Howard Hughes Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Net loss attributable to common stockholders was $1.1 million for the quarter, compared to net income of $119.5 million in the prior-year period.
• Total revenues were $636.3 million for the quarter, up from $390.2 million in the prior-year period.
• Net earned insurance and reinsurance premiums were $315.8 million for the quarter, compared to $0 in the prior-year period.
• Insurance segment reported an underwriting loss of $5.7 million with a combined ratio of 101.8% (loss ratio 63.5%, expense ratio 38.3%); underlying results excluding purchase accounting adjustments showed underwriting income of $16.1 million and a combined ratio of 94.9%.
• Insurance investment portfolio delivered net insurance investment income of $22.7 million and net investment gains of $50.9 million.
• AdVantage insurance-linked securities (ILS) structure contributed $13.0 million in net fee income.
• Master Planned Communities (MPC) EBT was $89.5 million, down $115.5 million from $205.0 million in the prior-year period.
• Total Operating Assets NOI increased 8% to $73.0 million in the quarter, compared to $67.9 million in the prior-year period.
• Income before income taxes was $76.6 million for the Insurance segment and $1,132 thousand for the consolidated entity.
• Consolidated operating income was $157.0 million for the quarter, down from $189.6 million in the prior-year period.
• Cash and cash equivalents were $2.9 billion as of September 30, 2026, compared to $1.5 billion as of December 31, 2025.
• Total assets were $16.3 billion as of September 30, 2026, compared to $10.6 billion as of December 31, 2025.
• Total liabilities were $11.2 billion as of September 30, 2026, compared to $6.8 billion as of December 31, 2025.
• Total stockholders' equity was $4.0 billion as of September 30, 2026, compared to $3.8 billion as of December 31, 2025.

Guidance and Future Outlook

• Announced intention to transition the real estate model to an asset-light real estate development and asset management platform by monetizing select real estate assets through asset sales and joint ventures.
• Forward-looking statements indicate risks regarding the ability to transition the real estate business, raise third-party capital, monetize assets at anticipated values, and integrate Vantage's insurance business.

Business Segments and Product Lines

• Insurance and Reinsurance: Vantage contributed $315.8 million of net earned insurance premiums and $76.6 million of income before income taxes. Losses included no catastrophe losses and $4.0 million of favorable prior-year development, impacted by a single current large loss in a specialty line.
• Real Estate (MPC): Pricing remained strong during the first nine months of 2026, with Howard Hughes Communities selling 307.7 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.
• Real Estate (Operating Assets): Total Operating Assets NOI, including contributions from unconsolidated ventures, increased by $5.1 million to $73.0 million.
• Strategic Developments: Closed on two sales of Municipal Utility District (MUD) receivables associated with Bridgeland and The Woodlands Hills that generated net cash proceeds of $177.6 million, resulting in a GAAP loss of $105.4 million.
• Joint Ventures: Consolidation of the Floreo joint venture resulted in a $19.4 million loss.

Market and Competitive Landscape

• The transition of the investment portfolio to one based on common equities and U.S. treasuries was completed.
• The Vantage transition to HHH is in full effect.

Risks and Challenges

• Risks include the ability to transition the real estate business into an asset-light platform, dependence on Vantage operations, and the ability to monetize real estate assets at anticipated values.
• Risks related to Vantage's ability to accurately assess underwriting risk and establish adequate premium rates.
• Risks associated with the integration of Vantage's insurance and reinsurance business and realizing anticipated benefits from transactions with Pershing Square.

Management Commentary and Tone

• Vantage posted solid results during its first full quarter in Howard Hughes.
• Howard Hughes Communities advanced its asset-light strategy for real estate development and asset management.
• The Company brings together long-duration capital, high-quality operating businesses, and disciplined capital allocation to build long-term value.

Other Key Points

• The Company issued 140,000 shares of Series A non-voting exchangeable perpetual preferred stock as of September 30, 2026.
• Common stock outstanding increased to 59.7 million shares as of September 30, 2026, from 59.4 million shares as of December 31, 2025.
• The bulk sale of 231 acres in Summerlin occurred during the third quarter of 2025, impacting prior-year comparisons.
• Conference call and webcast scheduled for November 6, 2026, at 10:00 a.m. Eastern Time.