Howard Hughes (US:HHH)2025-05-07 20:05Financial 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].