Clipper Realty Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues reached $40.5 million for the quarter ended September 30, 2026, an increase from $37.7 million in the same period of 2025.
• Residential revenues were $34.0 million for the quarter, up from $29.8 million in 2025, driven by strong leasing and occupancy.
• Commercial revenues were $6.5 million for the quarter, down from $7.9 million in 2025, primarily due to the termination of the NYC lease at 250 Livingston Street.
• Income from operations was $9.9 million for the quarter, compared to $8.9 million in 2025.
• Net Operating Income (NOI) was $22.3 million for the quarter, compared to $20.8 million in 2025.
• Net loss was $5.9 million ($0.18 per share) for the quarter, compared to a net loss of $4.6 million ($0.14 per share) in 2025.
• Adjusted Funds From Operations (AFFO) was $4.1 million ($0.10 per share) for the quarter, down from $5.6 million ($0.13 per share) in 2025.
• Notes payable were $1,286.9 million as of September 30, 2026, compared to $1,286.2 million at December 31, 2025.
• Cash and cash equivalents were $30.6 million as of September 30, 2026, compared to $30.8 million at December 31, 2025.
• Restricted cash was $23.1 million as of September 30, 2026, compared to $27.3 million at December 31, 2025.
• Net cash provided by operating activities was $17.6 million for the nine months ended September 30, 2026, compared to $16.5 million for the same period in 2025.
• Net cash used in investing activities was $8.4 million for the nine months ended September 30, 2026, compared to net cash provided of $12.9 million in 2025.
• Net cash used in financing activities was $13.6 million for the nine months ended September 30, 2026, compared to $10.8 million in 2025.

Business Segments and Product Lines:

• New free market leases at residential properties exceeded previous rents by 9%, and renewals exceeded previous rents by over 5%.
• The Prospect House property at 953 Dean Street in Brooklyn, NY is fully operational.
• The 250 Livingston Street office property's principal tenant (NYC) terminated its lease in August 2025; the property now derives revenue primarily from 36 residential units.
• New commercial leases were signed at Tribeca House, and real estate tax reimbursement increased at 141 Livingston Street.
• A loss of $0.2 million was recorded on the sale of the 10 West 65th St property in the third quarter of 2025.

Risks and Challenges:

• The lender at 250 Livingston Street has the right to foreclose on the property or take the deed in lieu of foreclosure at the end of the marketing period following the Consent and Cooperation Agreement entered into on June 4, 2026.
• As of November 4, 2026, the lender has not taken any foreclosure or deed-in-lieu actions.
• The company ceased making payments for interest and property tax escrows (including default interest of 5%) at 250 Livingston Street after notifying the lender of its intent not to support the property's operating and debt service shortfall.
• The lender has reimbursed or paid substantially all expenses of the 250 Livingston Street property since the cessation of payments.
• A temporary receiver was appointed by court order in April 2026.

Management Commentary and Tone:

• David Bistricer, Co-Chairman and CEO, highlighted continued strong residential leasing and significant progress in resolving lender issues at 250 Livingston Street.
• Management noted that major residential properties are leased at very high levels with strong renter demand.
• Management attributed the increase in net loss primarily to the non-cash impact of the NYC lease termination at 250 Livingston Street, which was partially offset by strong residential leasing performance and the stabilization of the Dean Street property.

Other Key Points:

• The Company declared a quarterly dividend of $0.095 per share for the third quarter of 2026, consistent with the previous quarter.
• The dividend is payable on November 25, 2026, to shareholders of record on November 16, 2026.
• A conference call to discuss results was held on November 4, 2026, at 5:00 PM Eastern Time.
• Total stockholders' equity was a deficit of $43.7 million as of September 30, 2026, compared to a deficit of $30.7 million at December 31, 2025.
• Non-controlling interests were a deficit of $71.2 million as of September 30, 2026, compared to $50.0 million at December 31, 2025.