide a more detailed discussion about this non-GAAP measure in our reconciliation of non-GAAP measures provided in the appendix in this earnings release.
 

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THE HOWARD HUGHES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
 
Nine Months Ended September 30,
 
Three Months Ended September 30,
thousands, except per share amounts
2020
 
2019
 
2020
 
2019
REVENUES
 
 
 
 
 
 
 
Condominium rights and unit sales
$
185

 
$
443,931

 
$
142

 
$
9,999

Master Planned Communities land sales
136,053

 
177,001

 
39,248

 
77,368

Rental revenue
241,522

 
206,168

 
70,072

 
70,344

Other land, rental and property revenues
82,092

 
165,054

 
35,748

 
63,801

Builder price participation
25,936

 
24,224

 
9,230

 
9,660

Total revenues
485,788

 
1,016,378

 
154,440

 
231,172

 
 
 
 
 
 
 
 
EXPENSES
 
 
 
 
 
 
 
Condominium rights and unit cost of sales
105,336

 
365,324

 
1,087

 
7,010

Master Planned Communities cost of sales
58,560

 
78,128

 
15,899

 
33,304

Operating costs
168,763

 
221,529

 
58,272

 
81,222

Rental property real estate taxes
44,225

 
28,585

 
15,448

 
9,080

Provision for (recovery of) doubtful accounts
4,954

 
(195
)
 
1,387

 
(107
)
Demolition costs

 
737

 

 
138

Development-related marketing costs
6,541

 
16,874

 
1,912

 
5,341

General and administrative
84,755

 
92,322

 
23,441

 
33,990

Depreciation and amortization
160,995

 
115,142

 
52,395

 
40,093

Total expenses
634,129

 
918,446

 
169,841

 
210,071

 
 
 
 
 
 
 
 
OTHER
 
 
 
 
 
 
 
Provision for impairment
(48,738
)
 

 

 

Gain (loss) on sale or disposal of real estate and other assets, net
46,232

 
24,051

 
108

 
24,201

Other (loss) income, net
(793
)
 
11,798

 
1,284

 
1,337

Total other
(3,299
)
 
35,849

 
1,392

 
25,538

 
 
 
 
 
 
 
 
Operating income (loss)
(151,640
)
 
133,781

 
(14,009
)
 
46,639

 
 
 
 
 
 
 
 
Selling profit from sales-type leases

 
13,537

 

 
13,537

Interest income
1,908

 
7,696

 
358

 
2,872

Interest expense
(98,717
)
 
(76,358
)
 
(31,872
)
 
(28,829
)
Gain (loss) on extinguishment of debt
(13,166
)
 

 
(13,166
)
 

Equity in earnings (losses) from real estate and other affiliates
269,635

 
20,847

 
266,838

 
4,542

Income (loss) before taxes
8,020

 
99,503

 
208,149

 
38,761

Provision (benefit) for income taxes
3,203

 
24,207

 
44,147

 
8,718

Net income (loss)
4,817

 
75,296

 
164,002

 
30,043

Net (income) loss attributable to noncontrolling interests
(24,325
)
 
(240
)
 
(24,292
)
 
(285
)
Net income (loss) attributable to common stockholders
$
(19,508
)
 
$
75,056

 
$
139,710

 
$
29,758

 
 
 
 
 
 
 
 
Basic income (loss) per share
$
(0.38
)
 
$
1.74

 
$
2.52

 
$
0.69

Diluted income (loss) per share
$
(0.38
)
 
$
1.73

 
$
2.51

 
$
0.69


6



THE HOWARD HUGHES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
 
September 30,
 
December 31,
thousands except par values and share amounts
2020
 
2019
ASSETS
 
 
 
Investment in real estate:
 
 
 
Master Planned Communities assets
$
1,693,478

 
$
1,655,674

Buildings and equipment
4,069,640

 
3,813,595

Less: accumulated depreciation
(600,211
)
 
(507,933
)
Land
361,418

 
353,022

Developments
1,110,101

 
1,445,997

Net property and equipment
6,634,426

 
6,760,355

Investment in real estate and other affiliates
389,882

 
121,757

Net investment in real estate
7,024,308

 
6,882,112

Net investment in lease receivable
2,928

 
79,166

Cash and cash equivalents
857,390

 
422,857

Restricted cash
233,111

 
197,278

Accounts receivable, net
10,087

 
12,279

Municipal Utility District receivables, net
331,451

 
280,742

Notes receivable, net
52,136

 
36,379

Deferred expenses, net
112,503

 
133,182

Operating lease right-of-use assets, net
57,087

 
69,398

Prepaid expenses and other assets, net
360,244

 
300,373

Total assets
$
9,041,245

 
$
8,413,766

 
 
 
 
LIABILITIES
 
 
 
Mortgages, notes and loans payable, net
$
4,219,334

 
$
4,096,470

Operating lease obligations
69,246

 
70,413

Deferred tax liabilities
178,433

 
180,748

Accounts payable and accrued expenses
830,209

 
733,147

Total liabilities
5,297,222

 
5,080,778

 
 
 
 
Redeemable noncontrolling interest
30,361

 

 
 
 
 
EQUITY
 
 
 
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued

 

Common stock: $.01 par value; 150,000,000 shares authorized, 55,974,883 issued and 54,921,748 outstanding as of September 30, 2020, and 150,000,000 shares authorized, 43,635,893 shares issued and 42,585,633 outstanding as of December 31, 2019
561

 
437

Additional paid-in capital
3,942,173

 
3,343,983

Accumulated deficit
(65,910
)
 
(46,385
)
Accumulated other comprehensive loss
(42,831
)
 
(29,372
)
Treasury stock, at cost, 1,053,135 shares as of September 30, 2020, and 1,050,260 shares as of December 31, 2019
(120,706
)
 
(120,530
)
Total stockholders' equity
3,713,287

 
3,148,133

Noncontrolling interests
375

 
184,855

Total equity
3,713,662

 
3,332,988

Total liabilities and equity
$
9,041,245

 
$
8,413,766



7



Appendix - Reconciliation of Non-GAAP Measures

For the Nine and Three Months Ended September 30, 2020 and 2019

Below are GAAP to non-GAAP reconciliations of certain financial measures, as required under Regulation G of the Securities Exchange Act of 1934. Non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

As a result of our four segments, Operating Assets, Master Planned Communities (“MPC”), Seaport District and Strategic Developments, being managed separately, we use different operating measures to assess operating results and allocate resources among these four segments. The one common operating measure used to assess operating results for our business segments is earnings before tax (“EBT”). EBT, as it relates to each business segment, represents the revenues less expenses of each segment, including interest income, interest expense and equity in earnings of real estate and other affiliates. EBT excludes corporate expenses and other items that are not allocable to the segments. We present EBT because we use this measure, among others, internally to assess the core operating performance of our assets. However, segment EBT should not be considered as an alternative to GAAP net income.
 
Nine Months Ended
September 30,
 
Three Months Ended
September 30,
thousands
2020
 
2019
 
$ Change
 
2020
 
2019
 
$ Change
Operating Assets Segment EBT
 
 
 
 
 
 
 
 
 
 
 
Total revenues (a)
$
280,201

 
$
305,395

 
$
(25,194
)
 
$
81,667

 
$
104,223

 
$
(22,556
)
Total operating expenses (b)
(142,052
)
 
(139,589
)
 
(2,463
)
 
(47,590
)
 
(47,950
)
 
360

Segment operating income (loss)
138,149

 
165,806

 
(27,657
)
 
34,077

 
56,273

 
(22,196
)
Depreciation and amortization
(115,479
)
 
(84,890
)
 
(30,589
)
 
(41,395
)
 
(28,844
)
 
(12,551
)
Interest expense, net
(70,341
)
 
(60,695
)
 
(9,646
)
 
(21,045
)
 
(21,645
)
 
600

Other income (loss), net
150

 
1,186

 
(1,036
)
 
(17
)
 
63

 
(80
)
Equity in earnings (losses) from real estate and other affiliates
5,831

 
3,195

 
2,636

 
962

 
441

 
521

Gain (loss) on sale or disposal of real estate
38,232

 

 
38,232

 
108

 

 
108

Gain (loss) on extinguishment of debt
(1,521
)
 

 
(1,521
)
 
(1,521
)
 

 
(1,521
)
Selling profit from sales-type leases

 
13,537

 
(13,537
)
 

 
13,537

 
(13,537
)
Provision for impairment
(48,738
)
 

 
(48,738
)
 

 

 

Segment EBT
(53,717
)
 
38,139

 
(91,856
)
 
(28,831
)
 
19,825

 
(48,656
)
 
 
 
 
 
 
 
 
 
 
 
 
MPC Segment EBT
 
 
 
 
 
 
 
 
 
 
 
Total revenues
171,517

 
216,042

 
(44,525
)
 
52,158

 
92,287

 
(40,129
)
Total operating expenses
(78,751
)
 
(109,676
)
 
30,925

 
(23,059
)
 
(43,697
)
 
20,638

Segment operating income (loss)
92,766

 
106,366

 
(13,600
)
 
29,099

 
48,590

 
(19,491
)
Depreciation and amortization
(273
)
 
(334
)
 
61

 
(91
)
 
(88
)
 
(3
)
Interest income, net
26,033

 
24,376

 
1,657

 
9,176

 
8,550

 
626

Other income (loss), net

 
601

 
(601
)
 

 
534

 
(534
)
Equity in earnings (losses) from real estate and other affiliates
4,403

 
18,859

 
(14,456
)
 
(1,563
)
 
4,523

 
(6,086
)
Segment EBT
122,929

 
149,868

 
(26,939
)
 
36,621

 
62,109

 
(25,488
)
 
 
 
 
 
 
 
 
 
 
 
 
Seaport District Segment EBT
 
 
 
 
 
 
 
 
 
 
 
Total revenues
16,170

 
43,051

 
(26,881
)
 
4,204

 
23,130

 
(18,926
)
Total operating expenses
(34,297
)
 
(59,735
)
 
25,438

 
(11,522
)
 
(27,330
)
 
15,808

Segment operating income (loss)
(18,127
)
 
(16,684
)
 
(1,443
)
 
(7,318
)
 
(4,200
)
 
(3,118
)
Depreciation and amortization
(34,825
)
 
(19,713
)
 
(15,112
)
 
(7,174
)
 
(6,767
)
 
(407
)
Interest expense, net
(12,490
)
 
(8,440
)
 
(4,050
)
 
(2,811
)
 
(4,984
)
 
2,173

Other income (loss), net
(2,187
)
 
(147
)
 
(2,040
)
 
1,590

 

 
1,590

Equity in earnings (losses) from real estate and other affiliates
(8,964
)
 
(1,788
)
 
(7,176
)
 
(288
)
 
(705
)
 
417

Gain (loss) on sale or disposal of real estate

 
(6
)
 
6

 

 

 

Gain (loss) on extinguishment of debt
(11,645
)
 

 
(11,645
)
 
(11,645
)
 

 
(11,645
)
Segment EBT
(88,238
)
 
(46,778
)
 
(41,460
)
 
(27,646
)
 
(16,656
)
 
(10,990
)

8



 
Nine Months Ended
September 30,
 
Three Months Ended
September 30,
thousands
2020
 
2019
 
$ Change
 
2020
 
2019
 
$ Change
Strategic Developments Segment EBT
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
17,749

 
$
451,873

 
$
(434,124
)
 
$
16,365

 
$
11,515

 
$
4,850

Total operating expenses
(126,738
)
 
(382,341
)
 
255,603

 
(9,922
)
 
(11,327
)
 
1,405

Segment operating (loss) income
(108,989
)
 
69,532

 
(178,521
)
 
6,443

 
188

 
6,255

Depreciation and amortization
(5,054
)
 
(4,386
)
 
(668
)
 
(1,643
)
 
(2,070
)
 
427

Interest income, net
4,909

 
9,499

 
(4,590
)
 
1,921

 
3,002

 
(1,081
)
Other income (loss), net
1,427

 
664

 
763

 
134

 
354

 
(220
)
Equity in earnings (losses) from real estate and other affiliates
268,365

 
581

 
267,784

 
267,727

 
283

 
267,444

Gain (loss) on sale or disposal of real estate, net
8,000

 
24,057

 
(16,057
)
 

 
24,201

 
(24,201
)
Segment EBT
168,658

 
99,947

 
68,711

 
274,582

 
25,958

 
248,624

 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Segment EBT
 
 
 
 
 
 
 
 
 
 
 
Total revenues
485,637

 
1,016,361

 
(530,724
)
 
154,394

 
231,155

 
(76,761
)
Total operating expenses
(381,838
)
 
(691,341
)
 
309,503

 
(92,093
)
 
(130,304
)
 
38,211

Segment operating income (loss)
103,799

 
325,020

 
(221,221
)
 
62,301

 
100,851

 
(38,550
)
Depreciation and amortization
(155,631
)
 
(109,323
)
 
(46,308
)
 
(50,303
)
 
(37,769
)
 
(12,534
)
Interest expense, net
(51,889
)
 
(35,260
)
 
(16,629
)
 
(12,759
)
 
(15,077
)
 
2,318

Other (loss) income, net
(610
)
 
2,304

 
(2,914
)
 
1,707

 
951

 
756

Equity in earnings (losses) from real estate and other affiliates
269,635

 
20,847

 
248,788

 
266,838

 
4,542

 
262,296

Gain (loss) on sale or disposal of real estate, net
46,232

 
24,051

 
22,181

 
108

 
24,201

 
(24,093
)
Gain (loss) on extinguishment of debt
(13,166
)
 

 
(13,166
)
 
(13,166
)
 

 
(13,166
)
Selling profit from sales-type leases

 
13,537

 
(13,537
)
 

 
13,537

 
(13,537
)
Provision for impairment
(48,738
)
 

 
(48,738
)
 

 

 

Consolidated segment EBT
149,632

 
241,176

 
(91,544
)
 
254,726

 
91,236

 
163,490

 
 
 
 
 
 
 
 
 
 
 
 
Corporate income, expenses and other items
(144,815
)
 
(165,880
)
 
21,065

 
(90,724
)
 
(61,193
)
 
(29,531
)
Net income (loss)
4,817

 
75,296

 
(70,479
)
 
164,002

 
30,043

 
133,959

Net (income) loss attributable to noncontrolling interests
(24,325
)
 
(240
)
 
(24,085
)
 
(24,292
)
 
(285
)
 
(24,007
)
Net income (loss) attributable to common stockholders
$
(19,508
)
 
$
75,056

 
$
(94,564
)
 
$
139,710

 
$
29,758

 
$
109,952

(a)
Total revenues includes hospitality revenues of $27.9 million for the nine months ended September 30, 2020, $68.5 million for the nine months ended September 30, 2019, $8.1 million for the three months ended September 30, 2020, and $20.0 million for the three months ended September 30, 2019.
(b)
Total operating expenses includes hospitality operating costs of $24.8 million for the nine months ended September 30, 2020, $46.3 million for the nine months ended September 30, 2019, $7.6 million for the three months ended September 30, 2020 and $14.1 million for the three months ended September 30, 2019.


NOI

We believe that NOI is a useful supplemental measure of the performance of our Operating Assets and Seaport District portfolio because it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating real estate properties and the impact on operations from trends in rental and occupancy rates and operating costs. We define NOI as operating revenues (rental income, tenant recoveries and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing and other property expenses, including our share of NOI from equity investees). NOI excludes straight-line rents and amortization of tenant incentives, net; interest expense, net; ground rent amortization; demolition costs; other (loss) income; amortization; depreciation; development-related marketing cost; gain on sale or disposal of real estate and other assets, net; provision for impairment and equity in earnings from real estate and other affiliates. All management fees have been eliminated for all internally-managed properties. We use NOI to evaluate our operating performance

9



on a property-by-property basis because NOI allows us to evaluate the impact that property-specific factors such as lease structure, lease rates and tenant base have on our operating results, gross margins and investment returns. Variances between years in NOI typically result from changes in rental rates, occupancy, tenant mix and operating expenses. Although we believe that NOI provides useful information to investors about the performance of our Operating Assets and Seaport District assets, due to the exclusions noted above, NOI should only be used as an additional measure of the financial performance of the assets of this segment of our business and not as an alternative to GAAP Net income (loss). For reference, and as an aid in understanding our computation of NOI, a reconciliation of segment EBT to NOI for Operating Assets and Seaport District has been presented in the tables below.

 
Nine Months Ended September 30,
 
Three Months Ended September 30,
 
(Unaudited)
 
(Unaudited)
thousands
2020
 
2019
 
2020
 
2019
Total Operating Assets segment EBT (a)
$
(53,717
)
 
$
38,139

 
$
(28,831
)
 
$
19,825

 
 
 
 
 
 
 
 
Add back:
 
 
 
 
 
 
 
Depreciation and amortization
115,479

 
84,890

 
41,395

 
28,844

Interest expense, net
70,341

 
60,695

 
21,045

 
21,645

Equity in (earnings) losses from real estate and other affiliates
(5,831
)
 
(3,195
)
 
(962
)
 
(441
)
(Gain) loss on sale or disposal of real estate and other assets, net
(38,232
)
 

 
(108
)
 

(Gain) loss on extinguishment of debt
1,521

 

 
1,521

 

Selling profit from sales-type leases

 
(13,537
)
 

 
(13,537
)
Provision for impairment
48,738

 

 

 

Impact of straight-line rent
(4,585
)
 
(7,911
)
 
1,766

 
(2,529
)
Other
123

 
259

 
69

 
477

Total Operating Assets NOI - Consolidated
133,837

 
159,340

 
35,895

 
54,284

 
 
 
 
 
 
 
 
Redevelopments
 
 
 
 
 
 
 
110 North Wacker

 
4

 
(11
)
 
2

Total Operating Asset Redevelopments NOI

 
4

 
(11
)
 
2

 
 
 
 
 
 
 
 
Dispositions
 
 
 
 
 
 
 
100 Fellowship Drive
(1,012
)
 
(1,163
)
 
38

 
(1,163
)
Total Operating Asset Dispositions NOI
(1,012
)
 
(1,163
)
 
38

 
(1,163
)
 
 
 
 
 
 
 
 
Consolidated Operating Assets NOI excluding properties sold or in redevelopment
132,825

 
158,181

 
35,922

 
53,123

 
 
 
 
 
 
 
 
Company's Share NOI - Equity Investees
6,388

 
5,195

 
2,315

 
2,043

Distributions from Summerlin Hospital Investment
3,724

 
3,625

 

 

Total Operating Assets NOI
$
142,937

 
$
167,001

 
$
38,237

 
$
55,166

(a)
Segment EBT excludes corporate expenses and other items that are not allocable to the segments.



10



 
 
Nine Months Ended September 30,
 
Three Months Ended September 30,
 
 
(Unaudited)
 
(Unaudited)
thousands
 
2020
 
2019
 
2020
 
2019
Total Seaport District segment EBT (a)
 
$
(88,238
)
 
$
(46,778
)
 
$
(27,646
)
 
$
(16,656
)
 
 
 
 
 
 
 
 
 
Add back:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
34,825

 
19,713

 
7,174

 
6,767

Interest expense, net
 
12,490

 
8,440

 
2,811

 
4,984

Equity in (earnings) losses from real estate and other affiliates
 
8,964

 
1,788

 
288

 
705

(Gain) loss on sale or disposal of real estate
 

 
6

 

 

(Gain) loss on extinguishment of debt
 
11,645

 

 
11,645

 

Impact of straight-line rent
 
2,360

 
1,658

 
1,027

 
412

Other (income) loss, net (b)
 
4,525

 
5,405

 
(1,398
)
 
896

Total Seaport District NOI - Consolidated
 
(13,429
)
 
(9,768
)
 
(6,099
)
 
(2,892
)
 
 
 
 
 
 
 
 
 
Company's Share NOI - Equity Investees
 
(787
)
 
(385
)
 
(106
)
 
(148
)
 
 
 
 
 
 
 
 
 
Total Seaport District NOI
 
$
(14,216
)
 
$
(10,153
)
 
$
(6,205
)
 
$
(3,040
)
(a)
Segment EBT excludes corporate expenses and other items that are not allocable to the segments.
(b)
Includes miscellaneous development-related items as well as the loss related to the write-off of inventory due to the permanent closure of 10 Corso Como Retail and Café in the first quarter of 2020, and income related to inventory liquidation sales in the third quarter of 2020.



11
hhcsupplemental3q20
Exhibit 99.2 Seaport District HughesThe Woodlands Landing Towers at the Waterway 6100 Merriweather New York, NY Houston,The Woodlands, TX TX Columbia, MD Supplemental Information Three months ended September 30, 2020 NYSE: HHC The Howard Hughes Corporation, 9950 Woodloch Forest Drive, Suite 1100, The Woodlands, TX 77380 HowardHughes.com 214.741.7744


 
Cautionary Statements Cautionary Statements Forward-Looking Statements This presentation includes forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to current or historical facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “forecast,” “plan,” “intend,” "believe," “likely,” “may,” “realize,” “should,” “transform,” “would” and other statements of similar expression. Forward-looking statements give our expectations about the future and are not guarantees. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements to materially differ from any future results, performance and achievements expressed or implied by such forward-looking statements. We caution you not to rely on these forward-looking statements. For a discussion of the risk factors that could have an impact on these forward-looking statements, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission ("SEC") on February 27, 2020 as amended and supplemented by any risk factors contained in our quarterly reports on Form 10-Q, which have been subsequently filed with the SEC. The statements made herein speak only as of the date of this presentation, and we do not undertake to update this information except as required by law. Past performance does not guarantee future results. Performance during time periods shown is limited and may not reflect the performance for the full year or future years, or in different economic and market cycles. Non-GAAP Financial Measures Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP); however, we use certain non-GAAP performance measures in this presentation, in addition to GAAP measures, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. Management continually evaluates the usefulness, relevance, limitations and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. The non-GAAP financial measures used in this presentation are funds from operations ("FFO"), core funds from operations ("Core FFO"), adjusted funds from operations ("AFFO") and net operating income ("NOI"). FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income calculated in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization and impairment charges (which we believe are not indicative of the performance of our operating portfolio). We calculate FFO in accordance with NAREIT’s definition. Since FFO excludes depreciation and amortization, gains and losses from depreciable property dispositions, and impairments, it can provide a performance measure that, when compared year over year, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition, development activities and financing costs. This provides a perspective of our financial performance not immediately apparent from net income determined in accordance with GAAP. Core FFO is calculated by adjusting FFO to exclude the impact of certain non-cash and/or nonrecurring income and expense items, as set forth in the calculation herein. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of the ongoing operating performance of the core operations across all segments, and we believe it is used by investors in a similar manner. Finally, AFFO adjusts our Core FFO operating measure to deduct cash expended on recurring tenant improvements and capital expenditures of a routine nature to present an adjusted measure of Core FFO. Core FFO and AFFO are non-GAAP and non-standardized measures and may be calculated differently by other peer companies. We define NOI as operating revenues (rental income, tenant recoveries and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing and other property expenses,), plus our share of NOI from equity investees. NOI excludes straight-line rents and amortization of tenant incentives, net interest expense, ground rent amortization, demolition costs, amortization, depreciation, development-related marketing costs, gain on sale or disposal of real estate and other assets, net, provision for impairment, and Equity in earnings from real estate and other affiliates. We use NOI to evaluate our operating performance on a property-by- property basis because NOI allows us to evaluate the impact that factors which vary by property, such as lease structure, lease rates and tenant bases, have on our operating results, gross margins and investment returns. We believe that NOI is a useful supplemental measure of the performance of our Operating Assets and Seaport District segments because it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating real estate properties and the impact on operations from trends in rental and occupancy rates and operating costs. While FFO, Core FFO, AFFO and NOI are relevant and widely used measures of operating performance of real estate companies, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO, Core FFO, AFFO and NOI do not purport to be indicative of cash available to fund our future cash requirements. Further, our computations of FFO, Core FFO, AFFO and NOI may not be comparable to FFO, Core FFO, AFFO and NOI reported by other real estate companies. We have included in this presentation a reconciliation from GAAP net income to FFO, Core FFO and AFFO, as well as reconciliations of our GAAP Operating Assets segment Earnings Before Taxes ("EBT") to NOI and Seaport District segment EBT to NOI. Non-GAAP financial measures should not be considered independently, or as a substitute, for financial information presented in accordance with GAAP. Additional Information Our website address is www.howardhughes.com. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other publicly filed or furnished documents are available and may be accessed free of charge through the “Investors” section of our website under the "SEC Filings" subsection, as soon as reasonably practicable after those documents are filed with, or furnished to, the SEC. Also available through the Investors section of our website are beneficial ownership reports filed by our directors, officers and certain shareholders on Forms 3, 4 and 5. HowardHughes.com 214.741.7744 2


 
Table of Contents Table of Contents FINANCIAL OVERVIEW OPERATING PORTFOLIO PERFORMANCE OTHER PORTFOLIO METRICS Company Profile 4 NOI by Region 11 MPC Portfolio 18 Financial Summary 6 Stabilized Properties 13 Portfolio Key Metrics 19 Balance Sheets 8 Unstabilized Properties 15 Lease Expirations 20 Statements of Operations 9 Under Construction Projects 16 Acquisitions / Dispositions 21 Income Reconciliations 10 Seaport District Operating Performance 17 Master Planned Community Land 22 Ward Village Condominiums 23 Other/Non-core Assets 24 Debt Summary 25 Property-Level Debt 26 Ground Leases 28 Restructuring Expenses 29 Definitions 30 Reconciliations of Non-GAAP Measures 31 HowardHughes.com 214.741.7744 3


 
Company Profile - Summary & Results Company Profile - Summary & Results Company Overview - Q3 2020 Recent Company Highlights THE WOODLANDS, September 21, 2020 (PRNewswire) -- The Howard Hughes Exchange / Ticker NYSE: HHC Corporation (HHC) announced that David O'Reilly, President and Chief Financial Officer, has been named interim Chief Executive Officer. Paul Layne has retired as Chief Executive Officer, effective September 17, 2020. Mr. Layne will also step Share Price - September 30, 2020 $ 57.60 down from the Company's Board of Directors. Diluted Earnings / Share $ 2.51 THE WOODLANDS, August 18, 2020 (PRNewswire) -- HHC announced the closing of an offering of $750 million in aggregate principal amount of 5.375% senior notes FFO / Diluted Share $ (0.15) due 2028 (Notes) in an unregistered offering (Offering) through a private placement. The Notes are guaranteed by certain subsidiaries of the Company. The Company intends to use the net proceeds from the Offering, together with cash on hand, for Core FFO / Diluted Share $ 1.07 general corporate purposes, including the repayment of certain existing indebtedness. AFFO / Diluted Share $ 0.94 Operating Portfolio by Region Q3 2020 MPC & Condominium Results $ in millions Woodlands/ Woodlands Hills 6% ‘A‘ali‘i 46% Summerlin 53% 3Q20 3Q20 MPC Condo EBT sales $36.6M 11 units Bridgeland 41% Kō'ula 54% Q3 2020 MPC EBT Q3 2020 Condo Units Contracted (a) Bridgeland $ 14.9 Waiea — Columbia (0.3) Anaha — Summerlin 19.9 ‘A‘ali‘i 5 Woodlands/Woodlands Hills 2.1 Kō'ula 6 Total $ 36.6 Total 11 (a) Excludes Victoria Place as construction has not yet commenced. HowardHughes.com 214.741.7744 4


 
Company Profile - Summary & Results (cont'd) Company Profile - Summary & Results (con't) Q3 2020 Path to Projected Annual Stabilized NOI Under Construction Unstabilized Stabilized Total $ in millions $ in millions $ in millions $ in millions Retail Other Other Retail 3% Hotel 6% Hotel 6% 19% Multi- 9% family 11% 35% Projected Projected Projected Projected Stabilized Stabilized Stabilized Office Stabilized Office NOI 46% Retail 47% NOI NOI 21% NOI $10.1M $74.5M Retail $277.7M $362.3M 27% Multi- Office family 62% Multi- Multi-family 81% family 17% 10% Retail & Office S.F. 47,750 Retail & Office S.F. 2,751,957 Retail & Office S.F. 7,808,671 Retail & Office S.F. 10,608,378 Multi-family Units 523 Multi-family Units 1,347 Multi-family Units 2,330 Multi-family Units 4,200 Hotel Keys — Hotel Keys — Hotel Keys 909 Hotel Keys 909 Other Units — / — Other Units — / — Other Units 135,801 / 1,356 Other Units 135,801 / 1,356 Projected Stabilized NOI $ 10.1 Projected Stabilized NOI (a) $ 74.5 Projected Stabilized NOI $ 277.7 Projected Stabilized NOI $ 362.3 Q3 2020 Operating Results by Property Type Under Construction Unstabilized Stabilized Total (a) $ in millions $ in millions $ in millions $ in millions Other Other 3% 3% Hotel Hotel Office 3Q20 2% 2% Office 62% Under 3Q20 3Q20 64% 3Q20 Construction Unstabilized Stabilized Total NOI NOI Office Retail NOI Retail NOI 100% 17% $40.0M 17% $0.0M -$1.8M $38.2M Multi- Multi-family family 16% 14% Path to Projected Annual Stabilized NOI charts exclude Seaport NOI, units, and square footage until we have greater clarity with respect to the performance of our tenants. See page 17 for Seaport project information. See page 30 for definitions of "Under Construction," "Unstabilized," "Stabilized" and "Net Operating Income (NOI)." (a) As a result of COVID-19, our Hospitality assets were temporarily shut down beginning in March 2020 and were gradually reopened in a phased approach starting May 2020. Additionally, our other operating assets were impacted by rent deferrals, collection reserves and additional expenses directly associated with COVID-19. HowardHughes.com 214.741.7744 5


 
Financial Summary Financial Summary $ in thousands except share price and billions Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Company Profile Share price (a) $57.60 $51.95 $50.52 $126.80 $129.60 $57.60 $129.60 Market Capitalization (b) $3.2b $2.9b $2.8b $5.4b $5.6b $3.2b $5.6b Enterprise Value (c) $6.5b $6.5b $6.3b $9.3b $8.8b $6.5b $8.8b Weighted avg. shares - basic 55,542 55,530 43,380 43,190 43,134 51,493 43,118 Weighted avg. shares - diluted 55,585 55,530 43,380 43,356 43,428 51,493 43,375 Total diluted share equivalents outstanding 54,922 54,931 54,939 42,673 43,426 54,922 43,426 Debt Summary Total debt payable (d) $ 4,253,595 $ 4,439,153 $ 4,345,066 $ 4,138,618 $ 3,665,263 $ 4,253,595 $ 3,665,263 Fixed-rate debt $ 2,387,189 $ 1,902,175 $ 1,906,187 $ 1,908,660 $ 2,011,626 $ 2,387,189 $ 2,011,626 Weighted avg. rate - fixed 5.12% 5.06% 5.06% 5.05% 5.11% 5.12% 5.11% Variable-rate debt, excluding condominium financing $ 1,686,979 $ 2,411,620 $ 2,362,424 $ 2,199,241 $ 1,625,792 $ 1,686,979 $ 1,625,792 Weighted avg. rate - variable 3.52% 3.44% 3.91% 4.32% 4.54% 3.52% 4.54% Condominium debt outstanding at end of period $ 179,427 $ 125,358 $ 76,455 $ 30,717 $ 27,846 $ 179,427 $ 27,846 Weighted avg. rate - condominium financing 3.21% 3.22% 4.29% 4.83% 5.12% 3.21% 5.12% Leverage ratio (debt to enterprise value) 64.66% 67.61% 68.40% 44.19% 41.17% 64.62% 41.18% (a) Presented as of period end date. (b) Market capitalization = Closing share price at of the last trading day of the respective period times total diluted share equivalents outstanding as of the date presented. (c) Enterprise Value = Market capitalization + book value of debt + noncontrolling interest - cash and cash equivalents. (d) Represents total mortgages, notes and loans payable, as stated in our GAAP financial statements as of the respective date, excluding unamortized deferred financing costs and bond issuance costs. HowardHughes.com 214.741.7744 6


 
Financial Summary (con't) Financial Summary $ in thousands Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Earnings Profile Operating Assets Segment Income Revenues $ 83,430 $ 81,004 $ 111,170 $ 93,639 $ 101,694 $ 275,604 $ 297,405 Expenses (47,508) (42,007) (53,264) (48,414) (48,571) (142,779) (139,224) Company's Share NOI - Equity investees 2,315 1,836 5,961 2,123 2,043 10,112 8,820 Operating Assets NOI (a) 38,237 40,833 63,867 47,348 55,166 142,937 167,001 Avg. NOI margin 46% 50% 57% 51% 54% 52% 56% MPC Segment Earnings Total revenues 52,158 68,913 50,446 170,739 92,287 171,517 216,042 Total expenses (b) (23,150) (32,061) (23,813) (73,886) (43,251) (79,024) (109,409) Interest income, net (c) 9,176 8,303 8,554 7,643 8,550 26,033 24,376 Equity in (losses) earnings in real estate and other affiliates (1,563) (2,968) 8,934 9,477 4,523 4,403 18,859 MPC Segment EBT (c) 36,621 42,187 44,121 113,973 62,109 122,929 149,868 Seaport District Segment Income Revenues 4,214 2,653 8,736 11,550 22,389 15,603 41,300 Expenses (10,313) (6,093) (12,626) (16,802) (25,281) (29,032) (51,068) Company's Share NOI - Equity investees (106) (305) (376) (325) (148) (787) (385) Seaport District NOI (d) (6,205) (3,745) (4,266) (5,577) (3,040) (14,216) (10,153) Avg. NOI margin (147%) (141%) (49%) (48%) (14%) (91%) (25%) Condo Gross Profit Revenues 142 — 43 5,009 9,999 185 443,931 Expenses (1,087) (6,348) (97,901) (4,435) (7,010) (105,336) (365,324) Condo Net Income (e) $ (945) $ (6,348) $ (97,858) $ 574 $ 2,989 $ (105,151) $ 78,607 (a) Operating Assets NOI = Operating Assets NOI excluding properties sold or in redevelopment + the Howard Hughes Corporation's (the "Company" or "HHC") share of equity method investments NOI and the annual distribution from our cost basis investment. Prior periods have been adjusted to be consistent with current period presentation. (b) Expenses include both actual and estimated future costs of sales allocated on a relative sales value to land parcels sold, including Master Planned Communities ("MPC")-level G&A and real estate taxes on remaining residential and commercial land. (c) MPC Segment EBT (Earnings before tax, as discussed in our GAAP financial statements), includes negative interest expense relating to capitalized interest for the segment on debt held in other segments and at corporate. (d) Seaport District NOI = Seaport District NOI excluding properties sold or in redevelopment + Company's share of equity method investments NOI. Prior periods have been adjusted to be consistent with fiscal 2019 presentation. (e) As a result of significantly lower available inventory, we closed on no condominium units during the three and nine months ended September 30, 2020, The Company closed on a large number of units at Ke Kilohana and Ae’o in 2019, with no new condominium towers scheduled for completion in 2020. However, as highlighted on page 23 of this presentation, overall progress at our condominium projects remains strong. Additionally, during the first quarter of 2020, the Company recorded a $97.9 million charge for the estimated costs related to construction defects at the Waiea tower. The Company expects to recover all the repair costs from the general contractor, other responsible parties and insurance proceeds. HowardHughes.com 214.741.7744 7


 
Balance Sheets thousands except par values and share amounts Q3 2020 Q3 2019 FY 2019 FY 2018 ASSETS Unaudited Unaudited Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,693,478 $ 1,675,536 $ 1,655,674 $ 1,642,660 Buildings and equipment 4,069,640 3,136,130 3,813,595 2,932,963 Less: accumulated depreciation (600,211) (444,461) (507,933) (380,892) Land 361,418 303,384 353,022 297,596 Developments 1,110,101 1,349,855 1,445,997 1,290,068 Net property and equipment 6,634,426 6,020,444 6,760,355 5,782,395 Investment in real estate and other affiliates 389,882 117,821 121,757 102,287 Net investment in real estate 7,024,308 6,138,265 6,882,112 5,884,682 Net investment in lease receivable 2,928 — 79,166 — Cash and cash equivalents 857,390 650,702 422,857 499,676 Restricted cash 233,111 197,898 197,278 224,539 Accounts receivable, net 10,087 19,980 12,279 12,589 Municipal Utility District receivables, net 331,451 273,169 280,742 222,269 Notes receivable, net 52,136 300 36,379 4,694 Deferred expenses, net 112,503 108,198 133,182 95,714 Operating lease right-of-use assets, net 57,087 71,176 69,398 — Prepaid expenses and other assets, net 360,244 249,490 300,373 411,636 Total assets $ 9,041,245 $ 7,709,178 $ 8,413,766 $ 7,355,799 LIABILITIES Mortgages, notes and loans payable, net $ 4,219,334 $ 3,422,490 $ 4,096,470 $ 3,181,213 Operating lease obligations 69,246 71,125 70,413 — Deferred tax liabilities 178,433 166,033 180,748 157,188 Accounts payable and accrued expenses 830,209 697,763 733,147 779,272 Total liabilities 5,297,222 4,357,411 5,080,778 4,117,673 Redeemable noncontrolling interest 30,361 — — — EQUITY Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued — — — — Common stock: $.01 par value; 150,000,000 shares authorized, 55,974,883 issued and 54,921,748 outstanding as of September 30, 2020, and 150,000,000 shares authorized, 43,635,893 shares issued and 42,585,633 outstanding as of December 31, 2019 561 437 437 436 Additional paid-in capital 3,942,173 3,329,062 3,343,983 3,322,433 Accumulated deficit (65,910) (75,043) (46,385) (120,341) Accumulated other comprehensive loss (42,831) (28,542) (29,372) (8,126) Treasury stock, at cost, 1,053,135 shares as of September 30, 2020, and 1,050,260 shares as of December 31, 2019 (120,706) (62,190) (120,530) (62,190) Total stockholders' equity 3,713,287 3,163,724 3,148,133 3,132,212 Noncontrolling interests 375 188,043 184,855 105,914 Total equity 3,713,662 3,351,767 3,332,988 3,238,126 Total liabilities and equity $ 9,041,245 $ 7,709,178 $ 8,413,766 $ 7,355,799 Share Count Details (In thousands) Shares outstanding at end of period (including restricted stock) 54,922 43,233 42,586 42,992 Dilutive effect of stock options (a) — 107 88 117 Dilutive effect of warrants (b) — 86 4 — Total diluted share equivalents outstanding 54,922 43,426 42,678 43,109 (a) Stock options assume net share settlement calculated for the period presented. (b) Warrants assume net share settlement and incremental shares for dilution calculated as of the date presented. HowardHughes.com 214.741.7744 8


 
Statements of Operations Comparative Statements of Operations: Total Portfolio thousands except per share amounts Q3 2020 Q3 2019 YTD Q3 2020 YTD Q3 2019 REVENUES Unaudited Unaudited Unaudited Unaudited Condominium rights and unit sales $ 142 $ 9,999 $ 185 $ 443,931 Master Planned Communities land sales 39,248 77,368 136,053 177,001 Rental revenue 70,072 70,344 241,522 206,168 Other land, rental and property revenues 35,748 63,801 82,092 165,054 Builder price participation 9,230 9,660 25,936 24,224 Total revenues 154,440 231,172 485,788 1,016,378 EXPENSES Condominium rights and unit cost of sales 1,087 7,010 105,336 365,324 Master Planned Communities cost of sales 15,899 33,304 58,560 78,128 Operating costs 58,272 81,222 168,763 221,529 Rental property real estate taxes 15,448 9,080 44,225 28,585 Provision for (recovery of) doubtful accounts 1,387 (107) 4,954 (195) Demolition costs — 138 — 737 Development-related marketing costs 1,912 5,341 6,541 16,874 General and administrative 23,441 33,990 84,755 92,322 Depreciation and amortization 52,395 40,093 160,995 115,142 Total expenses 169,841 210,071 634,129 918,446 OTHER Provision for impairment — — (48,738) — Gain (loss) on sale or disposal of real estate and other assets, net 108 24,201 46,232 24,051 Other income (loss), net 1,284 1,337 (793) 11,798 Total other 1,392 25,538 (3,299) 35,849 Operating income (loss) (14,009) 46,639 (151,640) 133,781 Selling profit from sales-type leases — 13,537 — 13,537 Interest income 358 2,872 1,908 7,696 Interest expense (31,872) (28,829) (98,717) (76,358) Gain (loss) on extinguishment of debt (13,166) — (13,166) — Equity in earnings (losses) from real estate and other affiliates 266,838 4,542 269,635 20,847 Income (loss) before taxes 208,149 38,761 8,020 99,503 Provision (benefit) for income taxes 44,147 8,718 3,203 24,207 Net income (loss) 164,002 30,043 4,817 75,296 Net (income) loss attributable to noncontrolling interests (24,292) (285) (24,325) (240) Net income (loss) attributable to common stockholders $ 139,710 $ 29,758 $ (19,508) $ 75,056 Basic income (loss) per share $ 2.52 $ 0.69 $ (0.38) $ 1.74 Diluted income (loss) per share $ 2.51 $ 0.69 $ (0.38) $ 1.73 HowardHughes.com 214.741.7744 9


 
Reconciliations of Net Income to FFO, Core FFO and AFFO thousands except share amounts Q3 2020 Q3 2019 YTD Q3 2020 YTD Q3 2019 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Unaudited Unaudited Net income (loss) attributable to common stockholders $ 139,710 $ 29,758 $ (19,508) $ 75,056 Adjustments to arrive at FFO: Segment real estate related depreciation and amortization 50,303 37,769 155,631 109,323 (Gain) loss on sale or disposal of real estate and other assets, net (108) (24,201) (46,232) (24,051) (Gain) on 110 North Wacker deconsolidation (267,518) — (267,518) — Development management fees recognized at the time of 110 North Wacker deconsolidation (15,353) — (15,353) — Selling profit from sales-type leases — (13,537) — (13,537) Income tax expense adjustments: Gain on sale or disposal of real estate and other assets, net 23 5,868 9,709 5,868 (Gain) on 110 North Wacker deconsolidation 56,179 — 56,179 — Development management fees recognized at the time of 110 North Wacker deconsolidation 3,224 — 3,224 — Selling profit from sales-type leases — 3,303 — 3,303 Impairment of depreciable real estate properties — — 48,738 — Reconciling items related to noncontrolling interests 24,292 285 24,325 240 Our share of the above reconciling items included in earnings from unconsolidated joint ventures 819 916 9,019 2,674 FFO $ (8,429) $ 40,161 $ (41,786) $ 158,876 Adjustments to arrive at Core FFO: Loss on extinguishment of debt $ 13,166 $ — $ 13,166 $ — Severance expenses 421 2,167 2,058 3,090 Non-real estate related depreciation and amortization 2,092 2,324 5,364 5,819 Straight-line amortization 2,804 (2,103) (2,192) (6,257) Deferred income tax (benefit) expense 42,887 8,368 1,186 23,189 Non-cash fair value adjustments related to hedging instruments 4,121 199 8,441 (21) Share-based compensation 419 3,240 2,996 8,893 Other non-recurring expenses (development-related marketing and demolition costs) 1,912 5,479 6,541 17,611 Our share of the above reconciling items included in earnings from unconsolidated joint ventures 92 24 236 101 Core FFO $ 59,485 $ 59,859 $ (3,990) $ 211,301 Adjustments to arrive at AFFO: Tenant and capital improvements $ (7,449) $ (206) $ (13,009) $ (4,001) Leasing commissions (802) (1,801) (3,038) (2,589) Condominium inventory writedown 944 — 6,022 — AFFO $ 52,178 $ 57,852 $ (14,015) $ 204,711 FFO per diluted share value $ (0.15) $ 0.91 $ (0.81) $ 3.66 Core FFO per diluted share value $ 1.07 $ 1.38 $ (0.08) $ 4.87 AFFO per diluted share value $ 0.94 $ 1.32 $ (0.27) $ 4.72 HowardHughes.com 214.741.7744 10


 
NOI by Region, excluding the Seaport District in thousands except Sq. Ft. and units % Total Q3 2020 Occupied (#) Q3 2020 Leased (#) Q3 2020 Occupied (%) Q3 2020 Leased (%) Q3 2020 Est. Time to Ownership Annualized Stabilized Stabilize Property (a) Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units NOI (b) NOI (c) (Years) Stabilized Properties Office - Houston 100% 3,195,219 — 2,992,053 — 3,011,562 — 94% —% 94% —% $ 70,174 $ 86,028 — Office - Columbia 100% 1,387,994 — 1,240,151 — 1,256,452 — 89% —% 91% —% 19,359 25,579 — Office - Summerlin 100% 532,428 — 523,170 — 523,170 — 98% —% 98% —% 12,762 13,700 — Retail - Houston 100% 420,860 — 376,534 — 380,940 — 89% —% 91% —% 7,073 13,270 — Retail - Columbia 100% 89,199 — 89,199 — 89,199 — 100% —% 100% —% 2,169 2,200 — Retail - Hawaii 100% 1,015,019 — 903,332 — 905,132 — 89% —% 89% —% 2,928 23,559 — Retail - Summerlin 100% 829,785 — 772,633 — 788,218 — 93% —% 95% —% 15,931 26,300 — Retail - Other 100% 273,270 — 257,773 — 263,262 — 94% —% 96% —% 138 6,501 — Multi-Family - Houston (d) 100% 23,280 1,389 20,960 1,151 20,960 1,204 90% 83% 90% 87% 13,039 19,800 — Multi-Family - Columbia (d) 50% 41,617 817 39,497 770 39,497 806 95% 94% 95% 99% 7,140 6,700 — Multi-Family - Summerlin (d) 100% — 124 — 114 — 122 —% 92% —% 98% 1,677 2,200 — Hospitality - Houston (e) 100% — 909 — 415 — — —% 46% —% —% 8,587 31,500 — Self-Storage - Houston 100% — 1,356 — 1,241 — 1,264 —% 92% —% 93% 642 600 — Other - Summerlin 100% — — — — — — —% —% —% —% 6,496 12,282 — Other Assets (f) Various 135,801 — 135,801 — 135,801 — 100% —% 100% —% 6,366 7,502 — Total Stabilized Properties (g) $ 174,481 $ 277,721 — Unstabilized Properties Office - Houston 100% 781,151 — 157,594 — 482,552 — 20% —% 62% —% $ (521) $ 22,300 2.6 Office - Columbia 100% 319,002 — 159,900 — 199,570 — 50% —% 63% —% (911) 9,200 3.0 Office - Other 23% 1,500,000 — — — 1,150,000 — —% —% 77% —% 44 14,421 0.0 Retail - Columbia 100% 10,700 — — — 10,700 — —% —% 100% —% (1) 400 1.0 Retail - Houston 100% 72,973 — 52,707 — 52,707 — 72% —% 72% —% — 2,200 2.0 Multi-Family - Houston (d) 100% 11,448 698 6,146 325 8,984 365 54% 47% 78% 52% (91) 12,404 3.1 Multi-Family - Columbia (d) 100% 56,683 382 12,470 146 12,470 175 22% 38% 22% 46% (95) 9,162 3.0 Multi-Family - Summerlin (d) 100% — 267 — 202 — 221 —% 76% —% 83% 2,741 4,400 0.3 Total Unstabilized Properties $ 1,166 $ 74,487 2.5 HowardHughes.com 214.741.7744 11


 
NOI by Region, excluding the Seaport District (con't) NOI by Region in thousands except Sq. Ft. and units % Total Q3 2020 Occupied (#) Q3 2020 Leased (#) Q3 2020 Occupied (%) Q3 2020 Leased (%) Q3 2020 Est. Time to Ownership Annualized Stabilized Stabilize Property (a) Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units NOI (b) NOI (c) (Years) Under Construction Properties Retail - Hawaii 100% 47,750 — — — 1,688 — —% —% 4% —% n/a 1,918 2.7 Multi-Family - Houston (d) 100% — 523 — — — — —% —% —% —% n/a 8,197 2.2 Total Under Construction Properties n/a 10,115 2.4 Total/ Wtd. Avg. for Portfolio $ 175,647 $ 362,323 2.5 (a) Includes our share of NOI for our joint ventures. (b) Annualized Q3 2020 NOI includes distribution received from cost method investment in Q1 2020. For purposes of this calculation, this one time annual distribution is not annualized. (c) Table above excludes Seaport District NOI, units, and square feet until we have greater clarity with respect to the performance of our tenants. See page 17 for Seaport District Est. stabilized yield and other project information. (d) Multi-Family square feet represent ground floor retail whereas multi-family units represent residential units for rent. (e) Hospitality percentage occupied is the average for Q3 2020. As a result of COVID-19, our Hospitality assets were temporarily shut down beginning in March 2020, and were gradually reopened in a phased approach starting May 2020. Despite these reopenings, we continue to see declines in occupancy through the third quarter of 2020, compared to levels achieved prior to the impact of the pandemic. (f) Other assets are primarily made up of our share of equity method investments not included in other categories. These assets can be found on page 14 of this presentation. (g) For Stabilized Properties, the difference between 3Q20 Annualized NOI and Stabilized NOI is attributable to a number of factors which may include temporary abatements, deferrals or lost revenue due to COVID-19 restrictions, timing of lease turnovers, free rent and other market factors. HowardHughes.com 214.741.7744 12


 
Stabilized Properties - Operating Assets Segment in thousands except Sq. Ft. and units Rentable Q3 2020 Q3 2020 Annualized Q3 Est. Stabilized Property Location % Ownership Sq. Ft. % Occ. % Leased 2020 NOI (a) NOI (a) Office 3 Waterway Square Houston, TX 100% 232,021 96% 96% $ 3,784 $ 6,900 4 Waterway Square Houston, TX 100% 218,551 100% 100% 6,835 6,856 1201 Lake Robbins Tower (b) Houston, TX 100% 807,586 100% 100% 23,936 25,000 1400 Woodloch Forest Houston, TX 100% 95,667 48% 48% 368 1,900 1725 Hughes Landing Houston, TX 100% 331,754 96% 96% 5,382 6,900 1735 Hughes Landing Houston, TX 100% 318,170 100% 100% 8,364 7,696 2201 Lake Woodlands Drive Houston, TX 100% 24,119 100% 100% 407 410 3831 Technology Forest Houston, TX 100% 95,078 100% 100% 2,416 2,268 9303 New Trails Houston, TX 100% 97,967 77% 77% 1,153 1,800 Lakefront North Houston, TX 100% 258,058 90% 92% 1,017 6,458 One Hughes Landing Houston, TX 100% 197,719 92% 92% 5,636 6,240 Two Hughes Landing Houston, TX 100% 197,714 83% 83% 3,252 6,000 Three Hughes Landing Houston, TX 100% 320,815 89% 93% 7,624 7,600 10-70 Columbia Corporate Center Columbia, MD 100% 898,621 87% 88% 10,986 14,330 Columbia Office Properties Columbia, MD 100% 62,038 88% 88% (24) 1,402 One Mall North Columbia, MD 100% 96,454 95% 95% 1,577 1,947 One Merriweather Columbia, MD 100% 206,865 99% 99% 5,186 4,800 Two Merriweather Columbia, MD 100% 124,016 86% 90% 1,634 3,100 Aristocrat Las Vegas, NV 100% 181,534 100% 100% 4,199 4,500 One Summerlin Las Vegas, NV 100% 206,279 96% 96% 6,190 5,700 Two Summerlin Las Vegas, NV 100% 144,615 100% 100% 2,373 3,500 Total Office 5,115,641 102,295 125,307 Retail 20/25 Waterway Avenue Houston, TX 100% 50,062 91% 100% 1,517 2,013 1701 Lake Robbins Houston, TX 100% 12,376 100% 100% 462 400 2000 Woodlands Parkway Houston, TX 100% 7,900 100% 100% 71 217 Creekside Village Green Houston, TX 100% 74,670 86% 86% 1,281 2,097 Hughes Landing Retail Houston, TX 100% 126,131 100% 100% 1,494 4,375 Lakeland Village Center Houston, TX 100% 67,947 75% 75% 1,122 1,700 Lake Woodlands Crossing Retail Houston, TX 100% 60,261 87% 87% 792 1,668 Waterway Garage Retail Houston, TX 100% 21,513 78% 78% 334 800 Columbia Regional Columbia, MD 100% 89,199 100% 100% 2,169 2,200 Ward Village Retail Honolulu, HI 100% 1,015,019 89% 89% 2,928 23,559 Downtown Summerlin Las Vegas, NV 100% 829,785 93% 95% 15,931 26,300 Outlet Collection at Riverwalk New Orleans, LA 100% 273,270 93% 95% 138 6,501 Total Retail 2,628,133 $ 28,239 $ 71,830 HowardHughes.com 214.741.7744 13


 
Stabilized Properties - Operating Assets Segment (con't) in thousands except Sq. Ft. and units Q3 2020 % Occ. (c) Q3 2020 % Leased (c) % Rentable Rentable Rentable Annualized Q3 Est. Stabilized Property Location Ownership Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units 2020 NOI (a) NOI (a) Multi-family Millennium Six Pines Apartments Houston, TX 100% — 314 n/a 79% n/a 83% $ 2,815 $ 4,500 Millennium Waterway Apartments Houston, TX 100% — 393 n/a 80% n/a 86% 2,874 4,600 One Lakes Edge Houston, TX 100% 23,280 390 90% 81% 90% 84% 5,071 7,200 Creekside Park Apartments Houston, TX 100% — 292 n/a 92% n/a 96% 2,279 3,500 The Metropolitan Downtown Columbia Columbia, MD 50% 13,591 380 84% 96% 84% 100% 3,132 2,900 m.flats & TEN.M Columbia, MD 50% 28,026 437 100% 93% 100% 98% 4,008 3,800 Constellation Las Vegas, NV 100% — 124 n/a 92% n/a 98% 1,677 2,200 Total Multi-family (d) 64,897 2,330 21,856 28,700 Hotel Embassy Suites at Hughes Landing (e) Houston, TX 100% — 205 n/a 56% n/a n/a 2,121 4,500 The Westin at The Woodlands (e) Houston, TX 100% — 302 n/a 37% n/a n/a 2,290 10,500 The Woodlands Resort & Conference Center (e) Houston, TX 100% — 402 n/a 47% n/a n/a 4,176 16,500 Total Hotel — 909 8,587 31,500 Other Hughes Landing Daycare Houston, TX 100% 10,000 — 100% —% 100% —% 259 260 The Woodlands Warehouse Houston, TX 100% 125,801 — 100% —% 100% —% 628 1,200 Self-Storage 242 & 2978 Houston, TX 100% — 1,356 n/a 92% n/a 93% 642 600 Sarofim Equity Investment Houston, TX 20% n/a n/a n/a n/a n/a n/a 2,080 2,202 Stewart Title of Montgomery County, TX Houston, TX 50% n/a n/a n/a n/a n/a n/a 1,864 1,117 Woodlands Ground Leases Houston, TX 100% n/a n/a n/a n/a n/a n/a 1,862 1,662 Kewalo Basin Harbor Honolulu, HI 100% n/a n/a n/a n/a n/a n/a 1,181 1,100 Hockey Ground Lease Las Vegas, NV 100% n/a n/a n/a n/a n/a n/a 423 458 Summerlin Hospital Medical Center Las Vegas, NV 5% n/a n/a n/a n/a n/a n/a 3,724 3,724 Las Vegas Ballpark (e) (f) Las Vegas, NV 100% n/a n/a n/a n/a n/a n/a 2,349 8,100 Other Assets Various 100% n/a n/a n/a n/a n/a n/a (1,508) (39) Total Other 135,801 1,356 13,504 20,384 Total Stabilized $ 174,481 $ 277,721 (a) For Stabilized Properties, the difference between 3Q20 Annualized NOI and Stabilized NOI is attributable to a number of factors which may include temporary abatements, deferrals or lost revenue due to COVID-19 restrictions, timing of lease turnovers, free rent and other market factors. (b) 1201 Lake Robbins Tower and 9950 Woodloch Forest Tower, collectively known as The Woodlands Towers at the Waterway, were acquired on December 30, 2019. 9950 Woodloch Forest Tower is an unstabilized property as of September 30, 2020. See page 15 for further details. (c) With the exception of Hotel properties, Percentage Occupied and Percentage Leased are as of September 30, 2020. Each Hotel property Percentage Occupied is the average for Q3 2020. (d) Multi-Family square feet represent ground floor retail whereas multi-family units represent residential units for rent. (e) Annualized NOI for these properties are based on a trailing 12-month calculation due to seasonality of the respective businesses. (f) The Las Vegas Ballpark presentation is inclusive of the results from both the stadium operations and those of our wholly-owned team, the Las Vegas Aviators. HowardHughes.com 214.741.7744 14


 
Unstabilized Properties - Operating Assets Segment in thousands except Sq. Ft. and units Q3 2020 % Occ. (a) Q3 2020 % Leased (a) Develop. Est. Total Annualized Est. Est. Est. % Rentable Rentable Rentable Costs Cost (Excl. Q3 2020 Stabilized Stab. Stab. Project Name Location Ownership Sq. Ft. Units Sq. Ft. Units Sq. Ft. Units Incurred Land) NOI NOI (b) Date Yield Office 9950 Woodloch Forest Tower (c) (d) Houston, TX 100% 601,151 — 26% n/a 50% n/a 137,142 210,571 (1,737) 17,900 2023 9% 8770 New Trails Houston, TX 100% 180,000 — —% n/a 100% n/a 38,376 45,985 1,216 4,400 2021 10% 110 North Wacker (e) Chicago, IL 23% 1,500,000 — —% n/a 77% n/a 16,078 16,078 44 14,421 2023 90% 6100 Merriweather Columbia, MD 100% 319,002 — 50% n/a 63% n/a 105,929 138,221 (911) 9,200 2023 7% Total Office 2,600,153 — 297,525 410,855 (1,388) 45,921 Retail Creekside Park West Houston, TX 100% 72,973 — 72% n/a 72% n/a 18,170 22,625 — 2,200 2022 10% Merriweather District Area 3 Standalone Restaurant Columbia, MD 100% 10,700 — —% n/a 100% n/a 2,857 5,680 (1) 400 2021 7% Total Retail 83,673 — 21,027 28,305 (1) 2,600 Multi-family Juniper Apartments Columbia, MD 100% 56,683 / 382 22% / 38% 22% / 46% 94,516 116,386 (95) 9,162 2023 8% Lakeside Row Houston, TX 100% — 312 n/a 76% n/a 81% 43,428 48,412 233 3,875 2021 8% Two Lakes Edge Houston, TX 100% 11,448 / 386 54% / 23% 78% / 29% 90,802 107,706 (324) 8,529 2024 8% Tanager Apartments Las Vegas, NV 100% — 267 n/a 76% n/a 83% 52,790 53,032 2,741 4,400 Q4 2020 8% Total Multi-family (f) 68,131 / 1,347 281,536 325,536 2,555 25,966 Total Unstabilized $ 600,088 $ 764,696 $ 1,166 $ 74,487 (a) With the exception of Hotel properties, Percentage Occupied and Percentage Leased are as of September 30, 2020. Each Hotel property Percentage Occupied is the average for Q3 2020. (b) Company estimates of stabilized NOI are based on current leasing velocity, excluding inflation and organic growth. (c) 9950 Woodloch Forest Tower development costs incurred and estimated total cost are inclusive of acquisition and tenant lease-up costs. (d) 1201 Lake Robbins Tower and 9950 Woodloch Forest Tower, collectively known as The Woodlands Towers at the Waterway, were acquired on December 30, 2019. 1201 Lake Robbins Tower is a stabilized property as of September 30, 2020, and 9950 Woodloch Forest Tower is unstabilized as Occidental Petroleum’s lease in this building expired in the second quarter of 2020.  Occidental Petroleum has leased 100% of 1201 Lake Robbins Tower through 2032. See page 13 for further details. (e) 110 North Wacker was placed in service during the third quarter of 2020.  The above represents only our membership interest and HHC’s total cash equity requirement.  Est. Stabilized NOI Yield is based on the projected building NOI at stabilization and our percentage ownership of the equity capitalized of the projects.  It does not include the impact of the partnership distribution waterfall. (f) Multi-Family square feet represent ground floor retail whereas multi-family units represent residential units for rent. HowardHughes.com 214.741.7744 15


 
Under Construction Projects - Strategic Developments Segment Under Construction Properties in thousands except Sq. Ft. and units Est. Develop. Est. Total Est. (Owned & Managed) Project % Est. Rentable Percent Pre- Const. Stabilized Costs Cost (Excl. Est. Stabilized Stab. Name Location Ownership Sq. Ft. Leased (a) Project Status Start Date Date (b) Incurred Land) NOI Yield Retail A'ali'i (c) Honolulu, HI 100% 11,336 —% Under Construction Q4 2018 2022 — — 637 —% Kō'ula (c) Honolulu, HI 100% 36,414 5% Under Construction Q3 2019 2023 — — 1,281 —% Total Retail 47,750 — — 1,918 Monthly Est. Est. Develop. Est. Total Est. % Rent Per Const. Stabilized Costs Cost (Excl. Est. Stabilized Stab. Project Name Location Ownership Units Unit Project Status Start Date Date (b) Incurred Land) NOI Yield Multi-family Creekside Park Apartments Phase II Houston, TX 100% 360 1,744 Under Construction Q3 2019 2023 19,412 57,472 4,697 8% Residences at the Lane at Waterway (d) Houston, TX 100% 163 2,595 Under Construction Q2 2019 2021 31,065 45,033 3,500 8% Total Multi-family 523 50,477 102,505 8,197 Total Under Construction $ 50,477 $ 102,505 $ 10,115 (a) Represents leases signed as of September 30, 2020, and is calculated as the total leased square feet divided by total leasable square feet, expressed as a percentage. (b) Represents management's estimate of the first quarter of operations in which the asset may be stabilized. (c) Condominium retail Develop. Cost Incurred and Est. Total Costs (Excl. Land) are combined with their respective condominium costs on page 23 of this supplement. (d) Millennium Phase III Apartments was renamed to Residences at the Lane at Waterway as of Q3 2020. HowardHughes.com 214.741.7744 16


 
Seaport District Operating Performance NOI by Region Real Estate Managed Events, Q3 2020 Operations (Landlord) (a) Businesses (b) Sponsorships & Historic District Historic District Catering Business Q3 2020 $ in thousands & Pier 17 Multi-Family (c) & Pier 17 (d) Tin Building (e) (f) Total Revenues Rental revenue (g) $ 1,242 $ 203 $ — $ — $ — $ 1,445 Tenant recoveries 291 — — — — 291 Other rental and property revenue 95 1 2,145 — 237 2,478 Total Revenues 1,628 204 2,145 — 237 4,214 Expenses Other property operating costs (g) (3,650) (158) (3,908) — (2,703) (10,419) Total Expenses (3,650) (158) (3,908) — (2,703) (10,419) Net Operating (Loss) Income - Seaport District (h) $ (2,022) $ 46 $ (1,763) $ — $ (2,466) $ (6,205) Project Status Unstabilized Stabilized Unstabilized Under Construction Unstabilized Rentable Sq. Ft / Units Total Sq. Ft. / units 333,899 13,000 / 21 44,854 53,396 21,077 Leased Sq. Ft. / units (i) 123,702 — / 21 44,854 53,396 21,077 % Leased or occupied (i) 37% —% / 100% 100% 100% 100% Development (j) Development costs incurred $ 536,330 $ — $ — $ 99,836 $ — $ 636,166 Estimated total costs (excl. land) $ 594,368 $ — $ — $ 173,452 $ — $ 767,820 (a) Real Estate Operations (Landlord) represents physical real estate developed and owned by HHC and leased to third parties. (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. For the three months ended September 30, 2020, our managed businesses include, among others, The Fulton, SJP by Sarah Jessica Parker, R17, Cobble & Co., Malibu Farm and Bar Wayo. (c) Multi-Family represents 85 South Street which includes base level retail in addition to residential units. (d) Includes our 90% share of NOI from Bar Wayō. (e) Represents the food hall by Jean-Georges. As a result of potential impacts related to COVID-19, including delays in construction on the Tin Building, we are uncertain as to the timing of construction completion and the opening of the Tin Building. (f) Events, Sponsorships & Catering Business includes private events, catering, sponsorships, concert series and other rooftop activities. (g) Rental revenue and expense earned from and paid by businesses we own and operate is eliminated in consolidation. (h) See page 32 for the reconciliation of Seaport District NOI. (i) 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. (j) Development costs incurred and Estimated total costs (excl. land) are shown net of insurance proceeds of approximately $64.7 million. HowardHughes.com 214.741.7744 17


 
MPC Portfolio Commercial 22% Commercial Master Planned 42% Commercial Communities- Remaining Residential 100% 58% Saleable Acres (a) Residential 78% Unstabilized 7% Unstabilized Unstabilized 10% 17% Income-Producing Assets - Stabilized and Unstabilized Stabilized Stabilized Stabilized 93% 90% 83% $ in thousands Nevada Texas Maryland Total MPC Performance - 3Q20 & 3Q19 MPC Net Contribution (3Q20) (b) $6,616 $5,072 $(262) $11,426 MPC Net Contribution (3Q19) (b) $37,663 $3,856 $(12) $41,507 Operating Asset Performance - 2020 & Future Annualized 3Q20 in-place NOI $38,173 $105,867 $27,612 $171,652 Est. stabilized NOI (future) (c) $58,882 $202,720 $53,223 $314,825 Wtd. avg. time to stab. (yrs.) 0.3 2.2 3.0 — (a) Commercial acres may be developed by us or sold. (b) Reconciliation of GAAP MPC segment EBT to MPC Net Contribution for the three months ended September 30, 2020, is found under Reconciliation of Non-GAAP Measures on page 33. (c) Est. Stabilized NOI (Future) represents all of the Company's assets within the respective MPC regions, inclusive of stabilized, unstabilized and under construction. HowardHughes.com 214.741.7744 18


 
Portfolio Key Metrics Portfolio Key Metrics MPC Regions Non-MPC Regions The The Woodlands As of September 30, 2020 Woodlands Hills Bridgeland Summerlin Columbia Total Hawai‘i (a) Seaport Other Total Houston, TX Houston, TX Houston, TX Las Vegas, NV Columbia, MD MPC Regions Honolulu, HI New York, NY Non-MPC Operating - Stabilized Properties Office Sq.Ft. 3,195,219 — — 532,428 1,387,994 5,115,641 — — — — Retail Sq. Ft. (b) 376,193 — 67,947 829,785 130,816 1,404,741 1,015,019 13,000 273,270 1,301,289 Multifamily units 1,389 — — 124 817 2,330 — 21 — 21 Hotel Rooms 909 — — — — 909 — — — — Self-Storage Units 1,356 — — — — 1,356 — — — — Other Sq. Ft. 135,801 — — — — 135,801 — — — — Operating - Unstabilized Properties Office Sq.Ft. 781,151 — — — 319,002 1,100,153 — 146,935 1,500,000 1,646,935 Retail Sq.Ft. 84,421 — — — 67,383 151,804 — 252,895 — 252,895 Multifamily units 386 — 312 267 382 1,347 — — — — Hotel rooms — — — — — — — — — — Self-Storage Units — — — — — — — — — — Other Sq. Ft. — — — — — — — — — — Operating - Under Construction Properties Office Sq.Ft. — — — — — — — — — — Retail Sq.Ft. — — — — — — 47,750 53,396 — 101,146 Other Sq. Ft. — — — — — — — — — — Multifamily units 523 — — — — 523 — — — — Hotel rooms — — — — — — — — — — Self-Storage Units — — — — — — — — — — Residential Land Total gross acreage/condos (c) 28,505 ac. 2,055 ac. 11,506 ac. 22,500 ac. 16,450 ac. 81,016 ac. 2,697 n/a n/a 2,697 Current Residents (c) 118,000 300 12,550 113,000 112,000 355,850 n/a n/a n/a — Remaining saleable acres/condos 37 ac. 1,310 ac. 2,048 ac. 2,951 ac. n/a 6,346 ac. 251 n/a n/a 251 Estimated price per acre (d) $ 1,068 $ 274 $ 422 $ 676 n/a — n/a n/a n/a $ — Commercial Land Total acreage remaining 722 ac. 175 ac. 1,526 ac. 851 ac. 96 ac. 3,370 ac. n/a n/a n/a — Estimated price per acre (d) $ 1,147 $ 515 $ 543 $ 1,125 $ 580 — n/a n/a n/a $ — Portfolio Key Metrics herein include square feet, units and rooms included in joint venture projects. Sq. Ft. and units are not shown at share. Retail Sq. Ft. includes multi-family Sq. Ft. (a) Excludes Victoria Place as construction has not yet commenced. (b) Retail Sq. Ft. within the Summerlin region excludes 381,767 Sq. Ft. of anchors. (c) Acreage shown as of September 30, 2020; current residents shown as of December 31, 2019. (d) Residential and commercial pricing represents the Company's estimate of price per acre per its 2020 land models. HowardHughes.com 214.741.7744 19


 
Lease Expirations Lease Expirations Office and Retail Lease Expirations Total Office and Retail Portfolio as of September 30, 2020 54% g n 48% i r i p x 42% E t n e 36% R h s 30% a C d 24% e z i l a 18% u n n A 12% f o 6% % 0% Office Retail Office Retail Office Retail Office Retail Office Retail Office Retail Office Retail Office Retail Office Retail Office Retail Office Retail | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030+ | Houston Summerlin Columbia Hawaii Other Office Expirations (a) Retail Expirations (a) Annualized Cash Rent Percentage of Wtd. Avg. Annualized Cash Annualized Cash Rent Percentage of Wtd. Avg. Annualized Cash Expiration Year (In thousands) Annualized Cash Rent Rent Per Leased Sq. Ft. (In thousands) Annualized Cash Rent Rent Per Leased Sq. Ft. 2020 $ 2,459 1.43 % $ 19.65 $ 4,308 5.80 % $ 46.49 2021 5,470 3.18 % 19.32 4,942 6.65 % 30.53 2022 17,859 10.40 % 11.39 4,507 6.06 % 41.99 2023 10,792 6.28 % 16.06 4,621 6.22 % 40.39 2024 15,228 8.86 % 23.27 6,540 8.80 % 40.26 2025 14,825 8.63 % 21.14 20,645 27.78 % 45.69 2026 6,583 3.83 % 32.95 5,400 7.27 % 39.60 2027 15,813 9.20 % 27.43 4,593 6.18 % 54.37 2028 9,705 5.65 % 37.64 3,545 4.77 % 38.40 2029 8,066 4.70 % 16.23 3,748 5.04 % 37.19 Thereafter 64,993 37.83 % 37.67 11,460 15.42 % 48.15 Total $ 171,793 100.00 % $ 74,309 100.00 % (a) Excludes leases with an initial term of 12 months or less. Also excludes Seaport leases. HowardHughes.com 214.741.7744 20


 
Acquisition / Disposition Activity Acquisition / Disposition Activity thousands except rentable Sq. Ft. / Units / Acres Q3 2020 Acquisitions Rentable Date Acquired Property % Ownership Location Sq. Ft. / Units / Acres Acquisition Price No acquisition activity in Q3 2020 Q3 2020 Dispositions Rentable Date Sold Property % Ownership Location Sq. Ft. / Units / Acres Sale Price July 16, 2020 Mr. C Seaport 35% Equity Interest 33 Peck Slip, New York 66 $0.8 million HowardHughes.com 214.741.7744 21


 
Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total $ in thousands Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Revenues: Residential land sale revenues $ 3,089 $ 11,722 $ 6,672 $ 2,988 $ 17,472 $ 17,618 $ 11,946 $ 45,039 $ — $ — $ 39,179 $ 77,367 Commercial land sale revenues — — — — 69 — — — — — 69 — Builder price participation 60 119 45 33 426 153 8,698 9,356 — — 9,229 9,661 Other land sale revenues 69 1,957 — — 10 20 3,602 3,282 — — 3,681 5,259 Total revenues 3,218 13,798 6,717 3,021 17,977 17,791 24,246 57,677 — — 52,158 92,287 Expenses: Cost of sales - residential land (1,764) (5,216) (2,535) (1,123) (5,695) (5,885) (5,881) (21,079) — — (15,875) (33,303) Cost of sales - commercial land — — — — (23) — — — — — (23) — Real estate taxes (1,005) (1,456) (63) (39) (623) (565) (604) (805) (143) (132) (2,438) (2,997) Land sales operations (1,448) (3,870) (582) (321) (928) (1,085) (1,654) (1,927) (112) (194) (4,724) (7,397) Depreciation and amortization (33) (34) — — (33) (33) (25) (21) — — (91) (88) Other income, net — — — — — 223 — — — 311 — 534 Total operating expenses (4,250) (10,576) (3,179) (1,483) (7,302) (7,345) (8,164) (23,832) (255) (15) (23,150) (43,251) Net interest capitalized (expensed) (643) (1,317) 256 284 4,211 4,249 5,352 5,334 — — 9,176 8,550 Equity in (losses) earnings from real estate affiliates — — — — — — (1,563) 4,523 — — (1,563) 4,523 EBT $ (1,675) $ 1,905 $ 3,794 $ 1,822 $ 14,886 $ 14,695 $ 19,871 $ 43,702 $ (255) $ (15) $ 36,621 $ 62,109 Key Performance Metrics: Residential Total acres closed in current period 5.7 15.9 22.4 11.0 39.3 42.9 2.4 77.6 — — Price per acre achieved (a) $ 542 $ 737 $ 298 $ 272 $ 445 $ 411 $ 1,594 $ 674 NM NM Avg. gross margins 42.9% 55.5% 62.0% 62.4% 67.4% 66.6% 50.8% 53.2% NM NM Commercial Total acres closed in current period — — — — 0.5 — — — — — Price per acre achieved NM NM NM NM $ 138 NM NM NM NM NM Avg. gross margins NM NM NM NM 68.1% NM NM NM NM NM Avg. combined before-tax net margins 42.9% 55.5% 62.0% 62.4% 67.4% 66.6% 50.8% 53.2% NM NM Key Valuation Metrics The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Remaining saleable acres Residential (b) 37 ac. 1,310 ac. 2,048 ac. 2,951 ac. — Commercial (c) 722 ac. 175 ac. 1,526 ac. 851 ac. 96 ac. Projected est. % superpads / lot size —% / — —% / — —% / — 87% / 0.25 ac NM Projected est. % single-family detached lots / lot size 43% / 0.65 ac. 85% / 0.22 ac. 89% / 0.16 ac. —% / — NM Projected est. % single-family attached lots / lot size 57% / 0.12 ac. 15% / 0.13 ac. 11% / 0.10 ac. —% / — NM Projected est. % custom homes / lot size —% / — —% / — 1% / 1.00 ac. 13% / 0.45 ac NM Estimated builder sale velocity (blended total - TTM) (d) 13 24 98 111 NM Projected GAAP gross margin (e) 42.9% 62.0% 67.4% 50.8% NM Projected cash gross margin (e) 99.8% 92.2% 81.0% 70.2% NM Residential sellout / Commercial buildout date estimate Residential 2022 2031 2034 2039 — Commercial 2031 2030 2045 2039 2023 (a) The price per acre achieved for Summerlin residential lots is mostly attributable to custom lots sales. The price per acre achieved for The Woodlands residential lots is mostly attributable to the mix of lots sold. (b) The Woodlands Residential reports remaining saleable acres on a gross basis due to potential changes in land usage and the unknown acreage that may be set aside for drainage, parks and roads for undeveloped land. (c) Columbia Commercial excludes 31 commercial acres held in the Strategic Developments segment in Downtown Columbia. (d) Represents the average monthly builder homes sold over the last twelve months ended September 30, 2020. (e) Projected GAAP gross margin is based on GAAP revenues and expenses which exclude revenues deferred on sales closed where revenue did not meet criteria for recognition and includes revenues previously deferred that met criteria for recognition in the current period. Gross margin for each MPC may vary from period to period based on the locations of the land sold and the related costs associated with developing the land sold. Projected cash gross margin includes all future projected revenues less all future projected development costs, net of expected reimbursable costs, and capitalized overhead, taxes and interest. NM Not meaningful. HowardHughes.com 214.741.7744 22


 
Ward Village Condominiums As of September 30, 2020 Waiea Anaha Ae‘o Ke Kilohana (a) ‘A‘ali‘i Kō'ula Total Key Metrics ($ in thousands) Type of building Ultra-Luxury Luxury Upscale Workforce Upscale Upscale Number of units 177 317 465 423 750 565 2,697 Avg. unit Sq. Ft. 2,138 1,417 838 696 518 725 856 Condo Sq. Ft. 378,488 449,205 389,663 294,273 388,210 409,576 2,309,415 Street retail Sq. Ft. 7,716 16,048 70,800 28,386 11,336 36,414 170,700 Stabilized retail NOI $ 453 $ 1,152 $ 1,557 $ 1,081 $ 637 $ 1,281 $ 6,161 Stabilization year 2017 2020 2019 2020 2022 2023 Development progress ($ in thousands) Status Opened Opened Opened Opened Under Construction Under Construction Start date 2Q14 4Q14 1Q16 4Q16 4Q18 3Q19 Completion date/status Completed 4Q16 Completed 4Q17 Completed 4Q18 Completed 2Q19 2021 2022 Total development cost (b) $ 566,256 $ 401,314 $ — $ 218,898 $ 411,900 $ 487,039 $ 2,085,407 Cost-to-date (b) $ 426,615 $ 398,838 $ — $ 213,983 $ 231,543 $ 91,510 $ 1,362,489 Remaining to be funded $ 139,641 $ 2,476 $ — $ 4,915 $ 180,357 $ 395,529 $ 722,918 Financial Summary ($ in thousands, except per Sq. Ft.) Units closed (through Q3 2020) 170 315 465 423 — — 1,373 Units under contract (through Q3 2020) 2 1 — — 635 435 1,073 Units remaining to be sold (through Q3 2020) 5 1 — — 115 130 251 Total % of units closed or under contract 97.2% 99.7% 100.0% 100.0% 84.7% 77.0% 90.7% Units closed (current quarter) — — — — — — — Units under contract (current quarter) — — — — 5 6 11 Square footage closed or under contract (total) 360,161 443,386 389,663 294,273 310,452 324,981 2,122,916 Total % square footage closed or under contract 95.2% 98.7% 100.0% 100.0% 80.0% 79.3% 91.9% Target condo profit margin at completion (excl. land cost) ~30% Total cash received (closings & deposits) 656,360 493,067 513,313 215,947 82,582 102,228 $ 2,063,497 Total GAAP revenue recognized $ 1,877,290 Expected avg. price per Sq. Ft. $1,900 - $1,950 $1,100 - $1,150 $1,300 - $1,350 $700 - $750 $1,300 - $1,350 $1,500 - $1,550 $1,300 - 1,325 Expected construction costs per retail Sq. Ft. $~1,100 Deposit Reconciliation (in thousands) Spent towards construction $ — $ — $ — $ — $ 81,962 $ 18,381 $ 100,343 Held for future use (c) — — — — 620 83,847 84,467 Total deposits from sales commitment $ — $ — $ — $ — $ 82,582 $ 102,228 $ 184,810 (a) Ke Kilohana consists of 375 workforce units and 48 market rate units. (b) Development cost and cost-to-date are included only if the project has more than $1.0 million of estimated costs remaining to be incurred. (c) Total deposits held for future use are presented above only for projects under construction and are included in Restricted cash on the balance sheet. HowardHughes.com 214.741.7744 23


 
Other/Non-core Assets Other Assets Property Name City, State % Own Acres Notes The Elk Grove Collection Elk Grove, CA 100% 64 Sold 36 acres for $36 million in total proceeds in 2017. We are assessing our plans for the remaining acres. Previous development plans have been placed on hold as we believe we can allocate capital into core assets and achieve a better risk-adjusted return. Landmark Mall Alexandria, VA 100% 33 In January 2017, we acquired the 11.4-acre Macy's site for $22.2 million. Circle T Ranch and Power Center Westlake, TX 50% 207 50/50 joint venture with Hillwood Development Company. In 2016, HHC sold 72 acres to an affiliate of Charles Schwab Corporation. Monarch City Allen, TX 100% 238 Located 27 miles north of Downtown Dallas, this 261-acre mixed-use development received unanimous zoning approval June 26, 2019. Century Park Houston, TX 100% 63 In conjunction with the acquisition of the Occidental Towers in The Woodlands in December 2019, we acquired Century Park, a 63-acre, 1.3 million square foot campus with 17 office buildings in the West Houston Energy Corridor in Houston, TX. Maui Ranch Land Maui, HI 100% 20 Two, non-adjacent, ten-acre parcels zoned for native vegetation. Fashion Show Air Rights Las Vegas, NV 80% N/A Air rights above the Fashion Show Mall located on the Las Vegas Strip. 250 Water Street New York, NY 100% 1 The one-acre site is situated at the entrance of the Seaport District. While the Company is in the initial planning stages for this strategic site, it will continue to be used as a parking lot. HowardHughes.com 214.741.7744 24


 
Debt Summary Debt Summary thousands September 30, 2020 December 31, 2019 Fixed-rate debt: Unsecured 5.375% Senior Notes due 2025 $ 1,000,000 $ 1,000,000 Unsecured 5.375% Senior Notes due 2028 750,000 — Secured mortgages, notes and loans payable 594,920 884,935 Special Improvement District bonds 42,269 23,725 Variable-rate debt: Mortgages, notes and loans payable, excluding condominium financing (a) 1,686,979 2,199,241 Condominium financing (a) (c) 179,427 30,717 Mortgages, notes and loans payable 4,253,595 4,138,618 Unamortized bond discounts (4,583) (5,249) Deferred financing costs (29,678) (36,899) Total mortgages, notes and loans payable, net $ 4,219,334 $ 4,096,470 Net Debt on a Segment Basis, at share as of September 30, 2020 (b) Master Non- Operating Planned Seaport Strategic Segment Segment thousands Assets Communities District Developments Totals Amounts Total Mortgages, notes and loans payable, net (a) (c) $ 1,998,974 $ 187,071 $ 98,948 $ 202,123 $ 2,487,116 $ 1,732,218 $ 4,219,334 Mortgages, notes and loans payable of real estate and other affiliates (d) 246,615 5,851 — — 252,466 — 252,466 Less: Cash and cash equivalents (56,498) (94,264) (5,740) (6,669) (163,171) (694,219) (857,390) Cash and cash equivalents of real estate and other affiliates (d) (2,882) (84,656) (81) (1,184) (88,803) — (88,803) Special Improvement District receivables — (60,198) — — (60,198) — (60,198) Municipal Utility District receivables — (331,451) — — (331,451) — (331,451) TIF Receivable — — — (1,980) (1,980) — (1,980) Net debt $ 2,186,209 $ (377,647) $ 93,127 $ 192,290 $ 2,093,979 $ 1,037,999 $ 3,131,978 Consolidated Debt Maturities and Contractual Obligations by Extended Maturity Date as of September 30, 2020 (e) Remaining thousands in 2020 2021 2022 2023 2024 2025 Thereafter Total Mortgages, notes and loans payable $ 3,610 $ 321,634 $ 77,607 $ 1,046,439 $ 419,873 $ 1,118,045 $ 1,266,387 $ 4,253,595 Interest payments 48,160 177,921 174,616 161,631 127,050 74,769 241,149 1,005,296 Ground lease and other leasing commitments 1,339 7,184 6,507 6,464 6,432 5,047 261,805 294,778 Total consolidated debt maturities and contractual obligations $ 53,109 $ 506,739 $ 258,730 $ 1,214,534 $ 553,355 $ 1,197,861 $ 1,769,341 $ 5,553,669 (a) As of September 30, 2020, $644.6 million of variable‑rate debt has been swapped to a fixed rate for the term of the related debt. As of December 31, 2019, $630.1 million of variable‑rate debt has been swapped to a fixed rate for the term of the related debt and an additional $184.3 million of variable-rate debt was subject to interest rate collars. As of both September 30, 2020, and December 31, 2019, $75.0 million of variable-rate debt was capped at a maximum interest rate. (b) Net debt is a non-GAAP financial measure that we believe is useful to our investors and other users of our financial statements as its components are important indicators of our overall liquidity, capital structure and financial position. However, it should not be used as an alternative to our debt calculated in accordance with GAAP. (c) As of September 30, 2020, $179.4 million of the Mortgages, notes and loans payable, net related to financing for the condominium towers at Ward Village in the Strategic Developments segment. (d) Each segment includes our share of related Mortgages, notes and loans payable, net and Cash and cash equivalents for all joint ventures included in Investments in real estate and other affiliates. (e) Mortgages, notes and loans payable and Condominium financing are presented based on extended maturity date. Extension periods generally may be exercised at our option at the initial maturity date, subject to customary extension terms that are based on property performance as of the initial maturity date and/or extension date. Such extension terms may include, but are not limited to, minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable, and other performance criteria. We may have to pay down a portion of the debt if we do not meet the requirements to exercise the extension option. HowardHughes.com 214.741.7744 25


 
Property-Level Debt Property-Level Debt $ in thousands Q3 2020 Principal Contract Interest Interest Rate Current Annual Initial / Extended Asset Balance Rate Hedge Interest Rate Maturity (a) Operating Assets 1201 Lake Robbins $ 273,070 L+235 Floating 2.50% Dec-20 / Jun-21 The Woodlands Warehouse 7,230 L+235 Floating 2.50% Dec-20 / Jun-21 Outlet Collection at Riverwalk 29,163 L+250 Floating 2.65% Oct-21 20/25 Waterway Avenue 12,926 4.79% Fixed 4.79% May-22 Millennium Waterway Apartments 52,224 3.75% Fixed 3.75% Jun-22 Lake Woodlands Crossing Retail 12,329 L+180 Floating 1.95% Jan-23 Lakeside Row 31,351 L+225 Floating 2.40% Jul-22 / Jul-23 Senior Secured Credit Facility 615,000 4.61% Floating/Swap 4.61% (b), (c) Sep-23 Two Lakes Edge 60,754 L+215 Floating 2.30% Oct-22 / Oct-23 The Woodlands Resort & Conference Center 62,500 L+250 Floating 2.65% Dec-21 / Dec-23 9303 New Trails 10,873 4.88% Fixed 4.88% Dec-23 4 Waterway Square 31,842 4.88% Fixed 4.88% Dec-23 Creekside Park West 14,476 L+225 Floating 2.40% Mar-23 / Mar-24 6100 Merriweather 59,080 L+275 Floating 2.90% Sep-22 / Sep-24 Juniper Apartments 64,740 L+275 Floating 2.90% Sep-22 / Sep-24 Tanager Apartments 39,493 L+225 Floating 2.40% Oct-21 / Oct-24 9950 Woodloch Forest Drive 63,500 L+195 Floating 2.11% Mar-25 Ae‘o Retail 30,640 L+265 Floating 2.80% Oct-25 Ke Kilohana Retail 9,360 L+265 Floating 2.80% Oct-25 3831 Technology Forest Drive 20,802 4.50% Fixed 4.50% Mar-26 Kewalo Basin Harbor 11,455 L+275 Floating 2.90% Sep-27 Millennium Six Pines Apartments 42,500 3.39% Fixed 3.39% Aug-28 3 Waterway Square 46,586 3.94% Fixed 3.94% Aug-28 One Lakes Edge 69,440 4.50% Fixed 4.50% Mar-29 Aristocrat 37,337 3.67% Fixed 3.67% Sep-29 Creekside Park Apartments 37,730 3.52% Fixed 3.52% Oct-29 One Hughes Landing 51,116 4.30% Fixed 4.30% Dec-29 Two Hughes Landing 48,000 4.20% Fixed 4.20% Dec-30 8770 New Trails 29,563 4.89% Floating/Swap 4.89% (d) Jun-21 / Jan-32 Constellation Apartments 24,200 4.07% Fixed 4.07% Jan-33 Hughes Landing Retail 34,498 3.50% Fixed 3.50% Dec-36 Columbia Regional Building 24,351 4.48% Fixed 4.48% Feb-37 Las Vegas Ballpark 50,494 4.92% Fixed 4.92% Dec-39 $ 2,008,624 HowardHughes.com 214.741.7744 26


 
Property-Level Debt (con't) $ in thousands Q3 2020 Principal Contract Interest Interest Rate Current Annual Initial / Extended Asset Balance Rate Hedge Interest Rate Maturity (a) Master Planned Communities Bridgeland Credit Facility $ 75,000 L+250 Floating/Cap 2.66% Oct-22 / Oct-24 The Woodlands Master Credit Facility 75,000 L+250 Floating/Cap 2.66% Oct-22 / Oct-24 $ 150,000 Seaport District 250 Water Street $ 100,000 L+350 Floating 3.65% Nov-22 / Nov-23 $ 100,000 Strategic Developments A‘ali‘i $ 115,736 L+310 Floating 3.25% Jun-22 / Jun-23 Kō‘ula 63,691 L+300 Floating 3.15% Mar-23 / Mar-24 The Residences at the Lane at Waterway 17,751 L+175 Floating 1.90% (e) Aug-23 / Aug-24 Creekside Park Apartments Phase II 5,525 L+175 Floating 1.90% Jan-24 / Jan -25 $ 202,702 Total (f) $ 2,461,326 (a) Extended maturity assumes all extension options are exercised, if available, based on property performance. (b) The credit facility bears interest at one-month LIBOR plus 1.65%, but the $615.0 million term loan is swapped to an overall rate equal to 4.61%. The following properties are included as collateral for the credit facility: 10-70 Columbia Corporate Center, One Mall North, One Merriweather, 1701 Lake Robbins, 1725-1735 Hughes Landing Boulevard, Creekside Village Green, Lakeland Village Center at Bridgeland, Embassy Suites at Hughes Landing, The Westin at The Woodlands and certain properties at Ward Village. (c) Balance includes zero drawn on the revolver portion of the loan that is intended for general corporate use. (d) 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%. (e) Millennium Phase III Apartments was renamed to Residences at the Lane at Waterway as of Q3 2020. (f) Excludes JV debt, Corporate bond debt and SID bond debt related to Summerlin MPC and retail. HowardHughes.com 214.741.7744 27


 
Summary of Ground Leases Summary of Ground Leases Minimum Contractual Ground Lease Payments ($ in thousands) Future Cash Payments Pro-Rata Three months ended Remaining Year Ending December 31, Ground Leased Asset Share Expiration Date September 30, 2020 2020 2021 Thereafter Total Riverwalk (a) 100% 2045-2046 $ 762 $ 52 $ 1,737 $ 40,448 $ 42,237 Seaport 100% 2031 (b) 555 555 2,243 218,777 221,575 Kewalo Basin Harbor 100% 2049 — 300 300 8,000 8,600 $ 1,317 $ 907 $ 4,280 $ 267,225 $ 272,412 (a) Includes base ground rent, deferred ground rent and participation rent, as applicable. Future payments of participation rent are calculated based on the floor only. (b) Initial expiration is December 30, 2031 but subject to extension options through December 31, 2072. Future cash payments are inclusive of extension options. HowardHughes.com 214.741.7744 28


 
Summary of Restructuring Expenses Summary of Ground Leases $ in thousands Liability as of (Benefit) Expense Liability as of Restructuring Expenses June 30, 2020 Settled in Q3 2020 Recorded in Q3 2020 September 30, 2020 Known Expenses Employee severance $ 753 $ (753) $ — $ — Estimated Expenses Employee relocation 4,557 (4,249) 421 728 Total Restructuring Liability (a) $ 5,310 $ (5,003) $ 421 $ 728 (a) Does not include additional estimated $0.2 million - $0.7 million remaining restructuring expenses expected to be incurred in the remainder of 2020. HowardHughes.com 214.741.7744 29


 
Definitions Definitions Stabilized - Properties in the Operating Assets and Seaport District segments that have been in service for more than 36 months or have reached 90% occupancy, whichever occurs first. If an office, retail or multifamily property has been in service for more than 36 months but does not exceed 90% occupancy, the asset is considered underperforming. Unstabilized - Properties in the Operating Assets and Seaport District segments that have been in service for less than 36 months and do not exceed 90% occupancy. Under Construction - Projects in the Strategic Developments and Seaport District segments for which construction has commenced as of September 30, 2020, unless otherwise noted. This excludes MPC and condominium development. Net Operating Income (NOI) - We define net operating income ("NOI") as operating cash revenues (rental income, tenant recoveries and other revenue) less operating cash expenses (real estate taxes, repairs and maintenance, marketing and other property expenses), including our share of NOI from equity investees. NOI excludes straight-line rents and amortization of tenant incentives, net interest expense, ground rent amortization, demolition costs, amortization, other (loss) income, depreciation, development-related marketing costs, gain on sale or disposal of real estate and other assets, net, provision for impairment and, unless otherwise indicated, Equity in earnings from real estate and other affiliates. We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that factors which vary by property, such as lease structure, lease rates and tenant bases, have on our operating results, gross margins and investment returns. We believe that NOI is a useful supplemental measure of the performance of our Operating Assets and Seaport District segments because it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating real estate properties and the impact on operations from trends in rental and occupancy rates and operating costs. Estimated Stabilized NOI - Stabilized NOI is initially projected prior to the development of the asset based on market assumptions and is revised over the life of the asset as market conditions evolve. On a quarterly basis, each asset’s Annualized NOI is compared to its projected Stabilized NOI and Stabilization Date in conjunction with forecast data to determine if an adjustment is needed. Adjustments to Stabilized NOI are made when changes to the asset's long-term performance are thought to be more than likely and permanent. Projected Stabilized Dates are adjusted when the asset is believed to reach its Stabilized NOI prior to or later than originally assumed. HowardHughes.com 214.741.7744 30


 
Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Measures Reconciliation of Operating Assets segment EBT to Total NOI: thousands Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Total Operating Assets segment EBT (a) $ (28,831) $ (17,342) $ (7,544) $ (3,507) $ 19,825 $ (53,717) $ 38,139 Add back: Depreciation and amortization 41,395 36,995 37,089 30,609 28,844 115,479 84,890 Interest expense, net 21,045 23,103 26,193 20,334 21,645 70,341 60,695 Equity in (earnings) losses from real estate and other affiliates (962) (475) (4,394) (477) (441) (5,831) (3,195) (Gain) loss on sale or disposal of real estate and other assets, net (108) — (38,124) — — (38,232) — (Gain) loss on extinguishment of debt 1,521 — — — — 1,521 — Selling profit from sales-type leases — — — — (13,537) — (13,537) Provision for impairment — — 48,738 — — 48,738 — Impact of straight-line rent 1,766 (3,248) (3,103) (1,096) (2,529) (4,585) (7,911) Other 69 (119) 173 412 477 123 259 Total Operating Assets NOI - Consolidated 35,895 38,914 59,028 46,275 54,284 133,837 159,340 Redevelopments 110 North Wacker (11) 10 1 1 2 — 4 Total Operating Asset Redevelopments NOI (11) 10 1 1 2 — 4 Dispositions 100 Fellowship Drive 38 73 (1,123) (1,051) (1,163) (1,012) (1,163) Total Operating Asset Dispositions NOI 38 73 (1,123) (1,051) (1,163) (1,012) (1,163) Consolidated Operating Assets NOI excluding properties sold or in redevelopment 35,922 38,997 57,906 45,225 53,123 132,825 158,181 Company's Share NOI - Equity Investees 2,315 1,836 2,237 2,123 2,043 6,388 5,195 Distributions from Summerlin Hospital Investment — — 3,724 — — 3,724 3,625 Total Operating Assets NOI $ 38,237 $ 40,833 $ 63,867 $ 47,348 $ 55,166 $ 142,937 $ 167,001 (a) EBT excludes corporate expenses and other items that are not allocable to the segments. HowardHughes.com 214.741.7744 31


 
Reconciliation of Non-GAAP Measures (con't) Reconciliation of Non-GAAP Measures Reconciliation of Seaport District segment EBT to Total NOI: thousands Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 YTD Q3 2020 YTD Q3 2019 Total Seaport District segment EBT (a) $ (27,646) $ (24,636) $ (35,956) $ (12,464) $ (16,656) $ (88,238) $ (46,778) Add back: Depreciation and amortization 7,174 6,776 20,875 6,668 6,767 34,825 19,713 Interest expense, net 2,811 4,626 5,053 4,425 4,984 12,490 8,440 Equity in (earnings) losses from real estate and other affiliates 288 6,633 2,043 804 705 8,964 1,788 (Gain) loss on sale or disposal of real estate — — — — — — 6 (Gain) loss on extinguishment of debt 11,645 — — (4,851) — 11,645 — Impact of straight-line rent 1,027 1,208 125 (24) 412 2,360 1,658 Other (income) loss, net (b) (1,398) 1,953 3,970 190 896 4,525 5,405 Total Seaport District NOI - Consolidated (6,099) (3,440) (3,890) (5,252) (2,892) (13,429) (9,768) Company's Share NOI - Equity Investees (106) (305) (376) (325) (148) (787) (385) Total Seaport District NOI $ (6,205) $ (3,745) $ (4,266) $ (5,577) $ (3,040) $ (14,216) $ (10,153) (a) EBT excludes corporate expenses and other items that are not allocable to the segments. (b) Includes miscellaneous development-related items as well as the loss related to the write-off of inventory due to the permanent closure of 10 Corso Como Retail and Café in the first quarter of 2020, and income related to inventory liquidation sales in the third quarter of 2020. HowardHughes.com 214.741.7744 32


 
Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures thousands Three Months Ended September 30, Nine Months Ended September 30, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2020 2019 2020 2019 Total residential land sales closed in period $ 31,059 $ 84,608 $ 117,926 $ 183,335 Total commercial land sales closed in period 69 — 2,164 — Net recognized (deferred) revenue: Bridgeland — — (305) 34 Summerlin 5,810 (7,244) 13,165 (6,769) Total net recognized (deferred) revenue 5,810 (7,244) 12,860 (6,735) Special Improvement District bond revenue 2,310 4 3,103 401 Total land sales revenue - GAAP basis $ 39,248 $ 77,368 $ 136,053 $ 177,001 thousands Three Months Ended September 30, Nine Months Ended September 30, Reconciliation of MPC Segment EBT to MPC Net Contribution 2020 2019 2020 2019 MPC segment EBT $ 36,621 $ 62,109 $ 122,929 $ 149,868 Plus: Cost of sales - land 15,899 33,304 58,560 78,128 Depreciation and amortization 91 88 273 334 MUD and SID bonds collections, net (101) 10,099 5,957 11,080 Distributions from real estate and other affiliates 1,186 1,320 3,531 4,061 Less: MPC development expenditures (43,833) (60,890) (160,217) (180,733) MPC land acquisitions — — — (752) Equity in losses (earnings) in real estate and other affiliates 1,563 (4,523) (4,403) (18,859) MPC Net Contribution $ 11,426 $ 41,507 $ 26,630 $ 43,127 thousands Three Months Ended September 30, Nine Months Ended September 30, Reconciliation of Segment EBTs to Net Income 2020 2019 2020 2019 Operating Assets segment EBT $ (28,831) $ 19,825 $ (53,717) $ 38,139 MPC segment EBT 36,621 62,109 122,929 149,868 Seaport District segment EBT (27,646) (16,656) (88,238) (46,778) Strategic Developments segment EBT 274,582 25,958 168,658 99,947 Corporate income, expenses and other items (46,577) (52,475) (141,612) (141,673) (Loss) income before taxes 208,149 38,761 8,020 99,503 Provision for income taxes (44,147) (8,718) (3,203) (24,207) Net (loss) income 164,002 30,043 4,817 75,296 Net loss (income) attributable to noncontrolling interests (24,292) (285) (24,325) (240) Net (loss) income attributable to common stockholders $ 139,710 $ 29,758 $ (19,508) $ 75,056 HowardHughes.com 214.741.7744 33


 
v3.20.2
Cover Page Cover Page
Nov. 05, 2020
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 05, 2020
Entity Registrant Name THE HOWARD HUGHES CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-34856
Entity Tax Identification Number 36-4673192
Entity Address, Address Line One 9950 Woodloch Forest Drive, Suite 1100
Entity Address, City or Town The Woodlands
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77381
City Area Code (214)
Local Phone Number 741-7744
Title of 12(b) Security Common stock $0.01 par value per share
Trading Symbol HHC
Security Exchange Name NYSE
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001498828
Amendment Flag false