David Weinreb, CEO of Howard Hughes Corp. (NYSE: HHC), joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.
Howard Hughes Corp. owns, manages and develops commercial, residential and mixed-use real estate throughout the country.
Weinreb noted that since going public in 2010, the company has made substantial progress in creating a recurring income stream. That has led to high returns for investors and a focus on mitigating risks, he added.
Howard Hughes Corp. had an initial net operating income (NOI) of $49 million when it went public, whereas annualized NOI in the first quarter of 2017 stood at $169 million, according to Weinreb.
Properties that the company has developed, along with those that are in development and will be complete within the next 24 months, will stabilize recurring NOI at around $241 million, Weinreb said.
Turning to the Seaport District project in New York, Weinreb noted that lower Manhattan has “been on fire.” The neighborhood shows tremendous growth potential, particularly among young, mobile residents and visitors to the area. Weinreb said the development will feature an array of world-class dining and retail options.
Weinreb also highlighted the company’s award-winning master planned communities located in Maryland, Texas and Nevada. He attributed their success to the level of control that Howard Hughes Corp. can exert over all the various aspects of the developments.
“It’s a very unusual model,” Weinreb noted.