Howard Hughes (HHH) 9 Aug 232023 Q2 Earnings call transcript

Good day, and welcome to The Howard Hughes Corporation’s Second Quarter 2023 Earnings Call. [Operator Instructions]

I’d now like to turn the conference over to Eric Holcomb, Senior Vice President of Investor Relations. Please go ahead, Sir.

Good morning, and welcome to The Howard Hughes Corporation’s second quarter 2023 earnings call.

David Chief Executive Striph, Financial Operations are President; Jay Head today Olea, Carlos Officer me O’Reilly, Officer; Chief Cross, of With and Dave

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

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

unless not to are duty update forward-looking by We any law. statements under required

David the turn over that, will I With now to O’Reilly. our call CEO,

development the assets; Thank and Village. of cover will followed will communities On quarter morning, second in Seaport; plan and our highlights operating you, our our the our with everyone. the Cross, call. master recap Eric. cover by Good quarter who Dave call begin our earnings Ward And to welcome update a today, for for I’ll Jay Striph projects segment

full on guidance. results Finally, and Carlos financial review Olea provide year an update will our our

assets. our incredibly pleased improved the to and am of our across report I experienced For world-class company portfolio quarter performed that underlying demand well second

we sales in strong solid in around MPC by attractive quickly segments, the at used MPCs. was which land highlighted Looking EBT prices delivered continued our

of future leading land new land sharp in confidence We for robust home activity sales increase sales a sold, increased in quarters. also providing indicator a saw coming the

exceptional and results continued delivered results assets leasing when operating in and office outperformance, quarterly Our financial multi-family. record

At all at strong. In Ward of which to condos Village, the now available XX% sell premier quarter, XXX contracted units, inventory, our XX units. representing stands for buyer we only remained interest

Seaport, year, way of of segments a summer improved the each financial yielded these in paving year, foot provided Finally, operating at the for in a our been the far series district the rooftop, robust MPCs year and the second have half and traffic guidance increases outlook on sequential the start success Overall, the the concert significant has solid dynamics thus for tremendous across which our in of expectation results. assets. halfway favorable our a full point footing at increased and

EBT timing strength decline XX% we a our in price experienced segment, year-over-year in of In Summerlin. our we significant a pad due new acre. MPC participation in the land sold strong builder of per super MPCs, in this sales saw homes increase each reduction, in and price to continued primarily Despite

new for residential contracting MPCs, near which prices yet our continued record land, across not experience demand of to parcels also has homebuilder closed. on We strong at much

of us half that sales. All second believe deliver excellent this XXXX will land to of the leads

home This Summerlin Hills to sell number XX%. prior to doubled currently sales than is in year-over-year. on increased XXX in home homes represented record and XX% homes And in its our compared MPCs, XXXX. resurgence more home increase the a a quarter In of total in sales other and nearly Woodland new our pace with the picture, to continued new which related MPCs. nearly of sales first increased by a new was Big year primarily in that sold began XX% Bridgeland, the our the

and Summerlin respectively. and in both results, top-selling number this home Bridgeland Ultimately, the six half spots new MPC number significant With the up strong a second points combined these XXXX. five RCL of sales, in moved rankings, sales co fundamentals, strong underlying to growth capturing midyear strong with

rates remained the resilient, have year. impacted mortgage negatively evidenced demand in nationally, this have uptick underlying our increased strong sales While MPCs by home our as

to impacted home purchase. simply rates, overall home is has of by their the many While affordability what seen homebuyers have communities undoubtedly that in adjusted been we’ve higher size our a looking purchase

the With the of actually price value average keep has modestly, increased helping has the per that, foot of sold homes square the our but size declined, to intact. land

with forced has homebuyers homes. home XX%. norms homeowners below-market as inventory, a to reduced to increase mortgage homes all meaningfully or environment of from reluctant resale sold historical the represents Just sell approximately market, are the now XX% gravitate which increased to rates as the to their of importantly, rate has significant This XX% new

rates equilibrium deepening and has and boost Ultimately, for demand increase impacted homebuilders both more driving translated our for this Put supply, has driving land. pricing in and a favorable is demand simply, the into significant new demand interest land. in land for

As EBT in a year. us half few increase and minutes. land on This result, higher the the sales second during gives provide some a more will detail to those meaningfully expectations. new confidence material will year we our expect drive in full Carlos increase of a expectations guidance XXXX MPC

start contributed the NOI to in over sold ticket recoveries of is increase declined in nonrecurring inventory. was and its to XX% rooftop, COVID representing Quickly materially traffic. available to part XXXX. events led best growth significant by This improved tickets, XX% over series We’ve Compared million we as XX% Seaport, equity concert $X primarily first before XXX,XXX shifting This a quarter, our our year-over-year, date. summer which experienced in revenues investments. results reduction due to the to foot off on over to special the in

which NOI. and Overall, improvement sequential Seaport Building, the compared contributed revenue total increased. the quarter, to click Tin $X increased customer a first XX% in to At million demand traffic

overall full-service has quarter. strong, performed marketplace’s have we the we meaningful right retail intently operating are that the focused on to and we e-commerce but financial continue model, to the resulted coming costs improvements fast-casual the implement are operating deliver We elevated refine which We signing The expectations. lagged as confident dining in the quarters. in operational during venue this one-of-a-kind on towards and remain driving improvements stabilization, path

that be now appears be to stabilize expect able year. Tin unlikely do it it we the this to XXXX will calendar However, in building not and profitable

of to like now performance call operating Striph Dave assets. to the I’d hand over to the review our

David. And morning. you, Thank good

operating momentum year. increased from been strong the the year-over-year quarter, NOI same the X% basis, a multifamily X% operating segment second our of net office a meaningful the continued same-store in delivery with our has building in in asset that $XX income, increase million last On growth portfolios. quarter and with In

improvement of strong $X We core year-over-year our office some portfolio, of onetime improvement the in This Columbia. some NOI strong a a which lease abatement in portfolio percentages leasing the quarter million of fee, activity the Downtown our year-over-year lease or XX% our assets rent partially Woodlands. three and reflected and and lease with stabilized also expirations types. second experienced result sequential expirations in seen property generated These termination was Most lease-up significant offset by $XX primarily in at older were of each increases activity improvement in across was million.

the office the Class quarters, locations. expanded quarter, amenitized feet highly XXX,XXX Similar office workspaces our we prioritize In executed to premier continued to to market nearly the in just outperform including new feet, leases assets as desirable XXX,XXX continue or in square A square recent totaling companies Woodlands.

portfolio compared stabilized strong market also office substantially surrounding quarter. performance when metro the renewed Las over XXX,XXX This and office the feet leasing brought to of We at leased regions square to than Houston, our Vegas quarter of end, space during XX% Baltimore-Washington. higher

less ago, of quarter Starling growth XX% Columbia than driven and exceeding are Houston XX% XX% XX% X% contributions finished with our Marlow, quarter in-place leased by delivered and at of the NOI portfolio primarily rent favorable XX%, were million, Overall, quarterly This Summerlin improvement. leased. fully Starling was representing completed from multifamily record Marlow expectations our Bridgeland newest at these properties, Multifamily leased growth developments. one a XX%. multifamily at which at at average and properties XX% stabilized Downtown and with $XX Both already year-over-year

centers quarter way to The the make projects. an COVID compared closure recoveries This just for in related one-time related retail retail Village the our a second million to year-over-year primarily In XX% retail year. performed and to Ulana leased reduction X% decline condominium prior Ward Despite well; it quarter portfolio two Village improvement. was $XX Ward reflecting end under representing NOI of at Park was this reduction, prior was the as year, at XX% well as

Cross. I President, that, turn will our to the call over With Jay now

and David, good morning Thanks everyone.

the during us we where on leaving strong remaining I’ll premium Village see current XXX to with start condos our update our units projects. we Hawaii XX In with this sell Ward contracted demand morning only an at to the quarter, for continue in quarter. to sell condos

at ‘A’ali’i Ko’ula total looking implemented approximately inventory, close to units price these out First, and which successful. buildings reductions in the been of represent X% remaining very have recent

resulted initiatives overall the margins and in on revenue reduced achieved projects slightly have gross impacted. While margins our minimally have sold, two sales gross and units been

XXth, XX For as contracted of XX% was units XX% units, sold and the and ‘A’ali’i sold sold. XX Ko’ula June and quarter, we was

which the to are Victoria towers year. XX% of underway already our be be Park XX% in is finally total condos to pre-sold to completed which expected a to XX Place And respectively. contracted we progress units towers XX% XXX% is this construction Village tower, next At XX of and tower expected and This Ward in continues At these and Kalae Ulana a nicely. development contracted bringing pre-sold we XXXX, making pre-sold. at completed

We the construction project in later on this expect commence to year.

between to towers future In our the and early the a before recently finishing multi-family which luxury towers touches completed and the welcomed Echo, more represent in marketing of even Upon mainland be completion, in was these combined in revenue, This were will project and XXX-unit pre-sold completed Summerlin. strong than testament had our in $X.X Tanager begun. billion at team. This these four new development substantially downtown recognized construction is will sales strength we July Nevada first XX% we Ward Incredibly, our XXXX XXXX. residence.

We construction we Office, to the office complete South building Pre-leasing next a began year. efforts and efforts story expect recently foot at Summerlin square continue complex. also XXX,XXX early the three

the rent for office Lake and of either Wingspan, single-family medical progress with to square This negotiation. of XX,XXX South intent building leased later Columbia, XX% along development. of In Bridgeland, welcome first nicely. slated we This strong demand the balance making medical is in construction act building is finally or seeing with moving are currently foot of is its letter is in of And this project year. development the Downtown our residence exceptional

in expect the early complete We to project XXXX.

our for combined Overall, these projects approximately assets to generate cost development expected with on are NOI million a of strategic of more X%. $XX operating stabilized four than yield

While the shifted growth environment our it’s contributors few in lending returns for rates, our with impacted in expenses developments a and market outpaced shareholders, down will possible costs value meaningfully creation have operating construction meaningful higher and past could new near that these interest rates anticipated quarters. challenging developments term. rental over and Increased slow new new be to meaningfully recurring developments, has the of more NOI on combined the announcements

not say are That’s pencils to we down.

we opposite. are the fact, In exact

go. more Our pre-development so ready development to the in to be a in environment, actively region market we’ll normalized each that engaged are teams returns once

And now the call CFO, with to that, Carlos over Olea. I to turn our would like

and good you, morning. Thank Jay,

new Stock Effective stock HHH regarding August the will new New this estate and our liabilities one become in This Monday, fund outstanding Howard related The will Incorporated will Exchange of I’d share share our financial estate trade next subsidiaries. the Friday, to convert and HHC like to XXth. announcement company on ticker with business, and our Each August company common holding common today stock stock. York the additional Holdings start beginning company our separate written of is automatically provide HHH the under into XXth Hughes parent symbol of promote segregate non-real future and assets reorganization. off to flexibility a opportunities growth structure real with expected

plan, Team same. and remain on creation our However, and Management the long-term value our our Board strategic focus

in full anticipated year well of our particularly as because in the favorable are our full to NOI. drive In to our of have improvement EBT results Turning sales the year in our increased robust operating expectations quarter assets outlook guidance MPC, for expected for for year-to-date the year. increases residential fourth we as half and the land MPC significant second EBT

of represents approximately result, we an resulted financial XX% guidance our at now midpoint increase entire This portfolio XX% assets has As XXXX. in increased leasing and flat compares exceptional to expect the $XX across to expectations for EBT a to favorably our year-on-year. NOI be XX% of operating to down million. down prior In performance and

divested X% now a successful. and sales improvement condo prior the been very ‘A’ali’i X%. is Excluding In our up in retail of contribution year-over-year. the Village close up to at have assets, is assets Ward mentioned, range down an This of prior be guidance NOI from inventory expected to operating from out X% initiatives X% to remaining as Jay to Ko’ula

aligned of expect XXXX pricing As between X% have tower units and remain margins and XX% with our a all impacted margin historical sales now to result for the of reduced the $XX reduced XX%. this overall margins XX% to million million only we range gross $XX XX%. with projects condo This of two in

divestitures, million sold quarter $XX self-storage $XX of million, in facilities will unchanged included to $XX million. remains results. at subsequent combined And in two With million. a for our sizable in price gain finally, to a approximately G&A guidance our our quarter the on we This which resulted totaling third respect $XX sale end cash to Woodlands, be

balance half into proceeds of third facilities our positioned the with Together cash. to cash billion perspective, projects MPC XX% the million. at development have self-storage in remaining in debt the year, as sale of the $X.X end with only the needed through $XXX $XXX second quarter, second maturities million the our anticipated our sheet; of of we fund for the to equity we quarter landfills end well well the capital two are later. approximately the quarter the Shifting in with pipeline. contribution outstanding of inflows to At XXXX we put a as or from the XXXX $XXX million the quarter, and of From ended current was due

our to of capped debt fixed rate. XX% swapped or fixed, Additionally, remains a

challenging, issues, projects as we before the the initial delay markets close sulfur four-year development Despite interest $XX including loan a and bears maturity. that loans these cases has we plus ground. breaking mentioned, some start wait new X.XX% for South are loan and loans, for Dave in those having are for success the This As new closing developments in are certain construction million development of Summerlin Office. at an of to

as Additionally, this year. documenting which some a for close we a on in construction existing properties, are as new refinancing expect project loan we multifamily currently pipeline will later our well

call David With that, I for over closing to would like remarks. to turn back the

Carlos. you, Thank

up the call Q&A open we closing a just of couple for Before thoughts.

segment office guidance in continued our strong this years quality This which assets, of drive level NOI their back home stabilization particularly MPC are closer First, to to world-class full to testament the outperform the year of ahead. new market our resulted financial is of aligned has portfolio in the markets. increased XXXX a and results. and we mixed-use significantly guidance performance and operating leasing to within a our near-record our increased in is results exceptional closely assets that help XXXXs in EBT to lease-up, will The

development continuing cycle projects of that several in as cash that a well value nearing Overall, And the opportunities we a of finally, that flow perpetual excited growth use. our robust differentiates ahead. grow are as will lie we the and inevitably see Howard stream pipeline creation and completion very have value future, years positive the we for ahead, creation construction

Q&A of portion the start With let’s that, the call.

please you open first for line the our can Operator, question?

from ahead. Sandler. Please question First be Piper will [Operator Instructions] Alexander go Goldfarb,

Hey. down there. Good morning

Just few a David. questions,

out to remaining sort you condo discounted of a I clean-up the Hawaii, is first inventory. The units, few guys in think,

and those Usually, priced provide Uber hot If Waiea, all sell sold color bit of units your sort quickly. product cakes the other think condos there a except languished, I of those original I think out just like some that for more that. you could on fairly has

look rationale So math looks sellout, like? you just when you maybe to whole where a originally at you pro you raised then formed just the more units, and economics. could of way, net give the what the curious And versus up, along bit the also, so ended the cleanup impact you into to discount price guys where insight given the

a them for the well we’ve problem, No majority Yes. memory you overwhelming towers closed the delivered, your and we’ve almost and sold entirely completed of It’s Alex. very that delivered when out in question serves we’ve great construction.

inventory, standing we units in our and were perspective Ko’ula, in and getting ‘A’ali’i they’re at competition sell as inventory thought real we And than of new year, there entire wanted a standing the expenses next X% launch have some from the this HOA best the kind to successful standing launch would the so which it And represented we perspective tower. up we of For estate from incredibly for and those buildings. less NPV a inventory year tower, of had end move by inventory taxes, an and we’re beginning once that to of be and us, completed terms when it of had continuing we we really that and the quickly. to

doesn’t you last To sitting it entire When the to margins do as any them inventory. together prudent generating to units sell you’re previously. to we pricing had been discount were put XX% And X% From your not of the it so, increased economic that needle. the get was move XX% and for pricing, of XX% relative XX% on the XX% it we at And standpoint, margins building, to really done. noted an still half thought overall standing previous you’re and and way. you those they modest a move times to multiple where along

closed we that and could residents to continuing we and moved for that and all decision get quickly, one benefits the are prudent those and Ward was shop dine, to it that offer. thought Village a experience over owners has So completely to buildings turned so on out us unit we that

Okay.

Next my really is is on at a But I more the ESPN. longer. taking that down little your question I appreciate that think question Seaport. comments surprises. don’t

You guys lease have in has their the up news not I a soon. been comes big studio downsizing. for there. – Obviously, think I’m ESPN

give could today would I think, you’re them? maybe them have that. think what you comments I’m did you just some where to backfill getting if color be from wrong, maybe you rents but and then around versus And

given in ESPN in full nature potential And which And out XXXX. figure we’ve down think seeing completely and lease of on With sitting XX. at studio they incredible day we’re From location goes space its said term extension December with through on that been wouldn’t I fully but the out with that, energy studio thinking views, about taking me discount. considering December grasp have opine the here dynamic highly XXXX; it’s as built we rent it not of so a that be we the every space and out the space perspective, don’t kind shorter to is earliest long-term they ongoing their in don’t discussions plans, mark-to-market its location, on a And that that for think space of early today. them worry given backfilling a until and built studio we valuable. environment about we’re to it’s Pier open

got decade. But public re-org, for you have been a away, HHC more a just see Okay. you guys on can ticker to it. finally, well And over bit we color? then the give sorry the just used mean, I to go

what the And drove of from this. company was. you’ve to lot sort it what Just a certainly, simplify David, curious done

should a G&A flows pretty the the of just So any rating re-org? documents it are as that or Like more this? color. are entity, we corporate usually, markets? from drove if debt cost like result Was this of what agencies? this the to Because bit modeling a there cash then it’s be this – sort on specific tied And that was a so it’s additional to is whole debt

allows be structural take Board The same in that bond results and restaurant from is are incremental estate yesterday about the that the is away There’s thinking estate Hughes investment in order you us changing. And assets assets just in about I’ve keep impacting to Howard a the and segregate when the since because in know we of that our company real something months personally assets with results tomorrow, Hughes change no the really debt I’ll that our XX% non-real his the non-real that been month. business much as debt. Jean-Georges nothing covenants reverse about Howard made next and and it’s next Management of week estate covenants and XX Everything from some our ago of will passive it’s easier. the strategy, of G&A. investment covenants. This

potentially estate baseball that of could it’s and from And size, cleaner a assets team way us that and in this other put non-real the fit a of allows whether out estate figure separate just assets do HHH to or if thinking traditional it like we to HHC. not would structure about and away real in the think

do. So thinking it’s read we the acquisitions us wouldn’t really – of it’s into formal for things comment take substance, traditionally don’t away what from Please or about this. I major

We great have that the We that and have, that one simplification we simplified we’ve and the is pride the bit. changing not company. in focus take done

you. Thank

Thank you.

go Anthony next Please will question Morgan. J.P. Our ahead. Paolone from be

there have in that didn’t this to now? anything at a prompted the structure, just decision you guys there do I market. if with know to I to it’s Las know guess studios last homecare on bit imminent been the follow-up I Vegas Alex’s the potential the press all? that on question tied is regards in

within been our Las the we create real the that’s do. film we’ve studios press consistent in think Its Vegas way meet estate an trying built there think very to out community, market the do Summerlin. production is the I is what incredible No, done to demand, that and we to and population in work the on with increase No. that jobs in

estate owner that in be would of Our landlord. real the role

the are into production getting We business. not

I with non-real don’t non-real real assets; answered from any nuance anticipate can really that, to do us bringing I it estate in kind just And assets where this more of in keep structuring away with It’s nothing estate estate it’s production So had we assets business. the Anthony. as a really Alex. just

it. And backlog the that from it with of a regards coming areas? the that in builder other price a the that second Okay. Summerlin? pad is just seeing largely while from of participation, is sort that’s participation is site super helping to little question, there Got And guidance was ago is income done Or then you’re here? like builder price drive

say, would you your in it question the to instances, I to Woodland so participation builder ago. Summerlin. comes but there that from answer price XX participation that, largely XX Summerlin. coming the from first as builder in price But some Hills of the is super from is And Woodlands noted – months Bridgeland were and some comes majority sold pads

home driven that communities elevated of not more more sales to quarter price increased we’ve Our at new for a expected in tend sales, of planned by rate difficult largely not we’re guidance are that buyers. that velocity by model would to price And these of participation pointed that guidance today’s increase incredible we I future the builder sales we for higher continued land ago. prices is acre drive per expectation acres is driven result our that in the incremental because a created increases has That necessarily year than our home it’s master candidly environment environment. that’s in expectations. we’ve throughout incredible, first in the see within home market to months how this six think experienced the And continuing that defied

in. last sneak just one And I can Okay. one

you in the termination there. mentioned office fee Just

helped the to trying Just footage? in dollars tell the can that what you square And us on much understand how were just guide?

XX-year huge. That $X we’re in. never – a great tenant It space signed lease feet, landing, was a about a for was square the moved the a already lease than backfill. negotiating used Yes. that million. termination wasn’t was that It for XX,XXX fee less lease, It in and

you. Thank Great. Yes.

Thank you.

Next Kim, BMO John question ahead. Please Markets. Capital go from

had costs you of Thank recurring? the recover could say I realize that onetime is in HHH ticker. quarter of is looking big costs, the that had condo during sales you’re the would I window something – in particular this on these know you. some fan quarter. a be this to of remediation I a the question this expense I’m a or and but

is this it. No,

repairs. recurrence and a This we the two of are last jointly was we that So when repairs the as bit of we’re undertook of that Waiea funds. had were initially expense And overages by And repairs of higher led more, these the on that knocking the drove inflationary year as it pursuing funding. recovery have and repairs costs came haven’t many Those homeowners expect no these of from years do ago remediation not original over of of I out, environment wood. expectation. any definitely and in more those towers meaningful the closed more been result we’ve we I’m Waiea no any hopefully these from our of seen than type and other problems. a

you Seaport, at disappointing year? mostly on revenue this up side, the that’s but surprised expense I been side, I to point, Building know what wondering was At it’s on Tin well? this Okay. the as

side success full expectations. the that revenue restaurants have exceeded met the service the House remarkable Rosary, Pearl our seen we’ve Red on consistent that of and the prepared say restaurants, I’d remarks, with in sit-down and No. our

our expectations fully associated that where e-commerce say have really been I’d met quick retail the be adopted. slow the not been has and been with has to service the dining,

realize create our partners that changes our short-term and time with time, with and changes his are to some sometimes we to back to those those and revenue implemented, in. hopefully P&L And flow those the that saw operating back get as now. at we we right the fully the expect through line changes expenses expected going bring costs takes It working expectations. and those down implement real to Jean-George We come team

number said, the higher have the short at around foot that through peer. people the been of the of in With overall excitement never exceptional The terms been Tin bodies of all coming the nothing building. traffic and the Building has

the that given incredibly profitability. given revenue of know and it’s successful an to the to coming here. every about excitement to get and drive – mix maximizing outcome series, Given offering are And and product the we Seaport the just the day, there’s people concert how many modifying

year On was it’s huge year? I dollar this was the last quarter quarter NOI in turn basis the know on a content negative. amount, third not care, third quarter, but and around it an slightly profitable this expect you that to second Do

and mean I lot the profitable market, this a that’s second [ph], some by happen slowdown NFT quarter, in other amount ABEST buyouts, again third [indiscernible] the the the Yes. XQ. been That which had year, buyout slightly number that events lot We’ve haven’t days. to – recreate didn’t higher quarter, four results we those in a was a the of had but to incredibly see in and us. in of pick that four-day result last made compared a year, the of for was know. up maybe we of I other XQ of to money we’ll perhaps expect in as quarter this the I don’t events we able similar

Okay. any update on wanted year? expect settlements And question on just whether not one this final Teravalis; get to or just an you

The has delay of our of driven but initial a think do the probably We infrastructure. see we’ll is delays two, really delivering chain slightly buyer end by by that XXX-ish this and year. supply projections, appetite It’s lots the do. We or Yes. the that’s from quarter which really been strong. down

are want of those a and have to talked us lot We builders lots in buy ongoing. in Summerlin every that to we’ve negotiations day the from Teravalis, that same

soon we to get we to in as infrastructure lots, contracts. expect those announce can As those deliver place the

Thank Great. you.

John. Thanks

you. Thank

go be ahead. Next Abramowitz Peter from question Jefferies. will Please of

your of I Yes, little for volume in strong. thank been wondering, you It has the and between expectations seems like you. was MPCs. raise just the pricing with in the a on pricing associated guidance bit dive kind more could pretty breakout

you’re pickup wondering So, second how would of in quantify the in half? kind you the just volume that expecting

I we’ve $XX of to the midpoint would our in pricing in expectations in say the experienced that of acre guidance driven similar the of be the number and be consistent that what is at half increased we’ve first with the by a to about would price year. what million acres per increase delta And largely terms experienced. going of of

you on called – at on sponsorship you or the the ballpark touch out drove just you could touch Can earnings in then And in release helpful. That’s revenues just Vegas. that? what reduction it. in Got

Yes.

to when we’ve the headwinds. first Liberator Golden Knights, seen Oakland created sports were increased days. past that in Las strong, XXXX, have Aces, do activity now XX about I soon Vegas. [ph] think back And professional only I some I and has in competition ballpark be see that think and the we we some we over coming the that the business the team opened there days. the the temporary And increased

gap pretty that So we think can quickly. I close

to still stadium, done happy Baseball do they’re they just Minor there. We within the the leading what nights and couldn’t community, the and they’ve they’ve with experience be done, but what we League and more in Aviators for what that pricing the shopping, Summerlin attendance the ticket are overall Downtown not of performance and to the dining XX-plus

a community result, Summerlin. we of and come performing very across sponsorship pick able that side. And they’re the that great up be as entire the on we’ll think back So hopefully I to revenue see gap think continue They drive that outcomes well. to

stand last any those where And you give it. or then one large update one, you expirations coming retail? process? and or either with Got stand move-outs, where expected an up on the And you in renewal do office in could

which Downtown Summerlin. In more developing of ten-year know, the pretty Well, Downtown both area asset. and office anniversary of an across we million have coming I is in the shows of on honestly for focus one opportunity area and our modest think of expirations you I up than we’re say the feet that us, square it’s retail. is one supplemental else that as retail, would about exploration anything Summerlin, chart

but per two what eased past better there, XX%, better we’ve in foot, don’t think to a renew with the years. that XXXX, the we’re backfill property, right different able result, XXXX, better quality, in had in to it’s going will to more so want retailers. we’re And I and expirations to and we or sales us XXXX which we seeing and we’ve been be very still over meaningful we’re higher some now, it done performing and in credit, tenants with strategically time And and about any than higher which tenants as allowed traffic, think vacancy every a expirations we’ve think pursue XXXX XX%

Got it. you. Thank

Housing go will Center. Research Please And Alex be Barron, from ahead. your next question

I affect condo that thank this the discounts the one for wanted Yes, given quarter, on and you. ask units the – margins gross to is the tower the expected future towers?

not. Absolutely

which in over and Those we In were or was I increased that towers, towers under construction fact, haven’t that – only buildings we that standing ‘A’ali’i, did inventory. in we’ve we’ve presales but can’t continued and and on other towers, to those absolutely sold completed turned new Victoria and in the have. Ko’ula increase pricing Place prices discounting out, are on we had the

to gross in those still high-XXs. be margins are mid- to the So expected

XX% said, towers we we’ve is and be publicly XX% to any don’t expect to those different. what

then – land? is XX%, to that just subdivision And I new is And higher like going you I Teravalis. because it. can expected Teravalis. other land? you own that of a I – guys saw just the so, a this plan of in thought in Got it existing percentage seems the of Or Is on whereas if explain the subdivided what’s a owned Floreo. piece you saw of that one, that in

us you just can that? So on details give more

absolutely. Yes,

So nothing has first of changed, all.

there Teravalis. village planned from it. we our nothing consistent the that’s we is expectation, And our So property, the of the and the of that has first we’re initially as property new acres Teravalis with acquired percentage, this first consistent village acres the of Floreo year. we’re very multiple is village this that’s of of building there’s have does And And that the X,XXX day villages really the when first master different looking that X,XXX contracting communities acres, to XX,XXX and other do. lots a all our have bought first first later forward ownership been than we’ll

guys just those lots half, in revenues the divide you So should or math, that’s whatever this to them XXX basically year, and do sell there we whatever your share?

Yes.

one And on simultaneously? done, kind Will necessarily economics for future will after of this villages, are like they going similar next starts. they be or to the just one going at sequentially be there then is be

a But that Bridgeland where Well, to tend our we is you and that Jim Carmen villages sequentially. four quarterly great Bridgeland, video go through – example we as have four like we the look, see, can Spotlight about talk walks villages we HHC have.

We’re actively selling fourth the four one sold in now, out. three is the right and of

don’t in. of to wait kind one So We until completely sold next. them start is stagger we the out

the to line new ramping pricing each next home of maximize down, And village So community to you to consumers different centers. winding out a for one time and number of those different slightly villages has absorption village. personality, see we’re as will, greater centers, us a we different characteristics, one and looking up different sizes, the styles And slightly it meets a allows buy adjust home. there if

I good. the good Thanks. luck. Very Okay. appreciate explanation. And

No worries.

you. Thank

be BWS will go question Next Hamed ahead. Financial. from Khorsand, Please

development much how So can first this? given environment? portion slow rate had plans? of down big does the so, you development, that your you question how are I and And self-fund adjusting interest planning was, the And if

the right And were Jay we’ve and the to Yes. lending this challenged loans when prepared even more now. don’t a puts I detail secure about our just We’ve and equity and XXX% and area. deal a that would right lucky mentioned is environment do, been closing some us generate eggs or many on see those provide it we’d in them talk one – be deals. I development into It so instances, too some returns now And completely of their more happy the basket. of Carlos that pipeline able won’t tell we in the pushing little to been that in need, a forward you unlevered in those. remarks. clearly, both construction and that process in very good we

to going thoughtful. we’re be So,

construction We’re mentioned. those on going pipeline? not And start as and development we as potentially projects down. But Jay or said, done, Sure. have pencils slow until are this closed down would to Carlos loans our not temper we

working moment new that some multifamily, shareholders. some that get that on we’re for construction of risk-adjusted are clock to some return ready office, around start we’re retail, moment studios we’re economics plans teams to we’re market the back so able not even The to predevelopment our to Our the the go. outsized of come see planning. waiting And loan, that for an provide able to lots

that and planning soon waiting to line. going the is as we’re on have gun things starting pulled, We’re And as we’re those off.

lending the now, is think environment So right yes. challenged, I while

that we’ll of I lot slow new back. comes Our a will as development that see starts down, just activity but means think that market

you’ve asset past are earlier is up, demand comments commented Or as operating your natural raising about NOI to years? the seeing that because you’re And purely continue prices? you in going

So bought in the of office, asset leased seeing we’re we’re which vacancy tower the in impact lease-up under specifically Woodlands factors is seeing operating us, remaining the for a number XX.XX vacant and of NOI. vacant XX% improvement Within now different at NOI. would all completely we space, look a and

Summerlin. results In and migration increased of chasing companies same-store Woolands multifamily, into employees portfolio. continued lease the the and to well-educated a to communities relocated rates the and our have been developments has of across improvement absorption because it’s office the of new in the story that they’re a lease-up So been

result And was payments the down from in of Village, retail, performing year the drive quarter tenants in turnover are tenants I signing Summerlin in about and higher. and previous NOIs absorption weaker brands more this talked COVID a Ward Downtown while of like to tenants year-over-year to continued performing those luxury continuing as better

a one-size-fits-all. it’s not So

NOI, expect our we that tenants want the want retailers more each master there we in pandemic. moving The can companies we More I building, residents continue. think continues. more saw that it’s recurring has offer. The unique and life our there, momentum be been quality of that that’s to our to theme be to are to type in multifamily and incredibly to the plan out these that overarching are within materializing theme more be have our coming want well And in, property performed communities. communities of

your original So market. properties cycle my question, just why just all back the pay wait out cash just flow this and current harvest on down going not debt the and debt to generate that

to in those better competition. I environment of results cash, market multifamily bit owned having office I enjoy the success. and negative like a have share pop, the the our little And selling one, their provide like think communities, dominant advantage of sold next our dominant a I of of something don’t dominant being developments materially think, would build I that owner buildings, better controlling communities. that have of competition. if our it Well, look, within assets much impact it by we I when that we a to that landlord and drives our paramount is I advantage competitive the competitive because we results And go in being assets. and our short-term while could very way

all right. Thank you. Okay,

you. Thank

Instructions] Please Thank from have go follow-up of Sandler. you. question Alexander Next, Goldfarb Piper a ahead. [Operator we

Yes, thank you.

Alex I hope you could get enough?

of questions a are there you. obviously, lot a of I Well, lot for on the people call have that

estate investment But in – operation? just I’m so are So just could could if land? his entity is Maybe out I trying following it’s spec-ed economics are you you figure is on funding Mark’s I’m with [indiscernible] there studio Vegas. the two is you doing related and building then Howard Or in doing but entity the operations. up Hughes haven’t real that just picture, tasked the a funding just structure guess sure out the guys just studio Walberg, – you just big if on lay to land and the out everything doing you Mark just is Bostonian question the the – how and to you joint – guys. in everything, are

figure out. to want Just that

you mini studio change if have the that peer back to vacant going then Pacific report they’re do to and the space, Vornado side, the maybe two, And guys doing going still have the back good the just East sort office ESPN obviously, could a leaves in open you your calculus does of plan to with Seaport, on does Seaport, that you with Hudson a that there the Seaport.

Tony’s but a of two-parter, sort piggybacking off So again, of question.

studios Let’s in We terms Summerlin. be in answer doing see, because I not and that we any in formalized haven’t agreement Las how point do of should at Vegas the this? we where are

but we bill Sony that advance My on Sony paying owner their the our production landlord. a trying that various and with works them and working for now Pictures the rent the facilities terms closely to works. officials We would land of the tax are with works and working a that of and an to communities, for and Mark with elected working in just Summerlin the that with on the from layout governor partner designing the bill is cities coastal better expectation assembly life landlord real within studio team, he’s not very his to studios. try be the and person Mark developer development studios companies, – of closely in spokesperson moving we’re of still studios, those in Senate we And spoke and the as the unofficial and be a of and Sony, among for tenants incredible find the estate quality to been and others us into would

is We And got highly speculative. to this long a way go.

model detail. We’ll to just those to we’re details it all if comes provide and let’s in and talk able about fruition, So anything greater yet. when it not

ESPN. there the beyond look, studios of tough of what the In again, terms Seaport, are to in speculate opportunities for it’s terms

finding wait. actively quickly. And won’t it the we me, as remaining something the looking Seaport. for are vacancy tenants We we’ll announce We soon at have and trust at announce, to

you. Thank

Thanks, Alex.

question-and-answer Thank concludes you. This our session.

remarks. closing Now to over I’d like for David to Mr. turn the conference back O’Reilly

Look September our in joining call. forward you Appreciate the our again. Day events, to seeing everyone. Investor in next Thanks, upcoming you our investor earnings Seaport our including Thank today. you at at call

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

now may disconnect. You