Sky Harbour Group Corporation (NYSE: SKYH) stock demonstrated a substantial uptick of 10.68%, concluding the trading session on Friday at $8.19. This notable surge in Sky Harbour stock during the weekend session was catalyzed by the disclosure of its quarterly financial performance.
SKY Harbour (SKYH) released its financial results for the third quarter of 2023 on Friday. In addition to the financial figures, the company disseminated operational highlights for the stated period and provided comprehensive business updates. Notably, SKYH maintains robust liquidity and capital resources, with cash, restricted cash, and US Treasury investments totaling approximately $130 million as of September 30, 2023.
The closure of a $42.8 million PIPE common stock issuance on November 2nd significantly bolstered cash resources, serving as “equity growth capital” alongside anticipated future debt funding. As of November 8, 2023, the Houston, Nashville, and Miami facilities are leased at rates of 94%, 86%, and 63%, respectively. SKYH anticipates achieving full occupancy by the end of Q4 2023.
The construction progress of phase 1 campuses in Phoenix and Denver is advanced and are expected March 2024 and May 2024 respectively. On the other hand, Addison (Dallas) Phase 1 recently commenced, with expected to be completed by December 2024. Besides the Chicago Executive Airport ground lease already announced, SGH has been in exclusive negotiations with five additional airports for ground leases.
These locations, situated in key metro markets, are expected to yield average projected tenant rents surpassing those in the initial six campuses. The aggregate potential square footage of Sky Harbour hangar capacity at these five airports and Chicago Executive is estimated at approximately 1.5 million square feet. By Q4 2023, two of these ground leases will be finalized, and by Q2 2024, the remaining three will be finalized.
The burgeoning project pipeline includes dozens of other airports, and the company faces the challenge of refining the Sky Harbour model while aggressively expanding operations across North America. For SKYH, acquiring high-quality sites is part of its ongoing mission. Its site acquisition team works diligently with equity partners to accomplish this goal.
