Clipper Realty (NYSE:CLPR) Announces Earnings Results

Clipper Realty (NYSE:CLPR) posted its quarterly earnings data on Thursday. The company reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.39), FiscalAI reports. The business had revenue of $38.12 million for the quarter, compared to the consensus estimate of $39.60 million.

Here are the key takeaways from Clipper Realty’s conference call:

• Residential operations remained strong, with stabilized properties reported at 99% leased overall and free-market rents hitting record highs. New leases in the quarter ran about 7% above prior rents, and renewals were up 5%.
• Prospect House (953 Dean Street) is in its third quarter of initial lease-up and is now fully leased, with free-market rents around $78 per foot. Management said the project was delivered on time and on budget.
• Quarterly results were pressured by the termination of the New York City lease at 250 Livingston Street, the initial lease-up losses at Prospect House, the sale of 10 West 65th Street, and litigation settlement costs. Revenue fell to $38.1 million, NOI to $20.1 million, and AFFO to $2.3 million versus the prior year.
• 250 Livingston Street remains unresolved; the company said it is no longer funding the property’s operations, debt service has stopped, and it is negotiating a potential consent and cooperation agreement with the lender to sell the loan. No cash has been paid toward the property’s default fees, according to management.
• Balance sheet and capital return remain in place, with $26.1 million of unrestricted cash, $28.6 million of restricted cash, and 89% of operating debt fixed at an average 3.87% rate. The board also declared a steady quarterly dividend of $0.095 per share.

Clipper Realty Trading Up 0.9%

CLPR stock opened at $3.04 on Friday. Clipper Realty has a one year low of $2.83 and a one year high of $4.61. The firm has a market capitalization of $49.06 million, a PE ratio of -2.22 and a beta of 0.98. The firm has a 50-day moving average of $3.16 and a two-hundred day moving average of $3.43.

Clipper Realty Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Tuesday, May 26th will be paid a dividend of $0.095 per share. The ex-dividend date of this dividend is Tuesday, May 26th. This represents a $0.38 dividend on an annualized basis and a yield of 12.5%. Clipper Realty’s dividend payout ratio is currently -27.74%.

Institutional Trading of Clipper Realty

A number of hedge funds have recently bought and sold shares of the company. Cubist Systematic Strategies LLC purchased a new stake in shares of Clipper Realty in the first quarter worth approximately $193,000. AQR Capital Management LLC lifted its position in shares of Clipper Realty by 12.3% in the first quarter. AQR Capital Management LLC now owns 22,698 shares of the company’s stock worth $87,000 after purchasing an additional 2,491 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Clipper Realty by 25.4% in the first quarter. Goldman Sachs Group Inc. now owns 97,027 shares of the company’s stock worth $373,000 after purchasing an additional 19,640 shares in the last quarter. Jane Street Group LLC lifted its position in shares of Clipper Realty by 56.4% in the first quarter. Jane Street Group LLC now owns 142,027 shares of the company’s stock worth $545,000 after purchasing an additional 51,231 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Clipper Realty by 9.3% in the second quarter. Geode Capital Management LLC now owns 333,970 shares of the company’s stock worth $1,226,000 after purchasing an additional 28,385 shares in the last quarter. 37.57% of the stock is owned by hedge funds and other institutional investors.

About Clipper Realty

Clipper Realty Inc is a publicly traded real estate investment trust that acquires, owns and manages multifamily residential and mixed‐use properties in the Greater New York metropolitan area. Since its initial public offering in early 2017, the company has focused on strategically sourcing apartment buildings and retail space in Manhattan and Brooklyn, with an emphasis on value‐add opportunities that can benefit from in‐house leasing, renovation and operational efficiencies.

The company’s primary activities include property acquisition, selective repositioning and asset management.