CLPR - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Clipper Realty Quarterly Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Larry Kreider. Sir, the floor is yours.

Lawrence Kreider

Thank you, John. And good afternoon, and thank you for joining us for the First Quarter 2024 Clipper Realty Inc. Call. Conference Earnings on the me are Bistricer, David Participating and today's Chief of Board J.J. Executive Co-Chairman with call Officer; and Operating Officer. Chief Bistricer,

XX-K, are report These may including the differ is Please the www.sec.gov from and those which deemed statements uncertainties, that such materially on subject statements, not forward-looking company's and to by that risks statements. forward-looking results be in be are at historical XXXX those website. actual made and Form disclosed indicated annual may statements aware accessible call our during numerous

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

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

I will Co-Chairman over to turn CEO, David With that, Bistricer. the and now call our

David Bistricer

Larry. to Earnings for an XXXX will to discuss will Realty. leasing and Welcome First Quarter including performance, Call some provide business our Good Larry update speak After I you, will performance our performance. J.J. which, afternoon. Clipper on quarterly and the developments. Thank new property-level financial activity,

take your then questions. We will

the rents. portfolio, prior leases X% exceeded the rents quarter, portfolio strong that our leased. rents the Rental for and report overall properties. market-based are at reporting to rents era new our net as continuing are quarters replaced first be positive our XX% continues properties entire pleased with across I'm were previous by income, revenue current and all to demand stabilizing we from In COVID are record and trend operating residential

the remained rental square House Clover were in at House December and per Brooklyn, Overall of new Clover $XX end $XX House, $XX at at Tribeca foot. Tribeca, record better over the levels in leases $XX than At XXXX. levels Manhattan in XX%

which we XX property that tenants. our wages. July, eliminated assisted As with York This real continue on Housing property provide department, Article enhanced under providing we according the of Gardens, taxes preservation to Flatbush after improvements, City be property rental Since housing pleased us and Law the Private results. XX-year have assistance to profitably with New allow Finance and tenant higher and for commitments estate for upgrade should last to agreement our for recoveries operated by the

all meeting our We very meaningfully to XXXX leased, Street are as tenants. Pacific our ground-up we also projected XXX% Operationally, development yielding with to rental stabilized nearly is and meaningfully Brooklyn in X% commitments and fully cap -- for assisted flow. contributing receive rate. new Pacific known are beginning now House cash and enhance is and at income pleased the It

any XXX taxes. X market Properties mile affordable, which the pay not us and located Barclays properties allows XX% XX% Prospect Heights, Hub, Center free about at Atlantic to units, from

their XXXX. center. At foot August intention premises the building square City we X-story feet construction of XXXX bought and for completed XXX We units, development, amenitized vacate leasing quarter. ground-up square the and X,XXX We notified have of previously XXX and to New on ahead wish construction At the ahead to last feet, $XX.X the residential us and square free nearby loan XXX,XXX XXXX million commercial to is market in season, Dean fully land with of and proceeding disclosed schedule the Street in utilizing construction Street, time of closed Livingston 'XX superstructure that XX% complete expect affordable we schedule. XXX York to XX% build in rentable of

seeking are supported properties. and cash solutions opportunities from by flows pursuing other We

course, regularly. will our keep progress of Of we informed you

tenant for high make interest our environment, higher demand the versus option. continued the believe rates we rate As rental for purchase product higher the

We our properties. of at are operating by relatively the debt long also duration buttressed

Our Average duration rates. to and nonrecourse our operating an XX% fixed asset-by-asset subject average an at X.XX% not standard is cross-collateralized. of debt is years, on is portfolio interest We X.X finance limited carve-outs basis.

quarter for the cost leases results the residential at NOI last of I million, and of improvements cover expenses. and regard as the are increased as and looked detail. our These operating leasing year results, just to the million and revenue to at reductions mentioned. respect further duration With $XX.X quarter record we J.J. reporting quarterly allow to over our of us I strong operation, represent short to AFFO high first With a result $XX.X record we will $X.X million first demand

I provide the update will now over call turn J.J., who to operations. will on an

Jacob Bistricer

approaches to that our all improve end am following the full rent performance I report COVID pleased our full period. you. of and stabilization to Thank while residential the properties continues recovery leasing at

the continuing levels new rents had our previous record At XX%, levels. residential at lease renewal the and while of rental quarter, first all by rents over X% are at occupancy and the recording previous our still end properties averaging Overall, properties. quarter high exceeded residential rates first over in very increases

remains the high housing publicized. supply strong to and in future as widely leasing remains remain as expect the demand constrained overall We rental foreseeable very

have increase rents We to over. even after are the COVID pandemic continuing turned lower rates

over At foot per per overall and square occupancy Tribeca to the at pandemic. foot we leased average end House, $XX of increased the $XX rent near versus maintained XX% have

square are XX% and Clover is rents $XX our At House property, occupancy leased per foot. over average

At with cash rents and and now are with stabilized underwriting. tenants, the rate and market House original fully a XXX% rent-stabilized we above free projected our rents free in X% Pacific leased square per the market of are flows foot property, achieving cap blend $XX recently completed operating

increased and these from occupancy a has XX lease other our year Street at perform Aspen West ago. above XXth have XXX for Similarly, properties XX% Livingston properties residential well. Street, rates rental to continues X% been Average and average

of XX with the on at Flatbush housing the property, to the performance be Gardens agreements Article pleased we preservation last our continue the have real with formerly and York large City year. in completing New capital residents. made placing July, begun we taxes our XX have offering June the begun rebate received committed homeless full department last under beginning projects new We Lastly, estate

us vacancies the for tenants. also Finance the homeless leases over we have begun of next We formerly These assistance the and property. steadily renewed Private to allow profitably with as the improve years tenants with meaningfully enhanced the increase on couple reimbursement Housing obtain XXX assisted Section fill should residents Law benefits of to receiving and

per also increases Board the been couple for for where tenants, increases the getting permitted are non-assisted at last We on X% level the have years rent annum. of guideline

overall quarter end $XX.XX result, quarter the of rents a per first at property As increasing, the to are the $XX.XX versus rising square foot the average last for of the end at year.

as the across high at month-end first seasonally Gardens was our portfolio levels. quarter seasonally first prepayments collections bolstered Rent quarter expected over collection by collections rate House. remain Tribeca at in XXX% The overall Flatbush at and

best optimizing our business implementing Looking expenses Article our transaction fully position pricing to for projects ourselves ahead, completing development focused and occupancy, the growth. we and expeditiously across XX the remain on

discuss to financial over now I call our will who turn results. Larry, the will

Lawrence Kreider

J.J. you, Thank

or House online or million first year last the million. from came excluding by this increase was the was to a House. of an million second impact $XX.X million, Pacific impact quarter revenues million, impact $X.X an first For NOI record $X.X year of year quarter, the House. million Pacific that from year increase Pacific quarter, increased million, of quarter, $X.X this $XX.X excluding last $XX.X $X.X in AFFO increase million $X.X an increasing the $X.X million of of the or of last excluding $X.X from million,

higher increased all primarily or residential residential leasing continued from $X.X temporary revenue Tribeca quarter, by excluding to first discussed, concessions increase some million, offset million impact to million This of rental the rates for due House. partially by strong was at Pacific $XX.X properties previously For the House. $X.X the

better last ERAP expense all Flatbush improved year, debt lower at collections than million Gardens. was Bad reimbursements properties at despite $X.X reflecting

a of caused rental was one leases commercial the income replaced. been has at The slightly which property, Aspen by lower of couple

expenses year-over-year or $X.X were payroll by properties $X.X year-on-year partially the property higher primarily of offset the Gardens, million elimination real estate cost by taxes and in of the due to at in increases at estate routine Pacific million, decreased offset insurance the other at with Real transaction, utility million wage million year-on-year from primarily impact by $X.X House, million Pacific Gardens insurance and increases. Flatbush or excluding real changes lower Article expense to the of million taxes of to estate due partially operating $X.X requirements $X.X $X.X first by House, Flatbush excluding side, quarter key million, comply On quarter-on-quarter XX requirements costs. the increased $X.X follows: as under taxes

primarily quarter compensation by General expenses administrative and year-on-year, lower cash, as due first $X.X to in increased higher fees. expenses offset million audit by partially taken the

which increased second elimination expense interest to quarter of House Pacific in capitalized of excluding first by service million Interest in or $X.X the Pacific due year. year-on-year the in came $X.X the impact for quarter million, House, last

restricted unrestricted our million cash to million $XX.X of regard balance we $XX.X cash. With have and of sheet,

will announcing than quarter, the paid same the share as we In XXXX. dividend the loan May be debt to quarter. first of Street XX, in third no quarter, draws of dividend on shareholders May per of property record had the quarter under first amount are $X.XXX activity XXXX, The other in we we the new XXXX. closed Dean construction XX, at Today, last a

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

David Bistricer

focused We on that XXX developments other Flatbush Livingston your itself. XX managing improvements New Article current the York Thank forward portfolio. efficiently other leasing Gardens to at optimizing XXXX issues We look you, our on Street and through opportunities capitalizing 'XX. operating and remain We Street properties to Dean Larry. and operating present may transaction, continue opportunities, look growth for

line now for would like the to questions. I open

Operator

currently We in questions have queue. Instructions] no [Operator

David Bistricer

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

Operator

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

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

Clipper Realty (CLPR) 7 May 242024 Q1 Earnings call transcript