Howard Hughes Holdings Inc. Reports Second Quarter 2026 Results

Rhea-AI Summary

Howard Hughes Holdings (NYSE: HHH) reported second quarter 2026 net income attributable to common stockholders of $158.4 million, versus a net loss of $12.1 million a year earlier, on total revenues of $1.12 billion. Results include Vantage Group only for the June 4–30 stub period and are not comparable to prior periods.

The company closed its approximately $2.1 billion cash acquisition of Vantage, establishing specialty insurance and reinsurance as a second operating platform alongside Howard Hughes Communities. It issued $1.0 billion Series A non-voting exchangeable perpetual preferred stock to a Pershing Square affiliate to help fund the deal and capitalize Vantage, with no current cash dividend.

Vantage contributed $97.2 million in net earned premiums, $11.0 million net insurance investment income, $4.7 million underwriting income, and a $20.8 million loss before taxes (95% combined ratio) in the stub period. The real estate platform generated MPC EBT of $134.7 million (up 32% from $102.4 million) and Total Operating Assets NOI of $70.5 million, up 2% year over year. Howard Hughes reported strong liquidity with $2.65 billion of cash and cash equivalents, $515 million of undrawn Secured Bridgeland Notes capacity, and $1.0 billion of undrawn property development commitments as of June 30, 2026.

Positive

• Net income $158.4 million vs. prior-year net loss $12.1 million
• Total revenues $1.12 billion vs. $260.9 million prior-year quarter
• MPC segment EBT $134.7 million, up 32% from $102.4 million
• Operating Assets NOI $70.5 million, up 2% from $68.9 million
• Vantage acquisition closed for approximately $2.1 billion cash consideration
• Liquidity $2.65 billion cash plus $1.52 billion undrawn capacity and commitments

Negative

• Vantage stub-period loss before taxes $20.8 million
• Investment loss $38.3 million in the quarter
• Total liabilities $10.88 billion, up from $6.80 billion at year-end 2025
• Series A preferred $995.8 million mezzanine equity added to capital structure
• Interest expense $45.8 million, slightly above prior-year $43.7 million

News Explained

The completed Vantage deal now appears in HHH’s consolidated accounts through insurance liability line items alongside operating results.

The Vantage acquisition closed on June 4, and HHH’s June 30 consolidated balance sheet included $2,115,416 of reserves for claims and claim expenses and $1,406,691 of unearned premiums.

The balance sheet presents both amounts as liabilities, so the completed transaction now affects HHH’s consolidated accounts through insurance-related liability line items alongside the acquired platform’s operating results.

The same table reports 59,657,062 common shares outstanding at June 30, compared with 59,370,353 at December 31; that disclosed change affects the common-share count used in ownership calculations.

Market Context

Historical earnings reactions included +3.54% and -9.71% outcomes. That dispersion adds context to t...

Analysis

Historical earnings reactions included +3.54% and -9.71% outcomes. That dispersion adds context to this report; low short positioning reduces one volatility factor, while sourced Net Selling warrants monitoring.

Key Figures

Net income attributable to common stockholders: $158.4 million Basic earnings per share: $2.68 Vantage acquisition: Approximately $2.1 billion +5 more

8 metrics

Net income attributable to common stockholders $158.4 million Second quarter 2026, compared with a $12.1 million prior-year net loss

Basic earnings per share $2.68 Second quarter 2026, compared with $(0.22) prior year

Vantage acquisition Approximately $2.1 billion Cash consideration for 100% of Vantage Group Holdings

Preferred stock issued $1.0 billion Series A non-voting exchangeable perpetual preferred stock issued to Pershing Square

Vantage underwriting income $4.7 million June 4 through June 30, 2026 stub period

Combined ratio 95% Vantage insurance platform stub period

MPC EBT $134.7 million Second quarter 2026, up 32% from $102.4 million prior year

Cash and cash equivalents $2,648.0 million As of June 30, 2026, including cash held at Vantage

Previous Earnings Reports

5 past events · Latest: May 07 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 07	First-quarter earnings	Positive	+3.5%	Higher MPC EBT, revenue, NOI, and liquidity ahead of Vantage acquisition
Feb 19	Full-year earnings	Positive	-9.7%	Strong annual results and Vantage agreement accompanied by 2026 guidance
Nov 10	Third-quarter earnings	Positive	+11.3%	Record land sales, condominium presales, and raised full-year guidance
Aug 06	Second-quarter earnings	Positive	+1.7%	Strong land pricing, operating assets, and raised full-year guidance
May 07	First-quarter earnings	Positive	+1.8%	Improved earnings, record NOI, condo sales, and maintained guidance

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions were generally positive, but the record included one sharp negative divergence despite positive reported results.

Key Terms

reinsurance, combined ratio, loss ratio, expense ratio, +1 more

5 terms

reinsurance financial

"Vantage Group Holdings, Ltd. (Vantage), a specialty insurance and reinsurance company."

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

combined ratio financial

"with a combined ratio of 95% (loss ratio 57%; expense ratio 38%)."

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

loss ratio financial

"with a combined ratio of 95% (loss ratio 57%; expense ratio 38%)."

Loss ratio is the percentage of an insurer’s collected premiums that is paid out to cover claims and related costs, showing how much of customer payments are used to settle losses. Investors treat it like a fuel-efficiency gauge for an insurance business—lower loss ratios suggest pricing and risk selection leave more room for profit, while consistently high ratios signal weak pricing, rising claims, or not enough money set aside, which can hurt returns.

expense ratio financial

"with a combined ratio of 95% (loss ratio 57%; expense ratio 38%)."

The expense ratio is the annual fee a mutual fund or exchange-traded fund charges to cover its operating costs, shown as a percentage of the fund’s assets. Think of it like a yearly maintenance or subscription fee that quietly reduces your investment’s returns; even small differences matter over time because the fee compounds against your gains. Investors compare expense ratios to judge how much of their returns will be eaten by fund costs.

View in glossary

purchase accounting financial

"and include the impact of Purchase Accounting."

Purchase accounting is the method used to record a company acquisition by treating the buyer as if it bought each asset and assumed each liability at their fair values on the purchase date. It matters to investors because this re‑valuation can create or change visible items like goodwill, cause future earnings to be lower or higher as costs are spread out, and alter balance sheet strength—much like re‑tagging items and debts after buying a house affects your net worth and monthly costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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:

investorrelations@howardhughes.com
281-929-7700

Media Relations:

press@howardhughes.com
281-929-7700

HOWARD HUGHES HOLDINGS INC. CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED
	Three Months Ended June 30,								Six Months Ended June 30,
thousands except per share amounts		2026				2025				2026				2025
REVENUES
Condominium rights and unit sales	$	706,311			$	193			$	709,445			$	535
Master Planned Communities land sales		170,936				125,041				270,509				196,683
Rental revenue		114,198				111,092				227,747				219,505
Net earned insurance premiums		97,247				—				97,247				—
Net insurance investment income		10,988				—				10,988				—
Builder price participation		6,868				14,138				15,550				23,425
Other revenues		15,779				10,416				26,758				20,060
Total revenues		1,122,327				260,880				1,358,244				460,208
EXPENSES
Condominium rights and unit cost of sales		575,389				811				578,523				1,053
Master Planned Communities cost of sales		59,057				45,178				93,799				70,392
Operating costs		54,723				50,518				107,756				101,307
Rental property real estate taxes		14,798				15,365				31,026				30,664
Insurance claims and claim expenses		55,210				—				55,210				—
Insurance underwriting expenses		37,381				—				37,381				—
Provision for (recovery of) doubtful accounts		123				542				64				386
General and administrative		36,136				34,552				61,894				56,988
Depreciation and amortization		56,609				44,325				105,249				89,464
Other expenses		6,173				4,273				10,065				9,070
Total expenses		895,599				195,564				1,080,967				359,324
OTHER
Gain (loss) on sale or disposal of real estate and other assets, net		51,800				1,656				51,800				15,385
Investment gain (loss), net		(38,278	)			—				(38,278	)			—
Other income (loss), net		(660	)			885				(533	)			(482	)
Total other		12,862				2,541				12,989				14,903
Operating income (loss)		239,590				67,857				290,266				115,787
Interest income		13,803				10,331				28,466				16,449
Interest expense		(45,812	)			(43,694	)			(87,602	)			(84,788	)
Gain (loss) on extinguishment of debt		(413	)			(307	)			(10,639	)			(307	)
Gain (loss) on sale of MUD receivables		(555	)			(48,197	)			(555	)			(48,197	)
Equity in earnings (losses) from unconsolidated ventures		301				(1,887	)			(2,339	)			(567	)
Income (loss) before income taxes		206,914				(15,897	)			217,597				(1,623	)
Income tax expense (benefit)		49,957				(3,821	)			52,575				(385	)
Net income (loss)		156,957				(12,076	)			165,022				(1,238	)
Net (income) loss attributable to noncontrolling interests		1,408				(68	)			1,569				(373	)
Net income (loss) attributable to common stockholders	$	158,365			$	(12,144	)		$	166,591			$	(1,611	)
Basic income (loss) per share	$	2.68			$	(0.22	)		$	2.82			$	(0.03	)
Diluted income (loss) per share	$	2.68			$	(0.22	)		$	2.82			$	(0.03	)

HOWARD HUGHES HOLDINGS INC. CONSOLIDATED BALANCE SHEETS UNAUDITED
thousands except par values and share amounts	June 30, 2026				December 31, 2025
ASSETS
Master Planned Communities assets	$	2,646,774			$	2,635,077
Buildings and equipment		4,031,804				4,028,862
Less: accumulated depreciation		(1,117,166	)			(1,082,124	)
Land		335,872				307,625
Developments		1,072,034				1,477,615
Net investment in real estate		6,969,318				7,367,055
Investments in fixed maturity securities		246,583				—
Investments in equity securities		1,077,535				—
Short-term investments		27,822				—
Investments in unconsolidated ventures		186,153				170,122
Cash and cash equivalents		2,647,959				1,468,507
Restricted cash		717,395				628,651
Accounts receivable, net		940,400				134,122
Municipal Utility District (MUD) receivables, net		579,160				459,729
Reinsurance recoverable on paid and unpaid losses		601,602				—
Deferred expenses, net		175,243				160,966
Intangibles, net		586,439				34,658
Goodwill		282,218				2,336
Other assets, net		872,216				213,315
Total assets	$	15,910,043			$	10,639,461
LIABILITIES
Mortgages, notes, and loans payable, net	$	5,456,403			$	5,109,828
Reserves for claims and claim expenses		2,115,416				—
Unearned premiums		1,406,691				—
Deferred tax liabilities, net		223,113				164,472
Other liabilities, net		1,678,683				1,522,915
Total liabilities		10,880,306				6,797,215
MEZZANINE EQUITY
Series A non-voting exchangeable perpetual preferred stock: $0.01 par value; 140,000 issued and outstanding as of June 30, 2026, and none issued or outstanding as of December 31, 2025		995,764				—
EQUITY
Preferred stock: $0.01 par value; 50,000,000 shares authorized; 140,000 shares designated as Series A Preferred Stock; no other shares issued or outstanding		—				—
Common stock: $0.01 par value; 150,000,000 shares authorized, 66,253,546 issued, and 59,657,062 outstanding as of June 30, 2026, 65,910,640 shares issued, and 59,370,353 outstanding as of December 31, 2025		663				659
Additional paid-in capital		4,478,286				4,458,838
Retained earnings (accumulated deficit)		104,495				(62,096	)
Accumulated other comprehensive income (loss)		1,544				(1,827	)
Treasury stock, at cost, 6,596,484 shares as of June 30, 2026, and 6,540,287 shares as of December 31, 2025		(624,592	)			(620,118	)
Total stockholders' equity		3,960,396				3,775,456
Noncontrolling interests		73,577				66,790
Total equity		4,033,973				3,842,246
Total liabilities, mezzanine equity, and equity	$	15,910,043			$	10,639,461

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.

	Three Months Ended June 30,												Six Months Ended June 30,
thousands except percentages		2026				2025			$ Change					2026				2025			$ Change
Operating Assets Segment EBT
Total revenues	$	119,960			$	116,446			$	3,514			$	239,162			$	230,448			$	8,714
Total operating expenses		(50,520	)			(49,467	)			(1,053	)			(101,445	)			(98,284	)			(3,161	)
Segment operating income (loss)		69,440				66,979				2,461				137,717				132,164				5,553
Depreciation and amortization		(52,028	)			(42,305	)			(9,723	)			(97,606	)			(85,428	)			(12,178	)
Interest income (expense), net		(37,873	)			(34,173	)			(3,700	)			(71,380	)			(68,391	)			(2,989	)
Other income (loss), net		(527	)			634				(1,161	)			(508	)			438				(946	)
Equity in earnings (losses) from unconsolidated ventures		794				(325	)			1,119				6,671				4,318				2,353
Gain (loss) on sale or disposal of real estate and other assets, net		51,800				(1	)			51,801				51,800				9,978				41,822
Gain (loss) on extinguishment of debt		(413	)			(307	)			(106	)			(413	)			(307	)			(106	)
Operating Assets segment EBT	$	31,193			$	(9,498	)		$	40,691			$	26,281			$	(7,228	)		$	33,509
Master Planned Communities Segment EBT
Total revenues	$	181,740			$	143,701			$	38,039			$	294,021			$	228,155			$	65,866
Total operating expenses		(70,390	)			(57,694	)			(12,696	)			(118,267	)			(95,899	)			(22,368	)
Segment operating income (loss)		111,350				86,007				25,343				175,754				132,256				43,498
Depreciation and amortization		(110	)			(88	)			(22	)			(175	)			(199	)			24
Interest income (expense), net		24,012				18,107				5,905				45,724				34,893				10,831
Other income (loss), net		—				35				(35	)			1,860				35				1,825
Equity in earnings (losses) from unconsolidated ventures		(569	)			(1,649	)			1,080				(4,104	)			(5,059	)			955
Gain (loss) on sale or disposal of real estate and other assets, net		—				—				—				—				3,750				(3,750	)
MPC segment EBT	$	134,683			$	102,412			$	32,271			$	219,059			$	165,676			$	53,383
Strategic Developments Segment EBT
Total revenues	$	707,432			$	714			$	706,718			$	711,839			$	1,568			$	710,271
Total operating expenses		(582,986	)			(5,186	)			(577,800	)			(591,075	)			(9,552	)			(581,523	)
Segment operating income (loss)		124,446				(4,472	)			128,918				120,764				(7,984	)			128,748
Depreciation and amortization		(2,068	)			(1,076	)			(992	)			(4,125	)			(2,234	)			(1,891	)
Interest income (expense), net		4,097				4,633				(536	)			9,071				9,279				(208	)
Other income (loss), net		—				132				(132	)			(889	)			(1,130	)			241
Equity in earnings (losses) from unconsolidated ventures		76				87				(11	)			(4,906	)			174				(5,080	)
Gain (loss) on sale or disposal of real estate and other assets, net		—				1,657				(1,657	)			—				1,657				(1,657	)
Strategic Developments segment EBT	$	126,551			$	961			$	125,590			$	119,915			$	(238	)		$	120,153
Appendix – Reconciliation of Non-GAAP Measures

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:

	Three Months Ended June 30,												Six Months Ended June 30,
thousands		2026				2025			$ Change					2026				2025			$ Change
Operating Assets Segment
Total revenues	$	119,960			$	116,446			$	3,514			$	239,162			$	230,448			$	8,714
Total operating expenses		(50,520	)			(49,467	)			(1,053	)			(101,445	)			(98,284	)			(3,161	)
Segment operating income (loss)		69,440				66,979				2,461				137,717				132,164				5,553
Depreciation and amortization		(52,028	)			(42,305	)			(9,723	)			(97,606	)			(85,428	)			(12,178	)
Interest income (expense), net		(37,873	)			(34,173	)			(3,700	)			(71,380	)			(68,391	)			(2,989	)
Other income (loss), net		(527	)			634				(1,161	)			(508	)			438				(946	)
Equity in earnings (losses) from unconsolidated ventures		794				(325	)			1,119				6,671				4,318				2,353
Gain (loss) on sale or disposal of real estate and other assets, net		51,800				(1	)			51,801				51,800				9,978				41,822
Gain (loss) on extinguishment of debt		(413	)			(307	)			(106	)			(413	)			(307	)			(106	)
Operating Assets segment EBT		31,193				(9,498	)			40,691				26,281				(7,228	)			33,509
Add back:
Depreciation and amortization		52,028				42,305				9,723				97,606				85,428				12,178
Interest (income) expense, net		37,873				34,173				3,700				71,380				68,391				2,989
Equity in (earnings) losses from unconsolidated ventures		(794	)			325				(1,119	)			(6,671	)			(4,318	)			(2,353	)
(Gain) loss on sale or disposal of real estate and other assets, net		(51,800	)			1				(51,801	)			(51,800	)			(9,978	)			(41,822	)
(Gain) loss on extinguishment of debt		413				307				106				413				307				106
Impact of straight-line rent		(1,015	)			(373	)			(642	)			(3,637	)			(1,533	)			(2,104	)
Other		600				(384	)			984				585				(195	)			780
Operating Assets NOI		68,498				66,856				1,642				134,157				130,874				3,283
Company's share of NOI from equity investments		2,045				2,004				41				4,217				3,947				270
Distributions from Summerlin Hospital investment		—				—				—				5,318				5,605				(287	)
Company's share of NOI from unconsolidated ventures		2,045				2,004				41				9,535				9,552				(17	)
Total Operating Assets NOI	$	70,543			$	68,860			$	1,683			$	143,692			$	140,426			$	3,266

FAQ

How did Howard Hughes Holdings (HHH) perform financially in Q2 2026?

Howard Hughes reported net income attributable to common stockholders of $158.4 million on $1.12 billion in total revenues for Q2 2026. According to Howard Hughes, this compares with a net loss of $12.1 million and revenues of $260.9 million in the prior-year quarter.

What are the key details of the Vantage acquisition by Howard Hughes Holdings (HHH)?

Howard Hughes completed the acquisition of 100% of Vantage Group for approximately $2.1 billion in cash on June 4, 2026. According to Howard Hughes, the deal establishes specialty insurance and reinsurance as a second operating platform, with Vantage consolidated from June 4 through June 30, 2026.

How did the new insurance platform Vantage contribute to HHH’s Q2 2026 results?

Vantage contributed $97.2 million in net earned insurance premiums and $11.0 million net insurance investment income in the June 4–30 stub period. According to Howard Hughes, underwriting income was $4.7 million and the insurance segment recorded a $20.8 million loss before income taxes, with a 95% combined ratio.

How did Howard Hughes Communities’ MPC segment perform in Q2 2026 for HHH stock?

The Master Planned Communities segment generated EBT of $134.7 million in Q2 2026, up from $102.4 million a year earlier. According to Howard Hughes, MPC revenues were $181.7 million and land sales pricing remained strong across residential and commercial acreage for the first six months of 2026.

What is the liquidity position and capital actions of Howard Hughes (HHH) after Q2 2026?

Howard Hughes reported $2.65 billion in cash and cash equivalents as of June 30, 2026, plus sizable undrawn facilities. According to Howard Hughes, it also issued $1.0 billion of Series A Non-Voting Exchangeable Perpetual Preferred Stock to a Pershing Square affiliate to partially fund the Vantage acquisition.