Bill Ackman on Capital Allocation

Taken together, these and other factors reinforced an environment in which market volatility is increasingly influenced by policy expectations and geopolitical developments, creating a more challenging investing landscape. The Board remains focused on long-term value creation for PSH shareholders and believes that the Investment Manager’s disciplined, fundamentals-driven approach continues to serve investors well. Periods of market dislocation during the year allowed the Investment Manager to deploy capital at attractive valuations, consistent with its patient and opportunistic investment philosophy. During the year, PSH and the Investment Manager undertook a number of strategic initiatives designed to strengthen PSH’s balance sheet, enhance shareholder returns, and position the Company for long-term value creation, including debt issuances, increased shareholder distributions, share repurchases, and a significant investment in Howard Hughes Holdings, Inc. (NYSE:HHH). The Board believes the Investment Manager’s strategic initiatives and performance continue to demonstrate the strength of its long-term orientation in an increasingly complex global environment. These actions, including subsequent developments at HHH and related commitments by PSH, are discussed in greater detail in the sections that follow. INVESTMENT PERFORMANCE During the year ended December 31, 2025, PSH’s NAV per share, including dividends, increased by 20.9% net of fees, ending the year at $85.32.

The S&P 500’s total return over this period was 26% in 2023, 25% in 2024, and 18% in 2025 including dividend reinvestment. This sustained high level of performance has naturally led some observers to question whether market valuations have become detached from fundamentals. In our view, while the stock market could decline materially from current levels for reasons that are today unknown, the stock market’s advance has been largely supported by earnings growth rather than speculative excess. Of the S&P 500’s roughly 13% average annual return from 2020 through 2025, approximately 10 percentage points were attributable to earnings-per-share growth while only about three percentage points came from P/E multiple expansion. In other words, the market has not been driven principally by investors simply paying a higher multiple for earnings, but rather by the growth in profits of the index’s components. The S&P 500’s ~10% earnings-per-share growth over the past six years compares with ~7% in the five years prior to COVID and roughly ~8% since 1990. In the last two years, earnings-per-share growth has been even higher with 13% growth in 2024 and 14% in 2025. In the next two years, stock market analysts estimate that earnings per share will continue to grow at 14%.

Pershing Square Holdings, Ltd. 15 offerings, continues to invest in its logistics network to allow for same-day shipping to an increasing percentage of its customer base, and leverages AI investments to improve the overall customer purchasing experience. We estimate that Amazon’s retail business’s structural profit margin potential to be meaningfully higher than its current ~7% level achieved this year after adjusting for differences in its business mix relative to peers and factoring in its fast-growing, high-margin advertising revenue. Moreover, the company is seeing large productivity gains from warehouse automation and its one-of-a- kind logistics network. As a proof point, per-unit shipping costs have been steadily declining for the last eight quarters in a row. While Amazon’s share price has appreciated from our initial cost, it continues to trade at an attractive multiple of approximately 26 times earnings per share, a highly discounted valuation relative to peers and its expected earnings per share growth rate of 20%+ over the medium to longer term. Brookfield Corporation (“BN” or “Brookfield”) Brookfield is a high-quality, asset-rich, rapidly growing business that has a long-term track record of excellent capital allocation.

If this plan is implemented, the Trump administration could begin working on the necessary actions to achieve a successful exit from conservatorship within the next couple of years. These actions would include revising the capital rule to allow the GSEs to earn adequate returns without raising guarantee fees, modifying the existing Preferred Stock Purchase Agreements to act as an ongoing, paid-for government backstop, codifying and communicating the regulatory powers that FHFA would retain post-conservatorship, and recruiting and incentivizing world-class management and boards of directors for Fannie and Freddie. As we previously disclosed in our X presentation, we believe this plan would drive a re-rating of Fannie and Freddie common shares above $40, roughly five times current levels, implying a valuation of over $300 billion for the taxpayers’ 79.9% stake in the companies. We believe a share sale to investors, whether through a “re-IPO” to raise primary capital or a secondary sale of a portion of Treasury’s ownership, is neither feasible while the entities remain in conservatorship, nor necessary as the companies are recapitalizing rapidly through retained earnings. Hertz Hertz is a leading vehicle rental provider in the early stages of a turnaround led by a strong management team. The company has successfully navigated a challenging period, reached important operational milestones, and is now profitable with a strengthened liquidity profile.

Pershing Square Holdings, Ltd. 22 Recently Exited Equity Positions: Hilton (“HLT”) We exited our investment in Hilton after a highly successful, more than seven-year holding period. Hilton is a quintessential Pershing Square investment: a high-quality, asset-light, high-margin business with significant long-term growth potential and superb management. We initiated the position in 2018 at an attractive valuation of less than 23 times our estimate of earnings per share for the following year. At the time, HLT traded at a discount to both its historical average and our estimate of intrinsic value, as investors were concerned about a potential macroeconomic slowdown and failed to appreciate the high-quality nature of the company’s fee-based business model and highly attractive earnings algorithm. Over the subsequent years, Hilton generated excellent financial results, anchored by best-in-class net unit growth which drove fee revenue growth of approximately 70%. Strong top-line performance was enhanced by exceptional cost control, with corporate overhead essentially flat over the past seven years, driving operating profit growth of 85%. Earnings growth was further supported by best-in-class capital allocation – Hilton retired more than 20% of its outstanding shares at highly accretive prices – driving a 150% increase in earnings per share over our holding period.

Shareholders may also elect to reinvest cash dividends into Public Shares through a dividend reinvestment program (“DRIP”) administered by an affiliate of MUFG Corporate Markets (Guernsey) Limited (“MUFG”, and previously Link Market Services), the Company’s registrar. Further information regarding the dividend, including the anticipated 2026 dividend payment schedule and how to make these elections, is available at www.pershingsquareholdings.com/psh-dividend-information. Each dividend is subject to a determination that, after the payment of the dividend, the Company will meet solvency requirements under Guernsey law, and that, in accordance with the indentures governing the Bonds, the Company’s total indebtedness will be less than one third of the Company’s total capital. The Board may determine to modify or cease paying the dividend in the future. In the year ended December 31, 2025, the Company distributed dividends of $118,119,801, a net increase of $10,953,119 from the amount it distributed in 2024 due to the increase in the Company’s dividend per Public Share. DIRECTORS The present members of the Board, all of whom are non-executive Directors, are listed on pages 30-32. Further information regarding the Board is provided in the Corporate Governance Report. The Company maintains directors’ and officers’ liability insurance in relation to the actions of the Directors on behalf of the Company.

Pershing Square Holdings, Ltd. 120 Endnotes and Disclaimers ENDNOTES TO CHAIRMAN’S STATEMENT i. The Company’s NAV appreciation is calculated with respect to the Public Shares only. Performance results are presented on a net-of-fees basis. Net returns include the reinvestment of all dividends, interest, and capital gains from underlying portfolio companies and assume an investor has participated in any “new issues” as such term is defined under Rules 5130 and 5131 of FINRA. Net returns also reflect the deduction of, among other things, management fees, brokerage commissions, administrative expenses and performance fees (if any). The Company has periodically engaged in share repurchases whereby its buyback agent has repurchased Public Shares subject to certain limitations. Any positive impact on the Company’s performance due to these share buybacks is reflected in the returns herein. Performance is based on the dollar return for the specific period, including any and all dividends paid by the Company, calculated from the beginning of such period to the end of such period. Past performance is not a guarantee of future results. ii. The S&P 500 Index (“index”) has been selected for purposes of comparing the performance of an investment in the Company with a well-known, broad-based equity benchmark. The statistical data regarding this index has been obtained from Bloomberg and the returns are calculated assuming all dividends are reinvested.

The index is not subject to any of the fees or expenses to which the Pershing Square funds are subject. The Pershing Square funds are not restricted to investing in those securities which comprise this index, their performance may or may not correlate to this index and the portfolio of the funds should not be considered a proxy for this index. The volatility of an index may materially differ from the volatility of the Pershing Square funds’ portfolios. The S&P 500 is comprised of a representative sample of 500 U.S. large-cap companies. The index is an unmanaged, float-weighted index with each stock's weight in the index in proportion to its float, as determined by Standard & Poors. The S&P 500 index is proprietary to and is calculated, distributed and marketed by S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC), its affiliates and/or its licensors and has been licensed for use. S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC. © 2026 S&P Dow Jones Indices LLC, its affiliates and/or its licensors. All rights reserved. iii. The Company’s share price performance is calculated based on the Company’s Public Shares traded on the LSE in USD and includes dividend reinvestment. Over the same period, the share price performance, including dividend reinvestment, of Public Shares listed on the LSE in Sterling increased by 26.1% iv. Discount to NAV is calculated based on the Company’s Public Shares listed on the LSE in USD.

Over the same period, the discount to NAV of Public Shares listed on the LSE in Sterling narrowed from 31.5% to 23.4%. ENDNOTES TO COMPANY OVERVIEW, COMPANY PERFORMANCE AND INVESTMENT MANAGER’S REPORT 1. Performance results are presented on a net-of-fees basis. Net returns include the reinvestment of all dividends, interest, and capital gains from underlying portfolio companies and reflect the deduction of, among other things, management fees, brokerage commissions, administrative expenses and accrued and/or crystallized performance allocation/fees (if any). The Company has periodically engaged in share repurchases whereby its buyback agent has repurchased Public Shares subject to certain limitations. Any positive impact on the Company’s performance due to these share buybacks is reflected in the returns herein. The Company’s performance is based on the dollar return for the specific period, including any and all dividends paid by the Company, calculated from the beginning of such period to the end of such period.in