THE WOODLANDS, Texas - Howard Hughes (NYSE:HHH) Holdings Inc. (NYSE: HHH), a real estate development company, announced today that its Board of Directors has approved a distribution of all outstanding shares of Seaport Entertainment Group Inc. to its shareholders. The distribution is scheduled to occur after the market closes on July 31, 2024, with HHH shareholders receiving one Seaport Entertainment share for every nine HHH shares owned as of July 29, 2024.
Shareholders will not receive any fractional Seaport Entertainment shares. Instead, these will be sold on the open market, and the proceeds will be distributed in cash to the shareholders entitled to them. Shareholders do not need to take any action to receive their Seaport Entertainment shares, which will be delivered either via a book-entry account statement or by credit to their brokerage accounts.
Seaport Entertainment's common stock is expected to begin "when-issued" trading on the New York Stock Exchange under the ticker "SEG WI" on July 29, 2024, with regular trading under the ticker "SEG" commencing on August 1, 2024. Meanwhile, HHH's stock will continue trading on the NYSE with its current ticker.
The distribution is subject to customary conditions, including the effectiveness of Seaport Entertainment's Registration Statement with the SEC. Shareholders are advised to consult their financial advisors regarding the sale of HHH stock on or before the distribution date, particularly in light of the tax implications.
This distribution is part of a strategic move by Howard Hughes Holdings, which has a diverse portfolio of real estate across the United States, including master planned communities and mixed-use properties. The company expects the move to benefit shareholders and contribute to the growth of Seaport Entertainment as an independent entity.
The information for this article is based on a press release statement from Howard Hughes Holdings Inc.
In other recent news, Howard Hughes Holdings has seen significant developments in its organizational structure and real estate portfolio. The company recently appointed Bhupesh Arora as its new Chief Technology Officer, a move expected to enhance its technology strategy and operations. Additionally, Howard Hughes made strategic acquisitions, including the purchase of Waterway Plaza II, a Class A office building, for $19.2 million. The company's CEO, David O'Reilly (NASDAQ:ORLY), anticipates the property will soon achieve a stabilized net operating income of $3 million.
Further, Howard Hughes expanded its Board of Directors with the appointment of Dana Hamilton, a seasoned real estate executive. This aligns with the company's broader strategy to enhance its real estate platform and meet market demands. In terms of financial analysis, Jefferies revised its price target for Howard Hughes to $80, maintaining a 'buy' rating. Similarly, Piper Sandler maintained a positive outlook on the company, reiterating an Overweight rating with a price target of $95.00, citing the planned Seaport Entertainment spin-off as a positive catalyst.
Lastly, the New York State Court of Appeals approved Howard Hughes' 250 Water Street development in Lower Manhattan's Seaport district, removing the remaining barriers to the project's progression. These are among the recent developments that continue to shape the trajectory of Howard Hughes Holdings.
InvestingPro Insights
As Howard Hughes Holdings Inc. (NYSE: HHH) prepares to distribute shares of Seaport Entertainment Group Inc. to its shareholders, investors are closely examining the financial health and market performance of HHH. According to recent data from InvestingPro, HHH has a market capitalization of approximately 3.58 billion USD, reflecting its size and significance in the real estate development market.
InvestingPro Data shows that HHH has experienced a notable 17.31% return over the last three months as of 2024, signaling a strong short-term performance that may interest investors looking for positive momentum. This is particularly relevant for shareholders considering the upcoming distribution of Seaport Entertainment shares.
However, the company's valuation metrics present a mixed picture. HHH's P/E ratio stands at -6.04, and the adjusted P/E ratio for the last twelve months as of Q1 2024 is significantly lower at -37.84, which may raise concerns about the company's earnings relative to its share price. Additionally, the company's revenue has seen a decline of 37.35% over the last twelve months as of Q1 2024, which could be a point of caution for investors.
Among the InvestingPro Tips, it's worth noting that HHH operates with a significant debt burden and may have trouble making interest payments on its debt. This could be a critical factor for shareholders to consider when evaluating the company's long-term financial stability. Furthermore, the company has not been profitable over the last twelve months, which is an important consideration for evaluating its overall financial health.
For investors seeking a deeper analysis of Howard Hughes Holdings Inc., there are additional InvestingPro Tips available that could provide further insights into the company's financials and market position. With the use of coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips and make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.