Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Albert Anthony & Company is a Texas-registered boutique equities research firm managed remotely by the author [1] Professional Background - The author has participated in numerous business and innovation conferences in both the US and Croatia, enhancing his industry knowledge [1] - He holds a B.A. in Political Science from Drew University and has various certifications in Microsoft Fundamentals and CompTIA Project+ [1] - Currently, he is pursuing ongoing certification in Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis [1] Media Presence - Albert Anthony is expanding his presence on YouTube, focusing on REITs and sharing insights as an active investor [1] - He does not engage with non-publicly traded companies, small cap stocks, or startup CEOs, ensuring a focus on publicly available data [1]

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Core Viewpoint - Clipper Realty Inc. held its Q3 2025 earnings call, discussing financial performance and future outlook [2][5]. Financial Performance - The call included discussions on non-GAAP financial measures such as adjusted funds from operations (AFFO), adjusted EBITDA, and net operating income (NOI) [4]. Management Participation - Key management figures participating in the call included David Bistricer (Co-Chairman and CEO), J.J. Bistricer (COO), and Larry Kreider (CFO) [2][5].

Core Insights - Clipper Realty Inc. (CLPR) reported quarterly funds from operations (FFO) of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, but down from $0.18 per share a year ago, indicating a FFO surprise of +30.00% [1] - The company posted revenues of $37.7 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.53%, and showing a marginal increase from $37.62 million year-over-year [2] - Clipper Realty has consistently surpassed consensus FFO estimates over the last four quarters, but has not been able to beat revenue estimates during the same period [2] Financial Performance - The FFO for the previous quarter was $0.20 per share, which was a surprise of +33.33% compared to the expected $0.15 per share [1] - The current consensus FFO estimate for the upcoming quarter is $0.10 on revenues of $36.2 million, and for the current fiscal year, it is $0.55 on revenues of $152.5 million [7] Market Position - Clipper Realty shares have underperformed the market, losing about 18.8% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 27% of over 250 Zacks industries, indicating a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in estimate revisions [3][4] - The estimate revisions trend for Clipper Realty was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported flat revenues of $37.7 million compared to $37.6 million in the previous year, with a decrease in NOI from $21.8 million to $20.8 million and a decline in AFFO from $7.8 million to $5.6 million [10][11][12] Business Line Data and Key Metrics Changes - Residential properties are performing well, with overall occupancy at 99% and new rental rates exceeding previous rents by over 14% [4][7] - The newly completed Prospect House is currently 60% leased with pre-market rents at $88 per sq ft [5][8] - The Clover House property achieved 100% occupancy with average rents at $88 per sq ft and new leases at $95 per sq ft [7][8] Market Data and Key Metrics Changes - The overall collection rate for residential properties was approximately 95%, with Clover Gardens at 92% [9] - The demand for residential leasing is expected to remain strong due to constrained rental housing supply in New York City [7] Company Strategy and Development Direction - The company is focused on optimizing capacity, pricing, and expenses to position itself for growth [9] - Future plans include full lease-up of Prospect House and finalizing negotiations for properties at 141 and 250 Livingston [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance of residential properties and anticipated continued high demand for rentals [4][7] - The company is actively working to bring office properties back to a cash flow position [5] Other Important Information - The company announced a dividend of $0.095 per share for Q3 2025, consistent with the previous quarter [14] - The balance sheet shows $26.1 million in unrestricted cash and $30.6 million in restricted cash, with 88% of operating debt fixed at an average rate of 3.87% [13] Q&A Session Summary - There were no questions from participants during the Q&A session [17]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $37.698 million, a slight increase from $37.622 million in the same period of 2024, representing a growth of 0.2%[13] - Residential rental income increased to $29.773 million for the three months ended September 30, 2025, compared to $27.846 million in 2024, reflecting a growth of 6.9%[13] - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $1.751 million, compared to a loss of $412,000 in the same period of 2024, indicating a significant increase in losses[13] - For the nine months ended September 30, 2025, the net loss was $41,066,000 compared to a net loss of $5,496,000 for the same period in 2024, indicating a significant increase in losses[18] - The net loss for the three months ended September 30, 2025, was $4.607 million, compared to a net loss of $1.088 million in the same period of 2024, indicating a significant decline[148] Assets and Liabilities - Total assets as of September 30, 2025, were $1.238 billion, a decrease from $1.287 billion as of December 31, 2024[11] - Total liabilities stood at $1.304 billion as of September 30, 2025, slightly up from $1.301 billion at the end of 2024[11] - The company reported an accumulated deficit of $115.723 million as of September 30, 2025, compared to $95.507 million at the end of 2024[11] - The total debt as of September 30, 2025, was $1,281,158,000, compared to $1,275,359,000 as of December 31, 2024, showing a slight increase of 0.45%[70] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $28.813 million, an increase from $26.870 million in the same period of 2024, representing a rise of 7.2%[13] - Interest expense for the nine months ended September 30, 2025, was $36.321 million, compared to $35.320 million in the same period of 2024, indicating a slight increase[13] - Interest expense for the three months ended September 30, 2025, was $13.320 million, compared to $11.840 million in the same period of 2024, indicating an increase of approximately 12.5%[148] Cash Flow and Financing - Cash provided by operating activities for the nine months ended September 30, 2025, was $16,464,000, down from $21,337,000 in 2024[18] - The company made payments of mortgage notes totaling $163,639,000 during the nine months ended September 30, 2025[18] - The company completed the sale of a property at 10 West 65th Street for gross proceeds of $45,500,000, incurring $1,900,000 in closing costs[22] - The company entered into a Loan Agreement for $84.5 million with a maturity date of October 6, 2030, bearing an interest rate of 5.73%[101] Impairment and Reserves - The company reported a loss on impairment of long-lived assets amounting to $33.780 million for the nine months ended September 30, 2025, which was not present in the same period of 2024[13] - The company recorded a loss on impairment of long-lived assets amounting to $33,780,000 during the three months ended March 31, 2025[22] - The Company recorded a general reserve under ASC 450 for receivables probable of collection, reflecting a proactive approach to managing credit risk[46] Real Estate and Leasing - The company has a significant dependency on two commercial leases with the City of New York, with one lease terminating on August 23, 2025, and the other expiring on December 27, 2025, which poses a risk to financial stability[9] - The City of New York's lease termination for 342,496 square feet resulted in a loss of approximately $16,000 per annum in rental income[116] - The Company signed a lease amendment with Equinox extending the lease term to August 31, 2040, with increased rent and renovation credits[117] Legal and Compliance - An event of default occurred under the $125,000 building mortgage loan due to failure to deposit all revenue into the cash management account, which could lead to foreclosure proceedings[74] - The Company received notice of default due to the Guarantor's alleged failure to maintain a net worth of at least $100,000 as of December 31, 2022, and 2023[82] - The Company is subject to a claim from New York City for $1,152 million based on an audit of operating expense escalation charges from June 2014 to December 2018[130] Capital Expenditures - Capital expenditures for the three months ended September 30, 2025, totaled $4.659 million, a decrease from $11.840 million in the same period of 2024, representing a decline of approximately 60.5%[149] - The Company spent approximately $18,900 million on capital improvements required under the Housing Repair and Maintenance Letter Agreement through September 30, 2025[139] Related Party Transactions - The Company recorded related-party expenses of $60 million for Q3 2025, compared to $112 million for Q3 2024[143] Dividends and Distributions - The Company is required to distribute dividends equal to at least 90% of the REIT taxable income to qualify as a REIT, impacting its cash flow management strategy[58] - The company declared distributions totaling $4.614 million on November 13, 2025, for its common shares, Class B LLC units, and LTIP units[156]

Financial Performance - For Q3 2025, total revenues were $37.7 million, a slight increase from $37.6 million in Q3 2024, with residential revenue rising by $1.9 million (6.9%) and commercial revenue decreasing by $1.8 million[5]. - The net loss for Q3 2025 was $5.6 million ($0.14 per share), compared to a net loss of $1.1 million ($0.05 per share) in Q3 2024, primarily due to the impact of the Prospect House and the termination of the New York City lease at the 250 Livingston Street property[6]. - Adjusted funds from operations (AFFO) for Q3 2025 were $5.6 million ($0.13 per share), down from $7.8 million ($0.18 per share) in Q3 2024[7]. - Net operating income (NOI) for Q3 2025 was $20.8 million, compared to $21.8 million in Q3 2024[8]. - Net loss for the nine months ended September 30, 2025, was $41,066,000, compared to a net loss of $5,496,000 for the same period in 2024[22]. - Funds from Operations (FFO) for the nine months ended September 30, 2025, was $(18,119,000), compared to $16,793,000 for the same period in 2024[30]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $56,631,000, compared to $54,629,000 for the same period in 2024, indicating an increase of approximately 4%[34]. - Net Operating Income (NOI) for the nine months ended September 30, 2025, was $64,673,000, compared to $63,022,000 for the same period in 2024, reflecting a growth of about 2.6%[36]. Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2025, was $16,464,000, down from $21,337,000 in 2024, representing a decrease of approximately 23%[22]. - Cash and cash equivalents and restricted cash at the end of the period was $56,645,000, up from $36,094,000 at the end of the previous period, marking an increase of approximately 57%[22]. - Total cash paid for interest for the nine months ended September 30, 2025, was $35,675,000, compared to $32,672,000 in 2024, representing an increase of about 9%[22]. - Cash used in financing activities for the nine months ended September 30, 2025, was $(10,752,000), a significant decrease from $35,629,000 in 2024[22]. Expenses and Impairments - The company experienced increased operating expenses, including higher property operating expenses and real estate taxes, contributing to the net loss[6]. - The company recorded an impairment of long-lived assets amounting to $33,780,000 during the nine months ended September 30, 2025[22]. - The company reported stock-based compensation of $3,298,000 for the nine months ended September 30, 2025, compared to $1,987,000 in 2024, indicating an increase of approximately 66%[22]. Dividends and Occupancy - The company declared a dividend of $0.095 per share for Q3 2025, consistent with the previous quarter[11]. - The occupancy rate for residential properties remained high, with new leases exceeding previous rents by nearly 14% and renewals by over 6%[3]. - The Prospect House property is in its initial lease-up phase, generating limited initial revenue but incurring fully loaded expenses[4]. Property Management - The company is actively seeking solutions for the vacancy at the 250 Livingston Street commercial property following the tenant's departure in mid-August[3].

Core Insights - Clipper Realty Inc. reported third quarter 2025 results, highlighting strong occupancy and rental demand in residential properties, with new leases exceeding previous rents by nearly 14% and renewals by over 6% [3][5][6] Financial Performance - Total revenues for Q3 2025 were $37.7 million, slightly up from $37.6 million in Q3 2024, with residential revenue increasing by $1.9 million (6.9%) [5][6] - Net operating income (NOI) for Q3 2025 was $20.8 million, down from $21.8 million in the same period last year [6][8] - The company reported a net loss of $4.6 million ($0.14 per share) for Q3 2025, compared to a net loss of $1.1 million ($0.05 per share) in Q3 2024 [7][8] - Adjusted funds from operations (AFFO) were $5.6 million ($0.13 per share) for Q3 2025, down from $7.8 million ($0.18 per share) in Q3 2024 [8][28] Operational Highlights - The Prospect House property in Brooklyn commenced operations in August 2025, contributing to initial lease-up but generating limited revenue due to full expenses [4][6] - The company faced a decrease in commercial revenue by $1.8 million due to the termination of a lease with a New York City tenant at the 250 Livingston Street property [5][6] - Clipper Realty declared a dividend of $0.095 per share for Q3 2025, consistent with the previous quarter [10] Balance Sheet Overview - As of September 30, 2025, notes payable were $1,281.2 million, reflecting an increase from $1,275.4 million at the end of 2024, primarily due to additional borrowings related to the Prospect House [9]

Core Viewpoint - Clipper Realty Inc. will release its financial results for Q3 2025 on November 13, 2025, after market close, and will host a conference call to discuss these results and provide a business update [1]. Financial Results Announcement - The financial results for the quarter ended September 30, 2025, will be announced after the market closes on November 13, 2025 [1]. - A conference call is scheduled for the same day at 5:00 PM (ET) to discuss the financial results and provide a business update [1].

Group 1 - The Federal Reserve Chair, Jerome Powell, indicated in his speech that interest rates are likely to be cut soon [1] - The speech took place at the Federal Reserve's annual symposium in Jackson Hole, which is a significant event for economic policy discussions [1] Group 2 - The company invests substantial resources, over $100,000 annually, into researching profitable investment opportunities [2] - The approach has garnered over 500 five-star reviews from members who have benefited from the strategies provided [2]