Clipper Realty(CLPR) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics - The company reported record revenue of $35.8 million in Q1 2024, up from$33.7 million in Q1 2023, an increase of $2.1 million or 6.2$20.2 million, an increase of $3.1 million from the previous year [17] - Adjusted Funds From Operations (AFFO) for Q1 2024 was$5.9 million, up $1.4 million from the previous year [17] - The company has$21.9 million in unrestricted cash and $18.3 million in restricted cash [1] - Interest expense increased by$1.6 million year-on-year in Q1 2024, primarily due to the elimination of capitalized interest for Pacific House [14] Business Line Performance - Residential revenue increased to $26.1 million in Q1 2024, up$2.1 million from the previous year, driven by higher rental rates across all properties [17] - Commercial rental income saw a slight decline due to lease issues at the Aspen property, one of which has been replaced [13] - Bad debt expense improved by $0.2 million year-on-year, reflecting better collections across all properties [13] Market Performance - Residential properties achieved an average occupancy rate of 98$78 from $63 at the end of the pandemic [29] - Clover House achieved average rents of nearly$83 per square foot with over 97% occupancy [29] - Pacific House is 100% leased, with free market rents above $78 per square foot and operating cash flows achieving a projected 7$0.095 per share for Q1 2024, consistent with the previous quarter [1] - The company is proceeding ahead of schedule with the construction of the 923 Dean Street development, which is expected to be completed in time for the 2025 leasing season [16] - The company is addressing the potential vacancy at 250 Livingston Street, where New York City plans to vacate the premises in August 2025, by seeking solutions supported by cash flows from other properties [3] Q&A Session - No questions were asked during the Q&A session [24]