Sky Harbour Group Corporation Announces its 2023 Financial Results; Updates on New Ground Leases, Construction and Hangar Leasing; Injects Equity into Obligated Group and Files Various Registration Statements with SEC - Seite 2

• New ground lease at SJC, encompassing an existing hangar facility to be made operational over the coming several weeks, and land for additional future development.
• New ground lease at ORL, with expected construction commencement in Q2 2025.
• Construction of Phases 1 in Denver, Phoenix, and Dallas delayed by 3-4 months, with an estimated $26 - $28 million non-recurring remediation cost. Revised expected completion dates are December 2024, February 2025, and March 2025, respectively.
• Houston, Nashville, and Miami campuses are stabilized at 95% leased, with potential full occupancy expected at over 100%. The San Jose facility is 58% pre-leased, with an expected operations start date of April 1, 2024.

Site Acquisition Update

The Company and the City of San Jose, California executed a 7-acre ground lease at SJC (lease #10) which includes approximately 60,000 square feet of existing hangar and office space, over 100,000 square feet of aviation ramp, and 120 land-side automobile parking stalls. The initial term of the lease is twenty years, and future development is expected to increase hangar square footage by approximately 75%. San José Mineta International Airport serves the south San Francisco Bay Area, including Silicon Valley.

The Company and the Greater Orlando Airport Authority executed a ground lease at Orlando Executive Airport (ORL) (lease #11). The 50-year ground lease encompasses twenty acres, accommodating more than 200,000 square feet of hangar, with Phase 1 construction expected to begin in summer 2025. The Orlando Executive Airport is the premier general aviation airport in Central Florida and is located approximately three miles east of downtown Orlando. The Greater Orlando area is the second-fastest growing metro center in the country by GDP.

Exclusive ground-lease negotiations are underway at five new target airports. Formal ground lease proposals have been submitted or are pending at an additional eight new target airports.

The Company expects to have executed ground leases at three additional airports by the end of 2024 and an additional six airports by end of year 2025 representing an additional aggregate rentable square footage of more than 2 million square feet, primarily in markets with higher per-square-foot tenant rents than those in the first Obligated Group’s six airports.