All right. Hello, everyone. Thank you for continuing to join us throughout the day here at the Lytham Partners Fall 2026 Investor Conference. Again, my name is Robert Blum, managing partner here at Lytham. Up next, Mark Harding, Chief Executive Officer of Pure Cycle Corporation, will take us through the company's slide presentation. As a reminder, Pure Cycle trades under the ticker symbol PCYO on the Nasdaq. Mark, thanks so much for participation today. The floor is all yours.
Thank you very much, Robert. Welcome, everyone. I would like to give you an overview of Pure Cycle Corporation and really introduce you to the company for those of you who are new to the story, and maybe update those of you who are familiar with the company. I will kick us off by obviously talking about forward-looking statements. Statements that are not historical facts are incorporated in this presentation are forward-looking statements. I think most of you are familiar with the forward-looking statements. I really want to lead off with just an outstanding management team that I get to work with. These are dedicated professionals that really differentiate themselves in their industry expertise, and it is my pleasure to work with them in really guiding the development of our assets and kind of managing the 40-ish employees that currently work to monetize our assets.
Together with one of the best boards of directors. I am sure a lot of you hear CEOs talk about their boards of directors, but I have got just an outstanding board that really punches above our weight in terms of industry expertise, whether that is from housing and land development, SEC, corporate governance, commercial expertise, audit expertise with KPMG partners, water rights expertise, municipal bond expertise, operational expertise amongst the team.
They are great oversights, and they really give me a tremendous amount of guidance in what we are doing in operating the company. Just an investment snapshot. We are a company that really has a terrific asset base, and we have had 28 straight quarters of profitability as we have been developing these assets. We continue to grow and build our revenue base. We are in two primary segments. A land development segment, where we are a developer of master plan communities here in the Denver area.
Also a water utility, where we are able to provide water and wastewater services to largely the companies or the properties that we own, as well as our franchise service area that we have here. We are one of the companies that really generates substantial revenue. We fund our development from in-house capital, so we are not really in a position of diluting shareholder counts and are in a position to be able to buy back shares and continue to return shareholder capital that way. Let me talk first about the water utility segment. That is kind of the DNA level of the company. We have water both for domestic needs, which is basically your potable water and wastewater that we deliver to residential homes. We sell a lot of industrial water to oil and gas customers, and that is really for fracking purposes.
We have a large Niobrara oil and gas play right on top of where our water sources originate. We have continued customer growth, which really is a welded customer. That is a very sticky customer for us that continues to build in terms of driving that monthly revenue and recurring revenue segments for the utility business. This is just a snapshot on the customer growth. We have over a 22% CAGR growth in our customers. This is kind of a year-to-date summary. This is a Q3 summary of how our utility revenues compare year-over-year, and what you see is just strong growth in there. This really illustrates three types of revenues for us, the monthly recurring water and wastewater revenue, the oil and gas segment revenue, and also revenue from connection charges.
Talk a little bit about sort of that oil and gas segment. We do sell probably about five times as much water to our oil and gas customers as we do to our domestic customers, which really generates very high-margin revenue for us. It is a raw water basis, so we do not have sort of that finishing water quality treatment cost is attributable to that, and really variable demand. It kind of depends on the number of wells they have permitted. The field that we are developing is really de-risked, so we just have a field development schedule here. What you see is year-over-year performance here, and this is through the nine months of our fiscal year 2026. We have an August 31st close, so it is a little bit of an awkward year-end close. We have closed the year-end.
We will report those year-end numbers sometime in November, but likely to see very strong performance out of this segment for fiscal 2026. One of the more interesting things about our revenues is the portfolio that we have. We own or control about 30,000 acre-feet of water, and what that does is it allows us to provide water service to over 60,000 single-family equivalents, and that is our unit of metric. When you take a look at how our annual production is performing year-over-year, what it is that we have developed in our supply capacity and what we are selling to our customers, we are using a very small portion of that portfolio. Roughly close to 2% of the portfolio. Which shows you the real pedal capacity that the company has and our ability to continue to generate substantial growth in this segment and for the company overall.
Let us move on to the land development. As I mentioned, we are a master plan developer, so we have a parcel of property that is in the best part of the Denver metropolitan area for a growth corridor. You can think about Denver as we live on an ocean. We cannot grow west into the mountain area. So 100% of the growth of the Denver area is out along the eastern corridor, and that happens to be where we find ourselves. In our land development segment, we are continuing through phase development. We have about 1,000 homes vertical and occupied for homeowners in that area. We have delivered about 1,200 total homes, and this is an update as to that. Our last phase II-C and phase II-D, both of these have been completed and delivered through year-end.
We have just a new project, a new phase coming online, which is a smaller phase than most of our previous segments. That really does allow us to respond to the market segment as housing continues to ebb and flow in that area. We will be providing that guidance into fiscal 2027 with our year-end update so that you can tune in and get that update in November. A little bit about year-to-date revenues in the land development segment. Really strong earnings here as well, about $12 million year to date through our Q3, which was May 31st, and that was driven largely by sub-phases that we had in phase II-B and phase II-C. You can get a better perspective of that on our website.
We have a great website with a ton of information, but this is highlighting some of those segments and how we have developed and performed over the last three years. phase II-A had about 230 lots. That is really what we try to do, is we try to deliver somewhere between 200 and 250 lots each year for our home builder customers, so that they are not taking a huge inventory of lots where they have to sit in them. We also are monetizing those assets as we deliver them. Again, continuing with the delivery of those. This also shows the next phase in progress and under construction. So it gives you a bit of the metrics on what the total lot revenues are and then concurring tap fees or the connection fees that we get. We also have another segment, which is our single-family rental segment.
You will see a little bit about that in that. How we do our land development segment, we use that a flow-fund deal where our home builders will pay us to improve those lands, where we get paid really a third of that purchase price at the plat, which gets them that ownership of that land interest. Then we are developing that infrastructure, whether that is developing the wet infrastructure, which is the water, wastewater, and stormwater systems. Then we get that second payment, and then ultimately, we finish those lots with the roads, curbs, and gutters. That last payment is really the company's margin in that transaction. So we are really trying to pace that with our home builder customers. One of the things we are proud of is that we have got a tremendous charter school on the property.
This is a grand opening of our high school this year, which we started. So we have got now a full K12 entitlement on the property. This gives you a bit of a perspective. This pink area in that map is our service area, where it shows you we are in that high growth corridor of the Denver metropolitan area. The dashed black line at the top is Interstate 70. The blue area in there is the Sky Ranch property. What this is illustrating is the pressure that the Denver metropolitan area is growing out in our service area. Our service area is really our greatest asset, providing water and wastewater to all of this area as that grows out there. It shows you how the Denver area has grown out to surround three borders of the property. Single-family rentals, I will just quickly fly through some of these.
This is a really nascent new segment for us. We've really updated our growth strategy since the beginning of the year. The Trump administration came out with some very high aspirations to restrict institutional ownership of single-family rentals. As it settled out, I think that there were some exemptions about where you're building homes in this, and that's exactly what we're doing. We wouldn't be in this segment if we weren't actually developing the lots, being the water provider, and partnering with our home builders to do that. What we've done is grow a portfolio from really nothing two years ago to about 60 homes now. We've got that capped at right about 70 homes, so we'll complete that last 10 homes this year.
We're really looking to pause that segment, take a look at how that segment's returning shareholder capital, what that return on investment is, and then make a stronger determination as to what to do with that segment, whether we leave the segment as it is, whether we grow the segment, or whether we divest that segment. That'll really be a function that we communicate to shareholders as we consider that performance. This is a bit of the performance metrics in there. The nice thing about it is we have latent equity value as we build the homes from the start because we're rolling forward the value that we have in the property and the tap fees. A little bit more on that, the growth of corridor, really capping that out at about that 72-home basis. Capital allocation, really taking a look at our strong balance sheet.
We have almost no debt. The only debt that we have is really the vertical cost of the single-family rentals. Taking a look at our assets and our water, land, and single-family rental portfolio, I think the important thing here is really the liquidity, right? The company has and is able to fund its operations from cash. We have a very strong receivable, over $60 million, coming from reimbursements from doing the public improvements on the master plan community that we have. Just the recurring revenue, both from the utility, the rental income, and then a diversified revenue mix that we have with that. As we get through this, we have a ton of information on our website.
This slide deck will continue through a number of other slides that really transition into the physical performance through Q3, which I'll show you where our guidance was, where we're coming in, and then that'll transition to our year-end presentation. With that, I'll pause there. I invite you all, if you have an opportunity, reach out to Robert Blum to set up a one-on-one. Better yet, if you're out in Denver, give me a call, and we'll give you a tour. With that, I'll turn it back to you, Robert.
Fantastic. Mark, thank you so much for your participation. Thanks, everyone, for watching. As Mark just indicated, if you would like to schedule a meeting with Pure Cycle here, either at the conference or in the weeks to come, send me an email. That is blum@lythampartners.com. To learn more about Lytham, make sure to visit our website, follow us on LinkedIn, and subscribe on YouTube to stay connected on future events such as the webcast presentation here with Mark. We hope you all enjoy the rest of the conference today. Have a great day. Mark, thanks so much for your participation.
Thanks, Robert.