Howard Hughes (HHH) 5 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to Howard Hughes Third Quarter 2024 Earnings Conference 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 today, Eric Holcomb, SVP of Investor Relations. ahead. go Please

Financial and Counsel. XXXX Honolulu, O'Reilly, Howard Holdings and Olea, Hughes Executive Asset President Aloha and Management Call. welcome With Quarter Operations; Chief Carlos President; Earnings Jay Valane, David Dave me Third Striph, Officer; of General from Joe Cross, to Officer; today Chief are

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

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

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

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

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

who the our on I'm projects. Jay remarks cover Hello, the performance to and begin cover welcome you, followed earnings recap operating will communities. highlights to development our today, the provide Dave strategic and assets, by our master everyone, planned quarter call going will Thank call. with Eric. our for of updates third from On Striph quarter of our a segment

before the updated to balance going guidance open review lines up is we year the full Q&A. Carlos Finally, our and for sheet

our further real for our model the defy portfolio third the exceptional market. ability our of business continued estate we narrative the entire exemplifying national and resilience unique results with to quarter, reported For the

net continue we led were demand at record results. which quarterly sales, a to EBT. a new In acreage, to Turning to These acre MPCs, contributed a price for residential homebuilder which experience segment per to our revenue. in land elevated record increase near MPC achieved significant

increases type, continued year-over-year notably $XX Our operating NOI pace in at for meaningful solid office delivered most strong each of and units strategic demand more property a and than X% a growth, in our Village and contracted, representing future condos for Woodlands the multifamily assets revenue. with XX development Ward million premier

expect commence full million with in completed these XX% Place of last we which we segment. now generate year are we Hawaii, all in tomorrow, expected guidance raising in our Victoria to of just $XXX With fourth quarter. to each gross Here Closings results, revenue the margins week. are incredible to XX%

$X.X record EBT the We residential across MPC Looking results. deeper MPC third $XXX of at our in which our an million of were acres price at on reported included quarter, acres the average land acre per Summerlin, impressive communities of sale pads segment Land of of XXX price XXX million. closed by of we where acre. super an million for sales again the of per led $X sale average

per $XXX with Land our were XX% or acres land residential a year-over-year acre Bridgeland increase. Houston representing with quarter, in XX%. and revenues Woodland sale the year-over-year increase strong sales increasing XXX% XX in sold Hills, totaled Overall, in also average million price the

reduced related with remained homes sold, across was decline, third year-over-year solid XXX available in inventory for quarter XX% in nearly entirely this although to sales the home almost sale finished of MPCs our Summerlin. the New reduction homes represents

offset But out. with inventory. the neighborhoods in several evidenced these new second quarter, not As closed were were

temporary, a year. in will quarter in number quarter, however, The third as to XXXX. and available plans for inventory expect floor compared online the of Summerlin end the had prior sale new inventory is fourth housing Summerlin in as fewer neighborhoods additional record at with open fact, we new our the of will come In homebuilders reduction several XX% in neighborhoods

do to demand this strong for consider be buyer and and bullish temporary for our in that It's of interest important increases not report remain sales. has home declining results, sales continue on outlook indicator home as reduction an to future healthy orders. we of land Instead, partners the our in many homebuilder note to demand new we very land abated,

of meet dynamics year, within end these both VDLs partners approximately were in and Overall, in well last elevated or months. month or new MPCs, and homebuilder finished but to and lots mortgage momentum in the below the we we are homes and believe Bridgeland inventories XX MPCs. which demand, months, positive less on national developed quarter, well decline, end rates of Bridgeland X decline the At undersupplied. Within with inventories working Summerlin the Since are our below of of average XX vacant months. remain at VDLs new the significantly approximately the home supply. continued XX communities, currently been our equilibrium, our of Summerlin the a hard VDLs lots have is were and Vacant months play remain expect third X

have more record EBT will we As by achieved what at MDT be sales the a a moments. land discuss Carlos price result, full by residential a the details for headline in XXXX in guidance near this record per few will midpoint raised year our XX% acre. expect we term, of

over that, a call With to turn operating for the of going Dave Striph review our I'm assets. to

Thank you, morning. and good David,

delivering total, strong across year. operating income, delivered of the million net Our to compared operating prior growth the $XX we type. which X% asset improvement segment represented an heightened during In continued to year-over-year asset each quarter, experience demand third

our partly by gains occupancy lower of primarily was performance of is most at successful in Hughes year-over-year Summerlin XXXX reported growth result abatement million strong by -- which Our continued office, by a again at and expirations XXXX the Woodlands. the increase. once Woodlands a leasing over of Landing These or This couple Forest the X% was last -- driven performance XXXX offset solid were Woodloch in the $XX This notably and years. NOI Pavilion.

the quarter, new office all stabilized of During leases of XX% expanded our quarter or executed our XXX,XXX across leased office end. square portfolio markets, at feet making we

leasing in to from further are office rent XXXX as off. expect completed benefit momentum this burn build-out We and free periods

Marlow increased also Tanager growth portfolio Echo Bridgeland. and second multifamily newest consecutive This year-over-year latest of quarter and performed delivering Starling primarily Tanager Echo, was $XX of associated XX% leased, in Bridgeland, success rental up leased. Marlow XX% properties, totaling in Downtown partially leased to Bridgeland, a leased Summerlin multifamily driven portfolio These losses end. XX% fully initial and in NOI leasing our revenue were XX% Our impressive seen by well, now from million in an have which with including was with our increase. record the addition offset XX% Wingspan, These at the June operating at Columbia, impressive or at lease properties was improvements by Starling completed quarter

portfolio extremely at Columbia and well continued the XX% quarter and perform at XX%. to Our and Summerlin leased at XX% ended stabilized both with Downtown

our guidance strong the ground primarily quarter our Columbia, X% or in the improved was of year-over-year. which end from leased. floor year Juniper results, In the Downtown Overall, the a by retail growth which with Overall, in further an of increase few quarter Marlow driven these Carlos increasing are XX% leased the retail million more at third and $XX XX% provide full ended will retail, we stabilized at at This portfolio details quarter. for moments. in performance was third NOI was

call the turn over now I'll President, to Cross. Jay our

quarter good projects of Thanks, David presales are of In had Dave, important recently condos. condo Village, related to The had under see the with sell several steady in and in morning, good which developments, majority another milestones demand. presales continues another project and Starting Hawaii, these everyone. new the to as strong we quarter to achieved Ward construction. we XX strategic mentioned, contracting -- our

As end, new we sometime construction year. of quarter project presold. to start of hope this next of this the At pace, was already XX%

and Village a and respectively, is units This with Ulana, Tower sell. in sold fourth to be the projects XX% year. in workforce we Park Ward at -- construction to late XX of now handful progress remaining and presold, our also Colliers with We units XX% presold these next Ward final and to tower nicely, expected September. celebrated of Village, fully is quarter continued morning At

Victoria addition to quarter. profit on in amazing last and to just earlier, Ward bulk Place skyline. tomorrow. will This week a condo David the and entire achievement, and Congratulations beautiful completed this As closings team we which is revenue our represents tower is to fourth Honolulu completed seventh gross contribute record the condo Village commence mentioned project the to date expected

XX% project XXXX. October, ground at condos exciting we the sold In XXX-unit In project, of the pre-sold end. luxury to this this Ricolton Texas, X we Woodlands, residence at in complete we making expect early an on broke which quarter additional

prior effort to discussed and we on the As completion. calls, to an project, sale the returns on with market continue closer hold project's for remaining of the back we've units majority to this to in plans maximize

These each in development, will Overall, substantially we Prison continue out now are remarkably XXXX XX% projects were at anchored completed recognized with the revenue on our Foods approximately project newest under end, be leased at the fourth Grocery $X.X and Green respect represented operating collectively Whole Center -- in projects projects, including be as quarter to Summerlin asset more future delivered. billion quarter. construction are several predevelopment and will construction Village to advance which presold which and XX% is With of Central, both negotiation.

the luxurious half to XX-story in topping we the in on September, completed celebrated XXXX. off of is Riva X late a Waterway This also second multifamily Woodlands. be ceremony In Row project at expected the

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

we G&A our very XXXX be everyone. our EBT, Dave, and operating successful NOI With year. incredibly and year. that asset condo expectations you, in good Thank we for expectations strong record-setting remain tightened third MPC confident a morning, the our -- and guidance raised cash the Today, books, we quarter will

contemplates prospects quarter, sale a we additional do we additional year-to-date, see year. we in with the XXXX. continued improvement Summerlin, very anticipate at successful EBT record will X% not custom of In original of which lot an of EBT closings Overall, landfills price price average line momentum the acres Bridgeland incremental due fourth following strong full the with Super the midpoint XXX Pads million significant expect guidance participation $XXX results to now represents record including MPCs, the in in midpoint. offset residential record sales. to sold MPC the of the results million acre guidance now well actually the quarter, to This limited acre In and for for in over fourth the of Summerlin. at In per $XX third a a for we sales do builder sales X% success very and record be in Texas which and down Woodlands we a imply landfills Woodlands Summerlin XXXX, the as inventory sales quarter, and expect the past -- commercial but as reduced anticipate revenue,

In midpoint property with growth strong of full year-to-date, our of NOI operating expect million performance with approximately in portfolio now all record the year assets $XXX types. the we at

year comes Our NOI guidance in million a X% modest in our and million of Las solid increase. midpoint. cost $X X%, of represents the to $X prior previous quarter, This X% up Ballpark represents of guidance at range in Vegas X% seasonality increase favorably some the the contemplates to but an fourth and the increases including and year-over-year overall to

expectations with was million million closing $XX sales expected $XXX between driven million delaying we is revenues, now guidance to $XX $XXX range hotels to XX%. be are and XX% now $XXX first million of Victoria and fourth previously Place, million to completion expected Condo by and million. quarter originally more XXXX. expected which revenues are of condo in the margin into between Gross and the range This the expected only than between residences of quarter $XXX to

compensation. now of This to G&A $XX to cash complete million. million stock between proximately discontinued and guidance $XX $XX year, our spinoff operations million expect million in as guidance the well Entertainment of Seaport excludes compares now are of $XX of the to $XX expenses for prior we finally, million noncash full million range incurred which reflected $X which to And

During $XX the settlement to dispute million other in related final the quarter, our Village. land of of income Ward recognized we

the construction related contractors, represents Over any million defect we the of last of This payment payout years, remediate tower few in all release windows million $XX replacement the $XXX insurance claims. and the a full expensed while other reimbursement parties virus of pursuing the from policy including responsible gates. insurance further the general and

$XX project reached of we of recognized million, costs the Therefore, In general accrued. they which was continuation during during incurred $XX this final of contractor construction. also sales and we that cost condominium to Approximately million way settled settlement, previously rights $XX quarter. pay unit the million incremental with

achieved With XX%. these gross overall disputes on now [ AAA margin was settled, approximately the ]

paid balance well the was of our sheet. million perspective, the positioned necessary a to as remaining Victoria had From leaving future. the we loan $XXX At of $XXX September, units debt the of third the end quarter, end quarter these capital billion principal payments leaving remainder XXXX. to us the [ with million which $XX as quarter, related will cash to during current $X.X the on are to contribution be needed Turning amortization construction of in at approximately $XXX the million. the of our outstanding end us of this million of had We maturities XXXX. at of ] equity projects during near-term fund approximately $XXX Place, Approximately closed maturities to deploy million

For will coming Marlow, X,XXX which for XX% for with discussions both [ more our these and quarters. loans assets and leased. are approximately Merriweather Pavillion, Wingspan. also underway, ] the construction for have are $XXX office loans million includes of you maturity, than Dana It have XXXX, multifamily we and Dureka the already which construction we includes in of share to more Refinancing many X,XXX

lot we $XXX receivables of after the proceeds bonds costs. quarter, cash sale from which third-party of on million third the of issuance existing of transaction the -- during through we reached tax $XXX finally, And million closed

The third-party flows. fully wants serviced reimbursement by will be cash mod

the month of additional Bridgeland of As cash part for to of returned or expectations, are million. a If either future flows the million in future $XX our could receivables reimbursement proceeds this transaction, mod we with consistent cash also sold mod sold receivables future be $XX transaction.

event bondholders, flows would bonds. or other receivables However, cuts us future to from if a serve to shortfall not used the be a delay the the cash then as

obligations no are service additional there provide collateral. Hughes for However, any Howard -- or

generated used this the of liquidity excess the score loss significantly security accounting it on borrowing new in transaction this cash and this coming fund $XX Bridgeland additional mod sale the time available transaction Subsequent our to $XX creating enhances this to to by pay sales. considering a years. which Although relevant million self-funding in we by from years MPC mechanism accelerated recapture down adjustments, GAAP to $XXX debt being quarter proceeds maturity ] significantly quarter. extended future after million from while model loss with further optionality end, the $XXX successfully a of We providing to million to also capacity $XXX expanded XXXX, its the million line of to development credit X [ cash

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

the which our and closing, gross record on profit upcoming November within forward record look from which Investor held weeks will less condo X full sales outlook year. to at In the Carlos. bullish you, third solidified robust asset across averages, Thank nearly outlook, our land further details be sales above with and for operating our Monday, MPC were setting on well in results million record our sharing historical includes our NOI XX. than in $XXX Summerlin favorable EBT We more simply portfolio quarter outstanding residential Day,

you and consistently who attend, plan everyone soon to the one to of the why we in Summerlin country. MPCs forward look seeing you ranked is top-selling For showing

join the Investor will our website. which your you accessible be attend please can't mark person, live Relations calendars If in to webcast for

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

Instructions]. [Operator

question JPMorgan. the first Paolone comes line Anthony of from Our from

is, Or on First where $X.X little to be of to applying you incur the for MPCs. to have a billion? you'd color balance is if whether kind like a sheet? what at $X.X minute, also just that would rough spend give the an have look XX, there maybe just included a any you Slide question Just value acreage you to I background great. us you're prices there cost it's getting how achieve recent the Can billion, as giving

of to Good we Real Day what provide what an similar similar metrics that methodology the revised of times we're price analysis showing morning, Good from is we sell do back We when update. acre that each to remaining one It's to used used hear we that very you. participating the price X use to to that's we've NAV acres quick, over the the past and achieved we Investor in provided. the it our per we're and of Tony. the illustrative. here take Annual doing NAV per against appendices today. increase It's same And margins acre years. the the margin been discount it trying in

Okay.

margin include and variables? of and and timing cost just does the sorts that So disparate and all those

certain does. there it as where the and lower. they're Yes, margins are And where higher some know, you communities are

grading the has and Summerlin, is lower it slightly there. that to has margin to a occur which of do with there's the Some topography in why

of and some the relative cash going today, higher with to margin consistent to the has on cash margin is of a them GAAP Hills community, maturity like show And growth. margin earlier do later Woodland lower

for comment, know thinking running? Square Bill And I special process you'd Ackman Okay. the around around to the Board's able don't if is be Pershing then time but Got it. committee and any that line the

there we'll for have something publicly that, see. to filed can't on you well that any And it really been publicly. is as has That are shareholders updates, if file all comment as I know, process. any

And for me. just question last Okay.

NOI gap XX that And you the exist where the off like some those Like just assets achieved? the where at and Merriweather. might is operating of NOI Looking any of around there's at some think then for just office a retail kind context with the in could line in be levels. portfolio, projects of looking that still upside areas Summerlin from big

can portfolio kind hit our anniversary of in Downtown those right XX-year I Yes. Summerlin. Tony, of The now, a retail one Summerlin, we're time. at hitting

will highlighted that the advantage So we're where incredible seeing are there those to continue the Lego sales And taking And environment higher. expirations our center a credit the renew thoughtfully for board. recent tenancy are in drive performing foot tenants across some Chanel our of demand that we per retail with the to that to And signed of of have we've meaningful leases and quality of well. that take number the supplemental. opportunity we're upgrade market and that

we've In the XX percent months tenant XX meaningful downtime ago the when high as probably very of have saw today, to is build-out, lag meantime, XXs of couple for we the was and next will turnover and that as some but that NOI we downtime it seen behind what a expirations recently. leased, it and years kind a turnover without

think gap the those and I will over open that new close we quickly as way see expect. tenants time, we pretty performing them

is of in from upgrading leasing The a know, the couple centers, to we're you seeing And vintage meaningfully portfolio, of bit landscaping, a years facilities, of starting expenditure we're cetera. pandemic and the a the kind momentum. It turn a within pressure as assets LifePath, benefit older conference challenge. as the fitness more et considerable there's, in amenity of base materialize of that ago capital Merriweather before invested hit, the Colombia portfolio we little road office. is in Right on see

in so, a hit step where steps steps back, of seen past and one a bit in step degradation we've two now leasing that instead it's forward, really year seeing more two think little of space. For forward, we've one the we're inflection I the point back, occupancy. or And an modest momentum the

the detail to in speaking that lot more to forward look a So Investor Day. in

of we those handful out have about in We there positive pulled see to a time that bit. some little And I momentum the assets. talk first slides specifically a think for

our One moment question. for next

of Alexander from from Piper Goldfarb Sandler. question next Our comes line the

what And some David, just here. communities haven't over could if importantly, one, home inventory and you sales versus maybe much questions the land a certainly still economy. your of few would your routed mortgage back numbers a more still just -- there's relative as high thought, economy number like could And rates off you where land sales those, people pretty to a were but past sort just and go strong driven to almost is the of national. yet, it is, on, go ago. a So suggest back two, on as years in really early they and wide home you --

parts and of positioned catch if One dynamics. for X your are two, So land is, this. how home then your on numbers national through versus versus you just economy communities back sort and the on the the homes run can could communities so we to performance overall. of general And land

Alex. Yes. There's a lot there,

homebuilders, this a me answer or you there new And supply. as sell few the the or communities Summerlin, if and land month have national months Bridgeland forgive communities where slightly X less higher. know, minutes. are most of So takes our home the average which In is about to we X

we're -- are tight. we So pretty

build if complete of run, that lots And available that then it those that and the I argue is XX-month model about long homes the vacant because think an for home supply would take kind are to equilibrium home to a are order takes that order. you about get up new lots developed

Right and XX. XX is months, now, we're Bridgeland is sitting at at at -- Summerlin

plans that led to is in we've and floor our I quarter the now think seen home a over a pause actual of sales little is underlying Summerlin several homebuilders that mortgage we're what's and now. the rates a the sales of available has such momentarily decline that's that bottleneck ago, And low. close new low home number of year modest communities and right caused kind we over this to compounding in land buying record new bit count what incredible community past the saw and increase when quarters because

half those as quarter. will few the homebuilders a But land. new rates that the news really came fourth be first is continued us coming And to good communities online, buy mortgage meaningfully right in to The home in increase, those those of sales XXXX. when back strong

not dramatically. demand bit of higher that Our we see available and points be at. community to will The that increase today. of count it little number product if we'll floor than where back belongs, meet will is average be right to that up a buyers long-term will have The price just diversity meet increase we now able don't we dramatically the to plans

Look, I argue that you results, continue public pulled Number would to good down, of high. Cancellations off, they orders the backlog are strong. margins numbers. are if is homebuilder are demonstrate

I think the new housing home market has continued national to be down. that headlines very are resilient despite overall the sales

life If see our of those new for I that the look effectuate apart resale, land high-level continue sell need you raw migrate versus of materials, their per meet new numbers increased total underlying to quality offer that those a able acre has portfolio hold sales we a in the meaningfully. plan. what's market demand demand think business and a dynamic the the that communities. that increased our construction pull homebuilders at we pretty to Hughes our And construction to increasing in desperately of has for taking to we're that the that that's land into And Howard values better

to for than a realize still, nature as run when some but then to XX% off we, where think that numbers year that heavy where you're do year giving of rate." the And and just it's the started is take analyst community route second there where look, exceeded at this year out? for better you way of you'd be say, 'XX, transactional been 'XX we size going is this your I well year, to and business be, you're as going fact not sort Like try anticipated. look transactional. sort best heavy originally question guidance But "Hey, and certainly gauge the ballpark how Clearly, look the this Okay. we use where the you given you're a is about

say high. next number today history think really to a seeing sitting country. it's us to we're and anticipate to for don't take been is record in better that that sale be -- when provide the going and I We're demand to a never result, year even year of the a strong our has think housing do year forward is itself. in decline. company, difficult And short to today because that is see resolve ever going of units the continue land going guidance here what than here, to I to change we year on which millions And I think so we've Look, for experienced of the to the demand. dynamic to we're see housing as overall still it's I across going residential

And We providing so and not more to way fourth much We're communities. translate of look to great year. think a How providing into that's we'll Summerlin to me homebuilders. Woodland strong and about going 'XX quality about to guidance next live land difficult continue today, Hills. early life next and We number early guidance tell, feel our It's community a I forward in lot folks Bridgeland sales to you like call to quarter on for great year? give to our that. feel it's the very than higher color of that want

final And question, Okay. just Carlos.

tremendous On the of guys mods the amount generated you sale, liquidity through land a sales.

all is prompted what that trying given there this drove curious an like sales. free to liquidity restrict, money you this just And just is So Or then monetize does free generate so, decision of you to what that? of to not land sort and necessarily just I'm if the your -- offset by out necessarily the understand that mods. doing is

is, and but it Yes, anytime there's between that where on an in Alex. Well, administrative X take as has balance can you Bridgeland X up to in years. X know, to the exactly mods was our are sits an liquidity asset in years, depending this sheet case process that

asset is this for to first be the mechanism was done. we this do So that that the time and proved enticing, that see liquidity can opportunity was a if very there we it

into a us And paying asset of asset, Bridgeland we be take of up having an for have can attractive by liquid by then so what allowed million. to it subsequent asset Bridgeland down years And by see to for illiquid largely and in we the able a $XXX proceeds line deleverage turn to can to were turn around then liquidity credit with impetus X line to was even credit. the expand we illiquid that, the if created and that

was illiquid this it us So than all thought take really a have we asset helped that liquid. we turn it we that now that and a optionality lot before, you. positive around more understand Thank can into

next our One moment question. for

line from of question Our comes Markets. BMO John Kim Capital next the from

on Gordon John Kim. large drag the how in a online is I now for thinking from condo asset what quarter. are your coming you're next allocating about Eric you starting offer to segments? receive gone the which that capital Maybe starts? development just And is of going and It's has Seaport infusion multifamily, retail sales, from to as new most and operating return terms attractive the segment capital with, guess, of profile

it paramount liquidity I operate. we our selling perpetuates asking. that That's our more a Eric, flow question, that generates than love condos, sheet, balance I we cash less monetizing and appreciate have muds land you business to rather Look, how model, the all to fact great and self-funding selling free

Board The that those value. opportunities team we'll with make to management create as highest our most to trying those in And how chase we capital. highest allocate conjunction always return, a important decisions risk-adjusted that is we're

we here have with in closing in Place great Hawaii this of developments week. Sometimes condo that the like Victoria is

is buybacks. share in that Sometimes

new we whether at see more to where it's sometimes purchasing in drive we the always So of value love risk-adjusted returns, we're in our or we're the and going own company that's shares a developments. that underlying looking owning and highest

those new prioritizing It's very developments, market specific. about demand it's specific. think we As very

to and highest x the say that So today. type use it's is generalize property hard and best

margin As do we it a we'll the the we the Hawaii, tower or cash sell with here we company. generate XX% the another to Woodlands, Ritz-Carlton to in today, for sit the have opportunity we Woodlands XX% execute flow absolutely on in that of like if Summerlin at Residences free can here where continue and lot to another condominium tower did or in

probably multifamily, is seen in where today The strong next results. we've highest and same-store best use

able see And of our We and are will full see full lot across and when will those new that products incremental for generate opportunities demand, we're we a move. build we our shareholders, we're to value sometimes portfolio.

portfolio, then in kind small and and that create market in targeted value. Given retail seen that. that development full, ACV can we'll it office think a Foods to it's the build we Bridgeland. near unlikely vacancy incremental we an have that that demand. at in And more of instance very [ We'll tight Whole Summerlin our remaining and like we're and that of term. a really And in continue office ] lot return see the and around and do if amenity outsized a is some we in great do is do I you've retail building center

the on retail one Maybe leasing demand environment.

for if re-leasing cash around curious XX% year, hoping the could strength could some was And brackets expectations on next leasing Just you spreads. your of the comment I there. with you provide

around we focus to see going is majority expirations. question that the of largely, think Downtown I where which is And Summerlin, the Yes.

I early have it'll of will see We're depend, It's stages a be of here because in opportunity very negotiating of to that very positive think the How to mark-to-market. a difficult just wide some expirations. now. right predict right? great those we today

I spread. well time don't strong. of operating do as for long digits, haven't retail, up keep increasing of going expect think the kind of as mark-to-market And rent adjustments with but mark-to-market a like kind fixed it's seen increases. be see Its the expenses. demand to in, It's I double-digit see we it's positive, CAM to including kind positive in to mid-single we a all in

the come cash today bit up And you G&A I as I'm or moderated John of a On Seaport G&A, is I XX% going might year-over-year. comp. that, up would with have stock squeeze that But know is okay. if non-cash last your that's I of the just year-over-year spin-off. one it's have some wondering thought that expect to a if forward moderate? It's and wanted to question, Kim. down outside well.

Yes.

I the you'll so, to think over see year G&A next continue or moderate.

immediate not you very capital development. very that of to and X portfolio condo capital, type. thoughtful G&A. on we're public and estate our It's lot still, our spin-off without We're aftermath X from on complicated not to can is more and It of multiple, rate the just than We've as execute we we're our mid-XXs the grow to in to capital land adding that sustainable, years a real in monitor ago our And brethren, just development, an way were think we and to meaningful of knee-jerk business G&A. continue difficult know, run but we're human product also plan. business see that a meaningfully overnight long reactions think a of come a I million a takes amount $XXX that in making down to is the do the change. I kind

costs those Are land or of -- based condo success-based sales? on sales some

I'm some John? what, costs, of those sorry,

sales Success-based like on like... the of closing land

condo cost the and project, of of No, in underlying and are No. within condo those around are sales success-based the closings the G&A. sales, fees all not

next our question. for moment One

from Black Our line of the from next comes Oak. question Dara Hiwatt

financials. our everyone, on mean, -- right assets and taking great, is sale a as bit. liquidity what and seems delivered new your the morning, behind And thanks really focused seeing on increasing continuing of been across us, your has at But in and in development and all and forward, Seaport little very side, already look solid the quarter your the for to we big mean, the operating congrats on to be against now, obviously looking this against returns up I Good rising really which net all us. land comparing stock. that, NOI a relatively backdrop, success on you've general a conservative you of and in valuation showing least call. It's are Victoria another hitting business the on now, But just cylinders worth low Place it's I how is touched kind wins call. we're form of that

condo and liquidity other ahead liquidity quarter drivers. looking the from and higher sales in as And beyond, fourth even

or could is mind any Capital all that just And ask capital liquidity you Day. that, quarters? could know allocation -- this you guess as in sit for have more your it you Markets we I I guess and more particulars on So the much give around possible I year on a I your next few over thinking a latest

more it But So maybe congrats on just topic. look punt on if to then, you maybe the forward that. us again and plan to on quarter addressing anything you have that

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