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Howard Hughes (HHH) - 2025 Q1 - Earnings Call Transcript
2025-05-08 15:00
Financial Data and Key Metrics Changes - The company reported adjusted operating cash flow of $63 million or $1.27 per diluted share for Q1 2025, indicating strong momentum across segments [5][6] - The operating assets delivered a new quarterly record of $72 million in NOI, reflecting a 9% year-over-year growth [10][11] - The company expects full-year EBT guidance of $375 million, representing a significant increase compared to previous years [6][18] Business Line Data and Key Metrics Changes - The Master Planned Communities (MPC) segment achieved EBT of $63 million in Q1 2025, a 161% increase year-over-year, driven by robust land sales [6][7] - Land sales in Texas increased by 31% year-over-year, with an average price per acre of $991,000 [7][8] - New home sales totaled 543 in Q1 2025, showing sequential improvement despite a decline compared to the previous year's record [8][9] Market Data and Key Metrics Changes - The company noted solid demand for new homes across its MPCs, contrasting with signs of softening in the national housing market [9][60] - The condo pipeline represents $2.7 billion in future revenue expected between 2025 and 2028, indicating strong market demand [6][13] Company Strategy and Development Direction - The company is transitioning to a diversified holding company model, aiming to acquire durable growth companies to enhance shareholder value [26][28] - The focus remains on the MPC business, with plans to continue developing communities that meet long-term demand [39][41] - The company is exploring opportunities in the insurance sector, which is seen as a high priority for future growth [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its 2025 guidance, citing strong momentum across segments [18][19] - The CEO highlighted the resilience of the MPCs and the quality of life they provide, which supports ongoing demand for new homes [9][60] - The management team is optimistic about the future, expecting significant cash flow generation from matured MPCs [58][52] Other Important Information - The company closed on a $200 million credit facility extension and a $20 million construction loan, enhancing liquidity [20][21] - A recent sale of MUD receivables generated approximately $180 million in cash proceeds, providing additional liquidity [21] Q&A Session Summary Question: Timeline for first transactions and pipeline readiness - The company is in early discussions and expects to have potential transactions announced by fall [31][36] Question: Capital allocation between new businesses and traditional real estate - The MPC business will continue to be prioritized, with excess cash flow expected to be reinvested into new projects over time [39][41] Question: Cash flow generation and self-funding capabilities - The company anticipates that as MPCs mature, free cash flow generation will increase significantly, leading to self-funding capabilities [58] Question: Cash infusion allocation for insurance investment versus other investments - The allocation for the insurance subsidiary is still to be determined, with a focus on high return strategies for new investments [62]
Howard Hughes (HHH) - 2025 Q1 - Earnings Call Presentation
2025-05-08 09:15
The HHH Opportunity 1Q 2025 Forward-Looking Statements Statements made in this presentation that are not historical facts, including statements accompanied by words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "may," "plan," "project," "realize," "should," "transform," "would," and other statements of similar expression and other words of similar expression, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, a ...
Compared to Estimates, Howard Hughes Holdings (HHH) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-08 00:30
Core Insights - Howard Hughes Holdings (HHH) reported revenue of $199.33 million for Q1 2025, marking a 16.5% year-over-year increase and exceeding the Zacks Consensus Estimate by 6.35% [1] - The company achieved an EPS of $0.21, a significant improvement from -$1.06 a year ago, with an EPS surprise of 61.54% compared to the consensus estimate of $0.13 [1] Revenue Breakdown - Master Planned Community land sales generated $71.64 million, surpassing the average estimate of $59.53 million, reflecting a year-over-year increase of 121% [4] - The Operating Assets Segment reported revenues of $114 million, slightly above the average estimate of $112.18 million, with a year-over-year change of 3.5% [4] - Revenues from the Master Planned Communities Segment reached $84.45 million, exceeding the estimated $75.23 million, representing a 72.8% increase compared to the same quarter last year [4] Stock Performance - Over the past month, shares of Howard Hughes Holdings have returned +8.2%, while the Zacks S&P 500 composite has seen a +10.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]
Howard Hughes Holdings (HHH) Beats Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-07 22:30
Howard Hughes Holdings (HHH) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to loss of $1.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 61.54%. A quarter ago, it was expected that this land developer would post earnings of $2.85 per share when it actually produced earnings of $3.25, delivering a surprise of 14.04%.Over the last four quarters, the ...
Howard Hughes (HHH) - 2025 Q1 - Quarterly Results
2025-05-07 20:05
Financial Performance - The company reported a net income from continuing operations of $10.8 million, or $0.21 per diluted share, compared to a loss of $(21.0) million, or $(0.42) per diluted share in the prior-year period[13]. - Net income attributable to common stockholders for the three months ended March 31, 2025, was $10,533,000, a recovery from a loss of $52,477,000 in 2024[29]. - Operating income for the period was $47,930,000, compared to $12,608,000 in 2024, marking a substantial improvement[29]. - The company's interest income (expense), net, for the three months ended March 31, 2025, was $(34,976), compared to $(139,577) for the year ended December 31, 2024[47]. Revenue Growth - Total revenues for the three months ended March 31, 2025, were $199,328,000, an increase of 27% from $156,484,000 in 2024[29]. - Master Planned Communities land sales increased significantly to $71,642,000, up 121% from $32,415,000 in 2024[29]. - Total Operating Assets NOI rose to $71,566 thousand for the three months ended March 31, 2025, compared to $65,575 thousand in 2024, marking an increase of 9.06%[38]. - Operating Assets NOI increased by 6% to $64,018,000 in 2025 from $60,353,000 in 2024[21]. - The company's share of NOI from unconsolidated ventures rose by 45% to $7,548,000 compared to $5,222,000 in the previous year[21]. Asset Management - The company reported a gain on the sale or disposal of real estate and other assets of $13,729,000, compared to $4,794,000 in 2024, reflecting improved asset management[29]. - Total assets increased to $9,289,379 thousand as of March 31, 2025, compared to $9,211,236 thousand as of December 31, 2024, reflecting a growth of 0.85%[31]. - Total liabilities increased to $6,434,319 thousand as of March 31, 2025, compared to $6,369,462 thousand as of December 31, 2024, indicating a rise of 1.02%[31]. Cash Flow and Liquidity - Adjusted Operating Cash Flow for the quarter was $63 million, or $1.27 per diluted share, with a full-year guidance maintained at approximately $350 million, or $7.00 per diluted share[4][19]. - Cash and cash equivalents decreased to $493,657 thousand as of March 31, 2025, down from $596,083 thousand as of December 31, 2024, a decline of 17.25%[31]. - Cash G&A for the three months ended March 31, 2025, was $19,685, down from $22,436 in the previous year, indicating a decrease of about 12.3%[43]. Sales and Backlog - The company contracted to sell 27 condominium units for a total value of $51 million, contributing to a backlog of future condo revenues amounting to $2.7 billion[7]. - New homes sold in HHH's communities totaled 543 units, representing a 6% sequential increase, although a 17% decline compared to the prior-year period[17]. - The average price per acre of residential land sold was approximately $991,000, representing a 65% year-over-year increase, driven by the sale of two superpads in Summerlin[17]. - The company reported a decrease in total condominium rights and unit sales to $342 for the three months ended March 31, 2025, compared to $778,616 for the year ended December 31, 2024[45]. Segment Performance - Master Planned Community (MPC) Earnings Before Tax (EBT) totaled $63 million, marking a 161% increase compared to $24.3 million in the prior-year period, with a full-year guidance target of approximately $375 million[12][16]. - Master Planned Communities segment achieved total revenues of $84,454 thousand for the three months ended March 31, 2025, a significant increase of 72.69% compared to $48,875 thousand in 2024[33]. - The Operating Assets segment EBT improved to $2,270 thousand for the three months ended March 31, 2025, compared to a loss of $2,917 thousand in the same period of 2024, showing a turnaround of $5,187 thousand[33]. - Strategic Developments segment EBT improved to a loss of $1,199 thousand in Q1 2025, compared to a loss of $5,414 thousand in Q1 2024, reflecting a positive change of $4,215 thousand[33].
Howard Hughes (HHH) - 2025 Q1 - Quarterly Report
2025-05-07 20:03
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 001-41779 HOWARD HUGHES HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Iden ...
Howard Hughes Holdings Inc. Reports First Quarter 2025 Results
Globenewswire· 2025-05-07 20:01
Strong start to the year affirms expectations for record MPC and Operating Assets performance in 2025 THE WOODLANDS, Texas, May 07, 2025 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the "Company," "HHH," "Howard Hughes," or "we") today announced operating results for the first quarter ended March 31, 2025. The financial statements, exhibits, and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information, as available through the Investors section of our we ...
Howard Hughes Holdings to Host an X Spaces Session on Thursday, May 8 at 11:05 AM ET
Globenewswire· 2025-05-07 12:54
Core Viewpoint - Howard Hughes Holdings Inc. (HHH) is transforming into a diversified holding company following a $900 million investment from Pershing Square Holdco, L.P. [1][2] Group 1: Company Strategy - The new business strategy will focus on acquiring controlling stakes in high-quality, durable growth public and private operating companies [2] - A live Spaces session will be held to discuss this transformation and allow public engagement [2][3] Group 2: Financial Details - The investment from Pershing Square is valued at $900 million, which will support HHH's strategic shift [1] Group 3: Company Background - Howard Hughes Holdings Inc. owns and manages a diverse portfolio of commercial, residential, and mixed-use real estate across the U.S. [5] - The company is recognized for its master planned communities and development opportunities in various key locations [5]
Warren Buffett Is Retiring, but Another Billionaire Wants to Create the Next Berkshire Hathaway
The Motley Fool· 2025-05-06 10:22
Billionaire hedge fund manager Bill Ackman has been attempting to use real estate developer Howard Hughes Holdings (HHH 2.82%) to create a "modern-day Berkshire Hathaway" for some time. Now, it looks like a deal has finally been reached that could allow him to get started.I've previously discussed Ackman's two prior proposals (links in text), but here are the short versions:In January, Ackman proposed taking a majority stake in Howard Hughes by purchasing shares for $85. Depending on how many shareholders t ...
对冲基金大牛阿克曼欲借Howard Hughes(HHH.US)收购或创建保险公司
智通财经网· 2025-05-06 04:00
Group 1 - Bill Ackman plans to increase his stake in Howard Hughes Holding (HHH.US) to 48% and aims to create a modern version of Berkshire Hathaway [1] - Ackman revealed that Howard Hughes may acquire or create an insurance company, citing the success of Berkshire Hathaway's insurance operations as a key factor for its high returns [1] - Ackman will serve as the chairman of Howard Hughes, leveraging his expertise to help the real estate developer invest in public and private companies [1] Group 2 - The creation of an insurance company within a diversified holding company allows for greater flexibility in asset allocation compared to a standalone insurance company [2] - Ackman indicated that many alternative asset management firms have pursued insurance company acquisitions to access float, which provides stable cash flow for investments [2] - Ackman expressed a preference for starting a new insurance company from scratch rather than acquiring an existing one, and is in discussions with a notable executive in the industry [2]