Comstock Holding Companies, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, the company generated revenue of $12.995 million, a decrease of 10.2% from $14.463 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenue increased by 2.0% to $34.386 million, up from $33.705 million in 2023.

The decline in quarterly revenue was primarily attributed to a significant drop in incentive fees, which fell by $4.8 million due to the deferral of a scheduled trigger event for seven managed portfolio assets. In contrast, recurring fee-based revenue from property and parking management subsidiaries rose by 154%, contributing to an overall increase in nine-month revenue. Specifically, property management revenue increased by 12.5% to $8.701 million, while parking management revenue surged by 74.5% to $6.059 million.

Operating costs and expenses for the three months ended September 30, 2024, rose to $10.167 million, up from $9.206 million in 2023, driven by a $0.9 million increase in personnel-related expenses. Consequently, income from operations for the third quarter decreased to $2.828 million from $5.257 million in the prior year, and net income fell to $2.377 million from $4.685 million. Basic net income per share for the quarter was $0.24, down from $0.49 in 2023.

For the nine-month period, net income also declined to $4.233 million from $5.914 million in 2023, with basic net income per share decreasing from $0.61 to $0.43. Adjusted EBITDA for the three months ended September 30, 2024, was $3.133 million, down from $5.605 million in the same period of 2023, while for the nine months, it decreased to $6.220 million from $8.258 million.

On the balance sheet, total assets increased to $52.164 million as of September 30, 2024, compared to $49.939 million at the end of 2023. Total stockholders' equity rose to $41.687 million from $37.216 million. Cash and cash equivalents also improved, reaching $21.051 million, up from $18.788 million at the end of 2023.

Strategically, Comstock has continued to expand its portfolio, including the acquisition of Comstock 41, a land parcel in Rockville, Maryland, and ongoing joint ventures for luxury apartment buildings. The company has also amended its asset management agreement with CP Entities, deferring the incentive fee trigger event, which may impact future revenue recognition. Overall, while the company faced challenges in the third quarter, it demonstrated resilience with a year-to-date revenue increase and strategic growth initiatives.