Clipper Realty Inc. Reports $148.8 Million Revenue for Fiscal Year 2024, Net Loss Improves

Clipper Realty Inc. reported a total revenue of $148.8 million for the fiscal year ending December 31, 2024, marking a 5.3% increase from $142.3 million in 2023. The company's residential rental income rose to $109.9 million, up from $103.4 million, driven by increased rental rates across its properties. Commercial rental income also saw a slight increase, reaching $38.9 million compared to $38.5 million in the previous year. Despite the revenue growth, Clipper Realty experienced a net loss of $6.6 million, an improvement from a net loss of $15.6 million in 2023, primarily due to higher operating expenses and interest costs.

The company’s operational performance was influenced by significant changes in its property portfolio. As of December 31, 2024, Clipper Realty owned nine properties, with a total of approximately 3.4 million rentable square feet, achieving an occupancy rate of about 98%. The Tribeca House and Flatbush Gardens properties were key contributors to revenue, accounting for 28.2% and 31.3% of total revenue, respectively. The company also reported a notable increase in average rental rates per square foot, with Tribeca House rising to $82.52 from $77.70 and Flatbush Gardens increasing to $30.04 from $26.69 year-over-year.

Strategically, Clipper Realty has focused on enhancing its portfolio through acquisitions and redevelopment projects. The company is currently redeveloping the Dean Street property, which is expected to add approximately 240 residential units upon completion. Additionally, Clipper Realty entered into a 40-year regulatory agreement under Article 11 with the New York City Department of Housing Preservation and Development for its Flatbush Gardens property, committing to maintain rents within existing area median income groups and to provide certain services to tenants.

Looking ahead, Clipper Realty faces challenges related to its reliance on commercial leases with the City of New York, which account for approximately 22% of its total revenues. The city has indicated plans to terminate its lease at 250 Livingston Street effective August 23, 2025, and negotiations for a five-year extension at 141 Livingston Street are ongoing. The outcome of these negotiations could significantly impact the company's financial condition and cash flow. Furthermore, the company is navigating a competitive real estate market in New York City, which is characterized by rising interest rates and inflation, potentially affecting its ability to maintain occupancy and rental rates.