Howard Hughes Holdings Inc.

Thank you for standing by, and welcome to the Howard Hughes Management's first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Eric Holcomb, Senior Vice President of Investor Relations. Please go ahead, sir.

Good morning and welcome to Howard Hughes Holdings First Quarter 2025 Earnings Call. With me today are Bill Ackman, Executive Chairman, David O'Reilly, Chief Executive Officer, Jay Cross, President, Carlos Alea, Chief Financial Officer, Dave Strife, President of Asset Management and Operations, Joe Villain, General Counsel, and Ryan Israel, Chief Investment Officer. Before we begin, I would like to direct you to our website, howardhughes.com, where you can download both our first quarter earnings press release and our supplemental package. The earnings release and supplemental package include reconciliations of non-GAAP financial measures that will be discussed today in relation to their most directly comparable GAAP financial measures. Certain statements made today that are not in the present tense or that discuss the company's expectations are forward-looking statements within the meaning of the federal securities laws. Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that these expectations will be achieved. Please see the forward-looking statement disclaimer in our first quarter earnings press release and the risk factors in our SEC filings for factors that could cause material differences between forward-looking statements and actual results. We are not under any duty to update forward-looking statements unless required by law. I will now turn the call over to our CEO, David O'Reilly.

Thank you, Eric, and good morning. On our call today, I'm going to begin with a recap of the first quarter and cover the segment highlights from our master plan communities. Dave Stripe will cover the operating assets. Jay Cross will provide an update on our strategic developments. Carlos Alea will review our guidance and balance sheet. And then finally, we're going to have Bill Ackman and Ryan Israel join us to discuss the recent transaction and the future strategic direction for the company before we open up the lines for Q&A. Jumping into our results, we experienced continued strong momentum across our segments in the first quarter, delivering adjusted operating cash flow of $63 million, or $1.27 per diluted share. In our MPCs, home builder demand for residential land remained robust, leading to sequential and year-over-year growth of land sales, acre sold, price per acre, and EBT. With this strong start to the year and significant land sales expected in the second and third quarters, we have strong confidence in our full-year EBT guidance of $375 million. Our operating assets delivered $72 million of NOI, representing a new quarterly record with impressive 9% year-over-year growth. In strategic developments, demand for our condominiums remains solid. Our condo pipeline now represents $2.7 billion of future revenue that will be earned between 2025 and 2028. From a financing perspective, we close on several important financings that increase liquidity and extended our maturities that Carlos will detail later. Looking deeper into our results of the MPC segment, we delivered solid MPC EBT of $63 million in the first quarter, representing an increase of $39 million, or 161% year-over-year. This growth was underscored by a $39 million increase in land sales, which was primarily driven by two SuperPAT sales totaling 29 acres in Summerlin, for more than $1.5 million per acre. Land sales in Texas were also strong, with 41 residential acres sold in Bridgeland and the Woodlands, Woodland Hills that is, up 31% year-over-year. Overall, we achieved an impressive average price per acre of $991,000 during the first quarter, reflecting both sequential and year-over-year improvements. MPC EBT growth was also favorably impacted by an $11 million increase in equity earnings, primarily related to improved results from our Summit joint venture. At our Florio joint venture in Arizona, we sold another 11 acres of residential land for $793,000 an acre in the quarter. Lot and infrastructure development in Florio remained on track, and we expect home builders will start construction on model homes this summer. Turning to new home sales. we continue to see solid demand across our MPCs with a total of 543 homes sold in the first quarter. Although this represented a decline compared to last year's outsized first quarter, which saw the highest quarterly results in three years after mortgage rates began to subside, it did represent a sequential improvement. In fact, new home sales outpaced both the third and fourth quarters of 2024 by 11% and 6% respectively. providing a strong indicator of underlying demand and increased confidence in our land sale projections for the year. Sequentially, our most notable gains were in Bridgeland and Summerlin, which saw home sales growth of 12% and 9%, respectively, in the first quarter. During a quarter when the national housing market showed some signs of softening, our home sales are a testament to the resilience of our MPCs and the exceptional quality of life they provide their residents. Overall, with solid demand for new homes in all of our communities, as well as continued undersupply of vacant developed lots, we expect home builder demand for incremental acreage will remain elevated. This will ultimately drive what we expect will be record residential land sales, price per acre, and MPC EBT for the full year of 2025. With that, I'm going to turn the call over to Dave Streif for a review of our operating assets.