Clipper Realty Inc.

Clipper Realty Q1 Earnings Call. At this time, all participants have been placed on the 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, Lawrence Saba. Lawrence, the floor is yours.

Good afternoon, and thank you for joining us for the first quarter 2025 Clipper Realty Inc. Earnings Conference Call. Participating with me on today's call are David Bissiter, Co-Chairman of the Board and Chief Executive Officer, JJ Bissiter, Chief Operating Officer, and Larry Kleider, Chief Financial 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 2024 annual report on Form 10-K and the first quarter 2025 quarterly report on Form 10-Q, 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, May 12, 2025, 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 ASFO, Adjusted Earnings Before Interest Accident Depreciation Amortization, or Adjusted EBITDA, and Net Operating Income, or AOI. Please see our press release, supplemental financial information, and Form 10-K posted last Friday for our reconciliation of those non-GAAP financial measures, posted earlier today for our reconciliation of those non-GAAP financial measures with the most directly comparable GAAP measures. With that, I will now turn the call over to our co-chairman and CEO, David Bissinger.

Thank you, Lauren. Good afternoon, and welcome to the first quarter of 2025 running school for Clifford Ritchie. and we'll provide an update on our business performance and some new developments, after which they deal with the self-property level activity, including leasing performance, and Larry will speak to our quarterly financial performance. We will then take your questions. I am pleased to report we are reporting excellent operating results once again, including record revenue and record residential rents. And seasonally adjusted, we have near record net operating income and AFFO in the first quarter, which always has lower income levels as the high winter heating costs. The main driver was high rental demand. Overall rents are generally at all-time highs and continue to increase, and we are nearly fully leased. In the first quarter, new leases exceeded prior rent by over 15% across the entire portfolio, as JJ will enumerate in detail. Construction on 953 Dean Street A ground-up development in Brooklyn is substantially complete on time and on budget. Heating will commence June 1st in time for the summer season. The land was purchased in 2021 and 22 to build a nine-story fully amenitized building, 160,000 residential rentable square feet, 240 units, 70% free market, and 30% affordable, 57 parking spaces, and 19,000 commercial rental square feet. Last week, the company refinanced the construction loan at this property with a new loan of $160 million on fully funded. The new loan will provide $18.2 million in excess proceeds to be used for interest, operating expenses, and working capital. Our other ground-up development project, Pacific House at 1010 Pacific Street in Brooklyn, is stabilized, contributing to cash flow after a year of full operations. We have also entered into the definitive a contract to sell 10 West 65th Street in Manhattan for $45.5 million, which we expect will generate approximately $12 million after payment of debt and costs. The expected transaction forecloses in the second quarter. We have sought to sell the property because of our 2017 purchase acquisition plan that recommended units to free market will be restricted by the 2019 Housing Stability and Protection Act. At 141 Livingston Street, Leased to the city, we have received a five-year renewal, which the company is processing. Regarding our first quarter results, we are reporting record quarterly revenue of $39.4 million, a 10.2% increase over last year, excellent NOI of $21.8 million, an 8% increase, an AFSL of $8 million, a 36% increase as a result of strong leasing I just mentioned. These results represents improvements over the first quarter of last year, and JJ and I are pleased to be here. And now it's time to call over to JJ, who will provide an update on operations. Thank you.