In This Article:
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Revenue: Record quarterly revenue of $38 million, up from $34.9 million last year, a 9.1% increase.
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Net Operating Income (NOI): Increased to $22.5 million from $20 million last year, a 12.5% increase.
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Adjusted Funds From Operations (AFFO): Increased to $8.1 million from $6.3 million, a 29% increase.
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Residential Revenue: Increased to $28.2 million, up by $2.9 million due to strong leasing.
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Occupancy Rate: Residential properties were 99% leased.
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Rent Collection Rate: Overall collection rate was 97% in the fourth quarter.
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Interest Expense: Decreased by $80,000 due to slightly lower rates on variable rate debt.
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Cash Position: $19.9 million of unrestricted cash and $18.2 million of restricted cash.
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Dividend: Announced a dividend of $0.095 per share for the fourth quarter.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Clipper Realty Inc (NYSE:CLPR) reported record operating results, including record revenue, net operating income, and adjusted funds from operations (AFFO) due to strong residential activity.
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Rental demand remains strong across all properties, with new leases exceeding prior rents by over 7%, particularly in Tribeca House and Clover House.
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The Pacific House development is fully stabilized, 100% leased, and contributing to cash flow with a 7% cap rate.
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The company is benefiting from a full abatement of real estate taxes under the Article 11 agreement, enhancing rental recoveries for assisted tenants.
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Clipper Realty Inc (NYSE:CLPR) achieved record quarterly revenue of $38 million, a 9.1% increase from the previous year, driven by strong leasing performance.
Negative Points
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The Flatbush Gardens property experienced a decrease in rent collection rates, dropping to 88% and 92% in the last two quarters.
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Increased bad debt was noted due to lower collection rates at Flatbush Gardens, partially offsetting revenue gains.
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Property operating expenses increased by $257,000 year over year, primarily due to prevailing wage requirements under the Article 11 agreement.
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Real estate taxes and insurance costs increased by $293,000 year over year, despite the tax abatement at Flatbush Gardens.
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The company faces uncertainty with the upcoming vacancy of the 250 Livingston property as New York City plans to vacate in August 2025.
Q & A Highlights
Q: Can you provide an update on the leasing performance and occupancy rates across your properties? A: JJ Bistricer, Chief Operating Officer, reported that residential leasing is very strong, with properties 99% leased and rents at record levels. New and renewal rental rates in the fourth quarter exceeded previous rents by over 7%. Tribeca House and Clover House properties have leased occupancy of over 98%, with rents per square foot at $82 and $86, respectively.