Clipper Realty Inc. (NYSE:CLPR) Q3 2023 Earnings Call Transcript
Clipper Realty Inc. (NYSE:CLPR) Q3 2023 Earnings Call Transcript November 2, 2023
Clipper Realty Inc. misses on earnings expectations. Reported EPS is $ EPS, expectations were $0.17.
Operator: Good day and welcome to the Clipper Realty Quarterly Earnings Call. At this time, all participants have been placed on a listen-only mode 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 Larry Kreider. Sir the floor is yours.
Larry Kreider : Thank you, John. Good afternoon and thank you for joining us for the third quarter 2023 Clipper Realty Inc. earnings conference call. Participating with me on today's call are David Bistricer, Co-Chairman of the Board and Chief Executive Officer; and J.J. Bistricer, Chief Operating Officer. Please be aware the statements made during the call that are not historical may be deemed forward-looking statements and actual results may differ materially from those indicated by such forward-looking statements. These statements are subject to numerous risks and uncertainties, including those disclosed in the company's 2022 annual report on Form 10-K and updated in the 2023 third quarter report on Form 10-Q which are accessible at www.sec.gov and our website.
As a reminder the forward-looking statements speak only as of the date of this call November 2, 2023 and the company undertakes no duty to update them. During this call, management may refer to certain non-GAAP financial measures including adjusted funds from operations or AFFO, adjusted earnings before interest, taxes, depreciation and amortization or adjusted EBITDA and net operating income or NOI. Please see our press release supplemental financial information in Form 10-Q posted today for a reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures. With that, I will now turn the call over to our Co-Chairman and CEO, David Bistricer.
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David Bistricer : Thank you, Larry. Good afternoon and welcome to the third quarter 2023 earnings call for Clipper Realty. I will provide an update of our business performance and some exciting new developments after which J.J. will discuss property level activity including leasing performance and I will speak to our quarterly financial performance. We will then take your questions. I am pleased to report that we have record operating results on most key metrics and continuing the positive trends from previous quarters. Rental demand has been very strong at all our properties. In the third quarter new leases exceeding prior rent by 12% across the entire market-based portfolio and our properties are 98% leased. At Tribeca House, Manhattan and Clover House in Brooklyn new leases were $91 per square foot and overall rent levels reached a record $78 per foot on average, 40% better than the $63 per foot at the end of 2021.
At Flatbush Gardens, we have begun operating as of July 1 under the previously announced 40-year agreement with the New York City's Housing Preservation Department so-called Article 11 of the Private Housing Finance Law. Under this agreement, the elimination of real estate taxes and enhanced rental recoveries for assisted tenants will allow us to profitably provide for our commitment for property improvements, tenant assistance and higher wages for everyone's benefits. Of course we are at the early stages and will report our progress as we move forward. Operationally, we are also very pleased with our new ground-up development project Pacific House, 1010 Pacific, which became online last quarter and budgeted and is 93% leased and on target to yield a 7% cap rate.
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