Howard Hughes Holdings Inc. · NYSE:HHH
Howard Hughes — Q1 2025 Earnings Presentation
48 slides from Howard Hughes's earnings presentation, May 8, 2025
Slide 1: The HHH Opportunity 1Q 2025
The HHH Opportunity 1Q 2025 Dhward Drughea
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: 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 4: HHH Diversified Holding Company Structure
HHH Diversified Holding Company Structure • Independent directors remain the majority • Current HHH leadership team—led by CEO, Board • Pershing Square holds three Board seats with Senior David O’Reilly, is unchanged Structure Bill Ackman serving as Executive Chairman Leadership • Ryan Israel named
Slide 5: HHH at a Glance
HHH at a Glance Howard Hughes is the country’s premier developer HHH Portfolio of large-scale master planned communities Highlights Proven track record of developing the most sought-after 7.0M SF 2.8M SF places to live in the nation Office Retail Self-funding business cycle, using proceeds from land
Slide 6: HHH Segments at a Glance
HHH Segments at a Glance Master Planned Operating Strategic Developments Communities Assets Residential & Condo projects and Diversified real estate commercial land sales development of future portfolio primarily in in large-scale master operating assets mixed-use planned communities environments $3
Slide 7: Building the Most Sought-After Communities in the Nation
Building the Most Sought-After Communities in the Nation Best-in-Class Community Offerings ▪ Universal quality with a focus on safety and community ▪ Top-tier public and private K-12 school systems ▪ Variety of housing options ▪ Wide selection of shopping and dining ▪ Premier office space for reside
Slide 8: HHH MPCs are Situated in Affluent and Growing Markets
HHH MPCs are Situated in Affluent and Growing Markets… HOUSTON • Over 40,000 acres with population of 150,000+ The Woodlands, Bridgeland, • In the pathway of Houston’s significant growth The Woodlands Hills LAS VEGAS • Strategically located nine miles from Las Vegas Strip Summerlin • 22,500 acres wi
Slide 9: …and are Consistently Recognized as Exceptional Communities
…and are Consistently Recognized as Exceptional Communities ◦ Top 3 Best City to Live in America – Niche.com (2021 - 2024) ◦ Best City to buy a home (2023-2024) ◦ Largest MPC in world to receive LEED Precertification ◦ #7 Best-selling MPC in the country – RCLCO (2024) ◦ Master-Planned Community of t
Slide 10: Master Planning Process
Master Planning Process Infrastructure Land Sales to Initial Master Planning Development Home Builders Rental cash flow Land sales fund funds future future vertical horizontal development development Develop Neighborhood Commercial Land Sales Develop Office Buildings Retail, and Grocery for Churches
Slide 11: HHH Competitive Advantages Drive Value Creation
HHH Competitive Advantages Drive Value Creation HHH is the dominant owner of commercial assets in our MPCs Little to No Competition in Office Multifamily Undeveloped Land our MPCs Build just to meet demand, outperforming in all market cycles Operating G&A MPC EBT Self-Funding Assets …Funds Future Bu
Slide 12: History of Delivering Outsized Results
History of Delivering Outsized Results Commercial Residential (2) Significant Land Price Appreciation (1) Robust Operating Asset NOI Growth Commercial amenities Total Operating Asset NOI (in $ millions) Residential Price Per Acre (in $ thousands) increase value of (3) HHH’s residential land The Wood
Slide 13: Land Appreciation Offsets Shrinking Land Bank
Land Appreciation Offsets Shrinking Land Bank MPC Gross Asset Value 2017 GAV Since 2017 2025 GAV (2) 3,942 $651k $2.6B Total Acres Sold X Weighted- Avg. Price Per Acre = Total Land Sales Revenue (1) Residential Price Per Acre $4.8B (3) $3.7B Summerlin Bridgeland The Woodlands Hills +147% +57% +46% S
Slide 14: Adjusted Operating Cash Flows Reflect Strong Results
Adjusted Operating Cash Flows Reflect Strong Results Anticipated 2025 Development Spending (1) 2025 Adjusted Operating Cash Flow Capital Allocation Decisions Horizontal Development $637M Future Share Debt $350M Developments Buybacks Paydown ($287M) • Investing in current developments significantly i
Slide 15: HHH has Strong Liquidity and Manageable Near-Term Maturities
HHH has Strong Liquidity and Manageable Near-Term Maturities 94% of Debt is Fixed or Swapped/Capped 81% of Debt due in 2027 or Later (1) Source: Company filings and data. HOWARD HUGHES Note: In $ millions. As of March 31, 2025. 15 (1) Excludes $38 million in deferred financing costs.
Slide 16: Master Planned Communities
Master Planned Communities Dorward Druaghee
Slide 17: MPCs at a Glance
MPCs at a Glance The Woodlands Bridgeland Summerlin Teravalis Founded in 1972, with Started in 2010 and Started by Howard Acquired in 2021, largely commercial currently undergoing Hughes in 1991, with a selling first lots to land remaining significant commercial strong commercial builders in 2024 wi
Slide 18: MPCs Located in Low-Cost, Low-Tax, Pro-Business Regions
MPCs Located in Low-Cost, Low-Tax, Pro-Business Regions Unmatched Affordability in HHH’s Regions Relative to Other Large MSAs Median Home Price / SF Salary Needed to Buy Median-Priced Home Cost of Living Index Top Marginal State Tax Rate HOWARD HUGHES Source: Bestplaces.net, Realtor.com, HSH, Tax Fo
Slide 19: Situated in Markets Well-Positioned for Future Growth
Situated in Markets Well-Positioned for Future Growth… HHH’s MPCs Attract Superior Demographics Average Household Income Median Home Value % College Graduates Influx of residents seeking a better quality of life reflected in demographics compared to nearby MSAs & national statistics HOWARD HUGHES So
Slide 20: Single-Family Housing Options
Single-Family HHH MPCs offer a variety of single-family housing options which attract a wide range of residents with different age and income Housing Options profiles who aspire to live in a beautifully master planned city SINGLE-FAMILY DETACHED SINGLE-FAMILY ATTACHED CUSTOM HOMES MPC land planning,
Slide 21: HHH Communities Offer Homes at a Wide Range of Price Points
HHH Communities Offer Homes with at a Wide Range of Price Points Price Range of New Homes Sold in 2024 Summerlin Bridgeland The Woodlands Hills HOWARD HUGHES Source: Company filings and data. 21 Note: In $ thousands. As of December 31, 2024.
Slide 22: MPC Performance Trends Remain Resilient
MPC Performance Trends Remain Resilient New Home Sales Activity is Strong Residential Acres Sold Expected to Rise HOWARD HUGHES Source: Company filings and data. 22 Note: As of December 31, 2024.
Slide 23: Howard Hughes Land Appreciates in Value
Howard Hughes Land Appreciates in Value Price per acre, $ in thousands Historical Residential Price per Acre Summerlin Bridgeland The Woodlands Hills Delivering Long-Term Consistent Appreciation in Value HOWARD HUGHES Source: Company filings and data. 23 Note: (1) Includes an undeveloped 216-acre su
Slide 24: MPC EBT Continued Strength Ahead
MPC EBT Continued Strength Ahead A New TrendNew is Emerging in Continued Home Sales MPC Performance Strength Post-Covid ’15-’20 Average MPC EBT: $194M ’21-’24 Average MPC EBT: $323M Low FY 2025 EBT Guidance (vs. FY 2024) • A continued tight supply of resale homes and limited vacant lot inventories a
Slide 25: Floreo: Development Taking Shape
Floreo: Development Taking Shape Seven Homebuilders Contracted in Floreo as Momentum Picks Up Floreo – Land Sales in Village 2 and 3 883 Lots Sold to Date $778k (1) Price Per Acre HOWARD HUGHES Source: Company filings and data. 25 Note: As of March 31, 2025. (1) Weighted-average price per acre achie
Slide 26: HHH Holds Significant Acreage for Future Development
HHH Holds Significant Acreage for Future Development Build-out Timeline Current 2030 2035 2040 2045 2050 2055 2080 Residential 34 acres Commercial 728 acres Residential 677 acres Commercial 173 acres Residential 1,363 acres Commercial 1,070 acres Residential 2,414 acres Commercial 473 acres Resident
Slide 27: Operating Assets
Operating Assets Dorward Druaghee
Slide 28: HHH Owns a Diversified Mix of Commercial Real Estate
HHH Owns a Diversified Mix of Commercial Real Estate Office Multifamily Retail ▪ Size: 7.0M SF ▪ Size: 5,855 units ▪ Size: 2.8M SF ▪ Stabilized Leased %: 88% ▪ Stabilized Leased %: 96% ▪ Stabilized Leased %: 96% ▪ In-Place NOI: $128M ▪ In-Place NOI: $77M ▪ In-Place NOI: $48M ▪ Stabilized NOI: $176M
Slide 29: NOI Growth Through Development
NOI Growth Through Development Historical NOI Progression NOI % Mix Total Operating Asset NOI (in $ millions) (1) Stabilized NOI by Asset Stabilized NOI by Region HOWARD HUGHES Note: NOI in $ millions. (1) Estimated Stabilized NOI total is inclusive of projects under construction. 29 Prior year NOI
Slide 30: Meaningful NOI Runway Remains Within HHH's Portfolio
Meaningful NOI Runway Remains Within HHH’s Portfolio Roadmap to Stabilized NOI by Existing & Under Construction Developments Incremental Property NOI Multifamily $ 9.9 1 Riva Row $ 9.9 Incremental Office $ 1.8 Asset Type NOI One Bridgeland Green $ 1.8 Office $ 45.7 Retail $ 4.4 Retail $ 17.1 The Par
Slide 31: Operating Assets Performance: Office
Operating Assets Performance: Office 10-Year NOI Performance Premier Office Assets Add Incremental Value 9950 Woodloch 6100 Merriweather 1700 Pavilion Forest Downtown Columbia Summerlin The Woodlands Completed 3Q ’19 Completed 4Q ’22 Acquired in 4Q ’19 99% 98% 92% Leased Leased Leased (1) (1) (1) Fu
Slide 32: Operating Assets Performance: Multifamily
Operating Assets Performance: Multifamily (1) 10-Year NOI Performance Same Store NOI Growth Stabilized Leased % Houston 96% Leased Summerlin 97% Leased Columbia (1) 96% Leased New New Properties Properties in in Lease-Up Lease-Up Tanager Echo Marlow Wingspan Completed 3Q ’23 Completed 2Q ’23 Complet
Slide 33: Operating Assets Performance: Retail
Operating Assets Performance: Retail 10-Year NOI Performance Despite Multiple Dispositions…. Since 2020 481k $7M $51M Square Feet NOI Gain on Sale ….Retail NOI is Near All-Time Highs Anaha Retail - Ward Village HOWARD HUGHES Source: Company filings and data. NOI performance excludes retail dispositi
Slide 34: Transformational Leasing Success: Premier Office Assets
Transformational Leasing Success: Premier Office Assets 9950 Woodloch Forest 6100 Merriweather 1700 Pavilion The Woodlands Downtown Columbia Summerlin Acquired empty 4Q’19 Completed 3Q ’19 Completed 4Q ’22 ~350k SF Leased in ’22-’24 ~110k SF Leased in ’22-’24 ~245k SF Leased in ’22-’24 $18M Stabiliz
Slide 35: HHH Value Creation: Spotlight on Marlow
HHH Value Creation: Spotlight on Marlow NAV Growth through Development Marlow Multifamily Value Creation Marlow Operating Asset Value Stabilized NOI $9,320 Development Cost $123,613 Cap Rate 5.6% MPC Value of Commercial Land Acres 3.98 Price per Acre $580.00 Net NAV Impact $40.51 Per Share $0.81 7.5
Slide 36: Downtown Summerlin: HHH's Premier Retail Destination
Downtown Summerlin: HHH’s Premier Retail Destination Improving Sales/SF through Upcoming Expirations Leasing strategy excels: ~90% of 2025 expirations have been leased with many upgraded tenants Provides HHH an opportunity to improve our tenant base to drive rents and sales higher Space backfilled b
Slide 37: Operating Assets FY 2025 Guidance
Operating Assets FY 2025 Guidance Total Operating Asset NOI Performance Trend FY 2025 NOI Guidance High (vs. FY 2024) Lower End Mid-Point Upper End Low Low $237M —% $262M +4% • Strong multifamily rent growth and lease- up of new developments • Office leasing improvement is partially offset by free r
Slide 38: Strategic Developments
Strategic Developments Dorward Druaghee
Slide 39: Spotlight on Ward Village
LEED-ND Platinum Spotlight on Ward Village U.S. Green Building Council Community Snapshot Master Plan at Full Development ▪ Size: 60 acres; ~9M SF granted entitlements ▪ Develop premier condos at ~25 to 30% profit margins complemented by 904k SF of retail ▪ Ward Village attracts buyers from Hawaii,
Slide 40: Ward Village Condo Sales by the Numbers
Ward Village Condo Sales Revenues by Tower by the Numbers $ Millions (Since Inception) $6.3B Revenues Closed and 4,884 Sold- Out Units Closed and Under-Contract ~25-30%Gross Profit Margin 100% Pre-Sold Under 7 3 1 97% Pre-Sold Constr. 93% Pre-Sold Towers Towers Under Towers in 64% Completed Construc
Slide 41: Strong Record of Delivering World-Class Condominiums
Strong Record of Delivering World-Class Condominiums Completed and Sold-Out Towers – 2016 to 2024 KE VICTORIA WAIEA ANAHA AE’O ’A’ALI’I KŌ’ULA KILOHANA PLACE 177 Units 317 Units 465 Units 423 Units 750 Units 565 Units 349 Units 2016 2017 2018 2019 2021 2022 2024 3,046 Condominium Units Generated $3.
Slide 42: New Condo Developments Underway to Meet Demand
New Condo Developments Underway to Meet Demand Under Construction Pre-Sales ULANA THE PARK KALAE THE LAUNIU 696 Units 545 Units 329 Units 485 Units 100% Pre-Sold 97% Pre-Sold 93% Pre-Sold 64% Pre-Sold 2025 2026 2027 2028 (1) Towers Represent $2.4B of Future Contracted Revenue HOWARD HUGHES Source: C
Slide 43: Future Ward Village Condos in Planning
Future Ward Village Condos in Planning Condo Towers 3 834 Condo Units Melia and ’Ilima Mahana Ward Village Up to ~$2.5B Potential Revenue Potential Entitlements for Robust Condo Pipeline(1) 18k ~2.5M to 3.5M SF Future Additional Residential SF Retail Source: Company filings and data. HOWARD HUGHES N
Slide 44: Under Construction: The Ritz-Carlton Residences
Under Construction The Ritz-Carlton Residences Size 111 39 Estate Homes Floor Plans 70% $342M Pre-sales Future Units Sold Revenue Construction 4Q ’24 2027 Timeline Commenced Completion The Woodlands’ first luxury condo project Will include a 6k SF high-end restaurant HOWARD HUGHES Source: Company fi
Slide 45: Strong Returns on Recently Completed and In-Flight Strategic Developments
Strong Returns on Recently Completed and In-Flight Strategic Developments Recently Completed Under Construction Tanager Village Green at Summerlin One Grogan’s Mill 10285 Lakefront Echo Wingspan Meridian Bridgeland Grocery 1 Riva Row Bridgeland Retail Medical Office Central Center Green Location Sum
Slide 46: Appendix
Appendix The Woodlands Towers HOWARD HUGHES 46
Slide 47: Reconciliation of Operating Assets Segment EBT to NOI
Reconciliation of Operating Assets Segment EBT to NOI thousands Q1 2025 Q1 2024 2024 2023 2022 2021 2020 Total revenues $ 114,002 $ 107,000 $ 444,300 $ 410,254 $ 401,304 $ 415,104 $ 365,174 Total operating expenses (48,817) (46,154) (194,591) (179,865) (170,114) (187,820) (174,870) Segment operating
Slide 48: Reconciliation of Adjusted Operating Cash Flow Performance Measure
Reconciliation of Adjusted Operating Cash Flow Performance Measure Three Months Year Ended Three Months Ended Year Ended Ended March 31, December 31, March 31, 2025 December 31, 2024 thousands 2025 2024 (per diluted (per diluted thousands except per share amounts share) share) General and administra
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