GlobeNewswire Inc | Mar 31, 2021 05:30PM EDT

March 31, 2021

WASHINGTON and RESTON, Va., March 31, 2021 (GLOBE NEWSWIRE) -- On March 31, 2021, Comstock Holding Companies, Inc., (NASDAQ: CHCI) (the Company), announced financial results for the year ended December 31, 2020:

Highlights of 2020 year-end financial results:

-- Net income increased by 133% to $2.1 million in 2020, as compared to $0.9 million in 2019. -- Total revenue increased by 13% to $28.7 million in 2020, as compared to $25.3 million in 2019. -- Revenue from asset management operations increased by 12% to $21.9 million in 2020, as compared to $19.6 million in 2019. -- Revenue from real estate services increased by 19% to $6.8 million in 2020, compared to $5.7 million in 2019. -- Operating income increased by 13% to $2.6 million in 2020, as compared to $2.3 million in 2019. -- As of December 31, 2020, cash and cash equivalents increased 100% to $7.0 million as compared to $3.5 million as of December 31, 2019. -- During 2020, the Company secured a $10 million revolving capital line of credit at Prime Rate (currently 3.25%) plus 1% interest cost and utilized a portion of the new facility to retire 100% of the Companys $5.7 million 10% corporate debt obligation, ending 2020 with a $5.5 million outstanding balance of corporate debt obligations, as compared to $7.0 million at year-end 2019.

Company 2020 highlights:

-- During 2020, the Company expanded its Assets Under Management (AUM), which now includes over 3 million square feet of stabilized assets, including our most recent delivery of 318 additional apartments at Loudoun Station, located at the terminus station of Metros Silver Line in Ashburn, Virginia and the acquisition of an approximately 136,000 square foot Class A office building at Reston Station in Reston, Virginia, positioning the Company to proceed with plans to further expand its Reston Station mixed-use and transit-oriented development, which now covers approximately 37 acres. -- The Company completed the acquisition on behalf of affiliates of 4.7 acres from the Town of Herndon, Virginia, positioning the Company to proceed with development of a new mixed-use project pursuant to its third public-private partnership with local governmental bodies on properties proximate to Metros Silver Line in the high growth Dulles Corridor. -- The Company formed a joint venture with an institutional partner to purchase a majority ownership stake in the 211,000 square foot Hartford Building located in the Clarendon section of Arlington Countys premier mixed-use and transit-oriented employment corridor, the Rosslyn-Ballston Corridor. -- The Company sourced over $180 million in debt related to its AUM in support its strategic plan to develop certain assets under management while also acquiring additional stabilized assets in select high growth mixed-use, and transit-oriented areas in the Washington, DC region. -- The Company secured approvals for development of the next phase of its Reston Station development, the Reston Row District, which will include more than 1.4 million square feet of mixed-use, transit-oriented development featuring Virginias first JW Marriot luxury hotel with approximately 240 keys and 90 JW Marriott branded residences, as well as additional office, retail, and residential buildings. -- The Companys subsidiary, Comstock Commercial Management, LC, increased leasing of its office and retail portfolio to 79% overall, as a result of multiple new office leases in its Reston Station development, and multiple new retail leases in its Reston Station and Loudoun Station developments. -- The Companys subsidiary, Comstock Residential Management, LC, increased leasing occupancy of the stabilized BLVD Apartments properties in its portfolio to 89% overall, while commencing lease up of two new BLVD Apartments properties at its Loudoun Station development. -- The Company expanded its subsidiary, Park X Management, LC, with the opening of four new parking garages, adding more than 3,000 parking spaces to its managed portfolio, which now totals approximately 8,500 spaces. -- The Company was recognized as a 2020 Top Workplace by the Washington Post.

The Covid-19 pandemic created many challenges for our industry in 2020. I am pleased to report that as a result of the commitment of our dedicated team of commercial real estate professionals, Comstock was able to generate growth in our top and bottom lines, most notably increasing our year over year net income by 133% while increasing revenues in all aspects of our operations, said Christopher Clemente, Chairman and CEO of Comstock Holding Companies Inc. Our success in 2020 demonstrates the financial stability provided by our long-term asset management agreements, the quality of our portfolio assets and the continued strong demand for our real estate and real estate related services.

AboutComstock Holding Companies, Inc.

Comstock Holding Companies, Inc. (Comstock or CHCI) is a developer, operator, and asset manager of mixed-use and transit-oriented development properties in the greater Washington, D.C. metropolitan area, where we focus primarily on select high-growth urban and transitioning sub-urban markets. We provide a broad range of real estate asset management services, including development and construction management services, leasing and property management services, debt and equity financing origination, and other real estate related services. Our customers primarily include private and institutional owners and investors in the real estate properties that we manage and various governmental bodies that have a vested interest in public-private partnerships responsible for the development of certain properties that we develop and manage. CHCIs managed portfolio includes two of the largest transit-oriented, mixed-use developments in the Washington, D.C. area; Reston Station, a five million square foot transit-oriented and mixed-use development in Reston, Virginia, and Loudoun Station, a nearly 2.5 million square foot transit-oriented, mixed-use development in Ashburn, Virginia, as well as other additional development assets. We also invest capital on behalf of our asset management clients and institutional real estate investors in office, retail, residential and mixed-use properties, generally retaining an economic interest for the Company and providing management services to those properties, thereby enabling the Company to increase its assets under management in order to realize competitive advantages of scale and enhance our overall returns. The Company also provides additional fee-based real estate services, including corporate planning, capital markets, brokerage, title insurance, design, and environmental consulting and engineering services, to properties in the Companys managed portfolio and to other clients in the U.S. Mid-Atlantic Region.

Comstock Holding Companies, Inc. is publicly traded onNASDAQunder the symbol CHCI. For more information, visitwww.ComstockCompanies.com

Cautionary Statement Regarding Forward-Looking Statements

This release may include "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "seeks" or other similar expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements. Additional information concerning important risk factors and uncertainties can be found under the heading "Risk Factors" in our latest Annual Report on Form 10-K, as filed with theSecurities and Exchange Commission. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Company:Comstock Holding Companies, Inc.Christopher Guthrie, 703-230-1292Chief Financial Officer

Source:Comstock Holding Companies, Inc.

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share and per share data)

December December 31, 2020 31, 2019ASSETS Current assets: Cash and cash equivalents $ 7,032 $ 3,511 Trade receivables, net 1,482 1,886 Trade receivables - related parties 3,598 3,644 Prepaid and other assets, net 242 274 Total current assets 12,354 9,315 Equity method investments at fair value 6,307 8,421 Fixed assets, net 266 278 Operating lease right-of-use assets 7,914 114 Goodwill 1,702 1,702 Intangible assets, net 36 103 TOTAL ASSETS $ 28,579 $ 19,933 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accrued personnel costs $ 2,442 $ 2,916 Accounts payable 523 1,438 Accrued liabilities 964 166 Short term operating lease liabilities 569 ? Short term notes payable - due to affiliates, net of ? 5,706 discountShort term notes payable 5 77 Total current liabilities 4,503 10,303 Long term notes payable - due to affiliates 5,500 ? Long term notes payable, net of deferred financing ? 1,212 chargesLong term operating lease liabilities, net of current 7,361 61 portionTOTAL LIABILITIES $ 17,364 $ 11,576 Commitments and contingencies (Note 10) STOCKHOLDERS? EQUITY Series C preferred stock, $0.01 par value, 20,000,000shares authorized, 3,440,690 shares issued and $ 6,765 $ 6,765 outstanding with a liquidation preference of $17,203at December31, 2020 and 2019ClassA common stock, $0.01 par value, 59,779,750shares authorized, 7,953,729 and 7,849,756 issued and 79 78 7,868,159 and 7,764,186 outstanding at December31,2020 and 2019, respectivelyClass B common stock, $0.01 par value, 220,250 sharesauthorized, issued and outstanding at December31, 2 2 2020 and 2019Additional paid-in capital $ 200,147 $ 199,372 Treasury stock, at cost (85,570 shares ClassA common (2,662 ) (2,662 )stock)Accumulated deficit (193,116 ) (195,198 )TOTAL EQUITY $ 11,215 $ 8,357 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 28,579 $ 19,933

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share data)

For the years ended December 31, 2020 2019Revenue Asset management $ 21,923 $ 19,605 Real estate services 6,803 5,712 Total revenue 28,726 25,317 Operating expenses Direct costs - asset management 18,445 16,561 Direct costs - real estate services 4,097 4,611 General and administrative 2,956 1,487 Sales and marketing 661 383 Operating income 2,567 2,275 Interest expense (379 ) (474 )Other income, net 112 225 Income before income tax expense 2,300 2,026 Income tax expense (25 ) (2 )Loss on equity method investments carried at fair (193 ) (560 )valueNet income from continuing operations 2,082 1,464 Net loss from discontinued operations, net of tax ? (571 )Net income $ 2,082 $ 893 Income per share from continuing operations Basic net income per share $ 0.26 $ 0.22 Diluted net income per share $ 0.24 $ 0.22 Loss per share from discontinued operations Basic net loss per share $ ? $ (0.09 )Diluted net loss per share $ ? $ (0.09 )Income per share Basic net income per share $ 0.26 $ 0.13 Diluted net income per share $ 0.24 $ 0.13 Basic weighted average shares outstanding 8,056 6,617 Diluted weighted average shares outstanding 8,539 6,799