Howard Hughes raises FY25 adjusted operating cash flow view to $415M-$465M

The company said, “Adjusted Operating Cash Flow – We are increasing our guidance by $30 million at the mid-point, representing an increase of $90 million, compared to our original guidance. It is now projected to range between $415 million and $465 million in 2025 with a mid-point of approximately $440 million or $7.86 per share. The increase is driven by higher MPC EBT and lower net interest expense from interest earned on unrestricted cash investments. MPC EBT – We are increasing our guidance by $20 million at the mid-point, representing an increase of $75 million when compared to our original guidance. It is now projected to be up 27% to 31% year-over-year with a mid-point of approximately $450 million. Total Operating Assets NOI – We are reaffirming our guidance and expect NOI to be up 2% to 6% year-over-year with a mid-point of approximately $267 million. Condo sales revenues – We are reaffirming our guidance for a breakeven gross margin with a revised estimate of expected condo sales totaling $360 million in the fourth quarter at Ulana, a workforce housing tower. Cash G&A – We are reaffirming our guidance range of $76 million to $86 million in 2025, with a mid-point of $81 million, excluding approximately $13 million of anticipated non-cash stock compensation, $10 million of severance expense related to the second quarter reduction in force, and $4 million of Pershing Square’s variable advisory fee incurred year to date. This guidance includes approximately $10 million of Pershing Square’s base advisory fee, which is expected to be substantially offset by savings resulting from the aforementioned reduction in force and other completed cost reduction initiatives.”