Greenleaf Capital Enters into Agreement to Sell Parcel for $13.4 Million Gain

Rhea-AI Summary

HCI Group, Inc. (NYSE:HCI) has announced the sale of 1.5 acres of right-of-way related to a road improvement project, expected to generate net proceeds of approximately $14.5 million, significantly surpassing the net book value of $1.1 million. The transaction is anticipated to close by the end of the third quarter of 2022. Following the sale, Greenleaf Capital will retain an office building on six acres and plans to lease it at higher rates than the current rent. CEO Paresh Patel stated this sale underscores the value embedded in the company's real estate assets.

Positive

• Net proceeds of $14.5 million from the sale compared to a book value of $1.1 million, indicating a strong return on investment.
• Plans to re-lease retained office building at a significant rent premium, potentially increasing revenue.

Negative

• None.

TAMPA, Fla., May 11, 2022 (GLOBE NEWSWIRE) -- Greenleaf Capital, LLC, the real estate division of HCI Group, Inc. (NYSE:HCI), has entered into an agreement to sell one and a half acres of right-of-way in connection with a planned road improvement project. After transaction costs, Greenleaf expects to receive net proceeds of approximately $14.5 million compared with a net book value of $1.1 million. Following the sale, Greenleaf will retain an office building on six acres of land and expects to re-lease the property to a new tenant at a significant premium to existing rent. The sale is scheduled to close by the end of third quarter 2022.

Management Commentary
“This sale highlights the embedded value in our real estate portfolio,” said HCI Group Chief Executive Officer Paresh Patel.

About Greenleaf Capital
Greenleaf Capital, LLC is the real estate division of HCI Group, Inc. Greenleaf owns and manages numerous Florida real estate properties, including office buildings, retail shopping centers and waterfront properties representing over 500,000 square feet of space and 60 acres of land. For more information, please visit www.gleafcapital.com.

About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company that is expanding nationwide to provide homeowners and flood insurance. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
HCI@gatewayir.com

FAQ

What is the significance of HCI Group's recent real estate sale?

HCI Group's sale is expected to generate net proceeds of approximately $14.5 million, showcasing the strong value of its real estate assets.

When will HCI Group's real estate sale close?

The sale is scheduled to close by the end of the third quarter of 2022.

What are the expected financial impacts of HCI Group's sale?

The sale is expected to yield a net profit significantly higher than the book value, which could positively impact overall financial performance.

How does HCI Group plan to utilize the proceeds from the sale?

HCI Group plans to re-lease the retained office building at a significant premium to existing rent, potentially boosting future revenue.