Investments

Investment in HHH

The Company’s investment in HHH is classified as an equity method investment as the Company is deemed to exert significant influence over HHH, given (i) the Company’s ability to vote via PSCM’s direct ownership and the Pershing Square Funds’ ownership of HHH and (ii) PSCM’s right to designate directors on the Board of Directors of HHH. The Company has elected the fair value option for this investment with changes in fair value recognized through profit and loss. The Company’s investment in HHH is a Level I investment in the fair value hierarchy as shares of its common stock are publicly traded and quoted prices are readily available.

As of June 30, 2026, the Company’s investment in HHH was valued at $643,410,000 (December 31, 2025: $717,930,000), which represented an ownership percentage of approximately 15.1% (December 31, 2025: 15.2%). For the three and six months ended June 30, 2026, the Company recorded an unrealized gain of $74,070,000 and an unrealized loss of $74,520,000 from its investment in HHH (2025: gain of $270,000 and $270,000).

Investment in PSLP

PSGP’s investment in PSLP is considered an equity method investment as PSCM is deemed to exert significant influence over PSLP as the fund’s investment manager. The Company has elected the fair value option for this investment. Fair value for PSGP’s investment in PSLP is determined using the net asset value of PSLP in accordance with the “practical expedient” as defined by GAAP. In accordance with ASC 810-20, investments that are measured at fair value using the net asset value per share practical expedient are not required to be classified in the fair value hierarchy.

As of June 30, 2026, PSGP had an investment of $56,820,724 (December 31, 2025: $79,288,239) in PSLP, which represented an ownership percentage of approximately 5.8% (December 31, 2025: 5.2%). For the three and six months ended June 30, 2026, PSGP recorded an unrealized gain of $2,149,815 and an unrealized loss of $8,793,965 (2025: gain of $8,577,450 and $8,670,578) from its investment in PSLP.

Members in PSGP can withdraw all of their partnership interest each calendar quarter upon 45 days prior written notice, but are subject to (i) PSCM’s contractual or regulatory restrictions on trading, or “trading windows” whereby PSCM may be in possession of any material nonpublic information regarding one or more of PSLP’s portfolio companies and (ii) any other limitations on withdrawals as set forth in the general partner agreement.

Investment in PSUS Common Shares

Concurrently with the Combined Transaction, PS Inc. increased the Company’s total investment in PSUS common shares from $17.1 million to $200 million, and its ownership of PSUS dropped from 100% to 4.0%. Subsequent to the Combined Transaction and loss of control over PSUS, the Company’s investment in PSUS common shares is classified as an equity method investment as the Company is deemed to exert significant influence over PSUS as the fund’s investment manager. The Company has elected the fair value option for this investment with changes in fair value recognized through profit and loss. The Company’s investment in PSUS common shares is a Level I investment in the fair value hierarchy as its shares are publicly traded and quoted prices are readily available.

As of June 30, 2026, the Company’s investment in PSUS common shares was valued at $149,520,000, which represented an ownership percentage of approximately 4.0%. For the three and six months ended June 30, 2026, the Company recorded an unrealized loss of $50,480,000 from its investment in PSUS common shares.

Investment in PSUS Preferred Shares

Concurrently with the Combined Transaction and investment in PSUS common shares, the Company invested $50 million in PSUS preferred shares. Dividends on the preferred shares accumulate at an annual rate of 7.50%. The preferred shares have a liquidation preference of $50 million ($50.00 per share) and provide the Company with the right to elect two trustees to the PSUS board of trustees. The PSUS preferred shares are considered a debt security under ASC 320 for which the Company has elected the fair value option, so changes in fair value for this investment are recognized through profit and loss. The Company’s investment in PSUS preferred shares is a Level III investment in the fair value hierarchy as its fair value is determined using unobservable inputs.

As of June 30, 2026, the Company’s investment in PSUS preferred shares was valued at $50,130,000. For the three and six months ended June 30, 2026, the Company recorded an unrealized gain of $130,000 from its investment in PSUS preferred shares.

Sale Restrictions on Equity Securities

Under the terms of its investments in PSUS common shares and PSUS preferred shares in connection with the Combined Transaction, PS Inc. is required to maintain $100 million and $50 million of the Company’s investment in PSUS common and preferred shares (or a substantially equivalent economic position), respectively, for at least 25 years following the consummation of the Combined Transaction.

Fair Value Hierarchy

Leveling

Level III Investments