Howard Hughes (HHH) - 2025 Q3 - Quarterly Results

Financial Performance - Net income from continuing operations was $119.4 million, or $2.02 per diluted share, compared to $96.5 million, or $1.95 per diluted share in the prior-year period, reflecting a year-over-year increase of 24%[6] - Net income attributable to common stockholders for Q3 2025 was $119.5 million, compared to $72.8 million in Q3 2024, reflecting a 64.2% increase[24] - The company reported an operating income of $189.6 million for Q3 2025, slightly down from $198.3 million in Q3 2024[24] - Total revenues for Q3 2025 reached $390.2 million, a 19.3% increase from $327.1 million in Q3 2024[24] - Total revenues for the nine months ended September 30, 2025, reached $499,730 thousand, up $66,067 thousand (15.2%) from $433,663 thousand in 2024[29] Cash Flow and Liquidity - Adjusted Operating Cash Flow for the quarter was $199 million, or $3.37 per diluted share, with full-year 2025 guidance raised to $440 million at the midpoint, an increase of $30 million or $0.54 per share[5][14] - Cash and cash equivalents as of September 30, 2025, were $1.46 billion, significantly up from $596.1 million at the end of 2024[26] - The company maintained a strong liquidity position with $1.5 billion in cash and cash equivalents, significantly increased year-over-year due to a $900 million investment from Pershing Square[11] Operating Performance - Total Operating Assets Net Operating Income (NOI) increased 5% year-over-year to $68 million, led by strong office and multifamily results[5][11] - Total Operating Assets NOI for the three months ended September 30, 2025, was $67,865 thousand, an increase of $3,063 thousand (4.7%) compared to $64,802 thousand in 2024[34] - Total Same Store NOI for the three months ended September 30, 2025, was $67,401, an increase of $3,480 or 5.4% compared to $63,921 in the same period of 2024[37] - Total Operating Assets NOI for the nine months ended September 30, 2025, reached $208,291, reflecting a $12,483 or 6.4% increase from $195,808 in the same period of 2024[37] Real Estate and Development - Master Planned Community (MPC) EBT reached a record $205 million, a 42% increase from $144.8 million in the prior-year period, driven by the sale of 349 residential acres at an average price of $786,000 per acre[11][16] - The company contracted $1.4 billion in future condo sales revenue, primarily through the pre-sale of 208 condominium units at Melia and 'Ilima, which are now 57% pre-sold[11][12] - New homes sold across communities totaled 429 units, reflecting a 13% year-over-year decline, yet homebuilder demand for land remains resilient[11] - Master Planned Communities land sales generated $248.5 million in Q3 2025, compared to $198.2 million in Q3 2024, representing a 25.4% increase[24] - The company broke ground on the Memorial Hermann Medical Office Building, a 51,000-square-foot facility, marking the first phase of approximately one million square feet of planned medical facilities[11] Expenses and Efficiency - General and administrative expenses for the nine months ended September 30, 2025, totaled $85,269, down from $91,752 in the same period of 2024[39] - Cash G&A for the three months ended September 30, 2025, was $25,696, down from $28,281 in the same period of 2024, indicating improved overhead efficiency[39] Future Outlook - The company anticipates continued growth in revenues and net income driven by strategic investments and market expansion initiatives[20] - The company reaffirmed its guidance for Total Operating Assets NOI to be up 2% to 6% year-over-year, with a mid-point of approximately $267 million[14]