Howard Hughes Co.

Howard Hughes shares hit a 52-week low of $60.99 and are down about 25.43% year to date. The stock last traded at a P/E ratio of 12.42 and is rated undervalued by InvestingPro. In the second quarter the company beat expectations with adjusted earnings of $2.68 per share on $1.12 billion in revenue; however, the recently acquired Vantage business reported a combined ratio of 101.6%. Management expects excess free cash flow from the real estate business of $2.5–3 billion over the next five years, while market and operational challenges remain under observation. » More on de.investing.com

Howard Hughes reported adjusted earnings of $2.68 per share for Q2 (expectation $1.69) and revenue of $1.12 billion (expectation $656.12 million), with both metrics well above estimates. The stock rose about 5.3% in after-hours trading; investors highlighted strong real estate results, the first contribution from recently acquired insurance unit Vantage, and an expanded capital plan. Vantage, however, recorded a combined ratio of 101.6%, hurt by catastrophe losses and reserves, while management expects excess free cash flow from the real estate business of $2.5–3 billion over the next five years. » More on de.investing.com

Howard Hughes has completed the acquisition of specialty insurer and reinsurer Vantage Group for about $2.1 billion. The transaction was financed with cash and the issuance of $1 billion in non-voting, perpetual preferred shares to Pershing Square. Pershing Square manages Vantage’s investment portfolio without management fees; the preferred shares are pari passu with common stock for payment claims and may, under certain conditions, be repurchased or converted into common shares. Vantage will become part of Howard Hughes’s business portfolio, which will continue to invest in and develop commercial, residential and mixed-use real estate. » More on de.investing.com