Howard Hughes Holdings Inc (HHH, Financial) announced its Q3 2023 operating results on November 6, 2023. Despite reporting a net loss of $544.2 million, the company saw strong performance in its Master Planned Communities (MPC) and Operating Assets, leading to increased full-year guidance.
Financial Highlights
The company's net loss of $544.2 million, or $(10.97) per diluted share, includes a $555.0 million or $(11.19) per share after-tax impairment charge at the Seaport. This compares to net income of $108.1 million or $2.19 per diluted share in the prior-year period. Excluding the after-tax impairment, the year-over-year reduction was primarily due to the timing of condo sales.
Despite the net loss, HHH's MPC EBT totaled $84.8 million in the quarter, a 12% increase compared to $75.4 million in the prior-year period. New home sales totaled 605 homes, a 113% year-over-year increase, signaling strong future residential land sales. The company's Operating Assets NOI totaled $62.8 million in the quarter, a 3% increase compared to $60.8 million in the prior-year period.
Future Outlook
Looking ahead, HHH has increased its full-year 2023 MPC EBT guidance to $325 million at the mid-point, up $55 million from prior guidance and $125 million from initial guidance. The company also increased its full-year 2023 NOI guidance to $243 million at the mid-point, up $7 million from initial guidance.
Furthermore, HHH announced its intent to establish Seaport Entertainment, a new division comprising its entertainment-related assets in New York and Las Vegas. The company expects to spinoff Seaport Entertainment as an independent, publicly traded company in 2024.
Company's Commentary
The third quarter reflected exceptional results throughout our core businesses, further demonstrating the robust demand we are experiencing across our world-class portfolio of mixed-use assets," commented David R. O’Reilly, Chief Executive Officer of Howard Hughes. "With the year nearly complete, we are extremely pleased with our performance thus far, and we maintain a robust near-term outlook."
Despite the challenges faced in Q3 2023, Howard Hughes Holdings Inc (HHH, Financial) remains optimistic about its future performance and continues to focus on creating shareholder value.
Explore the complete 8-K earnings release (here) from Howard Hughes Holdings Inc for further details.
