CHCI Comstock Holding Companies Inc

YTD Revenue growth for 23rd consecutive period as Company prepares for next significant growth phase

• $13.0 million of revenue; YTD revenue of $34.4 million
  • 154% increase in recurring fee-based Property & Parking Management revenue; YTD up over 100%
  • $1.1 million QTD and YTD increase in supplemental fee revenue related to commercial leases
• Solid net income/Adjusted EBITDA performance despite impact of scheduled Q3 incentive fee trigger event that was temporarily deferred for seven commercial assets
• Operating cash flow increase of $3.3 million vs. prior year; $3.9 million generated in Q3 alone
• 26 additional AUM vs. prior year, primarily driven by rapid ParkX Management expansion
• 4 new commercial leases executed in Q3, representing 39,000 sqft. of office and retail spaces
• Residential managed portfolio 95% leased; in-place rent growth of 5% vs. prior year

Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or the “Company”), a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region, announced its financial results for the third quarter ended September 30, 2024.

“In Q3, we continued to execute on our strategic plan, generating year-to-date revenue that has grown versus the prior year for 23 consecutive periods and is at an all-time high, dating back to the shift to our current business model that we began in 2018,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “The recurring, fee-based revenue streams we generate from the high-quality assets we manage have established a stable growth platform. Paired with the recent expansion of our supplemental fees schedule related to commercial leasing, as well as the significant AUM growth we are currently projecting, we have the benefit of clear visibility on future top line growth in Q4 and beyond.”

Mr. Clemente continued, “Our asset-light, debt-free business model continues to generate cash, nearly $4 million in Q3 2024 alone. As a result, we are well-positioned to expand our Institutional Venture Platform, the focus of which is joint venture acquisitions of strategic real estate investments that are value-add and capable of generating high return on invested capital. Our current managed portfolio remains in-demand and leased far above industry averages, and our development pipeline includes The Row at Reston Station, the ongoing ~$1.5 billion development that will be substantially delivered by the 2nd half of 2025. I am extremely excited for our next significant phase of growth as well as what the future holds for Comstock and all its stakeholders.”

Key Performance Metrics

($ in thousands, except per share and portfolio data)

Q3 2024

 

Q3 2023

 

YTD 2024

 

YTD 2023

 

Revenue

$

12,995

 

$

14,463

 

$

34,386

 

$

33,705

 

 

 

 

 

 

 

 

 

 

Net income

$

2,377

 

$

4,685

 

$

4,233

 

$

5,914

 

Adjusted EBITDA

 

3,133

 

 

5,605

 

 

6,220

 

 

8,258

 

 

 

 

 

 

 

 

 

 

Net income per share — diluted

$

0.23

 

$

0.46

 

$

0.41

 

$

0.59

 

 

 

 

 

 

 

 

 

 

Managed Portfolio - # of assets

 

72

 

 

46

 

 

72

 

 

46

Please see the included financial tables for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure.

Additional Information

• Commercial managed portfolio leased percentage of 94%1; executed 20 leases YTD, representing over 140,000 square feet, including ~117,000 square feet leased to new office and retail tenants.
• Residential managed portfolio leased percentage of 95%; more than 500 units leased YTD.
• Rapid expansion of ParkX-related AUM led to QTD and YTD increases in total revenue of 75% and 89%, respectively, for ParkX Management subsidiary.
• Continued construction progress at The Row, Reston Station’s second phase of development.
  • Pre-sales of condominiums in the JW Marriott Residences remain ahead of schedule and are exceeding pricing projections, with first deliveries anticipated in Q3 2025.
  • Significant leasing interest from prospective tenants for two Trophy-Class office towers that will be ready for occupancy in 2025 and 2026.

_____________________________

1 Represents stabilized assets only and includes terminated leases have been substantially prepaid or prepaid in full.

About Comstock

Founded in 1985, Comstock is a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region. With a managed portfolio that includes approximately 10 million square feet of stabilized, under construction, and planned assets that are strategically located at key Metro stations, Comstock is at the forefront of the urban transformation taking place in one of the nation’s best real estate markets. Comstock’s developments include some of the largest and most prominent mixed-use and transit-oriented projects in the mid-Atlantic region, as well as multiple large-scale public-private partnership developments. For more information, please visit Comstock.com.

Cautionary Statement Regarding Forward-Looking Statements

This release may include "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "seeks" or other similar expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. You should not place any undue reliance on any forward-looking statement, which speaks only as of the date made. Any number of important factors could cause actual results to differ materially from those projected or suggested by the forward-looking statements. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.

COMSTOCK HOLDING COMPANIES, INC.

Consolidated Balance Sheets

(Unaudited; In thousands)

 

 

September 30,

 

December 31,

 

 

2024

 

 

 

2023

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

21,051

 

 

$

18,788

 

Accounts receivable, net

 

440

 

 

 

496

 

Accounts receivable - related parties

 

6,921

 

 

 

4,749

 

Prepaid expenses and other current assets

 

402

 

 

 

353

 

Total current assets

 

28,814

 

 

 

24,386

 

Fixed assets, net

 

587

 

 

 

478

 

Intangible assets

 

144

 

 

 

144

 

Leasehold improvements, net

 

67

 

 

 

89

 

Investments in real estate ventures

 

6,176

 

 

 

7,077

 

Operating lease assets

 

6,138

 

 

 

6,790

 

Deferred income taxes, net

 

9,750

 

 

 

10,885

 

Deferred compensation plan assets

 

470

 

 

 

53

 

Other assets

 

18

 

 

 

37

 

Total assets

$

52,164

 

 

$

49,939

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accrued personnel costs

$

2,605

 

 

$

4,681

 

Accounts payable and accrued liabilities

 

910

 

 

 

838

 

Current operating lease liabilities

 

905

 

 

 

854

 

Total current liabilities

 

4,420

 

 

 

6,373

 

Deferred compensation plan liabilities

 

472

 

 

 

77

 

Operating lease liabilities

 

5,585

 

 

 

6,273

 

Total liabilities

 

10,477

 

 

 

12,723

 

 

 

 

 

Stockholders' equity:

 

 

 

Class A common stock

 

96

 

 

 

94

 

Class B common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

202,348

 

 

 

202,112

 

Treasury stock

 

(2,662

)

 

 

(2,662

)

Accumulated deficit

 

(158,097

)

 

 

(162,330

)

Total stockholders' equity

 

41,687

 

 

 

37,216

 

Total liabilities and stockholders' equity

$

52,164

 

 

$

49,939

 

COMSTOCK HOLDING COMPANIES, INC.

Consolidated Statements of Operations

(Unaudited; In thousands, except per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

12,995

 

 

$

14,463

 

 

$

34,386

 

 

$

33,705

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

 

9,583

 

 

 

8,557

 

 

 

27,375

 

 

 

24,561

 

Selling, general, and administrative

 

507

 

 

 

575

 

 

 

1,588

 

 

 

1,711

 

Depreciation and amortization

 

77

 

 

 

74

 

 

 

218

 

 

 

212

 

Total operating costs and expenses

 

10,167

 

 

 

9,206

 

 

 

29,181

 

 

 

26,484

 

Income (loss) from operations

 

2,828

 

 

 

5,257

 

 

 

5,205

 

 

 

7,221

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

169

 

 

 

—

 

 

 

476

 

 

 

—

 

Gain (loss) on real estate ventures

 

(75

)

 

 

(241

)

 

 

(369

)

 

 

(720

)

Other income (expense), net

 

23

 

 

 

1

 

 

 

56

 

 

 

48

 

Income (loss) from operations before income tax

 

2,945

 

 

 

5,017

 

 

 

5,368

 

 

 

6,549

 

Provision for (benefit from) income tax

 

568

 

 

 

332

 

 

 

1,135

 

 

 

635

 

Net income (loss)

$

2,377

 

 

$

4,685

 

 

$

4,233

 

 

$

5,914

 

 

 

 

 

 

 

 

 

Weighted-average common stock outstanding:

 

 

 

 

 

 

 

Basic

 

9,864

 

 

 

9,647

 

 

 

9,830

 

 

 

9,621

 

Diluted

 

10,329

 

 

 

10,130

 

 

 

10,278

 

 

 

10,082

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.24

 

 

$

0.49

 

 

$

0.43

 

 

$

0.61

 

Diluted

$

0.23

 

 

$

0.46

 

 

$

0.41

 

 

$

0.59

 

COMSTOCK HOLDING COMPANIES, INC.

Non-GAAP Financial Measures

(Unaudited; In thousands)

 

Adjusted EBITDA

 

The following table presents a reconciliation of net income (loss) from continuing operations, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA:

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Net income (loss)

$

2,377

 

 

$

4,685

 

$

4,233

 

 

$

5,914

Interest income

 

(169

)

 

 

—

 

 

(476

)

 

 

—

Income taxes

 

568

 

 

 

332

 

 

1,135

 

 

 

635

Depreciation and amortization

 

77

 

 

 

74

 

 

218

 

 

 

212

Stock-based compensation

 

205

 

 

 

273

 

 

741

 

 

 

777

(Gain) loss on real estate ventures

 

75

 

 

 

241

 

 

369

 

 

 

720

Adjusted EBITDA

$

3,133

 

 

$

5,605

 

$

6,220

 

 

$

8,258

The decreases in Adjusted EBITDA for the three and nine months ended September 30, 2024 are primarily driven by higher net income in 2023 due to the recognition of material supplemental incentive fee revenue, which was partially offset by the significant increases in recurring fee-based property and parking management revenue in 2024.

We define Adjusted EBITDA as net income (loss) from continuing operations, excluding the impact of interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation, and gain or loss on equity method investments in real estate ventures.

We use Adjusted EBITDA to evaluate financial performance, analyze the underlying trends in our business and establish operational goals and forecasts that are used when allocating resources. We expect to compute Adjusted EBITDA consistently using the same methods each period.

We believe Adjusted EBITDA is a useful measure because it permits investors to better understand changes over comparative periods by providing financial results that are unaffected by certain non-cash items that are not considered by management to be indicative of our operational performance.

While we believe that Adjusted EBITDA is useful to investors when evaluating our business, it is not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. Adjusted EBITDA should not be considered in isolation, or as a substitute, for other financial performance measures presented in accordance with GAAP. Adjusted EBITDA may differ from similarly titled measures presented by other companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107457340/en/

Investor Contact Christopher Guthrie Executive Vice President & Chief Financial Officer cguthrie@comstock.com 703-230-1292

Media Contact publicrelations@comstock.com 301-785-6327