Clipper Realty (NYSE:CLPR) Posts Earnings Results, Misses Estimates By $0.41 EPS

Clipper Realty (NYSE:CLPR) posted its earnings results on Thursday. The company reported ($0.30) EPS for the quarter, missing the consensus estimate of $0.11 by ($0.41), Zacks reports. The firm had revenue of $37.07 million for the quarter, compared to analysts’ expectations of $38.10 million.

Here are the key takeaways from Clipper Realty’s conference call:

• Residential rentals are at record highs and the stabilized portfolio is ~99% leased, with fourth-quarter new leases roughly 13% above prior rents and portfolio rent collections around 98%.
• The ground-up Prospect Park development at 953 Dean Street was delivered on time and on budget, is ~78% leased in initial lease-up with market rents near $85/sq ft, though it currently reduces AFFO until fully stabilized.
• The termination of the New York City lease at 250 Livingston Street significantly hurt results—management ceased payments, is seeking reimbursements, and is pursuing debt restructuring but warns it may not fund ongoing expenses, driving material revenue/NOI/AFFO declines.
• Financials show revenues of $37.1M, NOI of $20.7M and AFFO down to $1.7M from $8.1M a year ago; the company reports $30.8M unrestricted cash, $27.3M restricted cash, 89% fixed-rate debt at a 3.87% average, and maintained the quarterly dividend at $0.095/share.

Clipper Realty Price Performance

NYSE:CLPR traded down $0.25 during mid-day trading on Friday, hitting $3.12. 194,180 shares of the company’s stock were exchanged, compared to its average volume of 66,528. The business has a fifty day moving average price of $3.54 and a 200 day moving average price of $3.80. Clipper Realty has a one year low of $3.08 and a one year high of $4.74. The company has a market cap of $50.38 million, a PE ratio of -2.79 and a beta of 0.98.

Clipper Realty Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, March 12th will be given a dividend of $0.095 per share. This represents a $0.38 dividend on an annualized basis and a yield of 12.2%. The ex-dividend date of this dividend is Thursday, March 12th. Clipper Realty’s dividend payout ratio (DPR) is -33.93%.

Insider Activity at Clipper Realty

In related news, Director Sam Levinson purchased 19,558 shares of Clipper Realty stock in a transaction dated Tuesday, December 30th. The stock was purchased at an average cost of $3.70 per share, for a total transaction of $72,364.60. Following the completion of the acquisition, the director directly owned 79,410 shares of the company’s stock, valued at $293,817. The trade was a 32.68% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders acquired 58,263 shares of company stock valued at $216,184 over the last 90 days. Corporate insiders own 53.01% of the company’s stock.

Institutional Trading of Clipper Realty

Several institutional investors have recently added to or reduced their stakes in the business. Virtu Financial LLC purchased a new position in Clipper Realty in the 4th quarter worth about $42,000. Wells Fargo & Company MN lifted its holdings in shares of Clipper Realty by 48.0% during the 4th quarter. Wells Fargo & Company MN now owns 15,485 shares of the company’s stock valued at $59,000 after buying an additional 5,023 shares during the period. Deutsche Bank AG purchased a new position in Clipper Realty in the fourth quarter worth about $63,000. Geode Capital Management LLC grew its stake in shares of Clipper Realty by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 339,418 shares of the company’s stock valued at $1,297,000 after purchasing an additional 8,738 shares during the period. Finally, Abel Hall LLC purchased a new stake in shares of Clipper Realty during the 3rd quarter valued at about $52,000. 37.57% of the stock is currently owned by hedge funds and other institutional investors.

Clipper Realty Company Profile

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.