Hot Move to Watch: The Howard Hughes Corporation (NYSE: HHC)

On 04 Dec 2019, The Howard Hughes Corporation (NYSE: HHC) spotted trading -17.03% off 52-week high price. On the other end, the stock has been noted 25.53% away from the low price over the last 52-weeks. The stock changed -0.80% to recent value of $112.36. The stock transacted 1929164 shares during most recent day however it has an average volume of 307.14K shares.

The Howard Hughes Corporation® (HHC) reported recently operating results for the third quarter ended September 30, 2019.

Third Quarter 2019 Highlights

Net income attributable to ordinary stockholders increased to $29.8M, or $0.69 per diluted share, for the three months ended September 30, 2019, contrast to $23.4M, or $0.54 per diluted share, for the three months ended September 30, 2018.

Total NOI from the Operating Assets section, including our share of NOI from equity investments, grew strongly by 33% to $56.3M for the three months ended September 30, 2019, contrast to $42.2M for the previous year period.

MPC section earnings before tax (“EBT”) reduced by $28.3M to $60.6M for the three months ended September 30, 2019. Despite the overall decrease in MPC EBT, our Houston MPCs showed continued strength led by Bridgeland with a 62.4% increase in underlying home sales as well as an 8.7% increase in price per acre.

Broke ground on Kō’ula, our newest condominium tower that began public sales in January 2019, which is about 70.3% pre-sold as of the third quarter of 2019.

Increased Seaport District section revenues by $8.5M to $23.1M for the three months ended September 30, 2019 contrast to the previous year period partially driven by the openings of Bar Wayō, Malibu Farm and The Lookout on Pier 17.

Financial Results

Net income attributable to ordinary stockholders increased to $75.1M, or $1.73 per diluted share, and $29.8M, or $0.69 per diluted share, for the nine and three months ended September 30, 2019, respectively, contrast to $19.8M, or $0.46 per diluted share, and $23.4M, or $0.54 per diluted share, for the nine and three months ended September 30, 2018, respectively. The increase for the nine months ended September 30, 2019 is primarily Because of higher Condominium rights and unit sales, net of costs, driven by closings at Ae’o. In addition, the increases in both the nine and three months ended September 30, 2019 are attributable to a gain recognized on the sale of Cottonwood Mall and selling profit recognized as a result of a build-to-suit lease that commenced at our 100 Fellowship Drive property which for accounting purposes is recognized as a sales-type lease. The increases in both periods were partially offset by lower MPC superpad sales at Summerlin and higher operating expenses at the Seaport District. The higher operating expenses at the Seaport District are Because of start-up costs associated with opening new businesses.

 Its earnings per share (EPS) expected to touch remained -14.80% for this year while earning per share for the next 5-years is expected to reach at 20.00%. HHC has a gross margin of 34.00% and an operating margin of 13.80% while its profit margin remained 7.60% for the last 12 months. According to the most recent quarter its current ratio was # ref that represents company’s ability to meet its current financial obligations. The price moved ahead of 2.98% from the mean of 20 days, -3.38% from mean of 50 days SMA and performed -3.71% from mean of 200 days price. Company’s performance for the week was 1.71%, 1.14% for month and YTD performance remained 15.10%.

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