Core Viewpoint - Pershing Square Holdings, Ltd. has committed to invest up to $1 billion in non-voting exchangeable perpetual preferred stock of Howard Hughes Holdings Inc. to facilitate HHH's acquisition of Vantage Group Holdings for approximately $2.1 billion in cash [1][2]. Group 1: Investment Details - The acquisition of Vantage will be financed through HHH's cash and the subscription for the PSH Preferred, with the amount to be determined by HHH up to a $1 billion cap [3]. - The PSH Preferred will be divided into 14 equal tranches, which HHH can repurchase within a specified window after the first seven fiscal years post-acquisition [3]. - The repurchase price for the PSH Preferred will be the greater of 1.5 times the preceding year-end or quarter-end book value of Vantage or the original issue price plus a 4% annual increase until repurchase [3]. Group 2: Ownership and Exchange Rights - If not fully repurchased within 60 days after the seventh fiscal year, the PSH Preferred can be exchanged for common stock of Vantage, with PSH having the right to request an IPO or direct listing of Vantage concurrently with such exchange [4][6]. - PSH's ownership of Vantage will be capped at 49% of its common stock without majority approval from disinterested directors of HHH [4]. Group 3: Related Party Transaction - The PSH Investment is classified as a related party transaction due to the relationship between PSCM and PSH, with PSCM controlling 30% or more of the voting rights at HHH [11]. - The PSH Board considers the investment fair and reasonable for PSH shareholders, having received advice from N.M. Rothschild & Sons Limited [12]. Group 4: Transaction Timeline - The transaction is anticipated to close in the second quarter of 2026, pending customary regulatory approvals and closing conditions [9].

Core Viewpoint - The acquisition of Vantage Group Holdings Ltd. by Howard Hughes Holdings Inc. marks a significant step in HHH's transformation into a diversified holding company, enhancing its portfolio with a leading specialty insurance and reinsurance platform valued at approximately $2.1 billion [1][2][12] Company Overview - Howard Hughes Holdings Inc. (HHH) is focused on long-term shareholder value through its real estate platform and is traded on the New York Stock Exchange as HHH [11] - Vantage Group Holdings Ltd. was established in 2020 and has rapidly become a leading provider of specialty insurance and reinsurance, supported by Carlyle and Hellman & Friedman [13] Transaction Details - HHH has entered into a definitive agreement to acquire 100% of Vantage for approximately $2.1 billion, expected to close in the second quarter of 2026, pending regulatory approvals [1][12] - The acquisition will be financed through HHH's cash on hand and up to $1 billion of non-interest-bearing preferred stock issued to Pershing Square Holdings, Ltd. [3][12] Strategic Benefits - The acquisition is expected to accelerate HHH's growth profile and diversify its sources of long-term value, leveraging Vantage's insurance expertise and Pershing Square's investment capabilities [2][6] - HHH's ownership of Vantage will provide long-term capital support, enhancing Vantage's credit profile and underwriting flexibility [12] Financial Structure - The PSH Preferred stock will be structured to allow HHH to increase its economic ownership of Vantage over time, with a potential full redemption expected within seven years [3][12] - The total cash consideration represents 1.5 times the estimated year-end 2025 book value, implying a price-to-book-value multiple of approximately 1.4 at closing [12] Management and Future Outlook - Vantage's management team, led by CEO Greg Hendrick, anticipates that the acquisition will strengthen its balance sheet and expand opportunities in specialty insurance and reinsurance [3][5] - The deal is structured to enable HHH to acquire 100% legal ownership of Vantage while allowing for potential high returns on equity in the long term [5]

Group 1: Bill Ackman's Portfolio - Bill Ackman has nearly 50% of his portfolio invested in three stocks: Uber Technologies, Brookfield Corp, and Howard Hughes Holdings [1][2][4][6] - Ackman's largest investment is in Uber Technologies, valued at approximately $3 billion, which constitutes around 20% of his total portfolio [2] - Ackman is a relatively new investor in Uber, having acquired shares in the first quarter of 2025, with the stock price increasing over 40% year to date due to AI and self-driving car hype [3] Group 2: Uber Technologies - Uber Technologies has a current market capitalization of $173 billion, with a gross margin of 32.74% and no dividend yield [1] - The stock price of Uber has fluctuated between $59.33 and $101.99 over the past 52 weeks, with a current price of $83.36 [1] - The potential for the robotaxi market, which could be valued at $10 trillion globally, makes Uber an attractive investment option [3] Group 3: Brookfield Corp - Brookfield Corp is a global alternative investments manager focusing on non-traditional assets such as renewable energy and infrastructure projects [4] - Ackman first purchased shares in Brookfield in early 2024, with the stock rising 13% year to date and achieving a 101% return over the last five years [5] Group 4: Howard Hughes Holdings - Howard Hughes Holdings is a real estate company with projects across multiple states, focusing on Master Planned Communities [6] - Ackman has a historical connection to Howard Hughes Holdings, having helped found the company in 2010 as a spinoff from General Growth Properties [7] - The stock price of Howard Hughes Holdings has only increased by 20% over the past five years, indicating potential value [7]

Core Insights - The grand opening of Teravalis marks a significant development milestone for the Phoenix West Valley and Buckeye, Arizona, with the first residents welcomed into the inaugural village of Floreo [2][3][4] Group 1: Community Overview - Teravalis spans 37,000 acres and is one of the largest master-planned developments in the U.S., designed to accommodate Arizona's growing population and economy [3][9] - The community is planned to include 100,000 homes, 300,000 residents, and 55 million square feet of commercial space, with over 7,000 acres designated as preserved open space [3][9] Group 2: Economic Impact - The development is expected to create tens of thousands of new jobs and expand homeownership opportunities in the region, contributing to the economic growth of the West Valley [4][5] - The community aims to balance economic opportunity with quality of life, integrating innovative water conservation measures to ensure sustainable growth [4][5] Group 3: Development Partners - Seven homebuilders, including Century Communities and Lennar, are involved in delivering the first residential offerings, with homes starting in the low $300,000 range [4][5] - The project emphasizes environmental stewardship and sustainable design, incorporating water-efficient infrastructure and low-impact development practices [5] Group 4: Community Engagement - The grand opening event featured Floreo Fest, showcasing model homes, local cuisine, and sustainability exhibits, highlighting the community's values of innovation and engagement with the natural environment [7] - Howard Hughes presented a $15,000 Innovation Award to All Faith Community Services during the grand opening, reinforcing its commitment to community support [6]

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]

Core Insights - Howard Hughes Holdings (HHH) reported quarterly earnings of $2.02 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, and showing an increase from $1.95 per share a year ago, resulting in an earnings surprise of +29.49% [1] - The company achieved revenues of $390.24 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 17.71% and up from $327.15 million year-over-year [2] - The stock has underperformed the market with a gain of about 4.1% since the beginning of the year, compared to the S&P 500's gain of 14.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $639.05 million, and for the current fiscal year, it is $1.71 on revenues of $1.43 billion [7] - The estimate revisions trend for Howard Hughes Holdings was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Real Estate - Development industry, to which Howard Hughes Holdings belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]