Comstock Reports First Quarter 2023 Results

• 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."

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.

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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