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Sky Harbour, which builds and leases hangar campuses for business aircraft based there, reported third-quarter results on Nov. 10, with revenue up about 45% from a year earlier. On the earnings call, CEO Tal Keinan said a hangar that comes up for re-lease goes at an average of about 20% above the rent it had reached by then.
If you base an aircraft at a Sky Harbour campus, your lease rises each year by CPI with a 4% floor, and the next lease on the same space starts roughly 20% higher, Keinan said. His description of the pattern in the release is "an increasingly predictable schedule of step-ups in revenue and NOI," meaning net operating income. If you are looking for space in San Jose, Dallas, Addison or Miami, the company's numbers point the same way. San Jose's second phase, not yet built, is 100% pre-leased, and Keinan said there is a very long waiting list in San Jose and Miami. The company doesn't say how the 20% breaks out by airport.
The 132% needs a definition. Sky Harbour measures economic occupancy as the square footage of aircraft under lease divided by a campus's rentable square footage. The company says the figure can exceed 100% in semi-private hangars because aircraft can be stacked and those leases are priced differently. San Jose's Phase 1 reported 100% occupancy and 131.7% economic occupancy at the end of June. The higher figure reflects how aircraft are accommodated in semi-private hangars, not a hangar operating beyond its physical capacity. Miami-Opa Locka's 92%, meanwhile, is a combined figure for both phases, reported as occupancy rather than economic occupancy.
Campus
Aug. 11 release
Nov. 10 release
Miami-Opa Locka, both phases
80%
92%
Dallas Addison Phase 1
98%
101%
Phoenix Deer Valley Phase 1
76%
77%
Denver Centennial Phase 1
44%
57%
San Jose Phase 1
132%
132%
Sky Harbour called the August figures for Addison, Phoenix and Denver "occupancy" and the November figures "economic occupancy." The company did not clarify whether the measurement basis changed. Miami's figures represent combined occupancy across both phases, while San Jose's figures represent economic occupancy.
Denver is the slow one, though it has moved up from 44% in May and August. Keinan said a first phase in a market where Sky Harbour isn't yet known takes longer. He pointed to 14 months to lease up Miami's first phase and 18 in Nashville, and said he wishes Denver would move faster.
Sky Harbour raised its revenue guidance for the year to a $44 million to $48 million annualized run rate, up from $42 million to $46 million. It cut its adjusted EBITDA guidance to break-even to $4 million, down from $4 million to $6 million. CFO Francisco Gonzalez blamed timing: the delayed opening of Addison Phase 2, now expected in February 2027, and costs ahead of opening at Bradley International Airport.
Why it matters
The detail worth noting is Keinan's description of how Sky Harbour prices a new campus. It fills the hangars fast at what he called reasonable rent on short terms, then, he said, reprices toward stabilized rents when those leases roll. Tenants should read the fine print. Keinan called Bradley, a market where Sky Harbour has never operated, the big test of how fast a new campus fills.
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