CLPR - Earnings call transcript Q2 2022

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Operator

Good afternoon, ladies and gentlemen, and welcome to today's Clipper Realty Second Quarter 2022 Earnings Call. [Operator Instructions]. It is now my pleasure to turn the floor over to your host, Lawrence Kreider. Lawrence, the floor is yours.

Lawrence Kreider

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

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

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

David Bistricer

over Clipper second of company's Thank progress. quarter provide will as afternoon, J.J., our as leasing including will will milestones to to well performance. business and who activity, call including recent for I you, turn performance, Larry. update welcome Realty. our XXXX Good address the call the I earnings an property-level highlights then and

quarterly Finally, Larry speak financial performance. our about will

and rate improve. and remain improving. news Residential demand rental take look positive increases, leasing is will we Despite operational strong rapidly interest your inflation expect then trends forward. see headline to We recent on the pricing we We activity questions. to as

carve-outs of our is $XX per increases, at interest respect is of we X.XX% exceeded With not by at per end including property and standard increased we to which square us to previous that city end inflation, or at duration major employees to square lease limited York construction are XX% new buttressed foot more offices. not number our December. recourse the House of leases exceeding are residential of on rent properties leases per allow XX% prepandemic leased and return the $XX at back seek new largely March than a relocate our levels, cover cross-collateralized. years bought quarter At of per were is to rate the subject our a second were people $XX and from contracts in XX% the debt, square out quarter, property, second the fixed and believe their Now increasingly the the reopened, X.XX relatively projects, With of to long to to our New City our foot, and all foot we Tribeca than of duration June foot XXXX. expenses existing where foot substantial of increased to end average respect our rents. leases And per $XX average an rates at in looked better our reaching duration short to

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

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

moving Terminal, the is Center is a completion property The development Atlantic the fourth targeting we essentially mile ground-up developments. Turning in to of in along Prospect are XXXX and very The substantial Barclays well, Hub. from our Heights, recent Pacific located acquisition Brooklyn, quarter.

we cap same project As further to J.J. also that property land -- cost initial will April, another purchase the rate. we the that we million. financing the end Brooklyn year, the of acquisition purchase we and update incremental redevelop intend previously of to a bring the project to up. X.X% the At Street from total with provide completed we estimate to at on to of developed in $XX cost Dean discussed, the of In and bought approximately the million shortly. ground XXX stabilized million will financing area $XX the of $XX

to We expect with XXXa tax under X-story residential of we affordable, a $XX.X to quarter square are commercial square rentable with fully XXX,XXX revenue stop our building rental I represent which feet, X,XXX XX% will million, which years XX% free leasing results, is With now last result of is provide update and XX $XX.X of improvements over amenitized XXX as a units, further turn feet. for quarterly build reporting the residential results market, J.J., regard second mentioned year NOI the of million and These I give over J.J. call quarter will the $X.X operations. an who Larry on significant million to the as detail. above. will improved program, AFFO second

Jacob Bistricer

Thank you.

At improve. levels, the exceeding second New of range square are reaching properties leased that leasing average the and the quarter towards per residential residential last rates. exceeding second our all new the year rent in high present the XX% or activities in quarter, foot and continues were rates end all to rental began prepandemic

As by I exceeded lease for exceeded by rates XX% over rental rents all rents and XX%. will previous properties, detail rental quarter in our previous rates the renewal combined shortly, new over second

Tribeca our experiencing at demand are strong House rental property. We

rents previous year square have of steadily in as result per an continue foot leased foot, XX per over over that In entered occupancy leases XX% we period. to to per have last the of through next year previous square our increase the rent risen of X into leases per and rents pandemic a foot average same foot expect on over last over square X- we to response last months, XX% have rents. XX% Further, increased from grow rent has increased new to averaged conditions. $XX $XX turnover X-year on renewals square months, representing rent to over While $XX and

retail on continue House to make properties at also property. the We new leases Tribeca progress at

leases again, versus the XX%, second at year on X approximately into at the this vacated to year, the are At in $XX quarter, complex higher occupancy last than we rates, the leases entered in property while per rented. at of nearly have square end the units up leasing of the increased leased our nearly mid-XXXX. . have the foot, renewed averaged new the have we year. of substantially in higher square smaller rents Since the increase since beginning focused the new previously firmed per X% pandemics the for Gardens average $XX.XX and begun quarter Overall, our $XX.XX to foot rising end Brooklyn, to Flatbush We units

our we stabilized new the board, forth and allow put also leases the of couple -- for for the increases offset X-year increases been million X-year forward, to the years. has also X, will should on year. investment rent leases. by Such which Looking $X property, October have help from last benefit this X% increases of X.XX% X% units nearly will we beginning which amounted which guidelines and These stabilization rent in limited for continued X% to

to continue savings. $XXX,XXX of from in we nearly property's that operations created the Lastly, reorganization XXXX benefit the

remained Street, continued House, high, to Our properties, Street Aspen West has well. Livingston XXX XXth occupancy Leased all perform XX other above XX%. Clover and residential

new have X% on exception over of rates leases X% renewals the beginning Aspen the year, XX%. the averaged since average to and of While overall increased both with have rental increases

our remained the with rate despite the challenges residual stable collections pandemic. been has very quarter little turnover. The Rent portfolio strong in the across second over XX%. overall Aspen of collection was

Landlord second and Rental in We the in Program fourth York the New the have Rental $X.X Assistance we from in which $XXX,XXX million LRAP, quarter, quarter Emergency remittance benefit or first Assistance received continued and to million ERAP under quarter Program or XXXX. the the of $X.X

Pacific and position side, are by construction on at well fourth XXXX we On Street the substantial target the moving development quarter. on are to

-- sheetrocking all nearly expected occurred. have installation window finishes. completed as bought installing before Costs as We our contracts begun the facade we recent out year work, and have construction spike and reaching last are

the single tax foot, We property XXXa XX% parking. to loan. Development million multifamily is rentable be total our abatement. of XXX free XX-year will eligible expected The and which rental fully for affordable amenitized market XXX,XXX and is building, XX% $XX.X construction have financed our of X-story underground with units, construction a of through fully have square and

occupancy, Looking across expenses Larry, will to we business for ourselves remain our who growth. position on best pricing and call I results. to over financial the ahead, focused turn the optimizing discuss now will

Lawrence Kreider

J.J. you, Thank

For million last from last the to million $XX.X second by by quarter, from $X.X million $XX.X last quarter. revenues AFFO year's from quarter NOI increased $X.X $XX.X increased this increased by $X.X million quarter. year's million million million quarter. to $X.X this million to $XX.X second second $X year's second quarter million

accounts expense from collectible. accounting standard, the of last expense the debt bad discussed are shifted I expense accelerated to bad adoption quarter, As classification not ASC that revenue fully a debt on new recognition of XXX, and of

tenant from to of debt XXXX in property. As from a recorded credit the first result, versus $X.X improved at House the and expense XXXX standard, we acceleration accounting have commercial million Tribeca then new deducted debt earnings expense a revenue prospects bad expense of charge -- adding To expense million bad quarter a recognition the we effect earlier. and $X.X the retained the record to debt of in in for to a bad revenue

operating year Street at These the tenants to property, Tribeca second by As at partially of properties, this standard, last accounting the of Gardens Flatbush Clover the a increased bad at $X.X XXth new and House, XX million rates versus Tribeca higher by rental offset the House, through last J.J. year. commercial $XXX,XXX the excluding $XX.X $XXX,XXX revenue Street new and increased property primarily to residential due, a XXX from House debt detailed, charge as occupancy quarter million expense impact Gardens billings $XX.X the increases million end result, West the were increased Livingston quarter at the Flatbush of at expenses property.

Street projects. With Interest expense of year-on-year quarter additional to in million of cash. capitalization cash sheet, across oil increased quarter side, at expense as expenses was expenses were for estate charge $XXX,XXX $XXX,XXX prices quarter. $XXX,XXX this last year. were improved follows: the This second year's bad the mentioned, balance decreased in and in David and interest gas by quarter increased XXX last Pacific portfolio last the Real the XXXX the ready operating of expense than third insurance make the the leasing year. and Gardens our the to million in due higher excluding units Flatbush $XX.X arrangements year-on-year by for for of as we and and second have debt year-over-year to approximately with property increased insurance taxes began property to primarily restricted due development increased associated changes year, On heating $XX.X $XXX,XXX Street key to regard second the Dean costs vacant due unrestricted

funding subject cross-collateralized. are development standard construction substantially carve-outs portfolio We Pacific with asset-by-asset limited is and basis, and not Street acquisitions and to XXXX financing. our Dean is our an finance of our We our Street on nonrecourse, debt

We dividend paid are announcing share -- on debt $X.XXX quarter, on no overall XXXX, to properties have excuse for XX. last on Today, duration amount shareholders August average years. of we the the maturities with quarter. -- August X.XX average me, of with 'XX, any The as second dividend with be until per record same XX a of will

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

David Bistricer

operating growth to improvements line XXXX to the XXXX look may Thank themselves. up and XXX for a focus of that Dean efficiency, to open possibilities Larry. through opportunities, Street the portfolio. you, and current our would operating now other We capitalizing remain I questions. myriad to Pacific accelerate look forward present on developments We beyond. on including and continue to like We

Operator

Instructions]. James. Buck we Horne [Operator question from do Raymond from coming And have a

Buck Horne

price market kind costs what loan in few the And of completion that in what the be you at? terms see frame of taking in with months of XXXX out the you putting market or do some into can out in that sort permanent loan. go here, you and curious think property like financing Just at visibility for what to next time of the coming Pacific would on construction

David Bistricer

gone yet market. the haven't to We

the know speak financing we're to we before terms we're doing and the loan. bit little program the who rate fourth early to things interest and the such other very hurt yet. permanent jumping it's make And We towards a a that that because rented for the engage the think different year, in are will gun lender we we'll focused of not we'll of of starting it's to this with it, us has itself But where on that's applications. one starting rented be lenders it. on It's quarter more and

Buck Horne

Okay.

on have And there. pro that? cost might idea that. the on the on Appreciate time forma stabilized look projected for line Dean any Street you Okay. on yield what redevelopment, what's so If completion like

David Bistricer

here. is we'd have it, This you We'll of actually something front to don't I have back to. me. back to number it don't get I We that have after call. have in but the get

Operator

further are remarks. the Instructions]. no I would to time. closing floor there back questions in And pass at [Operator now queue the for management team to like this

David Bistricer

you again with Have healthy look you to Thank forward speaking happy, for us joining We a summer. today. soon.

Operator

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

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

Clipper Realty (CLPR) 10 Aug 222022 Q2 Earnings call transcript