Howard Hughes (HHH) 28 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Howard Hughes Holdings 4Q 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Eric Holcomb, SVP of Investor Relations. Please go ahead.

to Holdings welcome Earnings Quarter and Call. morning, Howard Fourth Hughes XXXX Good are Executive Striph, O'Reilly, President; me David With today Chief Management Operations. Chief Officer; Asset Carlos Financial Officer; and of Dave President and Olea, Cross, Jay

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

Although reasonable that the based expectations achieved. are reflected company no expectations assurance give the believes forward-looking be these in statements such that assumptions, will can we upon

earnings our between forward-looking Please see for differences could material the actual quarter SEC cause our factors factors forward-looking and in that filings statements statement fourth risk in the press results. disclaimer and release

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

call David over turn O'Reilly. I now will the to

earnings our performance projects to our Dave assets, communities provide our the development our segment will of by highlights operating on everyone. Village. for morning, to you, and year the in strategic cover a outstanding Eric, planned and begin remarks master in Seaport. Thank good recap call going with our call. fourth Jay updates to Welcome I'm the quarter followed cover Ward from On today, of Cross an Striph

XXXX we results sales, strong of the within each provide Q&A. In our lines growth open sheet year the quarter $XXX of land acre. businesses per out home another our will residential record balance and by in million, MPC a expectations significant guidance Finally, aided Highlights fourth guidance and core included our year review Hughes. of price exceeded for short, of or enhanced Howard record new met exceptional the our closing for EBT Carlos sales before

$XXX Our operating assets growth year-over-year, delivered X% increase in NOI dispositions, solid and multifamily record office. excluding with million, a of

we ended A'ali'i year all units with at Ward more the in remaining Village, contract. towers of or and units all at Ko'ula, than and out sold XX% presales In under construction under our condo

successfully new developments. Hawaii, This as These condo new and nearing of start markets incredibly Whole million financings were Although luxury pipeline, during for and multifamily $XXX to we including well Riva sheet continue balance important credit by strengthen of maturity Ulana, ninth XXXX, included Row, in as of Summerlin. executing in grocery million construction center key loans Foods-anchored construction for the $XXX downtown financing. tight commenced new refinancings loans several our our several in X over the a our enabled development in the on Woodlands projects project developments

records capping year a Now segment. for on strong new let's both year and quarterly delivered MPC deeper take acre. little a an the and our very per setting results quarter, outstanding fourth and of price full EBT residential dive off We

XXX over quarter, fourth residential Summerlin For average price year-over-year. $X million, the primarily increase exceptional superpad million. by was in representing MPC acre the EBT we robust sales This XX% an growth $XXX where increase driven sold per XX% at to was in a acres

final which from the clubhouse sales largely This the year. growth to X contributed recent of $XXX,XXX contributed. $XXX of residential related was closeout results The of record quarter full lot equity most XXXX's record Strong exceptional and per totaling strong our results exceeding Summit, by the EBT by the MPC acres land also year than acre Phase XX%. MPCs our and at were a of the XXX earnings driven average to sales outpacing condominium strong for guidance units million, price more

of quarter. We leading sales, believe a is land future MPCs we sales the in to have which sold XXX Turning home indicator across new our homes

solidifying homebuilders XXXX. a increase strong the was this our the into and top-selling nation homes, homes. These the in X,XXX for Bridgeland in XX% setting MPC year, respectively, all-time X,XXX nearly of XXX to This RCLCO's high Hughes MPCs communities rankings, a homes and sold XX% award-winning sharp Howard stage year-over-year. representing and For continued master growth in nearly a increase increase to new well results as further #X in Summerlin Bridgeland, the #X appeal new in XXXX primarily planned the propelled community, for growing sold for attributable Summerlin as

Looking another sales construction aided expect of by inventory. starts with year forward, and new lack significant home increased strong a we resale for

With or levels in about X% to majority resale and locked of of into the not to foreseeable an interest U.S. increase ease, supply. we future, anticipate less, rate an homeowners do expected rates mortgage but only X% the for

driven also by continue home the market, like partners. builder home mortgage be to which our a many the incentives only location size, of attractive buydowns into construction style, buyers to and home rate result, but As the not will opportunity offers new pick offered

XXXX. markets, expectations increased for homebuilder demand throughout The and acreage the we new in anticipate Vegas in significant With undersupply Bridgeland Las home vacant and new of a for continued and construction, Hills lots Woodlands Summerlin, Houston strong

first also in sale of close the near lots on of expect our We the first Teravalis to Phoenix. Florida, village

more MPC, than the more in XXX and to sell lots recently were During quarter, this we in contracted January. lots additional fourth XXX new an than contracted

details we [ in in strong of Carlos the full All of Overall, will MPC XXXX. ]. provide to guidance year close on are few a these expected EBT first more our lots another minutes year of the in expect half year.

of a loss $XX.X a year-over-year results Seaport. million, the including loss Operating million, losses Building. to operating Turning of a the in from challenged of and net million primarily reduction quarter. NOI in quarter, equity the with fourth Tin remained revenue Seaport the modest X% $XX.X Total $X.X was

successful Market losses Although Despite declined at lower improved bright the rooftop At several to XXXX. And reduced quarter, and XXX% Building, businesses the improved the Winterland in from immersive Tin our we during we mid-December. year $X.X With profitability including activation going transformed due our officially in Building, Tin performance Building, and these there holiday owned we and lease successfully and the our to and is weather Wang poor the at Club of in we spots strongest November Lawn this building a wholly result December guests Alexander a million XX,XXX opened the occupied, which the expect year-over-year, e-commerce as disappointing Seaport. now forward. venue the commenced since that, our restaurant closed were equity the primarily of launched with than into platform sales conditions an opened in Fulton finally, venture, more attracted month revenues. results,

Vegas During Together the in Las we with own interest Mall called the rights minority Vegas our Jean-Georges Fashion announced company the publicly quarter, air Ballpark intent our including traded Seaport over to our Restaurants. of its XX% and into XX% Las off spin the Aviators, Show Seaport, ownership Entertainment.

the transaction the that the Howard working and complete positive Entertainment years have share remain January, together, details In spin-off We'll Hughes and CEO in Nikodemus opportunities this coming ahead. as spin later about confident in Anton both we joined are for of to more Seaport year. the the Seaport hard but to the And months, will Entertainment. we HHH create,

Dave over Striph. turn I'll to now call Dave? the

In continued quarter, performance, NOI, David. the million you, ventures. solid contribution their our delivering Thank fourth of unconsolidated the operating including $XX from assets

XXXX. relative which For to a $XXX year, of generated million, we the X% represented full a increase NOI record

retail, our Excluding office NOI divested self-storage assets, year-over-year. increased and X% medical

which a full our most The seen fourth of year generated million significant portfolio, of increase was $XX $XX NOI quarter multifamily in million. NOI and

of at very by and X% the Columbia Bridgeland this strong the a properties and healthy increase, For lease-up rapid in-place new primarily blended represented portfolio. growth year, a driven rent Downtown across XX% the

in the their teams were to stabilized them. to Our year-end, is And the our our leased, command and of markets. our of multifamily XX% assets properties assets some testament operating at continue a rents which quality highest

in first in in the Woodlands, property growth assets development incremental rent Tanager and our into X in portfolio, at in were residents and Wingspan future and the in the of and welcoming we completed Downtown XX% Row The growth Echo Bridgeland, markets, late began develop units single-family build-to-rent and coming leasing, placed Bridgeland fourth like in including which service assets, began strong assets our in XXXX, Summerlin in our we're consistent we years. we continue Columbia. as the continued of strong leased NOI XX% to in Marlow year-end. With quarter. These expect Starling demand Riva leasing and at already best-in-class XXXX, Similarly,

year. by and relatively quarter, The expirations tenant $XXX vacancies The unchanged operating $XX onetime to at Downtown rent Woodlands. In in Columbia terminations partially office, These free million and initial strong and Pavilion but various lease increases full X% for year increased losses activity offset produced as in the NOI NOI as quarter some as Woodlands properties the was year well well Summerlin. million. XXXX in increase as at of the lease-up for was due were fourth full NOI of we

XXX,XXX square an or in company Woodlands, new demand the square impressive in amenitized XXXX, feet Summerlin In Downtown leases, square driving assets. feet highly XXX,XXX Class including the Columbia office in the XXX,XXX executed feet and A for expanded XXX,XXX home of square feet

incremental from this than more XXXX in later leasing office rent as improvements build-outs completed to With XXXX XX% our momentum are expect portfolio and in out. of burn with periods stabilized free we benefit office leased,

decline fourth revenue $XX nationwide compared well sales reserves NOI year. in This Downtown to increased as an Summerlin to million bankruptcies XX% as was the Ward the impact the was quarter, Village. in retail, primarily related of prior in X reduction lower reflected tenant and In which

re-leasing are Village, we earlier the considerable already taken year. in reserves reflected Despite space other. backfilled At promising were spaces subsequently success one a we portion have in of have the the this Ward seen to negative the impacts and in these vacated Summerlin negotiations as quarter, for

or a for excited the at we retail flat number of with year opportunities million our was year. quarter leased progress, and tenant compared XX% end portfolio, Full But retail XXXX. upgrades $XX to the stabilized NOI prior are about in

analysis some commercial changes projections, and user the of leading regarding estate an to NOI portfolio. changing facing stabilized higher modest in-depth given and multifamily have requirements that our of the real costs, challenges recently Finally, across operating performed we been

due decline NOI taxes by and and million higher a to stabilized a operating or driven increased updated our office, $X.X mostly costs, vacancy In insurance. of levels X% represents

associated million X%, of driven projected by expectations by NOI for stabilized declined Our Village or redevelopment. reduced at retail $X.X Ward status with current the primarily its

We extremely increase new increased to we declined our retail of new stabilized at add $X.X stabilized remain costs, operating to expect we developments. And reduction Hughes X% projected success market. over finally, as in our the Howard due confident our and our time the X% Houston long-term taxes about overall NOI multifamily's base the modest property portfolio. NOI or primarily stabilized that projected of a will Despite million NOI,

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

the for Dave, our asset fourth stabilized make in construction good morning, our we Thanks, $XX NOI quarter, than of million continued everyone. solid projects, more and progress In which future represent commercial operating segment. to

new in XX completed is expected Nevada, South office, later was advancing First, foot away, of XXX,XXX This by which building a Meridian. square Summerlin market be this to of is the completion quarter. be nearing Center, are Grocery Village X-story few named retail nicely. office we recently A in the development, Whole square-foot which a XX,XXX Anchored construction will Summerlin miles anchored Foods

in square has Summerlin properties third the tight rating X Maryland, building are at well, now this our multifamily new retail of medical is Downtown are to Columbia. the XX% in development, This -- now Downtown experienced be Tanager of in final heart pre-leased foot negotiation. We has office which with it's and high adjacent another expect in and and construction quarter. In lease demand the star Echo achieved will in we XX,XXX stages our completed water Tanager XX%

We in second quarter. complete to expect construction the

rent In Houston, single-family we XXX development nearing in our Wingspan, are located of home completion for Bridgeland.

of This XX% quarter, second and assets. Wingspan XX% were transferring At completed the Wingspans XXXX X units construction a to During began on silver the quarter. Across operating of in a unit stabilization. be Woodlands, released. the to completed Row, in town our year-end, Waterway Woodlands second contribution is Riva nearly half at well. multifamily XXX upon lead development completed We we of celebrated anticipate The opening grand of very be completed fully is going with strong million total will and tower its the luxury NOI in fourth units $XX also expected

on at future pipeline, have Looking X development Houston our we new the projects horizon.

office featuring First, we Village Bridgeland, and mixed-use secured in building grocery Central, stand-alone store. Bridgeland an development restaurants new recently for by anchored a in-line HEB Green financing retail at an

kicked or high center will retail the be retail during and to space XXXX. redevelopment with back and space. which the Woodlands Mill Woodlands, new XXXXs was was This preleased seeing history in of Village in property, which the negotiations. the with restaurant demand center in tenants, in-line the Grogan’s is the we already are This recently Woodlands We public retail first from advanced the potential a Center. In library XX% important off of part redeveloped community an in completely reacquired asset, the addition of revitalized

residents condominium and a are will Mainland, state on Residences, of ultra-luxury in XXX-unit in condo our couple we the approaching in Texas. stand-alone of our Ritz-Carlton shores first Just presales U.S. branded MPC be This project project the of miles that's first this first the away, Woodlands launch Lake The kind the the of Ritz-Carlton for Woodlands.

to March. commence We expect in presales

Ward condos during and final our year total demand fourth sell closing contracting we and Park of Ward to at to the see Shifting to quarter, X Village sale residential Kalae. continue units for the at a the on Village, solid the Ko'ula of

of For total closing million. XX A'ali'i of range for backdrop, had these units represented all These projects. on at units closed housing revenue Ko'ula officially a XXXX, another we $XX a out challenging of year and despite we successful as condo the inventory

to condos incremental contracted representing also We in million. of sell future $XXX presales XX revenue

under includes Park housing broke our both and year-end Village in on The slated finally, Subsequent in announced the also expected XXXX, year, is earlier and and Diamond in year-end sweeping residences. project Launiu, Village. well. were development the to in This ] of Ward deliver this final our Ulana, head late for XX% we early we to next XXth XXXX Presales construction is [ and our currently this completion At Kalae XXXX. And Ward we presold. currently increase premium in offer XX% completion new month presold. date XXX will and anticipate Victoria tower in January, Place, a earlier XXX% workforce commenced progressing tower on presold condo tower ground The

will now would over call balance the Carlos to like Olea, I to sheet. and our the CFO, review guidance our hand who

morning, everyone. good and Jay, you, Thank

now projected by aided With reductions MPC during tight strong the record-setting to be we turn in rates remain XXXX to for supply homes In of robust on and our our mortgage segment, attention the existing EBT continued another Hughes. history expect we year books, in is to what the anticipated XXXX and XXXX market. Howard modest

Bridgeland expect woodland We this The Hills year. and will drive the strong landfills in throughout

increased second anticipate to we Summerlin, In occur the which sales, are in primarily quarters. third expected superpad and

Woodlands as significant in the associated Summit The clubhouse and with be well expect our joint XXXX, equity in lot price EBITDA Isle earnings custom participation commercial in the lots builder the heightened offset Teravalis the gains at from sales at Summerlin. performance expected by as of year-over-year included year. during in first sales These first also see which Florida near to increased are than line sellout venture in to more of the We Aria half and condominiums reduced

EBT As at to levels XX% a result, a will we expect modestly remain million. exceptional XX% of midpoint with MPC year-over-year, $XXX approximately decline but

since In in mid-XXXX, the new momentum periods we NOI to improve NOI impact office be of of our result developments multifamily anticipate likely rent operating tenant $XXX expected approximately in range XXXX with assets, expected and which flat Las Ballpark on be leasing but occupancy also year-over-year. in XXXX, completed projected office the million. Vegas includes of and is are be from going is experience new retail benefit to million, Aviators developments many increased the strong forward. to to the portfolio some spin-off growth in leasing new of Las vacancies to free up NOI The from Seaport and midpoint a Entertainment. X%, leases office drive to relatively the asset expected a $X.X X% This being Overall, of will NOI included in of operating Vegas expected

revenues the are timing condo next expenses and strong sales to compensation. being expected million presold, the million, XXXX, This for excluding to of Place the of noncash and G&A condo associated Victoria are spin-off of million with anticipated range first due XXXX stock of approximately closing margins to Victoria delayed $XXX $XXX $XX is revenues $X materially of with XXX% $XX Victoria cash closings. And million gross sale XX%. million and with the Place sales range XXXX. to finally, $XX between in expect Place between Seaport increase cash quarter XX% Entertainment and fourth million, late condo contemplates of we and Condo to year $XX of guidance million projected approximately quarter between in

dispositions. Looking at asset

During The Plaza of $X. in of quarter, closing in X Office Medical Hermann we X approximately Woodlands a combined Subsequent to in million. these medical for $XX also Medical the the million. fourth and for office resulted year-end, sold sale Building The resulting Memorial million. we of of sale million, Park a gain Creekside gain buildings $X.X the negotiated $X the

year, dispositions, For well in Village Ward the from of our including sale the recorded a X land noncore full $XX million as asset self-storage the in Woodlands. of facilities parcels as we and building X gains

year due development repaid us $XXX only the payments $XX fund we be which year quarter, of outstanding in the $XXX to XXXX. us $XXX of contribution to which perspective, Victoria principal quarter, million as our the cash, leaves of in units the pipeline. From in at to was end with amortization We sheet. loan with of into will million $X.X $XXX to well ended needed leaves current with related the equity which had million. Turning XXXX. Approximately our million billion are balance million fourth debt At deploy construction this of maturities a our only positioned end remaining the fourth the the projects closed Place, of on capital

from of of in million in million $XXX With XX% $XX our XXXX. and $XXX the During the million construction debt including of XXXX X for closed refinancing in maturity average loans year-end XXXX financings, or we later. and years loans quarter $XXX was for maturing maturing year, closed with at debt of million latest development alone, weighted our fourth

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

Carlos. you, Thank

XXXX throughout of Before we Q&A, want to open for exceptional up year. the their performance the efforts employees in the incredible for just lines commend I company our our reiterate and

strong MPC we asset into growth segments another of continued core NOI year across expect in Looking Victoria XXXX, our in project Place delivery with operating condo Hawaii. robust and EBT, the

these improving portfolio focus MPCs positioned team During the projects year, opportunities our will grow assets believe time, to our in communities. At industries. development we about Entertainment we're which advance more excited of to attractive new the Overall, seeking for Entertainment, are growth of spin-off years we focused master the the and positioned performance Howard award-winning same Seaport to in anticipated asset on better while and be will ahead. HHH within portfolio of our future and the core opportunities on extensive assets value hospitality the we Demand world-class Hughes. successful high. expansion entertainment pipeline provide will at seek be unique intently of well of Seaport of and net And complementary undoubtedly Anton is flexibility the our planned

you call. let's of the the open the first Q&A question? start please Operator, portion that, line the With can for with

Goldfarb from coming be will question first of our Piper And Instructions]. Sandler. Alexander [Operator

So few questions. just a

projects how we us at First challenges front, about are the the market. the just lending -- of give on different looking the update relative development experience off, can lot on have has how a in across banks to stories given read that And David, that your outlined? the construction you you been construction an

year, guys what Just to are underway. to as construction market I'm a degree about this ability we the into projects trying lot lending limiting think you the your just busy, put ground. understand to is

the past in experience. almost easiest market the the we're get, long hardest this my and loans a time, get. to a seen loans a construction construction the to condos the an asset Having loan Right But know on And been It's or my I are I in spoken I XYZ long, I've dealing say number condo repaid. loan in are real on that exactly it's its time. time with Alex, of going know to make construction be quarters that saying, several what flipped all Alex. what now, a get take asset, don't I question, presold is. But condo I've market ones I tower don't how out a the value construction the Great And can and them lending lenders, that I'm we of like if Hawaii. construction head. asset in at used completion, the on know something would to for never Hawaii, a multifamily with over is

projects, not not our in dynamics to returns it lend seeing the lending we'd have environment is We're we we've bids in multifamily The blank, in still certain career. execution on X seen we still we're market loans the to a kind it's decided It's in going over not not time types. time which that waterway but been construction other us definitely the used of very challenging on that and X one got on harder on get product like filling office. market XX, on were as constructive where We're think We hardest relates a get So financing has Flipping a any or share, to a my so to incredible Riva Hawaii. than on them, in lending is on a much have great that asset we're we in even to project like the Hughes. I've today was construction. market and almost towers our that in secure We're it we're loans given on X to my on lenders Woodlands, still we're that a condo we tremendous project. the down market there lending shortage able the script that run-of-the-mill a try have in, of Howard a been of -- Row at seen dominant

David, are and if could are -- your So that like the -- feel you or projects get that you'd sort pencil of find do more projects are you're you do -- an find you you to lending the you lending do there that -- equilibrium? the that

We're taking still getting we It's longer it's find the all bit projects a want done to. harder just little financing. that a that construction lot and to

Okay.

is -- minute, and Second how the forgive botch me Teravalis, a question it. name. think, I I'll say say because is Phoenix you

You a are a going this it's I them you're Previously, an have to all this announced of launching a new just associated still first perform had think do project year, bunch ability And spoken how they sales? on of for builders of half. all lot for tough or sales guess, spoken that with because you MPC. Are have challenges for? the a initial year, we should that confident that we the moving to hoped the last you endeavor. is initial understand as target

still think incredibly about I we we as that remain discussed Alex, excited Look, the remarks, prepared Teravalis. in --

getting homebuilders those model forward preparing moving there look and to building great in that closed have we lots there's and always hopefully But we January, risk those additional think with a XXX. quarter, those and Teravalis. close contracts fourth forward new we like got horizontal in development the lots development, that, During over contracted those XXX especially getting we're in to We associated an momentum homes. contracts and on and

still And just later filings then want to you Where on Seaport Is stand have we do? do Okay. this finally, update. Just track that fall? the it guys in for Entertainment to also -- be to how part still Water TBD? also, progressing. that update then an going is that? on is And get David of Or then XXX -- and and is that

answer as expectation I'll Entertainment Water, would your that, the that our second of included part is be in question spin. Seaport So XXX first.

number third am As But of that we on look, is of of far out the third in year. as dependent that parties optimism spin I that optimistic a are this timing my can the complete control. goes, quarter way

the have to lot We a work do with of SEC.

of to We to on consents the of have different spin. number part and assets be loans different a get

have We a board. to set up

management Anton. out of to work done amount to entire to get the into needs have team for that the an spin. We get fill There's incredible

I Of And I period the just out an that them. of of this our it's incredible than that anything can really we've time. things year. are of control, short a those feel And hesitancy I quarter a areas very of amount progress about feel to sooner gives promise like that made control good in third me

next coming JPMorgan. from Paolone of Our be will question Anthony

Great.

projects question you this on that outlined the start couple First of year. is to

the and Ritz-Carlton yields think I on Bridgeland Woodlands returns those? expected and you talk or even about the condos, can

we those we When have premature, dirt, what the to communicate shovel place tend world Bridgeland, make I'd are. we say contract good expectation. some have Today, to we GMP those like that feel to drive Tony. it's get some I until terms planning, put and in pre-leasing meaningful projects that get in a we finalize little of bit to dirt, shareholders. of sure the so promise that retail the value a We that too in leasing can my get some know put don't in returns far in done, until on ready the great those are done. GMP still it returns going we creation we're something But finalize and to deliver for the over shovel on I our don't skis want that especially risk-adjusted and I

look in construction questions like just bit something financing you guess, differently? X, at the percent mean, will there. discussion these on Like around and loan think these will Alex's the following I up Okay. I X-plus returns cost Or days range? clear do you And them sort a construction of

to Well, be have -- return its look, going own each project is dynamics.

really well could there. a it's that the of yield exceptional be do project of as rates right? strong debt, where construction you're a condominium deliver still to the to of There Ward, going close. It positive financing. perhaps that's at are is premium leverage, Ritz-Carlton not lower going cap to meaningful as Regardless some cost than For margin, underlying but other but projects We're building multifamily. an cost the

the And for when my construction back career, value that that in creation But there's an as is your of the months. not you that P&L of project I and was doesn't following XX or started part then relatively your where shareholders. the financing in your which overall financing. part I to the negative leverage, is of cost small first an but budget mean our still the incrementally just reduced by world It's construction that XX goes building financing overall for draw to equity given down over of

So still couple I value points couple of years of shareholders. generate have going if lot a a liked a our than for what it's to higher it's ago, creation of would

And got to becomes bit how more just maybe of Or terms it walk do a then this you those How happen, visibility you're have through it can little the lot plan sounds it normal is is lot of It superpad? this that those you doing bit us walk just teed take a Okay. builder how those for and deals for your superpads, into happening? And much actually some work? you've development year. maybe like you works. through a along and comes we -- when just up on little more have and Just in a it?

Yes, absolutely.

given superpads selling Houston, where selling of something lots finished those in we're and there. And position dominant to lots, unique pursue are we're a more Summerlin, superpad competition, to In Summerlin. So able a to think there's sales kind been bit land builders. strategy we've our that is I

sell has the won't in change. methodology all the in sold So superpads. all that of residential of But we past for to land years land, the Summerlin, homebuilders been X that

smaller. bit are a superpads those little Sometimes

Sometimes It the going that's pad, built there. homebuilder type on the of infrastructure to million the $XXX they're and size the of community surrounding get the by superpads. depends

What inside do able superpads, the the to responsible homebuilders, they're in monuments we're entry of right is and to bring improvements that the and utilities all we superpad. up the of those finishes land for to sell the

homebuilder. profitability becomes per lower acre at of and of burden a we're generating superpads, we're infrastructure cost while that So the net much a the selling higher the acre price reduced per selling because

last little a my on talk along at X talk side, trying perhaps quarter $XX and NOI portfolio known was it any even office if stabilized think, and you being looking or to? I beyond. is bit about just like in I what the lines I'm $X NOI, then same then other your that And at might you that maybe understand the properties the the operating million the year is it. in the move-outs multifamily item development could the into Got to in [ drag offsets XXXX the incremental other Can a ]. risk million, maybe And next be because Okay. look

like be And that so lease it pretty seems will just contributor. just up strong a and

trying offsets So understand the I'm are. just to what

meaningful great I into prepared portfolio don't think question, in to the just of sales it's multifamily Carlos of assumption. for We've on we'll retailers. past do things. perpetuity, by years. had that our great project see partially while that, goes think great I'd Yes. to in the remarks continue couple his think from a benefit it's per tool portfolio, I guidance the of No, a retail across different and bit little Tony. to hesitancy that growth meaningful be offset about our talked And like to rents as A a that can our foot make couple of percentage

the And are both portfolio for base impact NOI this the number next have have of headwind leases in bankruptcy perhaps negative portfolio. that a year. add year will office out of tenants number we there do So across the a incremental moved and of will that year retail bit signed a that this little

they've So will by of in of one place continue will rent and we which think WeWork's those one which -- as was offiscated to had to which and to bankruptcy, momentum pay headwinds one and be date remain it of the that move-outs, kind which But with positive some they've going alternate this year. of left near-term is we create backfilled user. switchover an

Capital Markets. our And coming from one And for moment will John question. of next BMO be next our Kim question

estate announced John. just to transition just starting new there the plan on and ballpark anticipated assets outside Eric of Spinco. to is that the with XXX Seaport you the Street. for Maybe any Water the if I other curious entertainment was real It's

Water past, Jean-Georges XXX minority would have Restaurants. kind of be think in the Street, the all in the I discussed assets York, ballpark, been New of including the No, assets which and in interest team our all the baseball

on condos Ritz-Carlton then And the to Village, helpful. of additional thinking Ward as That's is front, the outside the and development condos the that you're and relates it Okay. condos, for Residences opportunity there other about? in MPCs

Ward at on. locations site value may Ward just about Summerlin. and and that beyond very or exact MPCs in our X think And mentioned no I by a and expand we or that at It's we're could we working Johnstone another and the to think within that presence opportunity But Investor could that and details Ritz in in the much have Day other Wedemeyer condominiums, be focused work, incredible recent Village think which our this The be put site we we're machine Village, economics. But most why for create an and reason can't Woodlands, Bonnie together. there for Doug We Jay still use shareholders. there Absolutely. X hard, machine our to not our have there's premature talk team to led incremental its

the office Hughes demand Hughes And Okay. is your XXXX just the And tenant me types. helpful. different leasing One one then tenant last Landing expectations are for at and That's or what on Boulevard?

Yes.

pipeline. that time, have we're good to real We of number a tenants talking a

is building, XXX,XXX full The headquarter feet. that Now that entirely woodlands least full. demand our that fill seeing building in did almost that at building which XXXX, We're the is square

an momentum Given Hughes,XXXX, that are velocity great used to we towards XXXX that, tenant have has shifted getting now. and like that right seeing building leased all in we some feel One landing. is incremental full, demand interest, now that been

I like closing O'Reilly turn Instructions] to the remarks. David for back call now [Operator would to

I follow-up Thank available. information just again. want questions, forward you, call. always or there's non-deal to at we're if today roadshows. for need our investor as always, thank to seeing upcoming events, And for or our you additional any on everyone again participating Look

this And concludes today's participating. conference call. Thank you for

disconnect. now may You