Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 18, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34856 | ||
Entity Registrant Name | THE HOWARD HUGHES CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4673192 | ||
Entity Address, Address Line One | 9950 Woodloch Forest Drive, Suite 1100 | ||
Entity Address, City or Town | The Woodlands | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (281) | ||
Local Phone Number | 719-6100 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | HHC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.6 | ||
Entity Common Stock, Shares Outstanding | 55,114,795 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its 2021 Annual Meeting of Stockholders are incorporated by reference in Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K. The registrant intends to file its Proxy Statement with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2020. | ||
Entity Central Index Key | 0001498828 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment in real estate: | ||
Master Planned Communities assets | $ 1,687,519 | $ 1,655,674 |
Buildings and equipment | 4,115,493 | 3,813,595 |
Less: accumulated depreciation | (634,064) | (507,933) |
Land | 363,447 | 353,022 |
Developments | 1,152,674 | 1,445,997 |
Net property and equipment | 6,685,069 | 6,760,355 |
Investment in real estate and other affiliates | 377,145 | 121,757 |
Net investment in real estate | 7,062,214 | 6,882,112 |
Net investment in lease receivable | 2,926 | 79,166 |
Cash and cash equivalents | 1,014,686 | 422,857 |
Restricted cash | 228,311 | 197,278 |
Accounts receivable, net | 7,437 | 12,279 |
Municipal Utility District receivables, net | 314,394 | 280,742 |
Notes receivable, net | 622 | 36,379 |
Deferred expenses, net | 112,097 | 133,182 |
Operating lease right-of-use assets, net | 56,255 | 69,398 |
Prepaid expenses and other assets, net | 341,390 | 300,373 |
Total assets | 9,140,332 | 8,413,766 |
LIABILITIES | ||
Mortgages, notes and loans payable, net | 4,287,369 | 4,096,470 |
Operating lease obligations | 68,929 | 70,413 |
Deferred tax liabilities | 187,639 | 180,748 |
Accounts payable and accrued expenses | 852,258 | 733,147 |
Total liabilities | 5,396,195 | 5,080,778 |
Commitments and Contingencies (see Note 10) | 0 | 0 |
Redeemable noncontrolling interest | 29,114 | 0 |
EQUITY | ||
Preferred stock: $0.01 par value; 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock: $0.01 par value; 150,000,000 shares authorized, 56,042,814 issued and 54,972,256 outstanding as of December 31, 2020, and 43,635,893 shares issued and 42,585,633 outstanding as of December 31, 2019 | 562 | 437 |
Additional paid-in capital | 3,947,278 | 3,343,983 |
Accumulated deficit | (72,556) | (46,385) |
Accumulated other comprehensive loss | (38,590) | (29,372) |
Treasury stock, at cost, 1,070,558 and 1,050,260 shares as of December 31, 2020 and 2019 | (122,091) | (120,530) |
Total stockholders' equity | 3,714,603 | 3,148,133 |
Noncontrolling interests | 420 | 184,855 |
Total equity | 3,715,023 | 3,332,988 |
Total liabilities and equity | $ 9,140,332 | $ 8,413,766 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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) | 56,042,814 | 43,635,893 |
Common stock, shares outstanding (in shares) | 54,972,256 | 42,585,633 |
Treasury stock, shares held (in shares) | 1,070,558 | 1,050,260 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Rental revenue | $ 323,182,000 | $ 278,806,000 | |
Rental revenue | $ 257,308,000 | ||
Total revenues | 699,489,000 | 1,300,539,000 | 1,064,537,000 |
EXPENSES | |||
Operating costs | 226,791,000 | 294,486,000 | 248,029,000 |
Rental property real estate taxes | 52,815,000 | 36,861,000 | 32,183,000 |
Provision for (recovery of) doubtful accounts | 6,009,000 | (414,000) | 6,078,000 |
Demolition costs | 0 | 855,000 | 17,329,000 |
Development-related marketing costs | 8,166,000 | 23,067,000 | 29,249,000 |
General and administrative | 109,402,000 | 162,506,000 | 110,582,000 |
Depreciation and amortization | 217,467,000 | 155,798,000 | 126,565,000 |
Total expenses | 830,384,000 | 1,184,770,000 | 956,791,000 |
OTHER | |||
Provision for impairment | (48,738,000) | 0 | 0 |
Gain (loss) on sale or disposal of real estate and other assets, net | 59,942,000 | 22,362,000 | (4,000) |
Other income (loss), net | 130,000 | 12,179,000 | (936,000) |
Total other | 11,334,000 | 34,541,000 | (940,000) |
Operating income (loss) | (119,561,000) | 150,310,000 | 106,806,000 |
Selling profit from sales-type leases | 0 | 13,537,000 | |
Interest income | 2,368,000 | 9,797,000 | 8,486,000 |
Interest expense | (132,257,000) | (105,374,000) | (82,028,000) |
Gain (loss) on extinguishment of debt | (13,169,000) | 4,641,000 | 0 |
Equity in earnings (losses) from real estate and other affiliates | 271,099,000 | 30,629,000 | 39,954,000 |
Income (loss) before income taxes | 8,480,000 | 103,540,000 | 73,218,000 |
Income tax expense (benefit) | 11,653,000 | 29,245,000 | 15,492,000 |
Net income (loss) | (3,173,000) | 74,295,000 | 57,726,000 |
Net (income) loss attributable to noncontrolling interests | (22,981,000) | (339,000) | (714,000) |
Net income (loss) attributable to common stockholders | $ (26,154,000) | $ 73,956,000 | $ 57,012,000 |
Basic income per share: (in dollars per share) | $ (0.50) | $ 1.71 | $ 1.32 |
Diluted income per share: (in dollars per share) | $ (0.50) | $ 1.71 | $ 1.32 |
Condominium rights and unit sales | |||
Revenues: | |||
Revenue | $ 1,143,000 | $ 448,940,000 | $ 357,720,000 |
EXPENSES | |||
Cost of goods and services sold | 108,229,000 | 369,759,000 | 262,562,000 |
Master Planned Communities land sales | |||
Revenues: | |||
Revenue | 233,044,000 | 330,146,000 | 261,905,000 |
EXPENSES | |||
Cost of goods and services sold | 101,505,000 | 141,852,000 | 124,214,000 |
Other land, rental and property revenues | |||
Revenues: | |||
Revenue | 105,048,000 | 206,966,000 | 160,519,000 |
Builder price participation | |||
Revenues: | |||
Revenue | $ 37,072,000 | $ 35,681,000 | $ 27,085,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Comprehensive income, net of tax: | ||||
Net income | $ (3,173) | $ 74,295 | $ 57,726 | |
Other comprehensive income (loss) | ||||
Interest rate swaps | [1] | (23,070) | (21,184) | (63) |
Capitalized swap interest (expense) income | [2] | 0 | (73) | 30 |
Pension adjustment | [3] | (84) | 11 | 759 |
Adoption of ASU 2018-02 | [4] | 0 | 0 | (1,148) |
Adoption of ASU 2017-12 | [5] | 0 | 0 | (739) |
Deconsolidation of 110 North Wacker | [6] | 12,934 | 0 | 0 |
Share of investee's other comprehensive income | [7] | 1,002 | 0 | 0 |
Other comprehensive income (loss) | (9,218) | (21,246) | (1,161) | |
Comprehensive income (loss) | (12,391) | 53,049 | 56,565 | |
Comprehensive (income) loss attributable to noncontrolling interests | (22,981) | (339) | (714) | |
Comprehensive income (loss) attributable to common stockholders | $ (35,372) | $ 52,710 | $ 55,851 | |
[1] | Amounts are shown net of deferred tax benefit of $5.3 million for the year ended December 31, 2020, $6.2 million for the year ended December 31, 2019, and $0.3 million for the year ended December 31, 2018. | |||
[2] | The deferred tax impact was not meaningful for the years ended December 31, 2020, 2019 and 2018. | |||
[3] | The deferred tax impact is not meaningful for the years ended December 31, 2020 and 2019. Amount is net of deferred tax expense of $0.5 million for the year ended December 31, 2018. | |||
[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 | |||
[5] | The Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , as of January 1, 2018. | |||
[6] | This amount represents the derecognition of Other comprehensive income (loss) related to interest rate collars on the 110 North Wacker debt, shown net of deferred tax expense of $1.0 million. | |||
[7] | The amount for 2020 is shown net of deferred tax expense of $0.3 million. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Interest rate swaps, tax benefit | $ 5,260 | $ 6,161 | $ 342 |
Pension adjustment, tax expense | (87) | $ 41 | $ 467 |
Deconsolidation of 110 North Wacker, tax expense | 951 | ||
Share of investee's other comprehensive income, tax expense | $ 285 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Stockholders' Equity | Total Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) | Accumulated Other Comprehensive (Loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Noncontrolling Interests | [1] | Bridges at Mint Hill | Bridges at Mint HillNoncontrolling Interests | [1] | Associations of Unit Owners | Associations of Unit OwnersNoncontrolling Interests | [1] | |||||
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 | $ 3,188,551,000 | $ 3,182,986,000 | $ 433,000 | $ 3,302,502,000 | $ (109,508,000) | $ (6,965,000) | $ (739,000) | $ (3,476,000) | $ 5,565,000 | |||||||||||||||
Balance at the beginning of the period (Adoption of ASU 2014-09) at Dec. 31, 2017 | [2] | $ (69,732,000) | $ (69,732,000) | $ (69,732,000) | ||||||||||||||||||||
Balance at the beginning of the period (Adoption of ASU 2017-12) at Dec. 31, 2017 | 739,000 | $ (739,000) | ||||||||||||||||||||||
Balance at the beginning of the period (in shares) at Dec. 31, 2017 | (29,373) | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income | 57,726,000 | 57,012,000 | 57,012,000 | 714,000 | ||||||||||||||||||||
Preferred dividend payment on behalf of subsidiary | (11,000) | (11,000) | ||||||||||||||||||||||
Interest rate swaps, net of tax | (63,000) | [3] | (63,000) | (63,000) | ||||||||||||||||||||
Pension adjustment, net of tax | 759,000 | [4] | 759,000 | 759,000 | ||||||||||||||||||||
Capitalized swap interest, net of tax | 30,000 | [5] | 30,000 | 30,000 | ||||||||||||||||||||
Adoption of ASU 2018-02 | (1,148,000) | [6] | 1,148,000 | (1,148,000) | ||||||||||||||||||||
Restricted stock activity (in shares) | 14,556 | |||||||||||||||||||||||
Restricted stock activity | (1,447,000) | (1,447,000) | $ (1,447,000) | |||||||||||||||||||||
Repurchase of common shares (in shares) | (475,920) | |||||||||||||||||||||||
Repurchase of common shares | (57,267,000) | (57,267,000) | $ (57,267,000) | |||||||||||||||||||||
Contributions to joint ventures | 99,646,000 | 99,646,000 | ||||||||||||||||||||||
Share of investee's other comprehensive income, net of tax of $285 | [7] | 0 | ||||||||||||||||||||||
Stock plan activity (in shares) | 211,220 | |||||||||||||||||||||||
Stock plan activity | 19,934,000 | 19,934,000 | $ 3,000 | 19,931,000 | ||||||||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2018 | 43,511,473 | |||||||||||||||||||||||
Balance at the end of the period at Dec. 31, 2018 | 3,238,126,000 | 3,132,212,000 | $ 436,000 | 3,322,433,000 | (120,341,000) | (8,126,000) | $ (62,190,000) | 105,914,000 | ||||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2018 | (519,849) | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income | 74,295,000 | 73,956,000 | 73,956,000 | 339,000 | ||||||||||||||||||||
Interest rate swaps, net of tax | (21,184,000) | [3] | (21,184,000) | (21,184,000) | ||||||||||||||||||||
Pension adjustment, net of tax | 11,000 | [4] | 11,000 | 11,000 | ||||||||||||||||||||
Capitalized swap interest, net of tax | (73,000) | [5] | (73,000) | (73,000) | ||||||||||||||||||||
Adoption of ASU 2018-02 | [6] | 0 | ||||||||||||||||||||||
Deconsolidation of noncontrolling interests | $ (3,750,000) | $ (3,750,000) | $ (2,538,000) | $ (2,538,000) | ||||||||||||||||||||
Restricted stock activity (in shares) | 927 | 34,411 | ||||||||||||||||||||||
Restricted stock activity | (4,417,000) | (4,417,000) | $ (4,417,000) | |||||||||||||||||||||
Repurchase of common shares (in shares) | (496,000) | |||||||||||||||||||||||
Repurchase of common shares | (53,923,000) | (53,923,000) | $ (53,923,000) | |||||||||||||||||||||
Contributions to joint ventures | 84,890,000 | 84,890,000 | ||||||||||||||||||||||
Share of investee's other comprehensive income, net of tax of $285 | [7] | $ 0 | ||||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||||||||||
Stock plan activity (in shares) | 123,493 | |||||||||||||||||||||||
Stock plan activity | $ 21,551,000 | 21,551,000 | $ 1,000 | 21,550,000 | ||||||||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2019 | 43,635,893 | |||||||||||||||||||||||
Balance at the end of the period at Dec. 31, 2019 | 3,332,988,000 | $ (18,000) | [8] | 3,148,133,000 | $ (18,000) | [8] | $ 437,000 | 3,343,983,000 | (46,385,000) | $ (18,000) | [8] | (29,372,000) | $ (120,530,000) | 184,855,000 | ||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2019 | (1,050,260) | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net income | (3,173,000) | |||||||||||||||||||||||
Net income(loss), excluding $22,881 attributable to redeemable noncontrolling interest | (26,054,000) | (26,154,000) | (26,154,000) | 100,000 | ||||||||||||||||||||
Interest rate swaps, net of tax | (23,070,000) | [3] | (23,070,000) | (23,070,000) | ||||||||||||||||||||
Pension adjustment, net of tax | (84,000) | [4] | (84,000) | (84,000) | ||||||||||||||||||||
Capitalized swap interest, net of tax | [5] | 0 | ||||||||||||||||||||||
Adoption of ASU 2018-02 | [6] | 0 | ||||||||||||||||||||||
Reclassification of redeemable noncontrolling interest to temporary equity | (6,091,000) | (6,091,000) | ||||||||||||||||||||||
Share of investee's other comprehensive income, net of tax of $285 | 1,002,000 | [7] | 1,002,000 | 1,002,000 | ||||||||||||||||||||
Derecognition of 110 North Wacker, net of tax of $951 | [9] | (165,509,000) | 12,935,000 | 1,000 | 12,934,000 | (178,444,000) | ||||||||||||||||||
Common stock issued (in shares) | 12,270,900 | |||||||||||||||||||||||
Issuance of common shares | 593,616,000 | $ 123,000 | 593,493,000 | $ 593,616,000 | ||||||||||||||||||||
Stock plan activity (in shares) | 136,021 | 20,298 | ||||||||||||||||||||||
Stock plan activity | 8,243,000 | 8,243,000 | $ 2,000 | 9,802,000 | $ (1,561,000) | |||||||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2020 | 56,042,814 | |||||||||||||||||||||||
Balance at the end of the period at Dec. 31, 2020 | $ 3,715,023,000 | $ 3,714,603,000 | $ 562,000 | $ 3,947,278,000 | $ (72,556,000) | $ (38,590,000) | $ (122,091,000) | $ 420,000 | ||||||||||||||||
Balance at the end of the period (in shares) at Dec. 31, 2020 | (1,070,558) | |||||||||||||||||||||||
[1] | Excludes redeemable noncontrolling interest, which is reflected in temporary equity. See Note 3 - Acquisitions and Dispositions. | |||||||||||||||||||||||
[2] | Related to the adoption of ASU 2014-09, Revenues from Contracts with Customers (Topic 606) and all its related amendments as of January 1, 2018. | |||||||||||||||||||||||
[3] | Amounts are shown net of deferred tax benefit of $5.3 million for the year ended December 31, 2020, $6.2 million for the year ended December 31, 2019, and $0.3 million for the year ended December 31, 2018. | |||||||||||||||||||||||
[4] | The deferred tax impact is not meaningful for the years ended December 31, 2020 and 2019. Amount is net of deferred tax expense of $0.5 million for the year ended December 31, 2018. | |||||||||||||||||||||||
[5] | The deferred tax impact was not meaningful for the years ended December 31, 2020, 2019 and 2018. | |||||||||||||||||||||||
[6] | 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 | |||||||||||||||||||||||
[7] | The amount for 2020 is shown net of deferred tax expense of $0.3 million. | |||||||||||||||||||||||
[8] | Related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) and all its related amendments as of January 1, 2020. | |||||||||||||||||||||||
[9] | Related to deconsolidation of 110 North Wacker. Refer to Note 3 - Acquisitions and Dispositions for additional information. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Interest rate swaps, tax benefit | $ 6,161 | $ 342 |
Pension adjustment, tax (expense) benefit | (41) | (467) |
Capitalized swap interest, tax | $ 20 | $ 8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ (3,173) | $ 74,295 | $ 57,726 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation | 198,556 | 143,698 | 113,518 |
Amortization | 18,200 | 10,684 | 13,047 |
Amortization of deferred financing costs | 13,301 | 11,726 | 9,347 |
Amortization of intangibles other than in-place leases | 680 | 788 | 1,681 |
Straight-line rent amortization | (14,204) | (5,652) | (12,584) |
Deferred income taxes | 10,827 | 27,818 | 16,195 |
Pre-tax stock-based compensation expense | 5,983 | 19,502 | 12,128 |
Net gain on sale of properties | (13,710) | (22,669) | 0 |
Net gain on sale of equity method investments | (1,076) | 0 | 0 |
Net gain on sale of lease receivable | (38,124) | 0 | 0 |
Proceeds from the sale of lease receivable | 64,155 | 0 | 0 |
Selling profit from sales-type leases | 0 | (13,537) | |
(Gain) loss on extinguishment of debt | 9,604 | (4,851) | 0 |
Impairment charges | 62,384 | 0 | 0 |
Equity in (earnings) losses from real estate and other affiliates, net of distributions | (264,416) | (9,585) | (24,809) |
Provision for doubtful accounts | 21,403 | 3,920 | 6,078 |
Master Planned Community land acquisitions | 0 | (752) | (3,565) |
Master Planned Community development expenditures | (228,402) | (238,806) | (195,504) |
Master Planned Community cost of sales | 91,383 | 119,429 | 113,282 |
Condominium development expenditures | (244,642) | (211,617) | (289,084) |
Condominium rights and units cost of sales | 100,584 | 369,759 | 262,562 |
Net Changes: | |||
Accounts and notes receivable | 78,647 | 24,519 | 26,209 |
Prepaid expenses and other assets | (31,467) | 3,147 | (6,942) |
Condominium deposits received | 115,090 | (68,842) | 108,061 |
Deferred expenses | (23,289) | (52,503) | (17,697) |
Accounts payable and accrued expenses | (1,162) | 27,261 | 20,676 |
Other, net | 0 | 0 | 195 |
Cash provided by (used in) operating activities | (72,868) | 207,732 | 210,520 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Property and equipment expenditures | (1,611) | (6,951) | (4,485) |
Operating property improvements | (39,863) | (55,524) | (47,750) |
Property development and redevelopment | (430,498) | (674,244) | (572,966) |
Acquisition of assets | 0 | (565,552) | (234,541) |
Proceeds from sales of properties | 24,373 | 67,110 | 0 |
Reimbursements under tax increment financings | 6,703 | 6,883 | 22,651 |
Notes issued to real estate and other affiliates and third party | 0 | 0 | (3,795) |
Distributions from real estate and other affiliates | 16,232 | 1,437 | 1,732 |
Investments in real estate and other affiliates, net | (3,882) | (6,056) | (2,617) |
Cash used in investing activities | (428,546) | (1,232,897) | (841,771) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from mortgages, notes and loans payable | 1,403,923 | 1,292,083 | 1,172,622 |
Principal payments on mortgages, notes and loans payable | (867,935) | (386,489) | (838,462) |
Proceeds from issuance of common stock | 593,574 | 0 | 0 |
Purchase of treasury stock | 0 | (53,922) | (58,715) |
Special Improvement District bond funds released from (held in) escrow | 10,151 | 6,077 | 8,051 |
Deferred financing costs and bond issuance costs, net | (17,844) | (19,639) | (15,833) |
Taxes paid on stock options exercised and restricted stock vested | (2,229) | (5,449) | (3,995) |
Gain on unwinding of swaps | 0 | 0 | 16,104 |
Stock options exercised | 4,638 | 3,535 | 11,748 |
Issuance of noncontrolling interests | 0 | 84,889 | 99,646 |
Cash provided by financing activities | 1,124,278 | 921,085 | 391,166 |
Net change in cash, cash equivalents and restricted cash | 622,864 | (104,080) | (240,085) |
Cash, cash equivalents and restricted cash at beginning of period | 620,135 | 724,215 | 964,300 |
Cash, cash equivalents and restricted cash at end of period | 1,242,999 | 620,135 | 724,215 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest paid | 179,355 | 168,925 | 149,693 |
Interest capitalized | 70,258 | 73,002 | 77,918 |
Income taxes paid (refunded), net | (2,409) | (2,138) | 70 |
NON-CASH TRANSACTIONS | |||
Initial recognition of ASC 842 operating leases ROU asset | 493 | 72,106 | |
Initial recognition of ASC 842 operating lease obligation | 493 | 71,888 | |
Accrued property improvements, developments and redevelopments | (92,383) | 14,454 | 0 |
Special Improvement District bond transfers associated with land sales | 10,122 | 22,423 | 10,937 |
Accrued interest on construction loan borrowing | 9,743 | 10,154 | 7,584 |
Acquisition of below-market lease intangible | 0 | 0 | 1,903 |
Capitalized stock compensation | 1,158 | 1,443 | 2,434 |
Special Improvement District bonds held in third party escrow | $ 0 | $ 9,686 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. 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 (MPC) and residential condominiums, transforms a multi-block district largely under private management in New York City into a lifestyle destination (Seaport District), 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. Certain amounts in the 2019 and 2018 results of operations have been reclassified to conform to the current presentation. Specifically, the Company reclassified minimum rents, tenant recoveries and interest income from sales-type leases to Rental revenue; hospitality revenues, other land revenues and other rental and property revenues to Other land, rental and property revenues; and master planned communities operations, other property operating costs, rental property maintenance costs and hospitality operating costs to Operating costs. In addition, certain labor costs previously presented in the MPC property operating costs were reclassified to corporate General and administrative expense. COVID-19 Pandemic The outbreak of COVID-19 in 2020 resulted in a global slowdown of economic activity including worldwide travel restrictions, prohibitions of non-essential work activities, disruption and shutdown of businesses and greater uncertainty in global financial markets, all of which resulted in COVID-19 having an impact on the Company’s financial performance in fiscal 2020. As this pandemic endures and continues to have an impact on global economic activity, the extent to which COVID-19 adversely impacts the Company’s future business operations, financial performance and results of operations will depend on many factors outside the Company's control. The significance, extent and duration of such impact remains largely uncertain and dependent on future developments that cannot be accurately predicted. The future developments include, but are not limited to: (1) the continued severity, duration, transmission rate and geographic spread of COVID-19 in the United States and other regions in which the Company operates; (2) the extent and effectiveness of the containment measures taken and distribution and continued efficacy of the vaccine; and (3) the response of the overall economy, the financial markets and the population, particularly in areas in which the Company operates. 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 noncontrolling interests. 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, capitalization of development costs, provision for income taxes, future cash flows used in impairment analysis and fair value used in impairment calculations, 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, and the fair value of warrants, debt and options granted. In particular, MPC cost of sales estimates are highly judgmental as they are sensitive to cost escalation, sales price escalation and lot absorption, which are subject to judgment and affected by expectations about future market or economic conditions. Actual results could differ from these and other estimates. It is reasonably possible these estimates will change in the near term due to the rapid development and fluidity of the events and circumstances resulting from the COVID-19 pandemic. 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 four business segments: (i) Operating Assets; (ii) MPC; (iii) Seaport District and (iv) 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 Balance Sheet Location 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. The Company did not recognize additional depreciation expense of significance for the years ended December 31, 2020, 2019 and 2018. 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 as of December 31: thousands 2020 2019 Land and improvements $ 407,926 $ 423,520 Development costs 744,748 1,022,477 Total Developments $ 1,152,674 $ 1,445,997 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 reassesses 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. For investments in joint ventures where the Company has virtually no influence on the joint venture’s operating and financial policies, the Company has elected the measurement alternative to carry the securities at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the issuer. Equity securities not accounted for under the equity method are required to be reported at fair value with unrealized gains and losses reported in the Consolidated Statements of Comprehensive Income (Loss) as Net unrealized gains (losses) on instruments measured at fair value through earnings, unless the securities do not have readily determinable fair values. 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 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 Seaport District include, but are not limited to, significant changes in projected completion dates, operating revenues or cash flows, development costs, ongoing low occupancy, and market factors. Impairment indicators for assets in the 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 affiliate 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 affiliate 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. 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. HHC recorded impairments of $48.7 million for the year ended December 31, 2020. For the years ended December 31, 2019 and 2018, HHC evaluated whether impairment indicators existed at any of its assets and concluded 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. Operating Lease Collectibility On a quarterly basis, management reviews tenant rents, tenant recoveries and straight-line rent assets for collectibility. As required under ASC 842 - Leases , this analysis includes a review of past due accounts and considers factors such as the credit quality of tenants, current economic conditions and changes in customer payment trends. When full collection of a lease receivable or future lease payment is not probable, a reserve for the receivable balance is charged against rental revenue and future rental revenue is recognized on a cash basis. Due to the impacts of COVID-19 on the collectability of tenant receivables, the Company completed an analysis of its collections and determined full collection of outstanding tenant rents and recoveries was not probable for a number of retail tenants. In addition, the Company determined that a reserve for estimated losses under ASC 450 - Contingencies is required as the amount is probable and can be reasonably estimated. Therefore, for the year ended December 31, 2020, the Company recognized a total impact of $27.8 million in the Consolidated Statement of Operations, comprised of a $21.8 million charge against Rental revenue related to ASC 842 and a $6.0 million charge to the Provision for (recovery of) doubtful accounts related to ASC 450. For the year ended December 31, 2019, the company recognized a charge of $6.3 million against Rental revenue related to ASC 842. Accounts Receivable, net Accounts receivable includes tenant rents, tenant recoveries and other receivables. Accounts receivables are shown net of allowances for doubtful accounts of $24.0 million as of December 31, 2020, and $15.6 million as of December 31, 2019. 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 as required under ASC 326 - Financial Instruments - Credit Losses . Refer to discussion below for information related to the adoption of ASC 326 in 2020. 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, wastewater, 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 determines the costs it believes will be eligible for reimbursement and recognizes that as MUD receivables. These expenditures are subject to review by the MUD engineers for eligibility in accordance with the development contracts as part of the process for reimbursement. 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, Condominium inventory, Special Improvement District (SID) receivables, Various Intangibles, and prepaid expenses related to the Company’s properties. Straight-line rent assets are shown net of allowances for doubtful accounts of $9.0 million as of December 31, 2020, and $1.0 million as of December 31, 2019. SID receivables are amounts due from SID bonds related to the Company’s Summerlin MPC. 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 $54.8 million as of December 31, 2020, and $43.0 million as of December 31, 2019. Tax increment financing (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 are $0.9 million as of December 31, 2020, and $3.9 million as of December 31, 2019. The Company’s intangibles include in-place lease assets and above-market lease assets where HHC is the lessor, trademark/tradename intangibles related to MPCs, and other indefinite lived intangibles relating to properties and businesses acquired in previous real estate transactions. The balance of unamortized below-market ground leases was reclassified to Operating lease right-of-use assets, net upon adoption of ASU No. 2016-02, Leases (Topic 842). 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. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which the temporary differences are expected to reverse. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. The Company periodically assesses the realizability of its deferred tax assets. If the Company concludes that it is more likely than not that some of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. The Company considers many factors when assessing the likelihood of future realization of deferred tax assets, including expectations of future taxable income, carryforward periods available to the Company for tax reporting purposes, various income tax strategies and other relevant factors. In addition, interest and penalties related to uncertain tax positions, if necessary, are recognized in income tax expense. In the Company’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. 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 $39.7 million as of December 31, 2020 and $31.7 million as of December 31, 2019. Marketing and Advertising Each of the Company’s 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 as a component of Net Income in the Consolidated Statements of Operations or as a component of Comprehensive Income in the 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 The Company applies the provisions of ASC 718 Stock Compensation which requires all share‑based payments to be recognized in the Consolidated Statements of Operations based on their fair values. The Company grants various types of stock-based awards including stock options, restricted stock awards and performance-based awards. The fair value of stock option awards is determined using the Black-Scholes option-pricing model. Restricted stock awards are valued using the market price of the Company’s common stock on the grant date. For performance-based awards, the fair value of the market-condition portion of the award is measured using a Monte Carlo simulation, and the performance-condition portion is measured at the market price of Company’s common stock on the grant date. The Company records compensation cost for stock-based compensation awards over the requisite service period. If the requisite service period is satisfied, compensation cost is not adjusted unless the award contains a performance condition. If an award contains a performance condition, expense is recognized only for those shares that ultimately vest using the per-share fair value measured at the grant date. The Company recognizes forfeitures as they occur. See Note 11 - Stock-Based Compensation Plans for additional information. 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 |
REAL ESTATE AND OTHER AFFILIATE
REAL ESTATE AND OTHER AFFILIATES | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Real Estate and Other Affiliates | 2. Real Estate and Other Affiliates As of December 31, 2020, the Company is not the primary beneficiary of any of the investments listed below as it does not have the power to direct the activities that most significantly impact the economic performance of the ventures. As a result, the Company reports its interests in accordance with the equity method. As of December 31, 2020, approximately $545.0 million of indebtedness was secured by the properties owned by the Company’s real estate and other affiliates of which the Company’s share was $274.5 million based upon economic ownership. All of this indebtedness is without recourse to the Company, with the exception of $100.6 million related to 110 North Wacker. Equity investments in real estate and other affiliates are reported as follows: Economic/Legal Ownership Carrying Value Share of Earnings/Dividends December 31, December 31, December 31, December 31, Year Ended December 31, thousands except percentages 2020 2019 2020 2019 2020 2019 2018 Equity Method Investments Operating Assets 110 North Wacker (a) see below see below $ 261,143 $ — $ (13,896) $ — $ — The Metropolitan Downtown Columbia (b) 50.0 % 50.0 % — — 765 694 467 Stewart Title of Montgomery County, TX 50.0 % 50.0 % 3,924 4,175 1,250 1,105 573 Woodlands Sarofim #1 20.0 % 20.0 % 3,120 2,985 125 125 94 m.flats/TEN.M 50.0 % 50.0 % 1,247 2,431 666 (1,875) (2,478) Master Planned Communities The Summit (c) see below see below 96,300 84,455 17,845 28,336 36,284 Seaport District Mr. C Seaport (d) — % 35.0 % — 7,650 (6,900) (1,980) (465) Bar Wayō (Momofuku) (c) see below see below 7,101 7,469 (2,392) (612) — Strategic Developments Circle T Ranch and Power Center (e) — % 50.0 % — 8,207 2,463 950 1,534 HHMK Development 50.0 % 50.0 % 10 10 — — — KR Holdings 50.0 % 50.0 % 347 422 (69) 263 830 Mr. C Seaport (d) — % 35.0 % — — — — (240) 110 North Wacker (a) see below see below — — 267,518 — — 373,192 117,804 267,375 27,006 36,599 Other equity investments (f) 3,953 3,953 3,724 3,623 3,355 Investments in real estate and other affiliates $ 377,145 $ 121,757 $ 271,099 $ 30,629 $ 39,954 (a) During the third quarter of 2020, 110 North Wacker was completed and placed in service. This triggered a reconsideration event that resulted in the deconsolidation of 110 North Wacker and the recognition of the retained equity method investment at fair market value. The $267.5 million gain on deconsolidation was recorded in the Strategic Developments segment. The equity method investment was transferred from the Strategic Development segment to the Operating Asset segment. Refer to the discussion below for additional details. (b) The Metropolitan Downtown Columbia was in a deficit position of $5.0 million at December 31, 2020, and $4.7 million at December 31, 2019, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at December 31, 2020 and 2019. (c) Refer to the discussion below for details on the ownership structure. (d) Mr. C Seaport was transferred from Strategic Developments to Operating Assets during the three months ended September 30, 2018. During the three months ended September 30, 2020, the Company completed the sale of its 35% equity investment. (e) The Company completed the sale of its 50.0% equity investment in Circle T Ranch and Power Center in December 2020. See Note 3 - Acquisitions and Dispositions for additional information. (f) Other equity investments represent equity investments not accounted for under the equity method. The Company elected the measurement alternative as these investments do not have readily determinable fair values. See Note 1 - Summary of Significant Accounting Policies for additional information. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year 2020, or cumulatively. Significant activity for real estate and other affiliates and the related accounting considerations are described below. Mr. C Seaport As of December 31, 2019, the Mr. C Seaport variable interest entity (VIE) did not have sufficient equity at risk to finance its operations without additional financial support and the carrying value of the Company’s investment was classified as Investment in real estate and other affiliates on the Consolidated Balance Sheets. During the three months ended June 30, 2020, the Company recognized a $6.0 million impairment of its equity investment in Mr. C Seaport. During the three months ended September 30, 2020, the Company completed the sale of its 35% equity investment in Mr. C Seaport. Refer to Note 3 - Acquisitions and Dispositions and Note 4 - Impairment for additional information. 110 North Wacker The Company formed a partnership with a local developer (the Partnership) during the second quarter of 2017. During the second quarter of 2018, the Partnership executed an agreement with USAA related to 110 North Wacker (collectively, the local developer and USAA are the Partners) to construct and operate the building at 110 North Wacker (the Venture). The Partnership was determined to be a VIE, and as the Company has the power to direct the activities of the Partnership that most significantly impact its economic performance, the Company is considered the primary beneficiary and consolidates the Partnership. Additionally, the noncontrolling interest holder has the right to require the Company to purchase its interest in the Partnership if the Venture has not been sold or refinanced (with distributions made to the local developer and Company sufficient to repay all capital contributions), at the later of (1) the third anniversary of the issuance of the certificate of occupancy for the project or (2) the fifth anniversary of the effective date of the Partnership's LLC agreement. Therefore, the local developer’s redeemable noncontrolling interest in the Partnership is presented as temporary equity on the Consolidated Balance Sheets. As of December 31, 2020, the time restriction has not been met, and the Company believes it is not probable that the put will be redeemed. As such, the redeemable noncontrolling interest is measured at the initial carrying value plus net income (loss) attributable to the noncontrolling interest and is not adjusted to fair value. The following table presents changes in Redeemable noncontrolling interest: thousands Redeemable Noncontrolling Interest Balance as of December 31, 2019 $ — Reclassification of redeemable noncontrolling interest to temporary equity 6,091 Net income (loss) attributable to noncontrolling interest 22,881 Share of investee's other comprehensive income 142 Balance as of December 31, 2020 $ 29,114 Upon execution of the Venture in the second quarter of 2018, the Company contributed land with a carrying value of $33.6 million and an agreed upon fair value of $85.0 million, the local developer contributed $5.0 million in cash and USAA contributed $64.0 million in cash. USAA was required to fund up to $105.6 million in addition to its initial contribution. HHC and the local developer also had additional cash funding requirements and contributed $9.8 million and $1.1 million, respectively, during 2018. The Company and its Partners entered into a construction loan agreement further described in Note 7 - Mortgages, Notes and Loans Payable, Net . Any further cash funding requirements by the Partnership were eliminated when the construction loan increased on May 23, 2019. Concurrently with the increase in the construction loan, USAA agreed to fund an additional $8.8 million, for a total commitment of $178.4 million. No changes were made to the rights of either the Company or the Partners under the construction loan agreement. The Company concluded that the Venture was within the scope of the VIE model, and that it was the primary beneficiary of the Venture during the development phase of the project because it had the power to direct activities that most significantly impact the Venture’s economic performance, however, upon the building’s completion, the Company expected to recognize the investment under the equity method. As the primary beneficiary of the VIE during the development phase, the Company has consolidated 110 North Wacker and its underlying entities since the second quarter of 2018. During the third quarter of 2020, 110 North Wacker was completed and placed in service, triggering a reconsideration event. Upon development completion, the Company concluded it is no longer the primary beneficiary and as such, should no longer consolidate the Venture. As there have been no changes to the structure and control of the Partnership with the local developer, the Company will continue to consolidate the Partnership. As of September 30, 2020, the Company derecognized all assets, liabilities and noncontrolling interest related to the Venture that were previously consolidated and recognized an equity method investment of $273.6 million based on the fair value of its interest in 110 North Wacker. The Company recognized a gain of $267.5 million attributable to the initial fair value step-up at the time of deconsolidation, which is included in Equity in earnings (losses) from real estate and other affiliates on the Consolidated Statements of Operations and reported in the Strategic Developments segment for the year ended December 31, 2020. The Company utilized a third-party appraiser to measure the fair value of 110 North Wacker on an as-is basis at September 30, 2020, using the discounted cash flow approach and sales comparison approach, based on current market assumptions. Also as a result of the deconsolidation, the Company recognized an additional $15.4 million attributable to the recognition of previously eliminated development management fees, which is included in Other land, rental and property revenues on the Consolidated Statements of Operations and reported in the Strategic Developments segment for the year ended December 31, 2020. As 110 North Wacker has now been placed in service, the equity method investment was transferred from the Strategic Development segment to the Operating Asset segment. 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 Hypothetical Liquidation at Book Value ( HLBV ) method. Under this method, the Company 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, the Partnership is entitled to cash distributions from the Venture until it receives a 9.0% return on its capital account, calculated as the initial land contribution of $85.0 million and cash contribution of $5.0 million, plus subsequent cash contributions and less subsequent cash distributions. Subsequently, USAA is entitled to cash distributions equal to 11.11% of the amount distributed to the Partnership that resulted in a 9.0% return. Thereafter, the Partnership and USAA are entitled to distributions pari passu to their profit ownership interests of 90% and 10%, respectively. As of December 31, 2019, when the Venture was a consolidated VIE, the carrying value of the assets associated with the operations of the Venture was $393.3 million and the carrying value of the related liabilities was $186.5 million. The assets of the Venture were restricted for use only by the Venture and were not available for the Company’s general operations. Bar Wayō During the first quarter of 2016, the Company formed Pier 17 Restaurant C101, LLC (Bar Wayō) with MomoPier, LLC (Momofuku), an affiliate of the Momofuku restaurant group, to construct and operate a restaurant and bar at Pier 17 in the Seaport District. Under the terms of the agreement, the Company will fund 89.75% of the costs to construct the restaurant, and Momofuku will contribute the remaining 10.25%. As of December 31, 2020 and 2019, Bar Wayō is classified as a VIE because the equity holders, as a group, lack the characteristics of a controlling financial interest. The carrying value of Bar Wayō as of December 31, 2020, is $7.1 million and is classified as Investments in real estate and other affiliates in the Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of these investments is limited to the aggregate carrying value of the investments as the Company has not provided any guarantees or otherwise made firm commitments to fund amounts on behalf of this VIE. After each member receives a 10.0% preferred return on its capital contributions, available cash will be allocated 75.0% to the Company and 25.0% to Momofuku, until each member’s unreturned capital account has been reduced to zero. Any remaining cash will be distributed 50% to each of the members. Given the nature of the Bar Wayō’s capital structure and the provisions for the liquidation of assets, the Company’s share of the Bar Wayō’s income-producing activities is recognized based on the HLBV method. The Summit During the first quarter of 2015, the Company formed DLV/HHPI Summerlin, LLC (The Summit) with Discovery Land Company (Discovery). The Company contributed land with a carrying value of $13.4 million and transferred SID bonds related to such land with a carrying value of $1.3 million to The Summit 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 are recognized in Equity in earnings from real estate and other affiliates as The Summit 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 until it has received two times its equity contribution. Any further cash distributions are shared equally. Given the nature of The Summit’s capital structure and the provisions for the liquidation of assets, the Company’s share of The Summit’s income-producing activities is recognized based on the HLBV method. Summarized Financial Information The following tables include relevant summarized financial statement information for all equity method investments as of December 31: thousands The Summit (a)(b) 110 North Wacker (c) Other Investments (d) Balance Sheet 2020 Total Assets $ 306,541 $ 634,274 $ 247,742 Total Liabilities 207,152 415,452 166,418 Total Equity 99,389 218,822 81,324 2019 Total Assets $ 221,277 $ — $ 324,926 Total Liabilities 136,314 — 208,991 Total Equity 84,963 — 115,935 Income Statement 2020 Revenues $ 147,680 $ 5,333 $ 36,450 Gross Margin 27,064 n/a n/a Operating Income n/a (3,148) 17,100 Net income (loss) 20,426 (8,236) 11,220 2019 Revenues $ 120,337 $ — $ 42,778 Gross Margin 32,205 n/a n/a Operating Income n/a — 16,085 Net income (loss) 26,298 — 5,162 2018 Revenues $ 102,559 $ — $ 36,613 Gross Margin 42,338 n/a n/a Operating Income n/a — 14,495 Net income (loss) 36,697 — 6,250 (a) The Summit adopted ASU 2014-09, Revenues from Contracts with Customers (Topic 606) effective in the fourth quarter of 2019 using the modified retrospective transition method. Therefore, for 2019, revenues allocated to each of The Summit’s performance obligations is recognized over time based on an input measure of progress. Prior period amounts have not been adjusted and are recognized on a percentage of completion basis. The Summit’s adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements. (b) The decrease in gross margin for The Summit from 2018 to 2020 is primarily due to the mix of product sold in each year. Home sales, which has a lower margin than lot sales, comprised a higher percentage of revenues in both 2020 and 2019, when compared to each prior year period. Additionally, gross margin decreased from 2019 to 2020 due to an increase in projected amenity costs. (c) The income statement amounts for 110 North Wacker only include activity for the three months ended December 31, 2020, to correspond with the period it was accounted for under the equity method. The loss for that period is the result of the asset still being in the lease-up period. (d) Other Investments includes The Metropolitan Downtown Columbia, Stewart Title, Woodlands Sarofim #1, m.flats / TEN.M, Bar Wayō, Mr. C Seaport, Circle T Ranch and Power, HHMK Development and KR Holdings. As the Company sold its interests Mr. C Seaport and Circle T Ranch and Power in 2020, the income statement amounts only include activity through the date of sale and the balance sheet amounts do not include balances for these assets as of December 31, 2020. Previously Consolidated VIEs As of December 31, 2018, the Company was the primary beneficiary of Bridges at Mint Hill and the Ke Kilohana, Anaha, Waiea and Ae‘o Associations of Unit Owners (AOUO), none of which were related parties, and consolidated these entities in its financial statements. The Company deconsolidated the Ke Kilohana, Anaha, Waiea and Ae‘o AOUOs during the year ended December 31, 2019, as the Company no longer controlled these entities and as such, the entities no longer met the definition of a VIE. The Company sold Bridges at Mint Hill in December 2019. See Note 3 - Acquisitions and Dispositions |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS AND DISPOSITIONS | |
Acquisitions and Dispositions | 3. Acquisitions and Dispositions Acquisitions There were no acquisitions during 2020. On December 30, 2019, the Company acquired two Class AAA office towers, consisting of 1,401,611 square feet, which it has rebranded as The Woodlands Towers at The Waterway, a 125,801 square feet warehouse space and 9.3 acres of land in The Woodlands, TX for $565.0 million plus Leasing commission of $19.3 million for a total of $584.3 million in an asset acquisition. The transaction also included the acquisition of Century Park, a 63-acre, 1,302,597 square foot campus with 17 office buildings in the West Houston Energy Corridor. The Company has leased 100% of the 805,993 square foot tower and 125,801 square foot warehouse to Occidental Petroleum Corporation, the current tenant, for 13 years and is re-marketing Century Park. During 2020, the Company relocated its Dallas corporate headquarters into part of the 595,618 square foot tower in The Woodlands and will lease the remaining space. The following table summarizes the accounting of the purchase price using the income approach: Asset Acquisition Date Fair Value thousands The Woodlands Towers at The Waterway The Woodlands Warehouse Waterway Land Century Park Total Building $ 377,308 $ 4,198 $ — $ 24,585 $ 406,091 Tenant improvements 58,869 — — — 58,869 In-place leases 49,511 1,410 — — 50,921 Land 11,044 4,480 11,511 19,816 46,851 Leasing commission 18,599 720 — — 19,319 Site Improvements 1,384 190 — 667 2,241 Legal and marketing costs 16 3 — — 19 Total (a) $ 516,731 $ 11,001 $ 11,511 $ 45,068 $ 584,311 (a) Total is inclusive of the asset acquisition price as well as leasing commission paid at closing. 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 258,000 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. At acquisition, the loan had 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%. Please refer to Note 7 - Mortgages, Notes and Loans Payable, Net for details of the extinguishment of this debt and the new debt facility subsequently entered into. Dispositions On December 18, 2020, the Company completed the sale to its joint venture partner of its 50% equity method investment in Circle T Ranch and Power Center, a joint venture with Westlake Retail Associates for $13.0 million. The carrying value of the asset at the time of sale was approximately $11.9 million and the Company recognized a gain on sale of $1.1 million which is included in Equity in earnings (losses) from real estate and other affiliates on the Consolidated Statements of Operations. On November 20, 2020, the Company completed the sale of its Elk Grove asset, a 64-acre land parcel in the City of Elk On July 16, 2020, the Company completed the sale to its joint venture partner of its 35% equity investment in Mr. C Seaport, a 66-room boutique hotel located at 33 Peck Slip, New York, in close proximity to the Seaport District, for $0.8 million. The carrying value at the time of sale approximated the sales price. Refer to Note 2 - Real Estate and Other Affiliates and Note 4 - Impairment for additional information. On June 29, 2020, the Company entered into an agreement terminating a participation right contained in the contract for the sale of West Windsor that occurred in October 2019, as discussed below. As consideration, the Company received an $8.0 million termination payment in 2020, which is included in Gain (loss) on sale or disposal of real estate and other assets, net on the Consolidated Statements of Operations for the year ended December 31, 2020. On March 13, 2020, the Company closed on the sale of its property at 100 Fellowship Drive, a 13.5-acre land parcel and 203,257-square-foot build-to-suit medical building with approximately 550 surface parking spaces in The Woodlands, Texas, for a total sales price of $115.0 million. The sale of 100 Fellowship Drive resulted in an additional gain of $38.3 million in the first quarter of 2020, which is included in Gain (loss) on sale or disposal of real estate and other assets, net on the Consolidated Statements of Operations. This gain was in addition to $13.5 million of Selling profit from the sales-type lease recognized on the Consolidated Statements of Operations as of December 31,2019. The Company had previously entered into a lease agreement related to this property in November of 2019, and at lease commencement, the Company derecognized $63.7 million from Developments and recorded an initial net investment in lease receivable of $75.9 million on the Consolidated Balance Sheets The carrying value of the net investment in lease receivable was approximately $76.1 million at the time of sale. Gain on sale is calculated as the difference between the purchase price of $115.0 million, and the asset’s carrying value, less related transaction costs of approximately $0.2 million. Contemporaneous with the sale, the Company credited to the buyer approximately $0.6 million for operating account funds and the buyer’s assumption of the related liabilities. After the sale, the Company had no continuing involvement in this lease. After repayment of debt associated with the property, the sale generated approximately $64.2 million in net proceeds, which are presented as cash inflows from operating activities in the Consolidated Statements of Cash Flows for the year ended December 31, 2020. On December 20, 2019, the Company sold its 90.5% share in Bridges at Mint Hill, a joint venture to develop a shopping center southeast of Charlotte, North Carolina, for $9.5 million. Prior to the sale, the Company accounted for its investment in Bridges at Mint Hill, which was in the Strategic Developments segment, as a consolidated joint venture. The carrying value of assets acquired by the purchaser and deconsolidated from the Company’s financial statements total $22.0 million; liabilities assumed and deconsolidated were not meaningful; and noncontrolling interest deconsolidated from the Company’s financial statements totaled $3.8 million. The Company recognized a pre-tax loss of $8.8 million which is included in Gain (loss) on sale or disposal of real estate and other assets, net on the Consolidated Statements of Operations. On October 29, 2019, the Company closed on the sale of West Windsor, a 658-acre parcel of land located in West Windsor, New Jersey, for $40.0 million. The carrying value of assets acquired by the purchaser total $27.5 million; no liabilities were assumed. As a result of the sale, the Company recorded a $12.0 million pre-tax gain which is included in Gain (loss) on sale or disposal of real estate and other assets, net on the Consolidated Statements of Operations. On September 16, 2019, the Company closed on the sale of Cottonwood Mall, a 196,975 square foot building and 54-acre land parcel in Holladay, Utah. The Company sold the asset for a total sales price of $46.0 million, resulting in a pre-tax gain of $24.1 million which is included in Gain (loss) on sale or disposal of real estate and other assets, net on the Consolidated Statements of Operations. The carrying value of assets acquired by the purchaser total $21.5 million; no liabilities were assumed. As consideration, the Company received a $10.0 million down payment from the purchaser and recorded a $36.0 million note receivable for the remainder at time of sale. The receivable was subsequently collected during the year ended December 31, 2020. |
IMPAIRMENT
IMPAIRMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Impairment | 4. Impairment The Company reviews its long-lived 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. During the first quarter of 2020, the Company recorded a $48.7 million impairment charge for Outlet Collection at Riverwalk, a 273,270-square-foot urban upscale outlet center located along the Mississippi River in downtown New Orleans, LA. The Company recognized the impairment due to decreases in estimated future cash flows as a result of the impact of a shorter than anticipated holding term due to management’s plans to divest the non-core operating asset, decreased demand and reduced interest in brick and mortar retail due to the impact of COVID-19, as well as an increase in the capitalization rate used to evaluate future cash flows due to the impact of COVID-19. The $46.8 million net carrying value of Outlet Collection at Riverwalk, after the impairment, represents the estimated fair market value at March 31, 2020, at the time of the impairment assessment. The Company used a discounted cash flow analysis using a capitalization rate of 10% to determine fair value. There can be no assurance that the Company will ultimately recover this amount through a sale. Each investment in real estate and other affiliates 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 affiliate is deemed to be other-than-temporary, the investment in such real estate and other affiliates is reduced to its estimated fair value. During the three months ended June 30, 2020, the Company recorded a $6.0 million impairment of its equity investment in Mr. C Seaport, a 66-room boutique hotel located at 33 Peck Slip in close proximity to the Seaport District. The Company recognized the impairment due to a change in the anticipated holding period as the Company entered into a plan to sell its 35% equity investment in Mr. C Seaport to its venture partners for $0.8 million. In July 2020, the Company completed the sale of its interest in Mr. C Seaport. See Note 3 - Acquisitions and Dispositions for additional details regarding the sale. The impairment loss is presented in Equity in earnings (losses) from real estate and other affiliates. No impairment charges were recorded for the Investments in real estate and other affiliates during the year ended December 31, 2019. The Company periodically evaluates strategic alternatives with respect to each property and may revise the strategy from time to time, including the intent to hold the asset on a long-term basis or the timing of potential asset dispositions. For example, the Company may decide to sell property that is held for use, and the sale price may be less than the carrying amount. As a result, changes in strategy could result in impairment charges in future periods. In addition to the impairments discussed above, during 2020, the Company reduced the estimated net sales price of certain condominium units, including the remaining penthouse inventory, to better align the expected price with recent final sales prices, resulting in a loss of $7.6 million included in Condominium rights and unit cost of sales for the year ended December 31, 2020. The following table summarizes the pre-tax impacts of the items mentioned above to the Consolidated Statements of Operations: December 31, 2020 thousands Statements of Operations Line Item Operating assets: Outlet Collection at Riverwalk Provision for impairment $ 48,738 Equity Investments: Mr. C Seaport Equity in earnings (losses) from real estate and other affiliates $ 6,000 Other Assets: Condominium Inventory Condominium rights and unit sales $ 7,644 |
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
OTHER ASSETS AND LIABILITIES | |
Other Assets and Liabilities | 5. Other Assets and Liabilities Prepaid Expenses and Other Assets The following table summarizes the significant components of Prepaid expenses and other assets as of December 31: thousands 2020 2019 $ Change Straight-line rent $ 59,289 $ 56,223 $ 3,066 Condominium inventory 55,883 56,421 (538) Special Improvement District receivable (a) 54,770 42,996 11,774 In-place leases (b) 49,161 54,471 (5,310) Security, escrow and other deposits (c) 48,576 17,464 31,112 Intangibles 32,595 33,275 (680) Prepaid expenses (d) 17,455 13,263 4,192 Other 11,781 9,252 2,529 Tenant incentives and other receivables 9,612 7,556 2,056 Food and beverage and lifestyle inventory 1,060 4,310 (3,250) TIF receivable 893 3,931 (3,038) Above-market tenant leases 315 556 (241) Federal income tax receivable — 655 (655) Prepaid expenses and other assets, net $ 341,390 $ 300,373 $ 41,017 (a) 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. The increase in Special Improvement District receivable is primarily attributable to a third quarter 2020 SID Bond issuance in Summerlin. (b) The decrease in In-place leases is primarily attributable to routine amortization. (c) The increase in Security, escrow and other deposits is primarily attributable to rate-lock and security deposits for The Woodlands Towers at the Waterway. (d) The increase in Prepaid expenses is mainly due to the timing of insurance and property tax prepayments, as well as assets being place into service. Accounts Payable and Accrued Expenses The following table summarizes the significant components of Accounts payable and accrued expenses as of December 31: thousands 2020 2019 $ Change Condominium deposit liabilities (a) $ 309,884 $ 194,794 $ 115,090 Construction payables (b) 253,626 261,523 (7,897) Deferred income 66,656 63,483 3,173 Interest rate swap liabilities (c) 51,920 40,135 11,785 Accrued real estate taxes (d) 38,863 27,559 11,304 Accrued interest (e) 37,007 23,838 13,169 Accounts payable and accrued expenses 28,589 37,480 (8,891) Accrued payroll and other employee liabilities (f) 27,419 44,082 (16,663) Tenant and other deposits 25,801 24,080 1,721 Other 12,493 16,173 (3,680) Accounts payable and accrued expenses $ 852,258 $ 733,147 $ 119,111 (a) The increase in Condominium deposit liabilities is primarily due to the increase in contracted condominium unit sales at Victoria Place, Kō'ula and ‘A‘ali‘i. (b) The decrease in Construction payables is primarily attributable to a decrease of $39.5 million related to the deconsolidation of 110 North Wacker in the third quarter of 2020 (see Note 2 - Rea l Estate and Other A f filiates for details) as well as a reduction in construction spend of $63.3 million primarily due to placing a number of assets into service in 2020 and several projects approaching completion. These decreases were partially offset by an increase of $97.9 million related to a charge for repairs and remediation on certain alleged construction defects at the Waiea condominium tower in the first quarter of 2020 (see Note 10 - Commitments and Contingencies for details (c) The increase in Interest rate swap liabilities is due to a decrease of the one-month London Interbank Offered Rate (LIBOR) forward curve for the period presented, partially offset by a decrease of $15.2 million related to the deconsolidation of 110 North Wacker. (d) The increase in Accrued real estate taxes is primarily related to the acquisition of The Woodlands Towers at the Waterway at the end of 2019 and new assets placed in service in 2020. (e) The increase in Accrued interest was primarily related to new loan agreements entered into in 2020. |
INTANGIBLES
INTANGIBLES | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | 6. Intangibles The following table summarizes the Company’s intangible assets and liabilities: As of December 31, 2020 As of December 31, 2019 Gross Asset (Liability) Accumulated (Amortization)/ Accretion Net Carrying Amount Gross Asset (Liability) Accumulated (Amortization)/ Accretion Net Carrying Amount thousands Intangible Assets: Indefinite lived intangibles $ 25,028 $ — $ 25,028 $ 25,028 $ — $ 25,028 Goodwill 1,307 — 1,307 1,307 — 1,307 Other intangibles 9,251 (2,991) 6,260 10,278 (3,338) 6,940 Tenant leases: In-place value 63,584 (14,423) 49,161 66,606 (12,135) 54,471 Above-market 1,985 (1,670) 315 2,247 (1,691) 556 Below-market (4,839) 3,198 (1,641) (7,008) 4,912 (2,096) Total indefinite lived intangibles $ 26,335 $ 26,335 Total amortizing intangibles $ 54,095 $ 59,871 The tenant in-place, above-market and below-market lease intangible assets and the below-market ground lease intangible assets resulted from real estate acquisitions. The in‑place value and above-market value of tenant leases are included in Prepaid expenses and other assets, net and are amortized over periods that approximate the related lease terms. The below‑market tenant leases are included in Accounts payable and accrued expenses and are amortized over the remaining non‑cancelable terms of the respective leases. See Note 5 - Other Assets and Liabilities for additional information regarding Prepaid expenses and other assets, net and Accounts payable and accrued expenses. Net amortization and accretion expense for these intangible assets and liabilities was $5.8 million in 2020, $2.1 million in 2019 and $6.0 million in 2018. Future net amortization and accretion expense is estimated as shown below: thousands 2021 2022 2023 2024 Thereafter Net amortization and accretion expense $ 5,287 $ 4,901 $ 4,481 $ 4,485 $ 34,941 |
MORTGAGES, NOTES AND LOANS PAYA
MORTGAGES, NOTES AND LOANS PAYABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Mortgages, Notes and Loans Payable, Net | 7. Mortgages, Notes and Loans Payable, Net Financing Activity The Company’s borrowing activity is summarized as follows: thousands Initial / Extended Maturity (a) Interest Rate Carrying Value Balance at December 31, 2019 $ 4,096,470 Issuances: Senior Notes due 2028 August 2028 5.38% (c) 750,000 Special Improvement District bonds October 2049 6.00% 22,750 Borrowings: Revolver Loan September 2023 1.79% (b) 67,500 9950 Woodloch Forest Drive March 2025 2.09% (b),(d) 63,500 A’eo Retail October 2025 2.90% (b) 30,640 Ke Kilohana Retail October 2025 2.90% (b) 9,360 Draws on existing mortgages, notes and loans payable 556,166 Repayments: Revolver Loan September 2023 1.79% (b),(c) (67,500) The Woodlands Towers at the Waterway June 2020/June 2021 3.68% (b),(d) (63,500) Three Hughes Landing September 2020 4.33% (b),(c) (60,766) Two Merriweather October 2020/October 2021 4.23% (b),(c) (30,557) 100 Fellowship Drive May 2022 3.23% (b) (49,978) HHC 242 Self-Storage December 2021/December 2022 4.33% (b),(c) (5,499) HHC 2978 Self-Storage December 2021/December 2022 4.33% (b),(c) (5,395) Downtown Summerlin June 2023 3.88% (b),(c),(e) (255,297) Lakefront North December 2022/December 2023 3.73% (b),(c) (40,062) Seaport District June 2024 6.10% (c) (250,000) Bridgeland Credit Facility October 2022/October 2024 4.23% (b),(c) (50,000) The Woodlands Master Credit Facility October 2022/October 2024 4.23% (b),(c) (50,000) Two Summerlin October 2022/October 2025 4.25% (b),(c) (32,803) Repayments on existing mortgages, notes and loans payable (20,055) Other: Special Improvement District bond assumptions December 2020/October 2049 5.00% - 6.00% (10,122) Deconsolidation of 110 North Wacker April 2022/April 2024 4.73% (b),(f) (326,835) Deferred financing costs, net 9,352 Balance at December 31, 2020 $ 4,287,369 (a) Maturity dates presented represent initial maturity dates and the extended or final maturity dates as contractually stated. HHC has the option to exercise extension periods at the initial maturity date, subject to extension terms that are based on current property performance projections. Extension terms may include 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 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 0.14%, 0.24% and 3.25%, respectively, at December 31, 2020. Interest rates associated with loans which have been paid off reflect the interest rate at December 31, 2019. (c) On August 18, 2020, the Company issued $750 million in senior notes due August 2028 (the Senior Notes due 2028), which will pay interest semi-annually at a rate of 5.375% per annum payable on August 1st and February 1st of each year, beginning on February 1, 2021. The Senior Notes due 2028 will be unsecured senior obligations of the Company and will be guaranteed by certain subsidiaries of the Company. The Company used the net proceeds from this issuance, together with cash on hand, for the repayment of existing indebtedness of approximately $807.9 million and recorded a loss on extinguishment of debt of approximately $13.2 million. (d) On March 26, 2020, the Company closed on a partial refinance of the bridge loan for The Woodlands Towers at the Waterway and The Woodlands Warehouse for $137.0 million. In conjunction with the partial refinance, the original loan was paid down by $63.5 million and 9950 Woodloch Forest Drive tower was split into a new loan. (e) On June 22, 2020, the Company modified the existing Downtown Summerlin loan, extending the financing by three years to June 22, 2023 at a rate of LIBOR plus 2.15% in exchange for a pay-down of $33.8 million to a total commitment of $221.5 million. (f) As of September 30, 2020, the Company derecognized a $326.8 million balance on 110 North Wacker’s variable-rate debt that was subject to interest rate collars. Refer to Note 2 - Real Estate and Other Affiliates for additional information. Additional Financing Activity in 2020 On January 7, 2020, the Company closed on a $43.4 million construction loan for the development of Creekside Park The Grove. The loan bears interest at LIBOR plus 1.75% with an initial maturity date of January 7, 2024, and a one-year extension option. On March 5, 2020, the Company modified and extended the $61.2 million loan for Three Hughes Landing. The new $61.0 million loan bears interest at one-month LIBOR plus 2.60%, with a maturity of September 5, 2020, at which point the Company has the option to extend the Three Hughes Landing loan for an additional 12 months. On March 27, 2020, the Company closed on a $356.8 million construction loan for the development of Kō'ula. The loan bears interest at LIBOR plus 3.00% with an initial maturity date of March 27, 2023, and a one-year extension option. On May 20, 2020, the Company extended the remaining $280.3 million of the bridge loan for The Woodlands Towers at the Waterway and The Woodlands Warehouse for six months at LIBOR plus 2.35%, with an option for an additional six-month extension at LIBOR plus 2.90%, extending the final maturity to June 30, 2021. Financing Activity in 2021 On February 2, 2021, the Company issued $650 million in 4.125% senior notes due 2029 (the 2029 Notes) and $650 million in 4.375% senior notes due 2031 (the 2031 notes, and together with the 2029 Notes, the Notes). The Notes will pay interest semi-annually on February 1 and August 1 of each year, beginning on August 1, 2021. The Notes will be unsecured senior obligations of the Company and will be guaranteed by certain subsidiaries of the Company. The Company will use the net proceeds from the offering, as well as available cash on hand, to repurchase all of its $1 billion 5.375% senior notes due 2025, plus any accrued and unpaid interest, pursuant to a tender offer announced in January 2021; repay all of the approximately $280 million outstanding under its loans for 1201 Lake Robbins and The Woodlands Warehouse maturing June 2021; and pay all premiums, fees and expenses related to the foregoing. On February 2, 2021, the Company repurchased $512.5 million of its $1 billion 5.375% senior notes and intends to repurchase the remainder of these notes on March 15, 2021. In February 2021, the Company repaid all of the approximately $280 million outstanding under its loans for 1201 Lake Robbins and The Woodlands Warehouse maturing June 2021. Mortgages, Notes and Loans Payable Mortgages, notes and loans payable, net are summarized as follows: December 31, thousands 2020 2019 Fixed-rate debt: Unsecured 5.375% Senior Notes due 2025 $ 1,000,000 $ 1,000,000 Unsecured 5.375% Senior Notes due 2028 750,000 — Secured mortgages, notes and loans payable 590,517 884,935 Special Improvement District bonds 34,305 23,725 Variable-rate debt: Mortgages, notes and loans payable (a) 1,945,344 2,229,958 Unamortized bond issuance costs (4,355) (5,249) Unamortized deferred financing costs (b) (28,442) (36,899) Total mortgages, notes and loans payable, net $ 4,287,369 $ 4,096,470 (a) As of December 31, 2020, $649.9 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt. As of December 31, 2019, $630.1 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt and an additional $184.3 million of variable-rate debt was subject to interest rate collars. As of both December 31, 2020, and December 31, 2019, $75.0 million of variable-rate debt was capped at a maximum interest rate. See Note 9 - Derivative Instruments and Hedging Activities for additional information. (b) 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). Senior Secured Credit Facility On September 18, 2018, certain wholly-owned subsidiaries of the Company entered into a $700.0 million 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). 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%. As of December 31, 2020, the Company had no outstanding borrowings under the Revolver Loan. The Loans are secured by a first priority security interest in certain of the Company’s 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 Woodlands and Bridgeland Credit Facility On October 17, 2019, the Company closed on a $250.0 million credit facility secured by land and certain other collateral in The Woodlands and Bridgeland MPCs. The loan provides for a $100.0 million term loan and a $150.0 million revolver loan. The loan bears interest at one-month LIBOR plus 2.50% with an initial maturity of October 17, 2022 and two one-year extension options. As of December 31, 2020, the Company had $50.0 million of outstanding borrowings under the revolver portion of the loan. Special Improvement District Bonds 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. For the year ended December 31, 2020, one new SID bond was issued and obligations of $10.1 million were assumed by buyers. Debt Compliance Quarter-ended March 31, 2020: – There were no instances of non-compliance. Quarter-ended June 30, 2020: – During the second quarter of 2020, the COVID-19 pandemic necessitated temporary closure of some of the Company’s Operating Assets, primarily retail and hospitality properties. As a result of the decline in interim operating results for certain of these properties, as of June 30, 2020, the Company did not meet the debt service coverage ratio required to maintain the outstanding Senior Secured Credit Facility Revolver Loan balance of $61.3 million. The Company cured this failure with the repayment of the Revolver Loan in August 2020. – As of June 30, 2020, the Company did not meet the debt service coverage ratios for two loan agreements related to the Self-Storage Operating Assets. Both loans, which totaled $10.9 million, were fully repaid in August 2020. – As of June 30, 2020, the Company did not meet a semi-annual operating covenant within the $62.5 million loan for The Woodlands Resort and Conference Center and subsequently completed a modification of the loan terms with the lender to receive a waiver of the $24.1 million repayment to cure. As part of the modification, the loan balance became fully recourse to The Woodlands Land Development Company. Quarter-ended September 30, 2020: – As of September 30, 2020, the Company did not meet the debt service coverage ratio for the $615.0 million Term Loan portion of the Senior Secured Credit Facility and as a result, the Company subsequently completed a modification of the loan terms which resolved the failure. Quarter-ended December 31, 2020: – As of December 31, 2020, the Company did not meet the debt service coverage ratio for the $615.0 million Term Loan portion of the Senior Secured Credit Facility and as a result, the excess net cash flow after debt service from the underlying properties became restricted. The restricted cash cannot be used for general corporate purposes but can continue to be used to fund operations of the underlying assets. Other than disclosed above, as of December 31, 2020, the Company was in compliance with all financial covenants included in the agreements governing its indebtedness. Mortgages, Notes, and Loans Payable Balances 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: Carrying Value thousands Initial / Extended Maturity (a) Interest Rate 2020 2019 Operating Assets Three Hughes Landing March 2020 4.33 % (b) $ — $ 59,822 The Woodlands Towers at the Waterway June 2020 3.68 % (b),(c) — 336,570 1201 Lake Robbins June 2021 2.49 % (b) 273,070 — The Woodlands Warehouse June 2021 2.49 % (b),(c) 7,230 7,230 Downtown Summerlin September 2020 / September 2021 3.88 % (b) — 259,179 Two Merriweather October 2020 / October 2021 4.23 % (b) — 28,216 Outlet Collection at Riverwalk October 2021 3.50 % (b) 28,679 30,615 100 Fellowship Drive May 2022 3.23 % (b) — 47,916 20/25 Waterway Avenue May 2022 4.79 % 12,855 13,131 Millennium Waterway Apartments June 2022 3.75 % 51,946 53,032 HHC 242 Self-Storage December 2021 / December 2022 4.33 % (b) — 5,499 HHC 2978 Self-Storage December 2021 / December 2022 4.33 % (b) — 5,395 Lake Woodlands Crossing Retail January 2023 1.94 % (b) 12,329 12,163 Lakeside Row July 2022 / July 2023 2.39 % (b) 31,566 23,958 Senior Secured Credit Facility September 2023 4.61 % (c) 615,000 615,000 Two Lakes Edge October 2022 / October 2023 2.40 % (b) 66,198 38,214 The Woodlands Resort & Conference Center December 2021 / December 2023 3.00 % (b) 62,500 62,500 Lakefront North December 2022 / December 2023 3.73 % (b) — 32,731 9303 New Trails December 2023 4.88 % 10,763 11,196 4 Waterway Square December 2023 4.88 % 31,519 32,789 Creekside Park West March 2023 / March 2024 2.39 % (b) 14,719 8,505 The Lane at Waterway August 2023 / August 2024 1.89 % (b),(d) 22,167 1 6100 Merriweather September 2022 / September 2024 2.89 % (b) 62,040 36,418 Juniper Apartments September 2022 / September 2024 2.89 % (b) 65,808 34,610 Tanager Apartments October 2021 / October 2024 2.50 % (b) 39,744 29,165 9950 Woodloch Forest Drive March 2025 2.09 % (b) 71,106 — Two Summerlin October 2022 / October 2025 4.25 % — 33,183 Ae‘o Retail October 2025 2.90 % (b) 30,532 — Ke Kilohana Retail October 2025 2.90 % (b) 9,327 — 3831 Technology Forest Drive March 2026 4.50 % 20,686 21,137 Kewalo Basin Harbor September 2027 2.89 % (b) 11,562 11,110 Millennium Six Pines Apartments August 2028 3.39 % 42,500 42,500 3 Waterway Square August 2028 3.94 % 46,224 47,647 One Lakes Edge March 2029 4.50 % 69,440 69,440 Aristocrat September 2029 3.67 % 37,093 38,055 Creekside Park Apartments October 2029 3.52 % 37,730 37,730 One Hughes Landing December 2029 4.30 % 50,815 52,000 Two Hughes Landing December 2030 4.20 % 48,000 48,000 Other SID Bonds December 2030 6.00% - 6.05% (e) 2,785 3,441 8770 New Trails June 2021 / January 2032 4.89 % (f) 35,417 15,124 Constellation Apartments January 2033 4.07 % 24,200 24,200 Hughes Landing Retail December 2036 3.50 % 34,328 35,000 Columbia Regional Building February 2037 4.48 % 24,244 24,664 Las Vegas Ballpark December 2039 4.92 % 48,173 51,231 Operating Assets Total 2,052,295 2,338,317 Master Planned Communities The Woodlands Master Credit Facility October 2022 / October 2024 2.64 % (b),(g) 75,000 107,500 Bridgeland Credit Facility October 2022 / October 2024 2.64 % (b),(g) 75,000 107,500 Summerlin South SID Bonds June 2025 - October 2049 5.00% - 6.05% (h) 31,520 20,284 Master Planned Communities Total 181,520 235,284 Carrying Value thousands Initial / Extended Maturity (a) Interest Rate 2020 2019 Seaport District 250 Water Street November 2022 / November 2023 3.64 % (b) 100,000 100,000 Seaport District June 2024 6.10 % — 250,000 Seaport District Total 100,000 350,000 Strategic Developments ‘A‘ali‘i June 2022 / June 2023 4.10 % (b) 154,601 30,717 Kō‘ula March 2023 / March 2024 3.14 % (b) 65,282 — 110 North Wacker April 2022 / April 2024 4.73 % (b),(i) — 184,300 Creekside Park The Grove January 2024 / January 2025 1.89 % (b) 16,468 — Strategic Developments Total 236,351 215,017 Senior Notes due 2025 March 2025 5.38 % 1,000,000 1,000,000 Senior Notes due 2028 August 2028 5.38 % 750,000 — Unamortized bond issuance costs (4,355) (5,249) Unamortized deferred financing costs (28,442) (36,899) Total mortgages, notes and loans payable $ 4,287,369 $ 4,096,470 (a) Maturity dates presented represent initial maturity dates and the extended or final maturity dates as contractually stated. HHC has the option to exercise extension periods at the initial maturity date, subject to extension terms that are based on current property performance projections. Extension terms may include 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 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 0.14%, 0.24% and 3.25%, respectively, at December 31, 2020. Interest rates associated with loans which have been paid off reflect the prior year interest rate. (c) 100.0% of the outstanding principal of the $615.0 million Term Loan is swapped to a fixed rate equal to 4.61%. (d) Millennium Phase III Apartments was renamed to The Lane at Waterway. (e) Includes SID bonds related to Downtown Summerlin, Hockey Ground Lease, Two Summerlin, Tanager Apartments and Las Vegas Ballpark. (f) Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails in 2019, the Company entered into an interest rate swap which is designated as a cash flow hedge. The Loan bears interest at one-month LIBOR plus 2.45% but it is currently swapped to a fixed rate equal to 4.89%. (g) The Woodlands and Bridgeland Credit Facility is secured by land and certain other collateral in The Woodlands and Bridgeland MPCs with a combined maximum facility amount of $250 million. (h) Includes SID bonds with various maturity dates ranging from June 2025 to October 2049 and interest rates ranging from 5.00% to 6.05%. (i) As of September 30, 2020, the Company derecognized a $326.8 million balance on 110 North Wacker’s variable-rate debt that was subject to interest rate collars. Refer to Note 2 - Real Estate and Other Affiliates for additional information. The weighted-average interest rate on the Company’s mortgages, notes and loans payable, excluding interest rate hedges, was 4.34% as of December 31, 2020, and 4.75% as of December 31, 2019. HHC’s mortgages, notes and loans payable are secured by the properties listed in the table above and are non-recourse except for the following: thousands Recourse % Amount Recourse to HHC Senior Notes due 2025 100 % $ 1,000,000 Senior Notes due 2028 100 % 750,000 1201 Lake Robbins 100 % 273,070 ‘A‘ali‘i 25 % 38,650 250 Water Street 35 % 35,000 Juniper Apartments 25 % 16,452 Kō‘ula 25 % 16,320 6100 Merriweather 25 % 15,510 Outlet Collection at Riverwalk 50 % 14,339 Tanager 25 % 9,936 Lakeside Row 25 % 7,892 The Woodlands Warehouse 100 % 7,230 Total recourse to HHC 2,184,399 Recourse to The Woodlands Land Development Company (TWLDC) (a) The Woodlands Resort & Conference Center 100 % 62,500 Two Lake's Edge 25 % 16,550 9950 Woodloch Forest 20 % 14,221 The Lane at Waterway 35 % 7,759 Lake Woodlands Crossing Retail 50 % 6,164 Creekside Park The Grove 25 % 4,117 Creekside Park West 25 % 3,680 Total recourse to TWLDC 114,991 Total $ 2,299,390 (a) This debt is partially recourse to The Woodlands Land Development Company which is a wholly owned 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, 2020, land, buildings and equipment and developments with a net book value basis of $4.5 billion have been pledged as collateral for HHC’s mortgages, notes and loans payable. Scheduled Maturities The following table summarizes the contractual obligations relating to the Company’s mortgages, notes and loans payable as of December 31, 2020, based on extended maturity dates: thousands Mortgages, notes and loans payable principal payments 2021 $ 321,712 2022 77,689 2023 1,091,049 2024 430,490 2025 1,136,625 Thereafter 1,262,601 Total principal payments 4,320,166 Unamortized deferred financing and bond issuance costs (32,797) Total mortgages, notes and loans payable $ 4,287,369 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. 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 the Company’s liabilities that are measured at fair value on a recurring basis: December 31, 2020 December 31, 2019 Fair Value Measurements Using Fair Value Measurements Using thousands Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Interest rate derivative liabilities $ 51,920 $ — $ 51,920 $ — $ 40,135 $ — $ 40,135 $ — The fair values of interest rate derivatives 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. The estimated fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis are as follows: December 31, 2020 December 31, 2019 thousands Fair Value Hierarchy Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and Restricted cash Level 1 $ 1,242,997 $ 1,242,997 $ 620,135 $ 620,135 Accounts receivable, net (a) Level 3 7,437 7,437 12,279 12,279 Notes receivable, net (b) Level 3 622 622 36,379 36,379 Liabilities: Fixed-rate debt (c) Level 2 2,374,822 2,461,155 1,908,660 1,949,773 Variable-rate debt (c) Level 2 1,945,344 1,945,344 2,229,958 2,229,958 (a) Accounts receivable, net is shown net of an allowance of $24.0 million at December 31, 2020, and $15.6 million at December 31, 2019. Refer to Note 1 - Summary of Significant Accounting Policies for additional information on the allowance. (b) Notes receivable, net is shown net of an allowance of $0.2 million at December 31, 2020, and $0.2 million at December 31, 2019. Refer to Note 1 - Summary of Significant Accounting Policies for additional information on the allowance. (c) Excludes related unamortized financing costs. The carrying amounts of Cash and Restricted cash, Accounts receivable, net and Notes receivable, net approximate fair value because of the short‑term maturity of these instruments. The fair value of the Company’s Senior 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 was estimated based on a discounted future cash payment model, which includes risk premiums and risk-free rates derived from the current LIBOR or U.S. Treasury obligation interest rates. Refer to Note 7 - Mortgages, Notes and Loans Payable, Net for additional information. 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 were 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 below table includes a non-financial asset that was measured at fair value on a non-recurring basis resulting in the property being impaired during the year ended December 31, 2020: Fair Value Measurements Using thousands Total Fair Value Measurement Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Operating Assets: Outlet Collection at Riverwalk (a) $ 46,794 $ — $ — $ 46,794 (a) The fair value was measured as of the impairment date based on a discounted cash flow analysis using a capitalization rate of 10.0% and is shown net of transaction costs. Refer to Note 4 - Impairment for additional information. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 9. 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. The Company uses interest rate swaps, collars and caps to add stability to interest costs by reducing the Company’s exposure to interest rate movements. 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 cap is not currently designated as a hedge, 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. Derivatives accounted for as cash flow hedges are classified in the same category in the Consolidated Statements of Cash Flows as the items being hedged. Gains and losses from derivative financial instruments are reported in Cash provided by (used in) operating activities within the Consolidated Statements of Cash Flows. The Company 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. There were no events of default as of December 31, 2020 and 2019. 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, 2020, there were no termination events, and during the year ended December 31, 2019, there was one termination event, as discussed below. During the year ended December 31, 2020, the Company recorded $3.2 million reduction in Interest expense related to the amortization of terminated swaps. The Company has deferred the effective portion of the fair value changes of two interest rate swap agreements in Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets and will recognize the impact as a component of Interest expense over the next 7.0 and 0.7 years, which are what remain of the original forecasted periods. During the year ended December 31, 2020, the Company did not settle any derivatives. During the year ended December 31, 2019, the Company settled one interest rate cap agreement with a notional amount of $230.0 million, recorded interest income of $0.2 million and received payment of $0.2 million. 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 $25.1 million of net loss 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, thousands Balance Sheet Location Amount Rate (a) Date Date 2020 2019 Derivative instruments not designated as hedging instruments: Interest rate cap (b) Prepaid expenses and other assets, net 75,000 5.00% 8/31/2020 10/17/2022 $ — $ — Total fair value derivative assets — — Derivative instruments designated as hedging instruments: Interest rate collar (c) Accounts payable and accrued expenses 193,967 2.00% - 3.00% 5/1/2019 5/1/2020 — (182) Interest rate collar (d) Accounts payable and accrued expenses 354,217 2.25% - 3.25% 5/1/2020 5/1/2021 — (2,074) Interest rate collar (d) Accounts payable and accrued expenses 381,404 2.75% - 3.50% 5/1/2021 4/30/2022 — (4,578) Interest rate swap (e) Accounts payable and accrued expenses 615,000 2.96% 9/21/2018 9/18/2023 (46,613) (31,187) Interest rate swap (f) Accounts payable and accrued expenses 34,918 4.89% 11/1/2019 1/1/2032 (5,307) (2,114) Total fair value derivative liabilities (51,920) (40,135) Total fair value derivatives, net $ (51,920) $ (40,135) (a) These rates represent the strike rate on HHC’s interest swaps, caps and collars. (b) In the third quarter of 2020, the Company executed an agreement to extend the maturing position of this cap. Interest income included in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019, related to this contract was not meaningful. (c) On May 1, 2020, the $194.0 million interest rate collar matured as scheduled. (d) As of September 30, 2020, the Company deconsolidated 110 North Wacker including the associated liabilities related to its interest rate collars. Refer to Note 3 - Real Estate and Other Affiliates for additional information. (e) Concurrent with the funding of the new $615.0 million Term Loan in 2018, the Company entered into this interest rate swap which is designated as a cash flow hedge. (f) Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails in 2019, 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: Amount of Gain (Loss) Recognized in AOCI on Derivatives thousands December 31, Derivatives in Cash Flow Hedging Relationships 2020 2019 2018 Interest rate derivatives $ (32,134) $ (19,245) $ 2,090 Amount of Gain (Loss) Reclassified from AOCI into Operations thousands December 31, Location of Gain (Loss) Reclassified from AOCI into Operations 2020 2019 2018 Interest expense $ (9,064) $ 1,939 $ 2,153 Total Interest Expense Presented in the Results of Operations in which the Effects of Cash Flow Hedges are Recorded thousands December 31, Interest Expense Presented in Results of Operations 2020 2019 2018 Interest expense $ 132,257 $ 105,374 $ 82,028 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. 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 $54.6 million as of December 31, 2020, and $41.6 million as of December 31, 2019. If the Company had breached any of these provisions at December 31, 2020, it could have been required to settle its obligations under the agreements at their termination value of $54.6 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 management’s opinion, the liabilities, if any, that may ultimately result from normal course of business legal actions or The Woodlands legal proceeding discussed below, are not expected to have a material effect on the Company’s consolidated financial position, results of operations or liquidity. Litigation 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 plaintiffs are seeking restitution for damages to their property and diminution of their property values. The Company intends to vigorously defend the matter as it believes that these claims are 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. The Company entered into a settlement agreement with the Waiea homeowners association related to certain construction defects at the condominium tower. Pursuant to the settlement agreement, the Company will pay for the repair of the defects. The Company believes that the general contractor is ultimately responsible for the defects and expects to recover all the repair costs from the general contractor, other responsible parties and insurance proceeds. During the first quarter of 2020, the Company recorded a $97.9 million charge for the estimated repair costs related to this matter, which was included in Condominium rights and unit cost of sales in the accompanying Consolidated Statements of Operations bringing total estimated repair costs to $115.4 million. As of December 31, 2020 , the Company has a remaining liability of $111.3 million in Construction payables for the estimated repair costs related to this matter, which is included in Accounts payable and accrued expenses in the accompanying Consolidated Balance Sheet. Environmental Matters The Company purchased its 250 Water Street property in the Seaport District in June 2018. The site is currently used as a parking lot while the Company continues to move forward with redevelopment planning. The Company engaged a third-party specialist to perform a Phase I Environmental Site Assessment (ESA) of the property, and the ESA identified, among other findings, the existence of mercury levels above regulatory criteria. Under the current regulations, the site does not require remediation until the Company begins redevelopment activities. The normal operations of the parking lot do not require the property to be remediated, and the Company has not started any redevelopment activities as of December 31, 2020. As a result, the potential remediation has no financial impact for the year ended December 31, 2020. Letters of Credit and Surety Bonds As of December 31, 2020, the Company had outstanding letters of credit totaling $5.2 million and surety bonds totaling $272.4 million. As of December 31, 2019, the Company had outstanding letters of credit totaling $15.4 million and surety bonds totaling $200.1 million. These letters of credit and bonds were issued primarily in connection with insurance requirements, special real estate assessments and construction obligations. Operating Leases The Company leases land or buildings at certain properties from third parties, which are recorded in Operating lease right-of-use assets, net and Operating lease obligations on the Consolidated Balance Sheets. See Note 17 - Leases for further discussion. Contractual rental expense, including participation rent, was $7.2 million for the year ended December 31, 2020, $8.5 million for the year ended December 31, 2019, and $9.7 million for the year ended December 31, 2018. The amortization of above and below‑market ground leases and straight‑line rents included in the contractual rent amount was not significant. Guarantee Agreements 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, the Company executed a completion guarantee for the redevelopment of Pier 17 and the Tin Building. The Company satisfied its completion guarantee for Pier 17 in the second quarter of 2019. The completion guaranty for the Tin Building is for the core and shell construction, which is nearing completion. The Company’s wholly owned subsidiaries agreed to complete defined public improvements and to indemnify Howard County, Maryland, for certain matters as part of the Downtown Columbia Redevelopment District TIF bonds. The Company’s guarantee of the performance of its subsidiaries under the funding agreement for up to a maximum of $1.0 million expired on October 31, 2020. Furthermore, to the extent that increases in taxes do not cover debt service payments on the TIF bonds, the Company’s wholly owned subsidiary is obligated to pay special taxes. Management has concluded that as of December 31, 2020, any obligations to pay special taxes are not probable. As part of the Company’s development permits with the Hawai’i Community Development Authority for the condominium towers at Ward Village, the Company entered into a guarantee whereby it is required to reserve 20% of the residential units for local residents who meet certain maximum income and net worth requirements. This guarantee, which is triggered once the necessary permits are granted and construction commences, was satisfied for the Company’s three condominium towers, Waiea, Anaha and Ae‘o, with the opening of Ke Kilohana, which is a workforce tower fully earmarked to fulfill this obligation. For the two towers under construction, the reserved units for the ‘A‘ali‘i tower are included in the tower, and the units for Kō'ula will either be built off site or fulfilled by paying a cash-in-lieu fee. As a result of this guarantee, the Company expects that future reserved housing towers will be delivered on a break-even basis. The Company evaluates the likelihood of future performance under these guarantees and did not record an obligation as of December 31, 2020, and December 31, 2019. Minor League Baseball Restructuring On February 12, 2021, Major League Baseball announced that it was restructuring the organization and operation of Minor League Baseball. As part of this restructuring, the Company’s baseball team, the Las Vegas Aviators will be required to enter into a Player Development License Agreement with a Major League Baseball affiliate. This licensing agreement structure is currently under negotiation and the effect it may have on the operation and value of the Company’s baseball assets is unknown at this time. HHC is in the process of analyzing the effect this new structure may have on the value and profitability of the Company’s baseball assets. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans On May 14, 2020, the Company’s shareholders approved The Howard Hughes Corporation 2020 Equity Incentive Plan (the 2020 Equity Plan). Pursuant to the 2020 Equity Plan, 1,350,000 shares of the Company’s common stock were reserved for issuance. The 2020 Equity Plan provides for grants of options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards (collectively, the Awards). Employees, directors and consultants of the Company are eligible for Awards. The 2020 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors (the Committee). Prior to the adoption of the 2020 Equity Plan, equity awards were issued under The Howard Hughes Corporation Amended and Restated 2010 Equity Incentive Plan (the 2010 Equity Plan). The adoption of the 2020 Equity Plan did not impact the administration of Awards issued under the 2010 Equity Plan but following adoption of the 2020 Equity Plan, equity awards will no longer be granted under the 2010 Equity Plan. As of December 31, 2020, there were a maximum of 1,199,794 shares available for future grant under the Company’s 2020 Equity Plan. The following summarizes stock-based compensation expense, net of amounts capitalized to development projects, for the years ended December 31: millions 2020 2019 2018 Stock Options (a)(b) $ (1.9) $ 1.4 $ 2.2 Restricted Stock (c)(d) 6.5 16.7 7.5 Pre-tax stock-based compensation expense $ 4.6 $ 18.1 $ 9.7 Income tax benefit $ 0.2 $ 3.7 $ 1.7 (a) Amounts shown are net of $0.2 million capitalized to development projects in 2020, $0.4 million capitalized to development projects in 2019 and $2.4 million capitalized to development projects in 2018. (b) The credit position for the year ended December 31, 2020, was due to significant forfeitures which exceeded the expense. (c) Amounts shown are net of $0.9 million capitalized to development projects in 2020, $1.0 million capitalized to development projects in 2019 and $1.0 million capitalized to development projects in 2018. (d) The increase in compensation expense for the year ended December 31, 2019, compared to the year ended December 31, 2018, was generally in connection with the Company’s restructuring. Stock Options The following table summarizes stock option activity: Stock Options Weighted-average Exercise Price Weighted-average Remaining Contractual Term (years) Aggregate Intrinsic Value Stock options outstanding at December 31, 2019 721,496 $ 104.55 Granted 41,337 $ 74.65 Exercised (a) (106,237) 65.91 Forfeited (253,600) 121.63 Expired (30,260) 106.39 Stock options outstanding at December 31, 2020 372,736 $ 100.49 4.7 $ 1,908,239 Stock options vested and expected to vest at December 31, 2020 369,384 $ 100.55 4.7 $ 1,899,155 Stock options exercisable at December 31, 2020 257,899 $ 99.18 3.3 $ 1,719,245 (a) The total intrinsic value of stock options exercised was $2.4 million during 2020, $2.4 million during 2019, and $12.1 million during 2018, based on the difference between the market price at the exercise date and the exercise price. Cash received from stock option exercises was $4.6 million in 2020, $3.5 million in 2019, and $11.7 million in 2018, and the tax benefit from these exercises was $0.5 million in 2020, $0.5 million in 2019, and $2.6 million in 2018. The fair value of stock option awards is determined using the Black-Scholes option-pricing model with the following assumptions: – Expected life —Based on the average of the time to vesting and full term of an option – Risk-free interest rates —Based on the U.S. Treasury rate over the expected life of an option – Expected volatility —Based on the average of implied and historical volatilities as of each of the grant dates 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, 2020 2019 2018 Grant date fair value $ 32.10 $ 32.51 $ 48.27 Assumptions Expected life of options (in years) 7.5 7.5 8.4 Risk-free interest rate 0.7 % 2.2 % 2.7 % Expected volatility 40.4 % 22.6 % 24.7 % Expected annual dividend per share — — — Generally, options granted vest over requisite service periods, 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. The balance of unamortized stock option expense as of December 31, 2020, is $2.4 million, which is expected to be recognized over a weighted‑average period of 3.5 years. Restricted Stock Restricted stock awards issued under the 2020 Equity 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 generally vest over a range of three st of the year following the award year, whichever is earlier, in each case generally subject to continued service. The following table summarizes restricted stock activity: Restricted Stock Weighted-average Grant Date Fair Value Restricted stock outstanding at December 31, 2019 406,802 $ 76.27 Granted 181,079 71.48 Vested (77,276) 108.60 Forfeited (101,495) 71.06 Restricted stock outstanding at December 31, 2020 409,110 $ 69.21 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. The number of shares of restricted stock subject to performance-based vesting conditions are reflected at the target level of performance in the table above. The weighted-average grant-date fair value per share of restricted stock granted was $98.78 during 2019 and $83.09 during 2018. The fair value of restricted stock that vested was $5.6 million during 2020, $14.9 million during 2019, and $5.5 million during 2018, based on the market price at the vesting date. The balance of unamortized restricted stock expense as of December 31, 2020, was $17.9 million, which is expected to be recognized over a weighted‑average period of 3.1 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. 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. The following summarizes income tax expense (benefit) for the years ended December 31: thousands 2020 2019 2018 Current $ 826 $ 1,427 $ (703) Deferred 10,827 27,818 16,195 Total $ 11,653 $ 29,245 $ 15,492 Reconciliation of the Income tax expense (benefit) if computed at the U.S. federal statutory income tax rate to the Company’s reported Income tax expense (benefit) for the years ended December 31 is as follows: thousands except percentages 2020 2019 2018 Income (loss) before income taxes $ 8,480 $ 103,540 $ 73,218 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % Tax computed at the U.S. federal statutory rate $ 1,781 $ 21,743 $ 15,376 Increase (decrease) in valuation allowance, net 11,822 4,419 8,033 State income taxes, net of federal income tax expense (benefit) (2,608) 417 (3,713) Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences 2,079 179 (1,442) Tax expense (benefit) on equity compensation 192 (317) (1,490) Tax expense on compensation disallowance 1,553 2,804 1,168 Deconsolidation of 110 North Wacker (a) (4,826) — — Tax expense (benefit) on historic tax credit 1,660 — (2,440) Income tax expense (benefit) $ 11,653 $ 29,245 $ 15,492 Effective tax rate 137.4 % 28.2 % 21.2 % (a) The Company deconsolidated 110 North Wacker in the third quarter of 2020. Refer to Note 2 Real Estate and Other Affiliates for additional information. As of December 31, 2020, the amounts and expiration dates of operating loss, charitable contribution and tax credit carryforwards for tax purposes are as follows: thousands Amount Expiration Date Net operating loss carryforwards - Federal $ 119,167 2033-2037 Net operating loss carryforwards - Federal 461,245 n/a Net operating loss carryforwards - State (a) 348,027 2021-2040 Net operating loss carryforwards - State (a) 176,197 n/a Capital loss carryforwards - Federal (a) 22,866 2025 Charitable contribution carryforwards - Federal 9,759 2022-2025 Tax credit carryforwards - Historic Tax Credit 630 2038 (a) A valuation allowance has been recorded against the deferred tax benefit related to the capital loss carryforwards and a majority of the state net operating loss carryforwards. The following summarizes tax effects of temporary differences and carryforwards included in the net deferred tax liabilities at December 31: thousands 2020 2019 Deferred tax assets: Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities $ 51,580 $ 65,590 Operating loss and tax carryforwards 161,701 132,277 Total deferred tax assets 213,281 197,867 Valuation allowance (38,065) (29,723) Total net deferred tax assets $ 175,216 $ 168,144 Deferred tax liabilities: Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs $ (163,836) $ (163,024) Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities (100,564) (67,125) Deferred income (98,455) (118,743) Total deferred tax liabilities (362,855) (348,892) Total net deferred tax liabilities $ (187,639) $ (180,748) 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 adjusted for sales that have occurred since that time. The recognition of these deferred tax liabilities is dependent upon the timing and sales price of future land sales and the method of accounting used for income tax purposes. The deferred tax liability related to deferred income represents 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. 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, 2017 through 2020. In the Company’s opinion, it has made adequate tax provisions for years subject to examination. However, the final determination of tax examinations and any related litigation could be different from what was reported on the returns. 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. The Company recognizes and reports interest and penalties related to unrecognized tax benefits, if applicable, within the provision for income tax expense. The Company had no unrecognized tax benefits for the years ended December 31, 2020, 2019 or 2018, and therefore did not recognize any interest expense or penalties. |
WARRANTS
WARRANTS | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Warrants | 13. Warrants On October 7, 2016, the Company entered into a warrant agreement with David R. O’Reilly, (O’Reilly Warrant) prior to his appointment to his previous position of Chief Financial Officer. Upon exercise of his warrant, Mr. O’Reilly may acquire 50,125 shares of common stock at an exercise price of $112.08 per share. The O’Reilly 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, and will expire on October 2, 2022. On June 16, 2017, and October 4, 2017, the Company entered into warrant agreements with its Chief Executive Officer, David R. Weinreb, (Weinreb Warrant) and President, Grant Herlitz, (Herlitz Warrant) 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. The Weinreb Warrant would have become exercisable on June 15, 2022, at an exercise price of $124.64 per share, and the Herlitz Warrant would have become exercisable on October 3, 2022, at an exercise price of $117.01 per share, subject in each case to earlier exercise upon certain change in control, separation and termination provisions. The Weinreb Warrant expires June 15, 2023, and the Herlitz Warrant expires October 3, 2023. The purchase prices paid by the respective executives for the O’Reilly Warrant, the Weinreb Warrant and the Herlitz Warrant, which qualify as equity instruments, are included within Additional paid-in capital in the Consolidated Balance Sheets at December 31, 2020 and 2019. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 14. Accumulated Other Comprehensive Income The following tables summarize changes in AOCI by component, all of which are presented net of tax: thousands 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 (2,153) Adjustment related to adoption of ASU 2018-02 (1,148) Balance as of Adjustment related to adoption of ASU 2017-12 (739) Pension adjustment 759 Net current-period other comprehensive income (loss) (1,161) Balance as of December 31, 2018 (8,126) Other comprehensive income (loss) before reclassifications (19,318) (Gain) loss reclassified from accumulated other comprehensive loss to net income (1,939) Pension adjustment 11 Net current-period other comprehensive income (loss) (21,246) Balance as of December 31, 2019 (29,372) Other comprehensive income (loss) before reclassifications (32,134) (Gain) loss reclassified from accumulated other comprehensive loss to net income 9,064 Pension adjustment (84) Share of investee's other comprehensive income, net of tax of $285 1,002 Deconsolidation of 110 North Wacker 12,934 Net current-period other comprehensive income (loss) (9,218) Balance as of Balance as of December 31, 2020 $ (38,590) The following table summarizes the amounts reclassified out of AOCI: thousands Amounts reclassified from Accumulated Other Comprehensive Income For the Year Ended Affected line items in the Statements of Operations 2020 2019 (Gains) losses on cash flow hedges $ 11,356 $ (2,855) Interest expense Income taxes on (gains) losses on cash flow hedges (2,292) 916 Income tax expense (benefit) Total reclassifications of (income) loss for the period $ 9,064 $ (1,939) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. 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 non-vested stock issued under stock‑based compensation plans is computed using the treasury stock method. The dilutive effect of the warrants is computed using the if-converted method. Information related to the Company’s EPS calculations is summarized as follows: December 31, thousands except per share amounts 2020 2019 2018 Net income (loss) Net income (loss) $ (3,173) $ 74,295 $ 57,726 Net (income) loss attributable to noncontrolling interests (22,981) (339) (714) Net income (loss) attributable to common stockholders $ (26,154) $ 73,956 $ 57,012 Shares Weighted-average basic common shares outstanding - basic 52,522 43,136 43,036 Restricted stock and stock options — 168 201 Warrants — 4 — Weighted-average diluted common shares outstanding - diluted 52,522 43,308 43,237 Net income (loss) per common share Basic income (loss) per share $ (0.50) $ 1.71 $ 1.32 Diluted income (loss) per share $ (0.50) $ 1.71 $ 1.32 The diluted EPS computation excludes 394,008 shares of stock options as of December 31, 2020, 379,608 shares as of December 31, 2019, and 425,908 shares as of December 31, 2018, because their inclusion would have been anti-dilutive. The diluted EPS computation also excludes 271,371 shares of restricted stock as of December 31, 2020, 235,894 shares as of December 31, 2019, and 205,979 shares as of December 31, 2018, because performance conditions provided for in the restricted stock awards had not been satisfied. Common Stock Offering On March 27, 2020, the Company offered 2,000,000 shares of common stock to the public at $50.00 per share and granted the underwriters an option to purchase up to an additional 300,000 shares of common stock at the same price. The underwriters exercised most of their option and purchased an additional 270,900 shares. Concurrently, the Company entered into a share purchase agreement with a related party, Pershing Square Capital Management, L.P., acting as investment advisor to funds that it manages, to issue and sell 10,000,000 shares of common stock in a private placement at $50.00 per share. The total issuance of 12,270,900 shares closed on March 31, 2020, and the Company received $593.6 million in net proceeds. The Company used the net proceeds for general corporate purposes including strengthening the Company’s balance sheet and enhancing liquidity. Common Stock Repurchase During the fourth quarter of 2019, the Company repurchased 496,000 shares of its common stock, par value $0.01 per share, in 13 transactions with an unaffiliated entity. These transactions were funded with cash on hand for $53.9 million, or approximately $108.71 per share. 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 $57.3 million in the aggregate. The repurchase transaction was consummated on February 21, 2018, and was funded with cash on hand. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 16. Revenues The core principle of ASC 606, Revenues from Contracts with Customers, is that revenues from contracts with customers (excluding lease-related revenues) are recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Under ASC 606, 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 following presents the Company’s revenues disaggregated by revenue source for the years ended December 31: thousands 2020 2019 2018 Revenues from contracts with customers Recognized at a point in time Condominium rights and unit sales $ 1,143 $ 448,940 $ 357,720 Master Planned Communities land sales 233,044 330,146 261,905 Builder price participation 37,072 35,681 27,085 Total 271,259 814,767 646,710 Recognized at a point in time or over time Other land, rental and property revenues 105,048 206,966 160,519 Rental and lease-related revenues Rental revenue 323,182 278,806 257,308 Total revenues $ 699,489 $ 1,300,539 $ 1,064,537 Revenues by segment Operating Assets revenues $ 372,057 $ 400,131 $ 348,242 Master Planned Communities revenues 283,953 386,781 309,451 Seaport revenues 23,814 55,645 32,632 Strategic Developments revenues 19,407 457,948 374,212 Corporate revenues 258 34 — Total revenues $ 699,489 $ 1,300,539 $ 1,064,537 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. There were no contract assets for the periods presented. The contract liabilities primarily relate to escrowed condominium deposits, MPC land sales deposits and deferred MPC land sales related to unsatisfied land improvements. The beginning and ending balances of contract liabilities and significant activity during the periods presented are as follows: thousands Contract Liabilities Balance as of December 31, 2018 $ 296,496 Consideration earned during the period (490,137) Consideration received during the period 439,651 Balance as of December 31, 2019 246,010 Consideration earned during the period (55,696) Consideration received during the period 170,102 Balance as of December 31, 2020 $ 360,416 Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations represent a measure of the total dollar value of work to be performed on contracts executed and in progress. These performance obligations primarily relate to the completion of condominium construction and transfer of control to a buyer, as well as the completion of contracted MPC land sales and related land improvements. These obligations are associated with contracts that generally are noncancelable by the customer after 30 days; however, purchasers of 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, 2020, is $1.7 billion. The Company expects to recognize this amount as revenue over the following periods: thousands Less than 1 year 1-2 years 3 years and thereafter Total remaining unsatisfied performance obligations $ 589,860 $ 521,957 $ 628,837 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 17. Leases Leases (Topic 842) increases transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet. The Company determines whether an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, net and Operating lease obligations on the Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an estimate of the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The Operating lease right-of-use asset also includes any lease payments made, less any lease incentives and initial direct costs incurred. The Company elected the practical expedient to not separate lease components from non-lease components of its lease agreements for all classes of underlying assets including ground leases, office leases and other leases. Certain of the Company’s lease agreements include non-lease components such as fixed common area maintenance charges. The Company applies Leases (Topic 842) to the single combined lease component. The Company does not have any finance leases as of December 31, 2020. The Company’s lessee agreements consist of operating leases primarily for ground leases and other real estate. The Company’s leases have remaining lease terms of less than one year to 52 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from two In response to the COVID-19 pandemic the Company granted rent deferrals to certain tenants. Under the accounting elections provided by the FASB in response to the COVID-19 pandemic, the Company has elected to not assess whether COVID-19 related deferrals are lease modifications and will account for the deferrals as if contemplated in the original lease. Rent deferrals are treated as variable lease payments resulting in a decrease in straight-line rent revenue during the deferral period and additional revenue upon payment in subsequent periods. COVID-19 related rent deferrals were $4.8 million as of 12/31/2020, net of subsequent collections. thousands 2020 2019 Assets Operating lease right-of-use assets $ 66,490 $ 69,398 Riverwalk impairment (10,235) — Total leased assets $ 56,255 $ 69,398 Liabilities Operating lease liabilities $ 68,929 $ 70,413 Total leased liabilities $ 68,929 $ 70,413 The components of lease expense are as follows: Year ended December 31, thousands 2020 2019 Operating lease cost $ 8,720 $ 9,082 Variable lease costs 958 1,682 Net lease cost $ 9,678 $ 10,764 Future minimum lease payments as of December 31, 2020, are as follows: thousands Operating Leases 2021 $ 6,853 2022 6,507 2023 6,464 2024 6,432 2025 5,047 Thereafter 261,805 Total lease payments 293,108 Less: imputed interest (224,179) Present value of lease liabilities $ 68,929 Other information related to the Company’s lessee agreements is as follows: thousands Year ended December 31, Supplemental Consolidated Statements of Cash Flows Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows on operating leases $ 7,235 $ 6,980 Other Information 2020 2019 Weighted-average remaining lease term (years) Operating leases 37.1 37.0 Weighted-average discount rate Operating leases 7.8 % 7.8 % The Company receives rental income from the leasing of retail, office, multi-family and other space under operating leases, as well as certain variable tenant recoveries. Such operating leases are with a variety of tenants and have a remaining average term of approximately five years. Lease terms generally vary among tenants and may include early termination options, extension options and fixed rental rate increases or rental rate increases based on an index. The minimum rentals based on operating leases of the consolidated properties held as of December 31, 2020, are as follows: Year ended December 31, thousands 2020 2019 Total Minimum Rent Payments $ 213,072 $ 218,740 Total future minimum rents associated with operating leases are as follows: thousands Total Minimum Rent 2021 $ 221,374 2022 220,296 2023 199,858 2024 187,942 2025 158,817 Thereafter 778,057 Total $ 1,766,344 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 reported on the Consolidated Statements of Operations also include amortization related to above and below‑market tenant leases on acquired properties. A sales-type lease is defined as a lease that meets one or more of the following: transfers ownership at the end of the lease term, grants the lessee an option to purchase that is reasonably expected to be exercised, covers the major part of the asset’s economic life, the net present value of the lease payments equals or exceeds the fair value of the asset, or the asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease. During the year ended December 31, 2020, the Company sold 100 Fellowship Drive, one of its sales-type leases. The Net investment in lease receivable, interest income and future minimum rents for the remaining sales-type lease are not significant. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | 18. Segments The Company has four business segments which offer different products and services. HHC’s four 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. Management’s Discussion and Analysis of Financial Condition and Results of Operations , one common operating measure used to assess operating results for the Company’s business segments is earnings before taxes (EBT). The Company’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. All operations are within the United States. The Company’s reportable segments are as follows: – Operating Assets – consists of developed or acquired retail, office, hospitality and multi-family properties along with other real estate investments. These properties are currently generating revenues and may be redeveloped, repositioned or sold to improve segment performance or to recycle capital. – 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. – Seaport District – consists of approximately 453,000 square feet of restaurant, retail and entertainment properties situated in three primary locations in New York, New York: Pier 17, Historic Area/Uplands and Tin Building. While the latter is still under development and will comprise about 53,000 square feet when completed, the two operating locations consist of third-party tenants, tenants either directly or jointly owned and operated by the Company and businesses owned and operated by the Company under licensing agreements. – 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. Segment operating results are as follows: thousands Operating Assets Segment (a) MPC Segment Seaport District Segment Strategic Developments Segment Total Year ended December 31, 2020 Total revenues $ 372,057 $ 283,953 $ 23,814 $ 19,407 $ 699,231 Total operating expenses (185,480) (128,597) (46,112) (135,160) (495,349) Segment operating income (loss) 186,577 155,356 (22,298) (115,753) 203,882 Depreciation and amortization (162,324) (365) (41,602) (6,545) (210,836) Interest income (expense), net (91,411) 36,587 (12,512) 6,312 (61,024) Other income (loss), net 540 — (2,616) 2,165 89 Equity in earnings (losses) from real estate and other affiliates (7,366) 17,845 (9,292) 269,912 271,099 Gain (loss) on sale or disposal of real estate and other assets, net 38,232 — — 21,710 59,942 Selling profit from sales-type leases — — — — — Gain (loss) on extinguishment of debt (1,521) — (11,648) — (13,169) Provision for impairment (48,738) — — — (48,738) Segment EBT $ (86,011) $ 209,423 $ (99,968) $ 177,801 $ 201,245 Corporate income, expenses and other items (204,418) Net income (loss) (3,173) Net (income) loss attributable to noncontrolling interests (22,981) Net income (loss) attributable to common stockholders $ (26,154) thousands Operating Assets Segment (a) MPC Segment Seaport District Segment Strategic Developments Segment Total Year Ended December 31, 2019 Total revenues $ 400,131 $ 386,781 $ 55,645 $ 457,948 $ 1,300,505 Total operating expenses (187,322) (183,472) (77,872) (391,848) (840,514) Segment operating income (loss) 212,809 203,309 (22,227) 66,100 459,991 Depreciation and amortization (115,499) (424) (26,381) (5,473) (147,777) Interest income (expense), net (81,029) 32,019 (12,865) 11,321 (50,554) Other income (loss), net 1,142 601 (22) 831 2,552 Equity in earnings (losses) from real estate and other affiliates 3,672 28,336 (2,592) 1,213 30,629 Gain (loss) on sale or disposal of real estate and other assets, net — — (6) 27,119 27,113 Selling profit from sales-type leases 13,537 — — — 13,537 Gain (loss) on extinguishment of debt — — 4,851 — 4,851 Segment EBT $ 34,632 $ 263,841 $ (59,242) $ 101,111 $ 340,342 Corporate income, expenses and other items (266,047) Net income (loss) 74,295 Net (income) loss attributable to noncontrolling interests (339) Net income (loss) attributable to common stockholders $ 73,956 Year Ended December 31, 2018 Total revenues $ 348,242 $ 309,451 $ 32,632 $ 374,212 $ 1,064,537 Total operating expenses (164,445) (163,517) (49,716) (290,806) (668,484) Segment operating income (loss) 183,797 145,934 (17,084) 83,406 396,053 Depreciation and amortization (103,293) (243) (12,466) (3,307) (119,309) Interest income (expense), net (71,551) 26,919 6,291 12,476 (25,865) Other income (loss), net (7,107) 18 102 3,015 (3,972) Equity in earnings (losses) from real estate and other affiliates 1,994 36,284 (705) 2,364 39,937 Gain (loss) on sale or disposal of real estate and other assets, net (4) — — — (4) Segment EBT $ 3,836 $ 208,912 $ (23,862) $ 97,954 $ 286,840 Corporate income, expenses and other items (229,114) Net income (loss) 57,726 Net (income) loss attributable to noncontrolling interests (714) Net income (loss) attributable to common stockholders $ 57,012 (a) Total revenues includes hospitality revenues of $35.2 million for the year ended December 31, 2020, $87.9 million for the year ended December 31, 2019, and $82.0 million for the year ended December 31, 2018. Total operating expenses includes hospitality operating costs of $32.3 million for the year ended December 31, 2020, $60.2 million for the year ended December 31, 2019, and $59.2 million for the year ended December 31, 2018. The following represents assets by segment and the reconciliation of total segment assets to the total assets in the Consolidated Balance Sheets as of December 31: thousands 2020 2019 Operating Assets $ 3,936,119 $ 3,476,718 Master Planned Communities 2,285,896 2,166,472 Seaport District 924,245 930,067 Strategic Developments 1,132,231 1,540,161 Total segment assets 8,278,491 8,113,418 Corporate 861,841 300,348 Total assets $ 9,140,332 $ 8,413,766 |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2020 thousands Initial Cost (b) Costs Capitalized Subsequent to Acquisition (c) Gross Amounts at Which Carried at Close of Period (d) Name of Center Location Center Type Encumbrances (a) Land Buildings and Improvements Land (e) Buildings and Improvements (e)(f) Land Buildings and Improvements (f) Total Accumulated Depreciation (g) Date of Construction Date Acquired / Completed Bridgeland Bridgeland Cypress, TX MPC $ 75,000 $ 260,223 $ — $ 226,644 $ 4,464 $ 486,867 $ 4,464 $ 491,331 $ (508) 2004 Lakeland Village Center at Bridgeland (h) Cypress, TX Retail 14,135 2,404 11,135 — 3,399 2,404 14,534 16,938 (2,035) 2016 Lakeside Row Cypress, TX Multi-family 31,566 812 42,875 — (1) 812 42,874 43,686 (1,953) 2018 2019 Columbia Columbia Columbia, MD MPC — 457,552 — (440,927) — 16,625 — 16,625 — 2004 10 - 70 Columbia Corporate Center (h) Columbia, MD Office 99,184 24,685 94,824 — 28,185 24,685 123,009 147,694 (24,724) 2012/2014 Columbia Office Properties Columbia, MD Office — 1,175 14,913 — (769) 1,175 14,144 15,319 (6,095) 1969/1972 Columbia Regional Building Columbia, MD Retail 24,244 — 28,865 — 2,357 — 31,222 31,222 (6,085) 2014 Juniper Apartments Columbia, MD Multi-family 65,808 — — 3,923 108,771 3,923 108,771 112,694 (2,973) 2018 2020 Lakefront District (i) Columbia, MD Development — 400 80,053 (400) (53,682) — 26,371 26,371 — 2004 Merriweather District Columbia, MD Development — — — — 81,654 — 81,654 81,654 — 2015 Merriweather District Area 3 Standalone Restaurant Columbia, MD Retail — — — 337 16,268 337 16,268 16,605 (28) 2019 2020 One Mall North (h) Columbia, MD Office 12,425 7,822 10,818 — 1,170 7,822 11,988 19,810 (1,425) 2016 One Merriweather (h) Columbia, MD Office 42,008 1,433 58,936 — 15,417 1,433 74,353 75,786 (9,039) 2017 Two Merriweather Columbia, MD Office — 1,019 4,931 — 33,856 1,019 38,787 39,806 (3,943) 2017 6100 Merriweather Columbia, MD Office 62,040 2,550 112,669 — — 2,550 112,669 115,219 (3,893) 2018 2019 Seaport District 85 South Street New York, NY Multi-family — 15,913 8,137 — 2,662 15,913 10,799 26,712 (3,985) 2014 Seaport Predevelopment New York, NY Development — — 7,641 — 14,536 — 22,177 22,177 — 2013 Tin Building New York, NY Development — — 8,290 — 98,404 — 106,694 106,694 — 2015 Pier 17 New York, NY Retail — — 468,476 — 3,423 — 471,899 471,899 (44,371) 2017 2018 Seaport District Historic Area / Uplands New York, NY Retail — — 7,884 — 114,830 — 122,714 122,714 (17,830) 2013 2016 250 Water Street New York, NY Development 100,000 — 179,471 — 370 — 179,841 179,841 — 2018 Summerlin Aristocrat (j) Las Vegas, NV Office 37,093 5,004 34,588 — 159 5,004 34,747 39,751 (2,866) 2017 2018 Constellation Apartments Las Vegas, NV Multi-family 24,200 3,069 39,759 — — 3,069 39,759 42,828 (4,666) 2016 Downtown Summerlin (j)(k) Las Vegas, NV Retail/Office 2,121 30,855 364,100 — 26,050 30,855 390,150 421,005 (80,563) 2014 Hockey Ground Lease (j) Las Vegas, NV Other 113 — — 6,705 2,198 6,705 2,198 8,903 (183) 2017 Las Vegas Ballpark (j)(l) Las Vegas, NV Other 48,459 — 179 5,318 124,212 5,318 124,391 129,709 (11,484) 2019 Two Summerlin (j) Las Vegas, NV Office 87 3,037 47,104 — 1,923 3,037 49,027 52,064 (3,844) 2017 2018 Summerlin Las Vegas, NV MPC 31,520 990,179 — (101,227) 701 888,952 701 889,653 (354) 2004 Tanager Apartments (j) Las Vegas, NV Multi-family 39,922 9,633 55,858 — — 9,633 55,858 65,491 (2,813) 2017 2019 The Woodlands Creekside Park Apartments The Woodlands, TX Multi-family 37,730 729 40,116 — 31 729 40,147 40,876 (3,168) 2017 2018 Creekside Park The Grove (m) The Woodlands, TX Development 16,468 — — — 38,771 — 38,771 38,771 — 2019 thousands Initial Cost (b) Costs Capitalized Subsequent to Acquisition (c) Gross Amounts at Which Carried at Close of Period (d) Name of Center Location Center Type Encumbrances (a) Land Buildings and Improvements Land (e) Buildings and Improvements (e)(f) Land Buildings and Improvements (f) Total Accumulated Depreciation (g) Date of Construction Date Acquired / Completed Creekside Park West The Woodlands, TX Retail 14,719 1,228 17,922 — — 1,228 17,922 19,150 (677) 2018 2019 Creekside Village Green (h) The Woodlands, TX Retail 17,051 2,551 33,822 (1,228) (17,980) 1,323 15,842 17,165 (2,978) 2015 Embassy Suites at Hughes Landing (h) The Woodlands, TX Hospitality 27,970 — 6,752 1,818 36,503 1,818 43,255 45,073 (7,671) 2015 HHC 242 Self-Storage The Woodlands, TX Other — 878 6,802 — 1,106 878 7,908 8,786 (809) 2017 HHC 2978 Self-Storage The Woodlands, TX Other — 124 5,498 — 2,063 124 7,561 7,685 (740) 2017 One Hughes Landing The Woodlands, TX Office 50,815 1,678 34,761 — 394 1,678 35,155 36,833 (10,654) 2013 Two Hughes Landing The Woodlands, TX Office 48,000 1,269 34,950 — (3,899) 1,269 31,051 32,320 (7,924) 2014 Three Hughes Landing The Woodlands, TX Office — 2,626 46,372 — 32,097 2,626 78,469 81,095 (12,324) 2016 1725 Hughes Landing Boulevard (h) The Woodlands, TX Office 56,772 1,351 36,764 — 38,448 1,351 75,212 76,563 (18,671) 2015 1735 Hughes Landing Boulevard (h) The Woodlands, TX Office 54,568 3,709 97,651 — (372) 3,709 97,279 100,988 (22,033) 2015 Hughes Landing Daycare The Woodlands, TX Other — 138 — — — 138 — 138 — 2018 2019 Hughes Landing Retail The Woodlands, TX Retail 34,328 5,184 — — 33,103 5,184 33,103 38,287 (7,524) 2015 1701 Lake Robbins (h) The Woodlands, TX Retail 3,658 1,663 3,725 — 459 1,663 4,184 5,847 (711) 2014 Lake Woodlands Crossing Retail The Woodlands, TX Retail 12,329 5,122 11,440 — 65 5,122 11,505 16,627 (938) 2017 2018 2201 Lake Woodlands Drive The Woodlands, TX Office — 3,755 — — 1,210 3,755 1,210 4,965 (286) 1994 Lakefront North The Woodlands, TX Office — 10,260 39,357 — 11,437 10,260 50,794 61,054 (3,366) 2018 One Lakes Edge The Woodlands, TX Multi-family 69,440 1,057 81,768 — 418 1,057 82,186 83,243 (13,425) 2015 Two Lakes Edge The Woodlands, TX Multi-family 66,198 — — 1,870 95,653 1,870 95,653 97,523 (2,826) 2018 2020 Millennium Six Pines Apartments The Woodlands, TX Multi-family 42,500 4,000 54,624 7,225 514 11,225 55,138 66,363 (8,942) 2014 Millennium Waterway Apartments The Woodlands, TX Multi-family 51,946 15,917 56,002 — 2,941 15,917 58,943 74,860 (20,035) 2010 The Lane at Waterway (n) The Woodlands, TX Multi-family 22,167 — — 2,029 39,246 2,029 39,246 41,275 (134) 2019 2020 8770 New Trails The Woodlands, TX Office 35,417 — — 2,204 34,989 2,204 34,989 37,193 (1,483) 2019 2020 9303 New Trails The Woodlands, TX Office 10,763 1,929 11,915 — 1,322 1,929 13,237 15,166 (3,125) 2008 3831 Technology Forest Drive The Woodlands, TX Office 20,686 514 14,194 — 1,813 514 16,007 16,521 (4,824) 2014 20/25 Waterway Avenue The Woodlands, TX Retail 12,855 2,346 8,871 — (83) 2,346 8,788 11,134 (2,320) 2007/2009 Waterway Garage Retail The Woodlands, TX Retail — 1,341 4,255 — 997 1,341 5,252 6,593 (1,449) 2011 3 Waterway Square The Woodlands, TX Office 46,224 748 — — 40,386 748 40,386 41,134 (12,926) 2013 4 Waterway Square The Woodlands, TX Office 31,519 1,430 51,553 — 6,208 1,430 57,761 59,191 (17,736) 2010 The Westin at the Woodlands (h) The Woodlands, TX Hospitality 41,793 22,473 — (20,520) 94,634 1,953 94,634 96,587 (14,750) 2016 The Woodlands The Woodlands, TX MPC 75,000 269,411 9,814 (92,069) 7,625 177,342 17,439 194,781 (392) 2011 The Woodlands Ground Leases The Woodlands, TX Other — 1,770 — 3,257 — 5,027 — 5,027 — 2011 The Woodlands Parking Garages The Woodlands, TX Other — 5,857 — 1,529 12,022 7,386 12,022 19,408 (2,173) 2008/2009 2000 Woodlands Parkway The Woodlands, TX Retail — — — — 655 — 655 655 (118) 1997 The Woodlands Resort & Conference Center The Woodlands, TX Hospitality 62,500 13,258 37,983 — 78,367 13,258 116,350 129,608 (26,496) 2014 The Woodlands Towers at the Waterway The Woodlands, TX Office 344,176 11,044 437,561 — 11,860 11,044 449,421 460,465 (14,144) 2019 The Woodlands Warehouse The Woodlands, TX Other 7,230 4,480 4,389 — — 4,480 4,389 8,869 (179) 2019 1400 Woodloch Forest The Woodlands, TX Office — — — 1,570 15,531 1,570 15,531 17,101 (5,206) 1981 The Woodlands Hills The Woodlands Hills Conroe, TX MPC — 99,284 — 18,448 8 117,732 8 117,740 — 2014 Ward Village ‘A‘ali‘i Honolulu, HI Development 154,601 — — — 298,825 — 298,825 298,825 (3,123) 2018 thousands Initial Cost (b) Costs Capitalized Subsequent to Acquisition (c) Gross Amounts at Which Carried at Close of Period (d) Name of Center Location Center Type Encumbrances (a) Land Buildings and Improvements Land (e) Buildings and Improvements (e)(f) Land Buildings and Improvements (f) Total Accumulated Depreciation (g) Date of Construction Date Acquired / Completed Ae‘o Honolulu, HI Condominium — 9,795 85,046 (9,795) (83,884) — 1,162 1,162 (58) 2016 2018 Anaha Honolulu, HI Condominium — 5,546 47,450 (5,546) (46,353) — 1,097 1,097 (85) 2014 2017 Ke Kilohana Honolulu, HI Condominium — 152 12,842 (152) (12,186) — 656 656 (27) 2016 2019 Kewalo Basin Harbor Honolulu, HI Other 11,562 — 24,116 — — — 24,116 24,116 (2,462) 2017 2019 Kō'ula Honolulu, HI Development 65,282 — — — 130,728 — 130,728 130,728 (2,726) 2019 Waiea Honolulu, HI Condominium — — 20,812 — (16,849) — 3,963 3,963 (131) 2014 2017 Ward Predevelopment Honolulu, HI Development — — 24,069 — 73,443 — 97,512 97,512 (5,071) 2013 Ward Village Retail (h) Honolulu, HI Retail 285,295 164,007 89,321 (76,252) 293,486 87,755 382,807 470,562 (96,682) 2002 Other Century Park Houston, TX Development — 19,816 36,763 — — 19,816 36,763 56,579 — 2019 Landmark Mall Alexandria, VA Development — 28,396 67,235 (28,396) (10,218) — 57,017 57,017 (365) 2004 Monarch City Allen, TX Development — 25,575 — (25,575) 28,657 — 28,657 28,657 — 2006 Outlet Collection at Riverwalk New Orleans, LA Retail 28,679 — 94,513 — (35,328) — 59,185 59,185 (18,575) 2014 Total excluding Corporate, Deferred financing costs and Unamortized bond issuance costs 2,570,166 2,570,176 3,372,534 (519,210) 1,869,420 2,050,966 5,241,954 7,292,920 (618,122) Corporate Various 1,750,000 885 1,027 (885) 25,186 — 26,213 26,213 (15,942) Unamortized bond issuance costs N/A (4,355) — — — — — — — — Deferred financing costs N/A (28,442) — — — — — — — — Total $ 4,287,369 $ 2,571,061 $ 3,373,561 $ (520,095) $ 1,894,606 $ 2,050,966 $ 5,268,167 $ 7,319,133 $ (634,064) (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 $6.2 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. The Ward Village Retail line includes $30.5 million related to Ae’o Retail and $9.3 million related to Ke Kilohana retail that are not collateral for the Senior Secured Credit Facility. (i) Lakefront District includes American City Building acquired in 2016, Ridgley Building acquired in 2017 and Sterrett Place acquired in 2018, all of which have been demolished and now represent future development rights. (j) 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. (k) Downtown Summerlin includes the One Summerlin office property, which was placed in service in 2015. (l) Includes the Las Vegas Aviators. (m) Creekside Park Apartments Phase II was renamed to Creekside Park The Grove. (n) Millennium Phase III Apartments was renamed to The Lane at Waterway. Reconciliation of Real Estate thousands 2020 2019 2018 Balance as of January 1, $ 7,268,288 $ 6,163,287 $ 5,355,409 Change in land 228,402 239,558 199,069 Additions 716,614 1,513,888 1,148,826 Impairments (48,738) — — Dispositions and write-offs and land and condominium costs of sales (845,433) (648,445) (540,017) Balance as of December 31, $ 7,319,133 $ 7,268,288 $ 6,163,287 Reconciliation of Accumulated Depreciation thousands 2020 2019 2018 Balance as of January 1, $ 507,933 $ 380,892 $ 321,882 Depreciation Expense 198,556 143,698 113,518 Dispositions and write-offs (72,425) (16,657) (54,508) Balance as of December 31, $ 634,064 $ 507,933 $ 380,892 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
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, capitalization of development costs, provision for income taxes, future cash flows used in impairment analysis and fair value used in impairment calculations, 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, and the fair value of warrants, debt and options granted. In particular, MPC cost of sales estimates are highly judgmental as they are sensitive to cost escalation, sales price escalation and lot absorption, which are subject to judgment and affected by expectations about future market or economic conditions. Actual results could differ from these and other estimates. It is reasonably possible these estimates will change in the near term due to the rapid development and fluidity of the events and circumstances resulting from the COVID-19 pandemic. |
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 four business segments: (i) Operating Assets; (ii) MPC; (iii) Seaport District and (iv) 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 Balance Sheet Location 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. The Company did not recognize additional depreciation expense of significance for the years ended December 31, 2020, 2019 and 2018. 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 reassesses 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. For investments in joint ventures where the Company has virtually no influence on the joint venture’s operating and financial policies, the Company has elected the measurement alternative to carry the securities at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the issuer. Equity securities not accounted for under the equity method are required to be reported at fair value with unrealized gains and losses reported in the Consolidated Statements of Comprehensive Income (Loss) as Net unrealized gains (losses) on instruments measured at fair value through earnings, unless the securities do not have readily determinable fair values. 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 |
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 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 Seaport District include, but are not limited to, significant changes in projected completion dates, operating revenues or cash flows, development costs, ongoing low occupancy, and market factors. Impairment indicators for assets in the 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 affiliate 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 affiliate 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. 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. |
Cash and Cash Equivalents | 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 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. |
Operating Lease Collectibility | Operating Lease Collectibility On a quarterly basis, management reviews tenant rents, tenant recoveries and straight-line rent assets for collectibility. As required under ASC 842 - Leases , this analysis includes a review of past due accounts and considers factors such as the credit quality of tenants, current economic conditions and changes in customer payment trends. When full collection of a lease receivable or future lease payment is not probable, a reserve for the receivable balance is charged against rental revenue and future rental revenue is recognized on a cash basis. Due to the impacts of COVID-19 on the collectability of tenant receivables, the Company completed an analysis of its collections and determined full collection of outstanding tenant rents and recoveries was not probable for a number of retail tenants. In addition, the Company determined that a reserve for estimated losses under ASC 450 - Contingencies |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable includes tenant rents, tenant recoveries and other receivables. Accounts receivables are shown net of allowances for doubtful accounts of $24.0 million as of December 31, 2020, and $15.6 million as of December 31, 2019. 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 as required under ASC 326 - Financial Instruments - Credit Losses . Refer to discussion below for information related to the adoption of ASC 326 in 2020. 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, wastewater, 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. |
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, Condominium inventory, Special Improvement District (SID) receivables, Various Intangibles, and prepaid expenses related to the Company’s properties. Straight-line rent assets are shown net of allowances for doubtful accounts of $9.0 million as of December 31, 2020, and $1.0 million as of December 31, 2019. SID receivables are amounts due from SID bonds related to the Company’s Summerlin MPC. 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 $54.8 million as of December 31, 2020, and $43.0 million as of December 31, 2019. Tax increment financing (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 are $0.9 million as of December 31, 2020, and $3.9 million as of December 31, 2019. The Company’s intangibles include in-place lease assets and above-market lease assets where HHC is the lessor, trademark/tradename intangibles related to MPCs, and other indefinite lived intangibles relating to properties and businesses acquired in previous real estate transactions. The balance of unamortized below-market ground leases was reclassified to Operating lease right-of-use assets, net upon adoption of ASU No. 2016-02, Leases (Topic 842). 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 |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which the temporary differences are expected to reverse. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. The Company periodically assesses the realizability of its deferred tax assets. If the Company concludes that it is more likely than not that some of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. The Company considers many factors when assessing the likelihood of future realization of deferred tax assets, including expectations of future taxable income, carryforward periods available to the Company for tax reporting purposes, various income tax strategies and other relevant factors. In addition, interest and penalties related to uncertain tax positions, if necessary, are recognized in income tax expense. |
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 $39.7 million as of December 31, 2020 and $31.7 million as of December 31, 2019. |
Marketing and Advertising | Marketing and Advertising Each of the Company’s 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 |
Stock-Based Compensation | Stock-Based Compensation The Company applies the provisions of ASC 718 Stock Compensation which requires all share‑based payments to be recognized in the Consolidated Statements of Operations based on their fair values. The Company grants various types of stock-based awards including stock options, restricted stock awards and performance-based awards. The fair value of stock option awards is determined using the Black-Scholes option-pricing model. Restricted stock awards are valued using the market price of the Company’s common stock on the grant date. For performance-based awards, the fair value of the market-condition portion of the award is measured using a Monte Carlo simulation, and the performance-condition portion is measured at the market price of Company’s common stock on the grant date. The Company records compensation cost for stock-based compensation awards over the requisite service period. If the requisite service period is satisfied, compensation cost is not adjusted unless the award contains a performance condition. If an award contains a performance condition, expense is recognized only for those shares that ultimately vest using the per-share fair value measured at the grant date. The Company recognizes forfeitures as they occur. See Note 11 - Stock-Based Compensation Plans for additional information. |
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. 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. 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 December 31, 2020, 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 homebuilder and closing on a completed home can take up to three years – 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. For Condominium Rights and Unit Sales, Master Planned Community Land Sales and Builder Price Participation the Company elected the practical expedient to not adjust promised amount of consideration for the effects of a significant financing component when the period between transfer of the promised asset and payment is expected to be one year or less. Rental Revenues 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 reported on the Consolidated Statements of Operations 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. Other Land, Rental and Property 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 revenues related to contracts with customers is generally comprised of baseball related ticket sales, retail operations, food sales, 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. 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. 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. |
Impact of New Account Standard and Recently Issued Accounting Pronouncements | Impact of New Accounting Standard Related to Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (ASC 326) . The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and requires the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities are 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. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which amended the scope of ASU 2016-13 and clarified that receivables arising from operating leases are not within the scope of the standard and should continue to be accounted for in accordance with the leases standard (Topic 842). The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized costs. Results for reporting periods beginning after January 1, 2020, are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $18.0 thousand as of January 1, 2020, for the cumulative effect of adopting ASU 2016-13. The Company is exposed to credit losses through the sale of goods and services to the Company’s customers. Receivables held by the Company primarily relate to short-term trade receivables and financing receivables, which include MUD receivables, SID bonds, TIF receivables, net investments in lease receivables, and notes receivable. The Company assesses its exposure to credit loss based on historical collection experience and future expectations by portfolio segment. Historical collection experience is evaluated on a quarterly basis by the Company. The following table summarizes the amortized cost basis of financing receivables by receivable type as of December 31, 2020: thousands MUD Receivables (a) SID Receivables TIF Receivables Net Investments in Lease Receivable Notes Receivable Total Ending balance as of December 31, 2020 $ 314,394 $ 54,770 $ 893 $ 2,943 $ 1,178 $ 374,178 (a) Accrued interest of $15.7 million as of December 31, 2020, and $17.3 million as of December 31, 2019, are included within Municipal Utility District receivables on the Company’s Consolidated Balance Sheets. The following table presents the activity in the allowance for credit losses for financing receivables by receivable type for the year ended December 31, 2020: thousands MUD Receivables SID Receivables TIF Receivables Net Investments in Lease Receivable Notes Receivable Trade Accounts Receivable (a) Beginning balance as of January 1, 2020 $ — $ — $ — $ 17 $ 209 $ — Current-period provision for expected credit losses — — — — (52) 99 Write-offs — — — — (1) (59) Ending balance as of December 31, 2020 $ — $ — $ — $ 17 $ 156 $ 40 (a) Trade accounts receivable are presented within accounts receivable, net on the consolidated balance sheet. Accounts receivable, net also includes receivables related to operating leases. Collectability and related allowance for amounts due under operating leases is assessed under the guidance of ASC 842 and ASC 450. Reserves related to operating lease receivables are not included in the above table. Financing receivables are considered to be past due once they are 30 days contractually past due under the terms of the agreement. The Company currently does not have significant financing receivables that are past due or on nonaccrual status. There have been no significant write-offs or recoveries of amounts previously written-off during the current period for financing receivables. Recently Issued Accounting Standards The following is a summary of recently issued and other notable accounting pronouncements which relate to the Company’s business. ASU 2020-04, Reference Rate Reform The amendments in this Update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform when certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has applied certain optional expedients, that are retained through the end of the hedging relationship. The amendments in this Update are effective as of March 12, 2020, through December 31, 2022. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedge transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The amendments in this Update simplify the accounting for income taxes by removing certain exceptions from ASC 740. Additionally, the amendments in this Update also simplify the accounting for income taxes by requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax, requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination, and other targeted changes. The effective date of the amendments is for fiscal years, and interim periods within those years, beginning after December 15, 2020. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Balance Sheet Location 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 as of December 31: thousands 2020 2019 Land and improvements $ 407,926 $ 423,520 Development costs 744,748 1,022,477 Total Developments $ 1,152,674 $ 1,445,997 |
Restructuring and Related Costs | Details of the plan activities during the year ended December 31, 2020, are as follows: thousands Restructuring Costs Balance at December 31, 2019 $ 9,685 Charges (a) 2,650 Charges paid/settled (a) (12,035) Balance at December 31, 2020 $ 300 |
Amortized cost basis on financing receivables by receivable type | The following table summarizes the amortized cost basis of financing receivables by receivable type as of December 31, 2020: thousands MUD Receivables (a) SID Receivables TIF Receivables Net Investments in Lease Receivable Notes Receivable Total Ending balance as of December 31, 2020 $ 314,394 $ 54,770 $ 893 $ 2,943 $ 1,178 $ 374,178 |
Allowance for credit losses on financing receivables | The following table presents the activity in the allowance for credit losses for financing receivables by receivable type for the year ended December 31, 2020: thousands MUD Receivables SID Receivables TIF Receivables Net Investments in Lease Receivable Notes Receivable Trade Accounts Receivable (a) Beginning balance as of January 1, 2020 $ — $ — $ — $ 17 $ 209 $ — Current-period provision for expected credit losses — — — — (52) 99 Write-offs — — — — (1) (59) Ending balance as of December 31, 2020 $ — $ — $ — $ 17 $ 156 $ 40 (a) Trade accounts receivable are presented within accounts receivable, net on the consolidated balance sheet. Accounts receivable, net also includes receivables related to operating leases. Collectability and related allowance for amounts due under operating leases is assessed under the guidance of ASC 842 and ASC 450. Reserves related to operating lease receivables are not included in the above table. |
REAL ESTATE AND OTHER AFFILIA_2
REAL ESTATE AND OTHER AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of investments in real estate and other affiliates | Equity investments in real estate and other affiliates are reported as follows: Economic/Legal Ownership Carrying Value Share of Earnings/Dividends December 31, December 31, December 31, December 31, Year Ended December 31, thousands except percentages 2020 2019 2020 2019 2020 2019 2018 Equity Method Investments Operating Assets 110 North Wacker (a) see below see below $ 261,143 $ — $ (13,896) $ — $ — The Metropolitan Downtown Columbia (b) 50.0 % 50.0 % — — 765 694 467 Stewart Title of Montgomery County, TX 50.0 % 50.0 % 3,924 4,175 1,250 1,105 573 Woodlands Sarofim #1 20.0 % 20.0 % 3,120 2,985 125 125 94 m.flats/TEN.M 50.0 % 50.0 % 1,247 2,431 666 (1,875) (2,478) Master Planned Communities The Summit (c) see below see below 96,300 84,455 17,845 28,336 36,284 Seaport District Mr. C Seaport (d) — % 35.0 % — 7,650 (6,900) (1,980) (465) Bar Wayō (Momofuku) (c) see below see below 7,101 7,469 (2,392) (612) — Strategic Developments Circle T Ranch and Power Center (e) — % 50.0 % — 8,207 2,463 950 1,534 HHMK Development 50.0 % 50.0 % 10 10 — — — KR Holdings 50.0 % 50.0 % 347 422 (69) 263 830 Mr. C Seaport (d) — % 35.0 % — — — — (240) 110 North Wacker (a) see below see below — — 267,518 — — 373,192 117,804 267,375 27,006 36,599 Other equity investments (f) 3,953 3,953 3,724 3,623 3,355 Investments in real estate and other affiliates $ 377,145 $ 121,757 $ 271,099 $ 30,629 $ 39,954 (a) During the third quarter of 2020, 110 North Wacker was completed and placed in service. This triggered a reconsideration event that resulted in the deconsolidation of 110 North Wacker and the recognition of the retained equity method investment at fair market value. The $267.5 million gain on deconsolidation was recorded in the Strategic Developments segment. The equity method investment was transferred from the Strategic Development segment to the Operating Asset segment. Refer to the discussion below for additional details. (b) The Metropolitan Downtown Columbia was in a deficit position of $5.0 million at December 31, 2020, and $4.7 million at December 31, 2019, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at December 31, 2020 and 2019. (c) Refer to the discussion below for details on the ownership structure. (d) Mr. C Seaport was transferred from Strategic Developments to Operating Assets during the three months ended September 30, 2018. During the three months ended September 30, 2020, the Company completed the sale of its 35% equity investment. (e) The Company completed the sale of its 50.0% equity investment in Circle T Ranch and Power Center in December 2020. See Note 3 - Acquisitions and Dispositions for additional information. (f) Other equity investments represent equity investments not accounted for under the equity method. The Company elected the measurement alternative as these investments do not have readily determinable fair values. See Note 1 - Summary of Significant Accounting Policies for additional information. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year 2020, or cumulatively. |
Changes in redeemable noncontrolling interest | The following table presents changes in Redeemable noncontrolling interest: thousands Redeemable Noncontrolling Interest Balance as of December 31, 2019 $ — Reclassification of redeemable noncontrolling interest to temporary equity 6,091 Net income (loss) attributable to noncontrolling interest 22,881 Share of investee's other comprehensive income 142 Balance as of December 31, 2020 $ 29,114 |
Summarized financial information | The following tables include relevant summarized financial statement information for all equity method investments as of December 31: thousands The Summit (a)(b) 110 North Wacker (c) Other Investments (d) Balance Sheet 2020 Total Assets $ 306,541 $ 634,274 $ 247,742 Total Liabilities 207,152 415,452 166,418 Total Equity 99,389 218,822 81,324 2019 Total Assets $ 221,277 $ — $ 324,926 Total Liabilities 136,314 — 208,991 Total Equity 84,963 — 115,935 Income Statement 2020 Revenues $ 147,680 $ 5,333 $ 36,450 Gross Margin 27,064 n/a n/a Operating Income n/a (3,148) 17,100 Net income (loss) 20,426 (8,236) 11,220 2019 Revenues $ 120,337 $ — $ 42,778 Gross Margin 32,205 n/a n/a Operating Income n/a — 16,085 Net income (loss) 26,298 — 5,162 2018 Revenues $ 102,559 $ — $ 36,613 Gross Margin 42,338 n/a n/a Operating Income n/a — 14,495 Net income (loss) 36,697 — 6,250 (a) The Summit adopted ASU 2014-09, Revenues from Contracts with Customers (Topic 606) effective in the fourth quarter of 2019 using the modified retrospective transition method. Therefore, for 2019, revenues allocated to each of The Summit’s performance obligations is recognized over time based on an input measure of progress. Prior period amounts have not been adjusted and are recognized on a percentage of completion basis. The Summit’s adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements. (b) The decrease in gross margin for The Summit from 2018 to 2020 is primarily due to the mix of product sold in each year. Home sales, which has a lower margin than lot sales, comprised a higher percentage of revenues in both 2020 and 2019, when compared to each prior year period. Additionally, gross margin decreased from 2019 to 2020 due to an increase in projected amenity costs. (c) The income statement amounts for 110 North Wacker only include activity for the three months ended December 31, 2020, to correspond with the period it was accounted for under the equity method. The loss for that period is the result of the asset still being in the lease-up period. |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS AND DISPOSITIONS | |
Schedule of asset acquisitions | The following table summarizes the accounting of the purchase price using the income approach: Asset Acquisition Date Fair Value thousands The Woodlands Towers at The Waterway The Woodlands Warehouse Waterway Land Century Park Total Building $ 377,308 $ 4,198 $ — $ 24,585 $ 406,091 Tenant improvements 58,869 — — — 58,869 In-place leases 49,511 1,410 — — 50,921 Land 11,044 4,480 11,511 19,816 46,851 Leasing commission 18,599 720 — — 19,319 Site Improvements 1,384 190 — 667 2,241 Legal and marketing costs 16 3 — — 19 Total (a) $ 516,731 $ 11,001 $ 11,511 $ 45,068 $ 584,311 |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of asset impairment charges | The following table summarizes the pre-tax impacts of the items mentioned above to the Consolidated Statements of Operations: December 31, 2020 thousands Statements of Operations Line Item Operating assets: Outlet Collection at Riverwalk Provision for impairment $ 48,738 Equity Investments: Mr. C Seaport Equity in earnings (losses) from real estate and other affiliates $ 6,000 Other Assets: Condominium Inventory Condominium rights and unit sales $ 7,644 |
OTHER ASSETS AND LIABILITIES (T
OTHER ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 as of December 31: thousands 2020 2019 $ Change Straight-line rent $ 59,289 $ 56,223 $ 3,066 Condominium inventory 55,883 56,421 (538) Special Improvement District receivable (a) 54,770 42,996 11,774 In-place leases (b) 49,161 54,471 (5,310) Security, escrow and other deposits (c) 48,576 17,464 31,112 Intangibles 32,595 33,275 (680) Prepaid expenses (d) 17,455 13,263 4,192 Other 11,781 9,252 2,529 Tenant incentives and other receivables 9,612 7,556 2,056 Food and beverage and lifestyle inventory 1,060 4,310 (3,250) TIF receivable 893 3,931 (3,038) Above-market tenant leases 315 556 (241) Federal income tax receivable — 655 (655) Prepaid expenses and other assets, net $ 341,390 $ 300,373 $ 41,017 (a) 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. The increase in Special Improvement District receivable is primarily attributable to a third quarter 2020 SID Bond issuance in Summerlin. (b) The decrease in In-place leases is primarily attributable to routine amortization. (c) The increase in Security, escrow and other deposits is primarily attributable to rate-lock and security deposits for The Woodlands Towers at the Waterway. |
Summary of the significant components of accounts payable and accrued expenses | The following table summarizes the significant components of Accounts payable and accrued expenses as of December 31: thousands 2020 2019 $ Change Condominium deposit liabilities (a) $ 309,884 $ 194,794 $ 115,090 Construction payables (b) 253,626 261,523 (7,897) Deferred income 66,656 63,483 3,173 Interest rate swap liabilities (c) 51,920 40,135 11,785 Accrued real estate taxes (d) 38,863 27,559 11,304 Accrued interest (e) 37,007 23,838 13,169 Accounts payable and accrued expenses 28,589 37,480 (8,891) Accrued payroll and other employee liabilities (f) 27,419 44,082 (16,663) Tenant and other deposits 25,801 24,080 1,721 Other 12,493 16,173 (3,680) Accounts payable and accrued expenses $ 852,258 $ 733,147 $ 119,111 (a) The increase in Condominium deposit liabilities is primarily due to the increase in contracted condominium unit sales at Victoria Place, Kō'ula and ‘A‘ali‘i. (b) The decrease in Construction payables is primarily attributable to a decrease of $39.5 million related to the deconsolidation of 110 North Wacker in the third quarter of 2020 (see Note 2 - Rea l Estate and Other A f filiates for details) as well as a reduction in construction spend of $63.3 million primarily due to placing a number of assets into service in 2020 and several projects approaching completion. These decreases were partially offset by an increase of $97.9 million related to a charge for repairs and remediation on certain alleged construction defects at the Waiea condominium tower in the first quarter of 2020 (see Note 10 - Commitments and Contingencies for details (c) The increase in Interest rate swap liabilities is due to a decrease of the one-month London Interbank Offered Rate (LIBOR) forward curve for the period presented, partially offset by a decrease of $15.2 million related to the deconsolidation of 110 North Wacker. (d) The increase in Accrued real estate taxes is primarily related to the acquisition of The Woodlands Towers at the Waterway at the end of 2019 and new assets placed in service in 2020. (e) The increase in Accrued interest was primarily related to new loan agreements entered into in 2020. |
INTANGIBLES (Tables)
INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets and liabilities | The following table summarizes the Company’s intangible assets and liabilities: As of December 31, 2020 As of December 31, 2019 Gross Asset (Liability) Accumulated (Amortization)/ Accretion Net Carrying Amount Gross Asset (Liability) Accumulated (Amortization)/ Accretion Net Carrying Amount thousands Intangible Assets: Indefinite lived intangibles $ 25,028 $ — $ 25,028 $ 25,028 $ — $ 25,028 Goodwill 1,307 — 1,307 1,307 — 1,307 Other intangibles 9,251 (2,991) 6,260 10,278 (3,338) 6,940 Tenant leases: In-place value 63,584 (14,423) 49,161 66,606 (12,135) 54,471 Above-market 1,985 (1,670) 315 2,247 (1,691) 556 Below-market (4,839) 3,198 (1,641) (7,008) 4,912 (2,096) Total indefinite lived intangibles $ 26,335 $ 26,335 Total amortizing intangibles $ 54,095 $ 59,871 |
Schedule of future net amortization and accretion expense | Future net amortization and accretion expense is estimated as shown below: thousands 2021 2022 2023 2024 Thereafter Net amortization and accretion expense $ 5,287 $ 4,901 $ 4,481 $ 4,485 $ 34,941 |
MORTGAGES, NOTES AND LOANS PA_2
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of mortgages, notes and loans payable | The Company’s borrowing activity is summarized as follows: thousands Initial / Extended Maturity (a) Interest Rate Carrying Value Balance at December 31, 2019 $ 4,096,470 Issuances: Senior Notes due 2028 August 2028 5.38% (c) 750,000 Special Improvement District bonds October 2049 6.00% 22,750 Borrowings: Revolver Loan September 2023 1.79% (b) 67,500 9950 Woodloch Forest Drive March 2025 2.09% (b),(d) 63,500 A’eo Retail October 2025 2.90% (b) 30,640 Ke Kilohana Retail October 2025 2.90% (b) 9,360 Draws on existing mortgages, notes and loans payable 556,166 Repayments: Revolver Loan September 2023 1.79% (b),(c) (67,500) The Woodlands Towers at the Waterway June 2020/June 2021 3.68% (b),(d) (63,500) Three Hughes Landing September 2020 4.33% (b),(c) (60,766) Two Merriweather October 2020/October 2021 4.23% (b),(c) (30,557) 100 Fellowship Drive May 2022 3.23% (b) (49,978) HHC 242 Self-Storage December 2021/December 2022 4.33% (b),(c) (5,499) HHC 2978 Self-Storage December 2021/December 2022 4.33% (b),(c) (5,395) Downtown Summerlin June 2023 3.88% (b),(c),(e) (255,297) Lakefront North December 2022/December 2023 3.73% (b),(c) (40,062) Seaport District June 2024 6.10% (c) (250,000) Bridgeland Credit Facility October 2022/October 2024 4.23% (b),(c) (50,000) The Woodlands Master Credit Facility October 2022/October 2024 4.23% (b),(c) (50,000) Two Summerlin October 2022/October 2025 4.25% (b),(c) (32,803) Repayments on existing mortgages, notes and loans payable (20,055) Other: Special Improvement District bond assumptions December 2020/October 2049 5.00% - 6.00% (10,122) Deconsolidation of 110 North Wacker April 2022/April 2024 4.73% (b),(f) (326,835) Deferred financing costs, net 9,352 Balance at December 31, 2020 $ 4,287,369 (a) Maturity dates presented represent initial maturity dates and the extended or final maturity dates as contractually stated. HHC has the option to exercise extension periods at the initial maturity date, subject to extension terms that are based on current property performance projections. Extension terms may include 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 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 0.14%, 0.24% and 3.25%, respectively, at December 31, 2020. Interest rates associated with loans which have been paid off reflect the interest rate at December 31, 2019. (c) On August 18, 2020, the Company issued $750 million in senior notes due August 2028 (the Senior Notes due 2028), which will pay interest semi-annually at a rate of 5.375% per annum payable on August 1st and February 1st of each year, beginning on February 1, 2021. The Senior Notes due 2028 will be unsecured senior obligations of the Company and will be guaranteed by certain subsidiaries of the Company. The Company used the net proceeds from this issuance, together with cash on hand, for the repayment of existing indebtedness of approximately $807.9 million and recorded a loss on extinguishment of debt of approximately $13.2 million. (d) On March 26, 2020, the Company closed on a partial refinance of the bridge loan for The Woodlands Towers at the Waterway and The Woodlands Warehouse for $137.0 million. In conjunction with the partial refinance, the original loan was paid down by $63.5 million and 9950 Woodloch Forest Drive tower was split into a new loan. (e) On June 22, 2020, the Company modified the existing Downtown Summerlin loan, extending the financing by three years to June 22, 2023 at a rate of LIBOR plus 2.15% in exchange for a pay-down of $33.8 million to a total commitment of $221.5 million. (f) As of September 30, 2020, the Company derecognized a $326.8 million balance on 110 North Wacker’s variable-rate debt that was subject to interest rate collars. Refer to Note 2 - Real Estate and Other Affiliates for additional information. December 31, thousands 2020 2019 Fixed-rate debt: Unsecured 5.375% Senior Notes due 2025 $ 1,000,000 $ 1,000,000 Unsecured 5.375% Senior Notes due 2028 750,000 — Secured mortgages, notes and loans payable 590,517 884,935 Special Improvement District bonds 34,305 23,725 Variable-rate debt: Mortgages, notes and loans payable (a) 1,945,344 2,229,958 Unamortized bond issuance costs (4,355) (5,249) Unamortized deferred financing costs (b) (28,442) (36,899) Total mortgages, notes and loans payable, net $ 4,287,369 $ 4,096,470 (a) As of December 31, 2020, $649.9 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt. As of December 31, 2019, $630.1 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt and an additional $184.3 million of variable-rate debt was subject to interest rate collars. As of both December 31, 2020, and December 31, 2019, $75.0 million of variable-rate debt was capped at a maximum interest rate. See Note 9 - Derivative Instruments and Hedging Activities for additional information. (b) 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). HHC’s mortgages, notes and loans payable are secured by the properties listed in the table above and are non-recourse except for the following: thousands Recourse % Amount Recourse to HHC Senior Notes due 2025 100 % $ 1,000,000 Senior Notes due 2028 100 % 750,000 1201 Lake Robbins 100 % 273,070 ‘A‘ali‘i 25 % 38,650 250 Water Street 35 % 35,000 Juniper Apartments 25 % 16,452 Kō‘ula 25 % 16,320 6100 Merriweather 25 % 15,510 Outlet Collection at Riverwalk 50 % 14,339 Tanager 25 % 9,936 Lakeside Row 25 % 7,892 The Woodlands Warehouse 100 % 7,230 Total recourse to HHC 2,184,399 Recourse to The Woodlands Land Development Company (TWLDC) (a) The Woodlands Resort & Conference Center 100 % 62,500 Two Lake's Edge 25 % 16,550 9950 Woodloch Forest 20 % 14,221 The Lane at Waterway 35 % 7,759 Lake Woodlands Crossing Retail 50 % 6,164 Creekside Park The Grove 25 % 4,117 Creekside Park West 25 % 3,680 Total recourse to TWLDC 114,991 Total $ 2,299,390 (a) This debt is partially recourse to The Woodlands Land Development Company which is a wholly owned subsidiary of HHC. |
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: Carrying Value thousands Initial / Extended Maturity (a) Interest Rate 2020 2019 Operating Assets Three Hughes Landing March 2020 4.33 % (b) $ — $ 59,822 The Woodlands Towers at the Waterway June 2020 3.68 % (b),(c) — 336,570 1201 Lake Robbins June 2021 2.49 % (b) 273,070 — The Woodlands Warehouse June 2021 2.49 % (b),(c) 7,230 7,230 Downtown Summerlin September 2020 / September 2021 3.88 % (b) — 259,179 Two Merriweather October 2020 / October 2021 4.23 % (b) — 28,216 Outlet Collection at Riverwalk October 2021 3.50 % (b) 28,679 30,615 100 Fellowship Drive May 2022 3.23 % (b) — 47,916 20/25 Waterway Avenue May 2022 4.79 % 12,855 13,131 Millennium Waterway Apartments June 2022 3.75 % 51,946 53,032 HHC 242 Self-Storage December 2021 / December 2022 4.33 % (b) — 5,499 HHC 2978 Self-Storage December 2021 / December 2022 4.33 % (b) — 5,395 Lake Woodlands Crossing Retail January 2023 1.94 % (b) 12,329 12,163 Lakeside Row July 2022 / July 2023 2.39 % (b) 31,566 23,958 Senior Secured Credit Facility September 2023 4.61 % (c) 615,000 615,000 Two Lakes Edge October 2022 / October 2023 2.40 % (b) 66,198 38,214 The Woodlands Resort & Conference Center December 2021 / December 2023 3.00 % (b) 62,500 62,500 Lakefront North December 2022 / December 2023 3.73 % (b) — 32,731 9303 New Trails December 2023 4.88 % 10,763 11,196 4 Waterway Square December 2023 4.88 % 31,519 32,789 Creekside Park West March 2023 / March 2024 2.39 % (b) 14,719 8,505 The Lane at Waterway August 2023 / August 2024 1.89 % (b),(d) 22,167 1 6100 Merriweather September 2022 / September 2024 2.89 % (b) 62,040 36,418 Juniper Apartments September 2022 / September 2024 2.89 % (b) 65,808 34,610 Tanager Apartments October 2021 / October 2024 2.50 % (b) 39,744 29,165 9950 Woodloch Forest Drive March 2025 2.09 % (b) 71,106 — Two Summerlin October 2022 / October 2025 4.25 % — 33,183 Ae‘o Retail October 2025 2.90 % (b) 30,532 — Ke Kilohana Retail October 2025 2.90 % (b) 9,327 — 3831 Technology Forest Drive March 2026 4.50 % 20,686 21,137 Kewalo Basin Harbor September 2027 2.89 % (b) 11,562 11,110 Millennium Six Pines Apartments August 2028 3.39 % 42,500 42,500 3 Waterway Square August 2028 3.94 % 46,224 47,647 One Lakes Edge March 2029 4.50 % 69,440 69,440 Aristocrat September 2029 3.67 % 37,093 38,055 Creekside Park Apartments October 2029 3.52 % 37,730 37,730 One Hughes Landing December 2029 4.30 % 50,815 52,000 Two Hughes Landing December 2030 4.20 % 48,000 48,000 Other SID Bonds December 2030 6.00% - 6.05% (e) 2,785 3,441 8770 New Trails June 2021 / January 2032 4.89 % (f) 35,417 15,124 Constellation Apartments January 2033 4.07 % 24,200 24,200 Hughes Landing Retail December 2036 3.50 % 34,328 35,000 Columbia Regional Building February 2037 4.48 % 24,244 24,664 Las Vegas Ballpark December 2039 4.92 % 48,173 51,231 Operating Assets Total 2,052,295 2,338,317 Master Planned Communities The Woodlands Master Credit Facility October 2022 / October 2024 2.64 % (b),(g) 75,000 107,500 Bridgeland Credit Facility October 2022 / October 2024 2.64 % (b),(g) 75,000 107,500 Summerlin South SID Bonds June 2025 - October 2049 5.00% - 6.05% (h) 31,520 20,284 Master Planned Communities Total 181,520 235,284 Carrying Value thousands Initial / Extended Maturity (a) Interest Rate 2020 2019 Seaport District 250 Water Street November 2022 / November 2023 3.64 % (b) 100,000 100,000 Seaport District June 2024 6.10 % — 250,000 Seaport District Total 100,000 350,000 Strategic Developments ‘A‘ali‘i June 2022 / June 2023 4.10 % (b) 154,601 30,717 Kō‘ula March 2023 / March 2024 3.14 % (b) 65,282 — 110 North Wacker April 2022 / April 2024 4.73 % (b),(i) — 184,300 Creekside Park The Grove January 2024 / January 2025 1.89 % (b) 16,468 — Strategic Developments Total 236,351 215,017 Senior Notes due 2025 March 2025 5.38 % 1,000,000 1,000,000 Senior Notes due 2028 August 2028 5.38 % 750,000 — Unamortized bond issuance costs (4,355) (5,249) Unamortized deferred financing costs (28,442) (36,899) Total mortgages, notes and loans payable $ 4,287,369 $ 4,096,470 (a) Maturity dates presented represent initial maturity dates and the extended or final maturity dates as contractually stated. HHC has the option to exercise extension periods at the initial maturity date, subject to extension terms that are based on current property performance projections. Extension terms may include 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 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 0.14%, 0.24% and 3.25%, respectively, at December 31, 2020. Interest rates associated with loans which have been paid off reflect the prior year interest rate. (c) 100.0% of the outstanding principal of the $615.0 million Term Loan is swapped to a fixed rate equal to 4.61%. (d) Millennium Phase III Apartments was renamed to The Lane at Waterway. (e) Includes SID bonds related to Downtown Summerlin, Hockey Ground Lease, Two Summerlin, Tanager Apartments and Las Vegas Ballpark. (f) Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails in 2019, the Company entered into an interest rate swap which is designated as a cash flow hedge. The Loan bears interest at one-month LIBOR plus 2.45% but it is currently swapped to a fixed rate equal to 4.89%. (g) The Woodlands and Bridgeland Credit Facility is secured by land and certain other collateral in The Woodlands and Bridgeland MPCs with a combined maximum facility amount of $250 million. (h) Includes SID bonds with various maturity dates ranging from June 2025 to October 2049 and interest rates ranging from 5.00% to 6.05%. (i) As of September 30, 2020, the Company derecognized a $326.8 million balance on 110 North Wacker’s variable-rate debt that was subject to interest rate collars. Refer to Note 2 - Real Estate and Other Affiliates for additional information. |
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, 2020, based on extended maturity dates: thousands Mortgages, notes and loans payable principal payments 2021 $ 321,712 2022 77,689 2023 1,091,049 2024 430,490 2025 1,136,625 Thereafter 1,262,601 Total principal payments 4,320,166 Unamortized deferred financing and bond issuance costs (32,797) Total mortgages, notes and loans payable $ 4,287,369 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on a recurring basis | The following table presents the fair value measurement hierarchy levels required under ASC 820 for the Company’s liabilities that are measured at fair value on a recurring basis: December 31, 2020 December 31, 2019 Fair Value Measurements Using Fair Value Measurements Using thousands Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Interest rate derivative liabilities $ 51,920 $ — $ 51,920 $ — $ 40,135 $ — $ 40,135 $ — |
Summary of financial instruments not measured at fair value on recurring basis | The estimated fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis are as follows: December 31, 2020 December 31, 2019 thousands Fair Value Hierarchy Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and Restricted cash Level 1 $ 1,242,997 $ 1,242,997 $ 620,135 $ 620,135 Accounts receivable, net (a) Level 3 7,437 7,437 12,279 12,279 Notes receivable, net (b) Level 3 622 622 36,379 36,379 Liabilities: Fixed-rate debt (c) Level 2 2,374,822 2,461,155 1,908,660 1,949,773 Variable-rate debt (c) Level 2 1,945,344 1,945,344 2,229,958 2,229,958 (a) Accounts receivable, net is shown net of an allowance of $24.0 million at December 31, 2020, and $15.6 million at December 31, 2019. Refer to Note 1 - Summary of Significant Accounting Policies for additional information on the allowance. (b) Notes receivable, net is shown net of an allowance of $0.2 million at December 31, 2020, and $0.2 million at December 31, 2019. Refer to Note 1 - Summary of Significant Accounting Policies for additional information on the allowance. (c) Excludes related unamortized financing costs. |
Summary of non-financial assets measured at fair value on a non-recurring basis | The below table includes a non-financial asset that was measured at fair value on a non-recurring basis resulting in the property being impaired during the year ended December 31, 2020: Fair Value Measurements Using thousands Total Fair Value Measurement Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Operating Assets: Outlet Collection at Riverwalk (a) $ 46,794 $ — $ — $ 46,794 (a) The fair value was measured as of the impairment date based on a discounted cash flow analysis using a capitalization rate of 10.0% and is shown net of transaction costs. Refer to Note 4 - Impairment for additional information. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair value of the 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, thousands Balance Sheet Location Amount Rate (a) Date Date 2020 2019 Derivative instruments not designated as hedging instruments: Interest rate cap (b) Prepaid expenses and other assets, net 75,000 5.00% 8/31/2020 10/17/2022 $ — $ — Total fair value derivative assets — — Derivative instruments designated as hedging instruments: Interest rate collar (c) Accounts payable and accrued expenses 193,967 2.00% - 3.00% 5/1/2019 5/1/2020 — (182) Interest rate collar (d) Accounts payable and accrued expenses 354,217 2.25% - 3.25% 5/1/2020 5/1/2021 — (2,074) Interest rate collar (d) Accounts payable and accrued expenses 381,404 2.75% - 3.50% 5/1/2021 4/30/2022 — (4,578) Interest rate swap (e) Accounts payable and accrued expenses 615,000 2.96% 9/21/2018 9/18/2023 (46,613) (31,187) Interest rate swap (f) Accounts payable and accrued expenses 34,918 4.89% 11/1/2019 1/1/2032 (5,307) (2,114) Total fair value derivative liabilities (51,920) (40,135) Total fair value derivatives, net $ (51,920) $ (40,135) (a) These rates represent the strike rate on HHC’s interest swaps, caps and collars. (b) In the third quarter of 2020, the Company executed an agreement to extend the maturing position of this cap. Interest income included in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019, related to this contract was not meaningful. (c) On May 1, 2020, the $194.0 million interest rate collar matured as scheduled. (d) As of September 30, 2020, the Company deconsolidated 110 North Wacker including the associated liabilities related to its interest rate collars. Refer to Note 3 - Real Estate and Other Affiliates for additional information. (e) Concurrent with the funding of the new $615.0 million Term Loan in 2018, the Company entered into this interest rate swap which is designated as a cash flow hedge. (f) Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails |
Summary of effect of derivative financial instruments on the 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: Amount of Gain (Loss) Recognized in AOCI on Derivatives thousands December 31, Derivatives in Cash Flow Hedging Relationships 2020 2019 2018 Interest rate derivatives $ (32,134) $ (19,245) $ 2,090 Amount of Gain (Loss) Reclassified from AOCI into Operations thousands December 31, Location of Gain (Loss) Reclassified from AOCI into Operations 2020 2019 2018 Interest expense $ (9,064) $ 1,939 $ 2,153 Total Interest Expense Presented in the Results of Operations in which the Effects of Cash Flow Hedges are Recorded thousands December 31, Interest Expense Presented in Results of Operations 2020 2019 2018 Interest expense $ 132,257 $ 105,374 $ 82,028 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock-based compensation expense, net of amounts capitalized | The following summarizes stock-based compensation expense, net of amounts capitalized to development projects, for the years ended December 31: millions 2020 2019 2018 Stock Options (a)(b) $ (1.9) $ 1.4 $ 2.2 Restricted Stock (c)(d) 6.5 16.7 7.5 Pre-tax stock-based compensation expense $ 4.6 $ 18.1 $ 9.7 Income tax benefit $ 0.2 $ 3.7 $ 1.7 (a) Amounts shown are net of $0.2 million capitalized to development projects in 2020, $0.4 million capitalized to development projects in 2019 and $2.4 million capitalized to development projects in 2018. (b) The credit position for the year ended December 31, 2020, was due to significant forfeitures which exceeded the expense. (c) Amounts shown are net of $0.9 million capitalized to development projects in 2020, $1.0 million capitalized to development projects in 2019 and $1.0 million capitalized to development projects in 2018. |
Summary of stock option plan activity | The following table summarizes stock option activity: Stock Options Weighted-average Exercise Price Weighted-average Remaining Contractual Term (years) Aggregate Intrinsic Value Stock options outstanding at December 31, 2019 721,496 $ 104.55 Granted 41,337 $ 74.65 Exercised (a) (106,237) 65.91 Forfeited (253,600) 121.63 Expired (30,260) 106.39 Stock options outstanding at December 31, 2020 372,736 $ 100.49 4.7 $ 1,908,239 Stock options vested and expected to vest at December 31, 2020 369,384 $ 100.55 4.7 $ 1,899,155 Stock options exercisable at December 31, 2020 257,899 $ 99.18 3.3 $ 1,719,245 (a) The total intrinsic value of stock options exercised was $2.4 million during 2020, $2.4 million during 2019, and $12.1 million during 2018, based on the difference between the market price at the exercise date and the exercise price. |
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, 2020 2019 2018 Grant date fair value $ 32.10 $ 32.51 $ 48.27 Assumptions Expected life of options (in years) 7.5 7.5 8.4 Risk-free interest rate 0.7 % 2.2 % 2.7 % Expected volatility 40.4 % 22.6 % 24.7 % Expected annual dividend per share — — — |
Summary of restricted stock activity | The following table summarizes restricted stock activity: Restricted Stock Weighted-average Grant Date Fair Value Restricted stock outstanding at December 31, 2019 406,802 $ 76.27 Granted 181,079 71.48 Vested (77,276) 108.60 Forfeited (101,495) 71.06 Restricted stock outstanding at December 31, 2020 409,110 $ 69.21 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | The following summarizes income tax expense (benefit) for the years ended December 31: thousands 2020 2019 2018 Current $ 826 $ 1,427 $ (703) Deferred 10,827 27,818 16,195 Total $ 11,653 $ 29,245 $ 15,492 |
Schedule of reconciliation of income tax expense computed by applying the Federal corporate tax rate to the provision for income taxes | Reconciliation of the Income tax expense (benefit) if computed at the U.S. federal statutory income tax rate to the Company’s reported Income tax expense (benefit) for the years ended December 31 is as follows: thousands except percentages 2020 2019 2018 Income (loss) before income taxes $ 8,480 $ 103,540 $ 73,218 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % Tax computed at the U.S. federal statutory rate $ 1,781 $ 21,743 $ 15,376 Increase (decrease) in valuation allowance, net 11,822 4,419 8,033 State income taxes, net of federal income tax expense (benefit) (2,608) 417 (3,713) Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences 2,079 179 (1,442) Tax expense (benefit) on equity compensation 192 (317) (1,490) Tax expense on compensation disallowance 1,553 2,804 1,168 Deconsolidation of 110 North Wacker (a) (4,826) — — Tax expense (benefit) on historic tax credit 1,660 — (2,440) Income tax expense (benefit) $ 11,653 $ 29,245 $ 15,492 Effective tax rate 137.4 % 28.2 % 21.2 % (a) The Company deconsolidated 110 North Wacker in the third quarter of 2020. Refer to Note 2 Real Estate and Other Affiliates |
Schedule of amounts and expiration dates of operating loss, charitable contribution and tax credit carryforwards | As of December 31, 2020, the amounts and expiration dates of operating loss, charitable contribution and tax credit carryforwards for tax purposes are as follows: thousands Amount Expiration Date Net operating loss carryforwards - Federal $ 119,167 2033-2037 Net operating loss carryforwards - Federal 461,245 n/a Net operating loss carryforwards - State (a) 348,027 2021-2040 Net operating loss carryforwards - State (a) 176,197 n/a Capital loss carryforwards - Federal (a) 22,866 2025 Charitable contribution carryforwards - Federal 9,759 2022-2025 Tax credit carryforwards - Historic Tax Credit 630 2038 (a) A valuation allowance has been recorded against the deferred tax benefit related to the capital loss carryforwards and a majority of the state net operating loss carryforwards. |
Summary of tax effects of temporary differences and carryforwards included in net deferred tax liabilities | The following summarizes tax effects of temporary differences and carryforwards included in the net deferred tax liabilities at December 31: thousands 2020 2019 Deferred tax assets: Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities $ 51,580 $ 65,590 Operating loss and tax carryforwards 161,701 132,277 Total deferred tax assets 213,281 197,867 Valuation allowance (38,065) (29,723) Total net deferred tax assets $ 175,216 $ 168,144 Deferred tax liabilities: Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs $ (163,836) $ (163,024) Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities (100,564) (67,125) Deferred income (98,455) (118,743) Total deferred tax liabilities (362,855) (348,892) Total net deferred tax liabilities $ (187,639) $ (180,748) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: thousands 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 (2,153) Adjustment related to adoption of ASU 2018-02 (1,148) Balance as of Adjustment related to adoption of ASU 2017-12 (739) Pension adjustment 759 Net current-period other comprehensive income (loss) (1,161) Balance as of December 31, 2018 (8,126) Other comprehensive income (loss) before reclassifications (19,318) (Gain) loss reclassified from accumulated other comprehensive loss to net income (1,939) Pension adjustment 11 Net current-period other comprehensive income (loss) (21,246) Balance as of December 31, 2019 (29,372) Other comprehensive income (loss) before reclassifications (32,134) (Gain) loss reclassified from accumulated other comprehensive loss to net income 9,064 Pension adjustment (84) Share of investee's other comprehensive income, net of tax of $285 1,002 Deconsolidation of 110 North Wacker 12,934 Net current-period other comprehensive income (loss) (9,218) Balance as of Balance as of December 31, 2020 $ (38,590) |
Summary of the amounts reclassified out of AOCI | The following table summarizes the amounts reclassified out of AOCI: thousands Amounts reclassified from Accumulated Other Comprehensive Income For the Year Ended Affected line items in the Statements of Operations 2020 2019 (Gains) losses on cash flow hedges $ 11,356 $ (2,855) Interest expense Income taxes on (gains) losses on cash flow hedges (2,292) 916 Income tax expense (benefit) Total reclassifications of (income) loss for the period $ 9,064 $ (1,939) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of EPS calculations | Information related to the Company’s EPS calculations is summarized as follows: December 31, thousands except per share amounts 2020 2019 2018 Net income (loss) Net income (loss) $ (3,173) $ 74,295 $ 57,726 Net (income) loss attributable to noncontrolling interests (22,981) (339) (714) Net income (loss) attributable to common stockholders $ (26,154) $ 73,956 $ 57,012 Shares Weighted-average basic common shares outstanding - basic 52,522 43,136 43,036 Restricted stock and stock options — 168 201 Warrants — 4 — Weighted-average diluted common shares outstanding - diluted 52,522 43,308 43,237 Net income (loss) per common share Basic income (loss) per share $ (0.50) $ 1.71 $ 1.32 Diluted income (loss) per share $ (0.50) $ 1.71 $ 1.32 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue disaggregated by revenue source | The following presents the Company’s revenues disaggregated by revenue source for the years ended December 31: thousands 2020 2019 2018 Revenues from contracts with customers Recognized at a point in time Condominium rights and unit sales $ 1,143 $ 448,940 $ 357,720 Master Planned Communities land sales 233,044 330,146 261,905 Builder price participation 37,072 35,681 27,085 Total 271,259 814,767 646,710 Recognized at a point in time or over time Other land, rental and property revenues 105,048 206,966 160,519 Rental and lease-related revenues Rental revenue 323,182 278,806 257,308 Total revenues $ 699,489 $ 1,300,539 $ 1,064,537 Revenues by segment Operating Assets revenues $ 372,057 $ 400,131 $ 348,242 Master Planned Communities revenues 283,953 386,781 309,451 Seaport revenues 23,814 55,645 32,632 Strategic Developments revenues 19,407 457,948 374,212 Corporate revenues 258 34 — Total revenues $ 699,489 $ 1,300,539 $ 1,064,537 |
Contract with customer, assets and liabilities | The beginning and ending balances of contract liabilities and significant activity during the periods presented are as follows: thousands Contract Liabilities Balance as of December 31, 2018 $ 296,496 Consideration earned during the period (490,137) Consideration received during the period 439,651 Balance as of December 31, 2019 246,010 Consideration earned during the period (55,696) Consideration received during the period 170,102 Balance as of December 31, 2020 $ 360,416 |
Remaining performance obligation, expected timing of satisfaction | The Company expects to recognize this amount as revenue over the following periods: thousands Less than 1 year 1-2 years 3 years and thereafter Total remaining unsatisfied performance obligations $ 589,860 $ 521,957 $ 628,837 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of leased assets and liabilities | thousands 2020 2019 Assets Operating lease right-of-use assets $ 66,490 $ 69,398 Riverwalk impairment (10,235) — Total leased assets $ 56,255 $ 69,398 Liabilities Operating lease liabilities $ 68,929 $ 70,413 Total leased liabilities $ 68,929 $ 70,413 |
Components of lease expense and other information | The components of lease expense are as follows: Year ended December 31, thousands 2020 2019 Operating lease cost $ 8,720 $ 9,082 Variable lease costs 958 1,682 Net lease cost $ 9,678 $ 10,764 Other information related to the Company’s lessee agreements is as follows: thousands Year ended December 31, Supplemental Consolidated Statements of Cash Flows Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows on operating leases $ 7,235 $ 6,980 Other Information 2020 2019 Weighted-average remaining lease term (years) Operating leases 37.1 37.0 Weighted-average discount rate Operating leases 7.8 % 7.8 % |
Schedule of future minimum lease payments | Future minimum lease payments as of December 31, 2020, are as follows: thousands Operating Leases 2021 $ 6,853 2022 6,507 2023 6,464 2024 6,432 2025 5,047 Thereafter 261,805 Total lease payments 293,108 Less: imputed interest (224,179) Present value of lease liabilities $ 68,929 |
Schedule of minimum rentals based on operating leases of the consolidated properties | The minimum rentals based on operating leases of the consolidated properties held as of December 31, 2020, are as follows: Year ended December 31, thousands 2020 2019 Total Minimum Rent Payments $ 213,072 $ 218,740 Total future minimum rents associated with operating leases are as follows: thousands Total Minimum Rent 2021 $ 221,374 2022 220,296 2023 199,858 2024 187,942 2025 158,817 Thereafter 778,057 Total $ 1,766,344 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of segment operating results | Segment operating results are as follows: thousands Operating Assets Segment (a) MPC Segment Seaport District Segment Strategic Developments Segment Total Year ended December 31, 2020 Total revenues $ 372,057 $ 283,953 $ 23,814 $ 19,407 $ 699,231 Total operating expenses (185,480) (128,597) (46,112) (135,160) (495,349) Segment operating income (loss) 186,577 155,356 (22,298) (115,753) 203,882 Depreciation and amortization (162,324) (365) (41,602) (6,545) (210,836) Interest income (expense), net (91,411) 36,587 (12,512) 6,312 (61,024) Other income (loss), net 540 — (2,616) 2,165 89 Equity in earnings (losses) from real estate and other affiliates (7,366) 17,845 (9,292) 269,912 271,099 Gain (loss) on sale or disposal of real estate and other assets, net 38,232 — — 21,710 59,942 Selling profit from sales-type leases — — — — — Gain (loss) on extinguishment of debt (1,521) — (11,648) — (13,169) Provision for impairment (48,738) — — — (48,738) Segment EBT $ (86,011) $ 209,423 $ (99,968) $ 177,801 $ 201,245 Corporate income, expenses and other items (204,418) Net income (loss) (3,173) Net (income) loss attributable to noncontrolling interests (22,981) Net income (loss) attributable to common stockholders $ (26,154) thousands Operating Assets Segment (a) MPC Segment Seaport District Segment Strategic Developments Segment Total Year Ended December 31, 2019 Total revenues $ 400,131 $ 386,781 $ 55,645 $ 457,948 $ 1,300,505 Total operating expenses (187,322) (183,472) (77,872) (391,848) (840,514) Segment operating income (loss) 212,809 203,309 (22,227) 66,100 459,991 Depreciation and amortization (115,499) (424) (26,381) (5,473) (147,777) Interest income (expense), net (81,029) 32,019 (12,865) 11,321 (50,554) Other income (loss), net 1,142 601 (22) 831 2,552 Equity in earnings (losses) from real estate and other affiliates 3,672 28,336 (2,592) 1,213 30,629 Gain (loss) on sale or disposal of real estate and other assets, net — — (6) 27,119 27,113 Selling profit from sales-type leases 13,537 — — — 13,537 Gain (loss) on extinguishment of debt — — 4,851 — 4,851 Segment EBT $ 34,632 $ 263,841 $ (59,242) $ 101,111 $ 340,342 Corporate income, expenses and other items (266,047) Net income (loss) 74,295 Net (income) loss attributable to noncontrolling interests (339) Net income (loss) attributable to common stockholders $ 73,956 Year Ended December 31, 2018 Total revenues $ 348,242 $ 309,451 $ 32,632 $ 374,212 $ 1,064,537 Total operating expenses (164,445) (163,517) (49,716) (290,806) (668,484) Segment operating income (loss) 183,797 145,934 (17,084) 83,406 396,053 Depreciation and amortization (103,293) (243) (12,466) (3,307) (119,309) Interest income (expense), net (71,551) 26,919 6,291 12,476 (25,865) Other income (loss), net (7,107) 18 102 3,015 (3,972) Equity in earnings (losses) from real estate and other affiliates 1,994 36,284 (705) 2,364 39,937 Gain (loss) on sale or disposal of real estate and other assets, net (4) — — — (4) Segment EBT $ 3,836 $ 208,912 $ (23,862) $ 97,954 $ 286,840 Corporate income, expenses and other items (229,114) Net income (loss) 57,726 Net (income) loss attributable to noncontrolling interests (714) Net income (loss) attributable to common stockholders $ 57,012 (a) Total revenues includes hospitality revenues of $35.2 million for the year ended December 31, 2020, $87.9 million for the year ended December 31, 2019, and $82.0 million for the year ended December 31, 2018. Total operating expenses includes hospitality operating costs of $32.3 million for the year ended December 31, 2020, $60.2 million for the year ended December 31, 2019, and $59.2 million for the year ended December 31, 2018. |
Summary of assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets | The following represents assets by segment and the reconciliation of total segment assets to the total assets in the Consolidated Balance Sheets as of December 31: thousands 2020 2019 Operating Assets $ 3,936,119 $ 3,476,718 Master Planned Communities 2,285,896 2,166,472 Seaport District 924,245 930,067 Strategic Developments 1,132,231 1,540,161 Total segment assets 8,278,491 8,113,418 Corporate 861,841 300,348 Total assets $ 9,140,332 $ 8,413,766 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of business segments | segment | 4 | ||||||
Impairment charge for real estate | $ 48,738,000 | $ 0 | $ 0 | ||||
ASC 842 provision for operating leases | 6,300,000 | ||||||
Accounts receivable, allowance | $ 15,600,000 | 24,000,000 | 15,600,000 | ||||
Straight-line rent asset, allowance | 1,000,000 | 9,000,000 | 1,000,000 | ||||
Special Improvement District receivable | 42,996,000 | 54,770,000 | 42,996,000 | ||||
TIF receivable | 3,931,000 | 893,000 | 3,931,000 | ||||
Deferred leasing costs, accumulated amortization | 31,700,000 | 39,700,000 | 31,700,000 | ||||
Cumulative effect decrease from adopting ASU 2016-13 | (3,332,988,000) | $ (3,715,023,000) | (3,332,988,000) | (3,238,126,000) | $ (3,188,551,000) | ||
Financing receivable threshold period past due | 30 days | ||||||
Project in the west side of Manhattan | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Development value of project overseen by president in prior role | $ 20,000,000,000 | ||||||
MetLife Stadium | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Development value of project overseen by president in prior role | 1,300,000,000 | ||||||
COVID-19 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total provision for operating leases | 27,800,000 | ||||||
ASC 842 provision for operating leases | 21,800,000 | ||||||
ASC 450 provision for operating leases | 6,000,000 | ||||||
MUD Receivables | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accrued interest | 17,300,000 | 15,700,000 | 17,300,000 | ||||
Current-period provision for expected credit losses | 0 | ||||||
Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect decrease from adopting ASU 2016-13 | 46,385,000 | 72,556,000 | 46,385,000 | $ 120,341,000 | $ 109,508,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect decrease from adopting ASU 2016-13 | [1] | 18,000 | 18,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect decrease from adopting ASU 2016-13 | [1] | 18,000 | 18,000 | ||||
Chief Executive Officer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Salary and benefit related expense | $ 1,400,000 | ||||||
2019 Restructuring Plan | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Value of non-core assets expected to sell | 2,000,000,000 | $ 2,000,000,000 | |||||
2019 Restructuring Plan | Employee Severance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Restructuring charges | $ 34,300,000 | 2,600,000 | |||||
Minimum | 2019 Restructuring Plan | Employee Severance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Restructuring charges, expected cost remaining | $ 200,000 | ||||||
Minimum | Master Planned Communities | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Estimated useful life of MPC assets | 20 years | ||||||
Maximum | 2019 Restructuring Plan | Employee Severance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Restructuring charges, expected cost remaining | $ 500,000 | ||||||
Maximum | Master Planned Communities | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Estimated useful life of MPC assets | 40 years | ||||||
[1] | Related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) and all its related amendments as of January 1, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Asset Useful Lives, by Type) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Equipment and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Equipment and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Computer hardware and software, and vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer hardware and software, and vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
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, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Land and improvements | $ 407,926 | $ 423,520 |
Development costs | 744,748 | 1,022,477 |
Total Developments | $ 1,152,674 | $ 1,445,997 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Corporate Restructuring) (Details) - 2019 Restructuring Plan $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2019 | $ 9,685 |
Charges | 2,650 |
Charges paid/settled | (12,035) |
Balance at December 31, 2020 | $ 300 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Amortized Cost Basis of Financing Receivables by Receivable Type) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables | $ 374,178 |
MUD Receivables | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables | 314,394 |
SID Receivables | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables | 54,770 |
TIF Receivables | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables | 893 |
Net Investments in Lease Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables | 2,943 |
Notes Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables | $ 1,178 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Allowance for Credit Losses on Financing Receivables) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
MUD Receivables | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of year | $ 0 |
Current-period provision for expected credit losses | 0 |
Write-offs | 0 |
Balance at end of year | 0 |
SID Receivables | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of year | 0 |
Current-period provision for expected credit losses | 0 |
Write-offs | 0 |
Balance at end of year | 0 |
TIF Receivables | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of year | 0 |
Current-period provision for expected credit losses | 0 |
Write-offs | 0 |
Balance at end of year | 0 |
Net Investments in Lease Receivable | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of year | 17 |
Current-period provision for expected credit losses | 0 |
Write-offs | 0 |
Balance at end of year | 17 |
Notes Receivable | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of year | 209 |
Current-period provision for expected credit losses | (52) |
Write-offs | (1) |
Balance at end of year | 156 |
Trade Accounts Receivable | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of year | 0 |
Current-period provision for expected credit losses | 99 |
Write-offs | (59) |
Balance at end of year | $ 40 |
REAL ESTATE AND OTHER AFFILIA_3
REAL ESTATE AND OTHER AFFILIATES (Narrative) (Details) | May 23, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020USD ($) | Jul. 15, 2020 |
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Equity method investment, impairment | $ 0 | |||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ 271,099,000 | 30,629,000 | $ 39,954,000 | |||||||||
Assets | 9,140,332,000 | 8,413,766,000 | ||||||||||
Liabilities | 5,396,195,000 | 5,080,778,000 | ||||||||||
Variable Interest Entity, Primary Beneficiary | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Assets | 393,300,000 | |||||||||||
Liabilities | 186,500,000 | |||||||||||
Other land, rental and property revenues | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Revenue | 105,048,000 | 206,966,000 | 160,519,000 | |||||||||
Equity Method Investments | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Carrying value of equity method investments | 373,192,000 | 117,804,000 | ||||||||||
Equity in earnings (losses) from real estate and other affiliates | 267,375,000 | $ 27,006,000 | 36,599,000 | |||||||||
Mr.C Seaport | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Equity method investment, impairment | $ 6,000,000 | $ 6,000,000 | ||||||||||
Equity method investment, ownership percentage | 35.00% | |||||||||||
Mr.C Seaport | Seaport District | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 35.00% | |||||||||||
Mr.C Seaport | Equity Method Investments | Strategic Developments | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 0.00% | 35.00% | ||||||||||
Carrying value of equity method investments | $ 0 | $ 0 | ||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ 0 | $ 0 | (240,000) | |||||||||
Mr.C Seaport | Equity Method Investments | Seaport District | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 0.00% | 35.00% | ||||||||||
Carrying value of equity method investments | $ 0 | $ 7,650,000 | ||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ (6,900,000) | (1,980,000) | (465,000) | |||||||||
USAA Joint Venture | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Fair value of the land contributed to joint venture | $ 33,600,000 | |||||||||||
Contribution of property | $ 85,000,000 | |||||||||||
Capital contribution | $ 9,800,000 | |||||||||||
Joint venture, preferred return on capital | 9.00% | |||||||||||
Acquisition of 1% partnership interest in 110 North Wacker | 90.00% | |||||||||||
USAA Joint Venture | Local developer | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Capital contribution | $ 5,000,000 | $ 1,100,000 | ||||||||||
USAA Joint Venture | USAA | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Capital contribution | $ 178,400,000 | 64,000,000 | ||||||||||
Joint venture capital obligations | $ 8,800,000 | $ 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% | |||||||||||
110 North Wacker | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Carrying value of equity method investments | $ 273,600,000 | |||||||||||
110 North Wacker | Strategic Developments | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ 267,500,000 | |||||||||||
110 North Wacker | Equity Method Investments | Strategic Developments | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Carrying value of equity method investments | 0 | 0 | ||||||||||
Equity in earnings (losses) from real estate and other affiliates | 267,518,000 | 0 | 0 | |||||||||
110 North Wacker | Equity Method Investments | Strategic Developments | Other land, rental and property revenues | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Revenue | 15,400,000 | |||||||||||
Bar Wayo | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Joint venture, preferred return on capital, percent of cash distributions | 75.00% | |||||||||||
Joint venture real estate, percentage funded | 89.75% | |||||||||||
Preferred return, on capital (as a percent) | 10.00% | |||||||||||
Join venture real estate, remaining cash distribution percentage | 50.00% | |||||||||||
Bar Wayo | Momofuku | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Joint venture, preferred return on capital, percent of cash distributions | 25.00% | |||||||||||
Joint venture real estate, percentage funded | 10.25% | |||||||||||
Bar Wayo | Equity Method Investments | Seaport District | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Carrying value of equity method investments | 7,101,000 | 7,469,000 | ||||||||||
Equity in earnings (losses) from real estate and other affiliates | (2,392,000) | $ (612,000) | $ 0 | |||||||||
Investment in real estate and other affiliates | 7,100,000 | |||||||||||
The Summit | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Preferred return, on capital (as a percent) | 5.00% | |||||||||||
Entitlement of distribution by joint venture (in times) | item | 2 | |||||||||||
The Summit | Equity Method Investments | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
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 | |||||||||||
110 North Wacker | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Recourse amount | 100,600,000 | |||||||||||
Unconsolidated Properties | ||||||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||||||
Secured debt | 545,000,000 | |||||||||||
Share of the entity in secured debt | $ 274,500,000 |
REAL ESTATE AND OTHER AFFILIA_4
REAL ESTATE AND OTHER AFFILIATES (Summary of Investments in Real Estate and Other Affiliates) (Details) - USD ($) $ in Thousands | Dec. 18, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 17, 2020 | Sep. 30, 2020 | Jul. 15, 2020 |
Investments in and Advances to Affiliates [Line Items] | |||||||
Investment in real estate and other affiliates | $ 377,145 | $ 121,757 | |||||
Share of Earnings/Dividends | 271,099 | 30,629 | $ 39,954 | ||||
110 North Wacker | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity Method Investments | $ 273,600 | ||||||
Mr.C Seaport | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 35.00% | ||||||
Circle T | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 50.00% | ||||||
Equity Method Investments | $ 11,900 | ||||||
Share of Earnings/Dividends | $ 1,100 | ||||||
Equity Method Investments | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity Method Investments | 373,192 | 117,804 | |||||
Share of Earnings/Dividends | 267,375 | 27,006 | 36,599 | ||||
Other equity Investments | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Other equity investments | 3,953 | 3,953 | |||||
Share of Earnings/Dividends | 3,724 | 3,623 | 3,355 | ||||
Operating Assets | Equity Method Investments | 110 North Wacker | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity Method Investments | 261,143 | 0 | |||||
Share of Earnings/Dividends | $ (13,896) | $ 0 | 0 | ||||
Operating Assets | Equity Method Investments | The Metropolitan Downtown Columbia | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 50.00% | 50.00% | |||||
Equity Method Investments | $ 0 | $ 0 | |||||
Share of Earnings/Dividends | $ 765 | $ 694 | 467 | ||||
Operating Assets | Equity Method Investments | Stewart Title of Montgomery County, TX | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 50.00% | 50.00% | |||||
Equity Method Investments | $ 3,924 | $ 4,175 | |||||
Share of Earnings/Dividends | $ 1,250 | $ 1,105 | 573 | ||||
Operating Assets | Equity Method Investments | Woodlands Sarofim #1 | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 20.00% | 20.00% | |||||
Equity Method Investments | $ 3,120 | $ 2,985 | |||||
Share of Earnings/Dividends | $ 125 | $ 125 | 94 | ||||
Operating Assets | Equity Method Investments | m.flats/TEN.M | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 50.00% | 50.00% | |||||
Equity Method Investments | $ 1,247 | $ 2,431 | |||||
Share of Earnings/Dividends | 666 | (1,875) | (2,478) | ||||
Master Planned Communities | Equity Method Investments | The Summit | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity Method Investments | 96,300 | 84,455 | |||||
Share of Earnings/Dividends | $ 17,845 | $ 28,336 | 36,284 | ||||
Seaport District | Mr.C Seaport | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 35.00% | ||||||
Seaport District | Equity Method Investments | Mr.C Seaport | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 0.00% | 35.00% | |||||
Equity Method Investments | $ 0 | $ 7,650 | |||||
Share of Earnings/Dividends | (6,900) | (1,980) | (465) | ||||
Seaport District | Equity Method Investments | Bar Wayō (Momofuku) | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity Method Investments | 7,101 | 7,469 | |||||
Share of Earnings/Dividends | (2,392) | (612) | 0 | ||||
Strategic Developments | 110 North Wacker | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Share of Earnings/Dividends | 267,500 | ||||||
Strategic Developments | Equity Method Investments | 110 North Wacker | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity Method Investments | 0 | 0 | |||||
Share of Earnings/Dividends | $ 267,518 | $ 0 | 0 | ||||
Strategic Developments | Equity Method Investments | Mr.C Seaport | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 0.00% | 35.00% | |||||
Equity Method Investments | $ 0 | $ 0 | |||||
Share of Earnings/Dividends | $ 0 | $ 0 | (240) | ||||
Strategic Developments | Equity Method Investments | Circle T | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 0.00% | 50.00% | |||||
Equity Method Investments | $ 0 | $ 8,207 | |||||
Share of Earnings/Dividends | $ 2,463 | $ 950 | 1,534 | ||||
Strategic Developments | Equity Method Investments | HHMK Development | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 50.00% | 50.00% | |||||
Equity Method Investments | $ 10 | $ 10 | |||||
Share of Earnings/Dividends | $ 0 | $ 0 | 0 | ||||
Strategic Developments | Equity Method Investments | KR Holdings | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Economic/Legal Ownership | 50.00% | 50.00% | |||||
Equity Method Investments | $ 347 | $ 422 | |||||
Share of Earnings/Dividends | (69) | 263 | $ 830 | ||||
Accounts payable and accrued expenses | The Metropolitan Downtown Columbia | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Investment deficit position | $ 5,000 | $ 4,700 |
REAL ESTATE AND OTHER AFFILIA_5
REAL ESTATE AND OTHER AFFILIATES (Changes in Redeemable Noncontrolling Interest) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance at beginning of year | $ 0 |
Reclassification of redeemable noncontrolling interest to temporary equity | 6,091 |
Net income (loss) attributable to noncontrolling interest | 22,881 |
Share of investee's other comprehensive income | 142 |
Balance at end of year | $ 29,114 |
REAL ESTATE AND OTHER AFFILIA_6
REAL ESTATE AND OTHER AFFILIATES (Summarized Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet | ||||
Total Assets | $ 9,140,332 | $ 8,413,766 | ||
Total Liabilities | 5,396,195 | 5,080,778 | ||
Total Equity | 3,715,023 | 3,332,988 | $ 3,238,126 | $ 3,188,551 |
Income Statement | ||||
Revenues | 699,489 | 1,300,539 | 1,064,537 | |
Operating Income | (119,561) | 150,310 | 106,806 | |
Net income (loss) | (3,173) | 74,295 | 57,726 | |
The Summit | ||||
Balance Sheet | ||||
Total Assets | 306,541 | 221,277 | ||
Total Liabilities | 207,152 | 136,314 | ||
Total Equity | 99,389 | 84,963 | ||
Income Statement | ||||
Revenues | 147,680 | 120,337 | 102,559 | |
Gross Margin | 27,064 | 32,205 | 42,338 | |
Net income (loss) | 20,426 | 26,298 | 36,697 | |
110 North Wacker | ||||
Balance Sheet | ||||
Total Assets | 634,274 | 0 | ||
Total Liabilities | 415,452 | 0 | ||
Total Equity | 218,822 | 0 | ||
Income Statement | ||||
Revenues | 5,333 | 0 | 0 | |
Operating Income | (3,148) | 0 | 0 | |
Net income (loss) | (8,236) | 0 | 0 | |
Equity Method Investment, Nonconsolidated Investee, Other | ||||
Balance Sheet | ||||
Total Assets | 247,742 | 324,926 | ||
Total Liabilities | 166,418 | 208,991 | ||
Total Equity | 81,324 | 115,935 | ||
Income Statement | ||||
Revenues | 36,450 | 42,778 | 36,613 | |
Operating Income | 17,100 | 16,085 | 14,495 | |
Net income (loss) | $ 11,220 | $ 5,162 | $ 6,250 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS (Narrative, Acquisitions) (Details) $ in Thousands | Dec. 30, 2019USD ($)ft²abuilding | Sep. 07, 2018USD ($)aft²building | Jun. 08, 2018USD ($)aextention_option | Dec. 31, 2020ft² | Dec. 31, 2019a |
Payments to acquire real estate | $ 584,300 | ||||
Leasing commission | $ 19,319 | ||||
The Woodlands Warehouse | |||||
Square footage of building | ft² | 125,801 | ||||
Waterway Land | |||||
Area of land | a | 9.3 | ||||
Payments to acquire real estate | $ 565,000 | ||||
Century Park | |||||
Asset acquisition, number of buildings acquired | building | 17 | ||||
Square footage of building | a | 1,302,597 | ||||
Area of land | a | 63 | ||||
The Woodlands Towers at the Waterway | |||||
Square footage of building | ft² | 805,993 | 595,618 | |||
The Woodlands Towers at the Waterway and The Woodlands Warehouse | |||||
Duration of lease | 13 years | ||||
Lakefront North | |||||
Area of land | a | 12.9 | ||||
Payments to acquire real estate | $ 53,000 | ||||
Number of buildings | building | 2 | ||||
Area of real estate property | ft² | 258,000 | ||||
250 Water Street | |||||
Area of land purchased | a | 1 | ||||
Purchase price of land acquired | $ 180,000 | ||||
Payments to acquire land | 53,100 | ||||
250 Water Street | Notes Payable, Other Payables | |||||
Short-term debt | $ 129,700 | ||||
Interest free term | 6 months | ||||
Number of extension options | extention_option | 3 | ||||
Extension option, term | 6 months | ||||
Interest rate (as a percent) | 6.00% | ||||
The Woodlands Towers at the Waterway | |||||
Asset acquisition, number of buildings acquired | building | 2 | ||||
Square footage of building | ft² | 1,401,611 | ||||
Leasing commission | $ 18,599 |
ACQUISITIONS AND DISPOSITIONS A
ACQUISITIONS AND DISPOSITIONS ACQUISITIONS AND DISPOSITIONS (Asset Acquisitions) (Details) $ in Thousands | Dec. 30, 2019USD ($) |
Schedule Of Asset Acquisition, By Acquisition [Line Items] | |
Building | $ 406,091 |
Tenant improvements | 58,869 |
In-place leases | 50,921 |
Land | 46,851 |
Leasing commission | 19,319 |
Site Improvements | 2,241 |
Legal and marketing costs | 19 |
Total | 584,311 |
The Woodlands Towers at the Waterway | |
Schedule Of Asset Acquisition, By Acquisition [Line Items] | |
Building | 377,308 |
Tenant improvements | 58,869 |
In-place leases | 49,511 |
Land | 11,044 |
Leasing commission | 18,599 |
Site Improvements | 1,384 |
Legal and marketing costs | 16 |
Total | 516,731 |
The Woodlands Warehouse | |
Schedule Of Asset Acquisition, By Acquisition [Line Items] | |
Building | 4,198 |
Tenant improvements | 0 |
In-place leases | 1,410 |
Land | 4,480 |
Leasing commission | 720 |
Site Improvements | 190 |
Legal and marketing costs | 3 |
Total | 11,001 |
Waterway Land | |
Schedule Of Asset Acquisition, By Acquisition [Line Items] | |
Building | 0 |
Tenant improvements | 0 |
In-place leases | 0 |
Land | 11,511 |
Leasing commission | 0 |
Site Improvements | 0 |
Legal and marketing costs | 0 |
Total | 11,511 |
Century Park | |
Schedule Of Asset Acquisition, By Acquisition [Line Items] | |
Building | 24,585 |
Tenant improvements | 0 |
In-place leases | 0 |
Land | 19,816 |
Leasing commission | 0 |
Site Improvements | 667 |
Legal and marketing costs | 0 |
Total | $ 45,068 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS (Narrative, Dispositions) (Details) $ in Thousands | Dec. 18, 2020USD ($) | Nov. 20, 2020USD ($)a | Jul. 16, 2020USD ($)hotel_room | Jun. 29, 2020USD ($) | Mar. 13, 2020USD ($)aft²parking_spaces | Dec. 30, 2019USD ($) | Dec. 20, 2019USD ($) | Oct. 29, 2019USD ($)a | Sep. 16, 2019USD ($)aft² | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 17, 2020 | Jul. 15, 2020 | Nov. 30, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ 271,099 | $ 30,629 | $ 39,954 | |||||||||||||
Proceeds from sales of properties | 24,373 | 67,110 | 0 | |||||||||||||
Carrying value of the asset | 6,685,069 | 6,760,355 | ||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | 59,942 | 22,362 | (4) | |||||||||||||
Selling profit from sales-type leases | 0 | 13,537 | ||||||||||||||
Net investment in lease receivable | 2,926 | 79,166 | ||||||||||||||
Payments to acquire real estate | $ 584,300 | |||||||||||||||
Proceeds from the sale of lease receivable | 64,155 | 0 | 0 | |||||||||||||
Pre-tax net loss since the acquisition date | 8,480 | 103,540 | 73,218 | |||||||||||||
Equity Method Investments | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Carrying value of equity method investments | 373,192 | 117,804 | ||||||||||||||
Equity in earnings (losses) from real estate and other affiliates | 267,375 | 27,006 | $ 36,599 | |||||||||||||
Elk Grove | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Area of land sold | a | 64 | |||||||||||||||
Proceeds from sales of properties | $ 24,600 | |||||||||||||||
Carrying value of the asset | 10,800 | |||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | $ 13,700 | |||||||||||||||
West Windsor | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Area of land sold | a | 658 | |||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | $ 8,000 | $ 12,000 | ||||||||||||||
Assets divested from deconsolidation | 27,500 | |||||||||||||||
Proceeds from sale | $ 40,000 | |||||||||||||||
100 Fellowship Drive | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Area of land sold | a | 13.5 | |||||||||||||||
Proceeds from sales of properties | $ 115,000 | |||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | $ 38,300 | |||||||||||||||
Area of real estate property sold | ft² | 203,257 | |||||||||||||||
Number of parking spaces | parking_spaces | 550 | |||||||||||||||
Selling profit from sales-type leases | $ 13,500 | |||||||||||||||
Amount derecognized from Developments for sales-type leases | $ 63,700 | |||||||||||||||
Net investment in lease receivable | $ 76,100 | $ 75,900 | ||||||||||||||
Transaction costs on sales of investments real estate | 200 | |||||||||||||||
Payments to acquire real estate | $ 600 | |||||||||||||||
Proceeds from the sale of lease receivable | $ 64,200 | |||||||||||||||
Cottonwood Mall | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales of properties | $ 10,000 | |||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | 24,100 | |||||||||||||||
Assets divested from deconsolidation | 21,500 | |||||||||||||||
Proceeds from sale | $ 46,000 | |||||||||||||||
Square footage of building | ft² | 196,975 | |||||||||||||||
Note receivable | $ 36,000 | |||||||||||||||
Land Parcel in Holladay, Utah | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Area of land sold | a | 54 | |||||||||||||||
Circle T | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Equity method investment, ownership percentage | 50.00% | |||||||||||||||
Proceeds from sale of equity method investments | $ 13,000 | |||||||||||||||
Carrying value of equity method investments | 11,900 | |||||||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ 1,100 | |||||||||||||||
Mr.C Seaport | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Equity method investment, ownership percentage | 35.00% | |||||||||||||||
Proceeds from sale of equity method investments | $ 800 | |||||||||||||||
Mr.C Seaport | Equity Method Investments | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Number of hotel rooms | hotel_room | 66 | |||||||||||||||
Bridges at Mint Hill | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Equity method investment, ownership percentage | 90.50% | |||||||||||||||
Equity in earnings (losses) from real estate and other affiliates | $ 9,500 | |||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | (8,800) | |||||||||||||||
Assets divested from deconsolidation | 22,000 | |||||||||||||||
Pre-tax net loss since the acquisition date | $ 3,800 |
IMPAIRMENT (Narrative) (Details
IMPAIRMENT (Narrative) (Details) | Jul. 16, 2020USD ($)hotel_room | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 15, 2020 |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Impairment charge for real estate | $ 48,738,000 | $ 0 | $ 0 | ||||
Carrying value of the asset | 6,685,069,000 | 6,760,355,000 | |||||
Equity method investment, impairment | $ 0 | ||||||
Condominium Inventory | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Other asset impairment charge | $ 7,644,000 | ||||||
Measurement Input, Cap Rate | Discounted Cash Flow | Fair Value, Nonrecurring | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Measurement input | 0.10 | 0.100 | |||||
Mr.C Seaport | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Equity method investment, impairment | $ 6,000,000 | $ 6,000,000 | |||||
Equity method investment, ownership percentage | 35.00% | ||||||
Proceeds from sale of equity method investments | $ 800,000 | ||||||
Equity Method Investments | Mr.C Seaport | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Number of hotel rooms | hotel_room | 66 | ||||||
Outlet Collection at Riverwalk | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Impairment charge for real estate | $ 48,700,000 | $ 48,738,000 | |||||
Area of real estate property | ft² | 273,270 | ||||||
Carrying value of the asset | $ 46,800,000 |
IMPAIRMENT (Summary of Impairme
IMPAIRMENT (Summary of Impairments) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment charge for real estate | $ 48,738,000 | $ 0 | $ 0 | ||
Equity method investment, impairment | $ 0 | ||||
Condominium Inventory | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Other asset impairment charge | 7,644,000 | ||||
Mr.C Seaport | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Equity method investment, impairment | $ 6,000,000 | 6,000,000 | |||
Outlet Collection at Riverwalk | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment charge for real estate | $ 48,700,000 | $ 48,738,000 |
OTHER ASSETS AND LIABILITIES (P
OTHER ASSETS AND LIABILITIES (Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets and Liabilities [Line Items] | ||
Straight-line rent | $ 59,289 | $ 56,223 |
Straight Line Rent Asset, Change | 3,066 | |
Condominium inventory | 55,883 | 56,421 |
Condominium Inventory, Change | (538) | |
Special Improvement District receivable | 54,770 | 42,996 |
Special Improvement District Receivable, Change | 11,774 | |
Security, escrow and other deposits | 48,576 | 17,464 |
Security, escrow and other deposits, Change | 31,112 | |
Intangibles | 32,595 | 33,275 |
Intangibles, Change | (680) | |
Prepaid expenses | 17,455 | 13,263 |
Prepaid Expenses, Change | 4,192 | |
Other | 11,781 | 9,252 |
Other, Change | 2,529 | |
Tenant incentives and other receivables | 9,612 | 7,556 |
Tenant incentives and other receivables, Change | 2,056 | |
Food and beverage and lifestyle inventory | 1,060 | 4,310 |
Food and beverage and lifestyle inventory, Change | (3,250) | |
TIF receivable | 893 | 3,931 |
TIF receivable, Change | (3,038) | |
Federal income tax receivable | 0 | 655 |
Federal income tax receivable, Change | (655) | |
Prepaid expenses and other assets, net | 341,390 | 300,373 |
Prepaid expenses and other assets, net, Change | 41,017 | |
In-place leases | ||
Other Assets and Liabilities [Line Items] | ||
Leases | 49,161 | 54,471 |
Leases, Change | (5,310) | |
Above-market tenant leases | ||
Other Assets and Liabilities [Line Items] | ||
Leases | 315 | $ 556 |
Leases, Change | $ (241) |
OTHER ASSETS AND LIABILITIES (A
OTHER ASSETS AND LIABILITIES (Accounts Payable and Accrued Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets and Liabilities [Line Items] | ||
Condominium deposit liabilities | $ 309,884 | $ 194,794 |
Condominium deposit liabilities, Change | 115,090 | |
Construction payables | 253,626 | 261,523 |
Construction payables, Change | (7,897) | |
Deferred income | 66,656 | 63,483 |
Deferred Income, Change | 3,173 | |
Interest rate derivative liabilities | 51,920 | 40,135 |
Interest rate swap liabilities, Change | 11,785 | |
Accrued real estate taxes | 38,863 | 27,559 |
Accrued real estate taxes, Change | 11,304 | |
Accrued interest | 37,007 | 23,838 |
Accrued interest, Change | 13,169 | |
Accounts payable and accrued expenses | 28,589 | 37,480 |
Accounts payable and accrued expenses, Change | (8,891) | |
Accrued payroll and other employee liabilities | 27,419 | 44,082 |
Accrued payroll and other employee liabilities, Change | (16,663) | |
Tenant and other deposits | 25,801 | 24,080 |
Tenant and other deposits, Change | 1,721 | |
Other | 12,493 | 16,173 |
Other, Change | (3,680) | |
Accounts payable and accrued expenses | 852,258 | $ 733,147 |
Accounts Payable And Accrued Expenses, Change | 119,111 | |
110 North Wacker | ||
Other Assets and Liabilities [Line Items] | ||
Construction payables, Change | (39,500) | |
Interest rate swap liabilities, Change | (15,200) | |
Various properties | ||
Other Assets and Liabilities [Line Items] | ||
Construction payables, Change | (63,300) | |
Waiea | ||
Other Assets and Liabilities [Line Items] | ||
Construction payables, Change | $ 97,900 |
INTANGIBLES (Summary of Intangi
INTANGIBLES (Summary of Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Indefinite lived intangibles | $ 25,028 | $ 25,028 | |
Goodwill | 1,307 | 1,307 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total indefinite lived intangibles | 26,335 | 26,335 | |
Total amortizing intangibles | 54,095 | 59,871 | |
Amortization/accretion of intangible assets/liabilities | 5,800 | 2,100 | $ 6,000 |
Other intangibles | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset | 9,251 | 10,278 | |
Accumulated (Amortization) | (2,991) | (3,338) | |
Net Carrying Amount | 6,260 | 6,940 | |
Tenant Leases in-place value | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset | 63,584 | 66,606 | |
Accumulated (Amortization) | (14,423) | (12,135) | |
Net Carrying Amount | 49,161 | 54,471 | |
Tenant Leases above Market | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Asset | 1,985 | 2,247 | |
Accumulated (Amortization) | (1,670) | (1,691) | |
Net Carrying Amount | 315 | 556 | |
Tenant Leases below Market | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Liability | (4,839) | (7,008) | |
Accumulated Accretion | 3,198 | 4,912 | |
Net Carrying Amount | $ (1,641) | $ (2,096) |
INTANGIBLES (Future Net Amortiz
INTANGIBLES (Future Net Amortization and Accretion Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 5,287 |
2022 | 4,901 |
2023 | 4,481 |
2024 | 4,485 |
Thereafter | $ 34,941 |
MORTGAGES, NOTES AND LOANS PA_3
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Borrowing Activity) (Details) - USD ($) $ in Thousands | Aug. 18, 2020 | Jun. 22, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Notes And Loans Payable [Roll Forward] | |||||
Balance at beginning of year | $ 4,096,470 | ||||
Issuances/Borrowings | 1,403,923 | $ 1,292,083 | $ 1,172,622 | ||
Repayments | $ (807,900) | (867,935) | (386,489) | (838,462) | |
Special Improvement District bond assumptions | (10,122) | (22,423) | $ (10,937) | ||
Deferred financing costs, net | 9,352 | ||||
Balance at end of year | $ 4,287,369 | $ 4,096,470 | |||
9950 Woodloch Forest Drive | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 2.09% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Issuances/Borrowings | $ 63,500 | ||||
Ae‘o Retail | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 2.90% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Issuances/Borrowings | $ 30,640 | ||||
Ke Kilohana Retail | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 2.90% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Issuances/Borrowings | $ 9,360 | ||||
The Woodlands Towers at the Waterway | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.68% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (63,500) | ||||
Three Hughes Landing | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.33% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (60,766) | ||||
Two Merriweather | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.23% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (30,557) | ||||
100 Fellowship Drive | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.23% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (49,978) | ||||
HHC 242 Self-Storage | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.33% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (5,499) | ||||
HHC 2978 Self-Storage | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.33% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (5,395) | ||||
Downtown Summerlin | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.88% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (33,800) | $ (255,297) | |||
Lakefront North | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.73% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (40,062) | ||||
Seaport District | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 6.10% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (250,000) | ||||
Two Summerlin | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.25% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (32,803) | ||||
110 North Wacker | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.73% | ||||
110 North Wacker | Variable Interest Entity, Primary Beneficiary | |||||
Notes And Loans Payable [Roll Forward] | |||||
Deconsolidation of 110 North Wacker | $ (326,835) | ||||
Existing mortgages, notes and loans payable | |||||
Notes And Loans Payable [Roll Forward] | |||||
Issuances/Borrowings | 556,166 | ||||
Repayments | $ (20,055) | ||||
Bridgeland Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.23% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (50,000) | ||||
The Woodlands Master Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 4.23% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Repayments | $ (50,000) | ||||
Senior Notes | Senior Notes due 2028 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 5.38% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Issuances/Borrowings | $ 750,000 | ||||
Special Improvement District bonds | |||||
Notes And Loans Payable [Roll Forward] | |||||
Special Improvement District bond assumptions | $ (10,122) | ||||
Special Improvement District bonds | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 5.00% | ||||
Special Improvement District bonds | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 6.00% | ||||
Special Improvement District bonds | Special Improvement District bonds | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 6.00% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Issuances | $ 22,750 | ||||
Line of Credit | Revolver Loan | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 1.79% | ||||
Notes And Loans Payable [Roll Forward] | |||||
Borrowings | $ 67,500 | ||||
Repayments | $ (67,500) |
MORTGAGES, NOTES AND LOANS PA_4
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Borrowing Activity, Footnotes) (Details) - USD ($) | Aug. 18, 2020 | Jun. 22, 2020 | May 20, 2020 | Mar. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 807,900,000 | $ 867,935,000 | $ 386,489,000 | $ 838,462,000 | |||
Loss on extinguishment of debt | 13,200,000 | 13,169,000 | $ (4,641,000) | $ 0 | |||
The Woodlands Towers at the Waterway and The Woodlands Warehouse | Bridge Loan | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 280,300,000 | $ 137,000,000 | |||||
The Woodlands Towers at the Waterway | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | 63,500,000 | ||||||
The Woodlands Towers at the Waterway | Bridge Loan | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 63,500,000 | ||||||
Downtown Summerlin | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 221,500,000 | ||||||
Repayment of debt | $ 33,800,000 | 255,297,000 | |||||
110 North Wacker | Variable Interest Entity, Primary Beneficiary | |||||||
Debt Instrument [Line Items] | |||||||
Deconsolidation of 110 North Wacker | $ 326,835,000 | ||||||
Senior Notes due 2028 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of debt issued | $ 750,000,000 | ||||||
Interest rate (as a percent) | 5.375% | 5.375% | |||||
One-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 0.14% | ||||||
Three-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 0.24% | ||||||
Prime rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 3.25% | ||||||
LIBOR | The Woodlands Towers at the Waterway and The Woodlands Warehouse | Bridge Loan | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 2.35% | ||||||
LIBOR | Downtown Summerlin | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 2.15% |
MORTGAGES, NOTES AND LOANS PA_5
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Narrative) (Details) | May 20, 2020USD ($) | Mar. 27, 2020USD ($) | Mar. 05, 2020USD ($) | Jan. 07, 2020USD ($) | Oct. 17, 2019USD ($)extention_option | Sep. 21, 2018 | Sep. 18, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)bond | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 02, 2021USD ($) | Jun. 30, 2020USD ($)loan_agreement | Mar. 26, 2020USD ($) | Mar. 04, 2020USD ($) | Feb. 28, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | $ 4,320,166,000 | $ 4,320,166,000 | ||||||||||||||
Special Improvement District bond transfers associated with land sales | $ 10,122,000 | $ 22,423,000 | $ 10,937,000 | |||||||||||||
Weighted average interest rate | 4.34% | 4.34% | 4.75% | |||||||||||||
Pledged assets, not separately reported | $ 4,500,000,000 | $ 4,500,000,000 | ||||||||||||||
Operating Assets | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | 2,052,295,000 | 2,052,295,000 | $ 2,338,317,000 | |||||||||||||
Self Storage Facility | Operating Assets | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | $ 10,900,000 | |||||||||||||||
Number of loan agreements | loan_agreement | 2 | |||||||||||||||
Special Improvement District bonds | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Special Improvement District bond transfers associated with land sales | 10,122,000 | |||||||||||||||
Senior Notes due 2029 | Senior Notes | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 650,000,000 | |||||||||||||||
Interest rate (as a percent) | 4.125% | |||||||||||||||
Senior Notes due 2031 | Senior Notes | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 650,000,000 | |||||||||||||||
Interest rate (as a percent) | 4.375% | |||||||||||||||
Senior Notes due 2025 | Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | ||||||||||||||
Amount outstanding | $ 1,000,000,000 | $ 1,000,000,000 | 1,000,000,000 | |||||||||||||
Senior Notes due 2025 | Senior Notes | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt repurchased | $ 512,500,000 | |||||||||||||||
$700 Million Loan Maturity September 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 700,000,000 | |||||||||||||||
Option to increase borrowing capacity | 50,000,000 | |||||||||||||||
$700 Million Loan Maturity September 2023 | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | 615,000,000 | 615,000,000 | 615,000,000 | $ 615,000,000 | ||||||||||||
Debt instrument covered, percent | 100.00% | |||||||||||||||
Fixed interest rate | 4.61% | |||||||||||||||
$700 Million Loan Maturity September 2023 | Line of Credit | Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 85,000,000 | |||||||||||||||
Amount outstanding | 0 | 0 | ||||||||||||||
The Bridgeland And Woodlands Credit Facility | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 100,000,000 | |||||||||||||||
The Bridgeland And Woodlands Credit Facility | Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Extension option, term | 1 year | |||||||||||||||
Facility amount | $ 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||
Number of extension options | extention_option | 2 | |||||||||||||||
The Bridgeland And Woodlands Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 150,000,000 | |||||||||||||||
Amount outstanding | 50,000,000 | $ 50,000,000 | ||||||||||||||
Revolver Loan | Line of Credit | Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | $ 61,300,000 | |||||||||||||||
One-month LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate margin (as a percent) | 0.14% | |||||||||||||||
One-month LIBOR | $700 Million Loan Maturity September 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate margin (as a percent) | 1.65% | |||||||||||||||
One-month LIBOR | The Bridgeland And Woodlands Credit Facility | Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate margin (as a percent) | 2.50% | |||||||||||||||
Creekside Park The Grove | Construction Loans | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 43,400,000 | |||||||||||||||
Extension option, term | 1 year | |||||||||||||||
Creekside Park The Grove | LIBOR | Construction Loans | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate margin (as a percent) | 1.75% | |||||||||||||||
Three Hughes Landing | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 61,000,000 | $ 61,200,000 | ||||||||||||||
Extension option, term | 12 months | |||||||||||||||
Three Hughes Landing | Operating Assets | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | 0 | $ 0 | 59,822,000 | |||||||||||||
Three Hughes Landing | One-month LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate margin (as a percent) | 2.60% | |||||||||||||||
Kō'ula | Construction Loans | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 356,800,000 | |||||||||||||||
Interest rate margin (as a percent) | 3.00% | |||||||||||||||
Extension option, term | 1 year | |||||||||||||||
The Woodlands Towers at the Waterway and The Woodlands Warehouse | Bridge Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt issued | $ 280,300,000 | $ 137,000,000 | ||||||||||||||
Extension option, term | 6 months | |||||||||||||||
The Woodlands Towers at the Waterway and The Woodlands Warehouse | LIBOR | Bridge Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate margin (as a percent) | 2.35% | |||||||||||||||
Interest rate margin, extension option | 2.90% | |||||||||||||||
1201 Lake Robbins and The Woodlands Warehouse | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | 280,000,000 | $ 280,000,000 | ||||||||||||||
Summerlin | Special Improvement District bonds | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of bonds issued | bond | 1 | |||||||||||||||
Special Improvement District bond transfers associated with land sales | $ 10,100,000 | |||||||||||||||
The Woodlands Resort & Conference Center | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | $ 62,500,000 | |||||||||||||||
The Woodlands Resort & Conference Center | COVID-19 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Decrease for forgiveness | $ 24,100,000 | |||||||||||||||
The Woodlands Resort & Conference Center | Operating Assets | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Amount outstanding | $ 62,500,000 | $ 62,500,000 |
MORTGAGES, NOTES AND LOANS PA_6
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Summary of Mortgages, Notes and Loans Payable) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Aug. 18, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Variable-rate debt | $ 1,945,344 | $ 2,229,958 | |
Unamortized bond issuance costs | (4,355) | (5,249) | |
Unamortized deferred financing costs | (28,442) | (36,899) | |
Total mortgages, notes and loans payable, net | $ 4,287,369 | 4,096,470 | |
Senior Notes | Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.375% | ||
Fixed-rate debt | $ 1,000,000 | 1,000,000 | |
Senior Notes | Senior Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.375% | 5.375% | |
Fixed-rate debt | $ 750,000 | 0 | |
Secured mortgages, notes and loans payable | |||
Debt Instrument [Line Items] | |||
Fixed-rate debt | 590,517 | 884,935 | |
Amount of variable-rate debt swapped to fixed rate | 649,900 | 630,100 | |
Secured mortgages, notes and loans payable | Interest Rate Collar | |||
Debt Instrument [Line Items] | |||
Variable-rate debt | 184,300 | ||
Secured mortgages, notes and loans payable | Interest Rate Cap | |||
Debt Instrument [Line Items] | |||
Variable-rate debt | 75,000 | 75,000 | |
Special Improvement District bonds | |||
Debt Instrument [Line Items] | |||
Fixed-rate debt | $ 34,305 | $ 23,725 |
MORTGAGES, NOTES AND LOANS PA_7
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Schedule of Debt by Property) (Details) - USD ($) | Mar. 27, 2020 | Mar. 05, 2020 | Oct. 17, 2019 | Dec. 31, 2020 | Aug. 18, 2020 | Jun. 30, 2020 | Jun. 22, 2020 | Mar. 04, 2020 | Jan. 07, 2020 | Dec. 31, 2019 | Jun. 27, 2019 | Feb. 28, 2019 |
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 4,320,166,000 | |||||||||||
Unamortized bond issuance costs | (4,355,000) | $ (5,249,000) | ||||||||||
Unamortized deferred financing costs | (28,442,000) | (36,899,000) | ||||||||||
Total mortgages, notes and loans payable | $ 4,287,369,000 | 4,096,470,000 | ||||||||||
One-month LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 0.14% | |||||||||||
Three-month LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 0.24% | |||||||||||
Prime rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 3.25% | |||||||||||
Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 2,052,295,000 | 2,338,317,000 | ||||||||||
Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | 181,520,000 | 235,284,000 | ||||||||||
Seaport District | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | 100,000,000 | 350,000,000 | ||||||||||
Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 236,351,000 | 215,017,000 | ||||||||||
Three Hughes Landing | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.33% | |||||||||||
Aggregate principal amount of debt issued | $ 61,000,000 | $ 61,200,000 | ||||||||||
Three Hughes Landing | One-month LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 2.60% | |||||||||||
Three Hughes Landing | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.33% | |||||||||||
Carrying Value | $ 0 | 59,822,000 | ||||||||||
The Woodlands Towers at the Waterway | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.68% | |||||||||||
The Woodlands Towers at the Waterway | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.68% | |||||||||||
Carrying Value | $ 0 | 336,570,000 | ||||||||||
1201 Lake Robbins | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.49% | |||||||||||
Carrying Value | $ 273,070,000 | 0 | ||||||||||
The Woodlands Warehouse | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.49% | |||||||||||
Carrying Value | $ 7,230,000 | 7,230,000 | ||||||||||
Downtown Summerlin | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.88% | |||||||||||
Aggregate principal amount of debt issued | $ 221,500,000 | |||||||||||
Downtown Summerlin | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.88% | |||||||||||
Carrying Value | $ 0 | 259,179,000 | ||||||||||
Two Merriweather | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.23% | |||||||||||
Two Merriweather | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.23% | |||||||||||
Carrying Value | $ 0 | 28,216,000 | ||||||||||
Outlet Collection at Riverwalk | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.50% | |||||||||||
Carrying Value | $ 28,679,000 | 30,615,000 | ||||||||||
100 Fellowship Drive | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.23% | |||||||||||
100 Fellowship Drive | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.23% | |||||||||||
Carrying Value | $ 0 | 47,916,000 | ||||||||||
20/25 Waterway Avenue | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.79% | |||||||||||
Carrying Value | $ 12,855,000 | 13,131,000 | ||||||||||
Millennium Waterway Apartments | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.75% | |||||||||||
Carrying Value | $ 51,946,000 | 53,032,000 | ||||||||||
HHC 242 Self-Storage | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.33% | |||||||||||
HHC 242 Self-Storage | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.33% | |||||||||||
Carrying Value | $ 0 | 5,499,000 | ||||||||||
HHC 2978 Self-Storage | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.33% | |||||||||||
HHC 2978 Self-Storage | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.33% | |||||||||||
Carrying Value | $ 0 | 5,395,000 | ||||||||||
Lake Woodlands Crossing Retail | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 1.94% | |||||||||||
Carrying Value | $ 12,329,000 | 12,163,000 | ||||||||||
Lakeside Row | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.39% | |||||||||||
Carrying Value | $ 31,566,000 | 23,958,000 | ||||||||||
Two Lakes Edge | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.40% | |||||||||||
Carrying Value | $ 66,198,000 | 38,214,000 | ||||||||||
The Woodlands Resort & Conference Center | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 62,500,000 | |||||||||||
The Woodlands Resort & Conference Center | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.00% | |||||||||||
Carrying Value | 62,500,000 | $ 62,500,000 | ||||||||||
Lakefront North | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.73% | |||||||||||
Lakefront North | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.73% | |||||||||||
Carrying Value | $ 0 | 32,731,000 | ||||||||||
9303 New Trails | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.88% | |||||||||||
Carrying Value | $ 10,763,000 | 11,196,000 | ||||||||||
4 Waterway Square | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.88% | |||||||||||
Carrying Value | $ 31,519,000 | 32,789,000 | ||||||||||
Creekside Park West | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.39% | |||||||||||
Carrying Value | $ 14,719,000 | 8,505,000 | ||||||||||
The Lane at Waterway | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 1.89% | |||||||||||
Carrying Value | $ 22,167,000 | 1,000 | ||||||||||
6100 Merriweather | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.89% | |||||||||||
Carrying Value | $ 62,040,000 | 36,418,000 | ||||||||||
Juniper Apartments | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.89% | |||||||||||
Carrying Value | $ 65,808,000 | 34,610,000 | ||||||||||
Tanager Apartments | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.50% | |||||||||||
Carrying Value | $ 39,744,000 | 29,165,000 | ||||||||||
9950 Woodloch Forest Drive | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.09% | |||||||||||
9950 Woodloch Forest Drive | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.09% | |||||||||||
Carrying Value | $ 71,106,000 | 0 | ||||||||||
Two Summerlin | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.25% | |||||||||||
Two Summerlin | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.25% | |||||||||||
Carrying Value | $ 0 | 33,183,000 | ||||||||||
Ae‘o Retail | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.90% | |||||||||||
Carrying Value | $ 30,500,000 | |||||||||||
Ae‘o Retail | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.90% | |||||||||||
Carrying Value | $ 30,532,000 | 0 | ||||||||||
Ke Kilohana Retail | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.90% | |||||||||||
Carrying Value | $ 9,300,000 | |||||||||||
Ke Kilohana Retail | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.90% | |||||||||||
Carrying Value | $ 9,327,000 | 0 | ||||||||||
3831 Technology Forest Drive | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.50% | |||||||||||
Carrying Value | $ 20,686,000 | 21,137,000 | ||||||||||
Kewalo Basin Harbor | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.89% | |||||||||||
Carrying Value | $ 11,562,000 | 11,110,000 | ||||||||||
Millennium Six Pines Apartments | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.39% | |||||||||||
Carrying Value | $ 42,500,000 | 42,500,000 | ||||||||||
3 Waterway Square | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.94% | |||||||||||
Carrying Value | $ 46,224,000 | 47,647,000 | ||||||||||
One Lakes Edge | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.50% | |||||||||||
Carrying Value | $ 69,440,000 | 69,440,000 | ||||||||||
Aristocrat | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.67% | |||||||||||
Carrying Value | $ 37,093,000 | 38,055,000 | ||||||||||
Creekside Park Apartments | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.52% | |||||||||||
Carrying Value | $ 37,730,000 | 37,730,000 | ||||||||||
One Hughes Landing | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.30% | |||||||||||
Carrying Value | $ 50,815,000 | 52,000,000 | ||||||||||
Two Hughes Landing | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.20% | |||||||||||
Carrying Value | $ 48,000,000 | 48,000,000 | ||||||||||
8770 New Trails | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.89% | |||||||||||
Carrying Value | $ 35,417,000 | 15,124,000 | ||||||||||
Constellation Apartments | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.07% | |||||||||||
Carrying Value | $ 24,200,000 | 24,200,000 | ||||||||||
Hughes Landing Retail | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.50% | |||||||||||
Carrying Value | $ 34,328,000 | 35,000,000 | ||||||||||
Columbia Regional Building | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.48% | |||||||||||
Carrying Value | $ 24,244,000 | 24,664,000 | ||||||||||
Las Vegas Ballpark | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.92% | |||||||||||
Carrying Value | $ 48,173,000 | 51,231,000 | ||||||||||
250 Water Street | Seaport District | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.64% | |||||||||||
Carrying Value | $ 100,000,000 | 100,000,000 | ||||||||||
Seaport District | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.10% | |||||||||||
Seaport District | Seaport District | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.10% | |||||||||||
Carrying Value | $ 0 | 250,000,000 | ||||||||||
‘A‘ali‘i | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.10% | |||||||||||
Carrying Value | $ 154,601,000 | 30,717,000 | ||||||||||
Kō'ula | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 3.14% | |||||||||||
Carrying Value | $ 65,282,000 | 0 | ||||||||||
110 North Wacker | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.73% | |||||||||||
110 North Wacker | Variable Interest Entity, Primary Beneficiary | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Deconsolidation of 110 North Wacker | $ 326,835,000 | |||||||||||
110 North Wacker | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.73% | |||||||||||
Carrying Value | $ 0 | 184,300,000 | ||||||||||
Creekside Park The Grove | Strategic Developments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 1.89% | |||||||||||
Carrying Value | $ 16,468,000 | 0 | ||||||||||
Senior Secured Credit Facility | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 615,000,000 | 615,000,000 | ||||||||||
The Bridgeland And Woodlands Credit Facility | Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 2.64% | |||||||||||
The Woodlands Master Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.23% | |||||||||||
The Woodlands Master Credit Facility | Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 75,000,000 | 107,500,000 | ||||||||||
Bridgeland Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.23% | |||||||||||
Bridgeland Credit Facility | Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 75,000,000 | 107,500,000 | ||||||||||
Construction Loans | 8770 New Trails | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.89% | |||||||||||
Aggregate principal amount of debt issued | 35,500,000 | |||||||||||
Construction Loans | 8770 New Trails | One-month LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 2.45% | |||||||||||
Construction Loans | Kō'ula | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 3.00% | |||||||||||
Aggregate principal amount of debt issued | $ 356,800,000 | |||||||||||
Construction Loans | Creekside Park The Grove | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt issued | $ 43,400,000 | |||||||||||
Special Improvement District bonds | Other SID Bonds | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 2,785,000 | 3,441,000 | ||||||||||
Special Improvement District bonds | Summerlin South SID Bonds | Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Carrying Value | $ 31,520,000 | 20,284,000 | ||||||||||
Special Improvement District bonds | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 5.00% | |||||||||||
Special Improvement District bonds | Minimum | Other SID Bonds | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.00% | |||||||||||
Special Improvement District bonds | Minimum | Summerlin South SID Bonds | Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 5.00% | |||||||||||
Special Improvement District bonds | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.00% | |||||||||||
Special Improvement District bonds | Maximum | Other SID Bonds | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.05% | |||||||||||
Special Improvement District bonds | Maximum | Summerlin South SID Bonds | Master Planned Communities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.05% | |||||||||||
Senior Notes | Senior Notes due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 5.38% | |||||||||||
Carrying Value | $ 1,000,000,000 | 1,000,000,000 | ||||||||||
Aggregate principal amount of debt issued | $ 1,000,000,000 | |||||||||||
Senior Notes | Senior Notes due 2028 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 5.38% | |||||||||||
Carrying Value | $ 750,000,000 | $ 0 | ||||||||||
Aggregate principal amount of debt issued | $ 750,000,000 | |||||||||||
Term Loan | Senior Secured Credit Facility | Operating Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.61% | |||||||||||
Carrying Value | $ 615,000,000 | |||||||||||
Percent subject to interest rate collar contract | 100.00% | |||||||||||
Term Loan | The Bridgeland And Woodlands Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt issued | $ 100,000,000 | |||||||||||
Line of Credit | The Bridgeland And Woodlands Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Facility amount | $ 250,000,000 | $ 250,000,000 | ||||||||||
Line of Credit | The Bridgeland And Woodlands Credit Facility | One-month LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin (as a percent) | 2.50% |
MORTGAGES, NOTES AND LOANS PA_8
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Summary of Recourse Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Feb. 28, 2019 | |
Debt Instrument [Line Items] | ||||
Amount | $ 4,320,166 | |||
1201 Lake Robbins | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 100.00% | |||
‘A‘ali‘i | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
250 Water Street | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 35.00% | |||
Juniper Apartments | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
Kō'ula | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
6100 Merriweather | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
Tanager | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
Lakeside Row | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
The Woodlands Warehouse | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 100.00% | |||
The Woodlands Resort & Conference Center | ||||
Debt Instrument [Line Items] | ||||
Amount | $ 62,500 | |||
The Woodlands Resort & Conference Center | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 100.00% | |||
Two Lakes Edge | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
9950 Woodloch Forest Drive | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 20.00% | |||
The Lane at Waterway | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 35.00% | |||
Lake Woodlands Crossing Retail | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 50.00% | |||
Creekside Park The Grove | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
Creekside Park West | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 25.00% | |||
Senior Notes due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount | $ 1,000,000 | $ 1,000,000 | ||
Senior Notes due 2025 | Senior Notes | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 100.00% | |||
Senior Notes due 2028 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount | $ 750,000 | $ 0 | ||
Senior Notes due 2028 | Senior Notes | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 100.00% | |||
Construction Loan Payable | Outlet Collection at Riverwalk | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Recourse % | 50.00% | |||
Recourse | ||||
Debt Instrument [Line Items] | ||||
Amount | $ 2,299,390 | |||
Recourse | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 2,184,399 | |||
Recourse | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 114,991 | |||
Recourse | 1201 Lake Robbins | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 273,070 | |||
Recourse | ‘A‘ali‘i | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 38,650 | |||
Recourse | 250 Water Street | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 35,000 | |||
Recourse | Juniper Apartments | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 16,452 | |||
Recourse | Kō'ula | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 16,320 | |||
Recourse | 6100 Merriweather | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 15,510 | |||
Recourse | Tanager | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 9,936 | |||
Recourse | Lakeside Row | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 7,892 | |||
Recourse | The Woodlands Warehouse | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 7,230 | |||
Recourse | The Woodlands Resort & Conference Center | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | $ 62,500 | |||
Recourse | Two Lakes Edge | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 16,550 | |||
Recourse | 9950 Woodloch Forest Drive | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 14,221 | |||
Recourse | The Lane at Waterway | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 7,759 | |||
Recourse | Lake Woodlands Crossing Retail | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 6,164 | |||
Recourse | Creekside Park The Grove | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 4,117 | |||
Recourse | Creekside Park West | Total recourse to TWLDC | ||||
Debt Instrument [Line Items] | ||||
Amount | 3,680 | |||
Recourse | Senior Notes due 2025 | Senior Notes | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 1,000,000 | |||
Recourse | Senior Notes due 2028 | Senior Notes | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | 750,000 | |||
Recourse | Construction Loan Payable | Outlet Collection at Riverwalk | Total recourse to HHC | ||||
Debt Instrument [Line Items] | ||||
Amount | $ 14,339 |
MORTGAGES, NOTES AND LOANS PA_9
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Contractual Obligations Based on Extended Maturity Dates) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgages, notes and loans payable principal payments | ||
2021 | $ 321,712 | |
2022 | 77,689 | |
2023 | 1,091,049 | |
2024 | 430,490 | |
2025 | 1,136,625 | |
Thereafter | 1,262,601 | |
Total principal payments | 4,320,166 | |
Unamortized deferred financing and bond issuance costs | (32,797) | |
Total mortgages, notes and loans payable | $ 4,287,369 | $ 4,096,470 |
FAIR VALUE (Assets and Liabilit
FAIR VALUE (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative liabilities | $ 51,920 | $ 40,135 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative liabilities | 51,920 | 40,135 |
Interest Rate Swap | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative liabilities | 0 | 0 |
Interest Rate Swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative liabilities | 51,920 | 40,135 |
Interest Rate Swap | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative liabilities | $ 0 | $ 0 |
FAIR VALUE (Assets and Liabil_2
FAIR VALUE (Assets and Liabilities Not Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and Restricted cash | $ 1,242,999 | $ 620,135 | $ 724,215 | $ 964,300 |
Liabilities: | ||||
Variable-rate debt | 1,945,344 | 2,229,958 | ||
Accounts receivable, allowance | 24,000 | 15,600 | ||
Notes Receivable | ||||
Liabilities: | ||||
Notes receivable, allowance | 156 | 209 | ||
Level 1 | Reported Value Measurement | ||||
Assets: | ||||
Cash and Restricted cash | 1,242,997 | 620,135 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and Restricted cash | 1,242,997 | 620,135 | ||
Level 3 | Reported Value Measurement | ||||
Assets: | ||||
Accounts receivable, net | 7,437 | 12,279 | ||
Notes receivable, net | 622 | 36,379 | ||
Level 3 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Accounts receivable, net | 7,437 | 12,279 | ||
Notes receivable, net | 622 | 36,379 | ||
Level 2 | Reported Value Measurement | ||||
Liabilities: | ||||
Fixed-rate debt | 2,374,822 | 1,908,660 | ||
Variable-rate debt | 1,945,344 | 2,229,958 | ||
Level 2 | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Fixed-rate debt | 2,461,155 | 1,949,773 | ||
Variable-rate debt | $ 1,945,344 | $ 2,229,958 |
FAIR VALUE (Non-financial Asset
FAIR VALUE (Non-financial Assets Measured at Fair Value on a Non-recurring Basis) (Details) - Fair Value, Nonrecurring $ in Thousands | Dec. 31, 2020USD ($) | Mar. 31, 2020 |
Measurement Input, Cap Rate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.100 | 0.10 |
Outlet Collection at Riverwalk | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value disclosure | $ 46,794 | |
Outlet Collection at Riverwalk | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value disclosure | 0 | |
Outlet Collection at Riverwalk | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value disclosure | 0 | |
Outlet Collection at Riverwalk | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value disclosure | $ 46,794 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)settled_derivative | Dec. 31, 2019USD ($)settled_derivative | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Agreements settled | settled_derivative | 0 | ||
Interest income | $ 2,368 | $ 9,797 | $ 8,486 |
Proceeds from derivative settlement | 0 | 0 | $ 16,104 |
Fair value derivative liabilities | 51,920 | $ 40,135 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Gain reclassification to interest expense | 3,200 | ||
Interest Rate Cap | |||
Derivative [Line Items] | |||
Agreements settled | settled_derivative | 1 | ||
Credit Risk Contract | |||
Derivative [Line Items] | |||
Fair value derivative liabilities | 54,600 | $ 41,600 | |
Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative [Line Items] | |||
Interest income | 200 | ||
Proceeds from derivative settlement | 200 | ||
Interest rate cash flow hedge loss to be reclassified during next 12 months | $ 25,100 | ||
Designated as Hedging Instrument | Interest Rate Cap | |||
Derivative [Line Items] | |||
Notional amount, asset | $ 230,000 | ||
Designated as Hedging Instrument | Settled Interest Rate Swap, One | Interest Rate Swap | |||
Derivative [Line Items] | |||
Change in fair value, recognition period | 7 years | ||
Designated as Hedging Instrument | Settled Interest Rate Swap, Two | Interest Rate Swap | |||
Derivative [Line Items] | |||
Change in fair value, recognition period | 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 ($) | Dec. 31, 2020 | May 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 21, 2018 | Sep. 18, 2018 |
Fair value of derivative instruments | ||||||
Total fair value derivative assets | $ 0 | $ 0 | ||||
Total fair value derivative liabilities | (51,920,000) | (40,135,000) | ||||
Total fair value derivatives, net | (51,920,000) | (40,135,000) | ||||
$700 Million Loan Maturity September 2023 | ||||||
Fair value of derivative instruments | ||||||
Aggregate principal amount of debt issued | $ 700,000,000 | |||||
Term Loan | $700 Million Loan Maturity September 2023 | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 4.61% | |||||
Aggregate principal amount of debt issued | 615,000,000 | $ 615,000,000 | $ 615,000,000 | |||
Construction Loans | 8770 New Trails | ||||||
Fair value of derivative instruments | ||||||
Aggregate principal amount of debt issued | 35,500,000 | |||||
Interest Rate Cap | Not Designated as Hedging Instrument | Fixed Interest Rate 5.00% Maturing October 2022 | Prepaid expenses and other assets, net | ||||||
Fair value of derivative instruments | ||||||
Notional amount, asset | $ 75,000,000 | |||||
Fixed interest rate | 5.00% | |||||
Total fair value derivative assets | $ 0 | 0 | ||||
Interest Rate Cap | Designated as Hedging Instrument | ||||||
Fair value of derivative instruments | ||||||
Notional amount, asset | 230,000,000 | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.00% To 3.00% Maturing May 2020 | Prepaid expenses and other assets, net | ||||||
Fair value of derivative instruments | ||||||
Notional amount, liability | $ 194,000,000 | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.00% To 3.00% Maturing May 2020 | Accounts payable and accrued expenses | ||||||
Fair value of derivative instruments | ||||||
Notional amount, liability | 193,967,000 | |||||
Total fair value derivative liabilities | 0 | $ (182,000) | ||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.00% To 3.00% Maturing May 2020 | Accounts payable and accrued expenses | Minimum | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 2.00% | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.00% To 3.00% Maturing May 2020 | Accounts payable and accrued expenses | Maximum | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 3.00% | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | Accounts payable and accrued expenses | ||||||
Fair value of derivative instruments | ||||||
Notional amount, liability | 354,217,000 | |||||
Total fair value derivative liabilities | $ 0 | $ (2,074,000) | ||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | Accounts payable and accrued expenses | Minimum | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 2.25% | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | Accounts payable and accrued expenses | Maximum | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 3.25% | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | Accounts payable and accrued expenses | ||||||
Fair value of derivative instruments | ||||||
Notional amount, liability | $ 381,404,000 | |||||
Total fair value derivative liabilities | $ 0 | (4,578,000) | ||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | Accounts payable and accrued expenses | Minimum | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 2.75% | |||||
Interest Rate Collar | Designated as Hedging Instrument | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | Accounts payable and accrued expenses | Maximum | ||||||
Fair value of derivative instruments | ||||||
Fixed interest rate | 3.50% | |||||
Interest Rate Swap | Designated as Hedging Instrument | Fixed Interest Rate 2.96% Maturing September 2023 | Accounts payable and accrued expenses | ||||||
Fair value of derivative instruments | ||||||
Notional amount, liability | $ 615,000,000 | |||||
Fixed interest rate | 2.96% | |||||
Total fair value derivative liabilities | $ (46,613,000) | (31,187,000) | ||||
Interest Rate Swap | Designated as Hedging Instrument | Fixed Interest Rate 4.89% Maturing January 2032 | Accounts payable and accrued expenses | ||||||
Fair value of derivative instruments | ||||||
Notional amount, liability | $ 34,918,000 | |||||
Fixed interest rate | 4.89% | |||||
Total fair value derivative liabilities | $ (5,307,000) | $ (2,114,000) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of the Company's derivative financial instruments on the income statement | |||
Total Interest Expense Presented in the Results of Operations in which the Effects of Cash Flow Hedges are Recorded | $ 132,257 | $ 105,374 | $ 82,028 |
Interest Expense | |||
Effect of the Company's derivative financial instruments on the income statement | |||
Amount of Gain (Loss) Reclassified from AOCI into Operations | (9,064) | 1,939 | 2,153 |
Interest Rate Swap | |||
Effect of the Company's derivative financial instruments on the income statement | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | (32,134) | $ (19,245) | $ 2,090 |
Amount of Gain (Loss) Reclassified from AOCI into Operations | $ 3,200 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)condominium_tower | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2020USD ($) | Jun. 14, 2018individual_or_entity | |
Commitments | ||||||
Number of individuals or entities on petition | individual_or_entity | 500 | |||||
Letters of credit outstanding | $ 5,200,000 | $ 15,400,000 | ||||
Surety bonds outstanding | 272,400,000 | 200,100,000 | ||||
Contractual rental expense | $ 7,200,000 | $ 8,500,000 | ||||
Contractual rental expense | $ 9,700,000 | |||||
Guarantor obligations, reserved percentage of residential units | 20.00% | |||||
Guarantor obligations, number of open condominium towers | condominium_tower | 3 | |||||
Guarantor obligations, number of towers under construction | condominium_tower | 2 | |||||
Waiea | ||||||
Commitments | ||||||
Charge for repairs and remediation on alleged construction defects | $ 97,900,000 | |||||
Total estimated repair costs | $ 115,400,000 | |||||
Loss contingency accrual for estimated repair costs | $ 111,300,000 | |||||
Downtown columbia | Guarantee Obligations | ||||||
Commitments | ||||||
Guarantee amount | $ 1,000,000 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 14, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 1,350,000 | |||
Cash received from stock options exercised | $ 4,638 | $ 3,535 | $ 11,748 | |
Tax benefit from exercise of stock options | $ 500 | $ 500 | $ 2,600 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum shares available for future grant (in shares) | 1,199,794 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Unamortized stock option expense | $ 2,400 | |||
Weighted-average period for recognition of unamortized expense | 3 years 6 months | |||
Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercisable period | 5 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period for recognition of unamortized expense | 3 years 1 month 6 days | |||
Weighted-average grant date fair value (in dollars per share) | $ 71.48 | $ 98.78 | $ 83.09 | |
Fair value of restricted stock vested | $ 5,600 | $ 14,900 | $ 5,500 | |
Unamortized restricted stock expense | $ 17,900 | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS (Summary of stock-based compensation expense, net of amounts capitalized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Pre-tax stock-based compensation expense | $ 4.6 | $ 18.1 | $ 9.7 |
Income tax benefit | 0.2 | 3.7 | 1.7 |
Stock Options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Pre-tax stock-based compensation expense | (1.9) | 1.4 | 2.2 |
Share based compensation costs capitalized | 0.2 | 0.4 | 2.4 |
Restricted Stock | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Pre-tax stock-based compensation expense | 6.5 | 16.7 | 7.5 |
Share based compensation costs capitalized | $ 0.9 | $ 1 | $ 1 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options | |||
Outstanding at beginning of year (in shares) | 721,496 | ||
Granted (in shares) | 41,337 | ||
Exercised (in shares) | (106,237) | ||
Forfeited (in shares) | (253,600) | ||
Expired (in shares) | (30,260) | ||
Outstanding at end of year (in shares) | 372,736 | 721,496 | |
Weighted-average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ 104.55 | ||
Granted (in dollars per share) | 74.65 | ||
Exercised (in dollars per share) | 65.91 | ||
Forfeited (in dollars per share) | 121.63 | ||
Expired (in dollars per share) | 106.39 | ||
Outstanding at end of year (in dollars per share) | $ 100.49 | $ 104.55 | |
Stock Options, Additional Disclosures | |||
Weighted average remaining contractual term of stock options outstanding | 4 years 8 months 12 days | ||
Aggregate intrinsic value | $ 1,908,239 | ||
Stock options vested and expected to vest (in shares) | 369,384 | ||
Stock options vested and expected to vest (in dollars per share) | $ 100.55 | ||
Weighted average remaining contractual term of stock options expected to vest | 4 years 8 months 12 days | ||
Aggregate intrinsic value of stock options expected to vest | $ 1,899,155 | ||
Stock options exercisable at the end of the period (in shares) | 257,899 | ||
Stock options exercisable at the end of the period (in dollars per share) | $ 99.18 | ||
Weighted average remaining contractual term of stock options exercisable | 3 years 3 months 18 days | ||
Aggregate intrinsic value of stock options exercisable | $ 1,719,245 | ||
Intrinsic value of stock options exercised | $ 2,400,000 | $ 2,400,000 | $ 12,100,000 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS (Significant Assumptions Used in Black-Scholes Option-pricing Model) (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value (in dollars per share) | $ 32.10 | $ 32.51 | $ 48.27 |
Expected life of options (in years) | 7 years 6 months | 7 years 6 months | 8 years 4 months 24 days |
Risk-free interest rate | 0.70% | 2.20% | 2.70% |
Expected volatility | 40.40% | 22.60% | 24.70% |
Expected annual dividend per share | $ 0 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS (Summary of Restricted Stock Activity) (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted stock activity | |||
Outstanding at beginning of year (in shares) | 406,802 | ||
Granted (in shares) | 181,079 | ||
Vested (in shares) | (77,276) | ||
Forfeited (in shares) | (101,495) | ||
Outstanding at end of year (in shares) | 409,110 | 406,802 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of year (in dollars per share) | $ 76.27 | ||
Granted (in dollars per share) | 71.48 | $ 98.78 | $ 83.09 |
Vested (in dollars per share) | 108.60 | ||
Forfeited (in dollars per share) | 71.06 | ||
Outstanding at end of year (in dollars per share) | $ 69.21 | $ 76.27 |
INCOME TAXES (Summary of Income
INCOME TAXES (Summary of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provision for (benefit from) income taxes | |||
Current | $ 826 | $ 1,427 | $ (703) |
Deferred income taxes | 10,827 | 27,818 | 16,195 |
Income tax expense (benefit) | $ 11,653 | $ 29,245 | $ 15,492 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 8,480 | $ 103,540 | $ 73,218 |
Tax computed at the U.S. federal statutory rate | 1,781 | 21,743 | 15,376 |
Increase (decrease) in valuation allowance, net | 11,822 | 4,419 | 8,033 |
State income taxes, net of federal income tax expense (benefit) | (2,608) | 417 | (3,713) |
Tax expense (benefit) from other change in rates, prior period adjustments and other permanent differences | 2,079 | 179 | (1,442) |
Tax expense (benefit) on equity compensation | 192 | (317) | (1,490) |
Tax expense on compensation disallowance | 1,553 | 2,804 | 1,168 |
Deconsolidation of 110 North Wacker | (4,826) | 0 | 0 |
Tax expense (benefit) on historic tax credit | 1,660 | 0 | (2,440) |
Income tax expense (benefit) | $ 11,653 | $ 29,245 | $ 15,492 |
Effective tax rate | 137.40% | 28.20% | 21.20% |
INCOME TAXES (Summary of Amount
INCOME TAXES (Summary of Amounts and Expiration Dates of Operating Loss, Charitable Contribution and Tax Credit Carryforwards) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Loss Carryforwards [Line Items] | |
Capital loss carryforwards - Federal | $ 22,866 |
Tax credit carryforwards - Historic Tax Credit | 630 |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards, subject to expiration | 119,167 |
Net operating loss carryforwards, not subject to expiration | 461,245 |
Charitable contribution carryforwards - Federal | 9,759 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards, subject to expiration | 348,027 |
Net operating loss carryforwards, not subject to expiration | $ 176,197 |
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, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities | $ 51,580 | $ 65,590 |
Operating loss and tax carryforwards | 161,701 | 132,277 |
Total deferred tax assets | 213,281 | 197,867 |
Valuation allowance | (38,065) | (29,723) |
Total net deferred tax assets | 175,216 | 168,144 |
Deferred tax liabilities: | ||
Property associated with MPCs, primarily differences in the tax basis of land assets and treatment of interest and other costs | (163,836) | (163,024) |
Operating and Strategic Developments properties, primarily differences in basis of assets and liabilities | (100,564) | (67,125) |
Deferred income | (98,455) | (118,743) |
Total deferred tax liabilities | (362,855) | (348,892) |
Total net deferred tax liabilities | $ (187,639) | $ (180,748) |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Interest expense and penalties related to unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
WARRANTS (Details)
WARRANTS (Details) - Management Warrants - USD ($) $ / shares in Units, $ in Millions | Oct. 07, 2016 | Oct. 04, 2017 | Jun. 16, 2017 |
Chief Financial Officer | |||
Sponsors and Management Warrants | |||
Number of shares called by warrants (in shares) | 50,125 | ||
Exercise price (in dollars per share) | $ 112.08 | ||
Proceeds from issuance of management warrants | $ 1 | ||
Chief Executive Officer | |||
Sponsors and Management Warrants | |||
Number of shares called by warrants (in shares) | 1,965,409 | ||
Exercise price (in dollars per share) | $ 124.64 | ||
Total warrant price | $ 50 | ||
President | |||
Sponsors and Management Warrants | |||
Number of shares called by warrants (in shares) | 87,951 | ||
Exercise price (in dollars per share) | $ 117.01 | ||
Total warrant price | $ 2 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Summary of Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | $ 3,332,988 | $ 3,238,126 | $ 3,188,551 | |
Other comprehensive income (loss) before reclassifications | (32,134) | (19,318) | 2,120 | |
(Gain) loss reclassified from accumulated other comprehensive loss to net income | 9,064 | (1,939) | (2,153) | |
Adoption of ASU 2018-02 | [1] | 0 | 0 | (1,148) |
Pension adjustment | [2] | (84) | 11 | 759 |
Share of investee's other comprehensive income, net of tax of $285 | [3] | 1,002 | 0 | 0 |
Deconsolidation of 110 North Wacker | 12,934 | |||
Net current-period other comprehensive income (loss) | (9,218) | (21,246) | (1,161) | |
Balance at the end of the period | 3,715,023 | 3,332,988 | 3,238,126 | |
Share of investee's other comprehensive income, tax expense | 285 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | [4] | (18) | ||
Balance at the end of the period | [4] | (18) | ||
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | (29,372) | (8,126) | (6,965) | |
Adoption of ASU 2018-02 | (1,148) | |||
Pension adjustment | (84) | 11 | 759 | |
Share of investee's other comprehensive income, net of tax of $285 | 1,002 | |||
Balance at the end of the period | $ (38,590) | $ (29,372) | (8,126) | |
AOCI Attributable to Parent | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at the beginning of the period | $ (739) | |||
[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 | |||
[2] | The deferred tax impact is not meaningful for the years ended December 31, 2020 and 2019. Amount is net of deferred tax expense of $0.5 million for the year ended December 31, 2018. | |||
[3] | The amount for 2020 is shown net of deferred tax expense of $0.3 million. | |||
[4] | Related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) and all its related amendments as of January 1, 2020. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (Summary of Amounts Reclassified Out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassifications out of accumulated other comprehensive income (loss) | |||
Interest expense | $ 132,257 | $ 105,374 | $ 82,028 |
Income tax expense (benefit) | 11,653 | 29,245 | 15,492 |
Total reclassifications of (income) loss for the period | 3,173 | (74,295) | $ (57,726) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Total reclassifications of (income) loss for the period | 9,064 | (1,939) | |
(Gain) loss reclassified from accumulated other comprehensive loss to net income | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Interest expense | 11,356 | (2,855) | |
Income tax expense (benefit) | $ (2,292) | $ 916 |
EARNINGS PER SHARE - (Informati
EARNINGS PER SHARE - (Information Related to EPS Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income (loss) | |||
Net income | $ (3,173) | $ 74,295 | $ 57,726 |
Net (income) loss attributable to noncontrolling interests | (22,981) | (339) | (714) |
Net income (loss) attributable to common stockholders | $ (26,154) | $ 73,956 | $ 57,012 |
Shares | |||
Weighted average basic common shares outstanding (in shares) | 52,522 | 43,136 | 43,036 |
Restricted stock and stock options (in shares) | 0 | 168 | 201 |
Warrants (in shares) | 0 | 4 | 0 |
Weighted average diluted common shares outstanding (in shares) | 52,522 | 43,308 | 43,237 |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Basic income per share: (in dollars per share) | $ (0.50) | $ 1.71 | $ 1.32 |
Diluted income per share: (in dollars per share) | $ (0.50) | $ 1.71 | $ 1.32 |
EARNINGS PER SHARE - (Narrative
EARNINGS PER SHARE - (Narrative) (Details) $ / shares in Units, $ in Millions | Mar. 31, 2020shares | Mar. 31, 2020USD ($) | Mar. 27, 2020$ / sharesshares | Feb. 23, 2018USD ($)$ / sharesshares | Dec. 31, 2020transaction$ / shares | Dec. 31, 2020USD ($)transaction$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 12,270,900 | 2,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 50 | |||||||
Sale of stock, consideration received on transaction | $ | $ 593.6 | |||||||
Shares repurchased (in shares) | 475,920 | 496,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Number of transactions with unaffiliated entity | transaction | 13 | 13 | ||||||
Treasury stock activity | $ | $ 57.3 | $ 53.9 | ||||||
Treasury stock acquired (in dollars per share) | $ / shares | $ 120.33 | $ 108.71 | ||||||
Over-Allotment Option | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 300,000 | |||||||
Additional Over-Allotment Option | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 270,900 | |||||||
Private Placement | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 10,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 50 | |||||||
Stock Options | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 394,008 | 379,608 | 425,908 | |||||
Restricted Stock | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 271,371 | 235,894 | 205,979 |
REVENUES (Schedule of Disaggreg
REVENUES (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Rental revenue | $ 323,182 | $ 278,806 | |
Rental revenue | $ 257,308 | ||
Total revenues | 699,489 | 1,300,539 | 1,064,537 |
Recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 271,259 | 814,767 | 646,710 |
Operating Assets | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 372,057 | 400,131 | 348,242 |
Master Planned Communities | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 283,953 | 386,781 | 309,451 |
Seaport District | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 23,814 | 55,645 | 32,632 |
Strategic Developments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 19,407 | 457,948 | 374,212 |
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 258 | 34 | 0 |
Condominium rights and unit sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,143 | 448,940 | 357,720 |
Condominium rights and unit sales | Recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,143 | 448,940 | 357,720 |
Master Planned Communities land sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 233,044 | 330,146 | 261,905 |
Master Planned Communities land sales | Recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 233,044 | 330,146 | 261,905 |
Builder price participation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 37,072 | 35,681 | 27,085 |
Builder price participation | Recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 37,072 | 35,681 | 27,085 |
Other land, rental and property revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 105,048 | 206,966 | 160,519 |
Other land, rental and property revenues | Recognized at a point in time and/or over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 105,048 | $ 206,966 | $ 160,519 |
REVENUES (Schedule of Contract
REVENUES (Schedule of Contract with Customer, Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Liabilities | ||
Beginning balance | $ 246,010 | $ 296,496 |
Consideration earned during the period | (55,696) | (490,137) |
Consideration received during the period | 170,102 | 439,651 |
Ending balance | $ 360,416 | $ 246,010 |
REVENUES (Schedule of Remaining
REVENUES (Schedule of Remaining Unsatisfied Performance Obligations) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 1,700,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 589,860 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 521,957 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 628,837 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease termination period | 1 year |
COVID-19 related rent deferrals | $ 4.8 |
Average remaining term of lease | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining lease term | 1 year |
Lease renewal term | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining lease term | 52 years |
Lease renewal term | 41 years |
LEASES (Leased Assets and Liabi
LEASES (Leased Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||
Operating lease right-of-use assets | $ 66,490 | $ 69,398 |
Riverwalk impairment | (10,235) | 0 |
Total leased assets | 56,255 | 69,398 |
Liabilities | ||
Operating lease liabilities | $ 68,929 | $ 70,413 |
LEASES (Lease Costs) (Details)
LEASES (Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 8,720 | $ 9,082 |
Variable lease costs | 958 | 1,682 |
Net lease cost | $ 9,678 | $ 10,764 |
LEASES (Lease Liability Maturit
LEASES (Lease Liability Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 6,853 | |
2022 | 6,507 | |
2023 | 6,464 | |
2024 | 6,432 | |
2025 | 5,047 | |
Thereafter | 261,805 | |
Total lease payments | 293,108 | |
Less: imputed interest | (224,179) | |
Present value of lease liabilities | $ 68,929 | $ 70,413 |
LEASES (Other Information) (Det
LEASES (Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows on operating leases | $ 7,235 | $ 6,980 |
Weighted-average remaining lease term (years) | ||
Operating leases | 37 years 1 month 6 days | 37 years |
Weighted-average discount rate | ||
Operating leases | 7.80% | 7.80% |
LEASES (Minimum Rent Payments)
LEASES (Minimum Rent Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Total Minimum Rent Payments | $ 213,072 | $ 218,740 |
2021 | 221,374 | |
2022 | 220,296 | |
2023 | 199,858 | |
2024 | 187,942 | |
2025 | 158,817 | |
Thereafter | 778,057 | |
Total | $ 1,766,344 |
SEGMENTS (Summary of Segment Op
SEGMENTS (Summary of Segment Operating Results) (Details) ft² in Thousands | Aug. 18, 2020USD ($) | Dec. 31, 2020USD ($)ft²locationsegment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Segments reporting | ||||
Number of operating segments | segment | 4 | |||
Number of operating locations | location | 2 | |||
Total revenues | $ 699,489,000 | $ 1,300,539,000 | $ 1,064,537,000 | |
Depreciation and amortization | (217,467,000) | (155,798,000) | (126,565,000) | |
Other income (loss), net | 130,000 | 12,179,000 | (936,000) | |
Equity in earnings (losses) from real estate and other affiliates | 271,099,000 | 30,629,000 | 39,954,000 | |
Gain (loss) on sale or disposal of real estate and other assets, net | 59,942,000 | 22,362,000 | (4,000) | |
Selling profit from sales-type leases | 0 | 13,537,000 | ||
Gain (loss) on extinguishment of debt | $ (13,200,000) | (13,169,000) | 4,641,000 | 0 |
Provision for impairment | (48,738,000) | 0 | 0 | |
Income (loss) before income taxes | 8,480,000 | 103,540,000 | 73,218,000 | |
Net income (loss) | (3,173,000) | 74,295,000 | 57,726,000 | |
Net (income) loss attributable to noncontrolling interests | (22,981,000) | (339,000) | (714,000) | |
Net income (loss) attributable to common stockholders | (26,154,000) | 73,956,000 | 57,012,000 | |
Operating Assets Segment | ||||
Segments reporting | ||||
Total revenues | 372,057,000 | 400,131,000 | 348,242,000 | |
MPC Segment | ||||
Segments reporting | ||||
Total revenues | $ 283,953,000 | 386,781,000 | 309,451,000 | |
Seaport District Segment | ||||
Segments reporting | ||||
Area of real estate property | ft² | 453 | |||
Number of primary locations | location | 3 | |||
Total revenues | $ 23,814,000 | 55,645,000 | 32,632,000 | |
Strategic Developments Segment | ||||
Segments reporting | ||||
Total revenues | 19,407,000 | 457,948,000 | 374,212,000 | |
Operating Segments | ||||
Segments reporting | ||||
Total revenues | 699,231,000 | 1,300,505,000 | 1,064,537,000 | |
Total operating expenses | (495,349,000) | (840,514,000) | (668,484,000) | |
Operating income | 203,882,000 | 459,991,000 | 396,053,000 | |
Depreciation and amortization | (210,836,000) | (147,777,000) | (119,309,000) | |
Interest expense (income), net | (61,024,000) | (50,554,000) | (25,865,000) | |
Other income (loss), net | 89,000 | 2,552,000 | (3,972,000) | |
Equity in earnings (losses) from real estate and other affiliates | 271,099,000 | 30,629,000 | 39,937,000 | |
Gain (loss) on sale or disposal of real estate and other assets, net | 59,942,000 | 27,113,000 | (4,000) | |
Selling profit from sales-type leases | 0 | 13,537,000 | ||
Gain (loss) on extinguishment of debt | (13,169,000) | 4,851,000 | ||
Provision for impairment | (48,738,000) | |||
Income (loss) before income taxes | 201,245,000 | 340,342,000 | 286,840,000 | |
Operating Segments | Operating Assets Segment | ||||
Segments reporting | ||||
Total revenues | 372,057,000 | 400,131,000 | 348,242,000 | |
Total operating expenses | (185,480,000) | (187,322,000) | (164,445,000) | |
Operating income | 186,577,000 | 212,809,000 | 183,797,000 | |
Depreciation and amortization | (162,324,000) | (115,499,000) | (103,293,000) | |
Interest expense (income), net | (91,411,000) | (81,029,000) | (71,551,000) | |
Other income (loss), net | 540,000 | 1,142,000 | (7,107,000) | |
Equity in earnings (losses) from real estate and other affiliates | (7,366,000) | 3,672,000 | 1,994,000 | |
Gain (loss) on sale or disposal of real estate and other assets, net | 38,232,000 | 0 | (4,000) | |
Selling profit from sales-type leases | 0 | 13,537,000 | ||
Gain (loss) on extinguishment of debt | (1,521,000) | 0 | ||
Provision for impairment | (48,738,000) | |||
Income (loss) before income taxes | (86,011,000) | 34,632,000 | 3,836,000 | |
Operating Segments | Operating Assets Segment | Hospitality revenues | ||||
Segments reporting | ||||
Total revenues | 35,200,000 | 87,900,000 | 82,000,000 | |
Total operating expenses | (32,300,000) | (60,200,000) | (59,200,000) | |
Operating Segments | MPC Segment | ||||
Segments reporting | ||||
Total revenues | 283,953,000 | 386,781,000 | 309,451,000 | |
Total operating expenses | (128,597,000) | (183,472,000) | (163,517,000) | |
Operating income | 155,356,000 | 203,309,000 | 145,934,000 | |
Depreciation and amortization | (365,000) | (424,000) | (243,000) | |
Interest expense (income), net | 36,587,000 | 32,019,000 | 26,919,000 | |
Other income (loss), net | 0 | 601,000 | 18,000 | |
Equity in earnings (losses) from real estate and other affiliates | 17,845,000 | 28,336,000 | 36,284,000 | |
Gain (loss) on sale or disposal of real estate and other assets, net | 0 | 0 | 0 | |
Selling profit from sales-type leases | 0 | 0 | ||
Gain (loss) on extinguishment of debt | 0 | 0 | ||
Provision for impairment | 0 | |||
Income (loss) before income taxes | 209,423,000 | 263,841,000 | 208,912,000 | |
Operating Segments | Seaport District Segment | ||||
Segments reporting | ||||
Total revenues | 23,814,000 | 55,645,000 | 32,632,000 | |
Total operating expenses | (46,112,000) | (77,872,000) | (49,716,000) | |
Operating income | (22,298,000) | (22,227,000) | (17,084,000) | |
Depreciation and amortization | (41,602,000) | (26,381,000) | (12,466,000) | |
Interest expense (income), net | (12,512,000) | (12,865,000) | 6,291,000 | |
Other income (loss), net | (2,616,000) | (22,000) | 102,000 | |
Equity in earnings (losses) from real estate and other affiliates | (9,292,000) | (2,592,000) | (705,000) | |
Gain (loss) on sale or disposal of real estate and other assets, net | 0 | (6,000) | 0 | |
Selling profit from sales-type leases | 0 | 0 | ||
Gain (loss) on extinguishment of debt | (11,648,000) | 4,851,000 | ||
Provision for impairment | 0 | |||
Income (loss) before income taxes | (99,968,000) | (59,242,000) | (23,862,000) | |
Operating Segments | Strategic Developments Segment | ||||
Segments reporting | ||||
Total revenues | 19,407,000 | 457,948,000 | 374,212,000 | |
Total operating expenses | (135,160,000) | (391,848,000) | (290,806,000) | |
Operating income | (115,753,000) | 66,100,000 | 83,406,000 | |
Depreciation and amortization | (6,545,000) | (5,473,000) | (3,307,000) | |
Interest expense (income), net | 6,312,000 | 11,321,000 | 12,476,000 | |
Other income (loss), net | 2,165,000 | 831,000 | 3,015,000 | |
Equity in earnings (losses) from real estate and other affiliates | 269,912,000 | 1,213,000 | 2,364,000 | |
Gain (loss) on sale or disposal of real estate and other assets, net | 21,710,000 | 27,119,000 | 0 | |
Selling profit from sales-type leases | 0 | 0 | ||
Gain (loss) on extinguishment of debt | 0 | 0 | ||
Provision for impairment | 0 | |||
Income (loss) before income taxes | 177,801,000 | 101,111,000 | 97,954,000 | |
Corporate | ||||
Segments reporting | ||||
Corporate expenses and other items | $ (204,418,000) | $ (266,047,000) | $ (229,114,000) | |
Tin Building | Seaport District Segment | ||||
Segments reporting | ||||
Area of real estate property | ft² | 53 |
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, 2020 | Dec. 31, 2019 |
Reconciliation of total segment assets to total assets | ||
Assets | $ 9,140,332 | $ 8,413,766 |
Operating Segments | ||
Reconciliation of total segment assets to total assets | ||
Assets | 8,278,491 | 8,113,418 |
Operating Segments | Operating Assets | ||
Reconciliation of total segment assets to total assets | ||
Assets | 3,936,119 | 3,476,718 |
Operating Segments | Master Planned Communities | ||
Reconciliation of total segment assets to total assets | ||
Assets | 2,285,896 | 2,166,472 |
Operating Segments | Seaport District | ||
Reconciliation of total segment assets to total assets | ||
Assets | 924,245 | 930,067 |
Operating Segments | Strategic Developments | ||
Reconciliation of total segment assets to total assets | ||
Assets | 1,132,231 | 1,540,161 |
Corporate | ||
Reconciliation of total segment assets to total assets | ||
Assets | $ 861,841 | $ 300,348 |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMLATED DEPRECIATION (Information by Property) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | $ 2,570,166 | ||||
Encumbrances | 4,287,369 | ||||
Unamortized bond issuance costs | (4,355) | $ (5,249) | |||
Unamortized deferred financing costs | (28,442) | (36,899) | |||
Initial Cost | |||||
Land | 2,570,176 | ||||
Land | 2,571,061 | ||||
Buildings and Improvements | 3,372,534 | ||||
Buildings and Improvements | 3,373,561 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (519,210) | ||||
Land | (520,095) | ||||
Buildings and Improvements | 1,869,420 | ||||
Building Improvements | 1,894,606 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,050,966 | ||||
Land | 2,050,966 | ||||
Buildings and Improvements | 5,241,954 | ||||
Building Improvements | 5,268,167 | ||||
Total | 7,292,920 | ||||
Total | 7,319,133 | 7,268,288 | $ 6,163,287 | $ 5,355,409 | |
Accumulated Depreciation | (618,122) | ||||
Accumulated Depreciation | (634,064) | $ (507,933) | $ (380,892) | $ (321,882) | |
Aggregate cost of land, building and improvements for federal income tax purposes | 6,200,000 | ||||
Amount outstanding | 4,320,166 | ||||
Bridgeland | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 75,000 | ||||
Initial Cost | |||||
Land | 260,223 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 226,644 | ||||
Buildings and Improvements | 4,464 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 486,867 | ||||
Buildings and Improvements | 4,464 | ||||
Total | 491,331 | ||||
Accumulated Depreciation | (508) | ||||
Lakeland Village Center at Bridgeland | |||||
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 | 3,399 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,404 | ||||
Buildings and Improvements | 14,534 | ||||
Total | 16,938 | ||||
Accumulated Depreciation | (2,035) | ||||
Lakeside Row | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 31,566 | ||||
Initial Cost | |||||
Land | 812 | ||||
Buildings and Improvements | 42,875 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | (1) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 812 | ||||
Buildings and Improvements | 42,874 | ||||
Total | 43,686 | ||||
Accumulated Depreciation | (1,953) | ||||
Columbia | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 457,552 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (440,927) | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 16,625 | ||||
Buildings and Improvements | 0 | ||||
Total | 16,625 | ||||
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 | 28,185 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 24,685 | ||||
Buildings and Improvements | 123,009 | ||||
Total | 147,694 | ||||
Accumulated Depreciation | (24,724) | ||||
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 | (769) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,175 | ||||
Buildings and Improvements | 14,144 | ||||
Total | 15,319 | ||||
Accumulated Depreciation | (6,095) | ||||
Columbia Regional Building | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 24,244 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 28,865 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 2,357 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 31,222 | ||||
Total | 31,222 | ||||
Accumulated Depreciation | (6,085) | ||||
Juniper Apartments | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 65,808 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 3,923 | ||||
Buildings and Improvements | 108,771 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 3,923 | ||||
Buildings and Improvements | 108,771 | ||||
Total | 112,694 | ||||
Accumulated Depreciation | (2,973) | ||||
Lakefront District | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 400 | ||||
Buildings and Improvements | 80,053 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (400) | ||||
Buildings and Improvements | (53,682) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 26,371 | ||||
Total | 26,371 | ||||
Accumulated Depreciation | 0 | ||||
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 | 81,654 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 81,654 | ||||
Total | 81,654 | ||||
Accumulated Depreciation | 0 | ||||
Merriweather District Area 3 Standalone Restaurant | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 337 | ||||
Buildings and Improvements | 16,268 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 337 | ||||
Buildings and Improvements | 16,268 | ||||
Total | 16,605 | ||||
Accumulated Depreciation | (28) | ||||
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 | 1,170 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 7,822 | ||||
Buildings and Improvements | 11,988 | ||||
Total | 19,810 | ||||
Accumulated Depreciation | (1,425) | ||||
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 | 15,417 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,433 | ||||
Buildings and Improvements | 74,353 | ||||
Total | 75,786 | ||||
Accumulated Depreciation | (9,039) | ||||
Two Merriweather | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 1,019 | ||||
Buildings and Improvements | 4,931 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 33,856 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,019 | ||||
Buildings and Improvements | 38,787 | ||||
Total | 39,806 | ||||
Accumulated Depreciation | (3,943) | ||||
6100 Merriweather | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 62,040 | ||||
Initial Cost | |||||
Land | 2,550 | ||||
Buildings and Improvements | 112,669 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,550 | ||||
Buildings and Improvements | 112,669 | ||||
Total | 115,219 | ||||
Accumulated Depreciation | (3,893) | ||||
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 | 2,662 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 15,913 | ||||
Buildings and Improvements | 10,799 | ||||
Total | 26,712 | ||||
Accumulated Depreciation | (3,985) | ||||
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 | 14,536 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 22,177 | ||||
Total | 22,177 | ||||
Accumulated Depreciation | 0 | ||||
Tin Building | |||||
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 | 98,404 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 106,694 | ||||
Total | 106,694 | ||||
Accumulated Depreciation | 0 | ||||
Pier 17 | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 468,476 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 3,423 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 471,899 | ||||
Total | 471,899 | ||||
Accumulated Depreciation | (44,371) | ||||
Seaport District Historic Area / 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 | 114,830 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 122,714 | ||||
Total | 122,714 | ||||
Accumulated Depreciation | (17,830) | ||||
250 Water Street | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 100,000 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 179,471 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 370 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 179,841 | ||||
Total | 179,841 | ||||
Accumulated Depreciation | 0 | ||||
Aristocrat | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 37,093 | ||||
Initial Cost | |||||
Land | 5,004 | ||||
Buildings and Improvements | 34,588 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 159 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 5,004 | ||||
Buildings and Improvements | 34,747 | ||||
Total | 39,751 | ||||
Accumulated Depreciation | (2,866) | ||||
Constellation Apartments | |||||
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 | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 3,069 | ||||
Buildings and Improvements | 39,759 | ||||
Total | 42,828 | ||||
Accumulated Depreciation | (4,666) | ||||
Downtown Summerlin | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 2,121 | ||||
Initial Cost | |||||
Land | 30,855 | ||||
Buildings and Improvements | 364,100 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 26,050 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 30,855 | ||||
Buildings and Improvements | 390,150 | ||||
Total | 421,005 | ||||
Accumulated Depreciation | (80,563) | ||||
Hockey Ground Lease [Member] | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 113 | ||||
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 | (183) | ||||
Las Vegas Ballpark | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 48,459 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 179 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 5,318 | ||||
Buildings and Improvements | 124,212 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 5,318 | ||||
Buildings and Improvements | 124,391 | ||||
Total | 129,709 | ||||
Accumulated Depreciation | (11,484) | ||||
Two Summerlin | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 87 | ||||
Initial Cost | |||||
Land | 3,037 | ||||
Buildings and Improvements | 47,104 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 1,923 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 3,037 | ||||
Buildings and Improvements | 49,027 | ||||
Total | 52,064 | ||||
Accumulated Depreciation | (3,844) | ||||
Summerlin | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 31,520 | ||||
Initial Cost | |||||
Land | 990,179 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (101,227) | ||||
Buildings and Improvements | 701 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 888,952 | ||||
Buildings and Improvements | 701 | ||||
Total | 889,653 | ||||
Accumulated Depreciation | (354) | ||||
Tanager Apartments | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 39,922 | ||||
Initial Cost | |||||
Land | 9,633 | ||||
Buildings and Improvements | 55,858 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 9,633 | ||||
Buildings and Improvements | 55,858 | ||||
Total | 65,491 | ||||
Accumulated Depreciation | (2,813) | ||||
Creekside Park Apartments | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 37,730 | ||||
Initial Cost | |||||
Land | 729 | ||||
Buildings and Improvements | 40,116 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 31 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 729 | ||||
Buildings and Improvements | 40,147 | ||||
Total | 40,876 | ||||
Accumulated Depreciation | (3,168) | ||||
Creekside Park The Grove | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 16,468 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 38,771 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 38,771 | ||||
Total | 38,771 | ||||
Accumulated Depreciation | 0 | ||||
Creekside Park West | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 14,719 | ||||
Initial Cost | |||||
Land | 1,228 | ||||
Buildings and Improvements | 17,922 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,228 | ||||
Buildings and Improvements | 17,922 | ||||
Total | 19,150 | ||||
Accumulated Depreciation | (677) | ||||
Creekside Village Green | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 17,051 | ||||
Initial Cost | |||||
Land | 2,551 | ||||
Buildings and Improvements | 33,822 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (1,228) | ||||
Buildings and Improvements | (17,980) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,323 | ||||
Buildings and Improvements | 15,842 | ||||
Total | 17,165 | ||||
Accumulated Depreciation | (2,978) | ||||
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 | 36,503 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,818 | ||||
Buildings and Improvements | 43,255 | ||||
Total | 45,073 | ||||
Accumulated Depreciation | (7,671) | ||||
HHC 242 Self-Storage | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
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 | (809) | ||||
HHC 2978 Self-Storage | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
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 | (740) | ||||
One Hughes Landing | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 50,815 | ||||
Initial Cost | |||||
Land | 1,678 | ||||
Buildings and Improvements | 34,761 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 394 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,678 | ||||
Buildings and Improvements | 35,155 | ||||
Total | 36,833 | ||||
Accumulated Depreciation | (10,654) | ||||
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 | (3,899) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,269 | ||||
Buildings and Improvements | 31,051 | ||||
Total | 32,320 | ||||
Accumulated Depreciation | (7,924) | ||||
Three Hughes Landing | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 2,626 | ||||
Buildings and Improvements | 46,372 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 32,097 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,626 | ||||
Buildings and Improvements | 78,469 | ||||
Total | 81,095 | ||||
Accumulated Depreciation | (12,324) | ||||
1725 Hughes Landing Boulevard | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 56,772 | ||||
Initial Cost | |||||
Land | 1,351 | ||||
Buildings and Improvements | 36,764 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 38,448 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,351 | ||||
Buildings and Improvements | 75,212 | ||||
Total | 76,563 | ||||
Accumulated Depreciation | (18,671) | ||||
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 | (372) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 3,709 | ||||
Buildings and Improvements | 97,279 | ||||
Total | 100,988 | ||||
Accumulated Depreciation | (22,033) | ||||
Hughes Landing Daycare | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 138 | ||||
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 | 138 | ||||
Buildings and Improvements | 0 | ||||
Total | 138 | ||||
Accumulated Depreciation | 0 | ||||
Hughes Landing Retail | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 34,328 | ||||
Initial Cost | |||||
Land | 5,184 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 33,103 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 5,184 | ||||
Buildings and Improvements | 33,103 | ||||
Total | 38,287 | ||||
Accumulated Depreciation | (7,524) | ||||
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 | 459 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,663 | ||||
Buildings and Improvements | 4,184 | ||||
Total | 5,847 | ||||
Accumulated Depreciation | (711) | ||||
Lake Woodlands Crossing Retail | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 12,329 | ||||
Initial Cost | |||||
Land | 5,122 | ||||
Buildings and Improvements | 11,440 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 65 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 5,122 | ||||
Buildings and Improvements | 11,505 | ||||
Total | 16,627 | ||||
Accumulated Depreciation | (938) | ||||
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 | 1,210 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 3,755 | ||||
Buildings and Improvements | 1,210 | ||||
Total | 4,965 | ||||
Accumulated Depreciation | (286) | ||||
Lakefront North | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 10,260 | ||||
Buildings and Improvements | 39,357 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 11,437 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 10,260 | ||||
Buildings and Improvements | 50,794 | ||||
Total | 61,054 | ||||
Accumulated Depreciation | (3,366) | ||||
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 | 418 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,057 | ||||
Buildings and Improvements | 82,186 | ||||
Total | 83,243 | ||||
Accumulated Depreciation | (13,425) | ||||
Two Lakes Edge | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 66,198 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 1,870 | ||||
Buildings and Improvements | 95,653 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,870 | ||||
Buildings and Improvements | 95,653 | ||||
Total | 97,523 | ||||
Accumulated Depreciation | (2,826) | ||||
Millennium Six Pines Apartments | |||||
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 | 514 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 11,225 | ||||
Buildings and Improvements | 55,138 | ||||
Total | 66,363 | ||||
Accumulated Depreciation | (8,942) | ||||
Millennium Waterway Apartments | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 51,946 | ||||
Initial Cost | |||||
Land | 15,917 | ||||
Buildings and Improvements | 56,002 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 2,941 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 15,917 | ||||
Buildings and Improvements | 58,943 | ||||
Total | 74,860 | ||||
Accumulated Depreciation | (20,035) | ||||
The Lane at Waterway | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 22,167 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 2,029 | ||||
Buildings and Improvements | 39,246 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,029 | ||||
Buildings and Improvements | 39,246 | ||||
Total | 41,275 | ||||
Accumulated Depreciation | (134) | ||||
8770 New Trails | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 35,417 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 2,204 | ||||
Buildings and Improvements | 34,989 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,204 | ||||
Buildings and Improvements | 34,989 | ||||
Total | 37,193 | ||||
Accumulated Depreciation | (1,483) | ||||
9303 New Trails | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 10,763 | ||||
Initial Cost | |||||
Land | 1,929 | ||||
Buildings and Improvements | 11,915 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 1,322 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,929 | ||||
Buildings and Improvements | 13,237 | ||||
Total | 15,166 | ||||
Accumulated Depreciation | (3,125) | ||||
3831 Technology Forest Drive | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 20,686 | ||||
Initial Cost | |||||
Land | 514 | ||||
Buildings and Improvements | 14,194 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 1,813 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 514 | ||||
Buildings and Improvements | 16,007 | ||||
Total | 16,521 | ||||
Accumulated Depreciation | (4,824) | ||||
20/25 Waterway Avenue | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 12,855 | ||||
Initial Cost | |||||
Land | 2,346 | ||||
Buildings and Improvements | 8,871 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | (83) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 2,346 | ||||
Buildings and Improvements | 8,788 | ||||
Total | 11,134 | ||||
Accumulated Depreciation | (2,320) | ||||
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 | 997 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,341 | ||||
Buildings and Improvements | 5,252 | ||||
Total | 6,593 | ||||
Accumulated Depreciation | (1,449) | ||||
3 Waterway Square | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 46,224 | ||||
Initial Cost | |||||
Land | 748 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 40,386 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 748 | ||||
Buildings and Improvements | 40,386 | ||||
Total | 41,134 | ||||
Accumulated Depreciation | (12,926) | ||||
4 Waterway Square | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 31,519 | ||||
Initial Cost | |||||
Land | 1,430 | ||||
Buildings and Improvements | 51,553 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 6,208 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,430 | ||||
Buildings and Improvements | 57,761 | ||||
Total | 59,191 | ||||
Accumulated Depreciation | (17,736) | ||||
The Westin at the Woodlands | |||||
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 | 94,634 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,953 | ||||
Buildings and Improvements | 94,634 | ||||
Total | 96,587 | ||||
Accumulated Depreciation | (14,750) | ||||
The Woodlands | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 75,000 | ||||
Initial Cost | |||||
Land | 269,411 | ||||
Buildings and Improvements | 9,814 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (92,069) | ||||
Buildings and Improvements | 7,625 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 177,342 | ||||
Buildings and Improvements | 17,439 | ||||
Total | 194,781 | ||||
Accumulated Depreciation | (392) | ||||
The Woodlands Ground Leases | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 1,770 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 3,257 | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 5,027 | ||||
Buildings and Improvements | 0 | ||||
Total | 5,027 | ||||
Accumulated Depreciation | 0 | ||||
The 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 | 12,022 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 7,386 | ||||
Buildings and Improvements | 12,022 | ||||
Total | 19,408 | ||||
Accumulated Depreciation | (2,173) | ||||
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 | 655 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 655 | ||||
Total | 655 | ||||
Accumulated Depreciation | (118) | ||||
The Woodlands Resort & 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 | 78,367 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 13,258 | ||||
Buildings and Improvements | 116,350 | ||||
Total | 129,608 | ||||
Accumulated Depreciation | (26,496) | ||||
Amount outstanding | $ 62,500 | ||||
The Woodlands Towers at the Waterway | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 344,176 | ||||
Initial Cost | |||||
Land | 11,044 | ||||
Buildings and Improvements | 437,561 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 11,860 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 11,044 | ||||
Buildings and Improvements | 449,421 | ||||
Total | 460,465 | ||||
Accumulated Depreciation | (14,144) | ||||
The Woodlands Warehouse | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 7,230 | ||||
Initial Cost | |||||
Land | 4,480 | ||||
Buildings and Improvements | 4,389 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 4,480 | ||||
Buildings and Improvements | 4,389 | ||||
Total | 8,869 | ||||
Accumulated Depreciation | (179) | ||||
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 | 15,531 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 1,570 | ||||
Buildings and Improvements | 15,531 | ||||
Total | 17,101 | ||||
Accumulated Depreciation | (5,206) | ||||
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 | 18,448 | ||||
Buildings and Improvements | 8 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 117,732 | ||||
Buildings and Improvements | 8 | ||||
Total | 117,740 | ||||
Accumulated Depreciation | 0 | ||||
‘A‘ali‘i | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 154,601 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 298,825 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 298,825 | ||||
Total | 298,825 | ||||
Accumulated Depreciation | (3,123) | ||||
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 | (83,884) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 1,162 | ||||
Total | 1,162 | ||||
Accumulated Depreciation | (58) | ||||
Anaha | |||||
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 | (46,353) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 1,097 | ||||
Total | 1,097 | ||||
Accumulated Depreciation | (85) | ||||
Ke Kilohana | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 152 | ||||
Buildings and Improvements | 12,842 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (152) | ||||
Buildings and Improvements | (12,186) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 656 | ||||
Total | 656 | ||||
Accumulated Depreciation | (27) | ||||
Kewalo Basin Harbor | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 11,562 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 24,116 | ||||
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 | 24,116 | ||||
Total | 24,116 | ||||
Accumulated Depreciation | (2,462) | ||||
Kō'ula | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 65,282 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 130,728 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 130,728 | ||||
Total | 130,728 | ||||
Accumulated Depreciation | (2,726) | ||||
Waiea | |||||
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 | (16,849) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 3,963 | ||||
Total | 3,963 | ||||
Accumulated Depreciation | (131) | ||||
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 | 73,443 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 97,512 | ||||
Total | 97,512 | ||||
Accumulated Depreciation | (5,071) | ||||
Ward Village Retail | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 285,295 | ||||
Initial Cost | |||||
Land | 164,007 | ||||
Buildings and Improvements | 89,321 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (76,252) | ||||
Buildings and Improvements | 293,486 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 87,755 | ||||
Buildings and Improvements | 382,807 | ||||
Total | 470,562 | ||||
Accumulated Depreciation | (96,682) | ||||
Century Park | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 0 | ||||
Initial Cost | |||||
Land | 19,816 | ||||
Buildings and Improvements | 36,763 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | 0 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 19,816 | ||||
Buildings and Improvements | 36,763 | ||||
Total | 56,579 | ||||
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 | (10,218) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 57,017 | ||||
Total | 57,017 | ||||
Accumulated Depreciation | (365) | ||||
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 | 28,657 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 28,657 | ||||
Total | 28,657 | ||||
Accumulated Depreciation | 0 | ||||
Outlet Collection at Riverwalk | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 28,679 | ||||
Initial Cost | |||||
Land | 0 | ||||
Buildings and Improvements | 94,513 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 0 | ||||
Buildings and Improvements | (35,328) | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Buildings and Improvements | 59,185 | ||||
Total | 59,185 | ||||
Accumulated Depreciation | (18,575) | ||||
Ae‘o Retail | |||||
Gross Amounts at Which Carried at Close of Period | |||||
Amount outstanding | 30,500 | ||||
Ke Kilohana Retail | |||||
Gross Amounts at Which Carried at Close of Period | |||||
Amount outstanding | 9,300 | ||||
Corporate | |||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||
Encumbrances | 1,750,000 | ||||
Initial Cost | |||||
Land | 885 | ||||
Buildings and Improvements | 1,027 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (885) | ||||
Building Improvements | 25,186 | ||||
Gross Amounts at Which Carried at Close of Period | |||||
Land | 0 | ||||
Building Improvements | 26,213 | ||||
Total | 26,213 | ||||
Accumulated Depreciation | $ (15,942) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Real Estate | |||
Balance as of January 1, | $ 7,268,288,000 | $ 6,163,287,000 | $ 5,355,409,000 |
Change in land | 228,402,000 | 239,558,000 | 199,069,000 |
Additions | 716,614,000 | 1,513,888,000 | 1,148,826,000 |
Impairments | (48,738,000) | 0 | 0 |
Dispositions and write-offs and land and condominium costs of sales | (845,433,000) | (648,445,000) | (540,017,000) |
Balance as of December 31, | 7,319,133,000 | 7,268,288,000 | 6,163,287,000 |
Reconciliation of Accumulated Depreciation | |||
Balance as of January 1, | 507,933,000 | 380,892,000 | 321,882,000 |
Depreciation Expense | 198,556,000 | 143,698,000 | 113,518,000 |
Dispositions and write-offs | (72,425,000) | (16,657,000) | (54,508,000) |
Balance as of December 31, | $ 634,064,000 | $ 507,933,000 | $ 380,892,000 |