Clipper Realty Inc. Q1 FY2025 earnings call

• Record revenue and residential rents were reported, with near record net operating income and AFFO seasonally adjusted. High rental demand drove results, with rents at all-time highs and nearly full occupancy. New leases across the portfolio exceeded prior rent by over 15% in Q1. - Construction on 953 Dean Street in Brooklyn is substantially complete on time and budget, with leasing to commence June 1st. The property was refinanced with a $160 million loan, providing excess proceeds for various uses. - Pacific House in Brooklyn is stabilized and contributing to cash flow. The company entered a definitive contract to sell 10 West 65th Street in Manhattan for $45.5 million, expected to close in Q2. - 141 Livingston Street has received a five-year renewal, being processed by the company. Rent collections across the portfolio were strong, with nearly 98% collection in Q1.

In the first quarter, Clipper Realty achieved record revenue of $39.4 million, a 10.2% increase from the previous year. Residential revenue was $29.2 million, an increase of $3.1 million due to strong leasing and all-time high occupancy and rental rates. Commercial revenue was higher by $0.6 million compared to the prior year as smaller retail vacancies were filled at favorable rates. NOI increased to $21.8 million, an 8% increase, and AFFO rose to $8 million, a 36% increase.

• Focus on optimizing occupancy, pricing, and expenses to position for growth. - Anticipate the opening of the 953 Dean Street development, finalizing the sale of 10 West 65th Street, finalizing the 141 Livingston Street lease, and resolving the 250 Livingston Street vacancy. - Look to capitalize on other potential opportunities.

Q: Please comment on the 141 Livingston lease and terms, including potential new lease rates and tenant improvements.

A: The current proposal doesn't require tenant improvements, and the company hopes to finalize it in the next couple of weeks.