Howard Hughes Holdings Inc.

RESULTS OF OPERATIONS

Comparison of the six months ended June 30, 2025, to the six months ended June 30, 2024

Net income from continuing operations decreased $27.6 million to a net loss of $1.2 million in the six months ended June 30, 2025, compared to net income of $26.4 million in the prior-year period.

–Corporate income, expenses, and other items included an increase in net expenses of $61.8 million primarily due to a loss on the sale of MUD receivables recognized in the current period and additional expenses incurred in the current period related to a strategic reduction in force.

This decrease was partially offset by the following:

–MPC EBT increased $18.2 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 The Summit, partially offset by lower land sales in Bridgeland.

–Strategic Developments EBT increased $8.1 million primarily due tofinal Waiea remediation expenditures incurred in the prior period that did not occur in the current period, decreased depreciation due to accelerated depreciation recognized in the prior period, and a gain on the sale of a land parcel in the Merriweather District. These increases were partially offset by a loss on deconsolidation of the Victoria Place homeowners’ association as ownership and control was passed to the residents.

–Operating Assets EBT increased $7.8 million primarily by an increase in rental revenues, net of operating costs due to increased leasing activity across our portfolio and an increase in gain on sale of real estate. These increases were partially offset by an increase in depreciation expense related to new assets placed in service; an increase in rental property real estate taxes due to the receipt of refunds in 2024; a decrease in equity earnings due to lower earnings and the change in value of certain derivative instruments, partially offset by higher dividends; and an increase in interest expense related to increased borrowings on loans secured by our operating assets as well as an increase related to the change in fair value of certain derivative assets.

Refer to the Second Quarter 2025 Highlights section above for information on the variances for the three months ended June 30, 2025.

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