Comstock Reports First Quarter 2024 Results
Comstock Holding Companies (Nasdaq: CHCI) reported its Q1 2024 financial results, highlighting a sustained growth trajectory.
Revenue increased by 4% to $10.6 million, marking the 15th consecutive quarter of year-over-year growth. The company saw a 45% increase in recurring fee-based Property & Parking Management revenue.
Net income rose 21% to $0.9 million, and Adjusted EBITDA came in at $1.5 million. Comstock also executed 10 commercial leases, including 7 new tenants, and expanded its managed commercial portfolio with the delivery of a new office tower at The Row at Reston Station.
The residential portfolio was 96% leased with a 7% in-place rent growth.
The ParkX managed portfolio saw a 44% revenue growth with the addition of 3 new garages and 15 new contracts. Construction is progressing on The Row at Reston Station, set to deliver 4 new buildings and a 1,200-space parking garage within 12 to 24 months.
- Revenue increased by 4% to $10.6 million.
- 15th consecutive quarter of year-over-year revenue growth.
- Net income rose 21% to $0.9 million.
- 45% increase in recurring fee-based Property & Parking Management revenue.
- Adjusted EBITDA of $1.5 million.
- Executed 10 commercial leases in Q1 2024, including 7 new tenants.
- Delivered the first trophy-class office tower at The Row at Reston Station.
- Residential managed portfolio is 96% leased.
- In-place rent growth of 7% versus the prior year.
- ParkX managed portfolio revenue grew 44%.
- Adjusted EBITDA decreased from $1.6 million in Q1 2023 to $1.5 million in Q1 2024.
- Despite revenue growth, the increase was only 4%, indicating slower growth than previous quarters.
- Potential risks with new commercial leases and expansions, as market conditions can change.
Insights
Comstock's Q1 2024 results highlight a steady growth trajectory with a
Adjusted EBITDA, however, shows a slight decline from
From an investor's perspective, these performance metrics suggest a robust and scalable business model with manageable risks. The delivery of new assets from The Row at Reston Station and the ongoing expansion of the ParkX portfolio further underpin future revenue growth potential.
The company's strategic focus on high-quality asset management and development in the Washington, D.C. region appears to be paying off. The addition of new tenants and assets suggests a healthy demand for Comstock's properties, even amid potential market fluctuations. Specifically, the delivery of the first trophy-class office tower and the managed portfolio's high occupancy rates are positive indicators for future leasing activity and revenue streams.
Comstock's managed residential portfolio being
These developments highlight Comstock's ability to leverage its existing assets while strategically expanding its portfolio. Investors should view these metrics as aligning with a long-term growth strategy, particularly with the anticipated delivery of substantial new assets in the next 12-24 months.
Significant managed portfolio expansion continues recent growth trajectory
-
Revenue increased
4% to$10.6 million -
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 21% vs. prior year; Adjusted EBITDA of$1.5 million - 10 commercial leases executed in Q124, including 7 new tenants; Commercial portfolio expansion includes delivery of first trophy-class office tower in The Row at Reston Station, expanding capacity for new leasing activity
-
Residential managed portfolio
96% leased; in-place rent growth of7% vs. prior year
“In Q1 we achieved comparative revenue growth for the 15th consecutive quarter as expected thanks to versatility of our business model,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “Our impressive increase in fee-based property and parking management revenue will drive future results, thanks particularly to the efforts of our rapidly growing ParkX team. The high-quality assets in our managed portfolio remain in demand, best evidenced by our ability to sign 5 new tenants in Q1 at The
Key Performance Metrics
($ 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% , up3% 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
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
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
Source: Comstock Holding Companies, Inc.
FAQ
What were Comstock's Q1 2024 revenue and net income?
How much did Comstock's Property & Parking Management revenue increase in Q1 2024?
What was Comstock's Adjusted EBITDA for Q1 2024?
How many commercial leases did Comstock execute in Q1 2024?
What is the occupancy rate of Comstock's residential managed portfolio?
What growth did ParkX see in Q1 2024?
What are the new developments in The Row at Reston Station?
