Pershing Square Holdings (PSH) Investor Update summary

Board and governance update

• Board comprises five independent directors and one manager representative, with the manager owning 27% of the fund, ensuring strong alignment with shareholders.

• Rupert Morley appointed Chairman in 2024, with new directors Halit Coussin and Charlotte Denton joining.

• Board meets quarterly and holds additional meetings, focusing on NAV, share price, operations, risk management, and regulatory matters, supported by five committees, three fully independent.

• 2024 agenda included share buybacks, dividend policy, debt strategy, fee amendments, and strategies to address the NAV discount.

• Recent actions include amending the Investment Management Agreement to reduce fees, delisting from Euronext Amsterdam to cut costs, and ongoing focus on addressing the NAV discount.

Financial performance and capital management

• NAV grew 10.2% in 2024, share price by 3.9%; 2025 YTD NAV up 8.4% and TSR at 12.9%.

• Discount to NAV widened to 31.2% at 2024 year-end but narrowed to 30.2% in early 2025.

• Maintained conservative leverage: total debt to capital ratio at 15.1% as of 12/31/24, with investment grade ratings.

• Laddered debt maturities from 2027 to 2039, weighted average maturity of 7 years, and cost of capital at 3.1%.

• Buybacks remain a tool, with 2.5 million shares repurchased in 2024 and 68 million shares repurchased since inception at an average 29% discount to NAV.

Strategic initiatives and transactions

• Sold a 10% stake in the manager for $1.05bn to family offices and institutions to support firm growth and reduce PSH performance fees.

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

• Anticipation of PSUS IPO led to PSH discount narrowing from 38% to 21% in 2024.

• Howard Hughes transaction aims to transform the company into a diversified holding entity, eliminating PSH management fees on HHH shares.

• New funds launched by the manager will result in a 20% management fee rebate to PSH, and incentive fees from new funds will be rebated to PSH shareholders.