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Mar 31, 2025
Howard Hughes Q1 2025 Earnings Report
Howard Hughes Holdings Inc. reported a strong start to 2025, affirming expectations for record MPC and Operating Assets performance, with significant increases in net income, adjusted operating cash flow, and total operating assets NOI.
Key Takeaways
Howard Hughes Holdings Inc. delivered a strong first quarter in 2025, with net income from continuing operations at $10.8 million, a significant improvement from a loss in the prior year. Adjusted Operating Cash Flow reached $63 million, and Total Operating Assets Net Operating Income (NOI) hit a new quarterly record of $72 million, driven by strong performance in office and multifamily segments. The company also saw robust MPC EBT of $63 million, fueled by residential land sales, and secured significant capital infusion from Pershing Square to support future growth and diversification.
Net income from continuing operations per diluted share was $0.21, a substantial improvement from a loss of $(0.42) in the prior-year period.
Adjusted Operating Cash Flow reached $63 million, or $1.27 per diluted share, with full-year 2025 guidance unchanged at a mid-point of $350 million.
Total Operating Assets Net Operating Income (NOI) achieved a new quarterly record of $72 million, increasing 9% year-over-year, primarily due to improved performance in office and multifamily.
Master Planned Community (MPC) EBT increased 161% year-over-year to $63 million, driven by the sale of 70 residential acres at an average price of $991,000 per acre.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company's full-year 2025 guidance remains strong, with expectations for continued growth in MPC EBT and Operating Assets NOI, driven by solid demand for new homes, increased occupancy in multifamily, and strong leasing momentum in office properties. Condo sales revenues are projected to be significant, primarily from the Ulana development.
Positive Outlook
- MPC EBT is projected to be strong in 2025, with a mid-point of approximately $375 million, driven by solid demand for new homes and low inventories of vacant developed lots.
- Operating Assets NOI is expected to be flat to up 4% year-over-year, with a mid-point of approximately $262 million, benefiting from continued growth in multifamily and improved office performance.
- Condo sales revenues are projected to be approximately $375 million in 2025, primarily from the closing of units at Ulana, which is 100% pre-sold.
- Adjusted Operating Cash Flow is projected to range between $325 million and $375 million in 2025, with a mid-point of approximately $350 million or $7.00 per share.
- The second and third quarters are likely to see a higher concentration of superpad sales in Summerlin, contributing to MPC EBT.
Challenges Ahead
- Retail NOI is expected to see a modest reduction in 2025, primarily due to non-recurring collections of tenant reserves in Ward Village during 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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