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Comstock (CHCI) Q2 Earnings Up Y/Y, Revenues Aided by Fee Growth
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For the second quarter of 2024, Comstock Holding Companies, Inc. (CHCI - Free Report) reported a significant increase in both revenues and net income, underscoring the company's continued growth trajectory.
Net income per share came in at 9 cents compared with 5 cents per share in the same period last year.
Revenue surged 20% year over year to $10.8 million. The company marked its 16th consecutive quarter of comparative revenue growth, benefiting from the expansion of its managed portfolio.
Comstock's asset-light and debt-free business model has enabled the company to deliver positive results consistently. The quarterly performance was positively impacted by the growth in fee-based management revenues, which has proven to be a stable and predictable income source.
The expansion of the managed portfolio, particularly in key developments like Reston Station, continues to bolster the company’s revenue base, with recurring income from these properties providing a cushion against market volatility.
Comstock Holding Companies, Inc. Price, Consensus and EPS Surprise
Comstock's revenue growth was mainly attributed to the sharp increase in fee-based Property & Parking Management revenues, which soared 103% during the quarter, reinforcing the company's strong recurring income streams. The revenue growth was also supported by the addition of 24 new assets under management (AUM) compared to the prior year.
The company’s net income for the quarter was $1 million, nearly doubling from $0.5 million in the prior-year quarter.
Despite the increase in revenue and net income, operating costs also rose by 14% to $9.5 million in the second quarter of 2024, driven by higher costs associated with the expanded portfolio and increased SG&A expenses.
Adjusted EBITDA grew by 56% in the quarter, reaching $1.6 million from $1 million in the previous year. The significant growth in adjusted EBITDA was mainly due to the substantial rise in recurring fee-based property management revenue.
Comstock executed six new commercial leases during the quarter, encompassing over 60,000 square feet of office and retail space. The residential portfolio maintained a strong leasing performance, with a 97% occupancy rate and a 7% in-place rent growth compared to the previous year. These metrics demonstrate the continued demand for high-quality, well-located properties within the company’s portfolio.
Balance Sheet Update (As of Jun 30, 2024)
Comstock reported cash and cash equivalents of $17.4 million, a slight decrease from $18.8 million at the end of Dec 31, 2023.
Total assets stood at $48.6 million, down marginally from $49.9 million at 2023 end.
Operating liabilities amounted to $5.8 million, down from $6.3 million at the 2023-end figure.
Stockholders' equity increased to $39.2 million from $37.2 million at the end of 2023, a 5.2% rise.
Other Developments
Significant developments during the quarter included progress on several major projects. At The Row at Reston Station, construction advanced on the JW Marriott Hotel & Residences and two new Trophy-Class office towers. The opening of the VIDA Fitness facility marked the first of several retail openings expected over the next year. Additionally, the on-site sales office for the JW Marriott-branded residences began operations, with pre-sales exceeding expectations in both volume and pricing.
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Comstock (CHCI) Q2 Earnings Up Y/Y, Revenues Aided by Fee Growth
For the second quarter of 2024, Comstock Holding Companies, Inc. (CHCI - Free Report) reported a significant increase in both revenues and net income, underscoring the company's continued growth trajectory.
Net income per share came in at 9 cents compared with 5 cents per share in the same period last year.
Revenue surged 20% year over year to $10.8 million. The company marked its 16th consecutive quarter of comparative revenue growth, benefiting from the expansion of its managed portfolio.
Comstock's asset-light and debt-free business model has enabled the company to deliver positive results consistently. The quarterly performance was positively impacted by the growth in fee-based management revenues, which has proven to be a stable and predictable income source.
The expansion of the managed portfolio, particularly in key developments like Reston Station, continues to bolster the company’s revenue base, with recurring income from these properties providing a cushion against market volatility.
Comstock Holding Companies, Inc. Price, Consensus and EPS Surprise
Comstock Holding Companies, Inc. price-consensus-eps-surprise-chart | Comstock Holding Companies, Inc. Quote
Key Business Metrics
Comstock's revenue growth was mainly attributed to the sharp increase in fee-based Property & Parking Management revenues, which soared 103% during the quarter, reinforcing the company's strong recurring income streams. The revenue growth was also supported by the addition of 24 new assets under management (AUM) compared to the prior year.
The company’s net income for the quarter was $1 million, nearly doubling from $0.5 million in the prior-year quarter.
Despite the increase in revenue and net income, operating costs also rose by 14% to $9.5 million in the second quarter of 2024, driven by higher costs associated with the expanded portfolio and increased SG&A expenses.
Adjusted EBITDA grew by 56% in the quarter, reaching $1.6 million from $1 million in the previous year. The significant growth in adjusted EBITDA was mainly due to the substantial rise in recurring fee-based property management revenue.
Comstock executed six new commercial leases during the quarter, encompassing over 60,000 square feet of office and retail space. The residential portfolio maintained a strong leasing performance, with a 97% occupancy rate and a 7% in-place rent growth compared to the previous year. These metrics demonstrate the continued demand for high-quality, well-located properties within the company’s portfolio.
Balance Sheet Update (As of Jun 30, 2024)
Comstock reported cash and cash equivalents of $17.4 million, a slight decrease from $18.8 million at the end of Dec 31, 2023.
Total assets stood at $48.6 million, down marginally from $49.9 million at 2023 end.
Operating liabilities amounted to $5.8 million, down from $6.3 million at the 2023-end figure.
Stockholders' equity increased to $39.2 million from $37.2 million at the end of 2023, a 5.2% rise.
Other Developments
Significant developments during the quarter included progress on several major projects. At The Row at Reston Station, construction advanced on the JW Marriott Hotel & Residences and two new Trophy-Class office towers. The opening of the VIDA Fitness facility marked the first of several retail openings expected over the next year. Additionally, the on-site sales office for the JW Marriott-branded residences began operations, with pre-sales exceeding expectations in both volume and pricing.