(State or other jurisdiction of | (I.R.S. employer |
incorporation or organization) | identification number) |
☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company | ||||
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | |||
Page | |||
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Item 2: | |||
Item 3: | |||
Item 4: | |||
Item 1: | |||
Item 1A: | |||
Item 2: | |||
Item 3: | |||
Item 4: | |||
Item 5: | |||
Item 6: | |||
(In thousands, except par values and share amounts) | June 30, 2020 | December 31, 2019 | ||||||
Assets: | ||||||||
Investment in real estate: | ||||||||
Master Planned Communities assets | $ | $ | ||||||
Buildings and equipment | ||||||||
Less: accumulated depreciation | ( | ) | ( | ) | ||||
Land | ||||||||
Developments | ||||||||
Net property and equipment | ||||||||
Investment in real estate and other affiliates | ||||||||
Net investment in real estate | ||||||||
Net investment in lease receivable | ||||||||
Cash and cash equivalents | ||||||||
Restricted cash | ||||||||
Accounts receivable, net | ||||||||
Municipal Utility District receivables, net | ||||||||
Notes receivable, net | ||||||||
Deferred expenses, net | ||||||||
Operating lease right-of-use assets, net | ||||||||
Prepaid expenses and other assets, net | ||||||||
Total assets | $ | $ | ||||||
Liabilities: | ||||||||
Mortgages, notes and loans payable, net | $ | $ | ||||||
Operating lease obligations | ||||||||
Deferred tax liabilities | ||||||||
Accounts payable and accrued expenses | ||||||||
Total liabilities | ||||||||
Commitments and Contingencies (see Note 10) | ||||||||
Equity: | ||||||||
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued | ||||||||
Common stock: $.01 par value; 150,000,000 shares authorized, 55,981,559 issued and 54,931,299 outstanding as of June 30, 2020, and 150,000,000 shares authorized, 43,635,893 shares issued and 42,585,633 outstanding as of December 31, 2019 | ||||||||
Additional paid-in capital | ||||||||
Accumulated deficit | ( | ) | ( | ) | ||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Treasury stock, at cost, 1,050,260 shares as of June 30, 2020 and December 31, 2019 | ( | ) | ( | ) | ||||
Total stockholders' equity | ||||||||
Noncontrolling interests | ||||||||
Total equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | ||||||||||||||||
Condominium rights and unit sales | $ | $ | $ | $ | ||||||||||||
Master Planned Communities land sales | ||||||||||||||||
Minimum rents | ||||||||||||||||
Other land, rental and property revenues | ||||||||||||||||
Tenant recoveries | ||||||||||||||||
Builder price participation | ||||||||||||||||
Interest income from sales-type leases | ||||||||||||||||
Total revenues | ||||||||||||||||
Expenses: | ||||||||||||||||
Condominium rights and unit cost of sales | ||||||||||||||||
Master Planned Communities cost of sales | ||||||||||||||||
Operating costs | ||||||||||||||||
Rental property real estate taxes | ||||||||||||||||
Provision for (recovery of) doubtful accounts | ( | ) | ( | ) | ||||||||||||
Demolition costs | ||||||||||||||||
Development-related marketing costs | ||||||||||||||||
General and administrative | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Total expenses | ||||||||||||||||
Other: | ||||||||||||||||
Provision for impairment | ( | ) | ||||||||||||||
Gain (loss) on sale or disposal of real estate and other assets, net | ( | ) | ( | ) | ||||||||||||
Other income (loss), net | ( | ) | ||||||||||||||
Total other | ( | ) | ||||||||||||||
Operating (loss) income | ( | ) | ( | ) | ||||||||||||
Interest income | ||||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Equity in (losses) earnings from real estate and other affiliates | ( | ) | ||||||||||||||
(Loss) income before taxes | ( | ) | ( | ) | ||||||||||||
(Benefit) provision for income taxes | ( | ) | ( | ) | ||||||||||||
Net (loss) income | ( | ) | ( | ) | ||||||||||||
Net loss (income) attributable to noncontrolling interests | ( | ) | ||||||||||||||
Net (loss) income attributable to common stockholders | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Basic (loss) income per share: | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Diluted (loss) income per share: | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Other comprehensive loss: | ||||||||||||||||
Interest rate swaps (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Capitalized swap interest expense (b) | ( | ) | ( | ) | ||||||||||||
Terminated swap amortization | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other comprehensive loss: | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Comprehensive (loss) income | ( | ) | ( | ) | ( | ) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | ( | ) | ||||||||||||||
Comprehensive (loss) income attributable to common stockholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
(a) | Amounts are shown net of deferred tax benefit of $ |
(b) | The deferred tax impact was |
Accumulated | ||||||||||||||||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Stockholders' | Noncontrolling | Total | |||||||||||||||||||||||||||||||
(In thousands, except shares) | Shares | Amount | Capital | Deficit | (Loss) Income | Shares | Amount | Equity | Interests | Equity | ||||||||||||||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ) | ||||||||||||||||||||||||||||||
Interest rate swaps, net of tax of $3,770 | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Terminated swap amortization | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Capitalized swap interest, net of tax of $6 | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Deconsolidation of Associations of Unit Owners | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
Contributions to real estate and other affiliates | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock plan activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Net loss | — | — | — | ( | ) | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Interest rate swaps, net of tax of $72 | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Terminated swap amortization | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Common stock offering costs | — | — | ( | ) | — | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Stock plan activity | ( | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Stockholders' | Noncontrolling | Total | |||||||||||||||||||||||||||||||
(In thousands, except shares) | Shares | Amount | Capital | Deficit | (Loss) Income | Shares | Amount | Equity | Interests | Equity | ||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | ) | ||||||||||||||||||||||||||||||
Interest rate swaps, net of tax of $5,957 | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Terminated swap amortization | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Capitalized swap interest, net of tax of $20 | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Deconsolidation of Associations of Unit Owners | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
Contributions to real estate and other affiliates | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock plan activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Net (loss) income | — | — | — | ( | ) | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||
Interest rate swaps, net of tax of $6,960 | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Terminated swap amortization | — | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Adoption of ASU 2016-13 | — | — | — | ( | ) | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||
Common stock issued | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Stock plan activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net (loss) income | $ | ( | ) | $ | ||||
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||||||||
Depreciation | ||||||||
Amortization | ||||||||
Amortization of deferred financing costs | ||||||||
Amortization of intangibles other than in-place leases | ||||||||
Straight-line rent amortization | ( | ) | ( | ) | ||||
Deferred income taxes | ( | ) | ||||||
Restricted stock and stock option amortization | ||||||||
Net gain on sales and acquisitions of properties | ( | ) | ||||||
Net gain on sale of lease receivable | ( | ) | ||||||
Proceeds from the sale of lease receivable | ||||||||
Impairment charges | ||||||||
Equity in (losses) earnings from real estate and other affiliates, net of distributions | ( | ) | ( | ) | ||||
Provision for doubtful accounts | ||||||||
Master Planned Communities land acquisitions | ( | ) | ||||||
Master Planned Communities development expenditures | ( | ) | ( | ) | ||||
Master Planned Communities cost of sales | ||||||||
Condominium development expenditures | ( | ) | ( | ) | ||||
Condominium rights and unit cost of sales | ||||||||
Net changes: | ||||||||
Accounts and notes receivable | ( | ) | ( | ) | ||||
Prepaid expenses and other assets | ( | ) | ||||||
Condominium deposits received | ( | ) | ||||||
Deferred expenses | ( | ) | ( | ) | ||||
Accounts payable and accrued expenses | ( | ) | ( | ) | ||||
Cash (used in) provided by operating activities | ( | ) | ||||||
Cash Flows from Investing Activities: | ||||||||
Property and equipment expenditures | ( | ) | ( | ) | ||||
Operating property improvements | ( | ) | ( | ) | ||||
Property development and redevelopment | ( | ) | ( | ) | ||||
Reimbursements under Tax Increment Financings | ||||||||
Distributions from real estate and other affiliates | ||||||||
Investments in real estate and other affiliates, net | ( | ) | ( | ) | ||||
Cash used in investing activities | ( | ) | ( | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from mortgages, notes and loans payable | ||||||||
Proceeds from issuance of common stock | ||||||||
Principal payments on mortgages, notes and loans payable | ( | ) | ( | ) | ||||
Special Improvement District bond funds released from escrow | ||||||||
Deferred financing costs and bond issuance costs, net | ( | ) | ( | ) | ||||
Taxes paid on stock options exercised and restricted stock vested | ( | ) | ( | ) | ||||
Stock options exercised | ||||||||
Contributions from noncontrolling interest | ||||||||
Cash provided by financing activities | ||||||||
Net change in cash, cash equivalents and restricted cash | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||
Six Months Ended June 30, | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Interest paid | $ | $ | ||||||
Interest capitalized | ||||||||
Income taxes refunded, net | ( | ) | ( | ) | ||||
Non-Cash Transactions: | ||||||||
Accrued property improvements, developments, and redevelopments | ( | ) | ||||||
Special Improvement District bond transfers associated with land sales | ||||||||
Accrued interest on construction loan borrowing | ||||||||
Capitalized stock compensation | ||||||||
Initial recognition of ASC 842 Operating lease ROU asset | ||||||||
Initial recognition of ASC 842 Operating lease obligation | ||||||||
(In thousands) | Restructuring costs | |||
Balance at December 31, 2019 | $ | |||
Charges (a) | ||||
Charges paid/settled | ( | ) | ||
Balance at June 30, 2020 | $ | |||
(a) |
($ in thousands) | MUD receivables | SID receivables | TIF receivables | Net investments in lease receivable | Notes receivable | Total | ||||||||||||||||||
Ending balance as of June 30, 2020 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
($ in 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 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Current-period provision for expected credit losses | ( | ) | ||||||||||||||||||||||
Write-offs | ( | ) | ( | ) | ||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||
Ending balance as of June 30, 2020 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
(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. Reserves related to operating lease receivables are not included in the above table. |
Economic/Legal Ownership | Carrying Value | Share of Earnings/Dividends | Share of Earnings/Dividends | ||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
($ in thousands) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Operating Assets: | |||||||||||||||||||||||||||||
The Metropolitan Downtown Columbia (a) | % | % | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Stewart Title of Montgomery County, TX | % | % | |||||||||||||||||||||||||||
Woodlands Sarofim #1 | % | % | |||||||||||||||||||||||||||
m.flats/TEN.M | % | % | ( | ) | ( | ) | |||||||||||||||||||||||
Master Planned Communities: | |||||||||||||||||||||||||||||
The Summit (b) | % | % | ( | ) | |||||||||||||||||||||||||
Seaport District: | |||||||||||||||||||||||||||||
Mr. C Seaport (c) | % | % | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Bar Wayō (Momofuku) (b) | % | % | ( | ) | ( | ) | |||||||||||||||||||||||
Strategic Developments: | |||||||||||||||||||||||||||||
Circle T Ranch and Power Center | % | % | |||||||||||||||||||||||||||
HHMK Development | % | % | |||||||||||||||||||||||||||
KR Holdings | % | % | ( | ) | ( | ) | |||||||||||||||||||||||
( | ) | ( | ) | ||||||||||||||||||||||||||
Other equity investments (d) | |||||||||||||||||||||||||||||
Investments in real estate and other affiliates | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||
(a) | The Metropolitan Downtown Columbia was in a deficit position of $ |
(b) | Please refer to the discussion below for ownership structure descriptions. |
(c) | During the three months ended June 30, 2020, the Company recognized a $ |
(d) | 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. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year 2020 or cumulatively. |
June 30, | December 31, | |||||||
(In thousands) | 2020 | 2019 | ||||||
Total Assets | $ | $ | ||||||
Total Liabilities | ||||||||
Total Equity | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues (a) | $ | $ | $ | $ | ||||||||||||
Net income | ( | ) | ||||||||||||||
Gross Margin | ( | ) | ||||||||||||||
(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 2020, revenues allocated to each of The Summit’s performance obligations is recognized over time based on an input measure of progress. The three and six months ended June 30, 2019 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. |
Asset | Statements of Operations Line Item | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
(In thousands) | ||||||||||||||||||
Operating Assets: | ||||||||||||||||||
Outlet Collection at Riverwalk | Provision for impairment | $ | $ | $ | $ | |||||||||||||
Equity Investments: | ||||||||||||||||||
Mr. C Seaport | Equity in (losses) earnings from real estate and other affiliates | $ | $ | $ | $ | |||||||||||||
Other Assets: | ||||||||||||||||||
Condominium Inventory | Condominium rights and unit cost of sales | $ | $ | $ | $ | |||||||||||||
June 30, | December 31, | |||||||
(In thousands) | 2020 | 2019 | ||||||
Straight-line rent | $ | $ | ||||||
Condominium inventory | ||||||||
Security, escrow, and other deposits | ||||||||
In-place leases | ||||||||
Special Improvement District receivable | ||||||||
Intangibles | ||||||||
Prepaid expenses | ||||||||
Tenant incentives and other receivables | ||||||||
Other | ||||||||
TIF receivable | ||||||||
Food and beverage and lifestyle inventory | ||||||||
Federal income tax receivable | ||||||||
Above-market tenant leases | ||||||||
Prepaid expenses and other assets, net | $ | $ | ||||||
June 30, | December 31, | |||||||
(In thousands) | 2020 | 2019 | ||||||
Construction payables | $ | $ | ||||||
Condominium deposit liabilities | ||||||||
Interest rate swap liabilities | ||||||||
Deferred income | ||||||||
Accrued real estate taxes | ||||||||
Accounts payable and accrued expenses | ||||||||
Accrued payroll and other employee liabilities | ||||||||
Tenant and other deposits | ||||||||
Accrued interest | ||||||||
Other | ||||||||
Accounts payable and accrued expenses | $ | $ | ||||||
June 30, | December 31, | |||||||
(In thousands) | 2020 | 2019 | ||||||
Fixed-rate debt: | ||||||||
Unsecured 5.375% Senior Notes | $ | $ | ||||||
Secured mortgages, notes and loans payable | ||||||||
Special Improvement District bonds | ||||||||
Variable-rate debt: | ||||||||
Mortgages, notes and loans payable (a) | ||||||||
Unamortized bond issuance costs | ( | ) | ( | ) | ||||
Unamortized deferred financing costs (b) | ( | ) | ( | ) | ||||
Total mortgages, notes and loans payable, net | $ | $ | ||||||
(a) | As more fully described in Note 9 - Derivative Instruments and Hedging Activities, $ |
(b) | Deferred financing costs 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). |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
(In thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Interest rate derivative liabilities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||
(In thousands) | Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
Assets: | ||||||||||||||||||
Cash and Restricted cash | Level 1 | $ | $ | $ | $ | |||||||||||||
Accounts receivable, net (a) | Level 3 | |||||||||||||||||
Notes receivable, net (b) | Level 3 | |||||||||||||||||
Liabilities: | ||||||||||||||||||
Fixed-rate debt (c) | Level 2 | |||||||||||||||||
Variable-rate debt (c) | Level 2 | |||||||||||||||||
(a) | Accounts receivable, net is shown net of an allowance of $ |
(b) | Notes receivable, net is shown net of an allowance of $ |
(c) | Excludes related unamortized financing costs. |
Fair Value Measurements Using | ||||||||||||||||
(In thousands) | Total Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Operating Assets: | ||||||||||||||||
Outlet Collection at Riverwalk (a) | $ | $ | $ | $ | ||||||||||||
(a) | The fair value was measured as of the impairment date based on a discounted cash flow analysis using a capitalization rate of |
Fixed | Fair Value Asset (Liability) | |||||||||||||||||||||
Notional | Interest | Effective | Maturity | June 30, | December 31, | |||||||||||||||||
(In 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 | $ | % | 12/22/2016 | 12/23/2019 | $ | $ | ||||||||||||||
Interest rate cap | (c) | Prepaid expenses and other assets, net | % | 8/31/2019 | 8/31/2020 | |||||||||||||||||
Derivative instruments designated as hedging instruments: | ||||||||||||||||||||||
Interest rate collar | (d) (e) | Accounts payable and accrued expenses | 2.00% - 3.00% | 5/1/2019 | 5/1/2020 | ( | ) | |||||||||||||||
Interest rate collar | (d) | Accounts payable and accrued expenses | 2.25% - 3.25% | 5/1/2020 | 5/1/2021 | ( | ) | ( | ) | |||||||||||||
Interest rate collar | (d) | Accounts payable and accrued expenses | 2.75% - 3.50% | 5/1/2021 | 4/30/2022 | ( | ) | ( | ) | |||||||||||||
Interest rate swap | (f) | Accounts payable and accrued expenses | % | 9/21/2018 | 9/18/2023 | ( | ) | ( | ) | |||||||||||||
Interest rate swap | (g) | Accounts payable and accrued expenses | % | 11/1/2019 | 1/1/2032 | ( | ) | ( | ) | |||||||||||||
Total fair value derivative liabilities | $ | ( | ) | $ | ( | ) | ||||||||||||||||
(a) | These rates represent the strike rate on HHC’s interest swaps, caps and collars. |
(b) | The Company settled this Interest rate cap on February 1, 2019. Interest income of $ |
(c) | On August 30, 2019, the Company executed an agreement to extend the maturing position of this cap. Interest income included in the Condensed Consolidated Statements of Operations for the six months ended June 30, 2020, and the year ended December 31, 2019, related to this contract was not meaningful. |
(d) | On May 17, 2018, and May 18, 2018, the Company entered into these interest rate collars which are designated as cash flow hedges. |
(e) | On May 1, 2020, the $ |
(f) | Concurrent with the funding of the $ |
(g) | Concurrent with the closing of the $ |
Amount of Loss Recognized | Amount of Loss Recognized | |||||||||||||||
in AOCI on Derivative | in AOCI on Derivative | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest rate derivatives | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Amount of (Loss) Gain Reclassified | Amount of (Loss) Gain Reclassified | |||||||||||||||
from AOCI into Operations | from AOCI into Operations | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Location of (Loss) Gain Reclassified from AOCI into Operations | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest expense | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Total Interest Expense Presented | Total Interest Expense Presented | |||||||||||||||
in the Results of Operations in which the | in the Results of Operations in which the | |||||||||||||||
Effects of Cash Flow Hedges are Recorded | Effects of Cash Flow Hedges are Recorded | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Interest Expense Presented in Results of Operations | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest expense | $ | $ | $ | $ | ||||||||||||
Stock Options | Weighted-average Exercise Price | ||||||
Stock Options outstanding at December 31, 2019 | $ | ||||||
Granted | |||||||
Exercised | ( | ) | |||||
Forfeited | ( | ) | |||||
Expired | ( | ) | |||||
Stock Options outstanding at June 30, 2020 | $ | ||||||
Restricted Stock | Weighted-average Grant Date Fair Value | ||||||
Restricted stock outstanding at December 31, 2019 | $ | ||||||
Granted | |||||||
Vested | ( | ) | |||||
Forfeited | ( | ) | |||||
Restricted stock outstanding at June 30, 2020 | $ | ||||||
(In thousands) | ||||
Balance as of March 31, 2019 | $ | ( | ) | |
Other comprehensive loss before reclassifications | ( | ) | ||
Gain reclassified from accumulated other comprehensive loss to net income | ( | ) | ||
Terminated swap amortization | ( | ) | ||
Net current-period other comprehensive loss | ( | ) | ||
Balance as of June 30, 2019 | $ | ( | ) | |
Balance as of March 31, 2020 | $ | ( | ) | |
Other comprehensive loss before reclassifications | ( | ) | ||
Loss reclassified from accumulated other comprehensive loss to net income | ||||
Terminated swap amortization | ( | ) | ||
Net current-period other comprehensive loss | ( | ) | ||
Balance as of June 30, 2020 | $ | ( | ) | |
(In thousands) | ||||
Balance as of December 31, 2018 | $ | ( | ) | |
Other comprehensive loss before reclassifications | ( | ) | ||
Gain reclassified from accumulated other comprehensive loss to net income | ( | ) | ||
Terminated swap amortization | ( | ) | ||
Net current-period other comprehensive loss | ( | ) | ||
Balance as of June 30, 2019 | $ | ( | ) | |
Balance as of December 31, 2019 | $ | ( | ) | |
Other comprehensive loss before reclassifications | ( | ) | ||
Loss reclassified from accumulated other comprehensive loss to net income | ||||
Terminated swap amortization | ( | ) | ||
Net current-period other comprehensive loss | ( | ) | ||
Balance as of June 30, 2020 | $ | ( | ) | |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
(In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | Affected line items in the | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) Components | 2020 | 2019 | 2020 | 2019 | Statements of Operations | |||||||||||||
Losses (gains) on cash flow hedges | $ | $ | ( | ) | $ | $ | ( | ) | Interest expense | |||||||||
Income taxes on losses (gains) on cash flow hedges | ( | ) | ( | ) | Provision for income taxes | |||||||||||||
Total reclassifications of loss (income) for the period | $ | $ | ( | ) | $ | $ | ( | ) | Net of tax | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands, except per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Basic EPS: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Net loss (income) attributable to noncontrolling interests | ( | ) | ||||||||||||||
Net (loss) income attributable to common stockholders | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Denominator: | ||||||||||||||||
Weighted-average basic common shares outstanding | ||||||||||||||||
Diluted EPS: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net (loss) income attributable to common stockholders | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Denominator: | ||||||||||||||||
Weighted-average basic common shares outstanding | ||||||||||||||||
Restricted stock and stock options | ||||||||||||||||
Weighted-average diluted common shares outstanding (a) | ||||||||||||||||
Basic (loss) income per share: | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Diluted (loss) income per share: | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
(a) | The diluted EPS computation for the three and six months ended June 30, 2020, excludes |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | ||||||||||||||||
From contracts with customers | ||||||||||||||||
Recognized at a point in time: | ||||||||||||||||
Condominium rights and unit sales | $ | $ | $ | $ | ||||||||||||
Master Planned Communities land sales | ||||||||||||||||
Builder price participation | ||||||||||||||||
Total revenue from contracts with customers | ||||||||||||||||
Recognized at a point in time and/or over time: | ||||||||||||||||
Other land, rental and property revenues | ||||||||||||||||
Total other income | ||||||||||||||||
Rental and other income (lease-related revenues) | ||||||||||||||||
Minimum rents | ||||||||||||||||
Tenant recoveries | ||||||||||||||||
Interest income from sales-type leases | ||||||||||||||||
Total rental income | ||||||||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||||
Revenues by segment | ||||||||||||||||
Operating Assets revenues | $ | $ | $ | $ | ||||||||||||
Master Planned Communities revenues | ||||||||||||||||
Seaport District revenues | ||||||||||||||||
Strategic Developments revenues | ||||||||||||||||
Corporate revenues | ||||||||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||||
Contract | ||||
(In thousands) | Liabilities | |||
Balance as of December 31, 2019 | $ | |||
Consideration earned during the period | ( | ) | ||
Consideration received during the period | ||||
Balance as of June 30, 2020 | $ | |||
(In thousands) | Less than 1 year | 1-2 years | 3 years and thereafter | |||||||||
Total remaining unsatisfied performance obligations | $ | $ | $ | |||||||||
(In thousands) | June 30, 2020 | |||
Assets | ||||
Operating lease right-of-use assets | $ | |||
Riverwalk impairment | ( | ) | ||
Total leased assets | $ | |||
Liabilities | ||||
Operating lease liabilities | $ | |||
Total leased liabilities | $ | |||
(In thousands) | Three Months Ended | Six Months Ended | ||||||
Lease cost | June 30, 2020 | June 30, 2020 | ||||||
Operating lease cost | $ | $ | ||||||
Variable lease costs | ||||||||
Net lease cost | $ | $ | ||||||
(In thousands) | Operating | |||
Year Ended December 31, | Leases | |||
2020 (excluding the six months ended June 30, 2020) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
Thereafter | ||||
Total lease payments | ||||
Less: imputed interest | ( | ) | ||
Present value of lease liabilities | $ | |||
(In thousands) | Six Months Ended | |||
Supplemental Condensed Consolidated Statements of Cash Flows Information | June 30, 2020 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows on operating leases | $ | |||
Other Information | June 30, 2020 | ||
Weighted-average remaining lease term (years) | |||
Operating leases | |||
Weighted-average discount rate | |||
Operating leases | % | ||
Three Months Ended | Six Months Ended | |||||||
(In thousands) | June 30, 2020 | June 30, 2020 | ||||||
Total minimum rent payments | $ | $ | ||||||
Total | ||||
Year Ending December 31, | Minimum Rent | |||
(In thousands) | ||||
2020 (excluding the six months ended June 30, 2020) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
Thereafter | ||||
Total | $ | |||
• | Operating Assets – consists of retail, office, hospitality and multi-family properties along with other real estate investments. These assets are currently generating revenues and are comprised of commercial real estate properties recently developed or acquired, and properties with an opportunity to redevelop, reposition or sell 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 |
• | 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. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Operating Assets Segment EBT | ||||||||||||||||
Total revenues (a) | $ | $ | $ | $ | ||||||||||||
Total operating expenses (b) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Segment operating income | ||||||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income, net | ||||||||||||||||
Equity in earnings from real estate and other affiliates | ||||||||||||||||
Gain on sale or disposal of real estate | ||||||||||||||||
Provision for impairment | ( | ) | ||||||||||||||
Segment EBT | ( | ) | ( | ) | ||||||||||||
MPC Segment EBT | ||||||||||||||||
Total revenues | ||||||||||||||||
Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Segment operating income | ||||||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest income, net | ||||||||||||||||
Other income, net | ||||||||||||||||
Equity in (losses) earnings from real estate and other affiliates | ( | ) | ||||||||||||||
Segment EBT | ||||||||||||||||
Seaport District Segment EBT | ||||||||||||||||
Total revenues | ||||||||||||||||
Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Segment operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other loss, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Equity in losses from real estate and other affiliates | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Loss on sale or disposal of real estate | ( | ) | ||||||||||||||
Segment EBT | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Strategic Developments Segment EBT | ||||||||||||||||
Total revenues | ||||||||||||||||
Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Segment operating (loss) income | ( | ) | ( | ) | ||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest income, net | ||||||||||||||||
Other income (loss), net | ( | ) | ||||||||||||||
Equity in earnings from real estate and other affiliates | ||||||||||||||||
Gain (loss) on sale or disposal of real estate, net | ( | ) | ( | ) | ||||||||||||
Segment EBT | ( | ) | ( | ) | ||||||||||||
Consolidated Segment EBT | ||||||||||||||||
Total revenues | ||||||||||||||||
Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Segment operating income | ||||||||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income (loss), net | ( | ) | ||||||||||||||
Equity in (losses) earnings from real estate and other affiliates | ( | ) | ||||||||||||||
Gain (loss) on sale or disposal of real estate, net | ( | ) | ( | ) | ||||||||||||
Provision for impairment | ( | ) | ||||||||||||||
Consolidated segment EBT | ( | ) | ( | ) | ||||||||||||
Corporate income, expenses and other items | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net (loss) income | ( | ) | ( | ) | ||||||||||||
Net income (loss) attributable to noncontrolling interests | ( | ) | ||||||||||||||
Net (loss) income attributable to common stockholders | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
(a) | Includes hospitality revenues for the three and six months ended June 30, 2020, of $ |
(b) | Includes hospitality operating costs for the three and six months ended June 30, 2020, of $ |
June 30, | December 31, | |||||||
(In thousands) | 2020 | 2019 | ||||||
Operating Assets | $ | $ | ||||||
Master Planned Communities | ||||||||
Seaport District | ||||||||
Strategic Developments | ||||||||
Total segment assets | ||||||||
Corporate | ||||||||
Total assets | $ | $ | ||||||
• | the impact of COVID-19, including the recent surge of COVID-19 cases in regions where we operate, on our business and numerous governmental restrictions and other orders instituted in response to the COVID-19 pandemic on our business; |
• | our “Transformation Plan”, including new executive leadership, reduction in our overhead expenses, the proposed sale of our non-core assets and accelerated growth in our core Master Planned Communities (“MPC”) assets; |
• | expected performance of our stabilized, income-producing properties and the performance and stabilization timing of properties that we have recently placed into service or are under construction; |
• | forecasts of our future economic performance; |
• | expected capital required for our operations and development opportunities for our properties; |
• | the impact of technology on our operations and business; |
• | expected performance of our MPC segment; |
• | expected commencement and completion for property developments and timing and amount of sales or rentals of certain properties; |
• | estimates of our future liquidity, development opportunities, development spending and management plans; and |
• | descriptions of assumptions underlying or relating to any of the foregoing. |
• | On June 22, 2020, we 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. |
• | On May 20, 2020, we 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. |
• | NOI decreased $19.8 million due to decreases of $11.4 million, $7.5 million and $7.5 million in our hospitality, retail and other properties, respectively, primarily due to the temporary closures of hospitality and retail properties and cancellation of the Las Vegas Aviators 2020 baseball season as a result of the COVID-19 pandemic. These decreases were partially offset by a $7.6 million increase in our office properties primarily due to The Woodlands Towers at the Waterway acquisition. |
• | Segment earnings before taxes (“EBT”) decreased by $6.5 million primarily due to lower Equity in (losses) earnings from real estate and other affiliates at The Summit as well as lower land sales revenues. |
• | EBT excluding the effects of Equity in (losses) earnings from real estate and other affiliates increased by $2.9 million primarily driven by an increase in The Woodlands land sales revenue and Bridgeland land sales revenue remaining consistent with 2019 despite the effects of COVID-19. |
• | Increased The Woodlands price per acre 195.9% from $560,000 to $1,657,000, respectively, due to land sales in a high-end, exclusive section of the community that generates significantly higher value per acre. |
• | Segment EBT decreased $10.4 million to a loss of $24.6 million primarily due to a $6.0 million impairment of the Company’s equity investment in Mr. C Seaport. |
• | Seaport District NOI remained relatively flat at a net operating loss of $3.4 million primarily due to a $0.4 million decrease in our managed business entities and a $0.3 million decrease in our landlord operations, partially offset by a $0.2 million increase in our events, sponsorships, and catering category. The decreases in NOI were primarily a result of business closures and cancellation of events related to the COVID-19 pandemic. |
• | Recognized segment loss before taxes of $2.2 million, a decrease of $15.6 million primarily due to the timing of condominium closings and a $5.1 million write down of condo inventory, partially offset by the $8.0 million termination payment received related to the sale of West Windsor in October 2019. The Company closed a portion of Ae‘o in early 2019, with no new condominium towers delivered in 2020. |
• | Continued sales at Ward Village by contracting to sell 13 condominiums in the second quarter of 2020. The primary driver of the increase is Victoria Place, which contributed 11 contracted units. |
• | Victoria Place, our newest building that began public sales in December 2019, was 67.6% presold as of June 30, 2020. |
• | Excluding Victoria Place, we have sold 2,435 residential units at our six under construction towers in Ward Village since inception, bringing the total percentage sold at these condominium towers to 90.3%. |
• | cash expenditures, or future requirements for capital expenditures or contractual commitments; |
• | corporate general and administrative expenses; |
• | interest expense on our corporate debt; |
• | income taxes that we may be required to pay; |
• | any cash requirements for replacement of fully depreciated or amortized assets; and |
• | limitations on, or costs related to, the transfer of earnings from our real estate and other affiliates to us. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | |||||||||||||||||
Operating Assets Segment EBT | |||||||||||||||||||||||
Total revenues (a) | $ | 84,277 | $ | 109,219 | $ | (24,942 | ) | $ | 198,534 | $ | 201,172 | $ | (2,638 | ) | |||||||||
Total operating expenses (b) | (42,222 | ) | (48,727 | ) | 6,505 | (94,462 | ) | (91,639 | ) | (2,823 | ) | ||||||||||||
Segment operating income | 42,055 | 60,492 | (18,437 | ) | 104,072 | 109,533 | (5,461 | ) | |||||||||||||||
Depreciation and amortization | (36,995 | ) | (28,938 | ) | (8,057 | ) | (74,084 | ) | (56,046 | ) | (18,038 | ) | |||||||||||
Interest expense, net | (23,103 | ) | (20,059 | ) | (3,044 | ) | (49,296 | ) | (39,050 | ) | (10,246 | ) | |||||||||||
Other income, net | 226 | 1,088 | (862 | ) | 167 | 1,123 | (956 | ) | |||||||||||||||
Equity in earnings from real estate and other affiliates | 475 | 45 | 430 | 4,869 | 2,754 | 2,115 | |||||||||||||||||
Gain on sale or disposal of real estate | — | — | — | 38,124 | — | 38,124 | |||||||||||||||||
Provision for impairment | — | — | — | (48,738 | ) | — | (48,738 | ) | |||||||||||||||
Segment EBT | (17,342 | ) | 12,628 | (29,970 | ) | (24,886 | ) | 18,314 | (43,200 | ) | |||||||||||||
MPC Segment EBT | |||||||||||||||||||||||
Total revenues | 68,913 | 72,859 | (3,946 | ) | 119,359 | 123,755 | (4,396 | ) | |||||||||||||||
Total operating expenses | (31,970 | ) | (38,913 | ) | 6,943 | (55,692 | ) | (65,979 | ) | 10,287 | |||||||||||||
Segment operating income | 36,943 | 33,946 | 2,997 | 63,667 | 57,776 | 5,891 | |||||||||||||||||
Depreciation and amortization | (91 | ) | (86 | ) | (5 | ) | (182 | ) | (246 | ) | 64 | ||||||||||||
Interest income, net | 8,303 | 8,283 | 20 | 16,857 | 15,826 | 1,031 | |||||||||||||||||
Other income, net | — | 72 | (72 | ) | — | 67 | (67 | ) | |||||||||||||||
Equity in (losses) earnings from real estate and other affiliates | (2,968 | ) | 6,499 | (9,467 | ) | 5,966 | 14,336 | (8,370 | ) | ||||||||||||||
Segment EBT | 42,187 | 48,714 | (6,527 | ) | 86,308 | 87,759 | (1,451 | ) | |||||||||||||||
Seaport District Segment EBT | |||||||||||||||||||||||
Total revenues | 2,272 | 12,891 | (10,619 | ) | 11,966 | 19,921 | (7,955 | ) | |||||||||||||||
Total operating expenses | (8,464 | ) | (17,972 | ) | 9,508 | (22,775 | ) | (32,405 | ) | 9,630 | |||||||||||||
Segment operating loss | (6,192 | ) | (5,081 | ) | (1,111 | ) | (10,809 | ) | (12,484 | ) | 1,675 | ||||||||||||
Depreciation and amortization | (6,776 | ) | (6,753 | ) | (23 | ) | (27,651 | ) | (12,946 | ) | (14,705 | ) | |||||||||||
Interest expense, net | (4,626 | ) | (1,924 | ) | (2,702 | ) | (9,679 | ) | (3,456 | ) | (6,223 | ) | |||||||||||
Other loss, net | (409 | ) | (61 | ) | (348 | ) | (3,777 | ) | (147 | ) | (3,630 | ) | |||||||||||
Equity in losses from real estate and other affiliates | (6,633 | ) | (451 | ) | (6,182 | ) | (8,676 | ) | (1,083 | ) | (7,593 | ) | |||||||||||
Loss on sale or disposal of real estate | — | — | — | — | (6 | ) | 6 | ||||||||||||||||
Segment EBT | (24,636 | ) | (14,270 | ) | (10,366 | ) | (60,592 | ) | (30,122 | ) | (30,470 | ) | |||||||||||
Strategic Developments Segment EBT | |||||||||||||||||||||||
Total revenues | 624 | 236,347 | (235,723 | ) | 1,384 | 440,358 | (438,974 | ) | |||||||||||||||
Total operating expenses | (12,517 | ) | (224,711 | ) | 212,194 | (116,816 | ) | (371,014 | ) | 254,198 | |||||||||||||
Segment operating (loss) income | (11,893 | ) | 11,636 | (23,529 | ) | (115,432 | ) | 69,344 | (184,776 | ) | |||||||||||||
Depreciation and amortization | (1,650 | ) | (1,260 | ) | (390 | ) | (3,411 | ) | (2,316 | ) | (1,095 | ) | |||||||||||
Interest income, net | 1,057 | 3,235 | (2,178 | ) | 2,988 | 6,497 | (3,509 | ) | |||||||||||||||
Other income (loss), net | 1,668 | (383 | ) | 2,051 | 1,293 | 310 | 983 | ||||||||||||||||
Equity in earnings from real estate and other affiliates | 574 | 261 | 313 | 638 | 298 | 340 | |||||||||||||||||
Gain (loss) on sale or disposal of real estate, net | 8,000 | (144 | ) | 8,144 | 8,000 | (144 | ) | 8,144 | |||||||||||||||
Segment EBT | (2,244 | ) | 13,345 | (15,589 | ) | (105,924 | ) | 73,989 | (179,913 | ) | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | |||||||||||||||||
Consolidated Segment EBT | |||||||||||||||||||||||
Total revenues | 156,086 | 431,316 | (275,230 | ) | 331,243 | 785,206 | (453,963 | ) | |||||||||||||||
Total operating expenses | (95,173 | ) | (330,323 | ) | 235,150 | (289,745 | ) | (561,037 | ) | 271,292 | |||||||||||||
Segment operating income | 60,913 | 100,993 | (40,080 | ) | 41,498 | 224,169 | (182,671 | ) | |||||||||||||||
Depreciation and amortization | (45,512 | ) | (37,037 | ) | (8,475 | ) | (105,328 | ) | (71,554 | ) | (33,774 | ) | |||||||||||
Interest expense, net | (18,369 | ) | (10,465 | ) | (7,904 | ) | (39,130 | ) | (20,183 | ) | (18,947 | ) | |||||||||||
Other income (loss), net | 1,485 | 716 | 769 | (2,317 | ) | 1,353 | (3,670 | ) | |||||||||||||||
Equity in (losses) earnings from real estate and other affiliates | (8,552 | ) | 6,354 | (14,906 | ) | 2,797 | 16,305 | (13,508 | ) | ||||||||||||||
Gain (loss) on sale or disposal of real estate, net | 8,000 | (144 | ) | 8,144 | 46,124 | (150 | ) | 46,274 | |||||||||||||||
Provision for impairment | — | — | — | (48,738 | ) | — | (48,738 | ) | |||||||||||||||
Consolidated segment EBT | (2,035 | ) | 60,417 | (62,452 | ) | (105,094 | ) | 149,940 | (255,034 | ) | |||||||||||||
Corporate income, expenses and other items | (32,068 | ) | (47,089 | ) | 15,021 | (54,091 | ) | (104,687 | ) | 50,596 | |||||||||||||
Net (loss) income | (34,103 | ) | 13,328 | (47,431 | ) | (159,185 | ) | 45,253 | (204,438 | ) | |||||||||||||
Net income (loss) attributable to noncontrolling interests | 19 | 149 | (130 | ) | (33 | ) | 45 | (78 | ) | ||||||||||||||
Net (loss) income attributable to common stockholders | $ | (34,084 | ) | $ | 13,477 | $ | (47,561 | ) | $ | (159,218 | ) | $ | 45,298 | $ | (204,516 | ) | |||||||
(a) | Includes hospitality revenues for the three and six months ended June 30, 2020, of $2.5 million and $19.8 million, respectively, and $25.6 million and $48.5 million for the three and six months ended June 30, 2019, respectively. |
(b) | Includes hospitality operating costs for the three and six months ended June 30, 2020, of $4.4 million and $17.2 million, respectively, and $16.6 million and $32.2 million for the three and six months ended June 30, 2019, respectively. |
Operating Assets Segment EBT | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | ||||||||||||||||||
Total revenues | $ | 84,277 | $ | 109,219 | $ | (24,942 | ) | $ | 198,534 | $ | 201,172 | $ | (2,638 | ) | ||||||||||
Total operating expenses | (42,222 | ) | (48,727 | ) | 6,505 | (94,462 | ) | (91,639 | ) | (2,823 | ) | |||||||||||||
Segment operating income | 42,055 | 60,492 | (18,437 | ) | 104,072 | 109,533 | (5,461 | ) | ||||||||||||||||
Depreciation and amortization | (36,995 | ) | (28,938 | ) | (8,057 | ) | (74,084 | ) | (56,046 | ) | (18,038 | ) | ||||||||||||
Interest expense, net | (23,103 | ) | (20,059 | ) | (3,044 | ) | (49,296 | ) | (39,050 | ) | (10,246 | ) | ||||||||||||
Other income, net | 226 | 1,088 | (862 | ) | 167 | 1,123 | (956 | ) | ||||||||||||||||
Equity in earnings from real estate and other affiliates | 475 | 45 | 430 | 4,869 | 2,754 | 2,115 | ||||||||||||||||||
Gain on sale or disposal of real estate | — | — | — | 38,124 | — | 38,124 | ||||||||||||||||||
Provision for impairment | — | — | — | (48,738 | ) | — | (48,738 | ) | ||||||||||||||||
Segment EBT | $ | (17,342 | ) | $ | 12,628 | $ | (29,970 | ) | $ | (24,886 | ) | $ | 18,314 | $ | (43,200 | ) | ||||||||
Reconciliation of Operating Assets Segment EBT to NOI | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | ||||||||||||||||||
Total Operating Assets segment EBT | $ | (17,342 | ) | $ | 12,628 | $ | (29,970 | ) | $ | (24,886 | ) | $ | 18,314 | $ | (43,200 | ) | ||||||||
Depreciation and amortization | 36,995 | 28,938 | 8,057 | 74,084 | 56,046 | 18,038 | ||||||||||||||||||
Interest expense, net | 23,103 | 20,059 | 3,044 | 49,296 | 39,050 | 10,246 | ||||||||||||||||||
Equity in earnings from real estate and other affiliates | (475 | ) | (45 | ) | (430 | ) | (4,869 | ) | (2,754 | ) | (2,115 | ) | ||||||||||||
Gain on sale or disposal of real estate and other assets, net | — | — | — | (38,124 | ) | — | (38,124 | ) | ||||||||||||||||
Provision for impairment | — | — | — | 48,738 | — | 48,738 | ||||||||||||||||||
Impact of straight-line rent | (3,248 | ) | (2,537 | ) | (711 | ) | (6,351 | ) | (5,382 | ) | (969 | ) | ||||||||||||
Other | (119 | ) | (340 | ) | 221 | 54 | (218 | ) | 272 | |||||||||||||||
Operating Assets NOI | $ | 38,914 | $ | 58,703 | $ | (19,789 | ) | $ | 97,942 | $ | 105,056 | $ | (7,114 | ) | ||||||||||
MPC Segment EBT | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | ||||||||||||||||||
Total revenues | $ | 68,913 | $ | 72,859 | $ | (3,946 | ) | $ | 119,359 | $ | 123,755 | $ | (4,396 | ) | ||||||||||
Total operating expenses | (31,970 | ) | (38,913 | ) | 6,943 | (55,692 | ) | (65,979 | ) | 10,287 | ||||||||||||||
Segment operating income | 36,943 | 33,946 | 2,997 | 63,667 | 57,776 | 5,891 | ||||||||||||||||||
Depreciation and amortization | (91 | ) | (86 | ) | (5 | ) | (182 | ) | (246 | ) | 64 | |||||||||||||
Interest income, net | 8,303 | 8,283 | 20 | 16,857 | 15,826 | 1,031 | ||||||||||||||||||
Other income, net | — | 72 | (72 | ) | — | 67 | (67 | ) | ||||||||||||||||
Equity in (losses) earnings from real estate and other affiliates | (2,968 | ) | 6,499 | (9,467 | ) | 5,966 | 14,336 | (8,370 | ) | |||||||||||||||
Segment EBT | $ | 42,187 | $ | 48,714 | $ | (6,527 | ) | $ | 86,308 | $ | 87,759 | $ | (1,451 | ) | ||||||||||
MPC Net Contribution | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | ||||||||||||||||||
MPC Segment EBT | $ | 42,187 | $ | 48,714 | $ | (6,527 | ) | $ | 86,308 | $ | 87,759 | $ | (1,451 | ) | ||||||||||
Plus: | ||||||||||||||||||||||||
Cost of sales - land | 25,875 | 28,006 | (2,131 | ) | 42,661 | 44,824 | (2,163 | ) | ||||||||||||||||
Depreciation and amortization | 91 | 86 | 5 | 182 | 246 | (64 | ) | |||||||||||||||||
MUD and SID bonds collections, net (a) | 4,935 | 119 | 4,816 | 6,058 | 981 | 5,077 | ||||||||||||||||||
Distributions from real estate and other affiliates | 1,173 | 1,306 | (133 | ) | 2,345 | 2,741 | (396 | ) | ||||||||||||||||
Less: | ||||||||||||||||||||||||
MPC development expenditures | (51,488 | ) | (63,071 | ) | 11,583 | (116,384 | ) | (119,843 | ) | 3,459 | ||||||||||||||
MPC land acquisitions | — | — | — | — | (752 | ) | 752 | |||||||||||||||||
Equity in losses (earnings) in real estate and other affiliates | 2,968 | (6,499 | ) | 9,467 | (5,966 | ) | (14,336 | ) | 8,370 | |||||||||||||||
MPC Net Contribution | $ | 25,741 | $ | 8,661 | $ | 17,080 | $ | 15,204 | $ | 1,620 | $ | 13,584 | ||||||||||||
(a) | SID collections are shown net of SID transfers to buyers in the respective periods. |
(In thousands) | Bridgeland | Columbia | Summerlin | The Woodlands | The Woodlands Hills | Total MPC | ||||||||||||||||||
Balance at December 31, 2019 | $ | 487,314 | $ | 16,643 | $ | 845,440 | $ | 186,773 | $ | 119,504 | $ | 1,655,674 | ||||||||||||
MPC development expenditures (a) | 55,162 | (6 | ) | 50,830 | 3,550 | 6,848 | 116,384 | |||||||||||||||||
MPC cost of sales | (11,669 | ) | — | (17,336 | ) | (11,780 | ) | (1,876 | ) | (42,661 | ) | |||||||||||||
MUD reimbursable costs (b) | (39,981 | ) | — | — | (425 | ) | (4,192 | ) | (44,598 | ) | ||||||||||||||
Other (c) | (8,771 | ) | (12 | ) | (5,038 | ) | (376 | ) | (227 | ) | (14,424 | ) | ||||||||||||
Balance at June 30, 2020 | $ | 482,055 | $ | 16,625 | $ | 873,896 | $ | 177,742 | $ | 120,057 | $ | 1,670,375 | ||||||||||||
(a) | Development expenditures are inclusive of capitalized interest and property taxes. |
(b) | MUD reimbursable costs represent land development expenditures transferred to MUD Receivables. |
(c) | Primarily consists of changes in accrued development expenditures payable. |
Seaport District Segment EBT | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | |||||||||||||||||
Total revenues | $ | 2,272 | $ | 12,891 | $ | (10,619 | ) | $ | 11,966 | $ | 19,921 | $ | (7,955 | ) | |||||||||
Total operating expenses | (8,464 | ) | (17,972 | ) | 9,508 | (22,775 | ) | (32,405 | ) | 9,630 | |||||||||||||
Segment operating loss | (6,192 | ) | (5,081 | ) | (1,111 | ) | (10,809 | ) | (12,484 | ) | 1,675 | ||||||||||||
Depreciation and amortization | (6,776 | ) | (6,753 | ) | (23 | ) | (27,651 | ) | (12,946 | ) | (14,705 | ) | |||||||||||
Interest expense, net | (4,626 | ) | (1,924 | ) | (2,702 | ) | (9,679 | ) | (3,456 | ) | (6,223 | ) | |||||||||||
Other loss, net | (409 | ) | (61 | ) | (348 | ) | (3,777 | ) | (147 | ) | (3,630 | ) | |||||||||||
Equity in losses from real estate and other affiliates | (6,633 | ) | (451 | ) | (6,182 | ) | (8,676 | ) | (1,083 | ) | (7,593 | ) | |||||||||||
Loss on sale or disposal of real estate | — | — | — | — | (6 | ) | 6 | ||||||||||||||||
Segment EBT | $ | (24,636 | ) | $ | (14,270 | ) | $ | (10,366 | ) | $ | (60,592 | ) | $ | (30,122 | ) | $ | (30,470 | ) | |||||
Reconciliation of Seaport District Segment EBT to NOI | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | ||||||||||||||||||
Total Seaport District segment EBT | $ | (24,636 | ) | $ | (14,270 | ) | $ | (10,366 | ) | $ | (60,592 | ) | $ | (30,122 | ) | $ | (30,470 | ) | ||||||
Depreciation and amortization | 6,776 | 6,753 | 23 | 27,651 | 12,946 | 14,705 | ||||||||||||||||||
Interest expense, net | 4,626 | 1,924 | 2,702 | 9,679 | 3,456 | 6,223 | ||||||||||||||||||
Equity in losses from real estate and other affiliates | 6,633 | 451 | 6,182 | 8,676 | 1,083 | 7,593 | ||||||||||||||||||
Loss on sale or disposal of real estate | — | — | — | — | 6 | (6 | ) | |||||||||||||||||
Impact of straight-line rent | 1,208 | 491 | 717 | 1,333 | 1,246 | 87 | ||||||||||||||||||
Other loss, net (a) | 1,953 | 1,764 | 189 | 5,923 | 4,513 | 1,410 | ||||||||||||||||||
Seaport District NOI | $ | (3,440 | ) | $ | (2,887 | ) | $ | (553 | ) | $ | (7,330 | ) | $ | (6,872 | ) | $ | (458 | ) | ||||||
(a) | Includes miscellaneous development-related items as well as the loss related to the write-off of inventory due to the permanent closure of 10 Corso Como Retail and Café in the first quarter of 2020. |
Strategic Developments Segment EBT | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(In thousands) | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | |||||||||||||||||
Total revenues | $ | 624 | $ | 236,347 | $ | (235,723 | ) | $ | 1,384 | $ | 440,358 | $ | (438,974 | ) | |||||||||
Total operating expenses | (12,517 | ) | (224,711 | ) | 212,194 | (116,816 | ) | (371,014 | ) | 254,198 | |||||||||||||
Segment operating (loss) income | (11,893 | ) | 11,636 | (23,529 | ) | (115,432 | ) | 69,344 | (184,776 | ) | |||||||||||||
Depreciation and amortization | (1,650 | ) | (1,260 | ) | (390 | ) | (3,411 | ) | (2,316 | ) | (1,095 | ) | |||||||||||
Interest income, net | 1,057 | 3,235 | (2,178 | ) | 2,988 | 6,497 | (3,509 | ) | |||||||||||||||
Other income (loss), net | 1,668 | (383 | ) | 2,051 | 1,293 | 310 | 983 | ||||||||||||||||
Equity in earnings from real estate and other affiliates | 574 | 261 | 313 | 638 | 298 | 340 | |||||||||||||||||
Gain (loss) on sale or disposal of real estate, net | 8,000 | (144 | ) | 8,144 | 8,000 | (144 | ) | 8,144 | |||||||||||||||
Segment EBT | $ | (2,244 | ) | $ | 13,345 | $ | (15,589 | ) | $ | (105,924 | ) | $ | 73,989 | $ | (179,913 | ) | |||||||
• | 6100 Merriweather and Garage |
• | Creekside Park West |
• | Pier 17 |
($ in thousands) | Total Estimated Costs (a) | Costs Paid Through June 30, 2020 (b) | Estimated Remaining to be Spent | Remaining Buyer Deposits/Holdback to be Drawn | Debt to be Drawn (c) | Costs Remaining to be Paid, Net of Debt and Buyer Deposits/Holdbacks to be Drawn (c) | Estimated Completion Date | |||||||||||||||||||
Operating Assets | (A) | (B) | (A) - (B) = (C) | (D) | (E) | (C) - (D) - (E) = (F) | ||||||||||||||||||||
Columbia | ||||||||||||||||||||||||||
6100 Merriweather and Garage | $ | 138,221 | $ | 99,787 | $ | 38,434 | $ | — | $ | 37,179 | $ | 1,255 | (d) | Open | ||||||||||||
Juniper Apartments | 116,386 | 92,312 | 24,074 | — | 23,907 | 167 | Open | |||||||||||||||||||
The Woodlands | ||||||||||||||||||||||||||
Creekside Park West | 22,625 | 18,095 | 4,530 | — | 3,662 | 868 | (d) | Open | ||||||||||||||||||
8770 New Trails | 45,985 | 37,750 | 8,235 | — | 6,797 | 1,438 | Open | |||||||||||||||||||
Two Lakes Edge | 107,706 | 89,780 | 17,926 | — | 15,206 | 2,720 | Open | |||||||||||||||||||
Bridgeland | ||||||||||||||||||||||||||
Lakeside Row | 48,412 | 41,133 | 7,279 | — | 5,444 | 1,835 | Open | |||||||||||||||||||
Summerlin | ||||||||||||||||||||||||||
Tanager Apartments | 59,276 | 52,266 | 7,010 | — | 4,777 | 2,233 | Open | |||||||||||||||||||
Total Operating Assets | 538,611 | 431,123 | 107,488 | — | 96,972 | 10,516 | ||||||||||||||||||||
Seaport District | ||||||||||||||||||||||||||
Pier 17 and Seaport District Historic Area / Uplands | 659,018 | 597,501 | 61,517 | — | — | 61,517 | (d)(e)(f) | Open | ||||||||||||||||||
Tin Building | 173,452 | 89,453 | 83,999 | — | — | 83,999 | (f) | 2021 | ||||||||||||||||||
Total Seaport District | 832,470 | 686,954 | 145,516 | — | — | 145,516 | ||||||||||||||||||||
Strategic Developments | ||||||||||||||||||||||||||
Chicago | ||||||||||||||||||||||||||
110 North Wacker | 722,643 | 434,629 | 288,014 | — | 288,014 | — | (g) | Q3 2020 | ||||||||||||||||||
Columbia | ||||||||||||||||||||||||||
Merriweather District Area 3 Standalone Retail | 5,680 | 2,622 | 3,058 | — | — | 3,058 | Q4 2020 | |||||||||||||||||||
The Woodlands | ||||||||||||||||||||||||||
Creekside Park Apartments Phase II | 57,472 | 11,629 | 45,843 | — | 43,386 | 2,457 | Q2 2021 | |||||||||||||||||||
Millennium Phase III Apartments | 45,033 | 20,433 | 24,600 | — | 24,031 | 569 | Q4 2020 | |||||||||||||||||||
Ward Village | ||||||||||||||||||||||||||
‘A‘ali‘i | 411,900 | 190,578 | 221,322 | 9,635 | 220,919 | (9,232 | ) | (h) | 2021 | |||||||||||||||||
Anaha | 401,314 | 398,063 | 3,251 | — | — | 3,251 | Open | |||||||||||||||||||
Ke Kilohana | 218,898 | 213,560 | 5,338 | — | — | 5,338 | (i) | Open | ||||||||||||||||||
Kō'ula | 487,039 | 75,100 | 411,939 | 95,905 | 304,223 | 11,811 | (j) | 2022 | ||||||||||||||||||
Waiea | 566,084 | 423,909 | 142,175 | — | — | 142,175 | (k) | Open | ||||||||||||||||||
Total Strategic Developments | 2,916,063 | 1,770,523 | 1,145,540 | 105,540 | 880,573 | 159,427 | ||||||||||||||||||||
Combined Total at June 30, 2020 | $ | 4,287,144 | $ | 2,888,600 | $ | 1,398,544 | $ | 105,540 | $ | 977,545 | $ | 315,459 | ||||||||||||||
(a) | Total Estimated Costs represent all costs to be incurred on the project which include construction costs, demolition costs, marketing costs, capitalized leasing, payroll or project development fees, deferred financing costs and advances for certain accrued costs from lenders and excludes land costs and capitalized corporate interest allocated to the project. Total Estimated Costs for assets at Ward Village and Columbia exclude master plan infrastructure and amenity costs at Ward Village and Merriweather District. |
(b) | Costs included in (a) above which have been paid through June 30, 2020. |
(c) | With respect to our condominium projects, remaining debt to be drawn is reduced by deposits utilized for construction. |
(d) | Final completion is dependent on lease-up and tenant build-out. |
(e) | Pier 17 and Seaport District Historic Area / Uplands Total Estimated Costs and Costs Paid Through June 30, 2020, include costs required for the Pier 17 and Seaport District Historic Area / Uplands and are not reduced by the insurance proceeds received to date. |
(f) | We closed on a $250.0 million loan for the redevelopment of the Seaport District during the three months ended June 30, 2019. All proceeds, less the interest escrow, have been received, and future project costs will be funded with the loan proceeds, which are included in our cash balance. |
(g) | 110 North Wacker is a consolidated VIE discussed further in Note 3 - Real Estate and Other Affiliates. Total Estimated Costs exclude $76.0 million of the $86.0 million land value contributed to the venture at closing; The Debt to be Drawn includes future draws on the construction loan and anticipated equity partner and JV partner contributions. Costs Remaining to be Paid represent our remaining equity commitment. At loan closing, we received a $52.2 million cash distribution from the venture. In May 2019, we closed on a loan modification which reduced the amount of equity we are required to put into the project by $35.3 million. |
(h) | Negative balances represent cash to be received in excess of Estimated Remaining to be Spent. These items are primarily related to June 2020 costs that were paid by us, but not yet reimbursed by our lenders. We expect to receive funds from our lenders for these costs in the future. |
(i) | The Ke Kilohana facility was repaid in June 2019 in conjunction with closing on the sales of units at the property. |
(j) | We closed on a $356.8 million loan for the development of Kō'ula during the three months ended March 31, 2020. |
(k) | Total estimate includes $115.4 million for necessary warranty repairs. However, we anticipate recovering a substantial amount of these costs in the future which is not reflected in this schedule. Refer to Note 10 - Commitments and Contingencies for additional information. |
• | $11.3 million decrease in the Provision for income taxes primarily due to a $58.7 million decrease in income before taxes; |
• | $10.2 million decrease in General and administrative expenses primarily related to the reduction of labor costs due to workforce reductions, which are part of an overall plan to reduce recurring overhead costs, and lower travel and entertainment costs, which are attributable to COVID-19 travel restrictions; and |
• | $4.0 million decrease in Development-related marketing costs primarily related to the reduction of costs at parts of Ward Village, including Kō'ula and ‘A‘ali‘i; Las Vegas Ballpark and the Seaport District. |
• | $9.5 million decrease in corporate other income (loss), net due to the receipt of Superstorm Sandy insurance proceeds in the second quarter of 2019, which did not recur in 2020; and |
• | $2.1 million increase in corporate interest expense, net primarily due to a decrease in interest income due to lower interest rates as well as a higher balance on our Revolver Loan, which we drew on at the end of March 2020. |
• | $56.4 million decrease in the (Benefit) provision for income taxes primarily due to a $260.9 million decrease in income before taxes; and |
• | $6.9 million decrease in Development-related marketing costs primarily related to the reduction of costs at parts of Ward Village, including Kō'ula and ‘A‘ali‘i; Las Vegas Ballpark and the Seaport District. |
• | $8.9 million decrease in corporate other income (loss), net due to the receipt of Superstorm Sandy insurance proceeds in the second quarter of 2019, which did not recur in 2020; and |
• | $3.6 million increase in corporate interest expense, net related to a higher balance on our Revolver Loan, which we drew on at the end of March 2020, as well as a decrease in interest income due to lower interest rates. |
(In thousands) Segment Basis (a) | Operating Assets (b) | Master Planned Communities (c) | Seaport District (d) | Strategic Developments (e) | Segment Totals | Non- Segment Amounts | June 30, 2020 | ||||||||||||||||||||
Mortgages, notes and loans payable | $ | 2,340,663 | $ | 266,988 | $ | 340,125 | $ | 398,784 | $ | 3,346,560 | $ | 1,054,503 | $ | 4,401,063 | |||||||||||||
Mortgages, notes and loans payable of real estate and other affiliates | 79,331 | 6,205 | 14,350 | — | 99,886 | — | 99,886 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||||||
Cash and cash equivalents | (42,161 | ) | (99,211 | ) | (4,221 | ) | (7,104 | ) | (152,697 | ) | (777,900 | ) | (930,597 | ) | |||||||||||||
Cash and cash equivalents of real estate and other affiliates | (3,118 | ) | (47,525 | ) | (834 | ) | (1,434 | ) | (52,911 | ) | — | (52,911 | ) | ||||||||||||||
Special Improvement District receivables | — | (40,963 | ) | — | — | (40,963 | ) | — | (40,963 | ) | |||||||||||||||||
Municipal Utility District receivables, net | — | (320,439 | ) | — | — | (320,439 | ) | — | (320,439 | ) | |||||||||||||||||
TIF receivable | — | — | — | (4,032 | ) | (4,032 | ) | — | (4,032 | ) | |||||||||||||||||
Net debt | $ | 2,374,715 | $ | (234,945 | ) | $ | 349,420 | $ | 386,214 | $ | 2,875,404 | $ | 276,603 | $ | 3,152,007 | ||||||||||||
(a) | Please refer to Note 18 - Segments in our Condensed Consolidated Financial Statements. |
(b) | Includes our share of Mortgages, notes and loans payable and Cash and cash equivalents of our real estate and other affiliates in the Operating Assets segment (Woodlands Sarofim #1, The Metropolitan Downtown Columbia, Stewart Title of Montgomery County and m.flats/TEN.M). |
(c) | Includes our share of Mortgages, notes and loans payable and Cash and cash equivalents of our real estate and other affiliates in the MPC segment (The Summit). |
(d) | Includes our share of Mortgages, notes and loans payable and Cash and cash equivalents of our real estate and other affiliates in the Seaport District segment (Mr. C Seaport and Bar Wayō). |
(e) | Includes our share of Cash and cash equivalents of our real estate and other affiliates in the Strategic Developments segment (KR Holdings, HHMK Development and Circle T Ranch and Power Center). |
• | our ability to continue to sell land to residential homebuilders and developers in our MPCs at attractive prices, which would lead to lower land sales revenue in our MPC segment, if such homebuilders continue to see a decline in new home sales to their consumers or if there is reduced availability of loans to support such homebuilders; |
• | our ability to continue to collect rents, on a timely basis or at all, without reductions or other concessions, in multi-family and office properties (revenues from which properties accounted for 13% of our revenues for the year ended December 31, 2019); |
• | we have reopened all of our hotels, but capacity and operations have been substantially reduced for the time being due to the significant adverse impact on the hospitality industry, which has resulted in dramatically curtailed business and leisure travel, and the recent surge in COVID-19 cases in Texas may force us to close the hotels again (revenues from our hotel properties accounted for 7% of our revenues for the year ended December 31, 2019); |
• | our ability to collect rent from our retail tenants where most retail tenants have closed their businesses (including nearly all of our retail tenants in Summerlin, Ward Village and Riverwalk) (revenues from our retail properties accounted for 12% of our revenues for the year ended December 31, 2019); |
• | reductions in demand for leased space and/or defaults under our leases, as a result of downturns in our tenants’ personal financial situations as well as commercial businesses, which include retail stores, restaurants and event attractions such as those in the Seaport District, in part due to containment measures, such as travel restrictions, mandatory government closures, quarantines, “shelter in place” orders and social distancing, as well as the overall impact on the economy and our tenants' industries (including the energy sector); |
• | lost revenue due to the cancellation of the 2020 season for the Las Vegas Aviators, our Triple-A professional baseball team, (revenues from the Las Vegas Aviators accounted for 2% of our revenues for the year ended December 31, 2019); |
• | fluctuations in regional and local economies, the residential housing and condominium markets, local real estate conditions, and tenant rental rates; |
• | our ability to continue to make condominium sales in Hawai’i and land sales in our MPCs, in light of the impact on the overall economy and consumers’ reluctance to make significant capital decisions in times of economic uncertainty, particularly if there is reduced availability of loans for such consumers; |
• | our ability to reopen the Seaport District in a timely manner, which is now completely closed, and our ability to resume the Seaport District summer concert series which has been postponed until 2021, the revenue and sponsorship of which historically has been a meaningful contribution to our annual revenue; |
• | our and our tenants’ ability to continue or complete construction as planned for their operations, or delays in the supply of materials or labor necessary for construction; |
• | the continued service and availability of personnel, including our executive officers and other leaders that are part of our management team and our ability to recruit, attract and retain skilled personnel to the extent our management or personnel |
• | our ability to ensure business continuity in the event our continuity of operations plan is not effective or improperly implemented or deployed during a disruption; |
• | a complete or partial closure of, or other operational issues at, one or more of our MPCs or our corporate headquarters resulting from government action or otherwise; |
• | delays in, or our ability to complete, our “Transformation Plan” on the expected terms or timing; and |
• | difficulty accessing debt and equity capital on attractive terms, or at all, and a severe disruption and instability in the global financial markets or deteriorations in credit and financing conditions may affect our access to capital necessary to fund business operations or address maturing liabilities. |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
4.1 | ||
4.2 | ||
4.3 | ||
4.4 | ||
4.5 | ||
4.6* | Form of Deposit Agreement | |
4.7* | Form of Warrant Agreement | |
4.8* | Form of Purchase Contract Agreement | |
4.9* | Form of Unit Agreement | |
10.1** | ||
10.2** | ||
31.1+ | ||
31.2+ | ||
32.1++ | ||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH+ | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL+ | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB+ | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE+ | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF+ | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
The Howard Hughes Corporation | |||
By: | /s/ David R. O’Reilly | ||
David R. O’Reilly | |||
President and Chief Financial Officer | |||
August 3, 2020 | |||
1. | I have reviewed this Quarterly Report on Form 10-Q of The Howard Hughes Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Paul H. Layne | |
Paul H. Layne | ||
Chief Executive Officer (principal executive officer) | ||
August 3, 2020 | ||
1. | I have reviewed this Quarterly Report on Form 10-Q of The Howard Hughes Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ David R. O’Reilly | |
David R. O’Reilly | ||
President and Chief Financial Officer | ||
August 3, 2020 | ||
7 | |||
By: | /s/ Paul H. Layne | ||
Paul H. Layne | |||
Chief Executive Officer (principal executive officer) | |||
August 3, 2020 | |||
By: | /s/ David O'Reilly | ||
David O'Reilly | |||
President and Chief Financial Officer | |||
August 3, 2020 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 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) | 55,981,559 | 43,635,893 |
| Common stock, shares outstanding (in shares) | 54,931,299 | 42,585,633 |
| Treasury stock, shares held (in shares) | 1,050,260 | 1,050,260 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Revenues: | ||||
| Minimum rents | $ 61,469 | $ 54,718 | $ 132,456 | $ 108,804 |
| Tenant recoveries | 17,202 | 13,512 | 38,077 | 27,020 |
| Interest income from sales-type leases | 35 | 0 | 917 | 0 |
| Total revenues | 156,173 | 431,316 | 331,348 | 785,206 |
| Expenses: | ||||
| Operating costs | 45,885 | 72,989 | 110,491 | 140,300 |
| Rental property real estate taxes | 15,199 | 9,674 | 28,777 | 19,505 |
| Provision for (recovery of) doubtful accounts | 1,866 | (86) | 3,567 | (88) |
| Demolition costs | 0 | 550 | 0 | 599 |
| Development-related marketing costs | 1,813 | 5,839 | 4,629 | 11,541 |
| General and administrative | 22,233 | 31,551 | 61,314 | 58,331 |
| Depreciation and amortization | 46,963 | 38,918 | 108,600 | 75,049 |
| Total expenses | 166,182 | 408,061 | 464,288 | 708,375 |
| Other: | ||||
| Provision for impairment | 0 | 0 | (48,738) | 0 |
| Gain (loss) on sale or disposal of real estate and other assets, net | 8,000 | (144) | 46,124 | (150) |
| Other income (loss), net | 1,607 | 10,288 | (2,077) | 10,461 |
| Total other | 9,607 | 10,144 | (4,691) | 10,311 |
| Operating (loss) income | (402) | 33,399 | (137,631) | 87,142 |
| Interest income | 404 | 2,251 | 1,550 | 4,824 |
| Interest expense | (32,397) | (24,203) | (66,845) | (47,529) |
| Equity in (losses) earnings from real estate and other affiliates | (8,552) | 6,354 | 2,797 | 16,305 |
| (Loss) income before taxes | (40,947) | 17,801 | (200,129) | 60,742 |
| (Benefit) provision for income taxes | (6,844) | 4,473 | (40,944) | 15,489 |
| Net (loss) income | (34,103) | 13,328 | (159,185) | 45,253 |
| Net loss (income) attributable to noncontrolling interests | 19 | 149 | (33) | 45 |
| Net (loss) income attributable to common stockholders | $ (34,084) | $ 13,477 | $ (159,218) | $ 45,298 |
| Basic (loss) income per share (in dollars per share) | $ (0.61) | $ 0.31 | $ (3.22) | $ 1.05 |
| Diluted (loss) income per share (in dollars per share) | $ (0.61) | $ 0.31 | $ (3.22) | $ 1.05 |
| Condominium rights and unit sales | ||||
| Revenues: | ||||
| Revenues | $ 0 | $ 235,622 | $ 43 | $ 433,932 |
| Expenses: | ||||
| Cost of sales | 6,348 | 220,620 | 104,249 | 358,314 |
| Master Planned Communities land sales | ||||
| Revenues: | ||||
| Revenues | 57,073 | 58,321 | 96,805 | 99,633 |
| Expenses: | ||||
| Cost of sales | 25,875 | 28,006 | 42,661 | 44,824 |
| Other land, rental and property revenues | ||||
| Revenues: | ||||
| Revenues | 11,447 | 59,774 | 46,344 | 101,253 |
| Builder price participation | ||||
| Revenues: | ||||
| Revenues | $ 8,947 | $ 9,369 | $ 16,706 | $ 14,564 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|||||
| Statement of Comprehensive Income [Abstract] | ||||||||
| Net (loss) income | $ (34,103) | $ 13,328 | $ (159,185) | $ 45,253 | ||||
| Other comprehensive loss: | ||||||||
| Interest rate swaps | [1] | (234) | (13,108) | (30,481) | (19,052) | |||
| Capitalized swap interest expense | [2] | 0 | (22) | 0 | (73) | |||
| Terminated swap amortization | (604) | (653) | (1,258) | (1,291) | ||||
| Other comprehensive loss: | (838) | (13,783) | (31,739) | (20,416) | ||||
| Comprehensive (loss) income | (34,941) | (455) | (190,924) | 24,837 | ||||
| Comprehensive income (loss) attributable to noncontrolling interests | 19 | 149 | (33) | 45 | ||||
| Comprehensive (loss) income attributable to common stockholders | $ (34,922) | $ (306) | $ (190,957) | $ 24,882 | ||||
| ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Interest rate swaps, tax (benefit) expense | $ (100,000) | $ (3,800,000) | $ (7,000,000.0) | $ (6,000,000.0) |
| Other comprehensive income loss capitalized swap interest tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Statement of Stockholders' Equity [Abstract] | ||||
| Interest rate swap, tax | $ 100 | $ 3,800 | $ 7,000 | $ 6,000 |
| Pension deferred tax benefit | 620 | |||
| Capitalized swap interest, tax (benefit) | $ 0 | $ 6 | $ 20 | $ 20 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Cash Flows from Operating Activities: | ||
| Net (loss) income | $ (159,185) | $ 45,253 |
| Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||
| Depreciation | 99,682 | 68,916 |
| Amortization | 8,517 | 4,872 |
| Amortization of deferred financing costs | 8,312 | 4,669 |
| Amortization of intangibles other than in-place leases | 340 | 448 |
| Straight-line rent amortization | (6,183) | (3,188) |
| Deferred income taxes | (41,701) | 14,823 |
| Restricted stock and stock option amortization | 3,346 | 6,230 |
| Net gain on sales and acquisitions of properties | (8,000) | 0 |
| Net gain on sale of lease receivable | (38,124) | 0 |
| Selling profit from sales-type leases | 64,155 | 0 |
| Impairment charges | 59,817 | 0 |
| Equity in (losses) earnings from real estate and other affiliates, net of distributions | (2,057) | (9,429) |
| Provision for doubtful accounts | 5,443 | 1,518 |
| Master Planned Communities land acquisitions | 0 | (752) |
| Master Planned Communities development expenditures | (116,372) | (119,843) |
| Master Planned Communities cost of sales | 41,883 | 44,740 |
| Condominium development expenditures | (114,660) | (97,125) |
| Condominium rights and unit cost of sales | 99,171 | 358,315 |
| Net changes: | ||
| Accounts and notes receivable | (14,895) | (10,269) |
| Prepaid expenses and other assets | (38,214) | 1,103 |
| Condominium deposits received | 94,644 | (105,472) |
| Deferred expenses | (19,530) | (27,961) |
| Accounts payable and accrued expenses | (25,032) | (16,591) |
| Cash (used in) provided by operating activities | (98,643) | 160,257 |
| Cash Flows from Investing Activities: | ||
| Property and equipment expenditures | (598) | (2,612) |
| Operating property improvements | (17,297) | (36,765) |
| Property development and redevelopment | (250,370) | (311,455) |
| Reimbursements under Tax Increment Financings | 2,671 | 1,880 |
| Distributions from real estate and other affiliates | 1,232 | 315 |
| Investments in real estate and other affiliates, net | (3,127) | (5,509) |
| Cash used in investing activities | (267,489) | (354,146) |
| Cash Flows from Financing Activities: | ||
| Proceeds from mortgages, notes and loans payable | 392,714 | 409,263 |
| Proceeds from issuance of common stock | 593,614 | 0 |
| Principal payments on mortgages, notes and loans payable | (51,008) | (163,555) |
| Special Improvement District bond funds released from escrow | 2,352 | 936 |
| Deferred financing costs and bond issuance costs, net | (4,088) | (13,661) |
| Taxes paid on stock options exercised and restricted stock vested | (668) | (88) |
| Stock options exercised | 1,365 | 490 |
| Contributions from noncontrolling interest | 0 | 84,889 |
| Cash provided by financing activities | 934,281 | 318,274 |
| Net change in cash, cash equivalents and restricted cash | 568,149 | 124,385 |
| Cash, cash equivalents and restricted cash at beginning of period | 620,135 | 724,215 |
| Cash, cash equivalents and restricted cash at end of period | 1,188,284 | 848,600 |
| Supplemental Disclosure of Cash Flow Information: | ||
| Interest paid | 97,015 | 81,697 |
| Interest capitalized | 35,949 | 36,981 |
| Income taxes refunded, net | (2,408) | (409) |
| Non-Cash Transactions: | ||
| Accrued property improvements, developments, and redevelopments | (35,250) | 37,461 |
| Special Improvement District bond transfers associated with land sales | 779 | 84 |
| Accrued interest on construction loan borrowing | 9,586 | 1,973 |
| Capitalized stock compensation | 907 | 966 |
| Initial recognition of ASC 842 Operating lease ROU asset | 493 | 72,106 |
| Initial recognition of ASC 842 Operating lease obligation | $ 493 | $ 71,888 |
BASIS OF PRESENTATION AND ORGANIZATION |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||
| BASIS OF PRESENTATION AND ORGANIZATION | BASIS OF PRESENTATION AND ORGANIZATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), with intercompany transactions between consolidated subsidiaries eliminated. In accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as issued by the Securities and Exchange Commission (the “SEC”), these Condensed Consolidated Financial Statements do not include all of the information and disclosures required by GAAP for complete financial statements. Readers of this quarterly report on Form 10-Q (“Quarterly Report”) should refer to The Howard Hughes Corporation’s (“HHC” or the “Company”) audited Consolidated Financial Statements, which are included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 27, 2020 (the “Annual Report”). In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows and equity for the interim periods have been included. The results for the three and six months ended June 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, and future fiscal years. Certain amounts in the 2019 results of operations have been reclassified to conform to the 2020 presentation. Specifically, the Company reclassified 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 for the three and six months ended June 30, 2020. In addition, labor costs previously presented in the MPC property operating costs were reclassified to corporate General and administrative expense for the three and six months ended June 30, 2019. Management has evaluated for disclosure or recognition all material events occurring subsequent to the date of the Condensed Consolidated Financial Statements up to the date and time this Quarterly Report was filed. COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China. COVID-19 has since spread globally, including to every state in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The outbreak of COVID-19 has severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the United States, have reacted by instituting a wide variety of control measures including states of emergency, mandatory quarantines, required business and school closures, implementing “shelter in place” orders and restricting travel. Many experts predict that the outbreak will trigger a period of material global economic slowdown or a global recession. The outbreak of COVID-19 has materially negatively impacted, and is expected to continue to materially negatively impact, the Company’s business, financial performance and condition, operating results and cash flows. 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 development of a vaccine; and (3) the response of the overall economy, the financial markets and the population, particularly in areas in which the Company operates, once the current containment measures are lifted. Material impacts to the Company are noted below. Accounts Receivable, net Due to the impacts of COVID-19 on the collectability of the Company’s accounts receivable, the Company completed an analysis of its collections and determined an additional reserve was required related to its Retail accounts receivable. Upon assessment of its uncollectible Accounts receivable, net balances, the Company determined that a reserve for estimated losses under ASC 450 - Contingencies is required, in addition to the specific reserve required under ASC 842, as the amount is probable and can be reasonably estimated. As a result, during the three and six months ended June 30, 2020, the Company recorded a specific reserve as contra revenue under ASC 842 of $5.7 million and $7.2 million, respectively. In addition, during the three and six months ended June 30, 2020, the Company recorded an ASC 450 reserve of $3.0 million and $4.5 million, respectively, in the Provision for (recovery of) doubtful accounts on the Condensed Consolidated Statements of Operations. Impairment of long-lived assets During the first quarter 2020, in conjunction with the Company’s quarterly impairment assessment, the Company recorded a $48.7 million impairment charge for Outlet Collection at Riverwalk, due to decreases in estimated future cash flows resulting from the impact of a shorter than anticipated holding term due to management’s plans to divest the non-core operating asset and 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. See Note 5 - Impairment for additional information. Business closures In the first quarter of 2020, the Company experienced indefinite closures of its Seaport District retail and food and beverage assets as well as the three hotels in The Woodlands, and the Company temporarily laid off the majority of its staff in each impacted location. The Company reopened The Woodlands Resort & Conference Center in May 2020, which was operating at 54% capacity at the end of the second quarter, and Embassy Suites at Hughes Landing in June 2020, which was operating at 100% capacity at the end of the second quarter. The Westin at The Woodlands reopened its primary restaurant, Sorriso, in April 2020, subject to local guidance, and reopened for guest stays on July 1, 2020, operating at 100% capacity. As each property has reopened, the Company has rehired staff necessary to operate at respective capacity and occupancy levels. The Seaport District retail and food and beverage assets remained closed as of June 30, 2020. In the Seaport District, we anticipate a gradual reopening of a few, select businesses, including The Rooftop at Pier 17, beginning in August. The Company has retained key personnel at these locations to facilitate the efficient start-up of operations once restrictions are lifted. Liquidity In direct response to the COVID-19 pandemic and the impacts on the Company’s four business segments, as well as the economy and capital markets in general, the Company initiated measures to increase its liquidity. During the six months ended June 30, 2020, the Company completed a common stock offering and entered into new financings and extensions of existing loans. See Note 15 - Earnings Per Share and Note 7 - Mortgages, Notes and Loans Payable, Net. 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, 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, debt and options granted. In particular, Master Planned Communities (“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. 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 (Topic 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 thousand as of January 1, 2020, for the cumulative effect of adopting ASU 2016-13. See Note 2 - Accounting Policies and Pronouncements for further discussion of accounting policies impacted by the Company’s adoption of ASU 2016-13 and disclosures required by ASU 2016-13. Corporate Restructuring During the quarter ended December 31, 2019, the Company initiated a plan to strategically realign and streamline certain aspects of its business, including selling approximately $2.0 billion of non-core assets, reducing overhead and relocating its corporate headquarters. The Company will consolidate its Dallas corporate headquarters with its largest regional office in The Woodlands. Charges of $34.3 million associated with retention and severance expenses were recorded in 2019, and $1.6 million was recorded in the six months ended June 30, 2020. The Company expects to incur an additional $1.3 million to $2.3 million related to relocation, retention and severance expenses in the remainder of 2020. The restructuring costs are included in Corporate income, expenses and other items in Note 18 - Segments. The Company expects to conclude its restructuring activity, excluding the disposition of non-core assets, in 2020. The following table summarizes the changes to the restructuring liability included in Accounts payable and accrued expenses on the Condensed Consolidated Balance Sheets:
(a) Charges relate to relocation, retention and severance expenses and are included in General and administrative expense in the accompanying Condensed Consolidated Statements of Operations.
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ACCOUNTING POLICIES AND PRONOUNCEMENTS |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCOUNTING POLICIES AND PRONOUNCEMENTS | ACCOUNTING POLICIES AND PRONOUNCEMENTS The following is a summary of recently issued and other notable accounting pronouncements which relate to the Company’s business. In March 2020, the FASB issued 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 transaction 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. In December 2019, the FASB 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 is currently evaluating the impact that the adoption of ASU 2019-12 may have on its Condensed Consolidated Financial Statements. In November 2019, the FASB issued ASU 2019-08, Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). The amendments in this Update require that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. The amount recorded as a reduction of the transaction price is required to be measured on the basis of the grant-date fair value of the share-based payment award in accordance with Topic 718. The grant date is the date at which a grantor (supplier) and a grantee (customer) reach a mutual understanding of the key terms and conditions of the share-based payment award. The classification and subsequent measurement of the award are subject to the guidance in Topic 718 unless the share-based payment award is subsequently modified, and the grantee is no longer a customer. The effective date of the amendments is for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company adopted ASU 2019-08 as of January 1, 2020, and it did not have a material effect on its Condensed Consolidated Financial Statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this update provide clarification on certain aspects of the amendments in ASU 2016-13, Financial Instruments—Credit Losses, ASU 2017-12, Derivatives and Hedging, and ASU 2016-01, Financial Instruments—Overall. The effective date of the standard is for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company adopted ASU 2019-04 as of January 1, 2020. See further discussion regarding adoption of ASU 2016-13 for the impact of amendments to Financial Instruments-Credit Losses. The amendments to Derivatives and Hedging, and Financial Instruments-Overall did not have a material effect on the Company’s Condensed Consolidated Financial Statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. This standard is intended to improve the accounting when considering indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. The effective date of the standard is for fiscal years, and interim periods within those years, beginning after December 15, 2019. The new standard must be adopted retrospectively with early adoption permitted. The Company adopted ASU 2018-17 as of January 1, 2020, and it did not have a material effect on its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This standard is intended to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software (and hosting arrangements that include an internal use software license). The standard requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This standard also requires the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The new standard may be adopted prospectively or retrospectively with early adoption permitted. The Company adopted ASU 2018-15 prospectively as of January 1, 2020. There was no material impact to the Company’s Condensed Consolidated Financial Statements upon adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement that eliminates, adds and modifies certain disclosure requirements for fair value measurements. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level-3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Early adoption is permitted. The Company adopted ASU 2018-13 as of January 1, 2020. The amended disclosure requirements did not have a material impact to the Company’s Condensed Consolidated Financial Statements upon adoption. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This standard is intended to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. In computing the implied fair value of goodwill under step two, an entity determined the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognizing the impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The new standard must be adopted prospectively with early adoption permitted. The Company adopted ASU 2017-04 as of January 1, 2020, and will eliminate step two from its goodwill impairment tests. There was no material impact to the Condensed Consolidated Financial Statements upon adoption. Financial Instruments - Credit losses and related policy updates 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 Municipal Utility District (“MUD”) receivables, Special Improvement District (“SID”) bonds, tax increment financing (“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 June 30, 2020:
Accrued interest of $16.7 million and $17.3 million are included within municipal utility district receivables on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2020 and 2019, respectively. The following table presents the activity in the allowance for credit losses for financing receivables by receivable type for the six months ended June 30, 2020:
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.
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RECENT TRANSACTIONS |
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| Business Combinations [Abstract] | |
| RECENT TRANSACTIONS | RECENT TRANSACTIONS On July 16, 2020, the Company completed the sale 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. Refer to Note 3 - Real Estate and Other Affiliates and Note 5 - 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 in October 2019. As consideration, the Company received an $8.0 million termination payment in July, which is included in Gain (loss) on sale or disposal of real estate and other assets, net on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020, and in Accounts receivable on the Condensed Consolidated Balance Sheets as of June 30, 2020. On March 13, 2020, the Company closed on the sale of its property at 100 Fellowship Drive, a 13.5-acre land parcel and203,257-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 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 Condensed Consolidated Balance Sheets, recognizing $13.5 million of Selling profit from the sales-type lease on the Condensed Consolidated Statements of Operations. |
REAL ESTATE AND OTHER AFFILIATES |
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REAL ESTATE AND OTHER AFFILIATES | REAL ESTATE AND OTHER AFFILIATES Equity investments in real estate and other affiliates are reported as follows:
As of June 30, 2020, the Company is not the primary beneficiary of any of the investments listed above because it does not have the power to direct the activities that most significantly impact the economic performance of the ventures; therefore, the Company reports its interests in accordance with the equity method. As of June 30, 2020, and December 31, 2019, the Mr. C Seaport variable interest entity (“VIE”) does not have sufficient equity at risk to finance its operations without additional financial support. As of June 30, 2020, and December 31, 2019, Bar Wayō is also classified as a VIE because the equity holders, as a group, lack the characteristics of a controlling financial interest. The carrying values of Mr. C Seaport and Bar Wayō as of June 30, 2020, are $0.8 million and $7.2 million, respectively, and are classified as Investments in real estate and other affiliates in the Condensed 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 these VIEs. As of June 30, 2020, approximately $208.6 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 $99.9 million based upon economic ownership. All of this indebtedness is without recourse to the Company. As of June 30, 2020, the Company is the primary beneficiary of one VIE, 110 North Wacker, which is consolidated in its financial statements. The Company began consolidating 110 North Wacker and its underlying entities in the second quarter of 2018 as further discussed below. 110 North Wacker’s creditors do not have recourse to the Company, except for 18%, or $48.8 million, of its outstanding loan balance. As of June 30, 2020, the carrying values of the assets and liabilities associated with the operations of the consolidated VIE were $493.4 million and $295.6 million, respectively. As of December 31, 2019, the carrying values of the assets and liabilities associated with the operations of the consolidated VIE was $393.3 million and $186.5 million, respectively. The assets of the VIE are restricted for use only by the particular VIE and are not available for the Company’s general operations. Significant activity for real estate and other affiliates and the related accounting considerations are described below. 110 North Wacker During the second quarter of 2018, the Company’s partnership with the local developer (the “Partnership”) executed an agreement with USAA related to 110 North Wacker (collectively, the local developer and USAA are the “Partners”). At execution, the Company contributed land with a carrying value of $33.6 million and an agreed upon fair value of $85.0 million, and USAA contributed $64.0 million in cash. The Company had subsequent capital obligations of $42.7 million, and USAA was required to fund up to $105.6 million in addition to its initial contribution. The Company and its Partners have also entered into a construction loan agreement further described in Note 7 - Mortgages, Notes and Loans Payable, Net. On May 23, 2019, the Company and its Partners increased the construction loan. Concurrently with the increase in the construction loan, the Company and its Partners agreed to eliminate the Company’s subsequent capital obligations. 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 agreement. The Company has concluded that it is the primary beneficiary of the VIE because it has the power to direct activities that most significantly impact the venture’s economic performance during the development phase of the project. Upon the building’s completion, the Company expects to recognize the investment under the equity method. 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 will be recognized based on the Hypothetical Liquidation at Book Value (“HLBV”) method, which represents an economic interest of approximately 23% for the Company. Under this method, the Company will recognize 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. 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. 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. Relevant financial statement information for The Summit is summarized as follows:
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%. |
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IMPAIRMENT |
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| Asset Impairment Charges [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| IMPAIRMENT | IMPAIRMENT The Company reviews its long-lived assets for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. During the first quarter of 2020, the Company recorded a $48.7 million impairment charge for Outlet Collection at Riverwalk, a 268,556-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. With respect to the Investments 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. 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. Subsequent to quarter end, the Company completed the sale of its interest in Mr. C Seaport. See Note 4 - Recent Transactions for additional details regarding the sale. The impairment loss is presented in Equity in (losses) earnings from real estate and other affiliates. Refer to Note 3 - Real Estate and Other Affiliates for additional information. 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 its strategic alternatives with respect to each of its properties and may revise its strategy from time to time, including its intent to hold an asset on a long-term basis or the timing of potential asset dispositions. These changes in strategy could result in impairment charges in future periods. In addition to the impairments discussed above, during the second quarter, 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 $5.1 million included in Condominium rights and unit cost of sales for the three months ended June 30, 2020. The following table summarizes the pre-tax impacts of the items mentioned above to the Condensed Consolidated Statements of Operations:
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OTHER ASSETS AND LIABILITIES |
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| OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Prepaid Expenses and Other Assets The following table summarizes the significant components of Prepaid expenses and other assets:
The $42.7 million net increase primarily relates to a $38.4 million increase in Security, escrow, and other deposits, primarily attributable to rate-lock and security deposits for The Woodlands Towers at the Waterway, a $4.8 million increase in Straight-line rent mainly due to the acquisition of The Woodlands Towers at the Waterway and Operating Assets placed in service during the year, as well as a $3.4 million increase in Prepaid expenses. These increases are partially offset by a $3.1 million decrease in Food and beverage and lifestyle inventory predominantly due to the write-off of inventory at 10 Corso Como Retail and Café in the first quarter of 2020 and a $2.7 million decrease in In-place leases, partially as a result of amortization of the leases at The Woodlands Towers at the Waterway. Accounts Payable and Accrued Expenses The following table summarizes the significant components of Accounts payable and accrued expenses:
The $169.3 million net increase primarily relates to a $94.6 million increase in Condominium deposit liabilities primarily attributable to sales at Victoria Place, Kō'ula, and ‘A‘ali‘i; a $65.5 million increase in Construction payables primarily attributable to a $97.9 million charge for repairs and remediation on certain alleged construction defects at the Waiea condominium tower (see Note 10 - Commitments and Contingencies for details), partially offset by reduced construction spend at several projects approaching completion; and a $37.6 million increase in Interest rate swap liabilities due to a decrease of the one-month London Interbank Offered Rate (“LIBOR”) forward curve for the periods presented. These increases are partially offset by a $17.9 million decrease in Accrued payroll and other employee liabilities primarily due to the 2019 annual incentive bonus payment in the first quarter of 2020; and a $10.8 million decrease in Accounts payable and accrued expenses.
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MORTGAGES, NOTES AND LOANS PAYABLE, NET |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MORTGAGES, NOTES AND LOANS PAYABLE, NET | MORTGAGES, NOTES AND LOANS PAYABLE, NET Mortgages, notes and loans payable, net are summarized as follows:
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 percentage of the loan balance. As of June 30, 2020, land, buildings and equipment and developments with a net book value of $6.7 billion have been pledged as collateral for HHC’s Mortgages, notes and loans payable, net. 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 our outstanding Senior Secured Credit Facility Revolver Loan balance of $61.3 million and a semi-annual operating covenant within our $62.5 million loan for The Woodlands Resort and Conference Center. The Revolver Loan requires a full repayment cure of the outstanding revolver balance for the debt service coverage ratio test. We expect to repay the outstanding balance under the Revolver Loan of $61.3 million during the third quarter of 2020. We remain in full compliance of the $615.0 million Term Loan portion of the Senior Secured Credit Facility. The loan for The Woodlands Resort and Conference Center provides a partial repayment cure for the debt service coverage ratio test. Management plans to negotiate a modification of the existing terms of the Woodlands Resort and Conference Center loan with the lender in the third quarter of 2020 and receive a waiver of the $24.1 million repayment to cure. 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 total $10.9 million, provide a partial repayment cure for the debt service coverage ratio test totaling $2.0 million. Management plans to negotiate a modification of the existing terms of the Self-Storage loans or partially repay the loans in the third quarter of 2020. As of June 30, 2020, apart from the items above, the Company was in compliance with all remaining financial covenants included in the agreements governing its indebtedness. 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. In the six months ended June 30, 2020, no new SID bonds were issued and an insignificant amount of obligations were assumed by buyers. Financing Activity During the Six Months Ended June 30, 2020 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. 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. 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 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. The new loan bears interest at LIBOR plus 1.95% with a maturity date of March 26, 2025. On March 23, 2020, the Company drew $67.5 million on its Revolver Loan under the Senior Secured Credit Facility. As of June 30, 2020, the outstanding balance was $61.3 million. The Company expects to repay the outstanding balance during the third quarter of 2020. On March 13, 2020, the Company paid off the $50.0 million outstanding loan balance relating to 100 Fellowship Drive in conjunction with the sale of the property. The payment was made using the proceeds from the sale of the property. 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 January 7, 2020, the Company closed on a $43.4 million construction loan for the development of Creekside Park Apartments Phase II. The loan bears interest at LIBOR plus 1.75% with an initial maturity date of January 7, 2024, and a one-year extension option.
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FAIR VALUE |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE | 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:
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:
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. Please refer to Note 7 - Mortgages, Notes and Loans Payable, Net in the Company’s Condensed Consolidated Financial Statements. The discount rates reflect the Company’s judgment with respect to 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 six months ended June 30, 2020:
(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 5 - Impairment for additional information.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 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. This derivative is 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 Condensed Consolidated Statements of Cash Flows as the items being hedged. Gains and losses from derivative financial instruments are reported in Cash (used in) provided by operating activities within the Condensed 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 June 30, 2020, and December 31, 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. As of June 30, 2020, there were no termination events, and as of December 31, 2019, there was one termination event, as discussed below. During the three and six months ended June 30, 2020, the Company recorded a $0.8 million and $1.7 million reduction in Interest expense, respectively, related to the amortization of terminated swaps. The Company did not settle any derivatives during the six months ended June 30, 2020. During the year ended December 31, 2019, the Company settled one interest rate cap agreement with a notional amount of $230.0 million and received payment of $0.2 million. The Company has deferred the effective portion of the fair value changes of two previously settled interest rate swap agreements in Accumulated other comprehensive loss on the accompanying Condensed Consolidated Balance Sheets and will recognize the impact as a component of Interest expense over the next 7.5 and 1.2 years, which are what remain of the original forecasted periods. 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 $15.5 million of net loss will be reclassified to Interest expense. The following table summarizes certain terms of the Company’s derivative contracts:
The tables below present the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020, and 2019 (in thousands):
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. As of June 30, 2020, and December 31, 2019, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk, related to these agreements was $81.0 million and $41.6 million, respectively. As of June 30, 2020, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at June 30, 2020, it could have been required to settle its obligations under the agreements at their termination value of $81.0 million.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2020 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | 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. 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. In management’s opinion, the liabilities, if any, that may ultimately result from normal course of business legal actions, including The Woodlands legal proceeding discussed above, are not expected to have a material effect on the Company’s consolidated financial position, results of operations or liquidity. The Company entered into a settlement agreement with the Waiea homeowners association related to certain construction defects at the 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 Condensed Consolidated Statements of Operations. As of June 30, 2020, the Company has recorded a total of $115.4 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 Condensed Consolidated Balance Sheet. 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 evaluates redevelopment plans. Prior to the purchase, a Phase I Environmental Site Assessment (“ESA”) was prepared for the property, and the ESA identified, among other findings, the existence of mercury levels above regulatory criteria. The Company entered the site into the New York State Brownfield Cleanup Program to facilitate site investigation and subsequent remediation. The site is currently in the investigation phase of the program. The normal operations of the parking lot do not require the property to be remediated, and it is unlikely that the site will require any remedial measures until site redevelopment occurs. The Company has not started any redevelopment activities as of June 30, 2020. As a result, the potential remediation has no financial impact as of June 30, 2020, and for the three and six months ended June 30, 2020. As of June 30, 2020, and December 31, 2019, the Company had outstanding letters of credit totaling $11.5 million and $15.4 million, and surety bonds totaling $238.1 million and $200.1 million, respectively. These letters of credit and bonds were issued primarily in connection with insurance requirements, special real estate assessments and construction obligations. The Company leases land or buildings at certain properties from third parties, the leases for which are recorded in Operating lease right-of-use assets, net and Operating lease obligations on the Condensed Consolidated Balance Sheets. See Note 17 - Leases for further discussion. Contractual rental expense, including participation rent, was $1.6 million and $2.1 million for the three months ended June 30, 2020, and 2019, respectively, and $3.4 million and $4.2 million for the six months ended June 30, 2020 and 2019, respectively. 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 have 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 has guaranteed the performance of its subsidiaries under the funding agreement for up to a maximum of $1.0 million until 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 any obligations under these guarantees 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 four open condominium towers, Waiea, Anaha, Ae‘o and Ke Kilohana, with the opening of Ke Kilohana, which provided 375 reserved housing units. The reserved units for the Company’s ‘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. The Company evaluates the likelihood of future performance under these guarantees and did not record an obligation as of June 30, 2020, and December 31, 2019.
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| STOCK-BASED PLANS | STOCK-BASED PLANS On May 14, 2020, the Company adopted 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. Prior to the adoption of the 2020 Equity Plan, equity awards were issued under The Howard Hughes Corporation 2010 Equity Incentive Plan (the "2010 Equity Plan"). The 2010 Equity Plan is described and informational disclosures are provided in the Notes to Consolidated Financial Statements included in the Annual Report. 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. Stock Options The following table summarizes the Company’s stock option activity for the six months ended June 30, 2020:
Compensation costs related to stock options were $0.2 million for the three months ended June 30, 2020, of which $0.2 million were capitalized to development projects. Compensation costs related to stock options were in a credit position of $0.5 million for the six months ended June 30, 2020 due to significant forfeitures which exceeded the expense. Compensation costs related to stock options were $0.8 million and $1.5 million for the three and six months ended June 30, 2019, respectively, of which $0.2 million and $0.4 million were capitalized to development projects, respectively. The total number of restricted stock outstanding set forth above reflects any restricted stock subject to performance-based vesting at the target level. Restricted Stock The following table summarizes restricted stock activity for the six months ended June 30, 2020:
Compensation costs related to restricted stock awards were $1.8 million and $3.7 million for the three and six months ended June 30, 2020, respectively, of which $0.7 million were capitalized to development projects, respectively. Compensation costs related to restricted stock awards were $2.4 million and $4.7 million for the three and six months ended June 30, 2019, respectively, of which $0.3 million and $0.6 million were capitalized to development projects, respectively.
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INCOME TAXES |
6 Months Ended |
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Jun. 30, 2020 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The Company’s tax provision for interim periods is determined using an estimate of its annual current and deferred effective tax rates, adjusted for discrete items. The effective tax rate, based upon actual operating results, was 16.7% and 20.5% for the three and six months ended June 30, 2020, respectively, compared to 24.9% and 25.5% for the three and six months ended June 30, 2019, respectively. The Company’s effective tax rate is typically impacted by significant permanent differences, primarily from stock compensation deductions and non-deductible executive compensation, which cause the effective tax rate to deviate from statutory rates. For the three and six months ended June 30, 2020, the effective tax rate was also impacted by valuation allowances.
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WARRANTS |
6 Months Ended |
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Jun. 30, 2020 | |
| Other Liabilities [Abstract] | |
| WARRANTS | WARRANTS On October 7, 2016, the Company entered into a warrant agreement with David R. O’Reilly, (the “O’Reilly Warrant”) prior to his appointment to the 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. On June 16, 2017, and October 4, 2017, the Company entered into warrant agreements with its Chief Executive Officer, David R. Weinreb, (the “Weinreb Warrant”) and President, Grant Herlitz, (the “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 (but such warrants became exercisable in connection with Mr. Weinreb’s and Mr. Herlitz’s terminations of employment, as described below). 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 Condensed Consolidated Balance Sheets at June 30, 2020, and December 31, 2019. On October 21, 2019, Mr. Weinreb and Mr. Herlitz stepped down from their roles as Chief Executive Officer and President of the Company, respectively. The Company and each of Mr. Weinreb and Mr. Herlitz have agreed to treat their terminations of employment as terminations without “cause” under their respective employment and warrant agreements with the Company. Thus, effective October 21, 2019, the Weinreb Warrant and Herlitz Warrant became exercisable by the terms of their respective warrant agreements in connection with their respective terminations of employment.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize changes in AOCI by component, all of which are presented net of tax:
The following table summarizes the amounts reclassified out of AOCI:
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EARNINGS PER SHARE |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income 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:
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 $593.7 million in net proceeds. The Company intends to use the net proceeds for general corporate purposes including strengthening the Company’s balance sheet and enhancing liquidity.
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REVENUES |
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| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUES | 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. Condominium rights and unit sales revenues were previously required to be recognized under the percentage of completion method. 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 table presents the Company’s revenues disaggregated by revenue source:
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 period. 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 period are as follows:
Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations as of June 30, 2020, 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 June 30, 2020, is $1.7 billion. The Company expects to recognize this amount as revenue over the following periods:
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LEASES |
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| LEASES | 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 Condensed 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 does not have any finance leases as of June 30, 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 53 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from two to 40 years, and some of which may include options to terminate the leases within one year. The Company considers its strategic plan and the life of associated agreements in determining when options to extend or terminate lease terms are reasonably certain of being exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Certain of the Company’s lease agreements include variable lease payments based on a percentage of income generated through subleases, changes in price indices and market rates, and other costs arising from operating, maintenance, and taxes. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. The Company leases certain buildings and office space constructed on its ground leases to third parties. The Company’s leased assets and liabilities are as follows:
The components of lease expense are as follows:
Future minimum lease payments as of June 30, 2020, are as follows:
Other information related to the Company’s lessee agreements is as follows:
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 June 30, 2020, are as follows:
Total future minimum rents associated with operating leases are as follows:
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 Condensed Consolidated Statements of Operations also include amortization related to above and below‑market tenant leases on acquired properties. |
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SEGMENTS |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENTS | 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 2. - 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:
Segment operating results are as follows:
The assets by segment and the reconciliation of total segment assets to the Total assets in the Condensed Consolidated Balance Sheets are summarized as follows:
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ACCOUNTING POLICIES AND PRONOUNCEMENTS (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
| Accounting Policies [Abstract] | |
| New Accounting Policies and Pronouncements | The following is a summary of recently issued and other notable accounting pronouncements which relate to the Company’s business. In March 2020, the FASB issued 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 transaction 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. In December 2019, the FASB 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 is currently evaluating the impact that the adoption of ASU 2019-12 may have on its Condensed Consolidated Financial Statements. In November 2019, the FASB issued ASU 2019-08, Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). The amendments in this Update require that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. The amount recorded as a reduction of the transaction price is required to be measured on the basis of the grant-date fair value of the share-based payment award in accordance with Topic 718. The grant date is the date at which a grantor (supplier) and a grantee (customer) reach a mutual understanding of the key terms and conditions of the share-based payment award. The classification and subsequent measurement of the award are subject to the guidance in Topic 718 unless the share-based payment award is subsequently modified, and the grantee is no longer a customer. The effective date of the amendments is for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company adopted ASU 2019-08 as of January 1, 2020, and it did not have a material effect on its Condensed Consolidated Financial Statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this update provide clarification on certain aspects of the amendments in ASU 2016-13, Financial Instruments—Credit Losses, ASU 2017-12, Derivatives and Hedging, and ASU 2016-01, Financial Instruments—Overall. The effective date of the standard is for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company adopted ASU 2019-04 as of January 1, 2020. See further discussion regarding adoption of ASU 2016-13 for the impact of amendments to Financial Instruments-Credit Losses. The amendments to Derivatives and Hedging, and Financial Instruments-Overall did not have a material effect on the Company’s Condensed Consolidated Financial Statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. This standard is intended to improve the accounting when considering indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. The effective date of the standard is for fiscal years, and interim periods within those years, beginning after December 15, 2019. The new standard must be adopted retrospectively with early adoption permitted. The Company adopted ASU 2018-17 as of January 1, 2020, and it did not have a material effect on its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This standard is intended to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software (and hosting arrangements that include an internal use software license). The standard requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This standard also requires the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The new standard may be adopted prospectively or retrospectively with early adoption permitted. The Company adopted ASU 2018-15 prospectively as of January 1, 2020. There was no material impact to the Company’s Condensed Consolidated Financial Statements upon adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement that eliminates, adds and modifies certain disclosure requirements for fair value measurements. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted-average of significant unobservable inputs used to develop Level-3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. Early adoption is permitted. The Company adopted ASU 2018-13 as of January 1, 2020. The amended disclosure requirements did not have a material impact to the Company’s Condensed Consolidated Financial Statements upon adoption. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This standard is intended to simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. In computing the implied fair value of goodwill under step two, an entity determined the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and then recognizing the impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. The effective date of the standard is for fiscal periods, and interim periods within those years, beginning after December 15, 2019. The new standard must be adopted prospectively with early adoption permitted. The Company adopted ASU 2017-04 as of January 1, 2020, and will eliminate step two from its goodwill impairment tests. There was no material impact to the Condensed Consolidated Financial Statements upon adoption.
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| Financial Instruments - Credit Losses and Related Policy Updates | 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 Municipal Utility District (“MUD”) receivables, Special Improvement District (“SID”) bonds, tax increment financing (“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.
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BASIS OF PRESENTATION AND ORGANIZATION (Tables) |
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| Restructuring and Related Costs | The following table summarizes the changes to the restructuring liability included in Accounts payable and accrued expenses on the Condensed Consolidated Balance Sheets:
(a) Charges relate to relocation, retention and severance expenses and are included in General and administrative expense in the accompanying Condensed Consolidated Statements of Operations.
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| Amortized cost basis on financing receivables | The following table summarizes the amortized cost basis of financing receivables by receivable type as of June 30, 2020:
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| 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 six months ended June 30, 2020:
(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. Reserves related to operating lease receivables are not included in the above table.
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| 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:
Relevant financial statement information for The Summit is summarized as follows:
(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 2020, revenues allocated to each of The Summit’s performance obligations is recognized over time based on an input measure of progress. The three and six months ended June 30, 2019 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.
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IMPAIRMENT IMPAIRMENT (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Impairment Charges [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset Impairment Charges | The following table summarizes the pre-tax impacts of the items mentioned above to the Condensed Consolidated Statements of Operations:
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OTHER ASSETS AND LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 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:
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| Summary of the significant components of accounts payable and accrued expenses | The following table summarizes the significant components of Accounts payable and accrued expenses:
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MORTGAGES, NOTES AND LOANS PAYABLE, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of mortgages, notes and loans payable | Mortgages, notes and loans payable, net are summarized as follows:
(b) Deferred financing costs 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).
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FAIR VALUE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of assets and liabilities measured 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:
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| Summary of assets and liabilities that were measured at fair value on a 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:
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| Summary of non-financial asset measure 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 six months ended June 30, 2020:
(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 5 - Impairment for additional information.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of fair value of derivative financial instruments | The following table summarizes certain terms of the Company’s derivative contracts:
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| Summary of effect of derivative financial instruments on the Condensed Consolidated Statements of Operations | The tables below present the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020, and 2019 (in thousands):
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STOCK-BASED PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of stock option plan activity | The following table summarizes the Company’s stock option activity for the six months ended June 30, 2020:
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| Summary of restricted stock activity | The following table summarizes restricted stock activity for the six months ended June 30, 2020:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of AOCI | The following tables summarize changes in AOCI by component, all of which are presented net of tax:
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| Summary of the amounts reclassified out of AOCI | The following table summarizes the amounts reclassified out of AOCI:
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of EPS calculations | Information related to the Company’s EPS calculations is summarized as follows:
|
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REVENUES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue disaggregated by revenue source | The following table presents the Company’s revenues disaggregated by revenue source:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract with customer, assets and liabilities | The beginning and ending balances of contract liabilities and significant activity during the period are as follows:
|
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| Remaining performance obligation, expected timing of satisfaction | The Company expects to recognize this amount as revenue over the following periods:
|
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LEASES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets and liabilities, lessee | The Company’s leased assets and liabilities are as follows:
|
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| Lease cost | The components of lease expense are as follows:
Other information related to the Company’s lessee agreements is as follows:
|
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| Operating lease liability maturity | Future minimum lease payments as of June 30, 2020, are as follows:
|
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| Schedule of minimum rent payments | The minimum rentals based on operating leases of the consolidated properties held as of June 30, 2020, are as follows:
Total future minimum rents associated with operating leases are as follows:
|
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SEGMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of segment operating results | Segment operating results are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of assets by segment and the reconciliation of total segment assets to the total assets in the condensed consolidated balance sheets | The assets by segment and the reconciliation of total segment assets to the Total assets in the Condensed Consolidated Balance Sheets are summarized as follows:
|
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BASIS OF PRESENTATION AND ORGANIZATION Narrative (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|---|
Jan. 01, 2020 |
Jun. 30, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
hotel
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
segment
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
| Restructuring Cost and Reserve [Line Items] | |||||||
| Impairment of real estate | $ 0 | $ 0 | $ 48,738,000 | $ 0 | |||
| Number of reportable segments | segment | 4 | ||||||
| Retained earnings, decrease | 3,554,815,000 | $ 3,554,815,000 | $ 3,148,133,000 | ||||
| Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||
| Outlet Collection, Riverwalk | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Impairment of real estate | 0 | $ 48,700,000 | $ 0 | 48,738,000 | $ 0 | ||
| Corporate Restructuring | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Assets held for sale | $ 2,000,000,000.0 | ||||||
| Restructuring charges | 1,637,000 | ||||||
| Corporate Restructuring | Minimum | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Restructuring and related cost, expected cost remaining | 1,300,000 | 1,300,000 | |||||
| Corporate Restructuring | Maximum | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Restructuring and related cost, expected cost remaining | $ 2,300,000 | 2,300,000 | |||||
| One-time Termination Benefits | Corporate Restructuring | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Restructuring charges | $ 1,600,000 | 34,300,000 | |||||
| COVID-19 | Outlet Collection, Riverwalk | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Impairment of real estate | $ 48,700,000 | ||||||
| The Woodlands Resort And Conference Center | COVID-19 | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Operating percentage of capacity | 54.00% | 54.00% | |||||
| Embassy Suites, Hughes Landing | COVID-19 | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Operating percentage of capacity | 100.00% | 100.00% | |||||
| Cumulative Effect, Period of Adoption, Adjustment | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Retained earnings, decrease | (18,000) | ||||||
| Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Retained earnings, decrease | $ (18,000) | ||||||
| SEC Schedule, 12-09, Allowance, Loan and Lease Loss | COVID-19 | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Provision for doubtful accounts | $ 5,700,000 | $ 7,200,000 | |||||
| SEC Schedule, 12-09, Reserve, Legal | COVID-19 | |||||||
| Restructuring Cost and Reserve [Line Items] | |||||||
| Provision for doubtful accounts | $ 3,000,000.0 | $ 4,500,000 | |||||
| Number of hotels | hotel | 3 | ||||||
BASIS OF PRESENTATION AND ORGANIZATION BASIS OF PRESENTATION AND ORGANIZATION (Restructuring Plan Activities) (Details) - Corporate Restructuring - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
|
| Restructuring Reserve [Roll Forward] | ||
| Balance at beginning of period | $ 9,685 | |
| Charges | $ 1,637 | |
| Charges paid/settled | (6,012) | |
| Balance at end of period | $ 5,310 | $ 5,310 |
ACCOUNTING POLICIES AND PRONOUNCEMENTS (Summary of Amortized Costs Basis) (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
|---|---|
| Financing Receivable, Allowance for Credit Loss [Line Items] | |
| Ending balance as of June 30, 2020 | $ 408,244 |
| MUD receivables | |
| Financing Receivable, Allowance for Credit Loss [Line Items] | |
| Ending balance as of June 30, 2020 | 303,771 |
| SID receivables | |
| Financing Receivable, Allowance for Credit Loss [Line Items] | |
| Ending balance as of June 30, 2020 | 40,963 |
| TIF receivables | |
| Financing Receivable, Allowance for Credit Loss [Line Items] | |
| Ending balance as of June 30, 2020 | 4,032 |
| Net investments in lease receivable | |
| Financing Receivable, Allowance for Credit Loss [Line Items] | |
| Ending balance as of June 30, 2020 | 2,772 |
| Notes receivable | |
| Financing Receivable, Allowance for Credit Loss [Line Items] | |
| Ending balance as of June 30, 2020 | $ 56,706 |
ACCOUNTING POLICIES AND PRONOUNCEMENTS (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Financing Receivable, Allowance for Credit Loss [Line Items] | ||
| Financing receivable threshold period past due | 30 days | |
| MUD receivables | ||
| Financing Receivable, Allowance for Credit Loss [Line Items] | ||
| Financing receivable, accrued interest, after allowance for credit loss | $ 16.7 | $ 17.3 |
ACCOUNTING POLICIES AND PRONOUNCEMENTS (Allowance for Credit Losses Activity) (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | $ 200 |
| Balance at end of period | 200 |
| MUD receivables | |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | 0 |
| Current-period provision for expected credit losses | 0 |
| Write-offs | 0 |
| Recoveries | 0 |
| Balance at end of period | 0 |
| SID receivables | |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | 0 |
| Current-period provision for expected credit losses | 0 |
| Write-offs | 0 |
| Recoveries | 0 |
| Balance at end of period | 0 |
| TIF receivables | |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | 0 |
| Current-period provision for expected credit losses | 0 |
| Write-offs | 0 |
| Recoveries | 0 |
| Balance at end of period | 0 |
| Net investments in lease receivable | |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | 17 |
| Current-period provision for expected credit losses | 0 |
| Write-offs | 0 |
| Recoveries | 0 |
| Balance at end of period | 17 |
| Notes receivable | |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | 209 |
| Current-period provision for expected credit losses | (13) |
| Write-offs | (1) |
| Recoveries | 0 |
| Balance at end of period | 195 |
| Trade accounts receivable | |
| Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
| Balance at beginning of period | 0 |
| Current-period provision for expected credit losses | 109 |
| Write-offs | (42) |
| Recoveries | 0 |
| Balance at end of period | $ 67 |
RECENT TRANSACTIONS (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
|
Jul. 16, 2020
USD ($)
hotel_room
|
Mar. 13, 2020
USD ($)
|
Nov. 30, 2019
USD ($)
ft²
a
parking_spaces
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
| Debt Instrument [Line Items] | ||||||||
| Gain (loss) on sale or disposal of real estate and other assets, net | $ 8,000 | $ (144) | $ 46,124 | $ (150) | ||||
| Net investment in lease receivable | 2,754 | 2,754 | $ 79,166 | |||||
| Selling profit from sales-type leases | 64,155 | $ 0 | ||||||
| Net property and equipment | 6,991,631 | 6,991,631 | $ 6,760,355 | |||||
| West Windsor | ||||||||
| Debt Instrument [Line Items] | ||||||||
| Gain (loss) on sale or disposal of real estate and other assets, net | $ 8,000 | |||||||
| 100 Fellowship Drive | ||||||||
| Debt Instrument [Line Items] | ||||||||
| Gain (loss) on sale or disposal of real estate and other assets, net | $ 38,300 | |||||||
| Area of land sold (in acres) | a | 13.5 | |||||||
| Square footage of buildings acquired (in sqft) | ft² | 203,257 | |||||||
| Number of parking spaces | parking_spaces | 550 | |||||||
| Proceeds from sale of real estate held-for-investment | 115,000 | $ 64,200 | ||||||
| Sales-type lease, derecognized developments | $ 63,700 | |||||||
| Net investment in lease receivable | 75,900 | |||||||
| Selling profit from sales-type leases | $ (13,500) | |||||||
| Net property and equipment | 76,100 | |||||||
| Transaction costs on sales of investments real estate | 200 | |||||||
| Payments to acquire real estate | $ 600 | |||||||
| Mr. C Seaport | Subsequent Event | ||||||||
| Debt Instrument [Line Items] | ||||||||
| Equity method investment, ownership percentage | 35.00% | |||||||
| Number of hotel rooms | hotel_room | 66 | |||||||
| Equity method investment, realized gain (loss) on disposal | $ 800 | |||||||
REAL ESTATE AND OTHER AFFILIATES (Summary of Investments in Real Estate and Other Affiliates) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Investment in Real Estate and Other Affiliates | |||||
| Carrying Value | $ 119,706,000 | $ 119,706,000 | $ 121,757,000 | ||
| Share of Earnings/Dividends | (8,552,000) | $ 6,354,000 | 2,797,000 | $ 16,305,000 | |
| Equity method investment, impairment | 0 | ||||
| Other equity investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Carrying Value | 3,953,000 | 3,953,000 | 3,953,000 | ||
| Share of Earnings/Dividends | 0 | 0 | 3,724,000 | 3,625,000 | |
| Mr. C Seaport | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Equity method investment, impairment | 6,000,000 | 0 | 6,000,000 | 0 | |
| Accounts payable and accrued expenses | The Metropolitan Downtown Columbia | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Investment deficit position | $ 4,700,000 | $ 4,700,000 | $ 4,700,000 | ||
| Operating Assets | The Metropolitan Downtown Columbia | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 50.00% | 50.00% | 50.00% | ||
| Carrying Value | $ 0 | $ 0 | $ 0 | ||
| Share of Earnings/Dividends | $ 195,000 | 123,000 | $ 422,000 | 306,000 | |
| Operating Assets | Stewart Title of Montgomery County, TX | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 50.00% | 50.00% | 50.00% | ||
| Carrying Value | $ 3,878,000 | $ 3,878,000 | $ 4,175,000 | ||
| Share of Earnings/Dividends | $ 160,000 | 170,000 | $ 503,000 | 272,000 | |
| Operating Assets | Woodlands Sarofim 1 | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 20.00% | 20.00% | 20.00% | ||
| Carrying Value | $ 3,059,000 | $ 3,059,000 | $ 2,985,000 | ||
| Share of Earnings/Dividends | $ 29,000 | 31,000 | $ 64,000 | 51,000 | |
| Operating Assets | m.flats/TEN.M | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 50.00% | 50.00% | 50.00% | ||
| Carrying Value | $ 1,887,000 | $ 1,887,000 | $ 2,431,000 | ||
| Share of Earnings/Dividends | $ 91,000 | (279,000) | $ 156,000 | (1,500,000) | |
| Master Planned Communities | The Summit | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 0.00% | 0.00% | 0.00% | ||
| Carrying Value | $ 88,076,000 | $ 88,076,000 | $ 84,455,000 | ||
| Share of Earnings/Dividends | $ (2,968,000) | 6,499,000 | $ 5,966,000 | 14,336,000 | |
| Seaport District revenues | Mr. C Seaport | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 35.00% | 35.00% | 35.00% | ||
| Carrying Value | $ 750,000 | $ 750,000 | $ 7,650,000 | ||
| Share of Earnings/Dividends | (6,249,000) | (451,000) | $ (6,900,000) | (1,083,000) | |
| Equity method investment, impairment | $ 6,000,000.0 | ||||
| Seaport District revenues | Bar Wayo (Momofuku) | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 0.00% | 0.00% | 0.00% | ||
| Carrying Value | $ 7,245,000 | $ 7,245,000 | $ 7,469,000 | ||
| Share of Earnings/Dividends | (384,000) | 0 | (1,776,000) | 0 | |
| Strategic Developments | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Carrying Value | 115,753,000 | 115,753,000 | $ 117,804,000 | ||
| Share of Earnings/Dividends | $ (8,552,000) | 6,354,000 | $ (927,000) | 12,680,000 | |
| Strategic Developments | Circle T Ranch and Power Center | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 50.00% | 50.00% | 50.00% | ||
| Carrying Value | $ 10,469,000 | $ 10,469,000 | $ 8,207,000 | ||
| Share of Earnings/Dividends | $ 589,000 | 256,000 | $ 675,000 | 291,000 | |
| Strategic Developments | HHMK Development | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 50.00% | 50.00% | 50.00% | ||
| Carrying Value | $ 10,000 | $ 10,000 | $ 10,000 | ||
| Share of Earnings/Dividends | $ 0 | 0 | $ 0 | 0 | |
| Strategic Developments | KR Holdings | Equity Method Investments | |||||
| Investment in Real Estate and Other Affiliates | |||||
| Economic/Legal Ownership | 50.00% | 50.00% | 50.00% | ||
| Carrying Value | $ 379,000 | $ 379,000 | $ 422,000 | ||
| Share of Earnings/Dividends | $ (15,000) | $ 5,000 | $ (37,000) | $ 7,000 | |
REAL ESTATE AND OTHER AFFILIATES (Narrative) (Details) |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
|
May 23, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2016 |
Mar. 31, 2015
USD ($)
item
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
| Real Estate and Other Affiliates | ||||||
| Investment in real estate and other affiliates | $ 119,706,000 | $ 121,757,000 | ||||
| Assets | 9,244,558,000 | 8,413,766,000 | ||||
| Liabilities | $ 5,504,855,000 | 5,080,778,000 | ||||
| Bar Wavo | ||||||
| Real Estate and Other Affiliates | ||||||
| Preferred return on capital of cash distribution | 75.00% | |||||
| Preferred return on capital | 10.00% | |||||
| Joint venture real estate, percentage funded | 89.75% | |||||
| Join venture real estate, remaining cash distribution percentage | 50.00% | |||||
| Bar Wavo | Momofuku | ||||||
| Real Estate and Other Affiliates | ||||||
| Preferred return on capital of cash distribution | 25.00% | |||||
| Joint venture real estate, percentage funded | 10.25% | |||||
| USAA Joint Venture | ||||||
| Real Estate and Other Affiliates | ||||||
| Contribution of property | $ 33,600,000 | |||||
| Fair value of property contributed | 85,000,000.0 | |||||
| Joint venture capital obligations | $ 42,700,000 | |||||
| Equity ownership in joint venture | 23.00% | |||||
| Preferred return on capital | 9.00% | |||||
| Ownership interest | 90.00% | |||||
| The Summit | ||||||
| Real Estate and Other Affiliates | ||||||
| Preferred return on capital | 5.00% | |||||
| Cash distribution entitlement by the joint venture | item | 2 | |||||
| USAA | USAA Joint Venture | ||||||
| Real Estate and Other Affiliates | ||||||
| Capital contribution to joint venture | $ 178,400,000 | $ 64,000,000.0 | ||||
| Joint venture capital obligations | $ 8,800,000 | $ 105,600,000 | ||||
| Preferred return on capital | 9.00% | |||||
| Preferred return on capital of cash distribution | 11.11% | |||||
| Ownership interest | 10.00% | |||||
| Equity Method Investments | The Summit | ||||||
| Real Estate and Other Affiliates | ||||||
| Contribution of property | $ 13,400,000 | |||||
| SID bonds transferred to joint venture | 1,300,000 | |||||
| Transaction value of land contributed to joint venture | 125,400,000 | |||||
| Transactional value per acre of land contributed to joint venture | 226,000 | |||||
| Maximum contribution required to joint venture by co-venturer | $ 30,000,000.0 | |||||
| Unconsolidated Properties | ||||||
| Real Estate and Other Affiliates | ||||||
| Secured debt real estate affiliates | $ 208,600,000 | |||||
| Share of entity in secured debt | 99,900,000 | |||||
| Seaport District revenues | Equity Method Investments | Mr. C Seaport | ||||||
| Real Estate and Other Affiliates | ||||||
| Investment in real estate and other affiliates | 750,000 | 7,650,000 | ||||
| Seaport District revenues | Equity Method Investments | Bar Wavo | ||||||
| Real Estate and Other Affiliates | ||||||
| Investment in real estate and other affiliates | $ 7,245,000 | 7,469,000 | ||||
| Variable Interest Entity, Primary Beneficiary | ||||||
| Real Estate and Other Affiliates | ||||||
| Recourse percentage | 18.00% | |||||
| Assets | $ 493,400,000 | 393,300,000 | ||||
| Liabilities | 295,600,000 | $ 186,500,000 | ||||
| Variable Interest Entity, Primary Beneficiary | Wacker110 N | Operating Assets | ||||||
| Real Estate and Other Affiliates | ||||||
| Facility amount | $ 48,800,000 | |||||
REAL ESTATE AND OTHER AFFILIATES (Relevant Financial Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
| Real Estate and Other Affiliates | ||||||||
| Total Assets | $ 9,244,558 | $ 9,244,558 | $ 8,413,766 | |||||
| Total Liabilities | 5,504,855 | 5,504,855 | 5,080,778 | |||||
| Total Equity | 3,739,703 | $ 3,351,767 | 3,739,703 | $ 3,351,767 | $ 3,772,598 | 3,332,988 | $ 3,307,473 | $ 3,238,126 |
| Revenues | 156,173 | 431,316 | 331,348 | 785,206 | ||||
| Net (loss) income | (34,103) | 13,328 | (159,185) | 45,253 | ||||
| Equity Method Investment, Nonconsolidated Investee or Group of Investees | The Summit | ||||||||
| Real Estate and Other Affiliates | ||||||||
| Total Assets | 243,112 | 243,112 | 221,277 | |||||
| Total Liabilities | 152,904 | 152,904 | 136,314 | |||||
| Total Equity | 90,208 | 90,208 | $ 84,963 | |||||
| Revenues | 18,836 | 27,704 | 58,672 | 58,187 | ||||
| Net (loss) income | (2,968) | 6,500 | 7,591 | 14,336 | ||||
| Gross Margin | $ (1,448) | $ 8,415 | $ 10,256 | $ 16,747 | ||||
IMPAIRMENT IMPAIRMENT (Narrative) (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
|
Jun. 30, 2020
USD ($)
hotel_room
|
Mar. 31, 2020
USD ($)
ft²
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
hotel_room
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
| Real Estate [Line Items] | ||||||
| Impairment of real estate | $ 0 | $ 0 | $ 48,738,000 | $ 0 | ||
| Equity method investment, impairment | $ 0 | |||||
| Outlet Collection, Riverwalk | ||||||
| Real Estate [Line Items] | ||||||
| Impairment of real estate | 0 | $ 48,700,000 | 0 | 48,738,000 | 0 | |
| Area of real estate property (in sqft) | ft² | 268,556 | |||||
| Assets, fair value disclosure | $ 46,800,000 | |||||
| Fair value capitalization rate | 0.10 | |||||
| Equity Method Investments | Mr. C Seaport | ||||||
| Real Estate [Line Items] | ||||||
| Equity method investment, impairment | 6,000,000 | 0 | $ 6,000,000 | 0 | ||
| Equity Method Investments | Seaport District revenues | Mr. C Seaport | ||||||
| Real Estate [Line Items] | ||||||
| Equity method investment, impairment | $ 6,000,000.0 | |||||
| Number of hotel rooms | hotel_room | 66 | 66 | ||||
| Equity method investment, ownership percentage | 35.00% | 35.00% | 35.00% | |||
| Condominium Inventory | ||||||
| Real Estate [Line Items] | ||||||
| Impairment of real estate | $ 5,078,000 | $ 0 | $ 5,078,000 | $ 0 | ||
IMPAIRMENT IMPAIRMENT (Summary of Impairments) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Real Estate [Line Items] | ||||||
| Impairment of real estate | $ 0 | $ 0 | $ 48,738,000 | $ 0 | ||
| Equity method investment, impairment | $ 0 | |||||
| Condominium Inventory | ||||||
| Real Estate [Line Items] | ||||||
| Impairment of real estate | 5,078,000 | 0 | 5,078,000 | 0 | ||
| Mr. C Seaport | Equity Method Investments | ||||||
| Real Estate [Line Items] | ||||||
| Equity method investment, impairment | 6,000,000 | 0 | 6,000,000 | 0 | ||
| Outlet Collection, Riverwalk | ||||||
| Real Estate [Line Items] | ||||||
| Impairment of real estate | $ 0 | $ 48,700,000 | $ 0 | $ 48,738,000 | $ 0 | |
OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Prepaid Expenses and Other Assets | |||||
| Straight-line rent | $ 61,060 | $ 61,060 | $ 56,223 | ||
| Condominium inventory | 58,151 | 58,151 | 56,421 | ||
| Security, escrow, and other deposits | 55,836 | 55,836 | 17,464 | ||
| Special Improvement District receivable | 40,963 | 40,963 | 42,996 | ||
| Intangibles | 32,935 | 32,935 | 33,275 | ||
| Prepaid expenses | 16,683 | 16,683 | 13,263 | ||
| Tenant incentives and other receivables | 10,145 | 10,145 | 7,556 | ||
| Other | 9,313 | 9,313 | 9,252 | ||
| TIF receivable | 4,032 | 4,032 | 3,931 | ||
| Food and beverage and lifestyle inventory | 1,166 | 1,166 | 4,310 | ||
| Federal income tax receivable | 655 | 655 | 655 | ||
| Prepaid expenses and other assets, net | 343,090 | 343,090 | 300,373 | ||
| Increase in prepaid expenses and other assets | 42,700 | ||||
| Increase in tenant and other deposits related to increases in land sales deposits | 38,400 | ||||
| Increase in condominium inventory | 4,800 | ||||
| Increase (decrease) in prepaid expense | 3,400 | ||||
| Increase (decrease) food and beverage and lifestyle inventory | (3,100) | (3,100) | |||
| Accounts Payable and Accrued Liabilities [Abstract] | |||||
| Construction payables | 327,006 | 327,006 | 261,523 | ||
| Condominium deposit liabilities | 289,438 | 289,438 | 194,794 | ||
| Interest rate swap liabilities | 77,737 | 77,737 | 40,135 | ||
| Deferred income | 66,142 | 66,142 | 63,483 | ||
| Accrued real estate taxes | 28,647 | 28,647 | 27,559 | ||
| Accounts payable and accrued expenses | 26,655 | 26,655 | 37,480 | ||
| Accrued payroll and other employee liabilities | 26,172 | 26,172 | 44,082 | ||
| Tenant and other deposits | 24,555 | 24,555 | 24,080 | ||
| Accrued interest | 23,120 | 23,120 | 23,838 | ||
| Other | 13,022 | 13,022 | 16,173 | ||
| Accounts payable and accrued expenses | 902,494 | 902,494 | 733,147 | ||
| Increase in accounts payable and accrued expenses | 169,300 | ||||
| Increase in condominium deposits | 94,600 | 94,644 | $ (105,472) | ||
| Increase in construction payables | 65,500 | ||||
| Loss contingency, loss in period | $ 97,900 | 115,400 | |||
| Increase in interest rate swap derivative liabilities | 37,600 | ||||
| Decrease in accrued payroll and other employee liabilities | (17,900) | ||||
| Decrease in accounts payable and accrued expenses | (10,800) | ||||
| Federal income tax receivable | |||||
| Prepaid Expenses and Other Assets | |||||
| Leases | 51,723 | 51,723 | 54,471 | ||
| Increase (decrease) finite-lived intangible assets, net | (2,700) | (2,700) | |||
| Above-market tenant leases | |||||
| Prepaid Expenses and Other Assets | |||||
| Leases | $ 428 | $ 428 | $ 556 | ||
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Summary of Mortgages, Notes and Loans Payable) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Mortgages, notes and loans payable | $ 2,536,978 | $ 2,229,958 |
| Unamortized bond issuance costs | (4,808) | (5,249) |
| Unamortized deferred financing costs | (33,282) | (36,899) |
| Total mortgages, notes and loans payable, net | 4,401,063 | 4,096,470 |
| Unsecured 5.375% Senior Notes | ||
| Debt Instrument [Line Items] | ||
| Fixed-rate debt | $ 1,000,000 | 1,000,000 |
| Interest rate (as a percent) | 5.375% | |
| Secured mortgages, notes and loans payable | ||
| Debt Instrument [Line Items] | ||
| Fixed-rate debt | $ 879,773 | 884,935 |
| Amount of variable-rate debt swapped to fixed rate | 705,000 | 630,100 |
| Special Improvement District bonds | ||
| Debt Instrument [Line Items] | ||
| Fixed-rate debt | 22,402 | 23,725 |
| Secured mortgages, notes and loans payable | Interest Rate Collar | ||
| Debt Instrument [Line Items] | ||
| Mortgages, notes and loans payable | 270,900 | 184,300 |
| Secured mortgages, notes and loans payable | Interest Rate Cap | ||
| Debt Instrument [Line Items] | ||
| Mortgages, notes and loans payable | $ 75,000 | $ 75,000 |
MORTGAGES, NOTES AND LOANS PAYABLE, NET (Narrative) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 7 Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 22, 2020 |
Mar. 27, 2020 |
Mar. 26, 2020 |
Mar. 13, 2020 |
Mar. 05, 2020 |
Jan. 07, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2020 |
Mar. 23, 2020 |
Dec. 31, 2019 |
Sep. 21, 2018 |
Sep. 18, 2018 |
|
| Mortgages, notes and loans payable | ||||||||||||||
| Land, buildings and equipment and developments in progress pledged as collateral | $ 6,700,000,000 | |||||||||||||
| Repayments of long-term debt | 51,008,000 | $ 163,555,000 | ||||||||||||
| $700 Million Loan Maturity September 2023 | Term Loan | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Loan amount | $ (615,000,000.0) | $ (615,000,000.0) | ||||||||||||
| The Woodlands Resort And Conference Center | Mortgages | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Long-term debt, gross | 62,500,000 | |||||||||||||
| Koula | Construction Loans | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Loan amount | $ (356,800,000) | |||||||||||||
| Term of extension option | 1 year | |||||||||||||
| Interest rate margin (as a percent) | 3.00% | |||||||||||||
| Summerlin | Secured mortgages, notes and loans payable | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Repayments of debt | $ 33,800,000 | |||||||||||||
| Loan amount | $ (221,500,000) | |||||||||||||
| Term of extension option | 3 years | |||||||||||||
| Summerlin | Secured mortgages, notes and loans payable | London Interbank Offered Rate (LIBOR) | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Interest rate margin (as a percent) | 2.15% | |||||||||||||
| Summerlin | Special Improvement District Bonds | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| New SIDs issued | 0 | |||||||||||||
| 100 Fellowship Drive | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Repayments of long-term debt | $ 50,000,000.0 | |||||||||||||
| Three Hughes Landing | Mortgages | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Loan amount | $ (61,000,000.0) | $ (61,200,000) | ||||||||||||
| Three Hughes Landing | Mortgages | London Interbank Offered Rate (LIBOR) | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Interest rate margin (as a percent) | 2.60% | |||||||||||||
| Creekside Park West | Construction Loans | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Loan amount | $ (43,400,000) | |||||||||||||
| Term of extension option | 1 year | |||||||||||||
| Interest rate (as a percent) | 1.75% | |||||||||||||
| Bridge Loan | 9950 Woodloch Forest Drive | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Repayments of debt | $ 63,500,000 | |||||||||||||
| Loan amount | $ (137,000,000.0) | |||||||||||||
| Interest rate (as a percent) | 1.95% | |||||||||||||
| Scenario, Forecast | Bridge Loan | The Woodlands Towers at the Waterway and The Woodlands Warehouse | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Loan amount | $ (280,300,000) | |||||||||||||
| Term of extension option | 6 months | |||||||||||||
| Scenario, Forecast | Bridge Loan | The Woodlands Towers at the Waterway and The Woodlands Warehouse | London Interbank Offered Rate (LIBOR) | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Debt instrument, basis spread on variable rate, extension option | 2.90% | |||||||||||||
| Interest rate margin (as a percent) | 2.35% | |||||||||||||
| Revolving Credit Facility | Corporate Facility Revolver | Line of Credit | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Long-term debt, gross | 61,300,000 | $ 67,500,000 | ||||||||||||
| Revolving Credit Facility | Scenario, Forecast | Corporate Facility Revolver | Line of Credit | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Repayments of debt | $ 61,300,000 | |||||||||||||
| COVID-19 | Scenario, Forecast | The Woodlands Resort And Conference Center | Mortgages | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Debt instrument, decrease, forgiveness | 24,100,000 | |||||||||||||
| Operating Segments | Self Storage Facility Member | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Long-term debt, gross | $ 10,900,000 | |||||||||||||
| Operating Segments | Self Storage Facility Member | COVID-19 | Scenario, Forecast | ||||||||||||||
| Mortgages, notes and loans payable | ||||||||||||||
| Debt instrument, decrease, forgiveness | $ 2,000,000.0 | |||||||||||||
FAIR VALUE (Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Interest rate derivative liabilities | $ 77,737 | $ 40,135 |
| Interest rate derivatives | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Interest rate derivative liabilities | 77,737 | 40,135 |
| Interest rate derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Interest rate derivative liabilities | 0 | 0 |
| Interest rate derivatives | Significant Other Observable Inputs (Level 2) | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Interest rate derivative liabilities | 77,737 | 40,135 |
| Interest rate derivatives | Significant Unobservable Inputs (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 Liabilities Not Measured at Fair Value) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|---|---|
| Assets: | ||||
| Cash and Restricted cash | $ 1,188,284 | $ 620,135 | $ 848,600 | $ 724,215 |
| Liabilities: | ||||
| Variable-rate debt | 2,536,978 | 2,229,958 | ||
| Allowance for doubtful accounts | 15,700 | 15,600 | ||
| Allowance for notes receivable | 200 | 200 | ||
| Level 1 | Carrying Amount | ||||
| Assets: | ||||
| Cash and Restricted cash | 1,188,284 | 620,135 | ||
| Level 1 | Estimated Fair Value | ||||
| Assets: | ||||
| Cash and Restricted cash | 1,188,284 | 620,135 | ||
| Level 3 | Carrying Amount | ||||
| Assets: | ||||
| Accounts receivable, net | 17,711 | 12,279 | ||
| Notes receivable, net | 56,511 | 36,379 | ||
| Level 3 | Estimated Fair Value | ||||
| Assets: | ||||
| Accounts receivable, net | 17,711 | 12,279 | ||
| Notes receivable, net | 56,511 | 36,379 | ||
| Level 2 | Carrying Amount | ||||
| Liabilities: | ||||
| Fixed-rate debt | 1,902,175 | 1,908,660 | ||
| Variable-rate debt | 2,536,978 | 2,229,958 | ||
| Level 2 | Estimated Fair Value | ||||
| Liabilities: | ||||
| Fixed-rate debt | 1,829,057 | 1,949,773 | ||
| Variable-rate debt | $ 2,536,978 | $ 2,229,958 |
FAIR VALUE (Assets Measure on a Non-recurring Basis) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
|
Jun. 30, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Total (Loss) | $ 0 | $ 0 | $ (48,738) | $ 0 | |
| Outlet Collection, Riverwalk | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Total (Loss) | 0 | $ (48,700) | $ 0 | (48,738) | $ 0 |
| Fair value capitalization rate | 0.10 | ||||
| Outlet Collection, Riverwalk | Fair Value, Measurements, Nonrecurring | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Total Fair Value Measurement | 46,794 | 46,794 | |||
| Outlet Collection, Riverwalk | Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Total Fair Value Measurement | 0 | 0 | |||
| Outlet Collection, Riverwalk | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Total Fair Value Measurement | 0 | 0 | |||
| Outlet Collection, Riverwalk | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Total Fair Value Measurement | $ 46,794 | $ 46,794 | |||
| Valuation Technique, Discounted Cash Flow | Measurement Input, Cap Rate | Fair Value, Measurements, Nonrecurring | |||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
| Fair value capitalization rate | 0.100 | 0.100 | |||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended |
|---|---|---|---|
|
Jun. 30, 2020
USD ($)
derivative_instrument
|
Jun. 30, 2020
USD ($)
derivative_instrument
settled_derivative
|
Dec. 31, 2019
USD ($)
settled_derivative
|
|
| Derivative [Line Items] | |||
| Derivative liability fair value gross | $ 77,737 | $ 77,737 | $ 40,135 |
| Interest Rate Cap | |||
| Derivative [Line Items] | |||
| Interest rate swap agreements settled | settled_derivative | 0 | 1 | |
| Interest rate derivatives | |||
| Derivative [Line Items] | |||
| Reduction in interest expense | 800 | $ 1,700 | |
| Credit Risk Contract | |||
| Derivative [Line Items] | |||
| Derivative liability fair value gross | $ 81,000 | $ 81,000 | $ 41,600 |
| Designated as Hedging Instrument | Interest Rate Cap | |||
| Derivative [Line Items] | |||
| Notional amount | 230,000 | ||
| Payment received from derivative settlement | $ 200 | ||
| Designated as Hedging Instrument | Interest rate derivatives | |||
| Derivative [Line Items] | |||
| Derivatives deferred effective portion of fair value change | derivative_instrument | 2 | 2 | |
| Loss on derivative expected amount to be reclassified | $ 15,500 | $ 15,500 | |
| Settled Interest Rate Swap, One | Designated as Hedging Instrument | Interest rate derivatives | |||
| Derivative [Line Items] | |||
| Derivative change in fair value recognition period | 7 years 6 months | ||
| Settled Interest Rate Swap, Two | Designated as Hedging Instrument | Interest rate derivatives | |||
| Derivative [Line Items] | |||
| Derivative change in fair value recognition period | 1 year 2 months 12 days |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Summary of the Notional Amount and Fair Value of Derivatives) (Details) - USD ($) |
12 Months Ended | |||||
|---|---|---|---|---|---|---|
Dec. 31, 2019 |
Jun. 30, 2020 |
May 01, 2020 |
Jun. 27, 2019 |
Sep. 21, 2018 |
Sep. 18, 2018 |
|
| Fair value of derivative instruments | ||||||
| Total fair value derivative liabilities | $ (40,135,000) | $ (77,737,000) | ||||
| Construction Loans | 8770 New Trails | ||||||
| Fair value of derivative instruments | ||||||
| Loan amount | $ 35,500,000 | |||||
| Interest rate cap | Derivative instruments not designated as hedging instruments | Prepaid expenses and other assets, net | Fixed Interest Rate 2.50%, Maturing December 2019 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount | $ 230,000,000 | |||||
| Fixed interest rate | 2.50% | |||||
| Total fair value derivative assets | 0 | $ 0 | ||||
| Interest (expense) income, net | 200,000 | |||||
| Interest rate cap | Derivative instruments designated as hedging instruments | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount | 230,000,000.0 | |||||
| Interest rate cap | Derivative instruments designated as hedging instruments | Prepaid expenses and other assets, net | Fixed Interest Rate 5.0% Maturing August 2019 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount | $ 75,000,000 | |||||
| Fixed interest rate | 5.00% | |||||
| Total fair value derivative assets | 0 | $ 0 | ||||
| Interest rate collar | Derivative instruments designated as hedging instruments | Accounts payable and accrued expenses | Fixed Interest Rate 2.00% To 3.00%, Maturing May 2020 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount, liability | 193,967,000 | $ 194,000,000.0 | ||||
| Total fair value derivative liabilities | (182,000) | 0 | ||||
| Interest rate collar | Derivative instruments designated as hedging instruments | Accounts payable and accrued expenses | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount, liability | 354,217,000 | |||||
| Total fair value derivative liabilities | (2,074,000) | (5,370,000) | ||||
| Interest rate collar | Derivative instruments designated as hedging instruments | Accounts payable and accrued expenses | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount, liability | 381,404,000 | |||||
| Total fair value derivative liabilities | (4,578,000) | (9,782,000) | ||||
| Income taxes on losses (gains) on cash flow hedges | Derivative instruments designated as hedging instruments | Accounts payable and accrued expenses | Fixed Interest Rate 2.96%, Maturing September 2023 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount, liability | $ 615,000,000 | |||||
| Fixed interest rate | 2.96% | |||||
| Total fair value derivative liabilities | (31,187,000) | $ (55,977,000) | ||||
| Income taxes on losses (gains) on cash flow hedges | Derivative instruments designated as hedging instruments | Accounts payable and accrued expenses | Fixed Interest Rate 4.89% Maturing January 2032 | ||||||
| Fair value of derivative instruments | ||||||
| Notional amount, liability | $ 1,810,000 | |||||
| Fixed interest rate | 4.89% | |||||
| Total fair value derivative liabilities | $ (2,114,000) | $ (6,608,000) | ||||
| Minimum | Interest rate collar | Derivative instruments designated as hedging instruments | Fixed Interest Rate 2.00% To 3.00%, Maturing May 2020 | ||||||
| Fair value of derivative instruments | ||||||
| Fixed interest rate | 2.00% | |||||
| Minimum | Interest rate collar | Derivative instruments designated as hedging instruments | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | ||||||
| Fair value of derivative instruments | ||||||
| Fixed interest rate | 2.25% | |||||
| Minimum | Interest rate collar | Derivative instruments designated as hedging instruments | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | ||||||
| Fair value of derivative instruments | ||||||
| Fixed interest rate | 2.75% | |||||
| Maximum | Interest rate collar | Derivative instruments designated as hedging instruments | Fixed Interest Rate 2.00% To 3.00%, Maturing May 2020 | ||||||
| Fair value of derivative instruments | ||||||
| Fixed interest rate | 3.00% | |||||
| Maximum | Interest rate collar | Derivative instruments designated as hedging instruments | Fixed Interest Rate 2.25% To 3.25%, Maturing May 2021 | ||||||
| Fair value of derivative instruments | ||||||
| Fixed interest rate | 3.25% | |||||
| Maximum | Interest rate collar | Derivative instruments designated as hedging instruments | Fixed Interest Rate 2.75% To 3.50%, Maturing April 2022 | ||||||
| Fair value of derivative instruments | ||||||
| Fixed interest rate | 3.50% | |||||
| $700 Million Loan Maturity September 2023 | Term Loan | ||||||
| Fair value of derivative instruments | ||||||
| Loan amount | $ 615,000,000.0 | $ 615,000,000.0 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Impact of Financial Instruments on Statement of Operations) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Effect of the Company's derivative financial instruments on the income statement | ||||
| Interest expense | $ 32,397 | $ 24,203 | $ 66,845 | $ 47,529 |
| Interest expense | ||||
| Effect of the Company's derivative financial instruments on the income statement | ||||
| Interest expense | (3,227) | 92 | (4,320) | 220 |
| Interest rate derivatives | ||||
| Effect of the Company's derivative financial instruments on the income statement | ||||
| Interest expense | 800 | 1,700 | ||
| Income taxes on losses (gains) on cash flow hedges | Interest rate derivatives | ||||
| Effect of the Company's derivative financial instruments on the income statement | ||||
| Interest rate derivatives | $ (3,461) | $ (13,016) | $ (34,801) | $ (18,832) |
COMMITMENTS AND CONTINGENCIES (Details) |
3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
|
Jun. 30, 2020
USD ($)
housing_unit
condominium_tower
|
Mar. 31, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
housing_unit
condominium_tower
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jun. 14, 2018
individual_or_entity
|
|
| Lessor, Lease, Description [Line Items] | |||||||
| Number of individuals or entities on petition | individual_or_entity | 500 | ||||||
| Loss contingency, loss in period | $ 97,900,000 | $ 115,400,000 | |||||
| Outstanding letters of credit | $ 11,500,000 | 11,500,000 | $ 15,400,000 | ||||
| Amount of outstanding surety bonds | 238,100,000 | 238,100,000 | $ 200,100,000 | ||||
| Rent expense | $ 1,600,000 | $ 2,100,000 | $ 3,400,000 | $ 4,200,000 | |||
| Product liability contingency, third party recovery, percentage | 20.00% | ||||||
| Number of open condominium towers | condominium_tower | 4 | 4 | |||||
| Number of reserved housing units | housing_unit | 375 | 375 | |||||
| Guarantee Obligations | Downtown Columbia | |||||||
| Lessor, Lease, Description [Line Items] | |||||||
| Loss contingency guaranteed amount limit | $ 1,000,000.0 | $ 1,000,000.0 | |||||
STOCK-BASED PLANS (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
May 14, 2020 |
|
| Stock-based plans | |||||
| Common stock reserved for future issuance (in shares) | 1,350,000 | ||||
| Stock Options | |||||
| Stock options outstanding at the beginning of the period (in shares) | 721,496 | ||||
| Granted (in shares) | 2,000 | ||||
| Exercised (in shares) | (57,058) | ||||
| Forfeited (in shares) | (125,500) | ||||
| Expired (in shares) | (22,188) | ||||
| Stock options outstanding at the end of the period (in shares) | 518,750 | 518,750 | |||
| Weighted-average Exercise Price | |||||
| Stock options outstanding at the beginning of the period (in dollars per share) | $ 104.55 | ||||
| Granted (in dollars per share) | 83.11 | ||||
| Exercised (in dollars per share) | 67.24 | ||||
| Forfeited (in dollars per share) | 124.24 | ||||
| Expired (in dollars per share) | 100.08 | ||||
| Stock options outstanding at the end of the period (in dollars per share) | $ 104.01 | $ 104.01 | |||
| Stock based compensation expense | $ 3,346 | $ 6,230 | |||
| Stock Option | |||||
| Weighted-average Exercise Price | |||||
| Stock based compensation expense | $ 200 | $ 800 | (500) | 1,500 | |
| Share based compensation costs capitalized | 200 | 200 | 400 | ||
| Restricted Stock | |||||
| Weighted-average Exercise Price | |||||
| Stock based compensation expense | 1,800 | 2,400 | 3,700 | 4,700 | |
| Share based compensation costs capitalized | $ 700 | $ 300 | $ 700 | $ 600 | |
STOCK-BASED PLANS (Summary of Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Weighted-average Grant Date Fair Value | ||||
| Stock based compensation expense | $ 3,346 | $ 6,230 | ||
| Restricted Stock | ||||
| Restricted Stock | ||||
| Restricted stock outstanding at the beginning of the period (in shares) | 406,802 | |||
| Granted (in shares) | 70,210 | |||
| Vested (in shares) | (13,729) | |||
| Forfeited (in shares) | (23,000) | |||
| Restricted stock outstanding at the end of the period (in shares) | 440,283 | 440,283 | ||
| Weighted-average Grant Date Fair Value | ||||
| Restricted stock outstanding at the beginning of the period (in dollars per share) | $ 76.27 | |||
| Granted (in dollars per share) | 84.55 | |||
| Vested (in dollars per share) | 101.24 | |||
| Forfeited (in dollars per share) | 94.83 | |||
| Restricted stock outstanding at the end of the period (in dollars per share) | $ 75.73 | $ 75.73 | ||
| Stock based compensation expense | $ 1,800 | $ 2,400 | $ 3,700 | 4,700 |
| Share based compensation costs capitalized | $ 700 | $ 300 | $ 700 | $ 600 |
INCOME TAXES (Narrative) (Details) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Income Tax Disclosure [Abstract] | ||||
| Effective tax rate (as a percent) | 16.70% | 24.90% | 20.50% | 25.50% |
WARRANTS (Details) - Management Warrants - USD ($) $ / shares in Units, $ in Millions |
Oct. 07, 2016 |
Oct. 04, 2017 |
Jun. 16, 2017 |
|---|---|---|---|
| Chief Financial Officer | |||
| Class of Warrant or Right [Line Items] | |||
| Number of shares called by warrants (in shares) | 50,125 | ||
| Exercise price (in dollars per share) | $ 112.08 | ||
| Proceeds from issuance of Management warrants | $ 1.0 | ||
| Chief Executive Officer | |||
| Class of Warrant or Right [Line Items] | |||
| Number of shares called by warrants (in shares) | 1,965,409 | ||
| Exercise price (in dollars per share) | $ 124.64 | ||
| Total warrant price | $ 50.0 | ||
| President | |||
| Class of Warrant or Right [Line Items] | |||
| Number of shares called by warrants (in shares) | 87,951 | ||
| Exercise price (in dollars per share) | $ 117.01 | ||
| Total warrant price | $ 2.0 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Summary of Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
| Balance at the beginning of the period | $ 3,772,598 | $ 3,307,473 | $ 3,332,988 | $ 3,238,126 |
| Other comprehensive income before reclassifications | (3,461) | (13,038) | (34,801) | (18,905) |
| Net current-period other comprehensive loss | (838) | (13,783) | (31,739) | (20,416) |
| Balance at the end of the period | 3,739,703 | 3,351,767 | 3,739,703 | 3,351,767 |
| Total | ||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
| Balance at the beginning of the period | (60,273) | (14,759) | (29,372) | (8,126) |
| Balance at the end of the period | (61,111) | (28,542) | (61,111) | (28,542) |
| Gain reclassified from accumulated other comprehensive loss to net income | ||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
| Reclassifications | 3,227 | (92) | 4,320 | (220) |
| Terminated swap amortization | ||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
| Reclassifications | $ (604) | $ (653) | $ (1,258) | $ (1,291) |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Summary of Amounts Reclassified Out of AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Reclassifications out of accumulated other comprehensive income (loss) | ||||
| Interest expense | $ (32,397) | $ (24,203) | $ (66,845) | $ (47,529) |
| Provision for income taxes | (6,844) | 4,473 | (40,944) | 15,489 |
| Net of tax | 34,103 | (13,328) | 159,185 | (45,253) |
| Reclassification out of Accumulated Other Comprehensive Income | ||||
| Reclassifications out of accumulated other comprehensive income (loss) | ||||
| Net of tax | 3,227 | (92) | 4,320 | (220) |
| Losses (gains) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
| Reclassifications out of accumulated other comprehensive income (loss) | ||||
| Interest expense | 4,086 | (116) | 5,469 | (278) |
| Losses (gains) on cash flow hedges | Income taxes on losses (gains) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
| Reclassifications out of accumulated other comprehensive income (loss) | ||||
| Provision for income taxes | $ (859) | $ 24 | $ (1,149) | $ 58 |
EARNINGS PER SHARE (Information Related to EPS Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Numerator: | ||||
| Net (loss) income | $ (34,103) | $ 13,328 | $ (159,185) | $ 45,253 |
| Net loss (income) attributable to noncontrolling interests | 19 | 149 | (33) | 45 |
| Net (loss) income attributable to common stockholders | $ (34,084) | $ 13,477 | $ (159,218) | $ 45,298 |
| Denominator: | ||||
| Weighted-average basic common shares outstanding (in shares) | 55,530 | 43,113 | 49,455 | 43,109 |
| Numerator: | ||||
| Net (loss) income attributable to common stockholders | $ (34,084) | $ 13,477 | $ (159,218) | $ 45,298 |
| Denominator: | ||||
| Weighted-average basic common shares outstanding (in shares) | 55,530 | 43,113 | 49,455 | 43,109 |
| Restricted stock and stock options (in shares) | 0 | 158 | 0 | 154 |
| Weighted-average diluted common shares outstanding (in shares) | 55,530 | 43,271 | 49,455 | 43,263 |
| Basic (loss) income per share (in dollars per share) | $ (0.61) | $ 0.31 | $ (3.22) | $ 1.05 |
| Diluted (loss) income per share (in dollars per share) | $ (0.61) | $ 0.31 | $ (3.22) | $ 1.05 |
EARNINGS PER SHARE (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2020 |
Mar. 27, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Antidilutive securities excluded from computation of diluted earnings per share | |||||||
| 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) | $ 50.00 | ||||||
| Sale of stock, consideration received on transaction | $ 593.7 | ||||||
| Employees Directors and Consultants Stock Options | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 513,750 | 569,408 | 386,522 | ||||
| Restricted Stock | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 262,369 | 278,379 | 262,369 | 278,379 | |||
| Over-Allotment Option | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share | |||||||
| Sale of stock, number of shares issued in transaction (in shares) | 300,000 | ||||||
| Additional Over-Allotment Option | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share | |||||||
| Sale of stock, number of shares issued in transaction (in shares) | 270,900 | ||||||
| Private Placement | |||||||
| Antidilutive securities excluded from computation of diluted earnings per share | |||||||
| Sale of stock, number of shares issued in transaction (in shares) | 10,000,000 | ||||||
| Common stock, par value (in dollars per share) | $ 50.00 | ||||||
REVENUES (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Minimum rents | $ 61,469 | $ 54,718 | $ 132,456 | $ 108,804 |
| Tenant recoveries | 17,202 | 13,512 | 38,077 | 27,020 |
| Interest income from sales-type leases | 35 | 0 | 917 | 0 |
| Total rental income | 78,706 | 68,230 | 171,450 | 135,824 |
| Total revenues | 156,173 | 431,316 | 331,348 | 785,206 |
| Recognized at a point in time | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 66,020 | 303,312 | 113,554 | 548,129 |
| Total revenues | 156,173 | 431,316 | 331,348 | 785,206 |
| Recognized at a point in time and/or over time | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 11,447 | 59,774 | 46,344 | 101,253 |
| Operating Assets revenues | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total revenues | 84,277 | 109,219 | 198,534 | 201,172 |
| Master Planned Communities revenues | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total revenues | 68,913 | 72,859 | 119,359 | 123,755 |
| Seaport District revenues | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total revenues | 2,272 | 12,891 | 11,966 | 19,921 |
| Strategic Developments revenues | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total revenues | 624 | 236,347 | 1,384 | 440,358 |
| Corporate revenues | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total revenues | 87 | 0 | 105 | 0 |
| Condominium rights and unit sales | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 0 | 235,622 | 43 | 433,932 |
| Condominium rights and unit sales | Recognized at a point in time | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 0 | 235,622 | 43 | 433,932 |
| Master Planned Communities land sales | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 57,073 | 58,321 | 96,805 | 99,633 |
| Master Planned Communities land sales | Recognized at a point in time | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 57,073 | 58,321 | 96,805 | 99,633 |
| Builder price participation | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 8,947 | 9,369 | 16,706 | 14,564 |
| Builder price participation | Recognized at a point in time | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 8,947 | 9,369 | 16,706 | 14,564 |
| Other rental and property revenues | Recognized at a point in time and/or over time | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | $ 11,447 | $ 59,774 | $ 46,344 | $ 101,253 |
REVENUES (Schedule of Contract with Customer, Assets and Liabilities) (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Contract Liabilities | |
| Beginning balance | $ 246,010 |
| Consideration earned during the period | (30,200) |
| Consideration received during the period | 122,526 |
| Ending balance | $ 338,336 |
REVENUES (Schedule of Remaining Unsatisfied Performance Obligations) (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
|---|---|
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 1,700,000 |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 193,994 |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Remaining performance obligation, expected timing of satisfaction period | 6 months |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 433,966 |
| 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]: 2022-01-01 | |
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 1,048,461 |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Remaining performance obligation, expected timing of satisfaction period |
LEASES (Narrative) (Details) |
3 Months Ended |
|---|---|
Jun. 30, 2020 | |
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
| Lease termination period | 1 year |
| Average remaining term of lease | 5 years |
| Minimum | |
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
| Lessee, operating lease, remaining lease term | 1 year |
| Lease renewal term | 2 years |
| Maximum | |
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
| Lessee, operating lease, remaining lease term | 53 years |
| Lease renewal term | 40 years |
LEASES (Assets and Liabilities) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Assets | ||
| Operating lease right-of-use assets | $ 68,117 | |
| Riverwalk impairment | (10,235) | |
| Operating lease right-of-use assets | 57,882 | $ 69,398 |
| Liabilities | ||
| Operating lease liabilities | $ 69,607 | $ 70,413 |
LEASES (Lease Costs) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
|
| Leases [Abstract] | ||
| Operating lease cost | $ 2,179 | $ 4,358 |
| Variable lease costs | 117 | 290 |
| Net lease cost | $ 2,296 | $ 4,648 |
LEASES (Lease Liability Maturity) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Operating Lease | ||
| 2020 (excluding the six months ended June 30, 2020) | $ 3,056 | |
| 2021 | 7,184 | |
| 2022 | 6,507 | |
| 2023 | 6,464 | |
| 2024 | 6,432 | |
| Thereafter | 266,852 | |
| Total lease payments | 296,495 | |
| Less: imputed interest | (226,888) | |
| Present value of lease liabilities | $ 69,607 | $ 70,413 |
LEASES (Other Information) (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Leases [Abstract] | |
| Operating cash flows on operating leases | $ 3,849 |
| Weighted-average remaining lease term (years) | |
| Operating leases | 37 years |
| Weighted-average discount rate | |
| Operating leases | 7.80% |
LEASES (Minimum Rent Payments Received) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
|
| Leases [Abstract] | ||
| Total minimum rent payments | $ 54,114 | $ 113,213 |
| 2020 (excluding the six months ended June 30, 2020) | 110,505 | 110,505 |
| 2021 | 234,654 | 234,654 |
| 2022 | 251,870 | 251,870 |
| 2023 | 242,176 | 242,176 |
| 2024 | 234,851 | 234,851 |
| Thereafter | 1,511,105 | 1,511,105 |
| Total | $ 2,585,161 | $ 2,585,161 |
SEGMENTS (Summary of Segment Operating Results) (Details) ft² in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
|
Jun. 30, 2020
USD ($)
ft²
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
ft²
segment
location
|
Jun. 30, 2019
USD ($)
|
|
| Segments reporting | ||||
| Number of reportable segments | segment | 4 | |||
| Total revenues | $ 156,173 | $ 431,316 | $ 331,348 | $ 785,206 |
| Depreciation and amortization | (46,963) | (38,918) | (108,600) | (75,049) |
| Other income, net | 1,607 | 10,288 | (2,077) | 10,461 |
| Equity in (losses) earnings from real estate and other affiliates | (8,552) | 6,354 | 2,797 | 16,305 |
| Gain on sale or disposal of real estate | 8,000 | (144) | 46,124 | (150) |
| Provision for impairment | 0 | 0 | (48,738) | 0 |
| Segment EBT | (40,947) | 17,801 | (200,129) | 60,742 |
| Net (loss) income | (34,103) | 13,328 | (159,185) | 45,253 |
| Net income (loss) attributable to noncontrolling interests | 19 | 149 | (33) | 45 |
| Net (loss) income attributable to common stockholders | (34,084) | 13,477 | (159,218) | 45,298 |
| Operating Assets | ||||
| Segments reporting | ||||
| Total revenues | 84,277 | 109,219 | 198,534 | 201,172 |
| Master Planned Communities | ||||
| Segments reporting | ||||
| Total revenues | $ 68,913 | 72,859 | $ 119,359 | 123,755 |
| Seaport District | ||||
| Segments reporting | ||||
| Area of real estate property (in sqft) | ft² | 453 | 453 | ||
| Number of primary locations | location | 3 | |||
| Operating locations | location | 2 | |||
| Strategic Developments | ||||
| Segments reporting | ||||
| Total revenues | $ 624 | 236,347 | $ 1,384 | 440,358 |
| Operating Segments | ||||
| Segments reporting | ||||
| Total revenues | 156,086 | 431,316 | 331,243 | 785,206 |
| Total operating expenses | (95,173) | (330,323) | (289,745) | (561,037) |
| Segment operating income | 60,913 | 100,993 | 41,498 | 224,169 |
| Depreciation and amortization | (45,512) | (37,037) | (105,328) | (71,554) |
| Interest (expense) income, net | (18,369) | (10,465) | (39,130) | (20,183) |
| Other income, net | 1,485 | 716 | (2,317) | 1,353 |
| Equity in (losses) earnings from real estate and other affiliates | (8,552) | 6,354 | 2,797 | 16,305 |
| Gain on sale or disposal of real estate | 8,000 | (144) | 46,124 | (150) |
| Segment EBT | (2,035) | 60,417 | (105,094) | 149,940 |
| Operating Segments | Operating Assets | ||||
| Segments reporting | ||||
| Total revenues | 84,277 | 109,219 | 198,534 | 201,172 |
| Total operating expenses | (42,222) | (48,727) | (94,462) | (91,639) |
| Segment operating income | 42,055 | 60,492 | 104,072 | 109,533 |
| Depreciation and amortization | (36,995) | (28,938) | (74,084) | (56,046) |
| Interest (expense) income, net | (23,103) | (20,059) | (49,296) | (39,050) |
| Other income, net | 226 | 1,088 | 167 | 1,123 |
| Equity in (losses) earnings from real estate and other affiliates | 475 | 45 | 4,869 | 2,754 |
| Gain on sale or disposal of real estate | 0 | 0 | 38,124 | 0 |
| Provision for impairment | 0 | 0 | (48,738) | 0 |
| Segment EBT | (17,342) | 12,628 | (24,886) | 18,314 |
| Operating Segments | Master Planned Communities | ||||
| Segments reporting | ||||
| Total revenues | 68,913 | 72,859 | 119,359 | 123,755 |
| Total operating expenses | (31,970) | (38,913) | (55,692) | (65,979) |
| Segment operating income | 36,943 | 33,946 | 63,667 | 57,776 |
| Depreciation and amortization | (91) | (86) | (182) | (246) |
| Interest (expense) income, net | 8,303 | 8,283 | 16,857 | 15,826 |
| Other income, net | 0 | 72 | 0 | 67 |
| Equity in (losses) earnings from real estate and other affiliates | (2,968) | 6,499 | 5,966 | 14,336 |
| Segment EBT | 42,187 | 48,714 | 86,308 | 87,759 |
| Operating Segments | Seaport District | ||||
| Segments reporting | ||||
| Total revenues | 2,272 | 12,891 | 11,966 | 19,921 |
| Total operating expenses | (8,464) | (17,972) | (22,775) | (32,405) |
| Segment operating income | (6,192) | (5,081) | (10,809) | (12,484) |
| Depreciation and amortization | (6,776) | (6,753) | (27,651) | (12,946) |
| Interest (expense) income, net | (4,626) | (1,924) | (9,679) | (3,456) |
| Other income, net | (409) | (61) | (3,777) | (147) |
| Equity in (losses) earnings from real estate and other affiliates | (6,633) | (451) | (8,676) | (1,083) |
| Gain on sale or disposal of real estate | 0 | 0 | 0 | (6) |
| Segment EBT | (24,636) | (14,270) | (60,592) | (30,122) |
| Operating Segments | Strategic Developments | ||||
| Segments reporting | ||||
| Total revenues | 624 | 236,347 | 1,384 | 440,358 |
| Total operating expenses | (12,517) | (224,711) | (116,816) | (371,014) |
| Segment operating income | (11,893) | 11,636 | (115,432) | 69,344 |
| Depreciation and amortization | (1,650) | (1,260) | (3,411) | (2,316) |
| Interest (expense) income, net | 1,057 | 3,235 | 2,988 | 6,497 |
| Other income, net | 1,668 | (383) | 1,293 | 310 |
| Equity in (losses) earnings from real estate and other affiliates | 574 | 261 | 638 | 298 |
| Gain on sale or disposal of real estate | 8,000 | (144) | 8,000 | (144) |
| Segment EBT | (2,244) | 13,345 | (105,924) | 73,989 |
| Corporate expenses and other items | ||||
| Segments reporting | ||||
| Corporate income, expenses and other items | $ (32,068) | (47,089) | $ (54,091) | (104,687) |
| Tin Building | Seaport District | ||||
| Segments reporting | ||||
| Area of real estate property (in sqft) | ft² | 53 | 53 | ||
| Hospitality Revenue | Operating Segments | Operating Assets | ||||
| Segments reporting | ||||
| Total revenues | $ 2,500 | 25,600 | $ 19,800 | 48,500 |
| Total operating expenses | $ (4,400) | $ (16,600) | $ (17,200) | $ (32,200) |
SEGMENTS (Summary of Assets by Segment and Reconciliation of Segment Assets to Total Assets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Reconciliation of total segment assets to total assets | ||
| Assets | $ 9,244,558 | $ 8,413,766 |
| Operating Segments | ||
| Reconciliation of total segment assets to total assets | ||
| Assets | 8,421,693 | 8,113,418 |
| Operating Segments | Operating Assets | ||
| Reconciliation of total segment assets to total assets | ||
| Assets | 3,607,546 | 3,476,718 |
| Operating Segments | Master Planned Communities | ||
| Reconciliation of total segment assets to total assets | ||
| Assets | 2,262,400 | 2,166,472 |
| Operating Segments | Seaport District | ||
| Reconciliation of total segment assets to total assets | ||
| Assets | 913,321 | 930,067 |
| Operating Segments | Strategic Developments | ||
| Reconciliation of total segment assets to total assets | ||
| Assets | 1,638,426 | 1,540,161 |
| Corporate | ||
| Reconciliation of total segment assets to total assets | ||
| Assets | $ 822,865 | $ 300,348 |