Howard Hughes Holdings' 2024 Q4: Discrepancies Surface on Share Buybacks, Capital Allocation, and Legislative Outlook

These are the key contradictions discussed in Howard Hughes Holdings' latest 2024Q4 earnings call, specifically including: Share Buybacks, Capital Allocation Strategy, and Nevada Legislation for Studios:



Record Financial Performance:
- Howard Hughes Holdings reported a record MPC EBT of $349 million for 2024, driven by record residential land sales revenue and average price per acre.
- The growth was supported by strong demand for new homes, especially in Las Vegas and Houston, despite challenging market conditions.

Operating Assets Performance:
- The company saw record NOI of $257 million from operating assets in 2024, up 6% year-on-year.
- This was driven by both office and multifamily segments, particularly due to improved occupancy and successful lease-ups in assets like Summerlin and Downtown Columbia.

Strategic Development Success:
- Howard Hughes completed and sold all units in Victoria Place, generating record condo revenue and gross margin.
- The success is attributed to steady demand in Ward Village and strong presales for new projects like Ulana and Ritz-Carlton Residences.

Liquidity Enhancement:
- The company improved its liquidity through an innovative sale of MUD receivables, accelerating their collection timeline and enabling a $200 million MPC debt payoff.
- This strategic move expanded its MPC line of credit and extended its maturity, supporting future growth and development initiatives.