CLPR

NEW YORK, August 06, 2026--(BUSINESS WIRE)--Clipper Realty Inc. (NYSE: CLPR) (the "Company"), a leading owner and operator of multifamily residential and commercial properties in the New York metropolitan area, today announced financial and operating results for the three months ended June 30, 2026. Highlights for the Three Months Ended June 30, 2026 Results reflect the termination of the New York City ("NYC") lease in August 2025 at the 250 Livingston Street office property and progress in resolving the future of the property and its loan as described below, record leasing rates and occupancy at our residential properties, and the sale of the 10 West 65th Street property in the second quarter last year. Quarterly revenues of $38.6 million for the second quarter of 2026 vs $39.0 million for the second quarter of 2025. Residential revenues were $32.2 million for the second quarter of 2026 vs.$29.1 million for the second quarter of 2025, an increase of $3.1 million primarily due to the strong residential leasing. Commercial revenues were $6.4 million for the second quarter of 2026 vs $10.0 million for the second quarter of 2025, a decrease of $3.6 million primarily due to the NYC lease termination in August 2025, net of new commercial leases. Quarterly income from operations of $9.3 million for the second quarter of 2026 vs $10.8 million for the second quarter of 2025. Quarterly net operating income ("NOI")1 of $21.6 million for the second quarter of 2026 vs $22.8 million for the second quarter of 2025. Quarterly net loss of $6.3 million for the second quarter of 2026 vs a net loss of $1.4 million for the second quarter of 2025. Adjusted funds from operations ("AFFO")1 of $3.8 million for the second quarter of 2026 vs $8.3 million for the second quarter of 2025. Declared a dividend of $0.095 per share for the second quarter of 2026. David Bistricer, Co-Chairman, and Chief Executive Officer, commented, "For the quarter, the main highlights are continued strong residential leasing and significant progress made towards resolving lender issues at our 250 Livingston Street office property. The residential properties continued to have high occupancy and strong renter demand. New free market leases exceeded previous rents by 13% and renewals by over 5% and our major residential properties are leased at record levels. Furthermore, our new Prospect House property at 953 Dean Street in Brooklyn, NY was fully leased at June 30, 2026." Financial Results for the Three Months Ended June 30, 2026 Our results reflect the strength of residential leasing and progress towards resolving previously disclosed lender issues at our 250 Livingston Street office property as follows: At the 250 Livingston Street office property, the principal tenant, NYC, terminated its lease in August 2025 with the principal remaining revenue source coming from 36 residential units. In November 2025, we notified the property’s lender and special loan servicer that we did not plan to continue supporting the property’s ongoing operating and debt service shortfall and ceased making payments for interest and property tax escrows (including default interest of 5%), Since then, the lender has reimbursed or paid substantially all expenses of the property. Effective June 2026, the lender and the Company entered into a Consent and Cooperation Agreement to jointly market and sell the loan to the property which gave the lender the right to foreclose on the property at the end of the marketing period, including taking the deed to the property in lieu of foreclosure. As of the date of this press release, the lender has not taken any such action. The Consent and Cooperation Agreement also provides that we have the right to submit an offer to purchase the loan at the end of the lender’s marketing period. 10 West 65th Street property was sold in the second quarter of 2025 and had no significant impact on the Company’s results since the sale. 1 NOI and AFFO are non-GAAP financial measures. For a definition of these financial measures and a reconciliation of such measures to the most comparable GAAP measures, see "Reconciliation of Non-GAAP Measures" at the end of this release. Revenues. For the second quarter of 2026, revenues were $38.6 million as compared to revenues of $39.0 million during the second quarter of 2025, a decrease of $0.4 million. The decrease was primarily due to the termination of the NYC lease in August 2025 of $(4.1) million, the sale of the 10 West 65th Street property which had revenues in the second quarter of 2025 of $0.7 million, revenues of $2.3 million in this quarter from the Prospect House property placed in service in August 2025 and still in its lease up period and increases of $2.1 million at all other properties. The increase at all other properties was due to record residential rental rates and occupancy and some new commercial leases at Tribeca House. Net Loss. For the second quarter of 2026, net loss was $6.3 million ($0.19 per share) compared to net loss of $1.4 million ($0.07 per share) for the second quarter of 2025, an increase of $4.9 million. The increase in net loss was primarily due to the termination of the NYC lease at the 250 Livingston Street office property of $5.7 million, substantially all of which is non-cash, whereby the lender funded all expenses and collected all the residual residential rents since termination of the NYC lease. The net loss in the second quarter of 2025 for the 10 West 65th Street property was $0.7 million. The new Prospect House property, placed in service in August 2025 and still in its final lease up period, had a net loss of $1.4 million in the second quarter of 2026. All other residential properties and the 141 Livingston Street property had increased net income of $1.5 million resulting from strong residential leasing and some new commercial leases at Tribeca House somewhat offset by annual increases in real estate taxes and insurance at all properties and some increased legal expenses and settlement costs. AFFO. For the second quarter of 2026, AFFO was $3.8 million, or $0.09 per share, compared to $8.3 million, or $0.20 per share, for the second quarter of 2025, a decrease of $4.6 million. The decrease was primarily due to the termination of the NYC lease at the 250 Livingston Street office property of $(5.8) million, substantially all of which is non-cash in 2026 as described above. AFFO in the second quarter of 2025 for the 10 West 65th Street property was negligible. AFFO at the new Prospect House property, still in its final lease up period, was $(0.2) million. AFFO at the remaining residential properties and 141 Livingston Street office property improved by $1.4 million due to strong residential leasing and some new leases at Tribeca House somewhat offset by annual increases in real estate taxes and insurance at all properties and some legal expenses. Balance Sheet On June 30, 2026, notes payable (excluding unamortized loan costs) were $1,287.2 million, compared to $1,286.2 million at December 31, 2025. On June 30, 2026, cash and cash equivalents were $37.7 million compared to $30.8 million at December 31, 2025, and restricted cash was $24.9 million at June 30, 2026, compared to $27.3 million at December 31, 2025. The increase in cash and cash equivalents was primarily due to strong operating cash flow from our residential properties used to fund capital spending and the quarterly equity distribution. Dividend The Company today declared a second quarter dividend of $0.095 per share, the same amount as last quarter, to shareholders of record on August 18, 2026, payable August 26, 2026. Conference Call and Supplemental Material The Company will host a conference call on August 6, 2026, at 5:00 PM Eastern Time to discuss the second quarter 2026 results and provide a business update. The conference call can be accessed by dialing (800) 346-7359 or (973) 528-0008, conference entry code 659576. A replay of the call will be available from August 6, 2026, following the call, through August 20, 2026, by dialing (800) 332-6854 or (973) 528-0005, replay conference ID 659576. Supplemental data to this press release can be found under the "Quarterly Earnings" navigation tab on the "Investors" page of our website at www.clipperrealty.com. The Company’s filings with the Securities and Exchange Commission (the "SEC") are filed at www.sec.gov under Clipper Realty Inc. About Clipper Realty Inc. Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. For more information on the Company, please visit www.clipperrealty.com. Forward-Looking Statements Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include estimates concerning capital projects and the success of specific properties. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release. We disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties), most of which are difficult to predict and many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a discussion of these and other important factors that could affect our actual results, please refer to our filings with the SEC, including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed from time to time with the SEC. Clipper Realty Inc.Consolidated Balance Sheets(In thousands, except for share and per share data) Clipper Realty Inc.Consolidated Statements of Operations(In thousands, except per share data)(Unaudited) Clipper Realty Inc.Consolidated Statements of Cash Flows(In thousands)(Unaudited) Clipper Realty Inc.Reconciliation of Non-GAAP Measures(In thousands, except per share data)(Unaudited) Non-GAAP Financial Measures We disclose and discuss funds from operations ("FFO"), adjusted funds from operations ("AFFO"), adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA") and net operating income ("NOI"), all of which meet the definition of "non-GAAP financial measures" set forth in Item 10(e) of Regulation S-K promulgated by the SEC. While management and the investment community in general believe that presentation of these measures provides useful information to investors, neither FFO, AFFO, Adjusted EBITDA, nor NOI should be considered as an alternative to net income (loss) or income from operations as an indication of our performance. We believe that to understand our performance further, FFO, AFFO, Adjusted EBITDA, and NOI should be compared with our reported net income (loss) or income from operations and considered in addition to cash flows computed in accordance with GAAP, as presented in our consolidated financial statements. Funds From Operations and Adjusted Funds From Operations FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment adjustments, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Our calculation of FFO is consistent with FFO as defined by NAREIT. AFFO is defined by us as FFO excluding amortization of identifiable intangibles incurred in property acquisitions, straight-line rent adjustments to revenue from long-term leases, amortization costs incurred in originating debt, interest rate cap mark-to-market adjustments, amortization of non-cash equity compensation, acquisition and other costs, transaction pursuit costs, loss on modification/extinguishment of debt, gain on involuntary conversion, gain on termination of lease and non-recurring litigation-related expenses, less recurring capital spending. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. In fact, real estate values have historically risen or fallen with market conditions. FFO is intended to be a standard supplemental measure of operating performance that excludes historical cost depreciation and valuation adjustments from net income. We consider FFO useful in evaluating potential property acquisitions and measuring operating performance. We further consider AFFO useful in determining funds available for payment of distributions. Neither FFO nor AFFO represent net income or cash flows from operations computed in accordance with GAAP. You should not consider FFO and AFFO to be alternatives to net income (loss) as reliable measures of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (computed in accordance with GAAP) as measures of liquidity. Neither FFO nor AFFO measure whether cash flow is sufficient to fund all of our cash needs, including loan principal amortization, capital improvements and distributions to stockholders. FFO and AFFO do not represent cash flows from operating, investing or financing activities computed in accordance with GAAP. Further, FFO and AFFO as disclosed by other REITs might not be comparable to our calculations of FFO and AFFO. The following table sets forth a reconciliation of FFO and AFFO for the periods presented to net loss, computed in accordance with GAAP (amounts in thousands): Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization We believe that Adjusted EBITDA is a useful measure of our operating performance. We define Adjusted EBITDA as net income (loss) before allocation to non-controlling interests, plus real estate depreciation and amortization, amortization of identifiable intangibles, straight-line rent adjustments to revenue from long-term leases, amortization of non-cash equity compensation, interest expense (net), acquisition and other costs, transaction pursuit costs, loss on modification/extinguishment of debt and non-recurring litigation-related expenses, less gain on involuntary conversion and gain on termination of lease. We believe that this measure provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We consider Adjusted EBITDA to be a meaningful financial measure of our core operating performance. However, Adjusted EBITDA should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating Adjusted EBITDA, and accordingly, our Adjusted EBITDA may not be comparable to that of other REITs. The following table sets forth a reconciliation of Adjusted EBITDA for the periods presented to net loss, computed in accordance with GAAP (amounts in thousands): Net Operating Income We believe that NOI is a useful measure of our operating performance. We define NOI as income from operations plus real estate depreciation and amortization, general and administrative expenses, acquisition and other costs, transaction pursuit costs, amortization of identifiable intangibles and straight-line rent adjustments to revenue from long-term leases, less gain on termination of lease. We believe that this measure is widely recognized and provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We use NOI to evaluate our performance because NOI allows us to evaluate the operating performance of our company by measuring the core operations of property performance and capturing trends in rental housing and property operating expenses. NOI is also a widely used metric in valuation of properties. However, NOI should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to that of other REITs. The following table sets forth a reconciliation of NOI for the periods presented to income from operations, computed in accordance with GAAP (amounts in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260806194893/en/ Contacts Lawrence KreiderChief Financial Officer(718) 438-2804 [email protected]

This article first appeared on GuruFocus. Revenue: $38.1 million, a decrease of $1.3 million from last year. Net Operating Income (NOI): $20.1 million, a decrease of $1.6 million from last year. Adjusted Funds From Operations (AFFO): $2.3 million, a decrease of $5.7 million from last year. Residential Property Revenue Increase: $2.7 million or 9% increase due to strong leasing. Office Property Revenue Decrease: $4 million decrease due to lease termination at 250 Livingston Street. Cash: $26.1 million of unrestricted cash and $28.6 million of restricted cash at the end of the quarter. Debt: 89% fixed at an average rate of 3.87% with an average duration of 3.4 years. Dividend: $0.095 per share for the first quarter, consistent with the previous quarter. Warning! GuruFocus has detected 7 Warning Signs with CLPR. Is CLPR fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Residential properties are performing well with high demand, generating excellent cash flow. New free market leases exceeded prior rents by over 7%, indicating strong rental growth. The Prospect House development was completed on time and on budget, and is now fully leased. Overall residential leasing is strong with 99% occupancy across stabilized properties. Rent collections across the portfolio remained strong with a 100% collection rate for free market residential properties. Revenues decreased by $1.3 million compared to last year, primarily due to the termination of the New York City lease at 250 Livingston Street. Net Operating Income (NOI) decreased by $1.6 million compared to last year. Adjusted Funds From Operations (AFFO) decreased by $5.7 million compared to last year. The company is not currently making payments on interest or real estate taxes for the 250 Livingston Street property. There is uncertainty regarding the finalization of a consent and cooperation agreement to sell the property loan for 250 Livingston Street. Q: Can you provide an update on the operational status of Flatbush Gardens, particularly regarding the potential rent freeze and funding for capital expenditures? Also, is there any plan to refinance the mortgage ahead of the interest rate reset in 2027? A: The property is performing as planned, and we are considering all refinancing possibilities. Although the interest rate reset is still some time away, we will update you as soon as we reach a conclusion. Additionally, our supplemental financials provide a good sense of the property's performance, which is quite strong. - David Bistricer, CEO and Lawrence Kreider, CFO Q: Regarding the 250 Livingston property, there seems to be interest and default fees owed, approximately $7.2 million. Are there plans to pay this out over the next quarter or two? A: We have informed the bank that we are no longer funding the operation and are not currently paying any interest, including default fees. We are negotiating a consent and cooperation agreement to potentially settle the debt, and no cash has been paid out on that so far. - Lawrence Kreider, CFO Q: How is the leasing performance at your stabilized properties, and what are the expectations for future demand? A: Our stabilized properties are 99% leased, with rents at record levels and continuing to increase. We expect strong demand for our residential leasing products to persist due to constrained housing supply in New York City. - Jacob Bistricer, COO Q: Can you elaborate on the financial impact of the New York City lease termination at 250 Livingston Street? A: The termination resulted in a $4 million decrease in office property revenues and a $5.8 million decrease in NOI. This was partially offset by increases from other properties and new retail leases. - Lawrence Kreider, CFO Q: What are the current financial metrics regarding your debt and cash position? A: We have $26.1 million in unrestricted cash and $28.6 million in restricted cash. Our operating debt is 89% fixed at an average rate of 3.87% with an average duration of 3.4 years. Our debt instruments are nonrecourse and not cross-collateralized. - Lawrence Kreider, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, May 14, 2026 at 5:00 p.m. ET Chief Executive Officer — David Bistricer Chief Operating Officer — Jacob Bistricer Chief Financial Officer — Lawrence Kreider David Bistricer: Thank you, Lawrence. Good afternoon, and welcome to the First Quarter 2026 Earnings Call for Clipper Realty. I will provide an update on our business performance and some new developments, after which J.J. will discuss property-level activity, including leasing performance and Larry will speak to our quarterly financial performance. We will then take your questions. I am pleased to report that our residential properties continue to perform very well due to the continued higher residential rental demand, generating excellent cash flow. Overall rents are generally at all-time highs and continue to increase, and we are nearly fully leased. In the first quarter, new free market leases exceeded prior rents by over 7%, generally consistent with last quarter across the entire portfolio, as J.J. will detail. We are also in the third quarter of the initial lease-up at our Prospect House development 953 Dean Street. We bought the property online in August, on time and on budget, having placed the bridge-loan last quarter that will provide funds through stabilization. We are presently fully leased in the 3 market events of about $78 per foot. This project was a ground-up development in Brooklyn where we bought the land in 2021 and built a 9-story fully amenitized residential building with 160,000 residential rentable square feet, 240 units, 70% of which are free market and 30% are affordable, 31 parking spaces and 19,000 commercial rental square feet. At 250 Livingston Street, where the New York City vacated mid-August 2025, and as more fully described in the 10-Q and press release, we notified the lender that we do not intend to support the property's ongoing operations, and that service has ceased making payments of interest in real estate taxes. Additionally, in May '26, we began receiving reimbursement of expenses paid by us from the lender. We are also discussing a consent in cooperation agreement with the lender to sell the property loan, although there can be no insurance an agreement will be finalized. I will now call on J.J. to take over this call. Jacob Bistricer: Thank you. I'm pleased to report that residential leasing at all our stabilized properties in which strong and they are 99% leased overall. Rents are at record levels and continuing to increase. Overall, new rental rates and residential free market properties in the first quarter exceeded previous rents by 7% and renewals by 5%. We expect demand for our residential leasing products to remain strong in the foreseeable future as the overall rental housing supply in New York City remains constrained and new development is core. Our residential free market rents are now at record highs. In the first quarter, Tribeca House had lease occupancy of 99% overall rent per foot of $90 per foot and new rents at $92 per foot. The Clover House property had occupancy of 99%, average overall rent of $90 per foot and new leases at $95 per foot. Our recently completed Pacific House property consisting of a blend of free market and rent-stabilized tenants and lease occupancy of 98% and premarket rents of $66 per foot on new leases. Our Aspen property continues to perform at record levels of average occupancy above 98% and new rents 8% higher compared to previous leases. We have nearly completed leasing at the newly completed Prospect House ground-up development at 953 Dean Street with premarket rents at $78 per first. Rent collections versus billings across our portfolio remained strong. The overall collection rate in the first quarter for all premarket residential properties was approximately 100%. Looking ahead, we remain focused on optimizing occupancy pricing and expenses across the business to best position ourselves for growth. I will now turn the call over to Larry, who will discuss our financial results. Lawrence Kreider: Thank you, J.J. Our results this quarter versus last year reflect the effects of 4 items worthy of note namely: the termination of the New York City lease at the 250 Livingston Street office property on August 23, 2025; the initial lease-up of results at Prospect House placed in service August 1, 2025, reflecting excess of expenses over limited but growing revenue; the absence of results from the 10 West 65th Street property sold in May 2025; and the settlement cost of litigation regarding historical roll practices at all of our properties. I refer to the remaining properties as the ongoing stabilized properties. Overall, we had revenues of $38.1 million versus $39.4 million last year, a decrease of $1.3 million; NOI of $20.1 million this quarter versus $21.7 million last year; a decrease of $1.6 million; and AFFO of $2.3 million this quarter versus $8 million last year, a decrease of $5.7 million. The following details these results. For revenue, residential properties reflect a $2.7 million or a 9% increase due to the excellent residential leasing, as J.J. noted above. This consisted of a $2 million increase from ongoing stabilized residential properties, a $1.7 million increase from the third full quarter of initial leasing at the Prospect House property, less a $1.1 million decrease from the absence of the 10 West 65th Street property sold in May of 2025. For office properties, revenues reflect a $4 million decrease consisting of a $4.2 million decrease from the New York City lease termination at 250 Livingston Street, partially offset by a $0.2 million increase from new retail leases at the Tribeca House and Aspen properties. For NOI, the $1.6 million NOI decrease reflects a $1.8 million, a 10% increase from ongoing stabilized properties, a $1.3 million increase from the inclusion of Prospect House this quarter, less a $600,000 decrease from the absence of the 10 West 65th Street property sold in May, and a $5.8 million decrease from the New York City lease termination at 250 Livingston Street. And for AFFO, the $5.8 million AFFO decrease reflects a $1.2 million or 18% increase from ongoing residential properties, a $1.2 million decrease from the inclusion of Prospect House due to full expenses as it completes lease-up, and a $0.1 million increase from the absence of the 10 West 65th Street property sold in May and finally, a $5.8 million decrease from the 250 Livingston Street property, resulting from the New York City lease termination. With regard to our balance sheet, we have $26.1 million of unrestricted cash and $28.6 million of restricted cash at the end of the quarter. As of the end of the quarter, our operating debt is 89% fixed at an average rate of 3.87% and an average duration of 3.4 years. Our debt instruments are nonrecourse, subject to limited standard carve-outs and not cross-collateralized. We finance our portfolio on an asset-by-asset basis. And finally, today, we are announcing a dividend of $0.095 per share for the first quarter, the same amount as last quarter. The dividend will be paid on June 4, 2026 to shareholders record on May 26, 2026. Let me now turn the call back to David for concluding remarks. David Bistricer: Thank you, Lawrence. We remain focused on efficiently operating our portfolio. We look forward to full stabilization of the Prospect House property, resolving in the 250 Livingston Street capitalization and all possibilities that may present themselves. I would now like to on the line for questions. Operator: [Operator Instructions] And the first question today is coming from Buck Horne from Raymond James. Buck Horne: Just a quick question on Flatbush Gardens, if you could speak to that property for a few minutes. Just thinking of operationally, I guess how are things going in terms of being able to navigate the potential for, I guess, the rent freeze aspect that could be in place going forward and/or funding the CapEx for that property in the quarters ahead? And I guess I'm also thinking ahead lastly to in any possibility for refinancing the mortgage on Flatbush ahead of the interest rate reset in 2027. Any comments would be helpful there. David Bistricer: Thank you for your question. I think the property is performing as planned. A lot of planning went into that Article 11 that we have there, and we it's basically doing as it's supposed to do. We will be looking at all possibilities of refinancing. It's got ways to go yet but obviously, we look at what the possibilities are. And the soonest we come to some time of conclusion, we'll let you know, obviously. Lawrence Kreider: Yes. And Buck, I might add, you could look to our supplemental, and you could see our net operating income, and that would give you a sense of how the property is doing, which is pretty well. Buck Horne: Okay. One quick follow-up. It appears there's still, I guess, some interest in default fees owed related to 250 Livingston. So I believe it's in the ballpark of $7.2 million. Are you planning on paying that cash out over the next quarter or 2? Or are there any additional fees to be aware of? Lawrence Kreider: Well, no, I think as we said, we indicated to the bank that we were no longer funding the operation, and we're not paying any interest right now, including default fees. And as we said, we're negotiating a consent and cooperation agreement in connection with potentially settling the debt. So right now, there has been no cash paid out on that. Operator: [Operator Instructions] And there were no other questions at this time. I'd now like to hand the call over to David Bistricer, CEO at Clipper Realty, for closing remarks. David Bistricer: Thank you for joining us today. We look forward to speaking with you again in the future. Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation. Before you buy stock in Clipper Realty, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Clipper Realty wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Clipper Realty (CLPR) Q1 2026 Earnings Transcript was originally published by The Motley Fool

NEW YORK, May 14, 2026--(BUSINESS WIRE)--Clipper Realty Inc. (NYSE: CLPR) (the "Company"), a leading owner and operator of multifamily residential and commercial properties in the New York metropolitan area, today announced financial and operating results for the three months ended March 31, 2026. Highlights for the Three Months Ended March 31, 2026 For residential properties, results reflect the effects of the continuing strength of leasing at our residential properties, the third quarter of leasing at the newly completed Dean Street residential property ("Prospect House"), and an impairment charge related the 10 West 65th Street property in the first quarter of 2025; for office properties, results reflect the second full quarter of operations at the 250 Livingston Street commercial property following the New York City lease termination in August 2025; and for all properties, the cost of settling a lawsuit regarding payment practices with non-exempt employees. Quarterly revenues of $38.1 million for the first quarter of 2026 vs $39.4 million for the first quarter of 2025, including quarterly residential revenues of $31.9 million for the first quarter of 2026 vs $29.2 million for the first quarter of 2025, an increase of $2.7 million, or 9.3% and quarterly commercial revenues for the first quarter of 2026 of $6.2 million vs $10.2 million for the first quarter of 2025, a decrease of $4.0 million. Quarterly income from operations of $4.4 million for the first quarter of 2026 vs a loss from operations of $23.6 million for the first quarter of 2025. Net operating income ("NOI")1 of $20.0 million for the first quarter of 2026 vs $21.8 million for the first quarter of 2025 Quarterly net loss of $11.1 million for the first quarter of 2026 vs a net loss of $35.1 million for the first quarter of 2025 Adjusted funds from operations ("AFFO")1 of $2.3 million for the first quarter of 2026 vs $8.0 million for the first quarter of 2025 Declared a dividend of $0.095 per share for the first quarter of 2026 David Bistricer, Co-Chairman, and Chief Executive Officer, commented, "For the quarter, the main highlights are continued strong residential leasing and significant progress made towards resolving lender issues at our 250 Livingston Street office property. The residential properties continued to have high occupancy and strong renter demand. New free market leases exceeded previous rents by 7% and renewals by over 5% and our major residential properties are leased at record levels. Furthermore, our new Prospect House property at 953 Dean Street in Brooklyn, NY was fully leased at March 31, 2026. And we continue to work with our lender at the 250 Livingston Street office property." Financial Results for the Three Months Ended March 31, 2026 Our results reflect the strength of residential leasing and progress towards resolving issues at our 250 Livingston Street office property. As noted above, residential revenue increased 9.3% and residential rents are at record levels. The following describes significant items that influenced the financial results of the Company. The Prospect House property continued lease up throughout the first quarter of 2026, averaging 65% occupancy and ending the quarter fully leased. As such, in the first quarter of 2026, the property generated revenue of $1.7 million, income from operations of $0.4 and net loss of $2.3 million. We expect these results to significantly improve as the property is occupied throughout the entire period. 10 West 65th Street property was sold in the second quarter of 2025. For the first quarter of 2025, the property generated revenue of $1.1 million, a loss from operations of $33.6 million and a net loss of $34.2 million including an impairment charge of $33.8 million pending sale in the second quarter. At the 250 Livingston Street office property, the principal tenant, New York City, terminated its lease in August 2025, as previously announced, with the principal remaining revenue source coming from thirty-six residential units. As a result, in the first quarter of 2026, the property generated revenue of $0.4 million vs $4.6 million for the first quarter of 2025; loss from operations of $2.3 million vs income from operations of $2.0 million for the first quarter of 2025; and net loss of $5.0 million vs net income of $0.8 million for the first quarter of 2025. However, after the lease termination, we ceased making payments for interest and property tax escrows (including default interest of 5%), so notified the property’s lender and special loan servicer indicating we did not plan to continue supporting the property’s ongoing operating and debt service shortfall. We also began receiving reimbursement in May 2026 of out-of-pocket expenses after NYC lease termination, principally insurance, and we are in the process of negotiating a Consent and Cooperation Agreement with the lender, although there can be no assurance that such Consent and Cooperation Agreement will be consummated. The lender has made all scheduled real estate tax payments to-date. Further, on April 29, 2026, pursuant to the lender filing a complaint for default under the notes and the other loan documents, the court entered an order granting the lender's demand to appoint a temporary receiver responsible for the management, operations, and leasing of the property. Lastly, results include a $3.6 million charge for a probable litigation settlement regarding certain payroll practices over several years at all our properties, including payments to the attorney representing the class of employees and estimated future payouts to participants in the class. Revenues. For the first quarter of 2026, revenues were $38.1 million as compared to revenues of $39.4 million during the first quarter of 2025, a decrease of $1.3 million. These results include increased residential revenue of $2.7 million due to increases in rental rates and high occupancy at all stabilized properties ($2.1 million), limited additional revenue from the Prospect House property now in its third quarter of leasing ($1.7 million), less the absence of revenue from the 10 West 65th Street property sold in May 2025 ($1.1 million). Commercial revenue decreased by $4.0 million in the first quarter of 2026 compared to the first quarter of 2025 because of the New York City lease termination at the 250 Livingston Street property described above ($4.2 million). Net Loss. For the first quarter of 2026, net loss was $11.1 million ($0.30 per share) compared to net loss of $35.1 million ($0.86 per share) for the first quarter of 2025, representing a decrease in net loss of $24.0 million. These results reflect greater residential revenue at stabilized, continuing properties from the strong leasing discussed above, net of higher utilities expense ($1.3 million), the net loss from the Prospect House property in its initial leasing period ($2.3 million), the absence of net loss, including impairment charge, from the 10 West 65th Street property sold in May 2025 ($34.2 million), the increased net loss from the New York City lease termination at the 250 Livingston Street property as described above ($5.8 million), and the expense of the litigation settlement described above ($3.6 million). AFFO. For the first quarter of 2026, AFFO was $2.3 million, or $0.05 per share, compared to $8.0 million, or $0.19 per share, for the first quarter of 2025, a decrease of $5.7 million. These results include an increase in AFFO from ongoing, stabilized residential and office properties ($1.2 million increase) because of the improved revenue noted above; negative AFFO from Prospect House in its initial leasing period ($1.2 million), and increased negative AFFO at the 250 Livingston Street property from the New York City lease termination as described above ($5.8 million). Balance Sheet On March 31, 2026, notes payable (excluding unamortized loan costs) were $1,285.8 million, compared to $1,286.2 million at December 31, 2025. On March 31, 2026, cash and cash equivalents were $26.1 million compared to $30.8 million at December 31, 2025, and restricted cash was $28.6 million at March 31, 2026, compared to $27.3 million at December 31, 2025. The decrease in cash and cash equivalents was primarily due to the January payment of six months of Tribeca House property taxes which reduced strong operating cash flow from our residential properties used to fund capital spending and the quarterly equity distribution. Dividend The Company today announced a first quarter dividend of $0.095 per share, the same amount as last quarter, to shareholders of record on May 26, 2026, payable June 4, 2026. Conference Call and Supplemental Material The Company will host a conference call on May 14, 2026, at 5:00 PM Eastern Time to discuss the first quarter 2026 results and provide a business update. The conference call can be accessed by dialing (800) 346-7359 or (973) 528-0008, conference entry code 647649. A replay of the call will be available from May 14, 2026, following the call, through May 28, 2026, by dialing (800) 332-6854 or (973) 528-0005, replay conference ID 647649. Supplemental data to this press release can be found under the "Quarterly Earnings" navigation tab on the "Investors" page of our website at www.clipperrealty.com. The Company’s filings with the Securities and Exchange Commission (the "SEC") are filed at www.sec.gov under Clipper Realty Inc. About Clipper Realty Inc. Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. For more information on the Company, please visit www.clipperrealty.com. Forward-Looking Statements Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include estimates concerning capital projects and the success of specific properties. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release. We disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties), most of which are difficult to predict and many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a discussion of these and other important factors that could affect our actual results, please refer to our filings with the SEC, including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed from time to time with the SEC. Clipper Realty Inc. Reconciliation of Non-GAAP Measures (In thousands, except per share data) (Unaudited) Non-GAAP Financial Measures We disclose and discuss funds from operations ("FFO"), adjusted funds from operations ("AFFO"), adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA") and net operating income ("NOI"), all of which meet the definition of "non-GAAP financial measures" set forth in Item 10(e) of Regulation S-K promulgated by the SEC. While management and the investment community in general believe that presentation of these measures provides useful information to investors, neither FFO, AFFO, Adjusted EBITDA, nor NOI should be considered as an alternative to net income (loss) or income from operations as an indication of our performance. We believe that to understand our performance further, FFO, AFFO, Adjusted EBITDA, and NOI should be compared with our reported net income (loss) or income from operations and considered in addition to cash flows computed in accordance with GAAP, as presented in our consolidated financial statements. Funds From Operations and Adjusted Funds From Operations FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment adjustments, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Our calculation of FFO is consistent with FFO as defined by NAREIT. AFFO is defined by us as FFO excluding amortization of identifiable intangibles incurred in property acquisitions, straight-line rent adjustments to revenue from long-term leases, amortization costs incurred in originating debt, interest rate cap mark-to-market adjustments, amortization of non-cash equity compensation, acquisition and other costs, transaction pursuit costs, loss on modification/extinguishment of debt, gain on involuntary conversion, gain on termination of lease and non-recurring litigation-related expenses, less recurring capital spending. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. In fact, real estate values have historically risen or fallen with market conditions. FFO is intended to be a standard supplemental measure of operating performance that excludes historical cost depreciation and valuation adjustments from net income. We consider FFO useful in evaluating potential property acquisitions and measuring operating performance. We further consider AFFO useful in determining funds available for payment of distributions. Neither FFO nor AFFO represent net income or cash flows from operations computed in accordance with GAAP. You should not consider FFO and AFFO to be alternatives to net income (loss) as reliable measures of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (computed in accordance with GAAP) as measures of liquidity. Neither FFO nor AFFO measure whether cash flow is sufficient to fund all of our cash needs, including loan principal amortization, capital improvements and distributions to stockholders. FFO and AFFO do not represent cash flows from operating, investing or financing activities computed in accordance with GAAP. Further, FFO and AFFO as disclosed by other REITs might not be comparable to our calculations of FFO and AFFO. The following table sets forth a reconciliation of FFO and AFFO for the periods presented to net loss, computed in accordance with GAAP (amounts in thousands): Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization We believe that Adjusted EBITDA is a useful measure of our operating performance. We define Adjusted EBITDA as net income (loss) before allocation to non-controlling interests, plus real estate depreciation and amortization, amortization of identifiable intangibles, straight-line rent adjustments to revenue from long-term leases, amortization of non-cash equity compensation, interest expense (net), acquisition and other costs, transaction pursuit costs, loss on modification/extinguishment of debt and non-recurring litigation-related expenses, less gain on involuntary conversion and gain on termination of lease. We believe that this measure provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We consider Adjusted EBITDA to be a meaningful financial measure of our core operating performance. However, Adjusted EBITDA should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating Adjusted EBITDA, and accordingly, our Adjusted EBITDA may not be comparable to that of other REITs. The following table sets forth a reconciliation of Adjusted EBITDA for the periods presented to net loss, computed in accordance with GAAP (amounts in thousands): Net Operating Income We believe that NOI is a useful measure of our operating performance. We define NOI as income from operations plus real estate depreciation and amortization, general and administrative expenses, acquisition and other costs, transaction pursuit costs, amortization of identifiable intangibles and straight-line rent adjustments to revenue from long-term leases, less gain on termination of lease. We believe that this measure is widely recognized and provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We use NOI to evaluate our performance because NOI allows us to evaluate the operating performance of our company by measuring the core operations of property performance and capturing trends in rental housing and property operating expenses. NOI is also a widely used metric in valuation of properties. However, NOI should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to that of other REITs. The following table sets forth a reconciliation of NOI for the periods presented to income from operations, computed in accordance with GAAP (amounts in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260514332134/en/ Contacts Lawrence Kreider Chief Financial Officer (718) 438-2804 x2231 [email protected]

This article first appeared on GuruFocus. Revenue: $37.1 million, a decrease of $0.9 million from last year. Net Operating Income (NOI): $20.7 million, a decrease of $1.9 million from last year. Adjusted Funds From Operations (AFFO): $1.7 million, a decrease of $6.4 million from last year. Residential Properties Revenue Increase: $2.7 million or 9% increase. Occupancy Rate: Residential properties are 99% leased overall. New Lease Rate Increase: New leases exceeded prior rents by nearly 13%. Prospect House Leasing: 78% leased with free market rents at $85 per foot. Cash Position: $30.8 million of unrestricted cash and $27.3 million of restricted cash. Dividend: $0.095 per share for the fourth quarter. Operating Debt: 89% fixed at an average rate of 3.87% with an average duration of 3.7 years. Warning! GuruFocus has detected 6 Warning Signs with CLPR. Is CLPR fairly valued? Test your thesis with our free DCF calculator. Release Date: February 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Residential properties are performing well with high rental demand, generating excellent cash flow. New leases exceeded prior rents by nearly 13%, indicating strong leasing performance. Prospect House development was completed on time and on budget, with 78% of units leased. Residential properties are nearly fully leased, with occupancy rates around 99%. Rent collections across the portfolio remain strong, with an overall collection rate of approximately 98%. Revenues decreased by $0.9 million compared to last year, primarily due to the termination of the New York City lease at 250 Livingston Street. Net Operating Income (NOI) decreased by $1.9 million compared to last year. Adjusted Funds From Operations (AFFO) decreased by $6.4 million compared to last year. The termination of the New York City lease at 250 Livingston Street resulted in a $4.0 million revenue decrease. The company is facing challenges with the 250 Livingston Street property, including restructuring property debt and ceasing payments of interest and real estate taxes. Q: Can you provide an update on the leasing performance of your residential properties? A: Jacob Bistricer, Chief Operating Officer, reported that residential leasing at all stabilized properties is very strong, with an overall occupancy rate of 99%. Rents are at record levels and continue to increase, with new rental rates exceeding previous rents by over 13% and renewals by 7%. Demand for residential leasing is expected to remain strong due to constrained housing supply in New York City. Q: What is the status of the Prospect House development? A: David Bistricer, CEO, stated that the Prospect House development at 953 Dean Street is in its second quarter of initial lease-up, with approximately 78% of the units leased. The project was completed on time and on budget, featuring 240 residential units, 57 parking spaces, and 19,000 commercial rental square feet. Q: How has the termination of the New York City lease at 250 Livingston Street impacted financial results? A: Lawrence Sava, Corporate Controller, explained that the termination of the New York City lease resulted in a $4.0 million decrease in revenue and a $3.8 million decrease in NOI. The company has notified the lender of its intention not to support ongoing operations at the property and is restructuring the property debt. Q: What are the financial highlights for the quarter? A: Lawrence Sava reported revenues of $37.1 million, a decrease of $0.9 million from the previous year. NOI was $20.7 million, down $1.9 million, and AFFO was $1.7 million, a decrease of $6.4 million. The results reflect the impact of the lease termination at 250 Livingston Street and the initial lease-up at Prospect House. Q: What is the company's current cash position and debt structure? A: Lawrence Sava noted that Clipper Realty has $30.8 million of unrestricted cash and $27.3 million of restricted cash. The operating debt is 89% fixed at an average rate of 3.87% with an average duration of 3.7 years. The debt instruments are non-recourse and not cross-collateralized, with financing done on an asset-by-asset basis. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Residential portfolio strength: Stabilized residential properties were about 99% leased with new rents up ~13% year-over-year, renewals +7%, and collections roughly 98%, driving strong cash flow and record rents across the portfolio. 953 Dean Street lease-up progressing: The Prospect House development came online on time and on budget, is ~78% leased with market rents near $85/ft, and includes 240 units (30% affordable) as the company funds stabilization with a bridge loan. 250 Livingston fallout and financial impact: After New York City terminated its lease and vacated mid‑August 2025, Clipper stopped paying interest and taxes, is pursuing debt restructuring (no assurance of completion), and said the termination drove roughly $4.0M of revenue decline, a $3.8M NOI drop and a $6.1M reduction in AFFO. Interested in Clipper Realty Inc.? Here are five stocks we like better. Clipper Realty (NYSE:CLPR) executives highlighted strong residential demand and record rents during the company’s fourth-quarter 2025 earnings call on Feb. 26, 2026, while also addressing the fallout from New York City’s lease termination at its 250 Livingston Street office property and progress on the initial lease-up of its 953 Dean Street development. Co-Chairman and CEO David Bistricer said the company’s residential properties “continue to perform very well” amid “continued high residential rental demand,” contributing to “excellent cash flow.” He noted the portfolio is “nearly fully leased,” with overall rents “generally at all-time highs and continuing to increase.” → SoundHound’s New Sales Assist Agent Put Voice AI Back in the Spotlight Chief Operating Officer JJ Bistricer provided additional detail, reporting that stabilized residential properties were 99% leased overall during the quarter. He said new rental rates in the fourth quarter exceeded prior rents by more than 13%, while renewals were up 7%. JJ Bistricer also cited what he described as a constrained rental housing supply in New York City, saying new development remains discouraged and that the company expects demand for its residential product to remain strong “in the foreseeable future.” → Diamondback Sees Resilient Demand Despite Cautious Guidance Management discussed leasing metrics across the company’s residential portfolio, including occupancy and rent levels, and provided an update on its newly completed development at 953 Dean Street. Tribeca House: 99% lease occupancy; rent per foot of $89; new rents at $95 per foot. Clover House: 96% occupancy; average overall rents of $90 per foot; new leases at $95 per foot. Flatbush Gardens: 98% leased occupancy; average overall rents (including those under an Article 11 agreement with New York City) of $32 per foot; new leases of $54 per foot. JJ Bistricer said the company continues fulfilling leasing commitments for assisted tenants and making required capital improvements. Prospect Park property (recently completed): 96% lease occupancy; free-market rents of $76 per foot on new leases. Aspen: average occupancy above 98%; new rents and renewals 15% higher versus previous leases. On rent collections, JJ Bistricer said portfolio collections remained strong, with an overall fourth-quarter collection rate of approximately 98% across residential properties, including 98% at Flatbush Gardens. He added the company is working through the legal system to reduce arrears. → AI Is Separating Software Winners From Losers, 2 Experts Explain Management discussed the second quarter of initial lease-up at the company’s Prospect House development at 953 Dean Street. David Bistricer said the property was brought online in August “on time and on budget,” and that the bridge loan put in place last quarter is expected to provide funds through stabilization. He said the project was approximately 78% leased, with market rents around $85 per foot. The development is a nine-story, fully amenitized residential building in Brooklyn with 360,000 rentable residential square feet and 240 units, including 70 free-market units and 30% affordable units, along with 57 parking spaces and 19,000 square feet of commercial rentable area. On the company’s office assets, David Bistricer said Clipper Realty settled lender claims at 141 Livingston Street and obtained lender approval for a five-year lease extension with the principal tenant, New York City, consistent with prior disclosures. At 250 Livingston Street—where New York City vacated in mid-August 2025—Bistricer said the company notified the lender it does not intend to support the property’s ongoing operation. He said that following the lease termination, the company ceased making payments of interest and real estate taxes and applied for reimbursements of expenses incurred since then. He added the company “may not fund these expenses” at the conclusion of distribution discussions, and said it has begun to restructure the property debt, while cautioning it cannot assure a restructuring will be completed. Chief Financial Officer Larry Kreider said quarterly results compared with the prior year reflected three unusual items: the termination of the New York City lease at 250 Livingston Street on Aug. 23, 2025; initial lease-up results at Prospect Park/953 Dean Street as expenses exceeded limited but growing revenue; and the absence of results from 10 West 65th Street, sold in May 2025. He referred to the remaining assets as “ongoing properties.” Kreider reported revenue of $37.1 million versus $38.0 million a year ago, and net operating income (NOI) of $20.7 million versus $22.6 million. Adjusted funds from operations (AFFO) totaled $1.7 million, compared with $8.1 million in the prior-year period. He said residential revenue rose $2.7 million, or 9%, driven by strong leasing, including a $2.2 million increase from ongoing rent-stabilized residential properties and a $1.5 million increase from the second full quarter of initial lease-up at the development property, partly offset by a $1.0 million decline tied to the sale of 10 West 65th Street. Those gains were more than offset by a $4.0 million decline associated with the 250 Livingston Street lease termination, partially offset by a $0.3 million increase from new retail leases at Tribeca House and Aspen. For NOI, Kreider attributed the year-over-year decline primarily to a $3.8 million decrease from the 250 Livingston Street lease termination, which outweighed increases from ongoing stabilized residential properties and the inclusion of the newly placed-in-service development. On AFFO, Kreider said the decline reflected a $6.1 million reduction tied to the 250 Livingston Street termination and “full expense accrual,” along with a $1.2 million negative contribution from the development’s lease-up phase due to full expenses and partial leasing. On the balance sheet, Kreider reported unrestricted cash of $30.8 million and restricted cash of $27.3 million at quarter-end. He added that operating debt was 89% fixed at an average rate of 3.87% with an average duration of 3.7 years, and that the company’s debt is non-recourse (subject to limited standard carve-outs) and not cross-collateralized. The company also declared a quarterly dividend of $0.095 per share, unchanged from the prior quarter, payable March 19, 2026, to shareholders of record on March 12, 2026. In closing remarks, David Bistricer said the company remains focused on operating efficiency and said it is looking ahead to fully leasing up the 953 Dean Street development and “resolving the 250 Livingston Street.” The call concluded without any analyst questions. Clipper Realty Inc is a publicly traded real estate investment trust that acquires, owns and manages multifamily residential and mixed‐use properties in the Greater New York metropolitan area. Since its initial public offering in early 2017, the company has focused on strategically sourcing apartment buildings and retail space in Manhattan and Brooklyn, with an emphasis on value‐add opportunities that can benefit from in‐house leasing, renovation and operational efficiencies. The company's primary activities include property acquisition, selective repositioning and asset management. The article "Clipper Realty Q4 Earnings Call Highlights" was originally published by MarketBeat.

NEW YORK, February 26, 2026--(BUSINESS WIRE)--Clipper Realty Inc. (NYSE: CLPR) (the "Company"), a leading owner and operator of multifamily residential and commercial properties in the New York metropolitan area, today announced financial and operating results for the three months ended December 31, 2025. Highlights for the Three Months Ended December 31, 2025 For residential properties, results reflect the effects of the continuing strength of leasing at our residential properties, the second full quarter of leasing at the newly completed Dean Street residential property ("Prospect House"), and the sale of the 10 West 65th Street property in May 2025; for office properties, results reflect the cost of settling lender issues at the 141 Livingston Street commercial property in December 2025 and the first full quarter of operations at the 250 Livingston Street commercial property following the New York City lease termination in August 2025 Quarterly revenues of $37.1 million for the fourth quarter of 2025 vs $38.0 million last year, including quarterly residential revenues of $30.9 million for the fourth quarter of 2025 vs $28.2 million last year, an increase of $2.7 million, or 9.5% and quarterly commercial revenues for the fourth quarter of 2025 of $6.2 million vs $9.8 million last year, a decrease of $3.6 million Quarterly income from operations of $8.1 million for the fourth quarter of 2025 vs $10.7 million last year Net operating income ("NOI")1 of $20.7 million for the fourth quarter of 2025 vs $22.6 million last year Quarterly net loss of $11.3 million for the fourth quarter of 2025 vs $1.1 million last year Adjusted funds from operations ("AFFO")1 of $1.7 million for the fourth quarter of 2025 vs $8.1 million last year Declared a dividend of $0.095 per share for the fourth quarter of 2025 David Bistricer, Co-Chairman, and Chief Executive Officer, commented, "For the quarter, the main highlights are continued strong residential leasing and significant progress made towards resolving lender issues at our two major office properties. The residential properties continued to have high occupancy and strong renter demand. New leases exceeded previous rents by nearly 13% and renewals by over 7% and our major residential properties are leased at record levels. Furthermore, our new Prospect House property at 953 Dean Street in Brooklyn, NY is in its second quarter of lease up and leasing well. At our 141 Livingston Street office property, we are pleased to have substantially settled the lender’s claims which we had disputed." Financial Results for the Three Months Ended December 31, 2025 Our results reflect the strength of residential leasing and progress towards resolving issues at our two major office properties. As noted above, residential increased 9.5% and residential rents are at record levels. We have made significant progress in dealing with issues at our two major office properties, where, at the 141 Livingston Street property, we have resolved lender claims, and, at the 250 Livingston Street property, we have actively begun working with our lender. The following further describes significant items that influenced the financial results of the Company: The Prospect House property is in the first full quarter of initial lease-up with leased occupancy of only 66.3% and much of the free-market units to be leased. As such, in the fourth quarter, the property generated revenue of $1.5 million, income from operations of $0.2 and net loss of $2.6 million. We expect these results to significantly improve as leasing progresses and the property stabilizes in 2026. Results this quarter exclude the results of the 10 West 65th Street property which we sold in the second quarter of 2025. For the fourth quarter of 2024, the property generated revenue of $1.0 million, a loss from operations of $0.1 million and a net loss of $0.5 million. At the 141 Livingston St property, the Company settled its issues with the lender in late December 2025 by posting a $10 million letter of credit and incurring $2.6 million of settlement expenses in return for elimination of lender’s default claims with prejudice and approval by lender of lease renewal terms with our principal tenant, New York City. At the 250 Livingston St office property, the principal tenant, New York City, terminated its lease in mid-August as announced, with the principal remaining revenue source coming from 36 residential units. As a result, in the fourth quarter, the property generated revenues of $0.6 million vs $4.5 million last year; loss from operations of $2.0 million vs income from operations of $1.9 million last year; and net loss of $5.4 million vs net income of $2.9 million last year. However, subsequent to the lease termination, we ceased making payments for interest and property tax escrows (including default interest of 5%), so notified the property’s lender and special loan servicer indicating we did not plan to continue supporting the property’s ongoing operating and debt service shortfall. We also applied for reimbursement of all out-of-pocket expenses, principally insurance, and began negotiating a Consent and Cooperation agreement. The lender has made all scheduled real estate tax payments to-date. The mortgage loan is non-recourse to the Company. As a result, our discussions with the lender may result in the Company not funding the above expenses, although there can be no assurance that this will be the case. Revenues. For the fourth quarter of 2025, revenues were $37.1 million as compared to revenue of $38.0 million during the fourth quarter of 2024, a decrease of $0.9 million. These results include increased residential revenue of $2.7 million due to increases in rental rates and high occupancy at all stabilized properties ($2.2 million), limited additional revenue from the Prospect House property now in its second quarter of leasing ($1.5 million), less the absence of residential revenue from the 10 West 65th Street property sold in May 2025 ($1.0 million). Commercial revenue decreased by $3.6 million compared to the prior year because of increased commercial revenue from new leases of vacant space at the Tribeca House and Aspen properties ($0.3 million) less a decrease in revenue at the 250 Livingston Street office property because of the New York City lease termination described above ($3.9 million). Net Loss. For the fourth quarter of 2025, net loss was $11.3 million ($0.30 per share) compared to net loss of $1.1 million ($0.05 per share) for the fourth quarter of 2024, an increase in net loss of $10.2 million. For residential properties, these results include greater revenue from the strong leasing discussed above net of higher expenses (primarily property level payroll and utility expense and greater amortization of stock-based executive compensation) ($0.6 million), the net loss from the Prospect House property in its initial leasing period ($2.6 million), and the absence of net loss from the 10 West 65th Street property sold in May 2025 ($0.5 million). For commercial office properties, the increased net loss, as more fully described above, resulted from the New York City lease termination in August 2025 at the 250 Livingston Street property ($6.1 million), and the expense of settling disputed issues with the lender to the 141 Livingston Street office property ($2.6 million). AFFO. For the fourth quarter of 2025, AFFO was $1.7 million, or $0.4 per share, compared to $8.1 million, or $0.19 per share, for the fourth quarter of 2024, a decrease of $6.4 million. These results include an increase in AFFO from residential properties because of the improved revenue noted above, less negative AFFO from the Prospect House initial leasing period plus the absence of negative AFFO from the 10 West 65th Street property sold in May 2025. As the reasons discussed above, the 250 Livingston Street office property incurred greater negative AFFO because of the New York City lease termination. Balance Sheet On December 31, 2025, notes payable (excluding unamortized loan costs) were $1,286.2 million, compared to $1,275.4 million at December 31, 2024. The increase was primarily due to additional borrowings on the Prospect House bridge loan refinancing in May including additional draws through December 2025 substantially offset by debt retired in the sale of the 10 West 65th Street property in May 2025. On December 31, 2025, cash and cash equivalents were $30.8 million compared to $19.9 million at December 31, 2024, and restricted cash was $27.3 million at December 31, 2025, compared to $18.2 million at December 31, 2024. The increase in cash and cash equivalents was primarily due to strong operating cash flow from our residential properties net of capital spending, net proceeds from the sale of the 10 West 65th Street property, net proceeds from the Prospect House bridge loan refinancing in May less additional escrow payments at the 250 Livingston Street property and payment of distributions. The increase in restricted cash was primarily due to the escrow payments at the 250 Livingston Street property and escrow accounts established in the Prospect House bridge loan refinancing. Dividend The Company today declared a fourth quarter dividend of $0.095 per share, the same amount as last quarter, to shareholders of record on March 12, 2026, payable March 19, 2026. Conference Call and Supplemental Material The Company will host a conference call on February 26, 2026, at 5:00 PM Eastern Time to discuss the fourth quarter 2025 results and provide a business update. The conference call can be accessed by dialing (800) 346-7359 or (973) 528-0008, conference entry code 491486. A replay of the call will be available from February 26, 2026, following the call, through March 12, 2026, by dialing (800) 332-6854 or (973) 528-0005, replay conference ID 491486. Supplemental data to this press release can be found under the "Quarterly Earnings" navigation tab on the "Investors" page of our website at www.clipperrealty.com. The Company’s filings with the Securities and Exchange Commission (the "SEC") are filed at www.sec.gov under Clipper Realty Inc. About Clipper Realty Inc. Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. For more information on the Company, please visit www.clipperrealty.com. Forward-Looking Statements Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include estimates concerning capital projects and the success of specific properties. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release. We disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties), most of which are difficult to predict and many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a discussion of these and other important factors that could affect our actual results, please refer to our filings with the SEC, including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed from time to time with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260226342203/en/ Contacts Lawrence Kreider Chief Financial Officer (718) 438-2804 x2231 [email protected]

Residential performance is being driven by record-high rental demand in New York City, with new leases exceeding prior rents by approximately 13% across the portfolio. Management attributes the strong residential pricing power to a constrained housing supply and a regulatory environment that discourages new development. The company has strategically pivoted away from 250 Livingston Street following the departure of the City of New York, notifying the lender of its intent to cease supporting the property's operations. Debt restructuring is underway for 250 Livingston Street, though management cautioned that a successful outcome cannot be guaranteed. The Prospect House development in Brooklyn reached 78% occupancy in its second quarter of lease-up, achieving free market rents of approximately $85 per foot. Operational stability at 141 Livingston Street was secured through a settlement of lender claims and a five-year lease extension with the City of New York. Management expects residential demand to remain strong for the foreseeable future due to persistent supply imbalances in the New York City market. The company is focused on the full stabilization of the Prospect House development, which is expected to provide consistent cash flow once lease-up is complete. Future financial results will continue to reflect the absence of the 10 West 65th Street property following its sale in May 2025. Strategic focus remains on optimizing occupancy and pricing across the stabilized portfolio while resolving the debt situation at 250 Livingston Street. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The termination of the New York City lease at 250 Livingston Street resulted in a $4.0 million revenue decrease and a $6.1 million AFFO decline this quarter. Management has ceased making interest and real estate tax payments on the 250 Livingston Street property as part of its strategic exit. The company maintains a non-recourse debt structure on an asset-by-asset basis, with 89% of operating debt fixed at an average rate of 3.87%. Current AFFO results reflect the temporary drag of full operating expenses at Prospect House against only partial rental revenue during its initial lease-up phase. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.