Form 4: Clipper Realty Inc. Director Sam Levinson Acquires 360,987 Long Term Incentive Plan Units

Director Sam Levinson of Clipper Realty Inc. acquired 360,987 Long Term Incentive Plan Units, which are convertible into common stock, on December 12, 2024.

Summary

• Sam Levinson, a director at Clipper Realty Inc., acquired 360,987 Long Term Incentive Plan Units (LTIP Units) on December 12, 2024.
• These LTIP Units are a class of units of Clipper Realty L.P., a subsidiary of Clipper Realty Inc.
• The LTIP Units can be converted into an equivalent number of Operating Partnership Units (OP Units) upon vesting.
• Each OP Unit is redeemable for cash equal to the price of a share of Clipper Realty Inc. common stock or, at the company's election, one share of common stock.
• The LTIP Units vest ratably over a 10-year period, ending on December 12, 2034.
• Following this transaction, Mr. Levinson directly owns 1,371,785 LTIP Units.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction related to executive compensation, which is generally viewed positively as it aligns management interests with shareholders. There are no negative implications.

Positives

• The acquisition of LTIP Units by a director demonstrates alignment of interests with the company's long-term performance.
• The vesting schedule of 10 years encourages long-term commitment from the director.

Future Outlook

The LTIP Units will vest ratably over a 10-year period, indicating a long-term incentive structure for the director.

Industry Context

The use of long-term incentive plans is a common practice in the real estate industry to align management's interests with the long-term performance of the company.

Comparison to Industry Standards

• Many real estate companies use LTIPs to incentivize key personnel, often with vesting periods of 3 to 10 years.
• The structure of LTIPs, convertible into common stock or cash equivalents, is a standard practice in the industry.
• Companies like Boston Properties and Vornado Realty Trust also use similar incentive structures for their executives and directors.

Stakeholder Impact

• The acquisition of LTIP Units by a director can be viewed positively by shareholders as it aligns management's interests with the long-term performance of the company.
• The vesting schedule encourages long-term commitment from the director.

Key Dates

Keywords

LTIP Units, Clipper Realty Inc., Sam Levinson, Director, Incentive Plan, Operating Partnership, OP Units, Beneficial Ownership, SEC Form 4