Revenue increased 18% to $10.3 million vs. $8.7 million in Q1 2022; driven by 9% growth in asset management and 37% growth in three property management subsidiaries combined
Non-cash impacts of prior year tax benefit and investment valuation decline resulted in net income of $0.7 million vs. $2.0 million in Q1 2022
Adjusted EBITDA of $1.6 million represents slight increase vs. Q1 2022
Strong demand across portfolio of residential assets increased leased percentage to 93% as of Q1 2023, up from 84% in Q1 2022 and driven in part by successful lease up of BLVD Ansel, which was acquired in March 2022 and is now 91% leased
Commercial portfolio assets remained in demand with a 90% leased percentage, up from 82% in Q1 2022 and driven by 366k square feet of office and retail leasing in FY 2022 and approximately 100k square feet in Q1 2023

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, 2023. The Company has also posted an updated Investor Presentation on its IR website, ir.comstockcompanies.com.

"Once again, Comstock's results for the first quarter demonstrate the resiliency of our asset-light and virtually debt-free business model, while the quality of our mixed-use and transit-oriented portfolio of managed assets continues to deliver revenue and Adjusted EBITDA growth. Our Q1 comparative increase in top line revenue included significant increases in critical fee-based, recurring revenue streams that provide us with visibility to the future growth potential of our business," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "I believe much of our success throughout the pandemic and going forward is because we show up every day, driven by our primary goal of producing value for our shareholders. I thank our dedicated team members and look forward to reporting on our continued progress in upcoming periods."

Key Performance Metrics¹
($ in thousands, except per share and portfolio data)		Q1 2023		Q1 2022
	Revenue	$	10,275	$	8,731

	Income from operations	$	1,321	$	1,365
	Net income		754		2,014	²

	Adjusted EBITDA	$	1,626	$	1,606

	Net income per share — diluted	$	0.07	$	0.22	²

	Managed Portfolio - # of assets		45		36

¹	All amounts represent continuing operations. Please see the included financial tables for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure

²	Amounts reflect impact of $0.5 million non-cash tax benefit stemming from partial release of deferred tax valuation allowance

Q1 2023 Highlights

Executed approximately 100,000 square feet of new commercial leases including a long-term lease agreement with Ebbitt House, the first ever expansion of the iconic Old Ebbitt Grill brand, bringing one of the top grossing restaurants in the nation to Reston Station.
Managed commercial portfolio 90% leased, up from 82% in Q1 2022.
Managed residential portfolio 93% leased, up from 84% in Q1 2022 and aided by the rapid lease up pace of BLVD Ansel, which has grown its lease percentage from 20% in Q1 2022 up to 91%; while residential portfolio in-place rents also increased 8% vs. the prior year.
Continued growth of our wholly owned subsidiary ParkX Management LC, one of the fastest growing managers of commercial parking garage assets in the Washington, D.C. region.

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 comprising approximately 10 million square feet at full build-out that includes stabilized and development assets strategically located at key Metro stations, Comstock is at the forefront of the urban transformation taking place in the fastest growing segments of 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. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements. Additional information concerning important risk factors and uncertainties can be found under the heading "Risk Factors" in our latest Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. 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,
		2023			2022
Assets
Current assets:
Cash and cash equivalents	$	9,059		$	11,722
Accounts receivable, net		574			504
Accounts receivable - related parties		3,494			3,291
Prepaid expenses and other current assets		456			264
Total current assets		13,583			15,781
Fixed assets, net		466			421
Intangible assets		144			144
Leasehold improvements, net		111			119
Investments in real estate ventures		6,313			7,013
Operating lease assets		7,420			7,625
Deferred income taxes, net		11,198			11,355
Other assets		3			15
Total assets	$	39,238		$	42,473

Liabilities and Stockholders' Equity
Current liabilities:
Accrued personnel costs		994			4,959
Accounts payable and accrued liabilities		967			742
Current operating lease liabilities		806			791
Total current liabilities		2,767			6,492
Operating lease liabilities		6,918			7,127
Total liabilities		9,685			13,619

Stockholders' equity:
Class A common stock		94			93
Class B common stock		2			2
Additional paid-in capital		201,479			201,535
Treasury stock		(2,662	)		(2,662	)
Accumulated deficit		(169,360	)		(170,114	)
Total stockholders' equity		29,553			28,854
Total liabilities and stockholders' equity	$	39,238		$	42,473

COMSTOCK HOLDING COMPANIES, INC. Consolidated Statements of Operations (Unaudited; In thousands, except per share data)

	Three Months Ended March 31,
		2023			2022
Revenue	$	10,275		$	8,731
Operating costs and expenses:
Cost of revenue		8,323			6,935
Selling, general, and administrative		564			387
Depreciation and amortization		67			44
Total operating costs and expenses		8,954			7,366
Income (loss) from operations		1,321			1,365
Other income (expense):
Interest expense		—			(59	)
Gain (loss) on real estate ventures		(411	)		252
Income (loss) from continuing operations before income tax		910			1,558
Provision for (benefit from) income tax		156			(456	)
Net income (loss) from continuing operations		754			2,014
Net income (loss) from discontinued operations, net of tax		—			(267	)
Net income (loss)	$	754		$	1,747

Weighted-average common stock outstanding:
Basic		9,583			8,340
Diluted		10,069			8,974

Net income (loss) per share:
Basic - Continuing operations	$	0.08		$	0.24
Basic - Discontinued operations		—			(0.03	)
Basic net income (loss) per share	$	0.08		$	0.21

Diluted - Continuing operations	$	0.07		$	0.22
Diluted - Discontinued operations		—			(0.03	)
Diluted net income (loss) per share	$	0.07		$	0.19

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,
	2023		2022
Net income (loss) from continuing operations	$	754	$	2,014
Interest expense		—		59
Income taxes		156		(456	)
Depreciation and amortization		67		44
Stock-based compensation		238		197
(Gain) loss on equity method investments		411		(252	)
Adjusted EBITDA	$	1,626	$	1,606

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.

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.

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