To the Shareholders of The Howard Hughes Corporation from the Chief
Executive Officer:
As I reflect on the past two years, I am proud of our team and their
numerous accomplishments, grateful for the dedication and tireless
efforts that have made these achievements possible, and sharply focused
on continuing our outstanding performance. 2013 is pivotal for The
Howard Hughes Corporation as we transition from planning to building and
continue to unlock the value of our portfolio.
Our financial results for 2012 reflect the exemplary efforts of our
management team and employees. Revenues totaled $377 million, operating
income and income from non-consolidated affiliates totaled $76 million
compared to $36 million in 2011. These strong operating results
permitted us to invest $155 million in pre-development, construction,
and to retire the majority of the outstanding Sponsor warrants, while
ending the year with a cash balance $2 million higher than at the end of
2011. We have a strong balance sheet with only 19.9% net debt against
the book value of our assets. We generated $153 million of operating
cash flow in 2012 up from $87 million in 2011. We have used this cash to
invest in the assets and opportunities that we believe have the most
potential for creating extraordinary value.
Our long-term goal is to increase the value of the company on a
per-share basis. We do this by improving our assets through the
development process and by opportunistically deploying excess cash. In
the fourth quarter, we purchased approximately 6.1 million of the 8
million Sponsor warrants issued as part of our emergence as a public
company. These warrants had a strike price of $50.00 per share and a
November 2017 expiration date. They were the most expensive and dilutive
security in our capital structure. Before their retirement, the warrants
represented an economic drag on our per-share progress as every dollar
of appreciation of our stock price above $50.00 would require us to
generate $1.16 of value. The repurchase of these warrants in exchange
for $81 million of cash and 1.5 million shares is a break-even
proposition for the company if our stock price equals $81.10 in 2017, a
price which we expect will be well below the potential value of our
stock at that time. As a result of retiring the warrants, our
shareholders now own 10.1% more of the company.
Our board of directors continues to be an integral part of the
governance, development and operating activities of our business. Their
commitment to the company, our employees, our mission and development
plans is unwavering. The board consistently provides strong leadership
and direction and is a guiding force in maximizing value for our
shareholders. I am thankful for the board’s strong commitment and their
wise stewardship of the company.
The majority of our value creation potential resides in a handful of
core assets: South Street Seaport, in Lower Manhattan, the master
planned communities in Columbia, Maryland, The Woodlands and Bridgeland
in Houston, Texas, and Summerlin in Las Vegas, Nevada, The Shops at
Summerlin, and Ward Village, an urban master planned community in
Honolulu, Hawaii. We are focusing our resources on these core assets
while repositioning the remaining assets of the portfolio in order to
maximize their value for potential disposition or other forms of
monetization.
In 2013, The Howard Hughes Corporation enters a new phase in its
evolution as we move from an intense focus on planning and design to
concentrating on vertical construction. We expect to commence
construction this year on all core development assets within the
portfolio. In Hawaii, we are already under construction on a 57,000
square foot retail project at Ward Centers and will commence
construction this summer on the ONE Ala Moana condominium tower. We have
multiple commercial developments underway at The Woodlands and expect to
break ground on our new downtown in Summerlin. Other initiatives in 2013
include the redevelopment of Pier 17 at the South Street Seaport in New
York City, the transformation of the Riverwalk Marketplace in New
Orleans into the first urban outlet center in the Unites States, the
construction of 380 new Class-A apartment units and the renovation of
the Columbia Headquarters Building in Columbia, Maryland.
Strengthening the Bench
During 2012, we continued to build our team. In April, we hired Paul
Layne as Executive Vice President Master Planned Communities. Paul
joined us from Brookfield Properties Corporation where he was the
Executive Vice President responsible for the financial performance of a
ten million square foot portfolio in the Houston Central Business
District and five million square feet in Southern California. Paul’s
leadership and business relationships in the Houston area have been
invaluable in not only attracting commercial tenants to The Woodlands,
but also in integrating The Woodland’s leading master planned community
development platform into the company. I have known Paul for over 15
years and have seen him successfully manage large and diverse portfolios
around the country. It has been 11 short months, but the results of his
efforts can already be seen in Bridgeland, The Woodlands and Summerlin.
Recently, we hired Steve Robinson, Senior Vice President Construction,
to run our construction division. Steve worked on developments that my
former company completed in Houston in the late 90’s in addition to the
construction of other complex large-scale projects. He is dedicated,
detailed and meticulous in his approach to project development. In 2013,
we expect to begin construction on a number of our key developments.
Steve’s knowledge and expertise will be critical in ensuring these
developments are constructed to the highest standards at or below their
budgeted costs.
In true Howard Hughes spirit, our team continues to show no limits to
their tenacity and commitment to the cause. Christopher Curry, Senior
Executive Vice President Development, has agreed to relocate to New York
as we begin the construction phase of the South Street Seaport and set
our sights on expanding our platform in the city. In addition, Nick
Vanderboom, who was recently promoted to Senior Vice President, has
moved his family to Honolulu, Hawaii as Ward Village’s development gears
up.
Master Planned Communities
Our master planned communities (“MPC’s”), continue to be ranked as the
leading MPC’s in the U.S. According to a Robert Charles Lesser & Co. LLC
study, The Woodlands was ranked third with 1,007 home sales, Summerlin
12thwith 471 home sales, and Bridgeland 15th with 423 home
sales.
The Woodlands
The Woodlands, led by co-presidents Alex Sutton and Tim Welbes, remains
the top performer in our MPC business. Ranked first in Houston and third
nationally in 2012, The Woodlands is consistently recognized in the
United States as a leading MPC. At the end of 2012, The Woodlands had
2,750 residential lots remaining. With the expected addition of over
10,000 new direct jobs to the area at ExxonMobil’s 385-acre campus
located just south of The Woodlands, the market is recognizing the
scarcity and value of these remaining lots. We are hearing the comment,
“buy in The Woodlands while lots are still available,” with increasing
frequency and are adjusting pricing accordingly.
In my 2011 letter to shareholders, I described the value proposition of
The Woodlands investment. Based on the most recent transactions, I
believe that the estimated proceeds from residential land sales in that
letter were understated. During the second half of 2012, we conducted an
auction of 375 lots comprising seven different lot sizes and invited
nine additional home builders who were not already building homes in The
Woodlands to participate. This auction was extremely successful,
resulting in an overall 49% price increase over the previous sale prices
for comparable lots. Applying the realized increase in pricing across
3,125 lots (2,750 at the end of 2012 plus the 375 in the auction)
results in $196 million of incremental proceeds above our previous
forecasts. This assumes we are only able to obtain the same premium for
all of our remaining lots. I believe residential land prices at The
Woodlands have room to increase substantially given the demand for lots,
their scarcity, and the growing commercial base within the Town Center.
Demand for commercial space in The Woodlands is also growing
significantly. This is driven in part by businesses relocating to The
Woodlands in order to better serve the new ExxonMobil campus and by
companies who want to be in a community where their employees can “live,
work, play and learn.”
In May 2012, we purchased our partner’s interest in Millennium Phase I,
a 393 unit Class-A multi-family development in the Town Center. We
financed this acquisition with a $56 million non-recourse loan at a
3.75% interest rate. The proceeds from this transaction were used to
repay the interim construction loan, purchase our partner’s interest,
and make a $4.1 million distribution to Howard Hughes. Today, Millennium
I generates $4.8 million in net operating income. At current market cap
rates we estimate that this asset is worth about $30 million more than
we paid for it less than one year ago. Contemporaneous with this
transaction, we entered into a joint venture with The Dinerstein
Companies, our partner on Phase I, to begin the next phase of the
development and construct 314 new Class A units. We contributed our land
at $75 per square foot, nearly 50% more in per square foot of land value
than that of the first phase. Land in the Woodlands is a scarce asset
and we are working hard to make sure that we receive fair value as we
sell off our remaining parcels.
Recently, we announced the redevelopment of The Woodlands Resort &
Conference Center. We are financing this project with a three-year $95
million construction loan at LIBOR plus 350 basis points. This loan
repays the existing $36 million facility set to mature this year and
provides capital for our redevelopment. The resort generated $10.7
million in net operating income for 2012, $6.3 million more than in
2010. The redevelopment will encompass the renovation of 222 existing
guest rooms; the replacement of the 206 room Lodge with a new wing
consisting of 184 guest rooms and suites, a new, expanded arrival area
with a porte‐cochere and lobby featuring native Texas stone, massive,
three-story windows; a new 3,036 square-foot “Living Room” connecting
the three guest room wings, ideal for informal gatherings; a new
1,000-foot long Lazy River winding through a tree-lined outdoor area;
renovation of the entire meeting and event facilities, including the
ballroom, boardrooms and breakout space; an updated 13,000 square-foot
spa and fitness facility; and a new 120‐seat prime steak house
restaurant and lounge adjacent to the 18th hole. This redevelopment will
solidify the property’s position as the premier resort and conference
center in Texas and meet burgeoning demand from corporate clients.
In July, we announced a 66-acre mixed use development called Hughes
Landing at Lake Woodlands. The development is envisioned to ultimately
contain 1.6 million square feet of office, 250,000 square feet of
retail, restaurant and entertainment space, up to 1,500 multi-family
units, of which 400 units will be in phase one, and a 175-room hotel.
The decision to have this development carry the signature of Howard
Hughes illustrates our expectation that this will be a legacy
development for the company. One year ago, this development was not even
on the horizon. This past fall we began construction of One Hughes
Landing, a 195,227 square foot Class A office building. It is expected
to be completed by the end of the third quarter of 2013. To date, we
have pre-leased 28% of the building with an additional 7% out for
signature. The total project cost will be approximately $52.8 million
and the projected stabilized net operating income is anticipated to be
$5.2 million. At a 7.0% cap rate, the value of this building is
approximately $74.3 million, implying $21.5 million of additional value
creation.
While the timing of the Hughes Landing development depends on many
factors, using current market conditions, we estimate a five-year build
out for this site. The One Hughes Landing office building gives an
indication of the value we believe can be created once this project is
fully developed. As of this writing, we have planned another five
million square feet of office, 500 multi-family units and one hotel for
our 65-acre Town Center. We continue to explore ways to increase total
densities. If the current robust market conditions continue, driven by
the 2015 opening of ExxonMobil’s campus, we believe that there will be
demand for several million square feet of additional office space in The
Woodlands Town Center over the next five years.
The Woodlands is in high performance mode, and it is incumbent on us to
deliver as much value as possible from this asset during this period of
its life cycle. In summary, on a “same store” basis, commercial net
operating income (including golf membership deposits) has grown from
$12.7 million in 2011 to $26.4 million in 2012, a 108% increase.
More information on The Woodlands can be found at www.thewoodlands.com.
Bridgeland
Fueled by the sustained growth of the energy sector, the Houston-area
housing market was once again among the leaders in the United States.
Bridgeland had another record year and ranked fourth in Houston and 15thnationally in residential land sales in 2012. Land sales increased
30.9% to $21.9 million, and lot sales increased to a record number of
389 in 2012. We expect lot sales to continue to accelerate in 2013 and
beyond as competitors run out of inventory and the Grand Parkway, which
bisects the future town center, stays on track for a late 2014
completion. In anticipation of accelerated infrastructure investment
needs to meet this growing demand, we obtained a non-recourse revolving
credit facility with a total capacity of $140 million. This credit
facility is an efficient funding source which will minimize the need for
equity capital to fund development. Bridgeland now also benefits from
The Woodlands management team in planning for commercial development in
the town center. The extensive experience and track record of this team
in planning, designing and developing The Woodlands Town Center gives me
great confidence that Bridgeland’s future town center will rival that of
The Woodlands. To see all that Bridgeland has to offer visit our website
at www.bridgeland.com.
Columbia
In Columbia, Maryland, John DeWolf, Senior Vice President Development,
and his team achieved several important objectives during 2012 that will
enable us to advance our redevelopment of Downtown Columbia. At full
build-out, the area will include up to 13 million square feet of
mixed-use development. Our joint venture with Kettler-Orchard to develop
a 380-unit apartment complex received all necessary approvals during
2012, and we began construction in February of 2013. This joint venture
valued our contributed land at approximately $4.8 million per acre. We
contributed our land to this project at a value of $53,500 per unit or
$20.3 million. Our partner is responsible for all additional equity,
cost overruns, and construction guarantees related to this project,
which is a 50/50 joint venture with no promote to our partner.
In July, we secured Whole Foods as an anchor tenant for our
to-be-redeveloped Columbia Headquarters Building, the former Rouse
Company headquarters that was originally designed by renowned architect
Frank Gehry. In November 2012, we secured The Columbia Association as
another anchor tenant, which will house a state-of-the-art fitness
facility on the ground level of this building. The renovation of this
important building, which we expect will begin during the second quarter
of 2013, will energize the redevelopment of the downtown by providing
important amenities to the community. It is worth noting that this
building currently loses $0.8 million per year, but when stabilized, it
should generate approximately $2.2 million in net operating income. We
are in the process of obtaining construction financing for this project.
The adaptive reuse of this building is important for several reasons.
First, it signals to the local community that we respect and honor its
history. Second, it validates our development team’s capability to
execute on innovative and transformative developments. Finally, the
repurposing of this building will act as a catalyst to the further
development of Downtown Columbia.
In August, we successfully acquired 70 Corporate Center, a 169,000
square foot office building that was 26% occupied. We simultaneously
executed a lease to relocate Enterprise Business Partners to this
building which will bring occupancy to 71% by March of this year. The
acquisition was financed with 100% of the cost provided by the previous
lender on the site. We expect to invest $7 million of equity into this
development for renovations and re-tenanting. At stabilization, we
expect our investment will deliver an estimated 28% cash-on-cash return.
70 Corporate Center is at the gateway to The Crescent area, a 40-acre
parcel that will contain the majority of our future development in
Columbia.
Visit this development at www.columbiamd.com
Summerlin
In 2012, we sold 158 finished lots, three superpads (232 lots) totaling
55 acres, and 10 custom lots. 2012 was a transition year to move to
superpad sales given our depleting finished lot inventory. 2013 land
sales should be dominated by superpad sales, except for the remaining
finished lot inventory currently on hand.
As of December 31, 2012, Summerlin had 13 active subdivisions of which
only six neighborhoods had more than ten units remaining to be sold and
not more than 50 units in the other subdivisions. Several new
neighborhoods will open this year introducing 508 additional lots to the
market. There is little resale inventory available in Summerlin, which
should bode well for an increase in land sales revenue as we move
through 2013.
The Las Vegas Valley housing market went through a major transition in
2012. New home sales in 2012 saw an increase of approximately 42% over
2011 sales. According to a recent article in the Las Vegas Review
Journal, there were 44,902 resale homes sold in 2012, the third best
year on record. At the end of 2012, the number of single-family homes
available for sale on the Multiple Listing Service had declined 24.1%
from the prior year, representing only a five-week supply.
Summerlin’s net new home sales for 2012 were 471, an increase of 120%
over 2011. 2013 has started on a positive note as our builders have sold
45 units versus 26 units for the same period in 2012. Led by Kevin
Orrock, President of Summerlin, the team continued to deliver solid
results with $32 million of land sales in 2012. Having kept the supply
of land in builders’ hands low during the housing recession, the
Summerlin team is poised to reap the benefits of what now appears to be
a solidly recovering market.
Similar to how we leverage The Woodlands development platform to benefit
Bridgeland, we are also drawing on lessons from The Woodlands to
implement our development strategy at Summerlin. The early development
of a regional shopping mall in the Woodlands was critical to
establishing the long-term success of The Woodlands Town Center. The
mall increased demand for residential lots and helped spur additional
commercial development in the Town Center. Similarly, we expect that
completion of The Shops at Summerlin will result in substantial benefits
to the greater Summerlin MPC and we have therefore made development of
this project a top priority.
For more information you can learn more about Summerlin on the web at www.summerlin.com.
Strategic Developments
During 2012, we substantially completed the design for Downtown
Summerlin. The development will include city street grids and an outdoor
shopping and entertainment district with an authentic Las Vegas
sophistication and glamour. The design incorporates much of the $150
million of infrastructure improvements that our predecessor invested in
the property. Building on the positive residential momentum in Las
Vegas, the development of The Shops at Summerlin made substantial
progress in 2012. This 106-acre project sits within a 400-acre site
located in Downtown Summerlin. Upon completion of phase one, The Shops
at Summerlin will include approximately 1.5 million square feet of
commercial development, integrating retail, entertainment and office
uses in a unique and compelling environment that does not exist in Las
Vegas. We secured anchor commitments from Dillard’s and Macy’s for
approximately 380,000 square feet of space. Angelia Powell, Vice
President Leasing, is in the process of obtaining lease commitments from
retailers for the small shop space. Her passion and energy is
contagious, and the line-up we expect to announce rivals the best
regional centers in the country. Mike Zoob, Director of Leasing, joined
us in March. He is responsible for filling up the Power Center and has
hit the ground running by delivering commitments from many of the major
big box retailers.
This project represents a strategically important development
opportunity for the company and a catalyst for increases in residential
land sale pricing and velocity. We estimate, based on current market
conditions, that the opening of The Shops at Summerlin will lead to an
increase of $100 million of additional revenue from residential land
sales. In the coming years, thousands of residents in apartments and
condominiums will live in the heart of Downtown Summerlin. In addition,
office buildings will be constructed to meet the demands of companies
wanting to enjoy this world class community where their employees can
“live, work, play and learn”.
In Honolulu, we are preparing to break ground this summer on ONE Ala
Moana (www.onealamoana.com),
a 206-unit luxury condo tower that is being developed in partnership
with Honolulu-based developers Kobayashi Group and The MacNaughton
Group. These talented and highly respected local developers led the
acceleration of this development which sold out in two days during the
month of December. Units at ONE Ala Moana sold for an average price of
$1.6 million, or approximately $1,170 per square foot. At an assumed
cost of approximately $900 per square foot, including the value of our
air rights, the project is anticipated to generate approximately $66
million in total profit. At the closing of the construction loan, The
Howard Hughes Corporation will receive $47.5 million of proceeds for its
air rights. In addition, at project completion, we expect that the
company will have received approximately $73 million of total proceeds.
This asset has a book value of $22.8 million.
The strong response at ONE Ala Moana is good news for Ward Village, one
of the company’s key value creation opportunities. In its current state,
Ward Village generates approximately $23 million of annual net operating
income. However, Ward has an approved master plan that allows for up to
9.3 million total square feet of mixed-use development, including more
than 4,000 residential units and approximately 1.5 million square feet
of retail and other commercial space. Ward Village has development
rights for 22 high-rise towers in an urban master planned community
setting. Over the next decade, Ward Centers will transform into Ward
Village, a vibrant neighborhood complete with unique retail
experiences and exceptional residences set among dynamic public open
spaces and pedestrian-friendly streets. In October 2012, we announced
plans to move forward with the first phase of Ward Village, which will
consist of approximately 500 market rate condominium units and at least
125 workforce housing units. We also commenced the redevelopment of the
historic IBM Building into a contemporary information and sales center,
which will showcase the unparalleled neighborhood we are creating at
Ward Village.
While we have not yet determined pricing for our first phase towers,
market data suggest that comparable existing “front row” product with
unobstructed ocean views re-sold in 2012 at an average price of
approximately $1,400 per square foot. Hokua, which is a condominium
tower adjacent to Ward, resells at the highest average price per foot of
any condominium tower in Honolulu, approximately $1,400 per square foot.
Hawaii’s residential market is challenged by supply. Economic forecasts
indicate approximately 20,000 housing units must be delivered to meet
demand by 2020. This has led economists to project home prices will
increase as much as 40% in the next few years. The market will be
extremely challenged to deliver this supply given the hurdles that must
be overcome to achieve development entitlements, which gives Ward
Village new product a significant competitive advantage.
In the same way that buyers pay substantial premiums to live in
Summerlin or The Woodlands, by delivering a comprehensive master planned
community environment that no other competitor can deliver, we expect
Ward Village to capture similar premiums and generate substantial value
over the life of the project not only for our shareholders, but also for
the new residents. I encourage each of you to follow our progress by
visiting our website www.avisionforward.com.
Operating Assets
Chris Curry leads our redevelopment of the South Street Seaport in Lower
Manhattan. In June 2012, we entered into an agreement with the New York
City Economic Development Corporation to amend the South Street Seaport
ground lease. This agreement will enable us to proceed with the
redevelopment of Pier 17. Designed by the renowned architectural firm
SHOP, led by principal Greg Pasquarelli, we unveiled a new design for
the new Pier 17 building, a contemporary structure with an open rooftop
and glass façade encompassing retail, restaurant and entertainment
space. The design balances the Pier’s iconic waterfront location with
its unique ability to provide a much needed community anchor for the
rapidly growing residential population in Lower Manhattan. The ultimate
objective is to create an unmatched New York experience that is
compelling to residents, local workers and tourists. The New York City
Planning Commission along with The Landmarks Preservation Commission
with support from Community Board 1 approved our design. We expect all
necessary approvals will be obtained this year.
The South Street Seaport (www.southstreetseaport.com),
like many other businesses and residents of downtown Manhattan, was
impacted by Superstorm Sandy. The storm caused ongoing hardships for
everyone who lives and works in Lower Manhattan, particularly small
business owners who might not have had the resources to withstand such
an event. Today, more than ever, we believe in the potential of the
South Street Seaport to become a dynamic destination for residents and
visitors. In November 2012, The Howard Hughes Corporation, along with
several other property owners in the area, worked with the Downtown
Alliance to provide financial assistance in the form of grants to small
businesses affected by Sandy. In addition, we supported New York City
Council Speaker Christine Quinn and The United Federation of Teachers
who provided 30,000 displaced New York City students with backpacks,
school supplies and books. We are committed to beginning the Pier 17
redevelopment this year and look forward to transforming the South
Street Seaport into a unique and vibrant urban destination.
The Riverwalk Marketplace (www.riverwalkmarketplace.com)
demonstrates the creativity of our development team and highlights their
ability to deal with complicated redevelopments. The property is well
located in the central business district of New Orleans, is adjacent to
the New Orleans Ernest N. Morial Convention Center, Harrah’s Casino, The
Audubon Aquarium, and is connected to two passenger cruise terminals
that support over one million passengers per year. Michelle Waak, one of
our talented Vice Presidents in our Leasing group, analyzed these
challenges and, in collaboration with Mark Bulmash, Senior Vice
President Development, developed a plan to create the first upscale
urban outlet center in the United States. We announced the project in
July 2012, and are in the process of converting retailer commitments
into leases. Concurrently, we are working with multiple constituencies
to solve the access, parking and ground lease issues associated with the
redevelopment. We expect to launch construction in early 2013.
The health of the United States economy is critical to our success
especially in the master-planned community business. As the housing
market continues to recover, we should see exponential growth in our
revenue. As the accelerator of cash flow, this revenue is an important
source of funding for our strategic developments. The redevelopment of
Pier 17, the construction of The Shops at Summerlin, and the
construction of our first two towers at Ward Village will require
significant amounts of capital. Although we plan on sourcing this
capital primarily from third-party joint venture partners, as we have
successfully done with all of our other developments, over time our land
sales revenue should provide a significant amount of the total capital
required.
New Opportunities
Occasionally, I have been asked whether or not the company intends to
acquire other companies and/or assets outside of the existing portfolio.
Because we have so many opportunities to invest capital at high rates of
return in the existing portfolio, the standard for new acquisitions is
extraordinarily high. The opportunity set within our existing portfolio
is exceptionally attractive. Our investment in One Hughes Landing is a
good example. By contributing our land to the development, we were able
to raise non-recourse construction financing of $38 million, limiting
our cash equity investment to $9 million. Using market values for our
land contribution, we are projecting a 10.3% return on cost at
completion, more than 300 basis points above market cap rates. Because
of the limited equity required and the high projected returns, we
anticipate that we will enjoy a five times multiple on total equity
(including our land contribution), a seven times multiple on cash
invested, and a 35% internal rate of return over a ten-year hold period.
We will continue to exploit opportunities within the existing portfolio
and only pursue new opportunities if the returns are exceptional
relative to the risk incurred.
The Evolution of Howard Hughes
Howard Hughes first gained wide recognition as a filmmaker. Much like
our namesake, we have written the script, scouted locations, cast the
talent, and in 2013, we are ready to begin shooting the movie.
We benefit by owning a geographically diverse portfolio of irreplaceable
assets, and each is located in a strong market or is in a market that is
experiencing a strong recovery. Our cast is second to none. Each of our
important assets is overseen by talented senior leadership, who are
supported by a dedicated and growing team of experts. I am pleased that
we have continued to recruit an extremely talented team who are
attracted to the culture, opportunity, challenges and mission of The
Howard Hughes Corporation.
I am grateful for the confidence you have shown in us as we continue our
mission to create timeless places and memorable experiences that inspire
people while driving sustainable, long-term growth and value for our
shareholders.
Sincerely,
|
|
|
David R. Weinreb
|
Chief Executive Officer
|
Safe Harbor Statement
Statements made in this release that are not historical facts, including
statements accompanied by words such as “will,” “believe,” “may,”
“expect,” “enable,” “realize,” “plan,” “intend,” “transform” and other
words of similar expression, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements in this release related to the company’s future operating
performance, the creation of long-term value for our stockholders and
progress on some of the company’s larger developments are
forward-looking statements. These statements are based on management’s
expectations, estimates, assumptions and projections as of the date of
this release and are not guarantees of future performance. Actual
results may differ materially from those expressed or implied in these
statements. Factors that could cause actual results to differ materially
are set forth as risk factors in The Howard Hughes Corporation’s filings
with the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the year ended December 31, 2012. The Howard Hughes
Corporation cautions you not to place undue reliance on the
forward-looking statements contained in this release. The Howard Hughes
Corporation does not undertake any obligation to publicly update or
revise any forward-looking statements to reflect future events,
information or circumstances that arise after the date of this release.