Howard Hughes Corp. disclosed 2017 fourth-quarter funds from operations of $168.0 million, or $3.90 per share, an increase of 147.2% in the aggregate from $68.0 million, or $1.59 per share, in the 2016 fourth quarter.
The company attributes the rise in fourth-quarter FFO to a one-time gain on sale of properties realized in 2016, and says it is "not indicative of the underlying business results within our operating segments."
Core FFO for the quarter decreased 23.5% from the year-ago period to $75.4 million, or $1.75 per share, from $98.6 million, or $2.31 per share. Total revenues for the quarter came in at $301.0 million, up 8.1% year over year from $278.5 million.
For the full year, the diversified real estate company reported a 6.4% year-over-year rise in FFO. In the aggregate, results totaled $260.3 million, or $6.04 per share, compared with $244.6 million, or $5.72 per share. Core FFO for the full year totaled $298.0 million, or $6.92 per share, a 10.7% decrease from $333.7 million, or $7.81 per share, in 2016. Total revenues for the full year came in at $1.10 billion for the year, a gain of 5.92% from $1.04 billion the prior year.
In January, the company amended an existing $65.5 million loan related to its Three Hughes Landing property in Texas, to extend the maturity date to Dec. 5, with two one-year extension options, and to provide for an interest rate of one-month London Interbank Offered Rate plus 2.60%.
During the 2017 fourth quarter, Howard Hughes sold four noncore properties for $52.1 million in proceeds. It also picked up its joint venture partner's 50% stake in the Constellation multifamily project in Summerlin, Nev., for $8.0 million in cash and 50% of the joint venture's liabilities for a total of $16.0 million. The company realized a gain on acquisition of $17.8 million from the joint venture stake.
In December 2017, it closed on a $24.2 million nonrecourse loan due Jan. 1, 2033, with a 4.07% interest rate, to fund the Constellation project.