February 14, 2025 04:01 PM Eastern Standard Time

NEW YORK--(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, 2024.

Highlights for the Three Months Ended December 31, 2024

• Record quarterly revenues of $38.0 million for the fourth quarter of 2024
• Quarterly income from operations of $10.7 million for the fourth quarter of 2024
• Record net operating income (“NOI”)¹ of $22.5 million for the fourth quarter of 2024
• Quarterly net loss of $1.1 million for the fourth quarter of 2024
• Record adjusted funds from operations (“AFFO”)¹ of $8.1 million for the fourth quarter of 2024
• Declared a dividend of $0.095 per share for the fourth quarter of 2024

David Bistricer, Co-Chairman, and Chief Executive Officer, commented, “The Company continued to grow its revenue, NOI and AFFO in the fourth quarter of 2024, producing record results for all these metrics on the basis of our very strong residential leasing. We continue to have high occupancy and good renter demand in our buildings. For all our properties, new leases exceeded previous rents by nearly 10% and renewals by nearly 6%. At Flatbush Gardens, as a result of the Article 11 agreement with New York City, we are continuing to increase enhanced rental recoveries under Section 610 as we continue to make the committed capital improvements and other improvements in the property. At our 250 Livingston Street property, where we previously disclosed New York City’s notification of its intention to vacate in late August 2025, we continue to actively seek solutions and pursue opportunities. At our nearby 141 Livingston Street property, we are in active discussions for a lease renewal. Our Dean Street new development continues to progress ahead of schedule, and we are confident of an on-time completion early this year to capture the 2025 leasing season. Lastly, we continue to consider recycling properties in our portfolio to maximize performance and improve cash flow. As such, we are continuing marketing activities for some of our properties, including our 10W 65^th Street property, which, while potentially resulting in some loss compared to book value, would allow us to achieve better overall returns going forward. We will announce any definitive arrangements promptly as they arise.”

Financial Results for the Three Months Ended December 31, 2024

For the fourth quarter of 2024, revenues increased by $3.2 million, or 9.1%, to $38.0 million as compared to revenue of $34.9 million during the fourth quarter of 2023. Residential revenue increased by $2.9 million, or 11.6%, driven by higher rental rates and occupancy at all our residential properties partially offset increased bad debt expense at the Flatbush Gardens property. Commercial income increased by $0.2 million, or 2.5%, in the fourth quarter of 2024 due to higher escalation income at our 250 Livingston office property.

For the fourth quarter of 2024, net loss was $1.1 million, or $0.05 per share compared to net loss of $2.9 million, or $0.09 per share, for the fourth quarter of 2023. The lower net loss as compared to last year was primarily due to increased rental revenue discussed above, partially offset by higher property taxes at properties other than Flatbush Gardens and, at Flatbush Gardens, higher payroll costs from “prevailing wage” requirements under the Article 11 transaction, an increase in repairs and maintenance workers, and higher depreciation expense from capital spending.

For the fourth quarter of 2024, AFFO was $8.1 million, or $0.19 per share, compared to $6.3 million, or $0.15 per share, for the fourth quarter of 2023. As discussed above, the increase was primarily due to increased rental revenue partially offset by higher property taxes and higher payroll costs.

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.

Balance Sheet

At December 31, 2024, notes payable (excluding unamortized loan costs) was $1,275.4 million, compared to $1,219.0 million at December 31, 2023. The increase was primarily due to draws made on Dean Street development construction loan.

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 19, 2025, payable April 3, 2025.

Conference Call and Supplemental Material

The Company will host a conference call on February 18, 2025, at 5:00 PM Eastern Time to discuss the fourth quarter 2024 results and provide a business update. The conference call can be accessed by dialing (800) 346-7359 or (973) 528-0008, conference entry code 225351. A replay of the call will be available from February 18, 2025, following the call, through March 4, 2025, by dialing (800) 332-6854 or (973) 528-0005, replay conference ID 225351. 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.