Note 5 - Rental Income Under Operating Leases

3 Months Ended

Mar. 31, 2026

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 March 31, 2026, 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	$	3,963
2027		5,323
2028		5,378
2029		5,338
2030		5,285
Thereafter		36,069
Total	$	61,356

The Company had commercial leases with the City of New York that comprised approximately 11% and 21% of total revenues for the three months ended March 31, 2026 and 2025. As of March 31, 2026, the Kings County Court occupied all 206,084 of rentable square feet at 141 Livingston Street subject to hold-over rent provisions in the lease that expired on December 27, 2025. The City of New York lease at 250 Livingston Street was terminated as August 27, 2025.

Clipper Realty Inc. 10-Q