Clipper Realty Inc. · NYSE:CLPR
Clipper Realty — NAREIT NYC June 2017
23 slides from Clipper Realty's conference presentation, Jun 6, 2017
Slide 1: Clipper Realty - NAREIT NYC June 2017
CLIPPER REALTY NAREIT NYC June 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This presentation contains statements about future events and expectations that can be characterized as forward-looking statements, including in particular, ‘statements about the Clipper Realty Inc’s (the “Comeany’) plans, strategies and prospects. The use of the words “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 NYC real estate at a discountto private market value with opportunities to redeve
Slide 4: Attractive Current Portfolio in Brooklyn and Manhattan
Attractive Current Portfolio 64 buildings, 3.0mm Total Leasable Square Feet in Brooklyn and Manhattan * Multifamily 96% occupied, Office 100% leased to City of New York, Retail 100% leased + Flatbush Gardens — low-cost option in Brooklyn, well-positioned for growth + Tribeca House ~ significantly be
Slide 5: Well Positioned Portfolio — Brooklyn and Manhattan
Well Positioned Portfolio — Brooklyn and Manhattan Centrally Managed, Diverse Portfolio West New "York Weehawken c= BROOKLYN
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 that is driving people to urban areas - Largest and growing renter population in the US * Strong job creation in NYC metro area supporting positive ou
Slide 7: Portfolio with Significant Upside Potential
Portfolio with Significant Upside Potential a % of Initial g Property a Potential Upside Driver + In-place rents on average 17% lower than legal maximum chargeable per rent regulation, in a cath gentrifying neighborhood Gardens Rents are well below market of $30 PSF Potential to utilize additional 5
Slide 8: Flatbush Gardens Complex
Flatbush Gardens Complex Rising Rents, Improving Tenant Credit Profile, High Demand, Additional FAR 2,496 rent-stabilized apartments in 59 buildings on 21 acres in Flatbush, Brooklyn * Acquired October 2005 * Deeply distressed asset at purchase ~ Reduced 8,000+ NYC housing violations by 96% * Alow-c
Slide 9: Flatbush Gardens
Flatbush Gardens Powerful Operating Trends Illustrate Real-Time Effect of Asset Repositioning Rental Rates (PSF) $19.69 sans $18.88 [| Ay At Acquisition 2013 2014 2015 4/30/2017 Improving Vacancy Rate (%)") Improvement 44% 3.6% SS 2014 2015 4/30/2017
Slide 10: Tribeca House — Multifamily / Retail
Tribeca House — Multifamily / Retail Trophy Rental Asset with Below-Market Rents and a Significant Retail Opportunity Two buildings consisting of 505 apartments, plus 8 retail tenants occupying ~77,000 sq. ft. + Purchased December 2014 — off-market deal of an under-managed asset * Increased resident
Slide 11: Tribeca House Residential Opportunity
Tribeca House Residential Opportunity Positive Rental Trends + 17% of Apartments Currently At or Above Market (Up From 7% at 144A Offering) + Renovation Plan Helps to Achieve Market Rents partment Breake Market Rent 50.0% 7 = at1a4a ($304) i = Present 40.0% 36.1% 30.0% | 27.2% 20.0% ~ = E $ 10.0% +
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 Sa] $142 pst + Four Seasons Hotel and Private Residences opened September 2016 ] +1 World Trade Center complex, 9/11 Memorial in close proxim
Slide 13: Downtown Brooklyn Office — Livingston and Livingston
Downtown Brooklyn Office — 141 Livingston and 250 Livingston Favorable Supply / Demand Dynamics and Transitioning Downtown Area Provide Significant Optionality Two buildings: 559,979 sq. ft. office space and 26,819 sq. ft. residential space + One of the strongest transformative markets in the U.' ~
Slide 14: Aspen
Aspen Recent Acquisition in Transitioning East Side Manhattan Neighborhood Block front building with 186,602 sq. ft., 232 residential rental units, 3 retail units and indoor parking garage * Acquired June 2016 for $103 million +1 Avenue between 100" and 101* Streets * Opened in 2004 * Apartments are
Slide 15: Columbia Heights, Brooklyn Heights, NY
107 Columbia Heights, Brooklyn Heights, NY Recent purchase May 2017 Y *Purchased for $87.5mm off-market 7 *11-story residential building comprising 154,000 sq. ft. with 159 units and an indoor parking garage * Property was recently renovated in 2007 - Located in iconic Brooklyn Heights neighborhood
Slide 16: Recent Accretive Acquisition Opportunity Under Contract West 65th Street
Recent Accretive Acquisition Opportunity Under Contract 10 West 65" Street, Manhattan, NY *Entered contract to purchase for $79.0mm off-market *6-story residential complex comprising 82,000 sq. ft. plus 53,000 sq. ft. air rights with 82 units *Located near Lincoln Center and Central Park in Upper We
Slide 17: 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 * Reputation among broker community for moving expeditiously and for being a reliab
Slide 18: Fully Integrated, Internally Managed Platform
Fully Integrated, Internally Managed Platform +180 employees *Internal capabilities include acquisition, accounting, finance, leasing, property management, renovation/construction team members * Efficient, cohesive operation * Significant experience managing complex assets David Bistricer Co-Chairma
Slide 19: Management
Management Expert in New York City Real Estate Investing and Operations David Bistricer Co-Chairman, Chief Executive Officer ‘sam Levinson Co-Chairman, Head of Investment, ‘Committee Larry Kreider Ir. Chief Financial Officer Ui Bistricer Chief Operating Officer Years of Real Estate Experience Backgr
Slide 20: Seasoned, Independent Board of Directors
Seasoned, Independent Board of Directors Strong Corporate Governance, Real Estate Expertise, Public Company Experience Howard Lorber Robert Verrone Years of Real Estate Experi Background *+ Chairman, Douglas Elliman, largest residential broker in New York + President, CEO & Director, Vector Group Lt
Slide 21: Current Capitalization
Current Capitalization | Enterprise Val NetDebt Total Debt!*! Less: Cash'#! Net Debt Enterprise Value Diluted Shares Outstanding (millions) Price per Share!) Shareholders’ Equity®) jus: a) Plus: Total Debt! zee Less: Cash'*! 105.21 Total Enterprise Valuel?) Aer
Slide 22: 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 NYC real estate at a discountto private market value with opportunities to redeve
Slide 23: Thank You
CLIPPER REALTY Thank You