Clipper Realty Inc (CLPR) 2024 Q4 法說會逐字稿

Good day and welcome to the Clipper Realty Quarterly earnings call. (Operator Instructions). It is now my pleasure to turn the floor over to your host, Lawrence Sava, corporate controller. Sir, the floor is yours.

大家好，歡迎參加 Clipper Realty 季度財報電話會議。（操作員指令）。現在我很高興將發言權交給主持人、公司財務長 Lawrence Sava。先生，現在請您發言。

Thanks, John. Good afternoon and thank you for joining us for the fourth quarter 2024 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 JJ Bistricer, Chief Operating Officer.

謝謝，約翰。下午好，感謝您參加 2024 年第四季 Clipper Realty Inc. 收益電話會議。與我一起參加今天電話會議的還有董事會聯席主席兼執行長 David Bistricer 和營運長 JJ Bistricer。

Please be aware that 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 uncertainty, including those disclosed in the company's 2024 annual report on Form 10-K, which is accessible at www.sec.gov and on our website. As a reminder, the forward-looking statements speak only as to the date of this call, February 18, 20205, and the company undertakes no duty to update them.

請注意，電話會議中所做的非歷史性陳述可能被視為前瞻性陳述，實際結果可能與此類前瞻性陳述所示的結果有重大差異。這些聲明受多種風險和不確定性的影響，包括公司 2024 年 10-K 表年度報告中揭露的風險和不確定性，該報告可在 www.sec.gov 和我們的網站上查閱。提醒一下，前瞻性陳述僅代表本次電話會議的日期，即 2020 年 2 月 18 日，本公司不承擔更新這些陳述的義務。

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, amortization, or adjusted EBITDA, and net operating income, or NOI. Please see our press release, supplemental Financial information, and Form 10-K posted last Friday for a reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures.

在本次電話會議中，管理階層可能會參考某些非 GAAP 財務指標，包括調整後的營運資金或 AFFO、調整後的息稅折舊攤銷前利潤或調整後的 EBITDA，以及淨營業收入或 NOI。請參閱我們上週五發布的新聞稿、補充財務資訊和 10-K 表格，以了解這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對照表。

With that, I will now turn the call over to our co-Chairman and CEO David Bistricer.

說完這些，我現在將電話轉給我們的聯合董事長兼執行長 David Bistricer。

Thank you, Lawrence. Good afternoon and welcome to the fourth quarter of 2024 earnings call for Clipper Realty. I will provide an update to our business performance and some developments after which JJ will discuss property level activity, including leasing performance, and Lawrence will speak to our quarterly financial performance. We will then take your questions.

謝謝你，勞倫斯。下午好，歡迎參加 Clipper Realty 2024 年第四季財報電話會議。我將介紹我們的業務績效和一些發展情況，隨後 JJ 將討論房地產層面的活動，包括租賃績效，Lawrence 將介紹我們的季度財務績效。然後我們將回答您的問題。

I am pleased to report that we are reporting record operating results once again, including record revenue, net operating income, and AFFO based on our excellent residential activity. Rental demand continues to be strong at all our properties. Overall rents are generally at all-time highs and continue to increase, and we are nearly fully leased. In the fourth quarter, new leases exceeded prior rent by over 7%. In crossing the entire portfolio led by the Tribeca House in Manhattan and Clover House in Brooklyn, where new leases were $90 and $94 dollars per foot. Overall rental levels were $83 and $86 dollars per foot.

我很高興地報告，我們再次報告創紀錄的經營業績，包括基於我們出色的住宅活動的創紀錄收入、淨營業收入和 AFFO。我們所有房產的租賃需求持續強勁。總體而言，租金處於歷史最高水平並持續上漲，我們的店鋪幾乎已全部出租。第四季度，新租約比之前的租金高出 7% 以上。在整個投資組合中，以曼哈頓的翠貝卡大樓和布魯克林的 Clover House 為首，其新租約分別為每平方英尺 90 美元和 94 美元。整體租金水準分別為每平方英尺 83 美元和 86 美元。

Results at our stabilized property, Flatbush Gardens property are also strong and improving. New leases in Q4 with $34 per foot, exceeding the prior leases by almost 13%, and average rents across the entire portfolio with $30 per foot.

我們穩定的資產 Flatbush Gardens 的表現同樣強勁且不斷改善。第四季的新租約價格為每平方英尺 34 美元，比之前的租約高出近 13%，整個投資組合的平均租金為每平方英尺 30 美元。

We are aggressively fulfilling our commitments by property improvements, tenant assistance, higher wages, supported by full abatement of real estate taxes, and enhanced rental recoveries for assisted tenants under the 40 year abatement under the Article 11 of the Private Housing Finance Law with New York City's Housing and Preservation Department that began in July 2023.

我們正在積極履行我們的承諾，包括改善房產、援助租戶、提高工資、全面減免房地產稅，以及根據 2023 年 7 月開始的《私人住房金融法》第 11 條規定的 40 年減稅政策，為受援助租戶提高租金回收率。

Operationally. We are very pleased with our ground up development projects, Pacific House at 1010 Pacific Street after a year of full operation is fully stabilized and contributing to cash flow. It is now 100% lease and yielding the projects 7% cap rate, at the nearby 953 Dean Street ground of development, construction is proceeding, and we're nearing completion. We will begin leasing in the coming months in line with the 2025 leasing season.

操作上。我們對我們的從頭開始開發項目非常滿意，位於太平洋街 1010 號的太平洋大廈經過一年的全面運營已經完全穩定並為現金流做出了貢獻。目前，該項目的租賃率為 100%，資本化率為 7%，位於附近 953 Dean Street 開發地段的建設正在進行中，即將完工。我們將在未來幾個月內根據 2025 年租賃季節開始租賃。

We bought the land in 2021 to 22 on a I wish to build the nine-story fully monetized residential building with 160,000 residential rentable square feet, 240 units, 17th century market, 30% affordable, 57 parking spaces, and 19,000 commercial rental feet.

我們在 2021 年至 2022 年購買了這塊土地，我希望建造一棟九層完全貨幣化的住宅大樓，其中住宅可出租面積為 160,000 平方英尺，240 個單位，17 世紀市場，30% 可負擔得起，57 個停車位，以及 19,000 平方英尺的商業租賃面積。

At our 250 Livingston property, whereas previously disclosed New York City has notified us their intention to vacate in August of '25. We're seeking solutions and pursuing opportunities supported by cash flows from our other properties. We will keep you informed of our progress regularly.

在我們位於利文斯頓 250 號的房產，而先前披露的紐約市已通知我們他們打算在 25 年 8 月撤離。我們正在尋求解決方案並利用來自其​​他資產的現金流來獲取機會。我們將定期向您通報我們的進度。

At the other New York City property in 1,231 Livingston Street, we are finalizing a 5-year extension to our current lease that expires December 2025.

在紐約利文斯頓街 1,231 號的另一處房產，我們正在敲定將現有租約延長 5 年，該租約將於 2025 年 12 月到期。

As to the continued high interest rate environment, we believe the higher rates make for higher tenant demand for our rental product. We are buttressed by the relatively long duration of our debt and our operating properties. Our operating debt is 91% fixed and average rate of 3.87%. Average duration is 4.3 years, non-recalls subject to limited standard carveouts. It is not cross collateralized. We finance our portfolio on an asset by asset basis, regarding our fourth quarter results, we are reporting record quarterly revenue of $38 million, NOI of $22.5 million, AFFO $8.1 million, As a result of the strong leasing and cost reduction I mentioned. These results represent the improvements over the fourth quarter of last year, as JJ and Lawrence will further detail.

對於持續的高利率環境，我們認為更高的利率將會增加租戶對我們租賃產品的需求。我們的債務和經營資產的相對較長的期限為我們提供了支持。我們的經營債務91％固定，平均利率為3.87％。平均期限為 4.3 年，非召回受到有限的標準豁免。它不是交叉抵押的。我們根據資產狀況為我們的投資組合提供融資，關於我們第四季度的業績，我們報告的季度收入為創紀錄的 3800 萬美元，淨營運收入為 2250 萬美元，年度流動資金為 810 萬美元，這得益於我提到的強勁租賃和成本削減。這些結果比去年第四季有所改善，JJ 和 Lawrence 將進一步詳細說明。

I will now turn the call over to JJ who will provide an update on operations.

現在我將電話轉給 JJ，他將提供有關營運的最新情況。

I am pleased to report that our residential leasing at all our properties is very strong and continues to improve. At the end of the fourth quarter, our residential properties were 99% leased and rents were at record levels and still recording increases over previous levels.

我很高興地報告，我們所有物業的住宅租賃情況都非常強勁並且持續改善。截至第四季末，我們的住宅物業出租率為 99%，租金達到創紀錄水平，且仍比之前的水平有所增長。

Overall, new and renewal rental rates in the fourth quarter exceeded previous rents by over 7%. And 4.9% as our residential properties. We expect leasing to remain strong in the foreseeable future as the demand remains high and the overall rental housing supply remains constrained as widely publicized. As of the end of December, Tribeca has had leased occupancy of over 99%, rent per square foot over $82 and new rents at $90 per square foot.

整體而言，第四季的新租和續租租金比之前的租金高出 7% 以上。4.9%為住宅物業。我們預計，由於需求仍然很高，而且正如廣泛宣傳的那樣，整體租賃房屋供應仍然受到限制，因此在可預見的未來，租賃市場仍將保持強勁。截至 12 月底，翠貝卡的租賃入住率已超過 99%，每平方英尺租金超過 82 美元，新租金為每平方英尺 90 美元。

The Clover House property had leased occupancy of 98% average rents of $86 per foot, and new leases of $94 per foot.

Clover House 物業的租賃入住率為 98%，平均租金為每平方英尺 86 美元，新租賃租金為每平方英尺 94 美元。

Our recently completed Pacific House property consisting of a blend of free market and rent stabilized tenants had leased occupancy of 98%, free market rents of $70 per square foot on new leases. This property is now fully stabilized with operating cash flows, achieving the projected 7% cap rate in the original underwriting.

我們最近竣工的太平洋大廈物業由自由市場和租金穩定的租戶組成，租賃入住率為 98%，新租約的自由市場租金為每平方英尺 70 美元。該資產目前已完全穩定下來，營運現金流量已達到最初承保預計的 7% 資本化率。

Our other residential properties at 10 West 65th Street, Aspen, and 250 Livingston Street continue to perform at record levels with average lease occupancy above 98% and new rent and renewals 4% higher compared to previous leases.

我們位於西 65 街 10 號、阿斯彭和利文斯頓街 250 號的其他住宅物業繼續保持創紀錄的表現，平均租賃入住率超過 98%，新租金和續約租金比之前的租約高出 4%。

Lastly, at the large Flappers Gardens property, we continue to be pleased with our performance operating under the new Article 11 agreement made with the Housing Preservation Department of New York City on June 29, last year. Using the full abatement of real estate taxes beginning last July, we are completing the capital projects we committed, aggressively dealing with maintenance issues and placing formerly homeless residents, we have begun to meaningfully obtain the enhanced reimbursement on the Section 610 of the Private Housing Finance Law for tenants receiving assistance as we fill vacancies with formerly homeless residents and renew leases with assisted tenants.

最後，在大型 Flappers Gardens 房地產，我們繼續對我們的表現感到滿意，因為我們遵守了去年 6 月 29 日與紐約市住房保護局達成的新的第 11 條協議。利用去年七月開始的全額房地產稅減免，我們正在完成承諾的資本項目，積極處理維護問題，安置以前無家可歸的居民，我們已經開始有意義地獲得《私人住房金融法》第 610 條對接受援助的租戶的增加補償，因為我們用以前無家可歸的居民填補了租戶，並與得到援助的租戶續簽了租戶。

These benefits have amounted to $1.1 million in the current period and nearly $2.3 million so far this year and should steadily increase over the next couple of years and facilitate profitable improvements to the property.

這些收益在本期已達 110 萬美元，今年迄今已達近 230 萬美元，並將在未來幾年穩步增長，並促進該物業的盈利性改善。

We're also getting increases for non-assisted tenants, where increases have been permitted under the rent guidelines board for the last couple of years. As a result, together with the section 610 benefits for assisted tenants, overall average rent for the property have risen to $30 per square foot at the end of the quarter versus $26.69 at the end of the fourth quarter last year, and new leases in the fourth quarter were worth $35 per square foot, exceeding the prior leases by 13%.

我們也為未受援助的租戶增加了租金，過去幾年來，租金指導委員會一直允許增加租金。因此，加上第 610 節為受助租戶提供的福利，該物業的整體平均租金在本季度末已上漲至每平方英尺 30 美元，而去年第四季度末為每平方英尺 26.69 美元，第四季度的新租約價值為每平方英尺 35 美元，比之前的租約高出 13%。

Rent collection across our portfolio remains strong. The overall collection rate in the fourth quarter on all residential properties was 97%. Collections at Flatbush Gardens, which had been at historically high 96% levels for the first half of 2024 without the benefit of the ERAP payments as in prior years have eased to 88% and 92% in the last two quarters as we work with New York City on collection procedures for assisted tenants.

我們整個投資組合的租金收入依然保持強勁。第四季所有住宅物業的整體收款率為 97%。在沒有像前幾年那樣享受 ERAP 付款的情況下，Flatbush Gardens 的收款率在 2024 年上半年達到了歷史最高的 96%，但隨著我們與紐約市合作為受助租戶制定收款程序，該水平在過去兩個季度已降至 88% 和 92%。

Additionally, we are responsibly and steadily working through the court system to minimize arrears. Looking ahead, we remain focused on optimizing occupancy, pricing, and expenses across the business, expeditiously completing our development projects, and fully implementing the Article 11 transaction to the best to best position ourselves for growth. I will now turn the call over to Lawrence, who will discuss our financial results.

此外，我們正在負責任地、穩定地透過司法系統努力減少欠款。展望未來，我們將繼續專注於優化整個業務的入住率、定價和費用，迅速完成我們的開發項目，並全面實施第 11 條交易，以最好地實現成長。現在我將電話轉給勞倫斯，他將討論我們的財務結果。

Thank you, JJ. For the fourth quarter, we achieved record results in three measures important to us. Revenues increased to $38 million from $34.9 million last year, an increase of $3.1 million or 9.1%. NOI increased to $22.5 million from $20 million last year, an increase of $2.5 million or 12.5%. And AFO increased to $8.1 million from $6.3 million, an increase of $1.8 million or 29%.

謝謝你，JJ。第四季度，我們在三項對我們重要的指標上取得了創紀錄的成績。收入從去年的 3,490 萬美元增至 3,800 萬美元，增加 310 萬美元，增幅 9.1%。NOI 從去年的 2,000 萬美元增加到 2,250 萬美元，增加了 250 萬美元，增幅為 12.5%。AFO 從 630 萬美元增至 810 萬美元，增加了 180 萬美元，增幅為 29%。

For the fourth quarter, residential revenue increased to $28.2 million by $2.9 million. This increase was due to strong leasing for all properties as previously discussed. Occupancy and rental rates were at all-time highs in the quarter. We further benefited in the quarter from $1.1 million of Section 610 rents, which has now been beginning to contribute and which we expect to increase steadily over the next few years. The revenue was partially offset by increased bad debt resulting from lower collection rate at Flatbush Gardens that JJ mentioned earlier. Commercial revenue was flat in the quarter compared to last year.

第四季度，住宅收入增加 290 萬美元至 2,820 萬美元。正如之前所討論的，這一增長是由於所有房產的租賃強勁。本季的入住率和租金均創下歷史新高。本季度，我們也受惠於第 610 條租金的 110 萬美元，這筆租金現已開始產生貢獻，我們預計未來幾年將穩定成長。這筆收入被 JJ 之前提到的 Flatbush Gardens 收款率較低導致的壞帳增加部分抵銷。本季商業收入與去年同期持平。

On the expense side, key year over year changes in the quarter were as follows. Property operating expenses increased by $257,000 year over year, substantially all of it due to Flatbush gardens due to its prevailing wage requirements under the Article 11 agreement. We also experienced slightly higher utility costs and legal costs related to collection activities partially offset by lower repairs and maintenance costs.

在費用方面，本季年主要變動如下。物業營運費用比去年同期增加了 257,000 美元，這幾乎全部是由於 Flatbush 花園根據第 11 條協議規定的現行工資要求而增加的。我們的公用事業成本和與收款活動相關的法律成本也略有增加，但維修和維護成本的降低部分抵消了增加。

Real estate taxes and insurance increased by $293,000 in the fourth quarter, year on year due to routine increases in real estate taxes at properties other than Flatbush Gardens, which had its taxes fully evaded in July 2023. Insurance costs for the new fiscal year were flat.

第四季度，房地產稅和保險同比增加了 293,000 美元，原因是除 Flatbush Gardens 以外的其他房產的房地產稅例行增加，而 Flatbush Gardens 已於 2023 年 7 月完全逃稅。新財政年度的保險成本持平。

Interest expense decreased by $80,000 in the fourth quarter, year on year due to slightly lower rates on our limited amounts of variable rate debt.

由於我們有限數額的浮動利率債務的利率略有下降，第四季度的利息支出比去年同期減少了 80,000 美元。

With regard to our balance sheet, we have $19.9 million of unrestricted cash and $18.2 million of restricted cash. In the fourth quarter, we had no new debt activity other than draws under the Dean Street property construction loan we closed in the fourth quarter of 2023.

就我們的資產負債表而言，我們擁有 1,990 萬美元的非限制現金和 1,820 萬美元的限制現金。在第四季度，除了 2023 年第四季結清的 Dean Street 房地產建設貸款下的提款外，我們沒有新的債務活動。

Today we are announcing a dividend of $0.095 per share for the fourth quarter, the same as last quarter. The dividend will be paid on April 3, 2025, to shareholders of record on March 19, 2025. Let me now turn the call back over to David for concluding remarks.

今天我們宣布第四季每股股息為 0.095 美元，與上一季相同。股利將於 2025 年 4 月 3 日支付給 2025 年 3 月 19 日登記在冊的股東。現在，讓我將電話轉回給戴維，請他做最後發言。

Thank you, Lawrence. We remain focused on efficiently operating our portfolio. We look for our current operating to continue into 2025. Looking forward to optimizing the Flash Gardens Article 11 transaction, the opening of 953 Dean Street development, finalizing the 141 lease. Resolving the 250 vacancy and capitalizing on other possibilities that may present themselves. I would now like to open the line for questions.

謝謝你，勞倫斯。我們仍然專注於高效運作我們的投資組合。我們希望目前的營運能夠持續到 2025 年。期待優化 Flash Gardens 第 11 條交易、953 Dean Street 開發案的開放以及 141 租約的最終確定。解決 250 個空缺問題並利用可能出現的其他可能性。現在我想開始回答大家的提問。

Thank you. (Operator Instructions).

謝謝。（操作員指令）。

Okay, we currently have no questions in queue. I'd like to turn the floor back to management for closing remarks.

好的，我們目前沒有待處理的問題。我想將發言權交還給管理階層，請他們作最後發言。

Thank you for joining us today. We look forward to speaking with you again soon. Good night.

感謝您今天加入我們。我們期待很快再次與您交談。晚安。

Thank you. This concludes the question-and-answer session.

謝謝。問答環節到此結束。

Thank you, ladies and gentlemen. This does conclude the conference call. You may disconnect your phone lines at this time. Have a wonderful day. Thank you for your participation.

謝謝各位，女士們、先生們。電話會議到此結束。您現在可以斷開電話線。祝您有美好的一天。感謝您的參與。