GlobeNewswire Inc | Nov 16, 2020 08:59AM EST

November 16, 2020

WASHINGTON and RESTON, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) -- On November 16, 2020, Comstock Holding Companies, Inc., (NASDAQ: CHCI) (the Company), announced results for the three and nine months ended September 30, 2020:

Highlights ofThird Quarter 2020, as compared to Third Quarter 2019

-- Net income increased to $0.4 million during the third quarter 2020, as compared to a net loss of $0.6 million during the same period of the prior year. -- Total revenue increased by 29% to $7.3 million during the third quarter 2020, as compared to $5.7 million during the same period of the prior year. -- Revenue from asset management operations increased by 24% to $5.9 million during the third quarter 2020, as compared to $4.7 million during the same period of the prior year. -- Revenue from real estate services increased by 52% to $1.4 million during the third quarter 2020, compared to $0.9 million during the same period of the prior year. -- Operating income increased by 185% to $0.5 million during the third quarter 2020, as compared to $0.2 million during the same period of the prior year.

Highlights of nine months ended September 30, 2020, as compared to nine months ended September 30, 2019

-- Net income increased to $1.6 million during the nine months ended September 30, 2020, as compared to a net loss of $0.8 million during the same period of the prior year. -- Total revenue increased by 31% to $20.8 million during the nine months ended September 30, 2020, as compared to $15.9 million during the same period of the prior year. -- Revenue from asset management operations increased by 16% to $15.5 million during the nine months ended September 30, 2020, as compared to $13.3 million during the same period of the prior year. -- Revenue from real estate services increased by 106% to $5.3 million during the nine months ended September 30, 2020, as compared to $2.6 million during the same period of the prior year. -- Operating income increased by 230% to $2.0 million during the nine months ended September 30, 2020, as compared to $0.6 million during the same period of the prior year.

The growth of Comstocks top and bottom lines so far this year is the result of the financial stability provided by our long-term asset management agreements, the quality of, and demand for, the properties we develop and manage, and the dedication of our team of commercial real estate professionals said Chris Clemente, Chairman and CEO of Comstock Holding Companies Inc. We continue to focus on executing our strategic plan thats designed to continue expanding assets under management through acquisitions and through the thoughtful development of our mixed-use and transit-oriented pipeline in one of the best real estate markets in the nation. I look forward to reporting on our continued progress in future quarters.

AboutComstock Holding Companies, Inc.

Comstock Holding Companies, Inc. (Comstock or CHCI) is a leading real estate developer, investor, asset manager and real estate related service provider that has designed, developed, constructed and managed several thousand residential units and millions of square feet of mixed-use projects since 1985. The Company has been selected by multiple local governments to be master developer of municipally owned properties redeveloped through public-private partnerships. CHCIs managed portfolio includes two of the largest transit-oriented, mixed-use developments in the Washington, D.C. area; Reston Station, a 5+ 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, and additional development and stabilized assets. Comstock also acquires and operates stabilized real estate assets in partnership with institutional investors.

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)

September December 30, 31, 2020 2019ASSETS Current assets: Cash and cash equivalents $ 4,491 $ 3,511 Trade receivables 1,635 1,886 Trade receivables - related parties 3,016 3,644 Prepaid and other assets, net 240 274 Total current assets 9,382 9,315 Equity method investments at fair value 6,965 8,421 Fixed assets, net 266 278 Goodwill 1,702 1,702 Intangible assets, net 53 103 Operating lease right-of-use assets ? 114 TOTAL ASSETS $ 18,368 $ 19,933 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accrued personnel costs $ 1,349 $ 2,916 Accounts payable 307 1,438 Accrued liabilities 660 166 Short term notes payable - due to affiliates, net of ? 5,706 discountShort term notes payable 22 77 Total current liabilities 2,338 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 ? 61 portionTOTAL LIABILITIES $ 7,838 $ 11,576 Commitments and contingencies STOCKHOLDERS? EQUITY Series C preferred stock $0.01 par value, 20,000,000shares authorized, 3,440,690 issued and outstanding and $ 6,765 $ 6,765 liquidation preference of $17,203 at September30, 2020and December 31, 2019Class A common stock, $0.01 par value, 59,779,750shares authorized, 7,949,152 and 7,849,756 issued, and 79 78 7,863,582 and 7,764,186 outstanding at September30,2020 and December 31, 2019, respectivelyClass B common stock, $0.01 par value, 220,250 sharesauthorized, issued and outstanding at September30, 2 2 2020 and December 31, 2019Additional paid-in capital 199,953 199,372 Treasury stock, at cost (85,570 shares Class A common (2,662 ) (2,662 )stock)Accumulated deficit (193,607 ) (195,198 )TOTAL COMSTOCK HOLDING COMPANIES, INC. EQUITY $ 10,530 $ 8,357 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 18,368 $ 19,933

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

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019Revenues Revenue?asset management $ 5,891 $ 4,733 $ 15,466 $ 13,326 Revenue?real estate services 1,439 947 5,294 2,573 Total revenue 7,330 5,680 20,760 15,899 Expenses Direct costs - asset management 5,066 4,197 12,915 11,804 Direct costs - real estate 630 862 3,109 2,265 servicesGeneral and administrative 1,029 353 2,261 968 Selling and Marketing 127 100 507 266 Operating income 478 168 1,968 596 Other income, net 55 47 92 131 Interest expense (63 ) (170 ) (320 ) (304 )Income before income tax 470 45 1,740 423 expenseIncome tax expense (1 ) ? (15 ) ? Loss on equity methodinvestments carried at fair (46 ) (606 ) (134 ) (606 )valueNet income (loss) from 423 (561 ) 1,591 (183 )continuing operationsNet loss from discontinued ? (66 ) ? (596 )operations, net of taxNet income (loss) $ 423 $ (627 ) $ 1,591 $ (779 ) Income (loss) per share from continuing operationsBasic net income (loss) per $ 0.05 $ (0.07 ) $ 0.20 $ (0.03 )shareDiluted net income (loss) per $ 0.05 $ (0.07 ) $ 0.19 $ (0.03 )shareLoss per share from discontinued operationsBasic net loss per share $ ? $ (0.01 ) $ ? $ (0.10 )Diluted net loss per share $ ? $ (0.01 ) $ ? $ (0.10 ) Basic weighted average shares 8,078 7,954 8,046 6,159 outstandingDiluted weighted average sharesoutstanding (continuing 8,579 7,954 8,415 6,159 operations)Diluted weighted average sharesoutstanding (discontinued ? 7,954 ? 6,159 operations)