How many years do you think it will take to get to the 50 locations you mention? Im thinking that some institution with a large amount of capital to put to work may buy this as a platform because there is a long runway of investment opportunity at excellent cap rates. It would be good holding for a Berkshire or an insurance co that has a lot of cash to put to work.
If they continue to open 6 campuses per year they would have 50 in about 8 years or maybe less, but it would likely take a few more years to stabilize all campuses, so 10 years is a reasonable assumption. But again, this hinges on how many campuses they open per year.
Great write up on this obscure company. I am a big fan of the comapny and rooting for it. A few more things to discuss in the followup may be is how they raised capital- Municipal Bonds, PIPE and finally equity. Also owning this have a few options, Common stock, through BOC, and finally Warrants.
Excellent write up of a unique real estate company. They have had growing pains but it will be interesting to see them transform from publicly traded construction company to a cash flow machine over the next 5 yrs.
Thanks for sharing your unique thoughts on SKYH and its BM, growth possibility. I'd like to ask about the specific ways of international expansion and strategies. Is there some quotes that has been disclosed?
Me ha gustado mucho el artículo. Tengo una pequeña participación en $SKYH y estoy planteándome incrementarla. ¿Crees que el riesgo de dilución es muy alto? Gracias y un saludo!
Good progress this quarter: 2024 Q2 Consolidated Revenues increased 109% as compared to Q2 2023 and 50% as compared to Q1 2024 . The weighted average revenue run rate as of today at Sky Harbour’s four operating campuses is approximately $39 per rentable square foot, exceeding original portfolio projections of $29.50 per sq feet by approximately 32%. . Other good news is they can finance using muni bonds at much lower cost of capital than the cap rates they are getting. The funding proposals have indicative terms ranging from five to thirty years and indicative fixed rate interest rates ranging from 4.55%-5.80%.
Why don't FBO/construction companies address this shortage and provide exactly the same product that Sky Harbor does? Why is there a shortage if rich people can contract a hangar construction company?
Sky Harbour has mentioned in their latest earning calls as well that these negotiations take time. They mentioned that they’ve been working on a lease for 5+ years if i’m not wrong
I don’t even think FBOs are a competitor, as highlighted by management. The service offering is completely different, and the way I see right now, there’s a barrier to entry that isn’t easy to overcome
If they’re able to charge a higher price per square foot to its tenants than traditional FBOs, it can afford to pay more for ground leases. That gives them a competitive edge when negotiating with airports, especially in space-constrained environments where the highest-value use of land wins.
I would assume because there’s a lack of space. The thesis is centered around this moat of limited availability and extremely low growth in airport construction. These leases are very long as well, I think
How many years do you think it will take to get to the 50 locations you mention? Im thinking that some institution with a large amount of capital to put to work may buy this as a platform because there is a long runway of investment opportunity at excellent cap rates. It would be good holding for a Berkshire or an insurance co that has a lot of cash to put to work.
If they continue to open 6 campuses per year they would have 50 in about 8 years or maybe less, but it would likely take a few more years to stabilize all campuses, so 10 years is a reasonable assumption. But again, this hinges on how many campuses they open per year.
Great write up on this obscure company. I am a big fan of the comapny and rooting for it. A few more things to discuss in the followup may be is how they raised capital- Municipal Bonds, PIPE and finally equity. Also owning this have a few options, Common stock, through BOC, and finally Warrants.
Excellent write up of a unique real estate company. They have had growing pains but it will be interesting to see them transform from publicly traded construction company to a cash flow machine over the next 5 yrs.
Thanks for sharing your unique thoughts on SKYH and its BM, growth possibility. I'd like to ask about the specific ways of international expansion and strategies. Is there some quotes that has been disclosed?
I don’t believe there are any quotes where they have clearly stated that they intend to expand internationally.
Buenos días desde España!
Me ha gustado mucho el artículo. Tengo una pequeña participación en $SKYH y estoy planteándome incrementarla. ¿Crees que el riesgo de dilución es muy alto? Gracias y un saludo!
Good progress this quarter: 2024 Q2 Consolidated Revenues increased 109% as compared to Q2 2023 and 50% as compared to Q1 2024 . The weighted average revenue run rate as of today at Sky Harbour’s four operating campuses is approximately $39 per rentable square foot, exceeding original portfolio projections of $29.50 per sq feet by approximately 32%. . Other good news is they can finance using muni bonds at much lower cost of capital than the cap rates they are getting. The funding proposals have indicative terms ranging from five to thirty years and indicative fixed rate interest rates ranging from 4.55%-5.80%.
Yea I was really pleased with the results!
Why don't FBO/construction companies address this shortage and provide exactly the same product that Sky Harbor does? Why is there a shortage if rich people can contract a hangar construction company?
Sky Harbour has mentioned in their latest earning calls as well that these negotiations take time. They mentioned that they’ve been working on a lease for 5+ years if i’m not wrong
And if there is a shortage, why don’t FBOs also raise prices so they can build more?
I don’t even think FBOs are a competitor, as highlighted by management. The service offering is completely different, and the way I see right now, there’s a barrier to entry that isn’t easy to overcome
And why aren’t FBOs a competitor? Do a google sat image, the infrastructure is the same. FBOs offer hanger space, as does SKYH.
If they’re able to charge a higher price per square foot to its tenants than traditional FBOs, it can afford to pay more for ground leases. That gives them a competitive edge when negotiating with airports, especially in space-constrained environments where the highest-value use of land wins.
A FBO with an unproven prototype/business model wouldn’t be able to compete, imo
I would assume because there’s a lack of space. The thesis is centered around this moat of limited availability and extremely low growth in airport construction. These leases are very long as well, I think
So why is sky harbor able to expand if FBOs are not?