Significant managed portfolio expansion continues recent growth trajectory

Revenue increased 4% to $10.6 million; 15^thconsecutive period of year-over-year growth
- 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, an increase of 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 of 7% vs. prior year

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, 2024.

"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 Hartford in Arlington's vibrant Clarendon neighborhood. Finally, we reached a significant milestone this quarter with the initial delivery of managed assets from The Row at Reston Station, the $1.3 billion development that will drive our next significant growth phase. I am pleased with our first quarter progress and look forward to adding to our success story throughout the remainder of 2024."

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%, up 3% 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 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.

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 $0.1 million decrease in Adjusted EBITDA is primarily driven by higher supplemental revenue from leasing finders' fees in 2023, partially offset by an increase in recurring fee-based property management revenue in the current period.

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/