Howard Hughes Holdings

Last updated
Howard Hughes Holdings Inc.
Company type Public
Industry Real estate development
Founded2010;14 years ago (2010)
Headquarters The Woodlands, Texas, U.S.
Key people
RevenueDecrease2.svg US$1.02 billion [3]  (2023)
Decrease2.svg −US$528 million [3]  (2023)
Decrease2.svg −US$552 million [3]  (2023)
Total assets Decrease2.svg US$9.58 billion [3]  (2023)
Total equity Decrease2.svg US$2.99 billion [3]  (2023)
Owner Pershing Square Capital Management (31%) [1]
Number of employees
795 [3]  (2023)
Website howardhughes.com

Howard Hughes Holdings Inc., formerly the Howard Hughes Corporation, is a real estate development and management company based in The Woodlands, Texas. It was formed in 2010 as a spin-off from General Growth Properties (GGP). Most of its holdings are focused on several master-planned communities. It took its name from the original Howard Hughes Corporation, which had developed the planned community of Summerlin, Nevada, and later became a subsidiary of GGP.

Contents

History

General Growth Properties filed for Chapter 11 bankruptcy protection in 2009. [4] The company proposed a reorganization plan that included spinning off a new company named General Growth Opportunities, which would include those properties that had long-term development potential but little or no income. [5] The name of the proposed spin-off was later changed to The Howard Hughes Corporation (HHC). [6] The spin-off of HHC to GGP's shareholders was completed on November 9, 2010, when GGP exited bankruptcy. [7] [8] The new company held a portfolio that included GGP's master planned communities, mixed-use developments, and undeveloped land. [8] Hedge fund manager Bill Ackman was appointed chairman of the new company. [7]

In 2019, in response to investor disappointment with the company's stock price, HHC conducted a review of strategic options, including the possibility of selling the company. [9] [10] Ultimately, the company announced a "transformation plan", under which it would focus on its master-planned communities and sell off $2 billion of non-core assets. [11] [12] HHC moved its headquarters from Dallas to The Woodlands in 2020 as a cost-cutting measure under this plan. [13]

The company acquired its sixth master-planned community in 2021, purchasing the 37,000-acre Douglas Ranch development in the Phoenix area (later renamed to Teravalis) for $600 million. [14]

In 2023, HHC reorganized itself as a holding company named Howard Hughes Holdings, with the Howard Hughes Corporation as a subsidiary. [15] It then moved its entertainment-related properties into a new division, Seaport Entertainment, which it planned to spin off to shareholders by the end of 2024. [16] [17] Seaport Entertainment's assets would include the South Street Seaport in Manhattan, the Las Vegas Aviators baseball team, the air rights to develop a casino at Fashion Show Mall on the Las Vegas Strip, and a minority stake in Jean-Georges Restaurants. [16] The spinoff was completed in August 2024. [18]

Current properties

The company divides its properties into segments: master planned communities, operating assets, and strategic developments. [19]

Master planned communities

The company has six master planned communities, with a total of approximately 35,000 acres (14,000 ha) of land remaining to be developed or sold. [19]

Operating assets

This category comprises 73 revenue-generating assets as of 2023, including retail, office, and multi-family residential properties, most of which are located in the company's six master planned communities. [19] The portfolio includes 11 retail properties with 2.1 million square feet of space; 34 office properties with 6.6 million square feet of space; and 17 apartment complexes with a total of 5,587 units. [20] Notable properties include:

Strategic developments

The company lists 18 strategic projects as of 2023, in various stages of development. [19] Notable projects include:

Former properties

Seaport Entertainment Group

Seaport Entertainment Group (AMEX :  SEG) is an entertainment and real estate development company based in New York City that was formed in 2024 as a spin-off of Howard Hughes Holdings.

Seaport's namesake property is the South Street Seaport in Manhattan, where it owns Pier 17, the Fulton Market Building, the Tin Building, and various other retail, office, and restaurant properties. [21] At 250 Water Street, Seaport is developing a high-rise mixed-use building. [21]

Other assets include the Las Vegas Aviators baseball team, the Las Vegas Ballpark, an 80% stake in air rights to develop a casino hotel at the Fashion Show Mall on the Las Vegas Strip, and a 25% stake in Jean-Georges Restaurants. [21]

Related Research Articles

<span class="mw-page-title-main">Las Vegas Aviators</span> Minor league baseball team

The Las Vegas Aviators, formerly known as the Las Vegas 51s and Las Vegas Stars, are a Minor League Baseball team of the Pacific Coast League (PCL) and the Triple-A affiliate of the Oakland Athletics. They are located in Summerlin South, Nevada, a community in Las Vegas. The Aviators play their home games at Las Vegas Ballpark, a 10,000-seat facility which opened in 2019. The team previously played at Cashman Field from 1983 to 2018.

<span class="mw-page-title-main">Summerlin, Nevada</span> Planned community in Nevada, United States

Summerlin is a community in the Las Vegas Valley of Southern Nevada. It lies at the edge of the Spring Mountains and Red Rock Canyon to the west; it includes the census-designated place of Summerlin South, is partly within the official city limits of Las Vegas and partly within unincorporated Clark County. This community occupies over 22,500 acres and holds over 230 parks, more than two dozen public and private schools, 14 houses of worship, ten golf courses, three resort hotels, recreational facilities, retail and entertainment centers, well-established office parks, a medical center, and more.

<span class="mw-page-title-main">GGP Inc.</span> U.S. real estate company

GGP Inc. was an American commercial real estate company and the second-largest shopping mall operator in the United States. It was founded by brothers Martin, Matthew and Maurice Bucksbaum in Cedar Rapids, Iowa, in 1954, and was headquartered in Chicago, Illinois, from 2000. It was subject to the largest real estate bankruptcy in American history at the time of its filing in 2009.

<span class="mw-page-title-main">The Rouse Company</span> American real estate development company

The Rouse Company, founded by Hunter Moss and James W. Rouse in 1939, was a publicly held shopping mall and community developer from 1956 until 2004, when General Growth Properties (GGP) purchased the company.

Summa Corporation was a holding company for the business interests of Howard Hughes after he sold the tool division of Hughes Tool Company in 1972. Its holdings included casino hotels, aviation businesses, and television channels. After Hughes's death in 1976, most of the company's assets were sold off, and it focused on developing the master-planned community of Summerlin, Nevada. Summa was renamed as The Howard Hughes Corporation in 1994. It was acquired by The Rouse Company in 1996.

Station Casinos, LLC is an American hotel and casino company based in Las Vegas suburb of Summerlin South, Nevada, and founded by Frank Fertitta Jr. Station Casinos, along with Affinity Gaming, Boyd Gaming and Golden Entertainment, dominate the locals casino market in Las Vegas. The company purchased several sites that were gaming-entitled, meaning that major casinos can be built at that location without additional approvals. There are only a limited number of such sites available in the Las Vegas area. Station Casinos has also branched out into managing casinos that they do not own. Red Rock Resorts, Inc. is a publicly traded holding company that owns a portion of Station Casinos.

JW Marriott Las Vegas Resort and Spa is a resort in Summerlin, Nevada, near Las Vegas. The Rampart Casino is located within the hotel. The property is owned and operated by Hotspur Resorts, which franchises the JW Marriott name from Marriott International. The hotel has 548 rooms and the casino measures 57,610 square feet (5,352 m2).

<span class="mw-page-title-main">Simon Property Group</span> International real estate investment trust founded in the United States

Simon Property Group, Inc. is an American real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers. It is the largest owner of shopping malls in the United States and is headquartered in Indianapolis, Indiana. Worldwide, it owns interests in 232 properties as of 2021.

<span class="mw-page-title-main">Penn Entertainment</span> American gambling company

Penn Entertainment, Inc., formerly Penn National Gaming, is an American entertainment company and operator of integrated entertainment, sports content, and casino gambling. It operates 43 properties in 20 states, under brands including Hollywood Casino, Ameristar, and Boomtown. It also owns the Canadian digital media company Score Media and Gaming, and operates sports betting in

Bridgeland is a planned community near Houston, Texas, built by Howard Hughes Holdings.

<span class="mw-page-title-main">Grand Canal Shoppes</span> Shopping mall in Las Vegas, Nevada, U.S.

The Grand Canal Shoppes is an upscale shopping mall inside the Venetian and Palazzo resorts on the Las Vegas Strip in Paradise, Nevada, United States.

<span class="mw-page-title-main">Meadows Mall</span> Shopping mall in Las Vegas, Nevada

Meadows Mall is a shopping mall in Las Vegas, Nevada on 84 acres (34 ha). It is a two-story enclosed mall with 945,000 ft2 of space. It has 122 stores and 4 anchor tenants: Curacao, a Dillard's clearance outlet, JCPenney, and Macy's. The mall is surrounded by nearly 4,600 surface parking spaces.

<span class="mw-page-title-main">The Boulevard Mall</span> Shopping Mall in Las Vegas Valley

The Boulevard Mall is located at 3528 S Maryland Pkwy, in Paradise, Nevada, United States. Located on 75 acres (30 ha), it is a single-story super-regional mall with 1,180,000 sq ft (110,000 m2) of lease-able retail space. It has 140 stores; anchor stores include Goodwill and 99 Ranch Market. It is the oldest shopping mall in the Las Vegas Valley.

<span class="mw-page-title-main">Downtown Summerlin (shopping center)</span> Shopping mall in Nevada, U.S.

The Downtown Summerlin shopping center or DTS is an outdoor shopping, dining, and entertainment center. It is a part of the greater Downtown Summerlin area, a 400-acre (160 ha) development which lies within the community of Summerlin South on the western outskirts of Las Vegas, Nevada. The shopping center contains 1,600,000 square feet (150,000 m2) and is located on 106 acres (43 ha).

Rouse Properties was a real estate investment trust headquartered in New York City. The company owned 35 shopping malls in 22 states encompassing approximately 24.5 million square feet of retail space.

Gaming and Leisure Properties, Inc. is a real estate investment trust (REIT) specializing in casino properties, based in Wyomissing, Pennsylvania. It was formed in November 2013 as a corporate spin-off from Penn National Gaming. The company owns 60 casino properties, all of which are leased to other companies.

<span class="mw-page-title-main">Downtown Summerlin</span>

Downtown Summerlin is a 400-acre (160 ha) mixed-use development in Summerlin, Nevada, a suburban area on the western outskirts of Las Vegas. It includes the Downtown Summerlin shopping center, office space, and several apartment properties. Downtown Summerlin was developed by The Howard Hughes Corporation, which also developed the Summerlin community.

<span class="mw-page-title-main">Caesars Entertainment</span> American gaming company

Caesars Entertainment, Inc., formerly Eldorado Resorts, Inc., is an American hotel and casino entertainment company founded and based in Reno, Nevada, that operates more than 50 properties. Eldorado Resorts acquired Caesars Entertainment Corporation and changed its own name to Caesars Entertainment on July 20, 2020.

Vici Properties Inc. is a real estate investment trust (REIT) specializing in casino and entertainment properties, based in New York City. It was formed in 2017 as a spin-off from Caesars Entertainment Corporation as part of its bankruptcy reorganization. It owns 54 casinos, hotels, and racetracks, four golf courses, and 38 bowling alleys around the United States and Canada.

<span class="mw-page-title-main">Bally's Corporation</span> American gambling, betting, and entertainment company

Bally's Corporation is an American gambling, betting, and interactive entertainment company headquartered in Providence, Rhode Island. It operates 13 casinos across ten states, a horse track in Colorado, and online sports betting operations in 14 states.

References

  1. 1 2 Lin, Ed (December 30, 2022). "Bill Ackman's Pershing Square Lifts Stake in Developer Howard Hughes". Barron's. Archived from the original on May 15, 2023.
  2. ↑ Trentmann, Nina (December 1, 2020). "Howard Hughes Turns to Finance Chief to Fill CEO Position". The Wall Street Journal.
  3. 1 2 3 4 5 6 Form 10-K: Annual Report (Report). U.S. Securities and Exchange Commission. February 27, 2024. pp. 10, 68–69 – via EDGAR.
  4. ↑ Steve Green (April 15, 2009). "General Growth files for bankruptcy; malls likely stay open". Las Vegas Sun. Retrieved 2018-02-25.
  5. ↑ Dale Kasler (February 25, 2010). "New firm could get stalled mall". Sacramento Bee– via NewsBank.
  6. ↑ Steve Green (October 8, 2010). "General Growth's new real estate business: Howard Hughes Corporation". Las Vegas Sun. Retrieved 2018-02-25.
  7. 1 2 "General Growth exits Chapter 11 after 19 months". Associated Press. November 10, 2010 – via NewsBank.
  8. 1 2 "General Growth Properties completes spinoff of The Howard Hughes Corporation" (Press release). General Growth Properties. November 9, 2010. Retrieved 2018-02-25– via BusinessWire.
  9. ↑ "Howard Hughes considers selling itself amid strategic review". Dallas Business Journal. June 27, 2019. Retrieved 2021-11-13.
  10. ↑ Jeff Jeffrey (October 22, 2019). "Behind the deal: Howard Hughes Corp. considered whole-company sale". Houston Business Journal. Retrieved 2021-11-13.
  11. ↑ "The Howard Hughes Corporation announces transformation plan and new leadership following strategic review process" (Press release). The Howard Hughes Corporation. October 21, 2019 – via EDGAR.
  12. ↑ Nancy Sarnoff (October 21, 2019). "Howard Hughes Corp. to move HQ to The Woodlands amid restructuring". Houston Chronicle. Retrieved 2021-11-13.
  13. ↑ Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 25, 2021. p. 4 – via EDGAR.
  14. ↑ Angela Gonzales (October 19, 2021). "Howard Hughes Corp. pays $600M for Douglas Ranch in Buckeye". Phoenix Business Journal. Retrieved 2024-03-02.
  15. ↑ "The Howard Hughes Corporation and Howard Hughes Holdings Inc. announce completion of new holding company structure" (Press release). Howard Hughes Holdings. August 11, 2023. Retrieved 2023-10-10– via PR Newswire.
  16. 1 2 Sean Hemmersmeier (October 6, 2023). "Strip casino proposed at Fashion Show mall". Las Vegas Review-Journal. Retrieved 2023-10-08.
  17. ↑ "Howard Hughes Holdings Inc. appoints Anton D. Nikodemus CEO of new entertainment division" (Press release). Howard Hughes Holdings. October 5, 2023. Retrieved 2023-10-08– via PR Newswire.
  18. ↑ "Seaport Entertainment Group completes separation from Howard Hughes Holdings". Seaport Entertainment Group. August 1, 2024. Retrieved 2024-08-10– via BusinessWire.
  19. 1 2 3 4 Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 27, 2024. pp. 4–8 – via EDGAR.
  20. ↑ Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 27, 2024. pp. 27–34 – via EDGAR.
  21. 1 2 3 Form S-1/A: General form of registration statement (Report). Seaport Entertainment Group. August 7, 2024. pp. 7–10 – via EDGAR.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.