Clipper Realty Inc.

Clipper Realty reported first-quarter revenue of $38.1 million, down from $39.4 million last year. NOI was $20.1 million versus $21.7 million a year ago, and AFFO was $2.3 million versus $8.0 million last year. Management attributed the year-over-year declines mainly to the 250 Livingston Street office lease termination, Prospect House initial lease-up, the absence of 10 West 65th Street after its May 2025 sale, and litigation settlement costs. On the balance sheet, the company ended the quarter with $26.1 million of unrestricted cash and $28.6 million of restricted cash. Operating debt was 89% fixed at an average rate of 3.87% with an average duration of 3.4 years. The company declared a $0.095 per share dividend for the first quarter, payable June 4, 2026 to shareholders of record on May 26, 2026.

David Bistricer emphasized that the residential business is performing very well, with rents at or near all-time highs and nearly full occupancy. He highlighted Prospect House as a major development milestone, noting it was brought online on time and on budget and is now in the late stages of lease-up. He also addressed 250 Livingston, saying the company has stopped funding operations there and is discussing a consent and cooperation agreement with the lender, while keeping options open on the property.

Larry Kreider gave the quarter’s key financial metrics and the drivers behind them: revenue of $38.1 million, NOI of $20.1 million, and AFFO of $2.3 million, all below last year. He said residential revenue rose 9%, helped by ongoing stabilized properties and Prospect House, but office revenue fell $4.0 million largely due to the 250 Livingston lease termination. He also noted $26.1 million of unrestricted cash, $28.6 million of restricted cash, and debt that is 89% fixed at 3.87% with a 3.4-year average duration. He added that the dividend stays at $0.095 per share.

Analysts focused on Flatbush Gardens and 250 Livingston. On Flatbush Gardens, management said the property is performing as planned under the Article 11 structure and that refinancing will be evaluated when appropriate, but there is no near-term conclusion yet. On 250 Livingston, management said it is not paying interest or default fees right now, and is negotiating a consent and cooperation agreement with the lender in connection with a potential debt settlement.