Clipper Realty Inc. Q4 FY2024 earnings call

• Record operating results including record revenue, net operating income, and AFFO due to excellent residential activity. - Strong rental demand at all properties with overall rents at all-time highs and nearly full occupancy. - New leases in Q4 exceeded prior rents by over 7% in the portfolio, with Tribeca House and Clover House leading. - Pacific House at 1010 Pacific Street is fully stabilized and 100% leased, yielding a 7% cap rate. - Ground-up development at 953 Dean Street nearing completion, to begin leasing in coming months. - Flatbush Gardens performing strongly under Article 11 agreement, with average rents rising and Section 610 benefits increasing. - Rent collections across portfolio strong, though Flatbush Gardens collection rate eased.

Residential segment: In the fourth quarter, residential revenue increased to $28.2 million, an increase of $2.9 million. This was due to strong leasing across all properties with occupancy and rental rates at all-time highs. It also benefited from $1.1 million of Section 610 rents, which is expected to increase steadily. However, it was partially offset by increased bad debt from lower collection rate at Flatbush Gardens. Commercial segment: Commercial revenue was flat compared to the previous year. Revenue contribution: Residential revenue was $28.2 million out of the total $38 million revenue, and commercial was the remaining portion.

• Look forward to optimizing the Flatbush Garden Article 11 transaction. - Anticipate the opening of 953 Dean Street development. - Finalize the five-year extension to the lease at 141 Livingston Street expiring in 2025. - Resolve the situation regarding New York City's intention to vacate 250 Livingston Street by leveraging cash flows from other properties.

• High interest rate environment which, while believed to drive tenant demand, is a general risk. - Lower collection rate at Flatbush Gardens leading to increased bad debt. - Uncertainties related to New York City's intention to vacate 250 Livingston Street and potential impacts on operations.

Q: Are there any questions?

A: Okay. We currently have no questions in the queue. I'd like to turn the floor back to management for closing remarks.