Howard Hughes Holdings Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 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.
Sep 30, 2026 · Filed Nov 5, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Master Planned Communities
| MANAGEMENT’S DISCUSSION AND ANALYSISRESULTS OF OPERATIONS | Table of Contents |
|---|
Master Planned Communities
Segment EBTThe following table presents segment EBT for MPC:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| thousands except percentages | 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change |
| Master Planned Communities land sales | $133,657 | $248,467 | $(114,810) | (46)% | $404,166 | $445,150 | $(40,984) | (9)% |
| Builder price participation | 11,366 | 16,012 | (4,646) | (29)% | 26,916 | 39,437 | (12,521) | (32)% |
| Other revenues | 4,802 | 7,096 | (2,294) | (32)% | 12,764 | 15,143 | (2,379) | (16)% |
| Total revenues | 149,825 | 271,575 | (121,750) | (45)% | 443,846 | 499,730 | (55,884) | (11)% |
| Master Planned Communities cost of sales | (46,242) | (78,280) | 32,038 | 41% | (140,041) | (148,672) | 8,631 | 6% |
| Operating costs | (16,197) | (4,892) | (11,305) | NM | (40,665) | (30,399) | (10,266) | (34)% |
| Total operating expenses | (62,439) | (83,172) | 20,733 | 25% | (180,706) | (179,071) | (1,635) | (1)% |
| Segment operating income (loss) | 87,386 | 188,403 | (101,017) | (54)% | 263,140 | 320,659 | (57,519) | (18)% |
| Depreciation and amortization | (266) | (110) | (156) | (142)% | (441) | (309) | (132) | (43)% |
| Interest income (expense), net | 24,366 | 19,414 | 4,952 | 26% | 70,090 | 54,307 | 15,783 | 29% |
| Other income (loss), net | — | 19 | (19) | (100)% | 1,860 | 54 | 1,806 | NM |
| Equity in earnings (losses) from unconsolidated ventures | (22,010) | (2,721) | (19,289) | NM | (26,114) | (7,780) | (18,334) | NM |
| Gain (loss) on sale or disposal of real estate and other assets, net | — | — | — | NM | — | 3,750 | (3,750) | (100)% |
| Segment EBT | $89,476 | $205,005 | $(115,529) | (56)% | $308,535 | $370,681 | $(62,146) | (17)% |
The following table presents MPC segment EBT by MPC:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| thousands except percentages | 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change |
| Bridgeland | $15,968 | $24,881 | $(8,913) | (36)% | $73,946 | $63,044 | $10,902 | 17% |
| Floreo (a) | (22,008) | (637) | (21,371) | NM | (26,287) | (721) | (25,566) | NM |
| Summerlin | 92,608 | 182,879 | (90,271) | (49)% | 249,917 | 308,203 | (58,286) | (19)% |
| Teravalis (a) | (263) | (338) | 75 | 22% | (1,023) | (988) | (35) | (4)% |
| The Woodlands | (1,637) | (2,663) | 1,026 | 39% | (785) | (3,750) | 2,965 | 79% |
| The Woodlands Hills | 4,808 | 883 | 3,925 | NM | 12,767 | 4,893 | 7,874 | 161% |
| Segment EBT | $89,476 | $205,005 | $(115,529) | (56)% | $308,535 | $370,681 | $(62,146) | (17)% |
(a)Certain amounts related to Floreo previously disclosed under the Teravalis MPC have been recast for all periods presented to reflect Floreo as a separate, comparative line item following the consolidation of Floreo in July 2026. Floreo EBT activity for the periods presented includes the Company’s share of equity earnings prior to consolidation and 100% of Floreo EBT post consolidation. Refer to Note 10 -Acquisitions and Dispositions of Real Estate Assetsin the Notes to Condensed Consolidated Financial Statements under Item 1 of this Quarterly Report for additional information.
MPC segment EBT decreased $115.5 million compared to the prior-year period primarily due to the following:
–MPC sales, net of MPC cost of sales decreased $82.8 million primarily due to a decrease in residential MPC land sales closed in Summerlin and Bridgeland. These decreases were partially offset by increases related to changes in deferred revenue, net of associated deferred costs, and SID bond assumptions in Summerlin as well as an increase in residential MPC land sales closed in The Woodlands Hills. See the Master Planned Communities Land Sales and Residential and Commercial Land Sales Closed tables below for additional information on land sales activity in the period.
–Equity earnings decreased $19.3 million primarily due to the recognition of a $19.4 million loss upon remeasurement of the Floreo equity method investment to its acquisition-date fair value immediately prior to consolidation. Refer to Note 10 -Acquisitions and Dispositions of Real Estate Assetsin the Notes to Condensed Consolidated Financial Statements under Item 1 of this Quarterly Report for additional information.
| MANAGEMENT’S DISCUSSION AND ANALYSISRESULTS OF OPERATIONS | Table of Contents |
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–Operating costs increased $11.3 million primarily due to higher real estate taxes in Bridgeland and Summerlin, as well as higher allocated overhead costs, including additional operating expenses following the Floreo consolidation.
MPC segment EBT decreased $62.1 million compared to the prior-year period primarily due to the following:
–MPC sales, net of MPC cost of sales decreased $32.4 million primarily due to a decrease in residential MPC land sales closed in Summerlin. This decrease was partially offset by increases related to changes in deferred revenue, net of associated deferred costs, and SID bond assumptions in Summerlin, as well as increases in residential MPC land sales closed in The Woodlands Hills and Bridgeland, and in commercial MPC land sales closed in The Woodlands and Bridgeland.
–Equity earnings decreased $18.3 million primarily due to the recognition of a $19.4 million loss upon remeasurement of the Floreo equity method investment to its acquisition-date fair value immediately prior to consolidation.
–Builder price participation decreased $12.5 million as fewer homes were closed with sales prices over the predetermined breakpoint necessary for participation revenue, primarily in Summerlin and Bridgeland.
–Operating costs increased $10.3 million primarily due to higher real estate taxes in Bridgeland and Summerlin, as well as higher allocated overhead costs, including additional operating expenses following the Floreo consolidation.
–Interest income increased $15.8 million primarily due to increased investment in ongoing development in Summerlin and Bridgeland, which increased capitalized interest, as well as higher interest earned on money market dividends.
Master Planned Communities Land Sales The following table presents the detail of MPC land sales recognized for the three and nine months ended September 30, 2026, and 2025. Total net recognized (deferred) revenue includes revenues recognized in the current period which are related to sales closed in prior periods, offset by revenues deferred on sales closed in the current period.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| thousands except percentages | 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change |
| Total residential land sales closed | $133,452 | $274,298 | $(140,846) | (51)% | $375,786 | $493,028 | $(117,242) | (24)% |
| Total commercial land sales closed | — | — | — | NM | 8,983 | — | 8,983 | NM |
| Net recognized (deferred) revenue: | ||||||||
| Bridgeland | 241 | 118 | 123 | 104% | 1,162 | 1,494 | (332) | (22)% |
| Floreo | 21 | — | 21 | NM | 21 | — | 21 | NM |
| The Woodlands | 133 | 171 | (38) | (22)% | 573 | 192 | 381 | 198% |
| The Woodlands Hills | — | — | — | NM | 15 | — | 15 | NM |
| Summerlin | (6,460) | (26,201) | 19,741 | 75% | 2,608 | (52,352) | 54,960 | 105% |
| Total net recognized (deferred) revenue | (6,065) | (25,912) | 19,847 | 77% | 4,379 | (50,666) | 55,045 | 109% |
| Special Improvement District revenue | 6,270 | 81 | 6,189 | NM | 15,018 | 2,788 | 12,230 | NM |
| Master Planned Communities land sales | $133,657 | $248,467 | $(114,810) | (46)% | $404,166 | $445,150 | $(40,984) | (9)% |
| MANAGEMENT’S DISCUSSION AND ANALYSISRESULTS OF OPERATIONS | Table of Contents |
|---|
Residential and Commercial Land Sales Closed The following tables detail our residential and commercial land sales closed for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| Land Sales | Acres Sold | Average Price Per Acre | ||||
| thousands except acres sold | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| Residential Land Sales Closed | ||||||
| Bridgeland | ||||||
| Single family | $16,960 | $19,856 | 23.6 | 28.2 | $719 | $704 |
| Summerlin | ||||||
| Superpad sites | 108,963 | 248,190 | 62.7 | 318.3 | 1,738 | 780 |
| Custom lots | — | 5,475 | — | 0.8 | — | 7,821 |
| The Woodlands Hills | ||||||
| Single family | 7,529 | 777 | 14.7 | 1.6 | 512 | 486 |
| Total residential land sales closed (a) | $133,452 | $274,298 | 101.0 | 348.9 | $1,321 | $786 |
| Nine Months Ended September 30, | ||||||
| Land Sales · Acres Sold · Average Price Per Acre | ||||||
| thousands except acres sold | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| Residential Land Sales Closed | ||||||
| Bridgeland | ||||||
| Single family | $82,201 | $68,345 | 115.7 | 105.5 | $710 | $648 |
| Summerlin | ||||||
| Superpad sites | 257,432 | 400,046 | 148.6 | 412.3 | 1,732 | 970 |
| Custom lots | 15,750 | 20,175 | 2.2 | 2.7 | 7,159 | 7,472 |
| The Woodlands Hills | ||||||
| Single family | 20,403 | 4,462 | 41.2 | 9.1 | 495 | 490 |
| Total residential land sales closed (a) | $375,786 | $493,028 | 307.7 | 529.6 | $1,221 | $931 |
| Commercial Land Sales Closed | ||||||
| Bridgeland | $2,176 | $— | 2.0 | — | $1,088 | $— |
| The Woodlands | 6,807 | — | 7.8 | — | 873 | — |
| Total commercial land sales closed (a) | $8,983 | $— | 9.8 | — | $917 | $— |
(a)Excludes revenues recognized in the current period which are related to sales closed in prior periods and includes revenues deferred on sales closed in the current period. Refer to the Master Planned Communities Land Sales table above which reconciles total residential and commercial land sales closed to MPC land sales revenue recognized for the three and nine months ended September 30, 2026 and 2025.
MPC Land Inventory The following table summarizes MPC land inventory activity for the nine months ended September 30, 2026:
| thousands | Bridgeland | Floreo | Summerlin | Teravalis | The Woodlands | The Woodlands Hills | Total MPC |
|---|---|---|---|---|---|---|---|
| Balance December 31, 2025 | $522,231 | $— | $1,257,053 | $547,211 | $187,315 | $121,267 | $2,635,077 |
| Acquisitions (a) | — | 266,700 | — | — | — | — | 266,700 |
| Development expenditures (b) | 183,377 | 11,175 | 165,231 | 2,003 | 3,173 | 29,988 | 394,947 |
| MPC cost of sales | (29,784) | (15) | (100,042) | — | (1,910) | (8,290) | (140,041) |
| Municipal district reimbursable costs (c) | (159,091) | (2,295) | — | — | (1,337) | (21,402) | (184,125) |
| Transfer to Strategic Developments and Operating Assets Segments | — | — | — | — | (1,175) | — | (1,175) |
| Other | (15,258) | 3,706 | (7,136) | (238) | 1,226 | (5,171) | (22,871) |
| Balance September 30, 2026 | $501,475 | $279,271 | $1,315,106 | $548,976 | $187,292 | $116,392 | $2,948,512 |
(a)Represents the value of MPC assets acquired through the consolidation of Floreo in July 2026.
| MANAGEMENT’S DISCUSSION AND ANALYSISRESULTS OF OPERATIONS | Table of Contents |
|---|
(b)Development expenditures are inclusive of capitalized interest and property taxes.
(c)Municipal district reimbursable costs represent land development expenditures transferred to municipal district receivables.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.