Howard Hughes Holdings Inc

RESULTS OF OPERATIONS

Comparison of the six months ended June 30, 2024, to the six months ended June 30, 2023

Net income attributable to common stockholders increased $10.5 million to a loss of $31.4 million for the six months ended June 30, 2024, compared to a loss of $41.9 million in the prior-year period.

–MPC EBT increased $30.2 million primarily due to higher residential land sales, net of costs, in Summerlin due to an increase in superpad sales in the current year and higher equity earnings at Teravalis related to the closings of Floreo land sales, partially offset by lower equity earnings at The Summit, lower residential land sales in The Woodlands, and lower commercial land sales in Bridgeland.

–Strategic Developments EBT increased $10.1 million primarily due to a decrease in remediation costs and legal fees related to Waiea, partially offset by a decrease in net condominium sales due to the timing of condominium closings, as all completed condominiums are sold and the next tower, Victoria Place, is not scheduled for completion until late 2024.

–Operating Assets EBT decreased $12.0 million primarily due to an increase in interest expense related to increased borrowings on loans secured by our operating assets, an increase in depreciation expense related to new assets placed in service during 2023, and a decrease in revenue due to office lease termination fees in the prior-year period. These decreases were partially offset by an increase in rental revenues, net of operating costs due to increased leasing activity across our portfolio.

–Seaport EBT decreased $0.5 million, primarily due to reduced restaurant and concert series revenues, increased overhead costs associated with the stand-up of Seaport Entertainment in anticipation of the pending spinoff, and an increase in interest expense due to lower capitalized interest as a result of a pause in development activity at 250 Water Street. These decreases were partially offset by decreased depreciation expense following the impairment of our Seaport assets in the third quarter of 2023, decreased equity losses primarily related to the Tin Building in the current period, and increased rental revenue from the Fulton Market Building which is now 100% leased.

–Corporate income, expenses, and other items included an increase in net expenses of $17.5 million primarily due to increased legal and consulting fees related to the pending spinoff of Seaport Entertainment and a decrease in income tax benefit, partially offset by a decrease in corporate interest expense, net due to the change in value related to derivative instruments and higher interest income.

Refer to the Second Quarter 2024 Highlights section above for information on the variances for the three months ended June 30, 2024.

See segment discussions for more detail about the changes described above.