Clipper Realty Inc. reported third‑quarter 2025 results that surpassed consensus expectations, with revenue of $37.7 million—$0.4 million above the $37.3 million estimate—while the company posted a net loss of $5.6 million, a narrower loss than the $4.6 million figure reported by some analysts. Earnings per share came in at $0.13, beating the $0.10 consensus by $0.03, or 30 %. The company declared a quarterly dividend of $0.095 per share, payable on December 4, 2025 to shareholders of record on November 26.
The residential portfolio remained the company’s strength, with revenue rising 6.9 % to $29.05 million as high occupancy and rent growth continued. In contrast, commercial revenue fell $1.8 million to $8.65 million after the termination of the New York City lease at 250 Livingston Street. The new Prospect House at 953 Dean Street began leasing this quarter, generating limited revenue but incurring full operating expenses, which contributed to the decline in net income. The mix shift toward residential income helped offset the commercial shortfall, but the company still faced headwinds from the loss of a key city lease.
Liquidity remained solid, with unrestricted cash of $26.1 million and restricted cash of $30.6 million at quarter‑end, a slight decline in unrestricted cash but an increase in restricted cash compared to the prior year. The cash balance supports the company’s dividend policy and provides a cushion for ongoing capital expenditures, including the lease‑up of Prospect House and potential commercial lease negotiations at 141 Livingston Street.
Management emphasized the resilience of the residential segment, noting that “our residential properties continue to perform very well due to continued high residential rental demand, excellent cash flow, overall rents are generally at all‑time highs and continue to increase, and we are nearly fully leased.” COO Jacob Bistricer added that “new rental rates at residential properties in the third quarter exceeded previous rent by over 14 % and renewals by 5 %.” CFO Lawrence Kreider highlighted that the company’s adjusted funds from operations fell to $5.6 million from $7.8 million a year earlier, largely due to the $1.9 million loss from the 250 Livingston lease termination and the $1.8 million impact of Prospect House’s initial operating costs. No forward guidance was disclosed in the earnings call.
The results illustrate a mixed outlook: residential demand remains robust, providing a stable revenue base, while commercial operations face uncertainty from lease terminations and the need to secure new tenants. The company’s focus on efficient portfolio management and its ability to maintain cash flow amid commercial headwinds suggest short‑term resilience, but the continued loss of commercial income and the upfront costs of new developments could pressure profitability in the near term. Overall, Clipper Realty’s earnings beat expectations, but the narrowing loss and cash position underscore the need for continued focus on residential growth and commercial lease optimization.
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