Howard Hughes Holdings Announces Completion of Spinoff of Seaport Entertainment Group
Howard Hughes Holdings Inc. (NYSE: HHH) has completed the spinoff of its Seaport Entertainment division into a separate public company, Seaport Entertainment Group Inc. (NYSE American: SEG), effective July 31, 2024. Stockholders received one SEG share for every nine HHH shares held as of July 29, 2024. This strategic move transforms HHH into a pure-play real estate company with a national portfolio of large-scale mixed-use communities spanning 101,000 acres, including a 35,000-acre landbank.
HHH's portfolio includes prominent communities such as Summerlin® in Las Vegas, Ward Village® in Honolulu, and The Woodlands® in Greater Houston. CEO David O'Reilly emphasized the company's refined focus on building world-class master-planned communities with significant growth potential. The spinoff marks a new chapter for HHH, allowing it to concentrate on its core real estate operations and value creation opportunities.
Howard Hughes Holdings Inc. (NYSE: HHH) ha completato la scissione della sua divisione Seaport Entertainment in una società pubblica separata, Seaport Entertainment Group Inc. (NYSE American: SEG), con effetto dal 31 luglio 2024. Gli azionisti hanno ricevuto un'azione SEG per ogni nove azioni HHH detenute al 29 luglio 2024. Questa mossa strategica trasforma HHH in una società immobiliare specializzata con un portafoglio nazionale di comunità multifunzionali di grandi dimensioni che si estendono su 101.000 acri, inclusi 35.000 acri di terreni.
Il portafoglio di HHH include comunità di prestigio come Summerlin® a Las Vegas, Ward Village® a Honolulu e The Woodlands® nella Grande Houston. Il CEO David O'Reilly ha sottolineato il focus affinato dell'azienda nella costruzione di comunità master-planned di livello mondiale con un significativo potenziale di crescita. La scissione segna un nuovo capitolo per HHH, permettendole di concentrarsi sulle sue operazioni immobiliari core e le opportunità di creazione di valore.
Howard Hughes Holdings Inc. (NYSE: HHH) ha completado el desmembramiento de su división Seaport Entertainment en una empresa pública separada, Seaport Entertainment Group Inc. (NYSE American: SEG), que será efectiva el 31 de julio de 2024. Los accionistas recibieron una acción de SEG por cada nueve acciones de HHH que poseían al 29 de julio de 2024. Este movimiento estratégico transforma a HHH en una compañía inmobiliaria especializada con un portafolio nacional de comunidades de uso mixto a gran escala que abarcan 101,000 acres, incluyendo un banco de tierras de 35,000 acres.
El portafolio de HHH incluye comunidades destacadas como Summerlin® en Las Vegas, Ward Village® en Honolulu, y The Woodlands® en el Gran Houston. El CEO David O'Reilly enfatizó el enfoque refinado de la empresa en la construcción de comunidades planificadas de clase mundial con un potencial de crecimiento significativo. El desmembramiento marca un nuevo capítulo para HHH, permitiéndole concentrarse en sus operaciones inmobiliarias principales y en oportunidades de creación de valor.
하워드 휴즈 홀딩스 주식회사 (NYSE: HHH)는 자회사 분리를 완료했습니다. Seaport Entertainment 부문을 별도의 상장 회사인 Seaport Entertainment Group Inc. (NYSE American: SEG)로 전환하며, 이는 2024년 7월 31일부터 유효합니다. 주주들은 2024년 7월 29일 현재 보유하고 있는 HHH 주식 9주당 SEG 주식 1주를 받았습니다. 이 전략적 움직임은 HHH를 순수 부동산 회사로 변모시키며, 101,000 에이커에 걸쳐 있는 대규모 복합 개발 커뮤니티의 국가 포트폴리오를 갖추게 됩니다. 여기에는 35,000 에이커의 토지은행이 포함됩니다.
HHH의 포트폴리오에는 라스베가스의 Summerlin®, 호놀룰루의 Ward Village®, 그리고 그레이터 휴스턴의 The Woodlands®와 같은 저명한 커뮤니티가 포함됩니다. CEO 데이비드 오레일리는 회사가 상당한 성장 잠재력을 가진 세계적 수준의 마스터 플랜 커뮤니티를 구축하는 데 더욱 집중하고 있음을 강조했습니다. 이번 분리는 HHH에게 새로운 장을 열어, 핵심 부동산 운영과 가치 창출 기회에 집중할 수 있게 해 줍니다.
Howard Hughes Holdings Inc. (NYSE: HHH) a achevé la scission de sa division Seaport Entertainment en une société publique distincte, Seaport Entertainment Group Inc. (NYSE American: SEG), effective le 31 juillet 2024. Les actionnaires ont reçu une action SEG pour chaque neuf actions HHH détenues au 29 juillet 2024. Ce mouvement stratégique transforme HHH en une société immobilière spécialisée avec un portefeuille national de communautés à usage mixte de grande échelle couvrant 101 000 acres, y compris une réserve foncière de 35 000 acres.
Le portefeuille de HHH comprend des communautés de renom telles que Summerlin® à Las Vegas, Ward Village® à Honolulu et The Woodlands® dans la région de Houston. Le PDG David O'Reilly a souligné l'accent mis par l'entreprise sur la construction de communautés bien planifiées de classe mondiale avec un potentiel de croissance significatif. La scission marque un nouveau chapitre pour HHH, lui permettant de se concentrer sur ses opérations immobilières centrales et ses opportunités de création de valeur.
Howard Hughes Holdings Inc. (NYSE: HHH) hat die Abspaltung seiner Seaport Entertainment-Division in ein separates öffentliches Unternehmen, die Seaport Entertainment Group Inc. (NYSE American: SEG), zum 31. Juli 2024 abgeschlossen. Aktionäre erhielten eine SEG-Aktie für jeweils neun HHH-Aktien, die sie am 29. Juli 2024 hielten. Dieser strategische Schritt verwandelt HHH in ein reines Immobilienunternehmen mit einem nationalen Portfolio von großflächigen, gemischt genutzten Gemeinschaften über 101.000 Acres, einschließlich eines 35.000 Acres großen Grundstücks.
Das Portfolio von HHH umfasst prominente Gemeinschaften wie Summerlin® in Las Vegas, Ward Village® in Honolulu und The Woodlands® in Greater Houston. CEO David O'Reilly betonte den verfeinerten Fokus des Unternehmens auf den Bau weltklassiger Master-Plan-Gemeinschaften mit erheblichen Wachstumspotenzial. Die Abspaltung markiert ein neues Kapitel für HHH, das es dem Unternehmen ermöglicht, sich auf seine Kernimmobilienoperationen und Wertschöpfungsmöglichkeiten zu konzentrieren.
- Transformation into a pure-play real estate company with a focused business model
- Extensive portfolio of 101,000 acres, including 35,000 acres in landbank for future development
- Robust pipeline of future development opportunities for growth and value creation
- Continued strong performance across existing communities
- Potential loss of diversification with the spinoff of the entertainment division
- Possible short-term stock price volatility due to the spinoff transaction
Insights
The spinoff of Howard Hughes Holdings' (HHH) Seaport Entertainment division marks a significant strategic shift, transforming HHH into a pure-play real estate company. This move allows HHH to focus on its core competency of developing large-scale mixed-use communities, which could potentially lead to improved operational efficiency and shareholder value.
The company's portfolio now encompasses 101,000 acres, including a substantial 35,000-acre landbank. This extensive land holding represents a significant asset that could drive long-term growth and value creation. The company's ability to develop this land over time could provide a steady pipeline of projects and revenue streams.
From an investor's perspective, this spinoff simplifies HHH's business model, making it easier to value and potentially more attractive to real estate-focused investors. However, it's important to note that the company's performance will now be more closely tied to the real estate market cycles, which could increase volatility.
The 1:9 distribution ratio for the spinoff suggests that the Seaport Entertainment division was a relatively small part of HHH's overall business. This implies that the immediate financial impact on HHH might be , but the long-term strategic benefits could be substantial if management can effectively leverage their focused real estate portfolio.
The spinoff of Seaport Entertainment Group from Howard Hughes Holdings (HHH) reflects a broader trend in the market where conglomerates are streamlining their operations to focus on core competencies. This move aligns with investor preferences for pure-play companies that are easier to analyze and value.
HHH's portfolio of master-planned communities in prime locations such as Las Vegas, Honolulu and Houston positions the company well in the real estate market. These areas have shown strong population growth and economic development, which could translate into sustained demand for HHH's properties.
The mention of "record-breaking results" across HHH's communities suggests strong recent performance. However, investors should be cautious and look for concrete financial figures to support this claim in future earnings reports.
The spinoff may also impact HHH's market valuation. Typically, the sum of the parts of a conglomerate is worth more when separated, a phenomenon known as the "conglomerate discount". Investors might reassess HHH's value based on its now-focused real estate operations, potentially leading to a re-rating of the stock.
It's worth noting that while HHH retains its NYSE listing, Seaport Entertainment Group will trade on the NYSE American exchange, which is generally home to smaller companies. This suggests that Seaport Entertainment Group might be a smaller entity, reinforcing the notion that real estate was HHH's primary value driver.
THE WOODLANDS, Texas, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company” or “HHH”) today announced the completion of the spinoff of the Company's Seaport Entertainment division into a separate public company, Seaport Entertainment Group Inc., effective 11:59 p.m. Eastern Time on July 31, 2024.
Under the terms of the separation, after market close on July 31, 2024, each stockholder who held HHH common stock as of the close of business on July 29, 2024, the record date for the distribution, received one share of Seaport Entertainment Group common stock for every nine shares of common stock of HHH held at the close of business on such date. Cash will be paid to those holders who would otherwise be entitled to, and in lieu of, fractional shares.
Howard Hughes becomes a pure-play real estate company with a national portfolio of award-winning, large-scale mixed-used communities spanning 101,000 acres, including nearly 35,000 acres in the Company’s landbank and a robust pipeline of future development offering considerable growth and value creation opportunities. The Company continues to drive record-breaking results across its communities which include Summerlin® in Las Vegas; Ward Village® in Honolulu; Downtown Columbia® in Maryland; The Woodlands® and Bridgeland® in the Greater Houston region; and Teravalis™ in the Phoenix West Valley.
“Howard Hughes moves forward with a refined identity, squarely focused on what we do best—building world-class master planned communities, with an unmatched landbank and decades of opportunities for thoughtful growth and value creation ahead of us,” said David O'Reilly, Chief Executive Officer of Howard Hughes. “The completion of the spinoff of Seaport Entertainment marks the beginning of an exciting new chapter for Howard Hughes, and we wish the greatest success to the Seaport team.”
Seaport Entertainment Group common stock will begin “regular way” trading today on NYSE American under the ticker symbol “SEG.” Howard Hughes Holdings common stock will continue to trade on the NYSE under the ticker symbol “HHH.”
Wells Fargo served as financial advisor and Latham and Watkins LLP served as legal advisor to Howard Hughes. J.P. Morgan Securities LLC served as financial advisor and Richards, Layton & Finger, P.A. served as legal advisor to the special committee of the Company’s Board of Directors.
About Howard Hughes Holdings Inc.
Howard Hughes Holdings Inc. owns, manages, and develops commercial, residential, and mixed-use real estate throughout the U.S. Its award-winning assets include the country’s preeminent portfolio of master planned communities, as well as operating properties and development opportunities including Downtown Columbia® in Maryland; The Woodlands®, Bridgeland® and The Woodlands Hills® in the Greater Houston, Texas area; Summerlin® in Las Vegas; Ward Village® in Honolulu, Hawaiʻi; and Teravalis™ in the Greater Phoenix, Arizona area. The Howard Hughes portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative placemaking, the company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. Howard Hughes Holdings Inc. is traded on the New York Stock Exchange as HHH. For additional information visit www.howardhughes.com.
Safe Harbor Statement
Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize,” “plan,” “intend,” “assume,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in Howard Hughes Holdings Inc.’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. Howard Hughes Holdings Inc. cautions you not to place undue reliance on the forward-looking statements contained in this release. Howard Hughes Holdings Inc. does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
Contacts:
Howard Hughes Holdings Inc.
Media Relations
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com
Investor Relations
Eric Holcomb, 281-475-2144
Senior Vice President, Investor Relations
eric.holcomb@howardhughes.com
FAQ
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