Pure Cycle Corp (NASDAQ:PCYO) Q3 2020 Earnings Conference Call - Final Transcript

Jul 07, 2020 • 04:00 pm ET


Pure Cycle Corp (NASDAQ:PCYO) Q3 2020 Earnings Conference Call - Final Transcript


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Mark Harding

this year. We'll talk a little bit about that and a little bit of color about that later in the presentation. And then we also have some mineral estate, where we collect oil and gas royalty revenues from the oil and gas interest that we own on properties that we own.

I'm going to Slide 4, gives you kind of an overview of some of the water utility assets that we have. The water, kind of the sandbox that we're in, we're in the Southeast part of the Denver Metropolitan area. Some of the infrastructure and the water that we're developing.

Slide 5 draw your attention, you know the Master Planned Community has teamed Sky Ranch. It's about 930 acres along I-70 corridor, just east of Downtown, directly south of the Denver International Airport. If you look at the project as a whole, the 930 acres, we should be developing something close to about 3,400 single-family homes, and that's going to be a mix between detached, paired product where you have a duplex product or attached product, some townhome product, and then some multifamily product, and then we have a little over 2 million square feet of commercial property zone because we have about half a mile of frontage along the Interstate. So we'll have a lot of commercial development that also is incorporated in this development plan as well. One of the units of measures that we measure our water utility segment by is something we call single family equivalent. So if you just look at Sky Ranch, we have about 5,000 single family equivalent connections at Sky Ranch.

So let me get into kind of the bulk of the update. Slide 6 will kind of give you a bullet point inventory of the lots that we have in our first phase. We have 506 lots in our first phase. We delivered, finished lots, almost 400 -- 391 of those finished lots. We completed all of the remaining work for the remaining 115 lots. So while we have not actually been paid for the remainder of the 115 lots, I would say we're probably within $1 million of our investment of completing all of the infrastructure, all of the roadways, all the landscaping for this first phase of the project.

We have about 120 folks moved into the community and we have about 255 building permits, which is inclusive of that 120. So if you kind of do the math on those two, we probably have about 135 homes under construction from the three builders that we have. Our three builders in this phase are Richmond American Homes, Taylor Morrison, and KB Home. All three national homebuilders, all have been terrific homebuilders to work with. So we've been very, very pleased with the working relationship that we have with each of our homebuilders. Both our water and our wastewater systems for this first phase have been completed are operating, are delivering both water and wastewater service to families, homes