CHCI JUNE 2020 INVESTOR PRESENTATION Comstock Holding Companies, - - PowerPoint PPT Presentation

CHCI

JUNE 2020 INVESTOR PRESENTATION

Comstock Holding Companies, Inc. NASDAQ: CHCI

Disclosures

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. Additional information concerning important risks and uncertainties can be found under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. 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. While every attempt has been made to ensure the accuracy of included measurements, all future development measurements are based on available information at the time of production of this Investor Presentation and therefore all square foot measurements are subject to change without notice.

Comstock at a Glance

A PLATFORM FOR GROWTH DESIGNED TO CREATE VALUE FOR ALL STAKEHOLDERS

Comstock Holding Companies, Inc. (NASDAQ: CHCI) is a leading developer, operator, and asset manager of mixed-use and transit-oriented properties in the Washington, D.C. area where we primarily focus on select high-growth urban and transitioning “sub-urban” markets. As a vertically integrated real estate operating company and investor, we have several revenue sources.

• We invest capital on behalf of our asset management clients and

institutional real estate investors in offjce, retail, residential and mixed-use properties, generally retaining an economic interest for the Company and providing management services to those properties, enabling the Company to increase its assets under management (“AUM”).

• Comstock is at the forefront of the urban transformation of one of

the most dynamic real estate markets in the nation, Washington DC’s Dulles Corridor, where it is developing a ~7M square foot portfolio

• f mixed-use and transit-oriented properties located adjacent to key

Metro stations on the new Silver Line (the “Anchor Portfolio”).

• Comstock recently entered Arlington’s premier mixed-use and

transit-oriented submarket, the Rosslyn-Ballston Corridor, acquiring a 211,000 square foot offjce tower located at the Clarendon Metro station through a joint venture with institutional capital partners, retaining an economic interest and management responsibilities.

• Comstock affjliates have been selected by multiple jurisdictions as

the operating partner for Public-Private Partnerships responsible for development of mixed-use and transit-oriented developments that include large-scale public infrastructure elements.

Comstock at a Glance

5

750K SF

$1.6M

~$285M

$25.3M

$3.3M

$7M

$502K

CUSTOMERS

ASSET TYPES

SERVICES

1.4M

805

600K+ SF

OPERATING PORTFOLIO

454K

318

UNDER CONSTRUCTION Delivering 2020 & 2021

1.8M

1,600

2/450

FUTURE DEVELOPMENT PIPELINE

ASSETS UNDER MANAGEMENT CHCI 2019 + 2020 YTD ACQUISITIONS

82%

90%

79%

How Comstock Generates Revenues

ASSET MANAGEMENT SERVICES

• Asset management fees are earned pursuant to a long-term asset

management agreement through 2027 on the Anchor Portfolio, and pursuant to asset management agreements related to other properties on shorter term contracts

• Management fees derived from multiple services:

— Asset management fees as a percentage of managed portfolio revenues — Construction management fees as a percentage of costs associated with development of managed assets — Property management fees as a percentage of revenues generated by managed portfolio assets — Disposition fees as a percentage of the sales price of the disposition asset

• Anchor Portfolio managed pursuant to cost plus contract

for downside protection

• Incentive fees as a percentage of free cashfmow of AUM assets

above a specifjed preferred return on invested capital

• Leasing fees for new lease originations and lease renewals

COMSTOCK REAL ESTATE SERVICES (CRES)

• CRES provides supplemental services related to real estate

brokerage, equity and debt originations, and title insurance services

• Comstock Environmental provides variety of environmental

remediation and industrial hygiene management services, including COVID-19 related services

• CRES generates supplemental fee income from our highly qualifjed

personnel and serve as a potential catalyst for joint venture and strategic acquisitions

COMMERCIAL REAL ESTATE ACQUISITION FEE STREAM

• Investment origination fee for equity capital raised
• Loan Origination fee for capital markets/debt placements
• Fees related to ongoing Asset Management and Property

Management Services As a vertically integrated real estate operating company and real estate investor, we generate revenue in several ways in connection with the properties we acquire, develop, and/or manage. Our multiple revenue sources generally include fee-based revenue generated by providing multiple services in connection with AUM properties, partnership income generated by co-investing with our institutional partners in certain AUM properties, performance-based incentive income generated when transaction related events occur and when the performance of an AUM property meets certain fjnancial metrics, and income generated by providing supplemental real estate related services, including environmental remediation and COVID-19 related services.

Comstock Fee Structure

ASSET MANAGEMENT FEES SUPPLEMENTAL FEES

ANCHOR PORTFOLIO (*) - FULL SERVICE ASSET MANAGEMENT CONTRACTS

CO-COMMITTED ASSET

MANAGED PORTFOLIO - SELECT-SERVICE ASSET MANAGEMENT CONTRACTS

EXISTING UNDER CONSTRUCTION

Comstock Leadership and Principal Owners of Anchor Portfolio

CHRIS CLEMENTE

DWIGHT SCHAR

• investment. Mr. Clemente is also Managing Member at Comstock Partners, LC.

• Mr. Schar left Ryan Homes to form NV Land and NV Homes in 1977. After much

• NVR. Mr. Schar is part-owner of the NFL Washington Redskins football team and

Reshaped Management Team Combines Local Expertise with Institutional Asset Management Experience

TIMOTHY STEFFAN

MIKE DAUGARD

STEVE TRAUNER

CHRISTOPHER GUTHRIE

RANDI KILLEN

SHARON FITZGERALD

JUBAL THOMPSON

MICHAEL GUALTIERI

KRIS GREEN

JOSEPH SQUERI

TRACY SCHAR

DYLAN CLEMENTE

Comstock History

• ffjce building

• ffjce building in

• perations to

• f operating platform to real

1985 − PRESENT

Focusing on Select High-Growth Urban & Transitioning “Sub-Urban” Markets

TRANSIT-ORIENTED DEVELOPMENTS

Irreplaceable locations adjacent to key Metro stations on DC area’s new Silver Line, which is designed to accommodate over 5M passengers annually when Phase II is fully operational in 2021

STRONG SUBMARKET ECONOMIC FUNDAMENTALS

Thriving Northern Virginia fundamentals including YOY job growth at 4.4% in Q1-20 and among highest median household income in nation

RESILIENT ECONOMY

The Washington, DC MSA is diverse and resilient, demonstrating strong job growth in most years and ability to recover from market slowdowns faster than most

• ther markets

Since Transforming Operating Platform, Comstock Has Added More Than 4M SF of Assets Under Management

Q1 2018 CURRENT DIFFERENCE

COMMERCIAL 958,000 SF 3,250,000 SF 2,292,000 SF MULTIFAMILY 2,000,000 SF 3,200,000 SF 1,200,000 SF HOTELS 400,000 SF 400,000 SF RETAIL 314,000 SF 475,000 SF 161,000 SF TOTAL SF 3,272,000 SF 7,325,000 SF 4,050,000 SF Number of commercial assets 7 15 8 Number of multifamily assets 6 (1,400 units) 10 (2,800 units) 4 Number of hotel assets 0 (0 Keys) 2 (450 Keys) 2 TOTAL number of assets 13 27 14

Increasing AUM Through Acquisition of Stabilized Assets and Development of Anchor Portfolio

1.0 2.0 3.0 4.0 5.0 6.0 7.0 2019 2020 2021 2022 2023 2024 2025 Operating Under construction / Development pipeline Sqft (millions) Additions from acquisitions

Mixed-Use and Transit Oriented Reston Station Attracting Quality Tenants

17.8% 15.1% 10.2% 22.0%

OTHER

5.8% 5.4% 4.8% 4.3%

etc.

3.6% 2.3% 2.3% 2.2% 2.1% 1.9%

Reston Station Represents the Beginning Transformation of Dulles Corridor

Reston Station is among the largest mixed-use, transit-oriented developments in the Washington D.C. MSA and led the market with more than 500,000 sf of

• ffice leases in 2019

Located midway between Dulles Airport and Tysons Corner, the urban core of Reston Station surrounds the

• nly fully integrated transit facility in northern VA

Metro’s Wiehle Reston-East Station is situated at center

• f Reston Station neighborhood and will accommodate

upwards of 25,000 daily commuters when Phase II of the Silver Line opens in late 2020 or early 2021 Spanning the Dulles Toll Road, the 40+ acre Reston Station neighborhood is being developed in four distinct districts:

• Metro Plaza District
• Reston Row District

• Commerce District
• West District

RESTON STATION ASSETS OVERVIEW*

5M SF MIXED USE DEVELOPMENT 2M SF TROPHY-CLASS & CLASS-A OFFICE 210K SF RESTAURANTS, DESTINATION RETAIL 400+ KEYS FULL SERVICE & EXTENDED STAY HOTELS (2) 2,000+ RESIDENTIAL UNITS 7,500+ PARKING SPACES 500K+ SF LEASING ACTIVITY 2019

Loudoun Station Is The First Transit-oriented, Mixed-use Development in Loudoun County

Loudoun Station, located at the terminus of Phase II of Metro’s Silver Line in Ashburn, VA is Loudoun County’s first Metro connected development. Currently the neighborhood is connected to Metrorail via non-stop commuter bus to Reston Station. Loudoun Station will be the terminus of the Silver Line upon completion. Phase II of Metro’s Silver Line is under construction and scheduled to commence passenger service in late 2020 or early 2021. More than 1 million SF of mixed-use development completed. Loudoun Station will be the terminus of the Silver Line Metro upon completion.*

• 1,000 residential units
• 500K SF of Class-A Offjce Space
• 150K of destination retail
• 5,000+ parking spaces

Stabilized Operating Assets

PROJECT NAME LOCATION ASSET CLASS OFFICE GSF UNITS RETAIL SF

BLVD RESTON Reston Station Multifamily/Retail NA 448 8,700 FOUNDING FARMERS Reston Station Retail/Dining NA NA 12,500 1900 RESTON METRO PLAZA Reston Station Offjce/Retail 371,000 NA 8,500 1850 CENTENNIAL PARK Reston Station Offjce/Retail 107,000 NA 3,000 11400 COMMERCE PARK Reston Station Offjce/Retail 124,000 NA 12,400 11440 COMMERCE PARK Reston Station Offjce 162,000 NA NA 11480 COMMERCE PARK Reston Station Offjce 133,000 NA NA 1886 METRO CENTER DR Reston Station Offjce 90,000 NA NA BLVD LOUDOUN - PHASE I Loudoun Station Multifamily/Retail NA 357 62,000 43777 CENTRAL STATION Loudoun Station Offjce 52,000 NA NA AMC THEATRES Loudoun Station Retail NA NA 62,000 THE HARTFORD BUILDING Clarendon Offjce/Retail 196,000 NA 16,000 TOTAL 1,235,000 805 units ~1,000,000 SF 185,100 PARK X RESTON Reston Station Parking NA 1,687 spaces NA PARK X COMMERCE Reston Station Parking NA 1,629 spaces NA PARK X LOUDOUN Loudoun Station Parking NA 1,518 spaces 21,000 PARK X HARTFORD Clarendon Parking NA 520 spaces NA

Active Development Pipeline

PROJECT NAME LOCATION SQUARE FEET TYPE ESTIMATED COMPLETION

1906 RESTON METRO PLAZA Reston Station 203K Offjce 2020 BLVD GRAMERCY EAST AND BLVD FLATS Loudoun Station 419K 318 units 2020 1902 RESTON METRO PLAZA Reston Station 225K Offjce 2021 HERNDON DOWNTOWN Herndon 339K 273 units 2023 ONE GRAMERCY Loudoun Station 175K Offjce 2023 ONE RESTON ROW Reston Station 315K Offjce 2023 BLVD GRAMERCY WEST Loudoun Station 304K 249 units 2023 MARRIOTT HOTEL AND CONDOS Reston Station 465K Hotel / 90 units 2023 ONE COMMERCE Reston Station 385K Offjce Build-to-suit BLVD RESTON ROW AND RETAIL Reston Station 355K 250 units 2023 TWO RESTON ROW Reston Station 222K Offjce 2024 BLVD WEST Reston Station 219K 200 units 2024 BLVD COMMERCE Reston Station 220K 200 units 2024 FUTURE PHASES 1.2M 500 units TOTAL 5M 1,990 units

Northern VA Office Market

OFFICE MARKET SUPPLY/DEMAND FORECAST WASHINGTON METRO AREA (24 MONTHS ENDING SEPTEMBER 2021)

1 2 3 4 5 Northern Virginia Millions of Square Feet Suburban Maryland D.C. Demand Development Pipeline

OPPORTUNITY: METRO-ADJACENT OUTPERFORMING OFFICE VACANCY RATE: NORTHERN VIRGINIA 3Q 2019

Vacancy Rate 8% 10% 12% 14% 16% 18% Within 1/4 mile radius

• f silver line station

Class A in Reston and Tysons All Northern Virginia 20%

Next 24 Months Demand: 5.5 million SF New Supply: 7.5 million SF

• 20

Big Tech Focus on Northern Virginia Transforming Region into Silicon Valley of the East

The Silver Line consists of 23 miles of new track and 11 new commuter rail

• stations. Constructed in two phases, the fjrst phase opened in 2014 and the

second phase will open in late 2020 or early 2021. Phase I includes four stations in Tysons Corner and one station in the Dulles Corridor at Comstock’s Reston Station, which serves as terminus of Phase I of Silver Line. Phase II will extend the Silver Line from Reston Station to Dulles International Airport and into Loudoun County, adding six stations and terminating at Comstock’s Loudoun Station development. Commuter parking facilities are provided only at the Reston Station terminus

• f Phase I, and fjve of the six stations of Phase II. No commuter parking is

provided at the stations at Tysons Corner, Reston Town Center Station and Dulles Airport Station.

Reston Market

Reston is located in Fairfax County in Northern Virginia

• Fairfax County is a major business center and one of the most desirable communities

in the Washington metropolitan area (#1 populous jurisdiction in the DC Metro region, #2 wealthiest county in the nation, 3.6% unemployment rate vs. 4.0% national average)

• Since 2014, rents in the Reston Station area have increased 57.1% due to new construction,

renovated buildings, and new walkable amenities, including Metro rail

• Silver Line will provide 7 rail stations in Dulles Corridor with Reston Station representing the

Terminus of Phase I, and the largest commuter parking garage Reston Town Center commands a rent premium over older and less walkable micro-markets within Reston

• Historically has experienced not only the lowest vacancy rate in Reston but one of the lowest

rates of any micro-market in the Washington DC region Reston Station achieving comparable rents to Reston Town Center

• New buildings, ample parking, abundant amenities, and on-site Metro station attracting corporate relocations

from Reston Town Center and elsewhere

• Led DC market with 500K+ SF of new offjce leases in 2019 with Big Tech companies and federal contractors
• Silver Line will be completed in late 2020 or early 2021 and is projected to serve 5M+ commuters annually

The Dulles Corridor is well positioned to outperform the broader market from a demand perspective with a fully funded defense budget and strong growth from big tech tenants specializing in cloud computing and cyber security

• verall

• verall

Loudoun Market

Loudoun County is located in the northeastern portion of Virginia and is less than 24 miles outside of Washington D.C. Loudoun County is the fastest growing and highest earning county in the U.S. with job growth of 68% since 2000 and a median household income of ~$125K, nearly triple that of the national average More than $3.5B has been invested in Loudoun County between July 2016 and April 2019, bringing the three-year total to more than $7.2 billion in commercial real estate investment Silver Line will add 7 Rail Stations in the Dulles Corridor with Loudoun Station representing the Terminus

• f Phase II

Loudoun County benefits from its close proximity to the Dulles International Airport

• Washington Dulles International Airport is the second busiest Trans-Atlantic airport on the East Coast

serving more than 24M passengers annually with year-round fmights to over 125 destinations around the world

#1

Job Growth in the United States

2.5%

Unemployment Rate

• vs. 4.0% national average

#1

Wealthiest County in the Nation

36

YEARS

Median Age

Appendix

Reconciliation of Non-GAAP financial measures (unaudited)

2019 2020 (in thousands) Full Year Q1 Total revenue 25,317 6,966 Total expenses 23,042 6,775 Operating income 2,275 191 Other income, net 225 9 Interest expense (474) (164) (Loss) gain on equity method investments carried at fair value (560) (47) (Loss) income before income tax expense 1,466 (11) Income tax expense (2) (1) Net (loss) income from continuing operations 1,464 (12) + interest expense 474 164 + Income tax expense 2 1 + D&A 301 89 + stock compensation 479 213 + Loss on equity method investments carried at fair value 560 47 EBITDA 3,280 502

• perating performance and with the performance of other asset management businesses. EBITDA does not represent cash generated by operating activities in accordance with GAAP and should not be considered

comstockcompanies.com | 1886 Metro Center Dr, Reston, VA 20190 | 703. 230.1985

CHRISTOPHER GUTHRIE

Chief Financial Officer 703.230.1146