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Clipper Realty recorded a marginal rise in revenue earlier this week, supported mainly by stronger rental income from its residential portfolio. Despite this uptick, the company posted a wider net loss compared with the same period in the past year, reflecting the impact of reduced commercial income following the termination of its lease at 250 Livingston Street in New York City. Adjusted FFO also declined, and the firm refrained from issuing forward-looking guidance. Market sentiment remained cautious, with the sole analyst covering the stock maintaining a sell recommendation, contrasting sharply with the broader residential REITs sector.
Clipper Realty recently announced that its quarterly revenue had grown slightly, largely due to higher rental rates across its residential properties. The company explained that stronger occupancy trends and improved pricing contributed to this modest increase. However, the quarter also saw the firm report a net loss of USD 4.6 million, significantly wider than the USD 1.1 million recorded during the same period in the past year. Adjusted funds from operations fell to USD 5.6 million, compared with USD 7.8 million previously. Advertisement
Management indicated, through its press release, that it had chosen not to provide any specific forward guidance for the coming quarters. One of the notable factors influencing the results was the termination of the lease at 250 Livingston Street in New York City, which resulted in a reduction in commercial revenue. Residential rental performance remained the main contributor to growth, supported by higher rates across the portfolio.
Key operating metrics highlighted USD 37.7 million in revenue for the quarter, income from operations of USD 8.9 million, and a dividend declaration of USD 0.10. Market coverage remained sparse, with only one analyst rating the stock, maintaining a sell recommendation, in contrast to the buy stance commonly seen across the wider residential REITs peer group.
Clipper Realty's latest quarterly update painted a mixed picture, showing marginal revenue improvement but a weakening bottom line and reduced operational cash flow. The loss stemming from the lease termination continued to weigh on commercial performance, even as residential strength supported overall income. With no forward guidance issued and limited analyst coverage maintaining a cautious stance, the company's near-term trajectory remains uncertain. Nonetheless, the firm's residential assets continued to provide steady support, highlighting the segment's importance within Clipper Realty's broader portfolio as it navigates current market conditions.
Source - Reuters
5th Jun, 2025
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