Summary of Sky Harbour Group Conference Call Company Overview - **Company Name**: Sky Harbour Group (NYSEAM: SKYH) - **Industry**: Aviation Infrastructure and Real Estate - **Business Model**: Focuses on constructing and leasing hangars for business aircraft across the United States, utilizing long-term ground leases typically extending to 50 years [2][3][4] Core Business Insights - **Tenant Base**: - High net worth individuals (majority) - Corporations with business aviation fleets - Government tenants and charter operators (smallest segment) [3][4] - **Ancillary Services**: In addition to hangar rentals, the company provides aviation services such as fuel sales and aircraft towing [4] - **Unit Economics**: Targeting low to mid-teen yields on cost or NOI yields, financed through tax-exempt municipal bonds [5][19] Market Dynamics - **Growth of Business Aviation Fleet**: The size of the business aviation fleet in the U.S. is consistently growing, with larger aircraft being introduced, leading to increased demand for hangar space [6][7] - **Supply Constraints**: Hangar development has not kept pace with the growth of the aviation fleet due to local municipalities' reluctance to invest taxpayer dollars in hangar construction [7][8] - **Competitive Landscape**: Sky Harbour differentiates itself from Fixed Base Operators (FBOs) by focusing solely on servicing its own clients, providing a more private and secure environment [10][11] Financial Performance and Projections - **Current Operations**: Operating at 23 airports with plans to expand to over 50 [5][6] - **Revenue Growth**: Anticipated revenue growth as airports transition from raw ground leases to completed constructions and lease-up processes, which can take 2-3 years [20][21] - **EBITDA Status**: Currently at break-even on an EBITDA basis, with expectations to achieve positive EBITDA as construction projects complete [21][22] Recent Developments - **Debt Financing**: - Issued $166 million in tax-exempt municipal debt at 4.18% to fund initial projects [23] - Announced a $200 million debt facility with J.P. Morgan, functioning as a tax-exempt construction loan [24] - Issued $150 million in sub-debt at 6%, which will serve as equity contribution for upcoming projects [26][44] - **Cost Management**: Facing rising construction costs, with current costs around $300 per sq ft, a 30%-50% increase from previous projects [32][33] - **Internalization of Construction**: Efforts to bring more construction processes in-house to reduce costs, including hiring a general contractor and acquiring a hangar manufacturing facility [15][34] Future Outlook - **Dividend Potential**: While there is interest in dividends, the company plans to retain cash flows for reinvestment into high-yielding assets for the foreseeable future [29][30] - **Investor Concerns**: Main concerns revolve around construction costs and capital expenditures, with strategies in place to manage these through vertical integration and cost control measures [32][33][34] - **Growth Strategy**: Focus on acquiring new ground leases and expanding construction capabilities to meet increasing demand for hangar space [18][27] Conclusion Sky Harbour Group is positioned for growth in the aviation infrastructure sector, with a clear strategy to capitalize on the increasing demand for hangar space while managing costs and financing effectively. The company is focused on internalizing construction processes and expanding its footprint across U.S. airports, aiming for sustainable profitability in the coming years.

WEST HARRISON, N.Y--(BUSINESS WIRE)--Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS) ("SHG†or the "Company†), an aviation infrastructure company building the first nationwide network of Home Base Operator (HBO) campuses for business aircraft, announced today that its indirect, wholly-owned subsidiary Sky Harbour Capital III LLC ("SKYH Capital III†) priced its Series 2026 Aviation Facilities Project bonds (the "Series 2026 Bonds†) at a yield of 6.0%. The Series 2026 Bonds were priced at par, carry ...

Core Viewpoint - Sky Harbour Group Corporation is advancing its position in the aviation infrastructure sector by establishing a nationwide network of Home Base Operator campuses for business aircraft [1] Group 1 - Sky Harbour Group Corporation announced that its subsidiary, Sky Harbour Capital III LLC, is filing a Preliminary Limited Offering Statement with the Municipal Securities Rulemaking Board [1]

Core Insights - Sky Harbour Group Corporation is expanding its network by developing Home Base Operator campuses at Dallas Love Field and Dallas Executive Airport, authorized by the Dallas City Council [1][2] - The new campuses will enhance the infrastructure for corporate and private business aircraft, creating hundreds of local jobs and providing significant economic benefits to the Dallas area [2][4] - With the addition of these two locations, Sky Harbour's network will grow to 23 airports across the United States, with nine currently operational and fourteen under development [3] Company Developments - The Dallas campuses will feature six 37,000-square-foot hangars designed for late-model business aircraft, along with tailored office and lounge suites [4] - The CEO of Sky Harbour emphasized the strategic clustering of campuses in major business aviation markets to provide tailored solutions and operational benefits [4] - The City of Dallas expressed optimism about the long-term economic impact of Sky Harbour's presence at its airports [4] Financial Updates - On December 9, the company secured a $15 million corporate loan with an 18-month term at an interest rate of 7.75%, intended for general corporate purposes [5] - Stratus Building Systems, a subsidiary, closed a $9.5 million commercial term loan to refinance existing debt, with a floating interest rate for the first year [6]

Company Overview - Sky Harbour Group Corporation is an aviation infrastructure company focused on developing the first nationwide network of Home-Basing campuses for business aircraft [4] - The company aims to provide private and corporate residents with superior physical infrastructure in business aviation, along with dedicated services tailored to based aircraft [4] Event Announcement - Sky Harbour's Treasurer, Tim Herr, will present at NobleCon21, the Twenty First Annual Emerging Growth Equity Conference hosted by Noble Capital Markets [1] - The presentation is scheduled for December 3rd at 3:30 PM Eastern Standard Time at Florida Atlantic University [1] Investor Engagement - Interested investors and guests can attend the conference at a discounted rate using the code SKYHNOBLECON [2] - A high-definition video webcast of the presentation will be available the following day and archived for 90 days on Noble Capital Markets' Conference website and Channelchek [3]

Core Insights - Jacobs has been selected to lead the program and construction management for a $1.6 billion modernization project at Cleveland Hopkins International Airport, named CLEvolution, aimed at enhancing the airport experience for travelers [1][2][3] Project Overview - The CLEvolution program is designed to modernize aging infrastructure, improve accessibility, and enhance passenger flow at Ohio's busiest airport [2] - The first phase of the project will include a redesigned terminal entrance, a consolidated TSA checkpoint, a new international arrivals area, and expanded parking facilities [5] Company Background - Jacobs is recognized as the top-ranked aviation firm by Engineering News-Record and has extensive experience with major U.S. airports [3][4] - The company reported approximately $12 billion in annual revenue and employs nearly 45,000 people, providing a wide range of services across various sectors [4]

Core Viewpoint - Sky Harbour Group Corporation reported significant growth in Q3 2025, with a 78.2% increase in consolidated revenues compared to Q3 2024, and reiterated its guidance for reaching operating cash-flow breakeven by year-end 2025 [5][12]. Financial Highlights - Constructed assets and construction in progress reached over $308 million, an increase of $108 million year-over-year [5]. - Q3 2025 consolidated revenues increased by 78.2% year-over-year and 10.8% compared to the prior quarter [5]. - Net cash used in operating activities was approximately $0.9 million for Q3 2025, down from $1.2 million in Q3 2024 [5]. - As of September 30, 2025, consolidated cash and US Treasuries totaled $47.9 million, with access to a $200 million construction warehouse bank facility [5]. - Q3 2025 Obligated Group revenues increased approximately 8.2% over the prior quarter, with net cash generated from operating activities reaching approximately $4.2 million, a 92.2% increase from the prior quarter [5]. Update on Construction and Development Activities - Miami Opa Locka Phase 2 is expected to be completed by Q2 2026, adding 111,720 rentable square feet [9]. - Bradley International Airport broke ground in October 2025, expected to be completed in Q4 2026 [9]. - Site work has commenced at Salt Lake City International Airport, with full construction permit expected soon [9]. - Dallas Addison Phase 2 demolition work is nearing completion [9]. Update on Leasing Activities - Dallas Addison Phase 1 and Phoenix Deer Valley Phase 1 have surpassed 50% occupancy [9]. - A preleasing pilot program has been adopted as a permanent program, with binding leases in place at Bradley International Airport and Dulles International Airport [9]. - A binding Letter of Intent has been executed with a JV Partner for a hangar at Miami Opa Locka, involving a $30.75 million cash payment [9]. Update on Airport Operations - The company currently operates campuses at nine airports and plans to reach a total of 23 airports in operation or development by the end of 2025 [9]. - Surveys indicate that Sky Harbour's HBO service offering is well-received, providing a distinct value proposition for residents [9]. Update on Capital Formation - The company entered into a $200 million construction warehouse facility with JPMorgan Chase Bank, with a fixed interest rate of 4.73% locked in through an interest rate swap [15]. - The facility is expandable to $300 million subject to credit approval, with no funds drawn yet [15]. - The company is exploring financing options to minimize capital costs as its development pipeline grows [15].

Core Viewpoint - Sky Harbour Group Corporation is set to release its Third Quarter 2025 financial results on November 12, 2025, and will host a webcast investor call to discuss these results and provide a business update [1][2]. Company Overview - Sky Harbour Group Corporation is an aviation infrastructure company focused on developing a nationwide network of Home-Basing campuses for business aircraft, offering general aviation hangars across the United States [3]. Upcoming Events - The financial results will be filed with the SEC after market close on November 12, 2025, followed by a webcast at 5:00 pm ET, which will include a Q&A session with company leadership [1][2]. Financial Instruments - The company has executed a floating-to-fixed interest rate swap with J.P. Morgan, locking in a fixed rate of 4.73% on a $200 million tax-exempt warehouse facility [7].

Core Insights - Sky Harbour Group Corporation has signed a ground lease agreement with the City of Long Beach, California, to develop a Home Base Operator (HBO) campus at Long Beach Airport (LGB), enhancing its nationwide network for business aircraft [1][2]. Development Details - The Long Beach campus will span approximately 17 acres and is designed to provide state-of-the-art hangars for corporate and private jets, with dedicated line services for based tenants, aiming for the shortest time to wheels-up in business aviation [2][4]. - The project is expected to create or sustain hundreds of local jobs and generate significant economic benefits for Southern California [2]. Existing and Future Campuses - Long Beach Airport becomes the 19th home-base airport for Sky Harbour, joining existing campuses in locations such as Houston, Nashville, Miami, and others, with additional campuses planned for cities like Chicago, New York, and Orlando [3]. Leadership and Community Impact - CEO Tal Keinan emphasized Long Beach's role as a hub for innovation in aerospace technology and the importance of business aviation in driving economic growth in the region [4]. - Long Beach Airport Director Cynthia Guidry highlighted the agreement's significance in reinforcing Long Beach as a key business aviation hub, contributing to local investment, job creation, and revenue [4].

Core Viewpoint - Sky Harbour Group Corporation has announced a floating-to-fixed interest rate swap with JPMorgan Chase Bank, resulting in a fixed interest rate of 4.73% on its $200 million tax-exempt warehouse facility [1] Group 1 - The company is focused on building the first nationwide Home Base Operator (HBO) network for business aircraft [1] - The interest rate swap is for a duration of 5 years [1] - The tax-exempt warehouse facility is associated with Sky Harbour Capital II LLC [1]