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Jun 30
Howard Hughes Q2 2025 Earnings Report
Howard Hughes Holdings Inc. reported its second quarter 2025 results, highlighting strong demand and record pricing for Master Planned Community (MPC) land, solid Operating Assets performance, and a significant capital infusion from Pershing Square.
Key Takeaways
Howard Hughes Holdings Inc. delivered strong financial results in Q2 2025, despite a net loss from continuing operations due to a one-time GAAP loss on MUD receivables. The company saw record pricing for residential land sales in its MPCs and robust Net Operating Income (NOI) growth in its Operating Assets, particularly in office and multifamily sectors. A major highlight was the $900 million investment from Pershing Square, aimed at transforming HHH into a diversified holding company. The company also raised its full-year 2025 guidance for Adjusted Operating Cash Flow, MPC EBT, and Operating Assets NOI.
Net loss from continuing operations per diluted share was $(0.22), impacted by a $(0.66) GAAP loss on the sale of MUD receivables.
Pershing Square invested $900 million in newly issued HHH stock, providing capital for future acquisitions and supporting the company's transformation into a diversified holding company.
Master Planned Community (MPC) EBT reached $102.4 million, driven by the sale of 111 residential acres at a record average price of $1.35 million per acre.
Total Operating Assets Net Operating Income (NOI) increased 5% year-over-year to $68.9 million, with record NOI performance in office and multifamily segments.
Howard Hughes
Howard Hughes
Howard Hughes Revenue by Segment
Howard Hughes Revenue by Geographic Location
Revenue by Segment
Condominium Rights & Unit Sales Revenue
CapyFin.comMPC Land Sales Revenue
CapyFin.comRental Revenue
CapyFin.comOther Land, Rental & Property Revenue
CapyFin.comBuilder Price Participation Revenue
CapyFin.comRevenue by Geographic Location
Houston, TX (Office) Revenue
CapyFin.comColumbia, MD (Office) Revenue
CapyFin.comLas Vegas, NV (Office) Revenue
CapyFin.comHonolulu, HI (Retail) Revenue
CapyFin.com Forward Guidance
Howard Hughes Holdings Inc. has raised its full-year 2025 guidance across key financial metrics, reflecting strong performance and positive outlook for its Master Planned Communities and Operating Assets, alongside strategic capital deployment.
Positive Outlook
- Full-year 2025 Adjusted Operating Cash Flow guidance raised to $410 million, an increase of $60 million from previous estimates.
- Full-year 2025 MPC EBT guidance raised to $430 million, representing a $55 million increase and a projected 20% to 25% year-over-year growth.
- Full-year 2025 Operating Assets NOI guidance raised to $267 million, a $5 million increase, driven by continued growth in multifamily and office sectors.
- Strong homebuilder demand for new acreage and low inventories of vacant developed lots are expected to sustain robust residential land sales in Q3.
- A robust pipeline of condo tower completions is expected to deliver significant incremental cash flow over the next five years.
Challenges Ahead
- Retail NOI is expected to be flat compared to 2024, primarily due to non-recurring collections of tenant reserves in Ward Village during 2024.
- The company does not expect to recognize any gross profit from the Ulana workforce housing tower project, despite projected condo sales revenues of approximately $375 million.
- Cash G&A is projected to range between $76 million and $86 million, including approximately $10 million of Pershing Square’s base advisory fee.
- Some softening in the national housing market was noted, though HHH's markets experienced strong performance.
- Regulatory delays in Bridgeland impacted new home sales in Q2, though these are expected to resolve in the second half of the year.