Howard Hughes (HHH) - 2025 Q2 - Quarterly Results

Financial Performance - Net loss from continuing operations was $12.1 million, or $(0.22) per diluted share, compared to net income of $47.4 million, or $0.95 per diluted share in the prior-year period[12] - Total revenues for the three months ended June 30, 2025, were $260.88 million, a decrease of 7.9% compared to $283.47 million in the same period of 2024[29] - Net income attributable to common stockholders for the three months ended June 30, 2025, was a loss of $12.14 million, compared to a profit of $21.09 million in 2024[29] - Basic loss per share from continuing operations for the three months ended June 30, 2025, was $0.22, compared to earnings of $0.95 per share in 2024[29] - The net income from continuing operations attributable to common stockholders for the three months ended June 30, 2025, was $(12,144), compared to $(1,611) in the same period of 2024[48] Revenue and Sales - Master Planned Communities land sales generated $125.04 million in revenue for the three months ended June 30, 2025, down from $154.79 million in 2024, representing a decline of 19.3%[29] - Rental revenue increased to $111.09 million for the three months ended June 30, 2025, compared to $105.48 million in 2024, reflecting a growth of 5.4%[29] - The company reported condominium rights and unit sales of $193,000 in Q2 2025, compared to no sales in Q2 2024[21] - The total condominium rights and unit sales for the three months ended June 30, 2025, was $193, a decrease of $811 from the previous year[45] Operating Metrics - Adjusted Operating Cash Flow for the quarter was $91 million, or $1.64 per diluted share, with full-year 2025 guidance raised to $410 million, an increase of $60 million from previous estimates[6] - Total Operating Assets NOI for Q2 2025 was $68,860,000, representing a $3,429,000 increase or 5% from Q2 2024[21] - Total Operating Assets NOI for the first half of 2025 was $140,426,000, reflecting a $9,420,000 increase or 7% from the first half of 2024[21] - Total Same Store NOI for the three months ended June 30, 2025, was $68,628, an increase of $3,480 or 5.34% compared to $65,148 in the same period of 2024[41] - Non-Same Store NOI for the three months ended June 30, 2025, was $232, a decrease of $51 or 18.03% from $283 in the same period of 2024[41] Asset and Equity Position - Total assets as of June 30, 2025, increased to $10.30 billion from $9.21 billion as of December 31, 2024, marking a growth of 11.8%[31] - Cash and cash equivalents rose significantly to $1.44 billion as of June 30, 2025, compared to $596.08 million at the end of 2024, an increase of 141.5%[31] - Total liabilities increased to $6.59 billion as of June 30, 2025, from $6.37 billion at the end of 2024, reflecting a rise of 3.5%[31] - Total stockholders' equity grew to $3.64 billion as of June 30, 2025, compared to $2.78 billion at the end of 2024, an increase of 31.2%[31] Segment Performance - Master Planned Community (MPC) EBT was $102 million, driven by the sale of 111 residential acres at a record average price of $1.35 million per acre, with full-year EBT guidance raised to $430 million, an increase of $55 million[6] - MPC EBT for Q2 2025 was $102,412,000, a decrease of 17% from $123,241,000 in Q2 2024[21] - The Master Planned Communities Segment reported total revenues of $143,701,000 in Q2 2025, a decrease of 16.5% compared to $172,181,000 in Q2 2024[33] - The Master Planned Communities Segment's operating income decreased to $86,007,000 in Q2 2025, down 15.1% from $101,298,000 in Q2 2024[33] Market Position and Strategy - The company maintained a strong liquidity position with $1.4 billion in cash and cash equivalents, bolstered by a $900 million investment from Pershing Square[12] - The company is strategically positioned to meet market demand, focusing on innovative placemaking and development opportunities across its portfolio[23] Cost Management - Cash G&A is projected to range between $76 million and $86 million in 2025, with a mid-point of $81 million, excluding anticipated non-cash stock compensation[19] - Cash G&A for the three months ended June 30, 2025, was $28,385, compared to $34,552 in the same period of 2024, indicating a decrease of $6,167 or 17.88%[43]