Clipper Realty Inc. Segments Disclosure

9. Segment Reporting

 

The Company is a New York City real estate investment trust that is focused on developing, redeveloping and operating properties in the commercial and residential space.

 

Our Chief Operating Decision Maker (“CODM”), represented by our Co-Chairman and Chief Executive Officer, reviews the results in which the revenue and Income from Operations is divided between the commercial and residential performance. This metric enables the CODM to evaluate how the business is growing, as revenue is the key driver of growth. Additionally, the CODM uses segment income (loss) to allocate resources in the annual budgeting and forecasting process. The CODM considers budget to actual variances when making decisions about allocating capital to each segment.

 

The Company has classified its reporting segments into commercial and residential rental properties. The commercial reporting segment includes the 141 Livingston Street property and portions of the 250 Livingston Street, Tribeca House, Dean Street and Aspen properties. The residential reporting segment includes the Flatbush Gardens property, the Clover House property, the 10 West 65th Street property, the 1010 Pacific Street property and portions of the 250 Livingston Street, Tribeca House, Dean Street and Aspen properties.

 

Presented below are reconciliations of the reportable segment total revenues to the consolidated revenues, the reportable segment total operating expenses to consolidate operating expenses, the reportable income from operations to the consolidated income from operations, the segment and consolidated income from operations to segment and consolidated net income(loss), the reportable segment assets to the consolidated assets, the reportable segment interest expense to the consolidated interest expense and the reportable segment capital expenditures to the consolidated capital expenditures.

 

Year ended December 31, 2025		Commercial				Residential				Total
Rental income		$	34,338			$	118,864			$	153,202
Total revenues			34,338				118,864				153,202
Property operating expenses			4,738				33,248				37,986
Real estate taxes and insurance			12,048				18,346				30,394
General and administrative			3,123				12,400				15,523
Transaction pursuit costs			(1	)			(9	)			(10	)
Depreciation and amortization			6,201				25,126				31,327
Loss on impairment of long-lived assets			-				33,780				33,780
Total operating expenses			26,109				122,891				149,000
Litigation Settlement and other			-				(26	)			(26	)
Income from operations		$	8,229			$	(4,053	)		$	4,176
Loss on disposal of long-lived assets			-				(857	)			(857	)
Interest Expense			(12,438	)			(40,589	)			(53,027	)
Loss on modification/extinguishment of debt			(2,627	)			-				(2,627	)
Income (Loss)		$	(6,836	)		$	(45,499	)			(52,335	)

 

 

Year ended December 31, 2024		Commercial				Residential				Total
Rental income		$	38,902			$	109,873			$	148,775
Total revenues			38,902				109,873				148,775
Property operating expenses			4,557				29,604				34,163
Real estate taxes and insurance			10,926				18,844				29,770
General and administrative			2,543				11,609				14,152
Depreciation and amortization			6,013				23,879				29,892
Total operating expenses			24,040				83,935				107,977
Litigation Settlement, other			-				(269	)			(269	)
Income from operations		$	14,862			$	25,669			$	40,529
Interest Expense, Net			(10,155	)			(36,956	)			(47,111	)
Income (Loss)		$	4,707			$	(11,287	)		$	(6,582	)

 

The Company’s total assets by segment are as follows, as of:

 

		Commercial				Residential				Total
December 31, 2025		$	307,926			$	926,393			$	1,234,319
December 31, 2024			315,296			$	971,668			$	1,286,965

 

The Company’s interest expense by segment for the years ended December 31, 2025 and 2024, is as follows:

 

		Commercial				Residential				Total
Year ended December 31, 2025		$	12,438			$	40,589			$	53,027
Year ended December 31, 2024			10,155			$	36,956			$	47,111

 

The Company’s capital expenditures by segment for the years ended December 31, 2025 and 2024, are as follows:

 

		Commercial				Residential				Total
Year ended December 31, 2025		$	2,220			$	27,342			$	29,562
Year ended December 31, 2024			4,148			$	65,582			$	69,730

 

The Company allocates assets, expenses and capital expenditures to each reportable segment by building. For those buildings that are shared between the segment’s allocations are done based on the percentage relative square footage of the building that is used to generate revenue for the segment. All corporate costs are allocated based on the percentage of square footage of the segment.