Sky Harbour Group Corporation (NYSE: SKYH) has demonstrated exceptional financial performance and strategic progress within its aviation infrastructure portfolio during fiscal year 2024, marking a period of significant growth and operational success. The company's third-quarter results highlight a 64% year-over-year increase in lease revenue, reaching $4.1 million, up from $2.5 million in the previous year. Total revenue saw an even more dramatic rise, jumping 90% to $10.1 million from $5.3 million in 2023.
Occupancy rates remained robust at 97%, reflecting the company's effective management of assets and consistent market demand. Strategic new lease agreements in the third and fourth quarters expanded Sky Harbour's leased square footage to approximately 580,000 square feet. Additionally, construction projects are on track, with 1,904,761 square feet of new developments expected to be completed in fiscal year 2025. These projects are anticipated to contribute an extra $37.6 million in annual revenue, highlighting the company's aggressive expansion strategy.
Despite a slight decrease in operating income to $(4.9) million from $(3.4) million in the same quarter of the previous year, primarily due to increased ground lease expenses and higher personnel costs, the company's gross margins improved to 10.2%. Sky Harbour's financial position remains strong, with total assets at $456.8 million and a total liquidity position of $110.3 million. A December private investment in public equity (PIPE) raise added $37.6 million in liquidity, further solidifying the company's financial foundation for future growth.
Stonegate Capital Partners' valuation analysis, using a Discounted Cash Flow method, estimates the company's stock value between $12.79 and $21.17, with a midpoint of $16.33. This assessment takes into account a discount rate range of 9.13% to 9.38% and the company's assumable debt with an estimated blended interest rate of 4.25%. With seven new ground leases anticipated in fiscal year 2025 and a strategic emphasis on infrastructure development, Sky Harbour Group Corporation is well-positioned to sustain its growth momentum and potentially achieve positive EBITDA by fiscal year 2026.
