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Clipper Realty Inc. (CLPR)
:CLPR
US Market

Clipper Realty (CLPR) AI Stock Analysis

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Clipper Realty

(NYSE:CLPR)

Rating:56Neutral
Price Target:
$3.50
▼(-4.89%Downside)
The overall stock score is primarily driven by the challenges in financial performance due to high leverage and negative equity. However, the positive sentiment from the latest earnings call and corporate events provides some optimism. The valuation remains mixed, with a high dividend yield offering some support despite profitability concerns. Technical indicators suggest weak momentum, impacting the stock's attractiveness.

Clipper Realty (CLPR) vs. SPDR S&P 500 ETF (SPY)

Clipper Realty Business Overview & Revenue Model

Company DescriptionClipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.
How the Company Makes MoneyClipper Realty makes money primarily through the collection of rental income from its portfolio of properties. The company generates revenue by leasing out residential apartments, office spaces, and retail properties to tenants. This rental income is the primary revenue stream for Clipper Realty. Additionally, the company may benefit from property appreciation and potential sales, though its core business model focuses on long-term property management and rental income. Strategic property acquisitions and effective property management also contribute to maintaining and potentially increasing rental revenues.

Clipper Realty Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: -8.91%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including record revenues, strong leasing performance, and successful development projects. Despite an impairment charge and increased operating expenses, the positive aspects, such as high occupancy rates and strategic refinancing, outweigh the challenges.
Q1-2025 Updates
Positive Updates
Record Revenue and Residential Rents
The company reported a record quarterly revenue of $39.4 million, a 10.2% increase over last year, and record residential rents driven by high rental demand.
Strong Leasing Performance
Residential leasing at all properties is very strong with 99% occupancy and rents at record levels. New leases exceeded prior rents by over 15% across the entire portfolio.
Successful Development Projects
Construction on 953 Dean Street is substantially complete on time and on budget, with leasing set to commence June 1st. Pacific House at 1010 Pacific Street is stabilized and contributing to cash flow.
Refinancing and Sale Agreements
The company refinanced the construction loan at 953 Dean Street with a new $160 million loan. Additionally, a contract to sell 10 West 65th Street for $45.5 million is expected to generate approximately $12 million.
Improved Financial Metrics
NOI increased by 8% to $21.8 million, and AFFO increased by 36% to $8 million, driven by strong leasing performance.
Negative Updates
Impairment of Long-Lived Assets
A $33.8 million charge was recognized due to the planned sale of 10 West 65th Street, impacted by the 2019 New York City Rent Act limiting rent increases.
Increased Operating Expenses
Property operating expenses rose by $1.5 million year-over-year, primarily due to higher payroll costs and legal expenses.
Company Guidance
During the Clipper Realty Q1 2025 earnings call, the company reported record financial performance, including a 10.2% increase in quarterly revenue to $39.4 million, excellent net operating income (NOI) of $21.8 million, an 8% increase, and adjusted funds from operations (AFFO) of $8 million, reflecting a 36% increase, all driven by high rental demand. Residential leasing was robust with properties 99% occupied, and new lease rents exceeded previous rents by over 15%, while renewals were up 8%. The company also highlighted the completion of a new development at 953 Dean Street, Brooklyn, which will begin leasing in June, and the sale of 10 West 65th Street for $45.5 million, expected to close in the second quarter. Clipper Realty successfully refinanced a construction loan at the Dean Street property for $160 million, providing $18.2 million for interest and operating expenses. The company remains optimistic about continued strong performance throughout 2025.

Clipper Realty Financial Statement Overview

Summary
Clipper Realty faces financial challenges with negative net income and high leverage, but shows positive revenue and cash flow trends. The negative equity position remains a significant concern, requiring a focus on improving profitability and reducing debt.
Income Statement
55
Neutral
Clipper Realty's revenue demonstrates a positive growth trend, with a notable increase in the TTM period compared to the previous year. However, the net income remains negative, impacting overall profitability. The gross profit margin is strong, indicating efficient cost management, yet the net profit margin is negative due to persistent losses. The EBITDA margin suggests solid operational efficiency, although EBIT margin has declined in the TTM period.
Balance Sheet
40
Negative
The company's balance sheet shows high leverage, with a concerning negative stockholders' equity indicating financial instability. The debt-to-equity ratio is not calculable due to negative equity, underscoring the risk associated with high debt levels. The equity ratio is negative, reflecting the company's reliance on debt financing.
Cash Flow
60
Neutral
Operating cash flow has shown consistent growth, indicating improved cash generation capabilities. The positive free cash flow in the TTM period is a positive sign, although the free cash flow growth rate is modest. The operating cash flow to net income ratio is strong, highlighting the company's ability to generate cash relative to its net income losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue152.41M148.78M138.21M129.75M122.73M122.85M
Gross Profit86.50M84.84M75.64M67.88M63.28M64.66M
EBITDA38.02M70.42M58.24M54.62M52.71M54.93M
Net Income-14.84M-2.50M-5.90M-5.51M-49.20M-46.01M
Balance Sheet
Total Assets1.26B1.29B1.25B1.23B1.23B1.21B
Cash, Cash Equivalents and Short-Term Investments21.29M19.90M22.16M18.15M34.52M72.06M
Total Debt1.27B1.27B1.21B1.16B1.13B1.08B
Total Liabilities1.31B1.30B1.24B1.19B1.16B1.10B
Stockholders Equity-20.08M-5.41M2.74M14.09M26.51M39.46M
Cash Flow
Free Cash Flow32.29M31.86M26.18M-25.31M-24.71M-15.82M
Operating Cash Flow32.29M31.86M26.18M20.14M10.82M15.99M
Investing Cash Flow-56.21M-68.78M-41.36M-51.48M-77.94M-31.71M
Financing Cash Flow24.32M38.75M20.73M9.78M30.31M47.82M

Clipper Realty Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.68
Price Trends
50DMA
3.83
Negative
100DMA
3.88
Negative
200DMA
4.38
Negative
Market Momentum
MACD
-0.06
Positive
RSI
45.83
Neutral
STOCH
15.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPR, the sentiment is Negative. The current price of 3.68 is below the 20-day moving average (MA) of 3.78, below the 50-day MA of 3.83, and below the 200-day MA of 4.38, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLPR.

Clipper Realty Risk Analysis

Clipper Realty disclosed 60 risk factors in its most recent earnings report. Clipper Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Clipper Realty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CSCSR
66
Neutral
$1.06B-1.55%5.14%-1.81%-33.33%
64
Neutral
$6.92B18.66-1.93%6.85%4.65%-25.39%
BRBRT
62
Neutral
$300.55M-4.28%6.31%2.39%-407.57%
56
Neutral
$57.80M46.22%10.61%8.64%-213.95%
55
Neutral
$857.08M866.19-7.19%6.04%-7.44%-143.64%
52
Neutral
$148.58M10.847.07%11.01%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLPR
Clipper Realty
3.68
0.33
9.85%
CSR
Centerspace
60.30
-6.45
-9.66%
BRT
BRT Apartments
15.67
-0.84
-5.09%
NXRT
NexPoint Residential
34.09
-3.56
-9.46%
SUNS
Sunrise Realty Trust Inc
10.91
-1.93
-15.03%

Clipper Realty Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Clipper Realty Stockholders Approve Key Proposals at Meeting
Positive
Jun 20, 2025

On June 18, 2025, Clipper Realty Inc. held its 2024 Annual Meeting of Stockholders where all proposals were approved. These included the election of seven directors, the ratification of PKF O’Connor Davies, LLP as the independent accounting firm for 2025, and the approval of the 2025 Omnibus Incentive Plan and Non-Employee Director Plan. The approval of these proposals signifies a strong endorsement from the stockholders, potentially impacting the company’s governance and strategic direction positively.

Business Operations and StrategyFinancial Disclosures
Clipper Realty Completes Mortgage Repayment to Flagstar Bank
Positive
Jun 5, 2025

On May 30, 2025, Clipper Realty Inc.’s subsidiary, 10 West 65 Owner LLC, completed the repayment of a $31.2 million mortgage note to Flagstar Bank, associated with the acquisition of a property in New York. The repayment included $0.8 million in accrued interest, and the bank released $1.1 million in escrow and reserves to the company, with no prepayment penalties incurred. This transaction reflects Clipper Realty’s strategic financial management and may impact its financial positioning by reducing liabilities and potentially enhancing cash flow.

Legal Proceedings
Court Denies Receiver Appointment in Clipper Realty Case
Neutral
May 14, 2025

On March 20, 2025, Wells Fargo Bank filed a lawsuit against Clipper Realty Inc. and its subsidiaries regarding the 141 Livingston Street property, demanding a receiver be appointed. However, on May 13, 2025, the New York Supreme Court denied the motion to appoint a receiver, citing the Plaintiff’s low likelihood of success, while also denying Clipper Realty’s motion to dismiss the lawsuit. Clipper Realty plans to continue defending against the lawsuit, asserting the claims are without merit.

Private Placements and FinancingBusiness Operations and Strategy
Clipper Realty Secures $160M Financing for Dean Street
Positive
May 8, 2025

On May 2, 2025, Clipper Realty‘s subsidiary, Dean Owner LLC, entered into new loan agreements with MF1 Capital, securing $160 million in financing for its Dean Street Property. These agreements replace prior loans, with no termination fees incurred, and include provisions for potential additional borrowing and interest rate caps, impacting the company’s financial strategy and operational flexibility.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025