Howard Hughes Holdings Inc.

Good day and thank you for standing by. Welcome to the Howard Hughes Holdings fourth quarter 2025 earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised, today's conference is being recorded. I would like to hand the conference over to your speaker today, John Saxon, VP Corporate Strategy. Please go ahead.

Good morning, and welcome to the Howard Hughes fourth quarter 2025 earnings call. With me today are Bill Ackman, Executive Chairman, David O'Reilly, Chief Executive Officer, Ryan Israel, Chief Investment Officer, and Carlos Olea, Chief Financial Officer. Before we begin, I would like to direct you to our website, www.howardhughes.com, where you can download both our fourth 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 fourth 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 Executive Chairman, Bill Ackman.

Thank you very much, Sean. And let me just add one addition to the room, Jill Chapman. was formerly head of IR for Hilton, and we're very pleased to announce that we brought her on in an IR capacity at Pershing Square, and she's also going to help, of course, with our investment in Howard Hughes. While we're on the topic of IR, I just thought it would be useful as this business kind of transforms from a pure play real estate and real estate development company into a diversified holding company led by our recent announcement to acquire Vantage Holdings. Good question and some question I've received from shareholders is how should we think about this business? What are the metrics that we should follow? And I think Howard Hughes over time also suffered a bit from shareholders trying to figure out how do I think about this business? And the conventional public company, there's usually a certain amount of gap earnings or an adjusted number or a free cash flow number. And people want a simple rubric for thinking about it. What multiple do I put on this number? How do I track this number over time? And the multiple is determined based on the persistency and the growth of those kind of earnings over time. And when you think about the Howard Hughes business, it's very challenging in our view. And actually, it's hard to get to a proper indication of value using a conventional approach. And I think you have to think about the business according to its sort of different components. The easiest place to begin, of course, is with stabilized finance. income-producing real estate assets, apartments, office, retail, et cetera. Obviously, these are relatively easy to manage. There are plenty of comparables you can look at. And I think the only complexity that Howard Hughes is thinking about as we lease up assets, assets that are 95% rented, fully stabilized, it's easy. But we always have some amount of development, some amount of lease up in the portfolio. But still, I think that's a pretty easy place to begin. Then there's our condominium business. We have a pipeline of product under contract. You get pretty good estimates of what the margins are on those sales as those properties get delivered. I think a DCF is a pretty straightforward way to think about what those assets are worth. Because we really don't start building until we have sold a substantial majority of the the units and these projects, and we've got a very good track record for delivering them on time and on budget. It's a very low-risk business compared to what people normally think about an economy and business where you're highly speculative. You have to build as soon as you can because you lever it up to buy a piece of property. Here, of course, we own the real estate outright. We can pick our moment, and we don't start construction until we know this is going to be a successful product with a lot of demand. And, you know, today we've got, you know, how many million square feet left of product without, you know, why don't we start there, Hawaii?