Clipper Realty Q1 Revenue at $38.1M with Residential Income Up 9%
CLPR•Clipper Realty reported first-quarter revenue of $38.1 million, down $1.3 million year-over-year, while adjusted funds from operations plunged to $2.3 million, a $5.7 million decline. Residential property revenue rose 9% to drive leasing with 99% occupancy, but office revenues fell $4 million following a lease termination at 250 Livingston Street.
1. First-Quarter Financial Results
Clipper Realty generated Q1 revenue of $38.1 million, down $1.3 million from last year, and net operating income of $20.1 million, a $1.6 million decline. Adjusted funds from operations fell $5.7 million to $2.3 million, and the company maintained its $0.095 per share quarterly dividend.
2. Residential Segment Performance
Residential property revenue increased by $2.7 million or 9% year-over-year, driven by new free-market leases averaging over 7% above prior rents. The Prospect House development was completed on time and budget and is fully leased, contributing to a stabilized 99% occupancy and 100% rent collection on free-market units.
3. Office Segment Challenges
Office revenue decreased by $4 million due to a lease termination at 250 Livingston Street, where the company paused interest and real estate tax payments. Clipper Realty is negotiating a consent and cooperation agreement to sell the property's loan, though finalization remains uncertain.
4. Liquidity and Debt Profile
As of quarter-end, Clipper held $26.1 million of unrestricted cash and $28.6 million of restricted cash. Debt is 89% fixed-rate at an average 3.87% interest with a 3.4-year duration, and management is exploring refinancing strategies ahead of the 2027 rate reset.
