Howard Hughes Holdings Inc. Q3 FY2025 earnings call

• David O'Reilly highlighted strong performance across all business segments, with MPC having a record quarter, operating assets showing growth, and condos having strong presales. - Carlos Olea discussed refinancing near-term maturities, raised full year EBT guidance to $450 million midpoint, reaffirmed NOI guidance at $267 million, adjusted condo revenue target, and raised adjusted operating cash flow guidance. - Bill Ackman provided an update on progress in acquiring an insurance company, noting it's a clean transaction and fits the diversified holding company strategy.

The MPC segment had a record quarter, generating $205 million EBT driven by strong land sales in Summerlin, with 319 acres sold at roughly $795,000 an acre. Operating assets NOI grew 5% year-over-year to $68 million, with office NOI up 7%, multifamily NOI up 2%, and retail NOI up 9%. Condos saw a slight adjustment in full year revenue target down $15 million to $360 million, but had $1.4 billion in presales. MPC segment revenue contribution was significant due to strong land sales, operating assets contributed via NOI growth, and condos via presales.

• Raised full year MPC EBT guidance to $450 million midpoint, up $20 million from prior. - Reaffirmed full year NOI guidance of $267 million. - Adjusted full year condo revenue target down $15 million to $360 million due to timing shift in Ulana closings. - Raised adjusted operating cash flow guidance to $440 million or $7.86 per diluted share, up $30 million from prior outlook.

• Certain statements made are forward-looking, and the company notes there's no duty to update unless required by law. See forward-looking statement disclaimer and risk factors in SEC filings for factors that could cause material differences between forward-looking statements and actual results.

Q: First question relates to superpad sales and trade-off of doing more vs holding.

A: David O'Reilly said it was a unique situation, generally expect to transact on superpads going forward at higher prices.

Q: Anthony Paolone asks about insurance deal and capital.

A: Bill Ackman says it will consume available cash, insurance is first priority with potential for flexibility later.

Q: Alexander Goldfarb asks about Ward Village entitlements and insurance entity.

A: David O'Reilly says initial entitlements have more sites and incremental square feet, Bill Ackman says insurance transaction is clean.

Q: Jonathan Petersen asks about Ritz-Carlton Residences and future condo projects.

A: David O'Reilly says Ritz-Carlton is 75% sold, evaluating future condo projects in The Woodlands and Summerlin.

Q: Alexander Goldfarb asks about 2026 land sales guidance.

A: David O'Reilly says too early to provide guidance, will take it quarter-by-quarter.

Q: Alexander Goldfarb asks about homebuilder land appetite.

A: David O'Reilly says selling land to keep up with home sales, builders are a little undersupplied.