Company Overview

Sky Harbour Group Corporation is an aviation infrastructure company that builds private jet hangar campuses on long-term ground leases at airports across the United States.

The company develops, leases, and manages hangars that can accommodate modern, large private jets which do not fit well in traditional shared hangars. Sky Harbour targets airports in markets with significant private jet populations and hangar shortages.

As of March 31, 2024, Sky Harbour has three properties totaling 375,241 rentable square feet operational with 93.6% occupancy. The company has an additional ten properties in development totaling 1.2 million square feet projected to cost $386-429 million.

Recent Financial Performance

Revenue

• Q1 2024 revenue was $2.4 million, up 117% from $1.1 million in Q1 2023
• Growth driven primarily by additional tenant leases at Nashville (BNA) and Miami-Opa Locka (OPF) hangar campuses

Expenses

• Operating expenses increased 16% to $2.1 million due to more ground leases and staff
• Depreciation increased 40% to $0.6 million reflecting full quarter of OPF operations
• General and administrative expenses rose 38% to $4.9 million largely due to more staff

Net Loss

• Net loss was $21.2 million compared to $8.8 million loss in prior year period
• Loss increase primarily attributed to $12 million higher unrealized loss on warrants

Construction Costs and Timelines

• Design enhancements at 3 projects expected to increase costs $26-28 million
• Construction timelines extended 3-5 months for impacted projects
• Strategies in place to mitigate inflation and reduce expenses
• Total costs and timelines remain estimates subject to variability

Liquidity and Capital Position

Cash

• $159 million of cash, restricted cash and investments as of March 31, 2024

Recent Financing

• Raised $57.8 million in PIPE financing in November 2023
• Established $100 million ATM facility in March 2024

Debt

• $166.3 million private activity bonds issued September 2021
• Compliant with all bond covenants as of March 31, 2024

Lease Commitments

• $369 million in total future lease payments

Development Capital

• Well positioned to finance initial 5-airport $200+ million plan
• Future projects will require additional bonds and equity financing

Outlook

Sky Harbour has a strong operational foundation and access to capital to expand its network of private jet hangar campuses across the United States. The company is focused on optimizing development timelines and mitigating construction cost pressures while positioning itself to meet robust demand for modern jet storage. Execution of Sky Harbour’s growth strategy will require disciplined capital allocation and maintaining access to funding.