Comstock(CHCI) - 2024 Q3 - Quarterly Report

Revenue Performance - Revenue for the three months ended September 30, 2024, was $12.995 million, a decrease of 10.2$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$33.705 million in 2023[105]. Asset Management - Asset management revenue decreased by $3.226 million, or 30.4$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$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$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$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].