Clipper RealtyNYSE: CLPR

Clipper Realty's stock is currently trading at an all-time low and a 10% yield with no history of dividend cuts. With ten properties in Manhattan and Brooklyn, it's good real estate, but refinancing at higher interest rates could squeeze the cash flow too much. Crucially, management is not bound by anti-competitive agreements, and their best ideas may not go to CLPR.

Clipper Realty Inc. (CLPR) Q4 2023 Earnings Call Transcript

Clipper Realty Inc. (CLPR) came out with quarterly funds from operations (FFO) of $0.15 per share, missing the Zacks Consensus Estimate of $0.16 per share. This compares to FFO of $0.11 per share a year ago.

Clipper Realty is a residential/retail REIT that owns and manages properties in the New York metropolitan area. The company has a concentrated portfolio, which may be unattractive for investors seeking broader exposure. Even though the discount to NAV appears large and the dividend yield is high, its financial health is concerning, with high leverage, low liquidity, and a potentially unsafe dividend.

Clipper Realty is currently paying out a 7.7% dividend yield. The most recent distribution was 158% covered by its third quarter adjusted FFO. Its long-dated maturity profile and high insider ownership have reduced the likelihood of a dividend reduction.

Clipper Realty Inc. (NYSE:CLPR ) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET Company Participants Larry Kreider - Chief Financial Officer David Bistricer - Co-Chairman of the Board and Chief Executive Officer J.J. Bistricer - Chief Operating Officer Operator Good day and welcome to the Clipper Realty Quarterly Earnings Call.

Clipper Realty Inc. (CLPR) came out with quarterly funds from operations (FFO) of $0.15 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to FFO of $0.12 per share a year ago.

Clipper Realty is offering a 7.2% dividend yield, but its dividend is far from safe, partly due to a forward FFO payout ratio of 106%. The commercial properties of Clipper Realty have been negatively impacted by an accelerated shift to e-commerce. The REIT has a high debt load and has underperformed the market, making it a risky investment for income-oriented investors.

Clipper Realty Inc. (CLPR) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.