Press Releases

DALLAS-- The Howard Hughes Corporation (NYSE: HHC) today announced its results for the second quarter 2011.

Net income attributable to common stockholders was $66.0 million, or $0.22 per diluted common share, for the three months ended June 30, 2011 compared with net loss of $(28.0) million, or $(0.74) per share, for the three months ended June 30, 2010. Net income attributable to common stockholders for the second quarter 2011 includes a $56.9 million non-cash gain relating to the decrease in estimated value of outstanding warrants during the second quarter of 2011. Excluding the non-cash warrant gain, net income attributable to common stockholders is $9.1 million, or $0.22 per diluted common share.

Master Planned Community (MPC) land sales, including our 52.5% economic proportionate share of The Woodlands land sales, were $31.1 million for the second quarter 2011, a $14.6 million increase over $16.5 million of land sales for the second quarter 2010. Summerlin MPC’s $11.4 million of residential lot sales in the second quarter 2011 were responsible for a majority of the increase over 2010. Summerlin had no land sale revenue in the second quarter 2010 due to weaker Las Vegas real estate market conditions in the prior year. Bridgeland second quarter 2011 land sale revenues increased to $5.0 million compared to $3.3 million for second quarter 2010.

On July 1, 2011, Howard Hughes acquired its partner’s 57.5% legal interest in The Woodlands for $117.5 million, consisting of $20.0 million cash paid at closing and a $97.5 million non-interest bearing note due December 1, 2011. The Woodlands generated $24.4 million of total land sales revenues for the three months ended June 30, 2011 compared with $22.4 million of land sales for the three months ended June 30, 2010.

Howard Hughes’ thirteen Operating Assets generated $10.4 million of net operating income (NOI) for the three months ended June 30, 2011, a $0.8 million decrease compared to the second quarter 2010. The decrease from the second quarter 2010 was principally due to the receipt in 2010 of approximately $0.4 million of past due percentage rent from a tenant at Riverwalk Marketplace, one-time special events revenues totaling approximately $0.3 million at South Street Seaport in the second quarter 2010 relating to World Cup Soccer events, approximately $0.3 million lower rental revenues at Ward Centers for second quarter 2011 relating to a tenant in liquidation, and higher energy costs. The decreases were partially offset by new leasing activity and lower property tax expenses at our Operating Assets for the second quarter 2011.

For a reconciliation of Operating Assets NOI to Operating Assets earnings before taxes (EBT), Operating Assets EBT to GAAP-basis loss from continuing operations, and segment-basis MPC land sales revenue to GAAP-basis land sales revenue, please refer to the Supplemental Information contained in this earnings release.

Since late 2010, the Howard Hughes Corporation, has been conducting a process to assess the opportunities for its assets that will require re-positioning or development to maximize their value. Many of the properties have unique attributes and are extremely complex due to their size, zoning and other approvals needed to maximize value. Based on results to date of the ongoing review, the Company is creating development plans for several of its assets and determining how to finance their completion. Each of these properties has a team comprised of seasoned development, leasing, architectural and construction professionals assigned to create development plans based upon our evaluation of the opportunities for each asset.

David R. Weinreb, CEO of The Howard Hughes Corporation, stated, "During the second quarter we filled out our senior management and development teams with seasoned professionals having records of accomplishments at their predecessor companies, all of whom are focused on unlocking opportunities within our asset base. Later this year we expect to be able to announce specific plans for certain of our properties for which we are actively formalizing development plans.”

Mr. Weinreb continued, “We are integrating our pre-existing master planned community business with The Woodlands, and are excited about the potential synergies from combining the operations of two of the leading MPC developers in the U.S. We believe that The Woodlands acquisition will provide attractive strategic and financial benefits to Howard Hughes.”

ABOUT THE HOWARD HUGHES CORPORATION

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the country. Created from a selected subset of 34 assets previously held by General Growth Properties, the company's properties include master planned communities, operating properties, development opportunities and other unique assets spanning 18 states from New York to Hawaii.

Master Planned Communities

The Howard Hughes Corporation owns, develops, and sells property in four master planned communities that include over 14,000 acres of marketable land. Howard Hughes’ MPC portfolio includes The Woodlands and Bridgeland in Houston, TX; Maryland Communities in Columbia, MD; and Summerlin in Las Vegas, NV.

The Woodlands is considered one of the most successful large-scale master planned communities in the U.S., comprising over 28,000 acres with over 92,000 residents and 1,700 employers. The Woodlands currently has approximately 960 acres of unsold land for residential development and approximately 935 acres of undeveloped land for commercial use. The Woodlands also has full or partial ownership interests in commercial properties totaling approximately 605,121 square feet of office space, 71,232 square feet of retail, 865 rental apartment units, and also owns and operates a 440 room conference center facility and a 36-hole country club.

Bridgeland, approximately 30 miles southwest of The Woodlands, encompasses more than 11,400 acres, with a plan including a carefully designed network of trails totaling over 60 miles that will provide pedestrian connectivity to distinct residential villages. The community will feature over 3,000 acres of unique waterways, lakes, trails, parks and open space, as well as an expansive town center with room for employment, retail, educational and entertainment facilities.

Maryland Communities of Columbia, Emerson and Fairwood combined account for more than 16,000 acres. Columbia is embarking on a new phase in its growth with the launch of a 30-year master plan development of downtown Columbia. Columbia Town Center has an approved master plan to create up to 13 million square feet of mixed-use development. The plan includes up to 5,500 residential units, approximately one million square feet of retail, five million square feet of commercial office space and 640 hotel rooms.

Summerlin spans the western rim of the Las Vegas Valley and is located about 7.5 miles from the Strip; the 22,500-acre community offers the best of suburban living with all the amenities and accessibility to world-class dining, shopping and entertainment. Home to nearly 100,000 residents Summerlin is comprised of hundreds of neighborhoods and dozens of villages—all connected by a 150-mile-long trail system and nearly 150 parks. The Shops at Summerlin Center is a retail project with the potential to be developed with retail, office, hotel and multi-family residential.

Operating Assets

The Howard Hughes Corporation’s operating assets are primarily retail properties including Ward Centers (Honolulu, Hawaii), South Street Seaport (Manhattan, N.Y.), Landmark Mall (Alexandria, Va.), Park West (Peoria, Ariz.), Rio West Mall (Gallup, N.M.), Riverwalk Marketplace (New Orleans, La.) and Cottonwood Square (Salt Lake City, Utah).

Strategic Development Opportunities

The Howard Hughes Corporation owns an unparalleled pipeline of near, mid and long-term real estate with over 21,000,000 square feet of future development. These range from Summerlin Centre in Las Vegas, NV; Bridges at Mint Hill in Charlotte, NC; and Ala Moana Tower in Honolulu.

For more information on the company, please visit our website at: www.howardhughes.com or contact Kay Weinmann via e-mail at kay.weinmann@howardhughes.com or by telephone at (214) 741-7744.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect” or similar words, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release related to future operating performance, the creation of long-term value for our stockholders and progress on some of the Company’s larger developments are forward-looking statements. These statements are based on management’s expectations, estimates, assumptions and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2010. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

Supplemental Information

June 30, 2011

As our three segments, Master Planned Communities, Operating Assets and Strategic Developments, are managed separately, different operating measures are utilized to assess operating results and allocate resources. The one common operating measure used to assess operating results for our business segments is real estate property earnings before taxes (“EBT”) which represents the operating revenues of the properties less property operating expenses. EBT is defined as net income (loss) from continuing operations as adjusted for: (1) reorganization items; (2) income tax provision (benefit); (3) warrant liability expense; and (4) general and administrative costs. The net income from our Real Estate Affiliates, at our proportionate share, is similarly adjusted for items (1) through (4) immediately above. Management believes that EBT provides useful information about the operating performance of all our assets, projects and property. However, EBT should not be considered as an alternative to GAAP net income (loss) attributable to common stockholders or GAAP net income (loss) from continuing operations.

Operating Assets Net Operating Income (“NOI”)

The Company believes that NOI is a useful supplemental measure of the performance of its Operating Assets. We define NOI as property specific revenues (rental income, tenant recoveries and other income) less expenses (real estate taxes, repairs and maintenance, marketing and other property expenses) and excluding the operations of properties held for disposition. NOI also excludes straight line rents, market lease amortization, impairments, depreciation and other amortization expense. Other real estate companies may use different methodologies for calculating NOI, and accordingly, the NOI of our Operating Assets may not be comparable to other real estate companies.

The Company also believes that NOI provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating real estate properties and the impact on operations from trends in occupancy rates, rental rates, and operating costs. This measure thereby provides an operating perspective not immediately apparent from GAAP continuing operations or net income attributable to common stockholders. The Company uses NOI to evaluate its operating performance on a property-by-property basis because NOI allows the Company to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on the Company’s operating results, gross margins and investment returns. NOI should only by used as an alternative measure of the financial performance of such assets and not as an alternative to GAAP operating income (loss) or net income (loss) available to common stockholders.

(*) Includes $3.9 million dividend from Summerlin Hospital Medical Center.

Source: The Howard Hughes Corporation

The Howard Hughes Corporation

Kay Weinmann, 214-741-7744

kay.weinmann@howardhughes.com

www.howardhughes.com