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Comstock (CHCI) Q2 Earnings Up Y/Y, Revenues Aided by Fee Growth
CHCIComstock(CHCI) ZACKS·2024-08-09 18:16

Core Insights - Comstock Holding Companies, Inc. (CHCI) reported a significant increase in revenues and net income for Q2 2024, with net income per share rising to 9 cents from 5 cents year-over-year and revenue increasing by 20% to 10.8million,markingthe16thconsecutivequarterofrevenuegrowth[1][2]FinancialPerformance−Thecompany′snetincomeforthequarterwas10.8 million, marking the 16th consecutive quarter of revenue growth [1][2] Financial Performance - The company's net income for the quarter was 1 million, nearly doubling from 0.5millioninthesamequarterlastyear[3]−Revenuegrowthwasprimarilydrivenbya1030.5 million in the same quarter last year [3] - Revenue growth was primarily driven by a 103% increase in fee-based Property & Parking Management revenues, supported by the addition of 24 new assets under management [3] - Operating costs rose by 14% to 9.5 million, influenced by the expanded portfolio and increased SG&A expenses, while adjusted EBITDA grew by 56% to 1.6million[4]BusinessModelandStrategy−Comstock′sasset−lightanddebt−freebusinessmodelhasconsistentlydeliveredpositiveresults,withfee−basedmanagementrevenuesprovidingastableincomesource[2]−Theexpansionofthemanagedportfolio,particularlyindevelopmentslikeRestonStation,hasstrengthenedtherevenuebaseandprovidedrecurringincome[2]LeasingandOccupancy−Thecompanyexecutedsixnewcommercialleasescoveringover60,000squarefeet,witharesidentialportfoliooccupancyrateof971.6 million [4] Business Model and Strategy - Comstock's asset-light and debt-free business model has consistently delivered positive results, with fee-based management revenues providing a stable income source [2] - The expansion of the managed portfolio, particularly in developments like Reston Station, has strengthened the revenue base and provided recurring income [2] Leasing and Occupancy - The company executed six new commercial leases covering over 60,000 square feet, with a residential portfolio occupancy rate of 97% and a 7% in-place rent growth compared to the previous year [5] Balance Sheet Overview - As of June 30, 2024, Comstock reported cash and cash equivalents of 17.4 million, total assets of 48.6million,andstockholders′equityincreasedto48.6 million, and stockholders' equity increased to 39.2 million, reflecting a 5.2% rise from the end of 2023 [6] Project Developments - Significant progress was made on major projects, including the JW Marriott Hotel & Residences and two Trophy-Class office towers at The Row at Reston Station, with pre-sales for JW Marriott-branded residences exceeding expectations [7]