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Page 0 2015 Homebuilder CFO and Tax Director Roundtables | 14-16 June 2015
2015 HomebuilderCFO Roundtables
Four Seasons | Las Vegas14-16 June 2015
Page 1 2015 Homebuilder CFO and Tax Director Roundtables | 14-16 June 2015
Disclaimer
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► This presentation is © 2015 Ernst & Young LLP. All rights reserved. No part of this document may bereproduced, transmitted or otherwise distributed in any form or by any means, electronic ormechanical, including by photocopying, facsimile transmission, recording, rekeying, or using anyinformation storage and retrieval system, without written permission from Ernst & Young LLP.Any reproduction, transmission or distribution of this form or any of the material herein is prohibitedand is in violation of U.S. and international law. Ernst & Young LLP expressly disclaims any liability inconnection with use of this presentation or its contents by any third party.
► Views expressed in this presentation are those of the speakers and do not necessarily represent theviews of Ernst & Young LLP.
► This presentation is provided solely for the purpose of enhancing knowledge on tax matters. It doesnot provide tax advice to any taxpayer because it does not take into account any specific taxpayer’sfacts and circumstances
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Page 2 2015 Homebuilder CFO and Tax Director Roundtables | 14-16 June 2015
Nothing to Fear: Repositioning Real Estateas an Opportunity for Homebuilders► Mike Straneva, Ernst & Young LLP [moderator]► Mark Bulmash, The Howard Hughes Corporation► John Goodman, Lewis Group of Companies► Lisa Hall, Forest City Stapelton, Inc.
Page 2 2015 Homebuilder CFO and Tax Director Roundtables | 14-16 June 2015
LANDMARK VA
Mark BulmashSenior Vice President, Development, The Howard Hughes Corporation
§ Oversees Central and Southeast for HHC, including Charlotte,Miami, New Orleans and Dallas
§ 27-year veteran of retail real estate in senior leadershippositions at the Taubman Company, Related Companies andForest City
§ Inaugural class member of ICSC's Certified Retail PropertyExecutives (CRX)
§ Key projects included: The Outlet Collection at Riverwalk; ThePromenade Bolingbrook; The Shops at Wiregrass; The Villageat Gulfstream Park; White Oaks Village; The Shops at WillowBend; and The Mall at Wellington Green
§ MBA from The Wharton School, The University ofPennsylvania; MCP, Physical Planning and EconomicDevelopment from The University of Pennsylvania; BSArchitecture from The University of Michigan
THE HOWARD HUGHES CORPORATION
ICONIC LOCATIONSOur Portfolio is Making a Mark on the Nation
Our mission is to be the preeminent developer and operator of master plannedcommunities and mixed-use properties. We create timeless places and memorable
experiences that inspire people while driving sustainable, long-term growth andvalue for our shareholders.
COMPANY SNAPSHOT
“IF THERE ISVALUE TOUNLOCK
ANYWHERE, INANY MARKET, WE
WILL FIND IT.”David R. Weinreb, CEO
16States
1100+Employees
32Assets
NYSE:HHC
HQDallas,
TX
Est.2010
STRENGTH IN NUMBERSUnlocking Value From Wall Street to Waikiki
$6.1 BNMarket Cap(APRIL‘15)
Over$2.5 BNUnderConstruction
$635 MMTotalConsolidatedRevenues
$560 MMUnrestrictedcash on hand$351MM
MPCLand Sales31%
Net Debt/NetBookCapitalizationRatio
45 MM SF in Development
DIVERSE DEVELOPMENT CAPABILITIESOne of the Most Product Diverse Portfolios of any Real Estate Company Today
RESIDENTIAL
OFFICE
MIXED-USE
RETAIL
HOSPITALITY
Page 9 2015 Homebuilder CFO and Tax Director Roundtables | 14-16 June 2015
LANDMARK VA
THE HOWARD HUGHES CORPORATION
TRADEAREADEMOGRAPHICS335,687Trade Area Population
4%Population Growth(Five year projection)
$115,298Avg. HH Income
(55% greater than U.S. avg.)
41%HH Income over $100,000
(nearly twice the U.S. avg.)
53%College Graduates
(87% greater than U.S. avg.)
25%Graduate or Professional
Degree(15 points above the U.S. avg.)
38%Single Person Households
(11 points above theU.S. avg.)
71%White Collar Workforce
(11 points above theU.S. avg.)
LANDMARK VA
$2.4b - Spending on goods and merchandise (16% increase over the next five years)$1.0b - Spending potential for food away from home (18% increase over the next five years)
THE HOWARD HUGHES CORPORATION
LANDMARK VA
THE HOWARD HUGHES CORPORATION
SEARS
MACY’S
S.VA
ND
OR
NS
T.
DUKE ST.
190,000
61,000
23,000
LANDMARK VA
STRONG LOCATIONOBSOLETE
USE / DESIGN
THE HOWARD HUGHES CORPORATION
LANDMARK VA
Envision a community unlike any other in the DC Metro area. The new Landmark will be a modernoasis, strategically positioned in highly desirable Alexandria, providing neighbors luxurious
amenities, unique dining and entertainment, eclectic retail and all the conveniences difficult to get toinside the Beltway. This mixed-use community will be the urban heart of the West End.
THE HOWARD HUGHES CORPORATION
LANDMARK VA
THE HOWARD HUGHES CORPORATION
MACY’S
A VIBRANTCOMMUNITYDESTINATION
750,000 SF mixed-usecommunity with anurban, contemporarydesign
4-6 full-servicerestaurants
6-8 fast-casual diningoptions
44,000 SF 10-screenluxury cinema
Community gatheringplace with one acre ofnew parks, plazas,outdoor seating andseasonal entertainment
386 upscale residences
SEARS
PARKING
CINEMA: Level 2
RETAIL: Level 1RESIDENTIAL: Levels 2-5
RETAIL: Level 1RESIDENTIAL: Levels 2-5
RETAIL & DINING: Level 1
RETAIL & DINING: Levels 1 & 2
RETAIL & DINING: Levels 1 & 2
FAST CASUAL DINING: Level 1RESIDENTIAL: Levels 2-5
RETAIL: Level 1RESIDENTIAL: Levels 2-5
LANDMARK VA
THE HOWARD HUGHES CORPORATION
LANDMARK VA
THE HOWARD HUGHES CORPORATION
LANDMARK VANorth and South Elevations
THE HOWARD HUGHES CORPORATION