Company Overview - Comstock manages \$1.6 billion in Real Estate AUM[9] - The company manages 45 properties[9] - Comstock has 2 million square feet of commercial space[9] - The company has 5.8 million square feet of additional entitled space[9] - Comstock has approximately 1,700 multifamily units[9] - The company's FY 2022 Revenue was \$39.3 million[9] - At full build-out, the company will have approximately 10 million square feet of space[9] - At full build-out, the company's Real Estate AUM is expected to be over \$5 billion[9] Financial Highlights - Comstock's 2022 Adjusted EBITDA Multiple is 4.6x, compared to peers at 9.2x[17] - The company has a \$132 million tax asset[17] - The company's Return on Equity (ROE) for FY 2022 is 27%, compared to peers at 7%[17] - Adjusted EBITDA grew at a CAGR of 41% from 2019-2022, while peers experienced a -4% CAGR[17] - Total Adjusted EBITDA for 2020 was \$3.4 million, increasing to \$5.8 million in 2021 and \$9.0 million in 2022[19] Portfolio Performance - Managed asset revenue increased by 86% from \$52 million in 2020 to \$97 million in 2022[25] - Net Operating Income (NOI) increased by 127% from \$22 million in 2020 to \$49 million in 2022[25] - Multifamily units increased by 46% from 1,123 in 2020 to 1,638 in 2022[25] - Multifamily leased percentage increased by 23% from 73% in 2020 to 90% in 2022[25] - Commercial square footage increased by 9% from 1.8 million in 2020 to 2.0 million in 2022[25] - Commercial leased percentage increased by 10% from 79% in 2020 to 87% in 2022[25] - Parking spaces increased by 70% from 8,336 in 2020 to 14,193 in 2022[25]

Core Insights - Comstock Holding Companies, Inc. (CHCI) shares have decreased by 17.4% since the earnings report for Q1 2025, contrasting with a 4.1% increase in the S&P 500 index during the same period [1] - The company reported earnings per share of 15 cents, up from 9 cents year-over-year, with revenues of $12.6 million, a 19% increase from $10.6 million in the prior-year quarter [2] - Net income rose by 75% to $1.6 million compared to $0.9 million in the previous year, while adjusted EBITDA grew by 38% to $2.1 million [3] Financial Performance - Comstock's managed portfolio increased to 76 assets from 65 a year ago, with a 93% leased rate in commercial properties and a 96% leased rate in residential properties [4] - ParkX, the parking management subsidiary, achieved a 56% revenue increase, significantly contributing to the overall financial performance [5] - The company maintained stable operating costs, with selling, general, and administrative expenses flat at $0.5 million compared to the previous year [7] Strategic Outlook - The CEO emphasized that Q1 results align with long-term strategic goals, marking the 25th consecutive quarter of revenue growth [6] - Strong leasing momentum was noted, with new tenants and high occupancy rates in premium residential properties [6] - Expansion efforts are focused on the construction of The Row at Reston Station, which is expected to be a transformative project for the company [8]

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________________________ FORM 10-Q __________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Reston, Virginia 20190 (703) 230 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 12, 2025 Comstock Holding Companies, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Delaware 1-32375 20-1164345 Identification No.) 1900 Reston Metro Plaza, 10 Floor Reston, Virginia 20190 (Ad ...

Core Insights - Comstock Holding Companies, Inc. (CHCI) shares have increased by 47.9% since the earnings report for Q4 2024, significantly outperforming the S&P 500's 1.9% growth during the same period [1] - The company reported a substantial rise in earnings per share to 99 cents, up from 18 cents year-over-year, with revenues increasing by 54% to $16.9 million [2] - Net income surged to $10.3 million, a significant increase from $1.9 million a year ago, driven by a 162% rise in operating income [2] Financial Performance - Comstock's managed portfolio expanded to 72 assets from 49 in the previous year, with ParkX Management contributing a 56% revenue increase for the quarter and 69% for the full year [3] - The company generated $7.8 million in operating cash flow during the quarter and ended the year with $28.8 million in cash, up from $18.8 million the previous year [3] - Leasing metrics showed strong performance, with stabilized commercial properties achieving a 93% lease rate and the residential portfolio at 96% leased [4] Management Commentary - The CEO emphasized a consistent financial performance since adopting an asset-light, debt-free model, with a compound annual growth rate of 25% in top-line revenues [5] - The company is well-positioned for future growth, supported by strong recurring fee-based revenue streams and a healthy balance sheet [5][6] Revenue Drivers - Year-over-year growth was primarily driven by increases in recurring fee-based property and parking management revenues, alongside supplemental asset management fee revenues [7] - Operating costs rose at a slower pace than revenues, with the cost of revenue increasing by 33% to $11.3 million and total operating expenses rising by 30% to $11.8 million [7] Non-Operating Factors - Interest income increased to $0.2 million from $0.1 million in the prior-year quarter, and a tax benefit of $5 million in Q4 significantly boosted net income [8] Full-Year Overview - For the full year 2024, revenues increased by 15% to $51.3 million, while net income surged by 87% to $14.6 million, with earnings per share improving to $1.41 from 77 cents in 2023 [9] Development Projects - Comstock is making progress on The Row at Reston Station, a major development project that includes luxury residential and commercial spaces, with pre-sales for the JW Marriott-branded condos exceeding expectations [10]

Revenue Performance - Revenue for 2024 reached $51.3 million, a 14.7% increase from $44.7 million in 2023[104] - Revenue for 2024 increased to $51.294 million, up 14% from $44.721 million in 2023[153] - Total revenue for the year ended December 31, 2024, was $51.3 million, an increase of 14.4% from $44.7 million in 2023[240] - Revenue from asset management increased to $31.5 million in 2024, up from $29.3 million in 2023, representing a growth of 7.4%[240] - Revenue from Incentive Fees decreased to $1.5 million in 2024 from $4.8 million in 2023, reflecting a significant decline[131] - The Company recognized incentive fee revenue of $1.5 million in 2024, a significant decrease from $4.8 million in 2023[242] Income and Profitability - Net income for 2024 was $14.6 million, compared to $7.8 million in 2023, reflecting a significant increase[104] - Net income for 2024 was $14,560,000, compared to $7,784,000 in 2023, representing an increase of 87%[153] - Basic net income per share rose to $1.48 in 2024 from $0.81 in 2023, a growth of 82%[153] - Diluted net income per share rose to $1.41 in 2024 from $0.77 in 2023, reflecting an increase of 83.1%[248] - The effective tax rate for 2024 was -35.76%, primarily due to a valuation allowance release of $6.5 million, compared to 4.51% in 2023[243] Operating Costs and Expenses - Total operating costs and expenses increased by 15.3% to $41.0 million in 2024, up from $35.6 million in 2023[106] - Operating costs and expenses for 2024 totaled $41.007 million, an increase of 15% from $35.557 million in 2023[153] - Asset management and corporate operating expenses increased to $23.8 million in 2024 from $21.6 million in 2023[275] - ParkX operating expenses rose significantly to $7.1 million in 2024, compared to $4.2 million in 2023, marking an increase of approximately 69.0%[275] - Stock compensation expenses slightly decreased to $0.9 million in 2024 from $1.0 million in 2023[275] Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were $28.8 million, with an additional $10.0 million available from the Credit Facility[119] - Cash and cash equivalents at the end of 2024 were $28.761 million, an increase of 53% from $18.788 million at the end of 2023[159] - Net cash provided by operating activities increased to $10,675,000 in 2024 from $9,003,000 in 2023, a change of $1,672,000[121] Assets and Investments - Total assets increased to $64.867 million in 2024, up from $49.939 million in 2023, reflecting a growth of 30%[151] - The Company had $111.1 million of net operating loss carryforwards as of December 31, 2024[109] - The Company’s investments in real estate ventures decreased from $7,077,000 in 2023 to $6,228,000 in 2024, reflecting a change in fair value of $(320,000)[212] - Revenue from unconsolidated investments in real estate ventures increased from $24,877,000 in 2023 to $28,115,000 in 2024, representing a growth of approximately 9.0%[217] Tax and Valuation - The company recorded a $3.8 million income tax benefit in 2024, compared to a provision of $0.4 million in 2023, resulting in a net change of $4.2 million[109] - The company released $6.5 million of the valuation allowance for deferred tax assets, indicating management's confidence in future taxable income[145] - The Company had total deferred tax assets of $16.3 million as of December 31, 2024, after accounting for a valuation allowance of $17.1 million[245] Management and Agreements - The Company operates as a single reportable operating segment, primarily generating revenue from real estate services through asset and property management contracts[274] - The Company entered into a Business Management Agreement with Springfield Holdings, LLC, effective February 1, 2024, for management services[264] - CAM is entitled to an annual payment of at least $1.0 million under the 2022 asset management agreement[252] - The 2022 asset management agreement will terminate on January 1, 2035, with automatic one-year renewals unless a non-renewal notice is given[255] Other Financial Metrics - Adjusted EBITDA for 2024 was $11,597,000, an increase from $10,423,000 in 2023, driven by significant increases in recurring fee-based property and parking management revenue[115][116] - Total stockholders' equity increased to $52.369 million in 2024, compared to $37.216 million in 2023, marking a rise of 41%[151] - The Company recorded a gain of $672,000 in interest income for 2024, significantly up from $96,000 in 2023[153] - The increase in interest income was $576,000 in 2024, totaling $672,000 compared to $96,000 in 2023, marking a 600.0% increase[108]

Company Overview - Comstock Holding Companies, Inc. reported earnings for the quarter and fiscal year ended December 31, 2024, in a press release dated March 21, 2025[5]. - The company is listed on the Nasdaq Capital Market under the trading symbol CHCI[4]. - Christopher Clemente serves as the Chairman and Chief Executive Officer of Comstock Holding Companies, Inc.[11]. Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, indicating compliance with regulatory requirements[6]. - The press release is attached as Exhibit 99.1, providing detailed financial information[7].

Group 1: Legislative Process - The Tysons casino bill, Senate Bill 982, has faced criticism from Northern Virginia lawmakers for lacking local support and state gaming oversight [2][6] - The bill was re-referred to the Virginia House of Delegates' appropriations committee at the request of Speaker Don Scott [3][4] - The Virginia Senate approved SB 982 with a vote of 24 to 16, and it is scheduled for discussion in the General Laws Committee [3][4] Group 2: Local Opposition - Delegate David Bulova expressed long-standing opposition to casinos in Virginia, emphasizing the importance of local buy-in for such developments [6][7] - Delegate Paul Krizek also plans to vote against SB982, highlighting the need for better regulation of gaming in Virginia [7][9] - Krizek introduced a failed bill to establish the Virginia Gaming Commission to regulate gaming across the state [8] Group 3: Project Details - Comstock Holding Companies has invested over $1.5 million since 2023 to support the legislation for a casino in Tysons [5] - The proposed project includes a 4 million-square-foot entertainment district featuring a casino, hotel, convention center, and other amenities [6]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $12.995 million, a decrease of 10.2% compared to $14.463 million in the same period of 2023[99]. - Total revenue for the nine months ended September 30, 2024, was $34.386 million, a 2.0% increase from $33.705 million in 2023[105]. Asset Management - Asset management revenue decreased by $3.226 million, or 30.4%, from $10.606 million in 2023 to $7.380 million in 2024[100]. - Asset management revenue decreased by $2.876 million, or 12.8%, while property management revenue increased by $970,000, or 12.5%[105]. Property Management - Property management revenue increased by $648,000, or 24.9%, from $2.605 million in 2023 to $3.253 million in 2024[100]. Parking Management - Parking management revenue saw a significant increase of $1.110 million, or 88.7%, from $1.252 million in 2023 to $2.362 million in 2024[100]. Operating Costs and Expenses - Total operating costs and expenses increased by 10.4% in 2024, totaling $10.167 million compared to $9.206 million in 2023[102]. - Cost of revenue rose by $1.026 million, or 12.0%, from $8.557 million in 2023 to $9.583 million in 2024[102]. - Operating costs and expenses rose by 10.2% to $29.181 million, primarily due to a $1.7 million increase in personnel expenses[107]. Net Income and Cash Flow - The net income for the nine months ended September 30, 2024, was $4.233 million, compared to $5.914 million in the same period of 2023[99]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $2.905 million, compared to a net cash used of $362,000 in 2023[120]. - The company experienced a $3.3 million increase in net operating cash activity, primarily due to improved accounts receivable collections[121]. Other Income and Tax - Other income increased by $0.8 million, driven by a $0.5 million rise in interest income and a $0.4 million improvement in real estate ventures[108]. - Provision for income tax was $1.1 million in 2024, up from $0.6 million in 2023, reflecting a higher estimated tax rate[109]. Portfolio and Development - The managed portfolio includes 72 assets as of September 30, 2024, with a total size of approximately 4.1 million square feet[90]. - The development pipeline consists of 5 commercial assets totaling approximately 1.5 million square feet and 6 residential assets with 2,599 units, representing approximately 2.8 million square feet[92]. - The company aims to expand its managed portfolio and grow revenue while maximizing shareholder value in the greater Washington, D.C. area[97]. - The company plans to continue focusing on expanding its managed portfolio in property and parking management to drive future revenue growth[106]. Adjusted EBITDA - Adjusted EBITDA for the nine months ended September 30, 2024, was $6.220 million, down from $8.258 million in 2023[119]. Cash and Credit Facilities - Cash and cash equivalents as of September 30, 2024, were $21.1 million, with an additional $10.0 million available from credit facilities[116].

Financial Results - Comstock Holding Companies, Inc. reported earnings for the quarter ended September 30, 2024[3]. - The press release was issued on November 7, 2024, detailing the financial results[3]. - The report is not deemed "filed" under the Securities Exchange Act of 1934[4]. Company Information - The company is registered under the Nasdaq Capital Market with the trading symbol CHCI[1]. - The company has not elected to use the extended transition period for new financial accounting standards[2]. - Christopher Clemente serves as the Chairman and Chief Executive Officer of Comstock Holding Companies, Inc.[6].