CHCI Stock Overview

Comstock's (CHCI) Q2 results benefit from a 103% rise in fee-based Property & Parking Management revenue and robust portfolio expansion.

Comstock reported solid results in Q3 2023. As expected, the incentive fee added a large bump to revenue and earnings leading to $0.49 GAAP EPS. Besides the incentive fee, recurring revenue grew 12.6% year-over-year led by 37% revenue growth in parking management revenue. In late December, CHCI announced that it fully acquired a plot of land in Rockville, MD adjacent to residential properties that it partially owns through a JV.

Comstock recently reported Q2 2023 earnings which were a mixed bag. Less lease activity led to less asset management revenue which hurt profitability in the quarter. However, lease rates for their commercial and residential managed assets rose to record levels. This shows that the big picture has not changed.

Comstock provides asset management and real estate services for mixed-use development, residential apartment buildings, and parking developments in the Washington D.C. metropolitan area. Comstock's asset-light model and high ROIC make it a unique way to invest in real estate, with its value based more on cash flows rather than property or land values. I believe an investment in Comstock could offer high returns due to the stock's current low earnings multiple, high revenue growth with high ROIC, and the D.C. area's demographics.