Financial Data and Key Metrics Changes - The company reported approximately $4 million in revenue for Q2, with a gross margin of about 38%, primarily driven by royalty income from mineral royalties [8][10] - Year-to-date revenue reached approximately $10 million, with a gross profit margin exceeding 50% and continued growth in earnings per share [9][15] - The company is on track to meet its fiscal 2025 guidance of around $31 million in revenue, with Q2 typically being the softest quarter due to seasonal factors [12][15] Business Line Data and Key Metrics Changes - The water utility segment performed well, driven by the receipt of TAPIs as new phases of development opened, with strong demand from home builders [17][20] - The land development segment has seen significant activity, with three phases under construction and a robust market for entry-level homes [28][31] - The single-family rental segment maintained high occupancy rates, with 14 homes completed and strong demand anticipated as new units come online [32][35] Market Data and Key Metrics Changes - The Denver real estate market is experiencing a push for affordability, with builders adapting to the current interest rate environment, which has stabilized consumer sentiment [98][100] - Demand for homes in the I-70 corridor remains strong, with builders actively constructing homes and expressing confidence in the market [101][102] Company Strategy and Development Direction - The company aims to continue investing in land and water assets, with a focus on land acquisition as a higher priority than additional water rights [91][140] - The development of the Sky Ranch community is a key focus, with plans for commercial opportunities and infrastructure improvements, including a new interchange [68][135] - The company is positioned to capitalize on market opportunities created by uncertainty, leveraging its existing assets for growth [44][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging markets, highlighting a strong liquidity position with over $20 million available [60][64] - The outlook for the next three to five years includes steady customer growth and increased tap sales, with a full build-out of Sky Ranch projected over seven years [66][70] Other Important Information - The company has a strong partnership with National Heritage Academy for a K-12 school, which is seen as a valuable asset for the community [150][152] - The company is exploring opportunities for affordable housing in collaboration with the state of Colorado, which owns significant land in the area [158][161] Q&A Session Summary Question: Status of I-70 interchange and potential acquisitions - The CEO indicated that the permit for the I-70 interchange is expected to be submitted soon, with construction anticipated to start by late 2025 [85][86] - Regarding acquisitions, the CEO noted that while there is interest from sellers, personal circumstances often dictate their willingness to sell [88][90] Question: Update on demand in the Denver real estate market - Management confirmed strong demand for homes, particularly in the entry-level segment, and noted that builders are actively constructing homes [96][100] Question: Prioritization of land acquisition over water rights - The CEO clarified that land acquisition is prioritized due to the need for additional land to utilize existing water rights effectively [140][141] Question: Status of the local school - The CEO provided an update on the K-12 school, highlighting plans for a high school to be built by 2026, which will serve the community well [150][152] Question: Opportunities for affordable housing - The CEO mentioned that while the company is not adjacent to federal land, there are opportunities to partner with the state of Colorado for affordable housing initiatives [158][161]