Pershing Square extends Howard Hughes standstill agreement

Published 07/04/2025, 13:38
Pershing Square extends Howard Hughes standstill agreement

NEW YORK - Pershing Square Holdco, L.P., the parent company of investment advisor Pershing Square Capital Management, L.P., has announced an extension of its standstill agreement with real estate company Howard Hughes Holdings Inc. (NYSE: HHH), which has seen its stock decline by 9% over the past week. According to InvestingPro data, the company, currently valued at $3.35 billion, is trading at attractive multiples with a P/E ratio of 13.8. The extension, announced on Monday, prolongs the existing agreement until April 15, 2025, at 5:00 p.m. Eastern Time, to allow further discussions about a proposal made by Pershing Square on February 18, 2025, and to consider potential alternatives.

The standstill agreement’s extension is part of ongoing negotiations between the two companies, which may lead to various outcomes. Howard Hughes Holdings maintains a strong financial position, with InvestingPro analysis showing an overall "GOOD" financial health score and liquid assets exceeding short-term obligations. However, Pershing Square has stated that there is no certainty that these discussions will result in any specific action. The company has also indicated that it will not provide further commentary on the matter until it deems additional disclosure necessary or is required by law to do so.

The initial proposal and the subsequent discussions have not been detailed in the announcement, and as such, the nature of the proposal remains undisclosed to the public. Investors and stakeholders are advised that this communication does not represent a recommendation to buy, sell, or exchange any securities, nor does it constitute an offer or solicitation of an offer to buy or sell securities.

The details of Pershing Square’s relationship with Howard Hughes Holdings Inc. and the matters discussed in the press release are available on the U.S. Securities and Exchange Commission’s website, as described in Pershing Square’s Schedule 13D relating to HHH.

While the press release includes forward-looking statements, these are based on current expectations and assumptions subject to risks and uncertainties. Analyst sentiment remains cautiously optimistic, with price targets ranging from $84 to $105 per share, suggesting potential upside from current levels. These statements should not be relied upon as guarantees of future performance, and Pershing Square does not intend to update these statements unless new information or future events warrant such action. For deeper insights into Howard Hughes Holdings’ valuation and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

Pershing Square Capital Management is a New York-based investment advisor registered with the SEC and provides investment advisory services to various investment funds. The information regarding the standstill agreement extension is based on a press release statement from Pershing Square.

In other recent news, Smith Douglas Homes reported fourth-quarter earnings that did not meet analyst expectations. The company posted earnings per share of $0.46, missing the consensus estimate of $0.65, with revenue reaching $287.5 million. Despite the earnings shortfall, Smith Douglas experienced a 28% increase in home closings, totaling 836 units, and saw a 32% rise in home closing revenue. For the entire year of 2024, the company reported earnings of $1.81 per diluted share on revenue of $975.5 million.

Meanwhile, Howard Hughes Holdings announced amendments to the employment agreements of three top executives, including extending the terms for David R. O’Reilly and Carlos Olea to December 31, 2028. The company also mutually agreed not to renew President L. Jay Cross’s employment agreement, which will conclude on December 1, 2025. These changes indicate adjustments in the company’s executive leadership structure.

In another development, Pershing Square Holdco extended its standstill agreement with Howard Hughes Holdings until April 7, 2025. This extension follows a proposal from Pershing Square regarding potential collaboration alternatives, although the specifics of the discussions remain undisclosed. The decision to prolong the agreement suggests ongoing dialogue between the two parties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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