Howard Hughes Holdings Inc. ((HHH)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Howard Hughes Holdings Inc. recently held its earnings call, revealing a positive sentiment driven by strong performance across multiple segments. The company reported record metrics in its Master Planned Communities (MPC) and leasing growth, leading to an increase in guidance. Despite a minor adjustment in condo revenue targets, strategic developments and successful refinancing contributed to a favorable outlook.
Record Quarter for MPC Segment
The earnings call highlighted a record quarter for Howard Hughes’ MPC segment, generating $205 million in Earnings Before Taxes (EBT). This was primarily driven by robust land sales in Summerlin, including a significant 231-acre bulk sale at a 75% margin. Excluding this transaction, the remaining land sales averaged $1.7 million per acre, underscoring the strength of the segment.
Increased Guidance and Record Performance
Howard Hughes raised its full-year EBT guidance to $450 million, an increase of $20 million from prior guidance. The company expects to conclude the year with record-high residential land sales, record pricing, and a record full-year MPC EBT, reflecting its strong performance and strategic execution.
Strong Leasing and NOI Growth
The company reported a 5% year-over-year growth in Net Operating Income (NOI) to $68 million, driven by leasing momentum. Office NOI increased by 7%, multifamily NOI grew by 2%, and retail NOI saw a 9% year-over-year rise, showcasing the strength across different leasing segments.
Condo Presales and Strategic Developments
Howard Hughes reached a new record with $1.4 billion in condo presales, with projects like Melia and Ilima at Ward Village collectively 57% presold. This milestone highlights the company’s strategic developments and strong market demand for its condo offerings.
Successful Refinancing
The company successfully refinanced approximately $114 million of near-term maturities, extending them into 2026 and beyond. This move reduced 2025 maturities to $76 million, demonstrating effective financial management and strengthening the company’s balance sheet.
Condo Revenue Target Adjustment
Despite the overall positive outlook, Howard Hughes adjusted its full-year condo revenue target down by $15 million to $360 million. This adjustment was due to a timing shift for Ulana closings into early 2026, indicating a slight delay in revenue realization.
Forward-Looking Guidance
During the earnings call, Howard Hughes provided updated guidance, highlighting strong performance across various metrics. The full-year EBT guidance was raised to $450 million, reflecting a $20 million increase due to robust land sales. The company also reaffirmed its full-year NOI guidance of $267 million and increased its adjusted operating cash flow guidance by $30 million to $440 million. Despite a slight reduction in the full-year revenue target for condos, the future condo pipeline remains strong with $1.4 billion in presales recorded this quarter. The company anticipates another record-breaking year, driven by strategic land sales, leasing momentum, and effective cost management.
In summary, Howard Hughes Holdings Inc. presented a positive earnings call, marked by record performance in its MPC segment and strong leasing growth. The company raised its guidance, reflecting confidence in its strategic direction and market positioning. Despite a minor adjustment in condo revenue targets, the overall sentiment remains optimistic, with expectations of continued success in the coming year.