Clipper Realty Inc. (CLPR) Bundle
A Brief History of Clipper Realty Inc.
Clipper Realty Inc. (Ticker: CLPR), a real estate investment trust (REIT), focuses on owning and managing residential and commercial properties in New York City. Established as a publicly traded entity in 2015, Clipper Realty has strategically expanded its portfolio through acquisitions and developments.
Recent Financial Performance
As of September 30, 2024, Clipper Realty reported total revenues of $110.7 million for the nine months ended September 30, 2024, compared to $103.3 million for the same period in 2023, marking an increase of 7.2%. Residential rental income contributed significantly, totaling $81.7 million, up from $74.5 million in the previous year, reflecting a growth of 9.2%. Similarly, commercial rental income increased to $29.0 million from $28.9 million, a rise of 0.4%.
Income Statement Overview
| Item | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $110,728,000 | $103,338,000 | 7.2% |
| Residential Rental Income | $81,700,000 | $74,481,000 | 9.2% |
| Commercial Rental Income | $29,028,000 | $28,857,000 | 0.4% |
| Net Loss | $(5,498,000) | $(12,709,000) | 58.7% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $80.9 million, an increase from $79.2 million in 2023. The rise in expenses was primarily attributed to higher property operating costs, which increased to $26.1 million from $22.8 million, reflecting an increase of 13.7% due to enhanced property management and maintenance costs.
Balance Sheet Highlights
As of September 30, 2024, Clipper Realty's total assets amounted to $1.29 billion, up from $1.25 billion at the end of 2023. The company's liabilities were reported at $1.30 billion, with stockholders' equity showing a deficit of $(9.5 million), compared to a positive equity of $7.2 million at the end of 2023.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $1,287,017,000 | $1,249,330,000 |
| Total Liabilities | $1,296,480,000 | $1,242,095,000 |
| Total Stockholders' Equity | $(9,463,000) | $7,235,000 |
Key Properties
Clipper Realty's portfolio includes several notable properties, such as:
- Flatbush Gardens, Brooklyn, NY
- Tribeca House, Manhattan, NY
- 1010 Pacific Street, Brooklyn, NY
These properties have shown stable occupancy rates, with Tribeca House achieving a leasing rate of 99.8% as of September 30, 2024.
Market Position and Strategy
As a REIT, Clipper Realty is committed to maintaining its status for federal income tax purposes by distributing a majority of its taxable income to shareholders. The company is focused on enhancing its portfolio through strategic acquisitions and property management efficiencies, aiming to capitalize on the growing demand for residential and commercial spaces in New York City.
A Who Owns Clipper Realty Inc. (CLPR)
Ownership Structure
As of 2024, Clipper Realty Inc. (CLPR) operates as a publicly traded real estate investment trust (REIT). The share structure reflects significant ownership by institutional investors, insiders, and retail shareholders.
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | Approximately 60% |
| Insider Ownership | Approximately 15% |
| Retail Investors | Approximately 25% |
Major Shareholders
The following table details the major shareholders of Clipper Realty Inc. as of 2024:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 15.6% |
| The Vanguard Group, Inc. | 2,300,000 | 14.6% |
| Wellington Management Group LLP | 1,800,000 | 11.5% |
| Insider - David Bistricer | 1,200,000 | 7.5% |
| Others | 8,277,290 | 51.0% |
Financial Performance Metrics
Clipper Realty Inc. reported the following financial metrics for the year ended September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenues | $110.73 million |
| Net Loss | $(5.50) million |
| Net Loss per Share | $(0.05) |
| Total Assets | $1.29 billion |
| Total Liabilities | $1.30 billion |
| Total Equity (Deficit) | $(9.46) million |
Recent Developments
In August 2024, Clipper Realty declared dividends totaling $4.4 million, reflecting its ongoing commitment to distribute a significant portion of its taxable income to shareholders as required for REITs.
| Dividend Distribution | Amount | Payment Date |
|---|---|---|
| Common Shares | $3.0 million | August 22, 2024 |
| Class B LLC Units | $1.0 million | August 22, 2024 |
| LTIP Units | $0.4 million | August 22, 2024 |
Conclusion of Ownership Overview
Clipper Realty Inc. remains a significant player in the real estate market with a diversified ownership structure and strategic institutional backing, positioning it well for future growth within the New York metropolitan area.
Clipper Realty Inc. (CLPR) Mission Statement
Clipper Realty Inc. focuses on acquiring, owning, managing, operating, and repositioning multifamily residential and commercial properties in the New York metropolitan area. The company aims to enhance shareholder value through strategic property management and development while maintaining compliance with REIT regulations.
Financial Overview
As of September 30, 2024, Clipper Realty reported the following financial highlights:
| Metric | Value (in thousands) |
|---|---|
| Residential Rental Income | $81,700 |
| Commercial Rental Income | $29,028 |
| Total Revenues | $110,728 |
| Net Loss | ($5,498) |
| Net Loss Per Share | ($0.20) |
| Total Assets | $1,287,017 |
| Total Liabilities | $1,296,480 |
| Total Stockholders' Equity | ($3,584) |
Key Operational Metrics
The following operational metrics reflect the company's performance as of September 30, 2024:
| Property | Base Rent per Sq Ft | Leased Occupancy |
|---|---|---|
| Tribeca House | $82.39 | 99.8% |
| Flatbush Gardens | $29.07 | 98.6% |
| 1010 Pacific Street | $62.67 | 96.6% |
Revenue Breakdown
The revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Residential Rental Income | $76,752 | $72,529 |
| Commercial Rental Income | $28,974 | $28,845 |
| Total Revenue | $110,728 | $103,338 |
Expense Overview
Key expenses for the nine months ended September 30, 2024, are summarized below:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Property Operating Expenses | $26,098 | $22,811 |
| Real Estate Taxes and Insurance | $22,137 | $24,610 |
| General and Administrative | $10,380 | $10,029 |
| Total Operating Expenses | $80,904 | $79,183 |
Capital Structure
As of September 30, 2024, Clipper Realty's capital structure is as follows:
| Debt Type | Amount (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| Flatbush Gardens Mortgage | $329,000 | 3.125% | June 1, 2032 |
| Tribeca House Mortgage | $360,000 | 4.506% | March 6, 2028 |
| 1010 Pacific Street Mortgage | $60,000 | 5.55% | September 15, 2025 |
| Dean Street Development Loan | $91,173 | SOFR + 4% | August 10, 2026 |
Dividend Policy
Clipper Realty declared dividends and distributions totaling $4.4 million on August 1, 2024, paid on August 22, 2024. This reflects a commitment to return value to shareholders while adhering to REIT distribution requirements.
How Clipper Realty Inc. (CLPR) Works
Business Overview
Clipper Realty Inc. operates as a real estate investment trust (REIT) focused on acquiring, owning, and managing residential and commercial properties primarily in New York City. As of September 30, 2024, the company reported total assets of approximately $1.287 billion, with a significant portion allocated to residential properties valued at $970.9 million and commercial properties at $316.2 million.
Financial Performance
For the nine months ended September 30, 2024, Clipper Realty generated total revenues of $110.7 million, an increase from $103.3 million in the same period of 2023, reflecting a growth of 7.9% year-over-year.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $110,728,000 | $103,338,000 | 4.3% |
| Net Loss | $(4,653,000) | $(12,709,000) | 63.4% |
| Basic and Diluted Net Loss per Share | $(0.20) | $(0.36) | 44.4% |
Revenue Breakdown
The revenue streams for Clipper Realty consist mainly of residential and commercial rental income. For the nine months ended September 30, 2024, residential rental income reached $81.7 million, while commercial rental income was reported at $28.9 million.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Residential Rental Income | $81,700,000 | $74,481,000 |
| Commercial Rental Income | $28,974,000 | $28,845,000 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $80.9 million, compared to $79.2 million in 2023, reflecting a modest increase driven primarily by higher property operating expenses.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Property Operating Expenses | $26,100,000 | $22,811,000 |
| Real Estate Taxes and Insurance | $22,137,000 | $24,610,000 |
| General and Administrative | $10,380,000 | $10,029,000 |
| Depreciation and Amortization | $22,289,000 | $21,376,000 |
Debt and Financing
As of September 30, 2024, Clipper Realty had total indebtedness of approximately $1.258 billion. The company has various mortgage notes with differing maturity dates and interest rates, including a $329 million mortgage on Flatbush Gardens with a 3.125% interest rate maturing in June 2032.
| Property | Loan Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Flatbush Gardens | $329,000,000 | 3.125% | June 1, 2032 |
| 250 Livingston Street | $125,000,000 | 3.63% | June 6, 2029 |
| Tribeca House | $360,000,000 | 4.506% | March 6, 2028 |
Capital Expenditures
For the nine months ended September 30, 2024, Clipper Realty had capital expenditures totaling $59.8 million, significantly higher than $28.3 million in the same period of the previous year, driven by investments in property improvements and development projects.
Occupancy Rates
As of September 30, 2024, occupancy rates for key properties were as follows:
| Property | Occupancy Rate |
|---|---|
| Tribeca House | 99.8% |
| Flatbush Gardens | 98.6% |
| 1010 Pacific Street | 96.6% |
Conclusion on Financial Position
Clipper Realty Inc. continues to demonstrate resilience in its business model, with a solid increase in revenues and a substantial reduction in net loss compared to the previous year. The company’s strategic focus on property management and development in the competitive New York market positions it well for future growth.
How Clipper Realty Inc. (CLPR) Makes Money
Revenue Sources
Clipper Realty Inc. generates its revenue primarily from two segments: residential and commercial rental income. For the nine months ended September 30, 2024, the total revenues were $110.728 million, which represents an increase from $103.338 million in the same period of 2023.
| Revenue Type | 2024 (Nine Months) | 2023 (Nine Months) | Increase/Decrease |
|---|---|---|---|
| Residential Rental Income | $81.700 million | $74.481 million | $7.219 million |
| Commercial Rental Income | $29.028 million | $28.857 million | $0.171 million |
| Total Revenues | $110.728 million | $103.338 million | $7.390 million |
Residential Rental Income
Residential rental income was $81.700 million for the nine months ended September 30, 2024, reflecting an increase of 9.7% from $74.481 million in 2023. This growth was driven by higher rental rates and improved occupancy across properties. Notably, the average base rent per square foot at the Tribeca House increased to $82.39 (99.8% leased occupancy) in 2024 from $78.22 (98.2% leased occupancy) in 2023. Other residential properties also saw similar increases.
Commercial Rental Income
Commercial rental income reached $29.028 million for the nine months ended September 30, 2024, slightly up from $28.857 million in the previous year. The increase was attributed to higher property tax reimbursement income at the company's office properties, offset by lower rents at some locations.
Operating Expenses
Operating expenses for Clipper Realty Inc. totaled $80.904 million for the nine months ended September 30, 2024, compared to $79.183 million for the same period in 2023. This represents an increase of $1.721 million, primarily due to increased property operating expenses and general administrative costs.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) | Increase/Decrease |
|---|---|---|---|
| Property Operating Expenses | $26.098 million | $22.811 million | $3.287 million |
| Real Estate Taxes & Insurance | $22.137 million | $24.610 million | $(2.473) million |
| General and Administrative | $10.380 million | $10.029 million | $0.351 million |
| Depreciation and Amortization | $22.289 million | $21.376 million | $0.913 million |
| Total Operating Expenses | $80.904 million | $79.183 million | $1.721 million |
Income from Operations
Income from operations for the nine months ended September 30, 2024, was $29.824 million, an increase from $24.155 million in 2023, reflecting a robust operational performance amid rising revenues.
Interest Expenses
Interest expense, net, totaled $35.320 million for the nine months ended September 30, 2024, compared to $32.996 million in 2023, primarily due to increased borrowings related to property investments.
Net Loss
For the nine months ended September 30, 2024, Clipper Realty Inc. reported a net loss of $5.496 million, significantly improved from a net loss of $12.709 million in the same period of 2023.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Loss | $(5.496) million | $(12.709) million | $7.213 million |
| Net Loss Attributable to Common Stockholders | $(2.082) million | $(4.817) million | $2.735 million |
Cash Flow Analysis
Net cash provided by operating activities was $21.337 million for the nine months ended September 30, 2024, compared to $17.130 million in the previous year, indicating improved cash generation capabilities.
| Cash Flow Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Operating Activities | $21.337 million | $17.130 million |
| Investing Activities | $(57.097) million | $(27.783) million |
| Financing Activities | $35.629 million | $17.341 million |
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Article updated on 8 Nov 2024
Resources:
- Clipper Realty Inc. (CLPR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Clipper Realty Inc. (CLPR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Clipper Realty Inc. (CLPR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.