Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

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Howard Hughes Corp. (HHC) reported better than expected third quarter results from continued economic recovery in the Company’s master planned communities (“MPC”). HHC is experiencing an increase in demand for homes located in its MPCs creating an increase in demand for commercial property.</li></ul> <ul type="disc"><li>Improved underlying metrics from each of HHC’s MPCs should continue to demonstrate how HHC could grow funds from operation (“FFO”) in future quarters.</li></ul> <ul type="disc"><li>The official opening of ‘A’ali’I, the fifth tower in Honolulu’s Ward Village results in revenue recognition in the fourth quarter.</li></ul> <ul type="disc"><li>HHC’s stock prices continues to trade at a discount to what we believe is fair value for a growth story within real estate development. With much of the development already complete HHC should begin to report growing FFO, but this has yet to be reflected in the stock price.</li></ul>


Howard Hughes Corp. (HHC) reported better than expected third quarter results from continued economic recovery in the Company’s master planned communities (“MPC”). HHC is experiencing an increase in demand for homes located in its MPCs creating an increase in demand for commercial property. Improved underlying metrics from each of HHC’s MPCs should continue to demonstrate how HHC could grow funds from operation (“FFO”) in future quarters. The official opening of ‘A’ali’I, the fifth tower in Honolulu’s Ward Village results in revenue recognition in the fourth quarter. HHC’s stock prices continues to trade at a discount to what we believe is fair value for a growth story within real estate development. With much of the development already complete HHC should begin to report growing FFO, but this has yet to be reflected in the stock price.

<ul type="disc"><li>
Howard Hughes Corp. (HHC) is expanding its master planned community (“MPC”) portfolio with the purchase of Douglas Ranch in Arizona. HHC had been investing in its five MPCs by building out the commercial side of each of the properties. The addition of Douglas Ranch exhibits the longer-term strategy of the business where HHC could apply its experience to new developments.</li></ul> <ul type="disc"><li>HHC is acquiring 36,839 acres west of Phoenix for $600 million. Douglas Ranch has been entitled for up to 100,000 residential units and up to 55 million square feet of commercial use.</li></ul> <ul type="disc"><li>The acquisition of Douglas Ranch presents a potential to set HHC up for a second generation. The addition of 36,839 sellable acres comes as The Woodlands is near it’s end of residential acres, while The Woodlands Hills are projected to sellout by 2030.</li></ul>


Howard Hughes Corp. (HHC) is expanding its master planned community (“MPC”) portfolio with the purchase of Douglas Ranch in Arizona. HHC had been investing in its five MPCs by building out the commercial side of each of the properties. The addition of Douglas Ranch exhibits the longer-term strategy of the business where HHC could apply its experience to new developments. HHC is acquiring 36,839 acres west of Phoenix for $600 million. Douglas Ranch has been entitled for up to 100,000 residential units and up to 55 million square feet of commercial use. The acquisition of Douglas Ranch presents a potential to set HHC up for a second generation. The addition of 36,839 sellable acres comes as The Woodlands is near it’s end of residential acres, while The Woodlands Hills are projected to sellout by 2030.

<ul type="disc"><li>
Howard Hughes Corp. (HHC) has started deliveries of apartments of its ‘A’ali’i tower in master planned community (“MPC”), Ward Village, setting up for a large revenue and profit fourth quarter. The third quarter is expected to show revivals in the economy helping lift hospitality and retailer revenue.</li></ul> <ul type="disc"><li>Investors might be overly worried on slivers of the business than the entire pie. Over the course of the next few quarters, HHC’s businesses returning to pre-COVID-19 levels should result in higher funds from operation.</li></ul> <ul type="disc"><li>On October 6, 2021, HHC announced the opening of the ‘A’ali’I, the fifth tower in Honolulu’s Ward Village. The 750-unit building was 87.1 percent sold at the end of the second quarter. HHC recognizes the full sale of each unit upon delivery. Accordingly, HHC has the potential recognize approximately $450 million in revenue, at midpoint, for the square footage already sold.</li></ul>


Howard Hughes Corp. (HHC) has started deliveries of apartments of its ‘A’ali’i tower in master planned community (“MPC”), Ward Village, setting up for a large revenue and profit fourth quarter. The third quarter is expected to show revivals in the economy helping lift hospitality and retailer revenue. Investors might be overly worried on slivers of the business than the entire pie. Over the course of the next few quarters, HHC’s businesses returning to pre-COVID-19 levels should result in higher funds from operation. On October 6, 2021, HHC announced the opening of the ‘A’ali’I, the fifth tower in Honolulu’s Ward Village. The 750-unit building was 87.1 percent sold at the end of the second quarter. HHC recognizes the full sale of each unit upon delivery. Accordingly, HHC has the potential recognize approximately $450 million in revenue, at midpoint, for the square footage already sold.

<ul type="disc"><li>
Howard Hughes Corp. (HHC) second quarter 2021 results marked another step towards recovery from the impacts of the COVID-19. Land sales in master planned communities (“MPC”), coupled with recovery in operating asset net operating income (“NOI”), and continued demand growth for condos in Ward Village, contributed to positive funds from operations (“FFO”).</li></ul> <ul type="disc"><li>HHC reported second quarter revenue of $212.5 million driven by year over year higher revenue across all segments. The MPC segment benefited from the sale of 3 “superpad” sites in Summerlin, while operating assets benefited from higher rental recoveries in the retail portfolio and operating assets that have returned to operations.</li></ul> <ul type="disc"><li>Ward Village in Hawaii is beginning to gain momentum in becoming a consistent revenue and profit driver for HHC. Demand for condos has not abated as HHC has pre-sold and collected deposits on 86 percent of the 1,664 units under development.</li></ul> <ul type="disc"><li>The rebound in the economy and growth in HHC’s MPC should result in HHC generating greater FFO in coming quarters. We do not believe the shares are fully reflecting the increase in business activity in each of the MPCs and how HHC generates FFO.</li></ul>


Howard Hughes Corp. (HHC) second quarter 2021 results marked another step towards recovery from the impacts of the COVID-19. Land sales in master planned communities (“MPC”), coupled with recovery in operating asset net operating income (“NOI”), and continued demand growth for condos in Ward Village, contributed to positive funds from operations (“FFO”). HHC reported second quarter revenue of $212.5 million driven by year over year higher revenue across all segments. The MPC segment benefited from the sale of 3 “superpad” sites in Summerlin, while operating assets benefited from higher rental recoveries in the retail portfolio and operating assets that have returned to operations. Ward Village in Hawaii is beginning to gain momentum in becoming a consistent revenue and profit driver for HHC. Demand for condos has not abated as HHC has pre-sold and collected deposits on 86 percent of the 1,664 units under development. The rebound in the economy and growth in HHC’s MPC should result in HHC generating greater FFO in coming quarters. We do not believe the shares are fully reflecting the increase in business activity in each of the MPCs and how HHC generates FFO.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

In our November Strategy book we summarize the basis for our bullish outlook, discuss the deservedly hot topic of value vs. growth. and highlight actionable opportunities within our Manufacturing, Transportation, Materials, Technology, &amp; Consumer Discretionary Sectors.

In our November Strategy book we summarize the basis for our bullish outlook, discuss the deservedly hot topic of value vs. growth. and highlight actionable opportunities within our Manufacturing, Transportation, Materials, Technology, &amp; Consumer Discretionary Sectors.

United States

The Howard Hughes Corporation develops real estate. The Company manages master planned communities, shopping malls, and mixed-use developments throughout the United States.

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Howard Hughes / (HHC US)

HHC: Reaching Scale for FFO Growth

HHC is benefiting from the removal of COVID-19 restrictions and its MPCs reaching scale in generating funds from operation. HHC should continue to...

BWS Financial Inc

HHC: The 2030 Investment Story

HHC announced the purchase of Douglas Ranch, Arizona for $600 million. The yet to be developed master planned community ("MPC") provides HHC with a...

BWS Financial Inc

HHC: Build and Deliver

While the Street is focused on new home construction, we would highlight how HHC stands to benefit from economic revival in other parts of its...

BWS Financial Inc

HHC: Recovering and Building FFO

HHC is seeing a rebound in FFO as the economy began to reopen in its markets. The growth in population in HHC's MPCs should create a cash flow...

BWS Financial Inc

U.S. Equity Strategy: Remain Bullish

In our November Strategy book we summarize the basis for our bullish outlook, discuss the deservedly hot topic of value vs. growth. and highlight...

Vermilion Research

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