DALLAS-During Q1 2013, Howard Hughes Corp. reported a jump of 26.3% its master-planned community land sales over those generated during Q1 2012. Breaking it down to dollar figures, the company sold $44.7 million during the first three months of 2013, versus $35.4 million during Q1 2012.
The Summerlin Master Planned Community in Las Vegas led the charge when it came to homebuilder demand for residential land. Land sales there increased 297.2% to $28.2 million for Q1 2013 compared to the $7.1 million during Q1 2012 – and the $31 million recorded through all of 2012.
“I am particularly pleased that the Las Vegas housing market is showing such strong improvement. The $28 million of residential land sales at our Summerlin master planned community for the first three months of 2013 almost beat the $31 million of residential land sales we completed at Summerlin in all of last year," says David R. Weinreb, Hughes Corp. CEO in a press release. "The strong recovery in this market coincides nicely with our planned construction of the downtown Summerlin development later this year."
On the other side of the coin, however, land sales revenue at The Woodlands decreased by $8.1 million to $12.9 million in the first quarter 2013 compared to the first quarter 2012. The decrease is primarily due to the lot auction conducted in August 2012, which accelerated lot closings into the fourth quarter 2012 from the first quarter 2013.
In other earnings news:
- First quarter 2013 net income increased 22.9% to $11.8 million, excluding the $(33) million non-cash warrant loss and $(1.9) million non-cash loss relating to a reduction in the tax indemnity receivable. This was compared to the first quarter 2012 net income of $9.6 million, excluding the $(121.9) million non-cash warrant loss.
- Net operating income for income-producing operating assets decreased 2% to $14.6 million for the first quarter 2013, compared to $14.9 million in the first quarter 2012. First quarter 2013 results include $(2.1) million negative impact from Superstorm Sandy on South Street Seaport's NOI and a $(0.6) million negative impact from vacating Riverwalk Marketplace for redevelopment. It's anticipated that most lost income caused by the storm will be covered by insurance.
- The company received unanimous approval from the New York City Council regarding Uniform Land Use Review Procedure (ULURP) for the redevelopment of South Street Seaport. Construction on Pier 17 is expected to begin in October 2013.
- 3 Waterway, a 232,000-square-foot class A office building to be completed in the second quarter of 2013 is 94% pre-leased, and One Hughes Landing, a 195,000 square foot Class A office building to be completed in the third quarter of 2013 is 35% pre-leased. Both buildings are in The Woodlands, TX.
- Hughes Corp. closed $23-million, non-recourse financing for the renovation of the 89,000-square-foot Columbia Regional Building, anchored by Whole Foods Market Inc., located in Downtown Columbia, MD. The renovation began in April 2013.
- Hughes Corp. also closed a $95-million loan to finance redevelopment of The Woodlands Resort and Conference Center. The loan refinanced a $36.1 million mortgage and will provide the majority of the capital for the $75.4 million redevelopment.
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