Howard Hughes Holdings Inc

RESULTS OF OPERATIONS

Comparison of the nine months ended September 30, 2024, to the nine months ended September 30, 2023

Net income from continuing operations increased $92.3 million to $122.9 million in the nine months ended September 30, 2024, compared to $30.6 million in the prior-year period.

–MPC EBT increased $90.1 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 residential land sales, net of costs in The Woodlands Hills, partially offset by lower equity earnings at The Summit, lower commercial land sales in Bridgeland, and lower residential land sales in The Woodlands.

–Strategic Developments EBT increased $87.1 million primarily due to a $90.0 million increase in other income related to the receipt of insurance proceeds in the current year following the execution of a settlement agreement related tothe construction defect claims at Waiea. Refer to Note 10 -Commitments and Contingenciesin the Notes to Condensed Consolidated Financial Statements under Item 1 of this Form 10-Q for additional information.

–Operating Assets EBT decreased $26.7 million primarily due to an increase in interest expense related to increased borrowings on loans secured by our operating assets and an increase related to the change in fair value of certain derivative assets, a decrease in gain on sale of real estate, an increase in depreciation expense related to new assets placed in service, 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.

–Corporate income, expenses, and other items included an increase in net expenses of $58.3 million primarily due to a loss on the sale of MUD receivables recognized in the current year.

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

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