Ray Zhong's questions to Howard Hughes Holdings Inc (HHH) leadership • Q2 2025
Question
Ray Zhong inquired about the pro forma leverage following a potential insurance acquisition, the expected deal size, and the operational changes implemented since Pershing Square's increased involvement, including the future of the real estate portfolio mix.
Answer
Executive Chairman William Ackman and CIO Ryan Israel clarified that an acquisition would likely use the ~$1 billion in cash on hand, potentially supplemented by capital from Pershing Square affiliates for a larger deal, while maintaining control. Ackman affirmed no changes to the real estate strategy, while CEO David O'Reilly detailed how G&A savings were achieved by centralizing the development team, a plan initiated prior to the Pershing transaction. Israel added that the key change is a broader approach to capital allocation.