Sky Harbour Group (SKYH) 17th Annual LD Micro Main Event Conference summary

Business overview and market opportunity

• Focuses on aviation infrastructure by securing long-term ground leases at airports and constructing hangars for private aviation clients.

• Targets high-net-worth individuals, Fortune 500 companies, and charter operators, with a primary revenue stream from hangar rentals and some fuel sales.

• Market demand is driven by a growing and larger business jet fleet, with legacy hangar infrastructure unable to accommodate new, larger aircraft.

• Private sector investment is necessary due to limited public funding and underinvestment by traditional FBOs.

• Expansion goal is to reach 50+ airports, up from 14 currently under ground lease, with 22 targeted by end of 2025.

Financial strategy and capital structure

• Utilizes a mix of equity (PIPEs) and tax-exempt Private Activity Bonds for funding, achieving attractive long-term fixed rates.

• Recent PIPE closed for $65–$70 million, paired with $130–$250 million in new tax-exempt debt planned for early next year.

• Current assets total about $150 million, with $240 million in additional capital earmarked for new developments.

• Long-term plan is to use internally generated cash flows to fund future growth, creating a self-sustaining development cycle.

• Average ground lease term is 48 years, with maintenance CapEx at about 1% of development costs.

Operations, occupancy, and competitive landscape

• Four operational campuses (San Jose, Houston, Nashville, Miami) are at 100% occupancy, with some ability to exceed that via shared hangar space.

• Tenant base is primarily corporate and high-net-worth individuals; few charter operators due to their operational needs.

• Tenant leases average 3.5 years, with 3–4% annual escalations, often tied to CPI.

• No direct national competitors; FBOs are closest but focus on fuel sales and local hangar provision.

• Competitive moat exists due to the difficulty of securing airport ground leases and aviation-specific complexities.