Clipper Realty Inc.

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

Good afternoon, and thank you for joining us for the first quarter 2026 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, JJ Bichester, chief operating officer, and Larry Kreider, 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 2025 annual report on Form 10-K and and 2026 first quarter report on Form 10-Q just filed today, which is accessible at www.sdc.gov and on our website. As a reminder, the forward-looking statements speak only as of the date of this call, May 14th, 2026, and the company undertakes no duty to update them. During this call, management may refer to certain non-GAAP financial measures, including Adjusted Fund from Operations, or ASFO, 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, in Form 10-Q, posted today for a reconciliation of these non-GAAP financial measures with most directly comparable GAAP financial measures. With that, I will now turn the call over to our Corp Chairman and CEO, David Isserster.

Thank you, Lawrence. Good afternoon and welcome to the first quarter of 2026. I will provide an update of our business performance and some new developments, after which JJ will discuss 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 that our residential properties continue to perform very well due to the continued high residential rental demand generating excellent cash flow. Overall rents are generally at all-time highs and continue to increase, and we are nearly fully leased. In the first quarter, new free market leases exceeded prior rents by over 7%, generally consistent with last quarter across the entire portfolio, as J. Chevy will detail. We are also in the third quarter of the initial lease-up at our Prospect House development, 953 Dean Street, We bought the property online in August, on time and on budget, having placed a bridge loan last quarter that would provide funds through stabilization. We are presently fully leased with free market rents of about $78 per foot. This project was a ground-up development in Brooklyn, where we bought the land in 2021 and built a nine-story fully amortized residential building with $160,000 residential rentable square feet, 240 units, 70% of which are free market, and 30% are affordable. 31 parking spaces and 19,000 commercial rental square feet. At 250 Livington Street, after New York City vacated mid-August of 2025, and as more fully described in the thank you press release, we notify the lender that we do not intend to support the property's ongoing operations, and debt service had ceased, making payments of interest in real estate taxes. Additionally, in May 26, he began receiving reimbursement of expenses paid by us from the lender. We are also discussing a consent and cooperation agreement with the lender to sell the property loan, although there can be no insurance and agreement will be finalized. I will now call on JJ to take over this call.