Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Howard Hughes Corp | ||
Entity Central Index Key | 1,498,828 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4.5 | ||
Entity Common Stock, Shares Outstanding | 42,990,898 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment in real estate: | ||
Master Planned Community assets | $ 1,642,660 | $ 1,642,278 |
Buildings and equipment | 2,932,963 | 2,238,617 |
Buildings and equipment | (380,892) | (321,882) |
Land | 297,596 | 277,932 |
Developments | 1,290,068 | 1,196,582 |
Net property and equipment | 5,782,395 | 5,033,527 |
Investment in Real Estate and Other Affiliates | 102,287 | 76,593 |
Net investment in real estate | 5,884,682 | 5,110,120 |
Cash and cash equivalents | 499,676 | 861,059 |
Restricted cash | 224,539 | 103,241 |
Accounts receivable, net | 12,589 | 13,041 |
Municipal Utility District receivables, net | 222,269 | 184,811 |
Notes receivable, net | 4,694 | 5,864 |
Deferred expenses, net | 95,714 | 80,901 |
Prepaid expenses and other assets, net | 411,636 | 370,027 |
Total assets | 7,355,799 | 6,729,064 |
Liabilities: | ||
Mortgages, notes and loans payable, net | 3,181,213 | 2,857,945 |
Deferred tax liabilities | 157,188 | 160,850 |
Accounts payable and accrued expenses | 779,272 | 521,718 |
Total liabilities | 4,117,673 | 3,540,513 |
Commitments and Contingencies (see Note 10) | ||
Equity: | ||
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock: $.01 par value; 150,000,000 shares authorized, 43,511,473 shares issued and 42,991,624 outstanding as of December 31, 2018 and 43,300,253 shares issued and 43,270,880 outstanding as of December 31, 2017 | 436 | 433 |
Additional paid-in capital | 3,322,433 | 3,302,502 |
Accumulated deficit | (120,341) | (109,508) |
Accumulated other comprehensive loss | (8,126) | (6,965) |
Treasury stock, at cost, 519,849 and 29,373 shares as of December 31, 2018 and 2017, respectively | (62,190) | (3,476) |
Total stockholders' equity | 3,132,212 | 3,182,986 |
Noncontrolling interests | 105,914 | 5,565 |
Total equity | 3,238,126 | 3,188,551 |
Total liabilities and equity | $ 7,355,799 | $ 6,729,064 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 43,511,473 | 43,300,253 |
Common stock, shares outstanding (in shares) | 42,991,624 | 43,270,880 |
Treasury stock, shares held (in shares) | 519,849 | 29,373 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Minimum rents | $ 207,315 | $ 183,025 | $ 173,268 |
Tenant recoveries | 49,993 | 45,814 | 44,330 |
Total revenues | 1,064,537 | 1,100,120 | 1,035,005 |
Expenses: | |||
Condominium rights and unit cost of sales | 262,562 | 338,361 | 319,325 |
Master Planned Community cost of sales | 124,214 | 121,116 | 95,727 |
Master Planned Community operations | 45,217 | 38,777 | 42,371 |
Other property operating costs | 133,761 | 91,729 | 65,978 |
Rental property real estate taxes | 32,183 | 29,185 | 26,847 |
Rental property maintenance costs | 15,813 | 13,432 | 12,392 |
Hospitality operating costs | 59,195 | 56,362 | 49,359 |
Provision for doubtful accounts | 6,078 | 2,710 | 5,664 |
Demolition costs | 17,329 | 1,923 | 2,212 |
Development-related marketing costs | 29,249 | 20,504 | 22,184 |
General and administrative | 104,625 | 89,882 | 86,588 |
Depreciation and amortization | 126,565 | 132,252 | 95,864 |
Total expenses | 956,791 | 936,233 | 824,511 |
Other: | |||
Provision for impairment | 0 | 0 | (35,734) |
Gains on sales of properties | 0 | 51,367 | 140,549 |
Other (loss) income, net | (936) | 3,248 | 11,453 |
Total other | (936) | 54,615 | 116,268 |
Operating income | 106,810 | 218,502 | 326,762 |
Interest income | 8,486 | 4,043 | 1,359 |
Interest expense | (82,028) | (64,568) | (65,724) |
Loss on redemption of senior notes due 2021 | 0 | (46,410) | 0 |
Warrant liability loss | 0 | (43,443) | (24,410) |
Gain on acquisition of joint venture partner's interest | 0 | 23,332 | 27,088 |
(Loss) gain on disposal of operating assets | (4) | 3,868 | (1,117) |
Equity in earnings from Real Estate and Other Affiliates | 39,954 | 25,498 | 56,818 |
Income before taxes | 73,218 | 120,822 | 320,776 |
Provision (benefit) for income taxes | (15,492) | 45,801 | (118,450) |
Net income | 57,726 | 166,623 | 202,326 |
Net (income) loss attributable to noncontrolling interests | (714) | 1,781 | (23) |
Net income attributable to common stockholders | $ 57,012 | $ 168,404 | $ 202,303 |
Basic income per share: (in dollars per share) | $ 1.32 | $ 4.07 | $ 5.12 |
Diluted income per share: (in dollars per share) | $ 1.32 | $ 3.91 | $ 4.73 |
Condominium rights and unit sales | |||
Revenues: | |||
Revenue | $ 357,720 | $ 464,251 | $ 485,634 |
Master Planned Community land sales | |||
Revenues: | |||
Revenue | 261,905 | 248,595 | 215,318 |
Hospitality revenues | |||
Revenues: | |||
Revenue | 82,037 | 76,020 | 62,252 |
Builder price participation | |||
Revenues: | |||
Revenue | 27,085 | 22,835 | 21,386 |
Other land revenues | |||
Revenues: | |||
Revenue | 21,314 | 28,166 | 16,232 |
Other rental and property revenues | |||
Revenues: | |||
Revenue | $ 57,168 | $ 31,414 | $ 16,585 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Comprehensive income, net of tax: | ||||
Net income | $ 57,726,000 | $ 166,623,000 | $ 202,326,000 | |
Other comprehensive income (loss): | ||||
Interest rate swaps | [1] | 955,000 | (9,000) | 2,196,000 |
Capitalized swap interest income (expense) | [2] | 30,000 | (170,000) | (203,000) |
Pension adjustment | [3] | 759,000 | 0 | (890,000) |
Adoption of ASU 2018-02 | [4] | (1,148,000) | 0 | 0 |
Adoption of ASU 2017-12 | [5] | (739,000) | 0 | 0 |
Terminated swap amortization | (1,018,000) | 0 | 0 | |
Other comprehensive (loss) income | (1,161,000) | (179,000) | 1,103,000 | |
Comprehensive income | 56,565,000 | 166,444,000 | 203,429,000 | |
Comprehensive (income) loss attributable to noncontrolling interests | (714,000) | 1,781,000 | (23,000) | |
Comprehensive income attributable to common stockholders | 55,851,000 | 168,225,000 | 203,406,000 | |
Interest rate swaps, deferred tax expense (benefit) | (300,000) | 300,000 | 1,300,000 | |
Capitalized swap interest income, deferred tax benefit | 100,000 | 100,000 | ||
Pension deferred tax (expense) benefit | $ (467,000) | $ 0 | $ 543,000 | |
[1] | Amounts are shown net of deferred tax benefit of $0.3 million for the years ended December 31, 2018 and 2017 and deferred tax expense of $1.3 million for the year ended December 31, 2016. | |||
[2] | The deferred tax impact was not meaningful for the year ended December 31, 2018. Amount is net of deferred tax benefit of $0.1 million for the years ended December 31, 2017 and 2016. | |||
[3] | Net of deferred tax expense of $0.5 million for the year ended December 31, 2018 and deferred tax benefit of zero and $0.5 million for the years ended December 31, 2017 and 2016, respectively. | |||
[4] | The Company adopted Accounting Standards Update ("ASU") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. | |||
[5] | The Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) | Treasury Stock | Total Stockholders' Equity | Noncontrolling Interests | ||
Balance at the beginning of the period (in shares) at Dec. 31, 2015 | 39,714,838 | |||||||||
Balance at the beginning of the period at Dec. 31, 2015 | $ 2,363,889 | $ 398 | $ 2,847,823 | $ (480,215) | $ (7,889) | $ 0 | $ 2,360,117 | $ 3,772 | ||
Balance at the beginning of the period (in shares) at Dec. 31, 2015 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 202,326 | 202,303 | 202,303 | 23 | ||||||
Preferred dividend payment on behalf of subsidiary | (23) | (23) | ||||||||
Interest rate swaps, net of tax | 2,196 | [1] | 2,196 | 2,196 | ||||||
Pension adjustment, net of tax | (890) | [2] | (890) | (890) | ||||||
Capitalized swap interest, net of tax | (203) | [3] | (203) | (203) | ||||||
Issuance of Management Warrants | 1,000 | 1,000 | 1,000 | |||||||
Acquisition of noncontrolling partner's interest | (5,000) | (5,000) | (5,000) | |||||||
Stock plan activity (in shares) | 87,226 | |||||||||
Stock plan activity | 9,446 | $ 0 | 9,446 | 9,446 | ||||||
Treasury stock activity (in shares) | (12,061) | |||||||||
Treasury stock activity | (1,231) | $ (1,231) | (1,231) | |||||||
Terminated swap amortization | 0 | |||||||||
Adoption of ASU 2017-12 | [4] | 0 | ||||||||
Adoption of ASU 2018-02 | [5] | 0 | ||||||||
Balance at the end of the period at Dec. 31, 2016 | 2,571,510 | $ 398 | 2,853,269 | (277,912) | (6,786) | $ (1,231) | 2,567,738 | 3,772 | ||
Balance at the end of the period (in shares) at Dec. 31, 2016 | (12,061) | |||||||||
Balance at the end of the period (in shares) at Dec. 31, 2016 | 39,802,064 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 166,623 | 168,404 | 168,404 | (1,781) | ||||||
Preferred dividend payment on behalf of subsidiary | (12) | (12) | ||||||||
Interest rate swaps, net of tax | (9) | [1] | (9) | (9) | ||||||
Pension adjustment, net of tax | [2] | 0 | ||||||||
Capitalized swap interest, net of tax | (170) | [3] | (170) | (170) | ||||||
Issuance of Management Warrants | 52,000 | 52,000 | 52,000 | |||||||
Stock plan activity (in shares) | 445,736 | 17,312 | ||||||||
Stock plan activity | 19,410 | $ 4 | 21,651 | $ (2,245) | 19,410 | |||||
Initial consolidation of HOAs | 3,586 | 3,586 | ||||||||
Exercise of warrants (in shares) | 3,052,453 | |||||||||
Exercise of warrants | 375,613 | $ 31 | 375,582 | 375,613 | ||||||
Terminated swap amortization | 0 | |||||||||
Adoption of ASU 2017-12 | [4] | 0 | ||||||||
Adoption of ASU 2018-02 | [5] | 0 | ||||||||
Balance at the end of the period at Dec. 31, 2017 | 3,188,551 | $ 433 | 3,302,502 | (109,508) | (6,965) | $ (3,476) | 3,182,986 | 5,565 | ||
Balance at the end of the period (in shares) at Dec. 31, 2017 | (29,373) | |||||||||
Balance at the end of the period (in shares) at Dec. 31, 2017 | 43,300,253 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Adoption of ASU 2018-02 | (1,100) | |||||||||
Balance at the beginning of the period (in shares) at Dec. 31, 2017 | 43,300,253 | |||||||||
Balance at the beginning of the period at Dec. 31, 2017 | 3,188,551 | $ 433 | 3,302,502 | (109,508) | (6,965) | $ (3,476) | 3,182,986 | 5,565 | ||
Balance at the beginning of the period (in shares) at Dec. 31, 2017 | (29,373) | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 57,726 | 57,012 | 57,012 | 714 | ||||||
Preferred dividend payment on behalf of subsidiary | (11) | (11) | ||||||||
Interest rate swaps, net of tax | 955 | [1] | 955 | 955 | ||||||
Pension adjustment, net of tax | 759 | [2] | 759 | 759 | ||||||
Capitalized swap interest, net of tax | 30 | [3] | 30 | 30 | ||||||
Stock plan activity (in shares) | 211,220 | |||||||||
Stock plan activity | 19,934 | $ 3 | 19,931 | 19,934 | ||||||
Terminated swap amortization | (1,018) | (1,018) | (1,018) | |||||||
Adoption of ASU 2017-12 | (739) | [4] | 739 | (739) | ||||||
Adoption of ASU 2018-02 | (1,148) | [5] | 1,148 | (1,148) | ||||||
Restricted stock activity (in shares) | (14,556) | |||||||||
Restricted stock activity | (1,447) | $ (1,447) | (1,447) | |||||||
Repurchase of common shares (in shares) | (475,920) | |||||||||
Repurchase of common shares | (57,267) | $ (57,267) | (57,267) | |||||||
Contributions to joint ventures | 99,646 | 99,646 | ||||||||
Balance at the end of the period at Dec. 31, 2018 | 3,238,126 | $ 436 | $ 3,322,433 | (120,341) | $ (8,126) | $ (62,190) | 3,132,212 | $ 105,914 | ||
Balance at the end of the period (in shares) at Dec. 31, 2018 | (519,849) | |||||||||
Balance at the end of the period (in shares) at Dec. 31, 2018 | 43,511,473 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Adoption of ASU 2014-09 | $ (69,732) | $ (69,732) | $ (69,732) | |||||||
[1] | Amounts are shown net of deferred tax benefit of $0.3 million for the years ended December 31, 2018 and 2017 and deferred tax expense of $1.3 million for the year ended December 31, 2016. | |||||||||
[2] | Net of deferred tax expense of $0.5 million for the year ended December 31, 2018 and deferred tax benefit of zero and $0.5 million for the years ended December 31, 2017 and 2016, respectively. | |||||||||
[3] | The deferred tax impact was not meaningful for the year ended December 31, 2018. Amount is net of deferred tax benefit of $0.1 million for the years ended December 31, 2017 and 2016. | |||||||||
[4] | The Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. | |||||||||
[5] | The Company adopted Accounting Standards Update ("ASU") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Interest rate swaps, tax | $ 342,000 | $ 323,000 | $ 1,345,000 |
Pension adjustment, tax | (467,000) | 0 | 543,000 |
Capitalized swap interest, tax (benefit) | $ 8,000 | $ 91,000 | $ 109,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||
Net income | $ 57,726 | $ 166,623 | $ 202,326 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 113,518 | 116,401 | 81,878 |
Amortization | 13,047 | 15,851 | 13,986 |
Amortization of deferred financing costs | 9,347 | 5,587 | 6,977 |
Amortization of intangibles other than in-place leases | 1,681 | (1,327) | (1,857) |
Straight-line rent amortization | (12,584) | (5,401) | (7,401) |
Deferred income taxes | 16,195 | (43,463) | 113,698 |
Restricted stock and stock option amortization | 12,128 | 7,385 | 6,707 |
Net gain on sales and acquisitions of properties | 0 | (78,568) | (166,520) |
Loss on redemption of senior notes due 2021 | 0 | 46,410 | 0 |
Warrant liability loss (gain) | 0 | 43,443 | 24,410 |
Equity in earnings from Real Estate and Other Affiliates, net of distributions | (24,809) | (9,325) | (19,329) |
Provision for doubtful accounts | 6,078 | 2,710 | 5,664 |
Master Planned Community land acquisitions | (3,565) | (4,391) | (94) |
Master Planned Community development expenditures | (195,504) | (193,087) | (149,592) |
Master Planned Community cost of sales | 113,282 | 107,218 | 88,065 |
Condominium development expenditures | (289,084) | (352,813) | (330,720) |
Condominium rights and unit cost of sales | 262,562 | 338,361 | 319,325 |
Provision for impairment | 0 | 0 | 35,734 |
Percentage of completion revenue recognition from sale of condominium rights | 0 | (464,251) | (485,634) |
Net changes: | |||
Accounts and notes receivable | 26,209 | 24,034 | 29,295 |
Prepaid expenses and other assets | (6,942) | (4,123) | (1,579) |
Condominium deposits received | 108,061 | 315,901 | 465,701 |
Deferred expenses | (17,697) | (15,156) | (8,911) |
Accounts payable and accrued expenses | 20,676 | 8,181 | (46,322) |
Condominium Receivables | 0 | 140,122 | 67,574 |
Other, net | 195 | (755) | (4,278) |
Cash provided by operating activities | 210,520 | 165,567 | 239,103 |
Cash Flows from Investing Activities: | |||
Property and equipment expenditures | (4,485) | (6,968) | (9,662) |
Operating Property Improvements | (47,750) | (14,389) | (20,247) |
Property Development and Redevelopment | (572,966) | (369,086) | (402,669) |
Reimbursement of development cost | 0 | 12,777 | 4,582 |
Acquisition of assets | (234,541) | (23,299) | (25,480) |
Proceeds from sales of properties | 0 | 88,384 | 410,917 |
Proceeds from insurance claims | 0 | 0 | 3,107 |
Reimbursements under Tax Increment Financings | 22,651 | 0 | 0 |
Notes issued to Real Estate and Other Affiliates and third party | (3,795) | (5,252) | (25,000) |
Proceeds from repayment of note to Real Estate and Other Affiliates | 0 | 0 | 25,000 |
Distributions from Real Estate and Other Affiliates | 1,732 | 0 | 16,550 |
Investments in Real Estate and Other Affiliates, net | (2,617) | (1,138) | (11,056) |
Maturity of long term investment | 0 | 3,367 | 0 |
Cash used in investing activities | (841,771) | (315,604) | (33,958) |
Cash Flows from Financing Activities: | |||
Proceeds from mortgages, notes and loans payable | 1,172,622 | 1,501,290 | 535,505 |
Principal payments on mortgages, notes and loans payable | (838,462) | (1,350,226) | (333,302) |
Purchase of treasury stock | (58,715) | 0 | 0 |
Premium paid to redeem 2021 Senior Notes | 0 | (39,966) | 0 |
Special Improvement District bond funds released from (held in) escrow | 8,051 | 35,678 | 11,236 |
Deferred financing costs and bond issuance costs, net | (15,833) | (14,188) | (5,531) |
Taxes paid on stock options exercised and restricted stock vested | (3,995) | (11,672) | (1,231) |
Issuance of Management Warrants | 0 | 52,000 | 1,000 |
Acquisition of 1% partnership interest in 110 North Wacker | 0 | 0 | (8,000) |
Gain on unwinding of swaps | 16,104 | 0 | 0 |
Stock options exercised | 11,748 | 22,708 | 180 |
Issuance of noncontrolling interests | 99,646 | 3,586 | 0 |
Preferred dividend payment on behalf of REIT subsidiary | 0 | (12) | 0 |
Cash provided by financing activities | 391,166 | 199,198 | 199,857 |
Net change in cash, cash equivalents and restricted cash | (240,085) | 49,161 | 405,002 |
Cash, cash equivalents and restricted cash at beginning of period | 964,300 | 915,139 | 510,137 |
Cash, cash equivalents and restricted cash at end of period | 724,215 | 964,300 | 915,139 |
Supplemental disclosure of cash flow information | |||
Interest paid | 149,693 | 129,022 | 123,687 |
Interest capitalized | 77,918 | 73,207 | 64,344 |
Income taxes paid (refunded), net | 70 | (19,381) | 11,191 |
Non-Cash Transactions: | |||
Special Improvement District bond transfers associated with land sales | 10,937 | 13,898 | 7,662 |
Accrued interest on construction loan borrowing | 7,584 | 1,559 | 4,386 |
Acquisition of below market lease intangible | 1,903 | 0 | 0 |
Exercise of Sponsor and Management Warrants | 0 | 375,581 | 0 |
Capitalized stock compensation | 2,434 | 1,121 | 2,559 |
Merriweather Post Pavilion donation | |||
Developments | 0 | 0 | 18,066 |
Prepaid and other assets | 0 | 0 | (10,597) |
Mortgage, notes and loans payable | 0 | 0 | (2,834) |
Other liabilities | 0 | 0 | (4,635) |
Net assets acquired in the acquisition of Las Vegas Aviators | |||
Non-Cash Transactions: | |||
Net assets acquired in the acquisition | 0 | 31,311 | 0 |
Net assets acquired in the acquisition of Constellation | |||
Non-Cash Transactions: | |||
Net assets acquired in the acquisition | 0 | 41,744 | 0 |
Net assets acquired in the acquisition of Six Pines | |||
Non-Cash Transactions: | |||
Net assets acquired in the acquisition | $ 0 | $ 0 | $ 30,191 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Cash Flows [Abstract] | |||
Acquisition of 1% partnership interest in 110 North Wacker | 1.00% | 1.00% | 1.00% |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General The Howard Hughes Corporation is a Delaware corporation that was formed on July 1, 2010. Together with its subsidiaries (herein, “HHC” or the “Company”), HHC develops Master Planned Communities (“MPCs”) and residential condominiums, invests in other strategic real estate opportunities in the form of entitled and unentitled land and other development rights (“Strategic Developments”) and owns, manages and operates real estate assets currently generating revenues (“Operating Assets”), which may be redeveloped or repositioned from time to time. Management has evaluated all material events occurring subsequent to the date of the Consolidated Financial Statements up to the date and time this Annual Report is filed and concluded there were no events or transactions occurring during this period that required recognition or disclosure in the financial statements other than as mentioned herein. Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), with all intercompany balances eliminated. The presentation includes the accounts of the Company and those entities in which HHC has a controlling financial interest. The Company also consolidates certain variable interest entities (“VIEs”) in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation (“ASC 810”). The outside equity interests in certain entities controlled by the Company are reflected in the Consolidated Financial Statements as a noncontrolling interest. Approximately $103.2 million and $249.6 million in restricted cash was reclassified from Prepaid expenses and other assets, net to Restricted cash on the Consolidated Balance Sheets at December 31, 2017 and 2016, respectively, to conform to the 2018 presentation as a result of the adoption of Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows - Restricted Cash . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The estimates and assumptions include, but are not limited to, revenue recognition accounted for under the percentage of completion method, capitalization of development costs, provision for income taxes, recoverable amounts of receivables and deferred tax assets, initial valuations of tangible and intangible assets acquired and the related useful lives of assets upon which depreciation and amortization is based. Estimates and assumptions have also been made with respect to future revenues and costs, the fair value of warrants, debt and options granted. Actual results could differ from these and other estimates. Segments Segment information is prepared on the same basis that management reviews information for operational decision-making purposes. Management evaluates the performance of each of HHC's real estate assets or investments individually and aggregates such properties into segments based on their economic characteristics and types of revenue streams. The Company operates in three business segments: (i) Operating Assets; (ii) MPC; and (iii) Strategic Developments. Investment in Real Estate Master Planned Community Assets, Land, Buildings and Equipment Real estate assets are stated at cost less any provisions for impairments. Expenditures for significant improvements to the Company's assets are capitalized. Tenant improvements relating to the Company's operating assets are capitalized and depreciated over the shorter of their economic lives or the lease term. Maintenance and repair costs are charged to expense when incurred. The Company periodically reviews the estimated useful lives of properties. Depreciation or amortization expense is computed using the straight‑line method based upon the following estimated useful lives: Asset Type Years Location of Asset Buildings and improvements 7 - 40 Buildings and Equipment Equipment and fixtures 5 - 20 Buildings and Equipment Computer hardware and software, and vehicles 3 - 5 Buildings and Equipment Tenant improvements Lesser of lease term or useful life Buildings and Equipment Leasing costs Related lease term Prepaid expenses and other assets, net From time to time, the Company may reassess the development strategies for certain buildings and improvements which results in changes to the Company's estimate of their remaining useful lives. As a result, the Company recognized an additional $25.5 million , or $0.59 per diluted share, in depreciation expense during the year ended December 31, 2017 due to the change in useful lives of these buildings and improvements. The Company did not recognize additional depreciation expense of significance for the years ended December 31, 2018 and 2016. Developments Development costs, which primarily include direct costs related to placing the asset in service associated with specific development properties, are capitalized as part of the property being developed. Construction and improvement costs incurred in connection with the development of new properties or the redevelopment of existing properties are capitalized before they are placed into service. Costs include planning, engineering, design, direct material, labor and subcontract costs. Real estate taxes, utilities, direct legal and professional fees related to the sale of a specific unit, interest, insurance costs and certain employee costs incurred during construction periods are also capitalized. Capitalization commences when the development activities begin and ceases when a project is completed, put on hold or at the date that the Company decides to not move forward with a project. Capitalized costs related to a project where HHC has determined not to move forward are expensed if they are not deemed recoverable. Capitalized interest costs are based on qualified expenditures and interest rates in place during the construction period. Demolition costs associated with redevelopments are expensed as incurred unless the demolition was included in the Company's development plans and imminent as of the acquisition date of an asset. Once the assets are placed into service, they are depreciated in accordance with HHC's policy. In the event that management no longer has the ability or intent to complete a development, the costs previously capitalized are evaluated for impairment. Developments consist of the following categories: December 31, (In thousands) 2018 2017 Land and improvements $ 456,450 $ 202,875 Development costs 829,842 675,691 Condominium projects 3,776 318,016 Total Developments $ 1,290,068 $ 1,196,582 Real Estate and Other Affiliates In the ordinary course of business, HHC enters into partnerships or joint ventures primarily for the development and operation of real estate assets which are referred to as “Real Estate and Other Affiliates.” The Company assesses its joint ventures at inception to determine if any meet the qualifications of a VIE. HHC considers a partnership or joint venture a VIE if: (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity); or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810, the Company reassess its initial determination of whether the partnership or joint venture is a VIE. The Company also performs a qualitative assessment of each VIE to determine if HHC is the primary beneficiary. Under ASC 810, a company concludes that it is the primary beneficiary and consolidates the VIE if the company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining if the company is the primary beneficiary. As required by ASC 810, management’s assessment of whether the company is the primary beneficiary of a VIE is continuously performed. The Company accounts for VIEs for which it is not considered to be the primary beneficiary but has significant influence using the equity method, and investments in VIEs where HHC does not have significant influence on the joint venture’s operating and financial policies using the cost method. The Company accounts for investments in joint ventures where it owns a noncontrolling interest using the equity method, and investments in joint ventures where the Company has virtually no influence on the joint venture’s operating and financial policies using the cost method. For cost method investments, the Company recognizes earnings to the extent of distributions received from such investments. Under the equity method, the cost of an investment is adjusted for the Company's share of the equity in earnings or losses of such Real Estate Affiliates from the date of investment and reduced by distributions received. Generally, the operating agreements with respect to Real Estate and Other Affiliates provide that assets, liabilities and funding obligations are shared in accordance with HHC's ownership percentages. The Company generally also shares in the profit and losses, cash flows and other matters relating to its Real Estate and Other Affiliates in accordance with the respective ownership percentages. For certain equity method investments, when the preferences on profit sharing on liquidation rights and priorities differ from the ownership percentages, HHC considers ASC 970 and applies the Hypothetical Liquidation Book Value (“ HLBV ”) m ethod. Under this method, the Company recognizes income or loss based on the change in the underlying share of the venture’s net assets on a hypothetical liquidation basis as of the reporting date. Acquisitions of Properties The Company accounts for the acquisition of real estate properties in accordance with ASC 805 Business Combinations (“ASC 805”). This methodology requires that assets acquired and liabilities assumed be recorded at their fair values on the date of acquisition. Costs directly related to asset acquisitions are considered additions to the purchase price and increase the cost basis recorded for the Investment in Real Estate. Acquisition costs related to the acquisition of a business are expensed as incurred. The fair value of tangible assets of an acquired property (which includes land, buildings and improvements) is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, buildings and improvements based on management’s determination of the fair value of these assets. The “as-if-vacant” values are derived from several sources which incorporate significant unobservable inputs that are classified as Level 3 inputs in the fair value hierarchy and primarily include a discounted cash flow analysis using discount and capitalization rates based on recent comparable market transactions, where available. The fair value of acquired intangible assets consisting of in-place, above-market and below-market leases is recorded based on a variety of considerations, some of which incorporate significant unobservable inputs that are classified as Level 3 inputs in the fair value hierarchy. In-place lease considerations include, but are not necessarily limited to: (1) the value associated with avoiding the cost of originating the acquired in-place leases (i.e., the market cost to execute a lease, including leasing commissions and tenant improvements); (2) the value associated with lost revenue related to tenant reimbursable operating costs incurred during the assumed lease-up period (i.e., real estate taxes, insurance and certain other operating expenses); and (3) the value associated with lost rental revenue from existing leases during the assumed lease-up period. Above-market and below-market leases are valued at the present value, using a discount rate that reflects the risks associated with the leases acquired, of the difference between (1) the contractual amounts to be paid pursuant to the in-place lease; and (2) management’s estimate of current market lease rates, measured over the remaining non-cancelable lease term, including any below-market renewal option periods. Impairment HHC reviews its long-lived assets (including those held by its Real Estate and Other Affiliates) for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset is not recoverable and exceeds its fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future economic conditions, such as occupancy, rental rates, capital requirements and sales values that could differ materially from actual results in future periods. If impairment indicators exist and it is expected that undiscounted cash flows generated by the asset are less than its carrying amount, less costs to sell in the case of assets classified as held for sale, an impairment provision is recorded to write-down the carrying amount of the asset to its fair value. Impairment indicators for HHC's assets or projects within MPCs are assessed separately and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs or cancellation rates, and projected losses on expected future sales. MPC assets have extended life cycles that may last 20 to 40 years, or longer, and have few long‑term contractual cash flows. Further, MPC assets generally have minimal to no residual values because of their liquidating characteristics. MPC development periods often occur through several economic cycles. Subjective factors such as the expected timing of property development and sales, optimal development density and sales strategy impact the timing and amount of expected future cash flows and fair value. Impairment indicators for Operating Assets are assessed separately for each property and include, but are not limited to, significant decreases in net operating income, significant decreases in occupancy, ongoing low occupancy and significant net operating losses. Impairment indicators for development costs in Strategic Developments are assessed by project and include, but are not limited to, significant changes in projected completion dates, revenues or cash flows, development costs, market factors, significant decreases in comparable property sale prices and feasibility. The cash flow estimates used both for determining recoverability and estimating fair value are inherently judgmental and reflect current and projected trends in rental, occupancy, pricing, development costs, sales pace and capitalization rates, and estimated holding periods for the applicable assets. Although the estimated fair value of certain assets may be exceeded by the carrying amount, a real estate asset is only considered to be impaired when its carrying amount is not expected to be recovered through estimated future undiscounted cash flows. To the extent an impairment provision is necessary, the excess of the carrying amount of the asset over its estimated fair value is expensed to operations. In addition, the impairment provision is allocated proportionately to adjust the carrying amount of the asset. The adjusted carrying amount, which represents the new cost basis of the asset, is depreciated over the remaining useful life of the asset or, for MPCs, is expensed as a cost of sales when land is sold. Assets that have been impaired will in the future have lower depreciation and cost of sale expenses. The impairment will have no impact on cash flow. With respect to HHC's Investment in Real Estate and Other Affiliates, a series of operating losses of an underlying asset or other factors may indicate that a decrease in value has occurred which is other‑than‑temporary. The investment in each Real Estate and Other Affiliates is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other‑than‑temporary. If the decrease in value of an Investment in a Real Estate and Other Affiliates is deemed to be other‑than‑temporary, HHC's investment is reduced to its estimated fair value. In addition to the property‑specific impairment analysis that are performed on the underlying assets of the investment, the Company also considers the ownership, distribution preferences, limitations, and rights to sell and repurchase its ownership interests. For the years ended December 31, 2018 , 2017 and 2016 , HHC evaluated whether impairment indicators existed at any of its assets. In most instances, the Company concluded no impairment indicators were present. For the year ended December 31, 2016, the Company recognized an impairment charge of $35.7 million for Park West during the third quarter of 2016 due to a change in strategy and reduction of the anticipated holding period. For the years ended December 31, 2018 and 2017, HHC concluded that there were no impairments. Please refer to Note 4 - Impairment for additional information. Cash and Cash Equivalents Cash and Cash Equivalents consist of highly-liquid investments with maturities at date of purchase of three months or less and include registered money market mutual funds which are invested in United States Treasury bills that are valued at the net asset value of the underlying shares in the funds as of the close of business at the end of each period as well as deposits with major banks throughout the United States. Such deposits are in excess of FDIC limits and are placed with high quality institutions in order to minimize concentration of counterparty credit risk. Restricted Cash Restricted cash reflects amounts segregated in escrow accounts in the name of the Company, primarily related to escrowed condominium deposits by buyers and other amounts related to taxes, insurance, and legally restricted security deposits and leasing costs. Accounts Receivable, net Accounts receivable includes tenant rents, tenant recoveries and other receivables. The Company records allowances against its receivables that it considers uncollectible. These allowances are reviewed periodically and are adjusted based on management’s estimate of receivables that will not be realized in subsequent periods. Management exercises judgment in establishing these allowances and considers payment history, current credit status and if the tenant is currently occupying the space in developing these estimates. The following table summarizes the changes in allowance for doubtful accounts against accounts receivables: (In thousands) 2018 2017 2016 Balance as of January 1, $ 9,300 $ 7,799 $ 4,406 Provision for doubtful accounts 6,078 2,710 5,664 Write-offs (4,714 ) (1,209 ) (2,271 ) Balance as of December 31, $ 10,664 $ 9,300 $ 7,799 The increase in the Provision for doubtful accounts for the year ended December 31, 2018 compared to 2017 is primarily due to the reserve for a tenant at Ward Village. For the year ended December 31, 2018 compared to 2017, the increase in Write-offs is primarily due to $3.2 million of increased write-offs for a tenant at Downtown Summerlin and a tenant at the Seaport District. The decrease in the provision for the year ended December 31, 2017 compared to 2016 is primarily due to the reserve for a termination fee for a tenant in 2016 and a delinquent paying tenant in 2016 at another property. Notes Receivable, net Notes receivable, net includes non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, they are recorded at amortized cost less any provision for impairment. The Company evaluates its notes receivable for impairment when it is probable the payment of interest and principal will not be made in accordance with the contractual terms of the note agreement. Municipal Utility District Receivables, net In Houston, Texas, certain development costs are reimbursable through the creation of a Municipal Utility District (“MUD”), also known as Water Control and Improvement Districts, which are separate political subdivisions authorized by Article 16, Section 59 of the Texas Constitution and governed by the Texas Commission on Environmental Quality (“TCEQ”). MUDs are formed to provide municipal water, waste water, drainage services, recreational facilities and roads to those areas where they are currently unavailable through the regular city services. Typically, the developer advances funds for the creation of the facilities, which must be designed, bid and constructed in accordance with the City of Houston’s and TCEQ requirements. The MUD Board of Directors authorizes and approves all MUD development contracts, and MUD bond sale proceeds are used to reimburse the developer for its construction costs, including interest. At the date the expenditures occur, the Company estimates the costs it believes will be eligible for reimbursement and recognizes that as MUD receivables. MUD receivables are pledged as security to creditors under the debt facilities relating to Bridgeland and The Woodlands MPCs. Prepaid Expenses and Other Assets, net The major components of Prepaid expenses and other assets, net include Straight-line rent assets, various Intangibles, Special Improvement District (“SID”) receivables, tax increment financing (“TIF”) receivables, condominium inventory (and condominium receivables prior to the Adoption Date as discussed below in Revenue Recognition and Related Matters) and prepaid expenses related to the Company's properties. SID receivables are amounts due from SID bonds related to the Company's MPCs. Proceeds from SID bonds are held in escrow by a third-party and are used to reimburse the Company for a portion of the development costs incurred in Summerlin. SID receivables are $ 18.8 million and $ 26.4 million as of December 31, 2018 and 2017 , respectively. TIF receivables are amounts which the Company has submitted for reimbursement from Howard County, Maryland, in conjunction with development costs expended on key roads and infrastructure work within the Merriweather District of Columbia specified per the terms of the county’s TIF legislation and Special Obligation Bonds issued in October 2017. TIF receivables as of December 31, 2018 were $2.5 million . The Company's intangibles include in-place lease assets and above-market lease assets where HHC is the lessor, below-market ground leases where HHC is the lessee, trademark/tradename intangibles related to MPCs, and other indefinite lived intangibles relating to properties and businesses acquired in previous real estate transactions. The Company amortizes finite-lived intangible assets less any residual value, if applicable, on a straight-line basis over the term of the related lease or the estimated useful life of the asset. Intangible assets with an indefinite useful life, primarily attributable to the acquisition of the joint venture partner’s interest in the Las Vegas Aviators baseball team, are not amortized. The Company reviews for any changes in business that would lead to a reconsideration that the life is finite and should be subject to amortization. All indefinite-lived intangible assets are tested for impairment annually as of October 1 of each year, or sooner if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The quantitative impairment test for an indefinite-lived intangible asset consists of a comparison of the fair value of the asset to its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess, and the adjusted carrying amount of the intangible asset becomes the new accounting basis. Income Taxes Deferred income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates currently in effect. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance that results from a change in circumstances, and which causes a change in the judgment about the realizability of the related deferred tax asset, is included in the deferred tax provision. There are events or circumstances that could occur in the future that could limit the benefit of deferred tax assets. In addition, the Company recognizes and reports interest and penalties, if necessary, related to uncertain tax positions within the provision for income tax expense. In HHC's MPCs, gains with respect to land sales, whether for commercial use or for single family residences, are reported for tax purposes either on the modified accrual method or on the percentage-of-completion method. Under the percentage-of-completion method, a gain is recognized for tax purposes as costs are incurred in satisfaction of contractual obligations. The method used for determining the percentage complete for income tax purposes is different than that used for financial statement purposes. Deferred Expenses, net Deferred expenses consist principally of leasing costs. Deferred leasing costs are amortized to amortization expense using the straight‑line method over the related lease term. Deferred expenses are shown net of accumulated amortization of $24.8 million and $18.9 million as of December 31, 2018 and 2017 , respectively. Deferred financing fees are amortized to interest expense over the terms of the respective financing agreements using the effective interest method (or other methods which approximate the effective interest method). Marketing and advertising Strategic Developments, Operating Assets and MPC segments incur various marketing and advertising costs as part of their development, branding, leasing or sales initiatives. These costs include special events, broadcasts, direct mail and online digital and social media programs, and they are expensed as incurred. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, marketable securities, escrows, receivables, accounts payable, accrued expenses and other assets and liabilities are reasonable estimates of their fair values because of the short maturities of these instruments. Derivative Instruments and Hedging Activities Derivative instruments and hedging activities require management to make judgments on the nature of its derivatives and their effectiveness as hedges. These judgments determine if the changes in fair value of the derivative instruments are reported in the Consolidated Statements of Operations as a component of Net Income or as a component of Comprehensive Income as a component of Equity on the Consolidated Balance Sheets. While management believes its judgments are reasonable, a change in a derivative’s effectiveness as a hedge could materially affect expenses, net income and equity. The Company accounts for the changes in the fair value of an effective hedge in other comprehensive income (loss) and subsequently reclassifies the balance from other comprehensive income (loss) to earnings over the term that the hedged transaction affects earnings. The Company accounts for the changes in the fair value of an ineffective hedge directly in earnings. Stock-Based Compensation At December 31, 2018 , the Company has a stock-based employee compensation plan. The Company applies the provisions of ASC 718 Stock Compensation which requires all share‑based payments to employees, including grants of employee stock options, to be recognized in the Consolidated Statements of Operations based on their fair values. All unvested options outstanding under option plans have grant prices equal to the market price of the Company’s stock on the dates of grant. Compensation cost for restricted stock is determined based on fair market value of the Company’s stock at the date of grant. The Company recognizes forfeitures as they occur. Revenue Recognition and Related Matters Condominium Rights and Unit Sales Revenue from the sale of an individual unit in a condominium project is recognized at a point in time (i.e., the closing) when HHC satisfies the single performance obligation to construct a condominium project and transfer control of a completed unit to a buyer. The transaction price, which is the amount of consideration the Company receives upon delivery of the completed condominium unit to the buyer, is allocated to this single obligation and is received at closing less any amounts previously paid on deposit. The Company receives cash payments in the form of escrowed condominium deposits from customers who have contracted to purchase a condominium unit based on billing schedules established in HHC's condominium purchase agreement contracts. The amounts are recorded in Restricted cash until released from escrow in accordance with the escrow agreement and on approval of HHC's lender to fund construction costs of a project. A corresponding condominium contract deposit liability is established at the date of receipt, representing a portion of HHC's unsatisfied performance obligation at each reporting date. These deposits, along with the balance of the contract value, are recognized at closing upon satisfaction of HHC's performance obligation and transfer of title to the buyer. Condominium receivables, a conditional right to consideration for satisfaction of HHC's completed obligations, were established under legacy GAAP for condominium units for which revenue was previously recognized under the percentage of completion method. As of the adoption of ASU 2014-09, Revenues from Contracts with Customers (Topic 606) and all its related amendments (the “New Revenue Standard”) as of January 1, 2018 (the “Adoption Date”), condominium receivables are recorded only in limited circumstances. Real estate project costs directly associated with a condominium project, which are HHC's costs to fulfill contracts with condominium buyers, are capitalized while all other costs are expensed as incurred. Total estimated project costs include direct costs such as the carrying value of the land, site planning, architectural, construction and financing costs, as well as indirect cost allocations. The allocations include costs which clearly relate to the specific project, including certain infrastructure and amenity costs which benefit the project as well as others, and are based upon the relative sales value of the units. Costs incurred to sell condominium units are evaluated for capitalization in accordance with ASC 340-40, and incremental costs of obtaining and fulfilling a contract are capitalized only if the costs relate directly to a specifically identified contract, enhance resources to satisfy performance obligations in the future and are expected to be recovered. Master Planned Community Land Sales Revenues from land sales are recognized |
REAL ESTATE AND OTHER AFFILIATE
REAL ESTATE AND OTHER AFFILIATES | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
REAL ESTATE AND OTHER AFFILIATES | REAL ESTATE AND OTHER AFFILIATES Investments in Real Estate and Other Affiliates that are reported in accordance with the equity and cost methods are as follows: Economic/Legal Ownership Carrying Value Share of Earnings/Dividends December 31, December 31, December 31, December 31, Year Ended December 31, ($ in thousands) 2018 2017 2018 2017 2018 2017 2016 Equity Method Investments Master Planned Communities: The Summit (a) — — $ 72,171 $ 45,886 $ 36,284 $ 23,234 $ 43,501 Operating Assets: Las Vegas Aviators (b) 100 % 100 % — — — (152 ) 12 Constellation (b) (c) 100 % 100 % (96 ) — (96 ) (323 ) (54 ) The Metropolitan Downtown Columbia (d) 50 % 50 % — — 467 390 (800 ) Millennium Six Pines Apartments (b) 100 % 100 % — — — — 44 Stewart Title of Montgomery County, TX 50 % 50 % 3,920 3,673 573 386 696 Woodlands Sarofim #1 20 % 20 % 2,760 2,696 94 53 182 m.flats/TEN.M (e) 50 % 50 % 4,701 — (2,478 ) — — Mr. C Seaport (f) 35 % 35 % 8,721 — (465 ) — — Strategic Developments: Circle T Ranch and Power Center 50 % 50 % 5,989 4,455 1,534 — 10,497 HHMK Development 50 % 50 % 10 10 — — — KR Holdings 50 % 50 % 159 749 830 41 18 m.flats/TEN.M (e) 50 % 50 % — 6,521 — (415 ) — Mr. C Seaport (f) 35 % 35 % — 8,651 (240 ) (643 ) 106 98,335 72,641 36,503 22,571 54,202 Cost method investments 3,952 3,952 3,451 2,927 2,616 Investment in Real Estate and Other Affiliates $ 102,287 $ 76,593 $ 39,954 $ 25,498 $ 56,818 (a) Please refer to the discussion below for a description of the joint venture ownership structure. (b) HHC acquired this joint venture partner’s interest in 2017 and has consolidated the assets and liabilities of the entity in its financial results. See Note 3 - Acquisitions and Dispositions for additional information regarding the transaction. (c) Carrying Value and Share of Earnings/Dividends balances represent immaterial residual activity recorded subsequent to HHC's acquisition of the joint venture partner's interest in 2017. (d) The Metropolitan Downtown Columbia was in a deficit position of $3.8 million and $2.6 million at December 31, 2018 and December 31, 2017 , respectively, due to distributions from operating cash flows in excess of basis. This deficit balance is presented in Accounts payable and accrued expenses at December 31, 2018 and 2017. (e) Property was transferred from Strategic Developments to Operating Assets during the three months ended March 31, 2018. (f) The Mr. C Seaport hotel was closed in December 2016 for redevelopment and was transferred to the Strategic Developments segment as of January 1, 2017. The property was transferred from Strategic Developments to Operating Assets during the three months ended September 30, 2018 when the redeveloped hotel opened for business. As of December 31, 2018 , HHC is not the primary beneficiary of any of the joint ventures listed above because it does not have the power to direct the activities that most significantly impact the economic performance of the joint ventures; therefore, the Company reports its interests in accordance with the equity method. At December 31, 2018 , the Mr. C Seaport VIE does not have sufficient equity at risk to finance its operations without additional financial support. The aggregate carrying value of Mr. C Seaport is $8.7 million and is classified as Investment in Real Estate and Other Affiliates in the Consolidated Balance Sheets. The Company's maximum exposure to loss as a result of this investment is limited to the aggregate carrying value of the investment as HHC has not provided any guarantees or otherwise made firm commitments to fund amounts on behalf of this VIE. As of December 31, 2018 , approximately $201.5 million of indebtedness was secured by the properties owned by HHC's Real Estate and Other Affiliates of which HHC's share was approximately $96.2 million based upon economic ownership. All of this indebtedness is without recourse to HHC. As of December 31, 2018 , HHC is the primary beneficiary of six VIEs which are consolidated in its financial statements. HHC began consolidating 110 North Wacker and its underlying entities in the second quarter of 2018 as further discussed below. The creditors of the consolidated VIEs do not have recourse to the Company, except for 18% , or $9.0 million , of the 110 North Wacker outstanding loan balance. As of December 31, 2018 , the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $190.6 million and $99.8 million , respectively. As of December 31, 2017 , HHC was the primary beneficiary of three VIEs which are consolidated in its financial statements. The creditors of the other three consolidated VIEs do not have recourse to the Company. As of December 31, 2017 , the carrying values of the assets and liabilities associated with the operations of the consolidated VIEs were $24.8 million and $2.7 million , respectively. The assets of the VIEs are restricted for use only by the particular VIEs and are not available for the Company's general operations. During the second quarter of 2018, HHC executed a joint venture agreement with USAA related to 110 North Wacker. At execution, HHC contributed land with a book basis of $33.6 million and an agreed upon fair value of $85.0 million , and USAA contributed $64.0 million in cash. The Company has subsequent capital obligations of $42.7 million , and USAA is required to fund up to $105.6 million in addition to its initial contribution. The Company and its joint venture partners have also entered into a construction loan agreement further described in Note 7 - Mortgages, Notes and Loans Payable, Net . The Company has concluded that it is the primary beneficiary of the VIE because it has the power to direct activities that most significantly impact the joint venture’s economic performance during the development phase of the project. Given the nature of the venture’s capital structure and the provisions for the liquidation of assets, the Company's share of the venture’s income-producing activities is recognized based on the HLBV method, which represents an economic interest of approximately 33% for HHC. Under this method, HHC recognizes income or loss in Equity in earnings from Real Estate and Other Affiliates based on the change in its underlying share of the venture's net assets on a hypothetical liquidation basis as of the reporting date. After USAA receives a 9.0% preferred return on its capital contribution, HHC is entitled to cash distributions from the venture until it receives a 9.0% return. Subsequently, USAA is entitled to cash distributions equal to 11.11% of the amount distributed to HHC that resulted in a 9.0% return. Thereafter, HHC and USAA are entitled to distributions pari passu to their profit ownership interests of 90% and 10% , respectively. Significant activity for Real Estate and Other Affiliates and the related accounting considerations are described below. The Summit During the first quarter of 2015 , HHC formed DLV/HHPI Summerlin, LLC (“ The Summit ”) a joint venture with Discovery Land Company (“ Discovery ”), contributed land with a book basis of $13.4 million and transferred SID bonds related to such land with a carrying value of $1.3 million to the joint venture at the agreed upon capital contribution value of $125.4 million , or 226,000 per acre. Discovery is required to fund up to a maximum of $30.0 million of cash as their capital contribution, and the Company has no further capital obligations. The gains on the contributed land will be recognized in Equity in earnings from Real Estate and Other Affiliates as the joint venture sells lots. After the Company receives its capital contribution of $125.4 million and a 5.0% preferred return on such capital contribution, Discovery is entitled to cash distributions by the joint venture until it has received two times its equity contribution. Any further cash distributions are shared equally. Given the nature of the venture’s capital structure and the provisions for the liquidation of assets, the Company's share of the venture’s income-producing activities is recognized based on the HLBV method. Under this method, HHC recognizes income or loss based on the change in its underlying share of the venture's net assets on a hypothetical liquidation basis as of the reporting date. Please refer to Note 1 - Summary of Significant Accounting Policies for a description of the HLBV method. Relevant financial statement information for The Summit is summarized as follows: December 31, (In millions) 2018 2017 Total Assets $ 218.9 $ 166.9 Total Liabilities 144.6 118.9 Total Equity 74.3 48.0 December 31, (In millions) 2018 2017 2016 Revenues (a) $ 101.2 $ 58.6 $ 79.8 Net income 36.3 23.2 43.5 Gross Margin 41.9 31.2 47.1 (a) Revenues related to land sales at the joint venture are recognized on a percentage of completion basis as The Summit follows the private company timeline for implementation of the New Revenue Standard of 2019. Circle T Ranch and Power Center On June 1, 2016 , the Westlake Retail Associates joint venture closed on a 72 -acre land sale with an affiliate of Charles Schwab Corporation. The year ended December 31, 2016 reflects the recognition of $10.5 million in Equity in earnings from Real Estate and Other Affiliates resulting from the land sale. m.flats/TEN.M On October 4, 2013 , HHC entered into a joint venture agreement with a local developer, Kettler, Inc., to construct an apartment complex with ground floor retail in Downtown Columbia, Maryland. HHC contributed approximately five acres of land having a book value of $4.0 million to the joint venture and subsequently incurred an additional $3.1 million in capitalized development costs for a total book value contribution of $7.1 million . HHC's land was valued at $23.4 million , or $53,500 per constructed unit. In January 2016 , the joint venture closed on an $88.0 million construction loan which is non-recourse to HHC and bears interest at one-month LIBOR plus 2.40% with an initial maturity date of February 2020 , with three , one -year extension options. Upon closing of the loan, Kettler, Inc. contributed $16.1 million in cash and $7.3 million was distributed to HHC, of which $6.3 million was reinvested in the project in 2016. HHC accounted for this transaction as a partial sale of the land and recognized a net profit of $0.2 million at December 31, 2016. Mr. C Seaport In January 2016 , HHC entered into a joint venture to purchase a hotel located at Mr. C Seaport in the Seaport District of New York with a capital contribution of $6.0 million . HHC advanced a bridge loan of $25.0 million at a 5.0% interest rate to the joint venture at closing to expedite the acquisition, which was repaid in full in June 2016 . In the second quarter of 2016 , upon completion of a refinancing of the property with a $36.0 million redevelopment loan, HHC made additional capital contributions of $2.3 million in 2016 and $0.7 million in 2017. The Mr. C Seaport hotel was closed in December 2016 for redevelopment and was transferred to the Strategic Developments segment. The hotel was transferred back to the Operating Assets segment in the third quarter of 2018 when redevelopment was complete. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2018 | |
ACQUISITIONS AND DISPOSITIONS | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS On September 7, 2018, the Company acquired Lakefront North, two Class-A office buildings previously occupied by CB&I and immediately adjacent to the Hughes Landing development. The Company purchased the four- and six-story buildings, totaling approximately 257,000 rentable square feet, as well as 12.9 acres of land for $53.0 million . On June 8, 2018, the Company acquired the property at 250 Water Street, an approximately one -acre parking lot in the Seaport District. The Company purchased the site for $180.0 million plus closing costs, consisting of an initial payment of $53.1 million and a $129.7 million note payable. The loan has an initial interest-free term of six months with an initial maturity date of December 8, 2018, and three , six -month extension options at a rate of 6.00% . The second and third extension options each require a $30.0 million pay down. In the third and fourth quarters of 2017, the Company closed on the sales of five non-core assets for total proceeds of $52.6 million , resulting in a net gain of $23.1 million , of which $19.2 million and $3.9 million are included in Gains on sales of properties and Gains on sales of operating properties, respectively, on the Consolidated Statements of Operations. On December 28, 2017 (the “ Constellation Acquisition Date ”), the Company acquired its joint venture partner’s 50.0% interest in Constellation for $8.0 million in cash and 50% of the joint venture’s liabilities for a total of $16.0 million . Simultaneously with the buyout of this luxury apartment development, HHC replaced the joint venture’s existing $15.8 million construction loan with a $24.2 million mortgage at 4.07% maturing January 1, 2033 . As a result of the change in control, HHC recognized a gain of $17.8 million in Gain on acquisition of joint venture partner's interest in conjunction with this acquisition relating to the step-up to fair value of the assets acquired. The following table summarizes the accounting of the purchase price: Asset ($ in millions) Acquisition Date Fair Value Building $ 38,213 Land 3,069 Improvements 957 Furniture, fixtures and equipment 590 Leases in place 714 Other identifiable assets 18 Total $ 43,561 Prior to the acquisition, the Company accounted for its investment in Constellation under the equity method within Investment in Real Estate and Other Affiliates and recognized a loss of $0.3 million in equity in earnings for the year to date period through the Constellation Acquisition Date . Revenues and pre-tax net income from operations included in the Consolidated Statements of Operations from the Constellation Acquisition Date through December 31, 2017 are not material. On March 1, 2017 (the “Las Vegas 51s Acquisition Date”), the Company acquired its joint venture partner’s 50.0% interest in the Las Vegas 51s (now known as the Las Vegas Aviators) minor league baseball team for $16.4 million and became the sole owner of this Triple-A baseball team. As a result of the change in control, HHC recognized a gain of $5.4 million in Gain on acquisition of joint venture partner's interest in conjunction with this acquisition relating to the step-up to fair value of the assets acquired. Using the income approach, the allocated fair values included a $0.4 million contingent liability recorded in Accounts payable and accrued expenses per the terms of the purchase agreement relating to a credit for the use of seats in a future stadium for the team, if and when constructed by HHC, $7.9 million in finite-lived intangibles, which have a weighted average amortization period of 11 years, and $24.9 million to indefinite-lived intangibles, primarily related to the franchise relationship agreement, all of which is recorded in Prepaid expenses and other assets, net. Accordingly, the values of assets acquired and liabilities assumed and consolidated into the Company's financial statements total $36.0 million and $3.2 million , respectively, and are included in the Operating Assets segment. Prior to the acquisition, the Company accounted for its investment in the Las Vegas 51s under the equity method within Investment in Real Estate and Other Affiliates . The joint venture had revenues of $1.3 million , and HHC recognized a net loss of $0.2 million included in equity in earnings for the year ended December 31, 2017 . Included in the Consolidated Statements of Operations from the Las Vegas 51s Acquisition Date through December 31, 2017 are revenues of $6.8 million and a pre-tax net loss from operations of $0.6 million . On January 18, 2017 , the Company closed on a land sale of approximately 36 acres of a 100 -acre property, Elk Grove Collection, for gross sales proceeds of $36.0 million , resulting in a pre-tax gain of $32.2 million . The Company is assessing its plans for the remaining 64 acres of this non-core asset. Previous development plans for the project have been placed on hold as the Company believes it can allocate capital into core assets and achieve a better risk-adjusted return. On January 6, 2017 , the Company acquired the 11.4 -acre Macy’s store and parking lot at Landmark Mall in Alexandria, VA, for $22.2 million . The Macy’s parcel is adjacent to the Landmark Mall, which is in the Strategic Developments segment, and is located approximately nine miles from Washington, D.C. The Company plans to redevelop the mall and the Macy’s parcel into an open-air, mixed-use community. |
IMPAIRMENT
IMPAIRMENT | 12 Months Ended |
Dec. 31, 2018 | |
Asset Impairment Charges [Abstract] | |
IMPAIRMENT | IMPAIRMENT The Company reviews its real estate assets for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment or disposal of long‑lived assets in accordance with ASC 360 requires that if impairment indicators exist and expected undiscounted cash flows generated by the asset over an anticipated holding period are less than its carrying amount, an impairment provision should be recorded to write down the carrying amount of the asset to its fair value. The impairment analysis does not consider the timing of future cash flows and whether the asset is expected to earn an above or below-market rate of return. Each investment in Real Estate and Other Affiliates as discussed in Note 2 - Real Estate and Other Affiliates is evaluated periodically for recoverability and valuation declines that are other-than-temporary. If the decrease in value of an investment in a Real Estate and Other Affiliates is deemed to be other-than-temporary, the investment in such Real Estate and Other Affiliates is reduced to its estimated fair value. No impairment charges were recorded during the years ended December 31, 2018 and 2017 . During the third quarter of 2016 , the Company implemented a plan to sell Park West, a 249,177 square foot open-air shopping, dining and entertainment destination in Peoria, Arizona and recognized a $35.7 million impairment charge due to a shorter than previously anticipated holding period, adjusting the net carrying value down to its estimated fair market value. On December 29, 2016 , the Company sold Park West for proceeds of $32.5 million , recognized a loss of $1.1 million , net of transaction costs, in conjunction with the sale and redeployed the net cash proceeds from this unleveraged asset into its existing developments. The following table summarizes the Company's provision for impairment: Provision for impairment as of December 31, Impaired Asset Location Method of Determining Fair Value 2018 2017 2016 (In thousands) Operating Assets: Park West Peoria, AZ Discounted cash flow analysis using capitalization rate of 6.75% $ — $ — $ 35,734 |
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER ASSETS AND LIABILITIES | |
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Prepaid expenses and other assets The following table summarizes the significant components of Prepaid expenses and other assets: December 31, (In thousands) 2018 2017 Condominium inventory $ 198,352 $ — Straight-line rent 50,493 39,136 Intangibles 33,955 34,802 Other 20,364 4,798 Special Improvement District receivable 18,838 26,430 Below-market ground leases 18,296 18,647 Security and escrow deposits 17,670 16,949 Prepaid expenses 16,981 11,731 Equipment, net of accumulated depreciation of $8.3 million and $6.9 million, respectively 15,543 16,955 Tenant incentives and other receivables 8,745 8,482 In-place leases 6,539 10,821 TIF receivable 2,470 14,444 Federal income tax receivable 2,000 2,198 Above-market tenant leases 1,044 1,648 Interest rate swap derivative assets 346 4,470 Condominium receivables — 158,516 Prepaid expenses and other assets, net $ 411,636 $ 370,027 The $41.6 million net increase primarily relates to a $ 198.4 million increase in Condominium inventory, offset by a $ 158.5 million decrease in Condominium receivables, of which $99.6 million relates to the adoption of the New Revenue Standard. Condominium inventory represents units at completed projects for which sales have not yet closed. The increase at December 31, 2018 is primarily attributable to units at Ae'o, which was delivered in December 2018 and has contracted units that will continue to close in early 2019. Accounts Payable and Accrued Expenses The following table summarizes the significant components of Accounts payable and accrued expenses: December 31, (In thousands) 2018 2017 Condominium deposit liabilities $ 263,636 $ 55,975 Construction payables 258,749 217,838 Deferred income 42,734 53,337 Accrued payroll and other employee liabilities 42,591 41,236 Accounts payable and accrued expenses 38,748 35,887 Other 29,283 34,699 Accrued real estate taxes 26,171 22,289 Accrued interest 23,080 20,322 Tenant and other deposits 20,893 18,937 Straight-line ground rent liability 16,870 14,944 Interest rate swap derivative liabilities 16,517 5,961 Above-market ground leases — 293 Accounts payable and accrued expenses $ 779,272 $ 521,718 The $257.6 million net increase in total Accounts payable and accrued expenses primarily relates to a $207.7 million increase in Condominium deposit liabilities, $99.6 million of which relates to the impact of the adoption of the New Revenue Standard, with the remainder representing new sales, primarily at Ae‘o and ‘A‘ali‘i, and a $40.9 million increase in Construction payables predominantly related to the condominium towers under construction at Ward Village as the projects move toward completion. |
INTANGIBLES
INTANGIBLES | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLES | |
INTANGIBLES | INTANGIBLES The following table summarizes the Company's intangible assets and liabilities: As of December 31, 2018 As of December 31, 2017 Gross Accumulated Net Gross Accumulated Net Asset (Amortization) Carrying Asset (Amortization) Carrying (In thousands) (Liability) / Accretion Amount (Liability) / Accretion Amount Intangible Assets: Indefinite lived intangibles $ 25,028 $ — $ 25,028 $ 25,028 $ — $ 25,028 Goodwill 1,307 — 1,307 1,307 — 1,307 Other intangibles 10,278 (2,658 ) 7,620 10,278 (1,812 ) 8,466 Tenant leases: In-place value 19,966 (13,427 ) 6,539 22,304 (11,483 ) 10,821 Above-market 3,313 (2,269 ) 1,044 4,171 (2,523 ) 1,648 Below-market (7,326 ) 3,140 (4,186 ) (6,454 ) 2,688 (3,766 ) Ground leases: Above-market — — — (293 ) — (293 ) Below-market 23,096 (4,800 ) 18,296 23,096 (4,449 ) 18,647 Total indefinite lived intangibles $ 26,335 $ 26,335 Total amortizing intangibles $ 29,313 $ 35,523 The tenant in-place, above-market and below-market lease intangible assets and the above-market and below-market ground lease intangible assets resulted from real estate acquisitions. The in‑place value, above-market value of tenant leases and below-market ground lease are included in Prepaid expenses and other assets as detailed in Note 5 - Other Assets and Liabilities and are amortized over periods that approximate the related lease terms. The above-market ground lease and below‑market tenant leases are included in Accounts payable and accrued expenses as detailed in Note 5 - Other Assets and Liabilities and are amortized over the remaining non‑cancelable terms of the respective leases. Amortization/accretion of these intangible assets and liabilities decreased the Company's pre-tax income, excluding the impact of noncontrolling interest and the provision for income taxes, by $6.0 million in 2018 ; $8.9 million in 2017 and $6.3 million in 2016 . Future amortization/accretion is estimated to decrease pre-tax income, excluding the impact of noncontrolling interest and the provision for income taxes, by $2.3 million in 2019 ; $2.3 million in 2020 ; $1.7 million in 2021 ; $1.3 million in 2022 and $21.7 million thereafter. |
MORTGAGES, NOTES AND LOANS PAYA
MORTGAGES, NOTES AND LOANS PAYABLE, NET | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
MORTGAGES, NOTES AND LOANS PAYABLE, NET | MORTGAGES, NOTES AND LOANS PAYABLE, NET Mortgages, notes and loans payable, net are summarized as follows: December 31, (In thousands) 2018 2017 Fixed-rate debt: Unsecured 5.375% Senior Notes $ 1,000,000 $ 1,000,000 Secured mortgages, notes and loans payable 648,707 499,299 Special Improvement District bonds 15,168 27,576 Variable-rate debt: Mortgages, notes and loans payable (a) 1,551,336 1,350,914 Unamortized bond issuance costs (6,096 ) (6,898 ) Deferred financing costs (27,902 ) (12,946 ) Total mortgages, notes and loans payable, net $ 3,181,213 $ 2,857,945 (a) As more fully described below, $615.0 million and $428.3 million of variable rate debt has been swapped to a fixed rate for the term of the related debt as of December 31, 2018 and 2017 , respectively. An additional $50.0 million of variable rate debt was subject to interest rate collars as of December 31, 2018. As of December 31, 2018 and 2017, $75.0 million and $108.6 million , respectively, of variable rate debt was capped at a maximum interest rate. The following table presents the Company's mortgages, notes, and loans payable by property, presented within each segment in order of extended maturity date: Maximum Carrying Value Initial / Extended Interest Facility December 31, December 31, ($ in thousands) Maturity (a) Rate Amount 2018 2017 Master Planned Communities Summerlin South SID Bonds - S124 December 2019 5.95 % $ — $ 84 Summerlin South SID Bonds - S128 December 2020 7.30 % 213 390 Summerlin South SID Bonds - S132 December 2020 6.00 % 562 912 The Woodlands Master Credit Facility April 2020 / April 2021 5.25 % (b) $ 180,000 150,000 150,000 Bridgeland Credit Facility November 2020 / November 2022 5.96 % (b) 65,000 65,000 65,000 Summerlin South SID Bonds - S151 June 2025 6.00 % 913 3,763 Summerlin South SID Bonds - S128C December 2030 6.05 % 3,211 4,283 Summerlin South SID Bonds - S159 June 2035 6.00 % — 139 Summerlin West SID Bonds - S812 October 2035 6.00 % 6,709 15,193 Master Planned Communities Total 226,608 239,764 Operating Assets 1725-1735 Hughes Landing Boulevard June 2018 / June 2019 3.14 % (b), (c) 143,000 — 117,417 The Westin at The Woodlands August 2018 / August 2019 4.14 % (b), (c) 57,946 — 57,946 Outlet Collection at Riverwalk October 2019 / October 2020 5.00 % (b) 47,552 53,841 Three Hughes Landing December 2019 / December 2020 5.10 % (b) 62,000 55,759 45,058 Lakeland Village Center at Bridgeland May 2018 / May 2020 3.84 % (b), (c) 14,000 — 11,470 Embassy Suites at Hughes Landing October 2018 / October 2020 3.99 % (b), (c) 37,100 — 31,245 The Woodlands Resort & Conference Center February 2019 / February 2021 5.75 % (b) 62,500 65,500 One Merriweather February 2020 / February 2021 3.64 % (b), (c) 49,929 — 42,332 Downtown Summerlin September 2020 / September 2021 4.65 % (b) 266,755 274,088 Two Merriweather October 2020 / October 2021 5.00 % (b) 33,156 24,000 19,429 HHC 242 Self-Storage October 2019 / October 2021 5.10 % (b) 6,658 6,604 6,243 HHC 2978 Self-Storage Facility January 2020 / January 2022 5.10 % (b) 6,368 6,042 5,634 70 Columbia Corporate Center May 2020 / May 2022 3.49 % (b), (c) — 20,000 One Mall North May 2020 / May 2022 3.74 % (b), (c) — 14,463 10-60 Columbia Corporate Centers May 2020 / May 2022 3.33 % (b), (c) — 80,000 20/25 Waterway Avenue May 2022 4.79 % 13,395 13,646 Millennium Waterway Apartments June 2022 3.75 % 54,083 55,095 Aristocrat October 2022 5.90 % (b) 31,118 21,296 — Two Summerlin October 2022 5.90 % (b) 33,432 14,431 — Lake Woodlands Crossing Retail January 2023 4.30 % (b) 15,523 9,539 — Ward Village September 2021 / September 2023 3.82 % (b), (c) — 238,718 Lakefront North December 2022 / December 2023 4.50 % (b) 51,821 21,120 — Senior Secured Credit Facility September 2023 4.61 % (f) 700,000 615,000 — 9303 New Trails December 2023 4.88 % 11,610 12,003 4 Waterway Square December 2023 4.88 % 33,998 35,151 3831 Technology Forest Drive March 2026 4.50 % 21,571 21,954 Kewalo Basin Harbor September 2027 5.25 % (b) 11,562 3,499 — Millennium Six Pines Apartments August 2028 3.39 % 42,500 42,500 3 Waterway Square August 2028 3.94 % 49,013 50,327 One Hughes Landing December 2029 4.30 % 52,000 52,000 Two Hughes Landing December 2030 4.20 % 48,000 48,000 Hockey Ground Lease SIDS December 2020 - December 2030 6.05% - 7.30% 141 — Downtown Summerlin SID Bonds - S128 December 2030 6.05 % 2,652 2,812 One Lakes Edge March 2029 4.50 % 69,440 69,440 Constellation Apartments January 2033 4.07 % 24,200 24,200 Hughes Landing Retail December 2036 3.50 % 35,000 35,000 Columbia Regional Building February 2037 4.48 % 25,000 25,000 Operating Assets Total 1,636,700 1,570,512 Strategic Developments 250 Water Street December 2018 / June 2020 6.00 % 129,723 — Ke Kilohana December 2019 / December 2020 5.75 % (b) 142,656 96,757 — Ae‘o December 2019 / December 2021 5.49 % (b) 215,000 — 33,603 100 Fellowship Drive May 2022 4.00 % (b) 51,426 35,481 1 Lakeside Row July 2022 / July 2023 4.75 % (b) 34,231 — — Two Lakes Edge October 2022 / October 2023 4.65 % (b) 74,000 — — 110 North Wacker (d) April 2022 / April 2024 5.50 % (b), (d) 512,573 50,000 18,926 6100 Merriweather September 2022 / September 2024 5.25 % (b) 89,844 — — Columbia Multi-family September 2022 / September 2024 5.25 % (b) 85,657 — — Tanager Apartments October 2021 / October 2024 4.75 % (b) 44,100 — — Other SID Bonds December 2020 - December 2030 6.00% - 7.30% (e) 767 — Summerlin Ballpark December 2039 4.92 % 51,231 26,766 — Strategic Developments Total 339,494 52,530 Other corporate financing arrangements May 2023 4.33 % 12,409 14,983 Senior Notes March 2025 5.38 % 1,000,000 1,000,000 Unamortized bond issuance costs (6,096 ) (6,898 ) Deferred financing costs (27,902 ) (12,946 ) Total mortgages, notes, and loans payable $ 3,181,213 $ 2,857,945 (a) Maturity dates presented include initial maturity date as well as the extended or final maturity date as contractually stated. Extension periods generally can be exercised at HHC's option at the initial maturity date, subject to customary extension terms that are based on current property performance projections. Such extension terms may include, but are not limited to, minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable and other performance criteria. In certain cases due to property performance not meeting covenants, HHC may have to pay down a portion of the loan in order to obtain the extension. (b) The interest rate presented is based on the one-month LIBOR , three-month LIBOR or Prime rate, as applicable, which was 2.50% , 2.81% and 5.50% , respectively, at December 31, 2018 . (c) Rates and maturities were not changed as the line is retained for prior year presentation purposes only. Property is collateral for the Senior Secured Credit Facility, and their prior balances were repaid upon execution of the Senior Secured Credit Facility agreement on September 18, 2018 . (d) 100.0% of the outstanding principal of $50.0 million is subject to fixed interest rate collar contracts for the remaining term of the debt. (e) Includes SID Bonds related to Two Summerlin, Aristocrat, Tanager Apartments, and Summerlin Ballpark. Maturity dates range between December 2020 and December 2030 and interest rates range between 6.00% and 7.30% . (f) 100.0% of the outstanding principal of the $615.0 million Term Loan is swapped to a fixed rate equal to 4.61% . The weighted average interest rate on the Company's mortgages, notes and loans payable, excluding interest rate hedges, was 5.06% and 4.61% as of December 31, 2018 and 2017 , respectively. HHC's mortgages, notes and loans payable are secured by the properties listed in the table above and are non-recourse to HHC except for: i. $1.0 billion of Senior Notes due 2025 ; ii. $266.8 million financing for the Downtown Summerlin development which has an initial maximum recourse of 35% of the outstanding balance, which will reduce to 15% upon achievement of a 1.15 :1.0 debt service coverage ratio. The recourse further reduces to 10% upon achievement of a 1.25 :1.0 debt service coverage ratio, a 90% occupancy level, and average tenant sales of at least $500.00 per net rentable square foot. As of December 31, 2018 , 35% of the outstanding loan balance remains recourse to HHC; iii. 30% or $29.0 million of the Ke Kilohana outstanding loan balance; iv. 50% , or $23.8 million , of the Outlet Collection at Riverwalk outstanding loan balance; v. 100% , or $12.4 million, of the Other Corporate Financing Arrangements outstanding loan balance; vi. 18% , or $9.0 million , of the 110 North Wacker outstanding loan balance; vii. 25% of the Tanager outstanding loan balance; viii. 25% of the Lakeside Row outstanding loan balance; ix. 25% of the Columbia Multi-family outstanding loan balance and; x. 25% of the 6100 Merriweather outstanding loan balance. The Woodlands Land Development Company has recourse loans totaling $72.3 million for 100 Fellowship Drive, Lakefront North, Three Hughes Landing, The Woodlands Resort & Conference Center and Lake Woodlands Crossing. The debt is not recourse to HHC, however, it is partially recourse to The Woodlands Land Development Company, which is a subsidiary of HHC. Certain of the Company's loans contain provisions which grant the lender a security interest in the operating cash flow of the property that represents the collateral for the loan. Certain mortgage notes may be prepaid subject to a prepayment penalty equal to a yield maintenance premium, defeasance, or a percentage of the loan balance. As of December 31, 2018 , land, buildings and equipment and developments with a net book value basis of $4.2 billion have been pledged as collateral for HHC's mortgages, notes and loans payable. The following table summarizes the contractual obligations relating to the Company's mortgages, notes and loans payable as of December 31, 2018 based on extended maturity dates: Mortgages, notes and loans payable (In thousands) principal payments 2019 $ 93,358 2020 357,246 2021 419,697 2022 216,471 2023 696,248 Thereafter 1,432,191 Total principal payments 3,215,211 Deferred financing costs, net and unamortized underwriting fees (33,998 ) Total mortgages, notes and loans payable $ 3,181,213 As of December 31, 2018 , the Company was in compliance with all financial covenants included in the debt agreements governing its indebtedness. Master Planned Communities The Woodlands Master Credit Facility was amended and restated on April 27, 2017 to a $180.0 million maximum facility amount consisting of a $100.0 million term loan and an $80.0 million revolver (together, the "TWL Facility"). The TWL Facility bears interest at one-month LIBOR plus 2.75% with an initial maturity date of April 27, 2020 and a one -year extension option. The TWL Facility and The Woodlands Resort & Conference Center loans are recourse to the entities that directly own The Woodlands operations. The TWL Facility also contains certain covenants that, among other things, require the maintenance of specified financial ratios, limit the incurrence of additional recourse indebtedness at The Woodlands, and limit distributions from The Woodlands to HHC based on a loan‑to‑value test. The Summerlin MPC uses SID bonds to finance certain common infrastructure improvements. These bonds are issued by the municipalities and are secured by the assessments on the land. The majority of proceeds from each bond issued is held in a construction escrow and disbursed to the Company as infrastructure projects are completed, inspected by the municipalities and approved for reimbursement. Accordingly, the SID bonds have been classified as debt, and the Summerlin MPC pays the debt service on the bonds semi‑annually. As Summerlin sells land, the buyers assume a proportionate share of the bond obligation at closing, and the residential sales contracts provide for the reimbursement of the principal amounts that the Company previously paid with respect to such proportionate share of the bond. In the years ended December 31, 2018 and 2017 , no new SID bonds were issued and $10.9 million and $13.9 million in obligations were assumed by buyers, respectively. Operating Assets On December 20, 2018 , the Company amended the $62.5 million Woodlands Resort & Conference Center financing to extend the initial maturity date to February 28, 2019 . The financing bears interest at one-month LIBOR plus 3.25% and has two , one -year extension options. On December 17, 2018 , the Company closed on a $51.8 million construction loan for Lakefront North. The loan bears interest at one-month LIBOR plus 2.00% with an initial maturity of December 17, 2022 , and a one -year extension option. On December 5, 2018 , the Company modified and extended the Three Hughes Landing facility. The total commitment was reduced from $65.5 million to $62.0 million . The loan bears interest at one-month LIBOR plus 2.60% with an initial maturity of December 5, 2019 , and a one -year extension option. The Company had previously extended the facility on January 5, 2018 . On October 29, 2018 , the Company modified and extended the Outlet Collection at Riverwalk loan. The total commitment was reduced from $56.1 million to $47.9 million . The loan bears interest at one-month LIBOR plus 2.50% with two , six -month extension options. On September 18, 2018 , certain wholly-owned subsidiaries (the “Borrowers”) of the Company entered into a $700.0 million loan agreement (the “Loan Agreement”), which provides for a $615.0 million term loan (the “Term Loan”) and an $85.0 million revolver loan (the “Revolver Loan” and together with the Term Loan, the “Senior Secured Credit Facility” or the "Loans"), with Wells Fargo Bank, National Association, as administrative agent and a lender, as well as other lenders. The Loans bear interest at one-month LIBOR plus 1.65% and mature September 18, 2023 . The Borrowers have a one-time right to request an increase of $50.0 million in the aggregate amount of the Revolver Loan commitment. Concurrent with the funding of the Term Loan on September 21, 2018 , the Company entered into a swap agreement to fix 100% of the outstanding principal of the Term Loan to an overall rate equal to 4.61% . The Loans are secured by a first priority security interest in certain of the Company’s properties which are directly owned by the Borrowers (the “Mortgaged Properties”). In connection with the Loans, the Company provided the administrative agent, on behalf of the lenders, a non-recourse carve-out guarantee and a hazardous materials indemnity agreement. The Borrowers drew $615.0 million under the Term Loan at closing. All the net proceeds after costs and fees related to the Loans were used to repay all outstanding indebtedness encumbering the Mortgaged Properties, including debt held by lenders not party to the Loan Agreement. The total debt repaid was approximately $608.7 million and was associated with the following Mortgaged Properties: 10-60 Columbia Corporate Centers, 70 Columbia Corporate Center, One Mall North, One Merriweather, Embassy Suites at Hughes Landing, The Westin at The Woodlands, 1725-1735 Hughes Landing Boulevard and Ward Village. The Mortgaged Properties also include Creekside Village Green and 1701 Lake Robbins. The Company has not made any draws under the Revolver Loan. The Company evaluated the terms of the Loans to determine if the new debt instruments should be accounted for as modifications or extinguishments on a lender-by-lender basis, per Mortgaged Property subject to refinancing. The majority of the transaction was accounted for as a debt modification. As a result, the Company capitalized $8.6 million in related fees and costs and recognized a $0.7 million loss on debt extinguishment and modification, which was primarily related to third-party fees incurred in procuring the Loans. The $0.7 million loss is included in Interest expense in the Consolidated Statements of Operations. On April 13, 2018 , the Company repaid the $11.8 million loan for Lakeland Village Center at Bridgeland. On January 25, 2018 , the Company closed on a $ 15.5 million construction loan for Lake Woodlands Crossing Retail. The loan bears interest at one-month LIBOR plus 1.80% , matures on January 25, 2023 , and has an initial maximum recourse of 50% of the outstanding balance prior to completion of construction, at which point the repayment guarantee will reduce to 15% provided the project is 90% leased. On December 28, 2017 , the Company closed on a $24.2 million non‑recourse financing for Constellation. The loan bears interest at 4.07% and matures on January 1, 2033 . On October 19, 2017 , the Company closed on a construction loan totaling $64.6 million , of which $31.1 million will be used for development of Aristocrat and $33.4 million will be used for development of Two Summerlin. The loan bears interest at Wall Street Journal Prime plus 0.40% with a maturity of October 19, 2022 . On September 13, 2017 , the Company modified and extended its $311.8 million Downtown Summerlin facility with a $30.0 million pay down. The modified loan has a maximum facility of $275.9 million and bears interest at one-month LIBOR plus 2.15% with a maturity of September 13, 2020 and a one -year extension option. On August 11, 2017 , the Company closed on a construction loan totaling $11.6 million for Kewalo Basin Harbor. The loan bears interest at one-month LIBOR plus 2.75% with a maturity of September 1, 2027 . On January 19, 2017 , the Company closed on a non‑recourse financing totaling $25.0 million replacing the $23.0 million construction loan on the Columbia Regional Building. The loan bears interest at 4.48% and matures on February 11, 2037 . On February 23, 2017 , the Company refinanced the One Lakes Edge construction loan with a 12 -year Fannie Mae loan. The new loan amount is $ 69.4 million with a fixed rate of 4.50% . The loan is interest-only for four years then begins amortizing on a 30 -year basis. Strategic Developments In December 2018 , the Company repaid the $174.0 million outstanding balance on the construction loan relating to Ae‘o. Three repayments were made in conjunction with closing on the sales of units at the property. On October 11, 2018 , the Company closed on a $74.0 million construction loan for Two Lakes Edge, bearing interest at one-month LIBOR plus 2.15% with an initial maturity date of October 11, 2022 and a one -year extension option. On September 11, 2018 , the Company closed on an $ 89.8 million construction loan for 6100 Merriweather and an $85.7 million construction loan for Columbia Multi-family. Each loan bears interest at one-month LIBOR plus 2.75% , has an initial maturity date of September 11, 2022 , has two , one -year extension options and is cross-collateralized. On July 27, 2018 , the Company closed on a $34.2 million construction loan for Lakeside Row, bearing interest at one-month LIBOR plus 2.25% with an initial maturity date of July 27, 2022 and a one -year extension option. On July 20, 2018 , the Company closed on a $51.2 million construction note for Summerlin Ballpark, bearing interest at 4.92% per annum and maturing on December 15, 2039 . The note is secured by the ballpark and by the proceeds of the Naming Rights and Marketing agreement between the Company and the Las Vegas Convention and Visitors Authority, which provides an annual payment of $4.0 million to the Company in each of the next 20 years. On June 8, 2018 , the Company closed on a $129.7 million note payable for 250 Water Street. The loan has an initial interest-free term of six months with an initial maturity date of December 8, 2018 , and three , six -month extension options at a rate of 6.00% . The second and third extension options each require a $30.0 million pay down. The Company exercised its first extension option on December 3, 2018 . On April 30, 2018 , the Company and its joint venture partners closed on a $494.5 million construction loan for 110 North Wacker, of which the Company guaranteed approximately $89.0 million . The loan initially bears interest at one-month LIBOR plus 3.00% and steps up or down based on various leasing thresholds. The loan has an initial maturity date of April 30, 2022 , and two , one -year extension options. On September 25, 2018 , the Company and its joint venture partners closed on an amendment to increase the $494.5 million construction loan to $512.6 million , modify the lenders and commitments included in the loan syndication and increase the Company's guarantee to approximately $92.3 million . On March 26, 2018 , the Company closed on a $44.1 million construction loan for Tanager Apartments, bearing interest at one-month LIBOR plus 2.25% with an initial maturity date of October 1, 2021 and a three -year extension option. On January 19, 2018 , the Company paid off the $18.9 million mortgage loan for 110 North Wacker and settled the related swap liability of $0.3 million . On October 27, 2017 , the Company repaid the $195.3 million outstanding on the construction loan relating to Waiea and Anaha in conjunction with closing on the sales of units at Anaha. On May 31, 2017 , the Company closed on a $51.4 million construction loan for 100 Fellowship Drive. The loan bears interest at one-month LIBOR plus 1.50% with a maturity of May 31, 2022 . Corporate On March 16, 2017, the Company issued $800.0 million in aggregate principal amount of 5.375% senior notes due March 15, 2025 (the “ 2025 Notes ”) and completed a tender offer and consent solicitation for any and all of its $750.0 million existing 6.875% senior notes due October 1, 2021. The Company recognized a loss on redemption of $46.4 million in conjunction with this transaction. On June 12, 2017, the Company issued an additional $200.0 million of the 2025 Notes at a premium to par of 2.25% . Interest on the 2025 Notes is paid semi-annually, on March 15th and September 15th of each year, beginning on September 15, 2017. At any time prior to March 15, 2020, the Company may redeem all or a portion of the 2025 Notes at a redemption price equal to 100% of the principal plus a “make-whole” declining call premium. At any time prior to March 15, 2020, the Company may also redeem up to 35% of the 2025 Notes at a price of 105.38% with net cash proceeds of certain equity offerings, plus accrued and unpaid interest. The 2025 Notes contain customary terms and covenants and have no financial maintenance covenants. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE ASC 820 , Fair Value Measurement , emphasizes that fair value is a market-based measurement that should be determined using assumptions market participants would use in pricing an asset or liability. The standard establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring assets or liabilities at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the asset or liability. Assets or liabilities with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The following table presents the fair value measurement hierarchy levels required under ASC 820 for each of the Company's assets and liabilities that are measured at fair value on a recurring basis: December 31, 2018 December 31, 2017 Fair Value Measurements Using Fair Value Measurements Using (In thousands) Total Quoted Prices Significant Significant Total Quoted Prices Significant Significant Assets: Cash equivalents $ — $ — $ — $ — $ 50,135 $ 50,135 $ — $ — Interest rate swap derivative assets 346 — 346 — 4,470 — 4,470 — Liabilities: Interest rate swap derivative liabilities 16,517 — 16,517 — 5,961 — 5,961 — Cash equivalents consist of registered money market mutual funds which are invested in United States Treasury bills that are valued at the net asset value of the underlying shares in the funds as of the close of business at the end of each period. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates derived from observable market interest rate curves. As discussed further in Note 13 - Warrants , as of December 31, 2018 , all Sponsor Warrants and Management Warrants had been exercised. The following table presents a rollforward of the valuation of the Company's Warrant liabilities: (In thousands) 2018 2017 2016 Balance as of January 1, $ — $ 332,170 $ 307,760 Warrant liability loss (gain) (a) — 43,443 24,410 Exercises of Sponsor and Management Warrants — (375,613 ) — Balance as of December 31, $ — $ — $ 332,170 (a) For 2017 , this amount represents losses recognized relating to each warrant prior to the respective exercise date. For 2016, represents unrealized losses recorded for outstanding warrants at the end of the period. Changes in the fair value of the Sponsor Warrants and Management Warrants prior to exercise were recognized in net income as a warrant liability gain or loss. The valuation of warrants was based on an option pricing valuation model, utilizing inputs which were classified as Level 3 due to the unavailability of comparable market data. The inputs to the valuation model included the fair value of stock related to the warrants, exercise price and term of the warrants, expected volatility, risk-free interest rate, dividend yield and, as appropriate, a discount for lack of marketability. Generally, an increase in expected volatility would increase the fair value of the liability. The impact of the volatility on fair value diminished as the market value of the stock increased above the strike price. As the period of restriction lapsed, the marketability discount reduced to zero and increased the fair value of the warrants. There were no significant unobservable inputs used in the fair value measurement of the Company's warrant liabilities as of December 31, 2017 . The estimated fair values of HHC's financial instruments that are not measured at fair value on a recurring basis are as follows: December 31, 2018 December 31, 2017 (In thousands) Fair Value Carrying Estimated Carrying Estimated Assets: Cash and Restricted cash Level 1 $ 724,215 $ 724,215 $ 914,165 $ 914,165 Accounts receivable, net (a) Level 3 12,589 12,589 13,041 13,041 Notes receivable, net (b) Level 3 4,694 4,694 5,864 5,864 Liabilities: Fixed-rate debt (c) Level 2 1,663,875 1,608,635 1,526,875 1,554,766 Variable-rate debt (c) Level 2 1,551,336 1,551,336 1,350,914 1,350,914 (a) Accounts receivable, net is shown net of an allowance of $10.7 million and $9.3 million at December 31, 2018 and 2017 , respectively. (b) Notes receivable, net is shown net of an allowance of $0.1 million at December 31, 2018 and 2017 . (c) Excludes related unamortized financing costs. The fair value of the Company's 2025 Notes, included in fixed-rate debt in the table above, is based upon the trade price closest to the end of the period presented. The fair value of other fixed-rate debt in the table above (please refer to Note 7 - Mortgages, Notes and Loans Payable, Net ), was estimated based on a discounted future cash payment model, which includes risk premiums and a risk free rate derived from the current LIBOR or U.S. Treasury obligation interest rates. The discount rates reflect the Company's judgment as to what the approximate current lending rates for loans or groups of loans with similar maturities and credit quality would be if credit markets are operating efficiently and assuming that the debt is outstanding through maturity. The carrying amounts for the Company's variable-rate debt approximate fair value given that the interest rates are variable and adjust with current market rates for instruments with similar risks and maturities. The carrying amounts of cash and cash equivalents and accounts receivable approximate fair value because of the short‑term maturity of these instruments. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to interest rate risk related to its variable interest rate debt, and it manages this risk by utilizing interest rate derivatives. To add stability to interest costs by reducing the Company's exposure to interest rate movements, the Company uses interest rate swaps, collars and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company's fixed‑rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above an established ceiling rate and payment of variable amounts to a counterparty if interest rates fall below an established floor rate, in exchange for an up‑front premium. No payments or receipts are exchanged on interest rate collar contracts unless interest rates rise above or fall below the established ceiling and floor rates. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up‑front premium. The Company's interest rate caps are not currently designated as hedges, and therefore, any gain or loss is recognized in current period earnings. These derivatives are recorded on a gross basis at fair value on the balance sheet. Assessments of hedge effectiveness are performed quarterly using regression analysis. The change in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in Accumulated Other Comprehensive Income (“ AOCI ”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings within the same income statement line item being hedged. During the year ended December 31, 2017 , the ineffective portion recorded in Other (loss) income, net was $0.7 million and during the year ended December 31, 2016 , the ineffective portion recorded in Other (loss) income, net was insignificant. As discussed in Note 1 - Summary of Significant Accounting Policies, the Company reclassified ineffectiveness recorded in 2017 and prior to Accumulated deficit as of January 1, 2018, upon adoption of ASU 2017-12. HHC is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company evaluates counterparty credit risk through monitoring the creditworthiness of counterparties, which includes review of debt ratings and financial performance. To mitigate its credit risk, the Company enters into agreements with counterparties that are considered credit-worthy, such as large financial institutions with favorable credit ratings. As of December 31, 2018 and 2017 , there were no events of default related to the interest rate swaps. If the derivative contracts are terminated prior to their maturity, the amounts previously recorded in AOCI are recognized into earnings over the period that the hedged transaction impacts earnings. If the hedging relationship is discontinued because it is probable that the forecasted transaction will not occur in accordance with the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. During the year ended December 31, 2018 , the Company recorded $1.2 million reduction in Interest expense related to missed forecasts and the amortization of terminated swaps, as discussed below. During the year ended December 31, 2018 , the Company settled four interest rate swap agreements with notional amounts of $18.9 million , $250.0 million , $40.0 million and $119.4 million , all designated as cash flow hedges of interest rate variability, and received total payments of $15.8 million , net of a termination fee of $0.3 million . The Company has deferred the effective portion of the fair value changes of three interest rate swap agreements in Accumulated other comprehensive income (loss) on the accompanying Consolidated Balance Sheets and will recognize the impact as a component of interest expense, net, over the next 9.0 , 1.3 and 2.7 years, which are the original forecasted periods. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable‑rate debt. Over the next 12 months, HHC estimates that an additional $0.9 million of net gains will be reclassified to interest expense. The following table summarizes certain terms of the Company's derivative contracts: Fixed Fair Value Asset (Liability) Notional Interest Effective Maturity December 31, December 31, (In thousands) Balance Sheet Location Amount Rate (a) Date Date 2018 2017 Derivative instruments not designated as hedging instruments: Interest Rate Cap (b) Prepaid expenses and other assets, net $ 75,000 5.00 % 9/1/2017 8/31/2019 $ — $ — Interest Rate Cap (b) Prepaid expenses and other assets, net 230,000 2.50 % 12/22/2016 12/23/2019 333 164 Derivative instruments designated as hedging instruments: Interest Rate Swap (c) Accounts payable and accrued expenses 18,926 2.96 % 5/10/2011 10/31/2019 — (286 ) Interest Rate Swap (d) Prepaid expenses and other assets, net 40,000 1.66 % 5/6/2015 5/1/2020 — 299 Interest Rate Swap (d) Prepaid expenses and other assets, net 119,359 1.14 % 10/3/2016 9/12/2021 — 4,007 Interest Rate Swap (e) Accounts payable and accrued expenses 50,000 2.65 % 12/31/2017 12/31/2027 — (1,124 ) Interest Rate Swap (e) Accounts payable and accrued expenses 100,000 2.68 % 12/31/2017 12/31/2027 — (2,509 ) Interest Rate Swap (e) Accounts payable and accrued expenses 100,000 2.62 % 12/31/2017 12/31/2027 — (2,042 ) Interest Rate Collar (f) Prepaid expenses and other assets, net 51,592 1.50% - 2.50% 7/1/2018 5/1/2019 13 — Interest Rate Collar (f) Accounts payable and accrued expenses 193,967 2.00% - 3.00% 5/1/2019 5/1/2020 (37 ) — Interest Rate Collar (f) Accounts payable and accrued expenses 354,217 2.25% - 3.25% 5/1/2020 5/1/2021 (730 ) — Interest Rate Collar (f) Accounts payable and accrued expenses 381,404 2.75% - 3.50% 5/1/2021 4/30/2022 (1,969 ) — Interest Rate Swap (g) Accounts payable and accrued expenses 615,000 2.96 % 9/21/2018 9/18/2023 (13,781 ) — Total fair value derivative assets $ 346 $ 4,470 Total fair value derivative liabilities $ (16,517 ) $ (5,961 ) (a) These rates represent the strike rate on HHC's interest swaps, caps and collars. (b) Interest (income) expense of $(0.2) million is included in the Consolidated Statements of Operations for the year ended December 31, 2018 related to these contracts. (c) On January 19, 2018, the Company repaid in full the $18.9 million mortgage loan for 110 North Wacker and settled the related swap liability of $0.3 million. (d) On September 21, 2018, the Company settled $40.0 million and $119.4 million in interest rate swaps. (e) On May 17, 2018, the Company settled $250.0 million in forward starting swaps. (f) On May 17, 2018 and May 18, 2018, the Company entered into interest rate collars which are designated as cash flow hedges. (g) Concurrent with the funding of the new $615.0 million Term Loan discussed in Note 7 - Mortgages, Notes and Loans Payable, Net , on September 21, 2018, the Company entered into this interest rate swap which is designated as a cash flow hedge. The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 : Amount of Gain (Loss) Recognized in AOCI on Derivative December 31, Derivatives in Cash Flow Hedging Relationships 2018 2017 2016 Interest rate derivatives $ 2,090 $ (726 ) $ 831 Amount of Gain (Loss) Reclassified from AOCI into Operations December 31, Location of Loss Reclassified from AOCI into Operations 2018 2017 2016 Interest expense $ 1,135 $ (905 ) $ (1,364 ) Total Interest Expense Presented in the Results of Operations in which the Effects of Cash Flow Hedges are Recorded December 31, Interest Expense Presented in Results of Operations 2018 2017 2016 Interest expense $ 82,028 $ 64,568 $ 65,724 Credit-risk-related Contingent Features The Company has agreements with certain derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of December 31, 2018 and 2017 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $18.2 million and $6.0 million , respectively. As of December 31, 2018 , the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at December 31, 2018 , it could have been required to settle its obligations under the agreements at their termination value of $18.2 million . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the normal course of business, from time to time, the Company is involved in legal proceedings relating to the ownership and operations of its properties. In addition, on June 14, 2018, the Company was served with a petition involving approximately 500 individuals or entities who claim that their properties, located in the Timarron Park neighborhood of The Woodlands, were damaged by flood waters that resulted from the unprecedented rainfall that occurred throughout Harris County and surrounding areas during Hurricane Harvey in August 2017. The complaint was filed in State Court in Harris County of the State of Texas. In general, the plaintiffs allege negligence in the development of Timarron Park and violations of Texas’ Deceptive Trade Practices Act and name as defendants The Howard Hughes Corporation, The Woodlands Land Development Company and two unaffiliated parties involved in the planning and engineering of Timarron Park. The Company intends to vigorously defend the matter as it believes that these claims are baseless and without merit and that it has substantial legal and factual defenses to the claims and allegations contained in the complaint. Based upon the present status of this matter, the Company does not believe it is probable that a loss will be incurred. Accordingly, the Company has not recorded a charge as a result of this action. In management’s opinion, the liabilities, if any, that may ultimately result from normal course of business legal actions, and the Woodlands legal proceeding discussed above, are not expected to have a material effect on HHC's consolidated financial position, results of operations or liquidity. As of December 31, 2018 and December 31, 2017, the Company had outstanding letters of credit and a guarantee totaling $15.3 million and $13.8 million and surety bonds totaling $101.2 million and $88.5 million , respectively. These letters of credit, guarantee and bonds were issued primarily in connection with insurance requirements, special real estate assessments and construction obligations. The Company leases land or buildings at certain properties from third parties. Rental payments are expensed as incurred and, to the extent applicable, have been straight-lined over the term of the lease. Contractual rental expense, including participation rent, was $9.7 million , $8.6 million and $8.4 million for the years ended December 31, 2018 , 2017 and 2016, respectively. The amortization of above and below‑market ground leases and straight‑line rents included in the contractual rent amount was not significant. HHC's obligations for minimum rentals under non-cancelable operating leases are as follows: Subsequent/ (In thousands) 2019 2020 2021 2022 2023 Other Total Ground lease and other leasing commitments $ 8,199 $ 7,871 $ 7,380 $ 6,713 $ 8,380 $ 291,611 $ 330,154 The Company has entered into guarantee agreements as part of certain development projects. In conjunction with the execution of the ground lease for the Seaport District NYC, the Company executed a completion guarantee for the redevelopment of Seaport District NYC - Pier 17 and Seaport District NYC - Tin Building. As part of the Funding Agreement for the Downtown Columbia Redevelopment District TIF bonds, one of HHC's wholly-owned subsidiaries has agreed to complete certain defined public improvements and to indemnify Howard County, Maryland for certain matters. The Company has guaranteed these obligations, with a limit of $1.0 million , expiring on October 31, 2020. To the extent that increases in taxes do not cover debt service payments on the TIF bonds, HHC’s wholly-owned subsidiary is obligated to pay special taxes. The Company evaluates the likelihood of future performance under these guarantees and did not record an obligation as of December 31, 2018 and December 31, 2017. |
STOCK-BASED PLANS
STOCK-BASED PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED PLANS | STOCK BASED PLANS On November 9, 2010 , HHC adopted The Howard Hughes Corporation Amended and Restated 2010 Incentive Plan (the “ Incentive Plan ”). Pursuant to the Incentive Plan , 3,698,050 shares of HHC common stock were reserved for issuance. New shares are issued on exercise of options. The Incentive Plan provides for grants of options, stock appreciation rights, restricted stock, other stock‑based awards and market‑based compensation. Directors, employees and consultants of HHC and its subsidiaries and affiliates are eligible for awards. The Incentive Plan is administered by the Compensation Committee of the Board of Directors (the “ Committee ”). Option grant amounts are awarded by the Committee . Compensation costs for share‑based payment arrangements totaled $12.1 million , $8.4 million and $9.4 million , of which $2.4 million , $1.1 million and $2.6 million were capitalized for 2018 , 2017 , and 2016 , respectively. As of December 31, 2018 , there were a maximum of 2,199,894 shares available for future grant under the Company's various stock plans. Stock Options The following tables summarize stock option activity: Weighted Average Remaining Aggregate Weighted Average Contractual Term Intrinsic Shares Exercise Price (In years) Value Stock options outstanding at January 1, 2016 1,086,040 $ 77.11 Granted 162,100 109.42 Exercised (3,000 ) 60.33 Forfeited (68,500 ) 122.93 Expired — — Stock options outstanding at December 31, 2016 1,176,640 $ 78.87 Granted 58,000 $ 119.85 Exercised (395,482 ) 58.81 Forfeited (54,976 ) 105.17 Expired (1,000 ) 57.77 Stock options outstanding at December 31, 2017 783,182 $ 90.22 Granted 265,000 $ 124.56 Exercised (183,592 ) 65.72 Forfeited (46,592 ) 121.34 Expired — — Stock options outstanding at December 31, 2018 817,998 $ 105.06 6.3 8,608,841 Stock options exercisable at December 31, 2018 268,298 $ 67.82 3.0 8,524,841 Stock options vested and expected to vest at December 31, 2018 797,320 $ 104.61 6.3 8,607,055 Information related to stock options outstanding as of December 31, 2018 is summarized below: Weighted Average Remaining Number Weighted Average Contractual Term Number Range of Exercise Prices Outstanding Exercise Price (In years) Exercisable $ 46.46 $ 55.82 11,100 $ 49.93 2.8 11,100 $ 57.77 $ 60.33 162,401 57.99 2.3 162,401 $ 61.64 $ 69.75 49,129 66.65 3.4 49,129 $ 81.80 $ 110.50 68,960 101.69 6.2 38,960 $ 112.64 $ 151.72 526,408 124.77 8.0 6,708 817,998 $ 105.06 6.3 268,298 The fair value on the grant date and the significant assumptions used in the Black‑Scholes option‑pricing model are as follows: As of December 31, 2018 2017 2016 Grant date fair value $ 48.27 $ 34.51 $ 36.55 Expected life of options (in years) 8.4 8.4 7.4 Risk-free interest rate 2.7 % 2.2 % 1.8 % Expected volatility 24.7 % 22.8 % 33.1 % Expected annual dividend per share — — — The computation of the expected volatility assumption used in the Black‑Scholes calculations is based on the median asset volatility of comparable companies as of each of the grant dates. Generally, options granted vest over requisite service periods or on a graduated scale based on total shareholder returns, expire ten years after the grant date and generally do not become exercisable until their restrictions on exercise lapse after the five -year anniversary of the grant date. For options that vest based on shareholder returns, the grant date fair values are calculated using a Monte-Carlo approach which simulates the Company's stock price on the corresponding vesting dates before applying the Black-Scholes model. The balance of unamortized stock option expense as of December 31, 2018 is $15.3 million , which is expected to be recognized over a weighted‑average period of 5.1 years. Net of amounts capitalized relating to the Company's developments, $2.2 million , $1.6 million and $2.9 million of expense associated with stock options are included in General and administrative expense in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 , respectively. Restricted Stock Restricted stock awards issued under the Incentive Plan provide that shares awarded may not be sold or otherwise transferred until restrictions have lapsed as established by the Committee . In addition to the granting of restricted stock to certain members of management, the Company awards restricted stock to non‑employee directors as part of their annual retainer. The management awards vest over five years , and the restriction on the non‑employee director shares lapses on the date of the Company's annual meeting of shareholders, or June 1 st of the award year, whichever is earlier. Generally, upon termination of employment or directorship, restricted stock units and restricted shares which have not vested are forfeited. The following table summarizes restricted stock activity: Weighted Average Grant Date Shares Fair Value Restricted stock outstanding at January 1, 2016 242,556 $ 100.15 Granted 136,198 67.80 Vested (37,670 ) 83.47 Forfeited (51,972 ) 90.14 Restricted stock outstanding at December 31, 2016 289,112 $ 88.88 Granted 177,708 85.88 Vested (68,819 ) 88.58 Forfeited (43,482 ) 76.10 Restricted stock outstanding at December 31, 2017 354,519 $ 89.00 Granted 142,332 83.09 Vested (52,479 ) 124.50 Forfeited (37,828 ) 91.71 Restricted stock outstanding at December 31, 2018 406,544 $ 82.10 The grant date fair value of restricted stock is based on the closing sales price of common stock on the grant date. For restricted stock awards that vest based on shareholder returns, the grant date fair values are calculated using a Monte-Carlo approach which simulates the Company's stock price on the corresponding vesting dates before applying the Black-Scholes model. Net of amounts capitalized relating to the Company's developments, HHC recognized compensation expense related to restricted stock awards of $7.5 million , $5.7 million and $4.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, included in General and Administrative expense in the accompanying Consolidated Statements of Operations. The fair value of restricted stock that vested during 2018 was $5.5 million . The balance of unamortized restricted stock expense as of December 31, 2018 was $21.6 million , which is expected to be recognized over a weighted‑average period of 3.8 years . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, President Trump signed into law the Tax Act that significantly changes the United States federal income tax system. The Tax Act includes a number of changes in existing law including a permanent reduction in the federal income tax rate from 35% to 21% . The rate reduction took effect on January 1, 2018. As a result of the reduction in the federal income tax rate to 21% and other changes under the Tax Act that impact timing differences, the Company recorded a one-time transitional tax benefit of $101.7 million in its consolidated statement of operations related to the remeasurement of its net deferred tax liabilities. As of December 31, 2017, the Company had not fully completed its accounting for the tax effects of the Tax Act. Accordingly, the Company's provision for income taxes for the year ended December 31, 2017 was based in part on a reasonable estimate of the effects on its transition tax and existing deferred tax balances. The Company completed its analysis of the effects of the Tax Act in 2018 based upon the guidance, interpretations and data available as of December 31, 2018, and there were no additional adjustments of significance. Deferred income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates currently in effect. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. The provision for (benefit from) income taxes for the years ended December 31, 2018, 2017 and 2016 were as follows: (In thousands) 2018 2017 2016 Current $ (703 ) $ (2,338 ) $ 4,752 Deferred 16,195 (43,463 ) 113,698 Total $ 15,492 $ (45,801 ) $ 118,450 Income tax expense is computed by applying the Federal corporate tax rate for the years ended December 31, 2018, 2017 and 2016 and is reconciled to the provision for income taxes as follows: (In thousands) 2018 2017 2016 Tax at statutory rate on earnings from continuing operations before income taxes $ 15,226 $ 42,911 $ 112,264 Increase (decrease) in valuation allowance, net 8,033 (175 ) (1,326 ) State income taxes, net of Federal income tax benefit (4,933 ) 1,408 4,004 Tax benefit from Tax Act — (101,688 ) — Tax (benefit) expense from other change in rates, prior period adjustments and other permanent differences (1,292 ) 2,941 (4,591 ) Tax benefit on equity compensation (1,490 ) (6,403 ) — Tax expense on compensation disallowance 1,168 — — Tax benefit on historic tax credit (1,220 ) — — Non-deductible warrant liability loss — 15,205 8,544 Uncertain tax position benefit excluding interest — — (407 ) Uncertain tax position interest, net of Federal income tax benefit — — (38 ) Income tax expense (benefit) $ 15,492 $ (45,801 ) $ 118,450 Realization of a deferred tax benefit is dependent upon generating sufficient taxable income in future periods. HHC's net operating loss carryforwards are currently scheduled to expire in subsequent years through 2038 . Some of the net operating loss carryforward amounts are subject to the separate return limitation year rules (“SRLY”). It is possible that in the future the Company could experience a change in control pursuant to Section 382 that could put limits on the benefit of deferred tax assets. On February 27, 2012 , HHC entered into a Section 382 Rights Agreement, with a three -year term, to protect the Company from such an event and protect its deferred tax assets. On February 26, 2015 , the Board of Directors extended the term of the Section 382 Rights Agreement to March 14, 2018 , and HHC's stockholders approved the terms on May 21, 2015 . However, on January 2, 2018 , the Board of Directors approved, and HHC entered into, an amendment to the Section 382 Rights Agreement to provide for an amended expiration date of January 2, 2018 and, as a result, the Section 382 Right Agreement was no longer in effect as of such date. Currently, the Company's deferred tax assets are not protected by a Section 382 Rights Plan. As of December 31, 2018 , the amounts and expiration dates of operating loss and tax credit carryforwards for tax purposes are as follows: Expiration (In thousands) Amount Date Net operating loss carryforwards - Federal $ 145,671 2024-2038 Net operating loss carryforwards - Federal 25,065 n/a Net operating loss carryforwards - State 460,802 2019-2038 Tax credit carryforwards - Federal AMT 3,699 n/a Tax credit carryforwards - Historic Tax Credit 1,610 2038 As of December 31, 2018 and 2017 , the Company had gross deferred tax assets totaling $182.9 million and $172.4 million , and gross deferred tax liabilities of $314.8 million and $316.0 million , respectively. The Company has established a valuation allowance in the amount of $25.3 million and $17.3 million as of December 31, 2018 and 2017 , respectively, against certain deferred tax assets for which it is more likely than not that such deferred tax assets will not be realized. The tax effects of temporary differences and carryforwards included in the net deferred tax liabilities at December 31, 2018 and 2017 are summarized as follows: (In thousands) 2018 2017 Deferred tax assets: Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities $ 83,263 $ 92,210 Interest deduction carryforwards 34,611 29,247 Operating loss and tax credit carryforwards 65,071 50,914 Total deferred tax assets 182,945 172,371 Valuation allowance (25,304 ) (17,271 ) Total net deferred tax assets $ 157,641 $ 155,100 Deferred tax liabilities: Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs $ (146,124 ) $ (157,181 ) Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities (59,517 ) (60,430 ) Deferred income (109,188 ) (98,339 ) Total deferred tax liabilities (314,829 ) (315,950 ) Total net deferred tax liabilities $ (157,188 ) $ (160,850 ) The deferred tax liability associated with the Company's MPCs is largely attributable to the difference between the basis and value determined as of the date of the acquisition by its predecessors in 2004 adjusted for sales that have occurred since that time. The cash cost related to this deferred tax liability is dependent upon the sales price of future land sales and the method of accounting used for income tax purposes. The deferred tax liability related to deferred income is the difference between the income tax method of accounting and the financial statement method of accounting for prior sales of land in the Company's MPCs. Although the Company believes its tax returns are correct, the final determination of tax examinations and any related litigation could be different from what was reported on the returns. In HHC's opinion, the Company has made adequate tax provisions for years subject to examination. Generally, the Company is currently open to audit under the statute of limitations by the Internal Revenue Service as well as state taxing authorities for the years ended December 31, 2015 through 2017. The Company applies the generally accepted accounting principle related to accounting for uncertainty in income taxes, which prescribes a recognition threshold that a tax position is required to meet before recognition in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. HHC recognizes and reports interest and penalties, if applicable, within the provision for income tax expense. The Company did not recognize any interest expense related to the unrecognized tax benefits for the years ended December 31, 2018 , 2017 and 2016. A reconciliation of the change in unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 is as follows: (In thousands) 2018 2017 2016 Unrecognized tax benefits, opening balance $ — $ — $ 36,524 Gross increases - tax positions in prior period — — — Gross decreases - tax positions in prior periods — — (36,524 ) Unrecognized tax benefits, ending balance $ — $ — $ — The reduction in unrecognized tax benefits of $36.5 million in 2016 was the result of the Company filing a request with the IRS to change its tax accounting method related to a subsidiary from an impermissible accounting method to a permissible accounting method. The IRS approved the method change in 2018. Periodically the Company makes payments to taxing jurisdictions that reduce its uncertain tax benefits but are not included in the reconciliation above, as the position is not yet settled. The Company made no such payments in the years ending December 31, 2018 , 2017 or 2016 . As of December 31, 2018 and 2017 , there are no unrecognized tax benefits. |
WARRANTS
WARRANTS | 12 Months Ended |
Dec. 31, 2018 | |
Warrants and Rights Note Disclosure [Abstract] | |
WARRANTS | WARRANTS On November 9, 2010 , the Company entered into warrant agreements with certain funds of Pershing Square Capital Management, L.P. (“ Pershing Square ”) to purchase 1,916,667 shares of common stock at an exercise price of $50.00 per share (the “ Sponsor Warrants ”). Pershing Square exercised its Sponsor Warrants on June 30, 2017 , resulting in a net issuance of 1,136,517 shares in accordance with the warrant provisions. In November 2010 and February 2011 , HHC entered into certain warrant agreements (the “ Management Warrants ”) with David R. Weinreb, the Chief Executive Officer, Grant Herlitz, the President, and Andrew C. Richardson, the former Chief Financial Officer, in each case prior to his appointment to such position, to purchase 2,367,985 , 315,731 and 178,971 shares, respectively, of common stock. The Management Warrants were granted at fair value in exchange for a combined total of approximately $19.0 million in cash from such executives at the commencement of their respective employment. Mr. Weinreb and Mr. Herlitz’s warrants had an exercise price of $42.23 per share, and Mr. Richardson’s warrants had an exercise price of $54.50 per share. Mr. Herlitz exercised his Management Warrants in early January 2017 , resulting in the net issuance of 198,184 shares in accordance with the warrant provisions. Mr. Herlitz also donated 6,850 shares to a charitable trust, which were net share settled for 4,400 shares in accordance with the warrant provisions. In February, March and June 2017 , Mr. Richardson exercised his Management Warrants , resulting in the net issuance of 98,549 shares in accordance with the warrant provisions. In June 2017 , Mr. Weinreb exercised his Management Warrants , resulting in the net issuance of 1,614,803 shares in accordance with the warrant provisions. As of December 31, 2017 , all Sponsor Warrants and Management Warrants have been exercised. The fair values for the Sponsor Warrants and Management Warrants as of December 31, 2016 were recorded as liabilities in the Consolidated Balance Sheets because the holders of these warrants could require the Company to settle such warrants in cash upon a change of control. The estimated fair values for the outstanding Sponsor Warrants and Management Warrants totaled $332.2 million as of December 31, 2016 . The fair values were estimated using an option pricing model and Level 3 inputs due to the unavailability of comparable market data, as further discussed in Note 8 - Fair Value . Decreases and increases in the fair value of the Sponsor Warrants and Management Warrants prior to their settlements in 2017 were recognized as warrant liability gains or losses in the Consolidated Statements of Operations in the years ended December 31, 2017 and 2016 . On October 7, 2016 , HHC entered into a warrant agreement with its new Chief Financial Officer, David R. O’Reilly, prior to his appointment to the position. Upon exercise of Mr. O’Reilly’s warrant, Mr. O’Reilly may acquire 50,125 shares of common stock at an exercise price of $112.08 per share. Mr. O’Reilly’s warrant was issued at fair value in exchange for a $1.0 million payment in cash from Mr. O’Reilly. The O’Reilly Warrant becomes exercisable on April 6, 2022 , subject to earlier exercise upon certain change in control, separation and termination provisions. On June 16, 2017 and October 4, 2017 , HHC also entered into new warrant agreements with Mr. Weinreb and Mr. Herlitz to acquire 1,965,409 shares and 87,951 shares of common stock for the purchase price of $50.0 million and $2.0 million , respectively. Mr. Weinreb’s new warrant becomes exercisable on June 15, 2022 , at an exercise price of $124.64 per share, and Mr. Herlitz’s new warrant becomes exercisable on October 3, 2022 , at an exercise price of $ 117.01 per share, subject to earlier exercise upon certain change in control, separation and termination provisions. The purchase prices paid by the respective executives for the O’Reilly Warrant and Mr. Weinreb’s and Mr. Herlitz’s new warrants, which qualify as equity instruments, are included within additional paid-in capital in the Consolidated Balance Sheets at December 31, 2018 and 2017 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize changes in AOCI by component, all of which are presented net of tax: Balance as of January 1, 2017 $ (6,786 ) Other comprehensive income (loss) before reclassifications (1,084 ) Loss reclassified from accumulated other comprehensive loss to net income 905 Net current-period other comprehensive income (loss) (179 ) Balance as of December 31, 2017 (6,965 ) Other comprehensive income (loss) before reclassifications 2,120 (Gain) loss reclassified from accumulated other comprehensive loss to net income (1,135 ) Adjustment related to adoption of ASU 2018-02 (1,148 ) Adjustment related to adoption of ASU 2017-12 (739 ) Pension adjustment 759 Terminated swap amortization (1,018 ) Net current-period other comprehensive income (loss) (1,161 ) Balance as of December 31, 2018 $ (8,126 ) The following table summarizes the amounts reclassified out of AOCI: Amounts reclassified from Accumulated Other Comprehensive Income (Loss) Components Affected line items in the For the Year Ended (In thousands) Statements of Operations 2018 2017 (Gains) losses on cash flow hedges Interest expense $ (1,437 ) $ 1,443 Interest rate swap contracts Provision for income taxes 302 (538 ) Total reclassifications of (income) loss for the period Net of tax $ (1,135 ) $ 905 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings (loss) per share (“ EPS ”) is computed by dividing net income (loss) available to common stockholders by the weighted‑average number of common shares outstanding. Diluted EPS is computed after adjusting the numerator and denominator of the basic EPS computation for the effects of all potentially dilutive common shares. The dilutive effect of options and nonvested stock issued under stock‑based compensation plans is computed using the treasury stock method. The dilutive effect of the Sponsor Warrants and Management Warrants is computed using the if‑converted method. Gains associated with the changes in the fair value of the Sponsor Warrants and Management Warrants are excluded from the numerator in computing diluted earnings per share because inclusion of such gains in the computation would be anti‑dilutive. Information related to the Company's EPS calculations is summarized as follows: December 31, (In thousands, except per share amounts) 2018 2017 2016 Basic EPS: Numerator: Net income $ 57,726 $ 166,623 $ 202,326 Net income attributable to noncontrolling interests (714 ) 1,781 (23 ) Net income attributable to common stockholders $ 57,012 $ 168,404 $ 202,303 Denominator: Weighted average basic common shares outstanding 43,036 41,364 39,492 Diluted EPS: Numerator: Net income attributable to common stockholders $ 57,012 $ 168,404 $ 202,303 Denominator: Weighted average basic common shares outstanding 43,036 41,364 39,492 Restricted stock and stock options 201 279 343 Warrants — 1,446 2,894 Weighted average diluted common shares outstanding 43,237 43,089 42,729 Basic income per share: $ 1.32 $ 4.07 $ 5.12 Diluted income per share: $ 1.32 $ 3.91 $ 4.73 The diluted EPS computation as of December 31, 2018 excludes 425,908 stock options because their inclusion would have been anti-dilutive and 205,979 shares of restricted stock because certain stock price conditions provided for in the restricted stock awards have not been satisfied. The diluted EPS computation as of December 31, 2017 excludes 313,500 stock options because their inclusion would have been anti-dilutive and 161,155 shares of restricted stock because certain stock price conditions provided for in the restricted stock awards have not been satisfied. The diluted EPS computation as of December 31, 2016 excludes 379,500 stock options because their inclusion would have been anti‑dilutive and 130,286 shares of restricted stock because certain stock price conditions provided for in the restricted stock awards have not been satisfied. On February 23, 2018 , the Company repurchased 475,920 shares of its common stock, par value $0.01 per share, in a private transaction with an unaffiliated entity at a purchase price of $120.33 per share, or approximately $57,267,453 in the aggregate. The repurchase transaction was consummated on February 21, 2018 , and was funded with cash on hand. |
RENTALS UNDER OPERATING LEASES
RENTALS UNDER OPERATING LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
RENTALS UNDER OPERATING LEASES | RENTALS UNDER OPERATING LEASES HHC receives rental income from the leasing of retail, office, multi-family and other space under operating leases. Such operating leases are with a variety of tenants. The minimum future rentals based on operating leases of the consolidated properties held as of December 31, 2018 are as follows: Total Minimum Year Rent (In thousands) 2019 $ 186,342 2020 186,044 2021 194,042 2022 201,057 2023 181,622 Subsequent 1,110,260 Total $ 2,059,367 Minimum future rentals exclude amounts which are payable by certain tenants based upon a percentage of their gross sales or as reimbursement of operating expenses and amortization of above-market and below‑market tenant leases. Percentage rent in lieu of fixed minimum rent recognized from tenants for the years ended December 31, 2018, 2017 and 2016 was $1.2 million , $1.5 million and $2.4 million , respectively. Overage rent of approximately $2.5 million , $2.8 million and $3.6 million for the years ended December 31, 2018, 2017 and 2016 , respectively, are included in Other rental and property revenues in the Consolidated Statements of Operations. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS The Company has three business segments which offer different products and services. HHC's three segments are managed separately because each requires different operating strategies or management expertise and are reflective of management’s operating philosophies and methods. As further discussed in Item 7, one common operating measure used to assess operating results for HHC's business segments is earnings before taxes ("EBT"). HHC's segments or assets within such segments could change in the future as development of certain properties commences or other operational or management changes occur. The Company does not distinguish or group the combined operations on a geographic basis. Furthermore, all operations are within the United States. The Company's reportable segments are as follows: • MPC – consists of the development and sale of land in large‑scale, long‑term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Columbia, Maryland. • Operating Assets – consists of retail, office, hospitality and multi-family properties along with other real estate investments. These assets are currently generating revenues and are comprised of commercial real estate properties recently developed or acquired, and properties with an opportunity to redevelop, reposition or sell to improve segment performance or to recycle capital. • Strategic Developments – consists of residential condominium and commercial property projects currently under development and all other properties held for development which have no substantial operations. Effective January 1, 2017 , the Company moved certain Seaport District assets under construction and related activities to the Strategic Developments segment from the Operating Assets segment. Seaport District operating properties and related operating results remain presented within the Operating Assets segment. The respective segment earnings and total segment assets presented in the financial statements and elsewhere in this Annual Report have been adjusted in all periods reported to reflect this change. Segment operating results for the years ended December 31, 2018, 2017 and 2016 are as follows: Year Ended Year Ended December 31, (In thousands) 2018 2017 2016 Operating Assets Total revenues $ 379,124 $ 327,555 $ 295,165 Total operating expenses 200,872 170,215 151,938 Segment operating income 178,252 157,340 143,227 Depreciation and amortization 113,576 122,421 86,313 Provision for impairment — — 35,734 Interest expense (income), net 71,551 61,584 50,427 Other loss (income), net 7,005 315 (4,601 ) Equity in (earnings) loss from Real Estate and Other Affiliates (1,529 ) (3,267 ) (2,802 ) Operating Assets segment EBT (12,351 ) (23,713 ) (21,844 ) Master Planned Communities Total revenues 309,451 299,543 253,304 Total operating expenses 169,474 159,895 138,098 Segment operating income 139,977 139,648 115,206 Depreciation and amortization 243 323 311 Interest expense (income), net (26,919 ) (24,292 ) (21,085 ) Other loss (income), net (18 ) (3,500 ) — Equity in (earnings) loss from Real Estate and Other Affiliates (36,284 ) (23,234 ) (43,501 ) MPC segment EBT 202,955 190,351 179,481 Strategic Developments Total revenues 375,962 473,022 486,536 Total operating expenses 304,775 361,562 327,627 Segment operating income 71,187 111,460 158,909 Depreciation and amortization 3,307 1,210 2,744 Interest expense (income), net (18,767 ) (25,467 ) (17,437 ) Other loss (income), net (3,015 ) (108 ) (611 ) Equity in (earnings) loss from Real Estate and Other Affiliates (2,124 ) 550 (10,515 ) Gains on sales of properties — (51,242 ) (140,549 ) Strategic Developments EBT 91,786 186,517 325,277 Consolidated segment Total revenues 1,064,537 1,100,120 1,035,005 Total operating expenses 675,121 691,672 617,663 Segment operating income 389,416 408,448 417,342 Depreciation and amortization 117,126 123,954 89,368 Provision for impairment — — 35,734 Interest expense (income), net 25,865 11,825 11,905 Other loss (income), net 3,972 (3,293 ) (5,212 ) Equity in (earnings) loss from Real Estate and Other Affiliates (39,937 ) (25,951 ) (56,818 ) Gains on sales of properties — (51,242 ) (140,549 ) Consolidated segment EBT 282,390 353,155 482,914 Corporate expenses and other items 224,664 186,532 280,588 Net income 57,726 166,623 202,326 Net (income) loss attributable to noncontrolling interests (714 ) 1,781 (23 ) Net income attributable to common stockholders $ 57,012 $ 168,404 $ 202,303 The assets by segment and the reconciliation of total segment assets to the total assets in the Consolidated Balance Sheets are summarized as follows: December 31, (In thousands) 2018 2017 Master Planned Communities $ 2,076,678 $ 1,999,090 Operating Assets 3,124,287 2,489,177 Strategic Developments 1,806,206 1,511,612 Total segment assets 7,007,171 5,999,879 Corporate and other 348,628 729,185 Total assets $ 7,355,799 $ 6,729,064 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) 2018 First Second Third Fourth (In thousands, except share amounts) Quarter Quarter Quarter Quarter Total revenues $ 161,679 $ 181,005 $ 257,160 $ 464,693 Operating income 2,539 (8,295 ) 42,312 70,254 Net income 1,834 (5,879 ) 23,847 37,924 Net income attributable to common stockholders 1,474 (5,088 ) 23,365 37,261 Earnings per share: Basic 0.03 (0.12 ) 0.54 0.87 Diluted (a) 0.03 (0.12 ) 0.54 0.86 Weighted average shares outstanding: Basic 42,976 42,573 43,066 43,075 Diluted 43,363 42,942 43,317 43,250 2017 First Second Third Fourth (In thousands, except share amounts) Quarter Quarter Quarter Quarter Total revenues $ 231,762 $ 308,639 $ 258,736 $ 300,983 Operating income 77,554 54,133 24,372 62,443 Net income 5,659 3,120 10,516 147,328 Net income attributable to common stockholders 5,659 3,120 10,504 149,121 Earnings per share: Basic 0.14 0.08 0.25 3.48 Diluted (a) 0.13 0.07 0.24 3.46 Weighted average shares outstanding: Basic 39,799 40,373 42,845 42,860 Diluted 42,757 43,051 43,267 43,120 (a) Diluted earnings per share includes the impact of dilutive warrants, in the money options and restricted stock. Net income used in the calculation of EPS was also adjusted for the warrant gain during the period, where applicable. |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2018 Initial Cost (b) Costs Capitalized Subsequent to Acquisition (c) Gross Amounts at Which Carried at Close of Period (d) Buildings Buildings Buildings Date (In thousands) and and and Accumulated Date of Acquired / Name of Center Location Center Type Encumbrances (a) Land Improvements Land (e) Improvements (e)(f) Land Improvements (f) Total Depreciation (g) Construction Completed Bridgeland Bridgeland Cypress, TX MPC $ 65,000 $ 260,223 $ — $ 213,628 $ 2,217 $ 473,851 $ 2,217 $ 476,068 $ (686 ) 2004 Lakeland Village Center at Bridgeland (h) Cypress, TX Retail 14,135 2,404 11,135 — 2,919 2,404 14,054 16,458 (853 ) 2016 Lakeside Row Cypress, TX Development — — — — 14,063 — 14,063 14,063 — 2018 Columbia American City Building Columbia, MD Other — — 13,534 — — — 13,534 13,534 — 2016 10 - 70 Columbia Corporate Center (h) Columbia, MD Office 99,184 24,685 94,824 — 23,385 24,685 118,209 142,894 (16,471 ) 2012/2014 Columbia Office Properties Columbia, MD Office — 1,175 14,913 — 264 1,175 15,177 16,352 (5,512 ) 1969/1972 Columbia Regional Building Columbia, MD Office 25,000 — 28,865 — 2,294 — 31,159 31,159 (3,995 ) 2014 Columbia Multi-family Columbia, MD Development — — — — 49,189 — 49,189 49,189 — 2018 Lakefront Columbia, MD Other — — 1,964 — 1,258 — 3,222 3,222 — 2004 Columbia Columbia, MD MPC — 457,552 — (440,918 ) 137 16,634 137 16,771 (137 ) 2004 Merriweather District Columbia, MD Development — — — — 104,126 — 104,126 104,126 — 2015 6100 Merriweather Columbia, MD Development — — — — — — — — — 2018 One Mall North (h) Columbia, MD Office 12,425 7,822 10,818 — 247 7,822 11,065 18,887 (644 ) 2016 One Merriweather (h) Columbia, MD Office 42,008 1,433 58,936 — 13,809 1,433 72,745 74,178 (3,600 ) 2017 Two Merriweather Columbia, MD Office 24,000 1,019 4,931 — 28,085 1,019 33,016 34,035 (1,055 ) 2017 Ridgely Building Columbia, MD Development — 400 58,937 (400 ) (58,537 ) — 400 400 — 2017 Sterrett Place Columbia, MD Development — — 5,618 — — — 5,618 5,618 (16 ) 2018 Seaport District 85 South Street New York, NY Multi-family — 15,913 8,137 — 1,211 15,913 9,348 25,261 (2,629 ) 2014 Seaport Predevelopment New York, NY Development — — 7,641 — 1,173 — 8,814 8,814 — 2013 Seaport District NYC - Tin Building New York, NY Development — — 8,290 — 27,465 — 35,755 35,755 — 2015 Seaport District NYC - Pier 17 New York, NY Retail — — — — 430,756 — 430,756 430,756 (5,081 ) 2017 2018 Seaport District NYC Historic District / Uplands New York, NY Retail — — 7,884 — 108,568 — 116,452 116,452 (8,943 ) 2013 2016 250 Water Street New York, NY Development 129,723 — 179,471 — — — 179,471 179,471 — 2018 Summerlin Aristocrat (i) Las Vegas, NV Office 21,334 — — 5,004 31,875 5,004 31,875 36,879 (244 ) 2017 2018 Constellation Las Vegas, NV Multi-family 24,200 3,069 39,759 — 270 3,069 40,029 43,098 (1,426 ) 2016 Downtown Summerlin (i) (j) Las Vegas, NV Retail/Office 269,407 30,855 364,100 — 33,281 30,855 397,381 428,236 (57,768 ) 2014 Hockey Ground Lease (i) Las Vegas, NV Other 141 — — 6,705 2,198 6,705 2,198 8,903 (73 ) 2017 Las Vegas Aviators Las Vegas, NV Other — — 179 — 55 — 234 234 (85 ) 2017 TWO Summerlin (i) Las Vegas, NV Office 14,535 — — 3,037 46,907 3,037 46,907 49,944 (276 ) 2017 2018 Summerlin Las Vegas, NV MPC 11,608 990,179 — (160,272 ) 759 829,907 759 830,666 (252 ) 2004 Summerlin Ballpark (i) Las Vegas, NV Development 27,110 — — — 61,254 — 61,254 61,254 — 2017 Tanager Apartments (i) Las Vegas, NV Development 281 — — — 39,192 — 39,192 39,192 — 2017 The Woodlands Creekside Park Apartments The Woodlands, TX Multi-family — — — 729 39,728 729 39,728 40,457 (292 ) 2017 2018 Creekside Park West The Woodlands, TX Development — — — — 3,408 — 3,408 3,408 — 2018 Initial Cost (b) Costs Capitalized Subsequent to Acquisition (c) Gross Amounts at Which Carried at Close of Period (d) Buildings Buildings Buildings Date (In thousands) and and and Accumulated Date of Acquired / Name of Center Location Center Type Encumbrances (a) Land Improvements Land (e) Improvements (e)(f) Land Improvements (f) Total Depreciation (g) Construction Completed Creekside Village Green The Woodlands, TX Retail 17,051 — — 1,323 16,290 1,323 16,290 17,613 (2,248 ) 2015 Embassy Suites at Hughes Landing (h) The Woodlands, TX Hospitality 27,970 — 6,752 1,818 36,339 1,818 43,091 44,909 (4,566 ) 2015 100 Fellowship Drive The Woodlands, TX Development 35,481 — — — 56,560 — 56,560 56,560 — 2017 HHC 242 Self-Storage The Woodlands, TX Other 6,604 878 6,802 — 1,106 878 7,908 8,786 (394 ) 2017 HHC 2978 Self-Storage The Woodlands, TX Other 6,042 124 5,498 — 2,063 124 7,561 7,685 (343 ) 2017 One Hughes Landing The Woodlands, TX Office 52,000 1,678 34,761 — (121 ) 1,678 34,640 36,318 (8,075 ) 2013 Two Hughes Landing The Woodlands, TX Office 48,000 1,269 34,950 — (323 ) 1,269 34,627 35,896 (7,623 ) 2014 Three Hughes Landing (h) The Woodlands, TX Office 55,759 2,626 46,372 — 28,403 2,626 74,775 77,401 (4,613 ) 2016 1725 Hughes Landing Boulevard (h) The Woodlands, TX Office 56,773 1,351 36,764 — 31,618 1,351 68,382 69,733 (10,270 ) 2015 1735 Hughes Landing Boulevard (h) The Woodlands, TX Office 54,568 3,709 97,651 — 916 3,709 98,567 102,276 (13,531 ) 2015 Hughes Landing Daycare The Woodlands, TX Development — — — — 512 — 512 512 — 2018 Hughes Landing Retail The Woodlands, TX Retail 35,000 5,184 — — 32,985 5,184 32,985 38,169 (4,595 ) 2015 1701 Lake Robbins The Woodlands, TX Office 3,658 1,663 3,725 — 409 1,663 4,134 5,797 (429 ) 2014 Lake Woodlands Crossing Retail The Woodlands, TX Retail 9,539 — — 5,122 8,598 5,122 8,598 13,720 (87 ) 2017 2018 2201 Lake Woodlands Drive The Woodlands, TX Office — 3,755 — — 1,162 3,755 1,162 4,917 (41 ) 1994 Lakefront North The Woodlands, TX Office 21,120 10,260 39,357 — 331 10,260 39,688 49,948 (330 ) 2018 One Lakes Edge The Woodlands, TX Multi-family 69,440 1,057 81,768 — (71 ) 1,057 81,697 82,754 (7,887 ) 2015 Two Lakes Edge The Woodlands, TX Development — — — — 18,583 — 18,583 18,583 — 2018 Millennium Six Pines Apartments The Woodlands, TX Multi-family 42,500 4,000 54,624 7,225 102 11,225 54,726 65,951 (4,820 ) 2014 Millennium Waterway Apartments The Woodlands, TX Multi-family 54,083 15,917 56,002 — 2,261 15,917 58,263 74,180 (15,241 ) 2010 9303 New Trails The Woodlands, TX Office 11,610 1,929 11,915 — 422 1,929 12,337 14,266 (2,406 ) 2008 3831 Technology Forest Drive The Woodlands, TX Office 21,571 514 14,194 — 1,703 514 15,897 16,411 (3,224 ) 2014 20/25 Waterway Avenue The Woodlands, TX Retail 13,395 2,346 8,871 — 726 2,346 9,597 11,943 (2,418 ) 2007/2009 Waterway Garage Retail The Woodlands, TX Retail — 1,341 4,255 — 1,105 1,341 5,360 6,701 (1,239 ) 2011 3 Waterway Square The Woodlands, TX Office 49,013 748 — — 42,008 748 42,008 42,756 (10,955 ) 2013 4 Waterway Square The Woodlands, TX Office 33,998 1,430 51,553 — 6,176 1,430 57,729 59,159 (13,231 ) 2010 The Westin at the Woodlands (h) The Woodlands, TX Hospitality 41,793 22,473 — (20,520 ) 92,380 1,953 92,380 94,333 (7,990 ) 2016 The Woodlands The Woodlands, TX MPC 150,000 269,411 9,814 (60,419 ) 9,744 208,992 19,558 228,550 (3,507 ) 2011 The Woodlands Parking Garages The Woodlands, TX Other — 5,857 — 1,529 11,837 7,386 11,837 19,223 (1,456 ) 2008/2009 The Woodlands Resort & Conference Center The Woodlands, TX Hospitality 62,500 13,258 37,983 — 78,555 13,258 116,538 129,796 (20,713 ) 2014 2000 Woodlands Parkway The Woodlands, TX Retail — — — — 506 — 506 506 (16 ) 1997 1400 Woodloch Forest The Woodlands, TX Office — — — 1,570 14,519 1,570 14,519 16,089 (4,442 ) 1981 The Woodlands Hills The Woodlands Hills Conroe, TX MPC — 99,284 — 18,702 — 117,986 117,986 — 2014 Ward Village ‘A‘ali‘i Honolulu, HI Development — — — — 28,950 — 28,950 28,950 (1,271 ) 2018 Ae‘o Honolulu, HI Condominium — 9,795 85,046 (9,795 ) (85,046 ) — — — — 2016 2018 Anaha Honolulu, HI Condominium — 5,546 47,450 (5,546 ) (46,470 ) — 980 980 (30 ) 2014 2017 Ke Kilohana Honolulu, HI Development 96,757 2,615 17,784 (2,615 ) 178,679 — 196,463 196,463 — 2016 Kewalo Basin Harbor Honolulu, HI Other 3,499 — — — 17,752 — 17,752 17,752 (343 ) 2017 Waiea Honolulu, HI Condominium — — 20,812 — (15,518 ) — 5,294 5,294 (63 ) 2014 2017 Ward Predevelopment Honolulu, HI Development — — 24,069 — 59,814 — 83,883 83,883 (493 ) 2013 Initial Cost (b) Costs Capitalized Subsequent to Acquisition (c) Gross Amounts at Which Carried at Close of Period (d) Buildings Buildings Buildings Date (In thousands) and and and Accumulated Date of Acquired / Name of Center Location Center Type Encumbrances (a) Land Improvements Land (e) Improvements (e)(f) Land Improvements (f) Total Depreciation (g) Construction Completed Ward Village Retail (h) Honolulu, HI Retail 245,435 164,007 89,321 (76,405 ) 275,643 87,602 364,964 452,566 (70,610 ) 2002 Other Bridges at Mint Hill Charlotte, NC Development — — — — 21,978 — 21,978 21,978 — 2007 Cottonwood Mall Salt Lake City, UT Development — 7,613 42,987 (7,613 ) (21,429 ) — 21,558 21,558 — 2002 Landmark Mall Alexandria, VA Development — 28,396 67,235 (28,396 ) (12,041 ) — 55,194 55,194 (128 ) 2004 Monarch City Dallas, TX Development — 25,575 — (25,575 ) 26,918 — 26,918 26,918 — 2006 110 North Wacker Chicago, IL Development 50,000 — 29,035 — 118,901 — 147,936 147,936 — 1957 Outlet Collection at Riverwalk New Orleans, LA Retail 47,552 — 94,513 — 338 — 94,851 94,851 (15,476 ) 2014 The Elk Grove Collection Elk Grove, CA Development — — — — 10,808 — 10,808 10,808 5 2003 West Windsor Princeton, NJ Development — — — — 27,144 — 27,144 27,144 (9 ) 2004 Total excluding Corporate, Deferred financing costs and 2,202,802 2,512,338 2,081,799 (572,082 ) 2,095,381 1,940,256 4,177,180 6,117,436 (355,146 ) Corporate Various 1,012,409 885 1,027 (885 ) 44,824 — 45,851 45,851 (25,746 ) Unamortized bond issuance costs N/A (6,096 ) — — — — — — — — Deferred financing costs N/A (27,902 ) — — — — — — — — Total $ 3,181,213 $ 2,513,223 $ 2,082,826 $ (572,967 ) $ 2,140,205 $ 1,940,256 $ 4,223,031 $ 6,163,287 $ (380,892 ) (a) See description of Encumbrances in Note 7 - Mortgages, Notes and Loans Payable, Net of the Consolidated Financial Statements . (b) Initial cost for projects undergoing development or redevelopment is cost at end of first complete calendar year subsequent to opening. (c) For retail and other properties, costs capitalized subsequent to acquisitions is net of cost of disposals or other property write‑downs. For MPCs, costs capitalized subsequent to acquisitions are net of the cost of land sales. (d) The aggregate cost of land, building and improvements for federal income tax purposes is approximately $5.0 billion . (e) Reductions in Land reflect transfers to Buildings and Improvements for projects which the Company is internally developing. (f) Includes all amounts related to Developments. (g) Depreciation is computed based upon the useful lives in Note 1 - Summary of Significant Accounting Policies . (h) Property is collateral for the Senior Secured Credit Facility. See Note 7 - Mortgages, Notes and Loans Payable, Net of the Consolidated Financial Statements for additional information. (i) Encumbrances balance either represents or is inclusive of SIDs. See Note 7 - Mortgages, Notes and Loans Payable, Net of the Consolidated Financial Statements for additional information. (j) Downtown Summerlin includes ONE Summerlin office property, which was placed in service in 2015. Reconciliation of Real Estate (In thousands) 2018 2017 2016 Balance at beginning of year $ 5,355,409 $ 4,979,840 $ 4,774,632 Change in land 199,069 93,833 122,446 Additions 1,148,826 790,183 830,896 Impairments — — (35,734 ) Dispositions and write-offs and land and condominium costs of sales (540,017 ) (508,447 ) (712,400 ) Balance at end of year $ 6,163,287 $ 5,355,409 $ 4,979,840 Reconciliation of Accumulated Depreciation (In thousands) 2018 2017 2016 Balance at beginning of year $ 321,882 $ 245,814 $ 232,969 Depreciation Expense 113,518 116,401 81,878 Dispositions and write-offs (54,508 ) (40,333 ) (69,033 ) Balance at end of year $ 380,892 $ 321,882 $ 245,814 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), with all intercompany balances eliminated. The presentation includes the accounts of the Company and those entities in which HHC has a controlling financial interest. The Company also consolidates certain variable interest entities (“VIEs”) in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation (“ASC 810”). The outside equity interests in certain entities controlled by the Company are reflected in the Consolidated Financial Statements as a noncontrolling interest. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The estimates and assumptions include, but are not limited to, revenue recognition accounted for under the percentage of completion method, capitalization of development costs, provision for income taxes, recoverable amounts of receivables and deferred tax assets, initial valuations of tangible and intangible assets acquired and the related useful lives of assets upon which depreciation and amortization is based. Estimates and assumptions have also been made with respect to future revenues and costs, the fair value of warrants, debt and options granted. Actual results could differ from these and other estimates. |
Segments | Segments Segment information is prepared on the same basis that management reviews information for operational decision-making purposes. Management evaluates the performance of each of HHC's real estate assets or investments individually and aggregates such properties into segments based on their economic characteristics and types of revenue streams. The Company operates in three business segments: (i) Operating Assets; (ii) MPC; and (iii) Strategic Developments. |
Investment in Real Estate | Investment in Real Estate Master Planned Community Assets, Land, Buildings and Equipment Real estate assets are stated at cost less any provisions for impairments. Expenditures for significant improvements to the Company's assets are capitalized. Tenant improvements relating to the Company's operating assets are capitalized and depreciated over the shorter of their economic lives or the lease term. Maintenance and repair costs are charged to expense when incurred. The Company periodically reviews the estimated useful lives of properties. Depreciation or amortization expense is computed using the straight‑line method based upon the following estimated useful lives: Asset Type Years Location of Asset Buildings and improvements 7 - 40 Buildings and Equipment Equipment and fixtures 5 - 20 Buildings and Equipment Computer hardware and software, and vehicles 3 - 5 Buildings and Equipment Tenant improvements Lesser of lease term or useful life Buildings and Equipment Leasing costs Related lease term Prepaid expenses and other assets, net From time to time, the Company may reassess the development strategies for certain buildings and improvements which results in changes to the Company's estimate of their remaining useful lives. As a result, the Company recognized an additional $25.5 million , or $0.59 per diluted share, in depreciation expense during the year ended December 31, 2017 due to the change in useful lives of these buildings and improvements. The Company did not recognize additional depreciation expense of significance for the years ended December 31, 2018 and 2016. Developments Development costs, which primarily include direct costs related to placing the asset in service associated with specific development properties, are capitalized as part of the property being developed. Construction and improvement costs incurred in connection with the development of new properties or the redevelopment of existing properties are capitalized before they are placed into service. Costs include planning, engineering, design, direct material, labor and subcontract costs. Real estate taxes, utilities, direct legal and professional fees related to the sale of a specific unit, interest, insurance costs and certain employee costs incurred during construction periods are also capitalized. Capitalization commences when the development activities begin and ceases when a project is completed, put on hold or at the date that the Company decides to not move forward with a project. Capitalized costs related to a project where HHC has determined not to move forward are expensed if they are not deemed recoverable. Capitalized interest costs are based on qualified expenditures and interest rates in place during the construction period. Demolition costs associated with redevelopments are expensed as incurred unless the demolition was included in the Company's development plans and imminent as of the acquisition date of an asset. Once the assets are placed into service, they are depreciated in accordance with HHC's policy. In the event that management no longer has the ability or intent to complete a development, the costs previously capitalized are evaluated for impairment. |
Real Estate and Other Affiliates | Real Estate and Other Affiliates In the ordinary course of business, HHC enters into partnerships or joint ventures primarily for the development and operation of real estate assets which are referred to as “Real Estate and Other Affiliates.” The Company assesses its joint ventures at inception to determine if any meet the qualifications of a VIE. HHC considers a partnership or joint venture a VIE if: (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity); or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810, the Company reassess its initial determination of whether the partnership or joint venture is a VIE. The Company also performs a qualitative assessment of each VIE to determine if HHC is the primary beneficiary. Under ASC 810, a company concludes that it is the primary beneficiary and consolidates the VIE if the company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining if the company is the primary beneficiary. As required by ASC 810, management’s assessment of whether the company is the primary beneficiary of a VIE is continuously performed. The Company accounts for VIEs for which it is not considered to be the primary beneficiary but has significant influence using the equity method, and investments in VIEs where HHC does not have significant influence on the joint venture’s operating and financial policies using the cost method. The Company accounts for investments in joint ventures where it owns a noncontrolling interest using the equity method, and investments in joint ventures where the Company has virtually no influence on the joint venture’s operating and financial policies using the cost method. For cost method investments, the Company recognizes earnings to the extent of distributions received from such investments. Under the equity method, the cost of an investment is adjusted for the Company's share of the equity in earnings or losses of such Real Estate Affiliates from the date of investment and reduced by distributions received. Generally, the operating agreements with respect to Real Estate and Other Affiliates provide that assets, liabilities and funding obligations are shared in accordance with HHC's ownership percentages. The Company generally also shares in the profit and losses, cash flows and other matters relating to its Real Estate and Other Affiliates in accordance with the respective ownership percentages. For certain equity method investments, when the preferences on profit sharing on liquidation rights and priorities differ from the ownership percentages, HHC considers ASC 970 and applies the Hypothetical Liquidation Book Value (“ HLBV ”) m ethod. Under this method, the Company recognizes income or loss based on the change in the underlying share of the venture’s net assets on a hypothetical liquidation basis as of the reporting date. |
Acquisition of Properties | Acquisitions of Properties The Company accounts for the acquisition of real estate properties in accordance with ASC 805 Business Combinations (“ASC 805”). This methodology requires that assets acquired and liabilities assumed be recorded at their fair values on the date of acquisition. Costs directly related to asset acquisitions are considered additions to the purchase price and increase the cost basis recorded for the Investment in Real Estate. Acquisition costs related to the acquisition of a business are expensed as incurred. The fair value of tangible assets of an acquired property (which includes land, buildings and improvements) is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, buildings and improvements based on management’s determination of the fair value of these assets. The “as-if-vacant” values are derived from several sources which incorporate significant unobservable inputs that are classified as Level 3 inputs in the fair value hierarchy and primarily include a discounted cash flow analysis using discount and capitalization rates based on recent comparable market transactions, where available. The fair value of acquired intangible assets consisting of in-place, above-market and below-market leases is recorded based on a variety of considerations, some of which incorporate significant unobservable inputs that are classified as Level 3 inputs in the fair value hierarchy. In-place lease considerations include, but are not necessarily limited to: (1) the value associated with avoiding the cost of originating the acquired in-place leases (i.e., the market cost to execute a lease, including leasing commissions and tenant improvements); (2) the value associated with lost revenue related to tenant reimbursable operating costs incurred during the assumed lease-up period (i.e., real estate taxes, insurance and certain other operating expenses); and (3) the value associated with lost rental revenue from existing leases during the assumed lease-up period. Above-market and below-market leases are valued at the present value, using a discount rate that reflects the risks associated with the leases acquired, of the difference between (1) the contractual amounts to be paid pursuant to the in-place lease; and (2) management’s estimate of current market lease rates, measured over the remaining non-cancelable lease term, including any below-market renewal option periods. |
Impairment | Impairment HHC reviews its long-lived assets (including those held by its Real Estate and Other Affiliates) for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset is not recoverable and exceeds its fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future economic conditions, such as occupancy, rental rates, capital requirements and sales values that could differ materially from actual results in future periods. If impairment indicators exist and it is expected that undiscounted cash flows generated by the asset are less than its carrying amount, less costs to sell in the case of assets classified as held for sale, an impairment provision is recorded to write-down the carrying amount of the asset to its fair value. Impairment indicators for HHC's assets or projects within MPCs are assessed separately and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs or cancellation rates, and projected losses on expected future sales. MPC assets have extended life cycles that may last 20 to 40 years, or longer, and have few long‑term contractual cash flows. Further, MPC assets generally have minimal to no residual values because of their liquidating characteristics. MPC development periods often occur through several economic cycles. Subjective factors such as the expected timing of property development and sales, optimal development density and sales strategy impact the timing and amount of expected future cash flows and fair value. Impairment indicators for Operating Assets are assessed separately for each property and include, but are not limited to, significant decreases in net operating income, significant decreases in occupancy, ongoing low occupancy and significant net operating losses. Impairment indicators for development costs in Strategic Developments are assessed by project and include, but are not limited to, significant changes in projected completion dates, revenues or cash flows, development costs, market factors, significant decreases in comparable property sale prices and feasibility. The cash flow estimates used both for determining recoverability and estimating fair value are inherently judgmental and reflect current and projected trends in rental, occupancy, pricing, development costs, sales pace and capitalization rates, and estimated holding periods for the applicable assets. Although the estimated fair value of certain assets may be exceeded by the carrying amount, a real estate asset is only considered to be impaired when its carrying amount is not expected to be recovered through estimated future undiscounted cash flows. To the extent an impairment provision is necessary, the excess of the carrying amount of the asset over its estimated fair value is expensed to operations. In addition, the impairment provision is allocated proportionately to adjust the carrying amount of the asset. The adjusted carrying amount, which represents the new cost basis of the asset, is depreciated over the remaining useful life of the asset or, for MPCs, is expensed as a cost of sales when land is sold. Assets that have been impaired will in the future have lower depreciation and cost of sale expenses. The impairment will have no impact on cash flow. With respect to HHC's Investment in Real Estate and Other Affiliates, a series of operating losses of an underlying asset or other factors may indicate that a decrease in value has occurred which is other‑than‑temporary. The investment in each Real Estate and Other Affiliates is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other‑than‑temporary. If the decrease in value of an Investment in a Real Estate and Other Affiliates is deemed to be other‑than‑temporary, HHC's investment is reduced to its estimated fair value. In addition to the property‑specific impairment analysis that are performed on the underlying assets of the investment, the Company also considers the ownership, distribution preferences, limitations, and rights to sell and repurchase its ownership interests. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents Cash and Cash Equivalents consist of highly-liquid investments with maturities at date of purchase of three months or less and include registered money market mutual funds which are invested in United States Treasury bills that are valued at the net asset value of the underlying shares in the funds as of the close of business at the end of each period as well as deposits with major banks throughout the United States. Such deposits are in excess of FDIC limits and are placed with high quality institutions in order to minimize concentration of counterparty credit risk. Restricted Cash Restricted cash reflects amounts segregated in escrow accounts in the name of the Company, primarily related to escrowed condominium deposits by buyers and other amounts related to taxes, insurance, and legally restricted security deposits and leasing costs. |
Receivable, net | Accounts Receivable, net Accounts receivable includes tenant rents, tenant recoveries and other receivables. The Company records allowances against its receivables that it considers uncollectible. These allowances are reviewed periodically and are adjusted based on management’s estimate of receivables that will not be realized in subsequent periods. Management exercises judgment in establishing these allowances and considers payment history, current credit status and if the tenant is currently occupying the space in developing these estimates. The following table summarizes the changes in allowance for doubtful accounts against accounts receivables: (In thousands) 2018 2017 2016 Balance as of January 1, $ 9,300 $ 7,799 $ 4,406 Provision for doubtful accounts 6,078 2,710 5,664 Write-offs (4,714 ) (1,209 ) (2,271 ) Balance as of December 31, $ 10,664 $ 9,300 $ 7,799 The increase in the Provision for doubtful accounts for the year ended December 31, 2018 compared to 2017 is primarily due to the reserve for a tenant at Ward Village. For the year ended December 31, 2018 compared to 2017, the increase in Write-offs is primarily due to $3.2 million of increased write-offs for a tenant at Downtown Summerlin and a tenant at the Seaport District. The decrease in the provision for the year ended December 31, 2017 compared to 2016 is primarily due to the reserve for a termination fee for a tenant in 2016 and a delinquent paying tenant in 2016 at another property. Notes Receivable, net Notes receivable, net includes non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, they are recorded at amortized cost less any provision for impairment. The Company evaluates its notes receivable for impairment when it is probable the payment of interest and principal will not be made in accordance with the contractual terms of the note agreement. Municipal Utility District Receivables, net In Houston, Texas, certain development costs are reimbursable through the creation of a Municipal Utility District (“MUD”), also known as Water Control and Improvement Districts, which are separate political subdivisions authorized by Article 16, Section 59 of the Texas Constitution and governed by the Texas Commission on Environmental Quality (“TCEQ”). MUDs are formed to provide municipal water, waste water, drainage services, recreational facilities and roads to those areas where they are currently unavailable through the regular city services. Typically, the developer advances funds for the creation of the facilities, which must be designed, bid and constructed in accordance with the City of Houston’s and TCEQ requirements. The MUD Board of Directors authorizes and approves all MUD development contracts, and MUD bond sale proceeds are used to reimburse the developer for its construction costs, including interest. At the date the expenditures occur, the Company estimates the costs it believes will be eligible for reimbursement and recognizes that as MUD receivables. MUD receivables are pledged as security to creditors under the debt facilities relating to Bridgeland and The Woodlands MPCs. |
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net The major components of Prepaid expenses and other assets, net include Straight-line rent assets, various Intangibles, Special Improvement District (“SID”) receivables, tax increment financing (“TIF”) receivables, condominium inventory (and condominium receivables prior to the Adoption Date as discussed below in Revenue Recognition and Related Matters) and prepaid expenses related to the Company's properties. SID receivables are amounts due from SID bonds related to the Company's MPCs. Proceeds from SID bonds are held in escrow by a third-party and are used to reimburse the Company for a portion of the development costs incurred in Summerlin. SID receivables are $ 18.8 million and $ 26.4 million as of December 31, 2018 and 2017 , respectively. TIF receivables are amounts which the Company has submitted for reimbursement from Howard County, Maryland, in conjunction with development costs expended on key roads and infrastructure work within the Merriweather District of Columbia specified per the terms of the county’s TIF legislation and Special Obligation Bonds issued in October 2017. TIF receivables as of December 31, 2018 were $2.5 million . The Company's intangibles include in-place lease assets and above-market lease assets where HHC is the lessor, below-market ground leases where HHC is the lessee, trademark/tradename intangibles related to MPCs, and other indefinite lived intangibles relating to properties and businesses acquired in previous real estate transactions. The Company amortizes finite-lived intangible assets less any residual value, if applicable, on a straight-line basis over the term of the related lease or the estimated useful life of the asset. Intangible assets with an indefinite useful life, primarily attributable to the acquisition of the joint venture partner’s interest in the Las Vegas Aviators baseball team, are not amortized. The Company reviews for any changes in business that would lead to a reconsideration that the life is finite and should be subject to amortization. All indefinite-lived intangible assets are tested for impairment annually as of October 1 of each year, or sooner if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The quantitative impairment test for an indefinite-lived intangible asset consists of a comparison of the fair value of the asset to its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess, and the adjusted carrying amount of the intangible asset becomes the new accounting basis. |
Income Taxes | Income Taxes Deferred income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates currently in effect. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance that results from a change in circumstances, and which causes a change in the judgment about the realizability of the related deferred tax asset, is included in the deferred tax provision. There are events or circumstances that could occur in the future that could limit the benefit of deferred tax assets. In addition, the Company recognizes and reports interest and penalties, if necessary, related to uncertain tax positions within the provision for income tax expense. In HHC's MPCs, gains with respect to land sales, whether for commercial use or for single family residences, are reported for tax purposes either on the modified accrual method or on the percentage-of-completion method. Under the percentage-of-completion method, a gain is recognized for tax purposes as costs are incurred in satisfaction of contractual obligations. The method used for determining the percentage complete for income tax purposes is different than that used for financial statement purposes. |
Deferred Expenses, net | Deferred Expenses, net Deferred expenses consist principally of leasing costs. Deferred leasing costs are amortized to amortization expense using the straight‑line method over the related lease term. Deferred expenses are shown net of accumulated amortization of $24.8 million and $18.9 million as of December 31, 2018 and 2017 , respectively. Deferred financing fees are amortized to interest expense over the terms of the respective financing agreements using the effective interest method (or other methods which approximate the effective interest method). |
Marketing and Advertising | Marketing and advertising Strategic Developments, Operating Assets and MPC segments incur various marketing and advertising costs as part of their development, branding, leasing or sales initiatives. These costs include special events, broadcasts, direct mail and online digital and social media programs, and they are expensed as incurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of cash and cash equivalents, marketable securities, escrows, receivables, accounts payable, accrued expenses and other assets and liabilities are reasonable estimates of their fair values because of the short maturities of these instruments. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative instruments and hedging activities require management to make judgments on the nature of its derivatives and their effectiveness as hedges. These judgments determine if the changes in fair value of the derivative instruments are reported in the Consolidated Statements of Operations as a component of Net Income or as a component of Comprehensive Income as a component of Equity on the Consolidated Balance Sheets. While management believes its judgments are reasonable, a change in a derivative’s effectiveness as a hedge could materially affect expenses, net income and equity. The Company accounts for the changes in the fair value of an effective hedge in other comprehensive income (loss) and subsequently reclassifies the balance from other comprehensive income (loss) to earnings over the term that the hedged transaction affects earnings. The Company accounts for the changes in the fair value of an ineffective hedge directly in earnings. |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2018 , the Company has a stock-based employee compensation plan. The Company applies the provisions of ASC 718 Stock Compensation which requires all share‑based payments to employees, including grants of employee stock options, to be recognized in the Consolidated Statements of Operations based on their fair values. All unvested options outstanding under option plans have grant prices equal to the market price of the Company’s stock on the dates of grant. Compensation cost for restricted stock is determined based on fair market value of the Company’s stock at the date of grant. The Company recognizes forfeitures as they occur. |
Revenue Recognition and Related Matters | Revenue Recognition and Related Matters Condominium Rights and Unit Sales Revenue from the sale of an individual unit in a condominium project is recognized at a point in time (i.e., the closing) when HHC satisfies the single performance obligation to construct a condominium project and transfer control of a completed unit to a buyer. The transaction price, which is the amount of consideration the Company receives upon delivery of the completed condominium unit to the buyer, is allocated to this single obligation and is received at closing less any amounts previously paid on deposit. The Company receives cash payments in the form of escrowed condominium deposits from customers who have contracted to purchase a condominium unit based on billing schedules established in HHC's condominium purchase agreement contracts. The amounts are recorded in Restricted cash until released from escrow in accordance with the escrow agreement and on approval of HHC's lender to fund construction costs of a project. A corresponding condominium contract deposit liability is established at the date of receipt, representing a portion of HHC's unsatisfied performance obligation at each reporting date. These deposits, along with the balance of the contract value, are recognized at closing upon satisfaction of HHC's performance obligation and transfer of title to the buyer. Condominium receivables, a conditional right to consideration for satisfaction of HHC's completed obligations, were established under legacy GAAP for condominium units for which revenue was previously recognized under the percentage of completion method. As of the adoption of ASU 2014-09, Revenues from Contracts with Customers (Topic 606) and all its related amendments (the “New Revenue Standard”) as of January 1, 2018 (the “Adoption Date”), condominium receivables are recorded only in limited circumstances. Real estate project costs directly associated with a condominium project, which are HHC's costs to fulfill contracts with condominium buyers, are capitalized while all other costs are expensed as incurred. Total estimated project costs include direct costs such as the carrying value of the land, site planning, architectural, construction and financing costs, as well as indirect cost allocations. The allocations include costs which clearly relate to the specific project, including certain infrastructure and amenity costs which benefit the project as well as others, and are based upon the relative sales value of the units. Costs incurred to sell condominium units are evaluated for capitalization in accordance with ASC 340-40, and incremental costs of obtaining and fulfilling a contract are capitalized only if the costs relate directly to a specifically identified contract, enhance resources to satisfy performance obligations in the future and are expected to be recovered. Master Planned Community Land Sales Revenues from land sales are recognized at a point in time when the land sale closing process is complete. The transaction price generally has both fixed and variable components, with the fixed price stipulated in the contract and representative of a single performance obligation. See Builder Price Participation ("BPP") below for a discussion of the variable component. The fixed transaction price, which is the amount of consideration received in full upon transfer of the land title to the buyer, is allocated to this single obligation and is received at closing of the land sale less any amounts previously paid on deposit. The Company receives cash payments in the form of land purchase deposits from homebuilders or other commercial buyers who have contracted to purchase land within the Company's MPCs, and HHC holds any escrowed deposits in Restricted cash or Cash and cash equivalents based on the terms of the contract. In situations where the Company has completed the closing of a developed land parcel or superpad and consideration is paid in full, but a portion of HHC's performance obligation relating to the enhancement of the land is still unsatisfied, revenue related to HHC's obligation is recognized over time. The Company recognizes only the portion of the improved land sale where the improvements are fully satisfied based on a cost input method. The aggregate amount of the transaction price allocated to the unsatisfied obligation is recorded as deferred land sales and is presented in Accounts payable and accrued expenses. The Company measures the completion of HHC's unsatisfied obligation based on the costs remaining relative to the total cost at the date of closing. When developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs benefiting the property sold. In accordance with ASC 970-360-30-1, when developed land is sold, costs are allocated to each sold superpad or lot based upon the relative sales value. For purposes of allocating development costs, estimates of future revenues and development costs are re-evaluated throughout the year, with adjustments being allocated prospectively to the remaining parcels available for sale. For certain parcels of land, including acquired parcels that the Company does not intend to develop or for which development was complete at the date of acquisition, the specific identification method is used to determine the cost of sales. Minimum Rents and Tenant Recoveries Revenue associated with the Company's operating assets includes minimum rent, percentage rent in lieu of fixed minimum rent, tenant recoveries and overage rent. Minimum rent revenues are recognized on a straight‑line basis over the terms of the related leases when collectability is reasonably assured and the tenant has taken possession of, or controls, the physical use of the leased asset. Percentage rent in lieu of fixed minimum rent is recognized as sales are reported from tenants. Minimum rent revenues also include amortization related to above and below‑market tenant leases on acquired properties. Recoveries from tenants are stipulated in the leases, are generally computed based upon a formula related to real estate taxes, insurance and other real estate operating expenses, and are generally recognized as revenues in the period the related costs are incurred. Overage rent is recognized on an accrual basis once tenant sales exceed contractual thresholds contained in the lease and is calculated by multiplying the tenant sales in excess of the minimum amount by a percentage defined in the lease. If the lease provides for tenant improvements, the Company determines whether the tenant improvements are owned by the tenant or by HHC. When HHC is the owner of the tenant improvements, rental revenue begins when the improvements are substantially complete. When the tenant is the owner of the tenant improvements, any tenant allowance funded by the Company is treated as a lease incentive and amortized as an adjustment to rental revenue over the lease term. Hospitality Revenues Hospitality revenues are recognized at a point in time in accordance with the pattern of each related service. Lodging is recognized on daily increments, while retail services such as food and beverage are recognized at the point of sale. The transaction price is fixed, clearly stipulated and representative of a single performance obligation in all cases. The duration of all contracts with customers of HHC's hospitality lodging and related services is generally short. Builder Price Participation BPP is the variable component of the transaction price for Master Planned Communities Land Sales. BPP is earned when a developer that acquired land from HHC develops and sells a home to an end user at a price higher than a predetermined breakpoint. The excess over the breakpoint is shared between HHC and the developer at the time of closing on the sale of the home based on a percentage previously agreed upon. The Company concluded that as of the Adoption Date and as of December 31, 2018, BPP was constrained, as discussed below, and accordingly, the Company did not recognize an estimate of variable consideration. The Company's conclusion is based on the following factors: • BPP is highly susceptible to factors outside HHC's influence such as unemployment and interest rates; • the time between the sale of land to a developer and closing on a completed home can take up to three years; and • historical experience is of little value when it comes to predicting future home prices. The Company evaluates contracts with homebuilders with respect to BPP at each reporting period to determine whether a change in facts and circumstances has eliminated the constraint and will record an estimate of BPP revenue, if applicable. Other land revenues - over time and point in time Other land revenues recognized over time include ground maintenance revenue, homeowner association management fee revenue and revenue from providing exclusive cable and internet services at the Company's MPCs for the benefit of the tenants and owners of the communities. These revenues are recognized over time, as time elapses. The amount of consideration and the duration are fixed, as stipulated in the related agreements, and represent a single performance obligation. Other land revenues also include transfer fees on the secondary sales of homes in MPCs, forfeitures of earnest money deposits by buyers of HHC's condominium units, and other miscellaneous items. These items are recognized at a point in time when the real estate closing process is complete or HHC has a legal right to the respective fee or deposit. Other rental and property revenue - over time and point in time Other rental and property revenues related to contracts with customers is generally comprised of baseball related ticket sales, retail operations, advertising and sponsorships. Season ticket sales are recognized over time as games take place. Single tickets and total net sales from retail operations are recognized at a point in time, at the time of sale when payment is received and the customer takes possession of the merchandise. In all cases, the transaction prices are fixed, stipulated in the ticket, contract, or product, and representative in each case of a single performance obligation. Events-related service revenue is recorded at the time the customer receives the benefit of the service. Baseball-related and other sponsorships generally cover a season or contractual period of time, and the related revenue is generally recognized on a straight-line basis over time, as time elapses, unless a specific performance obligation exists within the sponsorship contract where point-in-time delivery occurs and recognition at a specific performance or delivery date is more appropriate. Advertising and sponsorship agreements that allow third parties to display their advertising and products at HHC's venues for a certain amount of time relate to a single performance obligation, consideration terms for these services are fixed in each respective agreement, and HHC generally recognizes the related revenue on a straight-line basis over time, as time elapses. In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606) . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company adopted the New Revenue Standard as of the Adoption Date using the modified retrospective transition method, and prior period amounts presented have not been adjusted. HHC recorded a cumulative effect adjustment of $69.7 million , net of taxes of $19.6 million , to increase Accumulated deficit as of the Adoption Date due to the impact of adopting Topic 606. Condominium rights and unit sales revenues were previously required to be recognized under the percentage of completion method. Under the new guidance, revenue and cost of sales for condominium units sold are not recognized until the construction is complete, the sale closes and the title to the property has transferred to the buyer (point in time). Additionally, certain real estate selling costs, such as the costs related to the Company's condominium model units, are either expensed immediately or capitalized as property and equipment and depreciated over their estimated useful life. The cumulative effect adjustments as of the Adoption Date consist of: • a decrease to Condominium receivables of $154.2 million ; • an increase to Buildings and equipment, net, of $3.4 million ; • an increase to Developments of $150.8 million ; • an increase to Prepaid expenses and other assets, net of $5.6 million ; • an increase to Accounts payable and accrued expenses of $95.0 million ; • a decrease to Deferred tax liabilities of $19.6 million ; and • an increase to Accumulated deficit of $69.7 million , net of taxes of $19.6 million . The following Balance Sheet line items were affected as of December 31, 2018 , as a result of HHC's adoption of the New Revenue Standard: December 31, 2018 Consolidated Balance Sheets (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Buildings and equipment, net $ 2,544,982 $ 7,089 $ 2,552,071 Developments 1,136,320 153,748 1,290,068 Deferred expenses, net 90,914 4,800 95,714 Prepaid expenses and other assets, net 486,693 (75,057 ) 411,636 Deferred tax liabilities 173,282 (16,094 ) 157,188 Accounts payable and accrued expenses 613,747 165,525 779,272 Accumulated deficit (61,490 ) (58,851 ) (120,341 ) For the year ended December 31, 2018 , the following Consolidated Statements of Operations line items were affected as a result of HHC's adoption of the New Revenue Standard: Year ended December 31, 2018 Consolidated Statements of Operations (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Condominium rights and unit sales $ 488,115 $ (130,395 ) $ 357,720 Condominium rights and unit cost of sales 410,281 (147,719 ) 262,562 Depreciation and amortization 123,671 2,894 126,565 Operating income (loss) before other items 93,315 14,431 107,746 Provision (benefit) for income taxes 11,943 3,549 15,492 Net income (loss) 46,844 10,882 57,726 Net income (loss) attributable to common stockholders 46,130 10,882 57,012 For the year ended December 31, 2018 , the following Consolidated Statements of Comprehensive Income line items were affected as a result of HHC's adoption of the New Revenue Standard: Year ended December 31, 2018 Consolidated Statements of Comprehensive Income (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Net income (loss) $ 46,844 $ 10,882 $ 57,726 Comprehensive income (loss) 45,683 10,882 56,565 Comprehensive income (loss) attributable to common stockholders 44,969 10,882 55,851 The following Consolidated Statements of Cash Flows line items were affected as of December 31, 2018 , as a result of HHC's adoption of the New Revenue Standard: Year ended December 31, 2018 Consolidated Statements of Cash Flows (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Net income (loss) $ 46,844 $ 10,882 $ 57,726 Depreciation and amortization 123,671 2,894 126,565 Deferred income taxes 12,646 3,549 16,195 Condominium rights and unit cost of sales 410,281 (147,719 ) 262,562 Percentage of completion revenue recognition from sale of condominium rights and unit sales (130,395 ) 130,395 — The New Revenue Standard and related policy updates As discussed above, as of the Adoption Date of the New Revenue Standard, revenues from contracts with customers (excluding lease-related revenues) are recognized when control of the promised goods or services is transferred to HHC's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents HHC's revenues disaggregated by revenue source: Year Ended (In thousands) December 31, 2018 Revenues From contracts with customers Recognized at a point in time: Condominium rights and unit sales $ 357,720 Master Planned Communities land sales 261,905 Hospitality revenues 82,037 Builder price participation 27,085 Total revenue from contracts with customers 728,747 Recognized at a point in time and/or over time: Other land revenues 21,314 Other rental and property revenues 57,168 Total other income 78,482 Rental and other income (lease-related revenues) Minimum rents 207,315 Tenant recoveries 49,993 Total rental income 257,308 Total revenues $ 1,064,537 Revenues by segment Master Planned Communities revenues $ 309,451 Operating Assets revenues 379,124 Strategic Developments revenues 375,962 Total revenues $ 1,064,537 Below is a discussion of the performance obligations, significant judgments and other required disclosures related to revenues from contracts with customers. Contract Assets and Liabilities Contract assets are the Company's right to consideration in exchange for goods or services that have been transferred to a customer, excluding any amounts presented as a receivable. Contract liabilities are the Company's obligation to transfer goods or services to a customer for which the Company has received consideration. The beginning and ending balances of contract assets and liabilities and significant activity during the period is as follows: Contract Contract (In thousands) Assets Liabilities Balance as of January 1, 2018 $ — $ 179,179 Consideration earned during the period (35,834 ) (308,898 ) Consideration received during the period 35,834 426,215 Balance as of December 31, 2018 $ — $ 296,496 Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations as of December 31, 2018 represent a measure of the total dollar value of work to be performed on contracts executed and in progress. These performance obligations are associated with contracts that generally are noncancelable by the customer after 30 days; however, purchasers of HHC's condominium units have the right to cancel the contract should the Company elect not to construct the condominium unit within a certain period of time or materially change the design of the condominium unit. The aggregate amount of the transaction price allocated to the Company's remaining unsatisfied performance obligations as of December 31, 2018 is $ 0.9 billion. The Company expects to recognize this amount as revenue over the following periods: (In thousands) Less than 1 year 1-2 years 3 years and thereafter Total remaining unsatisfied performance obligations $ 511,461 $ 29,049 $ 402,974 The Company’s remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, and deferrals, as appropriate. These amounts exclude estimated amounts of variable consideration which are constrained, such as BPP, as discussed above. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The following is a summary of recently issued and other notable accounting pronouncements which relate to HHC's business. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , which added the overnight index swap (OIS) rate based on the Secured Overnight Financing Rate (SOFR) to the list of US benchmark interest rates in ASC 815 that are eligible to be hedged. Entities can designate changes in this rate, which was identified as a preferred alternative to LIBOR, as the hedged risk in hedges of interest rate risk for fixed rate financial instruments. Entities may designate the new benchmark rate in hedging relationships they enter into on or after the date they adopt the new hedging guidance in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , as further discussed below. Entities such as HHC that have already adopted ASU 2017-12 may begin to apply this guidance in any interim period. The Board also added a project to its agenda to consider transition relief for switching to SOFR OIS from LIBOR for existing hedging relationship as well as other changes to US GAAP that may be needed to facilitate a market-wide transition to SOFR from LIBOR. The Company adopted ASU 2018-16 as of October 1, 2018 and, as a result, will apply this guidance prospectively to new or redesignated hedging relationships entered into on or after this date. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard is intended to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software (and hosting arrangements that include an internal use software license). The standard requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This standard also requires the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The new standard may be adopted prospectively or retrospectively with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement that eliminates, adds and modifies certain disclosure requirements for fair value measurements. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2018-13 may have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2018. The amendments must be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. The Company adopted ASU 2018-02 as of January 1, 2018, and an election was made to reclassify $1.1 million from Accumulated other comprehensive income (loss) to Accumulated deficit. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging , to enable entities to better portray the economic results of their risk management activities in their financial statements. The ASU expands an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk and eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The ASU also eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same Consolidated Statements of Operations line as the hedged item. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2018. The new standard must be adopted using a modified retrospective approach with early adoption permitted. The Company adopted ASU 2017-12 as of January 1, 2018 and, as a result, $0.7 million of ineffectiveness recognized prior to 2018 for its swaps was reclassified to Accumulated deficit from Accumulated other comprehensive income (loss). In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, to provide clarity and reduce the diversity in practice and cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation. Stakeholders observed that the definition of the term “modification” is broad and that its interpretation results in diversity in practice. The ASU states that when an entity concludes that a change is not substantive, then modification accounting does not apply. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2017. The new standard must be adopted prospectively to an award modified on or after the adoption date. Early adoption is permitted. The Company adopted ASU 2017-09 as of January 1, 2018 and, as a result, will apply this guidance to any modifications made to either the stock option or restricted stock award plans. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . The standard defines an “in-substance nonfinancial asset” as a financial asset promised to a counterparty in a contract if substantially all the fair value of the assets is concentrated in nonfinancial assets. The ASU also provides guidance for accounting for partial sales of nonfinancial assets such as real estate. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2017. The new standard must be adopted retrospectively with early adoption permitted. The Company adopted ASU 2017-05 as of January 1, 2018, and it did not have an impact on the Company’s financial position or results of operations. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) . This standard is intended to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. In computing the implied fair value of goodwill under step two, an entity determined the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognizing the impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The new standard must be adopted prospectively with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statements of cash flows. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2017. As required, the Company adopted ASU 2016-18 retrospectively as of January 1, 2018, resulting in presentation of an additional $153.5 million in Cash used in operating activities and $7.1 million in Cash provided by investing activities for the year ended December 31, 2017 and an additional $180.2 million in Cash provided by operating activities and $4.6 million in Cash provided by investing activities for the year ended December 31, 2016 related to changes in Restricted cash in the Consolidated Statements of Cash Flows in the respective periods. The nature of these restrictions relates primarily to escrowed condominium deposits and other amounts related to taxes, insurance, legally restricted security deposits and leasing costs held in escrow. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . The standard addresses how certain cash receipts and payments are presented and classified in the statements of cash flows, including debt extinguishment costs, distributions from equity method investees and contingent consideration payments made after a business combination. The effective date of this standard is for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted this standard retrospectively, as of January 1, 2018. ASU 2016-15 had no impact on the Company's presentation of operating, investing and financing activities related to certain cash receipts and payments on its consolidated statements of cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses . The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years, and for interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-13 may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 is codified in ASC 842. The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The effective date of this standard is for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The standard allows for either a modified retrospective or cumulative-effect adjustment transition approach for all leases existing at, or entered into after, the date of initial application. The Company is currently finalizing its assessment of the right-of-use asset and liability values, which are primarily comprised of ground and office leases where the Company is the lessee, that will be included on the Consolidated Balance Sheets as of January 1, 2019. Management does not expect the adoption of ASC 842 to have a material impact on the Company's results of operations or cash flows. The Company has reviewed the adoption elections associated with the standard and elected to i) not separate lease and nonlease components, ii) not recognize right of use assets and lease liabilities for leases with terms of less than 12 months, and iii) present right of use assets and lease liabilities as separate line items on the consolidated balance sheets. The Company will apply practical expedients that allow certain aspects of existing leases to be scoped out of reassessment under the new standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which will require entities to recognize changes in equity investments with readily determinable fair values in net income. For equity investments without readily determinable fair values, the ASU permits the application of a measurement alternative using the cost of the investment, less any impairments, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2017, and it must be adopted via a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company adopted the guidance as of January 1, 2018. As none of the Company's equity investments have readily determinable fair values, the adoption of this ASU does not have an impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Depreciation or amortization expense is computed using the straight‑line method based upon the following estimated useful lives: Asset Type Years Location of Asset Buildings and improvements 7 - 40 Buildings and Equipment Equipment and fixtures 5 - 20 Buildings and Equipment Computer hardware and software, and vehicles 3 - 5 Buildings and Equipment Tenant improvements Lesser of lease term or useful life Buildings and Equipment Leasing costs Related lease term Prepaid expenses and other assets, net |
Categories of Developments | Developments consist of the following categories: December 31, (In thousands) 2018 2017 Land and improvements $ 456,450 $ 202,875 Development costs 829,842 675,691 Condominium projects 3,776 318,016 Total Developments $ 1,290,068 $ 1,196,582 |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in allowance for doubtful accounts against accounts receivables: (In thousands) 2018 2017 2016 Balance as of January 1, $ 9,300 $ 7,799 $ 4,406 Provision for doubtful accounts 6,078 2,710 5,664 Write-offs (4,714 ) (1,209 ) (2,271 ) Balance as of December 31, $ 10,664 $ 9,300 $ 7,799 |
Schedule of Financial Statement Line Items Affected As Result Of New Revenue Recognition Standard | The following Balance Sheet line items were affected as of December 31, 2018 , as a result of HHC's adoption of the New Revenue Standard: December 31, 2018 Consolidated Balance Sheets (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Buildings and equipment, net $ 2,544,982 $ 7,089 $ 2,552,071 Developments 1,136,320 153,748 1,290,068 Deferred expenses, net 90,914 4,800 95,714 Prepaid expenses and other assets, net 486,693 (75,057 ) 411,636 Deferred tax liabilities 173,282 (16,094 ) 157,188 Accounts payable and accrued expenses 613,747 165,525 779,272 Accumulated deficit (61,490 ) (58,851 ) (120,341 ) For the year ended December 31, 2018 , the following Consolidated Statements of Operations line items were affected as a result of HHC's adoption of the New Revenue Standard: Year ended December 31, 2018 Consolidated Statements of Operations (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Condominium rights and unit sales $ 488,115 $ (130,395 ) $ 357,720 Condominium rights and unit cost of sales 410,281 (147,719 ) 262,562 Depreciation and amortization 123,671 2,894 126,565 Operating income (loss) before other items 93,315 14,431 107,746 Provision (benefit) for income taxes 11,943 3,549 15,492 Net income (loss) 46,844 10,882 57,726 Net income (loss) attributable to common stockholders 46,130 10,882 57,012 For the year ended December 31, 2018 , the following Consolidated Statements of Comprehensive Income line items were affected as a result of HHC's adoption of the New Revenue Standard: Year ended December 31, 2018 Consolidated Statements of Comprehensive Income (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Net income (loss) $ 46,844 $ 10,882 $ 57,726 Comprehensive income (loss) 45,683 10,882 56,565 Comprehensive income (loss) attributable to common stockholders 44,969 10,882 55,851 The following Consolidated Statements of Cash Flows line items were affected as of December 31, 2018 , as a result of HHC's adoption of the New Revenue Standard: Year ended December 31, 2018 Consolidated Statements of Cash Flows (in thousands) Recognition Under Previous Guidance Impact of Adoption of ASC Topic 606 Recognition Under ASC Topic 606 Net income (loss) $ 46,844 $ 10,882 $ 57,726 Depreciation and amortization 123,671 2,894 126,565 Deferred income taxes 12,646 3,549 16,195 Condominium rights and unit cost of sales 410,281 (147,719 ) 262,562 Percentage of completion revenue recognition from sale of condominium rights and unit sales (130,395 ) 130,395 — |
Schedule of Disaggregation of Revenue | The following table presents HHC's revenues disaggregated by revenue source: Year Ended (In thousands) December 31, 2018 Revenues From contracts with customers Recognized at a point in time: Condominium rights and unit sales $ 357,720 Master Planned Communities land sales 261,905 Hospitality revenues 82,037 Builder price participation 27,085 Total revenue from contracts with customers 728,747 Recognized at a point in time and/or over time: Other land revenues 21,314 Other rental and property revenues 57,168 Total other income 78,482 Rental and other income (lease-related revenues) Minimum rents 207,315 Tenant recoveries 49,993 Total rental income 257,308 Total revenues $ 1,064,537 Revenues by segment Master Planned Communities revenues $ 309,451 Operating Assets revenues 379,124 Strategic Developments revenues 375,962 Total revenues $ 1,064,537 |
Schedule of Contract with Customer, Asset and Liability | The beginning and ending balances of contract assets and liabilities and significant activity during the period is as follows: Contract Contract (In thousands) Assets Liabilities Balance as of January 1, 2018 $ — $ 179,179 Consideration earned during the period (35,834 ) (308,898 ) Consideration received during the period 35,834 426,215 Balance as of December 31, 2018 $ — $ 296,496 |
Schedule of Remaining Unsatisfied Performance Obligations | The Company expects to recognize this amount as revenue over the following periods: (In thousands) Less than 1 year 1-2 years 3 years and thereafter Total remaining unsatisfied performance obligations $ 511,461 $ 29,049 $ 402,974 |
REAL ESTATE AND OTHER AFFILIA_2
REAL ESTATE AND OTHER AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Investments in Real Estate and Other Affiliates | Relevant financial statement information for The Summit is summarized as follows: December 31, (In millions) 2018 2017 Total Assets $ 218.9 $ 166.9 Total Liabilities 144.6 118.9 Total Equity 74.3 48.0 December 31, (In millions) 2018 2017 2016 Revenues (a) $ 101.2 $ 58.6 $ 79.8 Net income 36.3 23.2 43.5 Gross Margin 41.9 31.2 47.1 (a) Revenues related to land sales at the joint venture are recognized on a percentage of completion basis as The Summit follows the private company timeline for implementation of the New Revenue Standard of 2019. Investments in Real Estate and Other Affiliates that are reported in accordance with the equity and cost methods are as follows: Economic/Legal Ownership Carrying Value Share of Earnings/Dividends December 31, December 31, December 31, December 31, Year Ended December 31, ($ in thousands) 2018 2017 2018 2017 2018 2017 2016 Equity Method Investments Master Planned Communities: The Summit (a) — — $ 72,171 $ 45,886 $ 36,284 $ 23,234 $ 43,501 Operating Assets: Las Vegas Aviators (b) 100 % 100 % — — — (152 ) 12 Constellation (b) (c) 100 % 100 % (96 ) — (96 ) (323 ) (54 ) The Metropolitan Downtown Columbia (d) 50 % 50 % — — 467 390 (800 ) Millennium Six Pines Apartments (b) 100 % 100 % — — — — 44 Stewart Title of Montgomery County, TX 50 % 50 % 3,920 3,673 573 386 696 Woodlands Sarofim #1 20 % 20 % 2,760 2,696 94 53 182 m.flats/TEN.M (e) 50 % 50 % 4,701 — (2,478 ) — — Mr. C Seaport (f) 35 % 35 % 8,721 — (465 ) — — Strategic Developments: Circle T Ranch and Power Center 50 % 50 % 5,989 4,455 1,534 — 10,497 HHMK Development 50 % 50 % 10 10 — — — KR Holdings 50 % 50 % 159 749 830 41 18 m.flats/TEN.M (e) 50 % 50 % — 6,521 — (415 ) — Mr. C Seaport (f) 35 % 35 % — 8,651 (240 ) (643 ) 106 98,335 72,641 36,503 22,571 54,202 Cost method investments 3,952 3,952 3,451 2,927 2,616 Investment in Real Estate and Other Affiliates $ 102,287 $ 76,593 $ 39,954 $ 25,498 $ 56,818 (a) Please refer to the discussion below for a description of the joint venture ownership structure. (b) HHC acquired this joint venture partner’s interest in 2017 and has consolidated the assets and liabilities of the entity in its financial results. See Note 3 - Acquisitions and Dispositions for additional information regarding the transaction. (c) Carrying Value and Share of Earnings/Dividends balances represent immaterial residual activity recorded subsequent to HHC's acquisition of the joint venture partner's interest in 2017. (d) The Metropolitan Downtown Columbia was in a deficit position of $3.8 million and $2.6 million at December 31, 2018 and December 31, 2017 , respectively, due to distributions from operating cash flows in excess of basis. This deficit balance is presented in Accounts payable and accrued expenses at December 31, 2018 and 2017. (e) Property was transferred from Strategic Developments to Operating Assets during the three months ended March 31, 2018. (f) The Mr. C Seaport hotel was closed in December 2016 for redevelopment and was transferred to the Strategic Developments segment as of January 1, 2017. The property was transferred from Strategic Developments to Operating Assets during the three months ended September 30, 2018 when the redeveloped hotel opened for business. |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACQUISITIONS AND DISPOSITIONS | |
Schedule of purchase price | The following table summarizes the accounting of the purchase price: Asset ($ in millions) Acquisition Date Fair Value Building $ 38,213 Land 3,069 Improvements 957 Furniture, fixtures and equipment 590 Leases in place 714 Other identifiable assets 18 Total $ 43,561 |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Impairment Charges [Abstract] | |
Summary of Impaired Asset | The following table summarizes the Company's provision for impairment: Provision for impairment as of December 31, Impaired Asset Location Method of Determining Fair Value 2018 2017 2016 (In thousands) Operating Assets: Park West Peoria, AZ Discounted cash flow analysis using capitalization rate of 6.75% $ — $ — $ 35,734 |
OTHER ASSETS AND LIABILITIES (T
OTHER ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER ASSETS AND LIABILITIES | |
Summary of the significant components of prepaid expenses and other assets | The following table summarizes the significant components of Prepaid expenses and other assets: December 31, (In thousands) 2018 2017 Condominium inventory $ 198,352 $ — Straight-line rent 50,493 39,136 Intangibles 33,955 34,802 Other 20,364 4,798 Special Improvement District receivable 18,838 26,430 Below-market ground leases 18,296 18,647 Security and escrow deposits 17,670 16,949 Prepaid expenses 16,981 11,731 Equipment, net of accumulated depreciation of $8.3 million and $6.9 million, respectively 15,543 16,955 Tenant incentives and other receivables 8,745 8,482 In-place leases 6,539 10,821 TIF receivable 2,470 14,444 Federal income tax receivable 2,000 2,198 Above-market tenant leases 1,044 1,648 Interest rate swap derivative assets 346 4,470 Condominium receivables — 158,516 Prepaid expenses and other assets, net $ 411,636 $ 370,027 |
Summary of the significant components of accounts payable and accrued expenses | The following table summarizes the significant components of Accounts payable and accrued expenses: December 31, (In thousands) 2018 2017 Condominium deposit liabilities $ 263,636 $ 55,975 Construction payables 258,749 217,838 Deferred income 42,734 53,337 Accrued payroll and other employee liabilities 42,591 41,236 Accounts payable and accrued expenses 38,748 35,887 Other 29,283 34,699 Accrued real estate taxes 26,171 22,289 Accrued interest 23,080 20,322 Tenant and other deposits 20,893 18,937 Straight-line ground rent liability 16,870 14,944 Interest rate swap derivative liabilities 16,517 5,961 Above-market ground leases — 293 Accounts payable and accrued expenses $ 779,272 $ 521,718 |
INTANGIBLES (Tables)
INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLES | |
Summary of intangible assets and liabilities | The following table summarizes the Company's intangible assets and liabilities: As of December 31, 2018 As of December 31, 2017 Gross Accumulated Net Gross Accumulated Net Asset (Amortization) Carrying Asset (Amortization) Carrying (In thousands) (Liability) / Accretion Amount (Liability) / Accretion Amount Intangible Assets: Indefinite lived intangibles $ 25,028 $ — $ 25,028 $ 25,028 $ — $ 25,028 Goodwill 1,307 — 1,307 1,307 — 1,307 Other intangibles 10,278 (2,658 ) 7,620 10,278 (1,812 ) 8,466 Tenant leases: In-place value 19,966 (13,427 ) 6,539 22,304 (11,483 ) 10,821 Above-market 3,313 (2,269 ) 1,044 4,171 (2,523 ) 1,648 Below-market (7,326 ) 3,140 (4,186 ) (6,454 ) 2,688 (3,766 ) Ground leases: Above-market — — — (293 ) — (293 ) Below-market 23,096 (4,800 ) 18,296 23,096 (4,449 ) 18,647 Total indefinite lived intangibles $ 26,335 $ 26,335 Total amortizing intangibles $ 29,313 $ 35,523 |
MORTGAGES, NOTES AND LOANS PA_2
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of mortgages, notes and loans payable | Mortgages, notes and loans payable, net are summarized as follows: December 31, (In thousands) 2018 2017 Fixed-rate debt: Unsecured 5.375% Senior Notes $ 1,000,000 $ 1,000,000 Secured mortgages, notes and loans payable 648,707 499,299 Special Improvement District bonds 15,168 27,576 Variable-rate debt: Mortgages, notes and loans payable (a) 1,551,336 1,350,914 Unamortized bond issuance costs (6,096 ) (6,898 ) Deferred financing costs (27,902 ) (12,946 ) Total mortgages, notes and loans payable, net $ 3,181,213 $ 2,857,945 (a) As more fully described below, $615.0 million and $428.3 million of variable rate debt has been swapped to a fixed rate for the term of the related debt as of December 31, 2018 and 2017 , respectively. An additional $50.0 million of variable rate debt was subject to interest rate collars as of December 31, 2018. As of December 31, 2018 and 2017, $75.0 million and $108.6 million , respectively, of variable rate debt was capped at a maximum interest rate. |
Schedule of mortgages, notes and loans payable by property | The following table presents the Company's mortgages, notes, and loans payable by property, presented within each segment in order of extended maturity date: Maximum Carrying Value Initial / Extended Interest Facility December 31, December 31, ($ in thousands) Maturity (a) Rate Amount 2018 2017 Master Planned Communities Summerlin South SID Bonds - S124 December 2019 5.95 % $ — $ 84 Summerlin South SID Bonds - S128 December 2020 7.30 % 213 390 Summerlin South SID Bonds - S132 December 2020 6.00 % 562 912 The Woodlands Master Credit Facility April 2020 / April 2021 5.25 % (b) $ 180,000 150,000 150,000 Bridgeland Credit Facility November 2020 / November 2022 5.96 % (b) 65,000 65,000 65,000 Summerlin South SID Bonds - S151 June 2025 6.00 % 913 3,763 Summerlin South SID Bonds - S128C December 2030 6.05 % 3,211 4,283 Summerlin South SID Bonds - S159 June 2035 6.00 % — 139 Summerlin West SID Bonds - S812 October 2035 6.00 % 6,709 15,193 Master Planned Communities Total 226,608 239,764 Operating Assets 1725-1735 Hughes Landing Boulevard June 2018 / June 2019 3.14 % (b), (c) 143,000 — 117,417 The Westin at The Woodlands August 2018 / August 2019 4.14 % (b), (c) 57,946 — 57,946 Outlet Collection at Riverwalk October 2019 / October 2020 5.00 % (b) 47,552 53,841 Three Hughes Landing December 2019 / December 2020 5.10 % (b) 62,000 55,759 45,058 Lakeland Village Center at Bridgeland May 2018 / May 2020 3.84 % (b), (c) 14,000 — 11,470 Embassy Suites at Hughes Landing October 2018 / October 2020 3.99 % (b), (c) 37,100 — 31,245 The Woodlands Resort & Conference Center February 2019 / February 2021 5.75 % (b) 62,500 65,500 One Merriweather February 2020 / February 2021 3.64 % (b), (c) 49,929 — 42,332 Downtown Summerlin September 2020 / September 2021 4.65 % (b) 266,755 274,088 Two Merriweather October 2020 / October 2021 5.00 % (b) 33,156 24,000 19,429 HHC 242 Self-Storage October 2019 / October 2021 5.10 % (b) 6,658 6,604 6,243 HHC 2978 Self-Storage Facility January 2020 / January 2022 5.10 % (b) 6,368 6,042 5,634 70 Columbia Corporate Center May 2020 / May 2022 3.49 % (b), (c) — 20,000 One Mall North May 2020 / May 2022 3.74 % (b), (c) — 14,463 10-60 Columbia Corporate Centers May 2020 / May 2022 3.33 % (b), (c) — 80,000 20/25 Waterway Avenue May 2022 4.79 % 13,395 13,646 Millennium Waterway Apartments June 2022 3.75 % 54,083 55,095 Aristocrat October 2022 5.90 % (b) 31,118 21,296 — Two Summerlin October 2022 5.90 % (b) 33,432 14,431 — Lake Woodlands Crossing Retail January 2023 4.30 % (b) 15,523 9,539 — Ward Village September 2021 / September 2023 3.82 % (b), (c) — 238,718 Lakefront North December 2022 / December 2023 4.50 % (b) 51,821 21,120 — Senior Secured Credit Facility September 2023 4.61 % (f) 700,000 615,000 — 9303 New Trails December 2023 4.88 % 11,610 12,003 4 Waterway Square December 2023 4.88 % 33,998 35,151 3831 Technology Forest Drive March 2026 4.50 % 21,571 21,954 Kewalo Basin Harbor September 2027 5.25 % (b) 11,562 3,499 — Millennium Six Pines Apartments August 2028 3.39 % 42,500 42,500 3 Waterway Square August 2028 3.94 % 49,013 50,327 One Hughes Landing December 2029 4.30 % 52,000 52,000 Two Hughes Landing December 2030 4.20 % 48,000 48,000 Hockey Ground Lease SIDS December 2020 - December 2030 6.05% - 7.30% 141 — Downtown Summerlin SID Bonds - S128 December 2030 6.05 % 2,652 2,812 One Lakes Edge March 2029 4.50 % 69,440 69,440 Constellation Apartments January 2033 4.07 % 24,200 24,200 Hughes Landing Retail December 2036 3.50 % 35,000 35,000 Columbia Regional Building February 2037 4.48 % 25,000 25,000 Operating Assets Total 1,636,700 1,570,512 Strategic Developments 250 Water Street December 2018 / June 2020 6.00 % 129,723 — Ke Kilohana December 2019 / December 2020 5.75 % (b) 142,656 96,757 — Ae‘o December 2019 / December 2021 5.49 % (b) 215,000 — 33,603 100 Fellowship Drive May 2022 4.00 % (b) 51,426 35,481 1 Lakeside Row July 2022 / July 2023 4.75 % (b) 34,231 — — Two Lakes Edge October 2022 / October 2023 4.65 % (b) 74,000 — — 110 North Wacker (d) April 2022 / April 2024 5.50 % (b), (d) 512,573 50,000 18,926 6100 Merriweather September 2022 / September 2024 5.25 % (b) 89,844 — — Columbia Multi-family September 2022 / September 2024 5.25 % (b) 85,657 — — Tanager Apartments October 2021 / October 2024 4.75 % (b) 44,100 — — Other SID Bonds December 2020 - December 2030 6.00% - 7.30% (e) 767 — Summerlin Ballpark December 2039 4.92 % 51,231 26,766 — Strategic Developments Total 339,494 52,530 Other corporate financing arrangements May 2023 4.33 % 12,409 14,983 Senior Notes March 2025 5.38 % 1,000,000 1,000,000 Unamortized bond issuance costs (6,096 ) (6,898 ) Deferred financing costs (27,902 ) (12,946 ) Total mortgages, notes, and loans payable $ 3,181,213 $ 2,857,945 (a) Maturity dates presented include initial maturity date as well as the extended or final maturity date as contractually stated. Extension periods generally can be exercised at HHC's option at the initial maturity date, subject to customary extension terms that are based on current property performance projections. Such extension terms may include, but are not limited to, minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable and other performance criteria. In certain cases due to property performance not meeting covenants, HHC may have to pay down a portion of the loan in order to obtain the extension. (b) The interest rate presented is based on the one-month LIBOR , three-month LIBOR or Prime rate, as applicable, which was 2.50% , 2.81% and 5.50% , respectively, at December 31, 2018 . (c) Rates and maturities were not changed as the line is retained for prior year presentation purposes only. Property is collateral for the Senior Secured Credit Facility, and their prior balances were repaid upon execution of the Senior Secured Credit Facility agreement on September 18, 2018 . (d) 100.0% of the outstanding principal of $50.0 million is subject to fixed interest rate collar contracts for the remaining term of the debt. (e) Includes SID Bonds related to Two Summerlin, Aristocrat, Tanager Apartments, and Summerlin Ballpark. Maturity dates range between December 2020 and December 2030 and interest rates range between 6.00% and 7.30% . (f) 100.0% of the outstanding principal of the $615.0 million Term Loan is swapped to a fixed rate equal to 4.61% . |
Summary of contractual obligations relating to mortgages, notes, and loans payable | The following table summarizes the contractual obligations relating to the Company's mortgages, notes and loans payable as of December 31, 2018 based on extended maturity dates: Mortgages, notes and loans payable (In thousands) principal payments 2019 $ 93,358 2020 357,246 2021 419,697 2022 216,471 2023 696,248 Thereafter 1,432,191 Total principal payments 3,215,211 Deferred financing costs, net and unamortized underwriting fees (33,998 ) Total mortgages, notes and loans payable $ 3,181,213 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured on a Recurring Basis | The following table presents the fair value measurement hierarchy levels required under ASC 820 for each of the Company's assets and liabilities that are measured at fair value on a recurring basis: December 31, 2018 December 31, 2017 Fair Value Measurements Using Fair Value Measurements Using (In thousands) Total Quoted Prices Significant Significant Total Quoted Prices Significant Significant Assets: Cash equivalents $ — $ — $ — $ — $ 50,135 $ 50,135 $ — $ — Interest rate swap derivative assets 346 — 346 — 4,470 — 4,470 — Liabilities: Interest rate swap derivative liabilities 16,517 — 16,517 — 5,961 — 5,961 — |
Rollforward of Sponsor and Management Warrants | As discussed further in Note 13 - Warrants , as of December 31, 2018 , all Sponsor Warrants and Management Warrants had been exercised. The following table presents a rollforward of the valuation of the Company's Warrant liabilities: (In thousands) 2018 2017 2016 Balance as of January 1, $ — $ 332,170 $ 307,760 Warrant liability loss (gain) (a) — 43,443 24,410 Exercises of Sponsor and Management Warrants — (375,613 ) — Balance as of December 31, $ — $ — $ 332,170 (a) For 2017 , this amount represents losses recognized relating to each warrant prior to the respective exercise date. For 2016, represents unrealized losses recorded for outstanding warrants at the end of the period. Changes in the fair value of the Sponsor Warrants and Management Warrants prior to exercise were recognized in net income as a warrant liability gain or loss. |
Summary of assets and liabilities that were measured at fair value on a non-recurring basis | The estimated fair values of HHC's financial instruments that are not measured at fair value on a recurring basis are as follows: December 31, 2018 December 31, 2017 (In thousands) Fair Value Carrying Estimated Carrying Estimated Assets: Cash and Restricted cash Level 1 $ 724,215 $ 724,215 $ 914,165 $ 914,165 Accounts receivable, net (a) Level 3 12,589 12,589 13,041 13,041 Notes receivable, net (b) Level 3 4,694 4,694 5,864 5,864 Liabilities: Fixed-rate debt (c) Level 2 1,663,875 1,608,635 1,526,875 1,554,766 Variable-rate debt (c) Level 2 1,551,336 1,551,336 1,350,914 1,350,914 (a) Accounts receivable, net is shown net of an allowance of $10.7 million and $9.3 million at December 31, 2018 and 2017 , respectively. (b) Notes receivable, net is shown net of an allowance of $0.1 million at December 31, 2018 and 2017 . (c) Excludes related unamortized financing costs. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair value of the Company's derivative financial instruments | The following table summarizes certain terms of the Company's derivative contracts: Fixed Fair Value Asset (Liability) Notional Interest Effective Maturity December 31, December 31, (In thousands) Balance Sheet Location Amount Rate (a) Date Date 2018 2017 Derivative instruments not designated as hedging instruments: Interest Rate Cap (b) Prepaid expenses and other assets, net $ 75,000 5.00 % 9/1/2017 8/31/2019 $ — $ — Interest Rate Cap (b) Prepaid expenses and other assets, net 230,000 2.50 % 12/22/2016 12/23/2019 333 164 Derivative instruments designated as hedging instruments: Interest Rate Swap (c) Accounts payable and accrued expenses 18,926 2.96 % 5/10/2011 10/31/2019 — (286 ) Interest Rate Swap (d) Prepaid expenses and other assets, net 40,000 1.66 % 5/6/2015 5/1/2020 — 299 Interest Rate Swap (d) Prepaid expenses and other assets, net 119,359 1.14 % 10/3/2016 9/12/2021 — 4,007 Interest Rate Swap (e) Accounts payable and accrued expenses 50,000 2.65 % 12/31/2017 12/31/2027 — (1,124 ) Interest Rate Swap (e) Accounts payable and accrued expenses 100,000 2.68 % 12/31/2017 12/31/2027 — (2,509 ) Interest Rate Swap (e) Accounts payable and accrued expenses 100,000 2.62 % 12/31/2017 12/31/2027 — (2,042 ) Interest Rate Collar (f) Prepaid expenses and other assets, net 51,592 1.50% - 2.50% 7/1/2018 5/1/2019 13 — Interest Rate Collar (f) Accounts payable and accrued expenses 193,967 2.00% - 3.00% 5/1/2019 5/1/2020 (37 ) — Interest Rate Collar (f) Accounts payable and accrued expenses 354,217 2.25% - 3.25% 5/1/2020 5/1/2021 (730 ) — Interest Rate Collar (f) Accounts payable and accrued expenses 381,404 2.75% - 3.50% 5/1/2021 4/30/2022 (1,969 ) — Interest Rate Swap (g) Accounts payable and accrued expenses 615,000 2.96 % 9/21/2018 9/18/2023 (13,781 ) — Total fair value derivative assets $ 346 $ 4,470 Total fair value derivative liabilities $ (16,517 ) $ (5,961 ) (a) These rates represent the strike rate on HHC's interest swaps, caps and collars. (b) Interest (income) expense of $(0.2) million is included in the Consolidated Statements of Operations for the year ended December 31, 2018 related to these contracts. (c) On January 19, 2018, the Company repaid in full the $18.9 million mortgage loan for 110 North Wacker and settled the related swap liability of $0.3 million. (d) On September 21, 2018, the Company settled $40.0 million and $119.4 million in interest rate swaps. (e) On May 17, 2018, the Company settled $250.0 million in forward starting swaps. (f) On May 17, 2018 and May 18, 2018, the Company entered into interest rate collars which are designated as cash flow hedges. (g) Concurrent with the funding of the new $615.0 million Term Loan discussed in Note 7 - Mortgages, Notes and Loans Payable, Net , on September 21, 2018, the Company entered into this interest rate swap which is designated as a cash flow hedge. |
Summary of effect of the Company's derivative financial instruments on the Condensed Consolidated Statements of Operations | The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 : Amount of Gain (Loss) Recognized in AOCI on Derivative December 31, Derivatives in Cash Flow Hedging Relationships 2018 2017 2016 Interest rate derivatives $ 2,090 $ (726 ) $ 831 Amount of Gain (Loss) Reclassified from AOCI into Operations December 31, Location of Loss Reclassified from AOCI into Operations 2018 2017 2016 Interest expense $ 1,135 $ (905 ) $ (1,364 ) Total Interest Expense Presented in the Results of Operations in which the Effects of Cash Flow Hedges are Recorded December 31, Interest Expense Presented in Results of Operations 2018 2017 2016 Interest expense $ 82,028 $ 64,568 $ 65,724 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Obligations for Minimum Rentals Under Non-Cancelable Operating Leases | HHC's obligations for minimum rentals under non-cancelable operating leases are as follows: Subsequent/ (In thousands) 2019 2020 2021 2022 2023 Other Total Ground lease and other leasing commitments $ 8,199 $ 7,871 $ 7,380 $ 6,713 $ 8,380 $ 291,611 $ 330,154 |
STOCK-BASED PLANS (Tables)
STOCK-BASED PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option plan activity | The following tables summarize stock option activity: Weighted Average Remaining Aggregate Weighted Average Contractual Term Intrinsic Shares Exercise Price (In years) Value Stock options outstanding at January 1, 2016 1,086,040 $ 77.11 Granted 162,100 109.42 Exercised (3,000 ) 60.33 Forfeited (68,500 ) 122.93 Expired — — Stock options outstanding at December 31, 2016 1,176,640 $ 78.87 Granted 58,000 $ 119.85 Exercised (395,482 ) 58.81 Forfeited (54,976 ) 105.17 Expired (1,000 ) 57.77 Stock options outstanding at December 31, 2017 783,182 $ 90.22 Granted 265,000 $ 124.56 Exercised (183,592 ) 65.72 Forfeited (46,592 ) 121.34 Expired — — Stock options outstanding at December 31, 2018 817,998 $ 105.06 6.3 8,608,841 Stock options exercisable at December 31, 2018 268,298 $ 67.82 3.0 8,524,841 Stock options vested and expected to vest at December 31, 2018 797,320 $ 104.61 6.3 8,607,055 |
Summary of information related to stock options outstanding | Information related to stock options outstanding as of December 31, 2018 is summarized below: Weighted Average Remaining Number Weighted Average Contractual Term Number Range of Exercise Prices Outstanding Exercise Price (In years) Exercisable $ 46.46 $ 55.82 11,100 $ 49.93 2.8 11,100 $ 57.77 $ 60.33 162,401 57.99 2.3 162,401 $ 61.64 $ 69.75 49,129 66.65 3.4 49,129 $ 81.80 $ 110.50 68,960 101.69 6.2 38,960 $ 112.64 $ 151.72 526,408 124.77 8.0 6,708 817,998 $ 105.06 6.3 268,298 |
Summary of Significant Assumptions Used in Black-Scholes Option-Pricing Model | The fair value on the grant date and the significant assumptions used in the Black‑Scholes option‑pricing model are as follows: As of December 31, 2018 2017 2016 Grant date fair value $ 48.27 $ 34.51 $ 36.55 Expected life of options (in years) 8.4 8.4 7.4 Risk-free interest rate 2.7 % 2.2 % 1.8 % Expected volatility 24.7 % 22.8 % 33.1 % Expected annual dividend per share — — — |
Summary of restricted stock activity | The following table summarizes restricted stock activity: Weighted Average Grant Date Shares Fair Value Restricted stock outstanding at January 1, 2016 242,556 $ 100.15 Granted 136,198 67.80 Vested (37,670 ) 83.47 Forfeited (51,972 ) 90.14 Restricted stock outstanding at December 31, 2016 289,112 $ 88.88 Granted 177,708 85.88 Vested (68,819 ) 88.58 Forfeited (43,482 ) 76.10 Restricted stock outstanding at December 31, 2017 354,519 $ 89.00 Granted 142,332 83.09 Vested (52,479 ) 124.50 Forfeited (37,828 ) 91.71 Restricted stock outstanding at December 31, 2018 406,544 $ 82.10 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for (benefit from) income taxes | The provision for (benefit from) income taxes for the years ended December 31, 2018, 2017 and 2016 were as follows: (In thousands) 2018 2017 2016 Current $ (703 ) $ (2,338 ) $ 4,752 Deferred 16,195 (43,463 ) 113,698 Total $ 15,492 $ (45,801 ) $ 118,450 |
Schedule of reconciliation of income tax expense computed by applying the Federal corporate tax rate to the provision for income taxes | Income tax expense is computed by applying the Federal corporate tax rate for the years ended December 31, 2018, 2017 and 2016 and is reconciled to the provision for income taxes as follows: (In thousands) 2018 2017 2016 Tax at statutory rate on earnings from continuing operations before income taxes $ 15,226 $ 42,911 $ 112,264 Increase (decrease) in valuation allowance, net 8,033 (175 ) (1,326 ) State income taxes, net of Federal income tax benefit (4,933 ) 1,408 4,004 Tax benefit from Tax Act — (101,688 ) — Tax (benefit) expense from other change in rates, prior period adjustments and other permanent differences (1,292 ) 2,941 (4,591 ) Tax benefit on equity compensation (1,490 ) (6,403 ) — Tax expense on compensation disallowance 1,168 — — Tax benefit on historic tax credit (1,220 ) — — Non-deductible warrant liability loss — 15,205 8,544 Uncertain tax position benefit excluding interest — — (407 ) Uncertain tax position interest, net of Federal income tax benefit — — (38 ) Income tax expense (benefit) $ 15,492 $ (45,801 ) $ 118,450 |
Schedule of amounts and expiration dates of operating loss and tax credit carryforwards | As of December 31, 2018 , the amounts and expiration dates of operating loss and tax credit carryforwards for tax purposes are as follows: Expiration (In thousands) Amount Date Net operating loss carryforwards - Federal $ 145,671 2024-2038 Net operating loss carryforwards - Federal 25,065 n/a Net operating loss carryforwards - State 460,802 2019-2038 Tax credit carryforwards - Federal AMT 3,699 n/a Tax credit carryforwards - Historic Tax Credit 1,610 2038 |
Summary of tax effects of temporary differences and carryforwards included in net deferred tax liabilities | The tax effects of temporary differences and carryforwards included in the net deferred tax liabilities at December 31, 2018 and 2017 are summarized as follows: (In thousands) 2018 2017 Deferred tax assets: Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities $ 83,263 $ 92,210 Interest deduction carryforwards 34,611 29,247 Operating loss and tax credit carryforwards 65,071 50,914 Total deferred tax assets 182,945 172,371 Valuation allowance (25,304 ) (17,271 ) Total net deferred tax assets $ 157,641 $ 155,100 Deferred tax liabilities: Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs $ (146,124 ) $ (157,181 ) Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities (59,517 ) (60,430 ) Deferred income (109,188 ) (98,339 ) Total deferred tax liabilities (314,829 ) (315,950 ) Total net deferred tax liabilities $ (157,188 ) $ (160,850 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the change in unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 is as follows: (In thousands) 2018 2017 2016 Unrecognized tax benefits, opening balance $ — $ — $ 36,524 Gross increases - tax positions in prior period — — — Gross decreases - tax positions in prior periods — — (36,524 ) Unrecognized tax benefits, ending balance $ — $ — $ — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of AOCI | The following tables summarize changes in AOCI by component, all of which are presented net of tax: Balance as of January 1, 2017 $ (6,786 ) Other comprehensive income (loss) before reclassifications (1,084 ) Loss reclassified from accumulated other comprehensive loss to net income 905 Net current-period other comprehensive income (loss) (179 ) Balance as of December 31, 2017 (6,965 ) Other comprehensive income (loss) before reclassifications 2,120 (Gain) loss reclassified from accumulated other comprehensive loss to net income (1,135 ) Adjustment related to adoption of ASU 2018-02 (1,148 ) Adjustment related to adoption of ASU 2017-12 (739 ) Pension adjustment 759 Terminated swap amortization (1,018 ) Net current-period other comprehensive income (loss) (1,161 ) Balance as of December 31, 2018 $ (8,126 ) |
Summary of the amounts reclassified out of AOCI | The following table summarizes the amounts reclassified out of AOCI: Amounts reclassified from Accumulated Other Comprehensive Income (Loss) Components Affected line items in the For the Year Ended (In thousands) Statements of Operations 2018 2017 (Gains) losses on cash flow hedges Interest expense $ (1,437 ) $ 1,443 Interest rate swap contracts Provision for income taxes 302 (538 ) Total reclassifications of (income) loss for the period Net of tax $ (1,135 ) $ 905 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of EPS calculations | Information related to the Company's EPS calculations is summarized as follows: December 31, (In thousands, except per share amounts) 2018 2017 2016 Basic EPS: Numerator: Net income $ 57,726 $ 166,623 $ 202,326 Net income attributable to noncontrolling interests (714 ) 1,781 (23 ) Net income attributable to common stockholders $ 57,012 $ 168,404 $ 202,303 Denominator: Weighted average basic common shares outstanding 43,036 41,364 39,492 Diluted EPS: Numerator: Net income attributable to common stockholders $ 57,012 $ 168,404 $ 202,303 Denominator: Weighted average basic common shares outstanding 43,036 41,364 39,492 Restricted stock and stock options 201 279 343 Warrants — 1,446 2,894 Weighted average diluted common shares outstanding 43,237 43,089 42,729 Basic income per share: $ 1.32 $ 4.07 $ 5.12 Diluted income per share: $ 1.32 $ 3.91 $ 4.73 |
RENTALS UNDER OPERATING LEASES
RENTALS UNDER OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of minimum future rentals under operating leases | The minimum future rentals based on operating leases of the consolidated properties held as of December 31, 2018 are as follows: Total Minimum Year Rent (In thousands) 2019 $ 186,342 2020 186,044 2021 194,042 2022 201,057 2023 181,622 Subsequent 1,110,260 Total $ 2,059,367 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of segment operating results | Segment operating results for the years ended December 31, 2018, 2017 and 2016 are as follows: Year Ended Year Ended December 31, (In thousands) 2018 2017 2016 Operating Assets Total revenues $ 379,124 $ 327,555 $ 295,165 Total operating expenses 200,872 170,215 151,938 Segment operating income 178,252 157,340 143,227 Depreciation and amortization 113,576 122,421 86,313 Provision for impairment — — 35,734 Interest expense (income), net 71,551 61,584 50,427 Other loss (income), net 7,005 315 (4,601 ) Equity in (earnings) loss from Real Estate and Other Affiliates (1,529 ) (3,267 ) (2,802 ) Operating Assets segment EBT (12,351 ) (23,713 ) (21,844 ) Master Planned Communities Total revenues 309,451 299,543 253,304 Total operating expenses 169,474 159,895 138,098 Segment operating income 139,977 139,648 115,206 Depreciation and amortization 243 323 311 Interest expense (income), net (26,919 ) (24,292 ) (21,085 ) Other loss (income), net (18 ) (3,500 ) — Equity in (earnings) loss from Real Estate and Other Affiliates (36,284 ) (23,234 ) (43,501 ) MPC segment EBT 202,955 190,351 179,481 Strategic Developments Total revenues 375,962 473,022 486,536 Total operating expenses 304,775 361,562 327,627 Segment operating income 71,187 111,460 158,909 Depreciation and amortization 3,307 1,210 2,744 Interest expense (income), net (18,767 ) (25,467 ) (17,437 ) Other loss (income), net (3,015 ) (108 ) (611 ) Equity in (earnings) loss from Real Estate and Other Affiliates (2,124 ) 550 (10,515 ) Gains on sales of properties — (51,242 ) (140,549 ) Strategic Developments EBT 91,786 186,517 325,277 Consolidated segment Total revenues 1,064,537 1,100,120 1,035,005 Total operating expenses 675,121 691,672 617,663 Segment operating income 389,416 408,448 417,342 Depreciation and amortization 117,126 123,954 89,368 Provision for impairment — — 35,734 Interest expense (income), net 25,865 11,825 11,905 Other loss (income), net 3,972 (3,293 ) (5,212 ) Equity in (earnings) loss from Real Estate and Other Affiliates (39,937 ) (25,951 ) (56,818 ) Gains on sales of properties — (51,242 ) (140,549 ) Consolidated segment EBT 282,390 353,155 482,914 Corporate expenses and other items 224,664 186,532 280,588 Net income 57,726 166,623 202,326 Net (income) loss attributable to noncontrolling interests (714 ) 1,781 (23 ) Net income attributable to common stockholders $ 57,012 $ 168,404 $ 202,303 |
Summary of assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets | The assets by segment and the reconciliation of total segment assets to the total assets in the Consolidated Balance Sheets are summarized as follows: December 31, (In thousands) 2018 2017 Master Planned Communities $ 2,076,678 $ 1,999,090 Operating Assets 3,124,287 2,489,177 Strategic Developments 1,806,206 1,511,612 Total segment assets 7,007,171 5,999,879 Corporate and other 348,628 729,185 Total assets $ 7,355,799 $ 6,729,064 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | 2018 First Second Third Fourth (In thousands, except share amounts) Quarter Quarter Quarter Quarter Total revenues $ 161,679 $ 181,005 $ 257,160 $ 464,693 Operating income 2,539 (8,295 ) 42,312 70,254 Net income 1,834 (5,879 ) 23,847 37,924 Net income attributable to common stockholders 1,474 (5,088 ) 23,365 37,261 Earnings per share: Basic 0.03 (0.12 ) 0.54 0.87 Diluted (a) 0.03 (0.12 ) 0.54 0.86 Weighted average shares outstanding: Basic 42,976 42,573 43,066 43,075 Diluted 43,363 42,942 43,317 43,250 2017 First Second Third Fourth (In thousands, except share amounts) Quarter Quarter Quarter Quarter Total revenues $ 231,762 $ 308,639 $ 258,736 $ 300,983 Operating income 77,554 54,133 24,372 62,443 Net income 5,659 3,120 10,516 147,328 Net income attributable to common stockholders 5,659 3,120 10,504 149,121 Earnings per share: Basic 0.14 0.08 0.25 3.48 Diluted (a) 0.13 0.07 0.24 3.46 Weighted average shares outstanding: Basic 39,799 40,373 42,845 42,860 Diluted 42,757 43,051 43,267 43,120 (a) Diluted earnings per share includes the impact of dilutive warrants, in the money options and restricted stock. Net income used in the calculation of EPS was also adjusted for the warrant gain during the period, where applicable. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Jan. 01, 2018USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Prepaid expenses and other assets, net | $ 411,636,000 | $ 370,027,000 | |||||
Number of business segment | item | 3 | ||||||
Adjustment to depreciation due to change in estimated useful life | $ 113,518,000 | 116,401,000 | $ 81,878,000 | ||||
Impairments | 0 | 0 | 35,734,000 | ||||
Tenant incentives and other receivables | 8,745,000 | 8,482,000 | |||||
Deferred leasing costs, accumulated amortization | 24,800,000 | 18,900,000 | |||||
Accumulated deficit | 120,341,000 | 109,508,000 | |||||
Deferred tax liabilities | 157,188,000 | 160,850,000 | |||||
Condominium receivables | 0 | 158,516,000 | |||||
Property, Plant and Equipment, Net | 5,782,395,000 | 5,033,527,000 | |||||
Developments | 1,290,068,000 | 1,196,582,000 | |||||
Accounts payable and accrued expenses | 779,272,000 | 521,718,000 | |||||
Reclassification out of AOCI to retained earnings | $ 1,100,000 | 1,148,000 | [1] | 0 | [1] | 0 | [1] |
Cumulative effect of adjustment | (69,732,000) | ||||||
Reclassification of cash used in operating activities | (210,520,000) | (165,567,000) | (239,103,000) | ||||
Reclassification of cash used in investing activities | 841,771,000 | 315,604,000 | 33,958,000 | ||||
TIF receivable | 2,470,000 | 14,444,000 | |||||
Remaining performance obligation | $ 900,000,000 | ||||||
Service Life | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to depreciation due to change in estimated useful life | $ 25,500,000 | ||||||
Impact on diluted EPS resulting from depreciation adjustment (in dollars per share) | $ / shares | $ 0.59 | ||||||
Minimum | Master Planned Communities | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Estimated useful life of MPC assets | 20 years | ||||||
Maximum | Master Planned Communities | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Estimated useful life of MPC assets | 40 years | ||||||
Accounting Standards Update 2016-18 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Prepaid expenses and other assets, net | $ (103,200,000) | $ (249,600,000) | |||||
Reclassification of cash used in operating activities | 153,500,000 | 180,200,000 | |||||
Reclassification of cash used in investing activities | 7,100,000 | 4,600,000 | |||||
Impact of Adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Prepaid expenses and other assets, net | 5,600,000 | (75,057,000) | |||||
Accumulated deficit | 69,700,000 | 58,851,000 | |||||
Deferred tax liabilities | (19,600,000) | (16,094,000) | |||||
Condominium receivables | (154,200,000) | 99,600,000 | |||||
Property, Plant and Equipment, Net | 3,400,000 | ||||||
Developments | 150,800,000 | 153,748,000 | |||||
Accounts payable and accrued expenses | $ 95,000,000 | 165,525,000 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standard Update 2017-12 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adjustment | 700,000 | ||||||
Allowance for doubtful accounts | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase from write-offs | 4,714,000 | $ 1,209,000 | $ 2,271,000 | ||||
Downtown Summerlin and Seaport District Tenants | Allowance for doubtful accounts | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase from write-offs | $ 3,200,000 | ||||||
[1] | The Company adopted Accounting Standards Update ("ASU") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Asset Useful Lives, by Type) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Building and Building Improvements | Minimum | |
Estimated useful lives | 7 years |
Building and Building Improvements | Maximum | |
Estimated useful lives | 40 years |
Equipment and fixtures | Minimum | |
Estimated useful lives | 5 years |
Equipment and fixtures | Maximum | |
Estimated useful lives | 20 years |
Computer, Hardware and Software and Vehicles | Minimum | |
Estimated useful lives | 3 years |
Computer, Hardware and Software and Vehicles | Maximum | |
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Developments by Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Developments | ||
Land and improvements | $ 456,450 | $ 202,875 |
Development costs | 829,842 | 675,691 |
Condominium projects | 3,776 | 318,016 |
Total Developments | $ 1,290,068 | $ 1,196,582 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Changes in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in allowance for doubtful accounts against accounts receivables: | |||
Balance at the beginning of the period | $ 9,300 | ||
Provision for doubtful accounts | 6,078 | $ 2,710 | $ 5,664 |
Balance at the end of the period | 10,700 | 9,300 | |
Allowance for doubtful accounts | |||
Changes in allowance for doubtful accounts against accounts receivables: | |||
Balance at the beginning of the period | 9,300 | 7,799 | 4,406 |
Provision for doubtful accounts | 6,078 | 2,710 | 5,664 |
Write-offs | (4,714) | (1,209) | (2,271) |
Balance at the end of the period | $ 10,664 | $ 9,300 | $ 7,799 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Financial Statement Line Items Affected As Result Of New Revenue Recognition Standard) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Condensed Consolidated Balance Sheets (in thousands) | ||||||||||||
Buildings and equipment, net | $ 2,552,071 | $ 2,552,071 | ||||||||||
Developments | 1,290,068 | $ 1,196,582 | 1,290,068 | $ 1,196,582 | ||||||||
Deferred expenses, net | 95,714 | 80,901 | 95,714 | 80,901 | ||||||||
Prepaid expenses and other assets, net | 411,636 | 370,027 | 411,636 | 370,027 | ||||||||
Deferred tax liabilities | 157,188 | 160,850 | 157,188 | 160,850 | ||||||||
Accounts payable and accrued expenses | 779,272 | 521,718 | 779,272 | 521,718 | ||||||||
Accumulated deficit | (120,341) | (109,508) | (120,341) | (109,508) | ||||||||
Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||
Condominium rights and unit cost of sales | 262,562 | 338,361 | $ 319,325 | |||||||||
Depreciation and amortization | 126,565 | 132,252 | 95,864 | |||||||||
Operating income before other items | 107,746 | |||||||||||
Provision for income taxes | 15,492 | (45,801) | 118,450 | |||||||||
Net income | 37,924 | $ 23,847 | $ (5,879) | $ 1,834 | 147,328 | $ 10,516 | $ 3,120 | $ 5,659 | 57,726 | 166,623 | 202,326 | |
Net income attributable to common stockholders | 37,261 | $ 23,365 | $ (5,088) | $ 1,474 | $ 149,121 | $ 10,504 | $ 3,120 | $ 5,659 | 57,012 | 168,404 | 202,303 | |
Comprehensive income, net of tax: | ||||||||||||
Comprehensive income | 56,565 | 166,444 | 203,429 | |||||||||
Comprehensive income attributable to common stockholders | 55,851 | 168,225 | 203,406 | |||||||||
Condensed Consolidated Statements of Cash Flows (in thousands) | ||||||||||||
Deferred income taxes | 16,195 | (43,463) | 113,698 | |||||||||
Percentage of completion revenue recognition from sale of condominium rights | 0 | (464,251) | (485,634) | |||||||||
Recognition Under Previous Guidance | ||||||||||||
Condensed Consolidated Balance Sheets (in thousands) | ||||||||||||
Buildings and equipment, net | 2,544,982 | 2,544,982 | ||||||||||
Developments | 1,136,320 | 1,136,320 | ||||||||||
Deferred expenses, net | 90,914 | 90,914 | ||||||||||
Prepaid expenses and other assets, net | 486,693 | 486,693 | ||||||||||
Deferred tax liabilities | 173,282 | 173,282 | ||||||||||
Accounts payable and accrued expenses | 613,747 | 613,747 | ||||||||||
Accumulated deficit | (61,490) | (61,490) | ||||||||||
Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||
Condominium rights and unit cost of sales | 410,281 | |||||||||||
Depreciation and amortization | 123,671 | |||||||||||
Operating income before other items | 93,315 | |||||||||||
Provision for income taxes | 11,943 | |||||||||||
Net income | 46,844 | |||||||||||
Net income attributable to common stockholders | 46,130 | |||||||||||
Comprehensive income, net of tax: | ||||||||||||
Comprehensive income | 45,683 | |||||||||||
Comprehensive income attributable to common stockholders | 44,969 | |||||||||||
Condensed Consolidated Statements of Cash Flows (in thousands) | ||||||||||||
Deferred income taxes | 12,646 | |||||||||||
Percentage of completion revenue recognition from sale of condominium rights | (130,395) | |||||||||||
Impact of Adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||||||||||
Condensed Consolidated Balance Sheets (in thousands) | ||||||||||||
Buildings and equipment, net | 7,089 | 7,089 | ||||||||||
Developments | 153,748 | 153,748 | $ 150,800 | |||||||||
Deferred expenses, net | 4,800 | 4,800 | ||||||||||
Prepaid expenses and other assets, net | (75,057) | (75,057) | 5,600 | |||||||||
Deferred tax liabilities | (16,094) | (16,094) | (19,600) | |||||||||
Accounts payable and accrued expenses | 165,525 | 165,525 | 95,000 | |||||||||
Accumulated deficit | $ (58,851) | (58,851) | $ (69,700) | |||||||||
Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||
Condominium rights and unit cost of sales | (147,719) | |||||||||||
Depreciation and amortization | 2,894 | |||||||||||
Operating income before other items | 14,431 | |||||||||||
Provision for income taxes | 3,549 | |||||||||||
Net income | 10,882 | |||||||||||
Net income attributable to common stockholders | 10,882 | |||||||||||
Comprehensive income, net of tax: | ||||||||||||
Comprehensive income | 10,882 | |||||||||||
Comprehensive income attributable to common stockholders | 10,882 | |||||||||||
Condensed Consolidated Statements of Cash Flows (in thousands) | ||||||||||||
Deferred income taxes | 3,549 | |||||||||||
Percentage of completion revenue recognition from sale of condominium rights | 130,395 | |||||||||||
Condominium rights and unit sales | ||||||||||||
Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||
Revenue | 357,720 | $ 464,251 | $ 485,634 | |||||||||
Condominium rights and unit sales | Recognition Under Previous Guidance | ||||||||||||
Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||
Revenue | 488,115 | |||||||||||
Condominium rights and unit sales | Impact of Adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | ||||||||||||
Condensed Consolidated Statements of Operations (in thousands) | ||||||||||||
Revenue | $ (130,395) |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Minimum rents | $ 207,315 | $ 183,025 | $ 173,268 | ||||||||
Tenant recoveries | 49,993 | 45,814 | 44,330 | ||||||||
Total rental income | 257,308 | ||||||||||
Total revenues | $ 464,693 | $ 257,160 | $ 181,005 | $ 161,679 | $ 300,983 | $ 258,736 | $ 308,639 | $ 231,762 | 1,064,537 | 1,100,120 | 1,035,005 |
Recognized at a point in time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 728,747 | ||||||||||
Recognized at a point in time and/or over time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 78,482 | ||||||||||
Condominium rights and unit sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 357,720 | 464,251 | 485,634 | ||||||||
Condominium rights and unit sales | Recognized at a point in time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 357,720 | ||||||||||
Master Planned Community land sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 261,905 | 248,595 | 215,318 | ||||||||
Master Planned Community land sales | Recognized at a point in time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 261,905 | ||||||||||
Hospitality revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 82,037 | 76,020 | 62,252 | ||||||||
Hospitality revenues | Recognized at a point in time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 82,037 | ||||||||||
Builder price participation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 27,085 | 22,835 | 21,386 | ||||||||
Builder price participation | Recognized at a point in time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 27,085 | ||||||||||
Other land revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 21,314 | 28,166 | 16,232 | ||||||||
Other land revenues | Recognized at a point in time and/or over time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 21,314 | ||||||||||
Other rental and property revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 57,168 | 31,414 | 16,585 | ||||||||
Other rental and property revenues | Recognized at a point in time and/or over time: | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 57,168 | ||||||||||
Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,064,537 | 1,100,120 | 1,035,005 | ||||||||
Operating Segments | Master Planned Communities | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 309,451 | 299,543 | 253,304 | ||||||||
Operating Segments | Operating Assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 379,124 | 327,555 | 295,165 | ||||||||
Operating Segments | Strategic Developments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 375,962 | $ 473,022 | $ 486,536 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Contract with Customer, Asset and Liability) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Change In Contract With Customer, Asset [Roll Forward] | |
Beginning balance | $ 0 |
Consideration earned during the period | (35,834) |
Consideration received during the period | 35,834 |
Ending balance | 0 |
Change In Contract With Customer, Liability [Roll Forward] | |
Beginning balance | 179,179 |
Consideration earned during the period | (308,898) |
Consideration received during the period | 426,215 |
Ending balance | $ 296,496 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Remaining Unsatisfied Performance Obligations) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 900,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 511,461 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 29,049 |
Remaining performance obligation, expected timing of satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 402,974 |
Remaining performance obligation, expected timing of satisfaction period |
REAL ESTATE AND OTHER AFFILIA_3
REAL ESTATE AND OTHER AFFILIATES (Summary of Investments in Real Estate and Other Affiliates) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 01, 2017 | |
Investment in Real Estate and Other Affiliates | ||||
Carrying Value | $ 102,287 | $ 76,593 | ||
Share of Earnings/Dividends | $ 39,954 | 25,498 | $ 56,818 | |
Number of variable interest entities in which entity is primary beneficiary | item | 6 | |||
Carrying values of the liabilities associated with the operations of the consolidated VIEs | $ 99,800 | 2,700 | ||
Carrying values of the assets associated with the operations of the consolidated VIEs | 190,600 | 24,800 | ||
Cost-method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Carrying Value | 3,952 | 3,952 | ||
Share of Earnings/Dividends | 3,451 | 2,927 | 2,616 | |
Las Vegas 51s | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | |||
Share of Earnings/Dividends | 200 | |||
Circle T Ranch and Power Center | ||||
Investment in Real Estate and Other Affiliates | ||||
Share of Earnings/Dividends | 10,500 | |||
Accounts Payable and Accrued Liabilities | The Metropolitan Downtown Columbia | ||||
Investment in Real Estate and Other Affiliates | ||||
Investment deficit position | $ 3,800 | $ 2,600 | ||
Master Planned Communities | The Summit | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 0.00% | 0.00% | ||
Carrying Value | $ 72,171 | $ 45,886 | ||
Share of Earnings/Dividends | $ 36,284 | $ 23,234 | 43,501 | |
Operating Assets | Las Vegas 51s | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 100.00% | 100.00% | ||
Carrying Value | $ 0 | $ 0 | ||
Share of Earnings/Dividends | $ 0 | $ (152) | 12 | |
Operating Assets | Constellation | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 100.00% | 100.00% | ||
Carrying Value | $ (96) | $ 0 | ||
Share of Earnings/Dividends | $ (96) | $ (323) | (54) | |
Operating Assets | The Metropolitan Downtown Columbia | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 0 | $ 0 | ||
Share of Earnings/Dividends | $ 467 | $ 390 | (800) | |
Operating Assets | Millennium Six Pines Apartments | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 100.00% | 100.00% | ||
Carrying Value | $ 0 | $ 0 | ||
Share of Earnings/Dividends | $ 0 | $ 0 | 44 | |
Operating Assets | Stewart Title of Montgomery County, TX | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 3,920 | $ 3,673 | ||
Share of Earnings/Dividends | $ 573 | $ 386 | 696 | |
Operating Assets | Woodlands Sarofim 1 | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 20.00% | 20.00% | ||
Carrying Value | $ 2,760 | $ 2,696 | ||
Share of Earnings/Dividends | $ 94 | $ 53 | 182 | |
Operating Assets | m.flats/TEN.M | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 4,701 | $ 0 | ||
Share of Earnings/Dividends | $ (2,478) | $ 0 | 0 | |
Operating Assets | Mr. C Seaport | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 35.00% | 35.00% | ||
Carrying Value | $ 8,721 | $ 0 | ||
Share of Earnings/Dividends | (465) | 0 | 0 | |
Strategic Developments | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Carrying Value | 98,335 | 72,641 | ||
Share of Earnings/Dividends | $ 36,503 | $ 22,571 | 54,202 | |
Strategic Developments | m.flats/TEN.M | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 0 | $ 6,521 | ||
Share of Earnings/Dividends | $ 0 | $ (415) | 0 | |
Strategic Developments | Mr. C Seaport | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 35.00% | 35.00% | ||
Carrying Value | $ 0 | $ 8,651 | ||
Share of Earnings/Dividends | $ (240) | $ (643) | 106 | |
Strategic Developments | Circle T Ranch and Power Center | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 5,989 | $ 4,455 | ||
Share of Earnings/Dividends | $ 1,534 | $ 0 | 10,497 | |
Strategic Developments | HHMK Development LLC | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 10 | $ 10 | ||
Share of Earnings/Dividends | $ 0 | $ 0 | 0 | |
Strategic Developments | KR Holdings LLC | Equity Method Investments | ||||
Investment in Real Estate and Other Affiliates | ||||
Economic/Legal Ownership | 50.00% | 50.00% | ||
Carrying Value | $ 159 | $ 749 | ||
Share of Earnings/Dividends | 830 | $ 41 | $ 18 | |
Unconsolidated Properties | ||||
Investment in Real Estate and Other Affiliates | ||||
Secured debt | 201,500 | |||
Share of the entity in secured debt | $ 96,200 |
REAL ESTATE AND OTHER AFFILIA_4
REAL ESTATE AND OTHER AFFILIATES (Narrative) (Details) | Jun. 01, 2016ft² | Oct. 04, 2013USD ($)a | Jan. 31, 2016USD ($)extention_option | Jun. 30, 2018USD ($) | Mar. 31, 2015USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) |
Real Estate and Other Affiliates | |||||||||
Investment in Real Estate and Other Affiliates | $ 102,287,000 | $ 76,593,000 | |||||||
Number of variable interest entities in which entity is primary beneficiary | item | 6 | ||||||||
Carrying values of the assets associated with the operations of the consolidated VIEs | $ 190,600,000 | 24,800,000 | |||||||
Carrying values of the liabilities associated with the operations of the consolidated VIEs | $ 99,800,000 | $ 2,700,000 | |||||||
Number of business segment | item | 3 | ||||||||
Acquisition of 1% partnership interest in 110 North Wacker | 1.00% | 1.00% | 1.00% | ||||||
Equity in earnings from Real Estate and Other Affiliates | $ 39,954,000 | $ 25,498,000 | $ 56,818,000 | ||||||
USAA Joint Venture | |||||||||
Real Estate and Other Affiliates | |||||||||
Fair value of the land contributed to joint venture | $ 33,600,000 | ||||||||
Contribution of property | 85,000,000 | ||||||||
Joint venture capital obligations | $ 42,700,000 | ||||||||
Joint venture agreement, equity ownership percentage | 33.00% | ||||||||
Joint venture, preferred return on capital | 9.00% | ||||||||
Acquisition of 1% partnership interest in 110 North Wacker | 90.00% | ||||||||
USAA Joint Venture | USAA | |||||||||
Real Estate and Other Affiliates | |||||||||
Capital contribution | $ 64,000,000 | ||||||||
Joint venture capital obligations | $ 105,600,000 | ||||||||
Joint venture, preferred return on capital | 9.00% | ||||||||
Joint venture, preferred return on capital, percent of cash distributions | 11.11% | ||||||||
Acquisition of 1% partnership interest in 110 North Wacker | 10.00% | ||||||||
The Summit | |||||||||
Real Estate and Other Affiliates | |||||||||
Preferred return, on capital (as a percent) | 5.00% | ||||||||
Entitlement of distribution by joint venture (in times) | item | 2 | ||||||||
Circle T Ranch and Power Center | |||||||||
Real Estate and Other Affiliates | |||||||||
Area of land sold | ft² | 72 | ||||||||
Equity in earnings from Real Estate and Other Affiliates | 10,500,000 | ||||||||
m.flats/TEN.M | |||||||||
Real Estate and Other Affiliates | |||||||||
Fair value of the land contributed to joint venture | $ 4,000,000 | ||||||||
Transaction value of the land contributed to joint venture | $ 23,400,000 | ||||||||
Area of land contributed to the joint venture (in acres) | a | 5 | ||||||||
Additional capitalized development costs incurred resulting from contribution of land | $ 3,100,000 | ||||||||
Total book value contribution | 7,100,000 | ||||||||
Transaction value, per constructed unit of land contributed to joint venture | $ 53,500 | ||||||||
Distribution of the cash contributed by joint venture partner | $ 7,300,000 | ||||||||
Contribution made till date | 6,300,000 | ||||||||
Gain recognized on the sale of Redlands Promenade | 200,000 | ||||||||
m.flats/TEN.M | Kettler Inc | |||||||||
Real Estate and Other Affiliates | |||||||||
Amount funded in cash to joint venture | 16,100,000 | ||||||||
m.flats/TEN.M | Construction Loan Payable | |||||||||
Real Estate and Other Affiliates | |||||||||
Non-recourse construction loan | $ 88,000,000 | ||||||||
Number of extension options | extention_option | 3 | ||||||||
Option to extend, term | 1 year | ||||||||
33 Peck Slip | |||||||||
Real Estate and Other Affiliates | |||||||||
Capital contribution | $ 6,000,000 | ||||||||
Amount funded in cash to joint venture | 700,000 | 2,300,000 | |||||||
33 Peck Slip | Bridge Loan | |||||||||
Real Estate and Other Affiliates | |||||||||
Interest rate margin (as a percent) | 5.00% | ||||||||
Amount of bridge loan | $ 25,000,000 | ||||||||
33 Peck Slip | Construction Loan Payable | |||||||||
Real Estate and Other Affiliates | |||||||||
Redevelopment loan | $ 36,000,000 | ||||||||
Equity Method Investments | The Summit | |||||||||
Real Estate and Other Affiliates | |||||||||
Fair value of the land contributed to joint venture | $ 13,400,000 | ||||||||
SID Bonds transferred to a joint venture | 1,300,000 | ||||||||
Transaction value of the land contributed to joint venture | 125,400,000 | ||||||||
Value of land contributed to joint venture, price per acre | 226,000 | ||||||||
Maximum capital contribution required | $ 30,000,000 | ||||||||
One Month LIBOR | |||||||||
Real Estate and Other Affiliates | |||||||||
Interest rate margin (as a percent) | 2.5027% | ||||||||
One Month LIBOR | m.flats/TEN.M | Construction Loan Payable | |||||||||
Real Estate and Other Affiliates | |||||||||
Interest rate margin (as a percent) | 2.40% | ||||||||
Operating Assets | Equity Method Investments | Mr. C Seaport | |||||||||
Real Estate and Other Affiliates | |||||||||
Investment in Real Estate and Other Affiliates | $ 8,721,000 | 0 | |||||||
Equity in earnings from Real Estate and Other Affiliates | (465,000) | 0 | 0 | ||||||
Operating Assets | Equity Method Investments | m.flats/TEN.M | |||||||||
Real Estate and Other Affiliates | |||||||||
Investment in Real Estate and Other Affiliates | 4,701,000 | 0 | |||||||
Equity in earnings from Real Estate and Other Affiliates | (2,478,000) | $ 0 | $ 0 | ||||||
Unconsolidated Properties | |||||||||
Real Estate and Other Affiliates | |||||||||
Secured debt | 201,500,000 | ||||||||
Share of the entity in secured debt | $ 96,200,000 | ||||||||
110 N Wacker | Operating Assets | |||||||||
Real Estate and Other Affiliates | |||||||||
Recourse percentage | 18.00% | ||||||||
Facility amount | $ 9,000,000 |
REAL ESTATE AND OTHER AFFILIA_5
REAL ESTATE AND OTHER AFFILIATES (Relevant Financial Information) (Details) - The Summit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate and Other Affiliates | |||
Total Assets | $ 218.9 | $ 166.9 | |
Total Liabilities | 144.6 | 118.9 | |
Total Equity | 74.3 | 48 | |
Revenues | 101.2 | 58.6 | $ 79.8 |
Net income | 36.3 | 23.2 | 43.5 |
Gross Margin | $ 41.9 | $ 31.2 | $ 47.1 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS (Narrative) (Details) ft² in Thousands | Sep. 07, 2018USD ($)ft²abuilding | Jun. 08, 2018USD ($)aextention_option | Dec. 28, 2017USD ($) | Mar. 01, 2017USD ($) | Jan. 18, 2017USD ($)a | Jan. 06, 2017USD ($)a | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 12, 2017USD ($) |
Number of buildings | building | 2 | |||||||||||||||||||
Area of real estate property | ft² | 257 | |||||||||||||||||||
Area of land | a | 12.9 | |||||||||||||||||||
Payments to acquire real estate | $ 53,000,000 | |||||||||||||||||||
(Loss) gain on disposal of operating assets | $ (4,000) | $ 3,868,000 | $ (1,117,000) | |||||||||||||||||
Aggregate principal amount of debt issued | $ 200,000,000 | |||||||||||||||||||
Equity in earnings from Real Estate and Other Affiliates | 39,954,000 | 25,498,000 | 56,818,000 | |||||||||||||||||
Assets acquired and consolidated into financial statements | $ 43,561,000 | |||||||||||||||||||
Revenues since the acquisition date | $ 464,693,000 | $ 257,160,000 | $ 181,005,000 | $ 161,679,000 | $ 300,983,000 | $ 258,736,000 | $ 308,639,000 | $ 231,762,000 | 1,064,537,000 | 1,100,120,000 | 1,035,005,000 | |||||||||
Pre-tax net loss since the acquisition date | $ 73,218,000 | 120,822,000 | $ 320,776,000 | |||||||||||||||||
Constellation | ||||||||||||||||||||
Ownership interest (as a percent) | 50.00% | |||||||||||||||||||
Portion of refinanced mortgage proceeds used to acquire partner's interest | $ 8,000,000 | |||||||||||||||||||
Liabilities acquired percentage | 50.00% | |||||||||||||||||||
Purchase price of acquisition | $ 16,000,000 | |||||||||||||||||||
Gain recognized from acquisition | 17,800,000 | |||||||||||||||||||
Equity in earnings from Real Estate and Other Affiliates | 300,000 | |||||||||||||||||||
Constellation | Construction Loan Payable | ||||||||||||||||||||
Construction loan | $ 15,800,000 | |||||||||||||||||||
Constellation | Constellation Note Payable | ||||||||||||||||||||
Interest rate (as a percent) | 4.07% | |||||||||||||||||||
Aggregate principal amount of debt issued | $ 24,200,000 | |||||||||||||||||||
Las Vegas 51s | ||||||||||||||||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||||||||||||
Adjustment to allocate from identified finite-lived intangibles | $ 7,900,000 | |||||||||||||||||||
Landmark Mall | ||||||||||||||||||||
Area of real estate property | a | 11.4 | |||||||||||||||||||
Purchase price of acquisition | $ 22,200,000 | |||||||||||||||||||
Las Vegas 51s | ||||||||||||||||||||
Portion of refinanced mortgage proceeds used to acquire partner's interest | 16,400,000 | |||||||||||||||||||
Gain recognized from acquisition | $ 5,400,000 | |||||||||||||||||||
Equity in earnings from Real Estate and Other Affiliates | 200,000 | |||||||||||||||||||
Economic/Legal Ownership | 50.00% | |||||||||||||||||||
Contingent liability recorded per the terms of the purchase agreement | $ 400,000 | |||||||||||||||||||
Adjustment to allocate from identified finite-lived intangibles | $ 36,000,000 | |||||||||||||||||||
Acquired intangible assets weighted average amortization period | 11 years | |||||||||||||||||||
Assets acquired and consolidated into financial statements | $ 24,900,000 | |||||||||||||||||||
Liabilities assumed and consolidated into financial statements | $ 3,200,000 | |||||||||||||||||||
Revenues | 1,300,000 | |||||||||||||||||||
Revenues since the acquisition date | $ 6,800,000 | |||||||||||||||||||
Pre-tax net loss since the acquisition date | $ 600,000 | |||||||||||||||||||
Five non-core assets | Disposal by Sale | ||||||||||||||||||||
Number of assets sold | item | 5 | |||||||||||||||||||
Proceeds from sale of real estate | $ 52,600,000 | |||||||||||||||||||
(Loss) gain on disposal of operating assets | $ 23,100,000 | |||||||||||||||||||
Corporate gains on sale of properties | 19,200,000 | |||||||||||||||||||
Gain lLoss) on disposition of business | $ 3,900,000 | |||||||||||||||||||
The Outlet Collection, Elk Grove | ||||||||||||||||||||
Area of land | a | 100 | |||||||||||||||||||
Area of land under development | a | 64 | |||||||||||||||||||
The Outlet Collection, Elk Grove | Disposal by Sale | ||||||||||||||||||||
Proceeds from sale of real estate | $ 36,000,000 | |||||||||||||||||||
Corporate gains on sale of properties | $ 32,200,000 | |||||||||||||||||||
Area of land sold | a | 36 | |||||||||||||||||||
250 Water Street | ||||||||||||||||||||
Area of land purchased | a | 1 | |||||||||||||||||||
Purchase price of land acquired | $ 180,000,000 | |||||||||||||||||||
Payments to acquire land | 53,100,000 | |||||||||||||||||||
Notes Payable, Other Payables | 250 Water Street | ||||||||||||||||||||
Short-term debt | $ 129,700,000 | |||||||||||||||||||
Interest free term | 6 months | |||||||||||||||||||
Number of extension options | extention_option | 3 | |||||||||||||||||||
Extension option, term | 6 months | |||||||||||||||||||
Interest rate (as a percent) | 6.00% | |||||||||||||||||||
Extension option, minimum paydown | $ 30,000,000 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS (Acquisitions) (Details) $ in Thousands | Dec. 28, 2017USD ($) |
ACQUISITIONS AND DISPOSITIONS | |
Building | $ 38,213 |
Land | 3,069 |
Improvements | 957 |
Furniture, fixtures and equipment | 590 |
Leases in place | 714 |
Other identifiable assets | 18 |
Total | $ 43,561 |
IMPAIRMENT (Details)
IMPAIRMENT (Details) | Dec. 29, 2016USD ($) | Sep. 30, 2016USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 07, 2018ft² |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Impairment on real estate | $ 0 | $ 0 | ||||
Area of real estate property | ft² | 257,000 | |||||
Provision for impairment | $ 0 | $ 0 | $ 35,734,000 | |||
Capitalization rate (as a percent) | 6.75% | 6.75% | 6.75% | |||
Park West | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Provision for impairment | $ 0 | |||||
Park West | Disposal by Sale | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Area of real estate property | ft² | 249,177 | |||||
Provision for impairment | $ 35,700,000 | |||||
Proceeds from sale of real estate | $ 32,500,000 | |||||
Gain recognized on the sale of Redlands Promenade | $ 1,100,000 |
OTHER ASSETS AND LIABILITIES (D
OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Prepaid Expenses and Other Assets | |||
Condominium inventory | $ 198,352 | $ 0 | |
Straight-line rent | 50,493 | 39,136 | |
Intangibles | 33,955 | 34,802 | |
Other | 20,364 | 4,798 | |
Security and escrow deposits | 17,670 | 16,949 | |
Prepaid expenses | 16,981 | 11,731 | |
Equipment, net of accumulated depreciation of $8.3 million and $6.9 million, respectively | 15,543 | 16,955 | |
Tenant incentives and other receivables | 8,745 | 8,482 | |
TIF receivable | 2,470 | 14,444 | |
Federal income tax receivable | 2,000 | 2,198 | |
Interest rate swap derivative assets | 346 | 4,470 | |
Condominium receivables | 0 | 158,516 | |
Prepaid expenses and other assets, net | 411,636 | 370,027 | |
Other equipment accumulated depreciation | 8,300 | 6,900 | |
Decrease in prepaid expenses and other assets | 41,600 | ||
Increase in condominium inventory | 198,400 | ||
Decrease condominium receivables | (158,500) | ||
Accounts Payable and Accrued Expenses | |||
Condominium deposit liabilities | 263,636 | 55,975 | |
Construction payables | 258,749 | 217,838 | |
Deferred income | 42,734 | 53,337 | |
Accrued payroll and other employee liabilities | 42,591 | 41,236 | |
Accounts payable and accrued expenses | 38,748 | 35,887 | |
Other | 29,283 | 34,699 | |
Accrued real estate taxes | 26,171 | 22,289 | |
Accrued interest | 23,080 | 20,322 | |
Tenant and other deposits | 20,893 | 18,937 | |
Straight-line ground rent liability | 16,870 | 14,944 | |
Interest rate swap derivative liabilities | 16,517 | 5,961 | |
Above-market ground leases | 0 | 293 | |
Accounts payable and accrued expenses | 779,272 | 521,718 | |
Increase (decrease) in accounts payable and accrued expenses | 257,600 | ||
Increase in condominium deposits liability | 207,700 | ||
Increase in construction payables | 40,900 | ||
Ground Leases below Market | |||
Prepaid Expenses and Other Assets | |||
SID receivables | 18,838 | 26,430 | |
Net carrying amount | 18,296 | 18,647 | |
Leases, Acquired-in-Place | |||
Prepaid Expenses and Other Assets | |||
Net carrying amount | 6,539 | 10,821 | |
Ground Leases above Market | |||
Prepaid Expenses and Other Assets | |||
Net carrying amount | 1,044 | $ 1,648 | |
Impact of Adoption of ASC Topic 606 | Accounting Standards Update 2014-09 | |||
Prepaid Expenses and Other Assets | |||
Condominium receivables | 99,600 | $ (154,200) | |
Prepaid expenses and other assets, net | (75,057) | 5,600 | |
Accounts Payable and Accrued Expenses | |||
Accounts payable and accrued expenses | $ 165,525 | $ 95,000 |
INTANGIBLES (Details)
INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible assets and liabilities | |||
Indefinite lived intangibles | $ 25,028 | $ 25,028 | |
Goodwill | 1,307 | 1,307 | |
Total indefinite lived intangibles | 26,335 | 26,335 | |
Total amortizing intangibles | 29,313 | 35,523 | |
Amortization/accretion of intangible assets and liabilities | 6,000 | 8,900 | $ 6,300 |
Estimated future amortization | |||
2,019 | 2,300 | ||
2,020 | 2,300 | ||
2,021 | 1,700 | ||
2,022 | 1,300 | ||
Thereafter | 21,700 | ||
Other Intangible Asset | |||
Intangible assets and liabilities | |||
Gross Assets | 10,278 | 10,278 | |
Accumulated Amortization | (2,658) | (1,812) | |
Net Carrying Amount | 7,620 | 8,466 | |
Leases, Acquired-in-Place | |||
Intangible assets and liabilities | |||
Gross Assets | 19,966 | 22,304 | |
Accumulated Amortization | (13,427) | (11,483) | |
Net Carrying Amount | 6,539 | 10,821 | |
Tenant Leases above Market | |||
Intangible assets and liabilities | |||
Gross Assets | 3,313 | 4,171 | |
Accumulated Amortization | (2,269) | (2,523) | |
Net Carrying Amount | 1,044 | 1,648 | |
Tenant Leases below Market | |||
Intangible assets and liabilities | |||
Gross Liability | (7,326) | (6,454) | |
Accumulated Accretion | 3,140 | 2,688 | |
Net Carrying Amount | (4,186) | (3,766) | |
Ground Leases above Market | |||
Intangible assets and liabilities | |||
Indefinite lived intangible liabilities | 0 | ||
Gross Liability | (293) | ||
Accumulated Accretion | 0 | ||
Net Carrying Amount | 1,044 | 1,648 | |
Net Carrying Amount | (293) | ||
Ground Leases below Market | |||
Intangible assets and liabilities | |||
Gross Assets | 23,096 | 23,096 | |
Accumulated Amortization | (4,800) | (4,449) | |
Net Carrying Amount | $ 18,296 | $ 18,647 |
MORTGAGES, NOTES AND LOANS PA_3
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Summary of Mortgages, Notes and Loans Payable) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 16, 2017 |
Mortgages, notes and loans payable | |||
Unamortized bond issuance costs | $ (6,096) | $ (6,898) | |
Deferred financing costs | (27,902) | (12,946) | |
Unsecured 5.375% Senior Notes | |||
Mortgages, notes and loans payable | |||
Fixed-rate debt | $ 1,000,000 | 1,000,000 | |
Interest rate (as a percent) | 5.375% | 5.375% | |
Secured Mortgages, Notes and Loans Payable | |||
Mortgages, notes and loans payable | |||
Fixed-rate debt | $ 648,707 | 499,299 | |
Variable-rate debt | 1,551,336 | 1,350,914 | |
Amount of hedged item | 615,000 | 428,300 | |
Special Improvement District Bonds | |||
Mortgages, notes and loans payable | |||
Fixed-rate debt | 15,168 | 27,576 | |
Secured Mortgages, Notes and Loans Payable | Interest Rate Collar | |||
Mortgages, notes and loans payable | |||
Variable-rate debt | 50,000 | ||
Secured Mortgages, Notes and Loans Payable | Interest Rate Cap | |||
Mortgages, notes and loans payable | |||
Variable-rate debt | $ 75,000 | $ 108,600 |
MORTGAGES, NOTES AND LOANS PA_4
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Schedule of Debt by Property) (Details) - USD ($) | Sep. 13, 2017 | Aug. 11, 2017 | Apr. 27, 2017 | May 31, 2017 | Dec. 31, 2018 | May 31, 2018 | Dec. 31, 2017 | Mar. 16, 2017 | Feb. 23, 2017 | Jan. 19, 2017 |
Mortgages, notes and loans payable | ||||||||||
Carrying amount | $ 3,215,211,000 | $ 1,000,000,000 | ||||||||
Unamortized bond issuance costs | (6,096,000) | (6,898,000) | ||||||||
Deferred financing costs | (27,902,000) | (12,946,000) | ||||||||
Total | 3,181,213,000 | 2,857,945,000 | ||||||||
Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Carrying amount | 226,608,000 | 239,764,000 | ||||||||
Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Carrying amount | 1,636,700,000 | 1,570,512,000 | ||||||||
Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Carrying amount | $ 339,494,000 | 52,530,000 | ||||||||
Hughes Landing Boulevard1725 To35 | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.14% | |||||||||
Facility amount | $ 143,000,000 | |||||||||
Carrying amount | $ 0 | 117,417,000 | ||||||||
Westin At The Woodlands | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.14% | |||||||||
Facility amount | $ 57,946,000 | |||||||||
Carrying amount | $ 0 | 57,946,000 | ||||||||
Outlet At Riverwalk Properties | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.00% | |||||||||
Carrying amount | $ 47,552,000 | 53,841,000 | ||||||||
Three Hughes Landing | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.10% | |||||||||
Facility amount | $ 62,000,000 | |||||||||
Carrying amount | $ 55,759,000 | 45,058,000 | ||||||||
Lakeland Village Center at Bridgeland | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.84% | |||||||||
Facility amount | $ 14,000,000 | |||||||||
Carrying amount | $ 0 | 11,470,000 | ||||||||
Embassy Suites at Hughes Landing | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.99% | |||||||||
Facility amount | $ 37,100,000 | |||||||||
Carrying amount | $ 0 | 31,245,000 | ||||||||
The Woodlands Resort and Conference Center | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.75% | |||||||||
Carrying amount | $ 62,500,000 | 65,500,000 | ||||||||
One Merriweather | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.64% | |||||||||
Facility amount | $ 49,929,000 | |||||||||
Carrying amount | $ 0 | 42,332,000 | ||||||||
Downtown Summerlin | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.65% | |||||||||
Facility amount | $ 275,900,000 | |||||||||
Carrying amount | $ 266,755,000 | 274,088,000 | ||||||||
Two Merriweather Columbia Md | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.00% | |||||||||
Facility amount | $ 33,156,000 | |||||||||
Carrying amount | $ 24,000,000 | 19,429,000 | ||||||||
Hhc242 Self Storage Facility | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.10% | |||||||||
Facility amount | $ 6,658,000 | |||||||||
Carrying amount | $ 6,604,000 | 6,243,000 | ||||||||
Hhc2978 Self Storage Facility | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.10% | |||||||||
Facility amount | $ 6,368,000 | |||||||||
Carrying amount | $ 6,042,000 | 5,634,000 | ||||||||
10 - 70 Columbia Corporate Center | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.49% | |||||||||
Carrying amount | $ 0 | 20,000,000 | ||||||||
One Mall North | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.74% | |||||||||
Carrying amount | $ 0 | 14,463,000 | ||||||||
Columbia Corporate Center1060 | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.33% | |||||||||
Carrying amount | $ 0 | 80,000,000 | ||||||||
Ward Village | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.82% | |||||||||
Carrying amount | $ 0 | 238,718,000 | ||||||||
Lakefront North | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.50% | |||||||||
Facility amount | $ 51,821,000 | |||||||||
Carrying amount | $ 21,120,000 | 0 | ||||||||
20/25 Waterway Avenue | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.79% | |||||||||
Carrying amount | $ 13,395,000 | 13,646,000 | ||||||||
Millennium Waterway Apartments | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.75% | |||||||||
Carrying amount | $ 54,083,000 | 55,095,000 | ||||||||
Aristocrat | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.90% | |||||||||
Facility amount | $ 31,118,000 | |||||||||
Carrying amount | $ 21,296,000 | 0 | ||||||||
Two Summerlin | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.90% | |||||||||
Facility amount | $ 33,432,000 | |||||||||
Carrying amount | $ 14,431,000 | 0 | ||||||||
Lake Woodlands Crossing Retail | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.30% | |||||||||
Facility amount | $ 15,523,000 | |||||||||
Carrying amount | $ 9,539,000 | 0 | ||||||||
9303 New Trails | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.88% | |||||||||
Carrying amount | $ 11,610,000 | 12,003,000 | ||||||||
4 Waterway Square | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.88% | |||||||||
Carrying amount | $ 33,998,000 | 35,151,000 | ||||||||
3831 Technology Forest Drive | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.50% | |||||||||
Carrying amount | $ 21,571,000 | 21,954,000 | ||||||||
Kewalo Harbor | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.25% | |||||||||
Facility amount | $ 11,562,000 | |||||||||
Carrying amount | $ 3,499,000 | 0 | ||||||||
Millennium Six Pines Apartments | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.39% | |||||||||
Carrying amount | $ 42,500,000 | 42,500,000 | ||||||||
3 Waterway Square | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.94% | |||||||||
Carrying amount | $ 49,013,000 | 50,327,000 | ||||||||
One Hughes Landing | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.30% | |||||||||
Carrying amount | $ 52,000,000 | 52,000,000 | ||||||||
Two Hughes Landing | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.20% | |||||||||
Carrying amount | $ 48,000,000 | 48,000,000 | ||||||||
Hockey Ground Lease | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Carrying amount | $ 141,000 | 0 | ||||||||
One Lakes Edge | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.50% | |||||||||
Carrying amount | 69,440,000 | $ 69,440,000 | ||||||||
Net assets acquired in the acquisition of Constellation | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.07% | |||||||||
Carrying amount | $ 24,200,000 | 24,200,000 | ||||||||
Hughes Landing Retail | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 3.50% | |||||||||
Carrying amount | $ 35,000,000 | 35,000,000 | ||||||||
Columbia Regional Building | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.48% | 4.48% | ||||||||
Facility amount | $ 23,000,000 | |||||||||
Carrying amount | $ 25,000,000 | 25,000,000 | $ 25,000,000 | |||||||
250 Water Street | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.00% | |||||||||
Carrying amount | $ 129,723,000 | 0 | ||||||||
Ke Kilohana | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.75% | |||||||||
Facility amount | $ 142,656,000 | |||||||||
Carrying amount | $ 96,757,000 | 0 | ||||||||
Ae'o | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.49% | |||||||||
Facility amount | $ 215,000,000 | |||||||||
Carrying amount | $ 0 | 33,603,000 | ||||||||
Fellowship Drive100 | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.00% | |||||||||
Facility amount | $ 51,426,000 | |||||||||
Carrying amount | $ 35,481,000 | 1,000 | ||||||||
Lakeside Row | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.75% | |||||||||
Facility amount | $ 34,231,000 | |||||||||
Carrying amount | $ 0 | 0 | ||||||||
Two Lakes Edge | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.65% | |||||||||
Facility amount | $ 74,000,000 | |||||||||
Carrying amount | 0 | 0 | ||||||||
110 N Wacker | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Facility amount | $ 9,000,000 | |||||||||
110 N Wacker | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.50% | |||||||||
Facility amount | $ 512,573,000 | |||||||||
Carrying amount | $ 50,000,000 | 18,926,000 | ||||||||
Percent subject to interest rate collar contract | 100.00% | |||||||||
6100 Marriweather | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.25% | |||||||||
Facility amount | $ 89,844,000 | |||||||||
Carrying amount | $ 0 | 0 | ||||||||
Columbia Multi-Family | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.25% | |||||||||
Facility amount | $ 85,657,000 | |||||||||
Carrying amount | $ 0 | 0 | ||||||||
Tanager Apartments | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.75% | |||||||||
Facility amount | $ 44,100,000 | |||||||||
Carrying amount | 0 | 0 | ||||||||
Other SID Bonds | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Carrying amount | $ 767,000 | 0 | ||||||||
Summerlin Ballpark | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.92% | |||||||||
Facility amount | $ 51,231,000 | |||||||||
Carrying amount | $ 26,766,000 | 0 | ||||||||
S124 | Summerlin South | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.95% | |||||||||
Carrying amount | $ 0 | 84,000 | ||||||||
S128 | Summerlin South | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 7.30% | |||||||||
Carrying amount | $ 213,000 | 390,000 | ||||||||
S128 | Downtown Summerlin | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.05% | |||||||||
Carrying amount | $ 2,652,000 | 2,812,000 | ||||||||
S132 | Summerlin South | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.00% | |||||||||
Carrying amount | $ 562,000 | 912,000 | ||||||||
Woodlands Master Credit Facility | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.25% | |||||||||
Facility amount | $ 180,000,000 | |||||||||
Carrying amount | $ 150,000,000 | 150,000,000 | ||||||||
Bridgeland Credit Facility | Bridgeland | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.96% | |||||||||
Facility amount | $ 65,000,000 | |||||||||
Carrying amount | $ 65,000,000 | 65,000,000 | ||||||||
S151 | Summerlin South | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.00% | |||||||||
Carrying amount | $ 913,000 | 3,763,000 | ||||||||
S128 C | Summerlin South | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.05% | |||||||||
Carrying amount | $ 3,211,000 | 4,283,000 | ||||||||
S159 | Summerlin South | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.00% | |||||||||
Carrying amount | $ 0 | 139,000 | ||||||||
S812 | Summerlin West | Master Planned Communities | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.00% | |||||||||
Carrying amount | $ 6,709,000 | 15,193,000 | ||||||||
Senior Secured Credit Facility | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.61% | |||||||||
Facility amount | $ 700,000,000 | |||||||||
Carrying amount | $ 615,000,000 | 0 | ||||||||
Percent of loan swap for fixed rate interest | 100.00% | |||||||||
Other Financing Arrangements | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 4.33% | |||||||||
Carrying amount | $ 12,409,000 | $ 14,983,000 | ||||||||
Unsecured 5.375% Senior Notes | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | ||||||||
Carrying amount | $ 1,000,000,000 | |||||||||
Maximum | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 7.30% | |||||||||
Maximum | Other SID Bonds | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 7.30% | |||||||||
Minimum | Hockey Ground Lease | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.05% | |||||||||
Minimum | Other SID Bonds | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate (as a percent) | 6.00% | |||||||||
One Month LIBOR | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 2.5027% | |||||||||
One Month LIBOR | The Woodlands Resort and Conference Center | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 2.75% | |||||||||
One Month LIBOR | Downtown Summerlin | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 2.15% | |||||||||
One Month LIBOR | Kewalo Harbor | Operating Assets | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 2.75% | |||||||||
One Month LIBOR | Fellowship Drive100 | Strategic Developments | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 1.50% | |||||||||
London Inter Bank Offered Rate Three Month Libor | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 2.8076% | |||||||||
Prime Rate | ||||||||||
Mortgages, notes and loans payable | ||||||||||
Interest rate margin (as a percent) | 5.50% |
MORTGAGES, NOTES AND LOANS PA_5
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Narrative) (Details) | Dec. 20, 2018extention_option | Dec. 17, 2018USD ($) | Dec. 05, 2018USD ($) | Oct. 29, 2018USD ($)extention_option | Oct. 11, 2018USD ($) | Sep. 25, 2018USD ($) | Sep. 21, 2018 | Sep. 18, 2018USD ($) | Sep. 11, 2018USD ($)extention_option | Jul. 27, 2018USD ($) | Jul. 20, 2018USD ($) | Jun. 08, 2018USD ($)extention_option | Apr. 30, 2018USD ($)extention_option | Apr. 13, 2018USD ($) | Mar. 26, 2018USD ($) | Jan. 25, 2018USD ($) | Jan. 19, 2018USD ($) | Oct. 27, 2017USD ($) | Oct. 19, 2017USD ($) | Sep. 13, 2017USD ($) | Aug. 11, 2017USD ($) | Apr. 27, 2017USD ($) | Mar. 16, 2017USD ($) | Feb. 23, 2017USD ($) | Dec. 31, 2018USD ($)repayment | May 31, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 04, 2018USD ($) | Oct. 28, 2018USD ($) | May 31, 2018USD ($) | Dec. 28, 2017USD ($) | Jun. 12, 2017USD ($) | Jan. 19, 2017USD ($) |
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Weighted average interest rate | 5.06% | 5.06% | 4.61% | ||||||||||||||||||||||||||||||||
Carrying amount | $ 3,215,211,000 | $ 3,215,211,000 | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 200,000,000 | ||||||||||||||||||||||||||||||||||
Repayment of debt | 838,462,000 | 1,350,226,000 | $ 333,302,000 | ||||||||||||||||||||||||||||||||
Unamortized bond issuance costs | 6,096,000 | 6,096,000 | 6,898,000 | ||||||||||||||||||||||||||||||||
Loss on redemption of senior notes due 2021 | $ (46,400,000) | 0 | 46,410,000 | $ 0 | |||||||||||||||||||||||||||||||
Naming rights and marketing agreement, term | 20 years | ||||||||||||||||||||||||||||||||||
Fair value derivative liabilities | 16,517,000 | $ 16,517,000 | 5,961,000 | ||||||||||||||||||||||||||||||||
Issuance at premium to par | 2.25% | ||||||||||||||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||||||||||||||||||||||||||||||||
One Month LIBOR | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.5027% | ||||||||||||||||||||||||||||||||||
Unsecured 5.375% Senior Notes | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | ||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 800,000,000 | ||||||||||||||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 35.00% | ||||||||||||||||||||||||||||||||||
Redemption price, percentage | 105.38% | ||||||||||||||||||||||||||||||||||
Other Financing Arrangements | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 12,409,000 | $ 12,409,000 | 14,983,000 | ||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.33% | 4.33% | |||||||||||||||||||||||||||||||||
$700 Million Loan Maturity September 2023 | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 700,000,000 | ||||||||||||||||||||||||||||||||||
Option to increase borrowing capacity | $ 50,000,000 | ||||||||||||||||||||||||||||||||||
Debt instrument covered, percent | 100.00% | ||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.61% | ||||||||||||||||||||||||||||||||||
Senior Notes6.875 Percent Due2021 | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 6.875% | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 750,000,000 | ||||||||||||||||||||||||||||||||||
Recourse Debt | Other Financing Arrangements | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 12,400,000 | $ 12,400,000 | |||||||||||||||||||||||||||||||||
Recourse percentage | 100.00% | ||||||||||||||||||||||||||||||||||
Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 64,600,000 | ||||||||||||||||||||||||||||||||||
Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 1.65% | ||||||||||||||||||||||||||||||||||
Construction Loans | Wall Street Journal Prime | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 0.40% | ||||||||||||||||||||||||||||||||||
Term Loan | $700 Million Loan Maturity September 2023 | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 615,000,000 | ||||||||||||||||||||||||||||||||||
Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | 1,636,700,000 | $ 1,636,700,000 | 1,570,512,000 | ||||||||||||||||||||||||||||||||
Master Planned Communities | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | 226,608,000 | 226,608,000 | 239,764,000 | ||||||||||||||||||||||||||||||||
Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | 339,494,000 | 339,494,000 | 52,530,000 | ||||||||||||||||||||||||||||||||
Downtown Summerlin | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 266,755,000 | $ 266,755,000 | 274,088,000 | ||||||||||||||||||||||||||||||||
Facility amount | $ 275,900,000 | ||||||||||||||||||||||||||||||||||
Option to extend, term | 1 year | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.65% | 4.65% | |||||||||||||||||||||||||||||||||
Long-term line of credit | $ 311,800,000 | ||||||||||||||||||||||||||||||||||
Repayment of debt | $ 30,000,000 | ||||||||||||||||||||||||||||||||||
Downtown Summerlin | Operating Assets | One Month LIBOR | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.15% | ||||||||||||||||||||||||||||||||||
Downtown Summerlin | Operating Assets | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 35.00% | ||||||||||||||||||||||||||||||||||
Decrease in exposure of outstanding principal upon completion of project and achievement of debt service coverage ratio | 15.00% | ||||||||||||||||||||||||||||||||||
Debt service coverage ratio required to achieve reduced maximum percentage recourse | 1.15 | ||||||||||||||||||||||||||||||||||
Maximum recourse percentage, upon achievement of conditions | 10.00% | ||||||||||||||||||||||||||||||||||
Debt service coverage ratio required to achieve further reduction in maximum percentage recourse | 1.25 | ||||||||||||||||||||||||||||||||||
Percentage cf occupancy of real estate property | 90.00% | 90.00% | |||||||||||||||||||||||||||||||||
Average minimum tenant sales needed to achieve further reduction in maximum percent recourse | $ 500 | ||||||||||||||||||||||||||||||||||
Ke Kilohana | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 96,757,000 | 96,757,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 142,656,000 | $ 142,656,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | |||||||||||||||||||||||||||||||||
Ke Kilohana | Strategic Developments | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 30.00% | ||||||||||||||||||||||||||||||||||
Ke Kilohana | Strategic Developments | Recourse Debt | Construction Loan Payable | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 29,000,000 | $ 29,000,000 | |||||||||||||||||||||||||||||||||
Outlet At Riverwalk Properties | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Extension option, term | 6 months | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 47,900,000 | $ 56,100,000 | |||||||||||||||||||||||||||||||||
Outlet At Riverwalk Properties | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 47,552,000 | $ 47,552,000 | 53,841,000 | ||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||
Outlet At Riverwalk Properties | Operating Assets | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 2.50% | ||||||||||||||||||||||||||||||||||
Outlet At Riverwalk Properties | Operating Assets | Recourse Debt | Construction Loan Payable | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 23,800,000 | $ 23,800,000 | |||||||||||||||||||||||||||||||||
Recourse percentage | 50.00% | ||||||||||||||||||||||||||||||||||
110 N Wacker | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Repayment of debt | $ 18,900,000 | ||||||||||||||||||||||||||||||||||
Fair value derivative liabilities | $ 300,000 | ||||||||||||||||||||||||||||||||||
110 N Wacker | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Number of extension options | extention_option | 2 | ||||||||||||||||||||||||||||||||||
Extension option, term | 1 year | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 512,600,000 | $ 494,500,000 | |||||||||||||||||||||||||||||||||
Variable interest entity, consolidated, joint venture debt, guarantee amount | $ 89,000,000 | ||||||||||||||||||||||||||||||||||
Variable interest entity, consolidated, joint venture debt, increase (decrease) guarantee amount | $ 92,300,000 | ||||||||||||||||||||||||||||||||||
110 N Wacker | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 3.00% | ||||||||||||||||||||||||||||||||||
110 N Wacker | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 18.00% | ||||||||||||||||||||||||||||||||||
Facility amount | 9,000,000 | $ 9,000,000 | |||||||||||||||||||||||||||||||||
110 N Wacker | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | 50,000,000 | 50,000,000 | 18,926,000 | ||||||||||||||||||||||||||||||||
Facility amount | $ 512,573,000 | $ 512,573,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.50% | 5.50% | |||||||||||||||||||||||||||||||||
Tanager Apartments | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 44,100,000 | $ 44,100,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.75% | 4.75% | |||||||||||||||||||||||||||||||||
Tanager Apartments | Strategic Developments | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 25.00% | ||||||||||||||||||||||||||||||||||
Lakeside Row | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Extension option, term | 1 year | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 34,200,000 | ||||||||||||||||||||||||||||||||||
Lakeside Row | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.25% | ||||||||||||||||||||||||||||||||||
Lakeside Row | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 34,231,000 | $ 34,231,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.75% | 4.75% | |||||||||||||||||||||||||||||||||
Lakeside Row | Strategic Developments | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 25.00% | ||||||||||||||||||||||||||||||||||
Columbia Multi-Family | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 85,700,000 | ||||||||||||||||||||||||||||||||||
Columbia Multi-Family | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 85,657,000 | $ 85,657,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||
Columbia Multi-Family | Strategic Developments | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 25.00% | ||||||||||||||||||||||||||||||||||
6100 Marriweather | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 89,800,000 | ||||||||||||||||||||||||||||||||||
6100 Marriweather | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 89,844,000 | $ 89,844,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||
6100 Marriweather | Strategic Developments | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 25.00% | ||||||||||||||||||||||||||||||||||
Woodlands Properties | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Pledged assets, not separately reported | $ 4,200,000,000 | $ 4,200,000,000 | |||||||||||||||||||||||||||||||||
Woodlands Properties | Master Planned Communities | Line of Credit | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Facility amount | $ 180,000,000 | ||||||||||||||||||||||||||||||||||
Woodlands Properties | Master Planned Communities | Term Loan | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Facility amount | 100,000,000 | ||||||||||||||||||||||||||||||||||
Woodlands Properties | Master Planned Communities | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Facility amount | $ 80,000,000 | ||||||||||||||||||||||||||||||||||
The Woodlands Resort and Conference Center | Mortgages | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 62,500,000 | ||||||||||||||||||||||||||||||||||
The Woodlands Resort and Conference Center | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 62,500,000 | $ 62,500,000 | 65,500,000 | ||||||||||||||||||||||||||||||||
Option to extend, term | 1 year | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | |||||||||||||||||||||||||||||||||
Number of extension options | extention_option | 2 | ||||||||||||||||||||||||||||||||||
Extension option, term | 1 year | ||||||||||||||||||||||||||||||||||
The Woodlands Resort and Conference Center | Operating Assets | One Month LIBOR | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.75% | ||||||||||||||||||||||||||||||||||
The Woodlands Resort and Conference Center | Operating Assets | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 3.25% | ||||||||||||||||||||||||||||||||||
Summerlin | Master Planned Communities | Special Improvement District Bonds | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Bond obligation liabilities assumed by buyers | $ 10,900,000 | $ 10,900,000 | 13,900,000 | ||||||||||||||||||||||||||||||||
Lakefront North | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Extension option, term | 1 year | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 51,800,000 | ||||||||||||||||||||||||||||||||||
Lakefront North | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.00% | ||||||||||||||||||||||||||||||||||
Lakefront North | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | 21,120,000 | 21,120,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 51,821,000 | $ 51,821,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.50% | 4.50% | |||||||||||||||||||||||||||||||||
Three Hughes Landing | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 55,759,000 | $ 55,759,000 | 45,058,000 | ||||||||||||||||||||||||||||||||
Facility amount | $ 62,000,000 | $ 62,000,000 | |||||||||||||||||||||||||||||||||
Option to extend, term | 1 year | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.10% | 5.10% | |||||||||||||||||||||||||||||||||
Long-term line of credit | $ 62,000,000 | $ 65,500,000 | |||||||||||||||||||||||||||||||||
Three Hughes Landing | Operating Assets | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 2.60% | ||||||||||||||||||||||||||||||||||
Mortgaged Properties | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Repayment of debt | $ 608,700,000 | ||||||||||||||||||||||||||||||||||
Unamortized bond issuance costs | $ 8,600,000 | 8,600,000 | |||||||||||||||||||||||||||||||||
Loss on redemption of senior notes due 2021 | 700,000 | ||||||||||||||||||||||||||||||||||
Lakeland Village Center | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Repayment of debt | $ 11,800,000 | ||||||||||||||||||||||||||||||||||
Lake Woodlands Crossing Retail | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Recourse percentage | 15.00% | ||||||||||||||||||||||||||||||||||
Maximum recourse percentage, upon achievement of conditions | 50.00% | ||||||||||||||||||||||||||||||||||
Percentage cf occupancy of real estate property | 90.00% | ||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 1.80% | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 15,500,000 | ||||||||||||||||||||||||||||||||||
Lake Woodlands Crossing Retail | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | 9,539,000 | 9,539,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 15,523,000 | $ 15,523,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.30% | 4.30% | |||||||||||||||||||||||||||||||||
Constellation | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 24,200,000 | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.07% | ||||||||||||||||||||||||||||||||||
Aristocrat | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 31,100,000 | ||||||||||||||||||||||||||||||||||
Aristocrat | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 21,296,000 | $ 21,296,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 31,118,000 | $ 31,118,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.90% | 5.90% | |||||||||||||||||||||||||||||||||
Two Summerlin | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 33,400,000 | ||||||||||||||||||||||||||||||||||
Two Summerlin | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 14,431,000 | $ 14,431,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 33,432,000 | $ 33,432,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.90% | 5.90% | |||||||||||||||||||||||||||||||||
Kewalo Harbor | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 3,499,000 | $ 3,499,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 11,562,000 | $ 11,562,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | |||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 11,600,000 | ||||||||||||||||||||||||||||||||||
Kewalo Harbor | Operating Assets | One Month LIBOR | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.75% | ||||||||||||||||||||||||||||||||||
Columbia Regional Building | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 25,000,000 | $ 25,000,000 | 25,000,000 | $ 25,000,000 | |||||||||||||||||||||||||||||||
Facility amount | $ 23,000,000 | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.48% | 4.48% | 4.48% | ||||||||||||||||||||||||||||||||
One Lakes Edge | Operating Assets | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 69,440,000 | 69,440,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.50% | ||||||||||||||||||||||||||||||||||
One Lakes Edge | Operating Assets | Fannie Mae | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | ||||||||||||||||||||||||||||||||||
Debt instrument, interest term | 4 years | ||||||||||||||||||||||||||||||||||
Debt instrument, amortization period | 30 years | ||||||||||||||||||||||||||||||||||
Ae'o | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 174,000,000 | $ 174,000,000 | |||||||||||||||||||||||||||||||||
Number of repayments | repayment | 3 | ||||||||||||||||||||||||||||||||||
Ae'o | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 0 | 0 | 33,603,000 | ||||||||||||||||||||||||||||||||
Facility amount | $ 215,000,000 | $ 215,000,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.49% | 5.49% | |||||||||||||||||||||||||||||||||
Two Lakes Edge | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Extension option, term | 1 year | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 74,000,000 | ||||||||||||||||||||||||||||||||||
Two Lakes Edge | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.15% | ||||||||||||||||||||||||||||||||||
Two Lakes Edge | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 0 | $ 0 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 74,000,000 | $ 74,000,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.65% | 4.65% | |||||||||||||||||||||||||||||||||
6100 Merriweather And Columbia Multi-Family | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Extension option, term | 1 year | ||||||||||||||||||||||||||||||||||
6100 Merriweather And Columbia Multi-Family | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.75% | ||||||||||||||||||||||||||||||||||
Summerlin Ballpark | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 51,200,000 | ||||||||||||||||||||||||||||||||||
Summerlin Ballpark | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 4.92% | ||||||||||||||||||||||||||||||||||
Summerlin Ballpark | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 26,766,000 | $ 26,766,000 | 0 | ||||||||||||||||||||||||||||||||
Facility amount | $ 51,231,000 | $ 51,231,000 | |||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.92% | 4.92% | |||||||||||||||||||||||||||||||||
250 Water Street | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 129,723,000 | $ 129,723,000 | 0 | ||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 6.00% | 6.00% | |||||||||||||||||||||||||||||||||
Downtown Summerlin Apartments | Construction Loans | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Extension option, term | 3 years | ||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 44,100,000 | ||||||||||||||||||||||||||||||||||
Downtown Summerlin Apartments | Construction Loans | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 2.25% | ||||||||||||||||||||||||||||||||||
Waiea And Anaha Condominium Towers | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Repayment of debt | $ 195,300,000 | ||||||||||||||||||||||||||||||||||
Fellowship Drive100 | Strategic Developments | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 35,481,000 | $ 35,481,000 | $ 1,000 | ||||||||||||||||||||||||||||||||
Facility amount | $ 51,426,000 | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | |||||||||||||||||||||||||||||||||
Fellowship Drive100 | Strategic Developments | One Month LIBOR | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Interest rate margin (as a percent) | 1.50% | ||||||||||||||||||||||||||||||||||
Revolving Credit Facility | Line of Credit | $700 Million Loan Maturity September 2023 | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Aggregate principal amount of debt issued | $ 85,000,000 | ||||||||||||||||||||||||||||||||||
Naming Rights And Marketing Agreement | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Revenue | $ 4,000,000 | ||||||||||||||||||||||||||||||||||
Notes Payable, Other Payables | Outlet At Riverwalk Properties | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Number of extension options | extention_option | 2 | ||||||||||||||||||||||||||||||||||
Notes Payable, Other Payables | 6100 Merriweather And Columbia Multi-Family | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Number of extension options | extention_option | 2 | ||||||||||||||||||||||||||||||||||
Notes Payable, Other Payables | 250 Water Street | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Number of extension options | extention_option | 3 | ||||||||||||||||||||||||||||||||||
Extension option, term | 6 months | ||||||||||||||||||||||||||||||||||
Short-term debt | $ 129,700,000 | ||||||||||||||||||||||||||||||||||
Interest free term | 6 months | ||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 6.00% | ||||||||||||||||||||||||||||||||||
Extension option, minimum paydown | $ 30,000,000 | ||||||||||||||||||||||||||||||||||
Woodlands Land Development Company | 100 Fellowship Drive, Lakefront North, Three Hughes Landing, The Woodlands Resort And Conference Center And Lake Woodlands Crossing | Operating Assets | Recourse Debt | |||||||||||||||||||||||||||||||||||
Mortgages, notes and loans payable | |||||||||||||||||||||||||||||||||||
Carrying amount | $ 72,300,000 | $ 72,300,000 |
MORTGAGES, NOTES AND LOANS PA_6
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Contractual Obligations Based on Final Maturity Dates) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgages, notes and loans payable principal payments | ||
2,019 | $ 93,358 | |
2,020 | 357,246 | |
2,021 | 419,697 | |
2,022 | 216,471 | |
2,023 | 696,248 | |
Thereafter | 1,432,191 | |
Total | 3,215,211 | $ 1,000,000 |
Deferred financing costs, net and unamortized underwriting fees | (33,998) | |
Total | $ 3,181,213 | $ 2,857,945 |
FAIR VALUE (Assets and Liabilit
FAIR VALUE (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash equivalents | $ 0 | $ 50,135 |
Liabilities | ||
Interest rate swaps | 16,517 | 5,961 |
Level 1 | ||
Assets: | ||
Cash equivalents | 0 | 50,135 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Interest rate swap contracts | ||
Assets: | ||
Interest rate swaps | 346 | 4,470 |
Liabilities | ||
Interest rate swaps | 16,517 | 5,961 |
Interest rate swap contracts | Level 1 | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Liabilities | ||
Interest rate swaps | 0 | 0 |
Interest rate swap contracts | Level 2 | ||
Assets: | ||
Interest rate swaps | 346 | 4,470 |
Liabilities | ||
Interest rate swaps | 16,517 | 5,961 |
Interest rate swap contracts | Level 3 | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Liabilities | ||
Interest rate swaps | $ 0 | $ 0 |
FAIR VALUE (Reconciliation of W
FAIR VALUE (Reconciliation of Warrants Using Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) | |||
Exercises of Sponsor and Management Warrants | $ 375,613 | ||
Level 3 | Warrant | |||
Reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3) | |||
Balance at the beginning of the period | $ 0 | 332,170 | $ 307,760 |
Warrant liability loss (gain) | 0 | 43,443 | 24,410 |
Exercises of Sponsor and Management Warrants | 0 | (375,613) | 0 |
Balance at the end of the period | $ 0 | $ 0 | $ 332,170 |
FAIR VALUE (Assets and Liabil_2
FAIR VALUE (Assets and Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and Restricted cash | $ 724,215 | $ 964,300 | $ 915,139 | $ 510,137 |
Liabilities: | ||||
Allowance, accounts receivable | 10,700 | 9,300 | ||
Allowance, notes receivable | 100 | 100 | ||
Level 1 | Reported Value Measurement | ||||
Assets: | ||||
Cash and Restricted cash | 724,215 | 914,165 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and Restricted cash | 724,215 | 914,165 | ||
Level 3 | Reported Value Measurement | ||||
Assets: | ||||
Accounts receivable, net | 12,589 | 13,041 | ||
Notes receivable, net | 4,694 | 5,864 | ||
Level 3 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Accounts receivable, net | 12,589 | 13,041 | ||
Notes receivable, net | 4,694 | 5,864 | ||
Level 2 | Reported Value Measurement | ||||
Liabilities: | ||||
Fixed-rate debt | 1,663,875 | 1,526,875 | ||
Variable-rate debt | 1,551,336 | 1,350,914 | ||
Level 2 | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Fixed-rate debt | 1,608,635 | 1,554,766 | ||
Variable-rate debt | $ 1,551,336 | $ 1,350,914 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)settled_derivative | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 21, 2018USD ($) | May 17, 2018USD ($) | |
Derivative [Line Items] | |||||
Ineffective portion recorded in Other (loss) income, net | $ 700,000 | ||||
Gain on unwinding of swaps | $ 16,104,000 | 0 | $ 0 | ||
Fair value derivative liabilities | 16,517,000 | 5,961,000 | |||
Interest rate swap contracts | |||||
Derivative [Line Items] | |||||
Loss reclassified from AOCI into earnings | $ 1,200,000 | ||||
Agreements settled | settled_derivative | 4 | ||||
Credit Risk Contract | |||||
Derivative [Line Items] | |||||
Fair value derivative liabilities | $ 18,200,000 | 6,000,000 | |||
Designated as Hedging Instrument | Interest rate swap contracts | |||||
Derivative [Line Items] | |||||
Notional amount | 250,000,000 | $ 250,000,000 | |||
Gain on unwinding of swaps | 15,800,000 | ||||
Termination fee | $ 300,000 | ||||
Change in fair value, recognition period | 9 years | ||||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | $ 900,000 | ||||
Accounts Payable and Accrued Liabilities | Designated as Hedging Instrument | Fixed Interest Rate 2.96%, Maturing October 2019 | Interest rate swap contracts | |||||
Derivative [Line Items] | |||||
Notional amount | 18,926,000 | ||||
Fair value derivative liabilities | 0 | $ 286,000 | |||
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | Fixed Interest Rate 1.66%, Maturing May 2020 | Interest rate swap contracts | |||||
Derivative [Line Items] | |||||
Notional amount | $ 40,000,000 | $ 40,000,000 | |||
Change in fair value, recognition period | 1 year 3 months 18 days | ||||
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | Fixed Interest Rate 1.14%, Maturing September 2021 | Interest rate swap contracts | |||||
Derivative [Line Items] | |||||
Notional amount | $ 119,359,000 | $ 119,400,000 | |||
Change in fair value, recognition period | 2 years 8 months 12 days |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Summary of the Notional Amount and Fair Value of Derivatives) (Details) - USD ($) | Jan. 19, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 21, 2018 | Sep. 18, 2018 | May 17, 2018 | Jun. 12, 2017 |
Fair value of derivative instruments | ||||||||
Total fair value derivative assets | $ 346,000 | $ 4,470,000 | ||||||
Total fair value derivative liabilities | (16,517,000) | (5,961,000) | ||||||
Repayment of debt | 838,462,000 | 1,350,226,000 | $ 333,302,000 | |||||
Aggregate principal amount of debt issued | $ 200,000,000 | |||||||
Interest Rate Cap | Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 5.0 Maturing August 2019 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 75,000,000 | |||||||
Fixed interest rate | 5.00% | |||||||
Total fair value derivative assets | $ 0 | 0 | ||||||
Interest Rate Cap | Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 2.50%, Maturing December 2019 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 230,000,000 | |||||||
Fixed interest rate | 2.50% | |||||||
Total fair value derivative assets | $ 333,000 | 164,000 | ||||||
Interest income | (200,000) | |||||||
Interest rate swap contracts | Designated as Hedging Instrument | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | 250,000,000 | $ 250,000,000 | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 1.66%, Maturing May 2020 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 40,000,000 | $ 40,000,000 | ||||||
Fixed interest rate | 1.66% | |||||||
Total fair value derivative assets | $ 0 | 299,000 | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 1.14%, Maturing September 2021 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 119,359,000 | $ 119,400,000 | ||||||
Fixed interest rate | 1.14% | |||||||
Total fair value derivative assets | $ 0 | 4,007,000 | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.96%, Maturing October 2019 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 18,926,000 | |||||||
Fixed interest rate | 2.96% | |||||||
Total fair value derivative liabilities | $ 0 | (286,000) | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.65%, Maturing December 2027 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 50,000,000 | |||||||
Fixed interest rate | 2.65% | |||||||
Total fair value derivative liabilities | $ 0 | (1,124,000) | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.68%, Maturing December 2027 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 100,000,000 | |||||||
Fixed interest rate | 2.68% | |||||||
Total fair value derivative liabilities | $ 0 | (2,509,000) | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.62%, Maturing December 2027 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 100,000,000 | |||||||
Fixed interest rate | 2.62% | |||||||
Total fair value derivative liabilities | $ 0 | (2,042,000) | ||||||
Interest rate swap contracts | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.96 Maturing September 2023 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | $ 615,000,000 | |||||||
Fixed interest rate | 2.96% | |||||||
Total fair value derivative liabilities | $ (13,781,000) | 0 | ||||||
Interest Rate Collar | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 1.50% To 2.50%, Maturing May 2019 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | 51,592,000 | |||||||
Total fair value derivative assets | 13,000 | 0 | ||||||
Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.00% To 3.00%, Maturing May 2020 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | 193,967,000 | |||||||
Total fair value derivative liabilities | (37,000) | 0 | ||||||
Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | 354,217,000 | |||||||
Total fair value derivative liabilities | (730,000) | 0 | ||||||
Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | ||||||||
Fair value of derivative instruments | ||||||||
Notional Amount | 381,404,000 | |||||||
Total fair value derivative liabilities | $ (1,969,000) | $ 0 | ||||||
Minimum | Interest Rate Collar | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 1.50% To 2.50%, Maturing May 2019 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 1.50% | |||||||
Minimum | Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.00% To 3.00%, Maturing May 2020 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 2.00% | |||||||
Minimum | Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 2.25% | |||||||
Minimum | Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 2.75% | |||||||
Maximum | Interest Rate Collar | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Fixed Interest Rate 1.50% To 2.50%, Maturing May 2019 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 2.50% | |||||||
Maximum | Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.00% To 3.00%, Maturing May 2020 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 3.00% | |||||||
Maximum | Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 3.25% | |||||||
Maximum | Interest Rate Collar | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 3.50% | |||||||
110 N Wacker | ||||||||
Fair value of derivative instruments | ||||||||
Total fair value derivative liabilities | $ (300,000) | |||||||
Repayment of debt | $ 18,900,000 | |||||||
$700 Million Loan Maturity September 2023 | ||||||||
Fair value of derivative instruments | ||||||||
Fixed interest rate | 4.61% | |||||||
Aggregate principal amount of debt issued | $ 700,000,000 | |||||||
Term Loan | $700 Million Loan Maturity September 2023 | ||||||||
Fair value of derivative instruments | ||||||||
Aggregate principal amount of debt issued | $ 615,000,000 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Impact of Financial Instruments on Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effect of the Company's derivative financial instruments on the income statement | |||
Interest expense | $ 82,028 | $ 64,568 | $ 65,724 |
Interest Expense | |||
Effect of the Company's derivative financial instruments on the income statement | |||
Amount of gain (loss) reclassified from AOCI into earnings | 1,135 | (905) | (1,364) |
Interest rate swap contracts | |||
Effect of the Company's derivative financial instruments on the income statement | |||
Amount of gain (loss) reclassified from AOCI into earnings | (1,200) | ||
Cash Flow Hedging | Interest rate swap contracts | |||
Effect of the Company's derivative financial instruments on the income statement | |||
Amount of Gain (Loss) Recognized in OCI | $ 2,090 | $ (726) | $ 831 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments | |||
Letters of credit outstanding | $ 15.3 | $ 13.8 | |
Amount of outstanding surety bonds | 101.2 | 88.5 | |
Contractual rental expense, including participation rent | 9.7 | $ 8.6 | $ 8.4 |
Guarantee Obligations | Downtown columbia | |||
Commitments | |||
Guarantee amount | $ 1 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Minimum Rentals Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 8,199 |
2,020 | 7,871 |
2,021 | 7,380 |
2,022 | 6,713 |
2,023 | 8,380 |
Subsequent/Other | 291,611 |
Total | $ 330,154 |
STOCK-BASED PLANS (Summary of S
STOCK-BASED PLANS (Summary of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 09, 2010 | |
Stock-based plans | ||||
Shares of common stock reserved for issuance (in shares) | 3,698,050 | |||
Stock based compensation expense | $ 12,128,000 | $ 7,385,000 | $ 6,707,000 | |
Stock Options | ||||
Stock options outstanding at the beginning of the period (in shares) | 783,182 | 1,176,640 | 1,086,040 | |
Granted (in shares) | 265,000 | 58,000 | 162,100 | |
Exercised (in shares) | (183,592) | (395,482) | (3,000) | |
Forfeited (in shares) | (46,592) | (54,976) | (68,500) | |
Expired (in shares) | 0 | (1,000) | 0 | |
Stock options outstanding at the end of the period (in shares) | 817,998 | 783,182 | 1,176,640 | |
Stock options exercisable at the end of the period (in shares) | 268,298 | |||
Remaining unvested options outstanding and expected to vest (in shares) | 797,320 | |||
Weighted Average Exercise Price | ||||
Stock options outstanding at the beginning of the period (in dollars per share) | $ 90.22 | $ 78.87 | $ 77.11 | |
Granted (in dollars per share) | 124.56 | 119.85 | 109.42 | |
Exercised (in dollars per share) | 65.72 | 58.81 | 60.33 | |
Forfeited (in dollars per share) | 121.34 | 105.17 | 122.93 | |
Expired (in dollars per share) | 0 | 57.77 | 0 | |
Stock options outstanding at the end of the period (in dollars per share) | 105.06 | $ 90.22 | $ 78.87 | |
Stock options exercisable at the end of the period (in dollars per share) | 67.82 | |||
Stock options expected to vest at the end of the period (in dollars per share) | $ 104.61 | |||
Weighted average remaining contractual term of stock options outstanding | 6 years 4 months | |||
Weighted average remaining contractual term of stock options exercisable | 2 years 11 months 20 days | |||
Weighted average remaining contractual term of stock options expected to vest | 6 years 3 months 8 days | |||
Aggregate intrinsic value | $ 8,608,841 | |||
Aggregate intrinsic value of stock options exercisable | 8,524,841 | |||
Aggregate intrinsic value of stock options expected to vest | $ 8,607,055 | |||
Maximum | ||||
Stock-based plans | ||||
Maximum number of shares available for future grant | 2,199,894 | |||
Stock Options | ||||
Stock-based plans | ||||
Stock based compensation expense | $ 12,100,000 | $ 8,400,000 | $ 9,400,000 | |
Share based compensation costs capitalized | $ 2,400,000 | $ 1,100,000 | $ 2,600,000 | |
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 105.06 | |||
Number Outstanding (in shares) | 817,998 | |||
Weighted Average Remaining Contractual Term | 6 years 4 months | |||
Number Exercisable (in shares) | 268,298 | |||
Significant assumptions used in Black-Scholes option-pricing model | ||||
Weighted average grant date fair value (in dollars per share) | $ 48.27 | $ 34.51 | $ 36.55 | |
Weighted-average expected life of options | 8 years 4 months 24 days | 8 years 4 months 24 days | 7 years 4 months 24 days | |
Weighted-average risk-free interest rate (as a percent) | 2.70% | 2.20% | 1.80% | |
Weighted-average expected volatility (as a percent) | 24.70% | 22.80% | 33.10% | |
Expected annual dividend per share | $ 0 | $ 0 | $ 0 | |
Expiration period | 10 years | |||
Unamortized stock option expense | $ 15,300,000 | |||
Weighted-average period for recognition of unamortized stock expense | 5 years 1 month | |||
Stock Options | Minimum | ||||
Significant assumptions used in Black-Scholes option-pricing model | ||||
Exercisable period | 5 years | |||
Stock Options | General and Administrative Expense | ||||
Stock-based plans | ||||
Stock based compensation expense | $ 2,200,000 | $ 1,600,000 | $ 2,900,000 | |
Stock Options | $46.49 - 55.82 | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 49.93 | |||
Number Outstanding (in shares) | 11,100 | |||
Weighted Average Remaining Contractual Term | 2 years 9 months 12 days | |||
Number Exercisable (in shares) | 11,100 | |||
Stock Options | $46.49 - 55.82 | Minimum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 46.46 | |||
Stock Options | $46.49 - 55.82 | Maximum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | 55.82 | |||
Stock Options | $57.77 - 60.33 | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 57.99 | |||
Number Outstanding (in shares) | 162,401 | |||
Weighted Average Remaining Contractual Term | 2 years 3 months 5 days | |||
Number Exercisable (in shares) | 162,401 | |||
Stock Options | $57.77 - 60.33 | Minimum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 57.77 | |||
Stock Options | $57.77 - 60.33 | Maximum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | 60.33 | |||
Stock Options | $61.64 - 69.75 | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 66.65 | |||
Number Outstanding (in shares) | 49,129 | |||
Weighted Average Remaining Contractual Term | 3 years 4 months 24 days | |||
Number Exercisable (in shares) | 49,129 | |||
Stock Options | $61.64 - 69.75 | Minimum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 61.64 | |||
Stock Options | $61.64 - 69.75 | Maximum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | 69.75 | |||
Stock Options | $81.80 - 110.50 | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 101.69 | |||
Number Outstanding (in shares) | 68,960 | |||
Weighted Average Remaining Contractual Term | 6 years 1 month 29 days | |||
Number Exercisable (in shares) | 38,960 | |||
Stock Options | $81.80 - 110.50 | Minimum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 81.80 | |||
Stock Options | $81.80 - 110.50 | Maximum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | 110.50 | |||
Stock Options | $112.64 - 151.72 | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 124.77 | |||
Number Outstanding (in shares) | 526,408 | |||
Weighted Average Remaining Contractual Term | 8 years | |||
Number Exercisable (in shares) | 6,708 | |||
Stock Options | $112.64 - 151.72 | Minimum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 112.64 | |||
Stock Options | $112.64 - 151.72 | Maximum | ||||
Exercise price range of stock options | ||||
Exercise Price (in dollars per share) | $ 151.72 |
STOCK-BASED PLANS (Summary of R
STOCK-BASED PLANS (Summary of Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Grant Date Fair Value | |||
Stock based compensation expense | $ 12,128 | $ 7,385 | $ 6,707 |
Restricted Stock | |||
Stock-based plans | |||
Vesting period | 5 years | ||
Restricted stock activity | |||
Restricted stock outstanding at the beginning of the period (in shares) | 354,519 | 289,112 | 242,556 |
Granted (in shares) | 142,332 | 177,708 | 136,198 |
Vested (in shares) | (52,479) | (68,819) | (37,670) |
Forfeited (in shares) | (37,828) | (43,482) | (51,972) |
Restricted stock outstanding at the end of the period (in shares) | 406,544 | 354,519 | 289,112 |
Weighted Average Grant Date Fair Value | |||
Restricted stock outstanding at the beginning of the period (in dollars per share) | $ 89 | $ 88.88 | $ 100.15 |
Granted (in dollars per share) | 83.09 | 85.88 | 67.80 |
Vested (in dollars per share) | 124.50 | 88.58 | 83.47 |
Forfeited (in dollars per share) | 91.71 | 76.10 | 90.14 |
Restricted stock outstanding at the end of the period (in dollars per share) | $ 82.10 | $ 89 | $ 88.88 |
Fair value of restricted stock vested | $ 5,500 | ||
Unamortized restricted stock expense | $ 21,600 | ||
Weighted-average period for recognition of unamortized restricted stock expense | 3 years 9 months 18 days | ||
Restricted Stock | General and Administrative Expense | |||
Weighted Average Grant Date Fair Value | |||
Stock based compensation expense | $ 7,500 | $ 5,700 | $ 4,500 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | Feb. 27, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | |||||
One-time transition benefit | $ 101,700,000 | ||||
Section 382 Rights Agreement term | 3 years | ||||
Gross deferred tax assets | $ 182,945,000 | 172,371,000 | |||
Deferred tax liabilities | 314,829,000 | 315,950,000 | |||
Valuation allowance | 25,304,000 | 17,271,000 | |||
Decrease in unrecognized tax benefits | 0 | 0 | $ 36,524,000 | ||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 36,524,000 |
INCOME TAXES (Provision for (Be
INCOME TAXES (Provision for (Benefit from) Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provision for (benefit from) income taxes | |||
Current | $ (703) | $ (2,338) | $ 4,752 |
Deferred income taxes | 16,195 | (43,463) | 113,698 |
Income tax expense (benefit) | $ 15,492 | $ (45,801) | $ 118,450 |
INCOME TAXES (Computation of In
INCOME TAXES (Computation of Income Tax Expense by Applying Federal Corporate Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of income tax expense computed by applying the Federal corporate tax rate to the provision for income taxes | |||
Tax at statutory rate on earnings from continuing operations before income taxes | $ 15,226 | $ 42,911 | $ 112,264 |
Increase (decrease) in valuation allowance, net | 8,033 | (175) | (1,326) |
State income taxes, net of Federal income tax benefit | (4,933) | 1,408 | 4,004 |
Tax benefit from Tax Act | 0 | (101,688) | 0 |
Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences | (1,292) | 2,941 | (4,591) |
Tax benefit on equity compensation | (1,490) | (6,403) | 0 |
Tax expense on compensation disallowance | 1,168 | 0 | 0 |
Tax benefit on historic tax credit | (1,220) | 0 | 0 |
Non-deductible warrant liability loss | 0 | 15,205 | 8,544 |
Uncertain tax position benefit, excluding interest | 0 | 0 | (407) |
Uncertain tax position interest, net of Federal income tax benefit | 0 | 0 | (38) |
Income tax expense (benefit) | $ 15,492 | $ (45,801) | $ 118,450 |
INCOME TAXES (Summary of Amount
INCOME TAXES (Summary of Amounts and Expiration Dates of Operating Loss and Tax Credit Carryforwards) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards - Federal | $ 25,065 |
Tax credit carryforwards - Federal AMT | 3,699 |
Tax credit carryforward - Historic Tax Credit | 1,610 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 145,671 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 460,802 |
INCOME TAXES (Summary of Tax Ef
INCOME TAXES (Summary of Tax Effects and Temporary Differences Included in Net Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Operating and Strategic Development properties, primary differences in basis of assets and liabilities | $ 83,263 | $ 92,210 |
Interest deduction carryforwards | 34,611 | 29,247 |
Operating loss and tax credit carryforwards | 65,071 | 50,914 |
Total deferred tax assets | 182,945 | 172,371 |
Valuation allowance | (25,304) | (17,271) |
Total net deferred tax assets | 157,641 | 155,100 |
Deferred tax liabilities: | ||
Property Associated with Master Planned Communities, primarily differences in the tax basis of land assets and treatment of interest and other costs | (146,124) | (157,181) |
Operating and Strategic Development properties, primarily differences in basis of assets and liabilities | (59,517) | (60,430) |
Deferred income | (109,188) | (98,339) |
Total deferred tax liabilities | (314,829) | (315,950) |
Net deferred tax liabilities | $ (157,188) | $ (160,850) |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Changes to Unrecognized Tax Benefits) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecognized tax benefits | |||
Unrecognized Tax Benefits, Beginning Balance | $ 0 | $ 0 | $ 36,524,000 |
Gross increases - tax positions in prior period | 0 | 0 | 0 |
Gross decreases - tax positions in prior periods | 0 | 0 | (36,524,000) |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 | $ 0 |
WARRANTS (Details)
WARRANTS (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2017 | Oct. 07, 2016 | Jun. 30, 2017 | Jan. 31, 2017 | Feb. 28, 2011 | Dec. 31, 2017 | Oct. 04, 2017 | Jun. 16, 2017 | Dec. 31, 2016 | Nov. 09, 2010 |
Sponsors Warrants | ||||||||||
Sponsors and Management Warrants | ||||||||||
Warrants outstanding (in shares) | 1,916,667 | |||||||||
Exercise price (in dollars per share) | $ 50 | |||||||||
Warrants exercised (in shares) | 1,136,517 | |||||||||
Warrant liabilities | $ 332.2 | |||||||||
Management Warrants | ||||||||||
Sponsors and Management Warrants | ||||||||||
Proceeds from issuance of Management warrants | $ 19 | |||||||||
Management Warrants | Chief Executive Officer | ||||||||||
Sponsors and Management Warrants | ||||||||||
Exercise price (in dollars per share) | $ 124.64 | |||||||||
Underlying shares associated with warrant (in shares) | 2,367,985 | |||||||||
Number of shares of common stock under warrants exercised (in shares) | 1,614,803 | |||||||||
Number of shares called by warrants (in shares) | 1,965,409 | |||||||||
Total warrant price | $ 50 | |||||||||
Management Warrants | President | ||||||||||
Sponsors and Management Warrants | ||||||||||
Exercise price (in dollars per share) | $ 42.23 | $ 117.01 | ||||||||
Warrants exercised (in shares) | 198,184 | |||||||||
Underlying shares associated with warrant (in shares) | 315,731 | |||||||||
Number of shares donated to charitable trust (in shares) | 6,850 | |||||||||
Number of shares issued as per warrant provision for which share settled | 4,400 | |||||||||
Number of shares called by warrants (in shares) | 87,951 | |||||||||
Total warrant price | $ 2 | |||||||||
Management Warrants | Chief Financial Officer | ||||||||||
Sponsors and Management Warrants | ||||||||||
Exercise price (in dollars per share) | $ 112.08 | $ 54.50 | ||||||||
Underlying shares associated with warrant (in shares) | 178,971 | 98,549 | ||||||||
Proceeds from issuance of Management warrants | $ 1 | |||||||||
Number of shares called by warrants (in shares) | 50,125 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Summary of Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | $ 3,188,551 | $ 3,188,551 | $ 2,571,510 | $ 2,363,889 | ||||
Other comprehensive income (loss) before reclassifications | 2,120 | (1,084) | ||||||
Loss reclassified from accumulated other comprehensive loss to net income (loss) | (1,135) | 905 | ||||||
Adoption of ASU 2018-02 | (1,100) | (1,148) | [1] | 0 | [1] | 0 | [1] | |
Adoption of ASU 2017-12 | [2] | (739) | 0 | 0 | ||||
Pension adjustment, net of tax | [3] | 759 | 0 | (890) | ||||
Terminated swap amortization | (1,018) | 0 | 0 | |||||
Other comprehensive (loss) income | (1,161) | (179) | 1,103 | |||||
Balance at the end of the period | 3,238,126 | 3,188,551 | 2,571,510 | |||||
Accumulated Other Comprehensive (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance at the beginning of the period | $ (6,965) | (6,965) | (6,786) | (7,889) | ||||
Adoption of ASU 2018-02 | (1,148) | |||||||
Adoption of ASU 2017-12 | (739) | |||||||
Pension adjustment, net of tax | 759 | (890) | ||||||
Terminated swap amortization | (1,018) | |||||||
Balance at the end of the period | $ (8,126) | $ (6,965) | $ (6,786) | |||||
[1] | The Company adopted Accounting Standards Update ("ASU") 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. | |||||||
[2] | The Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as of January 1, 2018. See Note 1 - Summary of Significant Accounting Policies for further discussion. | |||||||
[3] | Net of deferred tax expense of $0.5 million for the year ended December 31, 2018 and deferred tax benefit of zero and $0.5 million for the years ended December 31, 2017 and 2016, respectively. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Summary of Amounts Reclassified Out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassifications out of accumulated other comprehensive income (loss) | ||
Loss reclassified from accumulated other comprehensive loss to net income (loss) | $ (1,135) | $ 905 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Loss reclassified from accumulated other comprehensive loss to net income (loss) | (1,135) | 905 |
Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | Provision For Income Taxes | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Loss reclassified from accumulated other comprehensive loss to net income (loss) | 302 | (538) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest Expense | ||
Reclassifications out of accumulated other comprehensive income (loss) | ||
Loss reclassified from accumulated other comprehensive loss to net income (loss) | $ (1,437) | $ 1,443 |
EARNINGS PER SHARE - (Informati
EARNINGS PER SHARE - (Information Related to EPS Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 37,924 | $ 23,847 | $ (5,879) | $ 1,834 | $ 147,328 | $ 10,516 | $ 3,120 | $ 5,659 | $ 57,726 | $ 166,623 | $ 202,326 |
Net income attributable to noncontrolling interests | (714) | 1,781 | (23) | ||||||||
Net income attributable to common stockholders | $ 37,261 | $ 23,365 | $ (5,088) | $ 1,474 | $ 149,121 | $ 10,504 | $ 3,120 | $ 5,659 | $ 57,012 | $ 168,404 | $ 202,303 |
Denominator: | |||||||||||
Weighted average basic common shares outstanding (in shares) | 43,075 | 43,066 | 42,573 | 42,976 | 42,860 | 42,845 | 40,373 | 39,799 | 43,036 | 41,364 | 39,492 |
Numerator: | |||||||||||
Net income attributable to common stockholders | $ 37,261 | $ 23,365 | $ (5,088) | $ 1,474 | $ 149,121 | $ 10,504 | $ 3,120 | $ 5,659 | $ 57,012 | $ 168,404 | $ 202,303 |
Denominator: | |||||||||||
Weighted average basic common shares outstanding (in shares) | 43,075 | 43,066 | 42,573 | 42,976 | 42,860 | 42,845 | 40,373 | 39,799 | 43,036 | 41,364 | 39,492 |
Restricted stock and stock options (in shares) | 201 | 279 | 343 | ||||||||
Warrants (in shares) | 0 | 1,446 | 2,894 | ||||||||
Weighted average diluted common shares outstanding | 43,250 | 43,317 | 42,942 | 43,363 | 43,120 | 43,267 | 43,051 | 42,757 | 43,237 | 43,089 | 42,729 |
Basic income per share: (in dollars per share) | $ 0.87 | $ 0.54 | $ (0.12) | $ 0.03 | $ 3.48 | $ 0.25 | $ 0.08 | $ 0.14 | $ 1.32 | $ 4.07 | $ 5.12 |
Diluted income per share: (in dollars per share) | $ 0.86 | $ 0.54 | $ (0.12) | $ 0.03 | $ 3.46 | $ 0.24 | $ 0.07 | $ 0.13 | $ 1.32 | $ 3.91 | $ 4.73 |
EARNINGS PER SHARE - (Narrative
EARNINGS PER SHARE - (Narrative) (Details) - USD ($) | Feb. 23, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Stock repurchased | ||||
Treasury stock activity (in shares) | 475,920 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Treasury stock acquired (in dollars per share) | $ 120.33 | |||
Treasury stock activity | $ 57,267,453 | $ 1,231,000 | ||
Stock Options | ||||
Antidilutive securities excluded from computation of diluted earnings per share | ||||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 425,908 | 313,500 | 379,500 | |
Restricted Stock | ||||
Antidilutive securities excluded from computation of diluted earnings per share | ||||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 205,979 | 161,155 | 130,286 |
RENTALS UNDER OPERATING LEASE_2
RENTALS UNDER OPERATING LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total Minimum Rent | |||
2,019 | $ 186,342 | ||
2,020 | 186,044 | ||
2,021 | 194,042 | ||
2,022 | 201,057 | ||
2,023 | 181,622 | ||
Subsequent | 1,110,260 | ||
Total | 2,059,367 | ||
Percentage rent in lieu of fixed minimum rent | 1,200 | $ 1,500 | $ 2,400 |
Overage rent | $ 2,500 | $ 2,800 | $ 3,600 |
SEGMENTS (Summary of Segment Op
SEGMENTS (Summary of Segment Operating Results) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Segments reporting | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Total revenues | $ 464,693 | $ 257,160 | $ 181,005 | $ 161,679 | $ 300,983 | $ 258,736 | $ 308,639 | $ 231,762 | $ 1,064,537 | $ 1,100,120 | $ 1,035,005 |
Total operating expenses | 956,791 | 936,233 | 824,511 | ||||||||
Operating income | 107,746 | ||||||||||
Depreciation and amortization | 126,565 | 132,252 | 95,864 | ||||||||
Provision for impairment | 0 | 0 | 35,734 | ||||||||
Other loss (income) | 936 | (3,248) | (11,453) | ||||||||
Equity in (earnings) loss from Real Estate and Other Affiliates | (39,954) | (25,498) | (56,818) | ||||||||
Gains on sales of properties | 0 | 51,367 | 140,549 | ||||||||
Income before taxes | 73,218 | 120,822 | 320,776 | ||||||||
Net income | 37,924 | 23,847 | (5,879) | 1,834 | 147,328 | 10,516 | 3,120 | 5,659 | 57,726 | 166,623 | 202,326 |
Net (income) loss attributable to noncontrolling interests | (714) | 1,781 | (23) | ||||||||
Net income attributable to common stockholders | $ 37,261 | $ 23,365 | $ (5,088) | $ 1,474 | $ 149,121 | $ 10,504 | $ 3,120 | $ 5,659 | 57,012 | 168,404 | 202,303 |
Operating Segments | |||||||||||
Segments reporting | |||||||||||
Total revenues | 1,064,537 | 1,100,120 | 1,035,005 | ||||||||
Total operating expenses | 675,121 | 691,672 | 617,663 | ||||||||
Operating income | 389,416 | 408,448 | 417,342 | ||||||||
Depreciation and amortization | 117,126 | 123,954 | 89,368 | ||||||||
Provision for impairment | 0 | 0 | 35,734 | ||||||||
Interest expense (income), net | 25,865 | 11,825 | 11,905 | ||||||||
Other loss (income) | 3,972 | (3,293) | (5,212) | ||||||||
Equity in (earnings) loss from Real Estate and Other Affiliates | (39,937) | (25,951) | (56,818) | ||||||||
Gains on sales of properties | 0 | (51,242) | (140,549) | ||||||||
Income before taxes | 282,390 | 353,155 | 482,914 | ||||||||
Operating Segments | Operating Assets | |||||||||||
Segments reporting | |||||||||||
Total revenues | 379,124 | 327,555 | 295,165 | ||||||||
Total operating expenses | 200,872 | 170,215 | 151,938 | ||||||||
Operating income | 178,252 | 157,340 | 143,227 | ||||||||
Depreciation and amortization | 113,576 | 122,421 | 86,313 | ||||||||
Provision for impairment | 0 | 0 | 35,734 | ||||||||
Interest expense (income), net | 71,551 | 61,584 | 50,427 | ||||||||
Other loss (income) | 7,005 | 315 | (4,601) | ||||||||
Equity in (earnings) loss from Real Estate and Other Affiliates | (1,529) | (3,267) | (2,802) | ||||||||
Income before taxes | (12,351) | (23,713) | (21,844) | ||||||||
Operating Segments | Master Planned Communities | |||||||||||
Segments reporting | |||||||||||
Total revenues | 309,451 | 299,543 | 253,304 | ||||||||
Total operating expenses | 169,474 | 159,895 | 138,098 | ||||||||
Operating income | 139,977 | 139,648 | 115,206 | ||||||||
Depreciation and amortization | 243 | 323 | 311 | ||||||||
Interest expense (income), net | (26,919) | (24,292) | (21,085) | ||||||||
Other loss (income) | (18) | (3,500) | 0 | ||||||||
Equity in (earnings) loss from Real Estate and Other Affiliates | (36,284) | (23,234) | (43,501) | ||||||||
Income before taxes | 202,955 | 190,351 | 179,481 | ||||||||
Operating Segments | Strategic Developments | |||||||||||
Segments reporting | |||||||||||
Total revenues | 375,962 | 473,022 | 486,536 | ||||||||
Total operating expenses | 304,775 | 361,562 | 327,627 | ||||||||
Operating income | 71,187 | 111,460 | 158,909 | ||||||||
Depreciation and amortization | 3,307 | 1,210 | 2,744 | ||||||||
Interest expense (income), net | (18,767) | (25,467) | (17,437) | ||||||||
Other loss (income) | (3,015) | (108) | (611) | ||||||||
Equity in (earnings) loss from Real Estate and Other Affiliates | (2,124) | 550 | (10,515) | ||||||||
Gains on sales of properties | 0 | (51,242) | (140,549) | ||||||||
Income before taxes | 91,786 | 186,517 | 325,277 | ||||||||
Corporate | |||||||||||
Segments reporting | |||||||||||
Corporate expenses and other items | $ 224,664 | $ 186,532 | $ 280,588 |
SEGMENTS (Summary of Assets by
SEGMENTS (Summary of Assets by Segment and Reconciliation of Segment Assets to Total Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Reconciliation of total segment assets to total assets | ||
Assets | $ 7,355,799 | $ 6,729,064 |
Operating Segments | ||
Reconciliation of total segment assets to total assets | ||
Assets | 7,007,171 | 5,999,879 |
Operating Segments | Master Planned Communities | ||
Reconciliation of total segment assets to total assets | ||
Assets | 2,076,678 | 1,999,090 |
Operating Segments | Operating Assets | ||
Reconciliation of total segment assets to total assets | ||
Assets | 3,124,287 | 2,489,177 |
Operating Segments | Strategic Developments | ||
Reconciliation of total segment assets to total assets | ||
Assets | 1,806,206 | 1,511,612 |
Corporate | ||
Reconciliation of total segment assets to total assets | ||
Assets | $ 348,628 | $ 729,185 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 464,693 | $ 257,160 | $ 181,005 | $ 161,679 | $ 300,983 | $ 258,736 | $ 308,639 | $ 231,762 | $ 1,064,537 | $ 1,100,120 | $ 1,035,005 |
Operating income | 70,254 | 42,312 | (8,295) | 2,539 | 62,443 | 24,372 | 54,133 | 77,554 | 106,810 | 218,502 | 326,762 |
Net income | 37,924 | 23,847 | (5,879) | 1,834 | 147,328 | 10,516 | 3,120 | 5,659 | 57,726 | 166,623 | 202,326 |
Net income attributable to common stockholders | $ 37,261 | $ 23,365 | $ (5,088) | $ 1,474 | $ 149,121 | $ 10,504 | $ 3,120 | $ 5,659 | $ 57,012 | $ 168,404 | $ 202,303 |
Earnings Per Share [Abstract] | |||||||||||
Basic earnings (loss) per share: (in dollars per share) | $ 0.87 | $ 0.54 | $ (0.12) | $ 0.03 | $ 3.48 | $ 0.25 | $ 0.08 | $ 0.14 | $ 1.32 | $ 4.07 | $ 5.12 |
Diluted earnings (loss) per share: (in dollars per share) | $ 0.86 | $ 0.54 | $ (0.12) | $ 0.03 | $ 3.46 | $ 0.24 | $ 0.07 | $ 0.13 | $ 1.32 | $ 3.91 | $ 4.73 |
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 43,075 | 43,066 | 42,573 | 42,976 | 42,860 | 42,845 | 40,373 | 39,799 | 43,036 | 41,364 | 39,492 |
Diluted (in shares) | 43,250 | 43,317 | 42,942 | 43,363 | 43,120 | 43,267 | 43,051 | 42,757 | 43,237 | 43,089 | 42,729 |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMLATED DEPRECIATION (Information by Property) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 2,202,802 | |||
Encumbrances | 3,181,213 | |||
Initial Cost | ||||
Land | 2,512,338 | |||
Land | 2,513,223 | |||
Buildings and Improvements | 2,081,799 | |||
Buildings and Improvements | 2,082,826 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (572,082) | |||
Land | (572,967) | |||
Buildings and Improvements | 2,095,381 | |||
Building Improvements | 2,140,205 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,940,256 | |||
Land | 1,940,256 | |||
Buildings and Improvements | 4,177,180 | |||
Building Improvements | 4,223,031 | |||
Total | 6,117,436 | |||
Total | 6,163,287 | $ 5,355,409 | $ 4,979,840 | $ 4,774,632 |
Accumulated Depreciation | (355,146) | |||
Accumulated Depreciation | (380,892) | (321,882) | $ (245,814) | $ (232,969) |
Unamortized bond issuance costs | (6,096) | (6,898) | ||
Deferred financing costs | (27,902) | $ (12,946) | ||
Aggregate cost of land, building and improvements for federal income tax purposes | 5,000,000 | |||
Bridgeland | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 65,000 | |||
Initial Cost | ||||
Land | 260,223 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 213,628 | |||
Buildings and Improvements | 2,217 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 473,851 | |||
Buildings and Improvements | 2,217 | |||
Total | 476,068 | |||
Accumulated Depreciation | (686) | |||
Lakeland Village Center at Bridgeland Cypress, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 14,135 | |||
Initial Cost | ||||
Land | 2,404 | |||
Buildings and Improvements | 11,135 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 2,919 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 2,404 | |||
Buildings and Improvements | 14,054 | |||
Total | 16,458 | |||
Accumulated Depreciation | (853) | |||
Lakeside Row | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 14,063 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 14,063 | |||
Total | 14,063 | |||
Accumulated Depreciation | 0 | |||
American City Building | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 13,534 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 13,534 | |||
Total | 13,534 | |||
Accumulated Depreciation | 0 | |||
10 - 70 Columbia Corporate Center | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 99,184 | |||
Initial Cost | ||||
Land | 24,685 | |||
Buildings and Improvements | 94,824 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 23,385 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 24,685 | |||
Buildings and Improvements | 118,209 | |||
Total | 142,894 | |||
Accumulated Depreciation | (16,471) | |||
Columbia Office Properties | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 1,175 | |||
Buildings and Improvements | 14,913 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 264 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,175 | |||
Buildings and Improvements | 15,177 | |||
Total | 16,352 | |||
Accumulated Depreciation | (5,512) | |||
Columbia Regional Building | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 25,000 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 28,865 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 2,294 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 31,159 | |||
Total | 31,159 | |||
Accumulated Depreciation | (3,995) | |||
Columbia Multi-Family | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 49,189 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 49,189 | |||
Total | 49,189 | |||
Accumulated Depreciation | 0 | |||
Lakefront | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 1,964 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,258 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 3,222 | |||
Total | 3,222 | |||
Accumulated Depreciation | 0 | |||
Columbia | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 457,552 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (440,918) | |||
Buildings and Improvements | 137 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 16,634 | |||
Buildings and Improvements | 137 | |||
Total | 16,771 | |||
Accumulated Depreciation | (137) | |||
Merriweather District | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 104,126 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 104,126 | |||
Total | 104,126 | |||
Accumulated Depreciation | 0 | |||
6100 Marriweather | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Total | 0 | |||
Accumulated Depreciation | 0 | |||
One Mall North | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 12,425 | |||
Initial Cost | ||||
Land | 7,822 | |||
Buildings and Improvements | 10,818 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 247 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 7,822 | |||
Buildings and Improvements | 11,065 | |||
Total | 18,887 | |||
Accumulated Depreciation | (644) | |||
One Merriweather | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 42,008 | |||
Initial Cost | ||||
Land | 1,433 | |||
Buildings and Improvements | 58,936 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 13,809 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,433 | |||
Buildings and Improvements | 72,745 | |||
Total | 74,178 | |||
Accumulated Depreciation | (3,600) | |||
Two Merriweather | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 24,000 | |||
Initial Cost | ||||
Land | 1,019 | |||
Buildings and Improvements | 4,931 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 28,085 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,019 | |||
Buildings and Improvements | 33,016 | |||
Total | 34,035 | |||
Accumulated Depreciation | (1,055) | |||
Ridgely Building | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 400 | |||
Buildings and Improvements | 58,937 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (400) | |||
Buildings and Improvements | (58,537) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 400 | |||
Total | 400 | |||
Accumulated Depreciation | 0 | |||
Sterrett Place | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 5,618 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 5,618 | |||
Total | 5,618 | |||
Accumulated Depreciation | (16) | |||
85 South Street | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 15,913 | |||
Buildings and Improvements | 8,137 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,211 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 15,913 | |||
Buildings and Improvements | 9,348 | |||
Total | 25,261 | |||
Accumulated Depreciation | (2,629) | |||
Seaport Predevelopment | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 7,641 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,173 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 8,814 | |||
Total | 8,814 | |||
Accumulated Depreciation | 0 | |||
Seaport Tin Building New York, NY | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 8,290 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 27,465 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 35,755 | |||
Total | 35,755 | |||
Accumulated Depreciation | 0 | |||
South Street Seaport - Pier 17 | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 430,756 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 430,756 | |||
Total | 430,756 | |||
Accumulated Depreciation | (5,081) | |||
South Street Seaport Historic District / Uplands | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 7,884 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 108,568 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 116,452 | |||
Total | 116,452 | |||
Accumulated Depreciation | (8,943) | |||
250 Water Street | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 129,723 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 179,471 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 179,471 | |||
Total | 179,471 | |||
Accumulated Depreciation | 0 | |||
Aristocrat | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 21,334 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 5,004 | |||
Buildings and Improvements | 31,875 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 5,004 | |||
Buildings and Improvements | 31,875 | |||
Total | 36,879 | |||
Accumulated Depreciation | (244) | |||
Constellation | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 24,200 | |||
Initial Cost | ||||
Land | 3,069 | |||
Buildings and Improvements | 39,759 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 270 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 3,069 | |||
Buildings and Improvements | 40,029 | |||
Total | 43,098 | |||
Accumulated Depreciation | (1,426) | |||
Downtown Summerlin | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 269,407 | |||
Initial Cost | ||||
Land | 30,855 | |||
Buildings and Improvements | 364,100 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 33,281 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 30,855 | |||
Buildings and Improvements | 397,381 | |||
Total | 428,236 | |||
Accumulated Depreciation | (57,768) | |||
Hockey Ground Lease | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 141 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 6,705 | |||
Buildings and Improvements | 2,198 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 6,705 | |||
Buildings and Improvements | 2,198 | |||
Total | 8,903 | |||
Accumulated Depreciation | (73) | |||
Las Vegas Aviators | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 179 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 55 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 234 | |||
Total | 234 | |||
Accumulated Depreciation | (85) | |||
Two Summerlin | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 14,535 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 3,037 | |||
Buildings and Improvements | 46,907 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 3,037 | |||
Buildings and Improvements | 46,907 | |||
Total | 49,944 | |||
Accumulated Depreciation | (276) | |||
Summerlin | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 11,608 | |||
Initial Cost | ||||
Land | 990,179 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (160,272) | |||
Buildings and Improvements | 759 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 829,907 | |||
Buildings and Improvements | 759 | |||
Total | 830,666 | |||
Accumulated Depreciation | (252) | |||
Summerlin Ballpark | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 27,110 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 61,254 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 61,254 | |||
Total | 61,254 | |||
Accumulated Depreciation | 0 | |||
Tanager Apartments | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 281 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 39,192 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 39,192 | |||
Total | 39,192 | |||
Accumulated Depreciation | 0 | |||
Creekside Park Apartments | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 729 | |||
Buildings and Improvements | 39,728 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 729 | |||
Buildings and Improvements | 39,728 | |||
Total | 40,457 | |||
Accumulated Depreciation | (292) | |||
Creekside Park West | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 3,408 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 3,408 | |||
Total | 3,408 | |||
Accumulated Depreciation | 0 | |||
Creekside Village Green | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 17,051 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 1,323 | |||
Buildings and Improvements | 16,290 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,323 | |||
Buildings and Improvements | 16,290 | |||
Total | 17,613 | |||
Accumulated Depreciation | (2,248) | |||
Embassy Suites at Hughes Landing | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 27,970 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 6,752 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 1,818 | |||
Buildings and Improvements | 36,339 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,818 | |||
Buildings and Improvements | 43,091 | |||
Total | 44,909 | |||
Accumulated Depreciation | (4,566) | |||
Fellowship Drive100 | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 35,481 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 56,560 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 56,560 | |||
Total | 56,560 | |||
Accumulated Depreciation | 0 | |||
HHC 242 Self-Storage Woodlands, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 6,604 | |||
Initial Cost | ||||
Land | 878 | |||
Buildings and Improvements | 6,802 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,106 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 878 | |||
Buildings and Improvements | 7,908 | |||
Total | 8,786 | |||
Accumulated Depreciation | (394) | |||
HHC 2978 Self-Storage Woodlands, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 6,042 | |||
Initial Cost | ||||
Land | 124 | |||
Buildings and Improvements | 5,498 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 2,063 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 124 | |||
Buildings and Improvements | 7,561 | |||
Total | 7,685 | |||
Accumulated Depreciation | (343) | |||
One Hughes Landing | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 52,000 | |||
Initial Cost | ||||
Land | 1,678 | |||
Buildings and Improvements | 34,761 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | (121) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,678 | |||
Buildings and Improvements | 34,640 | |||
Total | 36,318 | |||
Accumulated Depreciation | (8,075) | |||
Two Hughes Landing | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 48,000 | |||
Initial Cost | ||||
Land | 1,269 | |||
Buildings and Improvements | 34,950 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | (323) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,269 | |||
Buildings and Improvements | 34,627 | |||
Total | 35,896 | |||
Accumulated Depreciation | (7,623) | |||
Three Hughes Landing | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 55,759 | |||
Initial Cost | ||||
Land | 2,626 | |||
Buildings and Improvements | 46,372 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 28,403 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 2,626 | |||
Buildings and Improvements | 74,775 | |||
Total | 77,401 | |||
Accumulated Depreciation | (4,613) | |||
1725 Hughes Landing Boulevard | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 56,773 | |||
Initial Cost | ||||
Land | 1,351 | |||
Buildings and Improvements | 36,764 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 31,618 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,351 | |||
Buildings and Improvements | 68,382 | |||
Total | 69,733 | |||
Accumulated Depreciation | (10,270) | |||
1735 Hughes Landing Boulevard | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 54,568 | |||
Initial Cost | ||||
Land | 3,709 | |||
Buildings and Improvements | 97,651 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 916 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 3,709 | |||
Buildings and Improvements | 98,567 | |||
Total | 102,276 | |||
Accumulated Depreciation | (13,531) | |||
Hughes Landing Daycare | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 512 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 512 | |||
Total | 512 | |||
Accumulated Depreciation | 0 | |||
Hughes Landing Retail | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 35,000 | |||
Initial Cost | ||||
Land | 5,184 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 32,985 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 5,184 | |||
Buildings and Improvements | 32,985 | |||
Total | 38,169 | |||
Accumulated Depreciation | (4,595) | |||
1701 Lake Robbins | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 3,658 | |||
Initial Cost | ||||
Land | 1,663 | |||
Buildings and Improvements | 3,725 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 409 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,663 | |||
Buildings and Improvements | 4,134 | |||
Total | 5,797 | |||
Accumulated Depreciation | (429) | |||
Lake Woodlands Crossing Retail | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 9,539 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 5,122 | |||
Buildings and Improvements | 8,598 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 5,122 | |||
Buildings and Improvements | 8,598 | |||
Total | 13,720 | |||
Accumulated Depreciation | (87) | |||
2201 Lake Woodlands Drive | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 3,755 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,162 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 3,755 | |||
Buildings and Improvements | 1,162 | |||
Total | 4,917 | |||
Accumulated Depreciation | (41) | |||
Lakefront North | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 21,120 | |||
Initial Cost | ||||
Land | 10,260 | |||
Buildings and Improvements | 39,357 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 331 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 10,260 | |||
Buildings and Improvements | 39,688 | |||
Total | 49,948 | |||
Accumulated Depreciation | (330) | |||
One Lakes Edge | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 69,440 | |||
Initial Cost | ||||
Land | 1,057 | |||
Buildings and Improvements | 81,768 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | (71) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,057 | |||
Buildings and Improvements | 81,697 | |||
Total | 82,754 | |||
Accumulated Depreciation | (7,887) | |||
Two Lakes Edge | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 18,583 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 18,583 | |||
Total | 18,583 | |||
Accumulated Depreciation | 0 | |||
Millennium Six Pines Apartments Woodlands, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 42,500 | |||
Initial Cost | ||||
Land | 4,000 | |||
Buildings and Improvements | 54,624 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 7,225 | |||
Buildings and Improvements | 102 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 11,225 | |||
Buildings and Improvements | 54,726 | |||
Total | 65,951 | |||
Accumulated Depreciation | (4,820) | |||
Millennium Waterway Apartments | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 54,083 | |||
Initial Cost | ||||
Land | 15,917 | |||
Buildings and Improvements | 56,002 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 2,261 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 15,917 | |||
Buildings and Improvements | 58,263 | |||
Total | 74,180 | |||
Accumulated Depreciation | (15,241) | |||
9303 New Trails | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 11,610 | |||
Initial Cost | ||||
Land | 1,929 | |||
Buildings and Improvements | 11,915 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 422 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,929 | |||
Buildings and Improvements | 12,337 | |||
Total | 14,266 | |||
Accumulated Depreciation | (2,406) | |||
3831 Technology Forest Drive | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 21,571 | |||
Initial Cost | ||||
Land | 514 | |||
Buildings and Improvements | 14,194 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,703 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 514 | |||
Buildings and Improvements | 15,897 | |||
Total | 16,411 | |||
Accumulated Depreciation | (3,224) | |||
20/25 Waterway Avenue | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 13,395 | |||
Initial Cost | ||||
Land | 2,346 | |||
Buildings and Improvements | 8,871 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 726 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 2,346 | |||
Buildings and Improvements | 9,597 | |||
Total | 11,943 | |||
Accumulated Depreciation | (2,418) | |||
Waterway Garage Retail | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 1,341 | |||
Buildings and Improvements | 4,255 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 1,105 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,341 | |||
Buildings and Improvements | 5,360 | |||
Total | 6,701 | |||
Accumulated Depreciation | (1,239) | |||
3 Waterway Square | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 49,013 | |||
Initial Cost | ||||
Land | 748 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 42,008 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 748 | |||
Buildings and Improvements | 42,008 | |||
Total | 42,756 | |||
Accumulated Depreciation | (10,955) | |||
4 Waterway Square | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 33,998 | |||
Initial Cost | ||||
Land | 1,430 | |||
Buildings and Improvements | 51,553 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 6,176 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,430 | |||
Buildings and Improvements | 57,729 | |||
Total | 59,159 | |||
Accumulated Depreciation | (13,231) | |||
The Westin at the Woodlands Woodlands, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 41,793 | |||
Initial Cost | ||||
Land | 22,473 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (20,520) | |||
Buildings and Improvements | 92,380 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,953 | |||
Buildings and Improvements | 92,380 | |||
Total | 94,333 | |||
Accumulated Depreciation | (7,990) | |||
The Woodlands | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 150,000 | |||
Initial Cost | ||||
Land | 269,411 | |||
Buildings and Improvements | 9,814 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (60,419) | |||
Buildings and Improvements | 9,744 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 208,992 | |||
Buildings and Improvements | 19,558 | |||
Total | 228,550 | |||
Accumulated Depreciation | (3,507) | |||
Woodlands Parking Garages | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 5,857 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 1,529 | |||
Buildings and Improvements | 11,837 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 7,386 | |||
Buildings and Improvements | 11,837 | |||
Total | 19,223 | |||
Accumulated Depreciation | (1,456) | |||
The Woodlands Resort and Conference Center | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 62,500 | |||
Initial Cost | ||||
Land | 13,258 | |||
Buildings and Improvements | 37,983 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 78,555 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 13,258 | |||
Buildings and Improvements | 116,538 | |||
Total | 129,796 | |||
Accumulated Depreciation | (20,713) | |||
2000 Woodlands Parkway | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 506 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 506 | |||
Total | 506 | |||
Accumulated Depreciation | (16) | |||
1400 Woodloch Forest | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 1,570 | |||
Buildings and Improvements | 14,519 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,570 | |||
Buildings and Improvements | 14,519 | |||
Total | 16,089 | |||
Accumulated Depreciation | (4,442) | |||
The Woodlands Hills | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 99,284 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 18,702 | |||
Buildings and Improvements | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 117,986 | |||
Total | 117,986 | |||
Accumulated Depreciation | 0 | |||
A'ali'i | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 28,950 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 28,950 | |||
Total | 28,950 | |||
Accumulated Depreciation | (1,271) | |||
Ae'o | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 9,795 | |||
Buildings and Improvements | 85,046 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (9,795) | |||
Buildings and Improvements | (85,046) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Total | 0 | |||
Accumulated Depreciation | 0 | |||
Anaha Condominiums | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 5,546 | |||
Buildings and Improvements | 47,450 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (5,546) | |||
Buildings and Improvements | (46,470) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 980 | |||
Total | 980 | |||
Accumulated Depreciation | (30) | |||
Ke Kilohana | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 96,757 | |||
Initial Cost | ||||
Land | 2,615 | |||
Buildings and Improvements | 17,784 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (2,615) | |||
Buildings and Improvements | 178,679 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 196,463 | |||
Total | 196,463 | |||
Accumulated Depreciation | 0 | |||
Kewalo Harbor | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 3,499 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 17,752 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 17,752 | |||
Total | 17,752 | |||
Accumulated Depreciation | (343) | |||
Waiea Condominiums | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 20,812 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | (15,518) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 5,294 | |||
Total | 5,294 | |||
Accumulated Depreciation | (63) | |||
Ward Predevelopment | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 24,069 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 59,814 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 83,883 | |||
Total | 83,883 | |||
Accumulated Depreciation | (493) | |||
Ward Village | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 245,435 | |||
Initial Cost | ||||
Land | 164,007 | |||
Buildings and Improvements | 89,321 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (76,405) | |||
Buildings and Improvements | 275,643 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 87,602 | |||
Buildings and Improvements | 364,964 | |||
Total | 452,566 | |||
Accumulated Depreciation | (70,610) | |||
Bridges at Mint Hill LLC | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 21,978 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 21,978 | |||
Total | 21,978 | |||
Accumulated Depreciation | 0 | |||
Cottonwood Mall | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 7,613 | |||
Buildings and Improvements | 42,987 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (7,613) | |||
Buildings and Improvements | (21,429) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 21,558 | |||
Total | 21,558 | |||
Accumulated Depreciation | 0 | |||
Landmark Mall | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 28,396 | |||
Buildings and Improvements | 67,235 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (28,396) | |||
Buildings and Improvements | (12,041) | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 55,194 | |||
Total | 55,194 | |||
Accumulated Depreciation | (128) | |||
Monarch City | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 25,575 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (25,575) | |||
Buildings and Improvements | 26,918 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 26,918 | |||
Total | 26,918 | |||
Accumulated Depreciation | 0 | |||
110 N Wacker | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 50,000 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 29,035 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 118,901 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 147,936 | |||
Total | 147,936 | |||
Accumulated Depreciation | 0 | |||
Outlet Collection at Riverwalk | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 47,552 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 94,513 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 338 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 94,851 | |||
Total | 94,851 | |||
Accumulated Depreciation | (15,476) | |||
The Elk Grove Collection | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 10,808 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 10,808 | |||
Total | 10,808 | |||
Accumulated Depreciation | 5 | |||
West Windsor | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 0 | |||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings and Improvements | 27,144 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings and Improvements | 27,144 | |||
Total | 27,144 | |||
Accumulated Depreciation | (9) | |||
Corporate Segment | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | 1,012,409 | |||
Initial Cost | ||||
Land | 885 | |||
Buildings and Improvements | 1,027 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | (885) | |||
Building Improvements | 44,824 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Building Improvements | 45,851 | |||
Total | 45,851 | |||
Accumulated Depreciation | $ (25,746) |
SCHEDULE III - REAL ESTATE AN_3
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Reconciliation of Real Estate and Accumulated Depreciation) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Real Estate | |||
Balance at beginning of year | $ 5,355,409,000 | $ 4,979,840,000 | $ 4,774,632,000 |
Change in land | 199,069,000 | 93,833,000 | 122,446,000 |
Additions | 1,148,826,000 | 790,183,000 | 830,896,000 |
Impairments | 0 | 0 | (35,734,000) |
Dispositions and write-offs and land costs of sales | (540,017,000) | (508,447,000) | (712,400,000) |
Balance at end of year | 6,163,287,000 | 5,355,409,000 | 4,979,840,000 |
Reconciliation of Accumulated Depreciation | |||
Balance at beginning of year | 321,882,000 | 245,814,000 | 232,969,000 |
Depreciation expense | 113,518,000 | 116,401,000 | 81,878,000 |
Dispositions and write-offs | (54,508,000) | (40,333,000) | (69,033,000) |
Balance at end of year | $ 380,892,000 | $ 321,882,000 | $ 245,814,000 |