Good afternoon and thank you for joining us for the first quarter 2026 Clipper Realty Inc earnings conference call. Participating with me on today's call are David Vistesser, Co-Chairman of the Board and Chief Executive Officer, JJ Vistesser, Chief Operating Officer, and Larry Kreider, Chief Financial Officer. Please be aware that statements made during the call that are not historical may be deemed forward-looking statements and actual results may differ materially from those indicated by such forward-looking statements. These statements are subject to numerous risks and uncertainties, including those disclosed in the company's 2025 annual report on Form 10-K and 2026 first quarter report on Form 10-Q just filed today, which is accessible at www.sdc.gov and on our website. As a reminder, the forward-looking statements speak only as of the date of this call, May 14, 2026, and the company undertakes no duty to update them. During this call, management may refer to certain non-GAAP financial measures, including adjusted funds from operations, or ASFO, adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, and net operating income, or NOI. Please see our press release, Supplemental Financial Information, and Form 10-Q posted today for a reconciliation of these non-GAAP financial measures with most directly comparable gap financial measures. For that, I will now turn the call over to our core chairman and CEO, David Bissister.

Thank you, Lawrence. Good afternoon, and welcome to the first quarter of 2026 earnings call for Clipper Realty. I will provide an update on business performance and some new developments, after which JJ will discuss property level activities, including leasing performance, and I will speak to our quarterly financial performance. We will then take your questions. I am pleased to report that our residential properties continue to perform very well due to the continued high residential rental demand, generating excellent cash flow. Overall rents are generally at all-time highs and continue to increase, and we are nearly fully leased. In the first quarter, new free market leases exceeded prior rent by over 7%, generally consistent with last quarter across the entire portfolio, as Jay Chevy will detail. We are also in the third quarter of the initial lease-up at Prospect House Development 953 Dean Street. We bought the property online in August, on time and on budget, having placed a bridge loan last quarter that will provide funds through stabilization. We are presently fully leased with free market rents of about $78 per foot. This project was a ground-up development in Brooklyn where we bought the land in 2021 and built a 9-story fully amortized residential building with 160,000 residential rentable square feet, 240 units, 70% of which are free market and 30% are affordable. 31 parking spaces and 19,000 commercial rental square feet. At 250 Livingston Street, after New York City vacated mid-August in 2025, and as more fully described in the Thank You press release, we notified the lender that we do not intend to support the property's ongoing operations, and debt service had ceased, making payments of interest in real estate taxes. Additionally, on May 26, he began receiving reimbursement of expenses paid by us from the lender. We are also discussing a consent and cooperation agreement with the lender to sell the property loan, although there can be no insurance and the agreement will be finalized. I will now call on JJ to take over this call.

Thank you. I am pleased to report that residential leasing at all our stabilized properties is very strong and they are 99% leased overall. Rents are at record levels and continuing to increase. Overall, new rental rates at residential free market properties in the first quarter exceeded previous rents by 7% and renewals by 5%. We expect demand for our residential leasing product to remain strong in the foreseeable future as the overall rental housing supply in New York City remains constrained and new development is discouraged. First, our residential free market rents are now at record highs in the first quarter. Chebeca House had lease occupancy of 99% overall rent per foot of $90 per foot and new rents at $92 per foot. The Clover House property had occupancy of 99%, average overall rents of $90 per foot and new leases at $95 per foot. Our recently completed Pacific House property consisting of a blend of free market and rent stabilized tenants, has leased occupancy of 98% and pre-market rents of $66,000 per foot on new leases. Our Aspen property continues to perform at record levels with average occupancy of above 98% and new rents 8% higher compared to previous leases. We have nearly completed leasing at the newly completed Prospect House Ground of Development on 953 Dean Street with pre-market rents at $78 per foot. Rent collections versus buildings across our portfolio remain strong the overall collection rate in the first quarter for all free market residential properties was approximately 100 percent looking ahead we remain focused on optimizing occupancy pricing and expenses across the business to best position ourselves for growth i will now turn the call over to larry who will discuss our financial results thank you jj our results this quarter versus last year reflect the effects of four items worthy of note namely the termination of the new york City lease at the 250 Livingston Street office property on August 23, 2025.

The initial lease up of results at Prospect House placed in service August 1, 2025, reflecting excess of expenses over limited but growing revenue. The absence of results from the 10 West 65th Street property sold in May 2025, and the settlement cost of litigation regarding historical payroll practices at all of our properties. I refer to the remaining properties as the ongoing stabilized properties. Overall, we had revenues of $38.1 million versus $39.4 million last year, a decrease of $1.3 million, NOI of $20.1 million this quarter versus $21.7 million last year, a decrease of $1.6 million, and AFFO of $2.3 million this quarter versus $8 million last year, a decrease of $5.7 million. The following details these results. For revenue, residential properties reflect a $2.7 million or 9% increase due to the excellent residential leasing, as J.J. noted above. This consisted of a $2 million increase from ongoing stabilized residential properties, a $1.7 million increase from the third full quarter of initial leasing at the Prospect House property, lest a $1.1 million decrease from the absence of the 10 West 65th Street property sold in May of 2025. For office properties, revenues reflect a $4 million decrease, consisting of a $4.2 million decrease from the New York City lease termination of 250 Livingston Street, partially offset by a $0.2 million increase from new retail leases at the Tribeca House and Aspen properties. For NOI, the $1.6 million NOI decrease represents a $1.8 million or 10% increase from ongoing stabilized properties, a $1.3 million increase from the inclusion of Prospect House this quarter, less a $600,000 decrease from the absence of the 10 West 65th Street property sold in May, and a $5.8 million decrease from the New York City lease termination at 250 Livingston Street. And for AFFO, the $5.8 million AFFO decrease reflects a $1.2 million or 18% increase from ongoing residential properties, a $1.2 million decrease from the inclusion of Prospect House due to full expenses as it completes lease-up, and a $0.1 million increase from the absence of the 10 West 65th Street property, sold in May, and finally a $5.8 million decrease from the 250 Livingston Street property, resulting from the New York City lease termination. With regard to our balance sheet, we have $26.1 million of unrestricted cash and $28.6 million of restricted cash at the end of the quarter. As of the end of the quarter, our operating debt is 89% fixed at an average rate of 3.87% and an average duration of 3.4 years. Our debt instruments are non-recourse, subject to limited standard carve-outs and not cross-collateralized. We finance our portfolio on an asset basis. And finally, today we are announcing a dividend of $0.9.5 per share for the first quarter, the same amount as last quarter. The dividend will be paid on June 4, 2026 to shareholders of record on May 26, 2026. Let me now turn the call back to David for concluding remarks.

Thank you, Lawrence. We remain focused on efficiently operating the portfolio. We look forward to full capitalization of the Park Street House property, resolving the 250 Livingston Street capitalization and the whole possibility that may present themselves there was no way to open the line for questions.

Thank you. At this time, we'll be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Once again, please press star 1 on your phone at this time if you wish to ask a question. And please hold while we poll for questions.

And the first question today is coming from Buck Horn from Raymond James. buck your line of size hey good afternoon guys um just quick question on flatbush gardens if you could speak to that property for a few minutes just um thinking of you know operationally um you know i guess how are things going in terms of um you know uh being able to uh navigate the potential for uh the i guess the rent freeze act that could be in place going forward and or um funding the CapEx for that property in the quarters ahead. And I guess I'm also thinking ahead, lastly, to any possibility for refinancing the mortgage on Flatbush ahead of the interest rate reset in 2027. Any comments would be helpful there.

Thank you for your question. I think the property is performing as planned. You know, a lot of planning went into that Article 11 that we have there, and it's basically doing as it's supposed to do. we will be looking at you know all possibilities of refinancing it's got a ways to go yet but obviously we will look at what the possibilities are and as soon as we come to some kind of conclusion we'll let you know obviously again buck i might add you could look to our supplemental and you'll see you could see you know our net operating income um and that would give you a sense of how the property is doing, which is pretty well.

One quick follow-up. It appears there's still, I guess, some interest in default fees owed related to $250 Livingston, so I believe it's in the ballpark of $7.2 million.

Is that, are you planning on paying that cash out over the next quarter or two, or are there any additional fees to be aware of? well no i think we as we said we we indicated to the bank that we were no longer funding the operation and we're not paying any interest right now including default fees and we're as we said we're we're negotiating a consent and cooperation agreement in connection with potentially selling the debt. So right now there has been no cash paid out on that. All right. Thanks, guys.

Thank you.

Thank you. And once again, it's star one if you have any questions at this time. There were no other questions at this time. I'd now like to hand the call over to David Bustrisser, CEO at Clipper Realty, for closing remarks.

Thank you for joining us today. We look forward to speaking with you again in the future.

Thank you. This does conclude today's conference. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.