Howard Hughes Holdings Inc. Q4 FY2025 earnings call

• William Albert Ackman discussed the transformation of Howard Hughes into a diversified holding company, including the acquisition of Vantage Holdings and the need to help investors understand the business better. - Ryan Michael Israel elaborated on the excitement about the upcoming closing of Vantage, its diversified insurance platform, experienced management, limited reserving risk, and plan to enhance investment returns using Pershing Square's expertise. - David R. O'Reilly highlighted 2025 as a strong operating year with MPC EBT record, operating assets NOI growth, condominium platform as a capital engine, and the announcement of Toro District. - Carlos A. Olea provided 2026 guidance on various aspects including adjusted operating cash flow, MPC, operating assets, condominiums, G&A, refinancing, and leverage philosophy.

Master Planned Communities (MPC): In 2025, MPC EBT reached a record of $476,000,000, driven by selling 621 residential acres at an average price per acre of $890,000. For 2026, MPC EBT is expected to be in the range of $343,000,000 to $391,000,000. Operating Assets: The operating portfolio had a record year in 2025, with full-year NOI of $276,000,000, up 8% year over year. Expected 2026 NOI for operating assets is between $279,000,000 and $290,000,000. Condominiums: In 2025, the company contracted $1,600,000,000 of future condo revenue. For 2026, condo gross revenue is expected to be approximately $720,000,000 to $750,000,000 with an estimated profit of $108,000,000 to $128,000,000 at margins of 15% to 17%.

• Adjusted operating cash flow for 2026 is expected to be in the range of $415,000,000 to $465,000,000. - MPC EBT for 2026 is projected to be between $343,000,000 and $391,000,000. - Operating assets NOI for 2026 is expected to be between $279,000,000 and $290,000,000. - Condo gross revenue for 2026 is expected to be approximately $720,000,000 to $750,000,000 with profit in the range of $108,000,000 to $128,000,000. - Cash G&A for 2026 is expected to range between $82,000,000 and $92,000,000.

Q: Regarding condo margin at The Park Ward Village and cost pressures in development.

A: Infrastructure costs at The Park Ward Village were anticipated, with the second-row tower and more retail affecting the margin.

Q: On valuing Howard Hughes and monetizing commercial portfolio.

A: The company takes a long-term view on commercial real estate, and the 30 acres sold were on the periphery of The Woodlands.

Q: On the timeline for Vantage's profitability.

A: 2026 is expected to be the first year with more meaningful profitability for Vantage, benefiting from scale economies and portfolio management.

Q: On affordability and build-to-rent.

A: The company focuses on hitting broad price ranges in MPCs to attract a wide range of buyers, with SFR being a small part of the portfolio.

Q: On priorities for extra cash.

A: First priority is to own Vantage 100% once the transaction closes, then using incremental excess cash for other operating investments.