Howard Hughes Holdings (HHH) AI Stock Analysis

• Market Cap: $3.39B
• Dividend Yield: N/A
• Average Volume (3M): 632.40K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.04
• Revenue Growth: 82.64%
• EPS Growth: N/A
• Country: US
• Employees: 545
• Sector: Real Estate
• Sector Strength: 62
• Industry: Real Estate - Diversified
• EPS (TTM): 0.21
• Shares Outstanding: 50,391,130
• 10 Day Avg. Volume: 419,947
• 30 Day Avg. Volume: 632,405
• PEG Ratio: 0.11
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 12.40
• Enterprise Value/Ebitda: 4.59
• 1Y Price Target: $82.33
• Price Target Upside: 19.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $77.00 ▲(12.18%Upside)

Howard Hughes Holdings earns a solid score of 74, driven by strong financial performance and positive earnings outlook. The strategic shift with Pershing Square adds to growth prospects, although increasing debt reliance and mixed technical indicators temper the overall score.

Positive Factors

Financial Performance

New home sales accelerated with a 6.0% increase sequentially.

Strategic Transformation

Pershing Square completed the first step of its transformation from a unique but undervalued land developer into a diversified holding company, with the ambition of becoming the next Berkshire Hathaway.

Negative Factors

Financial Risks

The increase in leverage to 58.0% net debt/TEV as part of the transaction may pose financial risks.

Market Uncertainty

No update was provided on Pershing Square's merger proposal, leaving uncertainty in the market.

Howard Hughes Holdings Business Overview & Revenue Model

Company Description

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

How the Company Makes Money

Howard Hughes Holdings generates revenue through multiple streams. Primarily, it earns income from the sale of residential properties within its master-planned communities, which are designed to offer a blend of residential, commercial, and recreational spaces. Additionally, the company generates significant revenue from leasing commercial spaces in its developed properties, including office, retail, and hospitality spaces. The company's property management services also contribute to its revenue by offering management for residential and commercial properties. Furthermore, Howard Hughes Holdings benefits from strategic partnerships and joint ventures that enhance its development capabilities and expand its market reach.

Howard Hughes Holdings Financial Statement Overview

Summary

Howard Hughes Holdings has shown a strong recovery in 2024 with significant revenue growth and a return to profitability. While the high debt levels present a risk, the improvement in cash flow and equity stability are positive indicators.

Income Statement

Howard Hughes Holdings has shown a remarkable increase in revenue from $1.02 billion in 2023 to $1.75 billion in 2024, indicating strong growth. Gross profit margins have improved significantly, and the transition from a net loss in 2023 to a net income of $197.7 million in 2024 demonstrates a turnaround. However, EBIT and EBITDA margins are still lower compared to earlier years, reflecting ongoing challenges in operational efficiency.

Balance Sheet

The company has a relatively high debt-to-equity ratio due to significant debt levels, which could pose risks in a rising interest rate environment. However, the equity ratio remains stable, indicating a reasonable level of equity funding. Return on equity has improved as the company returned to profitability, enhancing shareholder value.

Cash Flow

Howard Hughes Holdings has improved its free cash flow significantly from negative figures in 2023 to a healthy $447.8 million in 2024. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to profit. This turnaround in cash flow provides a solid foundation for future investments and debt reduction.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.75B	1.02B	1.61B	1.43B	699.49M
	Gross Profit
731.95M	433.97M	633.62M	500.01M	201.98M
	EBIT
559.92M	-528.21M	369.13M	241.87M	-119.56M
	EBITDA
668.16M	-342.20M	556.39M	399.26M	358.20M
	Net Income Common Stockholders
197.70M	-551.77M	184.53M	56.10M	-26.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
596.08M	631.55M	626.65M	843.21M	1.01B
	Total Assets
9.21B	9.58B	9.60B	9.58B	9.14B
	Total Debt
5.13B	5.35B	4.80B	4.66B	4.36B
	Net Debt
4.54B	4.72B	4.17B	3.82B	3.34B
	Total Liabilities
6.37B	6.52B	6.00B	5.85B	5.43B
	Stockholders Equity
2.78B	2.99B	3.54B	3.71B	3.71B
Cash Flow		Free Cash Flow
394.45M	-265.82M	323.25M	-285.77M	-74.48M
	Operating Cash Flow
396.59M	-258.48M	325.25M	-283.96M	-72.87M
	Investing Cash Flow
-300.79M	-336.14M	-220.69M	101.46M	-428.55M
	Financing Cash Flow
-148.25M	548.75M	-222.26M	156.14M	1.12B

Howard Hughes Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHH, the sentiment is Positive. The current price of 68.64 is below the 20-day moving average (MA) of 69.07, above the 50-day MA of 68.56, and below the 200-day MA of 75.01, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 50.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HHH.

Howard Hughes Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPR	77 Outperform	$4.26B	34.12	6.25%	6.06%	0.69%	-19.22%
HHH	74 Outperform	$3.39B	13.14	10.15%	―	82.64%	―
JOE	72 Outperform	$2.64B	34.00	10.96%	1.17%	1.25%	-4.31%
NHI	72 Outperform	$3.39B	23.01	10.56%	4.96%	7.44%	4.23%
RYN	64 Neutral	$3.65B	10.08	18.78%	4.81%	12.61%	111.99%
PCH	62 Neutral	$3.04B	63.85	2.31%	4.66%	10.86%	6.72%
Sector *	61 Neutral	$2.83B	10.91	0.42%	8438.90%	5.74%	-20.95%

Howard Hughes Holdings Corporate Events

Howard Hughes Holdings Reports Strong Q1 2025 Results

Howard Hughes Holdings Inc. reported strong financial results for the first quarter of 2025, with net income from continuing operations reaching $0.21 per diluted share, a significant improvement from the previous year’s loss. The company achieved a record quarterly net operating income of $72 million, driven by robust performance in office and multifamily segments, and saw a 161% increase in MPC earnings before taxes due to substantial land sales. Additionally, a $900 million investment by Pershing Square is set to transform Howard Hughes into a diversified holding company, enhancing its growth prospects and liquidity.

Howard Hughes Holdings Announces Strategic Shift with Pershing Square

On May 5, 2025, Howard Hughes Holdings Inc. announced a strategic shift to become a diversified holding company, following a significant investment from Pershing Square Holdco, L.P. Pershing Square purchased 9 million shares of Howard Hughes for $900 million, representing a 48% premium over the previous closing price, and now owns 46.9% of the company. This investment is expected to enhance Howard Hughes’ financial flexibility and credit profile, allowing it to acquire controlling interests in high-quality public and private companies. Bill Ackman, CEO of Pershing Square, has been appointed Executive Chairman of Howard Hughes, with Ryan Israel assuming the role of Chief Investment Officer. The transaction, approved by Howard Hughes’ Special Committee, is anticipated to create long-term value for stakeholders by leveraging Pershing Square’s expertise and resources.

Howard Hughes Extends Standstill Agreement with Pershing Square

Howard Hughes Holdings Inc. announced an extension of its standstill agreement with Pershing Square Capital Management L.P. until May 30, 2025. The company has engaged Morgan Stanley as a financial advisor and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. as legal counsel to assist in the ongoing discussions, though no specific outcomes are assured.

Howard Hughes Extends Standstill Agreement with Pershing Square

On April 14, 2025, Howard Hughes Holdings Inc. announced the extension of its standstill agreement with Pershing Square Capital Management L.P. until April 30, 2025. The company has engaged Morgan Stanley as a financial advisor and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. as legal counsel to the Special Committee of the Board of Directors. This extension indicates ongoing negotiations, but there is no assurance of any particular outcome, impacting the company’s strategic positioning and stakeholder interests.

Howard Hughes Extends Standstill Agreement with Pershing Square

On April 7, 2025, Howard Hughes Holdings Inc. announced an extension of its standstill agreement with Pershing Square Capital Management L.P. until April 15, 2025. The company has engaged Morgan Stanley as a financial advisor and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. as legal counsel for the Special Committee of the Board of Directors. The impact of this extension on the company’s operations and industry positioning remains uncertain, as Howard Hughes Holdings has not committed to any specific outcomes from discussions with Pershing Square.

Howard Hughes Holdings Announces Leadership Changes

On April 1, 2025, Howard Hughes Holdings Inc. announced amendments to the employment agreements of its executive officers, including David R. O’Reilly, Carlos Olea, and Joseph Valane. These amendments revise the definition of ‘Good Reason,’ introduce the term ‘Transaction,’ and extend the terms of O’Reilly’s and Olea’s agreements to December 31, 2028. Additionally, O’Reilly’s annual target Long-Term Incentive Plan award is increased to $4.5 million. On April 2, 2025, the company and its President, L. Jay Cross, agreed not to renew his employment agreement upon its expiration on December 1, 2025, marking a significant leadership change.

Howard Hughes Extends Standstill Agreement with Pershing Square

On March 12, 2025, Howard Hughes Holdings Inc. announced an extension of its standstill agreement with Pershing Square Capital Management L.P., now effective until April 7, 2025. The company has not guaranteed any specific outcomes from these discussions and will provide further updates only if necessary. Morgan Stanley & Co. LLC is advising the Special Committee of the Board of Directors, with Hogan Lovells US LLP and Richards, Layton & Finger, P.A. serving as legal counsel.