PHOENIX, Nov. 17, 2025 (GLOBE NEWSWIRE) -- Howard Hughes Communities™, the real estate platform of Howard Hughes Holdings Inc. (NYSE: HHH), officially celebrated the grand opening of Teravalis™ on November 14, marking a transformative milestone for the Phoenix West Valley and the City of Buckeye. The 37,000-acre community, one of the nation’s largest master planned developments, welcomed the first residents of its inaugural village of Floreo, who joined Arizona Governor Katie Hobbs, state and local officia ...

Core Viewpoint - Bill Ackman sees significant upside potential in his investments, particularly in Uber, Brookfield Corporation, and Alphabet, among others, due to their strong fundamentals and growth prospects [1][2]. Investment Strategy - Ackman focuses on high-quality businesses with strong cash flow and limited downside risk, often taking activist positions to unlock shareholder value [2][3]. Portfolio Overview - Pershing Square Capital Management holds shares in 15 large-cap companies, with 75% of its $15 billion stock portfolio concentrated in five key holdings [3]. Key Holdings - **Uber Technologies (19.6%)**: Ackman appreciates Uber's strong network effects, management quality, operational performance, and cash flow, expecting earnings per share to grow over 30% annually [4][5]. - **Brookfield Corporation (17.7%)**: Added to the portfolio in 2024, Brookfield is positioned for growth due to AI infrastructure demand and an aging population, potentially quadrupling its wealth solutions asset base to $600 billion [6][8]. - **Alphabet (14.4%)**: Ackman has invested in Alphabet due to its rapid AI integration and strong financial performance, including $100 billion in revenue and a 33% year-over-year profit growth [9][11]. - **Howard Hughes Holdings (13.4%)**: Ackman aims to transform Howard Hughes into a diversified holding company, increasing its stake to 47% and focusing on unlocking value from real estate assets [12][13]. - **Restaurant Brands (10.6%)**: The company is valued for its capital-light business model and plans to enhance sales through investments in Burger King and expansion in Tim Hortons [14][17].

Core Insights - The article discusses the expertise of a senior analyst and private portfolio manager with over 10 years of experience in generating value ideas in European and North American markets [1] Group 1: Analyst Profile - The analyst is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] - The focus is on identifying reasonably valued stock ideas within these markets [1] Group 2: Investment Position - The analyst holds a beneficial long position in the shares of SCRYY, indicating a personal investment interest in this stock [1]

Core Insights - Howard Hughes Holdings (NYSE: HHH) is a significant player in the real estate development sector, focusing on master-planned communities and income-producing properties [1] Financial Performance - On November 10, 2025, HHH reported earnings per share (EPS) of $2.02, exceeding the estimated $1.56, resulting in a 29.49% earnings surprise [2][6] - The company's revenue for the quarter ending September 2025 was approximately $390.24 million, surpassing the estimated $358 million, and reflecting a 19.3% year-over-year increase from $327.15 million [3][6] Market Position and Valuation - HHH has a price-to-earnings (P/E) ratio of 21.09, indicating strong investor confidence in its earnings potential [4][6] - The price-to-sales ratio is 2.91, and the enterprise value to sales ratio is 5.05, reflecting its market valuation relative to sales [4] - The enterprise value to operating cash flow ratio stands at 16.61, highlighting cash flow efficiency [4] Financial Leverage and Liquidity - The company has a debt-to-equity ratio of 1.43, indicating reliance on debt for financing assets [5] - A current ratio of 0.30 suggests a need for improvement in short-term liquidity [5] - Despite these challenges, HHH's earnings yield is 4.74%, demonstrating its ability to generate returns for investors [5]

Financial Data and Key Metrics Changes - The company reported a record quarter with EBT of $205 million in the MPC segment, driven by strong land sales in Summerlin [4] - Full-year EBT guidance has been raised to $450 million, up $20 million from prior guidance, indicating a strong performance [9] - Operating assets NOI grew 5% year-over-year to $68 million, with office NOI up 7% and retail NOI up 9% [6][10] Business Line Data and Key Metrics Changes - The MPC segment achieved record land sales, selling 319 acres at an average of $795,000 per acre, with a significant bulk sale at a 75% margin [4] - Multifamily NOI grew 2%, with the stabilized multifamily portfolio now 96% leased [6] - The company reached a new record with $1.4 billion in condo pre-sales, with Malia and Alima towers at Ward Village being 57% pre-sold [6][10] Market Data and Key Metrics Changes - Despite national trends indicating slower home sales, the company reported strong results in its communities, countering broader market headlines [5] - The stabilized retail portfolio remains above 90% leased, indicating strong demand in retail spaces [6] Company Strategy and Development Direction - The company is focused on transforming into a diversified holding company, with significant progress in acquiring an insurance company [12] - Cash flows generated from real estate will be reinvested into value-creating developments, enhancing future cash flows and net asset value [11][20] - The company aims to maintain a competitive edge through limited competition and a self-funding model [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record-high residential land sales and pricing by year-end [5] - The company anticipates that 2025 will be another record-breaking year, although not every year will replicate this performance [9] - Management emphasized the importance of quality of life and community connectivity in driving demand for their developments [55] Other Important Information - The company has refinanced $114 million of near-term maturities, reducing 2025 maturities to $76 million [9] - The company is maintaining G&A guidance between $76 million and $86 million, with a midpoint of $81 million [10] Q&A Session Summary Question: Regarding super pad sales and their trade-off - Management explained that the recent super pad sale was a unique situation that generated significant cash flow, and future transactions will likely be at higher prices per acre [15][16] Question: Impact of the insurance company acquisition on capital - Management indicated that the acquisition will consume available cash but is expected to create significant value and flexibility for future investments [17][20] Question: Status of condo pre-sales and future projects - Management expressed satisfaction with the 57% pre-sale rate and discussed ongoing evaluations for future condo projects in The Woodlands and Summerlin [24][36] Question: Pricing trends for the Ritz-Carlton Residences - Management noted that prices have increased by approximately $350-$400 per square foot compared to initial sales, reflecting strong demand [38][39] Question: Outlook for MPC land sales in 2026 - Management stated it is too early to provide guidance for 2026 land sales, emphasizing a cautious approach based on current market conditions [52][53]

Strategic Transaction - Pershing Square invested $900 million in Howard Hughes Holdings Inc (HHH) to transform it into a diversified holding company[12] - Pershing Square purchased 9 million newly issued HHH shares for $100 per share, representing a 48% premium[13] - Pershing Square's beneficial ownership increased to approximately 469%, with voting power capped at 40% and beneficial ownership limited to 47%[13] - HHH will pay Pershing Square a quarterly fee of $375 million plus an incentive fee equal to 0375% of the growth in HHH's equity market capitalization[13] Portfolio Highlights - HHC's portfolio includes 72 million square feet of office space, 26 million square feet of retail space, 5,855 multifamily units, and 3,046 condos closed[23] - HHC has 7 communities and 34,000 acres of raw land[23] - Master Planned Communities (MPC) segment generated $349 million in 2024 EBT[25] - Operating Assets segment generated $257 million in 2024 NOI[30] - Strategic Developments segment generated $211 million in 2024 Adjusted Condo Gross Profit[27] Financial Performance - The company anticipates stabilized adjusted operating cash flow between $955 million and $1 billion, compared to $440 million in 2025[56] - The company's 2025 Adjusted Operating Cash Flow is comprised of $717 million Operating Assets NOI, $450 million MPC EBT, $0 million Condo Profit, ($196 million) Interest Expense, and ($81 million) Cash G&A[53, 56] - MPC Gross Asset Value increased from $37 billion in 2017 to $44 billion in 2025[49]

Howard Hughes Holdings (HHH) came out with quarterly earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.56 per share. This compares to earnings of $1.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +29.49%. A quarter ago, it was expected that this land developer would post earnings of $1.01 per share when it actually produced earnings of $0.44, delivering a surprise of -56.44%.Over the last four quarter ...

Financial Performance - Net income from continuing operations increased to $119.4 million in Q3 2025, compared to $96.5 million in Q3 2024, driven by increased MPC residential land sales and improved NOI performance [159]. - Operating Assets NOI totaled $65.6 million in Q3 2025, a $2.7 million increase from $62.8 million in Q3 2024 [159]. - MPC EBT totaled $205.0 million in Q3 2025, a $60.3 million increase compared to $144.8 million in Q3 2024, primarily due to an increase in superpad acres sold [159]. - Strategic Developments EBT decreased $66.4 million to $11.3 million in Q3 2025, compared to $77.7 million in Q3 2024, mainly due to a decrease in other income related to prior insurance proceeds [159]. - Net income from continuing operations decreased $4.7 million to $118.2 million for the nine months ended September 30, 2025, compared to $122.9 million in the prior-year period [160]. - Total revenues for Operating Assets reached $117.2 million, a $3.2 million (3%) increase for the three months ended September 30, 2025 [170]. - MPC total revenues rose to $271.6 million, a $58.9 million (28%) increase for the three months ended September 30, 2025 [173]. - Rental revenue for Operating Assets was $111.4 million, a $2.9 million (3%) increase for the three months ended September 30, 2025 [170]. - Gain on sale of real estate increased by $6.4 million (80%) for the nine months ended September 30, 2025, totaling $14.4 million [167]. - Gain on sale of real estate increased by $10.1 million due to a land swap transaction in the current period [197]. Liquidity and Capital Management - The company maintains a strong liquidity position with $1.5 billion in cash and cash equivalents and $772.4 million of undrawn lender commitments available for property development as of September 30, 2025 [159]. - The company sold 9,000,000 newly issued shares of common stock to Pershing Square for an aggregate purchase price of $900 million on May 5, 2025 [153]. - Net cash provided by operating activities of continuing operations was $102.1 million for the nine months ended September 30, 2025, a decrease of $8.9 million compared to $111.0 million in the prior year [221]. - Net cash used in investing activities of continuing operations was $162.1 million for the nine months ended September 30, 2025, a decrease of $214.5 million compared to $376.5 million in the prior year [222]. - Net cash provided by financing activities of continuing operations was $1.0 billion for the nine months ended September 30, 2025, an increase of $858.2 million compared to $177.1 million in the prior year [223]. - The company is evaluating opportunities to deploy $900 million of capital received from the Pershing Square Transaction to acquire or invest in operating companies [226]. - As of September 30, 2025, the company had $5.3 billion of outstanding debt, with $772.4 million of undrawn lender commitments available for property development [229]. - As of September 30, 2025, the company reported net debt of $3,508.431 million, with total mortgages, notes, and loans payable amounting to $5,287.369 million [233]. - The company had $1.5 billion of variable-rate debt outstanding, with $361.9 million swapped to a fixed rate and $625.2 million covered by interest rate cap contracts [235]. - Annual interest costs would increase approximately $4.9 million for every 1.00% increase in floating interest rates, impacting cash payments and development costs [236]. Development and Sales Activity - The company contracted 216 units at predevelopment condominiums at Ward Village during Q3 2025, including 136 units at Melia and 72 units at 'Ilima [159]. - As of September 30, 2025, 97% of the units at The Park Ward Village under construction are under contract, with 529 out of 545 units contracted [201]. - Ulana Ward Village, which is 100% pre-sold, consists of 696 units designated as workforce housing, with closings beginning in November 2025 [202]. - The Ritz-Carlton Residences in The Woodlands has 82 out of 111 units under contract, representing 74% of total units as of September 30, 2025 [204]. - The Launiu project has 332 out of 485 units under contract, representing 68% of total units, with construction expected to commence in early 2026 [205]. Operating Costs and Expenses - Corporate income, expenses, and other items included an increase in net expenses of $38.4 million primarily due to higher income tax expense and general administrative expenses [163]. - Operating costs decreased by $7.7 million primarily due to lower real estate taxes [188]. - Corporate income, expenses, and other items for the three months ended September 30, 2025, showed a total expense of $89.7 million, a decrease of $23.3 million (21%) compared to the prior year [213]. - General and administrative expenses increased by $3.4 million (14%) for the three months ended September 30, 2025, primarily due to a $7.1 million increase in Pershing Square advisory fees [215]. - Corporate interest expense, net decreased by $4.3 million (19%) due to higher interest income from the Pershing Square Transaction [215]. - Income tax expense increased by $28.7 million, primarily due to the net impact of the 2024 spinoff of SEG [215]. Strategic Developments - The company expects to transform into a premier diversified holding company with its portfolio of master planned communities at its foundation [153]. - The Strategic Developments segment's total operating expenses decreased by 72% to $4,627 thousand for the three months ended September 30, 2025, compared to $16,411 thousand in the prior-year period [196]. - Total revenues for the Strategic Developments segment increased by 189% to $1,460 thousand for the three months ended September 30, 2025, compared to $505 thousand in the same period of 2024 [196]. - Condominium rights and unit sales revenue surged to $142 thousand in Q3 2025 from $3 thousand in Q3 2024, marking a significant increase [196]. - The company reported a net amount of $2,757.334 million in planned strategic developments [233].

Financial Performance - Net income from continuing operations was $119.4 million, or $2.02 per diluted share, compared to $96.5 million, or $1.95 per diluted share in the prior-year period, reflecting a year-over-year increase of 24%[6] - Net income attributable to common stockholders for Q3 2025 was $119.5 million, compared to $72.8 million in Q3 2024, reflecting a 64.2% increase[24] - The company reported an operating income of $189.6 million for Q3 2025, slightly down from $198.3 million in Q3 2024[24] - Total revenues for Q3 2025 reached $390.2 million, a 19.3% increase from $327.1 million in Q3 2024[24] - Total revenues for the nine months ended September 30, 2025, reached $499,730 thousand, up $66,067 thousand (15.2%) from $433,663 thousand in 2024[29] Cash Flow and Liquidity - Adjusted Operating Cash Flow for the quarter was $199 million, or $3.37 per diluted share, with full-year 2025 guidance raised to $440 million at the midpoint, an increase of $30 million or $0.54 per share[5][14] - Cash and cash equivalents as of September 30, 2025, were $1.46 billion, significantly up from $596.1 million at the end of 2024[26] - The company maintained a strong liquidity position with $1.5 billion in cash and cash equivalents, significantly increased year-over-year due to a $900 million investment from Pershing Square[11] Operating Performance - Total Operating Assets Net Operating Income (NOI) increased 5% year-over-year to $68 million, led by strong office and multifamily results[5][11] - Total Operating Assets NOI for the three months ended September 30, 2025, was $67,865 thousand, an increase of $3,063 thousand (4.7%) compared to $64,802 thousand in 2024[34] - Total Same Store NOI for the three months ended September 30, 2025, was $67,401, an increase of $3,480 or 5.4% compared to $63,921 in the same period of 2024[37] - Total Operating Assets NOI for the nine months ended September 30, 2025, reached $208,291, reflecting a $12,483 or 6.4% increase from $195,808 in the same period of 2024[37] Real Estate and Development - Master Planned Community (MPC) EBT reached a record $205 million, a 42% increase from $144.8 million in the prior-year period, driven by the sale of 349 residential acres at an average price of $786,000 per acre[11][16] - The company contracted $1.4 billion in future condo sales revenue, primarily through the pre-sale of 208 condominium units at Melia and 'Ilima, which are now 57% pre-sold[11][12] - New homes sold across communities totaled 429 units, reflecting a 13% year-over-year decline, yet homebuilder demand for land remains resilient[11] - Master Planned Communities land sales generated $248.5 million in Q3 2025, compared to $198.2 million in Q3 2024, representing a 25.4% increase[24] - The company broke ground on the Memorial Hermann Medical Office Building, a 51,000-square-foot facility, marking the first phase of approximately one million square feet of planned medical facilities[11] Expenses and Efficiency - General and administrative expenses for the nine months ended September 30, 2025, totaled $85,269, down from $91,752 in the same period of 2024[39] - Cash G&A for the three months ended September 30, 2025, was $25,696, down from $28,281 in the same period of 2024, indicating improved overhead efficiency[39] Future Outlook - The company anticipates continued growth in revenues and net income driven by strategic investments and market expansion initiatives[20] - The company reaffirmed its guidance for Total Operating Assets NOI to be up 2% to 6% year-over-year, with a mid-point of approximately $267 million[14]

Strong land sales lead record results across all segments, supporting upward revision to full-year guidance; $1.4 billion in condominium pre-sales reinforce Company’s long-term cash-flow outlookTHE WOODLANDS, Texas, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company,” “HHH,” “Howard Hughes,” or “we”) today announced operating results for the third quarter ended September 30, 2025. The financial statements, exhibits, and reconciliations of non-GAAP measures in the attache ...