Howard Hughes Holdings Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
Contents
Strategic Developments
Our Strategic Developments assets generally require substantial future development to maximize their value. Other than our condominium properties, most of the properties and projects in this segment do not generate revenues. Our expenses relating to these assets are primarily related to costs associated with constructing the assets, selling condominiums, carrying costs including, but not limited to, property taxes and insurance, and other ongoing costs relating to maintaining the assets in their current condition. If we decide to redevelop or develop a Strategic Developments asset, we expect that with the exception of the residential portion of our condominium projects, upon completion of development, the asset would likely be reclassified to Operating Assets when the asset is placed in service and NOI would become a meaningful measure of its operating performance. All development costs discussed herein are exclusive of land costs.
| MANAGEMENT’S DISCUSSION AND ANALYSISRESULTS OF OPERATIONS | Table of Contents |
|---|
Segment EBTSegment EBT for Strategic Developments is presented below:
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| thousands except percentages | 2026 | 2025 | $ Change | % Change |
| Condominium rights and unit sales | $3,134 | $342 | $2,792 | NM |
| Rental revenue | — | 59 | (59) | (100)% |
| Other revenues | 1,273 | 453 | 820 | 181% |
| Total revenues | 4,407 | 854 | 3,553 | NM |
| Condominium rights and unit cost of sales | (3,134) | (242) | (2,892) | NM |
| Operating costs | (4,434) | (3,576) | (858) | (24)% |
| Rental property real estate taxes | (521) | (548) | 27 | 5% |
| Total operating expenses | (8,089) | (4,366) | (3,723) | (85)% |
| Segment operating income (loss) | (3,682) | (3,512) | (170) | (5)% |
| Depreciation and amortization | (2,057) | (1,158) | (899) | (78)% |
| Interest income (expense), net | 4,974 | 4,646 | 328 | 7% |
| Other income (loss), net | (889) | (1,262) | 373 | 30% |
| Equity in earnings (losses) from unconsolidated ventures | (4,982) | 87 | (5,069) | NM |
| Segment EBT | $(6,636) | $(1,199) | $(5,437) | NM |
Strategic Developments segment EBT decreased $5.4 million compared to the prior-year period primarily due to the following:
–Equity earnings decreased $5.1 million due to the recognition of the Company’s share of a loss on sale of land at our West End Alexandria joint venture. See Note 3 -Investments in Unconsolidated Ventures in the Notes to Condensed Consolidated Financial Statements under Item 1 of this Quarterly Report for additional information.
Although the final six units at Ulana Ward Village closed in the current period, condominium sales, net of cost of sales remained flat as this is a workforce tower and closed at a breakeven gross margin as expected. Ulana Ward Village is our second workforce tower and fulfills our current reserved housing guaranty in the community. See Note 10 -Commitments and Contingencies in the Notes to Condensed Consolidated Financial Statements under Item 1 of this Quarterly Report for additional information on the reserved housing requirements in Ward Village. The next condominium tower, The Park Ward Village, is expected to begin unit closings in the second quarter of 2026.
Condominiums Condominium revenue is recognized when construction of the condominium tower is complete and unit sales close, leading to variability in revenue recognized between periods.
Completed Condominiums Ulana Ward Village was completed in the fourth quarter of 2025, and 690 of the 696 units were closed in 2025. The remaining 6 units closed in the first quarter of 2026.
Under Construction and Predevelopment Condominiums The Company commenced construction on The Launiu in the first quarter of 2026. The following provides further detail for our under construction and predevelopment condominium projects as of March 31, 2026:
| Location | Units Closed | Units Under Contract | Total Units | Total % of Units Closed or Under Contract | Completion Date | |
|---|---|---|---|---|---|---|
| Under construction | ||||||
| The Park Ward Village | Honolulu, HI | — | 526 | 545 | 97% | Q2 2026 |
| Kalae | Honolulu, HI | — | 309 | 329 | 94% | 2028 |
| The Ritz-Carlton Residences | The Woodlands, TX | — | 85 | 111 | 77% | 2027 |
| The Launiu | Honolulu, HI | — | 357 | 485 | 74% | 2028 |
| Predevelopment | ||||||
| Melia | Honolulu, HI | — | 153 | 220 | 70% | 2030 |
| ‘Ilima | Honolulu, HI | — | 91 | 148 | 61% | 2030 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.