Howard Hughes Corporation is a unique company in that it operates in a capital intensive and high risk land development industry while also controlling a mixed use portfolio of assets for lease such as multi-family homes, retail and office space.
Despite this, Howard Hughes has seen consistent and reasonably smooth land price appreciation over many years coupled with 96% occupancy in retail, 88% for office space and fully leased multi-family units that are completed thanks to their “MPC” model (master planned community) that gives them a monopoly on CRE and price controls on land.
Despite higher rates and a crushing CRE market, Howard Hughes has sailed through the recent turmoil in their industry creating a fantastic long term opportunity to acquire a company that is set to grow NAV for decades to come.
Contents:
What is an MPC?
Understanding Howard Hughes business model
Operating and non-operating resources
Ability to drive value creation over time
Valuation & Consideration
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