CLPR - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Clipper Realty Quarterly Earnings Call. [Operator Instructions] And the floor will be open for questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Lawrence Sava, Corporate Controller. Sir, the floor is yours.

Lawrence Sava

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

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

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

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

David Bistricer

after Lawrence Thank performance performance. financial J.J. XXXX provide leasing Clipper developments, to the Realty. performance discuss Good an business including and I property speak activity, and update fourth you, which Lawrence. earnings our welcome some to and will afternoon, level quarter call for will to quarterly our

We will questions. your then take

we new continues activity. Brooklyn, be leased. rents and net the $XX House operating our on AFFO results generally X% House Overall we per foot. strong the levels in reporting properties. and at and continue operating revenue, foot. to at again, by prior nearly to to $XX all-time our and by Rental once all portfolio, leases are were including exceeded entire based Clover that pleased increase, Tribeca $XX record highs and in leases report new per demand fourth across are am Manhattan excellent residential are Overall where I rents and rent quarter, income In $XX led fully over were the record

and Gardens Results at are strong stabilized property, rental Flatbush also improving. our

$XX New in per the average XX% exceeding were across QX portfolio $XX by per the prior foot, leases and leases entire foot. rents were almost

Private are with assistance, higher supported Article by We XX-year property the Preservation estate New tenant abatement Law assisted and the the began under under commitments full City for of XXXX. our Finance aggressively fulfilling Housing that York rental enhanced abatement improvements, Housing by taxes recoveries and real tenants of XX wages July Department

now Operationally, yielding House is XXX proceeding, we Dean at Street, ground-up leased is very It full Street contributing operation completion. we're after is new nearing to cap year development At and the cash Pacific ground-up and with projects, flow. pleased project X% development a of Pacific stabilized our construction XXXX fully and rate. are XXX% nearby

X-story leasing commercial feet, spaces rentable fully the building in leasing XXX,XXX feet. XX% We and 'XX a which to land pre-market, XX rental and months affordable, the XXX XX,XXX line on XXXX begin amenitized season. XXXX residential will the with We parking units, bought XX% square build in coming residential with

in disclosed At where, Livingston us August New vacate intention our their previously property, to 'XX. XXX of City notified as York has

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

lease our the informed XXXX. XXX regularly. our you New At X-year extension in that are other City to progress of current We property Street, December expires finalizing a will we keep Livingston York

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

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

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

reporting of I year, as cost Regarding of the further we fourth quarterly of $XX as quarter our results represent strong million, J.J. million, $XX.X last Lawrence leasing mentioned. revenue million These over NOI and are a will $X.X reduction record result improvements quarter fourth AFFO results, of the and detail.

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

Jacob Bistricer

residential Thank our you. levels. the our recording and fourth and properties new all the at X% were still residential at that in and I'm improve. very and the properties to our lease At X.X% levels rental quarter by record at increases pleased report residential fourth leased exceeded previous quarter, of rates strong over renewal to Overall, were XX% is end our properties. leasing rents and rents continues over previous

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

of $XX leased of December, had average occupancy rents and and XX%, $XX new foot. new end square of had House Tribeca leases As per the per occupancy rent rents leased over foot. per square XX%, of House Clover The $XX of over foot property of per foot $XX at

Our $XX the recently occupancy on tenants underwriting. of square blend X% of completed per leased and of rent-stabilized pre-market foot flows achieving original the XX%, projected leases. cap This with rate new consisting cash fully Pacific is House pre-market a now operating property had property in stabilized rents of

at Aspen to above leases. occupancy X% XX% renewals residential perform lease XXX other record to XX with rents West Livingston at average Street, previous XXth new and Street levels higher and properties and compared continued Our

committed, York we to of with pleased large we the July, under the City Preservation at agreement Gardens Flatbush maintenance the placing Using capital last we with XX operating property, year. new real aggressively Article and estate our last issues homeless formerly be XX residents. on projects completing dealing are of Housing the taxes continue beginning performance the made with Lastly, Department abatement full New June

million year, and in property. leases have obtain period Finance nearly $X.X benefits we should improvements renew amounted with of $X.X and enhanced XXX far over profitable receiving this increase for steadily Housing and years of million formerly next reimbursements Private the tenants. with These couple homeless to to We and assisted have the fill to so tenants the assistance on the begun residents meaningfully the Law Section as current the vacancies facilitate

We tenants under increases couple are Rent Board getting the the for been of Guidelines years. non-assisted have last permitted where for also increases

last exceeding XXX the by prior end were together leases a benefits assisted overall tenants, per the and with result, square in the XX%. $XX.XX versus for leases at the end risen the As fourth $XX Section fourth for to the the quarter new square foot, $XX have average property foot rents at per of quarter quarter year, the of

the residential properties was on collection which Gardens, for at Rent all collections XX%. first fourth quarter across our Collections had the portfolio high been on assisted as overall in in half historically remains to strong. levels and ERAP The collection the XX% rate Flatbush have of XX% of for XXXX with without XX% prior New in the procedures last York the work eased we payments years tenants. as City X benefit quarters at

Additionally, we are system through responsibly court minimize and working the to steadily arrears.

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

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

Lawrence Kreider

J.J. you, Thank

or Revenues million we quarter, us. increase $X.X XX.X%; AFFO achieved increased X.X%; fourth an $XX.X million $XX to in million $XX to million to from measures of last the of NOI to record X important $X.X year, increase For last an increase increased $XX.X results an $X.X million or from $X.X million or and $X.X XX%. year, increased million million from of million,

debt rate beginning offset now years. Gardens J.J. Flatbush resulting Occupancy This million in revenue compared $X.X increased quarter, residential in to expect quarter. $XX.X revenue last the all meaningfully XXX million. in which rental and at to next earlier. for leasing over year. the the strong by flat steadily $X.X revenue which previously increase increased were benefited to rents, the we Section by For from lower discussed. all-time collection to Commercial that increase We as million was is partially quarter from of further contribute, rates at The mentioned quarter was due and to fourth was few bad the highs properties

On due requirements agreement. due to the side, under Flatbush wage the Property were year-over-year increased year-over-year, by follows: quarter $XXX,XXX changes the to XX key expenses substantially prevailing its Gardens it operating of Article expense in as all

related experienced utility and activities, also higher slightly costs. repairs costs costs collection partially to offset legal We maintenance by and lower

amount Interest the year-on-year for were to fiscal XXXX. increased $XXX,XXX the at -- our properties decreased new fully in insurance costs slightly by on taxes rate flat. year-on-year fourth routine $XX,XXX fourth of increases Gardens, in abated lower and quarter its in increased expense taxes variable the to estate July estate real quarter which Flatbush by year had rates Insurance due debt. due other limited Real by taxes in than

fourth the $X.XXX XXXX. we as draws have debt million of we XXXX, the sheet, X, quarter. restricted and last The XXXX. are paid balance the Street announcing no share on a fourth we will quarter, of of unrestricted new we had Dean to quarter under In dividend the our same cash. loan per million to dividend record regard April than other cash With closed construction in Today, of fourth the property XX, $XX.X $XX.X of quarter, activity for shareholders on be March

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

David Bistricer

improvements on look you, efficiently portfolio. operating current We Thank XXXX. operating into remain focused our We our Lawrence. for continue to

Dean the XXX Street Garden that in transaction, finalizing present XX Flatbush optimizing Looking themselves. and XXX development, forward may the XXX on Article vacancy resolving of the capitalizing opening other possibilities lease, to

line like now questions. would for I to open the

Operator

management remarks. like have [Operator to currently questions Instructions] I'd the Okay. We floor closing to in for queue. the turn back no

David Bistricer

joining with Good for again you us to you look forward soon. night. Thank today. We speaking

Operator

Ladies does question-and-answer This you. call. session. the this concludes you. conclude gentlemen, the conference and Thank Thank

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

Clipper Realty (CLPR) 18 Feb 252024 Q4 Earnings call transcript