Howard Hughes Holdings Inc. Q1 FY2026 earnings call

• Bill Ackman mentioned company is in transition, shareholder base change, and introduced metrics for valuation. - David O'Reilly gave quarter update, highlighting MPC earnings growth, operating asset NOI growth, condo progress, and balance sheet strength. - Bill Ackman talked about business model transition, KPIs, and valuation metrics. - Ryan Israel spoke about intrinsic value estimate of ~$104 per share, which is over 60% higher than current share price, and growth projections over next five years. - Mark Grandison introduced himself, shared background in insurance, and expressed excitement about joining to help with insurance business understanding.

Master plan communities: Earnings before taxes was $84 million in Q1, up 33% YOY due to higher residential land sales. Bridgeland closed 62 acres at avg $688,000 per acre (vs 37 acres and $605,000 per acre YOY) with net new home sales up 12%. Summerlin custom lots averaged $7.2 million per acre, superpads $1.8 million per acre, new home sales up 6%. Operating assets: NOI grew 2% YOY and 7% on trailing 12-month same-store basis, driven by multifamily and office. Adjusted maintenance-free cash flow introduced to reflect recurring property-level cash flow. Condos: At Ward Village, Ulana completed and Leneute broke ground (70% pre-sold). Condo gross profit roughly break-even in Q1, to increase in Q2. Estimated future condo gross profit from pre-sold projects highlights embedded cash flow. Other expenses: G&A expense $25.8 million including purging fees and Vantage-related transaction costs. Net interest expense declined due to interest income from invested cash balances.

• Removed annual guidance, shifted focus to longer-term objectives by platform. - Expect $2.5 - $3 billion of cash to be generated from real estate business over next five years, to be reinvested into other areas like insurance. - Vantage acquisition expected to close earlier than end of the quarter. - Aim to increase intrinsic value of Vantage business to north of two times over next five years.

Q: About capital raising at Pershing Square and implications to HHH.

A: Pershing Square's transactions don't allow buying more HHH stock, but HHH is an important part of the platform.

Q: Why continue to hold real estate assets when insurance is big driver.

A: Real estate business is cash generator, but non-core assets may be sold if not critical.

Q: Delay in Vantage deal closing.

A: Scheduled hearing date 19th May, transactions typically close within couple weeks, on track for Q2 close.

Q: Value of company at $104 per share.

A: Conservative estimate, $104 is conservative, with potential for higher value with lower discount rate.

Q: Data centers and land holdings.

A: Open to West Phoenix land uses, including data centers, power plants, etc., to create transformational value.

Q: KPIs incentivizing price over volume.

A: Not selling to maximize metric, but to maximize company value, balancing volume and price to maintain community equilibrium.

Q: Investments in Vantage vs NPC business.

A: Incentive to invest in Vantage as returns higher and value assignment higher, rather than buying another MPC