Todd Sullivan presented his in-depth investment thesis on Howard Hughes Corp. (NYSE: HHC) at Wide-Moat Investing Summit 2017.

HHC is a land development company. It has three main segments: master planned communities (MPCs), operating assets, and strategic developments. In each of the MPCs, the company controls all development rights and the speed of development. This effectively gives the company a monopoly over all development in MPCs that individually are the size of Manhattan. The company’s Woodlands, Bridgeland, and Summerlin MPCs are ranked as the best in the nation and the Ward Village MPC was named “The Best Place to Live in the US”. With current entitlements and works in progress, the company has no need for acquisitions to continue to fuel growth. A sums-of-the-parts valuation shows the company trades ~40% below NAV. Additionally, as NOI continues its impressive ramp (up nearly 400% since the end of 2010), the company at some point may spin off operating assets or consider a complete or partial REIT conversion.

About the instructor:

Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. Todd’s blog at features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and CBNC. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”, the idea, Audiovoxx, was the top performing name over the following year. Todd also invests in start-up projects and is an angel investor in @Estimize, @milehiorganics and is a backer of “Follow Friday the Film” and “Money for Nothing: Inside the Federal Reserve.”

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