Howard Hughes Corporation
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did HHH Beat Earnings? Q2 2025 Results
Howard Hughes Holdings delivered a mixed second quarter, posting a loss of $0.22 per diluted share against a consensus estimate of breakeven, while revenue slipped 8.0% year-over-year to $260.88 million, missing the $289.00 million consensus by nearly 10%. The headline numbers were heavily distorted by a $48.20 million GAAP loss on the sale of MUD receivables, a transaction that shaved $0.66 from EPS but generated $180.00 million in cash used to retire Bridgeland Notes. Beneath the noise, the company's operating story was considerably stronger, with Operating Assets NOI rising 5% to $68.86 million and record average MPC land prices of $1.35 million per acre, up 29% year-over-year, partly offsetting lower acreage volumes. Management raised full-year Adjusted Operating Cash Flow guidance to approximately $410.00 million and lifted MPC EBT guidance to roughly $430.00 million, reflecting continued homebuilder demand. The broader transformation narrative, anchored by Pershing Square's $900.00 million equity commitment at a 48% premium, gained further texture as the company signaled it is actively targeting insurance acquisitions in the $1 to $3 billion range to build a Berkshire-style holding company.
- Record average residential land price of $1.35 million per acre — 29% year-over-year increase
- Record Summerlin superpad prices of $1.6 million and Bridgeland lot prices of $648,000
- Record quarterly office NOI of $35.2 million, up 6% YoY, driven by leasing activity and abatement expirations
- Record quarterly multifamily NOI of $16.9 million, up 19% YoY, driven by lease-up at Tanager Echo, Marlow, and Wingspan
- Strong stabilized leasing rates: office 89%, retail 96%, multifamily 97%
- 208,000 square feet of new or expanded office leases executed in the quarter
- $900 million Pershing Square investment significantly strengthened balance sheet
“In the second quarter, Pershing Square invested $900 million into Howard Hughes in exchange for nine million newly issued shares of HHH stock. This represented a significant milestone for the Company, and we continue to evaluate opportunities to deploy this capital. Over time, we expect HHH will be transformed into a premier diversified holding company, with our portfolio of master planned communities at its foundation.”
Howard Hughes CEO, on the earnings call
Forward Guidance & Outlook
Howard Hughes raised full-year 2025 guidance across all key metrics. Adjusted Operating Cash Flow is now projected at $385 million to $435 million (midpoint ~$410 million or $7.32 per share), an increase of $60 million at the midpoint from original guidance. MPC EBT is expected to be up 20-25% year-over-year with a midpoint of ~$430 million, raised $55 million from prior guidance, driven by continued strong homebuilder demand and low vacant lot inventories. Residential land sales are expected to remain strong in Q3 with a high concentration of superpad sales in Summerlin and lot deliveries in Bridgeland. Operating Assets NOI is projected to grow 2-6% year-over-year with a midpoint of ~$267 million, raised $5 million from initial guidance, driven by multifamily occupancy gains and office leasing momentum. Condo sales revenues are projected at approximately $375 million, driven by Ulana closings in Q4, though no gross profit is expected from this workforce housing tower. Cash G&A is projected at $76-$86 million (midpoint $81 million), excluding ~$15 million of non-cash stock compensation and $10 million of severance. The Company continues to evaluate opportunities to deploy the $900 million Pershing Square investment into acquisitions of high-quality public and private companies.
HHH YoY Financials
HHH Revenue by Segment
HHH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.