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Howard Hughes Holdings (HHH)
NYSE:HHH
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Howard Hughes Holdings (HHH) AI Stock Analysis

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HHH

Howard Hughes Holdings

(NYSE:HHH)

Rating:74Outperform
Price Target:
$77.00
▲(0.96% Upside)
Howard Hughes Holdings receives a solid score driven by strong financial performance and positive earnings call sentiment. The company's strategic investments and improved guidance are key strengths. Technical analysis supports a stable outlook, though valuation and increasing debt reliance are areas to watch.
Positive Factors
Asset Sales
Howard Hughes sold 70 residential acres at a higher price per acre, showing strong land sales performance.
Financial Performance
HHH expects strong homebuilder demand, and thus raised FY25 MPC EBT by +14.7% to a company-high $430M.
Investment and Ownership
Pershing Square is increasing its HHH ownership stake to 46.9% through its purchase of 9M newly-issued HHH shares for $100/share, which is a 62.7% premium to the unaffected HHH price.
Negative Factors
Earnings
Fourth quarter MPC EBT of $56.9M fell by 59.2% year-over-year, driven by the timing of super pad sales.
Stock Valuation
The 2025 year-end price target has been reduced from $82/share to $76/share based on the DCF model.
Strategic Direction
The focus is shifting to being a diversified holding company, leading to uncertainty about the future direction of the stock.

Howard Hughes Holdings (HHH) vs. SPDR S&P 500 ETF (SPY)

Howard Hughes Holdings Business Overview & Revenue Model

Company DescriptionHoward 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 MoneyHoward Hughes Holdings generates revenue through a variety of streams related to its real estate operations. Key revenue sources include the sale of residential properties, leasing of commercial and retail spaces, and management fees from its developments. The company also benefits from partnerships with local governments and other developers, which can facilitate access to land and resources. Additionally, HHH engages in strategic joint ventures to enhance its project financing and expand its market reach, thereby contributing to its overall earnings.

Howard Hughes Holdings Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for Howard Hughes Holdings with record land sales and increased operating cash flow guidance. Despite some challenges in new home sales and retail NOI, the strategic direction, including the planned insurance acquisition, indicates a positive outlook for future growth.
Q2-2025 Updates
Positive Updates
Record Land Sales and Prices
The company achieved a new record high average price per acre of $1.35 million, a 29% increase over last year, with Summerlin leading with a record average price per acre of $1.6 million.
Strong Operating Asset Performance
Operating assets set a new record quarterly NOI with a 5% year-over-year increase, driven by a 6% increase in office NOI and a 19% increase in multifamily NOI.
Raising Full Year Guidance
Full year guidance for adjusted operating cash flow increased to a range between $385 million and $435 million, with a midpoint increase of $60 million compared to the original guidance.
Reduced Debt Maturities
Successfully reduced near-term debt maturities to $282 million for 2025 and extended the construction loan on Marlow multifamily properties to April 2027.
Strategic Insurance Acquisition Plans
Plans to acquire a diversified insurance operation, aiming to grow intrinsic value per share at a high rate over time, leveraging investment operations similar to Berkshire Hathaway.
Negative Updates
Decline in New Home Sales
A decline in new home sales with a total of 487 homes sold in the second quarter due to reduced inventory and regulatory delays.
Retail Portfolio NOI Decline
Retail portfolio NOI decreased by 7% year-over-year, primarily due to nonrecurring collections on tenant reserves at Ward Village in the prior year.
Company Guidance
During the Howard Hughes Holdings Second Quarter 2025 Earnings Call, the company provided robust guidance updates, showcasing strong financial and operational metrics. They reported an adjusted operating cash flow of $91 million or $1.64 per diluted share for the quarter. Full-year guidance for adjusted operating cash flow was increased to a range between $385 million and $435 million, with a midpoint of $410 million, reflecting a $60 million increase from the original guidance. The Master Planned Communities (MPC) segment delivered exceptional earnings before taxes (EBT) of $102 million, driven by record land sales, including a new high average price per acre of $1.35 million. The Operating Asset segment recorded a 5% year-over-year growth in net operating income (NOI), reaching $69 million. The company also maintained its cash G&A and condo sales guidance, projecting condo revenues of approximately $375 million for the year. With a strong balance sheet, including $1.4 billion of cash and $515 million in undrawn credit, Howard Hughes Holdings is well-positioned to further capitalize on its diversified strategic initiatives.

Howard Hughes Holdings Financial Statement Overview

Summary
Howard Hughes Holdings shows strong financial performance with significant revenue growth and improved profitability metrics. The balance sheet indicates moderate leverage, though increasing debt reliance is a concern. Cash flow generation is robust, enhancing liquidity and operational efficiency.
Income Statement
78
Positive
The company's revenue has shown a strong growth trajectory, with a significant increase observed in the latest TTM compared to previous years. Gross profit margin and net profit margin have improved, indicating better cost management. EBIT and EBITDA margins are healthy, reflecting solid operational efficiency. However, past volatility in net income highlights some historical instability.
Balance Sheet
70
Positive
Howard Hughes Holdings maintains a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. Return on Equity (ROE) has improved, showing better profitability relative to equity. However, the equity ratio has been decreasing over the years, suggesting increasing reliance on debt financing, which could pose risks in downturns.
Cash Flow
82
Very Positive
Cash flow analysis reveals a robust operating cash flow to net income ratio, highlighting efficient cash generation from operations. Free cash flow growth is promising, suggesting improved liquidity. The free cash flow to net income ratio is favorable, indicating effective cash management. However, historically fluctuating cash flows may signal potential volatility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.77B1.75B1.02B1.61B1.43B699.49M
Gross Profit703.72M731.95M433.97M633.62M500.01M201.98M
EBITDA650.91M710.44M-342.20M556.39M399.26M358.20M
Net Income227.48M197.70M-551.77M184.53M56.10M-26.15M
Balance Sheet
Total Assets10.30B9.21B9.58B9.60B9.58B9.14B
Cash, Cash Equivalents and Short-Term Investments1.44B596.08M631.55M626.65M843.21M1.01B
Total Debt5.23B5.13B5.35B4.80B4.66B4.36B
Total Liabilities6.59B6.37B6.52B6.00B5.85B5.43B
Stockholders Equity3.64B2.78B2.99B3.54B3.71B3.71B
Cash Flow
Free Cash Flow349.64M394.45M-265.82M323.25M-285.77M-74.48M
Operating Cash Flow361.03M396.59M-258.48M325.25M-283.96M-72.87M
Investing Cash Flow-196.73M-300.79M-336.14M-220.69M101.46M-428.55M
Financing Cash Flow-231.84M-148.25M548.75M-222.26M156.14M1.12B

Howard Hughes Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price76.27
Price Trends
50DMA
70.58
Positive
100DMA
69.41
Positive
200DMA
73.38
Positive
Market Momentum
MACD
1.57
Negative
RSI
65.54
Neutral
STOCH
94.95
Negative
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 76.27 is above the 20-day moving average (MA) of 72.98, above the 50-day MA of 70.58, and above the 200-day MA of 73.38, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 94.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HHH.

Howard Hughes Holdings Risk Analysis

Howard Hughes Holdings disclosed 44 risk factors in its most recent earnings report. Howard Hughes Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Howard Hughes Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$3.72B24.7910.49%4.60%6.87%7.23%
76
Outperform
$4.13B26.707.56%6.41%1.37%-16.66%
75
Outperform
$4.05B11.2136.96%11.09%9.90%137.73%
74
Outperform
$4.53B16.667.80%62.02%
69
Neutral
$2.93B35.7311.44%1.11%10.09%16.70%
66
Neutral
$3.25B79.052.07%4.28%-1.15%14.51%
53
Neutral
$1.21B2.91-5.63%5.83%-2.74%-80.64%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HHH
Howard Hughes Holdings
76.27
2.31
3.12%
NHI
National Health Investors
78.29
2.06
2.70%
PCH
PotlatchDeltic
42.03
0.50
1.20%
RYN
Rayonier
26.28
-1.64
-5.87%
JOE
St Joe Company
50.46
-6.33
-11.15%
EPR
EPR Properties
54.25
9.86
22.21%

Howard Hughes Holdings Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Howard Hughes Holdings Secures Major Investment from Pershing Square
Positive
Aug 6, 2025

Howard Hughes Holdings Inc. reported its second-quarter 2025 results, highlighting strong demand and record pricing for its master planned community land, alongside solid performance in operating assets. The company announced a significant investment from Pershing Square, which purchased $900 million of newly issued HHH stock, positioning Howard Hughes to transform into a diversified holding company. Despite a net loss from continuing operations, the company raised its full-year guidance for adjusted operating cash flow and expects record earnings before taxes from its master planned communities. The strategic developments at Ward Village and other areas are anticipated to drive future growth, supported by strong leasing rates and a robust pipeline of condo tower completions.

The most recent analyst rating on (HHH) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Howard Hughes Holdings stock, see the HHH Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Howard Hughes Holdings Announces Board Member Departures
Neutral
Jul 2, 2025

On June 27, 2025, Howard Hughes Holdings Inc. announced that two members of its Board of Directors, Beth Kaplan and Steven Shepsman, will not stand for re-election at the 2025 Annual Meeting of Stockholders. Their decision was not due to any disagreements with the company’s operations, policies, or practices. The company is actively searching for qualified candidates to fill the upcoming vacancies on the board.

The most recent analyst rating on (HHH) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Howard Hughes Holdings stock, see the HHH Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Howard Hughes Holdings President Announces Retirement
Neutral
Jun 10, 2025

Howard Hughes Holdings Inc. announced that its President, L. Jay Cross, will retire on June 30, 2025, ahead of the expiration of his employment agreement on December 1, 2025. As part of a Separation and Release Agreement, Mr. Cross will receive his base salary through December 1, 2025, a bonus, and a discretionary cash payment, along with full vesting of certain stock awards. Additionally, the company has set September 30, 2025, as the date for its 2025 annual meeting of stockholders, with August 4, 2025, as the record date for stockholders eligible to vote. Deadlines for stockholder proposals and nominations for the meeting have been established, ensuring compliance with regulatory requirements.

The most recent analyst rating on (HHH) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Howard Hughes Holdings stock, see the HHH Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 11, 2025