Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - Howard Hughes Corp | hhcearningsreleaseq42019.htm |
| 8-K - 8-K - Howard Hughes Corp | form8kq42019.htm |
Exhibit 99.2 Seaport District The Woodlands Towers at the Waterway 6100 Merriweather New York, NY The Woodlands, TX Columbia, MD Supplemental Information Three Months Ended December 31, 2019 NYSE: HHC The Howard Hughes Corporation, 13355 Noel Road, 22nd Floor, Dallas, TX 75240 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. 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 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 Properties 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 - Q4 2019 Recent Company Highlights Exchange / Ticker NYSE: HHC THE WOODLANDS, Dec. 30, 2019 (PRNewswire) -- The Howard Hughes Corporation (HHC) announced the acquisition of two Class AAA office towers, warehouse space and developable land in The Woodlands, Texas, from Occidental (NYSE: OXY), providing highly sought-after, Share Price - December 31, 2019 $ 126.80 premium office space that will enable HHC to meet ongoing demand in the market. The acquisition increases The Howard Hughes Corporation's office portfolio within the award-winning master planned community (MPC) by approximately 50%, and reinforces HHC's standing as the Diluted Earnings / Share $ (0.03) community's steward and largest stakeholder. DALLAS, Oct. 21, 2019 (PRNewswire) -- Following a review of strategic alternatives, HHC FFO / Diluted Share $ 0.91 announced a Transformation Plan, led by new executive leadership, comprised of three pillars: (1) a $45 - $50 million per annum reduction in overhead expenses, (2) the sale of approximately $2 billion of non-core assets, and (3) accelerated growth in HHC's core MPC assets. Paul Layne, Core FFO / Diluted Share $ 1.90 was named Chief Executive Officer, replacing David R. Weinreb on the Board of Directors. David R. Weinreb and Grant Herlitz stepped down from HHC. AFFO / Diluted Share $ 1.84 Operating Portfolio by Region Q4 2019 MPC & Condominium Results $ in millions Woodlands/ Woodlands Hills 3% Bridgeland 4Q19 11% 4Q19 MPC Condo Kō'ula EBT ‘A‘ali‘i sales 88% 12% $112.1M 26 units Summerlin 86% Q4 2019 MPC EBT Q4 2019 Condo Units Contracted Bridgeland $ 12.0 Waiea — Columbia (0.3) Anaha — Summerlin 96.7 ‘A‘ali‘i 3 Woodlands/Woodlands Hills 3.7 Kō'ula 23 Total $ 112.1 Total 26 HowardHughes.com 214.741.7744 4
Company Profile - Summary & Results (cont'd) Company Profile - Summary & Results (con't) Q4 2019 Path to Projected Annual Stabilized NOI Currently Under Construction Currently Unstabilized Currently Stabilized Total $ in millions $ in millions $ in millions $ in millions Hotel Retail Other 2% Other 5% Hotel Hotel 5% 9% 31% 9% Projected Office 40% Retail Projected Projected Projected Stabilized 4% Stabilized Stabilized Office Retail Stabilized Office Retail NOI NOI 48% 21% NOI 48% 29% NOI Multi- $47.0M Multi- $86.7M $233.6M $367.3M family family 55% 14% Office 51% Multi- Multi-family family 17% 11% Retail & Office S.F. 1,806,581 Retail & Office S.F. 1,739,632 Retail & Office S.F. 7,281,997 Retail & Office S.F. 10,828,210 Multi-family Units 1,291 Multi-family Units 1,016 Multi-family Units 1,893 Multi-family Units 4,200 Hotel Keys — Hotel Keys 704 Hotel Keys 205 Hotel Keys 909 Other S.F. / Units — / — Other S.F. / Units — / — Other S.F. / Units 135,801 / 1,374 Other S.F. / Units 135,801 / 1,374 Projected Stabilized NOI $ 47.0 Projected Stabilized NOI $ 86.7 Projected Stabilized NOI $ 233.6 Projected Stabilized NOI $ 367.3 Q4 2019 Operating Results by Property Type Currently Under Construction Currently Unstabilized Currently Stabilized Total $ in millions $ in millions $ in millions $ in millions Hotel 3% Hotel 11% 4Q19 Hotel Office 53% 49% Under 4Q19 4Q19 4Q19 Construction Unstabilized Stabilized Total Office NOI Office NOI Retail NOI 47% NOI 30% $7.9M 32% Retail $40.5M $0.0M 36% $48.4M Multi- Multi- Multi- family family family 15% 12% 12% Path to Projected Annual Stabilized NOI charts exclude Seaport NOI, units, and square footage until we have greater clarity with respect to the performance of our tenants. See page 17 for Seaport NOI Yield and other project information. See page 30 for definitions of "Under Construction," "Unstabilized," "Stabilized" and "Net Operating Income (NOI)." HowardHughes.com 214.741.7744 5
Financial Summary Financial Summary ($ in thousands, except share price and billions) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 YTD 2019 YTD 2018 Company Profile Share price (a) $ 126.80 $ 129.60 $ 123.84 $ 110.00 $ 97.62 $ 126.80 $ 97.62 Market Capitalization (b) $ 5.4b $ 5.6b $ 5.4b $ 4.8b $ 4.2b $ 5.4b $ 4.2b Enterprise Value (c) $ 9.3b $ 8.8b $ 8.3b $ 7.7b $ 7.0b $ 9.3b $ 7.0b Weighted avg. shares - basic 43,190 43,134 43,113 43,106 43,075 43,136 43,036 Weighted avg. shares - diluted 43,356 43,428 43,271 43,257 43,250 43,308 43,237 Total diluted share equivalents outstanding 42,673 43,426 43,223 43,223 43,077 42,678 43,109 Debt Summary Total debt payable (d) $ 4,138,618 $ 3,665,263 $ 3,465,714 $ 3,274,379 $ 3,215,211 $ 4,138,618 $ 3,215,211 Fixed-rate debt $ 1,908,660 $ 2,011,626 $ 1,904,165 $ 1,675,207 $ 1,663,875 $ 1,908,660 $ 1,663,875 Weighted avg. rate - fixed 5.05% 5.11% 5.18% 5.06% 5.17% 5.05% 5.17% Variable-rate debt, excluding condominium financing $ 2,199,241 $ 1,625,792 $ 1,561,549 $ 1,494,918 $ 1,454,579 $ 2,199,241 $ 1,454,579 Weighted avg. rate - variable 4.32% 4.54% 4.79% 4.85% 4.88% 4.32% 4.88% Condominium debt outstanding at end of period $ 30,717 $ 27,846 $ — $ 104,254 $ 96,757 $ 30,717 $ 96,757 Weighted avg. rate - condominium financing 4.83% 5.12% N/A 5.74% 5.75% 4.83% 5.75% Leverage ratio (debt to enterprise value) 44.19% 41.17% 41.17% 42.16% 45.49% 44.19% 45.47% (a) Presented as of period end date. (b) Market capitalization = Closing share price as 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 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) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 FY 2019 FY 2018 Earnings Profile Operating Assets Segment Income Revenues $ 93,639 $ 101,694 $ 106,604 $ 89,107 $ 80,940 $ 391,044 $ 335,145 Expenses (47,363) (47,408) (47,899) (42,754) (37,807) (185,424) (163,046) Company's Share NOI - Equity investees 2,123 2,043 1,688 5,089 1,952 10,943 8,096 Operating Assets NOI (a) 48,399 56,329 60,393 51,442 45,085 216,563 180,195 Avg. NOI margin 52% 55% 57% 58% 56% 55% 54% MPC Segment Earnings Total revenues $ 170,739 $ 92,287 $ 72,859 $ 50,896 $ 47,786 $ 386,781 $ 309,451 Total expenses (b) (75,742) (44,723) (40,406) (28,679) (25,864) (189,550) (169,699) Interest (expense) income, net (c) 7,643 8,550 8,283 7,543 7,093 32,019 26,919 Equity in earnings in real estate and other affiliates 9,477 4,523 6,499 7,837 1,602 28,336 36,284 MPC Segment EBT (c) 112,117 60,637 47,235 37,597 30,617 257,586 202,955 Seaport District Segment Income (d) Revenues $ 11,550 $ 22,389 $ 12,325 $ 6,586 $ 9,278 $ 52,850 $ 28,879 Expenses (16,802) (25,281) (15,212) (10,571) (12,793) (67,870) (34,357) Company's Share NOI - Equity investees (325) (148) (42) (195) (134) (710) (713) Seaport District NOI (e) (5,577) (3,040) (2,929) (4,180) (3,649) (15,730) (6,191) Avg. NOI margin (48%) (14%) (24%) (63%) (39%) (30%) (21%) Condo Gross Profit Revenues (f) $ 5,009 $ 9,999 $ 235,622 $ 198,310 $ 317,953 $ 448,940 $ 357,720 Expenses (f) (4,435) (7,010) (220,620) (137,694) (220,849) (369,759) (262,562) Condo Net Income (f) 574 2,989 15,002 60,616 97,104 79,181 95,158 (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 fiscal 2019 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) Starting in the first quarter of 2019, the Seaport District has been moved out of our other segments and into a stand-alone segment for disclosure purposes. Segment information for all periods presented has been updated to reflect this change. (e) 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. See page 17 for additional detail. (f) Revenues in 2019 and 2018 represent Condominium rights and unit sales and expenses represent Condominium rights and unit cost of sales as stated in our GAAP financial statements, based on the new revenue standard adopted January 1, 2018. HowardHughes.com 214.741.7744 7
Balance Sheets (In thousands, except par values and share amounts) FY 2019 FY 2018 Assets: Unaudited Unaudited Investment in real estate: Master Planned Communities assets $ 1,655,674 $ 1,642,660 Buildings and equipment 3,813,595 2,932,963 Less: accumulated depreciation (507,933) (380,892) Land 353,022 297,596 Developments 1,445,997 1,290,068 Net property and equipment 6,760,355 5,782,395 Investment in real estate and other affiliates 121,757 102,287 Net investment in real estate 6,882,112 5,884,682 Net investment in lease receivable 79,166 — Cash and cash equivalents 422,857 499,676 Restricted cash 197,278 224,539 Accounts receivable, net 12,279 12,589 Municipal Utility District receivables, net 280,742 222,269 Notes receivable, net 36,379 4,694 Deferred expenses, net 133,182 95,714 Operating lease right-of-use assets, net 69,398 — Prepaid expenses and other assets, net 300,373 411,636 Total assets $ 8,413,766 $ 7,355,799 Liabilities: Mortgages, notes and loans payable, net $ 4,096,470 $ 3,181,213 Operating lease obligations 70,413 — Deferred tax liabilities 180,748 157,188 Accounts payable and accrued expenses 733,147 779,272 Total liabilities 5,080,778 4,117,673 Equity: Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued — — Common stock: $.01 par value; 150,000,000 shares authorized, 43,635,893 issued and 42,585,633 outstanding as of December 31, 2019, and 43,511,473 shares issued and 42,991,624 outstanding as of December 31, 2018 437 436 Additional paid-in capital 3,343,983 3,322,433 Accumulated deficit (46,385) (120,341) Accumulated other comprehensive loss (29,372) (8,126) Treasury stock, at cost, 1,050,260 and 519,849 shares as of December 31, 2019 and 2018 (120,530) (62,190) Total stockholders' equity 3,148,133 3,132,212 Noncontrolling interests 184,855 105,914 Total equity 3,332,988 3,238,126 Total liabilities and equity $ 8,413,766 $ 7,355,799 Share Count Details (In thousands) Shares outstanding at end of period (including restricted stock) 42,586 42,992 Dilutive effect of stock options (a) 88 117 Dilutive effect of warrants (b) 4 — Total diluted share equivalents outstanding 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 (In thousands, except per share amounts) Q4 2019 Q4 2018 FY 2019 FY 2018 Revenues: Unaudited Unaudited Unaudited Unaudited Condominium rights and unit sales $ 5,009 $ 317,953 $ 448,940 $ 357,720 Master Planned Communities land sales 153,145 35,178 330,146 261,905 Minimum rents 57,551 54,159 221,907 207,315 Tenant recoveries 13,986 12,185 54,710 49,993 Hospitality revenues 19,328 17,299 87,864 82,037 Builder price participation 11,457 7,691 35,681 27,085 Other land revenues 6,753 5,326 23,399 21,314 Other rental and property revenues 15,831 14,902 95,703 57,168 Interest income from sales-type leases 1,101 — 2,189 — Total revenues 284,161 464,693 1,300,539 1,064,537 Expenses: Condominium rights and unit cost of sales 4,435 220,849 369,759 262,562 Master Planned Communities cost of sales 63,724 14,605 141,852 124,214 Master Planned Communities operations 11,927 11,261 47,875 45,217 Other property operating costs 43,422 41,914 175,230 133,761 Rental property real estate taxes 8,276 8,035 36,861 32,183 Rental property maintenance costs 5,548 4,209 17,410 15,813 Hospitality operating costs 13,916 13,488 60,226 59,195 (Recovery of) provision for doubtful accounts (219) 1,661 (414) 6,078 Demolition costs 118 1,163 855 17,329 Development-related marketing costs 6,193 8,765 23,067 29,249 General and administrative 68,328 32,830 156,251 104,625 Depreciation and amortization 40,656 38,167 155,798 126,565 Total expenses 266,324 396,947 1,184,770 956,791 Other: (Loss) gain on sale or disposal of real estate and other assets, net (1,689) (4) 22,362 (4) Other income (loss), net 381 2,508 12,179 (936) Total other (1,308) 2,504 34,541 (940) Operating income 16,529 70,250 150,310 106,806 Selling (loss) profit from sales-type leases — — 13,537 — Interest income 2,101 1,727 9,797 8,486 Interest expense (29,016) (24,846) (105,374) (82,028) Gain on extinguishment of debt 4,641 — 4,641 — Equity in earnings from real estate and other affiliates 9,782 657 30,629 39,954 Income before taxes 4,037 47,788 103,540 73,218 Provision (benefit) for income taxes 5,038 9,864 29,245 15,492 Net income (1,001) 37,924 74,295 57,726 Net income attributable to noncontrolling interests (99) (663) (339) (714) Net income attributable to common stockholders $ (1,100) $ 37,261 $ 73,956 $ 57,012 Basic income per share: $ (0.03) $ 0.87 $ 1.71 $ 1.32 Diluted income per share: $ (0.03) $ 0.86 $ 1.71 $ 1.32 HowardHughes.com 214.741.7744 9
Reconciliations of Net Income to FFO, Core FFO and AFFO (In thousands, except share amounts) Q4 2019 Q4 2018 FY 2019 FY 2018 RECONCILIATIONS OF NET INCOME TO FFO Unaudited Unaudited Unaudited Unaudited Net income attributable to common shareholders $ (1,100) $ 37,261 $ 73,956 $ 57,012 Adjustments to arrive at FFO: Segment real estate related depreciation and amortization 38,454 35,880 147,777 119,309 Loss (gain) on sale or disposal of real estate, net 1,689 4 (22,362) 4 Selling profit from sales-type leases — — (13,537) — Income tax expense adjustments: Loss (gain) on sale or disposal of real estate, net (389) — 5,479 — Selling profit from sales-type leases (460) — 2,843 — Reconciling items related to noncontrolling interests 99 663 339 714 Our share of the above reconciling items included in earnings from unconsolidated joint ventures 1,014 798 3,688 2,679 FFO $ 39,307 $ 74,606 $ 198,183 $ 179,718 Adjustments to arrive at Core FFO: Gain on extinguishment of debt $ (4,641) $ — $ (4,641) $ — Severance expenses 26,054 267 29,144 687 Non-real estate related depreciation and amortization 2,202 2,288 8,021 7,256 Straight-line amortization (1,107) (2,505) (7,364) (12,609) Deferred income tax expense 4,627 11,574 27,816 16,195 Non-cash fair value adjustments related to hedging instruments 791 127 770 (1,135) Share-based compensation 8,456 3,011 17,349 11,242 Other non-recurring expenses (development-related marketing and demolition costs) 6,311 9,929 23,922 46,579 Our share of the above reconciling items included in earnings from unconsolidated joint ventures 89 95 190 306 Core FFO $ 82,089 $ 99,392 $ 293,390 $ 248,239 Adjustments to arrive at AFFO: Tenant and capital improvements $ (1,236) $ (3,583) $ (5,237) $ (14,267) Leasing commissions (1,603) (1,906) (4,192) (3,600) AFFO $ 79,250 $ 93,903 $ 283,961 $ 230,372 FFO per diluted share value $ 0.91 $ 1.72 $ 4.58 $ 4.16 Core FFO per diluted share value $ 1.90 $ 2.30 $ 6.77 $ 5.74 AFFO per diluted share value $ 1.84 $ 2.17 $ 6.56 $ 5.33 HowardHughes.com 214.741.7744 10
NOI by Region, excluding the Seaport District ($ in thousands, except Sq. Ft. and units) % Total Q4 2019 Occupied (#) Q4 2019 Leased (#) Q4 2019 Occupied (%) Q4 2019 Leased (%) Q4 2019 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% 2,819,603 — 2,702,768 — 2,757,344 — 96% —% 98% —% $ 47,202 $ 77,070 — Office - Columbia 100% 1,255,741 — 1,172,444 — 1,195,799 — 93% —% 95% —% 20,263 22,479 — Office - Summerlin 100% 532,428 — 528,131 — 528,131 — 99% —% 99% —% 13,761 13,700 — Retail - Houston 100% 436,401 — 394,195 — 395,449 — 90% —% 91% —% 11,164 13,271 — Retail - Columbia 100% 89,199 — 89,199 — 89,199 — 100% —% 100% —% 2,392 2,200 — Retail - Hawaii 100% 1,019,667 — 968,414 — 971,799 — 95% —% 95% —% 21,153 22,407 — Retail - Other 100% 268,556 — 246,088 — 267,036 — 92% —% 99% —% 5,459 6,500 — Retail - Summerlin 100% 823,531 — 770,923 — 770,923 — 94% —% 94% —% 23,286 26,300 — Multi-Family - Houston (d) 100% 23,280 1,389 23,126 1,263 23,126 1,293 99% 91% 99% 93% 18,568 19,800 — Multi-Family - Columbia (d) 50% 13,591 380 11,471 362 11,471 374 84% 95% 84% 98% 2,959 2,900 — Multi-Family - Summerlin (d) 100% — 124 — 111 — 118 —% 90% —% 95% 2,117 2,200 — Hospitality - Houston (e) 100% — 205 — 167 — — —% 81% —% —% 5,612 4,500 — Self-Storage - Houston 100% — 1,374 — 1,152 — 1,161 —% 84% —% 84% 728 600 — Other - Summerlin 100% — — — — — — —% —% —% —% 12,107 12,183 — Other Assets (f) 100% 135,801 — 135,801 — 135,801 — 100% —% 100% —% 5,831 7,486 — Total Stabilized Properties (g) 192,602 233,596 — Unstabilized Properties Office - Houston 100% 1,174,727 — 1,084,769 — 1,101,503 — 92% —% 94% —% 8,050 31,958 2.9 Office - Columbia 100% 448,567 — 92,141 — 272,845 — 21% —% 61% —% 676 12,300 3.5 Retail - Houston 100% 72,264 — — — 42,389 — —% —% 59% —% — 2,200 3.0 Retail - Hawaii 100% 16,048 — 12,663 — 16,048 — 79% —% 100% —% 148 1,152 0.5 Multi-Family - Houston (d) 100% — 312 — 65 — 102 —% 21% —% 33% — 3,875 1.0 Multi-Family - Columbia (d) 50% 28,026 437 13,544 390 28,026 413 48% 89% 100% 95% 3,631 3,800 1.0 Multi-Family - Summerlin (d) 100% — 267 — 128 — 150 —% 48% —% 56% 1,978 4,400 1.0 Hospitality - Houston (e) 100% — 704 — 453 — — —% 64% —% —% 23,219 27,000 1.0 Total Unstabilized Properties $ 37,702 $ 86,685 2.4 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 Q4 2019 Occupied (#) Q4 2019 Leased (#) Q4 2019 Occupied (%) Q4 2019 Leased (%) Q4 2019 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 Office - Houston 100% 180,000 — — — 180,000 — —% —% 100% —% $ — $ 4,400 1.0 Office - Other 23% 1,500,000 — — — 1,110,000 — —% —% 74% —% — 14,421 4.0 Retail - Hawaii 100% 47,750 — — — 1,688 — —% —% 4% —% — 1,918 3.7 Retail - Columbia 100% 10,700 — — — 10,700 — —% —% 100% —% — 400 2.0 Multi-Family - Houston (d) 100% 11,448 909 — — 6,146 — —% —% 54% —% — 16,726 4.1 Multi-Family - Columbia (d) 100% 56,683 382 — — 11,080 — —% —% 20% —% — 9,162 4.0 Total Under Construction Properties — 47,027 3.6 Total/ Wtd. Avg. for Portfolio $ 230,304 $ 367,308 3.1 (a) Includes our share of NOI for our joint ventures. (b) Annualized 4Q19 NOI includes distribution received from cost method investment in 1Q19. 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 Q4 2019. (f) Other assets are primarily made up of the Las Vegas Ballpark, equity method investments, ground leases and self-storage/warehouse facilities. These assets can be found on page 14 of this presentation. (g) For Stabilized Properties, the difference between 4Q19 Annualized NOI and Stabilized NOI is attributable to a number of factors which may include timing, free rent or other temporary abatements, tenant turnover and market factors. HowardHughes.com 214.741.7744 12
Stabilized Properties - Operating Assets Segment Stabilized Properties ($ in thousands, except Sq. Ft. and units) Rentable Q4 2019 Q4 2019 Annualized Q4 Est. Stabilized Property Location % Ownership Sq. Ft./Units % Occ. % Leased 2019 NOI NOI Office 3 Waterway Square Houston, TX 100% 232,021 100% 100% $ 6,586 $ 6,900 4 Waterway Square Houston, TX 100% 218,551 100% 100% 6,801 6,856 100 Fellowship Drive Houston, TX 100% 203,257 100% 100% 4,206 5,100 1201 Lake Robbins Tower (a) Houston, TX 100% 807,586 100% 100% 433 25,000 1400 Woodloch Forest Houston, TX 100% 95,667 64% 78% 1,111 1,900 1725 Hughes Landing Houston, TX 100% 331,754 95% 95% 5,935 6,900 1735 Hughes Landing Houston, TX 100% 318,170 100% 100% 7,650 7,696 2201 Lake Woodlands Drive Houston, TX 100% 24,119 100% 100% 518 410 3831 Technology Forest Houston, TX 100% 95,078 100% 100% 2,303 2,268 9303 New Trails Houston, TX 100% 97,967 79% 87% 696 1,800 One Hughes Landing Houston, TX 100% 197,719 81% 98% 6,161 6,240 Two Hughes Landing Houston, TX 100% 197,714 97% 97% 4,803 6,000 10-70 Columbia Corporate Center Columbia, MD 100% 888,219 93% 95% 13,433 14,330 Columbia Office Properties Columbia, MD 100% 62,038 89% 89% 946 1,402 One Mall North Columbia, MD 100% 98,619 97% 97% 1,721 1,947 One Merriweather Columbia, MD 100% 206,865 93% 97% 4,163 4,800 Aristocrat Las Vegas, NV 100% 181,534 100% 100% 3,722 4,500 One Summerlin Las Vegas, NV 100% 206,279 99% 99% 6,396 5,700 Two Summerlin Las Vegas, NV 100% 144,615 98% 98% 3,643 3,500 Total Office 4,607,772 81,227 113,249 Retail 20/25 Waterway Avenue Houston, TX 100% 50,062 73% 76% 1,106 2,013 1701 Lake Robbins Houston, TX 100% 12,376 100% 100% 502 400 2000 Woodlands Parkway Houston, TX 100% 7,900 100% 100% (27) 217 Creekside Village Green Houston, TX 100% 74,670 89% 89% 1,888 2,097 Hughes Landing Retail Houston, TX 100% 126,131 100% 100% 4,146 4,375 Lakeland Village Center Houston, TX 100% 83,488 88% 88% 1,665 1,700 Lake Woodlands Crossing Retail Houston, TX 100% 60,261 91% 91% 1,415 1,668 Waterway Garage Retail Houston, TX 100% 21,513 78% 78% 468 800 Columbia Regional Columbia, MD 100% 89,199 100% 100% 2,392 2,200 Ward Village Retail Honolulu, HI 100% 1,019,667 95% 95% 21,153 22,407 Downtown Summerlin Las Vegas, NV 100% 823,531 94% 94% 23,286 26,300 Outlet Collection at Riverwalk New Orleans, LA 100% 268,556 92% 99% 5,459 6,500 Total Retail 2,637,354 63,453 70,677 HowardHughes.com 214.741.7744 13
Stabilized Properties - Operating Assets Segment (con't) Stabilized Properties (cont'd) ($ in thousands, except Sq. Ft. and units) Rentable Sq. Ft. / Q4 2019 % Occ. Q4 2019 % Annualized Est. Stabilized Property Location % Ownership Units (b) (b) Leased (b) Q4 2019 NOI NOI Multi-family Millennium Six Pines Apartments Houston, TX 100% — / 314 90% 92% $ 4,384 $ 4,500 Millennium Waterway Apartments Houston, TX 100% — / 393 91% 95% 4,262 4,600 One Lakes Edge Houston, TX 100% 23,280 / 390 99% / 92% 99% / 93% 7,595 7,200 Creekside Park Apartments Houston, TX 100% — / 292 91% 92% 2,327 3,500 The Metropolitan Downtown Columbia Columbia, MD 50% 13,591 / 380 84% / 95% 84% / 98% 2,959 2,900 Constellation Las Vegas, NV 100% — / 124 90% 95% 2,117 2,200 Total Multi-family 36,871 / 1,893 23,644 24,900 Hotel Embassy Suites at Hughes Landing (c) Houston, TX 100% 205 81% 81% 5,612 (d) 4,500 Total Hotel 205 5,612 4,500 Other Hughes Landing Daycare Houston, TX 100% 10,000 / — 100% 100% 170 260 The Woodlands Warehouse (e) Houston, TX 100% 125,801 / — 100% 100% 25 1,200 Self-Storage 242 & 2978 Houston, TX 100% — / 1,374 84% 84% 728 600 Sarofim Equity Investment Houston, TX 20% NA NA NA 2,044 2,202 Stewart Title of Montgomery County, TX Houston, TX 50% NA NA NA 1,332 1,117 Woodlands Ground Leases Houston, TX 100% NA NA NA 1,784 1,662 Kewalo Basin Harbor Honolulu, HI 100% NA NA NA 625 1,100 Hockey Ground Lease Las Vegas, NV 100% NA NA NA 382 458 Summerlin Hospital Medical Center Las Vegas, NV 5% NA NA NA 3,625 3,625 Las Vegas Ballpark (f) Las Vegas, NV 100% NA NA NA 8,100 (d) 8,100 Other Assets Various 100% NA NA NA (149) (54) Total Other 135,801 / 1,374 18,666 20,270 Total Stabilized $ 192,602 $ 233,596 (a) 1201 Lake Robbins Tower and 9950 Woodloch Forest Tower, collectively known as The Woodlands Towers at the Waterway, were acquired on December 30, 2019. See page 21 of this supplement. 9950 Woodloch Forest Tower is an unstabilized property as of December 31, 2019. See page 15 for further details. (b) Instances with two sets of rentable sq. ft/units, % occupied and % leased relate to multi-family assets with a retail component. In these cases, the first set of numbers relate to the retail asset and the second set relate to the multi-family asset. (c) Hotel property percentage occupied is the average for Q4 2019. (d) Annualized NOI for these properties are based on a trailing 12-month calculation due to seasonality of the respective businesses. (e) The Woodlands Warehouse was acquired on December 30, 2019. See page 21 for further details. (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) Est. % Rentable Sq. Q4 2019 % Q4 2019 % Develop. Costs Est. Total Cost Annualized Stabilized Est. Stab. Est. Stab. Project Name Location Ownership Ft. / Units Occ. (a) Leased (a) Incurred (Excl. Land) Q4 2019 NOI NOI (b) Date Yield Office Three Hughes Landing Houston, TX 100% 320,815 82% 87% $ 81,057 $ 90,133 $ 6,944 $ 7,600 Q4 2020 8% Lakefront North (c) Houston, TX 100% 258,058 88% 88% 55,070 77,879 781 6,458 2021 8% 9950 Woodloch Forest Tower (c) (d) Houston, TX 100% 595,854 100% 100% 148,972 210,571 325 17,900 2023 9% 6100 Merriweather Columbia, MD 100% 318,545 —% 50% 83,228 138,221 (189) 9,200 2023 7% Two Merriweather Columbia, MD 100% 130,022 71% 87% 34,679 40,941 865 3,100 2021 8% Total Office 1,623,294 403,006 557,745 8,726 44,258 Retail Creekside Park West Houston, TX 100% 72,264 —% 59% 12,580 22,625 — 2,200 2022 10% Anaha Retail (e) Honolulu, HI 100% 16,048 79% 100% — — 148 1,152 Q2 2020 n.a. Total Retail 88,312 12,580 22,625 148 3,352 Multi-family m.flats & TEN.M Columbia, MD 50% 28,026 / 437 48% / 89% 100% / 95% 53,979 54,673 3,631 3,800 Q4 2020 7% Lakeside Row Houston, TX 100% 312 21% 33% 37,039 48,412 — 3,875 2021 8% Tanager Apartments Las Vegas, NV 100% 267 48% 56% 49,862 59,276 1,978 4,400 Q3 2020 7% Total Multi-family 28,026 / 1,016 140,880 162,361 5,609 12,075 Hotel The Woodlands Resort & Conference Center Houston, TX 100% 402 53% 53% 72,360 72,360 13,666 (f) 16,500 Q4 2020 8% The Westin at The Woodlands Houston, TX 100% 302 79% 79% 98,226 98,444 9,553 (f) 10,500 Q4 2020 11% Total Hotel 704 170,586 170,804 23,219 27,000 Total Unstabilized $ 727,052 $ 913,535 $ 37,702 $ 86,685 (a) With the exception of Hotel properties, Percentage Occupied and Percentage Leased are as of December 31, 2019. Each Hotel property Percentage Occupied is the average for Q4 2019. Instances with two sets of rentable sq. ft/ units, % occupied and % leased relate to multi-family assets with a retail component. In these cases, the first set of numbers relate to the retail asset and the second set relate to the multi-family asset. (b) Company estimates of stabilized NOI are based on current leasing velocity, excluding inflation and organic growth. (c) Lakefront North and 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 as referenced on page 21 of this supplement. 1201 Lake Robbins Tower is a stabilized property as of December 31, 2019. See page 13 for further details. (e) Condominium retail Develop. Cost Incurred and Est. Total Cost (Excl. Land) are combined with their respective condominium costs on page 23 of this supplement. (f) Annualized NOI for these properties are based on a trailing 12-month calculation due to seasonality of the hotel business. HowardHughes.com 214.741.7744 15
Under Construction Projects - Strategic Developments Segment Under Construction Properties ($ in thousands, except Sq. Ft. and units) (Owned & Managed) Project % Est. Rentable Percent Pre- Const. Est. Stabilized Develop. Est. Total Cost Est. Stabilized Est. Stab. Name Location Ownership Sq. Ft. Leased (a) Project Status Start Date Date (b) Costs Incurred (Excl. Land) NOI Yield Office 110 North Wacker (c) Chicago, IL 23% (d) 1,500,000 74% Under Construction Q2 2018 2023 $ 16,078 $ 16,078 $ 14,421 8% 8770 New Trails Houston, TX 100% 180,000 100% Under Construction Q1 2019 2020 23,038 45,985 4,400 10% Total Office 1,680,000 39,116 62,063 18,821 Retail A'ali'i (e) Honolulu, HI 100% 11,336 —% Under Construction Q4 2018 2022 — — 637 —% Kō'ula (e) Honolulu, HI 100% 36,414 5% Under Construction Q3 2019 2023 — — 1,281 —% Merriweather District Area 3 Standalone Restaurant Columbia, MD 100% 10,700 100% Under Construction Q3 2019 2021 522 5,624 400 7% Total Retail 58,450 522 5,624 2,318 Est. Rentable % Sq. Ft. / # of Monthly Est. Const. Est. Stabilized Develop. Est. Total Cost Est. Stabilized Est. Stab. Project Name Location Ownership Units Rent Per Unit Project Status Start Date Date (b) Costs Incurred (Excl. Land) NOI Yield Multi-family Juniper Apartments (f) Columbia, MD 100% 56,683 / 382 2,053 Under Construction Q2 2018 2023 $ 66,307 $ 116,386 $ 9,162 8% Two Lakes Edge Houston, TX 100% 11,448 / 386 2,690 Under Construction Q2 2018 2024 70,126 107,706 8,529 8% Millennium Phase III Apartments Houston, TX 100% 163 2,595 Under Construction Q2 2019 2021 7,496 45,033 3,500 8% Creekside Park Apartments Phase II Houston, TX 100% 360 1,744 Under Construction Q3 2019 2023 1,736 57,472 4,697 8% Total Multi-family 68,131 / 1,291 145,665 326,597 25,888 Total Under Construction $ 185,303 $ 394,284 $ 47,027 (a) Represents leases signed as of December 31, 2019 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) 110 North Wacker represents our member only. We are not including overhead allocations, development fees and leasing commissions in Develop. Costs Incurred and Est. Total Cost (Excl Land). Est. Total Cost (Excl. Land) represents HHC's total cash equity requirement. Develop. Costs Incurred represent HHC's equity in the project at December 31, 2019. Est. Stabilized NOI Yield is based on the projected building NOI at stabilization and our percentage ownership of the equity capitalization of the project. It does not include the impact of the partnership distribution waterfall. (d) In Q2 2019, we revised the calculation of our effective ownership interest in 110 North Wacker based on the loan modification and joint venture funding commitment changes that occurred in May 2019. As a result of the modification and our reduced future funding commitments, our effective ownership percentage is 23%. Our share of estimated stabilized NOI therefore decreased, but the 8% yield remained unchanged as our funding commitment decreased as well. (e) Condominium retail Develop. Cost Incurred and Est. Total Costs (Excl. Land) are combined with their respective condominium costs on page 23 of this supplement. (f) Columbia Multi-family was renamed to Juniper Apartments as of Q1 2019. HowardHughes.com 214.741.7744 16
Seaport District Operating Performance NOI by Region Real Estate Managed Operations (Landlord) (a) Businesses (b) Events, Sponsorships Historic District & Historic District & & ($ in thousands) Pier 17 Multi-Family (c) Hospitality (d) Pier 17 (e) Tin Building (f) Catering Business (g) Q4 2019 Total Revenues Rental revenue (h) $ 1,632 $ 241 $ 944 $ 1 $ — $ — $ 2,818 Tenant recoveries 188 — — — — — 188 Other rental and property (expense) revenue (21) — — 6,403 — 3,513 9,895 Total Revenues 1,799 241 944 6,404 — 3,513 12,901 Expenses Other property operating costs (h) (4,790) (150) (819) (9,606) — (3,113) (18,478) Total Expenses (4,790) (150) (819) (9,606) — (3,113) (18,478) Net Operating (Loss) Income - Seaport District (i) $ (2,991) $ 91 $ 125 $ (3,202) $ — $ 400 $ (5,577) Project Status Unstabilized Stabilized Unstabilized Unstabilized Under Construction Unstabilized Rentable Sq. Ft. / Units Total Sq. Ft. / units 305,265 13,000 / 21 66 73,488 53,396 21,077 Leased Sq. Ft. / units (j) 127,637 — / 21 57 73,488 53,396 21,077 % Leased or occupied (j) 42% —% / 100% 86% 100% 100% 100% Development (k) Development costs incurred $ 517,561 $ — $ — $ — $ 72,057 $ — $ 589,618 Estimated total costs (excl. land) $ 594,018 $ — $ — $ — $ 173,452 $ — $ 767,470 (a) Real Estate Operations (Landlord) represents physical real estate developed and owned by HHC. (b) Managed Businesses represents retail and food and beverage businesses that HHC owns, either wholly or through joint ventures, and operates, including license and management agreements. For the three months ended December 31, 2019, our managed businesses include, among others, The Fulton, 10 Corso Como Retail and Café, SJP by Sarah Jessica Parker, R17 and Cobble & Co. (c) Multi-Family represents 85 South Street which includes base level retail in addition to residential units. (d) Hospitality represents Mr. C Seaport, of which HHC has a 35% ownership interest. Percentage occupied is the average for Q4 2019. (e) Includes our 90% share of NOI from Bar Wayō. (f) Represents the food hall by Jean-Georges. (g) Events, Sponsorships & Catering Business includes private events, catering, sponsorships, concert series and other rooftop activities. (h) Rental revenue and expense earned from and paid by businesses we own and operate is eliminated in consolidation. (i) See page 32 for the reconciliation of Seaport District NOI. (j) 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. (k) Development costs incurred and Estimated total costs (excl. land) are shown net of insurance proceeds of approximately $65.0 million. HowardHughes.com 214.741.7744 17
MPC Portfolio Commercial 22% Commercial Master Planned 40% Commercial Communities- Remaining Residential 100% Saleable Acres (a) Residential 60% 78% Unstabilized 14% Stabilized Income Producing Assets - Stabilized Unstabilized 44% Stabilized and Unstabilized 46% Unstabilized 54% 56% Stabilized 86% ($ in thousands) Nevada Texas Maryland Total (c) MPC Performance - 4Q19 & 4Q18 MPC Net Contribution (4Q19) (b) $ 106,235 $ 27,275 $ (317) $ 133,193 MPC Net Contribution (4Q18) (b) $ 6,057 $ 25,829 $ (342) $ 31,544 Operating Asset Performance - 2019 & Future Annualized 4Q19 in-place NOI $ 53,249 $ 119,674 $ 29,997 $ 202,920 Est. stabilized NOI (future) (d) $ 58,783 $ 207,786 $ 53,241 $ 319,810 Wtd. avg. time to stab. (yrs.) 1.0 3.0 3.4 — (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 December 31, 2019 is found under Reconciliation of Non-GAAP Measures on page 33. (c) Total excludes NOI from non-core operating assets and NOI from core assets within Hawai‘i and New York as these regions are not defined as MPCs. (d) Est. Stabilized NOI (Future) represents all 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 Woodlands Hills Bridgeland Summerlin Columbia Total Hawai‘i 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. 2,819,603 — — 532,428 1,255,741 4,607,772 — — — — Retail Sq. Ft. 376,193 — 83,488 823,531 102,790 1,386,002 1,019,667 13,000 268,556 1,301,223 Multifamily units 1,389 — — 124 380 1,893 — 21 — 21 Hotel Rooms 205 — — — — 205 — — — — Self-Storage Units 1,374 — — — — 1,374 — — — — Other Sq. Ft. 135,801 — — — — 135,801 — — — — Operating - Unstabilized Properties Office Sq.Ft. 1,174,727 — — — 448,567 1,623,294 — — — — Retail Sq.Ft. (a) 72,264 — — — 28,026 100,290 16,048 399,830 — 415,878 Multifamily units — — 312 267 437 1,016 — — — — Hotel rooms 704 — — — — 704 — 66 — 66 Self-Storage Units — — — — — — — — — — Other Sq. Ft. — — — — — — — — — — Operating - Under Construction Properties Office Sq.Ft. 180,000 — — — — 180,000 — — 1,500,000 1,500,000 Retail Sq. Ft. — — — — 56,683 56,683 47,750 53,396 — 101,146 Other Sq. Ft. — — — — — — — — — — Multifamily units 909 — — — 382 1,291 — — — — Hotel rooms — — — — — — — — — — Self-Storage Units — — — — — — — — — — Residential Land Total gross acreage/condos (b) 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 (b) 118,000 300 12,550 113,000 112,000 355,850 n.a. n.a. n.a. — Remaining saleable acres/condos 71 ac. 1,348 ac. 2,166 ac. 2,991 ac. n.a. 6,576 ac. 276 n.a. n.a. 276 Estimated price per acre (c) $ 1,068 $ 274 $ 422 $ 676 n.a. $ — n.a. n.a. n.a. $ — Commercial Land Total acreage remaining 722 ac. 175 ac. 1,543 ac. 831 ac. 96 ac. 3,367 ac. n.a. n.a. n.a. — Estimated price per acre (c) $ 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) Retail Sq. Ft. within the Summerlin region excludes 381,767 Sq. Ft. of anchors. (b) Acreage shown as of December 31, 2019; current residents shown as of December 31, 2019. (c) 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 December 31, 2019 30% g n i r i p x 24% E t n e R 18% h s a C d e 12% z i l a u n n A 6% f o % 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ 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 $ 7,784 6.09% $ 36.64 $ 8,709 8.27% $ 47.33 2021 6,304 4.93% 32.26 6,755 6.42% 27.15 2022 18,054 14.11% 31.60 6,578 6.25% 46.77 2023 13,348 10.43% 29.90 7,514 7.14% 45.20 2024 16,757 13.10% 30.67 7,783 7.39% 39.99 2025 14,319 11.19% 33.06 26,653 25.32% 53.99 2026 6,534 5.11% 34.68 6,106 5.80% 41.48 2027 15,656 12.24% 29.53 5,296 5.03% 42.64 2028 9,777 7.64% 41.48 7,453 7.08% 46.63 2029 8,066 6.31% 42.42 5,561 5.28% 30.72 Thereafter 11,318 8.85% 40.85 16,854 16.02% 30.77 Total $ 127,917 100.00% $ 105,262 100.00% (a) Excludes leases with an initial term of 12 months or less HowardHughes.com 214.741.7744 20
Acquisition / Disposition Activity Acquisition / Disposition Activity (In thousands, except rentable Sq. Ft. / Units / Acres) Q4 2019 Acquisitions Rentable Date Acquired Property % Ownership Location Sq. Ft. / Units / Acres Acquisition Price 12/30/2019 The Woodlands Towers at The Waterway 100% The Woodlands, TX 1,403,440 Sq. Ft / 9 acres $565.0 million The Woodlands Warehouse The Woodlands, TX 125,801 Sq. Ft. / 7 acres Century Park Houston, TX 1,302,597 Sq. Ft. / 63 acres Q4 2019 Dispositions Rentable Date Sold Property % Ownership Location Sq. Ft. / Units / Acres Sale Price 10/29/2019 West Windsor 100% West Windsor, NJ 658 Acres $40.0 million 12/20/2019 Bridges at Mint Hill 91% Charlotte, NC 210 Acres $9.5 million HowardHughes.com 214.741.7744 21
Master Planned Community Land Master Planned Community Land The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Total ($ in thousands) Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Revenues: Residential land sale revenues $11,427 $ 9,435 $ 2,539 $ 2,079 $15,512 $17,734 $123,621 $ 2,772 $ — $ — $ 153,099 $ 32,020 Commercial land sale revenues — — — — 46 422 — 2,736 — — 46 3,158 Builder price participation 52 105 18 21 264 123 11,123 7,442 — — 11,457 7,691 Other land sale revenues 2,534 1,559 — 470 43 78 3,560 3,222 — (412) 6,137 4,917 Total revenues 14,013 11,099 2,557 2,570 15,865 18,357 138,304 16,172 — (412) 170,739 47,786 Expenses: Cost of sales - residential land (5,085) (4,656) (955) (1,005) (5,181) (5,385) (52,492) (1,615) — — (63,713) (12,661) Cost of sales - commercial land — — — — (12) (106) — (1,839) — — (12) (1,945) Real estate taxes 85 (529) 36 44 (636) (702) (887) (769) (144) (127) (1,546) (2,083) Land sales operations (4,634) (4,669) (986) (777) (1,771) (1,447) (2,821) (2,479) (169) 195 (10,381) (9,177) Depreciation and amortization (34) (34) — — (34) (34) (22) 16 — 53 (90) 1 Total operating expenses (9,668) (9,888) (1,905) (1,738) (7,634) (7,674) (56,222) (6,686) (313) 121 (75,742) (25,865) Net interest capitalized (expense) (1,569) (1,191) 261 252 3,791 3,602 5,160 4,430 — — 7,643 7,093 Equity in earnings from real estate affiliates — — — — — — 9,477 1,603 — — 9,477 1,603 EBT $ 2,776 $ 20 $ 913 $ 1,084 $12,022 $14,285 $ 96,719 $15,519 $ (313) $ (291) $ 112,117 $ 30,617 Key Performance Metrics: Residential Total acres closed in current period 11.6 ac. 18.6 ac. 9.5 ac. 7.4 ac. 35.7 ac. 45.6 ac. 177.0 ac. 0.7 ac. — — Price per acre achieved (a) $ 985 $ 507 $ 267 $ 281 $ 435 $ 389 $ 639 $ 950 NM NM Avg. gross margins 55.5 % 51.0 % 62.4 % 52.0 % 66.6 % 70.0 % 57.5 % 42.0 % NM NM Commercial Total acres closed in current period — — — — — — — 5.9 ac. — — Price per acre achieved NM NM NM NM NM NM NM 400 NM NM Avg. gross margins NM NM NM NM 74.4 % 75.0 % NM 33.0 % NM NM Avg. combined before-tax net margins 55.5 % 51.0 % 62.4 % 52.0 % 66.6 % 70.0 % 57.5 % 37.0 % NM NM Key Valuation Metrics The Woodlands The Woodlands Hills Bridgeland Summerlin Columbia Remaining saleable acres Residential (b) 71 ac. 1,348 ac. 2,166 ac. 2,991 ac. — Commercial (c) 722 ac. 175 ac. 1,543 ac. 831 ac. 96 ac. Projected est. % superpads / lot size —% / — —% / — —% / — 87% / 0.25 ac NM Projected est. % single-family detached lots / lot size 41% / 0.41 ac 86% / 0.23 ac 89% / 0.16 ac —% / — NM Projected est. % single-family attached lots / lot size 59% / 0.07 ac 14% / 0.13 ac 10% / 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) 26 15 87 108 NM Projected GAAP gross margin (e) 55.5% / 75.6% 62.4% / 62.4% 67.4% / 67.4% 53.7% / 53.7% 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, impacting results. The price per acre achieved for The Woodlands residential lots is mostly attributable to the mix of lots sold, positively impacting results. (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 December 31, 2019. (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 Waiea (a) Anaha (b) Ae‘o (c) Ke Kilohana (d) ‘A‘ali‘i (e) Kō'ula (f) Total Key Metrics ($ in thousands) Type of building Ultra-Luxury Luxury Upscale Workforce Upscale Upscale Number of units (g) 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 millions) Status Opened Opened Opened Opened Under Construction Under Construction Start date 2Q14 4Q14 1Q16 4Q16 4Q18 3Q19 Completion date/status Complete Complete Complete Complete 2021 2022 Total development cost $ 464 $ 401 $ 430 $ 219 $ 412 $ 487 $ 2,413 Cost-to-date 416 395 418 212 116 45 1,602 Remaining to be funded $ 48 $ 6 $ 12 $ 7 $ 296 $ 442 $ 811 Financial Summary ($ in thousands, except per Sq. Ft.) Units closed (through Q4 2019) 170 315 465 423 — — 1,373 Units under contract (through Q4 2019) 2 — — — 626 420 1,048 Total % of units closed or under contract 97.2% 99.4% 100.0% 100.0% 83.5% 74.3% 89.8% Units closed (current quarter) — 1 — 1 — — 2 Units under contract (current quarter) — — — — 3 23 26 Square footage closed or under contract (total) 360,161 436,649 389,663 294,273 305,938 312,879 2,099,563 Total % square footage closed or under contract 95.2% 97.2% 100.0% 100.0% 78.8% 76.4% 90.9% Target condo profit margin at completion (excl. land cost) ~30% Total cash received (closings & deposits) $ 656,355 $ 492,374 $ 513,176 $ 215,947 $ 79,155 $ 94,787 $ 2,051,794 Total GAAP revenue recognized $ 1,877,105 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 $ — $ — $ — $ — $ 40,979 $ — $ 40,979 Held for future use (h) — — 24 — 38,175 94,787 132,986 Total deposits from sales commitment $ — $ — $ 24 $ — $ 79,154 $ 94,787 $ 173,965 (a) We began delivering units at Waiea in November 2016. As of December 31, 2019, we have closed on 170 units. We have two under contract, and five units remain to be sold. (b) We began delivering units at Anaha in October 2017. As of December 31, 2019, we have closed on 315 units. We have no units under contract, and two units remain to be sold. (c) We began delivering units at Ae‘o in November 2018. As of December 31, 2019, we have closed on all 465 units. (d) Ke Kilohana consists of 375 workforce units and 48 market rate units. As of December 31, 2019, we have closed on all 423 units. (e) We broke ground on ‘A‘ali‘i in the fourth quarter of 2018. As of December 31, 2019, we have entered into contracts for 626 of the units. (f) We broke ground on Kō'ula in the third quarter of 2019. As of December 31, 2019, we have entered into contracts for 420 of the units. (g) The increase in number of units at Waiea from 2018 is a result of subdividing one large unit due to demand for smaller units in the tower. (h) 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 Plan to transform the mall into an open-air, mixed-use community. 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 (In thousands) December 31, 2019 December 31, 2018 Fixed-rate debt: Unsecured 5.375% Senior Notes $ 1,000,000 $ 1,000,000 Secured mortgages, notes and loans payable 884,935 648,707 Special Improvement District bonds 23,725 15,168 Variable-rate debt: Mortgages, notes and loans payable, excluding condominium financing (a) 2,199,241 1,454,579 Condominium financing (a) 30,717 96,757 Mortgages, notes and loans payable 4,138,618 3,215,211 Unamortized bond issuance costs (5,249) (6,096) Deferred financing costs (36,899) (27,902) Total mortgages, notes and loans payable, net 4,096,470 3,181,213 Total unconsolidated mortgages, notes and loans payable at pro-rata share 100,319 96,185 Total Debt $ 4,196,789 $ 3,277,398 Net Debt on a Segment Basis, at share as of December 31, 2019 Master The Non- Operating Planned Seaport Strategic Segment Segment (In thousands) Assets Communities District Developments Totals Amounts Total Mortgages, notes and loans payable (a) (b) $ 2,315,806 $ 239,275 $ 352,408 $ 266,041 $ 3,173,530 $ 992,542 $ 4,166,072 Condominium financing (a) — — — 30,717 30,717 — 30,717 Less: Cash and cash equivalents (b) (59,801) (129,028) (8,253) (12,165) (209,247) (270,312) (479,559) Special Improvement District receivables — (42,996) — — (42,996) — (42,996) Municipal Utility District receivables, net — (280,742) — — (280,742) — (280,742) TIF Receivable — — — (3,931) (3,931) — (3,931) Net Debt $ 2,256,005 $ (213,491) $ 344,155 $ 280,662 $ 2,667,331 $ 722,230 $ 3,389,561 (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Mortgages, notes and loans payable $ 424,933 $ 320,641 $ 137,825 $ 967,129 $ 764,615 $ 1,523,475 $ 4,138,618 Interest payments 184,846 173,275 161,404 147,400 95,811 141,367 904,103 Ground lease and other leasing commitments 6,927 7,066 6,328 6,374 6,432 266,852 299,979 Total consolidated debt maturities and contractual obligations $ 616,706 $ 500,982 $ 305,557 $ 1,120,903 $ 866,858 $ 1,931,694 $ 5,342,700 (a) As of December 31, 2019 and December 31, 2018, $630.1 million and $615.0 million of variable‑rate debt has been swapped to a fixed rate for the term of the related debt, respectively. An additional $184.3 million and $50.0 million of variable-rate debt was subject to interest rate collars as of December 31, 2019 and December 31, 2018, respectively, and $75.0 million of variable-rate debt was capped at a maximum interest rate as of December 31, 2019 and December 31, 2018. (b) Each segment includes our share of related cash and debt balances for all joint ventures included in Investments in real estate and other affiliates. (c) Mortgages, notes and loans payable and Condominium financing are presented based on extended maturity date. Extension periods generally may be exercised at our option at the initial maturity date, subject to customary extension terms that are based on property performance as of the initial maturity date and/or extension date. Such extension terms may include, but are not limited to, minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable, and other performance criteria. We may have to pay down a portion of the debt if we do not meet the requirements to exercise the extension option. HowardHughes.com 214.741.7744 25
Property-Level Debt Property-Level Debt ($ in thousands) Q4 2019 Principal Asset Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Operating Assets Three Hughes Landing $ 59,822 L+260 Floating 4.33% Mar-20 The Woodlands Towers at the Waterway 336,570 L+195 Floating 3.68% (b) Jun-20 The Woodlands Warehouse 7,230 L+195 Floating 3.68% (b) Jun-20 Downtown Summerlin 259,179 L+215 Floating 3.88% Sep-20 / Sep-21 Two Merriweather 28,216 L+250 Floating 4.23% Oct-20 / Oct-21 Outlet Collection at Riverwalk 30,615 L+250 Floating 4.23% Oct-21 100 Fellowship Drive 47,916 L+150 Floating 3.23% May-22 20/25 Waterway Avenue 13,131 4.79% Fixed 4.79% May-22 Millennium Waterway Apartments 53,032 3.75% Fixed 3.75% Jun-22 HHC 242 Self-Storage 5,499 L+260 Floating 4.33% Dec-21 / Dec-22 HHC 2978 Self-Storage 5,395 L+260 Floating 4.33% Dec-21 / Dec-22 Lake Woodlands Crossing Retail 12,163 L+180 Floating 3.53% Jan-23 Lakeside Row 23,958 L+225 Floating 3.98% Jul-22 / Jul-23 Senior Secured Credit Facility 615,000 4.61% Floating/Swap 4.61% (c) Sep-23 The Woodlands Resort & Conference Center 62,500 L+250 Floating 4.23% Dec-21 / Dec-23 Lakefront North 32,731 L+200 Floating 3.73% Dec-22 / Dec-23 9303 New Trails 11,196 4.88% Fixed 4.88% Dec-23 4 Waterway Square 32,789 4.88% Fixed 4.88% Dec-23 Creekside Park West 8,505 L+225 Floating 3.98% Mar-23 / Mar-24 6100 Merriweather 36,418 L+275 Floating 4.48% Sep-22 / Sep-24 Tanager Apartments 29,165 L+225 Floating 3.98% Oct-21 / Oct-24 Two Summerlin 33,183 4.25% Fixed 4.25% Oct-22 / Oct-25 3831 Technology Forest Drive 21,137 4.50% Fixed 4.50% Mar-26 Kewalo Basin Harbor 11,110 L+275 Floating 4.48% Sep-27 Millennium Six Pines Apartments 42,500 3.39% Fixed 3.39% Aug-28 3 Waterway Square 47,647 3.94% Fixed 3.94% Aug-28 One Lakes Edge 69,440 4.50% Fixed 4.50% Mar-29 Aristocrat 38,055 3.67% Fixed 3.67% Sep-29 Creekside Park Apartments 37,730 3.52% Fixed 3.52% Oct-29 One Hughes Landing 52,000 4.30% Fixed 4.30% Dec-29 Two Hughes Landing 48,000 4.20% Fixed 4.20% Dec-30 Constellation Apartments 24,200 4.07% Fixed 4.07% Jan-33 Hughes Landing Retail 35,000 3.50% Fixed 3.50% Dec-36 Columbia Regional Building 24,664 4.48% Fixed 4.48% Feb-37 Las Vegas Ballpark 51,231 4.92% Fixed 4.92% Dec-39 $ 2,246,927 HowardHughes.com 214.741.7744 26
Property-Level Debt (con't) ($ in thousands) Q4 2019 Principal Asset Balance Contract Interest Rate Interest Rate Hedge Current Annual Interest Rate Initial / Extended Maturity (a) Master Planned Communities The Woodlands Master Credit Facility $ 107,500 L+250 Floating/Cap 4.23% Oct-22 / Oct-23 Bridgeland Credit Facility 107,500 L+250 Floating/Cap 4.23% Oct-22 / Oct-23 215,000 Seaport District 250 Water Street 100,000 L+350 Floating 5.23% Nov-22 / Nov-23 Seaport District 250,000 6.10% Fixed/Floating 6.10% (d) Jun-24 350,000 Strategic Developments A'ali'i 30,717 L+310 Floating 4.83% Jun-22 / Jun-23 Two Lakes Edge 38,214 L+215 Floating 3.88% Oct-22 / Oct-23 110 North Wacker 184,300 L+300 Floating/Collar 4.73% (e) Apr-22 / Apr-24 Millennium Phase III Apartments 1 L+175 Floating 3.48% Aug-23 / Aug-24 Juniper Apartments 34,610 L+275 Floating 4.48% Sep-22 / Sep-24 8770 New Trails 15,124 4.89% Floating/Swap 4.89% (f) Jun-21 / Jan-32 302,966 Total (g) $ 3,114,893 (a) Extended maturity assumes all extension options are exercised if available based on property performance. (b) 100.0% of the outstanding principal of the $343.8 million is recourse to the Company, but not currently secured by any mortgage. The Company is currently documenting long-term mortgage financing and anticipates closing in the first quarter of 2020. (c) 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. (d) The loan initially bears interest at 6.10% and will begin bearing interest at one-month LIBOR plus 4.10%, subject to a LIBOR cap of 2.30% and LIBOR floor of 0.00%, at the earlier of June 20, 2021 or the date certain debt coverage ratios are met. (e) 100.0% of the outstanding principal of the $184.3 million is subject to fixed interest rate collar contracts for the remaining term of the debt. (f) Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails on June 27, 2019, the Company entered into an interest rate swap which is designated as a cash flow hedge. The Loan will bear interest at one-month LIBOR plus 2.45% but it is currently swapped to a fixed rate equal to 4.89%. (g) Excludes JV debt, Corporate level debt, and SID bond debt related to Summerlin MPC and retail. HowardHughes.com 214.741.7744 27
Summary of Ground Leases Minimum Contractual Ground Lease Payments ($ in thousands) Future Cash Payments Pro-Rata Three months ended Year Ended Year Ending December 31, Ground Leased Asset Share Expiration Date December 31, 2019 December 31, 2019 2020 Thereafter Total Riverwalk (a) 100% 2045-2046 $ 407 $ 1,273 $ 1,737 $ 42,185 $ 43,922 Seaport 100% 2031 (b) 544 2,157 2,199 221,019 223,218 Kewalo Basin Harbor 100% 2049 300 300 300 8,300 8,600 $ 1,251 $ 3,730 $ 4,236 $ 271,504 $ 275,740 (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 ($ in thousands) Three Months Ended Restructuring Expenses December 31, 2019 Settled in 2019 To be Settled in 2020 Known Expenses Former executive severance and other benefits $ 23,600 $ 23,600 $ — Employee severance 5,639 1,003 4,636 Loss on sale of corporate aircraft 4,751 4,751 — Total Known Expenses 33,990 29,354 4,636 Estimated Expenses Employee relocation 5,049 — 5,049 Total Estimated Expenses 5,049 — 5,049 Total Restructuring Expenses $ 39,039 $ 29,354 $ 9,685 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 December 31, 2019, 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 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. 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: (In thousands) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 FY 2019 FY 2018 Total Operating Assets segment EBT (a) $ (3,507) $ 19,825 $ 12,628 $ 5,686 $ (5,799) $ 34,632 $ 3,836 Add back: Depreciation and amortization 30,609 28,844 28,938 27,108 29,265 115,499 103,293 Interest expense, net 20,334 21,645 20,059 18,991 18,665 81,029 71,551 Equity in (earnings) loss from real estate and other affiliates (477) (441) (45) (2,709) (487) (3,672) (1,994) Loss on sale or disposal of real estate and other assets, net — — — — 4 — 4 Selling profit from sales-type leases — (13,537) — — — (13,537) — Impact of straight-line rent (1,096) (2,529) (2,537) (2,845) (3,650) (9,007) (12,427) Other 412 477 (340) 122 4,611 671 7,312 Total Operating Assets NOI - Consolidated 46,275 54,284 58,703 46,353 42,609 205,615 171,575 Redevelopments 110 North Wacker 1 2 2 — 513 5 513 Total Operating Asset Redevelopments NOI 1 2 2 — 513 5 513 Dispositions Cottonwood Square — — — — 11 — 11 Total Operating Asset Dispositions NOI — — — — 11 — 11 Consolidated Operating Assets NOI excluding properties sold or in redevelopment 46,276 54,286 58,705 46,353 43,133 205,620 172,099 Company's Share NOI - Equity investees 2,123 2,043 1,688 1,464 1,952 7,318 4,661 Distributions from Summerlin Hospital Investment — — — 3,625 — 3,625 3,435 Total Operating Assets NOI $ 48,399 $ 56,329 $ 60,393 $ 51,442 $ 45,085 $ 216,563 $ 180,195 (a) EBT excludes corporate expenses and other items that are not allocable to the segments. Prior periods have been adjusted to be consistent with fiscal 2019 presentation. 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: (In thousands) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 FY 2019 FY 2018 Total Seaport District segment EBT (a) $ (12,464) $ (16,656) $ (14,270) $ (15,852) $ (15,657) $ (59,242) $ (23,862) Add back: Depreciation and amortization 6,668 6,767 6,753 6,193 5,960 26,381 12,466 Interest expense (income), net 4,425 4,984 1,924 1,532 2,175 12,865 (6,291) Equity in losses from real estate and other affiliates 804 705 451 632 13 2,592 705 Loss on sale or disposal of real estate and other assets — — — 6 — 6 — Gain on extinguishment of debt (4,851) — — — — (4,851) — Impact of straight-line rent (24) 412 491 755 179 1,634 (433) Other - development-related 190 896 1,764 2,749 3,815 5,595 11,937 Total Seaport District NOI - Consolidated (5,252) (2,892) (2,887) (3,985) (3,515) (15,020) (5,478) Company's Share NOI - Equity investees (325) (148) (42) (195) (134) (710) (713) Total Seaport District NOI $ (5,577) $ (3,040) $ (2,929) $ (4,180) $ (3,649) $ (15,730) $ (6,191) (a) EBT excludes corporate expenses and other items that are not allocable to the segments. Prior periods have been adjusted to be consistent with fiscal 2019 presentation. HowardHughes.com 214.741.7744 32
Reconciliation of Non-GAAP Measures (con't) Reconciliations of Non-GAAP Measures (In thousands) Three Months Ended December 31, Year Ended December 31, Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue 2019 2018 2019 2018 Total residential land sales closed in period $ 142,537 $ 30,197 $ 325,872 $ 235,013 Total commercial land sales closed in period — 2,356 — 5,116 Net recognized (deferred) revenue: Bridgeland 47 422 81 553 Summerlin (12,521) 1,817 (19,290) 7,049 Total net recognized (deferred) revenue (12,474) 2,239 (19,209) 7,602 Special Improvement District bond revenue 23,082 385 23,483 14,174 Total land sales revenue - GAAP basis $ 153,145 $ 35,177 $ 330,146 $ 261,905 (In thousands) Three Months Ended December 31, Year Ended December 31, Reconciliation of MPC Segment EBT to MPC Net Contribution 2019 2018 2019 2018 MPC segment EBT $ 112,117 $ 30,617 $ 257,586 $ 202,955 Plus: Cost of sales - land 63,724 14,605 141,852 124,214 Depreciation and amortization 90 2 424 243 MUD and SID bonds collections, net 12,967 42,753 24,047 37,401 Distributions from real estate and other affiliates 11,990 6,330 16,051 10,000 Less: MPC development expenditures (58,218) (55,899) (238,951) (195,504) MPC land acquisitions — (5,262) (752) (8,826) Equity in earnings in real estate and other affiliates (9,477) (1,602) (28,336) (36,284) MPC Net Contribution $ 133,193 $ 31,544 $ 171,921 $ 134,199 (In thousands) Three Months Ended December 31, Year Ended December 31, Reconciliation of Segment EBTs to Net Income 2019 2018 2019 2018 Operating Assets segment EBT $ (3,507) $ (5,799) $ 34,632 $ 3,836 MPC segment EBT 112,117 30,617 257,586 202,955 Seaport District segment EBT (12,464) (15,657) (59,242) (23,862) Strategic Developments segment EBT 1,164 96,432 101,111 97,954 Corporate income, expenses and other items (93,273) (57,805) (230,547) (207,665) Income before taxes 4,037 47,788 103,540 73,218 Provision for income taxes (5,038) (9,864) (29,245) (15,492) Net income (1,001) 37,924 74,295 57,726 Net loss attributable to noncontrolling interests (99) (663) (339) (714) Net income attributable to common stockholders $ (1,100) $ 37,261 $ 73,956 $ 57,012 HowardHughes.com 214.741.7744 33