News Details

RESTON, Va., Nov. 14, 2011 (GLOBE NEWSWIRE) -- Comstock Homebuilding Companies, Inc. (Nasdaq:CHCI) ("Comstock" or the "Company"), a multi-faceted real estate development and services company focused on the Washington, D.C. market, announced net income for its third quarter ended September 30, 2011 of $6.7 million or $0.33 per diluted share. Net income and diluted net income per share for the third quarter of 2011 compares to net loss of $(3.4) million or $(0.18) earnings per diluted share for the comparable 2010 quarter. Total revenue for the third quarter of 2011 was $5.4 million compared to $5.6 million for the comparable 2010 quarter. Net income and diluted net income per share for the nine months ended September 30, 2011 was $4.2 million or $0.19 earnings per diluted share which compares to a net loss of $(6.2) million and $(0.34) earnings per diluted share for the same period a year ago. Net income for the three months and nine months ended September 30, 2011 includes a net gain of $9.4 million (or $0.47 earnings per diluted share for both the three and nine month period ended September 30, 2011) from the previously announced settlement of long running litigation concerning the Eclipse condominium project. Total revenue for the nine months ended September 30, 2011 was $15.9 million, which compares to $21.2 million for the comparable 2010 period.

Notable Events

• Improved financial position - As a result of the recently announced strategic alliance with SunBridge Capital Management, LLC and the settlement of the Eclipse lawsuit, the Company ended the September 30, 2011 quarter with $6.5 million of unrestricted cash on hand and total equity of approximately $15 million. This compares to $0.5 million of unrestricted cash on hand and total equity of approximately $7 million for the year ended December 31, 2010.
• Cascades Apartment Project — On October 31, 2011, Comstock Cascades II L.C., an entity in which the Company has a controlling interest, entered into a definitive agreement to sell its Potomac Square Apartment project ("Property") for approximately $19.75 million. Comstock developed the 103-unit Class A apartment project within the Cascades master planned community located in Loudoun County, Virginia. Construction began during the first quarter of 2011 and was completed in the third quarter, with initial occupancies beginning in July. Cardinal Bank of Tysons Corner, Virginia provided a $10.5 million construction loan for the project. The transaction is expected to close during the fourth quarter of 2011, subject to a customary due diligence period, during which the purchaser is entitled to cancel the transaction. The Company anticipates approximately $6 million of cash proceeds will be available from the sale after repayment of debt and project specific equity financing.
• Ongoing monetization of real estate assets - Comstock continues to monetize inventory units from its Eclipse and Penderbrook projects. Total units delivered in the third quarter of 2011 were 10. An additional 4 units were delivered during the month of October. There are 31 units remaining for sale at the Eclipse and 47 units remaining for sale at Penderbrook.

"The Washington, DC market continues to be one of the best real estate markets in the nation," said Christopher Clemente, Chairman and Chief Executive Officer. "As demonstrated by the overall performance of the Potomac Square Apartment project, expanding our focus to include development of institutional grade investment properties is beginning to yield dividends. We will continue to focus our core operating capabilities on opportunities that have the best potential for driving earnings in the near term as we work to maximize shareholder value."

About Comstock Homebuilding Companies, Inc.

Established in 1985, Comstock is a multi-faceted real estate development and services company. Our substantial experience in building a diverse range of products including multi-family, single-family homes, townhouses, mid-rise condominiums, high-rise condominiums and mixed-use (residential and commercial) developments has positioned Comstock as a prominent real estate developer and services company in the Washington, D.C. market place. Comstock Homebuilding Companies, Inc. trades on NASDAQ under the symbol CHCI. For more information on the Company or its projects please visit www.comstockhomebuilding.com.

The Comstock Homebuilding Companies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5034

Cautionary Statement Regarding Forward-Looking Statements

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements including incurring substantial indebtedness with respect to projects, the diversion of management's attention and other negative consequences. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's most recent Form 10-K, as filed with the Securities and Exchange Commission and other filings with the Securities and Exchange Commission. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

CONTACT:  Joe Squeri

          Chief Financial Officer

          703.230.1229

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