Howard Hughes Holdings Inc. Reports Third Quarter 2025 Results

Core Insights - Howard Hughes Holdings Inc. reported record results across all business segments for Q3 2025, leading to an upward revision of full-year guidance and reinforcing a strong long-term cash flow outlook from condominium pre-sales [3][7][17] Financial Highlights - The company achieved a net income from continuing operations of $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 [7][27] - Adjusted Operating Cash Flow reached $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 from previous estimates [6][17] - Master Planned Community (MPC) Earnings Before Taxes (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 [5][18] Sales and Revenue - The company contracted $1.4 billion in future condominium sales revenue, primarily from the pre-sale of 208 units at Melia and 'Ilima in Ward Village [6][7] - Total revenues for the quarter were $390.2 million, up from $327.1 million in the prior-year period, with significant contributions from land sales and rental revenues [26] Operating Performance - Total Operating Assets Net Operating Income (NOI) increased by 5% year-over-year to $68 million, with strong performance in office and multifamily segments [6][9] - New homes sold across communities totaled 429 units, reflecting a 13% year-over-year decline, yet demand for land remains resilient [12][18] Strategic Developments - The company is reinvesting increased free cash flow into new developments, including the Melia and 'Ilima condominium towers, which are expected to enhance community value and generate future cash flows [3][6] - Subsequent to the quarter, the company completed construction of 1 Riva Row, a luxury multifamily development expected to generate $9.9 million of incremental NOI upon stabilization [10][12] Guidance and Outlook - Full-year 2025 guidance for Adjusted Operating Cash Flow is projected to range between $415 million and $465 million, with a midpoint of approximately $440 million [17] - MPC EBT guidance has been raised by $20 million to a midpoint of approximately $450 million, reflecting a year-over-year increase of 27% to 31% [17]