Business
Comstock Holding Companies Reports 2019 Results
Commercial Real Estate Asset Management Platform Producing Stable Revenue, Positive Results and Platform for Growth WASHINGTON and RESTON, Va., April 15, 2020
About this update from Comstock Holding Companies, Inc.
[{"type":"text","content":"Commercial Real Estate Asset Management Platform Producing Stable Revenue, Positive Results and Platform for Growth\nWASHINGTON and RESTON, Va., April 15, 2020 (GLOBE NEWSWIRE) -- On April 15, 2020, Comstock Holding Companies, Inc., (NASDAQ: CHCI) (the “Company”), announced financial results for the year ended December 31, 2019:\n Highlights of 2019 year-end financial results: Total revenue increased by 54% to $25.3 million in 2019, as compared to $16.4 million in 2018.Revenue from asset management operations increased by 46% to $19.6 million, as compared to $13.4 million in 2018.Revenue from real estate services increased by 88% to $5.7 million in 2018, as compared to $3.0 million in the prior year.Operating income increased by 676% to $2.3 million in 2019, as compared to $0.3 million in 2018.Net income of $0.9 million in 2019 was also significantly improved as compared to a loss of $4.4 million in 2018. Highlights of Commercial Real Estate Asset Management Business Platform: 2019 Modified Asset Management Agreement covering portfolio of privately held commercial real estate assets controlled by our CEO (the “Anchor Portfolio”) provides for stable revenue and income backstop through asset management fee structure entitling Company to fees equal to the greater of (i) the Company’s operating costs plus $1 million annually and certain supplemental capital markets and property management fee streams, or (ii) market rate fees.Company has opportunity to generate additional incentive based revenue related to substantially all of the Company’s managed assets, with assets acquired in ventures with institutional partners projected to be held for 3-7 years and assets included in Anchor Portfolio projected to be held long-term.Assets under management (“AUM”) more than doubled during the last year from approximately 3.3 million square feet to approximately 7.3 million square feet.The Company expanded its operating platform in 2019 to increase its service offerings and revenue generated from existing asset management contracts and newly solicited management contracts.The majority of AUM are subject to long-term contracts, extending through 2027, and include significant early termination penalties payable to the Company.Anchor Portfolio consists primarily of two large scale transit-oriented, mixed-use developments located at key commuter rail...