Group 1: Earnings Performance - Howard Hughes Holdings reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, compared to a loss of $1.06 per share a year ago, representing an earnings surprise of 61.54% [1] - The company posted revenues of $199.33 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.35%, and showing an increase from year-ago revenues of $171.14 million [2] Group 2: Stock Performance and Outlook - Howard Hughes Holdings shares have declined approximately 10.8% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $308.75 million, and for the current fiscal year, it is $1.43 on revenues of $1.37 billion [7] Group 3: Industry Context - The Real Estate - Development industry, to which Howard Hughes Holdings belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Landsea Homes, another company in the same industry, is expected to report a quarterly loss of $0.08 per share, reflecting a year-over-year change of -233.3%, with revenues projected at $320.15 million, an increase of 8.9% from the previous year [9]

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].

Financial Performance - Net income from continuing operations increased to $10.8 million in Q1 2025, compared to a loss of $21.0 million in Q1 2024, primarily driven by increased MPC residential land sales[145] - Operating Assets NOI totaled $64.0 million in Q1 2025, a $3.7 million increase from $60.4 million in Q1 2024[145] - MPC EBT reached $63.3 million in Q1 2025, a $39.0 million increase compared to $24.3 million in Q1 2024, due to higher residential land sales at Summerlin[145] - Strategic Developments EBT improved by $4.2 million to a loss of $1.2 million in Q1 2025, compared to a loss of $5.4 million in Q1 2024[145] - Total revenues for Operating Assets were $114.0 million in Q1 2025, compared to $107.0 million in Q1 2024, marking a $7.0 million increase[146] - Rental revenue for Operating Assets increased to $108.4 million in Q1 2025, up from $101.2 million in Q1 2024, reflecting a $7.2 million increase[146] - Gain on sale of real estate increased by $5.2 million due to the sale of two land parcels and a retail space in Ward Village in 2025[149] - Rental revenues, net of operating costs, increased by $5.6 million primarily due to increased leasing activity across the portfolio[149] - MPC Net Contribution increased by $41.6 million to $16.7 million for the three months ended March 31, 2025, compared to a loss of $24.9 million in 2024[164] Construction and Sales Activity - As of March 31, 2025, 95.6% of the units at four towers under construction are under contract[145] - The company contracted 26 units at The Launiu during Q1 2025, with the project being 63.7% pre-sold as of March 31, 2025[145] - The Launiu project, launched in February 2024, has 309 units under contract, representing 63.7% of the total 485 units[175] - As of March 31, 2025, 97.4% of units at The Park Ward Village, Ulana Ward Village, and Kalae under construction are under contract, with 528 out of 545 units contracted for The Park Ward Village[171] - Condominium rights and unit sales revenue surged to $342,000 in Q1 2025 from $23,000 in Q1 2024, marking a $319,000 increase[168] Liquidity and Debt Management - The company maintains a strong liquidity position with $493.7 million in cash and cash equivalents and $1.0 billion of undrawn lender commitments available for property development[145] - The company had $1.0 billion of undrawn lender commitments available for property development as of March 31, 2025[181] - The company had $5.2 billion of outstanding debt and $1.0 billion of undrawn lender commitment available for property development[190] - The company's total contractual cash obligations and commitments amounted to $6.42 billion, with the largest component being mortgages, notes, and loans payable at $5.29 billion[189] - The net debt of the company, defined as total debt minus liquidity sources, was $4.32 billion as of March 31, 2025[192] - The company had $1.5 billion of variable-rate debt outstanding, with $250.1 million swapped to a fixed rate and $917.9 million covered by interest rate cap contracts[195] - Interest payments for the upcoming years are projected to total $1.12 billion, with the highest payment of $231.5 million due in 2026[189] - The company uses derivative instruments to manage interest rate risk, primarily through interest rate swaps, caps, and collars[195] - The company’s liquidity and capital resources could be negatively impacted if financing arrangements for properties are not favorable[189] Operating Performance - Office NOI increased by $2.3 million primarily due to strong leasing activity and abatement expirations at various properties[153] - Multifamily NOI increased by $2.0 million due to continued lease-up at multiple properties[153] - Interest expense increased by $1.3 million primarily due to increased borrowings on construction loans[149] - Strategic Developments segment EBT increased by $4.2 million to $(1.2) million for the three months ended March 31, 2025, compared to $(5.4) million in the prior year[169] - Total revenues for the Strategic Developments segment rose by $261,000, reaching $854,000 for the three months ended March 31, 2025, compared to $593,000 in the same period of 2024[168] Corporate Financials - The corporate income, expenses, and other items totaled $(53.5) million for the three months ended March 31, 2025, an increase of $16.6 million from $(36.9) million in the prior year[179] - Net cash used in operating activities of continuing operations was $(224.9) million for Q1 2025, up from $(156.4) million in Q1 2024, reflecting a $68.5 million increase[184] - Cash provided by financing activities increased to $128.1 million in Q1 2025 from $83.6 million in Q1 2024, a rise of $44.4 million[186] - Equity earnings at The Summit increased by $11.0 million due to higher losses in the prior-year period related to changes in the development model[161]

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 ...

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]

Core Viewpoint - Bill Ackman has successfully negotiated a deal with Howard Hughes Holdings to create a diversified holding company, akin to a modern-day Berkshire Hathaway, with a significant investment from Pershing Square [1][10]. Investment Details - Pershing Square will invest $900 million in newly created shares, purchasing 9 million shares at a price of $100 each, resulting in a 46.9% stake in Howard Hughes [3][4]. - The investment will enable the company to build a portfolio of controlling stakes in high-quality public and private operating companies while continuing to grow its core real estate business [4]. Management Structure - Ackman will assume the role of executive chairman, while the current leadership team, including CEO David O'Reilly, will remain in place [5]. - A new position of chief investment officer will be created, to be filled by Pershing Square's CIO, Ryan Israel [5]. Fee Structure Changes - The management fee structure has been revised to a base fee of $3.75 million paid quarterly, approximately 0.4% of the current market cap annually, which aligns management incentives with shareholder success [6][7][8]. - Additionally, a quarterly management fee of 0.375% will be applied only to any increase in the company's market cap above a threshold of approximately $3.9 billion, adjusted for inflation [7]. Future Prospects - Ackman indicated that acquiring or building an insurance company may be part of the business strategy, similar to Berkshire Hathaway's model [11]. - The transaction does not require further shareholder approvals and was finalized on May 5, following the board's approval [11].

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]

Howard Hughes Holdings (HHH) closed the last trading session at $67.47, gaining 0.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $90.67 indicates a 34.4% upside potential.The average comprises three short-term price targets ranging from a low of $82 to a high of $105, with a standard deviation of $12.50. While the lowest estimate indicates an increase of 21.5% from the current ...

Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in New York City on Sept. 28, 2023.Bill Ackman's Pershing Square has agreed to invest $900 million in real estate company Howard Hughes, the companies announced Monday, as the billionaire hedge fund manager looks to follow in the footsteps of Warren Buffett.The deal involves Pershing Square buying 9 million newly issued shares of Howard Hughes for a total cost of $900 million. The purchase price is 48% above whe ...

Core Viewpoint - Pershing Square is investing $900 million in Howard Hughes Holdings Inc. (HHH) to support its strategic expansion into a diversified holding company, acquiring controlling interests in high-quality public and private companies while continuing its core real estate development business [2][9]. Investment Details - Pershing Square will acquire 9,000,000 newly issued shares of HHH at $100.00 per share, representing a 48% premium to HHH's closing price on May 2, 2025 [3][9]. - Following the investment, Pershing Square will own 46.9% of HHH shares outstanding, with an agreement to limit its voting power to 40% and beneficial ownership to 47% [3][6]. Leadership Changes - Bill Ackman, Chairman and CEO of Pershing Square, has been appointed as the Executive Chairman of HHH's Board of Directors, while Ryan Israel will take on the role of Chief Investment Officer at HHH [4][9]. - The existing leadership team at HHH, led by CEO David O'Reilly, will remain unchanged but will have expanded roles and responsibilities [4][11]. Strategic Support - The entire Pershing Square organization will provide HHH with investment, advisory, and ancillary services, including corporate development and capital markets assistance [5][9]. - HHH will continue to develop its core Master Planned Communities and other strategic developments, maintaining its position as a leading community builder [10][11]. Financial Arrangements - HHH will pay Pershing Square a quarterly base fee of $3.75 million and a management fee based on the increase in HHH's equity market capitalization above a predetermined reference market cap [7][8]. - The reference market cap is calculated using a post-transaction share count of 59,393,938 and a reference market price of $66.1453, adjusted annually for inflation [7]. Governance Structure - The transaction was approved by HHH's Special Committee, composed entirely of independent directors, and will result in a board with a majority of independent directors [12][13]. - Pershing Square has the right to nominate three directors as long as it holds at least 17.5% of HHH's fully diluted shares [13].