Howard Hughes Holdings Inc (HHH) 2025 Q1 法說會逐字稿

Thank you for standing by and welcome to the Howard Hughes Management's first quarter 2025 earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝您的支持，歡迎參加霍華休斯管理公司 2025 年第一季財報電話會議。（操作員指示）提醒一下，今天的節目正在錄製。

And now, I'd like to introduce your host for today's program, Eric Holcomb, Senior Vice President of Investor Relations. Please go ahead, sir.

現在，我想介紹今天節目的主持人、投資者關係資深副總裁 Eric Holcomb。先生，請繼續。

Good morning and welcome to Howard Hughes Holdings first quarter 2025 earnings call. With me today are Bill Ackman, Executive Chairman; David O’Reilly, Chief Executive Officer; Jay Cross, President; Carlos Olea, Chief Financial Officer; Dave Striph, President of Asset Management and Operations; Joe Valane, General Counsel; and Ryan Israel, Chief Investment Officer.

早安，歡迎參加霍華休斯控股 2025 年第一季財報電話會議。今天與我一起出席的有執行董事長比爾·阿克曼 (Bill Ackman)、首席執行官戴維·奧萊利 (David O'Reilly)、總裁傑伊·克羅斯 (Jay Cross)、首席財務官卡洛斯·奧萊亞 (Carlos Olea)、資產管理和運營總裁戴夫·斯特里夫 (Dave Striph)、總法律顧問喬·瓦蘭 (Joe Valane

Before we begin, I would like to direct you to our website, howardhughes.com, where you can download both our first quarter earnings press release and our supplemental package. The earnings release and supplemental package include reconciliations of non-GAAP financial measures that will be discussed today in relation to their most directly comparable GAAP financial measures. Certain statements made today, that are not in the present tense or that discuss the company's expectations, are forward-looking statements within the meaning of the federal securities laws.

在我們開始之前，我想引導您訪問我們的網站 howardhughes.com，您可以在那裡下載我們的第一季收益新聞稿和補充包。收益報告和補充資料包括非公認會計準則 (GAAP) 財務指標的對賬，將於今天討論這些對帳與最直接可比較的 GAAP 財務指標之間的關係。今天所做的某些非現在時態或討論公司預期的聲明屬於聯邦證券法所定義的前瞻性聲明。

Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that these expectations will be achieved. Please see the forward-looking statement disclaimer in our first quarter earnings press release and the risk factors in our SEC filings for factors that could cause material differences between forward-looking statements and actual results. We are not under any duty to update forward-looking statements unless required by law.

儘管公司認為此類前瞻性陳述所反映的預期是基於合理的假設，但我們無法保證這些預期將會實現。請參閱我們第一季財報新聞稿中的前瞻性聲明免責聲明以及我們向美國證券交易委員會提交的文件中的風險因素，以了解可能導致前瞻性聲明與實際結果之間出現重大差異的因素。除非法律要求，我們沒有義務更新前瞻性聲明。

I will now turn the call over to our CEO, David O'Reilly.

現在我將電話轉給我們的執行長大衛·奧萊利 (David O'Reilly)。

Thank you, Eric, and good morning. On our call today, I'm going to begin with a recap of the first quarter and cover the segment highlights from our master plan communities. Dave Striph will cover the operating assets. Jay Cross will provide an update on our strategic developments. Carlos Olea will review our guidance and balance sheet. And then, finally, we're going to have Bill Ackman and Ryan Israel joined us to discuss the recent transaction in the future strategic direction for the company before we open up the lines for Q&A.

謝謝你，艾瑞克，早安。在今天的電話會議上，我將首先回顧第一季的情況，並介紹總體規劃社區的部分亮點。Dave Striph 將負責營運資產。傑伊·克羅斯 (Jay Cross) 將介紹我們的策略發展最新情況。卡洛斯·奧萊亞 (Carlos Olea) 將審查我們的指導和資產負債表。最後，在我們開始問答環節之前，我們將邀請比爾·阿克曼和瑞安·伊斯雷爾加入我們，討論最近的交易以及公司未來的戰略方向。

Jumping into our results, we experienced continued strong momentum across our segments in the first quarter, delivering adjusted operating cash flow of $63 million or $1.27 per diluted share. In our MPCs, homebuilder demand for residential land remained robust, leading to sequential and year-over-year growth of land sales, acres sold, price per acre and EBT. With this strong start to the year and significant land sales expected in the second and third quarters, we have strong confidence in our full year EBT guidance of $375 million.

從我們的業績來看，第一季我們各部門持續保持強勁勢頭，調整後的營運現金流為 6,300 萬美元，即每股攤薄收益 1.27 美元。在我們的 MPC 中，房屋建築商對住宅用地的需求仍然強勁，導致土地銷售、銷售面積、每英畝價格和 EBT 連續和同比增長。憑藉今年強勁的開局以及預計第二季和第三季將有大量土地銷售，我們對全年 3.75 億美元的 EBT 預期充滿信心。

Our operating assets delivered $72 million of NOI, representing a new quarterly record with impressive 9% year-over-year growth. In strategic development, demand for our condominiums remain solid. Our condo pipeline now represents $2.7 billion of future revenue that will be earned between 2025 and 2028. From a financing perspective, we closed on seven important financings that increased liquidity and extended our maturities that Carlos will detail later.

我們的營運資產實現了 7,200 萬美元的淨利潤，創下了新的季度紀錄，年增 9%。在策略發展方面，我們的公寓需求依然強勁。我們的公寓項目目前代表著 2025 年至 2028 年間 27 億美元的未來收入。從融資角度來看，我們完成了七項重要融資，增加了流動性並延長了我們的期限，卡洛斯稍後將詳細介紹。

Looking deeper into our results of the MPC segment. We delivered solid MPC EBT of $63 million in the first quarter, representing an increase of $39 million or 161% year-over-year. This growth was underscored by a $39 million increase in land sales, which was primarily driven by two super pads sales totaling 29 acres in Summerlin for more than $1.5 million per acre. Land sales in Texas were also strong with 41 residential acres sold in Bridgeland and the Woodlands with the [Hills], up 31% year-over-year. Overall, we achieved an impressive average price per acre of $991,000 during the first quarter, reflecting both sequential and year-over-year improvements.

深入研究 MPC 部分的結果。我們在第一季實現了 6,300 萬美元的穩健 MPC EBT，比去年同期增加了 3,900 萬美元，增幅達 161%。這一增長主要得益於土地銷售額增加了 3900 萬美元，這主要是由於位於 Summerlin 的兩塊超級地塊的銷售，總面積為 29 英畝，每英畝售價超過 150 萬美元。德州的土地銷售也表現強勁，布里奇蘭和伍德蘭茲（以及[山丘]）共售出 41 英畝住宅用地，較去年同期成長 31%。總體而言，我們在第一季實現了令人印象深刻的每英畝 991,000 美元的平均價格，這反映了連續和同比的改善。

MPC EBT growth was also favorably impacted by an $11 million increase in equity earnings, primarily related to improved results from our Summit joint venture. At our Floreo joint venture in Arizona, we sold another 11 acres of residential land for $793,000 an acre in the quarter. Lot in infrastructure development in Floreo remained on track and we expect homebuilders will start construction on model homes this summer.

MPC EBT 的成長也受到了股權收益增加 1,100 萬美元的正面影響，這主要與我們 Summit 合資企業的業績改善有關。在我們位於亞利桑那州的 Floreo 合資企業中，我們在本季以每英畝 793,000 美元的價格出售了另外 11 英畝的住宅用地。弗洛雷奧的基礎設施建設進展順利，我們預計房屋建築商將於今年夏天開始建造樣品屋。

Turning to new home sales. We continue to see solid demand across our MPCs with a total of 543 homes sold in the first quarter. Although this represented a decline compared to last year's outsized first quarter, which saw the highest quarterly results in three years after mortgage rates began to subside, it did represent a sequential improvement. In fact, new home sales outpaced both the third and fourth quarters of 2024 by 11% and 6%, respectively, providing a strong indicator of underlying demand and increased confidence in our land sale projections for the year. Sequentially, our most notable gains were in Bridgeland and Summerlin, which saw home sales growth of 12% and 9%, respectively, in the first quarter.

轉向新房銷售。我們繼續看到 MPC 的強勁需求，第一季共售出 543 間房屋。儘管與去年第一季的強勁表現相比有所下降，但確實代表著連續的改善，去年第一季是抵押貸款利率開始下降後三年來最高的季度業績。事實上，新房銷售量分別比 2024 年第三季和第四季成長了 11% 和 6%，這有力地表明了潛在的​​需求，並增強了我們對今年土地銷售預測的信心。連續成長的最顯著的是布里奇蘭 (Bridgeland) 和薩默林 (Summerlin)，這兩個地區第一季的房屋銷售分別成長了 12% 和 9%。

During the quarter, when the national housing market showed some signs of softening, our home sales are a testament to the resilience of our MPCs and the exceptional quality of life they provide their residents. Overall, with solid demand for new homes in all of our communities as well as continued undersupply of vacant developed lots, we expect homebuilder demand for incremental acreage will remain elevated. This will ultimately drive what we expect will be record residential land sales, price per acre and MPC EBT for the full year 2025.

本季度，當全國房地產市場出現一些疲軟跡象時，我們的房屋銷售證明了我們的 MPC 的彈性以及它們為居民提供的卓越生活品質。總體而言，由於我們所有社區對新房屋的需求強勁，以及空置開發地塊持續供應不足，我們預計房屋建築商對增量土地的需求將保持在高位。這最終將推動我們預期的 2025 年全年住宅土地銷售、每英畝價格和 MPC EBT 創下紀錄。

With that, I'm going to turn the call over to Dave Striph for a review of our operating assets.

說完這些，我將把電話轉給 Dave Striph，讓他審查我們的營運資產。

Thank you, David. In our operating assets segment, we started the year in a position of strength, delivering NOI of $72 million, including contribution from unconsolidated ventures. This represented a new quarterly record and a 9% improvement compared to the prior year, driven primarily by enhanced performance in our office and multifamily portfolios.

謝謝你，大衛。在我們的經營資產部門，我們年初就處於強勢地位，實現了 7,200 萬美元的淨利潤，其中包括來自非合併企業的貢獻。這創下了新的季度記錄，與上一年相比增長了 9%，這主要得益於我們辦公室和多戶型投資組合的業績增長。

Starting in office, we reported NOI of $33 million or an 8% year-over-year increase. This growth was primarily the result of improved occupancy and strong lease-up activity in the Woodlands and Summerlin most notably at 9950 Woodloch Forest and 1700 Pavilion, which ended the quarter 99% leased and 92% leased, respectively.

自上任以來，我們報告的淨營業利潤為 3,300 萬美元，年增 8%。這一成長主要得益於伍德蘭茲 (Woodlands) 和薩默林 (Summerlin) 的入住率提高和租賃活動強勁，尤其是 9950 Woodloch Forest 和 1700 Pavilion，本季末這兩個地方的出租率分別為 99% 和 92%。

Our multifamily portfolio also performed well in the quarter, delivering NOI of $16 million or a 14% year-over-year increase primarily driven by strong lease-up and our unstabilized assets and improved overall leasing at our stabilized properties, which ended the quarter at 96% leased.

我們的多戶型投資組合在本季度也表現良好，淨營業利潤 (NOI) 達到 1,600 萬美元，同比增長 14%，這主要得益於強勁的租賃增長和不穩定資產以及穩定物業的整體租賃改善，本季末租賃率為 96%。

In our retail portfolio, NOI was $14 million, which reflected a 2% decrease compared to the prior year. This modest reduction was primarily due to some tenant reserves in Ward Village partially offset by improvement at Marlow and Juniper's ground floor retail in Downtown Columbia as well as at Hughes Landing at the Woodlands.

在我們的零售投資組合中，淨營業利潤為 1,400 萬美元，與前一年相比下降了 2%。這種適度減少主要是由於沃德村 (Ward Village) 的一些租戶儲備，但被哥倫比亞市中心 Marlow 和 Juniper 底層零售店以及伍德蘭茲的休斯登陸點 (Hughes Landing) 的改善部分抵消。

In Downtown Summerlin, we continue to make progress on our tenant upgrades and recently signed new leases with several future tenants, including Garage, Alo and BYLT Basics. At quarter end, we had only five retail spaces available most of which are currently in negotiations, representing about 17,000 square feet.

在薩默林市中心，我們繼續在租戶升級方面取得進展，最近與幾家未來租戶簽署了新的租約，包括 Garage、Alo 和 BYLT Basics。截至本季末，我們僅有 5 個零售空間可用，其中大部分目前正在談判中，面積約為 17,000 平方英尺。

With that, I will now turn the call over to our President, Jay Cross, for an update on our strategic developments.

現在，我將把電話轉給我們的總裁傑伊‧克羅斯 (Jay Cross)，請他介紹我們的策略發展。

Thanks, Dave, and good morning, everyone. In the first quarter, condo pre-sales were solid, with 27 units contracted, representing incremental future revenue of approximately $51 million. Nearly all of these pre-sales were at Launiu, our 11th condo project in Ward Village, bringing this tower to 64% pre-sold. With such strong pre-sales, we expect to start construction later this year with an anticipated delivery in 2028.

謝謝，戴夫，大家早安。第一季度，公寓預售狀況穩健，簽約 27 套，未來營收增量約 5,100 萬美元。幾乎所有預售都發生在 Launiu，這是我們在 Ward Village 的第 11 個公寓項目，這使得該塔的預售率達到 64%。由於預售如此強勁，我們預計將於今年稍後開始施工，並於 2028 年交付。

At our other condo towers under construction, we are on track to deliver Ulana, a workforce housing development that is completely sold out in the fourth quarter of this year. The Park Ward Village, which is our [next market rate tower], was topped off during the quarter and remains on schedule for delivery in 2026. This tower is 97% pre-sold with only 17 units remaining to contract.

在我們其他正在建造的公寓大樓中，我們正按計劃交付 Ulana，這是一個勞動力住房開發項目，已於今年第四季度全部售罄。我們的 [下一座市場價格大廈] Park Ward Village 已於本季封頂，併計劃於 2026 年交付。該塔預售率為 97%，僅剩 17 個單位尚未簽約。

At Kalae, which is already impressively 93% pre-sold, we've made considerable progress with construction and continue to expect completion in 2027. And in Texas, construction on the Ritz-Carlton Residences of the Woodlands is advancing nicely, with topping off anticipated later this year and completion in 2027. At quarter end, this luxury development remained 70% pre-sold. We have continued to hold the majority of the remaining units off the market in an effort to capture incremental value closer to the project's completion.

Kalae 的預售率已高達 93%，我們的建設工作也取得了長足的進步，預計將於 2027 年完工。在德州，伍德蘭茲麗思卡爾頓公寓的建設進展順利，預計將於今年稍後封頂，並於 2027 年竣工。截至本季末，該豪華開發案的預售率仍為 70%。我們繼續將大部分剩餘單位撤出市場，以便在專案接近完工時取得增量價值。

As we discussed in our last earnings call, the Governor of Hawaii approved amendments to local development rules in January, which we believe will provide the potential for an additional 2.5 million to 3.5 million square feet of residential entitlements. We're currently reviewing how this will impact Ward Village's master plan but expect these entitlements will enable the construction of additional condo towers in areas of the communities that have not yet been redeveloped. We will share more about our plans as information becomes available in the coming quarters.

正如我們在上次收益電話會議上所討論的那樣，夏威夷州長於 1 月份批准了對當地發展規則的修訂，我們相信這將有可能增加 250 萬至 350 萬平方英尺的住宅面積。我們目前正在審查這將如何影響沃德村的總體規劃，但預計這些權利將能夠在尚未重新開發的社區區域建造更多的公寓大樓。我們將在未來幾季內分享更多有關我們計劃的資訊。

Shifting to our commercial construction projects. Currently, we have three projects underway in Texas, which will generate approximately $12.5 million of incremental NOI to our operating asset segment upon stabilization. These projects, which include the 1 Riva Row multi-family and Grogan’s Mill Retail redevelopment projects in the Woodlands, and the One Bridgeland Green mass timber office in Bridgen are all on budget and on schedule with completion expected this year.

轉向我們的商業建築專案。目前，我們在德克薩斯州正在進行三個項目，這些項目穩定後將為我們的營運資產部門產生約 1250 萬美元的增量淨營業收入。這些項目包括位於伍德蘭茲的 1 Riva Row 多戶住宅和 Grogan’s Mill 零售重建項目，以及位於布里根的 One Bridgeland Green 大型木材辦公大樓，所有項目均在預算和計劃之內，預計將於今年完工。

I would now like to hand the call over to our CFO, Carlos Olea, who will review our guidance and the balance sheet.

現在，我想將電話交給我們的財務長卡洛斯·奧萊亞 (Carlos Olea)，他將審查我們的指導和資產負債表。

Thank you, Jay, and good morning, everyone. With the strong momentum that we experienced across our segments during the first quarter, we remain confident in our ability to deliver our 2025 guidance as issued on our last earnings call.

謝謝傑伊，大家早安。憑藉第一季各部門的強勁發展勢頭，我們仍然有信心實現上次收益電話會議上發布的 2025 年指引。

Looking briefly into each segment, in MPCs, we continue to project robust EBT of $375 million at the midpoint, led by record residential land sales and price per acre. This represents a 5% to 10% year-over-year increase compared to last year's record performance and would constitute a new all-time high for us.

簡單回顧一下每個部分，在 MPC 中，我們繼續預測中點的 EBT 將達到 3.75 億美元，這主要得益於創紀錄的住宅土地銷售額和每英畝價格。與去年的創紀錄表現相比，這代表著年增 5% 至 10%，對我們來說將創下歷史新高。

In operating assets, we continue to project full year NOI between $257 million and $267 million or a range of flat to up 4% compared to 2024. At the midpoint of approximately $262 million, this would also represent a new full year record. Condo sales revenues are projected to be approximately $375 million in 2025 and driven entirely by the closing of units at Ulana, which is sold out and expected to be completed in the fourth quarter.

在營運資產方面，我們繼續預測全年淨利潤將在 2.57 億美元至 2.67 億美元之間，與 2024 年相比持平至成長 4%。以約 2.62 億美元的中點計算，這也將創下新的全年紀錄。預計 2025 年公寓銷售收入約為 3.75 億美元，完全由 Ulana 公寓的銷售推動，該公寓已全部售罄，預計將於第四季度完工。

Because Ulana is a workforce housing power, we do not expect to earn any condo gross profit from this project. The Park Ward Village, our next market rate condo development that will deliver in 2026, is nearly sold out with contracted revenues just under $700 million. And finally, we continue to expect cash G&A to range between $76 million $86 million or a midpoint of $81 million excluding approximately $9 million to anticipated non-cash stock compensation. Overall, we project our adjusted operating cash flow will range between $325 million and $375 million in 2025, with a midpoint of approximately $350 million or approximately $7 per share.

由於烏拉娜 (Ulana) 是勞動力住房大國，我們預計不會從該項目中獲得任何公寓毛利。我們的下一個市價公寓開發案 Park Ward Village 將於 2026 年交付，目前已基本售罄，合約收入略低於 7 億美元。最後，我們繼續預期現金 G&A 費用將在 7,600 萬美元至 8,600 萬美元之間，或中間值 8,100 萬美元，不包括約 900 萬美元的預期非現金股票補償。整體而言，我們預計 2025 年調整後的營運現金流將在 3.25 億美元至 3.75 億美元之間，中間值約為 3.5 億美元或每股約 7 美元。

At the end of the first quarter, we have $494 million of cash and $317 million of available lender commitments that can be drawn on for any development project or any corporate use. Combined, we had over $800 million of available liquidity, leaving us well positioned to allocate capital to our current projects and weather today's economic environment.

截至第一季末，我們擁有 4.94 億美元現金和 3.17 億美元可用貸款承諾，可用於任何開發項目或任何公司用途。總計起來，我們擁有超過 8 億美元的可用流動資金，使我們能夠為當前項目分配資金並度過當今的經濟環境。

At the end of March, the remaining equity contribution needed to fund our current projects, which will not all be spent in 2025, was approximately $251 million. From a debt perspective, we closed on the $200 million upsize and two-year extension to the non-consolidated credit facility for Floreo in Teravalis. We also executed a $20 million construction loan for a new build-to-suit medical office building in Bridgeland, which we expect will commence construction in the second quarter of this year.

截至 3 月底，我們目前專案所需的剩餘股權出資（不會在 2025 年全部用完）約為 2.51 億美元。從債務角度來看，我們完成了對特拉瓦利斯的 Floreo 的非合併信貸額度 2 億美元的增資和兩年的延期。我們還為布里奇蘭一座新的客製化醫療辦公大樓提供了 2000 萬美元的建設貸款，預計該大樓將於今年第二季開始建設。

Overall, we have $5.2 billion of debt outstanding at the end of the quarter with $425 million of maturity in 2025. Subsequent to quarter end, we made meaningful progress of this maturity, extending the loan on our Marlow multifamily project to 2027. And with this extension completed, our remaining maturities for this year are now $350 million and primarily consists of 6,100 Merriweather, 1,700 Pavilion, Tanager Echo and Wingspan. We expect all of this will be successfully refinanced during this year with advanced discussions already underway.

總體而言，截至本季末，我們的未償還債務為 52 億美元，其中 4.25 億美元將於 2025 年到期。季度末之後，我們在這一期限上取得了重大進展，將 Marlow 多戶型專案的貸款延長至 2027 年。隨著此次延期的完成，我們今年剩餘的到期債券現為 3.5 億美元，主要包括 6,100 架 Merriweather、1,700 架 Pavilion、Tanager Echo 和 Wingspan。我們預計所有這些都將在今年內成功完成再融資，目前已開始進行深入討論。

And finally, just this week, we closed on a second sale of MUD receivables in Bridgeland, generating cash proceeds of approximately $180 million. We expect to use these proceeds to pay down the Bridgeland notes providing significant additional liquidity and optionality for the company going forward.

最後，就在本週，我們完成了布里奇蘭第二筆 MUD 應收帳款的銷售，產生了約 1.8 億美元的現金收益。我們預計將利用這些收益償還 Bridgeland 票據，為公司未來發展提供大量額外的流動性和選擇性。

With that, I would now like to turn the call over to our Chairman, Bill Ackman, to discuss a recent transaction with Pershing Square and for closing remarks.

現在，我想將電話轉給我們的董事長比爾·阿克曼 (Bill Ackman)，討論最近與潘興廣場 (Pershing Square) 的交易並作最後發言。

Thank you, Carlos. I thought it actually would be useful just to rewind the tape a bit and talk about how we arrived at the current transaction. So we've been obviously shareholders of Howard Hughes for 14 years. We've watched tremendous progress in the business and really as evidenced by the most recent quarter, the focused NPC company has delivered really outstanding results.

謝謝你，卡洛斯。我認為稍微回顧一下並討論我們如何達成當前的交易實際上是很有用的。顯然，我們已經成為霍華休斯的股東 14 年了。我們看到了業務的巨大進步，正如最近一個季度所證明的那樣，專注於 NPC 的公司已經取得了非常出色的業績。

What we haven't achieved as a company is creating a lot of shareholder value. And this has been a challenge for us that we've tried to address over the last, sort of, many years. After spinning off the seaport and really getting not much of a reaction from the market to the pure play company, our original thinking was perhaps we have to just take the business private, and we started down a path to that end beginning in September looking to raise capital to take the business private.

作為一家公司，我們尚未實現的是創造大量的股東價值。這對我們來說是一個挑戰，我們在過去很多年裡一直在努力解決這個問題。在剝離海港業務後，市場對這家純粹的公司並沒有太大的反應，我們最初的想法是，也許我們必須將業務私有化，我們從 9 月開始走這條路，尋求籌集資金將業務私有化。

And we met with many -- I would say, every potential investor that would be interested in a transaction of this scale. And the reaction we got was everyone thought the business was a great business, but we could not find investors who were prepared to sign up for a very long duration investment in the company. Every investor we spoke to wanted ultimately to receive liquidity within 5 years and 7 years or 10 years, and that was not something we could create in the context of Howard Hughes, which is why we kind of considered other alternatives.

我們會見了許多人——我想說，每一位對這種規模的交易感興趣的潛在投資者。我們得到的反應是，每個人都認為這個企業是一個偉大的企業，但我們找不到願意對該公司進行長期投資的投資者。我們採訪過的每一位投資者都希望最終能在 5 年、7 年或 10 年內獲得流動性，而這並不是我們在霍華德休斯的背景下能夠實現的，這就是為什麼我們考慮其他替代方案。

What we finally arrived at was a transaction in which we convert Howard Hughes from a pure play real estate development company into a diversified holding company. And our thinking in that on the decision to go in this direction was driven by the fact that ultimately what we've concluded is that in the public markets, a pure play non-investment grade real estate developer of master plan communities is a business that the market assigns a very high cost of capital to. The market perceives this business on a long-term basis as -- subject to exposure to economic conditions, leveraged, non-investment grade and ultimately shareholders want to receive or sign a return on a cost of capital.

我們最終達成的協議是將霍華休斯從純粹的房地產開發公司轉變為多元化控股公司。我們之所以決定朝這個方向發展，是因為最終我們得出的結論是，在公開市場上，純粹從事總體規劃社區的非投資級房地產開發商是市場分配的資本成本非常高的企業。市場長期認為這項業務受經濟狀況、槓桿率、非投資等級的影響，最終股東希望獲得或簽署資本成本回報。

That's really above what the business can achieve on a regular basis going forward. And business needs to earn a return on its capital in excess of its cost of capital in order to create shareholder value, and we've not been able to achieve that as a standalone pure play company.

這確實超出了企業未來可以定期實現的目標。企業需要獲得超過資本成本的資本回報才能創造股東價值，而作為一家獨立的純公司，我們還無法實現這一目標。

So what we've decided to do and in negotiations with the special committee was to invest $900 million of fresh capital into the company by acquiring 9 million shares at $100 a share and transforming Howard Hughes into a diversified holding company. We are adding to the company. I'm returning as the Executive Chair. We're adding a new position, Ryan Israel, the CIO of Pershing. He's joining the company. And the Howard Hughes team remains the same and will work with us on this objective.

因此，我們決定與特別委員會進行談判，以每股 100 美元的價格收購 900 萬股股票，向公司投資 9 億美元的新資本，將霍華德休斯轉變為多元化控股公司。我們正在擴充公司規模。我將再次擔任執行主席。我們新增了一個職位，Ryan Israel，Pershing 的資訊長。他即將加入這家公司。霍華休斯團隊保持不變，並將與我們一起努力實現這一目標。

The Board, we have Ryan and I kind of returning, or myself returning. Ryan, a new addition to the Board. New Independent Director, Jean-Baptiste Wautier, JB, as he is called, spent, 25, 30-year career in private equity, most recently at BC Partners, where he was the CIO for more than a decade.

董事會方面，我和瑞安即將回歸，或者說我自己也將回歸。瑞安 (Ryan)，董事會新成員。新任獨立董事 Jean-Baptiste Wautier（JB）在私募股權領域擁有 25 至 30 年的職業生涯，最近在 BC Partners 擔任首席資訊長超過十年。

The business plan is to acquire what we call durable growth companies that meet our standards for business quality and defensibility. These are businesses that earn high returns on capital that we want to prepare to own for decades and businesses that will diversify Howard Hughes' exposure to real estate and earn returns on capital higher than it could be earned in a pure play real estate company and offer greater long-term growth.

該商業計劃是收購符合我們業務品質和防禦能力標準的持久成長公司。這些企業可以獲得高資本回報率，我們希望準備好持有它們數十年，這些企業將使霍華德·休斯在房地產領域的投資多樣化，並獲得比純粹的房地產公司更高的資本回報率，並提供更大的長期增長。

The kind of long-term plan is for Howard Hughes to become an investment grade company, for us to build a valuable business over a long period of time. So I'd be delighted to answer any and all of your questions. Obviously, questions addressed to management about the quarter. Also, be happy to address questions about our business plan going forward.

這個長期計畫是讓霍華休斯成為一家投資級公司，讓我們在長期內打造一項有價值的業務。因此我很樂意回答您的所有問題。顯然，這些問題是針對本季的管理層提出的。此外，我們也很樂意解答有關我們未來業務計劃的問題。

Thank you, operator. Let's open it for questions.

謝謝您，接線生。讓我們開始提問吧。

Anthony Paolone, JPMorgan.

摩根大通的安東尼保隆 (Anthony Paolone)。

Thanks and good morning. Maybe for Bill to start here. You've been in this process for for a little while now, and you've talked pretty clearly about what you want to do with it. So just wondering what you think the timeline is to see the first transactions completed and is this something that you've got a pipeline teed up and ready to go or or do you just now start to get go into the market and find deals?

謝謝，早安。也許比爾就從這裡開始。您已經參與這個過程有一段時間了，並且您已經非常清楚地談論了您想要用它做什麼。所以我只是想知道你們認為第一筆交易完成的時間表是怎樣的，這是你們已經準備好並準備好開始的事情嗎，或者你們現在才開始進入市場尋找交易？

Sure. So first of all, I think it might be useful to talk about what we believe our competitive advantages are in acquiring companies. The competition today for private businesses is principally private equity, and private equity investors have a lot of capital but there are certain things they can't offer to a seller.

當然。因此首先，我認為討論我們在收購公司時我們的競爭優勢是什麼可能會有所幫助。如今私人企業的競爭主要是私募股權，私募股權投資者擁有大量資本，但有些東西他們無法提供給賣家。

So I had an interesting meeting with the Governor of Virginia, Former Co-CEO of Carlyle, and he was saying, kind of, if you will, admiring what we're trying to accomplish with Howard Hughes. He said, look, as a private equity investor, I had to tell every company I ever engaged with that by ultimately selling to us that we're kind of joining the merry-go-round, meaning in five or seven years, we have to sell the business to someone else.

因此，我與維吉尼亞州州長、凱雷前聯席執行長進行了一次有趣的會談，他說，如果你願意的話，他有點欽佩我們與霍華休斯合作所取得的成就。他說，你看，作為一名私募股權投資者，我必須告訴每一家我曾經接觸過的公司，透過最終將公司賣給我們，我們就像加入了旋轉木馬，這意味著在五年或七年內，我們必須將公司賣給其他人。

And there are many owners of businesses that over a lifetime, let's say, you got a seven-year-old owner of a business builds a company over a lifetime. Not excited about the idea of selling the business to a private equity firm that's going to put a lot of leverage on the business, and they don't know who's going to own it, 5 years, 10 years, 15 years from now. And these are founders that have built a business, built relationships with employees over decades, built a company and a community. And really want to make sure their business, which is their legacy, is in kind of strong hands. And Warren Buffett's done a great job acquiring sort of family-owned, family-controlled businesses that sort of meet those criteria.

有很多企業主，他們用一輩子的時間，比如說，一個七歲的企業主，用一輩子的時間打造一家公司。他們對將業務出售給私募股權公司的想法並不感興趣，因為私募股權公司會對業務施加很大的影響力，而且他們不知道 5 年後、10 年後、15 年後誰會擁有它。這些創辦人幾十年來建立了企業、與員工建立了關係、建立了公司和社區。並且真正希望確保他們的業務（也就是他們的遺產）掌握在強而有力的人手中。華倫·巴菲特在收購符合這些標準的家族企業方面做得非常出色。

And -- but the issue for Berkshire today is, as a $1 trillion enterprise, acquiring anything other than a $20 billion company is not really going to move the needle for the business. So we think Howard Hughes becomes uniquely positioned to acquire founder-controlled, high-quality, great businesses, starting at relatively small scale. We have the ability once our stock trades -- closer intrinsic value to offer a tax-free execution to someone who wants to become part of a diversified enterprise. And we think that creates interesting sort of competitive advantages for us.

但波克夏今天的問題是，作為一家價值 1 兆美元的企業，收購任何價值 200 億美元的公司以外的公司都不會真正推動業務的發展。因此，我們認為霍華德·休斯擁有獨特的優勢，可以從相對較小的規模開始收購由創辦人控制的、高品質的優秀企業。一旦我們的股票交易更加接近內在價值，我們就有能力為想要成為多元化企業一部分的人提供免稅執行。我們認為這為我們創造了有趣的競爭優勢。

Obviously, since we did not complete the transaction until Monday, we've not really had substantive discussions with any counterparty. We sort of tested the concept on one potential counterparty. It was quite intrigued. Obviously, that will be one of our initial discussions.

顯然，由於我們直到週一才完成交易，因此我們實際上還沒有與任何交易對手進行實質討論。我們在一個潛在的交易對手身上測試了這個概念。這真是令人好奇。顯然，這將是我們最初的討論之一。

Something else that we intend to do, we've admired the value that's been created at Berkshire Hathaway by buying and building the most dominant insurance company in the world, that's provided profits from the insurance business but also very low cost float that has been able to be invested in much higher returning assets than a typical insurance company is able to invest in. Because as the Berkshire insurance operation is part of a diversified holding company, the regulators give them much more flexibility in investing that portfolio.

我們打算做的另一件事是，我們欽佩伯克希爾哈撒韋公司透過收購和建立世界上最具主導地位的保險公司所創造的價值，該公司不僅從保險業務中獲得了利潤，而且還提供了非常低成本的浮動資金，這些浮動資金能夠投資於比典型的保險公司能夠投資的回報率高得多的資產。由於波克夏保險業務是多元化控股公司的一部分，監管機構給予其在投資該投資組合方面的更大靈活性。

One of the things that Pershing Square brings to the table here is a long-term track record investing in marketable securities as part of our arrangement with the company. If we were to build an insurance company inside of the Howard Hughes Corporation, we would invest the equity portfolio of that insurance company for free, which would of course give that insurance business a competitive advantage in terms of the kind of returns it can earn on its assets.

潘興廣場 (Pershing Square) 為我們帶來的其中一項優勢是，我們與該公司達成協議，在投資有價證券方面擁有長期的良好記錄。如果我們要在霍華休斯公司內部建立一家保險公司，我們將免費投資該保險公司的股票組合，這當然會使保險公司在其資產回報率方面具有競爭優勢。

The insurance idea operation is a high priority for us. We have identified a superb potential leader of that business. I would say we're very early days in terms of discussions, so no certainty that anything will come up with those initial discussions. But now that we've announced the transaction, that is a very high priority for us. So I would say either -- a realistic outcome would be sometime by the fall, we have an announcement of a potential transaction.

保險理念運作對我們來說是重中之重。我們已經找到了該業務的一位極好的有潛力的領導者。我想說，我們的討論還處於早期階段，因此不確定初步討論是否能取得任何成果。但既然我們已經宣布了交易，這對我們來說就是一件非常重要的事情。所以我想說——一個現實的結果是，到秋天的某個時候，我們會宣布一項潛在的交易。

Okay. That's really helpful. And if I could just ask a follow up to all of this, you have the $900 million. It's substantial, but I think it sounds like your plans are also quite substantial. So how does capital allocation work going forward related to what goes into new businesses versus the traditional real estate Howard Hughes? You have probably over $1 billion worth of apartment assets. You're getting this density in Hawaii that increases the value there. I guess, like, do you envision changing or moving capital out of the legacy real estate into other areas or does that all just be left alone?

好的。這真的很有幫助。如果我可以問一下所有這些問題的後續情況，你有 9 億美元。這確實很重要，但我認為聽起來你的計畫也相當重要。那麼，與傳統的房地產霍華休斯相比，未來資本配置將如何運作？您的公寓資產價值可能超過 10 億美元。夏威夷的密度使得那裡的價值上升。我想，您是否設想將資本從傳統房地產轉移到其他領域，還是就此罷休？

Sure. So we're obviously enamored with the MPC business, and we understand the long-term economics of that business, and it's critically important that we build out MPCs to fulfill the demands and needs of the communities to make these sort of highly desirable places to live kind of long term.

當然。因此，我們顯然對 MPC 業務非常著迷，我們了解該業務的長期經濟效益，至關重要的是，我們要建造 MPC 來滿足社區的需求，從而使這些地方成為長期理想的居住地。

So really no change to kind of the business plans, if you will, for any of our communities, but the good news, I would say, is with the passage of time beginning over the next several years, we expect the MPC business to start generating cash in excess of what should be recycled, if you will, into equity investments and new apartments and condominiums and kind of other assets. And then, with the longer term passage of time, we expect the MPC business to be generating a large amount of cash that can be repatriated to the holding company to invest in other assets.

因此，對於我們任何社區來說，商業計劃實際上都沒有改變，但我想說的好消息是，隨著時間的推移，在接下來的幾年裡，我們預計 MPC 業務將開始產生超過應回收利用的現金，如果你願意的話，可以將其回收用於股權投資、新公寓、公寓和其他資產。然後，隨著時間的推移，我們預計 MPC 業務將產生大量現金，這些現金可以匯回控股公司投資其他資產。

But we would not ever, if you will, starve an MPC to free up capital to do something else, and we're contemplating -- the reason why we are wanting to buying primary shares from the company as opposed to secondary shares is because we want to give the business a head start in terms of injecting capital into the enterprise. But we're going to manage the MPC business and our communities the way we have historically and we're going to invest in projects that make sense. And we're going to continue to make these the most desirable award-winning places to live.

但是，如果您願意的話，我們永遠不會讓貨幣政策委員會 (MPC) 耗盡資金來做其他事情，我們正在考慮——我們之所以想從該公司購買一級股票而不是二級股票，是因為我們希望在向企業注入資本方面讓企業領先一步。但我們將按照以往的方式管理 MPC 業務和我們的社區，並將投資於有意義的專案。我們將繼續努力，使這些地方成為最令人嚮往的獲獎居住地。

And just to be clear, David, Carlos, Ryan and I will be part of that process. Everyone is economically incentivized to maximize the long-term value of Howard Hughes. And when I first -- when we first spun off Howard Hughes and the MPC business to shareholders, when it was owned by General Growth, what they did was basically starve the MPCs. They would extract, they would build an asset and then they would sell it. They'd take the profit, and they would use it in the mall business.

需要明確的是，大衛、卡洛斯、瑞安和我都將參與這個過程。每個人都受到經濟誘因來最大化霍華休斯的長期價值。當我第一次——當我們第一次將霍華休斯和 MPC 業務剝離給股東時，當它歸 General Growth 所有時，他們所做的基本上就是讓 MPC 陷入困境。他們會開採、建立資產，然後將其出售。他們會獲取利潤，並將其用於商場業務。

One of the first things we did is we stopped that behavior. We basically have retained every asset we've built other than hotel assets, where we made this kind of a strategic decision that we did not believe they were necessary for us to own them on a long-term basis. But we've taken a very long term view in overseeing and managing these communities ever since I joined the Board of the company, and that will continue going forward.

我們做的第一件事就是阻止這種行為。我們基本上保留了除酒店資產之外的所有已建資產，我們做出了這樣的策略決策，即我們認為沒有必要長期擁有這些資產。但自從我加入公司董事會以來，我們一直以長遠的眼光來監督和管理這些社區，並且將繼續這樣做。

Okay. Appreciate all of the context, Bill.

好的。感謝所有背景信息，比爾。

Of course.

當然。

Connor Mitchell, Piper Sandler.

康納米切爾、派珀桑德勒。

Hey, good morning. Thanks for taking my question. I guess just thinking about David being the CEO of the holding company now and then longer down the line when there's a few more companies or portfolio companies underneath the holding. Is the plan for you guys to appoint somebody to oversee the MPC business or will David kind of be still in charge of the CEO of the company overall as well as the MPC business and maybe just put in department heads or company CEOs for the different, acquired businesses down the line.

嘿，早安。感謝您回答我的問題。我想，我只是在想，當控股公司旗下還有更多的公司或投資組合公司時，大衛現在會擔任控股公司的執行長。你們是否計劃任命某人來監督 MPC 業務，或者 David 是否仍將負責整個公司的執行長以及 MPC 業務，也許只是為不同的被收購業務任命部門主管或公司執行長。

Sure. So David will remain CEO of the overall company. I think he'll be spending certainly the substantial majority of his time on the kind of Howard Hughes real estate part of the operation. And we will -- the kind of -- we were allocating resources, Ryan and I will be focused on acquiring kind of new businesses. We expect those businesses to be run in a pretty autonomous fashion with us overseeing kind of overall, I would say, capital allocation and that will be a shared responsibility of the senior leadership team of the company and ultimately the Board of Directors.

當然。因此，大衛仍將擔任整個公司的執行長。我認為他肯定會把大部分時間花在霍華休斯的房地產業務上。我們將—我們正在分配資源，瑞安和我將專注於收購新業務。我們希望這些業務能夠以相當自主的方式運營，我們將監督整體的資本配置，這將是公司高階領導團隊以及最終董事會的共同責任。

Okay. I appreciate that. And then, you mentioned that maybe you want to bring the debt up to investment grade. Can you just walk us through some of the steps that might be needed to change or improve the balance sheet in a way to reach the investment grade that you're aspiring to?

好的。我很感激。然後，您提到也許您想將債務提升到投資等級。您能否向我們介紹改變或改善資產負債表可能需要採取的一些步驟，以達到您所期望的投資等級？

Sure. So just to be -- number one, putting in 900 million of cash is a helpful thing to the overall credit quality of the enterprise. The goal is to have the holding company ultimately be investment grade. Query whether we can get the real estate subsidiary to investment grade, but one of the things that will help the overall creditworthiness of the sub is to have a very strong parent that owns it. One of the things the rating agencies consider and the way they rate a subsidiary is the creditworthiness of the parent.

當然。所以首先，投入 9 億現金對企業的整體信用品質是有幫助的。目標是讓控股公司最終達到投資等級。我們是否可以將房地產子公司提升至投資等級，這是一個疑問，但有助於提高子公司整體信譽度的因素之一就是擁有一個非常強大的母公司。評級機構考慮的因素之一以及對子公司進行評級的方式是母公司的信譽。

And here, we started out with a debt-free parent that's going to deploy capital in high-quality durable growth companies. And we think that just that infusion of capital -- and if you think about Howard Hughes today, it's a pure play real estate company and suffers from, if you will, to some degree, the economic volatility certainly over shorter term periods of time. If the owner of that business is not simply a kind of corporate shell but a very well-capitalized corporate parent that owns businesses that generate recurring cash flow, we expect that to really be a credit positive event for the principal real estate subsidiary of the company.

在這裡，我們從一個沒有債務的母公司開始，它將向高品質的持久成長型公司部署資本。我們認為，只是資本的注入——如果你想想今天的霍華休斯，它是一家純粹的房地產公司，在某種程度上，它肯定會受到短期經濟波動的影響。如果該企業的所有者不僅僅是一個空殼公司，而是一個資本雄厚的母公司，擁有能夠產生經常性現金流的業務，我們預計這對該公司的主要房地產子公司來說確實是一個信用利好事件。

Okay. And then just to follow up quickly, is the $900 million cash infusion, is any of that kind of plan to pay off any of the debts for the Howard Hughes at the moment or is that really just being held to acquire the new businesses to develop the insurance business or more along the lines of the parent company movements.

好的。然後只是快速跟進一下，9 億美元的現金注入，是否是目前為霍華休斯償還任何債務的計劃，或者實際上只是為了收購新業務來發展保險業務，或者更多地按照母公司的動向。

The good news is that the -- first of all, our view is that the rating agencies underrate, if you will, the subsidiary. And we're going to work to improve their understanding of the business so we can help make some progress there. But the business historically has consumed 100% plus of the cash it's generated in terms of, for the most part, desired need to continue to reinvest in the subsidiary.

好消息是－首先，我們的觀點是，評級機構低估了該子公司。我們將努力提高他們對業務的理解，以便幫助他們取得一些進展。但從歷史上看，該業務已經消耗了其所產生的現金的 100% 以上，大部分是為了繼續對子公司進行再投資。

With the passage of time, if we don't acquire another MPC-type asset which is not sort of in the business plan, just the maturation of our various communities will turn Howard Hughes from a business that has reinvested the substantial majority of its cash in building out new assets to a place where even meeting the demands of the communities going forward, there's still excess cash left over thereafter.

隨著時間的推移，如果我們不收購商業計劃中沒有的另一個 MPC 類型的資產，那麼隨著我們各個社區的成熟，霍華德·休斯將從一家將大部分現金再投資於建設新資產的企業，轉變為一家即使滿足未來社區需求，之後仍有剩餘現金的企業。

So we don't envision needing to put holding company cash into the subsidiary. We do envision kind of over the intermediate to long term, the subsidiary being a cash rich and in a position to return capital to the holding company.

因此，我們認為不需要將控股公司的現金投入子公司。我們確實預計，從中長期來看，子公司將擁有充足的現金，並有能力向控股公司返還資本。

Okay. I appreciate all the color. Thank you.

好的。我欣賞所有的色彩。謝謝。

Thanks.

謝謝。

(Operator Instructions) John Kim, BMO Capital Markets.

（操作員指示） John Kim，BMO 資本市場。

Thank you. I had a similar line of questioning. If you look at the cash flow statement of Howard Hughes, cash flow from operations been positive to the last three years. It turned negative this quarter, partially offset by cash flow from investments. I think a lot of that is property development, but the point is it's very lumpy investments, especially condo and commercial developments.

謝謝。我也有類似的疑問。如果你看霍華休斯的現金流量表，你會發現過去三年的經營現金流一直是正值。本季變為負值，但部分被投資現金流抵銷。我認為其中很多是房地產開發，但重點是這些投資非常不穩定，尤其是公寓和商業開發。

So my question is Howard Hughes -- is the cash flow generation going to accelerate over the next few years and be self-funding or will it really be after the current, kind of, developments planned coming to fruition?

所以我的問題是霍華休斯——未來幾年現金流的產生是否會加速並實現自籌資金，還是在當前計劃的發展實現之後才會真正實現？

Carlos, would you like to or --

卡洛斯，你想或者--

Yeah, John, thanks for the question. Look, as you know, we size our developments and our new investments in our communities based on the existing free cash flow of the business. We're just a self-funding vehicle where we're only investing in new developments to the extent we put the cash on the balance sheet to fund 100% of that project.

是的，約翰，謝謝你的提問。如您所知，我們根據業務現有的自由現金流來決定我們在社區的發展和新投資的規模。我們只是一個自籌資金的工具，我們只投資於新開發項目，並將現金放在資產負債表上，以資助該項目的 100%。

Going forward, as we see the continued maturation as Bill discussed and the infrastructure needs and the horizontal cost diminish over time, the free cash flow generation of each of these NPCs increases. Combine that with the stabilization of the recurring NOI from our operating assets, in the next three, five, seven years, the excess free cash flow of the real estate subsidiary should grow meaningfully.

展望未來，正如比爾所討論的，隨著我們看到其不斷成熟，基礎設施需求和橫向成本隨著時間的推移而減少，每個 NPC 的自由現金流產生都會增加。再加上我們經營資產經常性淨營業利潤的穩定，在未來三、五、七年內，房地產子公司的超額自由現金流應該會大幅成長。

In any particular quarter looking at our cash flow statement, there are ups and downs and lumps based on the required horizontal infrastructure that goes into any MPC. But if you look at it over a trailing 12 month period, I think you'll see that all the new investments have been sized appropriately relative to the free cash flow we generate.

在任何一個特定季度，查看我們的現金流量表，都會發現根據任何 MPC 所需的水平基礎設施而出現的起伏和波動。但如果你回顧過去 12 個月，我認為你會發現所有新投資的規模相對於我們產生的自由現金流而言都是適當的。

Okay. And David, you talked about, during the quarter, home sales up sequentially, down year-over-year of a strong, quarter last year. But how has activity and the home sales market been since Liberation Day?

好的。大衛，您談到，本季房屋銷售較上季上升，但與去年同期相比有所下降。但自解放日以來，房地產活動和銷售市場狀況如何？

It still remains strong within our MPCs. We are very cognizant of the national headlines and what's going on across the country. We haven't seen those headlines in our communities. And I think that that speaks to the quality of what we have, but also the appeal of master plan communities relative to buying a home that's not within a community that delivers a higher quality of life in our view.

它在我們的貨幣政策委員會中仍然保持強勁。我們非常了解全國的頭條新聞以及全國各地正在發生的事情。在我們的社區裡，我們還沒有看到這樣的頭條新聞。我認為這不僅說明了我們擁有的住房的質量，也說明了總體規劃社區相對於購買不在我們認為能提供更高生活質量的社區內的房屋的吸引力。

To date, we've seen great activity. We've seen great traction. I know you noted in your report that our builder price participation was down compared to last year, but to me that's not a canary in the coal mine, if you will. Builder price participation is when home prices appreciate meaningfully between the time we sell land and the home is sold.

到目前為止，我們已經看到了巨大的活動。我們已經看到了巨大的吸引力。我知道您在報告中指出，我們的建築商價格參與度與去年相比有所下降，但對我來說，這並不是煤礦裡的金絲雀。建築商價格參與是指在我們出售土地和出售房屋之間房價大幅上漲。

And over the past two years, we've seen rapid appreciation in the homes in our communities that's materializing great builder price participation. Over the past quarter, that home price appreciation has slowed, meaning that we're going to receive less builder price participation, but that's not an indication of a slowing housing market or fewer home sales. Our sales were strong this quarter. Subsequent to the end of the quarter, they've continued, and it gives us great confidence in reaffirming our guidance.

在過去的兩年裡，我們看到社區房屋價格迅速升值，這帶來了巨大的建築商價格參與。在過去的一個季度，房價上漲速度有所放緩，這意味著我們將獲得更少的建築商價格參與，但這並不表示房地產市場放緩或房屋銷售減少。本季我們的銷售業績強勁。在本季結束後，他們仍在繼續努力，這讓我們非常有信心重申我們的指導。

Okay. My final question is for Bill, the $900 million cash injection into the company, how much of that will be earmarked for the insurance investment versus other investments that you're looking at? And what are your return on invested capital hurdle rates on new investments.

好的。我的最後一個問題是，問比爾，向公司注入 9 億美元現金，其中有多少將專門用於保險投資，還是您正在考慮的其他投資？您對新投資的投資資本報酬率是多少？

So I would say, TBD on how much we invest in the insurance subsidiary, it sort of depends on whether we're hiring a team or whether we're buying an existing asset and putting capital into it. In terms of return on capital, I would say -- I would just sort of point you to Pershing Square over the last 21 years. We view what we do as a very high return strategy. The historic business of Pershing Square is to buy minority stakes and really high-quality businesses generally at a time when the market is sort of underappreciating them or they had some management or governance or other challenges and help make those businesses more successful.

所以我想說，我們在保險子公司的投資金額還有待確定，這取決於我們是否僱用一個團隊，或者我們是否購買現有資產並向其中投入資金。就資本回報率而言，我想說——我只是想向你指出過去 21 年潘興廣場的表現。我們認為我們所做的事情是一種高回報策略。潘興廣場 (Pershing Square) 的歷史業務是購買少數股權和真正高品質的企業，通常是在市場低估這些企業或這些企業面臨一些管理、治理或其他挑戰的時候，並幫助這些企業取得更大的成功。

We have not been an investor in private businesses. That being said, over the years, we have received many, I would say, a huge amount of deal flow in the private space that we really haven't had a platform that we could use to execute on that. And part of the theory here is to take advantage of that deal flow in the context of Howard Hughes, but I would say, our return objectives are high. What high is I guess is the eye of the beholder, but we're looking to generate high returns on capital.

我們沒有投資私人企業。話雖如此，多年來，我們在私人領域收到了很多交易，我想說，大量的交易流，我們真的沒有一個可以用來執行這些交易的平台。這裡的部分理論是在霍華德休斯的背景下利用交易流，但我想說，我們的回報目標很高。我想，高低取決於旁觀者的眼光，但我們希望獲得高資本回報。

Appreciate it. Thank you.

非常感謝。謝謝。

Thank you. (Operator Instructions) And this does conclude the question-and-answer session of today's program. I'd like to hand the program back to David O'Reilly for any further remarks.

謝謝。（操作員指示）今天節目的問答環節到此結束。我想將節目交還給大衛·奧萊利 (David O'Reilly)，以便他可以發表進一步的評論。

I want to thank everyone for joining us today. As always, if there are additional questions, we're always available. Finally, we're hosting an X Spaces Session to discuss our transformation into a diversified holding company and take additional questions. The event starts at 05:11 Eastern, and you can access that session by going to x.com/billackman or if you're logged into X already, there's a link to the event under Bill's account, which is @billackman. Look forward to speaking with you there or our next earnings call. Thank you again for joining.

我要感謝今天與我們一起參加的各位。像往常一樣，如果您還有其他問題，我們隨時可以解答。最後，我們將舉辦 X Spaces 會議，討論我們向多元化控股公司的轉型，並回答其他問題。活動於東部時間 05:11 開始，您可以訪問 x.com/billackman 訪問該會議，或者如果您已經登入 X，則可以在 Bill 的帳戶 @billackman 下找到該活動的連結。期待在那裡或下次財報電話會議上與您交談。再次感謝您的加入。

Thank you, ladies and gentlemen, for your participation in today's conference. This does include the program. You may now disconnect. Good day.

女士們、先生們，感謝各位參加今天的會議。這確實包括該程式。您現在可以斷開連線。再會。