Clipper Realty, Inc. (CLPR)

Clipper Realty, Inc.'s stock has been impacted by a mix of operational results and strategic developments over the past six months. Q3 2025 earnings showed revenues of $37.7 million, but a loss of $0.14 per share. Q2 2025 earnings showed revenues of $39.0 million, record Net Operating Income of $22.1 million, and record Adjusted Funds from Operations of $8.3 million, alongside a net loss of $1.4 million. Q1 2025 earnings highlighted strong performance with record quarterly revenues of $39.4 million, an 8% increase in Net Operating Income, and a 36% rise in Adjusted Funds from Operations, despite a net loss of $35.1 million. Significant events include the commercial lease termination at 250 Livingston Street, costs associated with the initial lease-up of Prospect House, the substantial completion of construction at 953 Dean Street, the refinancing of its construction loan, a five-year lease renewal with NYC at 141 Livingston Street, and the sale of its 10 West 65th Street property. The stock has experienced weak performance, with a negative 13.18% price change over the past 12 months as of 2024, and a decrease of approximately 30.75% over the last 12 months ending September 30, 2025, leading to a rating downgrade to "Sell" in November 2025. In January 2026, Clipper Realty modified a loan, which helped stabilize a Brooklyn property.

Demand for Clipper Realty, Inc.'s residential products and services generally remains strong throughout the year. Residential rental demand is consistently high across all its properties, with rents at or near all-time highs and continuing to increase, and the company's properties are typically almost fully leased. While the first quarter usually sees lower income levels due to higher winter heating costs, the company reported near-record net operating income and Adjusted Funds from Operations in Q1 2025 on a seasonally adjusted basis, driven by strong residential leasing. New residential developments are strategically timed for leasing to commence in the summer season, indicating an awareness of seasonal demand patterns in the rental market, and the residential segment is considered a stable foundation for future growth.

Clipper Realty, Inc. (CLPR) is a self-administered and self-managed real estate company that specializes in the acquisition, ownership, management, operation, and repositioning of multifamily residential and commercial properties, operating within the Real Estate sector, specifically in the Residential & Commercial REITs industry. Approximately 75% of its total revenue is generated from residential rental income, and about 20% comes from commercial rental income. Key properties include Flatbush Gardens, Tribeca House, Clover House, Pacific House, Prospect House, 953 Dean Street, 250 Livingston Street, and 141 Livingston Street.

Clipper Realty, Inc. focuses its operations exclusively within the New York metropolitan area, with its property portfolio concentrated in Manhattan and Brooklyn.

Clipper Realty, Inc. has experienced a mixed brand reputation in the past year. Strong residential performance with a 99% occupancy rate and record-high rents contrasts with challenges in its commercial office portfolio, creating investor caution. The termination of a major commercial lease and costs associated with new developments contributed to a net loss in Q3 2025, impacting its reputation. The significant underperformance of its stock price and a rating downgrade to "Sell" in November 2025 reflect market concerns. Management expresses confidence in continued strong rental demand, and the successful completion and high leasing rates of new residential developments have been positive. Strong residential leasing, high occupancy, and robust renter demand across its properties continue to be a positive aspect of its operational reputation.

Institutional investors hold approximately 32.47% of Clipper Realty, Inc.'s shares outstanding, or about 33.47% as of early November 2025. Individuals and insiders collectively own 11.84% of the shares, with public and other investors holding the largest portion at 47.93%. CEO David Bistricer holds approximately 9.17% of the company. Insider activity in the past three months (as of February 2026) shows more buying than selling of company stock. Overall, insiders hold 53.01% of the stock.