Clipper Realty Inc.

Good day, and welcome to the Clipper Realty quarterly earnings call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Lawrence Sava, Corporate Controller. Sir, the floor is yours.

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 Bichester, Co-Chairman of the Board and Chief Executive Officer, and JJ Bichester, 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 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 of the date of this call, February 18, 2025, 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, 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. With that, I will now turn the call over to our co-chairman and CEO, David Bischuster.

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. I am pleased to report that we are reporting record operating results, once again, including records 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 rents by over 7% and crossed the entire portfolio, led by the Tribeca House in Manhattan and Clover House In Brooklyn, where new leases were $90 and $94 per foot, overall rent levels were $83 and $86 per foot. Results at our stabilized rental property, Flatbush Gardens, are also strong and improving. New leases in the fourth Q4 were $34 per foot, exceeding the prior leases by almost 13%, and average rents across the entire portfolio were $30 per foot. 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 Housing and Preservation Department that began July 2023. Operationally, we are very pleased with our new ground-up development projects, Pacific House, At 1010 Pacific Street, after a year of full operation, it's fully stabilized and contributing to cash flow. It is now 100% leased and yielding the project 7% cap rate. At the nearby 953 Dean Street, ground-up development construction is proceeding and we're nearing completion. We will begin leasing in the coming months in line with the 2025 leasing season. We bought the land 2021-22 on which to build the nine-story fully-amortized residential building with 160,000 rentables per square feet, 240 units, 70% free market, 30% affordable, 57 parking spaces, and 19,000 commercial rental fees. About 250 Livingston property. Whereas previously we disclosed New York City has notified us their intention to vacate in August of 25, we are seeking solutions and pursuing opportunities supported by cash flows from our other properties. We will keep you informed of our progress regularly. At the other New York City property in 1231 Livingston Street, we are finalizing a five-year extension to our current lease that expires December 2025. 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 at our operating properties. Our operating debt is 91% fixed at an average rate of 3.87%. Average duration is 4.3 years. Non-recourse subject to limited standard carve-outs is not gross 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 improvements over the fourth quarter last year, as JJ and Lawrence will further detail. Now it's time to call over to JJ, who will provide an update on operations.