Clipper Realty Inc.

Good afternoon, ladies and gentlemen, and welcome to the Clipper Realty First Quarter 2021 Earnings Call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Michael Frenz, Chief Financial Officer. Sir, the floor is yours.

Good afternoon, and thank you for joining us for the First Quarter 2021 Clipper Realty, Inc. Earnings Conference Call. Participating with me on today's call are David Bistresser, Co-Chairman of the Board and Chief Executive Officer, and JJ Bistresser, Chief Operating Officer. 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 uncertainties, including those disclosed in the company's 2020 Annual Report on Form 10-K, which is accessible at www.sec.gov and our website. As a reminder, the forward-looking statements speak only as of the date of this call, May 10, 2021, and the company undertakes no duty to update them. 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, and amortization, or adjusted EBITDA, and net operating income, or NOI. Please see our press release, supplemental financial information, and Form 10-Q posted today for a reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures. With that, I will now turn the call over to our co-chairman and CEO, David Visterser.

Thank you, Michael. Good afternoon, and welcome to the first quarter of 2021 earnings call for Clipper Realty. I will provide an update on our business performance, including recent highlights and milestones, as well as how our company continues to respond to the COVID-19 pandemic. Mr. JJ will discuss property-level activity, including leasing performance. Finally, Michael will speak about our quarterly financial performance. We will then take your questions. I will begin by once again extending our thanks to the entire Clipper Realty team for their ongoing hard work, perseverance during these unprecedented times. We remain grateful to their efforts over the past 14 months under very, very challenging circumstances, are proud of their continued dedication to the residents, communities, and our business. Properties have remained open and operational throughout the pandemic. The increase in New York City residential leasing activity That took hold in the fourth quarter of last year continues today as both the city and the economy in general further strengthen from the depths of the pandemic. We expect rental demand to remain elevated and pricing to improve as New York City continues to reopen and vaccinations proliferate. At the end of the first quarter, our properties were 95% leased and rents at our Tribeca house in the first week of May have increased over 20%. over a similar period in April. We continue to take the necessary steps to keep our tenants safe in compliance with state and local orders and are providing typical services to our residents. We remain confident in the resiliency of New York City. We expect our properties in the city to stay desirable to a broad range of tenants and operations to continue to return to a more normal state over time. Our balance sheet continues to be well positioned from a liquidity perspective to manage through the pandemic. We have approximately $106 million of cash consisting of $88 million of unrestricted cash and $18 million of restricted cash. We finance our portfolio on an asset-by-asset basis. Our debt is non-recourse. subject to limited standard coverage and is non-cross-collateralized. We have no debt maturities on any of our operating properties until 2027. Turning to some more recent developments, we continue to proceed with the redevelopment of 1010 Pacific Street acquisition located in Prospect Heights, Brooklyn, about one mile from Atlantic Terminal Barclays Center Hub. Construction is well underway. As previously discussed, we estimate that the project will cost $85 million total take two years to complete and develop to a six and a half stabilized capitalization rate. JJ will provide further updates on the project shortly. And that project today has a commitment from a major insurance company to finance the construction law. In our office portfolio, the city rent at 141 Livingston Street increased two and a half, 25% at the end of December 2020, which will add $2.1 million in profit annual NOI. Together with the expected additional $5 million of annual NOI resulting from New York City's new lease at 250 Livingston Street property that commenced in August of 2020, these rent rolls are expected to add an incremental $7.1 million of annual NOI to our portfolio representing and a proximate 10% increase in our normalized run rate. I would like to comment on the quarterly results. We are reporting quarterly revenue of $30.7 million, NOI of $14.8 million, and AFFO of $3.1 million. Michael will depart as Chief Financial Officer to pursue another opportunity. Larry Kreider, our former CFO, since the formation of the company in 2015, will return as CFO. On behalf of the entire company, we thank Michael for his many contributions to Clipper Realty. I am excited to welcome back Larry as our CFO. Larry initially joined the business in 2014, led the company, ruled 144 area offering in August of 2015, initial public offering in February of 2017. His intimate knowledge of operations Management expertise and extensive financial experience will help drive our strategic vision for the future. Michael and I will work with our executive management, finance, and accounting teams to ensure a smooth transition. I will now turn the call over to JJ, who will provide an update on operations.