Howard Hughes' Q4 net income drops

Overview

• Real estate developer's Q4 net income fell significantly year-over-year

• In 2025, the company agreed to acquire Vantage Group Holdings for $2.1 bln

• FY total operating assets NOI increased 8% yr/yr to $276 mln

Outlook

• Howard Hughes expects 2026 adjusted operating cash flow between $415 mln and $465 mln

• Company projects 2026 MPC EBT to range between $343 mln and $391 mln

• Howard Hughes anticipates 2026 condominium sales revenue between $720 mln and $750 mln

Result Drivers

• MPC SALES - Q4 MPC EBT increased 85% to $105 mln, driven by residential land sales at Bridgeland

• OFFICE LEASING - Q4 office NOI rose 24% yr/yr due to strong leasing activity and abatement expirations

• NEW COMMUNITY - Opened Teravalis, a 37,000-acre master planned community, marking a significant development milestone

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "hold."

• Wall Street's median 12-month price target for Howard Hughes Holdings Inc is $95.00, about 14.4% above its February 18 closing price of $83.03

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNX2bxcgt

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