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

Clipper Realty (NYSE:CLPR) announced its quarterly earnings data on Thursday. The company reported ($0.30) EPS for the quarter, missing the consensus estimate of $0.11 by ($0.41), Zacks reports. The company 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 Stock Down 7.4%

Shares of CLPR traded down $0.25 on Friday, reaching $3.12. The stock had a trading volume of 194,180 shares, compared to its average volume of 66,528. Clipper Realty has a twelve month low of $3.08 and a twelve month high of $4.74. The firm has a market capitalization of $50.38 million, a PE ratio of -2.79 and a beta of 0.98. The firm has a 50-day moving average of $3.54 and a 200 day moving average of $3.80.

Clipper Realty Dividend Announcement

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

Insider Transactions at Clipper Realty

In other news, Director Sam Levinson bought 33,494 shares of the firm’s stock in a transaction on Monday, December 29th. The shares were bought at an average cost of $3.71 per share, for a total transaction of $124,262.74. Following the completion of the transaction, the director owned 57,099 shares in the company, valued at $211,837.29. This trade represents a 141.89% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders acquired 58,263 shares of company stock worth $216,184 over the last ninety days. Insiders own 53.01% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Virtu Financial LLC purchased a new stake in shares of Clipper Realty in the 4th quarter worth about $42,000. Russell Investments Group Ltd. lifted its holdings in shares of Clipper Realty by 161.4% in the third quarter. Russell Investments Group Ltd. now owns 12,673 shares of the company’s stock valued at $48,000 after purchasing an additional 7,824 shares in the last quarter. Abel Hall LLC acquired a new stake in shares of Clipper Realty in the third quarter valued at approximately $52,000. Wells Fargo & Company MN grew its position in shares of Clipper Realty by 48.0% in the fourth quarter. Wells Fargo & Company MN now owns 15,485 shares of the company’s stock valued at $59,000 after purchasing an additional 5,023 shares during the last quarter. Finally, Deutsche Bank AG purchased a new position in shares of Clipper Realty during the 4th quarter worth approximately $63,000. Institutional investors and hedge funds own 37.57% of the company’s stock.

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.