Clipper Realty Inc. · NYSE:CLPR
Clipper Realty — Investor Presentation (November 2018)
24 slides from Clipper Realty's investor presentation, Nov 2, 2018
Slide 1: Clipper Realty Investor Presentation November 2018
CLIPPER REALTY Investor Presentation November 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements {Al statements other than statement of hitril fet included in thi presentation for ler Realy ne. the “Company regarcing the Company's tinal postion, busess strategy andthe plans objectives, or for future operations, ae ‘When ves inthis presertaton, words uch a5 ‘may. "wll"
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 + Hotbush Gardens ~ low-cost option In Brooklyn, delvering steady growth + Tribaco House ~sgrficartly below market residential rents in dow
Slide 5: Well-Positioned Portfolio - Brooklyn and Manhattan
Well-Positioned Portfolio - Brooklyn and Manhattan Centrally Managed, Diverse Portfolio ian MANHATTAN,
Slide 6: Strong New York City Real Estate Fundamentals
Strong New York City Real Estate Fundamentals Unmavering Demand From Institutional and Foreign Investors to Own NYC Real Es * 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 * Hig
Slide 7: Portfolio with Significant Upside Potential
Portfolio with Significant Upside Potential = + Inelace rents meaningfully ower than legal maximum chargeable per regulation, n gentrtyng neighborhood 38% + Rents are well below market of$30+ PSF + Potential to add FAR significantly in excess of original 500,000 sq, ft. avallable amount under review
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. 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 Powerfiul Operating Trends Illustrate Real-Time Effect of Asset Repositioning sro sis sing oer BR sincy gees sie} fisco nas soo i, Phew coy shorn 6.0% 5.6% 9/30/2018
Slide 10: Tribeca House - Multifamily / Retail
Tribeca House - Multifamily / Retail ‘Trophy Rental Asset with Below-M: ct 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 residen
Slide 11: Tribeca House - Residential Opportunity
Tribeca House - Residential Opportunity Positive Rental Trends Driven by Targeted Investment + 21% of apartments currently at or above market (up from 7% at 144A offering) * Renovation program instrumental in achieving market rents Improved common area experience supportinghigher rents, consistent w
Slide 12: Tribeca House - Retail Opportunity
Tribeca House - Retail Opportunity Significant Long-Term NOI Growth as Older, Below-Market Retail L + Retail streetscape has dramatically improved a | s2s0nsr + Adjacent Four Seasons Hotel and Private 0 | Residences opened September 2016 0 | + 1World Trade Center complex, 9/11 Memorial sep, in close
Slide 13: Downtown Brooklyn Office - Livingston and Livingston
Downtown Brooklyn Office - 141 Livingston and 250 Livingston Favorable Supply/Demand Dynamic and Strong Downtown Market Provide Significant Optionality ‘Two buildings - approximately 559,000 sq. ft. of office space and 27,000 sq. ft. of residential space * One of the strongest transformative markets
Slide 14: Aspen
Aspen ‘WellLocated, Modem Property in Transitioning East Side Manhattan Neighborhood building - 187,000 sq, ft., 232 apa , 3 retail units and indoor parking garage * Purchased June 2016 for $103mm; opened 2004 +15 Avenue between 100 and 101* Streets + Steps from Second Avenue Subway stop at 96" Stre
Slide 15: West 65th Street
10 West 65" Street Recent Acquisition 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
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 Brookiyn Promenade, Brooklyn Bridge, numero
Slide 17: Proven Access to Accretive Growth Opportunities
Proven Access to Accretive Growth Opportunities Opportunistic, Of Market Acquisitions, Capability to Close + Asa longcterm owner and operator, the Companys highly regarded inthe New York City real estate industry + Reputation among broker community for moving expeditiously and being a reliable count
Slide 18: Fully Integrated, Internally Managed Platform
Fully Integrated, Internally Managed Platform +177 employees +Internal capabilities include acquisitions, accounting, finance, leasing, property management and renovation/construction * Efficient, cohesive operation * Significant experience managing complex assets r T 1 Lary Kreider A Bistricor “cob
Slide 19: Management
Management Expert in New York City Real Estate Investing and Operations + Realestate investment career focused on New York City 39 * Successfully Bought and sold the Sony Bulding Chief Execute Offcer + Co-Chairman, Coleman Cable (Nasdaq: CCX) from 1999-2011 + Founder and President, Trapeze inc. real
Slide 20: Seasoned Board of Directors
Seasoned Board of Directors Strong Corporate Governance, Real Estate Expertise, Public Company Expe of Real Estate Exper Robert vanhoo 30+ Robert Verrone ickground ‘Chaitman, Douglas Elimar, largest residential broker in New York President, CEO & Directer, Vector Group Ltd NYSE: VGR) Vice Chairman,
Slide 21: Seasoned Board of Directors (cont'd)
Si Strong Corporate Governance, Real Estate Expertise, Public Company Experience Jewett + Former CFO, Coleman Cable, ne. asoned Board of Directors (cont'd) Lele 40+ + Former CEO and President, Burns Aerospace Corp, + of counsel, oxen O'Connor law frm: former Chairman Financial Sooons Prats Group Har
Slide 22: Current Capitalization
Current Capitalization Net Debt Total Debt ess: Cash Net Debt ‘Total Enterorze Value Diluted Shares Outstanding (millions) Price per Share Equity Market Capitalization °) Plut: Total Debt ® ess: Cash Enterprise Value Dividend Yield (@ $0.095/share quarterly dividend) 28%
Slide 23: Recent Debt Refinancings Augment Cash Flow Growth
Recent Debt Refinancings Augment Cash Flow Growth February 2018 ~ Acer *+ News Flatbush Gardens loan, = 246mm secured fst mortgage oan = Matures March 2028, = 3.5% xed rate for fist five years + Interest-ony for 30 months + New Tribeea House loan = $360mm secured joan = Matures March 2028, = 4.505%
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
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