Prepared remarks
Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sky Harbour 2026 Second Quarter Earnings Call and Webinar. I would now like to turn the call over to Francisco Gonzalez, CFO. Please go ahead.
Thank you, operator, and good afternoon, everybody. And welcome to the 2026 Second Quarter Investor Conference Call and Webcast for the Sky Harbour Group Corporation. We have also invited our bondholder investors and lenders in our borrowing sub-series, Sky Harbour Capital, Sky Harbour Capital II, and Sky Harbour Capital III, to join and participate on this call as well. Before we begin, I have been asked by counsel to note that on today's call, the company will address certain factors that may impact this and next year's earnings. Some of the information that will be discussed today contains forward-looking statements. These statements are based on management assumptions which may or may not come true, and you should refer to the language of Slides 1 and 2 of this presentation as well as our SEC filings for a description of the factors that may cause actual results to differ from our forward-looking statements.
All forward-looking statements are made as of today, and we assume no obligation to update any such statements. So now let's get started. The team with us this afternoon, you know from our prior webcast: our CEO and Chair of the Board, Tal Keinan; our Treasurer, Tim Herr; our Chief Accounting Officer, Mike Schmitt; Accounting Manager, Tori Petro; and our Assistant Treasurer, Andreas Frank. We have a few slides we want to review with you before we open into questions. This webcast today will be limited to those from the research analyst community that have us on their coverage. We decided that, as you may have remembered in the past, we have run out of time usually, and not all of the questions get addressed. So we decided to change to this structure. Obviously, we welcome any and all investor questions afterwards through our investor email at investors@skyharbour.group. I will make an effort to respond promptly.
We just filed a few minutes ago our 10-Q with the SEC and our second quarter financials for Sky Harbour Capital related to the Series 2021 bonds, and for the Sky Harbour Capital III related to the Series 2026 bonds with MSRB/EMMA. We also just filed a prospectus supplement to our existing shelf registration program. Let's get started then. If we could go to the slide with our recent results. At the end of the second quarter, on a consolidated basis, assets under construction and completed construction reached over $393 million. That is a $65 million increase year-to-date and the highest in 6 months in our corporate history. What this means is that the pace of investment and new construction at Sky Harbour continues to accelerate, and these columns will continue to grow at an ever higher incremental rate. Q2 revenues experienced an increase of 50% over a year ago and 13% sequentially, given the new campus openings in the past year and increases in occupancy and rental rates.
Operating expenses in Q2 continue to increase in tandem with new campus openings, impacted in particular by increases in campus headcount and the non-cash expense accruals of new ground leases entering in the past year, which are not yet constructed or in operations. As in the prior quarter, a significant amount of increase in OpEx is related to the signing of new ground leases at the end of last year, and with that expense, more than half is non-cash accruals of new ground lease payments into the future. We look forward to benefiting from the operating leverage for our Phase 2 with Miami-Opa Locka, which has now been open for 4 months, and later this year with the opening of Addison Phase 2. We expect gross profit margin expansion with these two Phase 2, with the same people and fuel trucks serving basically a doubling of those respective hangar campuses. We strive to keep SG&A in check as we grow, keeping frugality front and center in our expense and cost management initiatives.
Cash flow provided by operating activities reached positive territory of roughly $0.5 million, reaching a significant milestone in the company's history. Going forward, equity proceeds will only go to new project CapEx and not to fund current operating expenses like in the past. This is a summary of the financial results of our wholly-owned subsidiary, Sky Harbour Capital and its operating subsidiaries that form the obligated group. Assets under construction are still growing as we complete Opa Locka Phase 2 in Q2 and will soon stabilize with the completion of Addison Phase 2 at year-end, which, as many of you know, is the last project of the obligated group's first vintage of campuses that were financed by the Series 2021 bonds. Revenues of the obligated group increased 79% year-over-year and 22% sequentially. We expect continuous step function increases in revenues in Q3 and Q4 with the continued new leasing of Phase 2 in Opa Locka, and then Q1 and Q2 of 2027 after the opening of Addison Phase 2.
As I mentioned before, we expect a marked increase in gross profit and EBITDA margin expansion with those added revenues and limited increase in operating expenses, given the ability to use the same personnel and equipment with expanded campuses that double in size. Cash flow from operations reached almost $3 million in the quarter and increased from $2.2 million a year ago. This constitutes 10 consecutive quarters of positive cash flow from operations, providing ample and growing debt service coverage for our bondholders and bank facility lenders. Let me pass it on to Mike Schmitt for a discussion of our adjusted EBITDA calculation, something we did a few quarters ago, but it's important to refresh given the importance of this adjustment to our EBITDA.
Thank you, Francisco. As with prior quarter, I'd like to take this opportunity to provide additional context regarding elements of our reported results. We provided a reconciliation from our GAAP net income results for the quarter ended June 30, 2026. We believe this measure is important due to the impact of non-cash items within our reported results, particularly the non-cash operating expenses at our campuses that are not yet operational, stock compensation expense, and gains and losses arising from marking our liability-classified warrants to market. As seen in the diagram, adjusted EBITDA improved to approximately negative $0.9 million in Q2 2026. This is driven by continued improvement of results at our operating campuses where revenues continue to increase as operating expenses remained relatively flat. Adjusted EBITDA is supplemental in nature and is not calculated in accordance with GAAP. Our definition of EBITDA and other non-GAAP measures can be found in the Management Discussion and Analysis section of our Form 10-Q. And with that, I would like to pass it to Tal.
Thanks, Mike. All right, leasing update. I'm not going to go through all the cells on this chart. Let me just highlight a couple things. First, take a look at APA 1. That's Denver Centennial Phase 1. One of the things that should jump out on this chart is our relatively low economic occupancy. So leasing has been slow in Denver. That's just the state of affairs. Not all of these lease up the same time. Some take longer than others. I will point to examples like Miami and Nashville. Miami took almost a year and a half to lease up Phase 1, and Nashville took even longer than that. Both of those are very, very robust cash-flowing campuses today. So we're not concerned about it. We wish we could move faster on this, but that is the state of affairs. Two other cells that would jump out, I think, are the average rents per square foot in DVT 1, that's Phoenix; and Addison 1, that is Dallas, ADS 1.
So a couple things to point out here, and this sort of obscures the reality, and I think if people have been paying attention on the last couple calls will note. Our leasing strategy on specifically these three airports includes offering short-term leases at introductory rates just to get to full occupancy as quickly as possible. Get the cash flowing, get the debt serviced, and then go back and revisit again. These are short-term leases. Go back and revisit. The longer-term leases, of which all of these campuses have longer-term leases, we do sign at target or, actually, in all three of these cases above target levels. To give you a sense, in Dallas, our multi-year tenants are paying rents in the 40s and 50s per square foot. So the ambition is as we proceed here, and we're pretty close to, take Dallas as an example, pretty close to 100% leased at Dallas, is as these short-term leases come to term, start cycling back and replacing them with real long-term residents at the rates that we're looking for.
So that explains those numbers. Yes, if we had done the same thing, I think we didn't exactly do this in Nashville and Miami or Houston at the beginning. But Nashville is one that started even with long-term leases in the 20s. And you see over a relatively short time that comes up and grows into pretty robust rates. So again, we expect that trend to continue on those. The last thing I'll call everyone's attention to on this slide is the re-lease update, lower left-hand corner. Just a reminder to people of what that metric is, is in the last 12 months, we have had 100,360 square feet of hangar leases come to term, expire, and get renewed. In nearly all those cases, it's the same resident who is renewing, and the average step-up from the last year of the first lease term to the first year of the second lease term is 19%. You'll notice that's a few points down from last quarter. The main reason for that is that a lot of these leases are now not the second term but the third term of the lease, where we've expected and will continue to expect a bit of a smaller bump on that one.
We're closer to what we would call the actual market rates. All right, next slide is site acquisition. Again, more or less speaks for itself. I've said on these calls how I think this company should be valued, which is look at the total rentable square footage of hangar that the company has secured under ground lease, not developed yet, but secured under ground lease, which is that 4 million number on the right. Multiply that times the Sky Harbour equivalent rent. And again, everyone can make their own rent projections on that. As you'll see, we've beaten Sky Harbour equivalent rent on all of the existing campuses. So we think that's a pretty good conservative number to use. That gives you a top-line revenue number. We'll talk a little bit about operating margins in a few slides. But that is your available revenue capture, which is currently under ground lease. And again, I'll emphasize this, certainly on the next, at least, year of quarterly earnings calls, is the entry ticket to this entire business is the ground lease.
That is the most important move. At the extreme, this could be a site acquisition company that hands off construction and operations to somebody else. Now, we don't think we should do it that way, but fundamentally that is where the value gets created, is when the ground lease is signed. So take that number. You can put whatever multiple you want on that or cap rate. And then discount it for all of the risks that we're all familiar with: development risk, construction risk, lease-up risk, operating risk. All that stuff exists. It is appropriate to discount those and obviously discount that for the time it takes to actually build these campuses. But as you'll see, our focus is increasingly on Tier 1 airports. And we have another slide on that, so I'm not going to get deeper into that now. Next slide. One thing that I want to highlight and maybe just head off some concerns, and we've heard this from a number of people, and this is something that we thought of ourselves as this was happening.
As you'll notice, there is a lot of expansion going on in California, just as there's been quite a bit of capital flight among the most wealthy residents of California. We're seeing that firsthand because those people are signing up in our Miami, Nashville, Dallas campuses. We've got a lot of wealthy California refugees, so to speak, in those campuses. The reason that we continue to invest in California and grow it, the first part is self-evident. Look at the rents that we're getting in California. Other than the New York market, it's probably the best market in the country. That's both Bay Area and Southern California. But if you look at the trend as well, most of the people who have left, and it's well over $1 trillion of wealth that's left in the last 12 months, most of those people return with a frequency that justifies keeping permanent hangar space. And a lot of our residents in California exactly fit that bill.
The people who are no longer domiciled in California but visit enough that they keep hangar space with us. The second is, and we actually put it on the slide, is of that $1 trillion-plus of wealth that's left California in the last year, the vast majority of that is 10 people. Ten people constitute the majority of that flight. And in the same period, 37 new billionaires have been minted in California, primarily Northern California. I think the insight that will be intuitive to everyone on this call is the average number of aircraft owned by somebody with, let's say, $2 billion is not significantly lower than the average number of aircraft owned by somebody with $80 billion. So our market in California continues growing, even as wealth on a net basis is leaving California. So expect even more emphasis on California site acquisition in the coming quarters. We have very, very high conviction on that market.
Okay. Our development update. So this is one of the areas where, as I said, the rubber is meeting the road. We spent a lot of time talking about our gear-up on the development and construction side of the business. A lot of increase in capacity, the vertical integration being completed, our entry into general contracting, building our own campuses. All of that was put in place to achieve scale. And right now that's where that's being borne out. So we are on track both on budget and on time with all of the developments in this plan. And you see some pictures on the right from the campuses that are going to go open soon. Bottom right is Bradley, Connecticut. That is the nearest term. We've got Dallas, Addison. Actually, we don't have pictures of that, sorry. And we have Salt Lake City, which is going to be delivered early next year. And we'll talk a little bit about construction costs as we go, but again, this should give people a sense of just how much is under development at Sky Harbour right now. And with that, let me turn it back to Francisco to talk about liquidity.
Thank you, Tal. We have closed the quarter with significant liquidity with over $207 million in cash and U.S. treasuries, and about $130 million still available from J.P. Morgan committed construction loan. As Tal mentioned, those red bars in the prior slide, our pace of CapEx expenditure is accelerating. Very important to note that. These amounts that you see in this slide into the liquidity exclude the fresh $40 million cash proceeds we received earlier today at the holding company as part of a registered direct equity placement that settled today. As in the past, from time to time, we have received reverse inquiries of investors interested in coming to our company. Discussions for the past couple of weeks with two particular investors who have strategic value to us, especially from a leasing standpoint, have resulted in a $40 million straight common issuance at $10 per share, a roughly discount of 4.6% to the last 30 days volume-weighted average price of $10.49 through this past Monday when we executed the stock purchase agreement for this placement.
This equity issuance was very cost-effective, raised through direct placement from our shelf registration. We have now cumulatively surpassed $300 million in equity investments by our shareholders in the company. We decided to take these funds now as a practical measure as we await the potential exercise of our public warrants at the end of next January. As many of you know, a fully exercised public warrant will yield around $94 million in primary proceeds for the company. We see the current raise, combined with the potential for an additional $94 million in January, as covering all our equity needs at the company for the foreseeable future, and maybe indefinitely as we await increasing operating cash flow to be available in the future to reinvest in more projects. Just want to take a second to reiterate our guidance for the end of the year that we introduced back in May. On revenues, we reaffirm that we expect to finish the year with an annualized run rate of revenues between $42 million and $46 million, up from the $39.4 million run rate in this past quarter.
This increase will be driven by the incremental revenues of Phase 2 at Opa Locka, as it approaches full occupancy and increased occupancy at DVT and APA. Similarly, we reaffirm that adjusted EBITDA will end the year at an annualized run rate of between $4 million to $6 million, up from an annualized run rate of still negative in Q2. Let me now pass it back to Tal for a discussion on the highlights and next steps in the four pillars of our business model.
I'm sorry, I think we're muted. I'm going to start that again. Yes, thank you. On the site acquisition side, the theme of the last quarter and going forward will continue to be big plays at Tier 1 airports. If you can expand on a Tier 1 airport, put 300,000 or 400,000 square feet on a Tier 1 airport, that is worth a lot more than three smaller sites on a Tier 2 or Tier 3 airport for that matter. Obviously, the revenue per square foot is higher, but also your OpEx, your operating margin goes up, because two phases, and we're seeing this right now very clearly in Miami, two phases cost almost the same to operate as one phase. But your revenue goes up, in this case, nearly doubles. So look out for that theme at the Tier 1 airports. On the development side, you've watched all the steps we've taken to scale up the vertical integration all the way to general contracting. Now it's time to prove it out empirically.
As I mentioned a couple slides ago, we are on schedule, on budget at all of the airports in the pipeline right now. So continue watching that. And then prototyping. The third version of our prototype has gone through third-party testing now. It's approved. It's ready to go. And the first airport at which that will launch is Fort Worth, which breaks ground later this year in Q4. We'll show you pictures of that. More functional, costs less per square foot to put up, it's a better hangar for cheaper. So that's obviously what we're striving to do here. On the leasing side, we made the point about those larger footprints that we're trying to see at the Tier 1 airports. The occupancy optimization program, especially in the newer campuses, you'll see this at Opa Locka Phase 2, where we're working to achieve significantly greater than 100% occupancy on these campuses. San Jose is the first airport that we really have maximized that.
We already talked about the re-lease rates. Operations, you'll continue to see operating margins improve if we do this right. That program is in place and already saving us OpEx dollars. And then perhaps most importantly of all is the resident experience itself, which yes, you need the physical asset in order to deliver it, but fundamentally what our customers actually experience is the service. And consistently, we keep going out with resident surveys. We are being ranked by far as the number one home base solution in business aviation. You can see that empirically that we charge a lot more than any other solution and still have waiting lists at all of the stabilized campuses. So we will continue working on that. That is increasingly the key differentiator in the HBO business model. Next slide. Looking forward, so look for more of the same on site acquisition, meaning Tier 1 airports, Tier 1 geographies, and more same-field expansions to the extent that we can do those.
On the development side, over the next two quarters, we're going from a little over 600,000 square feet now under construction to over 1.2 million square feet under construction by year-end. So this is the scale-up that we're talking about. Watch our schedules, watch our budget versus actual. That's what we're going to be trying to deliver on. And at the same time, as we grow and continue to refine the prototype, we'll look for that cost per square foot to continue going lower. On the leasing side, just to give people a sense of what we hope to achieve in revenues: 65,000 square feet of lease that will come to term by the end of 2026 and will need to be re-leased and we'll be looking for step-ups on those; 161,000 square feet that are currently in lease-up, that's places like Dallas and Denver; and then we have 218,000 square feet that is currently under construction but will be slated for lease-up by the end of 2026.
So a big lift for the leasing team. We have an expanded team. We continue with our practice of bringing in military veterans, and our leasing team has expanded, I think exclusively now with military veterans. We talked about pre-leasing on the last call, which had good results in Opa Locka Phase 2. We have Bradley, Connecticut coming up in Q3/Q4. The proof will be in the pudding. Watch to see how that campus opens in terms of occupancy. And then lastly, operations. We speak every time about starting with defense: safety, security, and efficiency come before everything else. We spoke a little bit on the last slide about innovation, working with the residents. The last point that I want to mention, and people have asked about this a little bit because the network has grown to a point where it's starting to make sense, which is people using multiple Sky Harbour campuses. So we just rolled out a program called Sky Key, which gives Sky Harbour network access to some of our top residents, those are our guinea pigs, where they get the full Sky Harbour service exactly as they're accustomed to with all of the privacy and the security that entails wherever they go within the Sky Harbour network.
So that's a new revenue driver in the business. I don't think we've captured much revenue yet. We just rolled it out, but look for that to start contributing to our revenues going forward and contributing to the value to residents of the Sky Harbour offering. With that, I think we are ready for questions.
Yes, operator, please go ahead with the queue from our research coverage analysts. And again, reminder for everybody else to submit questions through investors@skyharbour.group, and we'll answer those promptly in the coming hours and day.
Questions and answers
Your first question comes from the line of Michael Diana with Maxim Group.
Actually, I didn't signal for a question.
Your next question comes from the line of Tom Catherwood with BTIG.
Tal, maybe starting with you. Appreciated all the detail that you gave on leasing at the operating properties, and you quickly touched on the pre-leasing. But it seems like you made some significant progress there in Q2, especially with the second phase in San Jose, which I think is fully wrapped up now before you can start the construction. Can you talk a little bit more about pre-leasing progress, both there, maybe at Dallas as well? And then as you're rolling out that program, are you utilizing the introductory rate strategy that you've done at ADS and DVT and APA? Or are you using a different approach?
Thanks for the question. Thanks for the coverage, Tom. So look, I think what's maybe conspicuous about pre-leasing at San Jose, which is different from Bradley and Dallas, it's much more like Miami Phase 2, is that when you have a Phase 1 in operation in a market, we're, I think, maybe just now becoming a national brand in business aviation. What we've been to date is a collection of local brands in every geography. If you own an airplane in Miami, you're trying to get into Sky Harbour, there's a waiting list at the Sky Harbour in Miami. In other locations, we're just not as known. Again, we think that's beginning to change. Now there is a little more of a national recognition of where we're coming. But it is definitely, there's so much pent-up demand in the Phase 2 markets that pre-leasing goes a lot easier. San Jose too, I mean, I should say, for all three of those airports, there is no introductory rate.
If you think about it, I keep going back to Miami Phase 1, where we opened up 12 new hangars, whatever that was, 160,000 square feet of hangar simultaneously. More hangar than had ever been put on a market at once, as far as we know. I don't think we quite appreciated what that glut would do with a sophisticated customer base who understands there's 12 hangars and 12 vacancies. There's a lot of leverage in that negotiation on the part of the resident. The main concern of a chief pilot or flight department negotiating a lease on an existing campus like Miami at that time was overpaying. He does not want to be the person who volunteered to pay more than their neighbors are paying. When you pre-lease, we're seeing that the main concern is really FOMO. And as we get closer to fully leased, and as you see the rates climbing up, the first leases are signed, they're not introductory rates, but they're lower rates than the last leases signed.
That becomes the primary concern. So when you have a year before you open up, or in the case of San Jose, even more than a year before you open up, there are a lot of people who want to lock in that space and know it's going to be gone. By the way, we have some angry people who did not get space in San Jose Phase 2. And if you gave us a Phase 3 there, we would grab it.
Yes. Maybe sticking with that last comment, what you had said about site selection and this focus on top airports and top markets. You've talked in the past about how airports and municipalities are limited in their ability to push ground rents. But are you seeing airports looking for other avenues to extract higher economics? Maybe it's more required CapEx spending or infrastructure spending or fuel purchases. And because you have a sense of what it takes to do these now, does that give you an advantage over others that might be competing when it comes to site procurement?
I don't think there's any one-size-fits-all answer. What I will say as a rule of thumb is that our interests are aligned with the airports and our interests are aligned with base residents in that geography. When you show up in Atlanta, for example, there is a hangar deficit and the FBO model doesn't really address that deficit because the FBOs make their money outdoors from fueling. You're not allowed to fuel indoors inside a hangar for regulatory fire code reasons. So their revenue is produced outdoors. They want as much outdoor space as possible to get the transient traffic in, get them fueled, and get them out as quickly as possible. That is the business model. So for the municipality or county that wants to maximize hangar space, they're not really getting everything they want out of the FBOs. We come in and show them from the beginning we make our money from rent. Our money is made indoors, not outdoors.
Our interests are aligned with you. We want to maximize our hangar footprint. Our campus layouts have very little ramp and a lot of hangar. They look very different from an FBO's campus layout. That is a winning proposition for a lot of airports. Another factor is repositioning, particularly in heavily trafficked markets such as New York, Southern California, Northern California, South Florida, and the Dallas area. There is simply no room at some airports like Teterboro. Most Manhattan aircraft owners operate departures and arrivals at Teterboro while the airplane lives at a repositioning airport like Bradley, Connecticut, or Trenton, New Jersey. In those situations, there's a lot of pressure to reduce repositioning flights. Those repositioning flights are expensive—fuel, pilot hours—and logistically cumbersome. They also drive environmental impact and noise. We come in and say, when we come to your airport, we're actually going to reduce repositioning.
That is a big deal. From the FBOs' perspective, they are incentivized by fuel sales and outdoor operations. We're incentivized differently. So that's an example of how interests can align between us and the airports.
Your next question comes from the line of Timothy D'Agostino with B. Riley Securities.
Just on the re-lease, I understand the commentary of you kind of expect that to tick down over time. It sounded like it was 23% last quarter and 19% this quarter. But how should we think about that revenue escalation maybe over the next two to three years, given new campuses will come online and those leases will be re-signed? And at ADS and APA, where you're offering introductory rates to fill the hangar, the next lease would have a pretty meaningful escalator. How should we think about that going forward?
I think your instinct is probably right. On those three campuses where we're doing the introductory rate strategy, yes, it's reasonable to expect a bigger bump up on that first re-lease, where introductory rates can be very low on some of those campuses. It's really about just not flying empty while we do the lease-up. And then on those pre-lease campuses where we're actually getting above target rents before we even open the doors, probably less of a bump on the pre-lease. We've avoided trying to make predictions on inflation rates on airports. As I think you know, I think they're going to be largely divorced from CPI. There's just no land to develop on airports and the fleet keeps growing. So we think inflation is baked in, but we're not giving out numbers. We publish the re-lease rate and remind everybody that all of our leases feature annual escalators of CPI with a floor of 4%, and then let people come to their own conclusions about what the inflation rate should be. If you're building a model for a company, one of your most sensitive inputs is going to be your assumption on inflation rates going forward in hangar rents. So we're not making any predictions on that, but we want to provide you with as many tools as possible so you can.
Your next question comes from the line of Ryan Meyers with Lake Street Capital Markets.
First one for me: with the unchanged guide and the roughly $1 million EBITDA loss here in the quarter, can you walk us through the key drivers required to reach the $4 million to $6 million annualized run rate by year-end on adjusted EBITDA?
Let me put some comments and then Mike can jump in as well. On revenues, we're trending nicely to meet or exceed the guidance we provided. We'll look at guidance again in November at the time of our Q3. We'll also start to give guidance for 2027 in the next quarter webcast for Q3. In the context of adjusted EBITDA, we're coming into the coming months with a lot of momentum from the leasing of Opa Locka Phase 2 at an attractive rate. Remember that phase has a lot of operating leverage because it's an extension; we're basically operating with the same staff because it's a Phase 2. That does wonders for gross profits. So you don't need too much to move from the current run rate into the run rate in our guidance to meet the targets that we outlined.
Francisco hit the two main things I was going to touch on, particularly the operating leverage. As these revenues start to come in, OpEx is not moving in tandem. It's essentially very accretive to adjusted EBITDA and will be crucial to achieving the guidance as we expect.
Got it. And then lastly for me, you noted the development team continues to lower costs. Where does current construction cost per square foot stand? How much further opportunity remains through vertical integration? And any prototype improvements you've seen?
We're kind of overdue for resetting a target. When we were up above $300,000 per unit benchmarks we set $250 as a target. We're at about $242 per square foot right now. We do think there's a lot more juice to squeeze, but we haven't actually set a new target yet. You'll see that we're using new construction materials and different construction techniques in the third prototype. The layout of the hangars is going to look very similar, and the outside looks a lot better aesthetically. National procurement is important: we're no longer purchasing fixtures, lighting, and electrical components campus by campus. We're now buying across multiple airports ahead. Those numbers haven't fully manifested yet in the $242. So look for more improvements. On the other side, we could face macro headwinds like construction inflation that we'll have to battle. I think on the next call we're going to have to set another target.
Let me add that as shown on the chart, we're entering a couple of quarters where we'll be in construction on eight and moving to ten different campuses at the same time. The coming quarters will provide a lot of data and economies of scale to turn projections into hard numbers. Our manufacturing facility in Texas is running almost two and a half shifts, and we could go to three, so those economies of scale and volume will be a key driver to keep construction costs low.
Your next question comes from the line of Gaurav Mehta with Alliance Global Partners.
I wanted to ask on your pre-leasing going forward, how should we think about how you would approach pre-leasing? Is it going to be a standard offering across new construction or would you be selective where you implement pre-leasing?
Yes, that's standard going forward. Opa Locka Phase 2 was the first campus we did with that. You'll see Bradley next and then Dallas Phase 2 after that, and then Salt Lake City. We see no reason to change it. We might adjust the pre-leasing goals: right now we're saying half to two-thirds leased by opening—that's our target. Obviously you're leaving a little bit of money on the table when you do it like that because these are long-term leases. This is very different from Dallas, Phoenix, and Denver. So you are locking yourself in at times, and the rates can creep up as you advance with leasing. We might adjust how much we want to get pre-leased over time, but look for pre-leasing to be standard at campuses going forward.
Second question on the ground leases: how many new ground leases are you guys looking to add this year?
We now measure by square footage rather than number of ground leases. The metric is how much square footage of hangar we can put in. Ultimately the real metric is the actual NOI you can capture from an airport. If you had five airports each with 100,000 square feet versus a single airport with 500,000 square feet in a Tier 1 location, the single large site is preferable: lower OpEx and easier lease-up. We haven't put out a square foot target; we've migrated guidance to the bottom line: revenue and EBITDA. We announce airports as they come, sometimes cities announce before we do. We have been working on dozens of airports for years, so some opportunities are starting to come to fruition. As for Denver, leasing has been slower than we expected. It's a disappointment in pace, and we would like to move faster there, but some campuses are faster and some are slower.
Your next question comes from the line of Dave Storms with Stonegate Capital Partners.
This is Maximus. I'll be asking questions for Dave Storms today. Wanted to start off on STR and OPF. Economic occupancy hasn't been running above reported occupancy. Is that mainly a function of the private versus semi-private hangar mix? Or is there something else about those campuses that limits how much you can optimize occupancy?
You're exactly right. Sugar Land is 100% private; the notion of semi-private occurred later in our lease-up strategy. Sugar Land was completely leased up long-term at that point and is private, so it can't go above 100% and is capped. Miami is similar in that the first round of leases were all private. We have a little bit of semi-private in Miami Phase 1; Miami Phase 2 does have semi-private options. We have some full SH34 hangars in Miami Phase 2 that are private, but most of Miami Phase 2 is semi-private, so we should see significantly more optimization there.
I wanted to move forward with pre-leasing. Historically it's taken roughly three quarters for a new campus to reach full lease-up. With pre-leasing, can you see that accelerating, maybe closer to two quarters or even shorter on average?
It's possible. The proof will be in the pudding. Look at the next earnings call to see where Opa Locka Phase 2 stands. We're treating Opa Locka as one campus now; we've done some internal shuffling between Phase 1 and Phase 2. Look to see whether we are at 100% or higher by the next earnings call in Opa Locka. The next data point will be Bradley.
Your final question comes from the line of Joe Gomes with NOBLE Capital Markets.
As you move more into Tier 1, are you seeing that the competitive environment is starting to tighten there? Given the dearth of airport land, how does that play into the old land grabs strategy? Are you trying to be more aggressive in trying to get land at various airports, or focus on the ones you currently have in hand?
We remain aggressive, creative, and patient. Patience and persistence are probably the most important traits. Many of our wins are the result of multi-year efforts, in some cases five or six years working on an airport. We started processes on dozens of airports several years ago, and now some of those are starting to pop. If anything, we're accelerating on site acquisition. No plans to slow down.
Can you clarify the registered direct placement? You mentioned a $40 million issuance and later said certain investors acquired 360,000 shares from Boston Omaha. Can you give more color on that—who approached whom and what that transaction was about?
Some context: at the time of the de-SPAC, there is a shareholders agreement that coordinates processes for certain transactions. When we were approached a couple of weeks ago to do the primary issuance that we just announced and closed today, we went around and asked our legacy investors—Center Capital, Due West, and Boston Omaha—if they had an interest in selling shares as part of this process. Due West and Center Capital said no. Boston Omaha indicated they would like to sell 300,000 shares if there was an opportunity. Prior to this process, Boston Omaha sold 360,000 shares in a separate transaction to certain investors. Those were separate stock purchase agreements executed the same day. Those transactions were between Boston Omaha and those investors, not the company, though they were coordinated through us. The takeaways are that our shareholders have reaffirmed their interest in continuing as long-term investors in Sky Harbour, and Boston Omaha's sale was a relatively small volume; this is their first sale in about a year and a half and a very low amount of shares. They have reaffirmed their interest in being long-term investors in Sky Harbour.
There are no further questions at this time. I would like to turn it back over to Francisco Gonzalez, CFO, for closing remarks.
Thank you, operator, and thank you, everybody, for participating. Before you go, let me just give an announcement that Tal Keinan, our CEO, is scheduled to participate tomorrow at 3:20 p.m. Eastern Time on The Claman Countdown show on Fox Business. This will be Tal's first mass media appearance. Please tune in to see Tal Keinan answering questions from Liz Claman. With that, we have concluded our conference here. Please look for additional information on our website at www.skyharbour.group and reach out with additional questions directly to us at investors@skyharbour.group. Thank you again for your participation. With this, we have concluded our webcast.
Ladies and gentlemen, this concludes today's call. You may now disconnect.