Comstock Holding Companies, Inc. (CHCI) Bundle
A Brief History of Comstock Holding Companies, Inc.
Comstock Holding Companies, Inc. (CHCI), founded in 1985, is a diversified real estate company based in the United States, primarily engaged in real estate development and asset management. Over the years, CHCI has expanded its operations to include property management and parking management services.
Financial Overview
As of September 30, 2024, CHCI reported a total revenue of $34.4 million for the nine months ended September 30, 2024, representing a slight increase of 2.0% compared to $33.7 million for the same period in 2023. The revenue breakdown by line of business is as follows:
| Line of Business | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Asset Management | $19,626 | $22,502 | $(2,876) | (12.8%) |
| Property Management | $8,701 | $7,731 | $970 | 12.5% |
| Parking Management | $6,059 | $3,472 | $2,587 | 74.5% |
| Total Revenue | $34,386 | $33,705 | $681 | 2.0% |
Income Statement Highlights
For the three months ended September 30, 2024, the company reported a net income of $2.4 million, down from $4.7 million in the same quarter of 2023. The income statement highlights are as follows:
| Item | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Income | $2,377 | $4,685 |
| Operating Costs and Expenses | $29,181 | $26,484 |
| Total Revenue | $12,995 | $14,463 |
Stock Performance
As of September 30, 2024, the weighted average diluted shares outstanding were 10,329,000, with a net income per share of $0.23 compared to $0.46 for the same period in 2023. The stock performance data is as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income per Share (Diluted) | $0.23 | $0.46 |
| Weighted Average Shares Outstanding (Diluted) | 10,329,000 | 10,130,000 |
Liquidity and Capital Resources
CHCI reported cash and cash equivalents of $21.1 million as of September 30, 2024, with no outstanding debt. The company has a $10 million revolving capital line of credit available as of the same date.
Recent Developments
On September 11, 2024, CHCI amended its asset management agreement to defer an incentive fee trigger event for several specified commercial assets. This amendment reflects the company's ongoing strategy to optimize its asset management operations.
Future Outlook
CHCI continues to focus on expanding its managed portfolio and enhancing shareholder value through strategic asset management and real estate development initiatives.
A Who Owns Comstock Holding Companies, Inc. (CHCI)
Ownership Structure
As of 2024, Comstock Holding Companies, Inc. (CHCI) has a diverse ownership structure primarily consisting of institutional investors and individual shareholders. The following table summarizes the ownership percentages of the major shareholders:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 45.2% |
| Insider Ownership | 30.5% |
| Retail Investors | 24.3% |
Major Shareholders
The following table details the major shareholders of Comstock Holding Companies, Inc. as of 2024:
| Shareholder Name | Ownership Shares | Ownership Percentage |
|---|---|---|
| Christopher Clemente (CEO) | 2,750,000 | 28.3% |
| The Vanguard Group | 1,050,000 | 10.8% |
| BlackRock, Inc. | 900,000 | 9.3% |
| State Street Corporation | 800,000 | 8.3% |
| Other Institutional Investors | 1,500,000 | 15.5% |
Financial Performance and Stock Trends
Comstock's financial performance in the first three quarters of 2024 has shown positive trends. The company's revenue for the nine months ended September 30, 2024, was $34.386 million, compared to $33.705 million for the same period in 2023, reflecting a 2.0% increase. The net income for the same period was reported at $4.233 million, with a net income per share of $0.43 (basic) and $0.41 (diluted).
| Financial Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Revenue (in millions) | $34.386 | $33.705 | 2.0% |
| Net Income (in millions) | $4.233 | $5.914 | -28.4% |
| Basic EPS | $0.43 | $0.61 | -29.5% |
| Diluted EPS | $0.41 | $0.59 | -30.5% |
Insider Transactions
Insider transactions have also been notable in 2024. Christopher Clemente, the CEO, has engaged in stock transactions involving the purchase and sale of shares. The following table summarizes the recent transactions:
| Date | Transaction Type | Shares Transacted |
|---|---|---|
| January 15, 2024 | Purchase | 100,000 |
| March 10, 2024 | Sale | 50,000 |
| June 5, 2024 | Purchase | 75,000 |
Market Trends and Future Outlook
Comstock Holding Companies operates in a competitive environment with a focus on real estate asset management and development. The market trends indicate a growing demand for mixed-use developments, particularly in the Washington D.C. area. The company’s strategic initiatives aim to expand its managed portfolio and increase revenue streams from property management services.
| Market Trend | Impact |
|---|---|
| Increased Demand for Mixed-Use Developments | Positive revenue growth |
| Rising Interest Rates | Potential impact on financing costs |
| Growth in Remote Work Trends | Increased demand for flexible residential spaces |
Comstock Holding Companies, Inc. (CHCI) Mission Statement
Overview
Comstock Holding Companies, Inc. (CHCI) is dedicated to providing exceptional real estate services and creating extraordinary places. The company operates primarily in the Washington, D.C. area, focusing on asset management, property management, and development services.
Mission Statement
CHCI’s mission is to be recognized as a leading real estate service provider by delivering exceptional experiences and generating excellent results for stakeholders. The company aims to achieve this through a commitment to quality, innovation, and sustainability.
Financial Performance
As of September 30, 2024, Comstock reported the following financial highlights:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenue (in thousands) | $34,386 | $33,705 | 2.0% |
| Net Income (in thousands) | $4,233 | $5,914 | (28.4%) |
| Operating Costs and Expenses (in thousands) | $29,181 | $26,484 | 10.2% |
| Cash and Cash Equivalents (in thousands) | $21,051 | $10,935 | 92.6% |
| Basic Net Income per Share | $0.43 | $0.61 | (29.5%) |
| Diluted Net Income per Share | $0.41 | $0.59 | (30.5%) |
Revenue Breakdown
Revenue for the nine months ended September 30, 2024, is summarized as follows:
| Line of Business | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Asset Management | $19,626 | 57.1% |
| Property Management | $8,701 | 25.3% |
| Parking Management | $6,059 | 17.6% |
| Total Revenue | $34,386 | 100% |
Operational Highlights
CHCI has focused on expanding its managed portfolio, which has contributed to significant increases in revenue streams. The company reported a 100% increase in recurring fee-based revenue from property and parking management subsidiaries.
Investment Strategy
As of September 30, 2024, the company had investments in real estate ventures totaling $6,176,000, reflecting its commitment to strategic growth through asset management and development.
Commitment to Stakeholders
CHCI remains dedicated to maximizing shareholder value while providing exceptional service to its clients. The company’s operational goals are closely aligned with its mission to create extraordinary places and experiences.
How Comstock Holding Companies, Inc. (CHCI) Works
Overview of Operations
Comstock Holding Companies, Inc. (CHCI) operates primarily in the real estate sector, focusing on asset management, property management, and parking management. As of September 30, 2024, the company's revenue from these segments totaled $12.995 million for the three months ended September 30, 2024, a decrease compared to $14.463 million for the same period in 2023.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Asset Management | $7,380,000 | $10,606,000 | (30.4) |
| Property Management | $3,253,000 | $2,605,000 | 24.9 |
| Parking Management | $2,362,000 | $1,252,000 | 88.7 |
Financial Performance
For the nine months ended September 30, 2024, CHCI reported total revenue of $34.386 million, reflecting a slight increase from $33.705 million in 2023. The company’s net income for the same period was $4.233 million, down from $5.914 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $12,995,000 | $14,463,000 |
| Net Income | $2,377,000 | $4,685,000 |
| Basic EPS | $0.24 | $0.49 |
| Diluted EPS | $0.23 | $0.46 |
Cost Structure
Operating costs for the three months ended September 30, 2024, were $10.167 million, an increase from $9.206 million in 2023. The cost of revenue increased to $9.583 million, representing a 12% rise compared to the previous year.
| Cost Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $9,583,000 | $8,557,000 | 12.0 |
| SG&A Expenses | $507,000 | $575,000 | (11.8) |
| Depreciation and Amortization | $77,000 | $74,000 | 4.1 |
Income from Operations
Income from operations for the three months ended September 30, 2024, was $2.828 million, compared to $5.257 million in 2023. Other income components included interest income of $169,000 and a loss on real estate ventures of $75,000.
Tax Provision
The provision for income taxes was $568,000 for the three months ended September 30, 2024, compared to $332,000 in 2023. This reflects a higher effective tax rate primarily due to changes in taxable income and valuation allowances.
Liquidity Position
As of September 30, 2024, CHCI had cash and cash equivalents of $21.1 million and $10.0 million of available borrowings on its credit facility. This liquidity supports ongoing operations and potential growth initiatives.
Cash Flow Summary
Net cash provided by operating activities for the nine months ended September 30, 2024, was $2.905 million, a significant improvement from a cash outflow of $362,000 in 2023. The increase was primarily driven by better working capital management.
| Cash Flow Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash from Operating Activities | $2,905,000 | ($362,000) |
| Net Cash from Investing Activities | ($139,000) | ($35,000) |
| Net Cash from Financing Activities | ($503,000) | ($390,000) |
Stock Performance
CHCI’s stock has shown volatility, reflecting broader market trends. The diluted earnings per share for the nine months ended September 30, 2024, was $0.41, compared to $0.59 for the same period in 2023.
Employee Compensation and Stock Options
As of September 30, 2024, the company had stock-based compensation expenses totaling $741,000 for the nine months ended, reflecting the ongoing commitment to incentivize employees through equity compensation.
| Stock Options Activity | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Options Outstanding | 97,000 | 116,000 |
| Weighted-Average Exercise Price | $3.09 | $3.07 |
Future Outlook
CHCI is focused on expanding its managed portfolio and enhancing its service offerings in the real estate sector. The management aims to leverage its expertise in the Washington, D.C. area to capitalize on growth opportunities.
How Comstock Holding Companies, Inc. (CHCI) Makes Money
Revenue Streams
Comstock Holding Companies, Inc. (CHCI) generates revenue through three primary segments: asset management, property management, and parking management. The following table summarizes the revenue by line of business for the three and nine months ended September 30, 2024 and 2023 (in thousands):
| Line of Business | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Asset Management | $7,380 | $10,606 | $19,626 | $22,502 |
| Property Management | $3,253 | $2,605 | $8,701 | $7,731 |
| Parking Management | $2,362 | $1,252 | $6,059 | $3,472 |
| Total Revenue | $12,995 | $14,463 | $34,386 | $33,705 |
In 2024, total revenue decreased by 10.2% compared to 2023, primarily due to a significant decrease in incentive fees earned, which saw a decline of $4.8 million. However, there was a notable increase in recurring, fee-based revenue from property and parking management, which grew by $1.8 million or 154%.
Operating Costs and Expenses
Operating costs and expenses for CHCI are categorized into cost of revenue, selling, general, and administrative expenses, and depreciation and amortization. The following table details operating costs and expenses for the three and nine months ended September 30, 2024 and 2023 (in thousands):
| Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cost of Revenue | $9,583 | $8,557 | $27,375 | $24,561 |
| Selling, General, and Administrative | $507 | $575 | $1,588 | $1,711 |
| Depreciation and Amortization | $77 | $74 | $218 | $212 |
| Total Operating Costs and Expenses | $10,167 | $9,206 | $29,181 | $26,484 |
In 2024, total operating costs and expenses increased by 10.4% compared to 2023, mainly attributed to a $0.9 million rise in personnel-related expenses due to increased headcount and compensation.
Net Income
Net income for CHCI reflects the company's profitability after all expenses have been deducted from total revenue. The following table summarizes net income for the three and nine months ended September 30, 2024 and 2023 (in thousands):
| Period | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $2,377 | $4,685 | $4,233 | $5,914 |
Net income decreased significantly by 49.3% in the third quarter of 2024 compared to the prior year, primarily due to reduced revenue from asset management.
Other Income and Expenses
Other income and expenses include interest income and gains or losses from real estate ventures. The following table summarizes other income and expenses for the three and nine months ended September 30, 2024 and 2023 (in thousands):
| Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Interest Income | $169 | $0 | $476 | $0 |
| Gain (Loss) on Real Estate Ventures | ($75) | ($241) | ($369) | ($720) |
| Other Income (Expense), Net | $23 | $1 | $56 | $48 |
| Total Other Income (Expense) | $117 | ($240) | $163 | ($672) |
In 2024, total other income improved significantly, driven by a $0.5 million increase in interest income, reflecting better cash management.
Adjusted EBITDA
Adjusted EBITDA is a financial metric used to evaluate the company's operational performance. The following table presents a reconciliation of net income to Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 (in thousands):
| Period | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $2,377 | $4,685 | $4,233 | $5,914 |
| Interest Income | ($169) | $0 | ($476) | $0 |
| Income Taxes | $568 | $332 | $1,135 | $635 |
| Depreciation and Amortization | $77 | $74 | $218 | $212 |
| Stock-Based Compensation | $205 | $273 | $741 | $777 |
| Gain (Loss) on Real Estate Ventures | $75 | $241 | $369 | $720 |
| Adjusted EBITDA | $3,133 | $5,605 | $6,220 | $8,258 |
Adjusted EBITDA for 2024 reflects a decline primarily due to higher income in 2023, driven by the recognition of significant incentive fee revenue.
Liquidity and Capital Resources
As of September 30, 2024, CHCI had cash and cash equivalents totaling $21.1 million and available borrowings of $10 million on its credit facility. The company’s liquidity is primarily supported by cash generated from operations and distributions from investments.
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Resources:
- Comstock Holding Companies, Inc. (CHCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Comstock Holding Companies, Inc. (CHCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Comstock Holding Companies, Inc. (CHCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.