Company Overview - Comstock manages \$1.6 billion in Real Estate AUM[9] - The company manages 45 properties[9] - Comstock has 2 million square feet of commercial space[9] - The company has 5.8 million square feet of additional entitled space[9] - Comstock has approximately 1,700 multifamily units[9] - The company's FY 2022 Revenue was \$39.3 million[9] - At full build-out, the company will have approximately 10 million square feet of space[9] - At full build-out, the company's Real Estate AUM is expected to be over \$5 billion[9] Financial Highlights - Comstock's 2022 Adjusted EBITDA Multiple is 4.6x, compared to peers at 9.2x[17] - The company has a \$132 million tax asset[17] - The company's Return on Equity (ROE) for FY 2022 is 27%, compared to peers at 7%[17] - Adjusted EBITDA grew at a CAGR of 41% from 2019-2022, while peers experienced a -4% CAGR[17] - Total Adjusted EBITDA for 2020 was \$3.4 million, increasing to \$5.8 million in 2021 and \$9.0 million in 2022[19] Portfolio Performance - Managed asset revenue increased by 86% from \$52 million in 2020 to \$97 million in 2022[25] - Net Operating Income (NOI) increased by 127% from \$22 million in 2020 to \$49 million in 2022[25] - Multifamily units increased by 46% from 1,123 in 2020 to 1,638 in 2022[25] - Multifamily leased percentage increased by 23% from 73% in 2020 to 90% in 2022[25] - Commercial square footage increased by 9% from 1.8 million in 2020 to 2.0 million in 2022[25] - Commercial leased percentage increased by 10% from 79% in 2020 to 87% in 2022[25] - Parking spaces increased by 70% from 8,336 in 2020 to 14,193 in 2022[25]

Financial Data and Key Metrics Changes - Total fourth quarter platform revenue was $4.6 million, a 36.1% decrease compared to the prior period due to lower carried interest from asset sales and higher development activity in the previous year [58] - Total platform expenses in Q4 were $10.7 million, an increase of 24% compared to the prior period, primarily due to a $4 million bad debt expense [59] - For the full year 2024, total platform revenue was $21 million, a 1.9% increase compared to last year, while platform expenses totaled $33.1 million, representing a 9.4% increase from the previous year [60] Business Line Data and Key Metrics Changes - Managed capital was $492.5 million, a 12.5% increase compared to December 31, 2023, with originations of $69 million partially offset by returns of capital of $14 million [61] - The company reported a platform adjusted EBITDA loss of $2.7 million for the full year 2024, compared to a loss of $1.3 million in 2023 [61] Market Data and Key Metrics Changes - The fundraising environment remains challenging, with the fourth quarter being disappointing due to election disruptions and other factors [42] - The company noted an increase in lender activities following a slowdown, indicating a potential recovery in the financing environment [66] Company Strategy and Development Direction - The company plans to focus on three key asset classes: multifamily residential, hospitality, and multi-tenant industrial, while reducing its development footprint to 30% or less of its asset portfolio [10][19] - New financing vehicles were launched to increase access to capital and support growth [11][22] - The company aims to enhance its access to capital through wholesale fundraising and corporate financings [11][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reentering the multifamily investment market as valuations have begun to drop [14] - The company is committed to achieving profitability in 2025, despite challenges in the current environment [12][63] - Management highlighted the unique opportunities in the hospitality sector due to reduced supply and returning demand [15][39] Other Important Information - The SEC issued new guidance on general solicitation, simplifying the process for qualifying investors, which is expected to benefit the company [44] - The estimated value of performance allocations as of year-end 2024 was $89 million, which is not included on the balance sheet [47][50] Q&A Session Summary Question: What drove the $4 million bad debt expense and the $8.6 million non-cash write-downs? - The bad debt expense was related to the assessment of consolidations and reevaluation of distributable cash from a fund in wind-down mode, leading to identified losses on various assets [74][76] Question: What is driving the renewed focus on the three asset classes? - The decision is driven by the need for consistent profitability and the desire to streamline operations and fundraising efforts by focusing on areas with a long-term track record [80][82] Question: What is the outlook for the fundraising environment going forward? - Management feels optimistic as investors are starting to see it as a good time to buy real estate, and the financing environment is showing signs of recovery [88][92] Question: Are there still expectations for the Satori Collective contribution to close? - Yes, the contribution agreement is in place, and modifications are being made to finalize the closing process [93][95] Question: Will operating income be positive in 2025 despite challenges? - Management is confident that operating income will be positive in 2025 due to ongoing expense reductions and revenue growth efforts [96][97]