Clipper Realty(CLPR) - 2025 Q4 - Annual Results

Financial Performance - Quarterly revenues for Q4 2025 were $37.1 million, a decrease of 2.4% from $38.0 million in Q4 2024, with residential revenues increasing by 9.5% to $30.9 million[4] - The net loss for Q4 2025 was $11.3 million, or $0.30 per share, compared to a net loss of $1.1 million, or $0.05 per share, in Q4 2024, representing an increase in net loss of 927.3%[7] - Adjusted funds from operations (AFFO) for Q4 2025 were $1.7 million, or $0.4 per share, down from $8.1 million, or $0.19 per share, in Q4 2024, a decrease of 79.0%[8] - Net operating income (NOI) for Q4 2025 was $20.7 million, compared to $22.6 million in Q4 2024, reflecting a decline of 8.4%[4] - Commercial revenues for Q4 2025 were $6.2 million, down 36.7% from $9.8 million in Q4 2024, primarily due to the lease termination at the 250 Livingston Street property[4] - Residential rental income for Q4 2025 was $30,846, up 9.5% from $28,173 in Q4 2024[22] - Total revenues for the year ended December 31, 2025, reached $153,202, an increase of 2.9% compared to $148,775 in 2024[22] - Net loss for the year ended December 31, 2025, was $52,335, significantly higher than the net loss of $6,582 in 2024[24] - Funds from operations (FFO) for Q4 2025 was $(2,889), compared to $6,517 in Q4 2024[32] - Adjusted funds from operations (AFFO) for the year ended December 31, 2025, was $23,641, down from $28,810 in 2024[32] - Basic and diluted net loss per share for the year ended December 31, 2025, was $(1.38), compared to $(0.25) in 2024[22] - Net loss for Q4 2025 was $(11,269,000), compared to $(1,086,000) in Q4 2024, with a full year net loss of $(52,335,000) versus $(6,582,000) in 2024[35] Operating Expenses - Total operating expenses for the year ended December 31, 2025, were $149,000, up from $107,977 in 2024[22] - Interest expense for the year ended December 31, 2025, was $53,027, compared to $47,111 in 2024[22] - Cash provided by operating activities for the year ended December 31, 2025, was $22,571, down from $31,862 in 2024[24] - General and administrative expenses for Q4 2025 were $4,182,000, an increase from $3,772,000 in Q4 2024, with full year expenses at $15,523,000 compared to $14,152,000 in 2024[37] - Interest expense, net for Q4 2025 was $16,706,000, compared to $11,791,000 in Q4 2024, with full year interest expense at $53,027,000 versus $47,111,000 in 2024[35] Cash and Liquidity - Cash and cash equivalents increased to $30.8 million as of December 31, 2025, up from $19.9 million a year earlier, primarily due to strong operating cash flow[12] - Cash and cash equivalents at the end of the period increased to $58,154 from $38,052 at the beginning of the period[24] Property and Asset Management - The occupancy rate for the Prospect House property was 66.3% during its second quarter of leasing, generating $1.5 million in revenue and a net loss of $2.6 million[10] - Notes payable increased to $1,286.2 million as of December 31, 2025, compared to $1,275.4 million at the end of 2024, driven by additional borrowings related to the Prospect House[11] - The company settled lender claims at the 141 Livingston Street property, incurring $2.6 million in settlement expenses[10] Depreciation and Impairment - Real estate depreciation and amortization for Q4 2025 was $8,380,000, up from $7,604,000 in Q4 2024, with full year figures at $31,327,000 compared to $29,892,000 in 2024[35] - Loss on impairment of long-lived assets for the full year 2025 was $33,780,000, with no such loss reported in 2024[35] Other Financial Metrics - Adjusted EBITDA for Q4 2025 was $17,457,000, a decrease from $19,497,000 in Q4 2024, while the full year 2025 Adjusted EBITDA was $74,087,000, slightly down from $74,123,000 in 2024[35] - Income from operations for Q4 2025 was $8,064,000, a decrease from $10,705,000 in Q4 2024, with a full year income from operations of $4,176,000 compared to $40,529,000 in 2024[37] Litigation and Settlements - The company reported a litigation settlement and other costs of $269,000 in Q4 2024, with a total of $26,000 for the full year 2025[37] Performance Metrics - The company emphasizes that NOI is a useful measure of operating performance, capturing trends in rental housing and property operating expenses[36]