Pershing Square extends standstill agreement with HHH

NEW YORK - In a strategic move, Pershing Square Holdco, L.P., the parent company of Pershing Square Capital Management, L.P. (PSCM), has extended its standstill agreement with Howard Hughes Holdings Inc. (NYSE: HHH), also known as HHH. The extension, announced today, prolongs the duration of the agreement until 5:00 p.m. (Eastern Time) on April 7, 2025, from its original endpoint of March 13, 2025. According to InvestingPro data, HHH, with a market capitalization of $3.64 billion, currently trades at attractive valuation multiples, suggesting potential value opportunities in the market.

This extension is part of ongoing discussions related to a proposal Pershing Square made public on February 18, 2025, concerning potential alternatives for collaboration with HHH. The precise nature of these discussions has not been disclosed, and Pershing Square has made it clear that there is no certainty regarding the outcome of these talks. InvestingPro analysis shows HHH maintains strong financial health with a current ratio of 1.62, indicating solid liquidity to meet its short-term obligations. The company also stated it would not provide further commentary until it deems additional disclosure necessary or legally mandated.

The standstill agreement is a common practice in corporate negotiations, serving as a framework within which two parties can discuss potential transactions without the immediate threat of a takeover or other aggressive action. The decision to extend the standstill suggests that both Pershing Square and HHH see value in continuing their dialogue beyond the initial timeframe.

Investors and stakeholders should note that this communication is not an encouragement to buy, sell, or exchange securities. The details concerning Pershing Square’s interests in HHH can be found in the Schedule 13D filed with the SEC on March 11, 2025. Analyst price targets for HHH range from $84 to $105, with comprehensive analysis available in the Pro Research Report on InvestingPro, which offers detailed insights into the company’s valuation and growth prospects.

The announcement includes forward-looking statements, which are inherently subject to risks, uncertainties, and assumptions. These statements are identified by terms such as "believe," "expect," "may," and similar expressions indicating predictions about future events that could vary significantly from actual results.

Pershing Square, a New York-based investment advisor registered with the SEC, manages investment funds through its subsidiary PSCM. The company’s strategic decisions, including this extension with HHH, are closely watched by investors for indications of Pershing Square’s future direction and potential market impact.

The information in this article 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 by $0.19. Revenue for the quarter was $287.5 million, marking a significant milestone compared to no revenue in the same quarter last year due to the company’s initial public offering in January 2024. Despite the earnings miss, Smith Douglas Homes experienced robust growth in home closings, which increased by 28% year-over-year to 836 units. The company also reported a 32% rise in home closing revenue, reaching $287.5 million. While the home closing gross margin declined to 25.5% from 26.7% in the fourth quarter of 2023, net new home orders rose by 9% to 569 units. For the full year 2024, the company achieved earnings of $1.81 per diluted share on revenue of $975.5 million, with home closings up 25% to 2,867 units. Management expressed optimism about market trends for the upcoming 2025 spring selling season, despite ongoing affordability issues. Additionally, Smith Douglas Homes increased its total controlled lots by 52% year-over-year to 19,522 by the end of 2024.

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