Howard Hughes Holdings Inc.

Operating Assets

Segment EBTSegment EBT for Operating Assets is presented below:

Operating Assets segment EBT increased $2.6 million compared to the prior-year period primarily due to the following:

–Rental revenues, net of Operating costs increased $4.5 million primarily due to increased leasing activity across our portfolio.

–Equity earnings decreased $0.7 million primarily due to due to the change in value of certain derivative instruments.

–Depreciation expense increased $0.5 million primarily related to new assets placed in service.

Operating Assets segment EBT increased $7.8 million compared to the prior-year period primarily due to the following:

–Rental revenues, net of Operating costs increased $10.1 million primarily due to increased leasing activity across our portfolio.

–Gain on sale of real estate increased $5.2 million primarily due to the sale of two land parcels and a retail space in Ward Village in 2025, compared to the sale of Creekside Park Medical Plaza in 2024.

–Depreciation expense increased $1.8 million primarily related to new assets placed in service.

–Equity earnings decreased $1.8 million primarily due to lower earnings and the change in value of certain derivative instruments, partially offset by higher dividends.

–Rental property real estate taxes increased $1.5 million primarily due to the receipt of refunds in 2024.

–Interest expense increased $1.3 million primarily due to increased borrowings on construction loans secured by our operating assets as well as an increase related to the change in fair value of certain derivative instruments.

Net Operating Income In addition to the required presentations using GAAP, we use certain non-GAAP performance measures, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. Management continually evaluates the usefulness, relevance, limitations and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change.

We define NOI as operating revenues (rental income, tenant recoveries, and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing, and other property expenses). NOI excludes straight-line rents and amortization of tenant incentives, net; interest expense, net; ground rent amortization; demolition costs; other income (loss); depreciation and amortization; development-related marketing costs; gain on sale or disposal of real estate and other assets, net; loss on extinguishment of debt; provision for impairment; and equity in earnings from unconsolidated ventures.

We believe that NOI is a useful supplemental measure of the performance of our Operating Assets segment because it provides a performance measure that reflects the revenues and expenses directly associated with owning and operating real estate properties. We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that property-specific factors such as rental and occupancy rates, tenant mix, and operating costs have on our operating results, gross margins, and investment returns.

A reconciliation of Operating Assets segment EBT to Operating Assets NOI is presented in the table below.

The table below presents Operating Assets NOI by property type:

(a)Properties that were sold are shown separately for all periods presented.

Operating Assets NOI increased $3.5 million compared to the prior-year period primarily due to the following:

–Multifamily NOI increased $2.7 million primarily to continued lease-up at Tanager Echo in Summerlin, Marlow in Merriweather District, and Wingspan in Bridgeland.

–Office NOI increased $1.9 million primarily due to strong leasing activity and abatement expirations at various properties in The Woodlands, Merriweather District, and Summerlin, most notably at 9950 Woodloch Forest, 6100 Merriweather, and 1700 Pavilion, partially offset by decreases related to lower occupancy at certain properties in Merriweather District and The Woodlands, most notably at Merriweather Row and 3831 Technology Forest.

These increases to NOI were partially offset by the following:

–Retail NOI decreased $1.1 million primarily due to the collection of previously reserved accounts receivable in Ward Village in 2024.

Operating Assets NOI increased $7.2 million compared to the prior-year period primarily due to the following:

–Multifamily NOI increased $4.7 million primarily due to continued lease-up at Tanager Echo in Summerlin, Marlow in Merriweather District, and Wingspan in Bridgeland.

–Office NOI increased $4.2 million primarily due to strong leasing activity and abatement expirations at various properties in The Woodlands, Merriweather District, and Summerlin, most notably at 9950 Woodloch Forest, 6100 Merriweather, and 1700 Pavilion, partially offset by decreases related to lower occupancy at certain properties in Merriweather District and The Woodlands, most notably at Merriweather Row and 3831 Technology Forest.

These increases to NOI were partially offset by the following:

–Retail NOI decreased $1.4 million primarily due to the collection of previously reserved accounts receivable in

Ward Village in 2024.