Comstock Reports Fourth Quarter and Fiscal Year 2024 Results

Rhea-AI Summary

Comstock (CHCI) reported strong Q4 and fiscal year 2024 results, demonstrating continued growth. Q4 revenue reached $16.9 million, up 54% year-over-year, with recurring fee-based revenue increasing 38%. Q4 net income was $10.3 million with a 162% increase in operating income.

For fiscal year 2024, revenue grew 15% to $51.3 million, with net income up 87% to $14.6 million. The company ended the year with $28.8 million in cash holdings. Their managed portfolio showed strong performance with commercial properties 93% leased and residential properties 96% leased.

The Row at Reston Station development is progressing toward late 2025 delivery, featuring Virginia's first JW Marriott hotel, luxury residential towers, and Trophy office spaces. The company's asset-light, debt-free business model has maintained a 25% top-line CAGR, with consistent AUM growth driving stable fee-based revenue streams.

Positive

• Q4 revenue up 54% to $16.9M with 38% increase in recurring fee-based revenue
• Net income grew 87% YoY to $14.6M in FY2024
• Strong occupancy rates: 93% commercial and 96% residential
• Healthy cash position of $28.8M at year-end
• 25% top-line CAGR with debt-free business model
• Managed portfolio generated over $100M in gross revenue for asset owners

Negative

• Significant dependence on The Row at Reston Station project delivery in 2025
• Residential rent growth to 4% year-over-year

Insights

Financial Analyst

Comstock's Q4 and fiscal 2024 results demonstrate exceptional financial performance across key metrics. The 54% Q4 revenue growth to $16.9 million highlights strong operational execution, particularly the 38% increase in recurring fee-based revenue which enhances earnings quality and predictability. The company's asset-light model continues delivering results with $10.3 million Q4 net income and $14.6 million for the full year - an impressive 87% year-over-year improvement.

What stands out is Comstock's financial efficiency and balance sheet strength. The $28.8 million cash position represents approximately 43% of their market capitalization with no debt, providing substantial financial flexibility. Their 25% revenue CAGR demonstrates consistent execution in an industry where such growth trajectories are rare. The $7.8 million Q4 operating cash flow further validates their business model's cash generation capabilities.

The occupancy metrics reveal strong demand fundamentals with commercial properties 93% leased and residential at 96% - both significantly outperforming industry averages. This occupancy strength translates directly to reliable revenue streams and reflects quality asset management. The substantial growth in ParkX-related asset management (69% YTD revenue increase) provides another diversified growth vector beyond core development.

The Row at Reston Station project represents significant future value creation potential with its 1.5 million square feet of premium mixed-use space on track for 2025 delivery. With anchor tenants like Carfax already committed, this development positions Comstock for sustained growth beyond current financial metrics.

Real Estate Development Expert

Comstock's results reflect a masterful execution of their asset-light management approach in the challenging Washington D.C. real estate market. Their portfolio performance speaks volumes - achieving 93% commercial occupancy when many office markets struggle with high vacancy rates demonstrates superior property positioning and management capability. The eight new commercial leases covering 104,000 square feet in Q4 alone shows robust demand for their assets despite broader market headwinds.

The strategic focus on transit-oriented, mixed-use developments has proven prescient. Their managed properties generating over $100 million in gross revenue for asset owners validates their business model and explains the consistent AUM growth. The 4% increase in average in-place rents across their residential portfolio outpaces inflation while maintaining 96% occupancy - the hallmark of well-located, well-managed properties.

The Row at Reston Station development represents the pinnacle of mixed-use strategy execution. Securing Virginia's first JW Marriott hotel creates a premium anchor that elevates the entire development. The tenant mix including VIDA health facility, Puttshack, and Ebbitt House (extension of the historic Old Ebbitt Grill) demonstrates masterful curation of experiential retail that drives foot traffic and supports premium office and residential rates.

Particularly significant is securing Carfax's headquarters relocation to Reston Station, validating the development's appeal to major corporate tenants. The combination of Trophy-class office buildings, luxury residential options, and carefully selected retail amenities creates a powerful value proposition in Northern Virginia's competitive market. The pre-sales momentum for JW Marriott-branded condominiums further confirms market acceptance of their premium positioning strategy.

Consistent revenue growth and positive operating cash flows continue CHCI’s successful track record

Q4 2024

• Q4 revenue of $16.9 million up 54% vs. prior year, including 38% increase in recurring fee-based revenue
  • $3.2 million of supplemental fee revenue earned in Q4 alone
• Q4 net income of $10.3 million, including 162% increase in operating income
• Q4 Adjusted EBITDA increased 45% to $3.1 million
• Generated $7.8 million of operating cash in Q4

Fiscal Year 2024

• YTD revenue increased 15% to $51.3 million, including 25% increase in recurring fee-based revenue
• YTD net income of $14.6 million, up 87% vs. prior year
• YTD Adjusted EBITDA increased 11% to $11.6 million
• Year-end cash holdings of $28.8 million

Managed Portfolio

• Strong AUM growth continued throughout 2024, major assets on track for late 2025 delivery
  • 23 additional AUM vs. prior year, primarily driven by rapid ParkX expansion
  • Commercial and Residential portfolio assets in high demand and leased well-above industry average
  • The Row at Reston Station nears delivery of two Trophy office towers, luxury residential tower, Virginia’s first JW Marriott hotel and branded residential condominiums, and mixed-use retail

RESTON, Va.--(BUSINESS WIRE)-- 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 fourth quarter and fiscal year ended December 31, 2024.

“Our fiscal year 2024 results are the latest data point in what is now a seven-year track record of producing positive net earnings and consistent growth in revenue and Adjusted EBITDA,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “Dating back to our transition to the asset-light, debt free business model we now deploy, our top-line CAGR is an industry-defying 25%. We have earned our reputation as a best-in-class provider of real estate services in the Washington, D.C. region, fostering consistent AUM growth that has produced stable revenue streams through our fee-based services. Our streamlined balance sheet and our ability to consistently generate operating cash provides us with significant working capital that will allows us to supplement our growth through additional investment opportunities in 2025 and beyond.”

Key Performance Metrics

($ in thousands, except per share and portfolio data)			Q4 2024			Q4 2023			YTD 2024			YTD 2023
	Revenue		$	16,908		$	11,016		$	51,294		$	44,721
	Net income		$	10,327		$	1,870		$	14,560		$	7,784
	Adjusted EBITDA			3,133			2,165			11,597			10,423
	Net income per share — diluted		$	0.99		$	0.18		$	1.41		$	0.77
	Managed Portfolio - # of assets			72			49			72			49
	Please see the included financial tables for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure.

Mr. Clemente continued, “In a time when companies are returning to work and individuals are seeking quality, convenient places to live, the assets in our managed portfolio continue to deliver. The stabilized commercial and residential properties that anchor the transit-oriented, mixed-use neighborhoods we serve are more than 90% leased. We recently announced a new 87,000 square foot lease with Carfax to relocate their headquarters to Reston Station’s Metro Plaza District. Over the past 3 years, our dedicated team has been working hard to finalize construction and leasing for The Row at Reston Station, the second phase of the five-phase Reston Station development. This premier 1.5 million square foot development will include Virginia’s first and only JW Marriott hotel and branded residential tower, the luxury BLVD Haley residential tower, and two Trophy-class office towers. Supplementing these world-class buildings are premium retail offerings that include a flagship 50,000 square foot VIDA health and wellness facility, the D.C. area’s first Puttshack location that will provide an upscale, tech-themed mini-golf experience with a full bar and restaurant, and Ebbitt House, the first ever expansion of D.C.’s famous Old Ebbitt Grill. A 2,500 space parking garage will easily accommodate all tenants and guests at Northern Virginia’s newest must-visit destination that is set to deliver later this fall.”

Mr. Clemente concluded, “Finally, I would like to sincerely thank every member of the Comstock team, as well as our loyal shareholders, customers, and partners for contributing to our success in 2024. Our primary focus is on delivering exceptional results for our customers and providing exceptional experiences to all those that live, work, and play in the communities that we serve. We are well-positioned and remain committed to delivering value to all stakeholders for many years to come.”

Additional Information

• Stabilized Commercial managed portfolio leased percentage of 93%; 8 new commercial leases executed in Q4, representing 104,000 sqft. of office and retail spaces; 28 new leases executed YTD, representing over 245,000 square feet.
• Residential managed portfolio leased percentage of 96%; average in-place rents increased 4% vs. prior year and more than 600 units leased YTD.
• ParkX-related AUM expansion led to QTD and YTD increases in total revenue of 56% and 69%, respectively, for ParkX Management subsidiary.
• The Row at Reston Station construction progress on track for late 2025 delivery; JW Marriott condominium pre-sales continue to exceed expectations.
• In 2024, managed portfolio assets generated well over $100 million in gross revenue for the asset owners.

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.

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.

COMSTOCK HOLDING COMPANIES, INC. Consolidated Balance Sheets (Unaudited; In thousands)
		December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	28,761			$	18,788
Accounts receivable, net			282				496
Accounts receivable - related parties			7,254				4,749
Prepaid expenses and other current assets			430				353
Total current assets			36,727				24,386
Fixed assets, net			574				478
Intangible assets			144				144
Leasehold improvements, net			60				89
Investments in real estate ventures			6,228				7,077
Operating lease assets			5,916				6,790
Deferred income taxes, net			14,720				10,885
Deferred compensation plan assets			438				53
Other assets			60				37
Total assets		$	64,867			$	49,939
Liabilities and Stockholders' Equity
Current liabilities:
Accrued personnel costs		$	4,952			$	4,681
Accounts payable and accrued liabilities			781				838
Current operating lease liabilities			922				854
Total current liabilities			6,655				6,373
Deferred compensation plan liabilities			492				77
Operating lease liabilities			5,351				6,273
Total liabilities			12,498				12,723
Stockholders' equity:
Class A common stock			97				94
Class B common stock			2				2
Additional paid-in capital			202,702				202,112
Treasury stock			(2,662	)			(2,662	)
Accumulated deficit			(147,770	)			(162,330	)
Total stockholders' equity			52,369				37,216
Total liabilities and stockholders' equity		$	64,867			$	49,939

COMSTOCK HOLDING COMPANIES, INC. Consolidated Statements of Operations (Unaudited; In thousands, except per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Revenue		$	16,908			$	11,016			$	51,294			$	44,721
Operating costs and expenses:
Cost of revenue			11,255				8,479				38,630				33,040
Selling, general, and administrative			487				594				2,075				2,305
Depreciation and amortization			84				—				302				212
Total operating costs and expenses			11,826				9,073				41,007				35,557
Income (loss) from operations			5,082				1,943				10,287				9,164
Other income (expense):
Interest income			196				96				672				96
Gain (loss) on real estate ventures			72				(467	)			(297	)			(1,187	)
Other income (expense), net			7				31				63				79
Income (loss) from operations before income tax			5,357				1,603				10,725				8,152
Provision for (benefit from) income tax			(4,970	)			(267	)			(3,835	)			368
Net income (loss)		$	10,327			$	1,870			$	14,560			$	7,784
Weighted-average common stock outstanding:
Basic			9,895				9,653				9,846				9,629
Diluted			10,418				10,169				10,327				10,108
Net income (loss) per share:
Basic		$	1.04			$	0.19			$	1.48			$	0.81
Diluted		$	0.99			$	0.18			$	1.41			$	0.77

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 December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net income (loss)		$	2,377			$	1,870			$	14,560			$	7,784
Interest income			(169	)			(96	)			(672	)			(96	)
Income taxes			568				(267	)			(3,835	)			368
Depreciation and amortization			77				—				302				212
Stock-based compensation			205				191				945				968
(Gain) loss on real estate ventures			75				467				297				1,187
Adjusted EBITDA		$	3,133			$	2,165			$	11,597			$	10,423

The increases in Adjusted EBITDA for the three months and year ended December 31, 2024 are primarily driven by significant increases in recurring fee-based property and parking management revenue and supplemental asset management fee revenue.

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/20250320691114/en/

Investor Contact

investorrelations@comstock.com

Media Contact

publicrelations@comstock.com

Source: Comstock Holding Companies, Inc.

FAQ

What were Comstock's (CHCI) Q4 2024 financial highlights?

Q4 revenue was $16.9M (+54% YoY), net income reached $10.3M, and Adjusted EBITDA grew 45% to $3.1M, with $7.8M in operating cash generated.

How did CHCI perform in fiscal year 2024?

Revenue increased 15% to $51.3M, net income grew 87% to $14.6M, and Adjusted EBITDA rose 11% to $11.6M, with $28.8M cash at year-end.

What is the occupancy rate of CHCI's managed portfolio in 2024?

Commercial properties were 93% leased, while residential properties achieved 96% occupancy, performing above industry average.

When will The Row at Reston Station development be completed?

The 1.5 million square foot mixed-use development is scheduled for delivery in late 2025.

How many new leases did CHCI secure in Q4 2024?

8 new commercial leases totaling 104,000 sqft in Q4, with 28 leases representing over 245,000 square feet for the full year.