Comstock Reports Fourth Quarter and Fiscal Year 2023 Results

Q4 2023

• Q4 revenue increased 18% to $11.0 million, including 12% increase in recurring fee-based revenue

• Q4 operating income increased 22% to $1.9 million; Q4 net income increased 43% to $1.9 million

• Q4 Adjusted EBITDA increased 17% to $2.2 million

Fiscal Year 2023

• YTD revenue increased 14% to $44.7 million, including 13% increase in recurring fee-based revenue

• YTD operating income increased 15% to $9.2 million; YTD net income of $7.8 million flat vs. prior year

• YTD Adjusted EBITDA of $10.4 million, up 16% vs. prior year

• Generated $9.0 million of cash flow from operations

• Maintained well above-average leased percentages in both Commercial and Residential portfolios (90+%)

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 fourth quarter and fiscal year ended December 31, 2023.

"Our fiscal 2023 results underscore the strength and resiliency of the growth engine we've built at Comstock," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "It is our goal to provide best-in-class service to our clients and deliver value to our stakeholders. Our success in achieving that goal is evidenced by our ability to deliver higher comparative quarterly revenue for the 14th consecutive period, showcase 16% growth in Adjusted EBITDA, and generate over $9 million in cash from operations during 2023. With a streamlined, debt-free balance sheet and additional world-class properties slated for delivery in the next 12 to 24 months, we have clear visibility to near-term growth. Our robust pipeline of development assets continues to expand as well, positioning us for sustainable, long-term success."

Key Performance Metrics¹

Additional Highlights

• Managed commercial portfolio leased percentage of 92%, up from 87% in FY22; produced in-place rent growth of 2% vs. prior year and leased a total of approximately 273,000 sqft. of commercial space in FY23.

• Managed residential portfolio leased percentage of 97%, up from 88% in 2022; produced in-place rent growth of 8% vs. prior year and leased over 700 units in FY23.

• Recognized $4.8 million incentive fee revenue, a 23% increase from FY22.

• Completed strategic acquisition of Comstock 41 investment property in Q423.

• Continued exponential growth of parking management portfolio, including a 50% increase in top-line revenue and 20% growth in average contract value vs. prior year.

• Welcomed Thomas Holly and David Paul to Board of Directors. 

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.

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.

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