Clipper Realty Inc.

AI-generated fair value estimate for this company.

Method: REIT-appropriate AFFO/DDM valuation (not a standard unlevered FCF DCF): current AFFO run-rate of ~$0.36/share (annualized from Q2 2026 actual AFFO of $0.09/share) and current dividend of $0.38/share annualized, both grown at 4%/yr for years 1-5 and 3%/yr for years 6-10 reflecting NYC multifamily rent growth and resolution of the 250 Livingston Street office vacancy; discounted at a 9.5% cost of equity; terminal value applies a 14x AFFO multiple (comparable NYC multifamily REIT trading range) to year-10 AFFO of ~$0.51/share; PV of 10-yr dividends ~$2.86/share plus PV of terminal value ~$2.87/share = ~$5.73/share fair value; 42.47M shares outstanding, $1.315B total liabilities (mostly non-recourse property mortgages) and $30.8M cash at FY2025 year-end.

Reasoning: Clipper Realty is a NYC multifamily/office equity REIT where GAAP net income is distorted by large non-cash depreciation, so AFFO and dividends rather than unlevered FCF are the right cash-flow base, and a DDM-plus-terminal-multiple structure with a 9.5% discount rate reflects a stabilized, largely rent-regulated NYC residential portfolio and a 14x AFFO exit multiple consistent with where peer NYC multifamily REITs trade.