Clipper Realty Inc.

Good day, ladies and gentlemen, and welcome to the Clipper Realty fourth quarter earnings call. At this time, all participants are in a listen-only mode, and the floor will be open for your questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Lawrence Kreider. Sir, the floor is yours.

Thank you. Good afternoon, and thank you for joining us for the fourth quarter 2001 Clipper Realty, Inc. earnings conference call. Participating with me on today's call are David Bisterster, co-chairman of the board and chief executive officer, and JJ Bisterster, 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 2021 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, March 15, 2022, 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 NOR. We see a press release, supplemental financial information, and Form 10-K posted today for 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 Visser.

Thank you, Larry. Good afternoon, ladies and gentlemen, and welcome to the fourth 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 our company's progress. 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 again by extending our thanks to the entire Clipper team for the ongoing hard work, perseverance as we progress out of the pandemic and onto 2022. We remain grateful for the continuing efforts and are proud of the continued dedication to our residents, our community, and our business. We continue to see positive operational trends As we look forward, the residential leasing activity continues to improve, enhanced as both the city and the economy in general further strengthen in New York City. We expect rental demand to remain strong and pricing to improve now that New York City has reopened. People seek to relocate back to the city and employees increasingly return to their offices. At the end of the fourth quarter, our properties were 95% leased, New leases at our properties are reaching or exceeding pre-pandemic levels, including Tribeca House property, where new leases rates in October exceeded $80 per foot, 10% better than pre-pandemic rates. Our balance sheet continues to be well positioned from a liquidity perspective. We have approximately $53 million of cash, consisting of $35 million of unrestricted cash. We finance our portfolio on an asset-by-asset basis. Our debt is non-recourse, subject to limited standard carve-outs, and is not cross-collateralized. We have no debt maturities on any of the operating properties until 2027. Turning to some recent developments. The essentially ground-up developments of 1010 Pacific Acquisition is moving along very well and are targeting substantial completion in the fourth quarter. The property is located in Prospect Heights, Brooklyn, about a mile from the Atlantic Terminal Barclays Center. As previously discussed, we estimated the project to cost $85 million and develop to a 6.5% stabilized cap rate. More than 95% of our construction contracts are signed, and we are drawing steadily on the $52.5 million construction loan facility that will provide us with financing through completion. JJ will provide further update on the project shortly. At the end of the year, we purchased 953 Dean Street in Brooklyn and intend to develop from ground up. When completed, the purchase of the land will cost approximately $48 million and there's an acquisition financing of $40 million. We expect to build a nine-story, fully amenitized residential building, 160,000 residential rentable square feet, with 240 units, 70% for free market and 30% affordable, which will provide us with a 30-year 421 tax abatement. 8,500 square feet of commercial rental square feet. Our office portfolio at 141 and 250 Livingston are operating as expected, following new lease entered at the end of 2020 and August 2020. Together, these renewed leases have added $7.1 million of net operating income annually compared to previous lease rates, an increase of over 10%. With regard to our fourth quarter results, we are reporting quarterly revenue of $30.8 million annually. net operating income of $16.4 million, and AFFO of $4.4 million. All these results represent improvements over the third quarter, as Larry will further detail. I will now turn the call over to CJ, who will provide an update on operations.