CLPR - Earnings call transcript Q3 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Clipper Realty 3Q 2021 Earnings Call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Larry Kreider. Sir, the floor is yours.

Larry Kreider

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

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

XX-Q AFFO; call, these certain GAAP NOI. taxes, with refer to interest, management for adjusted call information today including a depreciation non-GAAP Co-Chairman and financial and over measures. the 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

leasing we and Thank highlights earnings property milestones, you, third performance, who as including update from will an level to the JJ afternoon. as Realty. pandemic. recover to I call performance. provide COVID-XX then recent quarter turn discuss welcome well call company's the Larry. Good And XXXX will Clipper I business as over progress for on activity, including will our our

of throughout by and the the again, Properties your we at pandemic. to quarterly economy positive work the We see improve pandemic. our grateful forward. and Realty our the financial trends the our both of communities entire the look extending perseverance And depths ongoing progress as continues questions. operational the to speak open for remain our city the about continued activity I remained We'll strengthened performance. Larry out efforts to and we pandemic. we our then we as further the proud will business. and residents, dedication continuum team, are the hard leasing from Clipper thanks of take Residential general, once begin in Finally, and

leases We pricing demand to expect continues improve the to third New House or reopen, new including relocate to properties XX% exceeding a were City At offices. rental the elevated per back returned people seek to the reaching city the remain and $XX end approximately pre-pandemic. to to employees rates new of in levels, our and properties York our increasingly than leased at their are quarter, and as which is October XX% X% – better foot, pre-pandemic Tribeca with Property, square where lease

continues well liquidity to Our a be positioned from balance perspective. sheet

We of cash of of million have on million an portfolio by $XX approximately million restricted unrestricted $XX We and of our cash. cash, basis. asset finance asset consisting $XX

and subject non-recourse, debt Our limited is carve-outs non-cross-collateralization. to standard

on continue we our from maturities Terminal any acquisition of XXXX. and Atlantic Street Center XXXX developments, our the is properties Prospect Pacific debt no in have of Barclays Brooklyn, proceed to into budget. Construction We Recent in mile one and Heights, with Hub. about operating development on progressing located time

shortly. and us will $XX financing entered the update loan rate. We signed. As provide construction contracts project XX% years facilities on develop cap million, a our take to provide cost a $XX.X of previously discussed, stabilized completion. estimated we JJ with will complete that through X.X% two million further at the into to project construction are

is lease recording our at in results, XXXX a million XXXX until Street at year New York The to can November last office see and annual the the property lease portfolio rate. this been City. NOI you million revenue results, NOI are year leases December Street our property's million $X.X has annual benefits million. of regard of of XXX adding XXX of total third AFFO our $X NOI As $X.X our of Livingston run $XX.X in With previous quarterly new adding annually, we property to XX% $X.X $XX.X reporting representing is of quarter million Livingston for million, increase an on and approximate

will with All now of I these turn measures will further over second JJ Larry update detail. the operations. quarter, to on will are who the in provide line an call as

JJ Bistricer

begin Thank company's to out the this employees period you. progress efforts normality. for we continued unprecedented extending to by thanks I of as our their again, inspiring

ongoing We the leasing for mid At end year activity quarter, the third were and that end the to leased residential towards the began residential our percentage communities. last tenants to continues our today. of commitment the in grateful are all XXs The range. properties increasing high of

an improved office As New employees presence. demand activities assume further we anticipated normal rental as we last and resume quarter, York reopens, require potentially City

reaching in exceeding present all levels are rates rental foot or square exceeding pre-pandemic rates. per New and average October

example, For the foot October House square Flatbush $XX per Aspen were $XX Gardens square at in foot; square Tribeca foot. leases per and new at property $XX per

property, our our in prior quarter, House to up. itself as pandemic to prove referenced As strategy Tribeca continues

XX.X%. accomplished. from leased to goal increased year which first achieve was XX.X% high have occupancy Our last to occupancy, Year-on-year we has

time Flatbush reached level take reaching X% $XX we foot the the at maintained per second of was pandemic, property As in the level Rent quarter pandemic quarter. at quarter which Throughout the October, Complex ending level. foot well will The begin occupancy, per leased. higher the quarter achieving levels. work square then whole the third up full-time. the in of to goal for October, near held square in square with $XX square Revenue rent high on in to Brooklyn end the the foot levels higher high per rent and XX% Gardens mark, lower per leases than through record the able X% pre-pandemic foot occupancy increased XX% higher however, the have as levels, average XX% some to will higher, building,

steps difficult taking are to to processing this directly XX% and increase presently to regulatory are numerous above occupancy according applications, level We requirements.

pandemic operations base, annual story. our of certain which remains Flatbush savings year, portfolio and the $XXX,XXX. to Gardens of last collections growth the remain previously, a cost in the expense of during at property pandemic. reorganized element despite key challenges in resulted has Rent excess our noted we the manage strong As

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

tenants Emergency New Assistance we they Rental to on ERAP. million release received rent And to case-by-case worked our meet since with that as We they file us have June, due this have or for notify a program. the consistently tenants To-date, with have rent Program cannot the obligations partnered we our basis, York $X.X under the pandemic. under

Program Assistance LRAP, also who related file $X have filed tenants for the on the assistance to over We do of related Landlord's application not under ERAP. million or Rental

the on Although, their landlords we understand at is current the time. funding smaller focusing New York

are development at the XXXX moving on are Street and on side, well we Pacific On construction target.

We have and [indiscernible] construction financing finalized a $XX.X loans. with our approximately secured completion contracts have million of construction through XX% construction

XXX(a) affordable units, building On development The fully and abatement. expected nine-storey, is foot be years free and for the XX% underground XXX rental the market have will in to property XXX,XXX of tax is eligible with which XX XX% total square amenitized parking. indoor rentable multi-family

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

Larry Kreider

JJ. you, Thank

quarter. For $XX.X last the $XX the of we year’s and for third quarter last third revenues quarter level with achieved million virtually million than higher

take with of of time, periods property last House office commercial third the term full the primarily the per Clover and property, revenue as at from the level third AAFO lower XXXX. through and XXX property same at last rates quarter Tribeca residential lower year the year off. our lower Gardens year. Street residential our lower level In with rents of by effect offered we on point, year, year-over-year example, at at pandemic, residential million at this we increase $X.X increases and Livingston quarters well. maintain although the offset to as new to For House lower from of properties Revenue at from quarter bargain and this rates prices the in of This the quarter higher rates achieving lower $XX.X foot roll before residential as itself rental the $XX The achieved leases evidence of to executed residential the at million are will recovered revenue NOI the few improved was this we leasing $XX.X next occupancy. second partially leases from occupancy the quarter similar October, revenue AFFO at new rates property – during this the the level property first for Tribeca the At million were at higher $X.X House the other of offered. year Flatbush during was higher rental take was successfully attributable that this to NOI pandemic the quarter lease million

taxes resulting third from as With in $X.X On quarter Street pass to in the quarter realignment operating make-ready as expenses Property well the property portion from across a Flatbush second Livingston a for operating David year-on-year the a due applicable from Interest primarily year-over-year a due earlier, property side, in we February provision are year-on-year by year year ERAP expense million $X.X decrease by key by activities refinancing House expenses the in Gardens. increased XXX expense to at at $X.X the portfolio. last liquidity this quarter quarter the efforts the by the property, perspective. to to were mentioned follows: apartment resulting at increased the insurance Tribeca in third decrease million of year. to driven staffing increased changes $XXX,XXX primarily positioned primarily and million sheet the Real of declined costs leasing debts insurance level from the regard in balance costs last and decrease resulting in bad the compared the due and funds amounts estate year-on-year, third

$XX of asset basis. We $XX our cash have unrestricted on an and portfolio cash We million of of restricted consisting finance million $XX of asset cash. million by

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

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

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

David Bistricer

Thank on is highest you, remain our and safety our of tenants efficiently operating Larry. We priority. the with employee focus our portfolio

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

development Street York look the that questions. and Pacific XXXX capitalizing growth open New through themselves. recovery like and for to accelerate would including may possibilities We up now expect continue, pandemic other on beyond. I line to present to City’s the We to opportunities, from the forward XXXX the

Operator

B. [Operator you. question Instructions] Craig from And Thank from a we Riley Securities. coming have Kucera

Your line live. is

Craig Kucera

the Yes. your Good ability opening making guys. up Gardens. to enhanced with evening, city has progress David back FIR your Flatbush again on expanding start that

David Bistricer

It’s new This you city a tell. administration, of York. into too early coming the to as New little bit know,

that with little work to So, appetite that the a again, when is gets investigate flushed of what more out, opportunity us we’ll on bit the city

Craig Kucera

anything it. that out, down to that able there And year-over-year at $XXX,XXX just Your considerable or Were quarter expenses that’s you’ve there’s items cut Got appreciate and as about I believe expenses year-to-date. curious that. events that? I understanding if I’m any was Flatbush driving other of operating occurred? Gardens. else to operating been

David Bistricer

a possible. on taking that look And expenses we as that’s continue at the as continual driving lean Basically, do something various a basis. and to different stronger

Larry Kreider

further we leased other reorganization, ready had one have somewhat. thing, we repairs costs our And declined got but also our and Yes. make maintenance as

Craig Kucera

helpful. Got One it. me. That’s more for

understand. Just make want sure to I

on mentioned at rents new pre-pandemic Are of space that of or of is that newly above a You renewed? vacant and rents. executed or gave just people inclusive leases different number seeing that you’re leases levels those

Larry Kreider

Those are on new the rents new spaces.

Craig Kucera

New space.

have increases renewals this point? So on do at a sense the what of you

Larry Kreider

do. Yes, we

to keep We though always a at little are fairly are renewals modest increase, think avoid at they an vacancy. I lower them increase. generally but

Craig Kucera

Okay. lot. Thanks Fair enough. a

David Bistricer

You’re welcome.

Operator

like back floor Bistricer the I’d turn remarks. closing to David now for Instructions] [Operator to

David Bistricer

a joining Thank today. good have Everyone, you We with speaking us forward evening. look to you for again soon.

Operator

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

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

Clipper Realty (CLPR) 10 Nov 212021 Q3 Earnings call transcript