DALLAS-- TheHoward Hughes Corporation ® (NYSE:HHC) (the “Company”) announced operating results for the fourth quarter ended December 31, 2016. The attached financial statements, exhibits and reconciliations of non-GAAP measures provide the details of these results.

Fourth Quarter Highlights:

  • Net income attributable to common stockholders was $43.6 million or $1.02 per diluted share.
  • Adjusted net income was $72.1 million or $1.69 per share, an increase of $19.7 million or $0.46 per share compared to the fourth quarter of 2015.
  • Increased Operating Asset NOI to $38.0 million, an increase of $10.2 million compared to the fourth quarter of 2015.
  • Increased MPC residential land sales to $49.0 million, an increase of $9.6 million compared to the fourth quarter of 2015.
  • At Ward Village in Honolulu, delivered our first condominium tower, Waiea, with approximately 92% of the 174 units contracted for sale.
  • Received approval for a $90.0 million tax increment financing for Downtown Columbia’s master plan.
  • Acquired One Mall North, a 100% leased, 97,500 square foot office building for $22.2 million and American City Building for $13.5 million, both in Columbia, Maryland.
  • Sold Park West for net cash proceeds of $32.5 million, unlocking a $17.6 million tax benefit and allowing us to recycle our capital and invest in higher return opportunities within our core assets.
  • Ended the year with net debt to total market capitalization of 36.8%, and a cash balance of $665.5 million.

“In the fourth quarter, The Howard Hughes Corporation showed significant progress across our three business segments as we saw significant growth with increased Operating Asset NOI, increased MPC residential land sales and meaningful progress in our strategic developments with the delivery of our first residential building in Ward Village, Waiea,” said David R. Weinreb, Chief Executive Officer. “We are creating value across our portfolio every day, as we continue to transform our strategic developments into revenue generating assets, converting our assets into a predominantly revenue-generating portfolio. Additionally, I am pleased with our capital recycling activity, both during and subsequent to the quarter, with the sale of non-core assets and acquisitions that complement our holdings in Downtown Columbia. Further, we are pleased with our conservative financial position with a cash balance of over $665 million, which is well in excess of our unfunded development commitments.”

                         

Fourth Quarter Financial Results

                         
(In thousands, except per share amounts)   Three Months Ended December 31,   Year ended December 31,
  2016   2015   2016   2015
Net income (loss) attributable to common stockholders   $ 43,595   $ 25,881   $ 202,303   $ 126,719
                         
Basic income per share   $ 1.10   $ 0.65   $ 5.12   $ 3.21
                         
Diluted income per share   $ 1.02   $ 0.59   $ 4.73   $ 1.60
                         
Adjusted net income   $ 72,109   $ 52,431   $ 332,340   $ 138,323
                         
Adjusted income per share   $ 1.69   $ 1.23   $ 7.78   $ 3.24
                         

As we complete and place our developments into service, non-cash depreciation and amortization expense associated with these cash-generative commercial real estate properties has become a material component of our net income. Adjusted net income is a non-GAAP measure that excludes depreciation and amortization expense, provision for impairment, non-cash warrant liability gains and losses, gain on acquisition of our joint venture partner’s interest and gains or losses on sales of operating properties. For additional information, please see the reconciliation of Adjusted net income to Net Income (loss) attributable to common stockholders in the Supplemental Information in this earnings release.

                               
Business Segment Operating Results
                               

Operating Assets Segment Highlights

                               
    Three Months Ended December 31,   Year ended December 31,
(In thousands)   2016   2015   2016   2015
Retail, Office, Multi-family and Hospitality NOI (a)   $ 37,311   $ 29,746     $ 134,832     $ 116,160  
                               
Operating Assets EBT     5,761     (2,570 )   $ (19,132 )   $ (9,902 )
                               
Adjusted Operating Assets EBT   $ 30,229   $ 24,550     $ 111,148     $ 91,595  
                               

(a) Includes our share of NOI from our non-consolidated equity method ventures (our “income-producing Operating Assets”). These amounts exclude NOI from properties that are substantially closed for redevelopment and properties sold during the periods.

                               

Net operating income (“NOI”) from our income-producing Operating Assets is presented in our Supplemental Information to this earnings release. For a reconciliation of Operating Assets NOI to Operating Assets earnings before taxes (“EBT”), Operating Assets EBT to GAAP-basis net income (loss) and Adjusted net income to Net income, please refer to the Supplemental Information contained in this earnings release.

We calculate Adjusted Operating Assets EBT, which excludes depreciation and amortization and development-related demolition, marketing costs and provision for impairment, as they do not represent operating costs for stabilized real estate properties.

Operating assets EBT increased $8.4 million to $5.8 million, compared to ($2.6) million for the fourth quarter 2015.

The increase in NOI from income-producing Operating Assets in the fourth quarter 2016 compared to the fourth quarter 2015 is primarily driven by the continued stabilization of our recently developed and placed in service office properties and our two recently opened hotels in The Woodlands. The increase in NOI from income-producing Operating Assets in the year ended December 31, 2016, compared to the same period in the prior year is primarily due to Downtown Summerlin and the openings of the ONE Summerlin office building and two multi-family properties in The Woodlands in 2015.

Master Planned Communities Segment Highlights

Generally, MPC revenues fluctuate during the year; therefore, a better measurement of performance is the full year impact instead of quarterly results.

A Summary of our MPC segment is shown below. For additional detail, please refer to the Supplemental Information section of this release.

                                 

Summary of MPC Residential Land Sales Closed for the Three Months Ended December 31,

                                 
    Land Sales   Acres Sold   Price per acre
($ In thousands)   2016   2015   2016   2015   2016   2015
Bridgeland                                
Residential   $ 6,917   $ 2,510   18.8   7.2   $ 368   $ 349
Summerlin                                
Residential     24,551     29,175   35.6   61.0     690     478
The Woodlands                                
Residential     17,529     7,693   30.8   11.7     569     658
Total residential land sales closed in period   $ 48,997   $ 39,378   85.2   79.9            
                                 
                                 

Summary of MPC Residential Land Sales Closed for the Year Ended December 31,

                                 
    Land Sales   Acres Sold   Price per acre
($ In thousands)   2016   2015   2016   2015   2016   2015
Bridgeland                                
Residential   $ 20,474   $ 10,856   55.0   28.4   $ 372   $ 382
Summerlin                                
Residential     110,708     114,509   239.1   198.4     463     577
The Woodlands                                
Residential     31,960     32,441   57.1   48.7     560     666
Total residential land sales closed in period   $ 163,142   $ 157,806   351.2   275.5            
                                 

Residential land sales closed in our MPC segment for the three months ended December 31, 2016, increased $9.6 million or 24.4% to $49.0 million, compared to $39.4 million for the same period in 2015 primarily due to increased sales velocity at The Woodlands and Bridgeland MPCs, offset by fewer sales at our Summerlin MPC. Residential land sales closed in our MPC segment for the year ended December 31, 2016, increased $5.3 million or 3.4% to $163.1 million compared to $157.8 million for the same period in 2015. Land sales revenue of $215.3 million recognized for the year ended December 31, 2016, included $33.4 million in revenue from closings in prior periods which was previously deferred and that met criteria for recognition in the current year.

Land development in the fourth quarter 2016 at The Summit, our joint venture with Discovery Land in our Summerlin MPC, continued on schedule based upon the initial plan. For the three months ended December 31, 2016, 22 custom residential lots had closed resulting in the recognition of $20.9 million Equity in earnings in Real Estate and Other Affiliates. As of December 31, 2016, contracted sales since inception are $226.4 million of which $184.9 million had closed.

Strategic Developments Segment Highlights

We have condominiums for sale in Ward Village across five condominium projects, four of which are under construction: Waiea, Anaha, Ae`o, and Ke Kilohana. These four projects have a total unit count of 1,381, of which 1,109 were under contract as of December 31, 2016, leaving the total number of unsold units under construction at 272.

                                   
Ward Village Towers Under Construction as of December 31, 2016
                                   
($ in millions)   Total Units   Under Contract   Percent of Units Sold   Total Projected Costs   Costs Incurred to Date  

Estimated Completion Date

Waiea   174   160   92.0 %   $ 414.2     $ 352.9   Q1 2017 (a)
Anaha   317   298   94.0 %     401.3       209.5   Q3 2017  
Ae`o   466   265   56.9 %     428.5 (b)     66.6   Q4 2018  
Ke Kilohana   424   386   91.0 %     218.9       17.9   2019  
Total under construction   1,381   1,109   80.3 %   $ 1,462.9     $ 646.9      
                                   

(a) Waiea opened and customers began occupying units in November 2016. We closed on 143 units as of January 27, 2016.

(b) Includes project costs for our flagship Whole Foods Market located on the same block.
                                   

The increase in condominium rights and unit sales for the quarter and year ended December 31, 2016, as compared to the same periods in 2015 is primarily related to revenue recognition at our Anaha condominium project for which we began recognizing revenue in the second quarter 2015. As condominium projects advance towards completion, revenue is recognized on qualifying sales contracts under the percentage of completion method of accounting. All development cost estimates presented herein are exclusive of land costs.

For a more complete description of the status of our developments, please refer to “Item 7. - Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K for the year ended December 31, 2016.

Balance Sheet and Other Quarterly Activity

As of December 31, 2016, our debt equaled approximately 42.3% of our total assets and 36.8% of our total market capitalization. We finished the year with approximately $665.5 million of cash on hand. This balance is higher than in previous periods as a result of end of year cash inflows relating to proceeds from our sale of our non-core Park West asset; a distribution of cash from our joint venture in Summerlin, The Summit; and to proceeds from closings of condominium units at Waiea in our Ward Village urban master planned community.

We have focused almost exclusively on obtaining non-recourse* debt for both our construction financing and long-term fixed rate mortgage financing and have limited cross-collateralization across the portfolio. Our low-leverage, with a focus on project specific financing, insulates us against potential downturns and provides us with the ability to evaluate new opportunities. During the quarter, we completed a $142.7 million partial recourse construction loan for Ke Kilohana and a $230.0 million non-recourse construction loan for Ae`o, both initially maturing in December 2019. We also amended and restated our financing for The Woodlands Resort & Conference Center with a $70.0 million mortgage and modified our construction financing for Hughes Landing Retail to $35.0 million with an extended initial maturity date of December 2036 (previously December 2018).

Subsequent to quarter end in January 2017, we closed on a non-recourse financing totaling $25.0 million at 4.48% interest, replacing the $23.0 million construction loan on the Columbia Regional Building. We also amended and restated our $80.0 million non-recourse mortgage financing for the 10-60 Columbia Corporate Center office buildings with a $94.5 million loan at LIBOR plus 1.75% with an initial maturity May 2020 maturity date. This amendment also provided $14.5 million to purchase One Mall North, a 97,500 square foot office building in Columbia, Maryland.

*Non-recourse debt means that the debt is non-recourse to The Howard Hughes Corporation but is collateralized by a real estate asset and/or is recourse to the subsidiary entity owning such asset.

About The Howard Hughes Corporation®

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Our properties include master planned communities, operating properties, development opportunities and other unique assets spanning 14 states from New York to Hawai‘i. The Howard Hughes Corporation is traded on the New York Stock Exchange under HHC with major offices in New York, Columbia, MD, Dallas, Houston, Las Vegas and Honolulu. For additional information about HHC, visit www.howardhughes.com or find us on FacebookTwitterInstagram, and LinkedIn.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize”, “plan,” “intend,” “assume,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 Quarterly and Annual Reports. 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.

                                 
THE HOWARD HUGHES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
                                 
(In thousands, except per share amounts)   Three Months Ended December 31,   Year Ended December 31,
  2016   2015   2016   2015
Revenues:                                
Condominium rights and unit sales   $ 123,021     $ 104,922     $ 485,634     $ 305,284  
Master Planned Community land sales     68,150       48,462       215,318       187,399  
Minimum rents     45,013       40,808       173,268       150,805  
Builder price participation     5,755       6,561       21,386       26,846  
Tenant recoveries     11,222       8,468       44,330       39,542  
Hospitality revenues     16,126       10,118       62,252       45,374  
Other land revenues     4,009       3,748       16,232       14,803  
Other rental and property revenues     5,250       6,306       16,585       27,035  
Total revenues     278,546       229,393       1,035,005       797,088  
                                 
Expenses:                                
Condominium rights and unit cost of sales     81,566       64,859       319,325       191,606  
Master Planned Community cost of sales     29,599       20,259       95,727       88,065  
Master Planned Community operations     11,919       12,612       42,371       44,907  
Other property operating costs     18,465       18,292       65,978       72,751  
Rental property real estate taxes     5,737       4,462       26,847       24,138  
Rental property maintenance costs     3,175       1,974       12,392       10,712  
Hospitality operating costs     11,980       8,101       49,359       34,839  
Provision for doubtful accounts     1,035       948       5,664       4,030  
Demolition costs     994       660       2,212       3,297  
Development-related marketing costs     6,598       5,990       22,184       25,466  
General and administrative     25,083       24,250       86,588       81,345  
Depreciation and amortization     24,618       27,420       95,864       98,997  
Total expenses     220,769       189,827       824,511       680,153  
                                 
Operating income before other items     57,777       39,566       210,494       116,935  
                                 
Other:                                
Provision for impairment                 (35,734 )      
Gain on sale of 80 South Street Assemblage                 140,549        
Other income, net     1,595       625       11,453       1,829  
Total other     1,595       625       116,268       1,829  
                                 
Operating income     59,372       40,191       326,762       118,764  
                                 
Interest income     459       70       1,359       586  
Interest expense     (17,096 )     (16,601 )     (65,724 )     (59,744 )
Warrant liability (loss) gain     (2,780 )     870       (24,410 )     58,320  
Gain on acquisition of joint venture partner's interest                 27,088        
(Loss) gain on disposal of operating assets     (1,117 )           (1,117 )     29,073  
Equity in earnings from Real Estate and Other Affiliates     21,118       557       56,818       3,721  
Income before taxes     59,956       25,087       320,776       150,720  
(Provision) benefit for income taxes     (16,361 )     794       (118,450 )     (24,001 )
Net income     43,595       25,881       202,326       126,719  
Net income attributable to noncontrolling interests                 (23 )      
Net income attributable to common stockholders   $ 43,595     $ 25,881     $ 202,303     $ 126,719  
                                 
Basic income per share:   $ 1.10     $ 0.65     $ 5.12     $ 3.21  
                                 
Diluted income per share:   $ 1.02     $ 0.59     $ 4.73     $ 1.60  
                                 
                 
THE HOWARD HUGHES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
                 
    December 31,
(In thousands, except share amounts)   2016   2015
Assets:                
Investment in real estate:                
Master Planned Community assets   $ 1,669,561     $ 1,642,842  
Land     320,936       322,462  
Buildings and equipment     2,027,363       1,772,401  
Less: accumulated depreciation     (245,814 )     (232,969 )
Developments     961,980       1,036,927  
Net property and equipment     4,734,026       4,541,663  
Investment in Real Estate and Other Affiliates     76,376       57,811  
Net investment in real estate     4,810,402       4,599,474  
Cash and cash equivalents     665,510       445,301  
Accounts receivable, net     9,883       9,962  
Municipal Utility District receivables, net     150,385       139,946  
Notes receivable, net     155       1,664  
Deferred expenses, net     64,531       61,804  
Prepaid expenses and other assets, net     666,516       463,431  
Total assets   $ 6,367,382     $ 5,721,582  
                 
Liabilities:                
Mortgages, notes and loans payable   $ 2,690,747     $ 2,443,962  
Deferred tax liabilities     200,945       89,221  
Warrant liabilities     332,170       307,760  
Uncertain tax position liability           1,396  
Accounts payable and accrued expenses     572,010       515,354  
Total liabilities     3,795,872       3,357,693  
                 
Equity:                
Preferred stock: $.01 par value; 50,000,000 shares authorized, none issued            

Common stock: $.01 par value; 150,000,000 shares authorized, 39,802,064 shares issued and 39,790,003 outstanding as of December 31, 2016, and 39,714,838 shares issued and outstanding as of December 31, 2015

    398       398  
Additional paid-in capital     2,853,269       2,847,823  
Accumulated deficit     (277,912 )     (480,215 )
Accumulated other comprehensive loss     (6,786 )     (7,889 )

Treasury stock, at cost, 12,061 and 0 shares as of December 31, 2016, and December 31, 2015, respectively

    (1,231 )      
Total stockholders' equity     2,567,738       2,360,117  
Noncontrolling interests     3,772       3,772  
Total equity     2,571,510       2,363,889  
Total liabilities and equity   $ 6,367,382     $ 5,721,582  
                 

Supplemental Information

December 31, 2016

Because our three segments, Master Planned Communities, Operating Assets and Strategic Developments, are 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 earnings before taxes (“EBT”). EBT, as it relates to each business segment, represents the revenues less expenses of each segment, including interest income, interest expense and equity in earnings of real estate and other affiliates. 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. However, EBT should not be considered as an alternative to GAAP net income.

                                 
Reconciliation of EBT to GAAP income (loss) before taxes   Three Months December 31,   Year Ended December 31,
(In thousands)   2016   2015   2016   2015
Total consolidated segment EBT   $ 103,997     $ 63,122     $ 458,518     $ 202,300  
Corporate and other items:                                
General and administrative     (25,083 )     (24,250 )     (86,588 )     (81,345 )
Corporate interest expense, net     (13,102 )     (13,286 )     (52,460 )     (52,995 )
Warrant liability (loss) gain     (2,780 )     870       (24,410 )     58,320  
Gain on acquisition of joint venture partner's interest     1       (29,073 )     27,088        
(Loss) gain on disposal of operating assets     (1,117 )     29,073       (1,117 )     29,073  
Corporate other income, net     51       105       6,241       1,409  
Corporate depreciation and amortization     (2,010 )     (1,474 )     (6,496 )     (6,042 )
Total Corporate and other items     (44,040 )     (51,580 )     (137,742 )     (51,580 )
Income before taxes   $ 59,957     $ 25,087     $ 320,776     $ 150,720  
                                 

We also adjust GAAP net income (loss) for non-cash warrant liability gains and losses, and depreciation and amortization. The presentation of Adjusted net income is consistent with other companies in the real estate business who also typically report an earnings measure that excludes depreciation and amortization and other non-operating related items.

                                 
    Three Months Ended December 31,   Year Ended December 31,
(In thousands)   2016   2015   2016   2015
Adjusted net income   $ 72,109     $ 52,431     $ 332,340     $ 138,323  
Depreciation and amortization     (24,618 )     (27,420 )     (95,864 )     (98,997 )
Provision for impairment                 (35,734 )      
Warrant liability (loss) gain     (2,780 )     870       (24,410 )     58,320  
Gain on acquisition of joint venture partner's interest     1             27,088        
(Loss) gain on disposal of operating assets     (1,117 )           (1,117 )     29,073  
Net income attributable to common stockholders   $ 43,595     $ 25,881     $ 202,303     $ 126,719  
                                 

When a development property is placed in service, depreciation is calculated for the property ratably over the estimated useful lives of each of its components; however, most of our recently developed properties do not reach stabilization until 12 to 36 months after being placed in service due to the timing of tenants taking occupancy and subsequent leasing of remaining unoccupied space during that period. As a result, operating income, earnings before taxes (EBT) and net income will not reflect the ongoing earnings potential of newly placed in service operating assets during this transition period to stabilization. Accordingly, we calculate Adjusted Operating Assets EBT, which excludes depreciation and amortization and development-related demolition and marketing costs and provision for impairment, as they do not represent operating costs for stabilized real estate properties.

The following table reconciles Adjusted Operating Assets EBT to Operating Assets EBT:

                                 
Reconciliation of Adjusted Operating Assets EBT toOperating Assets EBT (in thousands)   Three Months Ended December 31,   Year Ended December 31,
  2016   2015   2016   2015
Adjusted Operating Assets segment EBT   $ 30,229     $ 24,550     $ 111,148     $ 91,595  
Provision for impairment                 (35,734 )      
Depreciation and amortization     (21,767 )     (24,490 )     (86,313 )     (89,075 )
Demolition costs     (629 )     (264 )     (1,123 )     (2,675 )
Development-related marketing costs     (2,072 )     (2,366 )     (7,110 )     (9,747 )
Operating Assets segment EBT   $ 5,761     $ (2,570 )   $ (19,132 )   $ (9,902 )
                                 

The following table summarizes our net debt on a segment basis as of December 31, 2016. Net debt is defined as mortgages, notes and loans payable, including our ownership share of debt of our Real Estate and Other Affiliates, reduced by short-term liquidity sources to satisfy such obligations such as our ownership share of cash and cash equivalents and SID and MUD receivables. Although net debt is not a recognized GAAP financial measure, it is readily computable from existing GAAP information and we believe, as with our other non-GAAP measures, that such information is useful to our investors and other users of our financial statements.

                                                       
    Master               Non-    
(In thousands)   Planned   Operating   Strategic   Segment   Segment   Total
Segment Basis   Communities   Assets   Developments   Totals   Amounts   December 31, 2016
Mortgages, notes and loans payable   $ 255,438       $ 1,552,697   (b)   $ 189,858       $ 1,997,993     $ 748,235     $ 2,746,228  
Less: cash and cash equivalents     (108,896 ) (a)     (86,009 ) (c)     (15,274 ) (d)     (210,179 )     (518,891 )     (729,070 )
Special Improvement District receivables     (61,603 )                       (61,603 )           (61,603 )
Municipal Utility District receivables     (150,385 )                       (150,385 )           (150,385 )
Net Debt   $ (65,446 )     $ 1,466,688       $ 174,584       $ 1,575,826     $ 229,344     $ 1,805,170  
                                                       
(a) Includes MPC cash and cash equivalents, including $53.1 million of cash related to The Summit joint venture.
(b) Includes our $55.5 million share of debt of our Real Estate and Other Affiliates in Operating Assets segment (Woodlands Sarofim #1, The Metropolitan Downtown Columbia and Millennium Woodlands Phase II, LLC, Stewart Title of Montgomery County, TX, 33 Peck Slip, Constellation, and Las Vegas 51s).
(c) Includes our $6.5 million share of cash and cash equivalents of our Real Estate and Other Affiliates in Operating Assets segment (Woodlands Sarofim #1, The Metropolitan Downtown Columbia and Millennium Woodlands Phase II, LLC, Stewart Title of Montgomery County, TX, 33 Peck Slip, Constellation, and Las Vegas 51s).
(d) Includes our $3.9 million share of cash and cash equivalents of our Real Estate and Other Affiliates in Strategic Developments segment (KR Holdings, LLC, HHMK Development, LLC, and m.flats/TEN.M).
                                                       
                                                               
Summary of Residential MPC Land Sales Closed for the Three Months Ended December 31,
                                                               
    Land Sales   Acres Sold  

Number of Lots/Units

  Price per acre   Price per lot
($ In thousands)   2016   2015   2016   2015   2016   2015   2016   2015   2016   2015
Bridgeland                                                              
Single family - detached   $ 6,917     $ 2,510   18.8     7.2   95     36   $ 368     $ 349   $ 73     $ 70

$ Change

    4,407           11.6         59           19             3        

% Change

    175.6 %         161.1 %       163.9 %         5.4 %           4.3 %      
                                                               
Maryland Communities                                                              
No land sales                                                              
                                                               
Summerlin                                                              
Superpad sites     14,856       28,435   30.6     60.5   128     162     485       470     116       176
Custom lots     9,695       740   5.0     0.5   8     1     1,939       1,480     1,212       740
Total     24,551       29,175   35.6     61.0   136     163     690       478     181       179

$ Change

    (4,624 )         (25.4 )       (27 )         212             2        

% Change

    (15.8 %)         (41.6 %)       (16.6 %)         44.4 %           1.1 %      
                                                               
The Woodlands                                                              
Single family - detached     10,519       7,693   24.9     11.7   99     48     422       658     106       160
Single family - attached     7,010         5.9       67         1,188           105      
Total     17,529       7,693   30.8     11.7   166     48     569       658     106       160

$ Change

    9,836           19.1         118           (89 )           (54 )      

% Change

    127.9 %         163.2 %       245.8 %         (13.5 %)           (33.8 %)      
                                                               
Total land sales closed in period (a)   $ 48,997     $ 39,378   85.2     79.9   397     247                            
                                                               

(a) Excludes revenues closed and deferred for recognition in a previous period that met criteria for recognition in the current period.

                                   
Summary of Commercial MPC Land Sales Closed for the Three Months Ended December 31,
                                   
    Land Sales   Acres Sold   Price per acre
($ In thousands)   2016   2015   2016   2015   2016   2015
Bridgeland                                  
Not-for-profit   $     $ 189       2.2 $     86

$ Change

    (189 )         (2.2 )       (86 )    

% Change

    (100.0 %)         (100.0 %)       (100.0 %)    
                                   
Maryland Communities                                  
No land sales                                  
                                   
Summerlin                                  
Other           800       16.7       48

$ Change

    (800 )         (16.7 )       (48 )    

% Change

    (100.0 %)         (100.0 %)       (100.0 %)    
                                   
The Woodlands                                  
Medical           1,585       1.7       932
Other           926       1.5       617
Total           2,511       3.2  

 

 

785

$ Change

    (2,511 )         (3.2 )       (785 )    

% Change

    (100.0 %)         (100.0 %)       (100.0 %)    
                                   
Total land sales closed in period (a)   $

    $ 3,500  

    22.1          
                                   

(a) Excludes revenues closed and deferred for recognition in a previous period that met criteria for recognition in the current period.

                                   

Reconciliation of MPC Land Sales Closed to GAAP Land Sales Revenue

The following table reconciles Total residential and commercial land sales closed for the quarters ended December 31, 2016 and 2015, respectively, to Total land sales revenue – GAAP basis for the MPC segment for the quarters ended December 31, 2016 and 2015, respectively. Total net recognized (deferred) revenue represents revenues on sales closed in prior periods where revenue was previously deferred and met criteria for recognition in the current periods, offset by revenues deferred on sales closed in the current period.

               
    For the Three Months December 31,
(In thousands)   2016   2015
Total residential land sales closed in period   $ 48,997   $ 39,378  
Total commercial land sales closed in period         3,500  
Net recognized (deferred) revenue:              
Bridgeland     1,345     225  
Summerlin     15,655     (11,302 )
Total net recognized (deferred) revenue     17,000     (11,077 )
Special Improvement District bond revenue     2,153     16,661  
Total land sales revenue - GAAP basis   $ 68,150   $ 48,462  
               
                                                                 
Summary of Residential MPC Land Sales Closed for the Year Ended December 31,
                                                                 
    Land Sales   Acres Sold     Number of Lots/Units   Price per acre   Price per lot
($ In thousands)   2016   2015   2016   2015     2016   2015   2016   2015   2016   2015
Bridgeland                                                                
Single family - detached   $ 20,474     $ 10,856   55.0     28.4     296     130   $ 372     $ 382   $ 69     $ 84

$ Change

    9,618           26.6           166           (10 )           (15 )      

% Change

    88.6 %         93.7 %         127.7 %         (2.6 %)           (17.9 %)      
                                                                 
Maryland Communities                                                                
No land sales                                                                
                                                                 
Summerlin                                                                
Superpad sites     96,843       92,219   231.7     177.7     1,071     555     418       519     90       166
Single family - detached           13,650       14.9         75           916           182
Custom lots     13,865       8,640   7.4     5.8     15     14     1,874       1,490     924       617
Total     110,708       114,509   239.1     198.4     1,086     644     463       577     102       178

$ Change

    (3,801 )         40.7           442           (114 )           (76 )      

% Change

    (3.3 %)         20.5 %         68.6 %         (19.9 %)           (42.7 %)      
                                                                 
The Woodlands                                                                
Single family - detached     24,950       27,161   51.2     42.9     204     160     487       633     122       170
Single family - attached     7,010       5,280   5.9     5.8     67     65     1,188       910     105       81
Total     31,960       32,441   57.1     48.7     271     225     560       666     118       144

$ Change

    (481 )         8.4           46           (106 )           (26 )      

% Change

    (1.5 %)         17.2 %         20.4 %         (16.0