SKYH
✈️ Sky Harbor develops and leases luxury private jet hangars in the US, capitalizing on high demand from ultra-wealthy clients and scarce supply due to limited airport space and no new airport construction since 1995.
🏆 The company aims to become the first mover, securing long-term leases (30-40 years) at key airports, potentially creating local monopolies as space runs out for competitors.
💰 Current valuation (~$11/share) appears justified solely by its existing 16 projects, suggesting significant upside potential from the planned expansion to 50 campuses is currently available for free.
@adriarivero:
“Sky Harbor is executing very well. It’s a different idea, maybe known from Emerito Quintana. It trades on the NYSE. It provides private jet hangars, not the jets themselves. The thesis is high demand, low supply. It targets ultra-rich clients like rappers Rick Ross, DJ Khaled, and entrepreneurs like Jeff Bezos and Elon Musk. It’s like a real estate company: gets permits, builds luxury hangars (for jets, luxury cars, etc.), and rents them out, aiming to become a REIT. It’s interesting because private jets are increasing (around 22,000 in the US, projected 4-5% growth). The US has 65% of the market. The structural problem is no new airports are being built; some are closing. Existing airports have little space for luxury hangars. Sky Harbor targets 50 airports, currently has 16 projects (built or under construction), starting with Tier 1 locations like New York or San Jose. Even with 50 campuses, they’d only house about 1000 jets (4-5% of the total). They differ from existing FBOs (Fixed-Base Operators), which are more communal, target charter/fractional owners, and make money mainly from fuel sales (more cyclical). Sky Harbor targets exclusive clients wanting private hangars, offering higher value and charging 80-100% more rent than FBOs, yet rent is only 1-3% of a jet’s cost ($30-80M). FBOs face hurdles entering this luxury space: regulations, and many are owned by private equity with short exit horizons (5-7 years), unsuitable for long hangar development timelines (negotiation, permits, construction take years). Sky Harbor’s advantage is being the first mover, locking up airport space with long leases (30-40 years). Once built, there’s no more land, creating local monopolies. The best companies build moats the market hasn’t noticed yet. The most interesting part: the current valuation around $11/share is justified just by the 16 existing projects. Calculating their value using a standard 6.5% cap rate and deducting financing costs yields about $12 per share. This means you’re paying zero for the future growth from the remaining 34 potential sites.”
Watch the exact part of the video where @adriarivero talks about Sky Harbour Group Corporation here:
Watch the video on YouTube
Read more articles analyzing Sky Harbour Group Corporation (SKYH) at the following link. SKYH stock.
