Should We Follow Howard Hughes Corp (HHC)’s CEO Into the Company?

Previously, Ackman had been quite an active matchmaker between General Growth and Simon Property. However, Simon Property did not show interest in acquiring General Growth. Consequently, in the beginning of the year, he decided to stop pushing for General Growth’s sale by selling the warrants to buy 18 million shares of General Growth to Brookfield Asset Management.

The market values Howard Hughes at 1.73 times its book value and 38.25 times its forward earnings. General Growth Properties, at $20.10 per share, has a total market cap of $18.9 billion. It is valued at 16.3 times its forward earnings and 2.24 times its book value. Simon Property is the biggest company of the trio. It is trading at $165.70 per share with a total market cap of $51.4 billion. The market values Simon Property at 17.8 times its forward earnings and as much as 8.85 times its book value.

My Foolish take

Howard Hughes could be a good investment in the long run with its continuous real estate development. The company intends to have more than 900 residential units in two condo towers and one affordable residential tower in the first phase of its Ward Village master plan. David Weinreb seems to be quite bullish about the company with his recent share purchases, as he believes in the potential value of many of the company’s core real estate assets.

The article Should We Follow Howard Hughes’ CEO Into the Company? originally appeared on Fool.com.

Anh HOANG has no position in any stocks mentioned. The Motley Fool owns shares of Howard Hughes. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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