Pershing Square extends standstill agreement with HHH

NEW YORK - Pershing Square Holdco, L.P., the parent company of investment advisor Pershing Square Capital Management, L.P., has extended its standstill agreement with Howard Hughes Holdings Inc. (NYSE: HHH) until April 30, 2025. The real estate development company, currently valued at $3.28 billion, appears undervalued according to InvestingPro analysis, with strong financial health metrics and trading at attractive multiples. This extension, announced on Monday, aims to provide additional time for the two parties to continue discussions around Pershing Square’s proposal and potential alternatives, initially put forward on February 18, 2025. With a current share price of $66.03, analysts tracked by InvestingPro maintain price targets ranging from $84 to $105, suggesting significant upside potential. The company maintains healthy liquidity with a current ratio of 1.62.

The standstill agreement, which was set to expire on Tuesday, April 15, 2025, at 5:00 p.m. Eastern Time, will now continue until the end of April. The purpose of the agreement is to facilitate a constructive dialogue between Pershing Square and Howard Hughes Holdings regarding the proposal that Pershing Square had previously announced.

Pershing Square has stated that there is no certainty that these discussions will lead to any specific outcome. The company has also indicated that it does not plan to provide further commentary on the matter until it deems additional disclosure appropriate or necessary under legal requirements.

Investors and interested parties can find more information about Pershing Square and the topics discussed in this press release in Pershing Square’s Schedule 13D relating to Howard Hughes Holdings, which is available on the SEC’s website.

The press release also includes forward-looking statements, which are based on current expectations and assumptions. These statements are identified by terms such as "believe," "expect," "may," and "will," and involve risks and uncertainties that could cause actual future events to differ materially from those projected. Pershing Square has indicated that it does not plan to update these forward-looking statements and that they should not be relied upon as being indicative of future events. For deeper insights into Howard Hughes Holdings’ financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s performance, valuation, and growth prospects among 1,400+ top US stocks.

Pershing Square Capital Management is an SEC-registered investment advisor based in New York, managing investment funds on behalf of its clients. This news is based on a press release statement.

In other recent news, Smith Douglas Homes Corp. reported fourth-quarter earnings that did not meet analyst expectations. The company posted earnings per share of $0.46, falling short of the projected $0.65, with revenue reaching $287.5 million. Despite this earnings miss, the company saw a 28% increase in home closings year-over-year, totaling 836 units, and a 32% rise in home closing revenue. Additionally, Smith Douglas reported a full-year 2024 earnings of $1.81 per diluted share on revenue of $975.5 million, with a 25% increase in home closings to 2,867 units.

In other developments, Howard Hughes Holdings Inc. has made significant amendments to the employment agreements of three top executives, with changes effective April 1, 2025. The amendments extend the terms of certain executives and introduce new compensation terms related to organizational changes. Moreover, Howard Hughes and its President, L. Jay Cross, have agreed not to renew his employment agreement, leading to his departure by the end of 2025.

Meanwhile, Pershing Square Holdco, L.P. has extended its standstill agreement with Howard Hughes Holdings, prolonging discussions about a proposal made earlier this year. The extension allows for continued negotiations, although the outcome remains uncertain. Pershing Square has stated that additional commentary will be provided only when necessary or legally required.

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