Sky Harbour Group (SKYH) investor relations material

Business overview and growth strategy

• Focuses on aviation infrastructure, developing and leasing hangars for business aircraft at airports nationwide.

• Operates via long-term ground leases, targeting high net worth individuals, corporations, and government/charter operators as tenants.

• Provides ancillary services such as fuel sales and aircraft towing, enhancing revenue streams.

• Currently active at 23 airports, with a goal to expand to 50+ locations.

• Emphasizes securing new ground leases as a core competency to drive future growth.

Market dynamics and competitive positioning

• Business aviation fleet size and average aircraft footprint are steadily increasing, driving demand for hangar space.

• Hangar supply has lagged due to airport ownership structures and legacy FBOs focusing on fuel sales rather than infrastructure.

• Differentiates as a Home Base Operator, offering private, secure, and customizable hangar spaces.

• Internalized design, construction, and manufacturing processes to control costs and improve efficiency.

Financial performance and unit economics

• Targets low to mid-teen NOI yields, with tax-exempt municipal bonds boosting return on equity to 20%-30%.

• Achieved EBITDA break-even as property-level revenues now outweigh corporate expenses.

• Average construction cost is $300/sq ft, with stabilized rents at $40/sq ft and additional $5/sq ft from fuel sales.

• Operating expenses range from $7-$10/sq ft, resulting in $35-$37/sq ft NOI.