Clipper Realty Inc. · NYSE:CLPR
Clipper Realty — Investor Presentation (May 2019)
23 slides from Clipper Realty's investor presentation, May 31, 2019
Slide 1: Clipper Realty Investor Presentation June 2019
CLIPPER REALTY Investor Presentation June 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Allstatements other than statements of historical fact included in this presentation for Clipper Realty Inc. (the “Company”) regarding the Company's financial poston, business strategy andthe plans, objectives, expectations, or assumptions of management fr future operation
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, lew Yor real estate at a discount to private market value, elop and lease up Strong Expec
Slide 4: Attractive Current Portfolio - Buildings, 3.1mm Leasable Square Feet
Attractive Current Portfolio - 66 Buildings, 3.1mm Leasable Square Feet * Multifamily - 99% leased * Office - 100% leased to New York City + Retail - 100% leased Iatbush Gardens ~ low-cost option in Brookiyn, delivering steady growth + Telbeca House ~ market residertia rents long-term retall opps +
Slide 5: Well-Positioned Portfolio - Brooklyn and Manhattan
Well-Positioned Portfolio - Brooklyn and Manhattan Centrally Managed, Diverse Portfolio Yon 2 anwattan nen oy UD ye a
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 Tribeca House 34% 7% ™ 3% Potent Upside Drivers Inplace rents meaningfully lower than legal maximum chargeable per regulation, in gentrifying neighborhood Rents are well below market of $20+ PSF Potential to add FAR significant in excess of orginal $00,000
Slide 8: 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 9: Flatbush Gardens
Flatbush Gardens Powerful Operating Trends Ilustrate Real-Time Effect of Asset Repositioning $30.0 5 $25.0 | 52377 $24.08 $22.47 $2063 $21.24 $20.00 = sigs $199 am 2013 2014 2015 2016 2017 ‘Acquistion 2018 3/31/2019 80% 208 201 2015 2016 2017 2018 afay2019
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 * 22% 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, consiste
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 bead $2s0°sF + Adjacent Four Seasons Hotel and Private S00 Residences opened September 2016 200 * 1 World Trade Center complex, 9/11 Memor
Slide 13: Downtown Brooklyn Office - Livingston and Livingston
Downtown Brooklyn Office - 141 Livingston and 250 Livingston 1 Provide Significant Optionality and Strong Downtown Mar Favorable Supply/Demand Dynamic ‘Two buildings - approximately 549,000 sq. ft. of office space and 27,000 sq. ft. of residential space + One of the strongest transformative markets
Slide 14: Aspen
Aspen WelkLocated, Modern Property in Transitioning East Side Manhattan Neighborhood Block-front building - approximately 187,000 sq. ft., 232 apartments, 3 retail units and indoor parking garage * Purchased June 2016 for $103mm; opened 2004 +15 Avenue between 100" and 101* Streets + Steps from Seco
Slide 15: 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 Li
Slide 16: Columbia Heights
107 Columbia Heights Prime Location in a Historic Neighborhood Residential building - approximately 102,000 sq. ft. and indoor parking garay * Purchased May 2017 for $87.Smm, in vacant condition Located in iconic Brooklyn Heights neighborhood -Near Brooklyn Promenade, Brooklyn Bridge, numerous subwa
Slide 17: Proven Access to Accretive Growth Opportunities
Proven Access to Accretive Growth Opportunities Opportunistic, Of Market Acquisitions, Capability to Close + As a long.term owner and operator, the Company is highly regarded in the New York City real estate industry + Reputation among broker community for moving expeditiously and being a reliable c
Slide 18: Fully Integrated, Internally Managed Platform
Fully Integrated, Internally Managed Platform +203 employees + Internal capabilities include acquisitions, accounting, finance, leasing, property management and renovation/construction + Efficient, cohesive operation + Significant experience managing complex assets David Bistricer “0 Chaitman ofthe
Slide 19: Management
Management Expert in New York City Real Estate Investing and Operations Background David Bistricer + Real estate investment career focused on New York City Co-chairman, 40 * Successfully bought and sold the Sony Building Chief Executive Officer + Co-Chairman, Coleman Cable (Nasdaq: CCIX) from 1999-2
Slide 20: Seasoned Board of Directors
Seasoned Board of Directors Strong Corporate Govemance, D (Oat 7 neni Experince Howard orker sor Robert ivanhoo 25+ Real Estate Expertise, Public Company Experience Chairman, Douglas Elian largest residential broker in New York President, CEO & Director, Vector Group Ltd. (NYSE: VER) Vice Chairman,
Slide 21: Seasoned Board of Directors (cont'd)
Seasoned Board of Directors (cont'd) Strong Corporate Governance, Real Estate Expertise, Public Company Experience . + Former CFO, Coleman Cable, Inc. Rec? 40 + Former CEO and President, Burns Aerospace Corp. Vd + Of counsel, Cozen O'Conner law frm; former Chairmen, Financial Bb Seances ral Harmon S
Slide 22: Current Capitalization
Current Capitalization Not Debt and T. ue ($ mm, except as noted) Net Ds Total Debt $9249 Less: Cash 0 Net Debt $8955 ‘Total Enterprise Value Diluted Shares Outstanding (milion) 450 Price per Share Equity Market Capealzation ©! us: Total eb s249 Less: Cash 238) Enterprise Value suarze Dividend Vield
Slide 23: 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, jew Yo real estate at a discount to private market value, elop and lease up Strong Expect