Latest news with #HHH
Yahoo
5 days ago
- Business
- Yahoo
Howard Hughes Holdings Inc (HHH) Q2 2025 Earnings Call Highlights: Record Land Sales and ...
Adjusted Operating Cash Flow: $91 million or $1.64 per diluted share for Q2. MPC EBT: $102 million in Q2, driven by land sales at record prices. Land Sales: 111 acres sold at an average price of $1.35 million per acre, a 29% increase over last year. Operating Assets NOI: $69 million, a 5% increase year-over-year. Office NOI: $35 million, a 6% increase year-over-year. Multifamily NOI: $17 million, a 19% increase year-over-year. Retail NOI: $13 million, a 7% decrease year-over-year due to nonrecurring collections in the prior year. Condo Presales: 17 units contracted, representing $35 million in future revenue. Full Year Adjusted Operating Cash Flow Guidance: Increased to $385 million to $435 million, midpoint of $410 million. Full Year MPC EBT Guidance: Increased to approximately $430 million at the midpoint. Full Year Operating Assets Guidance: Increased to $267 million. Cash and Liquidity: $1.4 billion in cash and $515 million in undrawn lines of credit. Total Debt: $5.2 billion, with 92% fixed or hedged at an average rate of 5.1%. Warning! GuruFocus has detected 4 Warning Signs with HHH. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Howard Hughes Holdings Inc (NYSE:HHH) reported an exceptional second quarter with adjusted operating cash flow of $91 million, or $1.64 per diluted share. The company achieved record land sales prices per acre in its Master Planned Communities (MPCs), with Summerlin and Bridgeland leading the way. Operating assets set a new record quarterly NOI, with a 5% year-over-year growth, driven by strong performance in office and multifamily portfolios. Condo presales remained strong, particularly at The Launiu, which is 67% presold, and new projects Melia and 'Ilima have seen exceptional demand. Howard Hughes Holdings Inc (NYSE:HHH) increased its full-year guidance for adjusted operating cash flow, reflecting strong performance in MPC land sales and operating asset NOI. Negative Points New home sales in the second quarter declined due to reduced inventory in Summerlin and regulatory delays in Bridgeland. The retail portfolio experienced a 7% year-over-year reduction in NOI, primarily due to nonrecurring collections on tenant reserves in the prior year. The national housing market has shown signs of softening, which could impact future demand. The company faces challenges in maintaining high land sales volumes amidst higher interest rates and housing affordability concerns. Howard Hughes Holdings Inc (NYSE:HHH) is undergoing a strategic shift towards becoming a diversified holding company, which may introduce complexity and execution risk. Q & A Highlights Q: Can you provide more details on how Howard Hughes Holdings' Master Planned Communities (MPC) business is performing despite challenges in the single-family market? A: David O'Reilly, CEO, explained that their MPCs have shown resilience due to the quality of assets, including top schools and amenities. The demand for homes in their communities remains strong across various price points, from first-time buyers to luxury buyers. This demand is driven by the premium quality of their communities, which makes their land attractive to homebuilders even in a challenging market. Q: Bill, you previously mentioned creating an insurance entity. Are you now considering acquiring an existing insurance company instead? A: William Ackman, Executive Chairman, stated that they are focusing on acquiring an existing insurance company rather than building one from scratch. This approach offers a running start with an established team and infrastructure. They are optimistic about finding a suitable acquisition that will become a significant part of Howard Hughes Holdings. Q: How should we think about the earnings potential from the insurance business versus the stock portfolio? A: Ackman explained that, similar to Berkshire Hathaway, the investment part of the insurance operation is expected to be more significant to profitability than the insurance business itself. They aim to compound equity at a high rate, focusing on the growth of intrinsic value rather than quarterly earnings. Q: What changes have been made within Howard Hughes Holdings since Pershing Square's involvement? A: Ackman and O'Reilly noted that they have centralized development expertise to improve efficiency and reduce G&A costs. They have not changed the core real estate operations but are focusing on high-return projects. The strategic shift includes leveraging Pershing Square's investment expertise and exploring diversified capital allocation opportunities. Q: How do you address concerns about the complexity of Howard Hughes Holdings' business model? A: Ackman acknowledged the complexity but emphasized the long-term value creation potential. By transitioning to a diversified holding company with a strong insurance operation, they aim to attract a broader investor base and reduce the perceived high cost of capital associated with their real estate operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
6 days ago
- Business
- Washington Post
Howard Hughes Holdings: Q2 Earnings Snapshot
THE WOODLANDS, Texas — THE WOODLANDS, Texas — Howard Hughes Holdings Inc. (HHH) on Wednesday reported a loss of $12.1 million in its second quarter. On a per-share basis, the The Woodlands, Texas-based company said it had a loss of 22 cents. Earnings, adjusted for non-recurring costs, were 44 cents per share.
Business Wire
05-08-2025
- Business
- Business Wire
Pershing Square Holdings, Ltd. ('PSH') Announces Amendments to its Investment Management Agreement Which Will Reduce Fees Paid by PSH With Respect to It's Holdings of Common Stock in Howard Hughes Holdings, Inc. ('HHH')
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN: PSH) (LN: PSHD) today announced that its investment manager, Pershing Square Capital Management, L.P. (the 'Investment Manager'), proposed certain amendments to PSH's Investment Management Agreement (the 'IMA') that will reduce the management fees paid by PSH. The Board of PSH approved these amendments to the IMA. PSH also announced today that it, along with Pershing Square, L.P. ('PSLP'), Pershing Square International, Ltd. ('PS International', and together with PSH and PSLP, the 'Funds'), the Investment Manager's parent company, Pershing Square Holdco, L.P. ('ManagementCo'), and the Investment Manager are entering into a Voting Proxy Agreement (the 'Voting Proxy Agreement') appointing ManagementCo as designated proxy to vote all common stock of HHH owned by the Funds. Amendments to IMA The amendments to the IMA follow ManagementCo's investment of $900 million to acquire nine million newly issued shares of common stock with a par value $0.01 of HHH (the 'Common Stock') on May 5, 2025 (the 'Transaction'). After giving effect to the Transaction, ManagementCo, PSH and the other Funds collectively own approximately 46.9% of HHH common stock outstanding. As previously announced, in connection with the Transaction, HHH entered into a Services Agreement with the Investment Manager pursuant to which the Investment Manager will provide investment, advisory, and other ancillary services to HHH (the 'Services Agreement'), and HHH will pay the Investment Manager a quarterly fee further described in the following joint press release: The amendments to the IMA provide for reductions to the management fees otherwise payable by PSH to the Investment Manager. The reduction will be an amount equal to the fees payable to the Investment Manager by HHH that are attributable to the HHH common stock held by PSH. Voting Proxy Agreement Under the IMA, the Investment Manager has sole authority to determine how to vote securities held by PSH, including common stock of HHH, unless otherwise specifically agreed to in writing by PSH and the Investment Manager. PSH's entry into the Voting Proxy Agreement, joining the other Funds in appointing ManagementCo as designated proxy to vote all common stock of HHH owned by the Funds, is intended to support the strategic purposes of the Transaction and to address legal and regulatory considerations, among other reasons. This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any securities. The Investment Manager is a related party of PSH under UKLR 11 for the purposes of UKLR 8. The amendment of the IMA and corresponding reduction of management fees otherwise payable by PSH to the Investment Manager is a transaction for the benefit of PSH with no financial benefit to the Investment Manager and, as such, falls below the threshold for a relevant related party transaction specified in UKLR 11. About Pershing Square Holdings, Ltd. Category: (PSH:Other)
Washington Post
07-05-2025
- Business
- Washington Post
Howard Hughes Holdings: Q1 Earnings Snapshot
THE WOODLANDS, Texas — THE WOODLANDS, Texas — Howard Hughes Holdings Inc. (HHH) on Wednesday reported net income of $10.5 million in its first quarter. The The Woodlands, Texas-based company said it had net income of 21 cents per share.
Business Wire
05-05-2025
- Business
- Business Wire
Pershing Square Holdings, Ltd. ('PSH') Notes the Transaction Announced Today by Howard Hughes Holdings ('HHH') and PSH's Investment Manager
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today noted that its investment manager, Pershing Square Capital Management, L.P. (the 'Investment Manager'), the Investment Manager's holding company, Pershing Square Holdco, L.P. ('Holdco', and together with the Investment Manager, 'Pershing Square'), and Howard Hughes Holdings, Inc. jointly issued the following release announcing Holdco's investment of $900 million to acquire nine million newly issued shares of HHH: After giving effect to the acquisition, Holdco, PSH and other Pershing Square funds will collectively own approximately 46.9% of HHH common stock outstanding. Pershing Square has generally agreed to limit its voting power to 40% and its beneficial ownership to 47%. PSH Fee Reduction In connection with the acquisition, HHH has entered into a Services Agreement with the Investment Manager, pursuant to which the Investment Manager will provide investment, advisory, and other ancillary services to HHH, and HHH will pay the Investment Manager a quarterly fee further described in the joint press release. In connection with the foregoing, the Investment Manager will reduce the management fees paid by PSH by an amount equal to the fees paid by HHH to the Investment Manager that are attributable to the HHH common stock held by PSH. This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any securities. About Pershing Square Holdings, Ltd. Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) is an investment holding company structured as a closed‐ended fund that makes concentrated investments principally in North American domiciled companies. Category: (PSH:Other)
