Company: CLPR
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001437749-25-003988
Chunk: 96

Company: Clipper Realty Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 96
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111                        44,867    
Transaction pursuit costs                                        -                           357    
Loss on modification/extinguishment of debt                      -                         3,868    
Certain litigation-related expenses                            269                           (10   )
Adjusted EBITDA                                            $74,123                       $66,148    
Net Operating Income
 
We believe that NOI is a useful measure of our operating performance. We define NOI as income from operations plus real estate depreciation and amortization, general and administrative expenses, acquisition and other costs, amortization of identifiable intangibles and straight-line rent adjustments to revenue from long-term leases, less gain on termination of lease. We believe that this measure is widely recognized and provides an operating perspective not immediately apparent from GAAP income from operations or net income (loss). We use NOI to evaluate our performance because NOI allows us to evaluate the operating performance of our company by measuring the core operations of property performance and capturing trends in rental housing and property operating expenses. NOI is also a widely used metric in valuation of properties.
 
However, NOI should only be used as an alternative measure of our financial performance. Further, other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to that of other REITs.
 
 59

The following table sets forth a reconciliation of NOI for the periods presented to income from operations, computed in accordance with GAAP (amounts in thousands):
 

                                                               Years ended December 31,             
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                                                 2024                       2023                    
NOI                                                                                                 
Income from operations                                     $40,529                       $33,170    
Real estate depreciation and amortization                   29,892                        28,939    
General and administrative expenses                         14,152                        13,169    
Transaction pursuit costs                                        -                           357    
Amortization of real estate tax intangible                     481                           481    
Amortization of above- and below-market leases                   -                           (18   )
Certain litigation expenses                                    269                             -    
Straight-line rent adjustments                                 251                           214    
NOI                                                        $85,574                       $76,312    
Recent Accounting Pronouncements
 
See Note 2, “Significant Accounting Policies” of our consolidated financial statements included in Item 15 for a discussion of recent accounting pronouncements.