Bay Street News

Howard Hughes Holdings Inc. Reports Third Quarter 2024 Results

THE WOODLANDS, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) — Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company,” “HHH,” or “we”) today announced operating results for the third quarter ended September 30, 2024. The financial statements, exhibits, and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information, as available through the Investors section of our website, provide further detail of these results.

Third Quarter 2024 Highlights:

“Howard Hughes continued to defy the market’s national narrative in the third quarter, producing outstanding financial results—including record MPC EBT—across our entire portfolio of world class assets which ultimately contributed to increased full-year guidance in each of our segments,” commented David R. O’Reilly, Chief Executive Officer of Howard Hughes. “In the quarter, we also completed our transformative spinoff of Seaport Entertainment, embarking on a new chapter as a pure-play real estate company. With a streamlined portfolio and refined strategic focus on the development of our world-class master planned communities, we anticipate many exciting opportunities for growth and incremental value creation in the years to come.

“In our MPC segment, we delivered record quarterly EBT of $145 million as homebuilder demand for incremental acreage remained at elevated levels. During the quarter, we closed on the sale of 191 residential acres at an impressive average price of $1 million per acre—representing a strong 13% year-over-year pricing increase. With this incredible pace of land sales and pricing, as well as a solid new home market and low inventories of vacant lots in our MPCs, we anticipate continued momentum for additional land sales going forward. As a result, we have meaningfully raised our 2024 full-year MPC EBT guidance range by $30 million to a new mid-point of $330 million.

“In Operating Assets, we delivered strong 8% year-over-year NOI growth, with solid gains in our office and multi-family portfolios. In office, we continued to benefit from expiring rent abatements in The Woodlands and Summerlin® which are the result of remarkable leasing performance in recent years. In multi-family, we achieved a second consecutive quarter of record NOI driven by incremental lease-up at our newest properties, as well as by continued strong demand at our stabilized assets which are almost entirely full. For the full year, we now expect record Operating Assets NOI—including the contribution from joint ventures—of approximately $257 million, up $2 million compared to our previous guidance.

“In Strategic Developments, pre-sales for our future condominium developments in Hawai’i and Texas continued at a solid pace with 29 units contracted during the quarter, bringing our inventory of available units to 88% pre-sold. In early November, subsequent to quarter end, we delivered Victoria Place—our seventh completed condominium tower in Hawai’i. Closings for this project will begin this week, and we expect to achieve approximately $760 million of condo revenue, representing the highest revenue achieved on any tower in the history of Ward Village. In Texas, we recently broke ground on The Ritz-Carlton Residences, The Woodlands. This ultra-luxury condo development on the shores of Lake Woodlands has seen incredible demand since its launch with pre-sales achieving a record price per square-foot for the Houston market.

“And finally, we closed on our first sale of Municipal Utility District (MUD) receivables in Bridgeland® during the quarter, allowing us to create a liquidity mechanism to further enhance our self-funding model. We used the proceeds to significantly pay down Bridgeland’s line of credit, allowing us to expand our borrowing capacity, which improves our liquidity and provides greater optionality for the future. Looking forward, we are exploring opportunities to continue improving our liquidity by accelerating the monetization of other MUD receivables.”

Click Here: Third Quarter 2024 Howard Hughes Quarterly Spotlight Video
Click Here: Third Quarter 2024 Earnings Call Webcast

Financial Highlights

Total Company

MPC

Operating Assets

Strategic Developments

Financing Activity

Full Year 2024 Guidance

Conference Call & Webcast Information

Howard Hughes Holdings Inc. will host its third quarter 2024 earnings conference call on Tuesday, November 5, 2024, at 12:00 p.m. Eastern Time (11:00 a.m. Central Time). Please visit the Howard Hughes website to listen to the earnings call via a live webcast. For listeners who wish to participate in the question-and-answer session via telephone, please preregister using HHH’s earnings call registration website. All registrants will receive dial-in information and a PIN allowing them to access the live call. An on-demand replay of the earnings call will be available on the Company’s website.

We are primarily focused on creating shareholder value by increasing our per-share net asset value. Often, the nature of our business results in short-term volatility in our net income due to the timing of MPC land sales, recognition of condominium revenue and operating business pre-opening expenses, and, as such, we believe the following metrics summarized below are most useful in tracking our progress towards net asset value creation.

  Three Months Ended September 30,   Nine Months Ended September 30,
$ in thousands   2024     2023     $ Change % Change     2024       2023     $ Change % Change
Operating Assets NOI (1)                          
Office $ 31,782   $ 29,286     $ 2,496   9 %   $ 95,601     $ 90,661     $ 4,940   5 %
Retail   13,015     12,819       196   2 %     42,477       39,986       2,491   6 %
Multi-family   15,887     13,817       2,070   15 %     43,827       39,512       4,315   11 %
Other   2,164     1,746       418   24 %     4,694       5,376       (682 ) (13 )%
Redevelopments (a)       (36 )     36   100 %           (82 )     82   100 %
Dispositions (a)       209       (209 ) (100 )%     (55 )     758       (813 ) (107 )%
Operating Assets NOI   62,848     57,841       5,007   9 %     186,544       176,211       10,333   6 %
Company’s share of NOI from unconsolidated ventures   1,954     2,121       (167 ) (8 )%     9,264       8,941       323   4 %
Total Operating Assets NOI $ 64,802   $ 59,962     $ 4,840   8 %   $ 195,808     $ 185,152     $ 10,656   6 %
                           
Projected stabilized NOI Operating Assets ($ in millions) $ 354.5   $ 364.7     $ (10.2 ) (3 )%              
                           
MPC                          
Acres Sold – Residential   191     84       107   127 %     386       169       217   128 %
Acres Sold – Commercial       13       (13 ) (100 )%     4       123       (119 ) (96 )%
Price Per Acre – Residential   1,033     913       120   13 %   $ 1,003     $ 818     $ 185   23 %
Price Per Acre – Commercial       262       (262 ) (100 )%   $ 801     $ 258     $ 543   NM
MPC EBT $ 144,752   $ 84,798     $ 59,954   71 %   $ 292,244     $ 202,096     $ 90,148   45 %
                           
Strategic Developments                          
Condominium rights and unit sales $ 3   $ 25,962     $ (25,959 ) (100 )%   $ 26     $ 46,915     $ (46,889 ) (100 )%

(a)   Properties that were transferred to our Strategic Developments segment for redevelopment and properties that were sold are shown separately for all periods presented.

NM – Not Meaningful

Financial Data
(1)   See the accompanying appendix for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measure provides useful information for investors.  

About Howard Hughes Holdings Inc.®

Howard Hughes Holdings Inc. owns, manages, and develops commercial, residential, and mixed-use real estate throughout the U.S. Its award-winning assets include the country’s preeminent portfolio of master planned communities, as well as operating properties and development opportunities including: Downtown Columbia® in Maryland; The Woodlands®, Bridgeland® and The Woodlands Hills® in the Greater Houston, Texas area; Summerlin® in Las Vegas; Ward Village® in Honolulu, Hawaiʻi; and Teravalis™ in the Greater Phoenix, Arizona area. The Howard Hughes portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative placemaking, the company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. Howard Hughes Holdings Inc. is traded on the New York Stock Exchange as HHH. For additional information visit www.howardhughes.com.

Safe Harbor Statement

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts, including, among others, statements regarding the Company’s future financial position, results or performance, are forward-looking statements. Those statements include statements regarding the intent, belief, or current expectations of the Company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “realize,” “should,” “transform,” “will,” “would,” and other statements of similar expression. Forward-looking statements are not a guaranty of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the Company’s abilities to control or predict. Some of the risks, uncertainties and other important factors that may affect future results or cause actual results to differ materially from those expressed or implied by forward-looking statements include: (i) general adverse economic and local real estate conditions; (ii) potential changes in the financial markets and interest rates; (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; (iv) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms, if at all; (v) ability to compete effectively, including the potential impact of heightened competition for tenants and potential decreases in occupancy at our properties; (vi) our ability to satisfy the necessary conditions and complete the spinoff on a timely basis (or at all) and realize the anticipated benefits of the spinoff; (vii) our ability to successfully identify, acquire, develop and/or manage properties on favorable terms and in accordance with applicable zoning and permitting laws; (xiii) changes in governmental laws and regulations; (ix) general inflation, including core and wage inflation; commodity and energy price and currency volatility; as well as monetary, fiscal, and policy interventions in anticipation of our reaction to such events; (x) lack of control over certain of the Company’s properties due to the joint ownership of such property; (xi) impairment charges; (xii) the effects of catastrophic events or geopolitical conditions, such as international armed conflict, or a resurgence of the COVID-19 pandemic or the occurrence of other epidemics or pandemics; (xiii) the effects of extreme weather conditions or climate change, including natural disasters; (xiv) the inherent risks related to disruption of information technology networks and related systems, including cyber security attacks; and (xv) the ability to attract and retain key employees. The Company refers you to the section entitled “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission. Copies of each filing may be obtained from the Company or the Securities and Exchange Commission. The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the Company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

Financial Presentation

As discussed throughout this release, we use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. A non-GAAP financial measure used throughout this release is net operating income (NOI). We provide a more detailed discussion about this non-GAAP measure in our reconciliation of non-GAAP measures provided in the appendix in this earnings release.

Contacts

Howard Hughes Holdings Inc.

Media Relations:
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com

Investor Relations:
Eric Holcomb, 281-475-2144
Senior Vice President, Investor Relations
eric.holcomb@howardhughes.com

HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
thousands except per share amounts   2024       2023       2024       2023  
REVENUES              
Condominium rights and unit sales $ 3     $ 25,962     $ 26     $ 46,915  
Master Planned Communities land sales   198,239       75,378       385,444       177,045  
Rental revenue   108,613       99,978       315,461       290,164  
Other land, rental, and property revenues   10,700       11,308       31,105       35,902  
Builder price participation   9,592       15,847       35,063       45,763  
Total revenues   327,147       228,473       767,099       595,789  
               
EXPENSES              
Condominium rights and unit cost of sales   11,833       22,537       15,694       56,390  
Master Planned Communities cost of sales   72,582       28,264       143,254       66,134  
Operating costs   50,841       51,856       149,412       147,926  
Rental property real estate taxes   14,484       14,763       43,799       44,758  
Provision for (recovery of) doubtful accounts   190       1,399       327       (1,034 )
General and administrative   24,862       21,601       68,930       65,371  
Depreciation and amortization   44,088       42,686       134,833       122,217  
Other   3,582       2,195       11,268       8,834  
Total expenses   222,462       185,301       567,517       510,596  
               
OTHER              
Gain (loss) on sale or disposal of real estate and other assets, net   3,165       16,286       7,959       21,000  
Other income (loss), net   90,489       (82 )     91,870       4,914  
Total other   93,654       16,204       99,829       25,914  
               
Operating income (loss)   198,339       59,376       299,411       111,107  
               
Interest income   5,341       7,682       19,270       16,766  
Interest expense   (43,802 )     (39,316 )     (122,597 )     (112,783 )
Gain (loss) on extinguishment of debt               (198 )      
Loss on sale of MUD receivables   (51,525 )           (51,525 )      
Equity in earnings (losses) from unconsolidated ventures   (1,630 )     15,732       (4,230 )     26,461  
Income (loss) from continuing operations before income taxes   106,723       43,474       140,131       41,551  
Income tax expense (benefit)   10,195       11,410       17,236       10,975  
Net income (loss) from continuing operations   96,528       32,064       122,895       30,576  
Net income (loss) from discontinued operations, net of taxes   (24,031 )     (576,199 )     (81,807 )     (616,479 )
Net income (loss)   72,497       (544,135 )     41,088       (585,903 )
Net (income) loss attributable to noncontrolling interests   273       (46 )     297       (166 )
Net income (loss) attributable to common stockholders $ 72,770     $ (544,181 )   $ 41,385     $ (586,069 )
               
Basic income (loss) per share — continuing operations $ 1.95     $ 0.65     $ 2.48     $ 0.61  
Diluted income (loss) per share — continuing operations $ 1.95     $ 0.64     $ 2.48     $ 0.61  

HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED

thousands except par values and share amounts September 30,
2024
  December 31,
2023
ASSETS      
Master Planned Communities assets $ 2,491,291     $ 2,445,673  
Buildings and equipment   3,794,960       3,649,376  
Less: accumulated depreciation   (915,279 )     (829,018 )
Land   299,406       294,189  
Developments   1,705,544       1,169,571  
Net investment in real estate   7,375,922       6,729,791  
Investments in unconsolidated ventures   177,908       182,799  
Cash and cash equivalents   400,728       629,714  
Restricted cash   519,998       379,498  
Accounts receivable, net   101,284       101,373  
Municipal Utility District receivables, net   461,985       550,884  
Deferred expenses, net   152,626       138,182  
Operating lease right-of-use assets   5,948       5,463  
Other assets, net   242,189       244,027  
Assets of discontinued operations         615,272  
Total assets $ 9,438,588     $ 9,577,003  
       
LIABILITIES      
Mortgages, notes, and loans payable, net $ 5,298,760     $ 5,146,992  
Operating lease obligations   5,764       5,362  
Deferred tax liabilities, net   76,898       84,293  
Accounts payable and other liabilities   1,376,853       1,054,267  
Liabilities of discontinued operations         227,165  
Total liabilities   6,758,275       6,518,079  
       
EQUITY      
Preferred stock: $0.01 par value; 50,000,000 shares authorized, none issued          
Common stock: $0.01 par value; 150,000,000 shares authorized, 56,605,697 issued, and 50,132,370 outstanding as of September 30, 2024, 56,495,791 shares issued, and 50,038,014 outstanding as of December 31, 2023   566       565  
Additional paid-in capital   3,572,487       3,988,496  
Retained earnings (accumulated deficit)   (342,311 )     (383,696 )
Accumulated other comprehensive income (loss)   (1,375 )     1,272  
Treasury stock, at cost, 6,473,327 shares as of September 30, 2024, and 6,457,777 shares as of December 31, 2023   (614,981 )     (613,766 )
Total stockholders’ equity   2,614,386       2,992,871  
Noncontrolling interests   65,927       66,053  
Total equity   2,680,313       3,058,924  
Total liabilities and equity $ 9,438,588     $ 9,577,003  


Segment Earnings Before Tax (EBT)

As a result of our three segments—Operating Assets, Master Planned Communities (MPC), and Strategic Developments—being managed separately, we use different operating measures to assess operating results and allocate resources among these three segments. The one common operating measure used to assess operating results for our business segments is EBT. EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments. We present EBT because we use this measure, among others, internally to assess the core operating performance of our assets.

  Three Months Ended September 30,   Nine Months Ended September 30,
thousands   2024       2023     $ Change     2024       2023     $ Change
Operating Assets Segment EBT                      
Total revenues $ 114,019     $ 106,178     $ 7,841     $ 331,779     $ 310,942     $ 20,837  
Total operating expenses   (48,987 )     (47,960 )     (1,027 )     (142,751 )     (134,486 )     (8,265 )
Segment operating income (loss)   65,032       58,218       6,814       189,028       176,456       12,572  
Depreciation and amortization   (42,252 )     (40,647 )     (1,605 )     (125,903 )     (116,454 )     (9,449 )
Interest income (expense), net   (36,661 )     (31,337 )     (5,324 )     (103,768 )     (89,419 )     (14,349 )
Other income (loss), net   (54 )     (186 )     132       896       2,078       (1,182 )
Equity in earnings (losses) from unconsolidated ventures   (2,109 )     1,363       (3,472 )     4,044       5,311       (1,267 )
Gain (loss) on sale or disposal of real estate and other assets, net   3,165       16,050       (12,885 )     7,959       20,764       (12,805 )
Gain (loss) on extinguishment of debt                     (198 )           (198 )
Operating Assets segment EBT $ (12,879 )   $ 3,461     $ (16,340 )   $ (27,942 )   $ (1,264 )   $ (26,678 )
                       
Master Planned Communities Segment EBT                      
Total revenues $ 212,607     $ 95,799     $ 116,808     $ 433,663     $ 236,123     $ 197,540  
Total operating expenses   (84,532 )     (41,239 )     (43,293 )     (180,464 )     (103,668 )     (76,796 )
Segment operating income (loss)   128,075       54,560       73,515       253,199       132,455       120,744  
Depreciation and amortization   (109 )     (103 )     (6 )     (327 )     (316 )     (11 )
Interest income (expense), net   16,425       16,031       394       47,839       49,004       (1,165 )
Other income (loss), net                           (103 )     103  
Equity in earnings (losses) from unconsolidated ventures   361       14,310       (13,949 )     (8,467 )     21,056       (29,523 )
MPC segment EBT $ 144,752     $ 84,798     $ 59,954     $ 292,244     $ 202,096     $ 90,148  
                       
Strategic Developments Segment EBT                      
Total revenues $ 505     $ 26,481     $ (25,976 )   $ 1,607     $ 48,679     $ (47,072 )
Total operating expenses   (16,411 )     (29,620 )     13,209       (29,271 )     (76,020 )     46,749  
Segment operating income (loss)   (15,906 )     (3,139 )     (12,767 )     (27,664 )     (27,341 )     (323 )
Depreciation and amortization   (960 )     (962 )     2       (6,257 )     (2,848 )     (3,409 )
Interest income (expense), net   4,353       4,412       (59 )     12,971       11,917       1,054  
Other income (loss), net   90,089       81       90,008       90,075       158       89,917  
Equity in earnings (losses) from unconsolidated ventures   118       59       59       193       94       99  
Gain (loss) on sale or disposal of real estate and other assets, net         236       (236 )           236       (236 )
Strategic Developments segment EBT $ 77,694     $ 687     $ 77,007     $ 69,318     $ (17,784 )   $ 87,102  


Appendix – Reconciliation of Non-GAAP Measures

Below are GAAP to non-GAAP reconciliations of certain financial measures, as required under Regulation G promulgated by the Securities and Exchange Commission. Non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

Net Operating Income (NOI)

We define NOI as operating revenues (rental income, tenant recoveries, and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing, and other property expenses). NOI excludes straight-line rents and amortization of tenant incentives, net; interest expense, net; ground rent amortization; demolition costs; other income (loss); depreciation and amortization; development-related marketing costs; gain on sale or disposal of real estate and other assets, net; loss on extinguishment of debt; provision for impairment; and equity in earnings from unconsolidated ventures. This amount is presented as Operating Assets NOI throughout this document. Total Operating Assets NOI represents NOI as defined above with the addition of our share of NOI from unconsolidated ventures.

We believe that NOI is a useful supplemental measure of the performance of our Operating Assets segment because it provides a performance measure that reflects the revenues and expenses directly associated with owning and operating real estate properties. We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that property-specific factors such as rental and occupancy rates, tenant mix, and operating costs have on our operating results, gross margins, and investment returns.

A reconciliation of segment EBT to NOI for Operating Assets is presented in the tables below:

  Three Months Ended September 30,   Nine Months Ended September 30,
thousands   2024       2023     Change     2024       2023     $ Change
Operating Assets Segment                      
Total revenues $ 114,019     $ 106,178     $ 7,841     $ 331,779     $ 310,942     $ 20,837  
Total operating expenses   (48,987 )     (47,960 )     (1,027 )     (142,751 )     (134,486 )     (8,265 )
Segment operating income (loss)   65,032       58,218       6,814       189,028       176,456       12,572  
Depreciation and amortization   (42,252 )     (40,647 )     (1,605 )     (125,903 )     (116,454 )     (9,449 )
Interest income (expense), net   (36,661 )     (31,337 )     (5,324 )     (103,768 )     (89,419 )     (14,349 )
Other income (loss), net   (54 )     (186 )     132       896       2,078       (1,182 )
Equity in earnings (losses) from unconsolidated ventures   (2,109 )     1,363       (3,472 )     4,044       5,311       (1,267 )
Gain (loss) on sale or disposal of real estate and other assets, net   3,165       16,050       (12,885 )     7,959       20,764       (12,805 )
Gain (loss) on extinguishment of debt                     (198 )           (198 )
Operating Assets segment EBT   (12,879 )     3,461       (16,340 )     (27,942 )     (1,264 )     (26,678 )
Add back:                      
Depreciation and amortization   42,252       40,647       1,605       125,903       116,454       9,449  
Interest (income) expense, net   36,661       31,337       5,324       103,768       89,419       14,349  
Equity in (earnings) losses from unconsolidated ventures   2,109       (1,363 )     3,472       (4,044 )     (5,311 )     1,267  
(Gain) loss on sale or disposal of real estate and other assets, net   (3,165 )     (16,050 )     12,885       (7,959 )     (20,764 )     12,805  
(Gain) loss on extinguishment of debt                     198             198  
Impact of straight-line rent   (2,182 )     (470 )     (1,712 )     (3,005 )     (2,664 )     (341 )
Other   52       279       (227 )     (375 )     341       (716 )
Operating Assets NOI   62,848       57,841       5,007       186,544       176,211       10,333  
                       
Company’s share of NOI from equity investments   1,954       2,121       (167 )     6,022       5,908       114  
Distributions from Summerlin Hospital investment                     3,242       3,033       209  
Company’s share of NOI from unconsolidated ventures   1,954       2,121       (167 )     9,264       8,941       323  
Total Operating Assets NOI $ 64,802     $ 59,962     $ 4,840     $ 195,808     $ 185,152     $ 10,656  


Same Store NOI – Operating Assets Segment

The Company defines Same Store Properties as consolidated and unconsolidated properties that are acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented. Same Store Properties exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as in-service for that property to be included in Same Store Properties.

We calculate Same Store Net Operating Income (Same Store NOI) as Operating Assets NOI applicable to Same Store Properties. Same Store NOI also includes the Company’s share of NOI from unconsolidated ventures and the annual distribution from a cost basis investment. Same Store NOI is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that Same Store NOI is helpful to investors as a supplemental comparative performance measure of the income generated from the same group of properties from one period to the next. Other companies may not define Same Store NOI in the same manner as we do; therefore, our computation of Same Store NOI may not be comparable to that of other companies. Additionally, we do not control investments in unconsolidated properties and while we consider disclosures of our share of NOI to be useful, they may not accurately depict the legal and economic implications of our investment arrangements.

  Three Months Ended September 30,   Nine Months Ended September 30,
thousands   2024     2023     $ Change     2024     2023   $ Change
Same Store Office                      
Houston, TX $ 21,283   $ 20,449     $ 834     $ 63,453   $ 63,426   $ 27  
Columbia, MD   5,376     5,572       (196 )     17,734     17,881     (147 )
Las Vegas, NV   4,913     3,272       1,641       14,241     9,368     4,873  
Total Same Store Office   31,572     29,293       2,279       95,428     90,675     4,753  
                       
Same Store Retail                      
Houston, TX   2,841     2,989       (148 )     9,208     9,057     151  
Columbia, MD   1,008     660       348       3,165     1,997     1,168  
Las Vegas, NV   6,008     5,856       152       17,351     18,113     (762 )
Honolulu, HI   3,434     3,407       27       12,708     11,123     1,585  
Total Same Store Retail   13,291     12,912       379       42,432     40,290     2,142  
                       
Same Store Multi-family                      
Houston, TX   10,335     9,420       915       29,307     28,231     1,076  
Columbia, MD   3,590     2,854       736       9,422     5,997     3,425  
Las Vegas, NV   1,691     1,863       (172 )     5,078     5,604     (526 )
Company’s share of NOI from unconsolidated ventures   1,804     1,906       (102 )     5,644     5,520     124  
Total Same Store Multi-family   17,420     16,043       1,377       49,451     45,352     4,099  
                       
Same Store Other                      
Houston, TX   1,289     1,555       (266 )     3,306     4,728     (1,422 )
Columbia, MD   17     (3 )     20       444     8     436  
Las Vegas, NV   369     144       225       811     444     367  
Honolulu, HI   27     45       (18 )     121     183     (62 )
Company’s share of NOI from unconsolidated ventures   150     215       (65 )     3,620     3,421     199  
Total Same Store Other   1,852     1,956       (104 )     8,302     8,784     (482 )
Total Same Store NOI   64,135     60,204       3,931       195,613     185,101     10,512  
                       
Non-Same Store NOI   667     (242 )     909       195     51     144  
Total Operating Assets NOI $ 64,802   $ 59,962     $ 4,840     $ 195,808   $ 185,152   $ 10,656  


Cash G&A

The Company defines Cash G&A as General and administrative expense less non-cash stock compensation expense. Cash G&A is a non-GAAP financial measure that we believe is useful to our investors and other users of our financial statements as an indicator of overhead efficiency without regard to non-cash expenses associated with stock compensation. However, it should not be used as an alternative to general and administrative expenses in accordance with GAAP.

  Three Months Ended September 30,   Nine Months Ended September 30,
thousands   2024       2023     $ Change     2024       2023     $ Change
General and Administrative                      
General and administrative (G&A) $ 24,862     $ 21,601     $ 3,261     $ 68,930     $ 65,371     $ 3,559  
Less: Non-cash stock compensation   (2,911 )     (1,699 )     (1,212 )     (6,875 )     (6,748 )     (127 )
Cash G&A $ 21,951     $ 19,902     $ 2,049     $ 62,055     $ 58,623     $ 3,432  


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