Clipper Realty Inc.

Good afternoon, ladies and gentlemen, and welcome to the Clipper Realty 3Q21 earnings call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Larry Kreider. Sir, the floor is yours.

Thank you. Good afternoon, and thank you for joining us for the third quarter 2021 Clipper Realty Inc. earnings conference call. Participating with me in 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, November 9, 2021, and the company undertakes no duty to update them. During the 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 Bisterster.

Thank you, Larry. Good afternoon and welcome to the third quarter 2021 earnings call for Clipper Realty. I will provide an update on our business performance, including recent highlights and milestones, as well as our company's progress as we recover from COVID-19 pandemic. I will then turn the call over to JJ, who will discuss property level activity, including leasing performance. Finally, Larry will speak about our quarterly financial performance. We will then take your questions. I begin by once again extending our thanks to the entire Clipper Realty team for the ongoing hard work and perseverance as we progress out of the pandemic. We remain grateful for the continuing efforts, and we are proud of their continued dedication to our residents, our communities, and our business. Properties remained open and operational throughout the pandemic, and we see positive trends as we look forward. Residential leasing activity continues to improve as both the city and the economy in general further strengthen for the depths of the pandemic. We expect rental demand to remain elevated and pricing to improve as New York City continues to reopen. People seek to relocate back to the city and employees increasingly return to their offices. At the end of the third quarter, our properties were 94% leased and new leases at our properties are reaching or exceeding pre-pandemic levels, including at the Trebek House property where our new lease rates in October were approximately $76 per square foot, which is 9% better than pre-pandemic. Our balance sheet continues to be well-positioned from a liquidity perspective. We have approximately $88 million of cash, consisting of $59 million of unrestricted cash and $29 million of restricted cash. We finance our portfolio on an asset-by-asset basis. Our debt is non-recourse, subject to limited standards of carve-outs and non-recourse credit realizations. We have no debt maturities in any of our operating properties until 2027. Recent developments. We continue to proceed with the development of our 1010 Pacific Street acquisition located in Prospect Heights, Brooklyn, about one mile from the Atlantic Terminal and Barclays Center Hub. Construction is progressing on time and on budget. As previously discussed, we estimated the project to cost $85 million dollars. take two years to complete and develop at a 6.5% stabilized cap rate. 90% of our construction contracts are signed. We entered into a $52.5 million construction loan facility that will provide us with financing through completion. JJ will provide further update on the project shortly. As you can see in our results, our office portfolio has been recording the benefits this year of new leases until last year with New York City. The December 2020 lease at 141 Livingston property is adding $2.1 million to the property's annual NOI. And the November 2020 lease at 250 Livingston Street property is adding $5 million of annual NOI for a total of $7.1 million annually, representing an approximate 10% increase on our previous run rate. With regard to our third quarter results, we are reporting quarterly revenue of $30.6 million, NOI of $16.1 million, and AFFO of $4.1 million. All of these measures are in line with the second quarter, as Larry will further detail. I will now turn over the call to JJ, who will provide an update on operations.