MORTGAGES, NOTES AND LOANS PAYABLE, NET (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Summary of mortgages, notes and loans payable

Mortgages, notes and loans payable, net are summarized as follows:

	December 31,
(In thousands)	2019			2018
Fixed-rate debt:
Unsecured 5.375% Senior Notes	$	1,000,000		$	1,000,000
Secured mortgages, notes and loans payable	884,935			648,707
Special Improvement District bonds	23,725			15,168
Variable-rate debt:
Mortgages, notes and loans payable (a)	2,229,958			1,551,336
Unamortized bond issuance costs	(5,249		)	(6,096		)
Unamortized deferred financing costs (b)	(36,899		)	(27,902		)
Total mortgages, notes and loans payable, net	$	4,096,470		$	3,181,213

(a) As more fully described below, $630.1 million and $615.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt as of December 31, 2019 and 2018. An additional $184.3 million and $50.0 million of variable-rate debt was subject to interest rate collars as of December 31, 2019 and December 31, 2018, and $75.0 million of variable-rate debt was capped at a maximum interest rate as of December 31, 2019 and 2018.

(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).

Schedule of mortgages, notes and loans payable by property

The following table presents the Company’s mortgages, notes, and loans payable by property, presented within each segment in order of extended maturity date:

					Maximum		Carrying Value
	Initial / Extended	Interest			Facility		December 31,		December 31,
($ in thousands)	Maturity (a)	Rate			Amount		2019		2018
Operating Assets
Three Hughes Landing	March 2020	4.33	%	(b)	$	61,200	$	59,822	$	55,759
The Woodlands Towers at the Waterway	June 2020	3.68	%	(b), (c)			336,570		—
The Woodlands Warehouse	June 2020	3.68	%	(b), (c)			7,230		—
Downtown Summerlin	September 2020 / September 2021	3.88	%	(b)			259,179		266,755
Two Merriweather	October 2020 / October 2021	4.23	%	(b)	33,156		28,216		24,000
Outlet Collection at Riverwalk	October 2021	4.23	%	(b)			30,615		47,552
100 Fellowship Drive	May 2022	3.23	%	(b)	51,426		47,916		35,481
20/25 Waterway Avenue	May 2022	4.79	%				13,131		13,395
Millennium Waterway Apartments	June 2022	3.75	%				53,032		54,083
HHC 242 Self-Storage	December 2021 / December 2022	4.33	%	(b)			5,499		6,604

					Maximum	Carrying Value
	Initial / Extended	Interest			Facility	December 31,	December 31,
($ in thousands)	Maturity (a)	Rate			Amount	2019	2018
HHC 2978 Self-Storage	December 2021 / December 2022	4.33	%	(b)		5,395	6,042
Lake Woodlands Crossing Retail	January 2023	3.53	%	(b)	15,523	12,163	9,539
Lakeside Row	July 2022 / July 2023	3.98	%	(b)	34,231	23,958	—
Senior Secured Credit Facility	September 2023	4.61	%	(d)	700,000	615,000	615,000
The Woodlands Resort & Conference Center	December 2021 / December 2023	4.23	%	(b)		62,500	62,500
Lakefront North	December 2022 / December 2023	3.73	%	(b)	51,821	32,731	21,120
9303 New Trails	December 2023	4.88	%			11,196	11,610
4 Waterway Square	December 2023	4.88	%			32,789	33,998
Creekside Park West	March 2023 / March 2024	3.98	%	(b)	18,000	8,505	—
6100 Merriweather	September 2022 / September 2024	4.48	%	(b)	89,844	36,418	—
Tanager Apartments	October 2021 / October 2024	3.98	%	(b)		29,165	—
Two Summerlin	October 2022 / October 2025	4.25	%			33,183	14,431
3831 Technology Forest Drive	March 2026	4.50	%			21,137	21,571
Kewalo Basin Harbor	September 2027	4.48	%	(b)	11,562	11,110	3,499
Millennium Six Pines Apartments	August 2028	3.39	%			42,500	42,500
3 Waterway Square	August 2028	3.94	%			47,647	49,013
One Lakes Edge	March 2029	4.50	%			69,440	69,440
Aristocrat	September 2029	3.67	%			38,055	21,296
Creekside Park Apartments	October 2029	3.52	%			37,730	—
One Hughes Landing	December 2029	4.30	%			52,000	52,000
Two Hughes Landing	December 2030	4.20	%			48,000	48,000
Hockey Ground Lease SIDS	December 2030	6.05	%			135	141
Downtown Summerlin SID Bonds - S128	December 2030	6.05	%			2,569	2,652
Constellation Apartments	January 2033	4.07	%			24,200	24,200
Hughes Landing Retail	December 2036	3.50	%			35,000	35,000
Columbia Regional Building	February 2037	4.48	%			24,664	25,000
Las Vegas Ballpark	December 2039	4.92	%			51,231	26,766
Operating Assets Total						2,249,631	1,698,947
Master Planned Communities
Summerlin South SID Bonds - S128	December 2020	7.30	%			—	213
Summerlin South SID Bonds - S132	December 2020	6.00	%			—	562
The Woodlands Master Credit Facility	October 2022 / October 2024	4.23	%	(b)	250,000	107,500	150,000
Bridgeland Credit Facility	October 2022 / October 2024	4.23	%	(b)	250,000	107,500	65,000
Summerlin South SID Bonds - S151	June 2025	6.00	%			—	913
Summerlin South SID Bonds - S128C	December 2030	6.05	%			2,014	3,211
Summerlin West SID Bonds - S812	October 2035	6.00	%			1,960	6,709
Summerlin West SID Bonds - S814	April 2049	4.00	%			16,310	—
Master Planned Communities Total						235,284	226,608
Seaport District
250 Water Street	November 2022 / November 2023	5.23	%	(b)	100,000	100,000	129,723
Seaport District	June 2024	6.10	%	(e)	250,000	250,000	—
Seaport District Total						350,000	129,723
Strategic Developments
Ke Kilohana	December 2019 / December 2020	5.75	%	(b)		—	96,757
‘A‘ali‘i	June 2022 / June 2023	4.83	%	(b)	293,700	30,717	—
Two Lakes Edge	October 2022 / October 2023	3.88	%	(b)	74,035	38,214	—
110 North Wacker	April 2022 / April 2024	4.73	%	(b), (f)	558,900	184,300	50,000
Millennium Phase III Apartments	August 2023 / August 2024	3.48	%	(b)	30,700	1	—
Juniper Apartments	September 2022 / September 2024	4.48	%	(b)	85,657	34,610	—
Other SID Bonds	December 2020 / December 2030	6.00% - 7.30%		(g)		737	767
8770 New Trails	June 2021 / January 2032	4.89	%	(h)	35,487	15,124	—
Strategic Developments Total						303,703	147,524
Other corporate financing arrangements	May 2023	4.33	%	(i)		—	12,409

				Maximum	Carrying Value
	Initial / Extended	Interest		Facility	December 31,			December 31,
($ in thousands)	Maturity (a)	Rate		Amount	2019			2018
Senior Notes	March 2025	5.38	%		1,000,000			1,000,000
Unamortized bond issuance costs					(5,249		)	(6,096		)
Unamortized deferred financing costs					(36,899		)	(27,902		)
Total mortgages, notes, and loans payable					$	4,096,470		$	3,181,213

(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 1.73%, 1.90% and 4.75%, respectively, at December 31, 2019. 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 $343.8 million is recourse to the Company but not currently secured by any mortgage.

(d) 100.0% of the outstanding principal of the $615.0 million Term Loan is swapped to a fixed rate equal to 4.61%.

(e) The loan initially bears interest at 6.10% and will begin bearing interest at one-month LIBOR plus 4.10%, subject to a LIBOR cap of 2.30% and LIBOR floor of 0.00%, at the earlier of June 20, 2021 or the date certain debt coverage ratios are met.

(f) 100.0% of the outstanding principal of the $184.3 million is subject to fixed interest rate collar contracts for the remaining term of the debt.

(g) Includes SID Bonds related to Two Summerlin, Aristocrat, Tanager Apartments, and Las Vegas Ballpark. Maturity dates range between December 2020 and December 2030 and interest rates range between 6.00% and 7.30%.

(h) Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails on June 27, 2019, the Company entered into an interest rate swap which is designated as a cash flow hedge. The Loan will bear interest at one-month LIBOR plus 2.45% but it is currently swapped to a fixed rate equal to 4.89%.

(i)

The Company completed the sale of its corporate aircraft during the quarter ended December 31, 2019.

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, 2019 based on extended maturity dates:

	Mortgages, notes
	and loans payable
(In thousands)	principal payments
2020	$	424,933
2021	320,641
2022	137,825
2023	967,129
2024	764,615
Thereafter	1,523,475
Total principal payments	4,138,618
Unamortized deferred financing costs, net and unamortized underwriting fees	(42,148		)
Total mortgages, notes and loans payable	$	4,096,470