Clipper Realty (CLPR) investor relations material

Executive summary

• Residential properties achieved near-full occupancy and record-high rents, with new leases up nearly 13% compared to prior rents in Q4 2025, driving a 9.5% year-over-year increase in residential revenue.

• Commercial revenue declined due to the NYC lease termination at 250 Livingston Street and lender settlement costs at 141 Livingston Street.

• Net loss widened to $11.3 million in Q4 2025 from $1.1 million in Q4 2024, reflecting higher expenses and one-time items.

• Adjusted funds from operations (AFFO) dropped to $1.7 million from $8.1 million year-over-year.

• Dividend of $0.095 per share declared for Q4 2025, unchanged from last quarter.

Financial highlights

• Q4 2025 revenues were $37.1 million, down from $38.0 million in Q4 2024.

• Residential revenue increased by $2.7 million (9.5%) year-over-year, offset by a $4.0 million decrease from the NYC lease termination at 250 Livingston.

• Net operating income (NOI) was $20.7 million, down from $22.6 million year-over-year.

• AFFO was $1.7 million ($0.04/share) vs. $8.1 million ($0.19/share) in Q4 2024.

• Adjusted EBITDA: $17.5 million vs. $19.5 million in Q4 2024.

Outlook and guidance

• Residential leasing demand expected to remain strong due to constrained supply and discouraged new development in NYC.

• Prospect House expected to improve results as leasing stabilizes in 2026.

• Management anticipates continued strong residential demand and ongoing negotiations with lenders for office properties.

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

• Management aims to fully lease up Prospect Park and resolve 250 Livingston Street issues.