Overview

• U.S. multifamily and commercial landlord's Q1 revenue fell 3% yr/yr on lower office rents

• Adjusted FFO dropped to $2.3 mln from $8.0 mln on litigation and office lease loss

• Residential revenue rose 9% yr/yr on strong leasing and high occupancy

Outlook

• Company expects results at Prospect House to improve as occupancy stabilizes

• Clipper Realty continues to work with lender at 250 Livingston Street amid ongoing negotiations

• Company reports high occupancy and strong renter demand at major residential properties

Result Drivers

• RESIDENTIAL LEASING - Strong leasing, higher rental rates, and high occupancy at stabilized residential properties drove a 9.3% yr/yr increase in residential revenue

• OFFICE LEASE TERMINATION - Loss of major tenant at 250 Livingston Street led to a $4 mln yr/yr drop in commercial revenue and increased losses at the property

• LITIGATION SETTLEMENT - $3.6 mln charge for probable litigation settlement regarding payroll practices impacted results across all properties

Company press release: ID:nBw4SSrvSa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$38.10 mln	$39.60 mln (1 Analyst)
Q1 EPS		-$0.30
Q1 Net Income		-$11.10 mln
Q1 Adjusted FFO		$2.25 mln
Q1 Dividend		$0.10
Q1 Income From Operations		$4.40 mln

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• The average consensus recommendation for the residential reits peer group is "buy."

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