Comstock(US:CHCI)2025-11-13 14:25Financial Performance - For the three months ended September 30, 2025, revenue increased to $13.3 million, up from $13.0 million in the same period of 2024, representing a growth of 2.5%[111] - The net income for the nine months ended September 30, 2025, was $3.6 million, compared to $4.2 million for the same period in 2024, reflecting a decrease of 15.5%[111] - Total revenue for Q3 2025 increased by 2.5% to $13,317,000 compared to $12,995,000 in Q3 2024, driven by a 29.6% increase in recurring, fee-based property management services revenue[112] - For the nine months ended September 30, 2025, total revenue increased by 13.2% to $38,928,000, with ParkX management revenue rising by 58.8% to $9,624,000[117] - Adjusted EBITDA for Q3 2025 decreased to $1,066,000 from $3,133,000 in Q3 2024, primarily due to lower net income from increased operating costs[126] Operating Costs - The company’s operating costs for the three months ended September 30, 2025, were $12.7 million, compared to $10.2 million in the same period of 2024, an increase of 24.6%[111] - Operating costs and expenses rose by 24.5% to $12,656,000 in Q3 2025, primarily due to a $1.7 million increase in personnel-related expenses for 139 new ParkX employees[114] - Total operating costs and expenses for the nine months ended September 30, 2025, increased by 19.1% to $34,747,000, largely due to a $4.4 million rise in personnel expenses[118] Assets and Portfolio - The managed portfolio includes 91 assets, with a total of 2.3 million square feet of commercial space at 82% leased and 2.0 million square feet of residential space at 96% leased[102] - The Anchor Portfolio generated over $100 million in gross revenue for property owners over the fiscal year 2024[101] - The company has a development pipeline that includes 5 commercial assets totaling approximately 1.5 million square feet and 5 residential assets with over 2,300 units, representing approximately 2.5 million square feet[102] - The company has entered into a definitive purchase agreement for Comstock 41, contingent upon successful rezoning for an affordable housing project[107] Business Model and Strategy - The company operates under long-term asset management agreements, providing visibility to future revenue and earnings growth while maintaining a debt-free business model[109] - The company aims to expand its managed portfolio and grow revenue through strategic investments and complementary acquisitions[97] - The company’s asset-light business model mitigates risks typically associated with real estate development and operation, allowing for flexibility in exploring growth opportunities[96] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2025, were $26.2 million, with an additional $10.0 million available from the Credit Facility[128] - Net cash used in operating activities for the nine months ended September 30, 2025, was $(460,000), a decrease of $3,365,000 compared to the prior year[130] - A $1.0 million refundable deposit was made on a potential multifamily property acquisition, contributing to a $1.5 million decrease in net cash provided by investing activities[132] Other Income and Tax - Other income increased significantly by 182.1% to $330,000 in Q3 2025, driven by a $110,000 gain on real estate ventures compared to a loss of $75,000 in Q3 2024[115] - Provision for income tax decreased to $0.5 million in Q3 2025 from $0.6 million in Q3 2024, reflecting a $0.4 million tax benefit from lower taxable income[116]