Clipper Realty NYSE: CLPR executives highlighted strong residential demand and record rents during the company’s fourth-quarter 2025 earnings call on Feb. 26, 2026, while also addressing the fallout from New York City’s lease termination at its 250 Livingston Street office property and progress on the initial lease-up of its 953 Dean Street development.
Residential portfolio: near full occupancy and record rents
Co-Chairman and CEO David Bistricer said the company’s residential properties “continue to perform very well” amid “continued high residential rental demand,” contributing to “excellent cash flow.” He noted the portfolio is “nearly fully leased,” with overall rents “generally at all-time highs and continuing to increase.”
Chief Operating Officer JJ Bistricer provided additional detail, reporting that stabilized residential properties were 99% leased overall during the quarter. He said new rental rates in the fourth quarter exceeded prior rents by more than 13%, while renewals were up 7%.
JJ Bistricer also cited what he described as a constrained rental housing supply in New York City, saying new development remains discouraged and that the company expects demand for its residential product to remain strong “in the foreseeable future.”
Property-level leasing updates
Management discussed leasing metrics across the company’s residential portfolio, including occupancy and rent levels, and provided an update on its newly completed development at 953 Dean Street.
- Tribeca House: 99% lease occupancy; rent per foot of $89; new rents at $95 per foot.
- Clover House: 96% occupancy; average overall rents of $90 per foot; new leases at $95 per foot.
- Flatbush Gardens: 98% leased occupancy; average overall rents (including those under an Article 11 agreement with New York City) of $32 per foot; new leases of $54 per foot. JJ Bistricer said the company continues fulfilling leasing commitments for assisted tenants and making required capital improvements.
- Prospect Park property (recently completed): 96% lease occupancy; free-market rents of $76 per foot on new leases.
- Aspen: average occupancy above 98%; new rents and renewals 15% higher versus previous leases.
On rent collections, JJ Bistricer said portfolio collections remained strong, with an overall fourth-quarter collection rate of approximately 98% across residential properties, including 98% at Flatbush Gardens. He added the company is working through the legal system to reduce arrears.
953 Dean Street development: lease-up underway
Management discussed the second quarter of initial lease-up at the company’s Prospect House development at 953 Dean Street. David Bistricer said the property was brought online in August “on time and on budget,” and that the bridge loan put in place last quarter is expected to provide funds through stabilization.
He said the project was approximately 78% leased, with market rents around $85 per foot. The development is a nine-story, fully amenitized residential building in Brooklyn with 360,000 rentable residential square feet and 240 units, including 70 free-market units and 30% affordable units, along with 57 parking spaces and 19,000 square feet of commercial rentable area.
Office portfolio: 141 Livingston resolved; 250 Livingston uncertainty
On the company’s office assets, David Bistricer said Clipper Realty settled lender claims at 141 Livingston Street and obtained lender approval for a five-year lease extension with the principal tenant, New York City, consistent with prior disclosures.
At 250 Livingston Street—where New York City vacated in mid-August 2025—Bistricer said the company notified the lender it does not intend to support the property’s ongoing operation. He said that following the lease termination, the company ceased making payments of interest and real estate taxes and applied for reimbursements of expenses incurred since then. He added the company “may not fund these expenses” at the conclusion of distribution discussions, and said it has begun to restructure the property debt, while cautioning it cannot assure a restructuring will be completed.
Financial results reflect lease termination and development ramp
Chief Financial Officer Larry Kreider said quarterly results compared with the prior year reflected three unusual items: the termination of the New York City lease at 250 Livingston Street on Aug. 23, 2025; initial lease-up results at Prospect Park/953 Dean Street as expenses exceeded limited but growing revenue; and the absence of results from 10 West 65th Street, sold in May 2025. He referred to the remaining assets as “ongoing properties.”
Kreider reported revenue of $37.1 million versus $38.0 million a year ago, and net operating income (NOI) of $20.7 million versus $22.6 million. Adjusted funds from operations (AFFO) totaled $1.7 million, compared with $8.1 million in the prior-year period.
He said residential revenue rose $2.7 million, or 9%, driven by strong leasing, including a $2.2 million increase from ongoing rent-stabilized residential properties and a $1.5 million increase from the second full quarter of initial lease-up at the development property, partly offset by a $1.0 million decline tied to the sale of 10 West 65th Street. Those gains were more than offset by a $4.0 million decline associated with the 250 Livingston Street lease termination, partially offset by a $0.3 million increase from new retail leases at Tribeca House and Aspen.
For NOI, Kreider attributed the year-over-year decline primarily to a $3.8 million decrease from the 250 Livingston Street lease termination, which outweighed increases from ongoing stabilized residential properties and the inclusion of the newly placed-in-service development.
On AFFO, Kreider said the decline reflected a $6.1 million reduction tied to the 250 Livingston Street termination and “full expense accrual,” along with a $1.2 million negative contribution from the development’s lease-up phase due to full expenses and partial leasing.
On the balance sheet, Kreider reported unrestricted cash of $30.8 million and restricted cash of $27.3 million at quarter-end. He added that operating debt was 89% fixed at an average rate of 3.87% with an average duration of 3.7 years, and that the company’s debt is non-recourse (subject to limited standard carve-outs) and not cross-collateralized.
The company also declared a quarterly dividend of $0.095 per share, unchanged from the prior quarter, payable March 19, 2026, to shareholders of record on March 12, 2026.
In closing remarks, David Bistricer said the company remains focused on operating efficiency and said it is looking ahead to fully leasing up the 953 Dean Street development and “resolving the 250 Livingston Street.” The call concluded without any analyst questions.
About Clipper Realty NYSE: CLPR
Clipper Realty Inc is a publicly traded real estate investment trust that acquires, owns and manages multifamily residential and mixed‐use properties in the Greater New York metropolitan area. Since its initial public offering in early 2017, the company has focused on strategically sourcing apartment buildings and retail space in Manhattan and Brooklyn, with an emphasis on value‐add opportunities that can benefit from in‐house leasing, renovation and operational efficiencies.
The company's primary activities include property acquisition, selective repositioning and asset management.
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