Clipper Realty reported consolidated revenues of $37.1 million for the quarter ended December 31, 2025, down 2.4% year-over-year, with a net loss of $11.3 million compared to a $1.1 million net loss last year. The company recorded $20.7 million in NOI, $1.7 million in AFFO and FFO of $0.04 per share, missing the $0.11 consensus, and declared a $0.095 per share dividend.

Residential revenues increased 9.5% to $30.9 million, driven by strong leasing demand and renewals achieving rent increases of nearly 13% on new leases and over 7% on renewals. The newly completed Prospect House property generated $1.5 million in revenue at 66.3% leased occupancy in its first full quarter of lease-up, with stabilization expected in 2026.

Commercial revenues declined to $6.2 million from $9.8 million a year ago, reflecting the impact of the New York City lease termination at 250 Livingston Street, which generated only $0.6 million in revenue and a $5.4 million net loss in Q4. The May 2025 sale of the 10 West 65th Street property also reduced revenue contribution by $1.0 million compared to last year.

At 141 Livingston Street, the company settled lender default claims by posting a $10 million letter of credit and incurring $2.6 million in settlement expenses, securing approval of lease renewal terms. At 250 Livingston Street, following the tenant lease termination in August, Clipper ceased escrow payments and is negotiating a consent and cooperation agreement under its non-recourse mortgage.