Harbor Custom Development Inc’s CEO Sterling Griffin said the company remains confident in its diversified portfolio and long-term success after navigating real estate market challenges during 2022.
“As we near completion of construction and continue to make progress with the rent up of our first wave of multi-family projects, we believe 2023 will be a new chapter for Harbor Custom Development,” Griffin said in a statement accompanying the company’s fourth quarter and full year 2022 financial results.
“We continue to execute on our multi-family strategy and believe the actions we took in the fourth quarter will enable us to improve our operating results and drive further value for our shareholders."
Griffin noted that the company’s fourth quarter and full-year 2022 results came in below internal expectations, with market challenges including supply chain disruption contributing to delays in the construction of multi-family projects, rising interest rates, and overall decreased buyer demand.
“Despite these challenges, we made strategic progress transitioning focus towards our multi-family projects to help offset the impact of the fastest interest rate increase cycle since the 1980s,” he said. “We also enacted significant cost control measures which better positions us to navigate near-term uncertainty."
For the fourth quarter, ended December 31, 2022, the company achieved revenue of $4.8 million and a gross loss of $5 million, or a basic loss per share of $17.47.
In the year-ago quarter, the company’s revenue was $26.3 million with a gross profit of $10.9 million, or basic earnings per share of $5.14.
For the full year 2022, revenue was $55.4 million compared to $72.4 million in the previous financial year.
Its gross loss for the year was $0.5 million, or a basic loss per share of $35.29, compared to a profit of $21.9 million, or basic earnings per share of $8.56.
Harbor Custom Development is a real estate development company involved in all aspects of the land development cycle including land acquisition, entitlements, construction of project infrastructure, home building, marketing, sales, and management of various residential projects in Western Washington's Puget Sound region; Sacramento, California; Austin, Texas and Punta Gorda, Florida.
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