HHH

Howard Hughes Holdings delivered a second quarter that surpassed Wall Street’s expectations, with revenue and profit both exceeding analyst estimates. Management credited this performance to the initial consolidation of Vantage Holdings, which contributed to significant top-line growth, as well as continued strength in its master planned communities and condominium sales. CEO David O’Reilly highlighted that land sales and recurring cash flow from operating assets provided vital capital for the Vantage acquisition, while Executive Chairman Bill Ackman emphasized the company’s ability to monetize non-core real estate assets and redeploy funds into higher-return opportunities. Is now the time to buy HHH? Find out in our full research report (it’s free). Revenue: $1.12 billion vs analyst estimates of $469 million (330% year-on-year growth, 139% beat) EPS (GAAP): $2.68 vs analyst estimates of $0.99 (significant beat) Operating Margin: 28.4%, up from 25.4% in the same quarter last year Market Capitalization: $3.97 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Anthony Paolone (JPMorgan) asked about Howard Hughes’ financial capacity after the Vantage acquisition and the role of Pershing Square in future capital support. Executive Chairman Bill Ackman clarified that future capital will likely be generated from real estate asset sales and third-party partnerships, not additional equity infusions. Alexander Goldfarb (Piper Sandler) questioned how management decides which real estate assets to monetize while protecting competitive advantages in master planned communities. CEO David O’Reilly explained that core assets offering strategic value will be retained, while peripheral or non-strategic assets are candidates for sale or partnership. Meyer Shields (Keefe, Bruyette & Woods) asked if expected returns from the equity investment portfolio affect Vantage’s underwriting margin targets. Executive Chair Marc Grandisson responded that investment returns are not factored into underwriting margin or ROE goals, which remain focused on core insurance operations. Tucker Andersen (Above All Advisors) raised questions about the impact of artificial intelligence on insurance underwriting and cycle duration. Grandisson said AI is already enhancing operational efficiency and data analysis but is unlikely to eliminate underwriting cycles due to ongoing human factors. Unknown Attendee (Individual Investor) inquired how capital allocation discipline is maintained now that insurance and real estate compete for resources. Ackman stated that incremental free cash flow will be prioritized for Vantage, with capital redeployed from lower-return assets to higher-return insurance growth. In the coming quarters, the StockStory team will be watching (1) the pace and profitability of Vantage’s underwriting expansion, (2) evidence of successful monetization or joint ventures of real estate assets, and (3) ongoing rebalancing and performance of the investment portfolio managed by Pershing Square. Execution against these milestones will provide insight into Howard Hughes’ ability to sustain its strategic transformation and deliver attractive returns. Howard Hughes Holdings currently trades at $66.10, in line with $65.69 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Download the Complete Report Here Key Takeaways: 3Q FY26 results increasingly reflected ALCO’s post-citrus operating model, with the revenue base now centered on land-management activities. Revenue increased 7.7% y/y to $9.0 million from $8.4 million, as Land Management and Other Operations revenue rose to $7.9 million from $0.6 million, more than offsetting the 85.6% decline in Alico Citrus revenue to $1.1 million from $7.8 million following completion of the final significant citrus harvest. Net income improved to $2.1 million from a loss of $18.3 million y/y, while adjusted EBITDA was $4.6 million and FY26 guidance was raised to approximately $15 million. Beginning in 3Q FY26 (q/e June 30, 2026), ALCO also moved to a single reportable segment following substantial completion of the citrus wind-down, providing a structural marker that the citrus wind-down is substantially complete and the financial reporting increasingly reflects execution of the land-focused model. A key strategic development is ALCO’s new agricultural lease covering approximately 3,280 acres in Hendry County. The lease commenced July 1, 2026, and initially runs through June 30, 2027, with the lessee holding the right to extend it for an additional ten years. More importantly, the agreement includes an option to acquire approximately 3,280 acres for $29.52 million, or $9,000 per acre, if exercised by June 30, 2029, subject to annual escalation and certain acreage adjustments; an extended lease would push the option period through June 2031. Rather than choosing between leasing and selling the asset today, ALCO can therefore generate agricultural income while preserving exposure to future land-value realization. Recent transaction pricing continues to support upside to our agricultural land assumptions. The new purchase option is initially priced at approximately $9,000 per acre, while ALCO sold 3,546 acres during the first nine months of FY26 for $34.6 million, or approximately $9,761 per acre. Both sit materially above the $4,000-$5,000-per-acre assumptions used in the agricultural component of our valuation framework. The broad consistency between recent realized pricing and the new option value provides further evidence that these assumptions leave meaningful room for upside as additional acreage is monetized. While values will vary by location, infrastructure and development potential, the latest transaction evidence supports upside to conservative portfolio assumptions. Corkscrew Grove East Village has moved beyond the local entitlement milestone achieved in April and into the state and federal permitting phase, progressively reducing the regulatory discount embedded in ALCO’s largest development asset. Corkscrew Grove Villages encompasses approximately 4,660 acres and is planned as two master-planned villages supporting roughly 9,000 homes, including approximately 750 affordable units, and approximately 480,000 square feet of commercial uses. More than 6,000 surrounding acres are expected to enter permanent conservation. Following Collier County approval, the remaining process includes permits from the South Florida Water Management District, U.S. Army Corps of Engineers and U.S. Fish and Wildlife Service, with construction potentially beginning in 2028 or 2029 if approvals are obtained. The Citree acquisition increases ALCO’s control over future land monetization by consolidating full ownership of approximately 1,200 acres in DeSoto County. ALCO acquired the remaining 49% interest in Citree for $2.0 million in cash and assumed sole responsibility for approximately $3.3 million of debt that was already reflected on ALCO’s consolidated balance sheet, eliminating the minority interest and giving the company sole discretion over future leasing, sale or other land-use decisions. Following the Citree transaction and recent land sales, ALCO’s owned portfolio stands at approximately 47,300 acres. Full ownership also allows ALCO to retain a greater share of any future value creation from the property, subject to contingent consideration tied to a sale above $12,000 per acre within 24 months. We view the transaction as a strategic step toward simplifying the portfolio and increasing control over monetization timing. The post-citrus cost structure continues to normalize, improving the durability of the underlying operating model. G&A declined 21.2% y/y in 3Q to $2.3 million, driven by lower employee expenses and insurance premiums, while management continues to review overhead following the citrus wind-down. A new office lease is expected to generate additional savings beginning in 2Q FY27. As the remaining legacy citrus costs roll off, ALCO should operate against a lower and more predictable expense base while new lease and land-management revenues build. Adjusted EBITDA remained positive in 3Q FY26, while the raised full-year outlook highlights the timing variability of ALCO’s transformed earnings model. Adjusted EBITDA was $4.6 million in 3Q FY26 versus $19.3 million in the prior-year quarter, with the y/y decline primarily reflecting lower crop-insurance proceeds and a lower gain on property sales. For the first nine months of FY26, adjusted EBITDA totaled $24.2 million versus $25.3 million a year ago. Despite 9M results already exceeding the full-year outlook, ALCO raised FY26 adjusted EBITDA guidance to approximately $15 million from $14 million, with 4Q expected to be an EBITDA usage quarter as revenue steps down materially while recurring property taxes and G&A continue. Stronger liquidity extends ALCO’s operating runway through FY29 without requiring additional asset sales. Cash increased to $55.6 million at June 30 from $38.1 million at FY25-end, while total debt remained essentially unchanged at approximately $85.4 million and net debt declined to $29.8 million from $47.4 million. Working capital reached $50.6 million with a 7.96x current ratio, compared with $49.2 million and 9.56x at September 2025, while ALCO had approximately $92.5 million of available borrowings under its line of credit against a minimum liquidity requirement of $5.8 million. The company now expects to end FY26 with approximately $48 million of cash and $37 million of net debt, improved from prior guidance of $40 million and $45 million, respectively, while maintaining only the minimum required $2.5 million balance on its revolving credit facility. This liquidity gives ALCO greater flexibility to advance development projects on its own timeline rather than relying on near-term asset sales. Inventory also declined to $0.2 million from $4.2 million at FY25-end, while assets held for sale declined from $9.2 million to zero, further reflecting the runoff of the legacy citrus balance-sheet footprint. Land monetization continued to fund the transformation while supporting capital returns and a stronger cash position. Nine-month operating cash flow was $2.3 million versus $22.8 million last year, with the $20.5 million decline largely attributable to significantly higher crop-insurance proceeds received in FY25. Investing cash flow contributed $28.2 million, driven by $35.0 million of property-sale proceeds and partially offset by the $5.1 million Corkscrew advance, while financing outflows totaled $13.1 million, principally reflecting $10.0 million of share repurchases and the $2.0 million Citree acquisition. The company repurchased 245,399 shares, including 38,059 shares in 3Q, and paid approximately $1.1 million of dividends through 9M FY26, returning more than $11 million to shareholders while still increasing cash by $17.5 million since fiscal year-end. Shares outstanding declined to approximately 7.42 million, leaving the company with greater flexibility to balance shareholder returns, entitlement investment and future land monetization. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. While we do not publish a formal price target for ALCO, our analysis suggests potential upside from current levels. In light of ALCO’s transition to a land-management-focused business model, we apply a sum-of-the-parts framework combining discounted cash flow analysis for near-term development with risk-adjusted asset values for longer-dated development and agricultural land. Any implied upside reflects the output of this framework and should not be interpreted as a formal price target. We value ALCO using a sum-of-the-parts (SOTP) framework that reflects the company’s evolution into a diversified land platform with distinct asset components and risk profiles. Our approach separates value across near-term development projects with defined execution visibility, longer-dated development optionality embedded in the broader land base, and the long-duration value of agricultural land and royalty streams. Near-term development is valued using a conservative discounted cash flow methodology, while longer-dated development and agricultural land value are incorporated on a risk-adjusted basis to reflect timing, liquidity, and execution uncertainty. We believe this framework more appropriately captures ALCO’s underlying asset value than a single consolidated DCF, while maintaining disciplined underwriting and a clear linkage between upside and execution. Illustrative Valuation. Combining our base-case DCF with risk-adjusted contributions from longer-dated development and agricultural land value, and adjusting for net debt, supports an implied equity value modestly above the current share price. We therefore arrive at an illustrative valuation of approximately $50 per share. Importantly, this upside is driven primarily by execution and entitlement progress rather than discount-rate compression or multiple expansion. As regulatory milestones are achieved and development visibility improves, we see scope for incremental value recognition over time. Recent land transactions continue to support potential upside to ALCO’s underlying land valuation. ALCO’s remaining portfolio comprises approximately 47,300 acres, while recent transaction evidence continues to support values materially above the $4,000-$5,000 per acre agricultural assumptions embedded in our conservative NPV framework. The new 3,280-acre purchase option is initially priced at approximately $9,000 per acre, broadly consistent with recent agricultural land-sale values, while ALCO sold 3,546 acres during the first nine months of FY26 for approximately $34.6 million, or roughly $9,761 per acre. While values vary materially by location, infrastructure and development potential, recent realized and contractual pricing provides additional support for upside to the agricultural component of our SOTP. Read Exec Edge’s Initiation on Alico Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Alico 3Q Revenue Jumps on Booming Land Management Strategy – Quarterly Update Report appeared first on ExecEdge.

Interested in Howard Hughes Holdings Inc.? Here are five stocks we like better. Howard Hughes is pivoting toward a diversified holding company following its acquisition of specialty insurer Vantage, with Pershing Square raising its stake to 47%. Management plans to direct increasing free cash flow toward Vantage while monetizing real estate through sales, joint ventures and recapitalizations. Vantage delivered strong premium growth but faced catastrophe losses and adverse reserve development: second-quarter gross and net written premiums rose 29%, while the combined ratio increased to 101.6%. First-half net income rose 94% to $86 million, and management is targeting mid-teens return on equity over the cycle. Howard Hughes’ real estate operations continued to generate cash, with master-planned community earnings before taxes rising 32% to $134.7 million and the Park Ward Village condominium project producing approximately $227 million in net proceeds. The company expects $2.5 billion to $3 billion of excess free cash flow over the next five years. 4 deep values for opportunistic investing Howard Hughes (NYSE:HHH) used its second-quarter earnings call to outline its transition toward a diversified holding company following the June acquisition of Vantage Group Holdings, while reporting continued land-sale demand, condominium cash proceeds and growth in its master-planned communities business. Executive Chair Bill Ackman said the company’s strategy is to direct increasing amounts of capital toward the insurance operation while monetizing certain real estate assets and considering joint ventures, recapitalizations and third-party capital arrangements. Pershing Square acquired $900 million of Howard Hughes stock at $100 per share in May 2025, raising its ownership to 47%, Ackman said. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Howard Hughes acquired Vantage, a specialty insurance platform founded in late 2020, and contributed an additional $300 million of capital. Ackman said Pershing Square also will provide investment management to Vantage without fees. He described the acquisition as part of a longer-term plan to build a diversified holding company, with insurance expected to represent a growing share of the business over time. Marc Grandisson, Vantage Executive Chair and a Howard Hughes director, said Vantage’s results included in Howard Hughes’ consolidated figures covered only the period from the June 4 acquisition closing through June 30. The Vantage supplemental disclosure, however, presented the insurer’s full second-quarter and first-half historical GAAP results excluding acquisition accounting. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High For the second quarter, Vantage reported a combined ratio of 101.6%, compared with 94% a year earlier. Gross written premiums and net written premiums each increased 29% to $473 million and $325 million, respectively, while net earned premium rose 22% to $295 million. Grandisson said the quarterly combined ratio reflected $18 million of catastrophe losses associated with the conflict in Iran and $19 million of adverse prior-period development, primarily in a discontinued transactional-liability line. Together, those items increased the combined ratio by 10.2 percentage points. First-half combined ratio: 96.1% Trailing 12-month combined ratio: 94.7% Year-to-date net income: $86 million, up 94% Year-to-date underwriting income: $23 million, roughly double the prior-year level Second-quarter current accident-year combined ratio excluding catastrophes: 91.4%, versus 96.2% a year earlier → No Hangover: Revisiting Microsoft One Week After Earnings Grandisson said Vantage is focused on underwriting profitability rather than premium volume, conservative reserving, data-driven loss assessments and disciplined risk selection. He said the company aims to generate return on equity at or above the mid-teens over the cycle, with the underwriting target excluding expected returns from the insurer’s equity investment portfolio. Vantage ended the quarter with $1.8 billion of book value and about $1.2 billion of trailing-12-month net written premium, representing a premium-to-surplus ratio of 0.7. AM Best affirmed Vantage’s A- rating and raised its outlook to positive, Grandisson said. He added that S&P’s rating action reflected its group methodology, including Howard Hughes, while Vantage’s standalone anchor rating remained A-. Chief Investment Officer Ryan Israel said Vantage had approximately $3.4 billion of invested assets at closing, largely allocated to fixed-income securities with a duration profile of three to four years. The company moved to restructure the portfolio into a “barbell” approach, pairing short-term U.S. Treasuries with common-stock investments. As of June 30, more than 60% of the portfolio was invested in short-term Treasuries, while approximately $1.1 billion, or about one-third, was invested in equities. Israel said the equity allocation subsequently increased to about 40% of the portfolio. Howard Hughes expects the Treasury portfolio to cover insurance reserves and provide a cushion for claims payments, with the remaining capital invested in liquid, large-cap public companies. Ackman said the company does not plan to invest Vantage assets in private companies. Israel said the equity portfolio declined about 3% during the initial weeks after it was established amid broader market weakness, but had recovered and was up between 4% and 5% during the month following quarter-end. He said the company expects ultimately to allocate at least 50% of invested assets to common stocks, potentially more depending on the amount of insurance float generated. Chief Executive Officer David O’Reilly said master-planned community earnings before taxes increased 32% year over year to $134.7 million, driven mainly by residential and commercial land sales. New-home sales increased 12%, including gains of 34% at The Woodlands Hills and 17% at Bridgeland, alongside continued growth at Summerlin. O’Reilly said the company’s wholly owned land bank represents about $5.6 billion of projected margin-equivalent residual value, excluding future opportunities at Teravalis and Floreo. He emphasized that land-sale results can vary by quarter, but said the company continues to see healthy builder demand and pricing power across its communities. The company also sold Creekside Park and Creekside Park The Grove, producing approximately $30 million of net proceeds after debt repayment and generating an approximately 30% project-level internal rate of return over the life of those investments, according to O’Reilly. Howard Hughes plans to retain long-term oversight of its master-planned communities while evaluating whether mature assets should remain wholly owned or be placed into alternative structures. O’Reilly said potential options include asset sales, joint ventures, recapitalizations and other transactions intended to release capital for higher-return opportunities. Its condominium platform generated about $227 million of net proceeds after repayment of the construction loan from the completion of The Park Ward Village. O’Reilly said the company has more than $4 billion of expected future condominium revenue, with about 78% already under contract. Ackman said the company views Vantage as the priority destination for incremental free cash flow, following the funding of insurance liabilities. He said Howard Hughes expects to generate $2.5 billion to $3 billion of excess free cash flow during the next five years and could supplement that capital through real estate monetizations and outside partnerships. “The priority for every incremental dollar of free cash flow is to put it into Vantage,” Ackman said, while adding that the company intends to maintain discipline in determining whether capital can earn higher returns in insurance, public equities or real estate development opportunities. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Howard Hughes Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Vantage Combined Ratio (Q2): 101.6%, compared to 94% in the prior year quarter. Gross and Net Written Premium (Q2): Each rose 29% to $473 million and $325 million, respectively. Net Earned Premium (Q2): $295 million, up 22% year-over-year. Catastrophe Losses (Q2): $18 million tied to the conflict in Iran. Adverse Prior Development (Q2): $19 million, largely in the discontinued transaction liabilities line. Combined Ratio (First Half): 96.1%. Combined Ratio (Trailing 12-Month): 94.7%. Net Income (Year-to-Date): Increased to $86 million, up 94%. Underwriting Income (Year-to-Date): Grew to $23 million, roughly double the prior year. Current Accident Year Combined Ratio Ex-Catastrophes (Q2): Improved to 91.4% from 96.2% in the prior year quarter. Current Accident Year Combined Ratio Ex-Catastrophes (Year-to-Date): Improved to 90.9% from 94.6%. Vantage Book Value (End of Q2): $1.8 billion. MPC Earnings Before Taxes (Q2): Increased 32% year-over-year to $134.7 million. New Home Sales Growth (Q2): Increased 12%, including 34% at Woodlands Hills and 17% at Bridgeland. Remaining Wholly Owned Land Bank: Approximately $5.6 billion of projected margin effective residual value. Asset Sale Proceeds: Sold Creekside Park and Creekside Park The Grove, generating approximately $30 million of net proceeds after debt repayment. Condominium Net Proceeds: Park Ward Village generated approximately $227 million of net proceeds after repayment of the construction loan. Future Condominium Revenue: More than $4 billion of future expected revenue, with roughly 78% already under contract. Warning! GuruFocus has detected 5 Warning Signs with HHH. Is HHH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Howard Hughes Holdings Inc (NYSE:HHH) successfully closed the Vantage acquisition, adding a diversified specialty insurance platform with permanent capital and a strong foundation for growth. The recruitment of Marc Grandisson as Executive Chairman and David Gansberg as CEO-designate brings top-tier insurance industry leadership, expected to drive significant value creation. Real estate segment showed strong performance with MPC earnings before taxes up 32% year-over-year, driven by robust land sales and healthy demand across communities. The condominium platform delivered substantial cash proceeds of $227 million from Park Ward Village, with a pipeline of over $4 billion in future revenue, 78% under contract. Vantage's underwriting metrics improved, with the current accident year combined ratio (ex-cat) improving to 91.4% in Q2 from 96.2% a year ago, and year-to-date net income up 94%. The investment portfolio has been repositioned to a barbell strategy with short-term treasuries and a growing equity portfolio, which has already outperformed a fixed-income-only approach. Management is committed to disciplined capital recycling, including asset sales and potential joint ventures, to unlock value and redeploy capital into higher-return opportunities. The company maintains significant liquidity and a low premium-to-surplus ratio of 0.7, with AM Best affirming an A- rating and upgrading the outlook to positive. Vantage's Q2 combined ratio was 101.6%, above the 94% reported a year ago, impacted by $18 million in catastrophe losses and $19 million in adverse prior-year development. The insurance market is in a softening phase (Stage 3), with some lines entering Stage 4, leading to increased competition and moderating rates, which could pressure future growth. The equity portfolio experienced a 3% decline during the establishment period due to market weakness, though it has since recovered. S&P's rating action reflected the group's methodology including Howard Hughes, not the stand-alone quality of Vantage, potentially limiting access to certain reinsurance or business opportunities. The company's stock price remains near the same level as 15 months ago despite significant progress, indicating the market has not yet fully recognized the intrinsic value of the new strategy. Adjusted maintenance free cash flow from operating assets declined modestly due to increased leasing investments and higher interest expense. The transition period until David Gansberg joins (due to a noncompete) may create uncertainty in executing the insurance growth strategy. The company's high-cost capital structure and non-REIT status may limit its ability to compete for real estate investments without bringing in third-party capital. Q: How should we think about the financial capacity of Howard Hughes beyond what the balance sheet allows, and is there more support from Pershing Square for other acquisitions?A: Bill Ackman (Trades, Portfolio) (Executive Chairman) stated that Pershing Square's $1 billion preferred equity investment is what is needed for the company to execute its plan. He emphasized that incremental capital will come from the existing real estate assets through joint ventures, raising third-party capital, and other monetization strategies, rather than relying on Pershing Square. Ryan Israel (CIO) added that this is on top of the $2.5 billion to $3 billion in excess free cash flow the company is expected to generate over the next five years. Q: Can you recap the current allocation of the Vantage investment portfolio and the target allocation over time?A: Ryan Israel (CIO) explained that the portfolio has been rebalanced to a barbell approach. As of the end of the quarter, over 60% was in short-term US treasuries to back insurance reserves with no duration or credit risk. The equity portfolio, which was about one-third of the total, has since been increased to approximately 40%. The long-term target is to have at least 50% of the overall invested assets in common stocks, potentially higher, while the float remains backed by short-dated treasuries. Q: As Howard Hughes grows into a larger holding company, what lessons from Berkshire Hathaway's experience matter most, and where should Howard Hughes do it differently?A: Bill Ackman (Trades, Portfolio) (Executive Chairman) highlighted that the most important lesson is to err toward business durability and quality, especially in a world with disruptive forces like AI. He noted that the vast majority of Berkshire's value was built in its insurance operations through selective underwriting and intelligent investment. He also stressed that Berkshire created value on a largely fixed share count, and Howard Hughes will avoid issuing equity at current prices, instead redirecting capital from lower-returning assets into the high-returning insurance business. Q: How are you thinking about monetizing parts of the real estate portfolio without losing the competitive advantage of the holistic MPC approach?A: David O'Reilly (CEO) stated that the strategy hasn't changed. For assets where Howard Hughes has a competitive advantage through disproportionate ownership or market share, they will continue to own them, but not necessarily 100%. They will use joint ventures and other monetization strategies to maintain control and management. For peripheral assets that don't provide a competitive advantage, they will look to monetize them at the right time when prices are appropriate. Q: Does the expected return from the equity component of the investment portfolio factor into the underwriting margin targets and long-term ROE goal?A: Marc Grandisson (Director) answered definitively, "No, it doesn't." This indicates that the underwriting targets and ROE goals are based solely on underwriting performance, independent of investment returns. Q: Given the rapid changes in the insurance cycle, does that impact near-term planning for building the business?A: Marc Grandisson (Director) said it does not impact near-term planning. He noted that Vantage is undersized relative to its capability, allowing it to pick its spots and be nimble. He expressed confidence in the opportunities despite some lines transitioning to later cycle stages, noting that Vantage is not a huge property cat writer, which mitigates the impact of the quickest-moving market segments. Q: How are you thinking about scale specifically on reinsurance at this point?A: Marc Grandisson (Director) explained that reinsurance may grow quicker in the short term as they add new products and lines of business, allowing them to take advantage of market opportunities. He stated that the relative contribution of reinsurance versus insurance will be dictated by the market and opportunities, with reinsurance being a slow, steady build over time. Q: Since the goal of Vantage is to mirror Pershing's holdings, would it make sense to buy PSUS to take advantage of the discount to net asset value?A: Bill Ackman (Trades, Portfolio) (Executive Chairman) acknowledged that PSUS is trading at about a 23% discount to its underlying holdings, which he views as extremely attractive. Ryan Israel (CIO) added that Howard Hughes and PSUS reflect different things, with Howard Hughes offering a rapidly growing insurance business and a real estate business, both trading at a significant discount to intrinsic value, while PSUS is a pure play on publicly traded securities. Q: How do you view AI changing how you want to operate Vantage in the future, and what are you doing to take advantage of it?A: Marc Grandisson (Director) said AI is already being used across Vantage to improve efficiency, coding, and decision-making. He sees it as a great tool for better execution and data gathering. Over time, he expects more automation across the supply chain and potential integration across the value proposition. He noted that while it's hard to predict the future, AI will enable better decisions, and Vantage is already using it as a tool. Q: Do you care to speculate if AI might change the nature and duration of underwriting cycles?A: Marc Grandisson (Director) drew on historical precedent, noting that the introduction of property cat modeling in the mid-'90s was supposed to standardize risk and eliminate soft markets, but it didn't solve the cycle. He attributed this to human nature and the way underwriting teams are compensated. He stated that as long as there is human intervention, the cyclical nature of the business will persist, and he doesn't expect to see no human intervention in his lifetime. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, Howard Hughes Holdings (HHH) reported revenue of $1.12 billion, up 330.2% over the same period last year. EPS came in at $2.68, compared to $0.44 in the year-ago quarter. The reported revenue represents no surprise over the Zacks Consensus Estimate of $0 million. With the consensus EPS estimate being -$999,900.00, the EPS surprise was +100%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Howard Hughes Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Master Planned Community land sales: $170.94 million versus $97.57 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +36.7% change. Revenues- Condominium rights and unit sales: $706.31 million versus the two-analyst average estimate of $299.11 million. Revenues- Strategic Developments Segment: $4.41 million versus the two-analyst average estimate of $299.75 million. Revenues- Operating Assets Segment: $119.96 million versus $121.95 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3% change. Revenues- Master Planned Communities Segment: $181.74 million versus the two-analyst average estimate of $115.08 million. The reported number represents a year-over-year change of +26.5%. Segment EBT- Master Planned Communities: $134.68 million compared to the $89.62 million average estimate based on two analysts. View all Key Company Metrics for Howard Hughes Holdings here>>> Shares of Howard Hughes Holdings have returned -11.1% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howard Hughes Holdings Inc. (HHH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning Howard Hughes from a pure-play real estate developer into a diversified holding company modeled after Berkshire Hathaway, prioritizing insurance as the primary growth engine. The acquisition of Vantage Holdings provides a permanent capital platform designed to exploit Pershing Square's investment expertise to generate high risk-adjusted returns on float. The appointment of Marc Grandisson as Executive Chair and David Gansberg as CEO-designate is viewed as a 'dream team' recruitment, bringing top-tier industry leadership to a young, scalable operation. Real estate performance remains robust despite high interest rates, driven by strong demand in pro-business, low-tax jurisdictions like Texas and Las Vegas. The company is shifting toward a 'self-liquidating' real estate model, where land and condo sales naturally generate cash to be reinvested into the higher-compounding insurance business. Management intends to prune the real estate portfolio, exiting non-core assets and utilizing joint ventures to reduce capital intensity while maintaining platform control. The company expects to become disproportionately an insurance holding company over the next several years as real estate assets are monetized and capital is redirected to Vantage. Vantage aims to achieve mid-teens return on equity over the cycle by prioritizing underwriting profit over volume and maintaining a conservative reserving approach. The investment strategy for insurance float will follow a 'barbell approach,' keeping 100% of net reserves in short-term U.S. Treasuries while allocating the surplus to a concentrated portfolio of high-quality common stocks. Management anticipates generating $2.5 billion to $3.0 billion in excess free cash flow over the next five years from existing real estate operations to fund Vantage's growth. Future real estate developments, such as the Toro District, may increasingly utilize third-party capital or pension fund partnerships to earn higher returns on the Howard Hughes development platform. Vantage's Q2 combined ratio of 101.6% was impacted by $18 million in catastrophe losses related to the conflict in Iran and $19 million in adverse prior-year development. The company successfully liquidated Vantage's legacy fixed-income portfolio, previously managed by external firms, to eliminate duration and credit risk. S&P's recent rating action on Vantage reflected Howard Hughes' corporate methodology rather than the standalone quality of the insurance operation, which maintains an A- anchor rating. A non-compete agreement for CEO-designate David Gansberg remains in effect until June 2027, during which time Marc Grandisson and Greg Hendrick will lead the transition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Bill Ackman stated that the $1 billion in incremental capital already provided is sufficient for current plans, and further capital will likely come from internal real estate monetization. Management emphasized that the current market cap does not reflect the company's actual capital resources or the intrinsic value of its underlying assets. Ryan Israel clarified that the equity allocation has already increased to 40% of the portfolio post-quarter and could eventually exceed 50% depending on float generation. The portfolio will focus on 12 to 15 'royalty-like' businesses with strong secular growth, avoiding private equity or illiquid investments. Marc Grandisson noted that while AI is improving internal coding and data gathering, it is unlikely to eliminate the cyclical nature of insurance due to the persistence of human intervention in decision-making. Vantage is positioning itself to be a 'nimble' participant that can capture hardening pockets of the market even as broader lines soften.

Howard Hughes® closes approximately $2.1 billion acquisition of Vantage, establishing specialty insurance and reinsurance as a second operating platform THE WOODLANDS, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company,” “HHH,” “Howard Hughes,” or “we”) today reported second quarter 2026 results, highlighted by the June 4 closing of Vantage Group Holdings, Ltd. (Vantage), a specialty insurance and reinsurance company. The Vantage acquisition reshapes Howard Hughes into a diversified holding company powered by two principal operating platforms: Howard Hughes Communities™ and Vantage. Second Quarter 2026 Highlights: Net income attributable to common stockholders was $158.4 million for the quarter, compared to a net loss of $12.1 million in the prior-year period. Vantage acquisition closed June 4, 2026. Through its wholly owned subsidiary Howard Hughes Insurance Holdings, LLC, the Company completed the acquisition of 100% of Vantage Group Holdings, Ltd. for cash consideration of approximately $2.1 billion. Consolidated results include Vantage only for the stub period from June 4, 2026 through June 30, 2026. Accordingly, period-over-period and sequential comparisons, including total revenues, net income attributable to common stockholders, and earnings per share, are not comparable to prior periods and do not reflect run-rate performance. $1.0 billion of preferred stock issued to Pershing Square. On June 4, 2026, the Company issued and sold $1.0 billion of Series A Non-Voting Exchangeable Perpetual Preferred Stock to an affiliate of Pershing Square to partially fund the Vantage acquisition and to provide additional capital to Vantage. The preferred stock carries no current cash dividend and may be repurchased by the Company pursuant to its terms. Insurance platform's initial contribution. For the stub period, Vantage contributed $97.2 million of net earned insurance premiums, $4.7 million of underwriting income, $11.0 million of net insurance investment income, and $20.8 million of loss before income taxes, with a combined ratio of 95% (loss ratio 57%; expense ratio 38%). These partial-period ratios are not indicative of expected full-year performance. The real estate platform delivered Master Planned Communities (MPC) EBT of $134.7 million and Total Operating Assets Net Operating Income (NOI) of $70.5 million in the quarter. Segment detail and prior-year comparisons are presented in Financial Highlights below. Strong liquidity position of $2,648.0 million of cash and cash equivalents, including cash held at Vantage, $515.0 million of undrawn capacity on the Secured Bridgeland Notes, $1.0 billion of undrawn lender commitments available for property development, and limited near-term debt maturities, all as of June 30, 2026. Financial Highlights Real Estate MPC MPC EBT of $134.7 million in the second quarter, up 32% from $102.4 million in the prior-year period. Pricing also remained strong during the first six months of 2026, with Howard Hughes Communities selling 206.7 residential acres at an average price of $1.2 million per acre and 9.8 commercial acres at an average price of $0.9 million per acre. Operating Assets Total Operating Assets NOI, including contributions from unconsolidated ventures, continued to grow, increasing by $1.7 million, or 2% to a total of $70.5 million in the quarter compared to $68.9 million in the prior-year period. In June 2026, Howard Hughes Communities sold Creekside Park and Creekside Park The Grove in The Woodlands for $127.3 million, generating $30.2 million of net proceeds after loan payoffs and closing costs. Over the life of the investments, the asset generated approximately $45 million of cumulative cash flow and an outsized project-level IRR. Strategic Developments Howard Hughes Communities completed construction of The Park Ward Village and closed sales of 97% of its units during the quarter, generating $226.6 million of net proceeds after repayment of debt. Insurance and Reinsurance Insurance and Reinsurance figures reflect the stub period from the acquisition date of June 4, 2026 through June 30, 2026, and include the impact of Purchase Accounting. As a result, they are not indicative of run-rate performance. Net earned insurance premiums were $97.2 million for the stub period from June 4, 2026 through June 30, 2026. Underwriting income was $4.7 million, with a combined ratio of 95%, comprising a loss ratio of 57% and an expense ratio of 38%. These partial-period ratios are not indicative of expected full-year performance. Net insurance investment income was $11.0 million. Net loss before income taxes was $20.8 million. Conference Call & Webcast Information Howard Hughes Holdings Inc. will host its second quarter 2026 earnings conference call on Thursday, August 6, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). A live webcast will be available in the Events & Webcast section of the Company’s investor relations website. Participants who wish to ask questions by telephone should preregister using HHH’s earnings call registration webpage. All registrants will receive dial-in information and a PIN allowing them to access the live call. An on-demand replay of the earnings call will be available on the Company’s website immediately after the call for a period of one year. About Howard Hughes Holdings Inc. Howard Hughes Holdings Inc. (NYSE: HHH) is a diversified holding company focused on growing long-term shareholder value. Its principal subsidiaries are Vantage Group Holdings, a leading specialty insurance, reinsurance, and partnership capital platform, and Howard Hughes Communities™, one of the nation’s leading real estate platforms. HHH brings together long-duration capital, high-quality operating businesses, and disciplined capital allocation to build long-term value. For additional information visit www.howardhughes.com. Safe Harbor Statement This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act). We intend these statements to be covered by the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, or business, and are not guarantees of performance. These statements may include words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “realize,” “should,” “transform,” “will,” “would,” and other statements of similar expression. Forward-looking statements should not be relied upon, and actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict, some of which include: (i) our ability to realize the anticipated benefits of the transactions with Pershing Square and our strategy of becoming a diversified holding company; (ii) our ability to identify and consummate transactions as part of our strategy of becoming a diversified holding company; (iii) risks inherent in acquiring or making investments in operating companies, especially companies in industries unrelated to our existing real estate business; (iv) our ability to integrate Vantage’s insurance and reinsurance business into our operations, and realize the financial and strategic benefits currently anticipated from such acquisition; (v) our ability to realize the anticipated benefits of recent transactions, including the May 2025 transactions with Pershing Square and the spinoff of Seaport Entertainment Group Inc. in 2024; (vi) macroeconomic conditions such as volatility in capital markets, unstable economic and political conditions within the U.S. and foreign jurisdictions, geopolitical conflicts, and a prolonged recession in the national economy impacting the real estate and insurance and reinsurance businesses, including but not limited to inflation and changes in interest rates; (vii) changes in trade policies, including tariffs, and related impacts on market conditions and business activity; (viii) our inability to obtain operating and development capital for our properties, including our inability to obtain or refinance debt capital from lenders and the capital markets; (ix) our ability to compete effectively, including the potential impact of heightened competition for tenants and potential decreases in occupancy at our properties; (x) extreme weather conditions, climate change, natural disasters, pandemics or other catastrophes, that may cause property damage or interrupt our real estate or insurance or reinsurance business; (xi) losses that are not insured or exceed the applicable insurance limits as well as insufficient reserves for losses; (xii) increased construction costs exceeding our original estimates, delays or overruns, claims for construction defects, or other factors affecting our ability to develop, redevelop or construct our properties; (xiii) regulation of the portions of our business that are dedicated to the formation and sale of condominiums or insurance and reinsurance, as applicable, including obtaining government permits necessary for the development of our properties; (xiv) fluctuations in regional and local economies, the impact of changes in interest rates on residential housing and condominium markets, local real estate conditions, tenant rental rates, and competition from competing retail properties and the internet; (xv) insufficient reserves for insurance claims and claim expenses due to the impact of social inflation or other factors; (xvi) greater-than-expected loss ratios on business written by Vantage; (xvii) Vantage’s ability to accurately assess underwriting risk and establish adequate premium rates; (xviii) decreases in pricing for property and casualty reinsurance and insurance; (xix) Vantage’s ability to purchase adequate reinsurance; (xx) Vantage’s ability to maintain financial strength ratings; (xxi) material variation of analytical models used in decision making from actual results; (xxii) Vantage’s ability to comply with insurance and tax laws and regulations and other regulatory challenges, including to obtain licenses or admittance in additional jurisdictions to develop its business; (xxiii) inherent risks related to disruption of information technology networks and related systems, including cyber security attacks on us or our vendors; (xxiv) our indebtedness, including our $650,000,000 4.125% senior unsecured notes due 2029, $650,000,000 4.375% senior unsecured notes due 2031, $500,000,000 5.875% senior unsecured notes due 2032, and $500,000,000 6.125% senior unsecured notes due 2034, contain restrictions that may limit our ability to operate our business; (xxv) our directors’ involvement or interests in other businesses, including real estate activities and investments; (xxvi) our dependence on the operations and funds of our subsidiaries, including The Howard Hughes Corporation and Vantage; and (xxvii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2026. Copies of each filing may be obtained from the Company or the Securities and Exchange Commission. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements unless otherwise required by law. Non-GAAP Financial Measures As discussed throughout this release, we use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. Non-GAAP financial measures should not be considered independently, or as a substitute, for financial information presented in accordance with GAAP. A non-GAAP financial measure used throughout this release is net operating income (NOI). We provide a more detailed discussion about this non-GAAP measure and a reconciliation to the most directly comparable GAAP measure in the appendix to this earnings release. The financial statements, exhibits, and Supplemental Information referenced in this release are available in the attached Appendix and through the Investors section of our website. Investor Relations: [email protected] Media Relations: [email protected] Segment Earnings Before Taxes (EBT) Howard Hughes Communities has three real estate business segments, Operating Assets, MPC, and Strategic Developments. EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments. Below are GAAP to non-GAAP reconciliations of certain financial measures, as required under Regulation G promulgated by the Securities and Exchange Commission. Non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures. Net Operating Income (NOI) We define NOI as operating revenues (rental income, tenant recoveries, and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing, and other property expenses). NOI excludes straight-line rents and amortization of tenant incentives, net; interest expense, net; ground rent amortization; demolition costs; other income (loss); depreciation and amortization; development-related marketing costs; gain on sale or disposal of real estate and other assets, net; loss on extinguishment of debt; provision for impairment; and equity in earnings from unconsolidated ventures. This amount is presented as Operating Assets NOI throughout this document. Total Operating Assets NOI represents NOI as defined above with the addition of our share of NOI from unconsolidated ventures. We believe that NOI is a useful supplemental measure of the performance of our Operating Assets segment because it provides a performance measure that reflects the revenues and expenses directly associated with owning and operating real estate properties. We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that property-specific factors such as rental and occupancy rates, tenant mix, and operating costs have on our operating results, gross margins, and investment returns. A reconciliation of segment EBT to NOI for Operating Assets is presented in the table below:

Wall Street expects a year-over-year increase in earnings on higher revenues when Howard Hughes Holdings (HHH) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This land developer is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +11.4%. Revenues are expected to be $536.77 million, up 105.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.38% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Howard Hughes Holdings, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that Howard Hughes Holdings will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Howard Hughes Holdings would post earnings of $0.08 per share when it actually produced earnings of $0.14, delivering a surprise of +75.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Howard Hughes Holdings doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howard Hughes Holdings Inc. (HHH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Over the past six months, Howard Hughes Holdings’s shares (currently trading at $72.86) have posted a disappointing 11.8% loss, well below the S&P 500’s 7.7% gain. This might have investors contemplating their next move. Is there a buying opportunity in Howard Hughes Holdings, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. Despite the more favorable entry price, we’re cautious about Howard Hughes Holdings. Here are three reasons we avoid HHH, plus one stock we’d rather own. Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Howard Hughes Holdings grew its sales at a 16.2% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). On average, Howard Hughes Holdings’s ROIC increased by 1.3 percentage points annually each year over the last few years. This is a good sign, and we hope the company can continue improving. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Howard Hughes Holdings’s $5.80 billion of debt exceeds the $2.49 billion of cash on its balance sheet. Furthermore, its 7× net-debt-to-EBITDA ratio (based on its EBITDA of $502 million over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company’s rating if profitability falls. Howard Hughes Holdings could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Howard Hughes Holdings can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. Howard Hughes Holdings doesn’t pass our quality test. After the recent drawdown, the stock trades at $72.86 per share (or a trailing 12-month price-to-sales ratio of 2.9×). The market typically values companies like Howard Hughes Holdings based on their anticipated profits for the next 12 months, but there aren’t enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. We’d recommend looking at our favorite semiconductor picks and shovels play. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Howard Hughes Holdings (NYSE:HHH) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models. The 14 consumer discretionary - real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was 6.7% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.2% since the latest earnings results. Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States. Howard Hughes Holdings reported revenues of $235.9 million, up 18.4% year on year. This print exceeded analysts’ expectations by 20.4%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates. “2026 is a pivotal year for Howard Hughes. Our communities are delivering strong land sales, healthy net new home demand, and continued leasing growth, and we are adding a second engine of long-duration earnings with Vantage,” said David R. O’Reilly, Chief Executive Officer of Howard Hughes. Howard Hughes Holdings pulled off the biggest analyst estimate beat of the whole group. Unsurprisingly, the stock is up 6.3% since reporting and currently trades at $67.50. Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free. Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services. Marcus & Millichap reported revenues of $171.5 million, up 18.2% year on year, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $28.81. Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free. Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories. RE/MAX reported revenues of $70.23 million, down 5.7% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates. As expected, the stock is down 12.7% since the results and currently trades at $9.66. Read our full analysis of RE/MAX’s results here. Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services. JLL reported revenues of $6.39 billion, up 11.1% year on year. This number topped analysts’ expectations by 6.6%. It was a very strong quarter as it also put up a beat of analysts’ EPS and EBITDA estimates. The stock is down 13.6% since reporting and currently trades at $292.75. Read our full, actionable report on JLL here, it’s free. As a majority-owned subsidiary of homebuilding giant D.R. Horton, Forestar Group (NYSE:FOR) develops and sells finished residential lots to homebuilders, focusing primarily on land acquisition and development for single-family homes. Forestar Group reported revenues of $374.3 million, up 6.6% year on year. This result met analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a narrow beat of analysts’ adjusted operating income estimates. Forestar Group had the weakest full-year guidance update among its peers. The stock is up 9.7% since reporting and currently trades at $29.02. Read our full, actionable report on Forestar Group here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.