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Here are 1-2 brief analogies to describe Clipper Realty (CLPR):

• An Equity Residential (EQIX) or AvalonBay (AVB) specifically focused on owning and managing apartment buildings in New York City.
• Like Vornado Realty Trust (VNO), but instead of offices and retail, Clipper Realty focuses on owning and renting out apartment buildings primarily in New York City.

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• Rental of Multi-family Residential Properties: Leasing apartment units to individual tenants in their residential buildings.
• Rental of Commercial Properties: Leasing office, retail, and other commercial spaces within their property portfolio to businesses.

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Clipper Realty (CLPR) is a Real Estate Investment Trust (REIT) that owns, manages, operates, acquires, and repositions multifamily residential and commercial properties, primarily in the New York metropolitan area.

According to its latest financial filings (e.g., 2023 10-K), Clipper Realty does not have any single tenant that accounts for 10% or more of its total consolidated revenues. Therefore, there are no "major customers" in the sense of specific named companies dominating its revenue. Instead, the company serves a diverse base of tenants across its residential and commercial portfolios.

Clipper Realty sells primarily to individuals (for residential properties) and other companies (for commercial properties). Here are the categories of customers it serves:

• Residential Tenants: Individuals and families seeking apartment rentals, primarily in upscale and luxury properties located in prime Manhattan and Brooklyn neighborhoods such as Tribeca, Flatiron, and Park Slope. These properties attract a demographic interested in premium urban living.
• Retail Tenants: Various businesses, which include a mix of local and national brands, that lease ground-floor and street-level retail spaces within Clipper Realty's mixed-use and commercial buildings. These properties are often strategically located in high-traffic commercial corridors in Manhattan and Brooklyn.
• Office Tenants: Businesses and professional firms that lease office spaces within Clipper Realty's commercial properties. These office spaces are primarily located in key Manhattan submarkets, such as SoHo, catering to companies seeking prime business locations.

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David Bistricer, Co-Chairman and Chief Executive Officer

David Bistricer is the founder and CEO of Clipper Realty Inc. and the founder and principal of Clipper Equity. He joined his family's real estate business in the 1970s and has been involved in significant real estate transactions, including an attempted $1.3 billion purchase of the Starrett City housing complex in 2007. Mr. Bistricer served as Co-Chairman of the board of directors of Coleman Cable Inc. from 1999 to 2011 and was previously Co-Chairman of Riblet Products Corporation from 1987 until its merger with Coleman Cable Inc. in 2000. He has also been the managing member of Berkshire Capital LLC and Morgan Capital, real estate investment firms that are no longer active, and an investor in numerous other real estate ventures in the New York City area since approximately 1978. In 2011, he partnered with Joseph Chetrit to purchase the Chelsea Hotel for $80 million, selling their interest in 2013. He also initiated the restoration and reconversion of the former Hotel Bossert and the conversion of the Cabrini Medical Center into housing in 2013.

Lawrence Kreider, Chief Financial Officer and Secretary

Lawrence Kreider rejoined Clipper Realty as Chief Financial Officer in May 2021, having previously served as CFO from the company's formation in August 2015 until his retirement in June 2019. Prior to that, he was a financial consultant to the company from September 2014 to August 2015. From 2007 to 2011, Mr. Kreider was the Chief Financial Officer of Cedar Realty Trust, where he managed all aspects of the company's financial operations. He also served as Senior Vice President, CFO, Chief Information Officer, and Chief Accounting Officer for Affordable Residential Communities (now Hilltop Holdings Inc.) from 2001 to 2007. Earlier in his career, he was Senior Vice President of Finance for Warnaco Group Inc. and President of Warnaco Europe, and held various senior finance positions with Revlon, Inc. and MacAndrews & Forbes Holdings.

J.J. Bistricer, Chief Operating Officer

J.J. Bistricer, the son of David Bistricer, has served as Chief Operating Officer at several properties in the New York City metropolitan area since 2006, with direct responsibility for acquisitions, dispositions, leasing, property development, and operations. He has been an officer of Clipper Equity since 2006. Mr. Bistricer has served as the overall operating manager at the Flatbush Gardens property since 2006 and managed the conversion of office space to residential at the 250 Livingston Street property. He also served as Chief Operating Officer at the Tribeca House properties following their acquisition in December 2014 and has experience repositioning properties from office and hospital use to residential rental and condominium use.

Jacob Schwimmer, Chief Property Management Officer

Since 1992, Jacob Schwimmer has been actively involved in managing, developing, and investing in residential and commercial real estate properties in the New York City metropolitan area in partnership with David Bistricer and Sam Levinson. Mr. Schwimmer and his family were principal investors in the acquisitions of the 141 and 250 Livingston Street properties in 2002 and the Flatbush Gardens property in 2005, serving as the principal property management executive for these properties since their acquisition. He is also involved in other Brooklyn developments through JCS Realty, including The Stanwix. In December 2023, he acquired 540 Atlantic Avenue in Boerum Hill for $38.5 million.

Sam Levinson, Co-Chairman

Sam Levinson serves as Co-Chairman of the Board of Clipper Realty. He is the Chief Investment Officer at Glick Family Investments, a private family office in New York, where he has overseen private equity investments since 2004. Mr. Levinson has been a member of the board of directors of Stonegate Mortgage Corporation since 2013, serving as Chairman of its Compensation Committee. He has also been a director of Canary Wharf Group since 2004. Mr. Levinson previously served as a director of Coleman Cable, Inc. from 2005 until its sale in 2014, and of West Coast Bancorp from 2011 until its sale in 2016.

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• Financial distress related to the 250 Livingston Street property: Clipper Realty faces significant financial risk due to the termination of the lease by the City of New York at 250 Livingston Street, which previously generated $15.4 million annually. The company has struggled to replace the tenant at comparable rent rates, leading to defaults on a $125 million mortgage loan associated with the property. This situation creates uncertainty regarding the company's ability to meet its financial obligations and maintain cash flow for operations and dividends.
• High debt levels and negative equity: The company has substantial debt, with total liabilities exceeding total assets, resulting in negative equity. This elevated debt-to-equity ratio and negative equity can deter conservative investors and pose challenges to the company's financial stability.
• Limited geographic diversification: Clipper Realty's portfolio is primarily concentrated in the New York metropolitan area, specifically Manhattan and Brooklyn. This limited geographic diversification exposes the company to specific market and economic conditions within New York City, making it vulnerable to local real estate value fluctuations, occupancy rates, and regulatory changes, such as those related to rent stabilization.

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Clipper Realty (CLPR) operates primarily in the New York metropolitan area, with a specific focus on Manhattan and Brooklyn, through its main products and services: multifamily residential and commercial properties.

Addressable Market Sizes for Clipper Realty's Main Products and Services (New York City):

Multifamily Residential Properties:

For multifamily residential properties, the market in New York City is characterized by a significant volume of rental activity and high property values. As of September 30, 2025, the average rent in New York City was approximately $3,925. There were approximately 18,143 rental listings in New York, NY, as of August 2025. The median home sale price in New York City was $800,000 as of August 2025.

Commercial Properties:

The commercial real estate market in New York City is substantial. The total value of the New York City commercial real estate market is estimated to be close to $2 trillion. New York City's five boroughs contain nearly 730 million square feet of office space, with the majority (82% or approximately 600 million square feet) located in Manhattan. Office market values in New York City reached $196.2 billion in fiscal year 2020, and by fiscal year 2025, office properties are projected to contribute 20.6% of the city's total property tax levy.

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Clipper Realty (CLPR) is expected to drive future revenue growth over the next 2-3 years through several key strategies focusing on optimizing its existing portfolio and leveraging recent developments:

1. Increased Residential Rental Rates and High Occupancy: The company has demonstrated strong performance in its residential portfolio, with record residential rents and high occupancy rates. In the first quarter of 2025, residential revenue increased, driven by strong leasing across all properties, resulting in all-time high occupancy and rental rates. Overall average rents across the portfolio rose 15% to $30.8 per foot by the end of that quarter. This trend continued into Q2 2025, with residential revenue increasing and new leases exceeding prior rents by 14%. Clipper Realty explicitly states its ongoing focus on optimizing occupancy and pricing to position for growth.

2. Strategic Management of Commercial Properties and Filling Vacancies: Clipper Realty has seen an increase in commercial revenue by successfully filling smaller retail vacancies at properties like Tribeca House and Aspen at favorable rates. While the lease at 250 Livingston Street is set to terminate in August 2025, the company is actively seeking solutions, and it secured a five-year renewal for the 141 Livingston Street property, leased to the City of New York.

3. Stabilization and Cash Flow Generation from Development Projects: The Pacific House at 1010 Pacific Street in Brooklyn, one of Clipper Realty's ground-up development projects, has stabilized and is now contributing to cash flow after a year of full operation. This transition from development to an income-generating asset provides a new stream of revenue.

4. Benefits from Regulatory Agreements: The 40-year regulatory agreement under Article 11 at Flatbush Gardens is a significant driver, as it provides a full property tax exemption and includes commitments for certain rent and capital improvement conditions. This agreement is expected to support sustained revenue generation from this large residential complex.

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Share Repurchases

• Clipper Realty completed a $10.0 million stock repurchase program in November 2020.
• Approximately 1.71 million shares were repurchased during the fourth quarter of 2020 at a weighted average price of $5.70 per share.

Capital Expenditures

• Additions to buildings and improvements were approximately $28.1 million in 2020, $41.8 million in 2021, and $32.8 million in 2022.
• The Dean Street ground-up development was completed and began leasing by the second quarter of 2025, signifying a substantial prior capital investment.
• The company continues to make committed capital improvements at its Flatbush Gardens property under an Article 11 agreement with New York City.