Clipper Realty Inc. (CLPR) FY2025 10-K Annual Report

Filed: Feb 26, 2026
Financials
Real Estate Investment TrustsSEC EDGAR

Clipper Realty Inc. (CLPR) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Clipper Realty Inc. FY2025 10-K Analysis

Business Overview

  • Core business model: Acquisition, ownership, management, and repositioning of multifamily residential and commercial properties in NYC metro area
  • Emphasized portfolio includes large multifamily complexes such as Flatbush Gardens (2,494 units, 1.75M sq ft) and mixed-use buildings in Manhattan and Brooklyn
  • Strategic disposition: Sale of 10 West 65th Street for $45.5M, with full mortgage repayment and $34.6M combined asset loss recorded
  • Notable metric: Portfolio includes eight significant properties totaling over 3.2 million sq ft of rental space as of year-end 2025
  • Filing highlights $33.78M impairment loss on long-lived assets related to disposed property reflecting valuation challenges

Management Discussion & Analysis

  • Revenue growth driven by residential rental rate increases: Tribeca House $88.74 vs $82.52, Flatbush Gardens $32.20 vs $30.04, Clover House $89.74 vs $85.91 per sq ft
  • Operating segments: Residential Rental and Commercial Rental; office market pressured by remote work, leading to 250 Livingston Street vacancy impacting commercial segment
  • Sale of 10 West 65th Street generated $45.5M gross proceeds; $31.2M mortgage repaid; losses recorded: $857K disposal loss, $33.78M impairment loss for 2025
  • Ownership structure: 62.1% common stock held by Class B LLC units, Operating Partnership entitled to 37.9% distributions from LLC subsidiaries
  • Lease uncertainty risk: 141 Livingston lease expired Dec 2025, NYC tenant continues paying but renewal negotiations underway with risk of non-renewal or lower rents

Risk Factors

  • Regulatory risk: New York Housing Stability and Tenant Protection Act 2019 limits rent increases to 3.00%-4.50% at Flatbush Gardens and Aspen properties as of Oct 1, 2025
  • Geopolitical/macroeconomic: Revenue 78% from NYC apartments concentrated in 6 Manhattan-Brooklyn neighborhoods, exposed to local economic downturns and housing market volatility
  • Operational vulnerability: Turnover costs from resident moves include repainting, repairs, appliance replacement; excessive turnover risks financial condition and stock stability
  • Competitive risk: No explicit competitor named; risk from market supply-demand shifts and government fiscal policies affecting property values and leasing ability in NYC
  • Financial risk: Recorded $33.78 million impairment loss on 10 West 65th Street property in 2025, indicating potential asset value deterioration and income impact

Clipper Realty Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$153M

+3.0% YoY

Net Income

-$20M

-696.0% YoY

Operating Margin

2.7%

-2452bp YoY

Net Margin

-13.0%

-1131bp YoY

ROE

64.8%

+1859bp YoY

Total Assets

$1.2B

-4.1% YoY

EPS (Diluted)

$-1.38

-452.0% YoY

Operating Cash Flow

$23M

-29.2% YoY

Source: XBRL data from Clipper Realty Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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