The Howard Hughes Corporation (NYSE:HHC), completed the trade at a price of $54.71 after seeing a change of 5.74% that brought its market cap to $3.14 billion. The outstanding share count is 57.35 million shares but the size of available float is 53.1 million shares. The stock’s current price is lagging SMA-200 by -49.22% which is also -13.52% down from SMA-50. Reducing that period to a shorter term, we see the price is trailing 3.82% to the SMA-20. Volatility for the week was 5.14%, which was 6.02% in the previous month.
DALLAS, March 30, 2020 /PRNewswire/ — The Howard Hughes Corporation® (NYSE: HHC) on March 30, 2020, came closing on two loans totaling over $490 million. A $356.8 million construction loan was secured at Ward Village® for its sixth residential mixed-use development, Kō’ula, reflecting continued strong demand to live in the acclaimed 60-acre master planned community transforming Oahu. In addition, a $137 million, 5-year term loan was secured for 9950 Woodloch Forest Drive, one of two premier Class AAA towers in The Woodlands® comprising the newly rebranded The Woodlands Towers at The Waterway. At Ward Village, The $356.8 million construction loan for Kō’ula, which has a three-year initial term with a one-year extension, carries an interest rate of London Interbank Offered Rate (LIBOR) + 3.0%. Total project costs of $485.1 million, exclusive of land, will be covered by the loan, existing buyer deposits and approximately $28.2 million of cash equity. The loan is led by US Bank with seven other participating lenders. “With nearly 75% of homes already pre-sold at Kō’ula, we continue to see strong momentum in the local market,” said Doug Johnstone, President, Hawai’i at The Howard Hughes Corporation. “Today, approximately 90% of our homes (over 2,421 residential units) are sold across the six towers at Ward Village that are either delivered or under construction, producing total contracted sales revenue of approximately $2.7 billion. These robust sales numbers reflect the enthusiastic response to the dynamic community taking shape in the heart of urban Honolulu.”
A 5–year term loan in The Woodlands, was secured for 9950 Woodloch Forest Drive carries an interest-only rate of London Interbank Offered Rate (LIBOR) +1.95% and will provide $63.5 million of initial funding, which will repay the property’s allocation of the bridge loan used for the acquisitions of The Woodlands Towers at The Waterway, and provide “good news” money for leasing for total funding up to $137 million. The company is currently documenting the terms for an extension of the remaining $281 million of the bridge loan, pursuant to which HHC would receive a six-month extension at LIBOR plus 235 basis points, and have the option for an additional six-month extension at LIBOR plus 290 basis points, extending the final maturity to June 2021. This loan follows the recent announcement that a 133,948-square-foot lease was signed with Western Midstream Partners, LP (NYSE: WES) for the top five floors of the building, which is now 35% leased. The Woodlands Towers at The Waterway is designed to meet the demands of the commercial office market for relocation and expansion, featuring a state-of-the-art, two-level fitness center complete with a basketball and volleyball court, approximately 33,000-square-foot rooftop terrace, building conference facilities, lobby café and a tenant concierge program along with additional amenities. Both Class AAA towers—the 595,000-square-foot, 31-story tower at 9950 Woodloch Forest Drive and the 808,000-square-foot, 30-story tower at 1201 Lake Robbins Drive—are LEED Silver certified, and offer frontage along Interstate 45 with convenient access to the Grand Parkway, Hardy Toll Road and the George Bush Intercontinental Airport.
The company closed the session with a trading volume of 493.00 thousand shares, below from its average daily trading volume of 495.08 thousand. It has been generating revenue of $1.3 billion while net income posted by the company in last 12 months was $74million. When looking at performance, we see the stock demonstrating a weekly performance of 5.21% while keeping a monthly performance of -4.44%. Quarterly performance saw a drop of -56.03% and continued the negative trend with a yearly performance of -49.2% while showing YTD performance of -56.85% which was -49.07% for last six months.
The 52-week range for the stock was 35.10 – 135.42 that put its current price at a premium of 55.87% to the 52-week low price whereas it is trading at a discount of -59.6% to the 52-week high price. The Real Estate – Diversified company is currently upholding a gross margin of 37.5% while maintaining a net profit margin of 5.7%. Operating margin for the last 12 months remained 11.9%.
The company’s EPS for trailing 12 months is $1.71 and it is estimated to be posting an EPS of -$0.17 for the current quarter. The Beta number showed the stock is subject to risk 65% more than the market as a whole. In the trailing twelve months, its return on assets (ROA) is 0.9% while ROE for the same period is 2.3% and have seen an average of 1.7% return on investment (ROI).