CLPR - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Clipper Realty First Quarter 2021 Earnings Call. At this time, all participants have been placed on a listen-only mode. And the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Michael Frenz, Chief Financial Officer. Sir, the floor is yours.

Michael Frenz

you Realty us Inc. thank quarter the and Clipper XXXX afternoon for for joining first Good earnings call. conference Participating with and me Co-Chairman Operating of on today's call Board Officer. Chief are and Executive Officer; JJ Chief the Bistricer, David Bistricer, be by that not call such statements actual forward-looking historical during materially differ forward-looking are results deemed statements. aware may that be from Please made and the statements may those indicated Form XXXX XX-K uncertainties, are which including risks those annual subject report the in statements at on These accessible and company's posted, website. is www.sec.gov to disclosed our numerous and

the of no reminder, XX, duty this a XXXX, forward-looking date May them. update As statements speak as call, undertakes to the only and company the of

XX-Q AFFO; management these certain GAAP NOI. taxes, with refer to interest, call, for adjusted call information today including a depreciation non-GAAP Co-Chairman and financial and over measures. this amortization adjusted to With our of financial and see most Form may the now or earnings that, David I our reconciliation operations income adjusted net turn supplemental Bistricer. operating CEO, or before will measures, measures During the release, or press posted directly financial and non-GAAP comparable EBITDA Please financial funds from

David Bistricer

respond milestones Thank and call as you, quarter’s including well on the update leasing level performance. afternoon how I pandemic. to to will activity, an COVID-XX discuss highlights XXXX property welcome as for company first Michael. Good and earnings provide Realty. JJ performance to including continues Clipper our recent will our business

performance. about financial will speak Michael Finally, our quarterly

very, ongoing work, over to challenging remain to our circumstances. times. unprecedented team by take perseverance once the will Realty during very the months will grateful extending hard I these their Clipper entire then begin on XX efforts – We for the past the thanks your questions. We again

today City Properties residential economy increased strengthened our are remained communities York the The XXXX in and pandemic. in have leasing throughout from quarter the The to of both of business. in continued the the depths operational pandemic. We and year the New the proud further the fourth as an of city continues to general, dedication residents, activity. open last the

New We and to our in first end expect have XX% quarter at proliferate. week properties continues improve the vaccinations reopen of XX% as rental similar demands leased, the City period and At May the pricing in York the over to Tribeca elevated first remain of increased over were House April. rents

typical local take steps tenant our are and continue providing the the our City. residents. resiliency in We confident remain orders necessary keep to services tenant, state with safe New We to and to compliance York of in

expect properties stay the our desirable broad and range to continue over to time. to of to in city normal tenants more state We return a a to operations

from to well to continues sheet perspective through pandemic. they manage positioned be may balance Our the liquidity a

subject have asset-by-asset We non and $XXX restricted is of commerce debt cash collateralized. of non-recourse approximately our on $XX portfolio basis and of cash. cash unrestricted cross $XX finance million our consisting We to is million and of limits million

of any XXXX. our operating at We maturity properties have no debt until

an $X.X add City's the end the City total a lease commitment increased a New will underway XXX NOI. to of Street Turning Livingston Together will Atlantic capitalization portfolio, shortly. today are JJ to our from And Street half in Street to which the a a six half million and rate. of Center provide approximate years the for properties company add roles construction Livingston NOI stabilized of a to to York – $X.X portfolio at develop normalized proceed and will million resulting continue development, located to project annual Construction some of insurance acquisition our comment and from half would further that additional XX% property's has expected annual finance commenced office our NOI In an project our updates on at two Terminal/Barclays new the with major the redevelopment $XX the to Hub. rate. August to incremental XXX take $X These project Prospect complete to cost the loan. one at representing roles of million mile results. million. at Brooklyn, December recent annual to like we we I is XX% XXXX. expected decrease with two more about quarterly previously rents Heights, XXXX in well XXXX, discussed run estimated on Pacific as rent In

August our in business company, teams XXXA pursue and operations, contributions initial XXXX are and extensive strategic as expertise our back quarterly NOI Financial CFO company many who knowledge million with to Clipper his former Michael $X.X CFO. to will joined offering and smooth work thank initially formation XXXX, our of Kreider, management vision the left company Chief public On turn of update His offering the on the million. help return management, Officer of JJ the an the an We operations. in CFO. provide will a executive drive depart to I another of intimate in since XXXX, of AFFO will and I revenue the for in Rule behalf February our finance as opportunity. reporting million $XX.X now of for ensure transition. will accounting Larry financial future. Michael to XXXX. experience of as entire Michael am I the excited Larry welcome we will over call to Larry, will Realty. and $XX.X

JJ Bistricer

their again, efforts begin period. our inspiring the this sending unprecedented for thanks to employees company's throughout I’ll you. Thank

approximate strengthen. properties XX% building We the our versus level The to XX.X% at mid that New on rental the towards continues City strong for Tribeca House quarter reopens will last demand the ago. Occupancy increase ongoing all at the to to months further was year-end commitment quarter, XX%s on XX% grateful marked six occupied more of At continue in remain XX% leasing that communities. York than to were ago, property of in today. At the leases of second in first our We and a tenants their to continues XX% and effect and six months year average the vaccines seen new quarter, the are the that and first end end began of end widespread. residential first leased improvement high leases higher year as activity the trends versus in residential become anticipate new quarter. range the end

Gardens neighborhood. well return the Tribeca property ending Flatbush maintain revenue quarter standpoint, quality leased believe given high XX% We complex in near work pre-COVID rent quarter to record quarter other manage the that The at House property. over time The assets to attractiveness in occupancy levels revenue in held from to compared up diligently will at a a the continue as standpoint, square first to pandemic. and the the We buildings $XX.XX rates rental the at luxury surrounding level. and foot of from the it end was per throughout Brooklyn has the pricing

challenges an efforts Rent element collections remained Gardens base, at certain which have part is of to annual in our we the key Flatbush the resolve strong the portfolio cost ongoing remains despite $XXX,XXX. of reorganized as previously, of pandemic. manage expense savings excess to growth a property story. of operations our noted expected As and

XX% was the XX% versus collection first Our year-end. quarter in uptick rate over and at

We continue pandemic. if they notify that meet work obligations tenants due they a the with basis their to on us case-by-case rent cannot to

parking. nine-story affordable on commenced side, On total abatemen. XX% XXXX have we rental eligible a years be XX property The to multifamily amenitized units, fully Street XX% underground expected will construction for is the indoor have XXX,XXX of with XXX(a) Pacific and and tax which is market square foot development rentable free XXX building

We negotiating for a project. the are construction currently loan

City expenses position discuss business remain optimizing Looking occupancy, over emergence financial ourselves New from now our will to and I the pandemic. the best its will pricing who ahead, we York as on results. call the across focused Michael turn continues to

Michael Frenz

you, JJ. Thank

of at change decline $XX.X of We the For of commencement million leased primarily property XXXX. during $XX.X $X.X we Street and certain to partially the termination rental the property, to million. revenue by was NOI of achieved the million quarter a quarter the revenues first commercial at year-over-year XXX compared for first achieved of and third of AFFO million quarter the property attributable The $XX.X the the new rate XXXX. Livingston Tribeca the House occupancy the office offset leases residential of at lease and

taxes estate property an an increase insurance million up expenses operating in changes driven primarily expense the $X.X $X.X million quarter approximate portfolio property for unbilled first in expenses. quarter by February million to tax Livingston utility by the $X.X in due for COVID-XX the catch Street by side, increased impact key previously the industry increased to year. due of first the bad debt increased of as the Gardens’ in were On the property across year-on-year, and by Real provision follows: property insurance the general increased, refinancing costs and XXXX $XXX,XXX year-over-year year-on-year, primarily the in May the year-on-year Flatbush XXX interest increases quarter and due expense to first and in this

on positioned basis. of earlier, an mentioned $XXX from million We cash of of portfolio million restricted perspective, consisting $XX million are our we cash. of David well a cash, we As liquidity asset-by-asset unrestricted have $XX finance an

collateralized. limited outs and to Our debt standard is subject not cross non-recourse is carve

XX on maturities announcing operating as any share be XXXX. the on debt first are amount The May dividend a same properties no until on will XX. May quarter, for we of of have dividend quarter. the We per record $X.XXX Today, paid shareholders to last

value, to positioned organization all together earlier, JJ advantage best. team. to wish mentioned and company. I I the David to company Larry work in the as has and well grow will The a watch entire Lastly, will closely opportunities Board to the work the the take Realty the ensure is Clipper I'm a and transition. excited with everyone been departing smooth be of years their come. privilege team the to to success in Kreider shareholder I It

now to for back the call turn over Let remarks. David me concluding

David Bistricer

safety We operating our Thank with focused remain and priority. highest efficiently portfolio the you, tenants Michael. our employees on of our

We the the continue challenges, buttress current to through sheet. long to take navigate steps a necessary strong balance by

Street for of pandemic to up now may to development possibilities and like Pacific continue XXXX We from open accelerate beyond. capitalizing healthy. present opportunities forward safe and including and to that recovery see hope remains look line the themselves. myriad other to I to everyone the to We questions. XXXX on a growth would We expect

David Bistricer

you Thank Thank you joining with we and forward look you speaking soon. to again for very much. today us

Operator

ladies today's conference and gentlemen. you Thank does call. This conclude

have lines Thank you for this your You a participation. wonderful day. and may disconnect phone time at your

Clipper Realty (CLPR) 11 May 212021 Q1 Earnings call transcript