Clipper Realty(CLPR) - 2024 Q1 - Quarterly Results

Financial Performance - Record quarterly revenues of $35.8 million for Q1 2024, an increase of $2.1 million or 6.2% compared to Q1 2023[12] - Quarterly net operating income (NOI) reached $20.2 million for Q1 2024, up from $17.1 million in Q1 2023, representing a 17.8% increase[12] - Adjusted funds from operations (AFFO) for Q1 2024 were $5.9 million, or $0.14 per share, compared to $4.5 million, or $0.11 per share, for Q1 2023, marking a 31.1% increase[25] - The company reported a net loss of $2.7 million for Q1 2024, significantly improved from a net loss of $7.1 million in Q1 2023[13] - The company achieved an adjusted EBITDA of $17.2 million for Q1 2024, compared to $14.5 million in Q1 2023, reflecting a 18.7% increase[37] - FFO for Q1 2024 was reported at $4,713, compared to a negative FFO of $264 in Q1 2023[49] - AFFO for Q1 2024 was $5,899, an increase from $4,476 in Q1 2023, with an AFFO per share of $0.14[49] Revenue Sources - Residential rental income increased by $2.2 million, or 9.0%, to $26.1 million in Q1 2024, driven by higher rental rates[28] - The company experienced a decrease in commercial rental income by $0.1 million, or 0.9%, in Q1 2024 due to expired leases[28] - The company reported record revenue and NOI for Q1 2024, with new leases renting at over 7% above previous rents and renewals over 6%[40] Expenses and Investments - Total operating expenses for Q1 2024 were $26.7 million, slightly down from $26.8 million in Q1 2023[32] - Total investment in real estate increased to $1,423,127, up from $1,402,190 as of December 31, 2023[44] Dividends and Cash Flow - The company declared a dividend of $0.095 per share for Q1 2024, consistent with the previous quarter[26] - Cash and cash equivalents at the end of the period were $21,882, down from $22,163 at the beginning of the period[46] Property Developments - The company is actively seeking solutions for its 250 Livingston Street property, which is set to vacate in late August 2025[40] - The Dean Street new development is progressing ahead of schedule, with completion expected next year[40] Assets and Liabilities - As of March 31, 2024, notes payable increased to $1,239.0 million from $1,219.0 million at the end of 2023, primarily due to development draws[29] - The company reported a total of $1,263,943 in total assets as of March 31, 2024, compared to $1,249,330 as of December 31, 2023[44] NOI Definition and Importance - NOI is defined as income from operations plus various costs and adjustments, providing a clearer view of operating performance[51] - NOI is used to evaluate the core operations of property performance and trends in rental housing and operating expenses[51] - NOI is a widely recognized metric in property valuation, indicating its importance in assessing company performance[51]