Howard Hughes swings to Q3 loss after Vantage consolidation

Howard Hughes Holdings (HHH) swung to a loss in the third quarter of 2026, with a loss of 39 cents per share against the $1.04 consensus estimate. Revenue was $636.30 million, above the $626.55 million estimate. Shares were little changed at 3:59 p.m. ET, from a $78.03 close.

Here's how the company did:

• Diluted loss per share: 39 cents, vs. $2.02 a year earlier
• Revenue: $636.30 million vs. $390.24 million a year earlier
• Net loss attributable to common stockholders: $1.1 million vs. net income of $119.5 million a year earlier

Revenue rose as the company consolidated Vantage Group Holdings, acquired in June. Vantage contributed $315.8 million of net earned insurance premiums.

Insurance results

Vantage contributed $76.6 million of income before income taxes. Reported underwriting loss was $5.7 million, with a combined ratio of 101.8%, including purchase accounting impact. Without those adjustments, underwriting income was $16.1 million, with a combined ratio of 94.9%.

Net insurance investment income was $22.7 million and net investment gains were $50.9 million, reflecting the transition of the portfolio to common equities and U.S. treasuries.

The AdVantage insurance-linked securities structure contributed $13.0 million in net fee income, from continued positive outcomes on recent property catastrophe business.

Real estate results

Master Planned Communities EBT was $89.5 million, down $115.5 million from $205.0 million a year earlier, mainly due to a bulk sale of 231 acres in Summerlin in the third quarter of 2025 and a $19.4 million loss tied to the consolidation of the Floreo joint venture.

Total Operating Assets net operating income rose $5.1 million, or 8%, to $73.0 million from $67.9 million a year earlier.

Howard Hughes Communities closed two sales of Municipal Utility District receivables, tied to Bridgeland and The Woodlands Hills. The sales generated net cash proceeds of $177.6 million and a GAAP loss of $105.4 million.

Strategy shift

The company plans to transition its real estate model to an asset-light real estate development and asset management platform, by monetizing select real estate assets through asset sales and joint ventures.