Howard Hughes Co.

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

Howard Hughes reported solid Q1 results with master planned community EBT up 33% to $84 million, driven by higher residential land sales in Bridgeland and Summerlin as management says it is "harvesting scarcity." The company removed annual guidance because of the pending Vantage acquisition but says $1.8 billion of cash plus Pershing Square’s preferred commitment fully funds the deal and supports the development pipeline. Management is shifting investor focus toward longer-term intrinsic value and cash generation from land and operating assets, estimating current intrinsic value near $104 per share and potential to reach $211 by 2030. The board added Marc Grandisson to provide insurance expertise as the company prepares to integrate Vantage and expand into insurance. » More on finance.yahoo.com