Harry Muscle

The heater will feel warm when you first take it out of the water assuming it's been ON heating the water just a few seconds before you took it out. It will continue feeling warm for a short period of time since the heat that's already contained in the heater has to go somewhere and air is not the greatest conductor of heat, so it takes a little while for the air to take the heat away and bring the heaters body to room temperature.

Also depending on how it senses when it's out of the water, you might actually have the heater heat up for a very short period of time when taken out of the water before it shuts off and starts cooling down.

Harry