Howard Hughes Ends 2024 Strong Amid Possible Pershing Square Acquisition
But the company would not field questions on the potential acquisition during its earnings call
By Isabelle Durso February 27, 2025 1:25 pm
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Howard Hughes Holdings (HHH) boasted strong earnings at the end of 2024, as the commercial real estate giant faces a possible acquisition by Bill Ackman’s Pershing Square Capital Management.
In 2024, HHH reported a net income of $285.2 million, driven by higher revenue from residential land sales, and completed $862 million of financings, including $680 million of construction loans for condo projects and $168 million of refinancings, according to the company’s fourth-quarter earnings report released Wednesday. That’s more than triple the $83.4 million of net income the real estate investment trust had in 2023.
In addition, HHH completed the spinoff of Seaport Entertainment into a separate entity in July, with HHH now focused on building master-planned communities and Seaport handling the company’s hospitality projects.
But the topic on everyone’s mind during Thursday morning’s earnings call was Pershing Square’s recent proposal earlier this month to merge with HHH in a $900 million investment, as Commercial Observer previously reported.
However, David O’Reilly, CEO of HHH, said during the call that the company would not comment on any questions regarding the potential acquisition, as HHH’s special committee will “provide an update as and when appropriate.”
If accepted, Ackman’s latest offer would see Pershing Square acquire 10 million newly issued HHH shares for $90 apiece, CO reported. Ackman would also become chairman and CEO of HHH under his new offer, while two other Pershing Square officials — Ryan Israel and Ben Hakim — would take leadership positions as well. O’Reilly, meanwhile, would continue to lead Howard Hughes Corporation, HHH’s principal subsidiary.
Instead, HHH focused on its multifamily, office and retail developments during the Thursday earnings call, highlighting its $260 million construction loan for its 111-unit Ritz-Carlton Residences in The Woodlands, Texas, during the fourth quarter and condominium revenues of $779 million at its Victoria Place residential tower in Honolulu.
In addition, HHH reported land sales of $453.2 million, driven by the sale of 445 residential acres at an average price of $990,000 per acre, according to the report. The company also sold a total of 2,234 residential units in 2024, with its Summerlin community in Las Vegas and Bridgeland community in Cypress, Texas, seeing the most success, the report said.
“It really comes down to the attractiveness and the quality of the communities in which we’re selling land,” O’Reilly said during the call. “Summerlin and Bridgeland meaningfully stand out in the relative market. The quality of life that residents can experience there is better, [and] the quality of education, the connectivity to nature and the amenities that we’ve built into these communities are far superior. As a result, our master-planned communities have outperformed throughout cycles.”
As for office, HHH completed 473,000 square feet of new or expanded office leases in 2024, including 323,000 square feet in The Woodlands, 91,000 square feet in Downtown Columbia, Md., and 59,000 square feet in Summerlin, according to the report.
And for retail, HHH’s portfolio was 96 percent leased during the fourth quarter, with improved occupancy at its Juniper and Marlow developments in Downtown Columbia, the report said.
O’Reilly also mentioned on the call his participation advocating in favor of Assembly Bill 238, a measure in California that would provide film tax credits to Sony Pictures Entertainment and HHH’s new partner, Warner Bros.
Isabelle Durso can be reached at idurso@commercialobserver.com.
