HHC’s (NYSE:HHC) first quarter results highlight positive progress at the company’s core master planned communities (MPCs) in Houston and Summerlin (Las Vegas), and its condo sales in its Hawaii towers.
Despite significant progress in HHC’s core business, project delays and initial losses at HHC’s Seaport District (New York City) continue to consume the majority of analyst and investor focus and may have contributed to the recent decline in the company’s stock price. Although there have been delays at the Seaport, management remains confident regarding the long-term value-creation potential of this unique asset. The Seaport represents less than 10% of the company’s total asset base valued at cost so we do not believe that the slower than expected stabilization of this asset is material to HHC.
HHC’s stock has increased 9% year-to-date. We continue to believe that HHC trades at a large discount to its underlying NAV per share.
From Bill Ackman (Trades, Portfolio)'s first-quarter 2019 Pershing Square shareholder letter.
