Clipper Realty Inc. · NYSE:CLPR
Clipper Realty — Investor Presentation (June 2020)
24 slides from Clipper Realty's investor presentation, Jun 1, 2020
Slide 1: Clipper Realty Investor Presentation June 2020
CLIPPER REALTY Investor Presentation June 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements a than Incladedin this lipper Realty ne. the “Company regarding the Companys inacia postion, ausinessstrategy and the plans objeves, or are! pote ferwaré-ookingstatements which are generally not hisoricalln nature. Thesestatementsnvolve sks and unceraitisthat could cause a
Slide 3: Investment Highlights
Investment Highlights Only Pure-Play New York City-Centric REIT Robust NYC real estate fundamentals with focus on stable multifamily asset class Portfolio with Significant Upside Potential Acquire high-quality, diverse New York City real estate at a discount to private market value, with opportuniti
Slide 4: Attractive Current Portfolio - Buildings, 3.2mm Leasable Square Feet
Attractive Current Portfolio - 66 Buildings, 3.2mm Leasable Square Feet * Multifamily - 98% leased * Office - 100% leased to New York City Flatbush Goriens low-cost option in Brooklyn deliveringsteady growth + Telbeco House - below-marketresidential rents in downtown Manhattan + [Al Livingston /250
Slide 5: COVID-19 and Liquidity Update
COVID-19 and Liquidity Update Recent Refinancing Significantly Enhances Liquidity + Safety of tenants and employees remains highest priory + Have kept properties open and operating, providing regular services to tenants + Compliant with state and local shelter-in-place orders + Utilizing technology
Slide 6: Well-Positioned Portfolio - Brooklyn and Manhattan
Well-Positioned Portfolio - Brooklyn and Manhattan Centrally Managed, Diverse Portfolio Union cy a D
Slide 7: Strong New York City Real Estate Fundamentals
Strong New York City Real Estate Fundamentals Unwavering Demand From Institutional and Foreign Investors to Own NYC Real Estate * Gentrification shift driving people to urban areas Largest and growing renter population in the U.S. * Strong job creation in NYC metro area supporting positive outlook +
Slide 8: Portfolio with Significant Upside Potential
Portfolio with Significant Upside Potential Property |p, Flatbush Gardens ‘TribecaHouse Aspen Clover House to West 65" Street of 3% 33% o% 3% Potential Upside Drivers + Renovated, in-demand apartment complexin gentifying neighborhood + Rents below market of $30+ PSE + FAR expansion ~later stages of
Slide 9: Flatbush Gardens
Flatbush Gardens Rising Rents, Improving’ Tenant Credit Profile, High Demand, Additional FAR 2,496 rent-stabilized apartments in 59 buildings on 21 acres in East Flatbush, Brooklyn + Acquired October 2005 + Deeply distressed asset at purchase Reduced 8,000+ NYC housing violations to several hundred
Slide 10: Flatbush Gardens
Flatbush Gardens Powerful Rental Trends Illustrate Real-Time Effect of Recent Asset Repositioning Rent PSF () 188% Growth $30.00 4 4.61 $24.95 $25.00 sony $2877 $24.61 $20.63 S2i2a kp grag $19.69 sino | ill At Acquisition 2013 2014-2015. 2016. «2017-2018 «2019 3/31/2020 1) ures eprnet metic ated of
Slide 11: Tribeca House - Multifamily / Retail
‘Tribeca House - Multifamily / Retail ‘Trophy Rental Asset with Below-Market Rents ‘Two buildings - 506 apartments, plus retail tenants occupying approximately 77,000 sq. ft. * Purchased December 2014 — off-market deal of an under-managed asset + Increased residential rental rate from $61 PSF at acq
Slide 12: Tribeca House - Residential Opportunity
‘Tribeca House - Residential Opportunity Positive Rental Trends Driven by Targeted Investment * 27% of apartments currently at or above market (up from 7% at 144A offering) + Renovation program instrumental in achieving market rents Improved common area experience supporting higher rents, consistent
Slide 13: Downtown Brooklyn Office - Livingston and Livingston
Downtown Brooklyn Office - 141 Livingston and 250 Livingston Favorable Supply/Demand Dynamics and Strong Downtown Market Provide Significant Optionality ‘Two buildings - approximately 549,000 sq. ft. of office space and 27,000 sq. ft. of residential space + One of the strongest transformative market
Slide 14: Aspen
Aspen WelkLocated, Modem Property in Transitioning East Side Manhattan Neighborhood Block-front building — 187,000 sq. ft., 232 api , retail and indoor parking * Purchased June 2016 for $103mm; opened 2004 + 1° Avenue between 100" and 101* Streets * Steps from Second Avenue Subway stop at 96" Street
Slide 15: Clover House
Clover House Prime Location in a Historic Neighborhood Residential building - approximately 102,000 sq. ft. and indoor parking garage * Purchased May 2017 for $87.5mm, in vacant condition * Located in iconic Brooklyn Heights neighborhood Near Brooklyn Promenade, Brooklyn Bridge, numerous subway/bus
Slide 16: West 65th Street
10 West 65" Street Steps from Central Park. Residential building - approximately 76,000 sq. ft., plus 53,000 square feet of air rights * Purchased October 2017 for $79mm. *6-story residential complex with 82 apartments, plus approximately 53,000 sq. ft. of air rights * Located near Central Park and
Slide 17: 1010 Pacific Street
1010 Pacific Street Residential Redevelopment pect Heights of 1 close to Barclays Center / Atlantic Terminal + Land purchased November 2019 for $31mm. + Plan to redevelop asa nine-story, fully amenitized residential rental building - Approximately 119,000 rentable square feet, plus indoor parking, +
Slide 18: Proven Access to Accretive Growth Opportunities
Proven Access to Accretive Growth Opportunities “Opportunistic, OfF Market Acquisitions, Capability to Close + Asa long-term owner and operator, the Company is highly regarded in the New York City real estate industry . among broker y for moving exp y and being reliable party + Deep relationships wi
Slide 19: Fully Integrated, Internally Managed Platform
Fully Integrated, Internally Managed Platform +198 employees Internal capabilities include acquisitions, accounting, finance, leasing, property management and renovation / construction + Efficient, cohesive operation + Significant experience managing complex assets David Bstricer im Levinzon c T 1 M
Slide 20: Management
Management Expert in New York City Real Estate Investing and Operations David Bistricor Cochaitman, Chief Executive Officer Michael Frene Chief Financial Officer 1 Bistrcar Chief Operating Officer Realestate Investment career focused on New York City ‘Successfully bought and sold the Sony Building ‘
Slide 21: Seasoned Board of Directors
Seasoned Board of Directors Strong Corporate Governance, Real Estate Expertise, Public Company Experience Robert Verrone Howard Lorber 30 Background Chairman, oul filiman, largest residential broker in New York President, CEO & Director, Vector Group Ltd. (NYSE: VGR) Vice Chairman, Ledenburg Thalman
Slide 22: Seasoned Board of Directors (cont'd)
Seasoned Board of Directors (cont'd) Strong Corporate Governance, Real Estate Expertise, Public Company Experience ES “— + Former CFO, Coleman Cable, Inc. irs Barser 40+ «Former CEO ard President, Burrs Aerospace Corp. — 5 + Ofcounsel,Cozen O'Connor aw fm former Calrman, Financial Serves Practice Gr
Slide 23: Current Capitalization
Current Capitalization lot Dobt and Enterprise Value ($ mm, except as noted) ‘Not Dobe Total Debt) $10917 Less: Cash © jay Net Debt $9776 Enterprise Value Diluted Shares Outstanding (rm) 455 Price per Share 238 Equity Market Caphalization $335.5 Plus:Total Debt 10917 Less: Cash Entorprise Value s1a1
Slide 24: Investment Highlights
Investment Highlights Only Pure-Play New York City-Centric REIT Robust NYC real estate fundamentals with focus on stable multifamily asset class Portfolio with Significant Upside Potential Acquire high-quality, diverse New York City real estate at a discount to private market value, with opportuniti