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Despite industry woes, healthy demand for certain real estate categories and limited supply bode well for Real Estate Development industry companies like HHH and LSEA.

Bill Ackman probably wouldn't mind being mentioned in the same breath as Warren Buffett. In fact, a recent deal between his Pershing Square fund and Howard Hughes Holdings (HHH -0.76%) aims to transform the real estate business into a diversified holding company much like that of Buffett's Berkshire Hathaway.

Berkshire Hathaway (BRK.A -0.16%) (BRK.B 0.11%) has produced amazing returns for long-term investors under Warren Buffett's leadership. However, at a more than $1 trillion valuation, its ability to consistently generate outsize returns from here is somewhat limited.

When Warren Buffett started buying shares of Berkshire Hathaway (BRK.A -0.67%) (BRK.B -0.81%) in 1962, it was a failing textile business. The appeal for Buffett wasn't Berkshire's business -- it was that its book value far exceeded its stock price.

Bill Ackman recently made his third offer to take a greater ownership stake in real estate developer Howard Hughes Holdings (HHH -0.13%) with the goal of turning the company into a "modern-day Berkshire Hathaway." In this video, I'll discuss the final terms of the deal and what investors need to know.

Howard Hughes Holdings (HHH) has appreciating land assets and a growing revenue stream but is undervalued by the market. Bill Ackman's Pershing Square Holdings invested $900 million in HHH, aiming to diversify and generate free cash, modeling HHH after Berkshire Hathaway's early years. The Pershing Square deal transforms HHH into a growth company and makes it more visible to investors, potentially warranting multiple expansion.

Howard Hughes Holdings Inc. (NYSE:HHH ) Q1 2025 Earnings Conference Call May 8, 2025 10:00 AM ET Company Participants Eric Holcomb - Senior Vice President, Investor Relations David O'Reilly - Chief Executive Officer Dave Striph - President of Asset Management & Operations Jay Cross - President Carlos Olea - Chief Financial Officer Bill Ackman - Executive Chairman Conference Call Participants Anthony Paolone - JPMorgan Connor Mitchell - Piper Sandler John Kim - BMO Capital Markets Operator Thank you for standing by. Welcome to the Howard Hughes Management's First Quarter 2025 Earnings Conference Call.

Pershing Square's $900 million investment in Howard Hughes aims to transform it into a modern-day Berkshire Hathaway, with a 48% premium to the stock price. Howard Hughes' management believes the Net Asset Value is between $100 and $115, aligning with Pershing Square's increased bid to $100 per share. The deal includes a 1.5% management fee and quarterly fees, with Pershing Square limiting its voting power to 40% and beneficial ownership to 47%.

While the top- and bottom-line numbers for Howard Hughes Holdings (HHH) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Howard Hughes Holdings (HHH) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to loss of $1.06 per share a year ago.