Significant managed portfolio expansion
continues recent growth trajectory
- Revenue increased 4% to $10.6 million; 15th consecutive
period of year-over-year growth
- 45% increase in recurring fee-based Property & Parking
Management revenue
- 20 additional AUM vs. prior year, including 12 new
third-party ParkX contracts
- Net income of $0.9 million, an increase of 21% vs. prior
year; Adjusted EBITDA of $1.5 million
- 10 commercial leases executed in Q124, including 7 new
tenants; Commercial portfolio expansion includes delivery of first
trophy-class office tower in The Row at Reston Station, expanding
capacity for new leasing activity
- Residential managed portfolio 96% 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 first quarter ended
March 31, 2024.
“In Q1 we achieved comparative revenue growth for the 15th
consecutive quarter as expected thanks to versatility of our
business model,” said Christopher Clemente, Comstock’s Chairman and
Chief Executive Officer. “Our impressive increase in fee-based
property and parking management revenue will drive future results,
thanks particularly to the efforts of our rapidly growing ParkX
team. The high-quality assets in our managed portfolio remain in
demand, best evidenced by our ability to sign 5 new tenants in Q1
at The Hartford in Arlington’s vibrant Clarendon neighborhood.
Finally, we reached a significant milestone this quarter with the
initial delivery of managed assets from The Row at Reston Station,
the $1.3 billion development that will drive our next significant
growth phase. I am pleased with our first quarter progress and look
forward to adding to our success story throughout the remainder of
2024.”
Key Performance Metrics
($ in thousands, except per share and
portfolio data)
Q1 2024
Q1 2023
Revenue
$
10,638
$
10,275
Net income
910
754
Adjusted EBITDA
$
1,486
$
1,626
Net income per share — diluted
$
0.09
$
0.07
Managed Portfolio - # of assets
65
45
Please see the included financial tables
for a reconciliation of Adjusted EBITDA to the most directly
comparable GAAP financial measure.
Additional Information
- Managed commercial portfolio leased percentage for stabilized
assets of 93% (excludes newly delivered office tower from The Row
at Reston Station); executed 10 commercial leases representing over
40,000 square feet.
- Managed residential portfolio leased percentage of 96%, up 3%
vs. Q123; more than 170 units leased in Q124.
- ParkX total revenue grew 44% vs. the prior year due to rapid
expansion of ParkX managed portfolio that now includes 3 new
garages and 15 new contracts (12 with third-party owners).
- Significant construction progress made on The Row at Reston
Station development that will deliver 4 new buildings representing
1.2 million square feet and a 1,200-plus space parking garage over
the next 12 to 24 months.
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)
March 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
16,222
$
18,788
Accounts receivable, net
387
496
Accounts receivable - related parties
4,862
4,749
Prepaid expenses and other current
assets
609
353
Total current assets
22,080
24,386
Fixed assets, net
608
478
Intangible assets
144
144
Leasehold improvements, net
82
89
Investments in real estate ventures
6,328
7,077
Operating lease assets
6,575
6,790
Deferred income taxes, net
10,675
10,885
Deferred compensation plan assets
324
53
Other assets
30
37
Total assets
$
46,846
$
49,939
Liabilities and Stockholders'
Equity
Current liabilities:
Accrued personnel costs
$
778
$
4,681
Accounts payable and accrued
liabilities
898
838
Current operating lease liabilities
871
854
Total current liabilities
2,547
6,373
Deferred compensation plan liabilities
324
77
Operating lease liabilities
6,047
6,273
Total liabilities
8,918
12,723
Stockholders' equity:
Class A common stock
96
94
Class B common stock
2
2
Additional paid-in capital
201,912
202,112
Treasury stock
(2,662
)
(2,662
)
Accumulated deficit
(161,420
)
(162,330
)
Total stockholders' equity
37,928
37,216
Total liabilities and stockholders'
equity
$
46,846
$
49,939
COMSTOCK HOLDING COMPANIES,
INC.
Consolidated Statements of
Operations
(Unaudited; In thousands, except
per share data)
Three Months Ended March
31,
2024
2023
Revenue
$
10,638
$
10,275
Operating costs and expenses:
Cost of revenue
8,885
8,323
Selling, general, and administrative
535
564
Depreciation and amortization
68
67
Total operating costs and expenses
9,488
8,954
Income (loss) from operations
1,150
1,321
Other income (expense):
Interest income
141
—
Gain (loss) on real estate ventures
(193
)
(411
)
Other income (expense), net
22
—
Income (loss) from operations before
income tax
1,120
910
Provision for (benefit from) income
tax
210
156
Net income (loss)
$
910
$
754
Weighted-average common stock
outstanding:
Basic
9,794
9,583
Diluted
10,169
10,069
Net income (loss) per share:
Basic
$
0.09
$
0.08
Diluted
$
0.09
$
0.07
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 March
31,
2024
2023
Net income (loss)
$
910
$
754
Interest income
(141
)
—
Income taxes
210
156
Depreciation and amortization
68
67
Stock-based compensation
246
238
(Gain) loss on real estate ventures
193
411
Adjusted EBITDA
$
1,486
$
1,626
The $0.1 million decrease in Adjusted EBITDA is primarily driven
by higher supplemental revenue from leasing finders' fees in 2023,
partially offset by an increase 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/20240514262735/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
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