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Howard Hughes swings to Q3 loss on weaker land sales, asset losses

By Reuters News


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

  • Nov 2 - Realty Income's Q3 revenue beats; raises 2026 AFFO per share outlook

  • Nov 2 - Vornado Realty Trust Q3 adjusted FFO per share rises on rent commencements

  • Nov 4 - Global Net Lease Q3 revenue falls on asset sales


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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