Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q1 2026 Earnings Presentation
63 slides from Howard Hughes's earnings presentation, May 8, 2026
Slide 1: 2025 HHH Shareholder Meeting
2025 HHH Shareholder Meeting HOWARD HUGHES
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made in this presentation that are not historical facts, including statements accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “realize,” “should,” “transform,” “would,” and oth
Slide 3: Agenda
Agenda 01 Proposals and Voting Results 9:00 – 9:15 a.m. 02 Howard Hughes Holdings Overview and Strategy (Ackman) 9:15 – 9:25 a.m. 03 Discussion of Potential Insurance Company (Israel / Ackman) 9:25 – 9:40 a.m. 04 Howard Hughes Communities Strategic Review (O’Reilly) 9:40 – 9:50 a.m. 05 Conclusion (A
Slide 4: Overview and Strategy
Overview and Strategy HOWARD HUGHES
Slide 5: Strategic Transaction With Pershing Square
Strategic Transaction With Pershing Square Investment of $900 Million to Transform HHH into a Diversified Holding Company Share Pershing Square purchased 9 million newly issued HHH shares for $100 per share, a 48% premium(1) Purchase Pershing Square beneficial ownership increased to ~46.9% Ownership
Slide 6: Board of Directors and Senior Leadership
Board of Directors and Senior Leadership • Independent directors remain the majority • Pershing Square holds three Board seats with Bill Ackman serving as Executive Chairman • New Members join Board: • Previously serviced as Chairman of the Investment Committee and CIO in the United Jean-Baptiste Ki
Slide 7: HHH Diversified Holding Company Structure
HHH Diversified Holding Company Structure Howard Hughes Holdings Inc. Howard Hughes Future Business Future Business Future Business Communities Investment Investment Investment Primary Real Estate Subsidiary Master Planned Communities Operating Assets Strategic Developments Platform will build a fas
Slide 8: HHH Insurance Opportunity
HHH Insurance Opportunity HOWARD HUGHES
Slide 9: Insurance Opportunity Strategic Rationale
Insurance Opportunity Strategic Rationale Insurance is an ideal business platform for HHH’s transition to a diversified holding company Leverages Pershing Square public market’s investment expertise via ability to 1. invest in marketable securities Cash generative nature and industry structure of in
Slide 10: HHH’s Insurance Opportunity
HHH’s Insurance Opportunity HHH is well-positioned to acquire an insurance subsidiary that leverages and builds upon core tenets of Berkshire Hathaway’s highly successful model: Holding Company Balance Sheet Investment Approach Structure Overcapitalization HOWARD HUGHES 10
Slide 11: Key Drivers of Return on Equity
Key Drivers of Return on Equity A property and casualty (“P&C”) insurer’s total return on equity can be analyzed as the sum of its underwriting return on equity and its investment return on equity Total P&C Insurer Return on Equity Underwriting Return on Equity Investment Return on Equity Underwriti
Slide 12: Typical P&C Insurer Operating Framework
Typical P&C Insurer Operating Framework A typical P&C insurer operates with the following high-level principles 1. Write net premiums in roughly equal proportion to equity capital 2. Target modest underwriting profitability (<100% combined ratio) 3. Deploy investment portfolio in principally fixed i
Slide 13: Premiums-to-Equity Ratio
Premiums-to-Equity Ratio P&C insurers tend to write annual net premiums in roughly equal proportion to their equity capital Net Premiums Earned / BoP Equity Capital Percentage | 2015 – 2024 Average 306% 190% 132% 123% 110% 95% 98% 70% 60% RenaissanceRe Chubb Cincinnati Financial Everest P&C Peer Tra
Slide 14: Underwriting Profitability
Underwriting Profitability P&C insurers target modest underwriting profitability (1 – Combined Ratio) through the insurance cycle GAAP Combined Ratio | 2015 – 2024 Average 97.0% 95.8% 94.6% 94.6% 93.7% 92.5% 92.8% 91.9% 89.8% Chubb RenaissanceRe Progressive W.R. Berkley P&C Peer Travelers Cincinnati
Slide 15: Typical P&C Insurers Suboptimize Investment Returns
Typical P&C Insurers Suboptimize Investment Returns A typical P&C insurer focuses on underwriting profitability but does not prioritize optimal asset allocation and investment performance Traditional P&C insurers are not well-equipped to pursue high-return equity strategies Insurance companies fin
Slide 16: Investment Portfolio Asset Allocation
Investment Portfolio Asset Allocation The investment portfolio of a typical P&C insurer is principally invested in fixed income securities (government and corporate bonds) Asset Class as % of Total Invested Assets | 12/31/2024 Balance Sheet Fixed Income (incl. preferred stock) Short-Term Investments
Slide 17: Invested-Assets-to-Equity Leverage Ratio
Invested-Assets-to-Equity Leverage Ratio A typical P&C insurer’s invested-assets-to-equity ratio generally ranges between ~2x to 3x, which is used to generate higher returns on equity from their investment portfolio Invested Assets / Equity Capital Leverage Ratio | 2015 – 2024 Average 3.6x 3.4x 3.2x
Slide 18: Illustrative Typical P&C Insurer Return on Equity
Illustrative Typical P&C Insurer Return on Equity (“ROE”) Typical P&C Insurer(1) Combined Ratio 95.0% Pre-Tax Underwriting Margin (1-CR) 5.0% Less: Taxes (21% Tax Rate) (1.1%) After-Tax Underwriting Margin 4.0% Earned Premiums / Equity 100% Underwriting Return on Equity 4.0% % of Inv. Return Assets
Slide 19: Berkshire Hathaway’s Differentiated Approach
Berkshire Hathaway’s Differentiated Approach Berkshire Hathaway is able to earn higher returns on equity with materially lower leverage than a typical insurer by optimizing its asset allocation Balance sheet is substantially overcapitalized relative to broader P&C industry Annual net premiums earn
Slide 20: Berkshire Hathaway vs. Typical P&C Insurer
Berkshire Hathaway vs. Typical P&C Insurer Typical P&C Insurer(1) Berkshire Hathaway(2) Premiums-to- ~ 100% ~ 20% - 40% Equity Capital of Equity Capital of Equity Capital Underwriting ~ 95% Combined Ratio < 95% Combined Ratio Profitability(2) Balance Sheet ~ 2.0x to 3.0x ~ 1.5x to 2.0x Leverage Inve
Slide 21: Berkshire Hathaway’s Model is Highly Advantaged
Berkshire Hathaway’s Model is Highly Advantaged Berkshire’s overcapitalized balance sheet, optimized asset allocation and holding company structure unlock powerful structural advantages Ability to rapidly scale up premium-writing capacity to pursue attractive business opportunities without having to
Slide 22: Berkshire Hathaway Equity Investment Track Record
Berkshire Hathaway Equity Investment Track Record Annualized Total Shareholder Return (including dividends) 10-Year Annualized Returns 5-Year Annualized Returns (12/31/2014 - 12/31/2024) (12/31/2019 - 12/31/2024) 14.5% 13.1% ~12% ~8% S&P 500 Berkshire Hathaway S&P 500 Berkshire Hathaway (1) Estimate
Slide 23: Illustrative Berkshire Hathaway ROE
Illustrative Berkshire Hathaway ROE Berkshire Typical P&C Insurer(1) Hathaway(2) Combined Ratio 95.0% 93.0% Overcapitalization provides significant Pre-Tax Underwriting Margin (1-CR) 5.0% 7.0% underwriting flexibility to scale up and Less: Taxes (21% Tax Rate) (1.1%) (1.5%) down premium-writing capa
Slide 24: The Howard Hughes Insurance Opportunity
The Howard Hughes Insurance Opportunity HHH’s insurance subsidiary (the Howard Hughes Insurance Company, “HHIC”) provides an opportunity to build a uniquely differentiated insurance company that can achieve industry-leading returns with a lower risk profile A number of industry-leading companies and
Slide 25: Pershing Square’s Investment Track Record (Net Returns)
Pershing Square’s Investment Track Record | Net Returns Annualized Net Return Since Inception Since Permanent Capital Era Last Five Calendar Years (January 2004 – Current) (January 2018 – Current) (December 2019 – December 2024) 600 bp 970 bp 770 bp Outperformance Outperformance Outperformance 23.5%
Slide 26: Pershing Square’s Investment Track Record (Gross Returns)
Pershing Square’s Investment Track Record | Gross Returns Annualized Gross Return (excluding fees) Since Inception Since Permanent Capital Era Last Five Calendar Years (January 2004 – Current) (January 2018 – Current) (December 2019 – December 2024) 28.4% 27.9% 1,110 bp 1,460 bp 1,340 bp Outperforma
Slide 27: Pershing Square Cumulative Returns vs. S&P 500
Pershing Square Cumulative Returns vs. S&P 500 Pershing Square 21-Year Cumulative Returns 7,000% PSLP / PSH 6,500% Gross Return(1) 6,516% 6,000% 66.2x 5,500% 5,000% 4,500% 4,000% PSLP / PSH 3,500% Net Return(2) (1.5% Mgmt. & 3,000% 20%/16% Perf. Fee) 2,500% 2,525% 26.2x 2,000% 1,500% S&P 500 1,000%
Slide 28: Fee-Free Investment Expertise from Pershing Square
Fee-Free Investment Expertise from Pershing Square Will be a Material Competitive Advantage for HHIC Pershing Square will manage HHIC’s investment portfolio as part of its HHH broader Services Agreement with no additional fees charged HHIC will not incur any of the substantial fixed costs required t
Slide 29: HHIC’s Investment and Underwriting Approach
HHIC’s Investment and Underwriting Approach Write annual net premiums equal to ~50% of equity capital, with flexibility to scale ratio up or down depending on the insurance cycle Target strong through-cycle underwriting profitability Invested-assets-to-equity ratio to equal ~1.5x to 2.0x Float (loss
Slide 30: Illustrative HHIC ROE
Illustrative HHIC ROE Berkshire Typical P&C Insurer(1) Illustrative HHIC(3) Hathaway(2) Holding company structure, equity- focused asset allocation and Combined Ratio 95.0% 93.0% 94.0% balance sheet overcapitalization Pre-Tax Underwriting Margin (1-CR) 5.0% 7.0% 6.0% Less: Taxes (21% Tax Rate) (1.1%
Slide 31: Illustrative HHIC ROE Sensitivity
Illustrative HHIC ROE Sensitivity With reasonable expectations of underwriting profitability and annual investment returns approaching Pershing Square’s historical track record, HHIC’s long-term ROE could well exceed 20% (1) Illustrative HHIC ROE Sensitivity Investment Return on Common Stocks 12.5%
Slide 32: Holding Company Creates Ideal Incentive Structure
Holding Company Creates Ideal Incentive Structure As a subsidiary of a larger holding company, HHIC can create the optimal incentive structure to effectively navigate the insurance cycle Emphasis will be on underwriting profitability rather than growth HHIC will not have any top-down production goal
Slide 33: Holding Company Credit and Capital Support
Holding Company Credit and Capital Support Credit and capital support from HHH (HHIC’s holding company) will materially strengthen HHIC’s credit profile and underwriting flexibility Favorable regulatory treatment Favorable ratings agency treatment Enhanced customer perception of counterparty credit
Slide 34: Pershing Square Enhances Credit Support
Pershing Square Enhances Credit Support HHIC will also benefit from its holding company, HHH, having a well-capitalized 47% owner in Pershing Square PSH and Pershing Square private $20 billion in total assets and $17 billion in equity(1) funds (32% HHH ownership) PSH was upgraded to an A- rating
Slide 35: Long-Term Track Record of Providing Capital to HHH
(1) (1) Long-Term Track Record of Providing Capital to HHH Pershing Square has a long-term track record of providing capital support to HHH, which we believe will be viewed favorably by ratings agencies Pershing Square, along with other investors, initially capitalized the company with a November 20
Slide 36: HHH Holding Company Structure
HHH Holding Company Structure HHIC Benefits from Two Layers of Capital Support Layer Pershing Square Public Shareholders (Funds and PS HoldCo) 1 47% Ownership 53% Ownership Layer Howard Hughes Holdings Inc. (NYSE: HHH) 2 Howard Hughes Illustrative HHIC Future Operating Communities Insurance Business
Slide 37: Key Status Update
Key Status Update HOWARD HUGHES
Slide 38: Key Status Update
Key Status Update Actively evaluating several small-to-mid-capitalization P&C Exploring potential acquisition (re)insurance targets opportunities to accelerate launch of HHIC Engaged an investment bank to help identify and source potential acquisition opportunities Engaged in discussions with
Slide 39: Additional Disclaimers and Notes to Performance Results of Pershing Square
Additional Disclaimers and Notes to Performance Results of Pershing Square All performance information herein is presented as of June 30, 2025, unless otherwise noted. This presentation includes unaudited information regarding the track record and performance data of PSCM (the “Track Record” or “P
Slide 40: Additional Disclaimers and Notes to Performance Results of Pershing Square
Additional Disclaimers and Notes to Performance Results of Pershing Square The inception date for PSLP is January 1, 2004. In 2004, PSCM earned a $1.5 million (approximately 3.9%) annual management fee and PSLP’s general partner earned a performance allocation equal to 20% above a 6% hurdle from P
Slide 41: Howard Hughes Communities
Driland Wughea COMMUNITIES
Slide 42: Howard Hughes Communities
Howard Hughes Communities HOWARD HUGHES 42 42
Slide 43: HHC Competitive Advantages Drive Value Creation
HHC Competitive Advantages Drive Value Creation Commercial amenities New residents Perpetual Cycle increase the value of spark demand for more of Value Creation HHC’s residential land commercial amenities HHC is the dominant owner of commercial assets in our MPCs Little-to-No A disciplined, demand-d
Slide 44: HHC Competitive Advantages Drive Value Creation
HHC Competitive Advantages Drive Value Creation Commercial amenities New residents Perpetual Cycle increase the value of spark demand for more of Value Creation HHC’s residential land commercial amenities HHC is the dominant owner of commercial assets in our MPCs Little-to-No A disciplined, demand-d
Slide 45: HHC Competitive Advantages Drive Value Creation
HHC Competitive Advantages Drive Value Creation Commercial amenities New residents Perpetual Cycle increase the value of spark demand for more of Value Creation HHC’s residential land commercial amenities HHC is the dominant owner of commercial assets in our MPCs Little-to-No A disciplined, demand-d
Slide 46: HHC Competitive Advantages Drive Value Creation
HHC Competitive Advantages Drive Value Creation Commercial amenities New residents Perpetual Cycle increase the value of spark demand for more of Value Creation HHC’s residential land commercial amenities HHC is the dominant owner of commercial assets in our MPCs Little-to-No A disciplined, demand-d
Slide 47: Land Appreciation Offsets Shrinking Land Bank
Land Appreciation Offsets Shrinking Land Bank MPC Gross Asset Value 2017 GAV 2025 GAV (2) $3.7B $4.8B Source: Company filings and data. HOWARD HUGHES Note: GAV in $ millions. Price per acre in $ thousands. As of June 30, 2025. 47
Slide 48: Land Appreciation Offsets Shrinking Land Bank
Land Appreciation Offsets Shrinking Land Bank MPC Gross Asset Value 2017 GAV Since 2017 4,052 $670k $2.7B Total Acres Sold X Weighted- Avg. Price Per Acre = Total Land Sales Revenue (1) $3.7B Source: Company filings and data. HOWARD HUGHES Note: GAV in $ millions. Price per acre in $ thousands. As o
Slide 49: Land Appreciation Offsets Shrinking Land Bank
Land Appreciation Offsets Shrinking Land Bank MPC Gross Asset Value 2017 GAV Since 2017 4,052 $670k $2.7B Total Acres Sold X Weighted- Avg. Price Per Acre = Total Land Sales Revenue (1) Residential Price Per Acre (2) $3.7B Summerlin Bridgeland The Woodlands Hills +164% +61% +49% Source: Company fili
Slide 50: Land Appreciation Offsets Shrinking Land Bank
Land Appreciation Offsets Shrinking Land Bank MPC Gross Asset Value 2017 GAV Since 2017 2025 GAV (3) 4,052 $670k $2.7B Total Acres Sold X Weighted- Avg. Price Per Acre = Total Land Sales Revenue (1) Residential Price Per Acre $4.8B (2) $3.7B Summerlin Bridgeland The Woodlands Hills +164% +61% +49% S
Slide 51: Anticipated Stabilized Cash Flows Significantly Higher than Current Levels
Anticipated Stabilized Cash Flows Significantly Higher than Current Levels (1) 2025 Adjusted Operating Cash Flow $697M Condo Profit > $0M MPC $410M EBT > $430M ($287 M) Cash ($81 M) G&A > Operating Asset NOI > $267M Interest ($206 M) Expense > Recurring Income Recurring Expenses Source: Company fili
Slide 52: Meaningful NOI Runway Remains Within HHC’s Portfolio
Meaningful NOI Runway Remains Within HHC’s Portfolio 2025 Adjusted Operating Cash Flow(1) Roadmap to Stabilized NOI by Existing & Under Construction Developments $15M $355M $73M Incremental Property NOI $697M $267M Multifamily 1 Riva Row $ $ 9.9 9.9 Condo Profit > $0M Office One Bridgeland Green $ $
Slide 53: Record MPC Results Continue to Exceed Expectations
Record MPC Results Continue to Exceed Expectations (1) 2025 Adjusted Operating Cash Flow(1) Above Trend MPC Earnings at All-Time Highs ~$300M Actuals Guidance $430M Historical MPC EBT Avg.(2) $341M $349M $317M $283M $264M $209M $697M $166M Condo Profit > $0M 2020 2021 2022 2023 2024 2025 MPC Earning
Slide 54: Condos Continue to Generate High Demand
Condos Continue to Generate High Demand (1) 2025 Adjusted Operating Cash Flow(1) Robust Pipeline of Condominium Sales over the next 5 Years Under Construction Pre-Sales Ulana The Park Kalae Ritz-Carlton The Launiu Melia ‘Ilima $697M Condo Profit > $0M MPC EBT > $430M 696 Units 545 Units 329 Units 11
Slide 55: Anticipated Stabilized Cash Flows Significantly Higher than Current Levels
Anticipated Stabilized Cash Flows Significantly Higher than Current Levels (1) 2025 Adjusted Operating Cash Flow Est. Stabilized Adjusted Operating Cash Flow $955M – $1.0B Condo $175M Profit > $200M $697M Condo Profit > $0M $690M $425M MPC EBT > $450M MPC $410M EBT > $430M ($287M) ($287 M) Cash ($81
Slide 56: Howard Hughes
HOWARD HUGHES
Slide 57: Thank You
Thank You HOWARD HUGHES
Slide 58: Appendix
Appendix Debaland Wheghea
Slide 59: HHC’s Fortress Balance Sheet
Debt Maturities by Segment Over the Next 5 Years (1) HHC’s Fortress Operating Assets MPC Balance Sheet Strategic Development Condominium Development Corporate $2.0B Years Until Maturity Undrawn Line of $1.8B <1 Credit Capacity 6+ 5% 35% $515M <2 $650M 15% Unrestricted 92% Cash of Debt is Fixed $1.1B
Slide 60: HHC Significantly Reduced and Stabilized Cash G&A
HHC Significantly Reduced and Stabilized Cash G&A (1) Significantly Reduced and Stabilized Cash G&A 2025 Guidance Cash G&A Cash G&A G&A Percent Actuals Guidance of Total Assets $76M - $86M $81M $137M Guidance Range 2025 Mid-Point Cash G&A guidance remains unchanged, despite Stabilization of G&A incl
Slide 61: Self-Funding Business Model That Strengthens Over Time
Self-Funding Business Model That Strengthens Over Time Operating Assets Master Planned Communities Operating Assets NOI Trajectory Earnings Before Taxes $355 $430 33% Projected 14% $267 Growth CAGR $114 2025 Guidance 2025 Stabilized 2015 2025 Guidance Condos Under Construction In Pre-Sales Ulana The
Slide 62: Reconciliation of Operating Assets Segment EBT to NOI
Reconciliation of Operating Assets Segment EBT to NOI YTD Q2 YTD Q2 thousands Q2 2025 Q2 2024 2025 2024 2024 2023 2022 2021 2020 Total revenues $ 116,446 $ 110,760 $ 230,448 $ 217,760 $ 444,300 $ 410,254 $ 401,304 $ 415,104 $ 365,174 Total operating expenses (49,467) (47,610) (98,284) (93,764) (194,
Slide 63: Reconciliation of Adjusted Operating Cash Flow Performance Measure
Reconciliation of Adjusted Operating Cash Flow Performance Measure Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Year Ended December 31, 2024 Three (per (per (per Months Six Months diluted diluted diluted Ended Ended Year Ended thousands except per share amounts share) share) share
Howard Hughes Holdings — Q1 2026 Earnings Presentation on 6ix