Letter to Shareholders in the 2025 Semiannual Financial Statement

Pershing Square Holdings generated a 15.5% NAV return in the first half of 2025, compared with a 6.2% return for the S&P 500 over the same period. Year-to-date through August 19, 2025, PSH's NAV return was 17.7% versus 9.9% for the S&P 500. Ackman attributed the outperformance to strong portfolio company results and active repositioning during tariff-driven volatility, including a new position in Amazon initiated at 25 times forward earnings, additions to Brookfield and Hertz, and trims of UMG, Hilton, Chipotle, and a full exit of Canadian Pacific. The top gross contributors for H1 2025 were Uber (+5.3%), Fannie Mae (+4.8%), UMG (+3.7%), and Freddie Mac (+3.6%). PSH's shares trade at a 32.2% discount to NAV. A central focus of the letter is the transformation of Howard Hughes Holdings (HHH), where Pershing Square Holdco acquired a $900 million, 15% stake at $100 per share — a 48% premium to the pre-announcement price — with Ackman returning as Executive Chairman. Ackman outlined a plan to build HHH into a diversified holding company modeled on Berkshire Hathaway, with a first initiative to acquire or build a property-casualty insurance company whose assets PSCM would manage at no cost. On the broader market, Ackman noted that inflation has moderated, AI is generating productivity gains, and fiscal incentives are building, but cautioned that 'markets are ebullient' and 'signs of speculative activity are everywhere,' stating that investment selection will be paramount.