third quarter of 2026
Filed Nov 4, 2026Record quarterly revenues of $40.5 million, supported by residential leasing, while the 250 Livingston Street lease termination reduced commercial revenue, AFFO and net income.
Residential rental income and quarterly revenue increased, and income from operations and NOI rose, but the Company reported a larger net loss and lower AFFO as the 250 Livingston Street NYC lease termination continued to weigh on results.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $40.5M | – | an increase of $2.8 million |
| Total revenues, nine months ended September 30, 2026GAAP | $117.2M | – | – |
| Property operating expenses, three months ended September 30, 2026GAAP | $9.66M | – | – |
| Real estate taxes and insurance, three months ended September 30, 2026GAAP | $8.4M | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | $4.38M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $8.11M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $30.55M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $9.9M | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $23.67M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | $15.79M | – | – |
| Net loss, three months ended September 30, 2026GAAP | $5.9M | – | an increase of $1.3 million |
| Net loss, nine months ended September 30, 2026GAAP | $23.32M | – | – |
| Net loss attributable to common stockholders, three months ended September 30, 2026GAAP | −$2.25M | – | – |
| Basic and diluted net loss per share, three months ended September 30, 2026GAAP | $(0.18) | – | – |
| Basic and diluted net loss per share, nine months ended September 30, 2026GAAP | $(0.67) | – | – |
| Funds from Operations, three months ended September 30, 2026non-GAAP | $2.2M | – | – |
| Adjusted funds from operations, three months ended September 30, 2026non-GAAP | $4.1M | – | a decrease of $1.5 million |
| AFFO per share/unit, three months ended September 30, 2026non-GAAP | $0.10 | – | – |
| Adjusted funds from operations, nine months ended September 30, 2026non-GAAP | $10.12M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $19.05M | – | – |
| Net operating income, three months ended September 30, 2026non-GAAP | $22.3M | – | – |
| Net operating income, nine months ended September 30, 2026non-GAAP | $64.07M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $17.57M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Residential rental income, three months ended September 30, 2026Strong residential rental rates and occupancy at the properties and a full quarter of the Dean Street property that was placed into service in August 2025. | $34M | – | an increase of $4.2 million or 14.1% |
| Commercial rental income, three months ended September 30, 2026Loss of $2.2 million of revenue from the NYC lease termination in August 2025, partially offset by new commercial leases at Tribeca House and higher real estate tax reimbursement at 141 Livingston of $0.8 million. | $6.5M | – | a decrease of $1.4 million |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Declared a dividend of $0.095 per share for the third quarter of 2026.
- The third quarter dividend of $0.095 per share was the same amount as last quarter.
- Dividend payable November 25, 2026, to shareholders of record on November 16, 2026.
- Dividends and distributions were $14,093 (in thousands) for the nine months ended September 30, 2026, compared to $13,842 (in thousands) for the nine months ended September 30, 2025.
What drove it
- New free market leases exceeded previous rents by 9% and renewals by over 5%.
- The major residential properties were leased at very high levels, with high occupancy and strong renter demand.
- Prospect House at 953 Dean Street was fully operational after going in service last year.
- New commercial leases at Tribeca House and higher real estate tax reimbursement at 141 Livingston partially offset the commercial revenue lost after the NYC lease termination.
Concerns
- The NYC principal tenant terminated its lease at 250 Livingston Street in August 2025, and the Company cited the termination as the primary reason for lower commercial revenue and AFFO.
- The Company ceased making payments for interest and property tax escrows, including default interest of 5%, at 250 Livingston Street after notifying the lender and special loan servicer that it did not plan to support the property's operating and debt service shortfall.
- The lender and the Company entered into a Consent and Cooperation Agreement effective June 4, 2026, to sell the loan during a marketing period; at the end of that period, the lender has the right to foreclose or take the deed in lieu of foreclosure.
- Interest expense, net was $15,793 (in thousands) in the third quarter of 2026, compared to $13,320 (in thousands) in the third quarter of 2025.
What to watch
- Actions by the lender following the marketing period for the 250 Livingston Street loan. As of November 4, 2026, the lender had not taken foreclosure or deed-in-lieu actions.
- Whether residential leasing rates, occupancy and the full operation of Dean Street continue to support residential rental income.
- The extent to which new commercial leases at Tribeca House and real estate tax reimbursements at 141 Livingston offset lost 250 Livingston Street revenue.
- AFFO and net loss following the $4.0 million AFFO impact and $4.1 million net-loss impact attributed to the NYC lease termination in the third quarter of 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $30.6 million at September 30, 2026, compared to $30.8 million at December 31, 2025.
- Restricted cash was $23.1 million at September 30, 2026, compared to $27.3 million at December 31, 2025.
- Notes payable, excluding unamortized loan costs, were $1,286.9 million at September 30, 2026, compared to $1,286.2 million at December 31, 2025.
- Net cash used in investing activities was $8,429 (in thousands) for the nine months ended September 30, 2026, compared to net cash provided by investing activities of $12,881 (in thousands) for the nine months ended September 30, 2025.
- Net cash used in financing activities was $13,588 (in thousands) for the nine months ended September 30, 2026, compared to $10,752 (in thousands) for the nine months ended September 30, 2025.
- Cash and cash equivalents and restricted cash were $53,705 (in thousands) at September 30, 2026, compared to $58,154 (in thousands) at the beginning of the period.
Analysis
Clipper Realty reported record quarterly revenue of $40.5 million for the third quarter of 2026, compared with $37.7 million in the third quarter of 2025. The increase was led by residential revenue of $34.0 million, up $4.2 million or 14.1%, reflecting strong rental rates and occupancy and a full quarter of Dean Street. The Company stated that new free-market leases exceeded previous rents by 9% and renewals by over 5%.
Commercial revenue declined to $6.5 million from $7.9 million. The loss of $2.2 million of revenue following the August 2025 NYC lease termination at 250 Livingston Street was partly offset by new leases at Tribeca House and $0.8 million of higher real estate tax reimbursement at 141 Livingston. Income from operations increased to $9.9 million from $8.9 million, while NOI increased to $22.3 million from $20.8 million.
The gain in property-level operating performance did not translate into improved bottom-line or recurring-distribution metrics. Net loss was $5.9 million, compared with a net loss of $4.6 million, and AFFO declined to $4.1 million, or $0.10 per share, from $5.6 million, or $0.13 per share. The Company attributed $4.1 million of the quarterly net loss and $4.0 million of the AFFO decline to the NYC lease termination, substantially all of which it described as non-cash in 2026.
Liquidity was broadly level on cash and lower on restricted cash, while debt was slightly higher. Cash and cash equivalents were $30.6 million and restricted cash was $23.1 million at September 30, 2026. Notes payable, excluding unamortized loan costs, were $1,286.9 million. For the nine months ended September 30, 2026, net cash provided by operating activities was $17,568 (in thousands), and dividends and distributions were $14,093 (in thousands).
The central issue remains the lender process at 250 Livingston Street. The lender obtained an order appointing a temporary receiver in April 2026, and the June 4, 2026 Consent and Cooperation Agreement provides for a loan sale marketing period followed by lender foreclosure or deed-in-lieu rights. The release provided no forward financial guidance. The Company maintained its quarterly dividend at $0.095 per share.
Management, verbatim
For the quarter, the main highlights are continued strong residential leasing and significant progress made towards resolving lender issues at our 250 Livingston Street office property. The residential properties continued to have high occupancy and strong renter demand. New free market leases exceeded previous rents by 9% and renewals by over 5% and our major residential properties are leased at very high levels. Furthermore, our new Prospect House property at 953 Dean Street in Brooklyn, NY is fully operational after going in service last year.
David Bistricer, Co-Chairman, and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-outlook guidance was not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A third-quarter operating cash flow figure was not reported; cash flow was reported for the nine months ended September 30, 2026.
- A tax rate was not reported.
- Prior-quarter comparisons were not reported for the reported financial metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.