Clipper Realty Inc.

Good day, ladies and gentlemen, and welcome to the Clipper Realty Q2 earnings conference call. At this time, all participants are in a listen-only mode, and the floor will be open for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Lawrence Saba, Corporate Controller. Lawrence, the floor is yours.

Good afternoon, and thank you for joining us for the second quarter, 2026. Clipper Realty Inc. Earnings Conference Call. Participating with me on today's call are David Bistricer, Co-Chairman of the Board and Chief Executive 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. Thank you for joining us. The forward-looking statements speak only as of the date of this call, August 6, 2026, 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 NOI. Please see our press release, supplemental financial information, and form 10-Q 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 Bistricer.

Thank you, Lawrence. Good afternoon and welcome to the second quarter of 2026 in the School for Clipper Realty. I will provide an update on our business performance, 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 continued high residential rental demand, generating excellent cash flow and demonstrating the professionalism of our leasing and management teams. Overall rents are generally at all-time highs and continue to increase, and we all nearly fully leased. The second quarter new free market leases exceeded prior rents by over 13% across the entire portfolio. We're in the final quarter of initial lease up at Prospect House Development of 953 D Street. We bought the property online in August on time and on budget and placed the bridge loan last year and provided for new stabilization. We are presently fully leased with free market rents of $78 a foot. This project was the ground of development at Brooklyn where we bought the land in 2021-22, built a nine-story amenitized residential building for 162,000 residential square feet, 240 units, 70% free market, 30% affordable, 31 parking spaces, and 19,000 commercial square feet. At 250 Livingston Street, New York City vacated mid-August 2025, as more fully described in the thank you and press release. We have entered into a consent and cooperation agreement with the lender to sell the property as loan and they are actively marketing the loan. Also, the lender is currently funding all expenses. We await the results of the lender's auction. I will now turn the call over to Larry.