The stock of Howard Hughes Corp. HHC, -1.32 % rose by 2.6% on Monday in premarket trading after the company announced that its board had authorized the creation a newly-incorporated holding company structure. This new entity will replace the Howard Hughes Corporation as a publicly traded entity at the New York Stock Exchange. The Howard Hughes Corporation’s stock, which mainly invests in real-estate, will automatically be converted on a 1 for 1 basis into shares of The Howard Hughes Holding Corporation. Trading will continue uninterrupted on the NYSE. The company stated that the reorganization would promote growth in its business, including providing more flexibility to fund future investments and segregating assets and liabilities into separate subsidiaries. This move will be treated as a tax free transaction under U.S. federal tax law. Reorganization should be completed by August 11 or near that date. The stock is up 7% year-to-date, while S&P 500 , SPX, +0.10%, has gained 17%.