Comstock Holding Companies Announces Conversion of the Majority of Its Unsecured, Short-Term Debt Into Non-Convertible Prefer...
May 23 2018 - 4:31PM
Comstock Holding Companies, Inc. (the “Company” or “CHCI”)
(NASDAQ:CHCI) announced today it has converted a majority of its
unsecured short-term debt into the Company’s existing Series C
Non-Convertible Preferred Equity. Additionally, CHCI secured an
extension of up to two years on $5.0M of its remaining unsecured
corporate debt. These related party transactions provide the
Company with greater financial flexibility while enhancing the
Company’s working capital position as it executes against its
recently announced strategic initiative to transition its business
out of for-sale homebuilding and into commercial development, asset
management and real estate services.
“This conversion of unsecured, short-term debt
is the next step in positioning Comstock to achieve our primary
objective of enhancing financial performance and shareholder
value,” said Christopher Clemente, Chairman and Chief Executive
Officer. “By deleveraging our balance sheet, we will improve
our working capital position and support the strategic initiatives
that are at the core of our recently announced operating platform
transformation. I am excited about the prospects for our Company
and look forward to reporting our progress in the coming
months.”
For additional details on the above referenced
transactions, refer to the disclosures within the Company’s Form
8-K, filed with the Securities and Exchange Commission on May 23,
2018.
The Company's latest investor relations
presentation describing the strategic vision of the Company can be
found at www.ComstockCompanies.com.
About Comstock Holding Companies,
Inc.
CHCI is a multi-faceted real estate development,
asset management and real estate related services company that,
since 1985, has designed, developed, constructed and managed
several thousand residential units and millions of square feet of
residential and mixed-use projects throughout the Washington, DC
metropolitan market and in other key markets in the southeastern
United States. In early 2018, CHCI transitioned its operating
platform from being primarily focused on developing on-balance
sheet, for-sale, homebuilding projects to being focused on
commercial real estate development, asset management and real
estate related services. As a result, CHCI began operating through
two real estate focused platforms, CDS Asset Management ("CAM") and
Comstock Real Estate Services ("CRES"). CAM provides real estate
development, asset management, and property management services,
while CRES provides development supply chain services, including
capital markets, real estate brokerage, environmental consulting
and design services in the Washington, DC metropolitan area and in
New Jersey and Pennsylvania. Anchoring the transition of CHCI is a
long-term asset management agreement covering two of the largest
transit-oriented, mixed-use developments in the Washington, DC
area; Reston Station, a 3 million square foot transit-oriented,
mixed-use development located in Reston, VA, and Loudoun Station, a
2.5 million square foot transit-oriented, mixed-use development in
Ashburn, VA, as well as other additional development assets.
Comstock's substantial experience in entitling, designing,
developing, and managing a diverse range of properties including
apartments, single-family homes, townhomes, mid-rise condominiums,
high-rise condominiums and mixed-use (residential and commercial)
properties, as well as large scale commercial parking garages and
infrastructure projects, has positioned the Comstock organization
as a premier developer and real estate related service provider in
the mid-Atlantic Region. The Company is a publicly traded company,
trading on NASDAQ under the symbol CHCI. For more information about
CHCI or its businesses, please visit www.ComstockCompanies.com.
Cautionary Statement Regarding
Forward-Looking Statements
This release includes "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. You should not place undue reliance on any
forward-looking statement, which speaks only as of the date made.
Some factors which may affect the accuracy of the forward-looking
statements apply generally to the real estate industry, while other
factors apply directly to us. Any number of important factors which
could cause actual results to differ materially from those in the
forward-looking statements include, without limitation: completion
of Comstock's financial accounting and review procedures; general
economic and market conditions, including interest rate levels; our
ability to service our debt; inherent risks in investment in real
estate; our ability to compete in the markets in which we operate;
economic risks in the markets in which we operate, including
actions related to government spending; delays in governmental
approvals and/or land development activity at our projects;
regulatory actions; fluctuations in operating results; our
anticipated growth strategies; shortages and increased costs of
labor or building materials; the availability and cost of land in
desirable areas; adverse weather conditions or natural disasters;
our ability to raise debt and equity capital and grow our
operations on a profitable basis; the reliance of substantially all
of our revenues derived from our provision of management services
to a limited number of companies; the Asset Management Agreement
and other agreements with clients are subject to termination; and
our continuing relationships with affiliates. Additional
information concerning these and other important risk and
uncertainties can be found under the heading "Risk Factors" in our
Annual Report on Form 10-K, as filed with the Securities and
Exchange Commission, for the fiscal year ended December 31,
2017. Our actual results could differ materially from these
projected or suggested by the forward-looking statements. Comstock
claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 for all forward-looking statements contained herein.
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 Conover, 703-230-1985 Chief Financial
OfficerSource: Comstock Holding Companies, Inc.
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