Clipper Realty Inc. Announces Fourth Quarter 2025 Results

Clipper Realty Inc. Announces Fourth Quarter 2025 Results NEW YORK--( BUSINESS WIRE)--Clipper Realty Inc. (NYSE: CLPR) (the “Company”), a leading owner and operator of multifamily residential and commercial properties in the New York metropolitan area, today announced financial and operating results for the three months ended December 31, 2025.

Highlights for the Three Months Ended December 31, 2025

David Bistricer, Co-Chairman, and Chief Executive Officer, commented,

“For the quarter, the main highlights are continued strong residential leasing and significant progress made towards resolving lender issues at our two major office properties. The residential properties continued to have high occupancy and strong renter demand. New leases exceeded previous rents by nearly 13% and renewals by over 7% and our major residential properties are leased at record levels. Furthermore, our new Prospect House property at 953 Dean Street in Brooklyn, NY is in its second quarter of lease up and leasing well. At our 141 Livingston Street office property, we are pleased to have substantially settled the lender’s claims which we had disputed.”

Financial Results for the Three Months Ended December 31, 2025

Our results reflect the strength of residential leasing and progress towards resolving issues at our two major office properties. As noted above, residential increased 9.5% and residential rents are at record levels. We have made significant progress in dealing with issues at our two major office properties, where, at the 141 Livingston Street property, we have resolved lender claims, and, at the 250 Livingston Street property, we have actively begun working with our lender. The following further describes significant items that influenced the financial results of the Company:

Revenues. For the fourth quarter of 2025, revenues were $37.1 million as compared to revenue of $38.0 million during the fourth quarter of 2024, a decrease of $0.9 million. These results include increased residential revenue of $2.7 million due to increases in rental rates and high occupancy at all stabilized properties ($2.2 million), limited additional revenue from the Prospect House property now in its second quarter of leasing ($1.5 million), less the absence of residential revenue from the 10 West 65 th Street property sold in May 2025 ($1.0 million). Commercial revenue decreased by $3.6 million compared to the prior year because of increased commercial revenue from new leases of vacant space at the Tribeca House and Aspen properties ($0.3 million) less a decrease in revenue at the 250 Livingston Street office property because of the New York City lease termination described above ($3.9 million).

Net Loss. For the fourth quarter of 2025, net loss was $11.3 million ($0.30 per share) compared to net loss of $1.1 million ($0.05 per share) for the fourth quarter of 2024, an increase in net loss of $10.2 million. For residential properties, these results include greater revenue from the strong leasing discussed above net of higher expenses (primarily property level payroll and utility expense and greater amortization of stock-based executive compensation) ($0.6 million), the net loss from the Prospect House property in its initial leasing period ($2.6 million), and the absence of net loss from the 10 West 65 th Street property sold in May 2025 ($0.5 million). For commercial office properties, the increased net loss, as more fully described above, resulted from the New York City lease termination in August 2025 at the 250 Livingston Street property ($6.1 million), and the expense of settling disputed issues with the lender to the 141 Livingston Street office property ($2.6 million).

AFFO. For the fourth quarter of 2025, AFFO was $1.7 million, or $0.4 per share, compared to $8.1 million, or $0.19 per share, for the fourth quarter of 2024, a decrease of $6.4 million. These results include an increase in AFFO from residential properties because of the improved revenue noted above, less negative AFFO from the Prospect House initial leasing period plus the absence of negative AFFO from the 10 West 65 th Street property sold in May 2025. As the reasons discussed above, the 250 Livingston Street office property incurred greater negative AFFO because of the New York City lease termination.

Balance Sheet

On December 31, 2025, notes payable (excluding unamortized loan costs) were $1,286.2 million, compared to $1,275.4 million at December 31, 2024. The increase was primarily due to additional borrowings on the Prospect House bridge loan refinancing in May including additional draws through December 2025 substantially offset by debt retired in the sale of the 10 West 65 th Street property in May 2025.

On December 31, 2025, cash and cash equivalents were $30.8 million compared to $19.9 million at December 31, 2024, and restricted cash was $27.3 million at December 31, 2025, compared to $18.2 million at December 31, 2024. The increase in cash and cash equivalents was primarily due to strong operating cash flow from our residential properties net of capital spending, net proceeds from the sale of the 10 West 65 th Street property, net proceeds from the Prospect House bridge loan refinancing in May less additional escrow payments at the 250 Livingston Street property and payment of distributions. The increase in restricted cash was primarily due to the escrow payments at the 250 Livingston Street property and escrow accounts established in the Prospect House bridge loan refinancing.

Dividend

The Company today declared a fourth quarter dividend of $0.095 per share, the same amount as last quarter, to shareholders of record on March 12, 2026, payable March 19, 2026.

Conference Call and Supplemental Material

The Company will host a conference call on February 26, 2026, at 5:00 PM Eastern Time to discuss the fourth quarter 2025 results and provide a business update. The conference call can be accessed by dialing (800) 346-7359 or (973) 528-0008, conference entry code 491486. A replay of the call will be available from February 26, 2026, following the call, through March 12, 2026, by dialing (800) 332-6854 or (973) 528-0005, replay conference ID 491486. Supplemental data to this press release can be found under the “Quarterly Earnings” navigation tab on the “Investors” page of our website at www.clipperrealty.com. The Company’s filings with the Securities and Exchange Commission (the “SEC”) are filed at www.sec.gov under Clipper Realty Inc.

About Clipper Realty Inc.

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. For more information on the Company, please visit www.clipperrealty.com.

Forward-Looking Statements

Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include estimates concerning capital projects and the success of specific properties. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan" or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release.

We disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties), most of which are difficult to predict and many of which are beyond our control and which may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a discussion of these and other important factors that could affect our actual results, please refer to our filings with the SEC, including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed from time to time with the SEC.

559,419

571,988

836,437

736,420

6,386

3,366

13,684

13,897

146,249

1,415,926

1,471,920

(266,976

)

(243,392

)

1,148,950

1,228,528

30,815

19,896

27,339

18,156

8,676

6,365

2,067

2,108

5,326

5,676

11,146

6,236

1,234,319

1,286,965

1,277,521

1,266,340

18,092

18,731

9,519

9,067

9,941

7,057

1,315,073

1,301,195

160

90,677

89,938

(121,543

)

(95,507

)

(30,706

)

(5,409

)

(50,048

)

(8,821

)

(80,754

)

(14,230

)

1,234,319

1,286,965

2025

2024

2025

2024

REVENUES

Residential rental income

30,846

28,173

118,864

109,873

Commercial rental income

6,224

9,874

34,338

38,902

TOTAL REVENUES

37,070

38,047

153,202

148,775

OPERATING EXPENSES

Property operating expenses

9,100

8,065

37,986

34,163

Real estate taxes and insurance

7,354

7,633

30,394

29,770

General and administrative

4,182

3,772

15,523

14,152

Transaction pursuit costs

(10

)

(10

)

Depreciation and amortization

8,380

7,603

31,327

29,892

Impairment of Long-Lived Assets

33,780

TOTAL OPERATING EXPENSES

29,006

27,073

149,000

107,977

Litigation settlement and other

(269

)

(26

)

(269

)

INCOME FROM OPERATIONS

8,064

10,705

4,176

40,529

Loss on disposal of long-lived assets

(857

)

Loss on extinguishment of debt

(2,627

)

(2,627

)

Interest expense, net

(16,706

)

(11,791

)

(53,027

)

(47,111

)

Net loss

(11,269

)

(1,086

)

(52,335

)

(6,582

)

Net loss attributable to non-controlling interests

6,984

668

32,435

4,082

Net loss attributable to common stockholders

(4,285

)

(418

)

(19,900

)

(2,500

)

Basic and diluted net loss per share

(0.30

)

(0.05

)

(1.38

)

(0.25

)

Weighted average common shares / OP units

Common shares outstanding

16,147

16,089

16,147

16,120

OP units outstanding

26,317

Diluted shares outstanding

42,464

42,406

42,464

42,437

2025

2024

(52,335

)

(6,582

)

31,226

29,786

2,745

2,122

583

587

2,627

33,780

857

251

4,266

2,701

(2,436

)

(1,215

)

(4,966

)

4,483

4,097

(948

)

450

302

1,589

345

22,571

31,862

(31,302

)

(68,781

)

43,489

(97

)

12,090

(68,781

)

(244,063

)

(2,000

)

254,938

58,330

(18,455

)

(17,584

)

(6,979

)

(14,559

)

38,746

20,102

1,827

38,052

36,225

58,154

38,052

19,896

22,163

18,156

14,062

38,052

36,225

30,815

19,896

27,339

18,156

58,154

38,052

48,967

43,995

1,913

2,264

3,434

8,169

Clipper Realty Inc.

Reconciliation of Non-GAAP Measures

(In thousands, except per share data)

(Unaudited)

Non-GAAP Financial Measures

We disclose and discuss funds from operations (“FFO”), adjusted funds from operations (“AFFO”), adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and net operating income (“NOI”), all of which meet the definition of “non-GAAP financial measures” set forth in Item 10(e) of Regulation S-K promulgated by the SEC.

While management and the investment community in general believe that presentation of these measures provides useful information to investors, neither FFO, AFFO, Adjusted EBITDA, nor NOI should be considered as an alternative to net income (loss) or income from operations as an indication of our performance. We believe that to understand our performance further, FFO, AFFO, Adjusted EBITDA, and NOI should be compared with our reported net income (loss) or income from operations and considered in addition to cash flows computed in accordance with GAAP, as presented in our consolidated financial statements.

Funds From Operations and Adjusted Funds From Operations

FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment adjustments, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Our calculation of FFO is consistent with FFO as defined by NAREIT.

AFFO is defined by us as FFO excluding amortization of identifiable intangibles incurred in property acquisitions, straight-line rent adjustments to revenue from long-term leases, amortization costs incurred in originating debt, interest rate cap mark-to-market adjustments, amortization of non-cash equity compensation, acquisition and other costs, transaction pursuit costs, loss on modification/extinguishment of debt, gain on involuntary conversion, gain on termination of lease and non-recurring litigation-related expenses, less recurring capital spending.

Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. In fact, real estate values have historically risen or fallen with market conditions. FFO is intended to be a standard supplemental measure of operating performance that excludes historical cost depreciation and valuation adjustments from net income. We consider FFO useful in evaluating potential property acquisitions and measuring operating performance. We further consider AFFO useful in determining funds available for payment of distributions. Neither FFO nor AFFO represent net income or cash flows from operations computed in accordance with GAAP. You should not consider FFO and AFFO to be alternatives to net income (loss) as reliable measures of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (computed in accordance with GAAP) as measures of liquidity.

Neither FFO nor AFFO measure whether cash flow is sufficient to fund all of our cash needs, including loan principal amortization, capital improvements and distributions to stockholders. FFO and AFFO do not represent cash flows from operating, investing or financing activities computed in accordance with GAAP. Further, FFO and AFFO as disclosed by other REITs might not be comparable to our calculations of FFO and AFFO.

The following table sets forth a reconciliation of FFO and AFFO for the periods presented to net loss, computed in accordance with GAAP (amounts in thousands):

2025

2024

2025

2024

(11,269

)

(1,086

)

(52,335

)

(6,582

)

8,380

7,603

31,327

29,892

(2,889

)

6,517

(21,008

)

23,310

(2,889

)

6,517

(21,008

)

23,310

120

121

481

(65

)

251

1,001

532

2,745

2,122

968

714

4,266

2,701

(10

)

(10

)

2,627

33,780

857

269

(64

)

(140

)

(164

)

(324

)

1,688

8,097

23,641

28,810

0.04

0.19

0.56

0.68

Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization

We believe that Adjusted EBITDA is a useful measure of our operating performance. We define Adjusted EBITDA as net income (loss) before allocation to non-controlling interests, plus real estate depreciation and amortization, amortization of identifiable intangibles, straight-line rent adjustments to revenue from long-term leases, amortization of non-cash equity compensation, interest expense (net), acquisition and other costs, transaction pursuit costs, loss on modification/extinguishment of debt and non-recurring litigation-related expenses, less gain on involuntary conversion and gain on termination of lease.

We believe that this measure provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We consider Adjusted EBITDA to be a meaningful financial measure of our core operating performance.

However, Adjusted EBITDA should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating Adjusted EBITDA, and accordingly, our Adjusted EBITDA may not be comparable to that of other REITs.

The following table sets forth a reconciliation of Adjusted EBITDA for the periods presented to net loss, computed in accordance with GAAP (amounts in thousands):

2025

2024

2025

2024

(11,269

)

(1,086

)

(52,335

)

(6,582

)

8,380

7,604

31,327

29,892

120

121

481

(65

)

251

968

714

4,266

2,701

16,706

11,791

53,027

47,111

(10

)

(10

)

2,627

33,780

857

269

17,457

19,497

74,087

74,123

Net Operating Income

We believe that NOI is a useful measure of our operating performance. We define NOI as income from operations plus real estate depreciation and amortization, general and administrative expenses, acquisition and other costs, transaction pursuit costs, amortization of identifiable intangibles and straight-line rent adjustments to revenue from long-term leases, less gain on termination of lease. We believe that this measure is widely recognized and provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We use NOI to evaluate our performance because NOI allows us to evaluate the operating performance of our company by measuring the core operations of property performance and capturing trends in rental housing and property operating expenses. NOI is also a widely used metric in valuation of properties.

However, NOI should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to that of other REITs.

The following table sets forth a reconciliation of NOI for the periods presented to income from operations, computed in accordance with GAAP (amounts in thousands):

2025

2024

2025

2024

8,064

10,705

4,176

40,529

8,380

7,603

31,327

29,892

4,182

3,772

15,523

14,152

(10

)

(10

)

120

481

(65

)

251

33,780

269

20,671

22,553

85,344

85,574