Hot Stock Analysis: Clipper Realty Inc. (NYSE: CLPR)

Jonathon Freitas

I am Jonathon Freitas and I focus on breaking news stories and ensuring we (“Seeking Review”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector.

I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Seeking Review specializing in quicker moving active shares with a short term view on investment opportunities and trends.

Address: 1604 Hall Valley Drive, Huntington, WV 25701, USA
Phone: (+1) 304-699-4002
Email: jonathon.freitas@seekingreview.com
Jonathon Freitas

NEW YORK, August 13, 2019 – Shares of Clipper Realty Inc. (NYSE: CLPR) gained 0.73% to $11.08. The stock traded total volume of 6.576K shares lower than the average volume of 36.31K shares.

Clipper Realty Inc. (CLPR) recorded net loss of $0.10M, or $0.01 per share for the first quarter of 2019, contrast to a net loss of $9.00M, or $0.21 per share, for the first quarter of 2018 or $2.00M, or $0.05 per share, excluding a non-recurring $7.00M loss on extinguishment of debt. The improvement was mainly attributable to the revenue increases discussed above, lower general and administrative expenses, lower interest expense from the refinancings of the Flatbush Gardens and Tribeca House properties in February 2018, and lower purchase accounting amortization associated with the 10 West 65th Street property acquisition. These improvements were partially offset by higher property taxes and higher interest expense (counting non-cash debt cost amortization) from the refinancing of the 250 Livingston Street property in December 2018.

Financial Results:

For the first quarter of 2019, revenues grew by $0.80M, or 2.9%, to $27.70M, contrast to $26.90M for the first quarter of 2018. The growth was mainly attributable to improvements in occupancy and rental rates at the Flatbush Gardens and Tribeca House properties, which had residential rental income increases of 8.3% and 6.8%, respectively, contrast to the first quarter of 2018. These increases were partially offset by a $0.30M decrease in residential rental income at the 10 West 65th Street property contrast to the first quarter of 2018 resulting from the repositioning of forty units formerly leased to the building’s prior owner. Commercial rental income grew by $0.10M, or 2.1%, to $7.30M (excluding a $0.50M non-recurring, non-cash write-off of a straight-line rent balance related to a tenant lease amendment at the Tribeca House property), contrast to $7.20M for the first quarter of 2018.

For the first quarter of 2019, AFFO was $5.30M, or $0.12 per share, contrast to $3.20M, or $0.07 per share, for the first quarter of 2018. The increase was mainly attributable to the revenue increases discussed above, lower general and administrative expenses, and lower interest expense from the February 2018 refinancings, partially offset by higher property taxes and higher interest expense from the December 2018 refinancing.

For the first quarter of 2019, net cash offered by operating activities was $12.00M, contrast to $10.80M for the first quarter of 2018 or $7.50M excluding collection of a non-recurring receivable regarding prior years at the 141 Livingston Street property. The increase was mainly attributable to improved operating results and continued strong collection of recurring receivables.

Balance Sheet:

At March 31, 2019, notes payable (excluding unamortized loan costs) was $924.90M, contrast to $925.60M at December 31, 2018; the decrease reflected planned principal amortization.

CLPR has the market capitalization of $200.99M and its EPS growth ratio for the past five years was -26.10%. The return on assets ratio of the Company was -0.10% while its return on investment ratio stands at 2.40%. Price to sales ratio was 1.80 while 70.20% of the stock was owned by institutional investors.

Jonathon Freitas

Jonathon Freitas

I am Jonathon Freitas and I focus on breaking news stories and ensuring we (“Seeking Review”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Seeking Review specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 1604 Hall Valley Drive, Huntington, WV 25701, USA Phone: (+1) 304-699-4002 Email: jonathon.freitas@seekingreview.com