And I think Howard Hughes Holdings Inc. over time also suffered a bit from shareholders trying to figure out how do I think about this business. In the conventional public company, there is usually a certain amount of GAAP earnings or a number or a free cash flow number, and, you know, people want a simple rubric for thinking about it. You know, what multiple do I put on this number, how do I track this number over time? And, you know, the multiple is determined based on, you know, the persistency and the g ...

Core Insights - Howard Hughes Holdings Inc. reported strong full-year results for 2025, marking a significant transformation into a diversified holding company with a focus on real estate and insurance platforms [4][6] - The company announced a $900 million investment from Pershing Square and an agreement to acquire Vantage Group Holdings for approximately $2.1 billion, enhancing its strategic reach and long-term shareholder value [4][6] - The Master Planned Communities (MPC) segment achieved record earnings before taxes (EBT) of $476 million, a 36% increase from the previous year, driven by strong residential land sales [10][19] Full Year 2025 Highlights - Net income from continuing operations was $123.8 million, or $2.21 per diluted share, down from $285.2 million, or $5.73 per diluted share in 2024 [6] - Adjusted Operating Cash Flow was $446 million, or $7.97 per diluted share, compared to $535 million, or $10.71 per diluted share in the prior year [6] - Total Operating Assets Net Operating Income (NOI) increased by 8% year-over-year to $276 million, with strong performance in office and multifamily sectors [6][10] Fourth Quarter 2025 Highlights - The company reported a net income from continuing operations of $5.7 million, or $0.10 per diluted share, compared to $162.3 million, or $3.25 per diluted share in Q4 2024 [6] - Adjusted Operating Cash Flow for the quarter was $93 million, or $1.57 per diluted share [6] - Total Operating Assets NOI for the quarter increased by 11% year-over-year to $68 million, driven by robust office and retail results [6][10] Strategic Developments - The company contracted $1.6 billion in future condo revenue, primarily through pre-sales at Melia and 'Ilima, with 220 units pre-sold [6][19] - The grand opening of Teravalis™, a 37,000-acre master planned community, was celebrated, marking a significant development milestone [6] - The company plans to evolve its reporting framework post-acquisition of Vantage, focusing on long-term segment objectives aligned with internal capital management [14][19] Financial Position - The company maintains a strong liquidity position with $1.5 billion in cash and cash equivalents and $1.2 billion of undrawn lender commitments available for property development [6] - Total assets increased to $10.64 billion as of December 31, 2025, compared to $9.21 billion in 2024 [29] - Total liabilities stood at $6.80 billion, with total stockholders' equity at $3.78 billion, reflecting a significant increase from the previous year [29]

Strategic Transaction - Pershing Square invested $900 million in Howard Hughes Holdings Inc (HHH) to transform it into a diversified holding company[12] - Pershing Square purchased 9 million newly issued HHH shares for $100 per share, representing a 48% premium[13] - Pershing Square's beneficial ownership increased to approximately 469%, with voting power capped at 40% and beneficial ownership limited to 47%[13] - HHH will pay Pershing Square a quarterly fee of $375 million plus an incentive fee equal to 0375% of the growth in HHH's equity market capitalization[13] Portfolio Highlights - HHC's portfolio includes 72 million square feet of office space, 26 million square feet of retail space, 5,855 multifamily units, and 3,046 condos closed[23] - HHC has 7 communities and 34,000 acres of raw land[23] - Master Planned Communities (MPC) segment generated $349 million in 2024 EBT[25] - Operating Assets segment generated $257 million in 2024 NOI[30] - Strategic Developments segment generated $211 million in 2024 Adjusted Condo Gross Profit[27] Financial Performance - The company anticipates stabilized adjusted operating cash flow between $955 million and $1 billion, compared to $440 million in 2025[56] - The company's 2025 Adjusted Operating Cash Flow is comprised of $717 million Operating Assets NOI, $450 million MPC EBT, $0 million Condo Profit, ($196 million) Interest Expense, and ($81 million) Cash G&A[53, 56] - MPC Gross Asset Value increased from $37 billion in 2017 to $44 billion in 2025[49]

Core Points - Howard Hughes Holdings Inc. will release its second quarter earnings for 2025 on August 6, 2025, after market close, and will hold a conference call on August 7, 2025, at 10:00 AM ET [1] - The earnings call will be accessible via a live webcast, and participants can register for a Q&A session through the company's registration webpage [2] - Howard Hughes Holdings Inc. operates a diverse portfolio of commercial, residential, and mixed-use real estate across the U.S., with notable developments in Texas, Nevada, Arizona, Hawaii, and Maryland [3]