Clipper Realty Inc. · NYSE:CLPR
Clipper Realty — Nareit REITweek 2018
25 slides from Clipper Realty's conference presentation, Jun 1, 2018
Slide 1: Clipper Realty - Nareit REITweek, June 2018
CLIPPER REALTY Nareit REITweek - New York City June 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Asante ton sateen ara a nue inthis resentation Cpe Ray. he Company rear he Compan tran poston, business strategy and the plans, objectives, of for future operations, ae fon statement, When usedintis presentation, wore suchav-may-w shoud “coud exper “ana oshew “estimates “p
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, 3.1mm Leasable Square Feet
Attractive Current Portfolio - 66 Buildings, 3.1mm Leasable Square Feet Multifamily -97% leased + Office - 100% leased to New York City + Retail - 100% leased. latbush Gardens ~lou-cost option in Brookiyn, delivering steady growth + Tribeca House ~ sigifcanty below-market residential rents in downto
Slide 5: Well-Positioned Portfolio - Brooklyn and Manhattan
Well-Positioned Portfolio - Brooklyn and Manhattan Centrally Managed, Diverse Portfolio unin iy D :
Slide 6: 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 7: Portfolio with Significant Upside Potential
Portfolio with Significant Upside Potential %of pet oli! + Inplace rents meaningfully ower than legal maximum chargeable per regulation, in getrfying neighbochood 38% + Rents are well below market of 20+ PSF + Potential toad FAR signfiantly n excess of exiginal $00,000 sq.ft available amount under r
Slide 8: Flatbush Gardens
Flatbush Gardens Rising Rents, Improving Tenant Credit Profile, High Demand, Additional FAR D 2,496 rent-stabilized apartments in 59 buildings on 21 N acres in Flatbush, Brooklyn + Acquired October 2005 * Deeply distressed asset at purchase = Reduced 8,000+ NYC housing violations to several hundred
Slide 9: Flatbush Gardens
Flatbush Gardens Powerfull Operating Trends Illustrate Real-Time Effect of Asset Repositioning $30.00 ae gine S227 $2258 $20.63 $20.00 sissa (91969 eo _EEEEEE UJ at ‘At Acquisition 2014 2017 3/31/2018 Vacancy 50% improvement 2013 nore 2005 2016 2017 3/31/2018
Slide 10: Tribeca House - Multifamily / Retail
Tribeca House - Multifamily / Retail ‘Trophy Rental Asset with Below-Market Rents and a Significant Retail Opportunity Two buildings - 506 apartments, plus 8 retail tenants occupying approximately 77,000 sq. ft. + Purchased December 2014 — off-market deal of an under-managed asset * Increased reside
Slide 11: Tribeca House - Residential Opportunity
Tribeca House - Residential Opportunity Positive Rental Trends Driven by Targeted Investment + 19% of apartments currently at or above market (up from 7% at 144A offering) + Renovation plan instrumental in achieving market rents ~ Improved common area experience supporting higher rents, consistent w
Slide 12: Tribeca House - Retail Opportunity
Tribeca House - Retail Opportunity Significant Long‘Term NOI Growth as Older, Below-Market Retail Leases Tum Over + Retail streetscape has dramatically improved a 250 05F + Four Seasons Hotel and Private Residences #0 opened September 2016 $200 +1 World Trade Center complex, 9/11 Memorial ab in clos
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 Signifi nt Optionality ‘Two buildings - approximately 559,000 sq. ft. of office space and 26,819 sq. ft. of residential space * One of the strongest transformative markets
Slide 14: Aspen
Aspen WellLocated, Modem Proper building - 187,000 sq. ft., 232 ap: }, 3 retail units and indoor parking garage ‘in Transitioning Fast Side Manhattan Neighborhood + Purchased June 2016 for $103mm; opened 2004 +1 Avenue between 100" and 101* Streets + Steps from recently opened Second Avenue Subway s
Slide 15: West 65th Street
10 West 65" Street Recent Acquisition Steps from Central Park Residential buil square feet of a *Purchased October 2017 for $79mm *6-story residential complex with 82 apartments, plus approximately 53,000 sq. ft. of air rights ing — approximately 76,000 sq. ft., plus 53,000 hts * Located near Centra
Slide 16: Columbia Heights
107 Columbia Heights Prime Location in a Historic Neighborhood Residential building — approximately 154,000 gross 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, numer
Slide 17: Proven Access to Accretive Growth Opportunities
Proven Access to Accretive Growth Opportunities Opportunistic, Off Market Acquisitions, Capability to Close + As a long-term owner and operator, the Company is highly regarded in the New York City real estate industry : + Reputation among broker community for moving expeditiously and for being a rel
Slide 18: Fully Integrated, Internally Managed Platform
Fully Integrated, Internally Managed Platform *177 employees + Internal capabilities include acquisitions, accounting, finance, management and renovation/construction + Efficient, cohesive operation + Significant experience managing complex assets Da co-chairma istricar of the Board & Sam Levinson,
Slide 19: Management
Management Expert in New York City Real Estate Investing and Operations David Bstricer Co-chairman, Chief Executive Officer: Sam Levinson Co.chairman, Head of investment Committee Larry Krotdor J. Chef Financial Offer UBistrcer Chief Operating Officer Real estate investment career focused on New Yor
Slide 20: Seasoned Board of Directors
Seasoned Board of Directors Strong Corporate Governance, Real Estate Expertise, Public Company Experience Robert Wanhoo Background Chairman, Douglas Eliman, President, CEO & Dicector, Vector Group Ltd. (NYSE: VGR} gest residential broker in New York Vice Chairman, Ladenburg Thalmann Financlal Servic
Slide 21: Seasoned Board of Directors (cont'd)
Seasoned Board of Directors (cont'd) Strong Corporate Governance, Real Estate Expertise, Public Company Experience Years of + Former CFO, Coleman Cable, Inc Richard Burger 40F + Former CEO and President, Burns Aerospace Corp + Of counsel to Cozen O'Connor law firm; former Char of Financial Services
Slide 22: Current Capitalization
Current Capitalization ‘Net Dobe Less: Cash (2) Date ane census of Maven, 2028 (2) Semdoncosng pe of May, 2018 a
Slide 23: Recent Debt Refinancings Augment Cash Flow Growth
Recent Debt Refinancings Augment Cash Flow Growth February 2018 - Accretive Long:Term Financings on Flatbush Gardens and Tribeca House Sources * New Flatbush Gardens loan = $246mm secured frst mortgage loan Matures March 2028 = 359% fixed rate for frst five years ~ Interestonly for 30 months + New T
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
Slide 25: Clipper Realty - Thank You
CLIPPER REALTY Thank You