NYSE$HHH

Howard Hughes Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Howard Hughes Holdings Inc. reported strong performance across core businesses with record-setting price per acre in MPCs and improved full-year guidance for Operating Assets and Condos for the second quarter of 2024.

Howard Hughes Holdings Inc. delivered outstanding results in Q2 2024, with net income of $21.1 million, a significant improvement from a prior-year loss. This was driven by robust residential land sales in MPCs, strong Operating Assets NOI, and exceptional pre-sales activity for condominiums. The company also increased its full-year guidance for Operating Assets NOI and condo sales revenue.

  • Net income per diluted share was $0.42, a substantial improvement from a loss of $(0.39) in the prior-year period.
  • MPC EBT reached $123 million, driven by a 315% year-over-year increase in residential land sales at a record quarterly average price of $1 million per acre.
  • Total Operating Assets NOI was $68 million, contributing to a $5 million increase in full-year guidance mid-point to $255 million.
  • Contracted to sell 94 condominiums in Ward Village® and The Woodlands®, representing $207 million of future revenue.

Headline financials

Total Revenue

$317M

No prior period
EPS (adj)

$0.42

No prior period
Capital Expenditures

-$150M

No prior period
Free Cash Flow

-$24.8M

No prior period
Net Income

$21.1M

No prior period
Operating Income

$64.7M

No prior period

Revenue & EPS history

Howard Hughes · Revenue · Quarterly

$317M

Q2 2024
Beat estimate in 2 of 4 quarters(50%)
ActualEstimate

Revenue by segment

Howard Hughes · $482M total across 5 segments · Q4 2022

  • Condominium rights and unit sales
    $217M
  • Master Planned Communities land sales
    $117M
  • Rental revenue
    $103M
  • Other land, rental, property revenues
    $24.6M
  • Builder price participation
    $19.9M

Forward guidance

Howard Hughes Holdings Inc. has increased its full-year 2024 guidance for Operating Assets NOI and condo sales revenues, while reaffirming MPC EBT guidance.

Tailwinds

  • MPC EBT is expected to benefit from record residential land sales as homebuilders seek to replenish low lot inventories.
  • New home sales in Summerlin, Bridgeland, and The Woodlands Hills are on pace to exceed 2023 results.
  • Operating Assets NOI is projected to benefit from increased occupancy at new multi-family developments in Downtown Columbia, Summerlin, and Bridgeland.
  • Improved retail leasing and new tenants in Downtown Columbia, Ward Village, and The Woodlands are expected to boost Operating Assets NOI.
  • Condo sales revenues are now expected to range between $730 million and $750 million, an increase from previous guidance.

Headwinds

  • MPC EBT year-over-year gains are expected to be offset by reduced EBT associated with exceptional commercial land sales and builder price participation during 2023.
  • Limited inventory of custom lots available to sell at Aria Isle in The Woodlands and The Summit in Summerlin due to their significant past success.
  • Operating Assets NOI will be partially offset by free rent periods on many of the new office leases.
  • The impact of some tenant vacancies in the office portfolio will negatively affect Operating Assets NOI.
  • New office developments recently completed will partially offset Operating Assets NOI.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.7%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.2%

Avg return

30 days after

45%

5 / 11 earnings

Positive

+11.3%

Q3 2025

Best reaction

-9.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.5%+1.0%+2.4%
Q4 2025-9.7%-11.5%-25.0%
Q3 2025+11.3%+7.3%+6.5%
Q2 2025+1.7%+4.7%+14.1%
Q1 2025+1.8%+4.3%-0.1%
Q4 2024+0.4%-0.2%+0.3%
Q3 2024-0.4%-1.6%-2.0%
Q2 2024+0.0%-0.4%+13.8%
Q1 2024+0.0%-8.1%-10.3%
Q4 2022+0.0%-3.1%-4.1%
Q3 2022-1.2%-3.1%+2.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro