Note 5 - Rental Income Under Operating Leases

12 Months Ended

Dec. 31, 2025

5. Rental Income under Operating Leases

The Company’s commercial properties are leased to commercial tenants under operating leases with fixed terms of varying lengths. As of December 31, 2025, the minimum future cash rents receivable (excluding tenant reimbursements for operating expenses) under non-cancelable operating leases for the commercial tenants in each of the next five years and thereafter are as follows:

2026	$	5,279
2027		5,323
2028		5,378
2029		5,338
2030		5,285
Thereafter		36,068
Total	$	62,671

The Company has commercial leases with the City of New York that comprised approximately 18% and 22% of total revenues for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, Kings County Court, the Human Resources Administration, and the Department of Environmental Protection, all of which are agencies of the City of New York, occupied all 206,084 of rentable square feet at 141 Livingston Street and terminated its lease and vacated all 342,496 rentable square feet of commercial space at our 250 Livingston Street. The commercial rental space at 141 Livingston is occupied subject to hold-over rent provisions in the lease that expired on December 27, 2025.

Clipper Realty Inc. 10-K