Revenue increased 6% to $9.0 million, representing 12th consecutive quarter of YoY growth

YTD revenue increased 12% to $19.2 million, including 25% growth in recurring fee-based revenue streams

Net income of $0.5 million; $1.2 million YTD

Generated over $1.0 million of Adjusted EBITDA; $2.7 million YTD

Commercial portfolio remains over 90% leased; in-place rent growth of 6% vs. prior year

Residential portfolio now over 95% 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 second quarter ended June 30, 2023.

"We continue to benefit from the flight-to-quality trend, which in recent years has significantly increased demand for mixed-use and transit-oriented developments in premier suburban locations and contributed to our top-line revenue growth," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "As evidenced by our ability to attract and retain tenants in a challenging environment faced with widespread capital market headwinds, we are well positioned for ongoing success. I am confident our growth will persist well into the future, primarily based on three key factors: our virtually debt-free, asset-light, fee-based business model, the proven demand for the high-quality assets we manage, develop, and operate, and the tireless dedication of our team members, who show up every day and are committed to delivering extraordinary services and experiences for our customers."

Key Performance Metrics¹
($ in thousands, except per share and portfolio data)		Q2 2023		Q2 2022			YTD 2023		YTD 2022
	Revenue	$	8,967	$	8,467		$	19,242	$	17,198

	Income from operations	$	643	$	1,117		$	1,964	$	2,482
	Net income		475		714			1,229		2,728	³

	Adjusted EBITDA	$	1,027	$	1,388		$	2,653	$	2,994

	Net income per share — diluted	$	0.05	$	0.30	²	$	0.12	$	0.53	^{2, 3}

	Managed Portfolio - # of assets		45		36			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 $2.0 million positive impact of Q2 2022 Series C Preferred Stock redemption

³	Amounts reflect impact of $0.5 million non-cash tax benefit stemming from partial release of deferred tax valuation allowance

Q2 2023 Highlights

Welcomed Seerist, Inc. to Reston Station's Commerce District, the fifth new lease signed to Reston Station in 2023.
Increased leased percentage of managed commercial portfolio to 91%, up from 85% in Q2 2022.
Increased leased percentage of managed residential portfolio to 97%, up from 89% in Q2 2022.
Significant construction progress on Reston Row development (Phase II of Reston Station), while advancing plans for multiple properties in the development pipeline to prepare them for commencement in 2024.

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)

	June 30,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	9,031		$	11,722
Accounts receivable, net		499			504
Accounts receivable - related parties		4,984			3,291
Prepaid expenses and other current assets		532			264
Total current assets		15,046			15,781
Fixed assets, net		471			421
Intangible assets		144			144
Leasehold improvements, net		104			119
Investments in real estate ventures		6,234			7,013
Operating lease assets		7,212			7,625
Deferred income taxes, net		11,052			11,355
Other assets		43			15
Total assets	$	40,306		$	42,473

Liabilities and Stockholders' Equity
Current liabilities:
Accrued personnel costs		1,739			4,959
Accounts payable and accrued liabilities		840			742
Current operating lease liabilities		822			791
Total current liabilities		3,401			6,492
Operating lease liabilities		6,707			7,127
Total liabilities		10,108			13,619

Stockholders' equity:
Class A common stock		94			93
Class B common stock		2			2
Additional paid-in capital		201,649			201,535
Treasury stock		(2,662	)		(2,662	)
Accumulated deficit		(168,885	)		(170,114	)
Total stockholders' equity		30,198			28,854
Total liabilities and stockholders' equity	$	40,306		$	42,473

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	8,967		$	8,467		$	19,242		$	17,198
Operating costs and expenses:
Cost of revenue		7,681			6,831			16,004			13,766
Selling, general, and administrative		572			469			1,136			856
Depreciation and amortization		71			50			138			94
Total operating costs and expenses		8,324			7,350			17,278			14,716
Income (loss) from operations		643			1,117			1,964			2,482
Other income (expense):
Interest expense		—			(69	)		—			(128	)
Gain (loss) on real estate ventures		(68	)		17			(479	)		269
Income (loss) from continuing operations before income tax		622			1,066			1,532			2,624
Provision for (benefit from) income tax		147			352			303			(104	)
Net income (loss) from continuing operations		475			714			1,229			2,728
Net income (loss) from discontinued operations, net of tax		—			(10	)		—			(277	)
Net income (loss)		475			704		$	1,229		$	2,451
Impact of Series C preferred stock redemption		—			2,046			—			2,046
Net income (loss) attributable to common stockholders	$	475		$	2,750		$	1,229		$	4,497

Weighted-average common stock outstanding:
Basic		9,632			8,599			9,608			8,470
Diluted		10,052			9,157			10,060			9,033

Net income (loss) per share:
Basic - Continuing operations	$	0.05		$	0.32		$	0.13		$	0.56
Basic - Discontinued operations		—			—			—			(0.03	)
Basic net income (loss) per share	$	0.05		$	0.32		$	0.13		$	0.53

Diluted - Continuing operations	$	0.05		$	0.30		$	0.12		$	0.53
Diluted - Discontinued operations		—			—			—			(0.03	)
Diluted net income (loss) per share	$	0.05		$	0.30		$	0.12		$	0.50

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 June 30,					Six Months Ended June 30,
	2023		2022			2023		2022
Net income (loss) from continuing operations	$	475	$	714		$	1,229	$	2,728
Interest expense		—		69			—		128
Income taxes		147		352			303		(104	)
Depreciation and amortization		71		50			138		94
Stock-based compensation		266		220			504		417
(Gain) loss on equity method investments		68		(17	)		479		(269	)
Adjusted EBITDA	$	1,027	$	1,388		$	2,653	$	2,994

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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Comstock Reports Second Quarter 2023 Results