Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Fresh off the heels of his failed plans for an IPO for a new investment fund, billionaire investor and Pershing Square CEO Bill Ackman has signaled his next move, which involves a company he is already very familiar with.
Ackman filed paperwork with the Securities and Exchange Commission showing that he may be interested in taking Howard Hughes Corporation (NYSE:HHH) private. The paperwork indicates that Ackman has hired Jeffries LLC as an advisor on the potential deal. Pershing Square already owns a 37.5% stake in the company, making it the largest shareholder.
Trending: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.
Howard Hughes Holdings Inc. manages and develops master-planned communities, including large developments such as The Woodlands in Houston, Texas; Summerlin in Las Vegas; and Ward Village in Honolulu. The original Las Vegas area land ownership dates back to the 1950s when Howard Hughes himself bought 30,000 acres in Southern Nevada. Some of that land later became part of the Summerlin community. Howard Hughes makes its money by using sales of land, condominiums, and net operating income to fuel future development.
In the second quarter, the company reported net income per diluted share of $0.42 compared to a loss of $3.39 a year ago. This was driven by a resurgence in its real estate sales. It saw a 315% year-over-year increase in residential land sales. The company does not pay a dividend, and the stock has fallen by over 45% in the past five years.
While Ackman is known for being a bit of an activist investor, that's not the case with Howard Hughes. He has owned shares since it was a part of General Growth Properties in 2008. He's steadily added to his stake over time. Ackman was chairman of the company since its creation as Howard Hughes Holdings in 2010. He stepped down from the board in April and was replaced by longtime board member Scott Sellers. Ben Hakim, the President of Pershing Square Capital Management, also joined the board at that time.
Don’t Miss:
Oprah, Madonna and DiCaprio have turned to the alternative asset that is outperforming the S&P 500. Discover the potential of this market before other investors.
Finance companies are leaving New York for this hot city. Investing in its booming real estate market has never been more accessible.
At the start of August, Howard Hughes Holdings completed the spin off of Seaport Entertainment Group as an independent company. Seaport Entertainment Group owns part of the assets formerly associated with Howard Hughes Holdings, with a focus on entertainment and hospitality. Its assets include the Seaport NYC complex in New York City, Las Vegas Ballpark, and the Aviators minor league baseball team; part of Fashion Show Mall on the Las Vegas Strip, plus most of the air rights above it. Seaport also owns Jean-Georges Management, a company built around the restaurants of celebrity chef Jean-Georges Vongerichten. The spinoff means that Howard Hughes Holdings is now a pure-play master-planned community company.
Howard Hughes Holdings responded to Ackman's move with a news release saying that it has formed a committee of independent directors to evaluate any proposals that may come in but is issuing no further statements at this time. The stock rose after Ackman's interest was announced, even though no terms have been announced and the situation is highly speculative at the moment. Many announcements like this don't result in a takeover, but given Ackman's track record with the company and significant share, this is a move worth paying attention to.
Looking For Higher-Yield Opportunities?
The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks... Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).
Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article Bill Ackman Might Make A Big Real Estate Move originally appeared on Benzinga.com