Clipper Realty(CLPR) - 2025 Q3 - Quarterly Results

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].