Clipper Realty Faces Financial Turmoil After NYC Lease Termination and Mortgage Defaults

Clipper Realty Inc. (CLPR) faces significant financial risk after the City of New York terminated its lease at 250 Livingston Street, leading to defaults on a $125 million mortgage loan. The company struggles to replace the tenant and maintain cash flow, impacting its financial condition and investor confidence. Wall Street has a Moderate Sell consensus rating on CLPR stock.

Clipper Realty Inc. Reports Third Quarter 2025 Results

Clipper Realty Inc. reported Q3 2025 revenues of $37.7 million, a slight increase from the previous year, but faced a net loss of $4.6 million, up from a $1.1 million loss last year. The decline was due to initial costs of the Prospect House and lost revenue from a terminated lease. Despite challenges, high occupancy and rent increases were noted. The company focuses on optimizing its portfolio and enhancing financial performance.

Clipper Realty Q3 revenue slightly rises

Clipper Realty's Q3 revenue increased slightly due to higher residential rental income, despite a net loss of $4.6 million compared to $1.1 million last year. Adjusted FFO decreased to $5.6 million from $7.8 million. The termination of a NYC lease reduced commercial revenue, while higher rental rates boosted residential revenue. The company did not provide future guidance. Analyst rating is "sell," while the residential REITs peer group consensus is "buy."

Clipper Realty | 8-K: FY2025 Q3 Revenue: USD 37.7 M

Clipper Realty reports Q3 revenue of $37.7 million and net loss of $4.6 million

Clipper Realty reported Q3 2025 revenue of $37.7 million and a net loss of $4.6 million. Income from operations was $8.9 million, down from $10.8 million last year. Net operating income decreased to $20.8 million from $21.8 million. Adjusted funds from operations were $5.6 million, compared to $7.8 million previously. A dividend of $0.095 per share was declared. Key developments included leasing at Prospect House, lease termination at 250 Livingston Street, and sale of 10 West 65th Street.