Clipper Realty Inc. · NYSE:CLPR
Clipper Realty — Investor Presentation (June 2021)
23 slides from Clipper Realty's investor presentation, Jun 9, 2021
Slide 1: Clipper Realty Investor Presentation June 2021
Cr CLIPPER REALTY Investor Presentation June 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements other than statements of historical fact included in tis presentation for Clipper Realty Ine. (the “Company") regarding the Companys financial postion, business strategy and the plans, objectives, or of ‘are for ‘When used inthis presentation, words such as
Slide 3: Investment Highlights
Investment Highlights Only Pure-Play New York City Area REIT Focus on stable multifamily asset class poised to take advantage of COVID-19 Pandemic Recove Portfolio with Significant Upside Potential Acquire high-quality, diverse New York City real estate at a discount to private market value, with op
Slide 4: Attractive Current Portfolio - Buildings, 3.3mm Leasable Square Feet
Attractive Current Portfolio - 66 Buildings, 3.3mm Leasable Square Feet Muttifamity~95% teased—Re * Office - 100% leased to New York City + Flatbush Gardens — low-cost option in Brook’yn, delivering steady grow; substantial renovation; recent new free market leases made at $33 psf ws $25 psf average
Slide 5: Liquidity and COVID-19 Update
Liquidity and COVID-19 Update Refinancings in the Last Year Have Significantly Enhanced Liquidity Covid-19 Effects are Diminishing Strong Liquidity Position, Flatbush Gardens and 141 Livingston St Properties Refinanced in Last Year + Two properties refinanced in the last year - $88mm of free cash at
Slide 6: Well-Positioned Portfolio - Brooklyn and Manhattan
Well-Positioned Portfolio - Brooklyn and Manhattan Centrally Managed, Diverse Portfolio Ce MANHATTAN, ony D ho root
Slide 7: New York City Real Estate Fundamentals Recovering
New York City Real Estate Fundamentals Recovering Occupancy and Rent Levels Increasing * New York City reopening is accelerating *COVID-19 vaccinations becoming widespread * Brooklyn office market continues to perform as firms look outside Manhattan in search of more affordable spaces * Lack of avai
Slide 8: Portfolio with Significant Upside Potential
Portfolio with Significant Upside Potential Property |p oref Flatbush Gardens Tribeca House Assets ‘Clover House 10 West 65® Street 26% 5% 3% a Potential Upside Drivers ‘+ Renovated, in-demand apartment complex in gentrifying neighborhood + Rents below market of $30+ PSF; recent new leases are above
Slide 9: Flatbush Gardens
Flatbush Gardens Rising Rents, Improving Tenant Credit Profile, High Demand, Additional FAR 2,493 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 Ilustate RealTime Effect of Recent Asset Repositioning Through Pandemic Rent PSF (2) $30.00 $25.00 ~ $20.00 Subes $15.00 - $13.25 | $10.00 i s ge al © 19% Growth ‘ doz $23.77 $24.61 $25.06 $25.07 21.24 $19.69 $20.63 : oP Ke oP ES g rs
Slide 11: Tribeca House - Multifamily / Retail
‘Tribeca House - Multifamily / Retail Trophy Rental Asset with Below-Market Rents Recovering from COVID-19 Pandemic ‘Two buildings - 506 apartments, plus retail tenants occupying approximately 77,000 sq. ft. + Purchased December 2014 — off-market deal of an under-managed asset - Purchased at less th
Slide 12: 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 13: Aspen
Aspen Well-Located, Moder Property in Transitioning East Side Manhattan Neighborhood Block-front building - approximately 187,000 sq. ft., 232 apartments, ground-floor retail and indoor parking + Purchased June 2016 for $103mm; opened 2004 +1 Avenue between 100" and 101* Streets * Steps from Second
Slide 14: 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 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: 1010 Pacific Street
1010 Pacific Street Residential Redevelopment Prospect Heights neighborhood of yn, close p y to ys Center / * Land purchased November 2019 for $31mm *Plan to redevelop as a nine-story, fully amenitized residential rental building = Approximately 119,000 rentable square feet, plus indoor parking * Ex
Slide 17: Proven Access to Accretive Growth Opportunities
Proven Access to Accretive Growth Opportunities Opportunistic, Off-Market Acquisitions, Capability to Close + Asa long-term owner and operator, the Company is highly regarded in the New York City real estate industry + Reputation among broker community for moving expeditiously and being a reliable c
Slide 18: Fully Integrated, Internally Managed Platform
Fully Integrated, Internally Managed Platform +198 employees * Internal capabilities include acquisitions, accounting, finance, leasing, property management and renovation / construction * Efficient, cohesive operation ignificant experience managing complex assets David Bistricer Sam Levinson sard &
Slide 19: Management
Management Expert in New York City Real Estate Investing and Operations Years of Real Estate Experience Real estate investment career focused on New York City David Bistricer Co-Chairman, 42 + Successfully bought and sold the Sony Building Chief Executive Officer + Co-Chairman, Coleman Cable, Inc. (
Slide 20: Seasoned Board of Directors
Seasoned Board of Directors Strong Corporate Governance, Real Estate Expertise, Public Company Experience Years of Real Estate Background Experience Chairman, Douglas Elliman, largest residential broker in New York + President, CEO & Director, Vector Group Ltd. (NYSE: VER) + Vice Chairman, Ladenburg
Slide 21: Seasoned Board of Directors (cont'd)
Seasoned Board of Directors (cont'd) Strong Corporate Governance, Real Estate Expertise, Public Company Experience Years of Experience + Former CFO, Coleman Cable, In. + Former CEO and President, Burns Aerospace Corp. ae + OF eounel,Cozen0'Conno ow frm: former Chairman, Financia Siotasbnceatroup 4 E
Slide 22: Current Capitalization
Current Capitalization Not Dobt and Enterprise Value ($ mm, excopt as noted) Not Debt Total Debt) Less: Cash Net Debt prise Value Diluted Shares Outstanding (mm) Price per Share Equity Market Capitalization Plus: Total Debt Less: Cash Enterprise Value Dividend Yield (@ $0.095/share quarterly dividen
Slide 23: Investment Highlights
Investment Highlights Only Pure-Play New York City Area REIT Focus on stable multifamily asset class poised to take advantage of COVID-19 Pandemic Recove Portfolio with Significant Upside Potential Acquire high-quality, diverse New York City real estate at a discount to private market value, with op