Source: https://www.clipperrealty.com
FULL DISCLOSURE:
I am not a financial advisor. This post is to provide information and not provide financial product advice. I discuss why I personally chose to invest in a stock, ETF, REIT, investment fund or cryptocurrency (which I have held for over a week) and also share information that is public about the following stock, ETF, REIT, investment fund or cryptocurrency and they are based on my own personal opinion.
I will not blog about any positions of stocks, ETFs or REITS and cryptocurrency which were initiated just within the last 72 hours of posting this blog article.
It is recommended that you should always consider visiting a financial advisor for independent financial advice before making investment decisions.
I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
I am not receiving compensation by the company for this blog post.
I have no working relationship with any company whose stock, ETF, REIT or cryptocurrency mentioned in this blog post. Nor do I have a family member or friend who works with the company.
For today’s REIT post, I am going to post in a REIT which I have invested in, Clipper Realty Inc.
According to the company, “Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with an initial portfolio in Manhattan and Brooklyn. Clipper Realty owns: (i) two neighboring residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, (ii) one residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, (iii) two primarily commercial properties in Downtown Brooklyn (one of which includes 36 residential apartment units), and (iv) one residential/retail rental property at 1955 1st Avenue in Manhattan.”
Clipper Realty Inc. has a market cap of $130.1 million and an enterprise value of $1.2 billion.
Source: schwab.com
The REIT has been around since 2017 and has reached highs of $13.55 and reached two set of lows.
In January through June 2018, the stock fell to the $8. 2018 was a volatile year in addition to the US imposed tariffs towards China and China levying tariffs on US goods.
By February 2020, the market was affected for the entire year due to the Pandemic which brings the stock back to over $8.10 in spring 2021.
Schwab Equity Rankings has Clipper Realty Inc. set at a C, while the CFRA has given this stock a “BUY”.
As of March 2021, the three top owners of CLPR are FMR LLC, BlackRock Inc. and Forward Management LLC.
The company did miss the Zacks Consensus Estimate of $0.11 per share for Q1 FFO. As Zacks did mention that CLPR is now in overbought territory with a Relative Strength Index (RSI) value of 70.78 and issued a warning on April 8th.
Source: schwab.com
The annual dividend is $0.38 ($.010 quarterly) with an annual dividend yield of 4.69%
Dividends have the most part been consistent since 2017, with a special dividend issued in 2018.
Clipper Realty Inc. traded ex-dividend on May 19th, for its quarterly dividend of $0.095, payable on May 27th. As a percentage of CLPR’s recent stock price of $8.25
Before I get into discussion of my interest in investing in Clipper Realty Inc., I wanted to do some looks at the detailed insider trading in the company and most were made in 2020, with the most shares purchased by David Bistricer, co-chairman and CEO of the company who purchased 106,666 shares at the price of $5.73 on May 14th. The last was on December 21st by Director Howard Lorber at 5,369 shares at $6.29.
Executives and Board of Directors received a Long Term Incentive Plan Units in March 2021. With a transaction nature of A – Grant, award or other under Rule 16b-3(d).
Now, let’s discuss the reasoning of why I invested in Clipper Realty Inc.
Source: https://www.tribecahouseny.com
Accord to Clipper Realty Inc., “The Tribeca House properties, purchased in December 2014, consist of two nearly adjacent properties in the Tribeca neighborhood of Manhattan. The Company manages the two related properties as a single unit and the residents of both properties share all services and amenities. They comprise approximately 480,000 square feet of leasable area with 505 residential apartment units and approximately 77,200 square feet of retail space (comprising approximately 53,000 square feet of street-level and mezzanine-level retail space and an externally managed garage)”.
I am looking to see as we move to some normalcy in with a vaccinated society and people are now able to go out and many are looking into real estate or renting an apartment, that Clipper Realty Inc.’s properties, Tribeca House on 50 Murray and 53 Park Place will be able to rent out its occupancy for the 50 Murray location as they currently have seven availabilities, while the Park Place has three.
The company also has the Flatbush Gardens property complex purchases back in 2005, the Aspen property on 1955 1st Avenue purchased back in 2016, the 141 Livingston Street Property in Downtown Brooklyn purchased back in 2002, the 250 Livingston Street Property purchased back in 2002 and the Columbia Heights Property purchased back in 2017.
My impression of these locations is that they are fantastic apartment assets and are about 85% of the company, with the other 15% are in non-apartment, office space.
As a diehard New York Yankees fan, my love for New York is always hopeful. As people are going out to eat, more people are being allowed to go to sporting events, people getting to enjoy a bit of life that we have missed out on in 2020. And I have hope for real estate in New York, especially these luxury apartments.
In today’s article of “Apartment Marketing in a Post-Pandemic World” on Multi-Housing News: “The demand for affordable housing is not at the whim of the larger economic market—if anything, it has increased during this time of economic uncertainty,” Susan Camerata, CFO at Wavecrest Management.
Am I basing my investing in CLPR based on mere hope? Quite possibly. I am not an erudite when it comes to real estate or real estate in New York City. With the upcoming announcement of the May jobs report and the Federal Reserve’s forthcoming monetary policy decisions, I know what’s happening now is a result of a pandemic that is unprecedented in modern times.
According to CRBE, “One year after Covid 19 ground life in NYC to a halt, there are ubiquitous signs of economic recovery and civic health. An accelerating immunization campaign stemmed a rising infection rate in February and permitted the city to accelerate its reopening plans in March, resulting in busier streets and subways. On March 11, the American Rescue Plan was signed into law, promising $6 billion in direct financial aid to NYC and an additional $6.5 to the MTA ensuring that critical public services and robust transit schedules will be maintained in 2021. The receding virus and promise of federal assistance are expected to stiffen the region’s recovery which is showing promising signs of acceleration”.
And at its current price and my hope for things to look better for the apartment market in the Big Apple for the near future, I am willing to invest in Clipper Realty Inc.REIT for the long term.
