Howard Hughes swings to Q3 loss on weaker land sales, asset losses
Overview
US real estate and insurance firm's Q3 revenue rose yr/yr, supported by Vantage insurance operations
Company posted net loss, compared to profit in prior-year period, due to lower land sales and asset losses
Company plans to transition to asset-light real estate and asset management platform
Outlook
Company plans to shift to an asset-light real estate development and asset management model
Howard Hughes expects to monetize assets through sales and joint ventures to redeploy capital
Result Drivers
INSURANCE CONTRIBUTION - Vantage contributed $315.8 mln in net earned insurance premiums and $76.6 mln in income before taxes in its first full quarter with the company
LAND SALES IMPACT - Master Planned Communities EBT fell $115.5 mln, mainly due to the absence of a prior-year Summerlin bulk land sale and a $19.4 mln Floreo joint-venture loss
MUD RECEIVABLES LOSS - Sales of municipal utility district receivables generated $177.6 mln in cash but resulted in a $105.4 mln GAAP loss
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $636.30 mln | $620.35 mln (2 Analysts) |
Q3 Diluted Loss Per Share | Miss | -$0.39 | $1.03 (2 Analysts) |
Q3 Net Loss Attributable to Common Stockholders | Miss | -$1.10 mln | $41.60 mln (1 Analyst) |
Q3 Operating Assets NOI | $73 mln |
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 $86.50, about 9.4% above its November 4 closing price of $79.06
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago
Reuters Recommended Reads
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Nov 4 - Global Net Lease Q3 revenue falls on asset sales
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)