Asset-light, debt-free business model
continues to deliver positive results
- Revenue increased 20% to $10.8 million; YTD increase of 11%
to $21.4 million
- 103% increase in recurring fee-based Property & Parking
Management revenue; YTD increase of 74%
- 24 additional AUM vs. prior year
- Net income increased 99% to $0.9 million; YTD increase of
51% to $1.9 million
- Adjusted EBITDA increased 56% to $1.6 million; YTD increase
of 16% to $3.1 million
- 6 new commercial leases executed in Q2 representing over
60,000 sqft. of office and retail space
- Residential managed portfolio 97% leased; in-place rent
growth of 7% 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 second quarter
ended June 30, 2024.
“Our growth continued as expected in Q2, as we achieved
comparative quarterly revenue growth for the 16th consecutive
period driven by the expansion of our managed portfolio and the
predictable, low-risk, fee-based nature of our business,” said
Christopher Clemente, Comstock’s Chairman and Chief Executive
Officer. “The stabilized assets in our managed portfolio are
approximately 95% leased in total, and include numerous
trophy-class office properties leased well-above industry averages
as well as multiple residential buildings that are essentially at
full capacity. The performance of our managed portfolio clearly
demonstrates the “flight-to-quality” trend that is reshaping the
commercial real estate landscape. It is also a testament to our
dedicated team of professionals who show up every day to make a
difference for our customers, our stakeholders, and in the
communities that we serve.”
Mr. Clemente continued, “During the quarter, our long-term
vision for The Row at Reston Station started coming into focus. We
topped off two new buildings, Virginia’s first-ever JW Marriott
Hotel and Residences and the BLVD Haley residential tower. We held
a grand opening for a state-of-the-art VIDA Fitness facility, the
first of several exciting retail openings scheduled to occur during
the next year, which impressively has already attracted
approximately 2,000 members. In addition, we opened the on-site
sales office for the JW Marriott-branded residences that will
occupy the top half of the 28-story tower and begin delivering in
mid-2025. I am pleased to report that pre-sales of the residences
are currently exceeding projections on both volume and pricing, a
strong indicator that sales of the remaining units will continue. I
look forward to reporting on our accomplishments in the upcoming
periods as we continue to focus on driving further value for all
stakeholders.”
Key Performance Metrics
($ in thousands, except per share and
portfolio data)
Q1 2024
Q1 2023
YTD 2024
YTD 2023
Revenue
$
10,753
$
8,967
$
21,391
$
19,242
Net income
$
946
$
475
$
1,856
$
1,229
Adjusted EBITDA
1,601
1,027
3,087
2,653
Net income per share — diluted
$
0.09
$
0.05
$
0.18
$
0.12
Managed Portfolio - # of assets
69
45
69
45
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 93%1; 16
leases representing over 100,000 square feet executed YTD,
including ~75,000 square feet leased to new office and retail
tenants.
- Residential managed portfolio leased percentage of 97%; more
than 300 units leased YTD.
- Continued rapid expansion of ParkX AUM led to QTD and YTD
increases in total revenue of 91% and 67%, respectively.
- Significant activity from key assets located at The Row, which
represents the second phase of the Reston Station development,
including:
- Continued construction progress on the JW Marriott Hotel &
Residences; double-digit pre-sales of condominiums located in the
building, exceeding expectations for sales projections and
pricing.
- Continued construction progress on two new Trophy-Class office
towers that will be ready for occupancy in 2025 and 2026, one of
which includes the flagship 50,000 square foot VIDA Fitness that
opened in May 2024. Both buildings are attracting considerable
interest from office tenants seeking to relocate from aging office
parks to the well-planned, mixed-use, and transit-oriented
developments in the Dulles Corridor.
- Significant progress on design and retail leasing for Midline
at Reston Station, the next phase of the Reston Station
development; includes an anchor tenant, Fresh Market, among other
leases.
_____________________________
1
% represents stabilized assets and
excludes recently delivered office tower from The Row at Reston
Station
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)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
17,431
$
18,788
Accounts receivable, net
437
496
Accounts receivable - related parties
6,106
4,749
Prepaid expenses and other current
assets
514
353
Total current assets
24,488
24,386
Fixed assets, net
545
478
Intangible assets
144
144
Leasehold improvements, net
74
89
Investments in real estate ventures
6,239
7,077
Operating lease assets
6,358
6,790
Deferred income taxes, net
10,318
10,885
Deferred compensation plan assets
390
53
Other assets
24
37
Total assets
$
48,580
$
49,939
Liabilities and Stockholders'
Equity
Current liabilities:
Accrued personnel costs
$
1,433
$
4,681
Accounts payable and accrued
liabilities
882
838
Current operating lease liabilities
888
854
Total current liabilities
3,203
6,373
Deferred compensation plan liabilities
391
77
Operating lease liabilities
5,819
6,273
Total liabilities
9,413
12,723
Stockholders' equity:
Class A common stock
96
94
Class B common stock
2
2
Additional paid-in capital
202,205
202,112
Treasury stock
(2,662
)
(2,662
)
Accumulated deficit
(160,474
)
(162,330
)
Total stockholders' equity
39,167
37,216
Total liabilities and stockholders'
equity
$
48,580
$
49,939
COMSTOCK HOLDING COMPANIES,
INC.
Consolidated Statements of
Operations
(Unaudited; In thousands, except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
10,753
$
8,967
$
21,391
$
19,242
Operating costs and expenses:
Cost of revenue
8,907
7,681
17,792
16,004
Selling, general, and administrative
546
572
1,081
1,136
Depreciation and amortization
73
71
141
138
Total operating costs and expenses
9,526
8,324
19,014
17,278
Income (loss) from operations
1,227
643
2,377
1,964
Other income (expense):
Interest income
166
—
307
—
Gain (loss) on real estate ventures
(101
)
(68
)
(294
)
(479
)
Other income (expense), net
11
47
33
47
Income (loss) from operations before
income tax
1,303
622
2,423
1,532
Provision for (benefit from) income
tax
357
147
567
303
Net income (loss)
$
946
$
475
$
1,856
$
1,229
Weighted-average common stock
outstanding:
Basic
9,830
9,632
9,812
9,608
Diluted
10,300
10,052
10,243
10,060
Net income (loss) per share:
Basic
$
0.10
$
0.05
$
0.19
$
0.13
Diluted
$
0.09
$
0.05
$
0.18
$
0.12
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
$
946
$
475
$
1,856
$
1,229
Interest income
(166
)
—
(307
)
—
Income taxes
357
147
567
303
Depreciation and amortization
73
71
141
138
Stock-based compensation
290
266
536
504
(Gain) loss on real estate ventures
101
68
294
479
Adjusted EBITDA
$
1,601
$
1,027
$
3,087
$
2,653
The increases in Adjusted EBITDA for the three and six months
ended June 30, 2024 were primarily driven by the significant
increases in recurring fee-based property management revenue in the
current period.
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/20240808890156/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
Comstock Holding Companies (NASDAQ:CHCI)
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