Pershing Square Holdings (PSH) Investor Update summary

Board and governance

• Board comprises five independent directors, one manager representative owning 27% of the fund, with Rupert Morley appointed Chairman in 2024 and new directors Halit Coussin and Charlotte Denton joining.

• Board meets quarterly and as needed, focusing on fund performance, risk management, regulatory matters, operations, investor relations, expenses, and ESG integration.

• Committees, including a fully independent Management Engagement Committee, oversee fees and regulatory compliance.

• 2024 agenda included amending the Investment Management Agreement to reduce fees, delisting from Euronext Amsterdam, share buybacks, dividend policy, debt strategy, and discount management.

• 68 million shares repurchased since inception at an average 29% discount to NAV, with 27% of shares repurchased since inception.

Strategy and fee initiatives

• Sold a 10% stake in the management company for $1.05bn to family offices and institutions to support growth and reduce PSH performance fees, with no change in investment strategy.

• New funds launched by the manager will result in a 20% fee rebate to the fund, aligning interests and reducing costs.

• PSUS IPO postponed after strong investor interest; structure being re-evaluated to simplify investment decision and broaden investor base.

• Fee reductions and a potential U.S. listing are expected to help close the discount to NAV.

• Proposed transaction with Howard Hughes Holdings to transform it into a diversified holding company, eliminating PSH management fees on HHH shares.

Performance and capital allocation

• NAV grew 10.2% in 2024, share price up 3.9% due to discount widening; five- and seven-year compound growth exceeds 20%.

• 2025 YTD NAV up 8.4% and TSR at 12.9%; discount to NAV narrowed from 31.2% at 2024 year-end to 30.2% in early 2025.

• Dividend increased 65% over five years, automatically rising with NAV.

• Buybacks are considered when capital cannot be better deployed elsewhere; 2.5 million shares repurchased in 2024.

• Debt is conservatively managed, with a 15.1% debt-to-capital ratio, investment-grade ratings, laddered maturities from 2027 to 2039, weighted average maturity of 7 years, and cost of capital at 3.1%.