Form 4: Clipper Realty CEO David Bistricer Awarded Long-Term Incentive Plan Units

David Bistricer, Co-Chairman and CEO of Clipper Realty Inc., receives Long Term Incentive Plan Units (LTIP Units) that will vest in the coming years.

Summary

• David Bistricer, Co-Chairman and CEO of Clipper Realty Inc., was granted Long Term Incentive Plan Units (LTIP Units) on March 12, 2025.
• These LTIP Units are a class of units of Clipper Realty L.P., a direct subsidiary of Clipper Realty Inc.
• 66,079 LTIP Units will vest on January 1, 2026, and 117,841 LTIP Units will vest on January 1, 2028.
• Upon vesting, these LTIP Units are convertible into an equivalent number of limited partnership units (OP Units) of the Operating Partnership.
• Each OP Unit is redeemable for cash equal to the price of a share of Clipper Realty's common stock or, at the Company's election, one share of its common stock.
• Following the transaction, Bistricer directly owns 1,414,716 shares of common stock and will have the right to convert the LTIP units into 1,532,557 shares of common stock upon vesting.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of LTIP units is a standard practice and indicates confidence in the company's future performance. It aligns management's interests with shareholders.

Positives

• The granting of LTIP Units aligns the CEO's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and commitment from the CEO.

Future Outlook

The LTIP Units are designed to incentivize long-term performance, suggesting the company anticipates continued growth and value creation over the vesting periods.

Industry Context

Granting LTIP units is a common practice in the real estate industry to align executive compensation with long-term shareholder value. This aligns with industry standards for incentivizing key executives.

Comparison to Industry Standards

• Many REITs and real estate companies use LTIPs as part of their executive compensation packages.
• Companies like Boston Properties (BXP) and Equity Residential (EQR) also utilize similar long-term incentive plans to retain and motivate their top executives.
• The specific terms and vesting schedules vary, but the underlying principle of aligning executive compensation with shareholder value is consistent across the industry.

Stakeholder Impact

• Shareholders: The LTIP Units aim to align management's interests with long-term shareholder value.
• Employees: The incentive plan may contribute to a positive work environment by incentivizing leadership to achieve company goals.

Key Dates

Keywords

LTIP Units, incentive plan, David Bistricer, Clipper Realty, CLPR, CEO, stock options, Form 4, beneficial ownership