Howard Hughes Holdings Inc. (HHH): A Bull Case Theory

We came across a bullish thesis on Howard Hughes Holdings Inc. on Valueinvesting subreddit by ComfortableCarry4504. In this article, we will summarize the bulls’ thesis on HHH. Howard Hughes Holdings Inc.'s share was trading at $70.59 as of July 29^th. HHH’s trailing  P/E was 10.83 according to Yahoo Finance.

Howard Hughes Holdings (HHH) trades at $68.65 as of July 15, 2025, down nearly 10% YTD, pressured by a soft real estate market, high interest rates that weigh on valuations and leasing, analyst downgrades, and concerns around Pershing Square’s fee structure. Yet the underlying fundamentals support a multi‑year turnaround. The U.S. housing market remains structurally undersupplied after a decade of underbuilding, and HHH owns 33,342 sellable acres concentrated in top‑performing markets like Las Vegas (Summerlin) and Houston (Bridgeland), positioning it to meet surging demand when rates fall.

Its master‑planned community (MPC) land is significantly understated on the balance sheet: while carried at $2.5 billion under GAAP, filings suggest a current market value closer to $22 billion, implying a ~$20 billion understatement and a pre‑tax profit multiple of 8.6× per acre that the market largely ignores. In parallel, HHH’s commercial real estate portfolio remains resilient despite macro headwinds, with office occupancy at 88% and multifamily and retail above 95%, providing stable cash flow to fund MPC development.

Under Bill Ackman’s leadership, HHH is evolving into a diversified holding company with ambitions beyond real estate. A planned insurance platform could create investable float, unlocking scalable, compoundable earnings and a valuation re‑rating beyond the sum of its land assets. As interest rates normalize and housing demand accelerates, the combination of a deeply undervalued land bank, high‑occupancy income properties, and a strategic transformation led by a highly aligned sponsor sets the stage for a significant revaluation, offering an asymmetric long‑term risk/reward profile.

Previously, we covered a bullish thesis on Howard Hughes Holdings Inc. by Bulls On Parade in February 2025, which highlighted undervalued master‑planned communities, strong operating income growth, and strategic refocus under Pershing Square. The company’s stock has depreciated by approximately 6.49% since our coverage due to high rates and a soft market. The thesis still stands, and ComfortableCarry4504 shares a similar view but stresses the $20 billion land understatement and insurance pivot.

Howard Hughes Holdings Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held HHH at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of HHH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.