THE HOWARD HUGHES CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2013

($ in thousands)				Initial Cost (b)				Costs Capitalized Subsequent to Acquisition (c)						Gross Amounts at Which Carried at Close of Period (d)

Name of Center	Location	Encum- brances (a)		Land		Buildings and Improve- ments (f)		Land			Buildings and Improve- ments (f)			Land		Buildings and Improve- ments (e)		Total		Accumulated Depreciation (f)		Date of Construction		Date Acquired/ Completed
Bridgeland	The Woodlands, TX	$	18,066	$	257,222	$	—	$	144,678		$	1,770		$	401,900	$	1,770	$	403,670	$	994				2004
Maryland Communities	Howard County, MD		—		457,552		—		(398,295	)		197			59,257		197		59,454		75				2004
Summerlin	Las Vegas, NV		29,079		990,179		—		(111,179	)		919			879,000		919		879,919		342				2004
The Woodlands	The Woodlands, TX		176,663		264,141		—		(65,707	)		14,977			198,434		14,977		213,411		11				2011
20/25 Waterway Avenue	The Woodlands, TX	$	14,450	$	2,346	$	8,871	$	—		$	481		$	2,346	$	9,352	$	11,698	$	770				2011
Cottonwood Square	Salt Lake City, UT		—		1,558		4,339		—			862			1,558		5,201		6,759		1,370				2002
Landmark Mall	Alexandria, VA		—		28,396		67,235		(19,408	)		(39,354	)		8,988		27,881		36,869		3,036				2003
Park West	Peoria, AZ		—		16,526		77,548		1,201			1,252			17,727		78,800		96,527		17,576		2008
Outlet Collection at Riverwalk	New Orleans, LA		—		—		94,513		—			(53,903	)		—		40,610		40,610		915				2004
South Street Seaport	New York, NY		—		—		7,884		—			29,013			—		36,897		36,897		283				2004
Ward Centers	Honolulu, HI		238,716		164,007		89,321		(21,158	)		215,154			142,849		304,475		447,324		38,916				2002
Waterway Garage Retail	The Woodlands, TX		—		1,342		4,255		(1	)		994			1,341		5,249		6,590		266				2011
110 N. Wacker	Chicago, IL		29,000		—		29,035		—			5,315			—		34,350		34,350		12,491				1997
1400 Woodloch Forest	The Woodlands, TX		—		—		—		1,570			13,423			1,570		13,423		14,993		6,225				1981
2201 Lake Woodlands Drive	The Woodlands, TX		—		3,755		—		—			—			3,755		—		3,755		—				2011
3 Waterway Square	The Woodlands, TX		52,000		748		—		—			42,044			748		42,044		42,792		1,020				2012
4 Waterway Square	The Woodlands, TX		39,237		1,430		51,553		—			6,712			1,430		58,265		59,695		4,904				2011
9303 New Trails	The Woodlands, TX		13,398		1,929		11,915		—			1,934			1,929		13,849		15,778		997				2011
Columbia Office Properties	Howard County, MD		9,207		1,575		28,447		1,571			24,796			3,146		53,243		56,389		12,021				2004
70 Columbia Corporate Center	Howard County, MD		16,287		1,281		14,523		—			5,286			1,281		19,809		21,090		749
Millennium Waterway Apartments	The Woodlands, TX		55,584		15,917		56,002		—			—			15,917		56,002		71,919		3,632				2012
One Hughes Landing	The Woodlands, TX		19,128		—		—		2,366			33,184			2,366		33,184		35,550		19				2012
The Club at Carlton Woods	The Woodlands, TX		—		13,796		457		393			1,412			14,189		1,869		16,058		199				2011
The Woodlands Resort and Conference Center	The Woodlands, TX		36,100		13,258		37,983		—			26,217			13,258		64,200		77,458		2,391				2011
Woodlands Parking Garages	The Woodlands, TX		—		5,857		—		—			—			5,857		—		5,857		—				2011

($ in thousands)				Initial Cost (b)				Costs Capitalized Subsequent to Acquisition (c)						Gross Amounts at Which Carried at Close of Period (d)

Name of Center	Location	Encum- brances (a)		Land		Buildings and Improve- ments (f)		Land			Buildings and Improve- ments (f)			Land		Buildings and Improve- ments (e)		Total		Accumulated Depreciation (f)		Date of Construction		Date Acquired/ Completed
ExxonMobil Build-to-Suit	The Woodlands, TX	$	—	$	—	$	—	$	—		$	6,595		$	—	$	6,595	$	6,595	$	—				—
Creekside Park Village Center	The Woodlands, TX		—		—		—		—			2,941			—		2,941		2,941		—				—
Hughes Landing Retail	The Woodlands, TX		913		—		—		—			5,995			—		5,995		5,995		—				—
ONE Ala Moana	Honolulu, HI		—		—		—		—			86			—		86		86		—				2002
One Lake's Edge	The Woodlands, TX		—		—		—		—			6,099			—		6,099		6,099		—				—
The Metropolitan Downtown Columbia Project	Columbia, MD		—		—		—		—			1,500			—		1,500		1,500		—				—
The Shops at Summerlin	Las Vegas, NV		4,021		—		—		—			141,383			—		141,383		141,383		—				2004
Two Hughes Landing	The Woodlands, TX		10		—		—		—			22,380			—		22,380		22,380		—				—
Alameda Plaza	Pocatello, ID		—		740		2,060		(740	)		(1,368	)		—		692		692		—				2002
AllenTowne	Dallas, TX		—		25,575		—		(25,575	)		25,464			—		25,464		25,464		—				2006
Bridges at Mint Hill	Charlotte, NC		—		—		—		—			20,619			—		20,619		20,619		—				2007
Century Plaza Mall	Birmingham, AL		—		3,164		28,514		(3,164	)		(24,059	)		—		4,455		4,455		—				1997
Circle T Ranch and Power Center	Dallas/Fort Worth, TX		—		—		—		—			60			—		60		60		—				2005
Cottonwood Mall	Salt Lake City, UT		—		7,613		42,987		(4,713	)		(25,562	)		2,900		17,425		20,325		—				2002
Elk Grove Promenade	Elk Grove, CA		—		—		—		—			6,254			—		6,254		6,254		4				2003
Kendall Town Center	Miami, FL		—		—		—		—			18,135			—		18,135		18,135		—				2004
Lakemoor (Volo) Land	Volo, IL		—		320		—		(320	)		321			—		321		321		—				1995
Redlands Promenade	Redlands, CA		—		—		—		—			2,951			—		2,951		2,951		—				2004
Redlands Mall	Redlands, CA		—		—		—		—			6,453			—		6,453		6,453		—		2008		2004
West Windsor	Princeton, NJ		—		—		—		53			22,985			53		22,985		23,038						2004


Corporate general and administrative			762,764		885		1,027		(885	)		12,648			—		13,675		13,675		2,522


Total HHC		$	1,514,623	$	2,281,112	$	658,469	$	(499,313	)	$	584,565		$	1,781,799	$	1,243,034	$	3,024,833	$	111,728

(a): See description of mortgages, notes and other debt payable in Note 8 of the Consolidated Financial Statements.
(b): Initial cost for constructed malls 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 Master Planned Communities, costs capitalized subsequent to acquisitions are net of land sales.
(d): The aggregate cost of land, building and improvements for federal income tax purposes is approximately $3.0 billion.
(e): Includes all amounts related to Developments.
(f): Depreciation is computed based upon the following estimated lives:

		Years

Building and improvements		10-45
Equipment, tenant improvements and fixtures		5-10
Computer hardware and software, and vehicles		3-5


Reconciliation of Real Estate
	2013			2012			2011
		(In thousands)
Balance at beginning of year	$	2,746,596		$	2,589,730		$	2,161,977
Change in Land		90,124			66,889			69,110
Additions		352,141			179,372			452,161
Impairments		—			—			—
Dispositions and write-offs and land costs of sales		(164,028	)		(89,395	)		(93,818	)


Balance at end of year	$	3,024,833		$	2,746,596		$	2,589,430


Reconciliation of Accumulated Depreciation
	2013			2012		2011
		(In thousands)
Balance at beginning of year	$	112,491		$	91,605	$	78,931
Depreciation Expense		29,637			19,457		14,012
Dispositions and write-offs		(30,400	)		1,429		(1,338	)


Balance at end of year	$	111,728		$	112,491	$	91,605