Clipper Realty (CLPR) investor relations material

Executive summary

• Residential properties achieved near-full or record occupancy and rental rates, with new leases exceeding prior rents by over 13% year-over-year and renewals by over 5%.

• Prospect House, a new Brooklyn development, completed initial lease-up and is fully leased at $78 per square foot, contributing $2.3M in revenue but posting a net loss of $1.4M during its lease-up period.

• The portfolio consists of multifamily residential and commercial properties in Manhattan and Brooklyn, with a focus on optimizing revenues and controlling costs amid challenging market conditions.

• Significant legal and financial challenges arose from defaults on the 250 Livingston Street mortgage, resulting in the appointment of a temporary receiver and potential foreclosure risk.

• Q2 2026 results reflect the impact of the NYC lease termination at 250 Livingston Street and the sale of 10 West 65th Street in Q2 2025.

Financial highlights

• Q2 2026 revenues were $38.6M, down from $39.0M in Q2 2025, mainly due to the NYC lease termination and prior property sale; residential rental income rose to $32.2M, while commercial rental income fell to $6.4M.

• Net loss for Q2 2026 was $6.3M ($0.19 per share), compared to a net loss of $1.4M ($0.07 per share) in Q2 2025, driven by higher interest expense, litigation reserves, and lease termination.

• AFFO for Q2 2026 was $3.8M ($0.09 per share), down from $8.3M ($0.20 per share) in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $18.6M, compared to $19.4M in Q2 2025.

• Dividend of $0.095 per share declared for Q2 2026, unchanged from the previous quarter.

Outlook and guidance

• Strong residential leasing demand is expected to continue due to constrained housing supply and discouraged new development in New York City.

• Commercial segment faces uncertainty due to the loss of the City of New York as a tenant at 250 Livingston and ongoing lease negotiations at 141 Livingston.

• Inflation and regulatory changes, including a rent freeze on stabilized units, may compress margins.

• Focus remains on optimizing occupancy, pricing, and expenses to position for future growth.

• Management highlights progress in resolving lender issues at 250 Livingston Street.