NYSE$HHH

Howard Hughes Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Howard Hughes Holdings Inc. reported strong third quarter 2024 results, driven by record MPC EBT and improved operating assets NOI, leading to increased full-year guidance across all segments.

Howard Hughes Holdings Inc. reported a net income of $96.5 million for the third quarter of 2024, with diluted EPS of $1.95. The company achieved a record MPC EBT of $145 million, a 184% year-over-year increase in residential land sales revenue, and an 8% year-over-year increase in Operating Assets NOI to $65 million. The company also completed the spinoff of Seaport Entertainment Group and raised its full-year guidance for MPC EBT and Operating Assets NOI.

  • Net income from continuing operations per diluted share increased to $1.95, up from $0.64 in the prior year.
  • Master Planned Community (MPC) EBT reached a new quarterly record of $145 million, driven by a 184% year-over-year increase in residential land sales revenue.
  • Total Operating Assets NOI increased 8% year-over-year to $65 million, primarily due to strong office and multi-family performance.
  • The company contracted to sell 29 condominium units in Ward Village® and The Woodlands®, representing $57 million in future revenue.

Headline financials

Total Revenue

$327M

No prior period
EPS (adj)

$1.95

No prior period
MPC EBT

$145M

No prior period
Total Operating Assets NOI

$64.8M

No prior period
Residential acres sold

191

No prior period
Residential price per acre

$1.03M

No prior period
New homes sold

493

No prior period
Multifamily NOI

$15.9M

No prior period
Retail NOI

$12.5M

No prior period
Office NOI

$31.8M

No prior period
Capital Expenditures

-$211M

No prior period
Net Income

$72.5M

No prior period
Operating Income

$198M

No prior period

Revenue & EPS history

Howard Hughes · Revenue · Quarterly

$327M

Q3 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. anticipates continued strong performance for the full year 2024, with increased guidance for MPC EBT and Operating Assets NOI, and higher projected condo sales revenues.

Tailwinds

  • MPC EBT is expected to significantly benefit from solid demand for new homes and strong residential land sales across MPCs, with a raised mid-point guidance of approximately $330 million.
  • Operating Assets NOI is projected to be a new full-year segment record, increasing 5% to 8% year-over-year with a mid-point of approximately $257 million, driven by increased occupancy at new multi-family developments and improved retail leasing.
  • Condo sales revenues are now expected to range between $755 million and $765 million, with gross margins between 27% to 28%, primarily from Victoria Place.
  • Strong leasing momentum in the office portfolio is expected to benefit from new leases.
  • The company anticipates continued momentum and incremental land sales in Bridgeland and The Woodlands Hills®.

Headwinds

  • Growth in residential land sales revenue for 2024 is expected to be largely 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.
  • Free rent periods on many new office leases are expected to partially offset strong leasing momentum.
  • The impact of some tenant vacancies in the office portfolio.
  • Approximately $10 million to $20 million of Victoria Place condo sales revenues are expected to occur in the first quarter of 2025 due to timing of closings.

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 Q3 2024

Historical avgQ3 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%

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