Pershing Square Holdings (PSH) Investor update summary

Strategic and organizational updates

• Significant transformation of Howard Hughes Holdings into a diversified holding company, with a $900 million investment and a pending $2.1 billion acquisition of Vantage Group Holdings, supported by new leadership and a focus on acquiring high-quality, durable growth businesses.

• Fee structures are being optimized, with reductions linked to new fund launches and management arrangements, aiming to lower long-term costs for shareholders.

• The investment team has expanded, maintaining a lean but experienced structure, with most members having long tenures, supporting stability and continuity.

• Board focused on share buybacks, dividend policy, debt strategy, and fee amendments; 6.6 million shares repurchased in 2025 at a 29% discount to NAV.

• Continued focus on addressing discount to NAV through performance, buybacks, dividends, and global marketing.

Financial performance and capital allocation

• NAV grew by 20.9% in 2025, with total shareholder return reaching 33.9% due to discount contraction; YTD 2026 NAV declined 5.4% and TSR declined 4.5%.

• Over eight years, compound growth in NAV and share price has been 22.6%, outperforming major indices.

• Cumulative net return since firm inception (2004) is 2,503%, compared to 854% for the S&P 500.

• Maintained conservative leverage with a total debt to capital ratio of 19.5% at year-end 2025; investment grade ratings upgraded by S&P and Fitch.

• Total assets under management reached $30 billion as of February 2026.

Portfolio and investment strategy

• Portfolio is concentrated in about a dozen high-quality, cash-generative businesses with strong moats and balance sheets.

• Recent investments include Amazon, Meta, and Hertz, while exits were made from Chipotle, Canadian Pacific, Nike, and Hilton.

• Increased exposure to high-growth megacaps such as Amazon, Alphabet, Meta, and Uber, leveraging market volatility for attractive valuations.

• HHH’s acquisition of Vantage expected to accelerate growth and diversify earnings; preferred investment in HHH offers attractive returns and contractual exit mechanisms.

• UMG, Brookfield, and Restaurant Brands International highlighted for strong business models and discounted valuations.