CORRECTED: Comstock Reports Fourth Quarter and Fiscal Year 2024 Results

Rhea-AI Summary

Comstock (CHCI) has released corrected Q4 and fiscal year 2024 results, showing strong growth across key metrics. Q4 revenue reached $16.9 million, up 54% year-over-year, with recurring fee-based revenue increasing 38%. The company reported Q4 net income of $10.3 million and Adjusted EBITDA of $5.4 million, up 148%.

For fiscal year 2024, revenue grew 15% to $51.3 million, with net income increasing 87% to $14.6 million. The company ended the year with $28.8 million in cash. Their managed portfolio showed robust 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. Notable achievements include an 87,000 square foot lease with Carfax and strong pre-sales for JW Marriott condominiums.

Positive

• Q4 revenue up 54% to $16.9 million
• Q4 net income reached $10.3 million with 162% increase in operating income
• Fiscal year net income up 87% to $14.6 million
• Strong cash position with $28.8 million at year-end
• High occupancy rates: 93% commercial and 96% residential
• Secured major tenant Carfax for 87,000 sqft lease

Negative

• None.

Insights

Financial Analyst

Comstock's Q4 and FY2024 results demonstrate exceptional financial performance with revenue growth of 54% for Q4 and 15% for the full year. The correction of Q4 Adjusted EBITDA from $3.1M to $5.4M represents a significant positive revision, with growth of 148% rather than the initially reported 45%.

The company's asset-light, debt-free business model continues to deliver impressive results, evidenced by their seven-year streak of positive earnings and a remarkable 25% top-line CAGR. Perhaps most noteworthy is the composition of their revenue growth, with recurring fee-based revenue increasing 38% in Q4 and 25% for the year, indicating a stable foundation for future performance.

Their strong cash generation capability ($7.8M operating cash in Q4) has built a $28.8M cash position, providing significant flexibility for future investments without leveraging their balance sheet. The 87% increase in full-year net income to $14.6M demonstrates substantial margin expansion as revenue scales.

Comstock's assets under management are delivering strong commercial occupancy (93%) and residential occupancy (96%), both exceeding industry averages. This performance validates their development strategy and location selection while ensuring consistent revenue streams from management fees. The signing of Carfax for an 87,000 sqft headquarters lease represents a significant anchor tenant acquisition that enhances portfolio stability.

Real Estate Development Expert

Comstock's portfolio performance metrics reveal a development strategy that's outperforming in a challenging real estate market. Their transit-oriented, mixed-use approach in the D.C. region has resulted in exceptional leasing activity - 8 new commercial leases in Q4 alone (104,000 sqft) and 28 leases YTD (245,000+ sqft). The 96% occupancy in their residential portfolio with 4% rent growth indicates strong tenant demand and pricing power.

The Row at Reston Station represents a transformative development for Northern Virginia. This 1.5 million square foot project includes several high-value components: Virginia's first JW Marriott hotel with branded residences, luxury residential towers, Trophy-class office space, and premium retail including VIDA health club, Puttshack, and the first-ever expansion of the iconic Old Ebbitt Grill. The reported strong pre-sales of the JW Marriott condominiums suggests solid market validation.

Their ParkX expansion has been particularly impressive, driving 56% revenue growth in Q4 and 69% for the year in that business segment. This diversification beyond traditional office and residential assets demonstrates management's ability to identify and execute on emerging opportunities within their core competency.

Perhaps most telling is that Comstock's managed portfolio generated "well over $100 million" in gross revenue for asset owners in 2024, highlighting the real economic value of their development and management expertise. With The Row on track for late 2025 delivery, Comstock has visibility into significant AUM growth that should drive fee revenue expansion into 2026.

 

RESTON, Va.--(BUSINESS WIRE)-- Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or the “Company”) has issued this press release to correct an error in its reporting of Q4 2024 Adjusted EBITDA when announcing its financial results for the fourth quarter and fiscal year ended December 31, 2024 earlier today.

The Company inadvertently understated Q4 2024 Adjusted EBITDA by originally reporting a result of $3.1 million in the Key Performance Metrics table and associated non-GAAP financial measures reconciliation table. The Company’s actual Q4 2024 Adjusted EBITDA was $5.4 million and Adjusted EBITDA growth presented in the third bullet of the Q4 2024 summary results consequently should have been 148%, not 45%. The corrected press release follows:

Comstock Reports Fourth Quarter and Fiscal Year 2024 Results
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 148% to $5.4 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

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		5,377			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)	$	10,327			$	1,870			$	14,560			$	7,784
Interest income		(196	)			(96	)			(672	)			(96	)
Income taxes		(4,970	)			(267	)			(3,835	)			368
Depreciation and amortization		84				—				302				212
Stock-based compensation		204				191				945				968
(Gain) loss on real estate ventures		(72	)			467				297				1,187
Adjusted EBITDA	$	5,377			$	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 was Comstock's (CHCI) Q4 2024 revenue and growth rate?

CHCI reported Q4 2024 revenue of $16.9 million, up 54% compared to the previous year, with recurring fee-based revenue increasing 38%.

How much net income did CHCI generate in fiscal year 2024?

Comstock generated $14.6 million in net income for fiscal year 2024, representing an 87% increase from the previous year.

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

Comstock's managed portfolio shows 93% occupancy for commercial properties and 96% for residential properties.

When is The Row at Reston Station expected to be completed?

The Row at Reston Station development is on track for delivery in late 2025.

What major tenants has CHCI secured for Reston Station?

Carfax has signed an 87,000 square foot lease to relocate their headquarters to Reston Station's Metro Plaza District.