Clipper Realty Rises 32% in 6 Months: What Should Investors Do?

Zacks11-29

Shares of Clipper Realty, Inc. CLPR have been on a remarkable run, with its shares climbing 32% over the past six months. The REIT has significantly outperformed the Zacks REIT and Equity Trust - ...

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The REIT has significantly outperformed the Zacks REIT and Equity Trust - ...</p>\n\n<a href=\"https://finance.yahoo.com/news/clipper-realty-rises-32-6-170800158.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Clipper Realty Rises 32% in 6 Months: What Should Investors Do?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nClipper Realty Rises 32% in 6 Months: What Should Investors Do?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-29 01:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/clipper-realty-rises-32-6-170800158.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Clipper Realty, Inc. CLPR have been on a remarkable run, with its shares climbing 32% over the past six months. The REIT has significantly outperformed the Zacks REIT and Equity Trust - ...</p>\n\n<a href=\"https://finance.yahoo.com/news/clipper-realty-rises-32-6-170800158.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CLPR","symbol_name":"Clipper Realty Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/clipper-realty-rises-32-6-170800158.html","article_id":"2487444023","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/CR2yFbYpuqpt3oeRxVj68g--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/58c71031fa5f8be56beb2ad29b36efdc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487444023","pubTimestamp":1732813680,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of Clipper Realty, Inc. CLPR have been on a remarkable run, with its shares climbing 32% over the past six months. The REIT has significantly outperformed the Zacks REIT and Equity Trust - Other industry’s growth of 20.1% and the S&P 500 composite’s rise of 12.6% over the same time frame.This REIT, which is into residential & office real estate, has also left its peers like Gladstone Commercial GOOD and Peakstone Realty Trust PKST in the dust, with these stocks only gaining 25.5% and 7.1%, respectively, in the same period.The company is also well-poised for long-term growth, backed by its development efforts. After a year of full operation, Pacific House at 1010 Pacific Street in Brooklyn has achieved full stabilization and is positively contributing to cash flow. The property is 100% leased and is delivering the projected 7% capitalization rate. At its Dean Street ground-up development, construction is proceeding ahead of schedule. Management is confident of an on-time completi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CLPR":"Clipper Realty Inc.","BK4585":"ETF&股票定投概念","BK4160":"多样化房地产投资信托v","BK4223":"办公室房地产信托","GOOD":"格拉德斯通商业","PKST":"PEAKSTONE REALTY TRUST","BK4211":"区域性银行","BK4215":"住宅房地产投资信托","ISBC":"投资者银行"},"translate_title":"Clipper Realty 6个月内上涨32%：投资者应该怎么做？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GOOD":1,"ISBC":1,"PKST":1,"CLPR":0.9},"content_text":"Shares of Clipper Realty, Inc. CLPR have been on a remarkable run, with its shares climbing 32% over the past six months. The REIT has significantly outperformed the Zacks REIT and Equity Trust - Other industry’s growth of 20.1% and the S&P 500 composite’s rise of 12.6% over the same time frame.\nThis REIT, which is into residential & office real estate, has also left its peers like Gladstone Commercial GOOD and Peakstone Realty Trust PKST in the dust, with these stocks only gaining 25.5% and 7.1%, respectively, in the same period.\nSix-Months Price Performance\nImage Source: Zacks Investment Research\nWith this Brooklyn, NY-based REIT riding high, individuals may rush to add it to their portfolio. However, before making any hasty decision, it would be prudent to take a look at the reasons behind the surge, the stock’s growth prospects, as well as risks of investing in the same. The idea is to help investors make a more insightful decision.\nRiding High: What’s Driving CLPR's Growth?\nClipper Realty enjoys a robust property base in the New York metropolitan area. The company engages in the acquisition, ownership, management, operation and repositioning of multifamily residential and commercial properties. Its substantial exposure to portfolios in Manhattan and Brooklyn has offered ample scope to enhance its top line.\nDespite the overall choppiness in the office real estate sector, Clipper Realty is well-poised for growth, given tenants’ healthy demand for office spaces with class-apart amenities. In the third quarter of 2024, the company’s commercial property leases constituted approximately 26% of total revenues. Moreover, it has commercial leases with the City of New York, a municipal corporation acting through the Department of Citywide Administrative Services, which accounted for approximately 22% of total revenues reported in the third quarter of 2024.\nHealthy demand for residential rental units in its markets amid favorable demographic trends is likely to benefit the company in the upcoming quarters. In the third quarter of 2024, the company’s residential rental property leases constituted approximately 74% of total revenues. Residential revenues increased 9.2% year-over-year in the quarter, driven by higher rental rates at all residential properties and higher occupancy. Management expects leasing to remain strong in the foreseeable future as demand remains high and the overall rental housing supply remains constrained.\nThe company is also well-poised for long-term growth, backed by its development efforts. After a year of full operation, Pacific House at 1010 Pacific Street in Brooklyn has achieved full stabilization and is positively contributing to cash flow. The property is 100% leased and is delivering the projected 7% capitalization rate. At its Dean Street ground-up development, construction is proceeding ahead of schedule. Management is confident of an on-time completion to capture the 2025 leasing season.\nMoreover, the interest rate cuts announced by the Federal Reserve in recent times have played a catalyst for this company. Lower interest rates are likely to boost REIT stock prices, including CLPR, for two main reasons. Firstly, companies can borrow at lower costs, which enhances the ability to purchase or develop real estate. Secondly, REITs’ dividend yields grab investors’ attention more than yields on fixed-income and money market accounts in times like this.\nNavigating Near-Term Challenges for Clipper Realty\nHowever, Clipper Realty has its share of challenges. With persistent macroeconomic uncertainty and a hybrid working environment, it is expected that near-term demand for office spaces will remain choppy in this market.\nAmid higher leasing costs and an elevated supply of office properties, it will be challenging for the company to backfill tenant move-outs and vacancies in the near term.\nCLPR Stock is Trading at a Discount\nFrom a valuation perspective, we note that with the recent rally, CLPR is trading at a forward 12-month price-to-FFO, of 9.16X. It is at a discount to the industry average of 16.89X and lower than its one-year median of 12.09X and one-year high of 18.00X.\nAlthough Clipper Realty stock is currently trading at a discount compared to its industry peers, this valuation disparity might not be as favorable as it seems. The lower price could indicate underlying issues rather than representing a clear investment opportunity.\nForward 12 Month Price-to-FFO (P/FFO) Ratio\nImage Source: Zacks Investment Research\nWhat Should Investors Do?\nConsidering the pros and cons of CLPR, as well as valuation, we conclude that investors interested in buying this stock should wait for a more visible improvement in macroeconomic conditions and demand for office properties and hang on for a better entry point.\nHowever, those who already own this stock may stay invested as the company's strong residential leasing, development efforts and interest rate cut augur well for growth. The stock’s Zacks Rank #3 (Hold) supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nGladstone Commercial Corporation (GOOD) : Free Stock Analysis Report\nClipper Realty Inc. (CLPR) : Free Stock Analysis Report\nPeakstone Realty Trust (PKST) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487444023"}