News Details

• Total Revenues for the Third Quarter Jump to $18.4 Million, a 92% increase year over year
• Total Revenues for Nine Months Ended September 30, 2014 Up Nearly 14% year over year to $38.1 Million
• 17 Communities Open or Under Control, up from 12 as of Year-End 2013 and 10 at Year-End 2012
• Total Revenue Potential of Development Pipeline Increases 69% to approximately $333 Million from $197 Million as of Year-End 2013

RESTON, Va.--(BUSINESS WIRE)-- Comstock Holding Companies, Inc. (NASDAQ:CHCI) ("Comstock" or the "Company"), a leading homebuilding and multi-faceted real estate development and services company focused on the Washington, D.C. metropolitan area, today announced results for the third quarter ended September 30, 2014.

Performance highlights for the quarter include:

• Total third quarter revenue increased to $18.4 million from $9.6 million in the third quarter 2013
• Homebuilding revenue nearly doubled to $18.2 million from $9.2 million in the third quarter 2013
• Quarter-end backlog of 31 units, valued at $15.9 million
• Average backlog price increased to $513,000 from $449,000 or approximately 14% from the prior year
• Community count increased to 17 communities open, or controlled under land purchase option contract at quarter-end 2014
• Pipeline of controlled land inventory expanded to 831 lots at quarter-end compared to 505 lots at year-end 2013

Christopher Clemente, Chairman and Chief Executive Officer commented; "Our increased revenues, deliveries, and community count as compared to the same periods in 2013 are the result of numerous strategic initiatives implemented over the past year, including geographic expansion within the Washington DC area, the updating and expansion of our product offerings, changes to our management team, and realignment of certain key operational responsibilities. Coupled with our recently announced cheaper capital source, I believe Comstock is better positioned now for growth and profitability than at any time in recent years."

"Our focus continues to be on achieving and maintaining the scale needed to generate positive results while achieving operational excellence. To that end we have taken many strategic steps to improve the Company's operating performance and enhance operating margins going forward. Among the key changes implemented and in process are the following:

• Formed Comstock Growth Fund, LC, which has enabled us to recapitalize numerous projects with more flexible, lower cost 10% mezzanine debt,
• Implemented key management and operational changes in homebuilding division, ensuring experienced managers are focused on managing critical elements of homebuilding operations,
• Established a dedicated and experienced purchasing team focused solely on reducing production and other costs,
• Expanded our land acquisitions and development department with experienced management talent focused on increasing our pipeline of development opportunities and reducing time-to-market associated with entitlements and costs of land development,
• Expanded our product line to include active adult villas, which will be introduced at the recently announced Two Rivers community in Anne Arundel County, Maryland,
• Updated all existing products to enhance competitiveness and marketability,
• Invested in new CRM/business management software to better manage supply chain and enhance our ability to monitor project performance."

"I am committed to restoring Comstock's ability to consistently deliver positive results," Clemente continued. "I am confident that the management and operational changes implemented during the past year have resulted in the right managers being in the right seats and that our increasing community count enhances our ability to deliver significantly better results in future periods. Whereas our projected revenue from projects active or under control was $197 million at year-end 2013, total projected revenue has increased to $333 million at September 30, 2014, and we expect to add additional projects to our pipeline as we capitalize on a number of attractive opportunities."

Exhibits 1 and 2 provide summary information on revenue and backlog by community for the third quarter of 2014 and the year to date. Exhibit 3 provides detailed information on the Company's pipeline as of September 30, 2014 as compared to year-end 2013 and year-end 2012.

Third Quarter and Nine Month 2014 Financial Results

Revenue for the third quarter of 2014 totaled $18.4 million ($18.2 million from 35 home settlements) compared to $9.6 million for the 2013 third quarter ($9.2 million from 20 home settlements). The Company reported a consolidated net income before non-controlling interest of $1.0 million for the third quarter of 2014 compared to consolidated net income before controlling interest of $0.25 million for the 2013 period. In the third quarter of 2014, net loss attributable to Comstock Holding Companies, Inc. totaled $0.2 million, or $0.01 per diluted share, compared to a net loss of $0.7 million, or $0.03 per diluted share, in the prior-year period.

Revenue for the nine months ended September 30, 2014 totaled $38.1 million ($37.7 million from 82 settlements) compared to $33.3 million ($32.6 million from 63 settlements) for the nine months ended September 30, 2013. The Company reported a consolidated net loss before non-controlling interest of $0.5 million for the nine months ended September 30, 2014 after accounting for a severance and restructuring charge of $0.5 million related to the departure of the former Chief Operating Officer. This compared to net income before non-controlling interest of $1.4 million for the 2013 period. For the nine months ended September 30, 2014, net loss attributable to Comstock Holding Companies, Inc. totaled $3.4 million, or $0.16 per diluted share, after accounting for a severance and restructuring charge of $0.5 million related to the departure of the former Chief Operating Officer. This compared to a net loss of $0.9 million, or $0.04 per diluted share in the prior-year period.

About Comstock Holding Companies, Inc.

Comstock is a homebuilding and multi-faceted real estate development and services company that builds a wide range of housing products under its Comstock Homes brand through its wholly owned subsidiary, Comstock Homes of Washington, LC. Our track record of developing numerous successful new home communities and more than 5,500 homes, together with our substantial experience in building a diverse range of products including apartments, single-family homes, townhomes, mid-rise condominiums, high-rise condominiums and mixed-use (residential and commercial) developments has positioned Comstock as a leading residential developer and homebuilder in the Washington, D.C. metropolitan area. Comstock is a publicly traded company, trading on NASDAQ under the symbol CHCI. For more information about Comstock or its new home communities, please visit www.comstockhomes.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 the use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "potential," "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: 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; 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, 2013. 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.

Exhibit 3

CHCI Homebuilding Pipeline

Company:
Comstock Holding Companies, Inc.
Joe Squeri, 703-230-1229
Chief Financial Officer
or
Investor Relations:
LHA
Jody Burfening / Harriet Fried, 212-838-3777
hfried@lhai.com

Source: Comstock Holding Companies, Inc.

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