Clipper Realty Inc. (CLPR): History, Ownership, Mission, How It Works & Makes Money

How does a New York-centric Real Estate Investment Trust (REIT), a company that owns income-producing real estate, like Clipper Realty Inc. (CLPR) navigate the city's complex property market and still deliver value?

The direct takeaway is their disciplined focus on core Brooklyn and Manhattan assets, which drove a trailing twelve-month (TTM) revenue of nearly $154.1 million as of mid-2025, a solid indicator of their market position. This operational strength is defintely clear in their Q3 2025 results, where new residential leases exceeded prior rents by nearly 14%, showing strong demand in their specific submarkets. We'll break down the history, the key ownership structure, and the simple but effective model they use to turn New York City apartments and commercial space into consistent cash flow.

Clipper Realty Inc. (CLPR) History

You need a clear line of sight on how Clipper Realty Inc. (CLPR) became the New York City real estate player it is today, and honestly, the story starts before the 2015 public entity. The company's trajectory is a classic New York real estate narrative: a family-backed legacy business that restructured to become a publicly traded Real Estate Investment Trust (REIT) to fuel large-scale growth and acquisitions.

The core business, run by the Bistricer family, has been active in New York City real estate for decades, but the current corporate structure, Clipper Realty Inc., was established specifically to consolidate those assets and access public capital. This distinction between the long-standing private operations and the public REIT is defintely crucial for understanding its current portfolio and strategy.

Given Company's Founding Timeline

Year established

Clipper Realty Inc. was formally incorporated on July 7, 2015, to continue and expand the commercial real estate business of its predecessor entities, which had been operating properties like Flatbush Gardens since 2005.

Original location

The company is headquartered in the New York metropolitan area, with its principal executive offices located in Brooklyn, New York.

Founding team members

The driving force behind the formation and leadership of Clipper Realty Inc. is David Bistricer, who serves as Co-Chairman and Chief Executive Officer. He has been the managing member of Clipper Equity, the predecessor, for over a decade.

Initial capital/funding

The company's initial capital for the REIT structure came from a private offering that closed in August 2015, which raised net proceeds of approximately $130.2 million. This funding was critical for the formation transactions that allowed the company to qualify as a REIT.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most transformative moments for Clipper Realty Inc. all center on its strategic shift from a private entity to a public REIT and its continuous, focused capital recycling in the high-barrier-to-entry New York market.

• The 2015 REIT Election: This was the pivot. By electing REIT status, the company gained access to public equity markets and established a formal structure for tax-efficient distribution of income, fundamentally changing its growth model.
• Major Portfolio Anchors: The contribution of key properties like Flatbush Gardens (2,496 units) and the acquisition of the Tribeca House properties (506 units) in 2014 were crucial. These assets form the stable, high-occupancy base of the portfolio, which averaged around 97.7% at Flatbush Gardens and 99.0% at Tribeca House as of September 30, 2025.
• The 2025 Capital Moves: Recent activity shows a clear focus on optimization. The sale of 10 West 65th Street for $43.6 million in May 2025 was a decisive move to generate cash and reduce debt, while the simultaneous securing of a $160 million bridge loan for the Dean Street development signals a commitment to value-add projects.
• Residential vs. Commercial Performance (2025): The third quarter of 2025 highlighted a near-term risk and opportunity. Residential leasing remains robust, with new leases exceeding prior rents by over 14%, but the termination of the New York City lease at 250 Livingston Street caused a commercial revenue decrease. This puts pressure on management to finalize new leases at the Downtown Brooklyn commercial properties.

The company is currently navigating the lease-up of its new Prospect House development, which is approximately 60% leased with free-market rents exceeding $88 per square foot, a key indicator of future revenue growth. If you want to dig deeper into the current ownership structure, you can read Exploring Clipper Realty Inc. (CLPR) Investor Profile: Who's Buying and Why?

Clipper Realty Inc. (CLPR) Ownership Structure

Clipper Realty Inc. has a highly concentrated ownership structure, where the founding insiders-the Bistricer and Levinson families-maintain a controlling stake, a common but significant factor in real estate investment trusts (REITs) like this one.

Given Company's Current Status

Clipper Realty Inc. is a publicly traded real estate investment trust (REIT) on the New York Stock Exchange (NYSE) under the ticker CLPR. This means it's legally required to distribute most of its taxable income to shareholders, which explains its focus on acquiring, owning, and managing multifamily residential and commercial properties in the New York metropolitan area. As of November 2025, the company's market capitalization stands at approximately $155.84 million, reflecting a stock price of about $3.72 per share. The company recently reported a third-quarter 2025 net loss of $4.6 million, a clear sign of the current pressures on its capital structure.

Given Company's Ownership Breakdown

The company's stock is not widely held by the public; instead, it is dominated by a tight group of insiders and large institutions. This high insider ownership means strategic decisions are defintely driven by the interests of a few key families, which can be both a strength (aligned long-term vision) and a risk (less independent oversight).

Here's the quick math: with insiders controlling more than half the company, they have effective voting control over most major decisions, including board composition. This structure is crucial to understand when evaluating the Mission Statement, Vision, & Core Values of Clipper Realty Inc. (CLPR).

Given Company's Leadership

The organization is steered by a seasoned, albeit tightly-knit, executive team with an average tenure of over a decade, providing stability but also concentrating power. Their focus remains on navigating the New York metropolitan area's complex real estate market, especially as they manage debt distress on major property loans totaling $225 million as of late 2025.

• David Bistricer: Co-Chairman & Chief Executive Officer (CEO). He is the largest individual shareholder, owning 45.71% of the company's shares.
• Sam Levinson: Co-Chairman of the Board. He is the second-largest individual shareholder.
• J.J. Bistricer (Jacob Joseph Bistricer): Chief Operating Officer (COO). He is the son of David Bistricer and oversees operations, leasing, and property development.
• Lawrence E. Kreider, Jr.: Chief Financial Officer (CFO) & Secretary. He manages the financial reporting and capital structure, a critical role given the company's $1.27 billion in total debt.
• Jacob Schwimmer: Chief Property Management Officer. He focuses on the day-to-day management of the portfolio.

The leadership is heavily invested in the outcome, which is good, but you also see this reflected in the CEO's total yearly compensation of $3.45 million, a figure above the average for similar-sized US companies.

Clipper Realty Inc. (CLPR) Mission and Values

Clipper Realty Inc. aims to generate long-term financial value for shareholders by strategically investing in and actively managing New York metropolitan area properties, all while maintaining a commitment to high ethical standards and positive community relationships. This focus on stable cash flow and capital appreciation is the core of their business philosophy, which is defintely a conservative one.

Clipper Realty Inc.'s Core Purpose

As a seasoned analyst, I look beyond the press releases to the actions that define a company's purpose. Clipper Realty Inc. (CLPR) does not publicly post a single, formal mission statement, but their decades of operation in the dense New York market clearly map out their core purpose.

Official mission statement

The company's mission is inferred from its business model: a dedication to long-term value creation through real estate investment trust (REIT) activities in the New York metropolitan area.

• Generate long-term value via strategic investments in residential and commercial assets.
• Focus on stable cash flow and capital appreciation.
• Enhance property value through active management and strategic capital improvements.
• Maintain high ethical standards with tenants, employees, and the community.

For a deeper dive into the inferred objectives, you can check out the Mission Statement, Vision, & Core Values of Clipper Realty Inc. (CLPR).

Vision statement

The vision is about market leadership and shareholder returns, which is typical for a publicly traded real estate investment trust (REIT). They want to be the best at what they do in a highly competitive market.

• Be a leading real estate company in the New York metropolitan area.
• Achieve sustainable growth and maximize shareholder value.
• Maintain a reputation for integrity and excellence in property management.

Here's the quick math on their execution: residential new leases in the third quarter of 2025 exceeded previous rents by nearly 14%, showing their ability to maximize value in a constrained market.

Clipper Realty Inc. slogan/tagline

Clipper Realty Inc. does not have an officially published slogan or tagline, which is common for a focused, operationally-driven real estate company where the properties themselves are the primary brand.

Their actions speak louder than a tagline, though. For example, the company is actively working to stabilize its portfolio after the August 2025 termination of the New York City lease at 250 Livingston Street, which was a significant commercial revenue source. At the same time, they are moving forward with the lease-up of their new Prospect House property, which was about 60% leased as of November 2025. This is a clear, near-term action that aligns with their mission to enhance property value and generate cash flow, despite the Q3 2025 Adjusted Funds From Operations (AFFO) being $5.6 million, a decrease from the prior year.

Clipper Realty Inc. (CLPR) How It Works

Clipper Realty Inc. is a self-administered and self-managed real estate investment trust (REIT) focused on acquiring, owning, and operating a portfolio of multifamily residential and commercial properties in the high-demand New York metropolitan area, primarily in Brooklyn and Manhattan. The company generates its revenue by leasing space to tenants, with residential rental income typically accounting for about 85% of its total revenue.

Clipper Realty Inc.'s Product/Service Portfolio

Clipper Realty Inc.'s Operational Framework

The operational framework focuses on maximizing cash flow and long-term asset appreciation within a high-barrier-to-entry market like New York City. You can see the dual focus on residential stability and commercial repositioning in the Q3 2025 results.

• Property Management: Oversee day-to-day operations, including tenant relations, rent collection, and maintenance, which is crucial for maintaining the residential portfolio's high occupancy rate.
• Capital Improvements: Invest in renovations and upgrades to existing properties, such as the committed capital improvements at Flatbush Gardens, to increase rental income and property value.
• Strategic Leasing: Drive rental rate growth; for example, residential new leases in Q3 2025 exceeded prior rents by nearly 14%, and renewals were up over 6%.
• Asset Repositioning: Actively manage commercial vacancies, such as the effort to bring 250 and 141 Livingston Street back to cash-flowing positions following the termination of a major New York City lease.
• Financial Control: Prudent management of debt, with notes payable totaling $1,281.2 million at September 30, 2025, and a focus on cost control to offset revenue volatility from commercial properties.

The goal is simple: buy well-located assets, fix them up, and keep them full. Exploring Clipper Realty Inc. (CLPR) Investor Profile: Who's Buying and Why?

Clipper Realty Inc.'s Strategic Advantages

The company's success is grounded in its concentrated portfolio and management's deep market expertise, which is defintely necessary in a complex market like NYC.

• Prime, Irreplaceable Locations: The portfolio is concentrated in desirable neighborhoods in Brooklyn and Manhattan, which are high-barrier-to-entry markets that offer a degree of stability and long-term appreciation potential.
• Value-Add Expertise: A proven strategy of acquiring properties and increasing their rental income through strategic renovations and upgrades, turning older assets into higher-yielding investments.
• Resilient Residential Core: The residential segment provides a strong base of stable cash flow, demonstrated by the overall residential occupancy of approximately 99% and the significant rent increases in 2025.
• Experienced Management: A seasoned team with decades of experience navigating the specific regulatory and competitive landscape of New York City real estate.

Here's the quick math: the residential segment's strength, with a Q3 2025 Net Operating Income (NOI) of $20.8 million, helps cushion the impact of commercial sector challenges, like the recent revenue decrease from the 250 Livingston Street lease termination. You need that stability when facing a tough office market.

Clipper Realty Inc. (CLPR) How It Makes Money

Clipper Realty Inc. primarily makes money by acquiring, owning, and operating a portfolio of multifamily residential and commercial real estate properties in the New York metropolitan area, with the vast majority of its revenue coming from collecting rent from its residential tenants.

The business model is straightforward: buy properties, manage them efficiently, and capture rising rental income in a high-demand, supply-constrained market like New York City.

Clipper Realty Inc.'s Revenue Breakdown

For the third quarter of 2025, the company reported total revenues of $37.7 million, which was essentially flat year-over-year due to offsetting factors: strong residential growth countered by a major commercial lease termination. The revenue streams are heavily weighted toward the residential side.

Business Economics

The core economic engine for Clipper Realty Inc. is the relentless demand for housing in New York City, which allows them to consistently push rental rates higher. Residential properties are the lifeblood of the company, and that's defintely where the focus should be.

• Residential Pricing Power: The company reported that new residential leases across its portfolio exceeded prior rents by nearly 14% in Q3 2025, a clear sign of pricing power driven by the city's constrained housing supply.
• High Occupancy: Residential occupancy rates remain exceptionally high, sitting at approximately 99% across the portfolio as of Q3 2025. High occupancy is the first sign of a healthy REIT.
• Rent Per Square Foot: The value of the portfolio is visible in the per-square-foot rents: Tribeca House, a Manhattan property, commands an average of $88.14 per square foot, while the new Prospect House development in Brooklyn is leasing free-market units for over $88 per square foot.
• Commercial Headwinds: The commercial segment faces significant pressure. The termination of the New York City lease at the 250 Livingston Street property in August 2025 was a major blow, as that single lease previously generated $15.4 million annually. The company is now actively negotiating to restore cash flow at this and other commercial properties.

Clipper Realty Inc.'s Financial Performance

The company's financial health as of the end of Q3 2025 shows a mixed picture: operational strength in residential is being masked by the commercial segment's transition and the sale of a property in May 2025.

• Net Operating Income (NOI): Q3 2025 NOI was $20.8 million, a decrease of about $1 million from the prior year. This decline was primarily due to the 250 Livingston Street lease termination and the sale of the 10 West 65th Street property.
• Adjusted Funds from Operations (AFFO): AFFO, a key measure of a real estate investment trust's (REIT) cash flow, fell to $5.6 million, or $0.13 per share, in Q3 2025, down from $7.8 million last year. This drop highlights the immediate impact of the commercial vacancy on distributable cash.
• Total Debt: The company carries substantial leverage, with notes payable totaling $1,281.2 million as of September 30, 2025. Here's the quick math: the weighted average interest rate on this operating debt is relatively low at approximately 4.2% per annum, with 88% of it fixed.
• Dividend: Despite the drop in AFFO, the company maintained its quarterly dividend at $0.095 per share for Q3 2025.

For a deeper dive into the company's long-term strategic direction, you should review their Mission Statement, Vision, & Core Values of Clipper Realty Inc. (CLPR).

Clipper Realty Inc. (CLPR) Market Position & Future Outlook

Clipper Realty Inc. (CLPR) is a niche New York City real estate investment trust (REIT) focused on value-add residential properties, but its future trajectory is mixed. The company is poised to capture strong residential rental growth, with new leases achieving nearly a 14% premium over prior rents, but this strength is significantly offset by commercial office sector headwinds and high debt.

The company maintains a strong residential foothold, boasting a 99% occupancy rate, yet its smaller market capitalization of approximately $59.26 million as of November 2025 means it operates on a much smaller scale than its diversified REIT peers.

Competitive Landscape

Clipper Realty operates in the highly fragmented, capital-intensive New York metropolitan area market, competing against both large publicly traded REITs and private equity funds. Its core competitive advantage lies in its deep local expertise and its portfolio of large, value-add residential complexes in prime Brooklyn and Manhattan locations, like Flatbush Gardens. To be fair, its size relative to its peers is tiny, which limits its access to the same scale of capital. Here's the quick math on its relative size against a few comparable residential REITs.

Opportunities & Challenges

The near-term focus is defintely on stabilizing the commercial portfolio while capitalizing on the red-hot residential market. The company's ability to execute on its development and lease-up strategy will be crucial in the next 12 months. You can dive deeper into the ownership structure and investor sentiment by Exploring Clipper Realty Inc. (CLPR) Investor Profile: Who's Buying and Why?

Industry Position

Clipper Realty Inc. occupies a unique, yet precarious, position in the New York City real estate market. It's a small-cap REIT with a portfolio concentrated in high-demand, supply-constrained urban residential areas, which is a major plus. But still, the entire company's market cap is roughly $59.26 million, making it a micro-cap player in a field dominated by multi-billion dollar entities.

• Residential Strength: High occupancy and strong rent growth (new leases up nearly 14%) in its residential segment provide a solid operational base.
• Commercial Vulnerability: The loss of a major municipal tenant at 250 Livingston Street and the resulting mortgage default highlights the extreme risk of its concentrated commercial exposure.
• Financial Headwinds: The net loss and the decline in Q3 2025 Adjusted Funds from Operations (AFFO) to $5.6 million from $7.8 million a year ago show that operational strength is not translating cleanly to the bottom line right now.
• Valuation Disparity: Despite the operational issues, the stock is often cited as trading at a significant discount to its estimated Net Asset Value (NAV), suggesting a potential deep value play if management can resolve the commercial liabilities.

The company is fundamentally a bet on the continued strength of the Brooklyn residential market and management's ability to successfully repurpose its troubled commercial assets. The projected -69.23% decrease in next year's EPS, from $0.39 to $0.12 per share, means you need to watch those commercial negotiations closely.