Clipper Realty Inc. (CLPR) on Q1 2021 Results - Earnings Call Transcript

Operator: Good afternoon, ladies and gentlemen, and welcome to the Clipper Realty First Quarter 2021 Earnings Call. At this time, all participants have been placed on a listen-only mode. And the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Michael Frenz, Chief Financial Officer. Sir, the floor is yours. Michael Frenz: Good afternoon and thank you for joining us for the first quarter 2021 Clipper Realty Inc. earnings conference call. Participating with me on today's call are David Bistricer, Co-Chairman of the Board and Chief Executive Officer; and JJ Bistricer, Chief Operating Officer. Please be aware that statements made during the call that are not historical may be deemed forward-looking statements and actual results may differ materially from those indicated by such forward-looking statements. These statements are subject to numerous risks and uncertainties, including those disclosed in the company's 2020 annual report on Form 10-K posted, which is accessible at www.sec.gov and our website. David Bistricer: Thank you, Michael. Good afternoon and welcome to first quarter’s 2021 earnings call for Clipper Realty. I will provide an update on our business performance including recent highlights and milestones as well as how our company continues to respond to the COVID-19 pandemic. JJ will discuss property level activity, including leasing performance. Finally, Michael will speak about our quarterly financial performance. We will – then take your questions. I will begin by once again extending our thanks to the entire Clipper Realty team for their ongoing hard work, perseverance during these unprecedented times. We remain grateful to the efforts over the past 14 months on the very, very challenging circumstances. We are proud of the continued dedication to the residents, communities and our business. Properties have to remained open an operational throughout the pandemic. The increased in New York City residential leasing activity. The 2020 in the fourth quarter of last year continues today as both the city and the economy in general, further strengthened from the depths of the pandemic. We expect rental demands remain elevated and pricing to improve as New York City continues to reopen vaccinations proliferate. At the end of the first quarter properties were 95% leased, and rents at our Tribeca House in the first week of May have increased over 20% over the similar period in April. We continue to take the necessary steps to keep our tenant, tenant safe in compliance with state and local orders and are providing typical services to our residents. We remain confident in the resiliency of New York City. We expect our properties in the city to stay desirable to a broad range of tenants and operations to continue to return to a more normal state over time. Our balance sheet continues to be well positioned from a liquidity perspective they may to manage through the pandemic. We have approximately $106 million of cash consisting of $88 million of unrestricted cash and $80 million of restricted cash. JJ Bistricer: Thank you. I’ll begin again, sending our thanks to the company's employees for their inspiring efforts throughout this unprecedented period. We are grateful for their ongoing commitment to our tenants and communities. The increase in residential leasing activity that began towards the end of last year continues today. Michael Frenz: Thank you, JJ. For the first quarter we achieved revenues of $30.7 million compared to $31.3 million for the first quarter of 2020. We achieved NOI of $14.8 million and a AFFO of $3.1 million. The year-over-year revenue change was primarily attributable to decline the leased occupancy and residential rental rate at the Tribeca House property and the termination of certain commercial leases at the property, partially offset by the commencement of the new office lease at the 250 Livingston Street property during the third quarter of 2020. David Bistricer: Thank you, Michael. We remain focused on efficiently operating our portfolio with the safety of our tenants and employees our highest priority. We continue to take the necessary steps to navigate through the current challenges, buttress by a long strong balance sheet. We expect to see recovery from the pandemic to continue to accelerate to 2021 and beyond. We look forward to capitalizing on a myriad of growth opportunities including 1010 Pacific Street development and other possibilities that may present themselves. We hope everyone remains safe and healthy. I would like now to open up the line for questions. Operator: David Bistricer: Thank you very much. Thank you for joining us today and we look forward to speaking with you again soon. Operator: Thank you ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.
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