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

Clipper Realty (NYSE:CLPR) issued its quarterly earnings results on Thursday. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.41), Zacks reports. The business had revenue of $37.07 million during 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

CLPR stock traded down $0.25 on Friday, hitting $3.12. 194,180 shares of the company were exchanged, compared to its average volume of 66,528. The stock has a market capitalization of $50.38 million, a price-to-earnings ratio of -2.79 and a beta of 0.98. Clipper Realty has a twelve month low of $3.08 and a twelve month high of $4.74. The business’s fifty day moving average is $3.54 and its two-hundred day moving average is $3.80.

Clipper Realty Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, March 12th will be issued a $0.095 dividend. This represents a $0.38 dividend on an annualized basis and a yield of 12.2%. The ex-dividend date is Thursday, March 12th. Clipper Realty’s payout ratio is presently -33.93%.

Insider Activity at Clipper Realty

In other news, Director Sam Levinson bought 19,558 shares of the business’s stock in a transaction that occurred on Tuesday, December 30th. The shares were acquired at an average cost of $3.70 per share, with a total value of $72,364.60. Following the transaction, the director owned 79,410 shares of the company’s stock, valued at $293,817. This represents a 32.68% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. In the last three months, insiders acquired 58,263 shares of company stock worth $216,184. Corporate insiders own 53.01% of the company’s stock.

Institutional Investors Weigh In On Clipper Realty

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Virtu Financial LLC purchased a new position in shares of Clipper Realty in the 4th quarter worth about $42,000. Russell Investments Group Ltd. grew its holdings in shares of Clipper Realty by 161.4% during the 3rd quarter. Russell Investments Group Ltd. now owns 12,673 shares of the company’s stock worth $48,000 after purchasing an additional 7,824 shares during the period. Abel Hall LLC acquired a new stake in Clipper Realty during the 3rd quarter worth approximately $52,000. Wells Fargo & Company MN increased its position in Clipper Realty by 48.0% during the 4th quarter. Wells Fargo & Company MN now owns 15,485 shares of the company’s stock worth $59,000 after purchasing an additional 5,023 shares in the last quarter. Finally, Deutsche Bank AG purchased a new position in Clipper Realty in the fourth quarter valued at approximately $63,000. 37.57% of the stock is currently owned by institutional investors and hedge funds.

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.