Howard Hughes (HHH) 6 Aug 222022 Q2 Earnings call transcript

Hello, and welcome to the Howard Hughes Corporation Second Quarter Earnings Call. [Operator Instructions] Please note, today’s event is being recorded. I now would like to turn the conference over to your host today, Eric Holcomb. Please go ahead, sir.

Good morning, and welcome to the Howard Hughes Corporation Second Quarter 2022 Earnings Call. Counsel. David Chief Executive Head Financial and Riley, are President; Jay of today Peter Olea, Carlos Officer; General me O'Reilly, Officer; Chief Cross, Operations; With Dave Striph,

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

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

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

call. Good and you, us thank earnings everyone, second morning, quarter Thank on Eric. you for our joining

HHC investor Seaport. fully has up as him over Senior financial a our highlight Chief years segment dedicated as results the and transitioned of who our overview begin, to call, off start today's role brings previously company. Holcomb, will master Relations, on I'll on Dave followed Village. of new a the the new quarter performance headed performance as for to community. Staff like many and in who quickly our recently happy would To our Before brief development Saxon, experience communities of Relations, operating cover joined have I Investor provide President of in Eric his remarks Relations. updates including John years we the team, to of resource second welcome projects for Ward provide Vice of our the Investor Striph XX planned board Cross will by on we're Jay assets, Eric Investor from the who in

a up Finally, Q&A. the open will Carlos results Olea we provide our of lines review for before financial

the XX% the at revenue land a the despite our MPC to Looking Seaport each of backdrop. challenging the presales operating performed sales following the quarter of results of with XXX rose XXX%, of operating XXXX. incredibly Ulana with in period, units incredibly sales At our largely increased all units second at Ward the quarter, and campaign economic revenues to NOI increased driven Village, compared XX%, segments sold XX by robust in March. in presales quarter, asset strong well during the condo activity remained contracted its addition launch

volatility economic strong have of unique results, the we're business ability year-to-date, assets, quarter which resiliency our today. our both and model experiencing their withstand like to demonstrate of portfolio proven Our and this of periods

effort are an one to Texas Today, is recognizes to by without green these diverse a many with communities over with products, U.S. of future many the tremendous over important proud sustainable extremely the our now being sustainable and We're amenities. growth we recent urban recognized in communities alike. the first home that Woodlands way the Our it as extensive extensive residents attract this designation. the largest would as achieve the space, Further, our accomplishment earn precertification is strengthening and driver tenants to and will the is achievement not Bridgeland designed implemented as be MPC Green years, and has assets life immense lead of new possible growing view quality into world years. this that Council. the of schools success a is effort MPCs, highly gone work prestigious the status. precertification acclaimed this Building Woodlands and promote this in the of develop initiatives Houston This Lead and

Summerlin Land segment. looking by or prior XX% $XX up Now year-on-year, fueled to XX% predominantly at second MPC compared our million strong substantially land Revenue in sales, the a the was quarter, increase increasing and totaled in Bridgeland. year. residential sales

our sharp growth million. increasing builder since a participation average the residential continued last in acre home price per this in XX% revenue communities in price experienced also XX% sold, to increase We contributed $XX Increasing prices time year. to

revenue MPC XXX-acre to compared X million a million quarter, primarily during XXXX. of X% was up in was due EBT significantly the the earnings our ultra-luxury only to $XX $XX segment completion. Phase was higher summit, nearing of While quarter which reduction in This is from Summerlin, the second of community

not did limited. lots custom or to remains prior. we on units is comparison close inventory as During sales in XX the unit in This the the year the any Summit that quarter, saw

subsequent we to Land, venture pleased reached launch X Phase to announce agreement with end, Discovery am that to partner, the of I quarter joint an However, Summit. our

sell this additional home sites unique part truly of this XX As community. which luxury land, acres will contributed XX we be to in of an expansion, used custom

lot posted by increased highest year, the their Bridgeland, In a second XX% well sold, in in revenue Hills the available histories. Houston, a million, as strong implied both quarterly more We higher. builder an also revenue inventory price XXX% in price for saw per Woodland land XX% sites acre in at and EBT increase values to superpad sold in residential as increase acre the all-time home generating the participation year. XX to increase sales Summerlin in per XX% residential a prior Bridgeland the a the quarter during during price as where representing prior escalate from acres of In remains detail. Summerlin increase quarter, at XX% acres results, compared $XXX,XXX. X lows, Looking $X.X at continued fueled

growth of second XX% was impressive Bridgeland's result results, XX% higher EBT the the of compared staggering by to the This by increased sales, EBT a per quarter site's versus second land price a quarter driven and these As prior the first residential Woodland fueled increase year. first by sale land acre the 'XX. for In Church. in was community's commercial continued residential our a Hills, strong robust XX%

Finally, taking village X,XXX the to Douglas second Phoenix in Valley, the needed lots working West X,XXX-acre MPC's first a to infrastructure first in homebuilders Trillium, look contract the install at the the Ranch year. diligently to during of half we're

on million. interest XX% its option to an far in nonrefundable XXXX. August Ranch, a up Douglas XX%, require JDM additional with also that quarter, XX. to a Overall, pleased exercised option repurchasing strong for which on Howard Hughes million They very we're to we've paid seen secure second $XX MPCs results will first a total the Partners deposit expire $XX During the of X% in a ownership thus or our second

While or to Las homes. home homebuilders are and a experiencing to new still overall of when XX% healthy Vegas Phoenix, a In declined homes, for decline sales our supply and particularly number in Houston, new the outweighs homes remains compared demand housing, new of XXX MPCs last year. quarter, in reduction available the the

pre-COVID the related high the home Although second sales results from levels. X these drop years, is past largely the factors. to over experienced during solid home remained abnormally The down quarter levels comparable sales and sales X are in to are

the homebuyer. reason, affordability are and rates First, average mortgage primary is home inflation absolutely for and rising impacting the

first home all-time perspective The seasonality are second is XXXX But not quarter. that to sales typically come from highs. the slower see and we in that view. and housing Summer XXXX seasonality a as ramp for to in to months or starting are in up did back demand see quarter we into surged fourth tend

supply related. is factor third The

are to continued complete their deliver disruptions, to due new still to putting builders homes improving, pressure struggling While homes ability new chain on supply the quickly.

land expect and constraints. housing This homebuilders in in turmoil and this today. contributes into momentum at MPCs our an from states, higher believe purchasing to MPCs continue have play, prospective in quality an attracted exists Overall, the we we our often allow one prices to to we remains reasons live, continued continue mortgage that continue. to cost work buyers, additional communities, the People demand for for and look of tend sales are moving power, and desirable future elevated market mind, we of inflationary MPCs cohesive unmatched our highly appreciating better setting. to in rates opportunity that the primary life the have is which to as rising These strong. of despite offer these outlook them to be all outlook continue which year, the remainder positive. to one the our lots remain that forward which withstand for And to With purchase strong

second to of As tremendous summer visitors XXXX. its on in our attending our the is intact historic an events concert have number successful throughout during Rooftop quarter MPC the had at various Seaport. most foot XXX,XXX a neighborhood. increase the quarter yet. XX% this a of We significant which guidance period year year over recorded last years, increase year over leaving in over highest guests, The we result, for with pace XX in X traffic for series, to are Pier full a Shifting

iconic performers, Seaport owners $X.X and entertainment X-day Fulton also Yacht private Dogg venue lease, XXX% quarter's now establish $X.X a increased Snoop And including square exciting lease Wang including the Ape million we the same space Overall, activation, generated this by loss the finally, in at events, further foot Fulton revenue for of net and into XXX% a which spilled the we Ape a continue for of the million, in showroom. boosting operating several our dining over for XX-year Fest, Market year, Bored with Rooftop hosting leased. retail headlined restaurants to million Alexander improving a results fashion is new as outdoor brands Seaport's This operations, takeover increase signed Seaport. $XX York feet building square feet the the A-List premier, We to traffic New including to XX,XXX a the to and City. of hosted transform several With most NFT over into the Market headquarters the Building, over Eminem, period the last as X,XXX Club global XX,XXX for revenue quarter.

Dave to review turn to Now over Striph, to operating our call the with I'm results. the Operations, of that, asset Head segment's going

significant WalletHub named above by to of of majority location boost favorable In recognized due based NOI available The life. year-over-year as MPCs Riverwalk basis. This same you, or Downtown our all outlet the for demand in the million, improvement the NOI building delivery Colombia, operating increase construction of year. the Woodlands million in over this projects our This activity our $XX quality XX% the the was from well result helping income. coming the results in momentum which Downtown increased this our these assets, continued Orleans on Class in office Columbia. last multifamily the recently strong we Columbia, which which additional is period year rent the and Bridgeland, towers was to bring XX% rentals Woodlands-based with X have has was sold. representing produced and over opportunities the across million hotels of increase under increase net NOI leased in including further leasing other segment New in the quarters. versus $XX our new versus noncore primarily operating the the same-store a positive With prior our at for projects with new to of attractiveness and reduced of assets, continued a XX% second largely strong strong U.S. asset momentum recognition rankings Office The on lease-up of is see A Thank despite an #X quarterly at on we multifamily that year. improvement Summerlin This increase been and in in properties drive reflected XX%. achieved online David. communities of quarter, This XX% units capitalize was in Colombia, increased new and rents The in and demand $XX as seen rental and been prior as markets our the portfolio. a the

seeking back the an As their in companies increase employers bring we from seeing office, are continue and activity. the to leasing employees recover into are pandemic to

provider a improved Given A quality we unmatchable short to housing flight in of as which a one-of-a-kind market, and in today's balance. offer exceptional are the an communities beneficiary lifestyle, space Class premier including work-life amenities, clear located quality commutes,

space signed this leases office which over Downtown completes CareFirst lease XX% square This the gold foot similar a in square XXXX lead executed of and success Merriweather tower lease-up new Columbia meaningful we is improvement office in These NOI an in quarter, a million new the by with During $XX feet XX,XXX property. Woodlands. renewal Retail were with office in by leased. at slight saw activity COVID-related of largely reduced We in the with XX,XXX Ward in XX% environment. driven with lease from nonrecurring had fully gains reflected benefited increase stronger NOI building's increase offset leasing Village the post-pandemic NOI Summerlin, prior over of XXXX. partially now a which payments in year. a

Riverwalk relative in NOI payments, year-on-year with during Summerlin square was NOI these Excluding And the reduced in Orleans to per quarter. pre-COVID over up improvement also due sales the foot second New retail was finally, of XX% to sale peaks.

the performance strong Aviators, Las team. of a AAA attendance increase million and same still time representing shopping also quarter, at restrictions place. our XXXX performance after Las Vegas far the operating in the second contributes nearby in home surpassing year. $X the to before fan COVID Aviators attributable Summerlin of Vegas In in Downtown minor levels the the baseball NOI, baseball improved dining games. the prior leading component Thus Ballpark to leagues to This XX% as are generated Ballpark, the enjoy at in increased HHC's from and season, Another the is from fans the attendance, were when

increased losses from XXX absence from the during I Jay almost Cross. call North that, nearly the first which NOI of at entirely the Wacker, operating share our our will net sold assets of With quarter. to was now Finally, JV-owned turn $XXX,XXX, President, over

and to XX,XXX in to Thank tower report buildings office pleased including progress you, we office Summerlin Summerlin Columbia, Dave, make that in feet and over Woodlands. and the Downtown in development Bridgeland, units continue construction, on square good multifamily in XXX,XXX medical a I'm X,XXX our projects good morning. square under X foot

the designated All on for of respective 'XX. early are with to which according expected deliver remain to second majority of these or the track green buildings, as projects, the half schedules, delivery in XXXX completion

single-family to first to outdoor as X commenced break our XXX MPC. Downtown bedroom demand in new quarter will complement kind underway, acres, single-family product Wingspan, type we are In during the This X as our to on floor medical in the build-to-rent tenants addition this projects Howard foot attached single-family plans, and which and This XX,XXX will begin well We're in in product spaces its encompass office expect homes the on our home to already private excited Lakefront development strong seeing we construction of community residents this benefits, XX will Hughes its offer 'XX. unique building we quarter expect offerings for first and Columbia, to square late garage. Bridgeland. over for multifamily new welcoming later to In this bring Bridgeland ground including District. Wingspan

XX% next hall are and one-of-a-kind destination Building complete, and the Downtown the for Columbia. actively construction offer for are health experiences aiming to With e-commerce to the XX the will mobile hiring staff we of we addition substantially At delivery. wellness Link Tin this Front ordering which pre-leased, unique and training and make restaurant District is an over Seaport, project in of food platform already

labor opening grand to during planned has to the had been celebrate the we markets. hiring challenging due Although tight summer,

$XX Ward development. as which last XX units site the we We a quarter, making Water look X at result, celebrate A'ali'i, only opening in million tower year. the late opening, for this later remediation sales hiring acre XX gets sold long-awaited Seaport, we XX details buildings a forward condo delay in this on work transformation construction project XX-story million XXX progress to underway. providing to As the And of parking This during we units quarter. to temporarily more this the and at world-class including on are turning generated for Also ended closing Hawaii, completed grand expect onboarding Street, remaining. XX% now the started with mixed-use commencing $XX construction we and process grand but quarter lot to had Village the great into on now the

X which the XXXX, to XX% sold sold. a Village. Ko'ula, construction, Waiea second of we $X revenue, quarter to with out, in contracted this leaving Place, will fully first million XX remaining only sold tower. be At unit in XX in just remaining sold already track the presold we penthouse Ward Additionally, generating be which quarter, to under we ended Victoria in the deliver X completed for X is unit Ulana, towers activity quarter, at Victoria during contracted third second quarter our have tower XX% remain units, including at Presales towers X our at presold. this We in next XX with be the delivery at the expect Ko'ula the schedules. park units Place, and projected and on robust. in with we remained XX during park the X pipeline now units our

to to I to HHC's by secured acceleration would projects the is construction the that, are represent bottom Carlos completion, Our At the XXX to the And significant this to call ninth over of will which new tower, start our condo pipeline. expectation like we hand second during have presales units fuel Strong meaningful year. now contracted our our within the fully towers nonrefundable that workforce these revenues to These housing, line deposits. half future a come developments XX% park with dedicated of contribution of Olea. tower of the presold. quarter CFO, which will will Ulana, during be upon with

Jay. you, Thank

real to headwinds, uncertainty or of during have in $X.X or In the the able we of quarter, all generated our first the were in million delivering segments. strong forward $X.XX million the net carry market. prior to despite compared income net of ongoing growing levels Within $X.XX $XX.X momentum we share and per quarter, generated which reported estate volatility across this, of second quarter, economic summary, second during diluted the share diluted strong results During year the income period. per

Our a equity quarter in X% of period increase in reduction second the despite million MPCs EBT, year to a prior a of revenue generated XX% XXXX compared over million, $XX Summit sales the land million and from of increase $XX earnings $XX Summerlin. the

quarterly into to NOI, resulting quarter, of compared $XX million $XXX,XXX $X.X units, rose buyback condo end, the below were of pleased loss businesses, the the the X.X additional improvement at continued XX stock the delivered sold assets XXX% net we noncore of performance Outside have to and sold million. $XXX XXXX. during in net net at of the $XX Overall, from we average we These the we very plan share in below the year operating redeployed property collection of Village, At divest XXXX, condo revenue with we with back Orleans. operating a announcement million, core which repurchase $XXX,XXX period. we leaving respect million outlook value. of prior assets developments outlet segments, to our MPCs to $X.X $XX intrinsic loss, proceeds, retail XX% Since business New buybacks, are increase shares this in the for in our on price assets at generating guidance XXX,XXX $XXX repurchased fund commitment in recently year which year million to of is of proceeds our fourth for full year $XX have Riverwalk of noncore our completed period. Together operating sale Subsequent quarter net million million asset period. for reiterate Ward million an XX profit, for been transformation prior closed $XX this new We shares us Our the our with $X our a value. the with period. available segments. million, to of loss, shares repurchased With $XX, Seaport, well At purchased prices an million our prior compared quarter prior for Despite year our in second up we recorded favorable over million. capacity. far generating we in

on have outstanding approximately throughout balance we of in this our At in we the continue billion Even words, sheet. our the with of at launch million into other sufficient of needed at projects. Looking of near-term cash equity the extensive hand, the later. or had In quarter projects and development XX% perspective, XXXX. remainder plenty had $XXX a of currently the end providing remaining million. to fund of an capital year From we additional quarter, with end us $XXX pipeline is the XXXX underway, this to debt and $X.X due executing contribution to liquidity only with limited maturities developments development

On side, in for some we properties. X the $XXX million closed financing refinancing

X this nonrecourse million So $XXX loans for X interest-only XXXX. was Woodlands with to related the in in maturities multifamily assets

a rising note call it or fixed our to risk. would mitigates significantly I With like David to that, interest remarks. is closing rate important either turn for environment, which rate this to is to the debt that rate, back of During swapped XX% over fixed our

To on key wrap start up want Thank I to Carlos. touch points. a call before Q&A, few the we you,

XXXX exists the headwinds during our the in model volatility. outsized continues at reflect our and periods unique financial land business our demand lot inventory Housing in far our remains that for of prices results lows, rise, of while our MPCs. strength to thus signifying historical withstand economic First, ability to

Our our with and operating rising and space. for retail growing is office asset outperforming rents multifamily, portfolio demand high-end

solid our going dining with to continued business forward. Tin experiences. remaining the our NAV steady construction, full grand best projects and continue a lease-up the continue the completion opening one the to Overall, fundamentals to office its is now we is of pipeline Seaport, best space in At yet have we of the higher. the recurring Building, the but books, of of that slate in of our our to in grow quarters With for unique new of will stream see drive income come nearing growth our demand history

disposition sizable remains despite despite our throughout at net to Second, meaningful in million We've we've successfully sheet our and development and to million asset a pandemic, X.X headwinds repurchase our amount strong, $XXX completed proceeds projects balance incredible repurchases. XXXX. shares within core of the new than announced capital share noncore plans on finally, value incredibly fuel the unlocking MPCs to more discount, new and allocating our higher. a driving considerable NAV of shareholder And used projects

approach Our is dividends, answering considerable leaving generated us growth. We'll to the paying you disciplined first by future like capital portion Holcomb. can for the with begin been by read the question? be allocation by liquidity start which With few Q&A to Eric will fund Eric, Technology, of Say opportunities additional have now we'd questions call. a read that that,

David. Thanks, Yes.

Tin $X.X one? is had first segment first Seaport? question is you this take open? expected Can The And comment to NOI Carlos, Building million in also, management do quarter. the earnings Seaport for of the the negative want the when trajectory the on to of

by well. Thanks, good and everybody. $X.X Seaport the Omicron variants impacted Yes, the severe morning, Eric, was impact that as very and the in in the loss city and quarter had Delta a still of million first the so

our milestones XXX% to traffic with events bring and from upside losses last leasing unique in us July, drive by with second decreasing continues for concert Wang Pier square to the Tin second the from we see of soft which quarter, a long XX,XXX Then the we the which quarter $X.X area. term some concert is that start stabilization as quarter. noted swing series feet the leases ramp loss square to for Ape that Market of the the near Fulton foot we the we of on lease one in we such then operations, we the value Fest, and That resulted the very to marketplace Seaport. of had a of both area later out celebrate expect to signed very to the traffic remaining significant the the drove million the XX% lease to tours fully as basis. with a in sequentially foot the year-on-year family opening a at building increase Building foot XX. with million our and However, significant the Seaport Alexander and specialty XX,XXX private week only standpoint, revenue friends closer the in just impressive space impressive to significant Building, to saw in and $X.X might of term, will office Building, this the Tin remaining And opening up leaving grand believe to last deliver the the And operating the in this we tremendous the while XXX% at

Thanks, Carlos.

and rental retail virus you do to maintain the is, physical see with question Second more Dave? or higher spaces retail expect occupancy shopping. your COVID-XX slowing and customers to returning

centers are new this morning, our performing environment. in I Sure. much think better retail Yes, everybody. Good

many restrictions quarter compared to behind seen retail last this you've And comeback with those Village say XX% since of to strict leasing As our have the year. levels we've travel Ward lagged heard really, XX% me in restrictions rest due Hawaii. has increasing lifted, portfolio a to strong times,

able pandemic the the with to addition, make much In really we've who tenants replace across portfolio, been it higher who are through stronger square didn't sales foot. producing per tenants significantly

how recession David? business. the affect The question, third your does

income-producing Corporation, per And Howard question. the is say company largest intrinsic or risk-adjusted a into Hughes assets, outsized basis. share answer live, our of heard time me returns. Eric, you've commercial converting at driver value land Happy the Sure. on increasing sleep again, thanks. the Look, NAV increasing that eat and NAV we of and breathe, to raw the time our

is that that cash less cash regions, limited impact demand Our sales slow. If first there's the at ability home of is said, no to operating with showing rate demand increase is the on our the fill and strong. NAV the basis, company any could in the those that comes company pace the incredibly in lease-up and in could our buildings. share or growth assets our of same-store year by execute a that of recession per are of that of incredible across and on a the EBT, our MPC that half that With would strength NAV all incredible amount of into comes which shrink the portfolio results we there signs growth, to our of of

don't answer of directly, your growth today. our question could we of look, slow So signs NAV, of that it pace the to but see

economic balance shares, XXXX. pay conditions is, to Carlos? question you the debt handle the of enough liquidity do maintain Fourth to how opportunity down stressful repurchase and like spring

we our highest spent on, due which a look look at and price have in other debt, relative we'll we that we'll of of our intrinsic the ended of then as we our XXXX factors. on I of of at does where and development later, our to million lot the risk-adjusted management in capital remaining We'll these continuous our look business attractive the areas decide -- our or not very at it's costs, with at look We'll commitments of we'll cash have the which $XXX unrestricted, million our the team. rest we development a which different opportunities. quarter value process debt hand, of Well, time still or which look to XX% at until those deploy at one we have believe return, stock will is we $XXX

Say. buy new Great. from Jay? Are properties. to plans any question One last there

Eric. Thanks,

first opportunities development Of development a we're, company. course, always we're because foremost looking and at

year, opportunities of scale, significant good product decades-long embarked A we've now purchase our of Douglas they quality there. and and last think and far opportunity are we between. However, acquisition example was when on type, land a few of Ranch

lots. first we the already with an for were long And quickly, We of homebuilders X,XXX that's get Ranch able our are example into pipeline. very market Douglas a that pleased negotiating to

another for if and to development strong that, our from have worth buy long, opportunities So within of those feel will with town keep we decades MPCs that a we MPC, demand also going time. existing us long pipeline And residential weren't commercial we that centers.

we're to that, Thanks, going operator, open Jay. lines right. All the Q&A. to With up

the Instructions] with John BMO. first Kim [Operator And from comes question

XX% land on talk And price of rates. values Bridgeland rates sales. face per sales? I in about mortgage home went and of in [Technical you impact Difficulty] it's the impact was rising mortgage remarks, acre up prepared had if land on the the sequentially wondering the could particular, at But

that And so us mix to due those were this of remind was can prices the when sold during the negotiated. And land you the comment was also on, quarter?

a remarks, John, And you meaningful welcome and the ground catch-up you. we show but level in to to have playing Howard product get to that they imbalance It's driver have that us to in -- coverage number that Great it relates acre, level I prepared our mentioned -- them call that lots comfortable just and to the inventory sales, question. they inventory of excellent grateful as to tell seen Hughes, with strength on as sell. finished the we what even view, and per question, to land would hands welcome. we see of And we're slower feel John. Welcome to in want the my have home the largest an price supply-demand not with, an in enough And what is in in homebuilders. so they is are they in still has sales, of acres, an are the land home as

this out of moving communities and our of great there price there. within year, the homebuilders of not half lot that a the our has results price want there our that they're has be quarter I per a into a this and a to communities As that there, think, land. And the tapered, homebuyers and be demonstrate acre willing and to translated that, to of result, residential to are pay first for demand that lot

of price us give increase that where can breaker continue growth Or or to to or other the provide? any year? indication be of the you remainder guidance the Can decelerate for is price will an you

not Look, Look, basis. we feel provide too on really superpads that I data bit good don't not higher, or much bit we've volatility just relative certainly skew lower. a per that in quarterly year-to-date pricing there guidance to on custom achieved acre price could a lots the that little that a see little it's There's feel of and should exactly illustrative not for dollar, event. and but value going the that I the is we of of is down date year, general achieved is we've that very what to land the to our to what a pricing in good to expect rest I'm the onetime say

Okay.

Ko'ula that sorry, this compares sales. you that's that relatively could specific project Victoria second the A'ali'i closed The at name. to the know you the was margins And at and what wondering Moving condos on margins quarter. were -- how one quarter the to during low I on closed and X%. condo if to you put I'll I comment Place was

Yes.

the on And it that that entire more north of albeit consistent pulled to basis. targeted a Waiea. of going you John, probably we the than income out expecting and think that just Page XX%, headline efforts a go-forward able footnote So pull And that be XX%, remediation that we're the with statement on were across We've always think that to the back which that. you the an Village one-timers margin expectations, lower with from X% even these was the still expenses actual at if with I $X.X one-timer approximately achieve when highlights Ward X perhaps million associated couple what of out see of associated supplemental, is to E, that average the margin, portfolio the are we're includes on of new you towers.

acres? question Summerlin, are those XX then you And Great. at final Discovery, venture expanded located? with my Where where the is joint and they are on it

Summit. road They the within sell, internal through connected are and main the gates they're directly of an

we've the on it that is plan this get process that those joint would to to early closing venture We're with and Discovery getting year, hopeful the which officially it's connected, seamless It's approval. to It's incorporate end selling part all live, separate a of just them actually area overall we're start or of and way. entrance. year. not final in separate So able in closed or 'XX, the community. of late next separate contracting in That allow a a pretty land us the gate at a

from And Goldfarb Alexander with the next Piper Sandler. question comes

key Hughes' creation. on David, obviously, business, a Howard land that's part the value So sale of

this You I guess is, spoke sales appreciation think best sort a from homebuilder looks of is and home like to this normalization, if inflation as here, Are can far about people moving you you curtail ball where is cetera? back continues see, price do catch see leveling would meaning your mortgage the you shortages, to are say, environment we're further, XXXX. change you be that crystal that the see -- impact -- existing of return as on spoke going to Or as seasonality, do the on, inventory, out? your rates hey, a homes, buying rise up you where about could eventually to MPCs, into as trying we et

into life to are to to Midwest rest prognosticate attractive sales? the prognosticating and Northeast, it's be meaningful remain and in-migration relative into Reserve the mortgage Bridgeland. What Look, our the they rest will going be sit impact what rates to the from really communities for Summerlin, is year, the affordability. Northwest on of and for their see going I'm the home of Pacific year, very me is where Federal within our how of from where the for quality coast difficult still and do how We that what to inflation is going MPCs be and regions, comfortable

results that And I mortgage think into translated a that's that affordability positioning that that year-to-date. that's are is of and buyers are despite higher can twice or And and I relative those relative with offer think communities our buyers for to appealing are trade. home or that rate life despite house costs the within our of we life And the half consistent. the a quality remained of X.X% costs, higher California our financial making X.X% mortgage don't folks those quality some rate getting leaving because mortgage honestly money, and they're concerned

And then in-migration your how communities from maybe market breakout a of communities your moving an local do versus you into and or people to breakout have updated that's? the

That residents results our in remains community. in the just those a strong. still it lower Hughes. the and land is MPC north in eventually vibrancy not that a into centers, Howard shop buyer still in and they moves but EBT, our generate quarter-to-quarter. communities percentage which excited immigration the overall Summerlin, potential of And seeing much buildings, to I would rent to very sales Woodland and starter more space welcome our Typically, than of we're Hills, slightly they in more the office financial buyers and -- they percentage of lower But in XX% an of to appeal the there. those home therefore we're say new just overall community, Bridgeland help contribute local

Obviously, is fund accounting, the Okay. And of always debt, rate believe, construction are a lot then, used rising. that interest capitalized. question on a topic. development, floating tied A that to fun Carlos, gets loans I you around rates your

the -- higher that rate -- sheet does does curious really sort interest? that how low rates floating I in that balance I'm Is of Is debt manifests in just P&L? to it mean, development So any capitalized this rising how that's how on your way? the tied impact

Right. Thank you, Alex.

So yes, sheet balance the floating the basis. ends rate debt to on construction capitalized being up projects

line, that we carry land and the you ultimately, those in to it service, building under you if it's it, where and that's components sheet. will balance gets So construction entries over at our when see then development when the we on look while have placed

So construction it the carrying our because we're on risk the for capitalized of balance not and gets really basis the to projects, the assets. that sheet income statement future

pro on recent does that actually always using are the coming that, our amount that of that interest overall cost Where almost side, is forma. capitalized our always projected impact small value, the have assets gets around these into we reduce construction said, most potentially we on asset could future which how is and much relatively interest it forward Alex, we've under best construction of cost these to speaking, yield right us, development. and cost curve. projects Historically the estimate that the our a of have project, it in overestimated With our

modeled So the the insulated to way under nature relates as yield from rates. cost we I it think any changing conservative has it on that us rising

with question Paolone comes JPMorgan. from And the next Anthony

of sales start business. the part the I guess, with land

been comps housing broader here. against seems superpad stuff weeks that. say, talk months? basis real-time in, like the and slowed you seasonality, also can about like But it understand what builder behavior recent normalization of and the or just like points of data have David, Because on maybe the So like the I some has considerably the a

there's to you're any just understand seeing? if so real shift And trying that

sales quite And I And up can. and homebuilders you would -- back land us, way. it. decisions results, today just land to Yes. to sell. couldn't where all that accelerating they're get remain still but a We're report and our have They and the also company they a worried next And steady with lots and builders going and ahead a have this undersupplied to and we'll of and product close our expect thinking they're that have they that lots be years to just to where still excited finished for of but conversations sales them sure real-time all get want on the spot quarterly they to able still come, so land year. to they're to of all balance make land and we been we that hot year, tell them the that I we're Summerlin quarterly, lands scrambling the the in get they having we about are acquisition start undersupplied land that the have our those about like that back been to has It communities. what best equilibrium. dialogue next is our going been have lots, to of date all the be we state. to thinking year, about for keep of the to available they're to finished are they unfortunately, really that X not And quarter, to

kind slowing down? to as say is be it broadly your communities things So the of that offset in sort kind we're catch-up to seeing of of fair would going what

Yes.

continue. yes, our we home a just home nationally, outperformed, broader averages, national communities sit outperformance to I they not slower think that absolutely the consistent. overall sales in I markets in, seen the and expect that sales think that And our have communities. fewer but we've still

hook Like you the Okay. on And the upside? sale home other to just if come prices participation on anything? then builder that be way lower? for could it be is Or go side, does the out

that this, little option. are considerable component It's get much prices of we're location paid that It's environment home. home amount of where why insurance that a they fast rising the a It's as which the it's an an like in is appropriate schmuck value one-way that we as getting for land, bit a are for when are, our people paying in.

it. Got

if Okay. or And way then in on the Douglas Ranch, spending operating you end there XX? say about it, think up does anything change with you XX% versus,

No, all. not at

ownership regardless strategy own of if philosophy consistent deliver. for the the XXX%, We're change. it or a in community percentage. our our haul. remains Our long We're in can we asset doesn't long-term for creation planned it And master XX% developing net value that

the do expanded one, Is to been successful just Or of germane to opportunity MPCs them yours? do what there to And with Okay. more really like in related that's Summerlin? with Summerlin. just Discovery. this deal that pretty It then in last other just more they seems is

partner collaborate have to are real discussions continue I opportunities rifle-shot we and we those there some and think time. could limited where

Peter next Jefferies. from Abramowitz the comes question And with

able be these that? is just resident increases? rent-to-income quantify multifamily base could portfolio. of so, And I rent want track your your to ask just Do you talk about absorb ratios? you If about how kind to

Peter, the some of could segment Those that majority are though track the population income heart keeping our impact the it even approaching pressures that's residents this to it materializes in feels XX,XXX income average tenants tenants. affordable. the of others, than inflationary spectrum, that we segment and Those median those And to triple-digit that if have eye an are on. of and And are meaningful are recession lower a vast it's it's question. our our that we all portfolio, to be at the increases remains that that XX,XXX end that way we the our across for annual the rate And our income. have the close the the more most the average population the dramatically a of are ones do shocking properties average on. time. this of of is potentially something great could, we watchlist the eye income, keep that very those area And that

Got it.

a have your average I you is do ratio guess the what number rent-to-income customer? -- of guess, I income or for So multifamily your

across don't the We publish portfolio. it

And Okay. about publish what average the guess, number you either? I -- don't income the

no. No,

the question Seaport. is on And then it. Got Okay. my second

Tin in that breakeven isolating like I So that it XX is the I that can of before to going and are year? Pier seasonality of maintain it events momentum basically there, you is might much remainder guess kind season continue that improve? quarter, expect the that and a summer guess, historic to the of district step back the you how looks Or from Building. take is specific the at to that on you something

seasonal out No. months, doubt And Historically warmer summer better drives highly concert Pier speaking, in the asset. the Seaport it. the been a has no and having activations series results and about people on

less volatility amount driven seasonality, there’s income on the of not Pier think since that speaking, feet recurring we’ve leased have square seen by has been historically we of greater XX. because the XX,XXX-plus I consistent been

put seasonality the time. that of a starts away, And smaller if signed expect done ESPN, seasonality to I able Wang, become lease we’re fourth Pier get was now whether leasing and Alexander more and that Nike think to to a see bit or will portion we what floor, over incremental percentage much each get that that and impact of that with we adjustment diminish. office that little

Khorsand question BWS next Hamed comes Financial. with from the And

about dropping First G&A question was, could talk quite drop. last from bit reason for the a a you seems like just It year? of

sure. Yes,

items more period -- just increase that we our the of some in pipeline our were would G&A. construction development in been our onetime of up our become with the But also more prior internal projects there then we've those they So have the costs balance are instead to -- as of G&A ending development of sheet our projects. allocated to on in related

to from are costs be here And you on? just capitalizing going

development the Well, it is by driven pipeline.

MPC. the that to on strictly it's our to related So activity and

will capitalized significant our is tell cost hard MPCs. to to and component our that development much in investment projects. pipeline as correlated will a can How be you the always be exactly, I our that So to there direct but it's tell, gets it always

the on the income you're land with just and And remind you're then kind to could land you what the us providing Summit, more JV the that Okay. works related of that now providing you're Summit? to how expecting

land per capital the provide or fixed Through per our long-term long-term capital of acre. The we back, implied $X the profits capital, will million $X we that $XX We acre. of to that out selling what the per And Summit, started profitability dependent when at over to number lots the sell million. past on per first crept we of And years at be were $X up to -- we million acre. million couple preferred we their their split price Discovery on a and we then implied our a that. get So price price acre. waterfall, gets they multiple get after return. has

Summit. inventory kind second to lots the expectations could because on we want set don't what left demand yet meaningful I X have since So we there's haven't of And limited yet. think of such in the those Phase of we phase pent-up in sold achieve I any some

time last question And change Douglas line development? my your any was Ranch in for

lots think and so. first or pace. infrastructure still grocery-anchored the of I ground building the after single-family there whether and Everything hopefully in get track. start first think so. year getting all those a to commercial the early on or next in We're on development for homes X,XXX remains No, some a we process contract that X,XXX next done those at that's on the looking We're multifamily, center, community everything I modest or rent will homes be remains

JPMorgan. the with Anthony Paolone next is question from a And follow-up

you second back versus At I getting more, just you get would the I like the we go? the on the there stuff again. there look in if How such would to couple more going managed you Seaport, it is could. characterize effect did of there and Or on think with quarter? events what of saw events flywheel stabilized the had Like you a like still and a saw side and basis? that what sort restaurants

do to we've with more that I'd hate that imagination better have opportunity we still efficient. be pinnacle able to the to limit mine. the say what to Seaport. I of want think to I achieve hit nor don't team's the the we're

been only I be tighter think will just of increased right people entertainment we are when up and historically that more to But further in the are the culinary food. of do where than wonderful increased a cost think they recognize that a because District destination will the cost in are this we Tin the now margins an Manhattan. have we to starting getting spot labor, open that exemplified I asset Building. more as the And Seaport and And that fuel that's traffic. here think

that better. do think can I we So

of continue per this to could road think these higher is map great into I have stabilize revenue restaurants, we better term. room be glimpse a margins. to foot, the what And drive long

something if we the buyback, Got of consider it. then to And one, any that the additional you liquidity Carlos, sales want in on it? do you business should you decide if fund also, then got doing But outlined more, or else somewhere an second more, do you're it. sort to to And less the authorization? you asset should anticipate do anticipate liquidity we to do other to

still million the -- have Tony, prepared have Well, the we $XX in we remarks, as left. said we

of I the it what's on return. other highest remaining So to and else. do mean, we being to if we we mean authority. that that have more to Yes, give options risk-adjusted resource, evaluating. cash do where we mean, with And described point would of the decide determine finite would buyback, of a that go some I were process buybacks have I But we we does if we to that a that to exercise less were your can going pass through that though, us something to is

up Okay. yet? there's quite that's anything it lined on sound doesn't But that like front been

extent that's our discussion all a that the that Board, time. new we'll to in a Again, expeditiously. we the And we Yes. it buyback, have reauthorize next board discussion with the communicate

with the next Barrón comes Housing Center. And question Alex Research from

others ask call try discussed renegotiate I starting from builders land they've land to conversations of to Have to started or of deals? in have options, land any any those renegotiate away the that had you or guys second types walk their to cut and wanted quarter they're prices increased builders had that incentives. try deals to some some

have type acre had of any don't with of or date not so take changing per options, that any And any risk. pricing have discussions we to don't of that our We we lot builders. per

the And I return as that was any the comments. last O'Reilly for would to like to David floor question, closing

today. there, participation of And investor you Corporation. everyone's Thank course, there's any or we're concerns always to Howard again. you, look follow Hughes conference forward We you relation future on if seeing in available questions our here future continuing Appreciate events the for help. and to and to Thank calls. between

Thank you. you now The Thank has conference concluded. presentation. for attending today's

You may now disconnect your lines.