Clipper Realty (CLPR) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly revenues of $38.0 million, up 9.1% year-over-year, driven by strong residential leasing and high occupancy rates.

• Net operating income (NOI) reached a record $22.5 million, and adjusted funds from operations (AFFO) hit $8.1 million for the quarter.

• Net loss narrowed to $1.1 million ($0.05 per share) from $2.9 million ($0.09 per share) in the prior year quarter, reflecting higher rental revenue offset by increased property taxes and payroll costs.

• Declared a quarterly dividend of $0.095 per share, unchanged from the previous quarter.

Financial highlights

• Residential revenue rose $2.9 million (11.6%) year-over-year, with new leases exceeding previous rents by nearly 10% and renewals by nearly 6%.

• Commercial income increased $0.2 million (2.5%) due to higher escalation income at 250 Livingston.

• AFFO per share was $0.19, up from $0.15 in the prior year quarter.

• Adjusted EBITDA for the quarter was $19.5 million, up from $17.6 million a year ago.

Outlook and guidance

• Dean Street new development is progressing ahead of schedule, with expected completion early in 2025 to capture the leasing season.

• Actively marketing select properties, including 10W 65th Street, to recycle assets and improve cash flow, even if it results in some loss compared to book value.

• Ongoing discussions for lease renewal at 141 Livingston Street and seeking solutions for 250 Livingston Street as NYC plans to vacate in August 2025.