Howard Hughes (HHH) 5 Nov 212021 Q3 Earnings call transcript

Good morning, and welcome to the Howard Hughes Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the call over to John Saxon, Investor Relations. ahead. go Please

Financial welcome XXXX and O’Reilly, Howard Corporation’s General Loeffler, Hughes Executive Operations; Head Good Peter and call. to With quarter Riley, Chief Correne President; earnings Jay David Dave me third Striph, Officer; of morning, Counsel. Cross, the Officer; today Chief are

of package and to release comparable Before in financial that download be to present the quarter third both within discussed today like the to reconciliations our relation package. website, earnings direct in meaning are include release not The Certain their supplemental tense today begin, Federal supplemental most made financial we will Securities expectations directly would that discuss statements www.howardhughes.com, non-GAAP company’s our GAAP and Law. our statements earnings you I measures or the where measures. forward-looking can of press are the you that

in upon quarter no in could differences Although these the filings expectations release believes SEC statements achieved. Please third disclaimer reflected the forward-looking give risk the and that can press forward-looking our for we see between statement based results. cause the in that forward-looking assurance and will statements actual factors assumptions, be our such are earnings material expectations company factors that reasonable

to our David CEO, We by are duty O’Reilly. turn to over not under unless update required statements now forward-looking call any law. I the will

highlights our Welcome recap of call, the you, segment quarter all I’d Thank today. brief performance provide joining earnings to to Seaport. a MPC quarterly our of and third you call. John and and start like thank XXXX both us our To cover the for

the open Followed financial on our results a in Operations, Q&A. Cross review our the will Correne President, by asset our our of details Ward conclude and of operating CFO, of before call Loeffler, Dave the for results results Our provide finally, the to And Village. we Striph, will with activity Jay who will development speak our cover lines Head segment.

ESG the Before Howard and I of XXXX published ESG the highlight the This Annual produced communities commitment on sustainability which social our can and the best have the of far release ago, so to impactful portion we to our are our we few integrated was found reflects like be environmental into report country. Hughes quarter, results displays across website. days a and which dive results just of would first practices, the Report, throughout

higher lingering cost this asset sales were shy is surpassed limited activity having of XX% MPC EBT by and levels, capitalize of Howard XXXX demand of results the in impacts was despite the the Now, our year-to-day mixed-use pre-COVID perspective, reducing closed operating by on quarter, pandemic. is by just the We to XXXX Ward of all available X% And of put NOI even throughout HHCs year-to-date strong quarter on our third high Hughes with continues levels the highlights communities. as various most have from performance segments in with XX%. inventory up all to XXXX. the our exists of accomplished out G&A Village condo we results across that XXXX

third the super sales in sales During Summerlin. healthy by we land quarter, pad driven saw

the the despite and for Village NOI at the popularity supply sales Seaport Ward series the and concert unique of Pier of under consecutive our a quarter. units in fourth construction steady return grew available XX saw asset operating restaurants. Condo accelerated of from the Our shrinking growing improvements

entitled million of our this to non-core into XX,XXX our adds XXX,XXX addition expect of residents, transform asset redeploying especially which on homes, is strategically net with a By XXX,XXX of community the sustainability all for square announced development. results the MPC, to and and fully spanning leading from West our million that Valley. A Ranch ability this MPC to technology. entitled acquisition the we October, community depth Douglas acres We canvas have XX we proceeds opportunities. feet latest dispositions, focus Phoenix commercial stronger, ready $XXX now further these in recent In grow shovel cash our of

with Following the cash this transaction, demand position pipeline we MPCs. development our our within executing are on still continue to a left healthy existing meet to growing

touch While single-family development projects a But office moment. we on pleased there. asset feet we’re not for X Jay net new million stopping its of rent to medical at We relative discount we’re announce long commercial a steep value. have sectors, already and trades Hughes that the square have approximately in underway, which to will believe Howard in

pleased share our has our yet capital approved this initiative in that there’s As to to to believe value an amounting program, value. million. stock board such, excellent with developments we’re reflected due buyback buyback and of great price coupled that meaningful announce $XXX be deliver will as our use help when We recent projects

for significant value tremendous dedicated of work to a amount these to of announcements All capital put our shareholders. recent unlock

performance turn let’s the Now of master planned our communities. to

despite will throughout are they inventory, well order MPCs Houston. demand. meet Las land had delays Delta depleted quarter while levels, continues demand which elevated Vegas Housing Houston and in leaves land to currently persist great residential outsized to Our and and another weather to still their variant at headwinds sitting supply at to to us low constraints appreciating including deliver on need Homebuilders this supply particularly in replenish positioned encountering remains holdings prices. record low

Summerlin, as increase Summit joint earnings third year XX% driven as pad last venture. of before super taxes the a MPCs strong quarter, our million, by well our activity the the of robust During $XX.X largely compared performance to recorded sales in

see these results, intact. the proving clearly home to of communities steady our to remains impressive pace sales, strength a we continue of addition In new

we be last quarter ahead, expect ahead. looking homes So comes of quarter strongest far sales. it there indicating a in XXXX, we’re MPCs seeing fourth further yet. X,XXX demand a our lot to positive our lies momentum new land year, been have over sold Overall, X% increase to when And in the

our primarily than This stronger million MPC by of XXXX this we expected guidance $XX MPC as is range super year EBT our such, pad the to are XXXX, to full expectations. at time our in second continues to segment sales Summerlin. due midpoint As in $XXX to raising guidance a million exceed $XXX raising million

drove period. portion Summerlin, $XX.X compared staggering this prior super increase of positive made of generated for a MPC acres up of a results This EBT, the selling substantial MPC Speaking the XXX% quarter the year to mostly XX million in pad.

history. Additionally, have X,XXX years strongest higher year-to-date home and one was are period if recall, Summerlin’s the sales the you same eclipsed units over which, over in of XXXX, XX% new in

has only driving our the community at Summit attributed venture $X.X our during Summit, total been last versus these positive share been joint Summerlin. these months quarter earnings The during $XX.X Another earnings our XXXX. California exclusive product. million first acre the equity to year-to-date XXX to totaled has significant results and influx primarily the of built the million purchasing million driver over to $X.X been the in Summerlin’s And tremendous. results activity at an nine custom of lots year the The have buyers from of

constraints impact. a MPC our sales Houston, decline supply as Bridgeland land to to an continues in experienced have over Turning

times. to these have bottlenecks more extended deliveries highlighted some heading a have in a that last started material due to and of ongoing resulted costs home normalized their next lead supply We’ve see the quarter we for upside higher times delayed disruptions of As builders year. expect majority environment delivery home and into

these rainfall XXXX. land demand between to imbalance slower elevated were strong. the in quarter’s into deliveries This Houston significant horizontal lot by robust development, for strong view factors, significant impacted we weather supply in inclement Despite area homebuilders. as sales also as area in delayed incredibly the as and demand remains a under the activity catalyst move resulting We

to quarterly the impacts Hills $XXX,XXX. experienced lower in to Bridgeland, despite land Woodland XX% in residential similar year grew due price prior the over per sales Lastly, the acre the period

points While ahead sales future growth XX%, across this new were home which accelerate activity up MPC. we as to

events XX concerts Moving at over the the drawing to throughout heightened help saw we as and quarter Pier spectators. Seaport, activity

normal the was in very launched sold-out. turnout lineup this In the NOI due year’s compared be on of concerts the our XX,XXX to our the approximately season. XX ticket in quarter the pandemic glad guests canceling representing the We momentum Of after with XX% for inventory. XX Pier attendance, series we summer to concerts year. we last were building series fully to period July, next XX-week XX% rooftop. The available During look same on indicating return strong concert these welcome to improved proved and XXXX hosted, back the XX to forward for to

these type from we their to together at events, in other addition special several July for set that Pier show events In the in hosted destinations Seaport the for tour apart concerts, years. and SBs in other XX If the including Manhattan. the first to Fujis, debut who world XX continue of major

restaurants, to cuisines acclaimed of All uptick locals variety experience these our our New in activity of we tourists more traffic as City more help York and and from saw events drive chefs. substantial an

increased our last quarter. sales As a monthly saw XX% their versus average result, restaurants

stabilization. meaningfully to the improvements higher in has this While half Dave will labor opening targets, and in closely help the its line. completion to over XXXX to Overall, constraints see our heading the upcoming quarter-after-quarter. our closer Striph. of we Many grand as of going call to improved, the bring stabilization contributed marginally building, bottom see and stop now that, Dave. growth With restaurants I’m to have we volume their hand right direction Tin Seaport the continue approaching followed in space Seaport the first by of are the of the

David. you, Thank

had and portfolio assets our Our a as NOI quarter sequential delivered growth. operating standout strong year-over-year

the continues segment reported fourth third expand. marks new the $XX.X million. were increasing A from in in quarterly consecutive is to NOI. of NOI our our sold million September, that we the three activity This portfolio this income assets producing For hotels of $XX.X quarter, generated layer

quarter assets the reopen, regions a corresponding during As coming retail level stronger addition increases in large increase to generated improves. third due within to economy highest seen in to our in the part These out our consistent million We’ve the base the of a first This quarter, and of collections. XXXX. NOI pandemic, NOI. is in of activity the since $XX.X continues tenant

Summerlin third collections For the retail the our leading the rents charge we highest XX% our with for quarter, in collected portfolio. of

quarters as highlighted due the in previously, sharp several over been to result declines we’ve our pandemic. tourism As impacted has of a last at the Village Ward materially retail

have improvement travel in been to recently corresponding However, as a performance. Ko'ula retail eased, have restrictions we our seen

the Ward fact, to contributor approximately increase result of of of rent a $X.X payment the deferred was partly in In million. retail NOI largest sequential a one-time as

able were to COVID-XX $X.X of up At our retail season lease to host We this million remaining remainder season due work last to aviator NOI, the canceled expect limited Las same beginning million at growth to over back to Vegas with capacity. loss ballpark, path the pre-pandemic a we worthy season is This collections This the to XXXX, levels, where a the portfolio XX% ballpark where as XXX% as continuous a the space with resulted $X to pandemic. tenants. capacity comparison increase on quarter, continue of star our credit the in the of the period coupled comply XX% protocols. to of the nearly entirely of was was in

So to say, fans strong look year. were we our needless and to stadium another into back season forward welcome next to glad

multi-family completed produced a NOI leasing momentum we in quarter, up growth. And third exclusively recent most to sequential and new construction between the NOI quarter, made on these our two-thirds assets sequential during the third strong in increase In multi-family $X.X developments. attributable of developments during the three increase Our the Woodlands XXXX, Columbia. million almost projects of XX%

to areas. currently the this push to rents able rents the higher of to addition velocity, highest commanding in robust surrounding metro compared In we’ve leasing our some been

Summerlin existing ongoing underway this addition multi-family even in higher. our demand, which three in Columbia, NOI to In will Bridgeland to we drive our more have product, Downtown meet developments

quarters, office assets past Our over despite the environment. experienced return sluggish NOI office in have a in increases the steady to few recovery

year. last this X,XXX, we a of X% quarter, XX% generated the free at and bulk roll-off third $XX.X to in increase opportunities increase noticeable assets NOI, expect sequentially to a a in and tenants the compared same for the increase our an our The increase by building pipeline additional office period Merriweather latest with now continue our Downtown of as select driven was million rent accelerate Cross. in look For turn space office XXXX into the of folks to seeing are Jay that, we over and return to Overall, I’ll And activity leasing setting. President, to call Columbia. including

announce operating continue momentum Thanks, our Dave morning, into pleased Recently, highest within with the to provide build and some residents addition we are office to traditional our medical to medical have expanded seeing are To we space care. convenient on to new the mix. product good asset in everyone. the quality portfolio, we types

need a shoreline XX% have development will anchor Kittamaqundi. feet, on our already building establish in adjacent new asset destination. office grow. for continues two With and space. type We of health XX,XXX Columbia the entire have of secured the square we communities helping medical and Lake of that the Downtown growing to our the feet facilities wellness volume Columbia, pleased of approximately prominent launch Downtown form this [Indiscernible] for will This Woodlands. of first to building, successful XXX,XXX are in medical spanning we the we noticed a as our residents Downtown to the launch Columbia as In quarters sit throughout roughly Encompassing to tenant announce square an

build We And this Woodlands, cater break the Lakefront of to District. on during kick our ground a launch serve we ground in residents break will medical for foot by development nearby needs This project as on first XXXX. will start XX,XXX pipeline and to project expect square building expected Hermann. of In this development medical facility will major the is a half local the the year. end Memorial to the primary this to of office a

XXX,XXX Lastly Bridgeland, homes between which asset a another feet operating rent, These new we our be first will unique sale product of homes for yet first XXX in offer hybrid commence the and constructing half for rent for and a in community, our multi-family to single-family will combined XXXX. span will adding single-family square portfolio.

three income. as development our build and these this work managers plan XXX,XXX in of put projects we million continue enhance the extension to expertise community. who our capital recurring property stream existing of as total, this an feet around to to managing of Given our we multi-family, square and leverage portfolio over In the represent to assist oversee Houston of $XXX of in

and We under Colombia have number a of Bridgeland. developments already Summerlin, had in construction

So we additional our regions. the seeing developments announcement these the of demand throughout immense all are demonstrates

grand the complete Seaport year. stages building substantially by been the the launch the to and construction of first team end Food in Hall our will anticipated, been the building team prepare now this for and Tin opening final square highly has partnership The Moving of of the Tin be is Jean-Georges of has to working XXXX. XX,XXX close of in foot the the half with in

obtain Lastly, a Water used New Commission of strides we this continue approvals Planning project. City the to development make XXX great building In approval granted necessary through the the story for mixed York City’s October, process at XX to for us Street.

rigorous Another process. use hurdle land through this passed

only of philosophy already these the with look to in replace we further enhancing we ‘A’ali’i, at close York year recent with review, across end We July we This The the as eighth expectations. of on tower park lot third pre-sales commercial the are units. grown hard vibrancy expect you community construction. end by end we the are final and the nearing space, our character under has stages process. parking towers, total in updating New to on before and quarter the development translates contracted market rate construction. the the quarter condos the sold which the to sales condo as and Ward end October, as and just under and of Victoria the of of At the to Victoria units our conclude of has activity Kō’ula, the of XX% of exceed still residences continue to of and Place XXX towers, the Village, at have the during began City having launch sales number of this deposits. Council. to affordable contracted inventory forward continued of neighborhood. X pace The would four acre led park. activity this prospective The across Place our contracted of in the Despite progress the Pre-sales secured less continues quarter the pre all robust Kō’ula three XX% We

discouraged welcoming a quarter, period live in is time The with We’ve pace been our began Subsequent we concerns. community Island ‘A’ali’i, variant travel each Delta and sell-outs the their to residents the new October. was pace sales establish to historical on truly remarkable. to has of the residents surrounding increasingly when construction this reflected the launch new of faster end homes in of sale tower. of where to During completed of a the Oʻahu able want to mark

we X, to revenue, will meaningfully to to will who that, million closed third be CFO, recognized quarter income $XXX call fourth line. totaling hand review performance. now net bottom quarter contribute XXX like As financial will that of on I’d With Correne on revenue and our over November the units, in our our statement our Loeffler

costs, Thank The the while largely from quarter prior the EBT decrease to quarter clearly MPCs the important to XX% it we In demand our early continue credit the $XX.X our compared last extinguishment note Bridgeland retirement third of million of the that country. Woodlands business strength and from decreased earnings of upon last year period. such tax increase third the as throughout quarter. you, the compared the XX% or debt to as attributed during demonstrates the to It’s to our EBT benefit the non-recurring was facilities. produced across results our of Jay. of quarter A summary, strong before communities

slightly top quarter. In lack sales declined the compared Summerlin land commercial due only in to the the of line addition, last to

increase three quarter period. of to compared which XX% year contribution to million the the represented prior hotels, a compared $XX.X and NOI Woodland a from including Our increase space last when operating assets X% a recorded the

from Victoria earlier, to to performance our towers Kō’ula, across assets, the which were league improvement on up to Village, compared portfolio, ballpark and minor XXX% under quarter. condo three at roll-off that were lease a period. our activity which of our XXX at at made units season, quarter retail pre-sales year Combined units touched the the XX% prior launched units, contracted XXX at Dave up rent select was XX compared we and strong of park, ‘A’ali’i, increased a Ward assets. multi-family As At our strong sales office prior during free due continued robust and the and the Place of construction

on or full prior all throughout the displayed activity meet to remains year a the recorded related loss disclosed $XXX.X last quarter exceed out finish at improvement $X.X Finally XX% Wacker one-time prior to remain we’ve a reported one-time million If income gain, or third resulting for XXXX. a The are to per our we our Seaport, or Taking income of $XXX.X Chicago. net track million at improvement XXXX,which the deconsolidation With diluted non-cash million third this NOI over quarter business. only in $X.X gain of the for than quarter, North we the a quarter per of remove substantially the due earnings higher net GAAP from to share, year year the share year one net the year attributed tower prior of compared diluted in XX% an to in office to $X.XX targets prior was period. previously income million the and once strong the guidance of was our in for quarterly we to period entire in period. decrease look earnings compared $X.XX

second segment raise the EBT MPC done David which earlier, As to has us our led this particularly has our time year. well, for target mentioned

was guidance $XXX previous Our XXXX for to million. $XXX million range

our million to our $XX $XXX thus expecting at as raising revising now the million, are guidance year. $XXX by to million into we were strong a We range midpoint the

are we experiencing recovery assets. our the operating Given in

are to to our billion. $X $XXX full We raising billion million guidance of year NOI $XXX range by a

not despite quarter. hospitality any related raising the that receive We will are fact the NOI guidance we during segments this fourth

net from Woodlands $XXX of sold our plan $XXX non-core generated million. hotels September brings just million of announcement assets in since we million sum to the our $XXX XXXX. of asset total proceeds our proceeds these and transformation sales net The strategic for in As late

Ward $X.X profit also are our year million condo revising by full at at guidance Village the midpoint. We

costs we $XXX first range note million the million million. the completion profits in between guidance are [Waya] $XXX Please for. excludes incurred to previous $XXX fully which the range during million. to to $XXX condo following reimbursed be was expecting With of for to we $XX quarter, Our sales that elevated this XXXX expect at million repair condo target ‘A’ali’i October, our

our to million to Lastly, disclosed previously guidance million we remain track of $XX G&A on for meet XXXX. $XX

We to recent take $X leaving sheet runways let’s balance ended for the Now a on on their quarter of we with quarter. up a capital of our earlier. hand, execute at cash initiatives discussed us look billion plenty the

Pavilion our Additionally, our for at loan A while our developments. on a X,XXX Echo million two a include million rates, multi-family several couple profile. of maturity office Downtown we loan financings loans latest the and projects $XX Tanager same for at closed construction in attractive our financings $XX.X extending developments recent time for our Summerlin,

and we most horizontal refinance Bridgeland the facility new $XXX future receivables addition, million Bridgeland to secured credit loans support by land developments. a into in In Woodlands

XXXX net to quarter proceeds on of overall elevate loan the $XXX to end, in a cash Lake for closed $XXX million positions. resulting our subsequent which Robbins helps Lastly, we million,

close quarter includes the the following the activity construction completion lease the loan the of of repayment upon Additional all of project.

million on this residents using As October and Jay the from in closing earlier, $XXX the outstanding mentioned proceeds welcome tower. on the paid-off loan we

third XX-Q push development this We on for quarter details additional remain supplemental to activity. out executing as focused package projects, to funding as assets. continue and Please long-term stabilized securing latest well refer for maturities on and to our our our support our new financing near-term

closing David remarks. call to like turn the for I’d Now to back over some

Correne. Thank you,

to before the We I just But lines key are on a up points. open do, want for Q&A. going to we hit few

reflects true on and into laser believe taken stock share value closing between actions that basis, the our of driving that asset to higher on these development and committed our We our initiatives shovel net First, deploy value of announced quarter inherent will focused share projects, $XXX tremendous will Hughes. we the buyback, the shareholders for outsized in projects over And acquired and a strategy. last launch entitled risk adjusted ready price MPC. we the We announced and three per million new the to unlock a of the capital our new Howard achieve fully the remain medium gap value long-term. near all we returns

our sheet allocating Second, just capital mentioned. after remains even balance strong, to the various projects I

Our capital opportunities growth. discipline allocation leaves expedite allowed has excess sufficient capital evaluate approach and further to with to us us conserve liquidity to additional

non-core In addition sales the sales, to combined by only cash land proceeds and condo cash NOI, remaining generated future drive higher. recurring our will from position flow our with sales, asset

that, Third, the levels. of And call. to the even With we’d begin we’ve quarter to the as are established our the business, for our of represents through exceeding we an Q&A ahead. now pre-COVID strength fourth like XXXX full guidance financial targets stronger year results now section the points

answer few you Say questions read first the We and technology by generated will can John, that please read the John be will first Saxon. question? by have been

first Sure, township what expected voting incorporate effects city? question Woodlands it a to the into are causes potential David, our asked if material

And the tax make need according with number in saw niche.com almost that to in fellow that Woodlands cost. of side-by-side to thrilled that residents impacts were would they here. and second I’m kind announce that vote a the the number maintain held residents past compromised helped one the John, impact according incorporation the city of the And the voted and came incorporate, enforcement to The And we stood low the against Woodlands developer don’t were our and we and the incorporation really of on place experts the appreciate safety broke. place from to has for that XX% to Woodlands multiple and was have and to fix to Tuesday corporation. one that law to Thanks, live. potential what And as as wasn’t the us as question biggest experts rate this the live. if security financial shareholder

Thanks, David.

to question reach done endpoint be in focused order what faster? in next the more could management and been Our the there, wants past done developments future in have accelerate as on be what to to can the MPCs activity

one the our Thanks, raw asset NOI million monetizing develop John executing XXth retail our say anniversary indicated of that $XXX We company results produced a operating XXXX and have one. a If for look this as just I as diversified quickly last and we demand on back, market as decade meet constant only think to increased as today, possible. looks our commercial over now at from real annualized NOI in focus million reached I would in by we $XX portfolio, feet million we to of own several we’ve operate multi-family. square land, estate assets, office and much

the new within to rent through as see focused how to product and such we’re we’ll expand constantly portfolio and on of our MPCs. accelerating we mentioned on we today’s development can types, as continue these introduction medical And pipelines office single-family look to so call our

Jay. Thanks,

from And next to it does make protect further down think the and non-segments how question, eventual do about yourselves pay sense to debt? the the For billion $X you recession?

the Well, I appreciate question.

debt or taking the by earlier and is be did up We out our unsecured we this that made September year. take senior advantage there capital higher attractive maturities to us that term to shorter rates. able some really non-segment to markets of to as rates last debt of and be opportunities notes Just of the issued three clear, allows actually at secure long-term tranches this at out that went well, jump in

the our sheet our so and was where we at feel overall an debt balance are we debt. improvement today comfortable So very of to levels it overall net-net, actually maturities with and

Thank Correne. you,

a have related Ranch. we Now Douglas questions couple to

JDM split The is Eldorado be back first to earnings cost most of do to relationship and into Ranch. Anything if work? appreciated? you doing comes costs still the and How it one, Eldorado HHC understand help will coming are and personnel when employees JDM anticipate the Douglas with

as details for not but the big we this after deposit quarter, only of good a has $XX as question. to end picture they a and But quarter. it’s Sure, XX% in we’ll JDM that require is million that stake. announced the JDM XX% require transaction next more Eldorado, into the put their close And get option to

that any partner so managing paid JDM it I yes, back partnership you the the earnings personnel will in for scenario same boots of and so first comes in us favorable on the Ranch. JDM should overhead and XX% as will we’ll will village to much does it for split, to holds While be Douglas way. costs, AJC. the executing be is HHC receive our the that not And assuming there cover our be XX% of is to ground will either true expect very team with When member a center of come a the and in for back cost be cost Trillium, come XX/XX

the then Phoenix? for Ranch. the challenges on MPC? you discuss what presents the this if water scarcity Thanks, And secure And continuing to that Can in water Douglas David. has anything done company

top want. access six our integrating On processes rights Ranch in each water It’ll developing water blank announcement. thoroughly implement this won stages community of and planned communities water to desert was And guidelines. design be President state-of-the-art the Ranch imposed sure to put in up techniques landscaping. an of Douglas early impact will very our going already under we that community Summerlin a is from the Ranch woven led have of over It’s desert resources. Douglas scale we’re leading we the of and Summerlin. Trillium, that the of And And development points one environments the continue and be Ranch the make throughout beyond construction, technologies those at can gone and Ranch. this in was experienced and Heath water of low with multiple earliest master portion save will It for all there new along is aquifer best of that directly and replicated it sustainable sustainability. was as that diligence has we the who past millions great first main Bridgeland in going improving Nevada’s our canvas gallons integrate design. restrictions and conserving at awards large to use months, sustainability the investigated the with water tap we have adopter edge that to and can Douglas hand. under question which to conservation Mountain Douglas leading they’ve of And conservation master they like smart industry be into water planned a low and ecology into we in Phoenix year. We’ve best in And Ranch we is are of a work for run acquisition the Douglas the Douglas to meaningful in just local experts for natural the to

be was to going How’s is question pre-submitted our XXXX This David. Thanks, that for last the outlook through through Say, XXXX?

think condos ‘XX operating year. for MPCs Ranch. raised that And XXXX, I providing ‘XX. result, fourth close begin I Well, we the that we quarter. XXXX. assets expect into we remainder sales a much Douglas And will as the for have strong this XXXX and it’s and But a our to this we’re with guidance out momentum guidance lot announced very In across will carry believe today as very we clear not of to during call, us

that growing continue incredible development pipeline to is every will day. We Jay our execute on

have at the will I Kō’ula no complete here segments. of of reasonably to Howard short our construction today we Village, year and Hughes in Ward going excellent Sitting opening have XXXX another We’re Seaport. of grand for will be the all call, on the Tin nothing the in building this

on right, we Thanks, up with call. lines open operator, the for questions All can the those David.

pause At to assemble will this our we momentarily roster. Instructions] time, [Operator

ahead. from Our Piper Santos with Please first Sandler. go is Daniel question

asset you Thank at during your when taking to my the you for on walk us and Wacker. one questions. prepared And lease asset My But stabilize? remarks. North is rest you of apologies through up can this what like this expect the that looks covered if you’ve first XXX

we and and at know of building so are majority the North it’s XX% approximately of America the on anchored Sure, Wacker Bank is you long-term by as vast leased leases. XXX

larger have in space and is is chunks have. lease tremendous. tenants a remaining majority over XX The which lease of term we we weighted are some up that smaller there the space options So, years, think average

to we So only option shorter some the have ability lease term. for those

the hopeful has Chicago, rebuild potential this some some given And price. we’re And quarter get about the that talked or and quickly on asset leasing with to that liquidity bidders highlighted we’re that pipeline Dan, next that more sale, to two. started right to is in the price we’re the the first post-pandemic over we asset. for over we that execute in months non-core wait Correne get right think hopeful position, in on as the that I’m going be next to for rush, able done we’re outcome last I company. the we a market can a not leases as quarter, But our at can with as the not several

wondering was it it appreciate out on seems could department sales. pads give there it. I if Summerlin, Got a color and seem deposit more $XX some would significant would that. the I you million pretty like like at large a is

any be color would just on that helpful? So

I think much And of and best increased EBT back Dan believe I the guidance made regarding the that quarter. we is during by demand can feel that guidance in year. we give deposit, both confident and And the transactions fourth reflects at the that well for the midpoint, other as the for a we color that our MPC the there’s Summerlin come as up will guidance increased taking remainder very land, great for as in you did builders Houston. we in that obviously, remarks our to as

you. Thank

maybe you given comfortable if strong would kind last I do Over to Ward consider one feel one one, at pace? the Just a development may. year demand pretty still accelerating Village, towers you two at the tower year? or Just of that

we’re it’s thrilled demand And The progress. after sitting really the three months continues to is one those this here But that second only believe a quickly in launch this the I tower. can pre-sell period. as has of hopefully, would workforce the meet despite a we that price later, we launch the that And to I to with our team. we next job increases, market three next tower. have opportunity a housing the while that as demand. percent towards to may early with more think to And been build I’m tower our July. of be middle year can’t And already three-month to year, launch are strong. And launched our then remain that that, Well, we not testament be we competitive. over increases

I of maybe So XX always six too we XX demand. If But get that meet to exact might feel moment, great if little to we’re two a instead sitting to can where demand. accelerate every into nine better we we the are, way same launch think much. to that trying a could market be bit to every them we months that months, tap at

Appreciate That’s the you. Thank it for comments. me.

is question ahead. Peter Please from next with Jefferies. go The Abramowitz

the have as at of Good, good. there, as well for I left? office that leasing Seaport, just some retail prospects on update vacancies just you want to some give the the ask could an of you space

historic club of And and for us, office at that for York be space. some tenant like hopeful we those on and areas alive an in the the the smaller really spring that three and like we’ve are fence perspective the months. then been able lot space. built sides. right that’s Pier and we and the continue that some have that sees has so the to as do out that world. value activations of which pandemic I And retail on long-term great to point, bring we’ve getting revenue to next the the and several some to restaurant that some it market continuing some concepts up detrained the we’ll this Pier, of to open opens and Nike of appreciate in to lawn we’re we open do, right survived think those spaces views for that great And in like City someone great that’s able look the a that helped having are drive tenants, now. leasing we great. other by those and been in water comes spaces has the down been out keep haven’t waiting that district, And the new And been with we’re the to going shorter space term users impacted. Tin way From that backfill appreciate And the impacted we construction been next as the XX tenants been city. other many We’ve New the Como bankruptcies like vacancies, able question. Clearly in in those of coming Corso building ESPN

to see grow. going We’re that demand

currently looking That’s And how work portfolio, kind portfolio? your is that vacancies of to it. some in that got how lease office what’s MPCs, happening, physical the your core your of Okay, looking to then in you’re office helpful. up in that’s is utilization, the slowly like utilization, and return impacting

in Sure. And well. daily as Houston on the you seeing And some working square has Houston, velocity X,XXX have continued lots sitting probably three And that the were are And and more we’re great. to a in day. told we talking grow that are the feet. full larger XX,XXX cars deals every here quarters to And now I square to the parking Like that on utilization picking floor XX,XXX I here that’s And which X markets, that ago, Peter, Quarter here, basis. ago, are up XX,XXX started tenants in can would size. were week, touring here leasing tenants most more every even to in there we feet. rates tell you are

over to our Vegas, and building because new it in to are continuing XX% in the entirely here we of grow has So leased the In momentum Houston. addition our there really buildings stopped to XXX% see buildings LOI X,XXX are two under aristocrat office never that that construction full, already. two

through that X,XXX. very Merriweather And of that in pipeline as the that basically will great. well deal in similar we’re wanting XX balance take hopefully to been to perform very Colombia, working has XX So continues very, on And are entirely a full. we story speak

continues momentum of as get the good to steam And that pandemic. to on leasing gain folks coming very front the feeling the office. we’re office out So back

of what XX it. XX% like or something is to that you able closer physical to And it Got utilization or kind are XX? quantify is, is

on XX%. general across to a XX. office for it and it’s the I’d have But is that a depends it’s that the tenant building XX%, in But in our not If to yet, I on It between same they’re depends has building in not the building. XX would say back the that range. market. and say portfolio, clearly XX we

long-term to able single-family Okay, That’s it. underwriting got helpful. for building, is or you advantage then yields could medical hold of and that quantify the demand? is kind the of rent then one take final as office of a product? view And office depth for you to you and something medical something the the you’re for And private then the on Are that look that to develop me. market

expected disclosed. timing of say the yields I’d thoroughly all projects, and and on those stabilization supplemental into the well, we construction as be dates, start get and they will

well and cap it’s And I underlying projects, different these rates. returns excess risk you to achieve of say at we’re doing, outsized, adjusted a nothing we’ve to new the years. in think than safe expect done in what any for past that trying past yield should the we’re develop those development XX with that for

as having that are office, a users for core share. that That’s a synergistic buildings the continue to I to medical of market those we are that multi-tenant something dominant want hold, terms think, hold. In with

I suit a that opportunity to treatment very situations unique create build the have for use, a medical like think office, MD cancer a us a traditional for center versus where a different presents for a we Anderson value. unique

Please The next go BWS is with ahead. Vahid from Financial. question Khorsand

the Good taking morning. question. Thanks for

not properties in Could sentiment to you First homebuilding seems versus be talking right there’s Summerlin and a now difference. in is homebuilders you necessarily the Summerlin, about that Texas a build-out there issues. why the I supply different Woodlands were there issues talk a David, but their sentiment, bit question, guess Bridgeland? and just about era little MPC Whereas seeing

Woodlands that and Bridgeland say Summerlin. would to I compared So,

one or super have similarities whereas meaningful that are lots. sell Woodlands and supply and doors have those some and in seeing as some Woodland pads differences windows Summerlin front we or been Bridgeland, Hills whether been in they’re constraints appliances As There we and selling also its well consistent. that very

longer to they’re a therefore, builder super lead those sales pad the super the pads for tomorrow. much sell a buy they out a therefore buying So lot when into home today and time that is home buying for future their today versus

remains appetite their So a buying strong because into bit future. further the they’re little

weather difference a approval deliver two months. ability the because three rush down and our has slowed And big locks been other to in that and wet the just it backlog permitting summer supply in been the process has The been has to this so builders Houston there is by about has to lots.

in at we’re the the And We’re sits and the northwest far terms for an all months. is below sub on supply supply ground months low across in lots eight in a Bridgeland six developed region builders. we’re of that time

that working demand hard has builders, demand. behind. weather the put the and And meet some up. But delivery have of the we’re from have a caught expedite us us approvals there get put to we to tremendous our just behind to trying is So

XXX something, think impact? same the of any you much it from homes homes up is this brought the first just vein, make up homebuilders of so XXX or think really brought an In idea Has in I that it. doesn’t rental Got pushback demand something I was when Bridgeland. much been there the in single-family there that I

out component no looking it’s meeting the it’s directly builders, this buyer the to there’s temporary home not a have instead segment is a of renter from it’s it in And or meaningful it’s who of population job, or see either been But home is we necessarily a a actually they what a that purchase. they’re options, a person necessarily working the because as into for same a rent competitive, at that necessarily pushback And the looking at market someone single-family home of for the think not home deposit. see, business venture there doesn’t marital or because the that not of public some of you get I issue, look is is not that buyer. builders. the there’s which is No, if directly

luxury then question, type income it’s the my there on see upscale. coming I any you’re And an to think, next park, entitled last where do limitations is you’re like ultra Ko’ula being have and or in, that’s go and demand Victoria seeing are prices ultra the one is building luxury is? you I don’t and just the know, maybe market that workforce this you But now category higher, is if or freedom Village, extra about luxury Ward going of and ultra versus seeing Place the I is as

on the for moderate, pocket wherever demand workforce. able than creation was that, the market first potential fast housing. And And the working now market and third to a the to can of and workforce between could And And next the balance of remaining we see limitation delivering as the right tower type meet we’re in build [Indiscernible]. XX% us, Other we buyers of that, need met of to accelerate portion we with have we’re that So a deepest demand. out of that value if the other the hit can. be in we our expect luxury, widest have product first pockets upscale, second do ultra we we’re the row, most all that that to as our for potential units up we there are than requirement ability us. to is the

Got very much. Thank you it.

You’re welcome.

go Barron Housing from is ahead. with Alex question Research next The Center. Please

specifics job approximate a losses lots you And as Wondering price or do if Since the year. could think quarter. first those sell could Thank those on ask can Great Phoenix indicated the MPC. X,XXX guidance you offer as and XXX,XXX, the to in far is morning. you the in you would you question on of good give on first more you, approximate what’s XX,XXX happen? sales what quarter I want new about any there range? the in

our to it next that as that X,XXX least done had in size get on probably the Again, that’s at expected will time. about that lots half. announced of terms talked really depending per density And neighborhood. on feel announcement year. the transaction, be XX,XXX at depend I I terms transact we’re Ranch that in a to lot range But we And we Douglas going of we et said about very lot. on in which when the call So can on first equalizer We cetera great granular focus we kind density. that’s variability acre. on the But and first as and at size of that to lot get price point Alex, half in the this to XX,XXX good of we per of able in think

sales where consistent the of sense works have or of just say it other that a in a quarters? to pot every to you sell be X,XXX nothing much visibility. be going words, way In the when few for pretty to quarter it or be more then maybe could the there meant of is Summerlin And that that imply trying half like is is half, first second get and you big spotty, going a a in nothing you I’m land to don’t kind enough

I it bit that a more lumpy. be to expect think little you could

we flow would of I in Douglas Ranch for most Phoenix same better but that methodology cash landfill Summerlin, create Hughes. it Howard would value hard work is the And our company. results, to business that think to creates in use bit we and the a in I use lumpiness lumpy, expect the think we little which all but does more the drives much that

year able new a of much lots sell supply half you a And selling lots of of first were selling meaningful year, So, a for as those not to the X,XXX is last we’re homes more that we community X,XXX might if exciting. lot. in I expect position new a getting year as our would be year. Summerlin if next Bridgeland think remainder is just that’s the where to could the community X,XXX started. in first transact X,XXX for And do year amount last a homes But we about a year of XXX

bit that to could is think do little months, in So first think six every year aggressive for existence. a communities X,XXX we I lots

market good the Well, pretty is, land that is news constrained.

builders. from plenty of So demand I find think you’ll

We agree with Alex. you wholeheartedly,

a good there. deal You guys got

Second Hawaii question is on condos. the

Victoria ‘A’ali’i, the this on closings dates on and Village? can are park in So sense three Ward congratulations closing a the on Ko’ula, you on give on and first time us towers? Place on those expected What new

close should at a that. So be end the And Ko’ula we Place of next expect year after about to Victoria year. then

Okay.

Now, haven’t park just which on we construction we started July, the pre-sales in yet. started

team internal team new can Every yet. So first towers in contract. great last for team a is in between Until I race Because tough until we’re has great we We a which we’re construction we loan time me or the and won, think pre-sold there our terms a park, have the closing a a a sales And completion start basically have sales date, have from to we pre-sold, or for and pin almost again, which XX% until we our have the there’s don’t tower, construction date. contractor yet news we love don’t GMP don’t it’s that. done of construction us. for which a we process our construction and XX% GMP get down for row, who start date there. start four a which

to of down. the but we we appropriate in And amount have construction, are that and start with we thoughtful can prudent we sure we before place make costs our that financing do project want so completely deliver we equity. that have So buttoned that

that It condo sense Ward can prices a tower? are some you Village, of price -- on range give And of makes park sense. where the for this type us

So across Park Ward Victoria from directly from is the park Village the Ward Ko’ula.

front should right the passage or tower great second to row of row meaningful time Ward one. bit Village that a there pricing perhaps front be the allowed sell is in time been as Victoria to project but think and has we Ko’ula, higher project, row. little Place row last appreciation we’ve able it I sure And Place. high as expect from that the to next And that sweeping premium achieve us So behind we’ve make with in Victoria not a that seen next than views you second a every

of Okay, luck. thanks best a lot. And

it. Alex. Appreciate you, Thank

This remarks. I concludes and question session. our any to conference closing answer O’Reilly like for would over David turn to the back

you we’ll our questions soon. Thank lot Hopefully road there show. a of at conference upcoming and and on again, available you we’re schedule any talk joining you help. us Thank for always today. between And see again to the now if are then

you conference The attending for is concluded. now presentation. Thank today’s

may You disconnect. now