Sky Harbour Group (SKYH) Investor presentation summary

Business model and market opportunity

• Secures land at key US airfields to develop and lease private hangar campuses, targeting over 50 airfields and aiming for a mid-teens stabilized yield on cost, equating to approximately 60% return on equity.

• Addresses a chronic deficit in US business aviation hangar space, with a 73% increase in fleet square footage from 2010–2025 and net growth exceeding 3 million square feet per year.

• Operates a differentiated Home Base Operator (HBO) model, offering medium to long-term leases, premium real estate, and stable, contracted cash flows, less reliant on cyclical fuel sales.

• Employs a proprietary site acquisition process led by a veteran team, leveraging multiple acquisition strategies and targeting high-demand metro centers.

• Vertical integration in construction and design reduces costs, expedites development, and enhances build quality, with in-house steel manufacturing and standardized hangar prototypes.

Financial performance and funding

• Construction activity and revenues are accelerating, with the company achieving positive operating cash flow.

• Portfolio 2 is fully funded with $393 million in debt and $76 million in equity, supported by a $243 million JP Morgan facility and $150 million in Series 2026 bonds.

• Series 2026 bonds are tax-exempt, five-year maturity, fixed at 6.00%, and were three times oversubscribed by 18 institutional investors.

• Ground lease expenses at key airports remain low relative to average revenue run rates, supporting attractive project economics.

• Illustrative project economics show a $30/SF equity investment can yield $450/SF equity value at stabilization, a 15x pre-tax MOIC.

Project pipeline and operational scale

• Construction pipeline is accelerating, with major deliveries such as BDL by December 2026 and SLC by March 2027.

• OPF Phase 2 campus achieved 68% leasing at $51.56/SF, exceeding original underwriting and prior phase lease rates.

• Standardized hangar design expedites permitting and construction, lowers costs, and minimizes risk across the portfolio.

• In-house steel manufacturing and vertical integration have significantly increased efficiency and reduced reliance on outsourced contractors.

• Ability to issue tax-exempt private activity bonds provides lower interest costs and longer tenures, attracting repeat institutional investors.