Clipper Realty (NYSE:CLPR) Financial Strength

: 2 (As of Mar. 2023)

View and export this data going back to 2017. Start your Free Trial

Clipper Realty has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Clipper Realty Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Clipper Realty's Interest Coverage for the quarter that ended in Mar. 2023 was 0.68. Clipper Realty's debt to revenue ratio for the quarter that ended in Mar. 2023 was 8.75. As of today, Clipper Realty's Altman Z-Score is 0.16.

Competitive Comparison

For the REIT - Residential subindustry, Clipper Realty's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Clipper Realty Financial Strength Distribution

For the REITs industry and Real Estate sector, Clipper Realty's Financial Strength distribution charts can be found below:

* The bar in red indicates where Clipper Realty's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Clipper Realty Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Clipper Realty's Interest Expense for the months ended in Mar. 2023 was $-10.1 Mil. Its Operating Income for the months ended in Mar. 2023 was $6.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $1,178.0 Mil.

Clipper Realty's Interest Coverage for the quarter that ended in Mar. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	6.914	/	-10.135
	=	0.68

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Clipper Realty Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Clipper Realty's Debt to Revenue Ratio for the quarter that ended in Mar. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Mar. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	1178.027)	/	134.668
	=	8.75

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Clipper Realty has a Z-score of 0.16, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.16 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Clipper Realty (NYSE:CLPR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Clipper Realty has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Clipper Realty Financial Strength Related Terms

Thank you for viewing the detailed overview of Clipper Realty's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

Clipper Realty (NYSE:CLPR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Clipper Realty Inc (NYSE:CLPR) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

4611 12th Avenue, Suite 1L, Brooklyn, NY, USA, 11219

Website

https://www.clipperrealty.com

Clipper Realty Inc is a self-administered and self-managed real estate company. It acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. It has classified its reporting segments into commercial and residential rental properties. Clipper derives its revenue mostly from a Residential segment.

Executives

Michael Charles Frenz	officer: Chief Financial Officer	C/O CLIPPER REALTY INC, 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Howard M Lorber	director	4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Roberto Angelo Verrone	director	200 HIGHLAND AVENUE, SHORT HILLS NJ 07078
Robert Jay Ivanhoe	director	GREENBERG TRAURIG, LLP, 200 PARK AVENUE, NEW YORK NY 10166
Richard N Burger	director	P.O. BOX 28543, SCOTTSDALE AZ 85255
Harmon Spolan	director	OOZEN O CONNOR, 1900 MARKET ST 4TH FL, PHILADELPHIA PA 19103
Lawrence E Kreider	officer: Chief Financial Officer	600 GRANT STREET, SUITE 900, DENVER CO 80203
Sam Levinson	director, 10 percent owner	9190 PRIORITY WAY WEST DRIVE, SUITE 300, INDIANAPOLIS IN 46240
David Bistricer	director, 10 percent owner, officer: Co-Chairman and CEO	PO BOX 407, BROOKLIN NY 11219
Jacob Bistricer	officer: Chief Operating Officer	4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Jacob Schwimmer	officer: Chief PM Offcier	1738 47TH STREET, BROOKLYN NY 11204