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Veris Residential, Inc. Reports First Quarter 2024 Results

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Veris Residential, Inc. reported first-quarter 2024 results, showing improvements in financial performance and operational metrics. The company achieved positive Same Store NOI growth, secured a new credit facility, and raised guidance for the year. Despite challenges, they managed to enhance liquidity, financial flexibility, and shareholder value. The company also received recognition for its ESG efforts and sustainability initiatives.
Veris Residential, Inc. ha riportato i risultati del primo trimestre del 2024, evidenziando miglioramenti nelle prestazioni finanziarie e nei parametri operativi. La società ha ottenuto una crescita positiva del NOI degli stessi negozi, ottenuto una nuova linea di credito e migliorato le previsioni per l'anno. Nonostante le sfide, è riuscita a migliorare la liquidità, la flessibilità finanziaria e il valore per gli azionisti. L'azienda ha inoltre ricevuto riconoscimenti per i suoi sforzi nei confronti dell'ESG e delle iniziative di sostenibilità.
Veris Residential, Inc. informó los resultados del primer trimestre de 2024, mostrando mejoras en el rendimiento financiero y en los métricos operativos. La compañía logró un crecimiento positivo en el NOI de tiendas comparables, aseguró una nueva facilidad de crédito y elevó las proyecciones para el año. A pesar de los desafíos, lograron mejorar la liquidez, la flexibilidad financiera y el valor para los accionistas. Además, la empresa recibió reconocimientos por sus esfuerzos en ESG y las iniciativas de sostenibilidad.
Veris Residential, Inc.는 2024년도 1분기 실적을 보고하였으며, 재무 성과와 운영 지표에서 개선을 보였습니다. 회사는 동일 매장 NOI 성장에서 긍정적인 성과를 달성하고, 새로운 신용 시설을 확보했으며, 연간 예상치를 상향 조정하였습니다. 도전에도 불구하고, 그들은 유동성, 재무 유연성 및 주주 가치를 향상시킬 수 있었습니다. 또한 회사는 ESG 노력과 지속 가능한 활동에 대한 인정을 받았습니다.
Veris Residential, Inc. a rapporté les résultats du premier trimestre de 2024, montrant des améliorations dans les performances financières et les mesures opérationnelles. L'entreprise a réalisé une croissance positive du NOI des mêmes magasins, sécurisé une nouvelle facilité de crédit, et relevé ses prévisions pour l'année. Malgré les défis, ils ont réussi à améliorer la liquidité, la flexibilité financière et la valeur pour les actionnaires. L'entreprise a également reçu des reconnaissances pour ses efforts ESG et ses initiatives de durabilité.
Veris Residential, Inc. berichtete über die Ergebnisse des ersten Quartals 2024 und zeigte Verbesserungen bei den finanziellen Leistungen und den betrieblichen Kennzahlen. Das Unternehmen verzeichnete ein positives Wachstum des same Store NOI, sicherte sich eine neue Kreditlinie und hob die Prognosen für das Jahr an. Trotz Herausforderungen konnten sie die Liquidität, die finanzielle Flexibilität und den Shareholder-Wert verbessern. Das Unternehmen erhielt auch Anerkennung für seine Bemühungen im Bereich ESG und Nachhaltigkeitsinitiativen.
Positive
  • Positive: Same Store NOI growth of 14.2% year-over-year, reflecting strong operational performance.
  • Positive: Secured a new $500 million credit facility and term loan package, enhancing liquidity and financial flexibility.
  • Positive: Raised 2024 guidance due to positive earnings impact from new financing strategy and debt reduction.
  • Positive: Earned highest Online Reputation Assessment (ORA®) Score of REITs in the United States.
  • Positive: Achieved highest ISS ESG Corporate Score of real estate companies in the United States.
  • Positive: Received multiple awards for ESG efforts, including Gold Green Lease Leader and awards from the International WELL Building Institute.
  • Negative: Net Loss per Diluted Share increased from $(0.06) in Q4 2023 to $(0.04) in Q1 2024.
  • Negative: Same Store Blended Rental Growth Rate decreased from 10.2% in Q1 2023 to 4.6% in Q1 2024.
  • Negative: Net Debt increased from $1,714,800 in Q4 2023 to $1,799,318 in Q1 2024.
  • Negative: TTM Net Debt to EBITDA ratio increased from 11.9x in Q1 2023 to 12.0x in Q1 2024.
Negative
  • None.

Insights

The disclosed financial metrics suggest a directional improvement in Veris Residential's performance, with a decline in net loss and an increase in Core FFO (Funds From Operations) and Core AFFO (Adjusted Funds From Operations). The steady dividend amidst these figures demonstrates a commitment to returning shareholder value while signaling confidence in the company's cash flow stability.

The sale of non-strategic assets is a noteworthy move, potentially indicating a strategic pivot or a focus on optimizing the asset portfolio for better returns. Such sales not only bolster liquidity but may also allow the company to redeploy capital more effectively - a positive sign for future growth prospects.

Securing a $500 million revolving credit facility in a tough credit environment is a significant feat. It improves the company's liquidity and financial flexibility, which is critical for navigating uncertainty and investing in growth. The positive adjustment of the company's 2024 guidance reflects management's optimism and the expected positive impact of these strategic initiatives.

From a real estate perspective, the Same Store NOI growth of over 14% is impressive and suggests strong operational efficiency. This is particularly notable given the decrease in Same Store Occupancy, which could reflect broader market conditions or property-specific challenges. The reported blended net rental growth rate of 4.6% indicates increasing revenue per unit, which is a robust sign for underlying property demand and pricing power within their portfolio.

The inclusion of Haus25 and The James in the Same Store pool and their substantial contribution to NOI demonstrates effective asset integration and hints at the potential of newer acquisitions to bolster earnings.

Veris Residential's strong ESG scores and achievements, highlighted by the highest Online Reputation Assessment (ORA®) Score among REITs in the United States and the highest ISS ESG Corporate Score for real estate companies in the country, position the company favorably among socially conscious investors. While ESG factors are increasingly important to investment decisions, they also suggest operational resilience and forward-thinking management that can appeal to a broader investor base seeking sustainable investments.

The company's ESG commitments, including recognitions from the International WELL Building Institute and the US Department of Energy, could also lead to operational cost savings through improved energy efficiency and enhance tenant attraction and retention – indirectly supporting financial performance.

JERSEY CITY, N.J., April 24, 2024 /PRNewswire/ -- Veris Residential, Inc. (NYSE: VRE) (the "Company"), a forward-thinking, environmentally and socially conscious multifamily REIT, today reported results for the first quarter 2024.


Three Months Ended,


March 31, 2024

December 31, 2023

Net Income (Loss) per Diluted Share

$(0.04)

$(0.06)

Core FFO per Diluted Share

$0.14

$0.12

Core AFFO per Diluted Share

$0.18

$0.14

Dividend per Diluted Share

$0.0525

$0.0525

CAPITAL ALLOCATION AND BALANCE SHEET

  • Sold $179 million of non-strategic assets, including the last office asset; two land parcels are currently under binding contract for $28 million.
  • Secured a new $500 million three-plus-one-year term revolving credit facility and term loan package.
  • Combination of proceeds from closed asset sales and new facilities to address all consolidated debt maturities through the end of 2025.
  • Raising 2024 guidance, reflecting positive earnings impact anticipated from new, alternative financing strategy and anticipated debt reduction.

OPERATIONAL PERFORMANCE

  • Same Store multifamily Blended Net Rental Growth Rate of 4.6%.
  • Same Store NOI growth of over 14% YOY and 4% sequentially.
  • Earned highest Online Reputation Assessment (ORA®) Score of REITs in the United States.
  • Achieved highest ISS ESG Corporate Score of real estate companies in the United States.

Mahbod Nia, Chief Executive Officer, commented: "We had a positive start to the year, implementing and advancing a number of value-enhancing operational, capital recycling and balance-sheet-related initiatives, while continuing to deliver strong financial results.

"Despite the challenging credit environment, we were able to secure a $500 million credit facility and term loan from a broad range of lenders, providing us with substantial liquidity, financial flexibility and potential for enhanced earnings, as reflected in our raised guidance. We also unlocked another $145 million of idle equity from non-strategic asset sales while continuing to generate solid operational performance, as evidenced by our Same Store year-over-year NOI growth of 14%. Looking ahead, we are well positioned to execute on our multi-pronged optimization strategy as we seek to continue creating value for our shareholders."


March 31, 2024

March 31, 2023

Same Store Units

7,622

7,622

Same Store Occupancy

94.1 %

95.9 %

Same Store Blended Rental Growth Rate

4.6 %

10.2 %

Average Rent per Home

$3,899

$3,622

SAME STORE PORTFOLIO PERFORMANCE

Haus25 and The James were added to the Same Store pool in 2024. These properties contributed nearly $8.7 million to NOI in the first quarter.

The following table presents a more detailed breakout of Same Store performance:


Three Months Ended March 31,


2024

2023

%

Total Property Revenue

$74,092

$68,063

8.9 %

Controllable Expenses

12,622

12,517

0.8 %

Non-Controllable Expenses

12,083

12,318

(1.9) %

Total Property Expenses

24,705

24,835

(0.5) %

Same Store NOI

$49,387

$43,228

14.2 %

TRANSACTION ACTIVITY

As previously announced, the Company closed on the sales of 2 Campus and The Metropolitan Lofts joint venture for a combined gross price of $40 million, releasing approximately $16 million in net proceeds.

The last office asset in the portfolio, Harborside 5, sold for $85 million, releasing approximately $81 million in net proceeds.

Subsequent to quarter end, 107 Morgan land parcel sold for $54 million, releasing approximately $48 million in net proceeds. An additional $28 million across two land parcels are under binding contract with an expected close in the first half of 2024.

FINANCE AND LIQUIDITY

Virtually all (99.9%) of the Company`s debt is hedged or fixed. The Company`s total debt portfolio has a weighted average rate of 4.4% and weighted average maturity of 3.5 years.


Three Months Ended,

Balance Sheet Metric

March 31, 2024

December 31, 2023

Weighted Average Interest Rate

4.4 %

4.5 %

Weighted Average Years to Maturity

3.5

3.7

Interest Coverage Ratio

1.5x

1.5x

Net Debt

1,714,800

1,799,318

TTM EBITDA

142,543

151,201

TTM Net Debt to EBITDA

12.0x

11.9x

On April 22, 2024, the Company successfully replaced its existing revolving credit facility and term loan package with a new $500 million secured facility package, comprising a $200 million delayed-draw term loan and $300 million revolving credit facility. Both the revolving credit facility and term loan have a three-year term and a one-year extension option. The facility package also has sustainability linked KPIs and includes a $200 million accordion feature.

Proceeds from the facilities will be used to repay existing loans over time as well as for general corporate purposes. No funds were drawn at closing. The Company expects to utilize interest rate caps to partially hedge future drawn funds.

DIVIDEND

The Company paid a dividend of $0.0525 per share on April 16, 2024.

ESG

In the first quarter, Veris Residential earned the highest ISS ESG Corporate Score of all real estate companies in the United States, surpassing all but three real estate companies globally. The Company was also named a Gold Green Lease Leader by the US Department of Energy and secured three awards from the International WELL Building Institute: the WELL Concept Leader Award, Equity Leadership Award, and Commitment and Engagement Award.

GUIDANCE

As a result of the anticipated earnings impact of the Company`s new credit facilities and associated debt reduction, the Company is raising its Core FFO per Share guidance in accordance with the following table:

2024 Guidance Ranges

Low


High

Same Store Revenue Growth

4.0 %

—

5.0 %

Same Store Expense Growth

5.0 %

—

6.0 %

Same Store NOI Growth

2.5 %

—

5.0 %





Core FFO per Share Guidance

Low


High

Net Loss per Share

$(0.38)

—

$(0.34)

Add back: Depreciation per Share

$0.88

—

$0.88

Core FFO per Share

$0.50

—

$0.54

CONFERENCE CALL/SUPPLEMENTAL INFORMATION

An earnings conference call with management is scheduled for Thursday, April 25, 2024, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com/.

The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential first quarter 2024 earnings conference call.

The conference call will be rebroadcast on Veris Residential, Inc.'s website at:
http://investors.verisresidential.com/ beginning at 8:30 a.m. Eastern Time on Thursday, April 25, 2024.

A replay of the call will also be accessible Friday, April 26, 2024, through Sunday, May 26, 2024, by calling (844) 512-2921 (domestic) or (412) 317-6671 (international) and using the passcode, 137343562.

Copies of Veris Residential, Inc.'s first quarter 2024 Form 10-Q and first quarter 2024 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website: Financial Results

In addition, once filed, these items will be available upon request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311

ABOUT THE COMPANY

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.

For additional information on Veris Residential, Inc. and our properties available for lease, please visit http://www.verisresidential.com/.

The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the "10-Q") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings.

We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.

Investors


Media

Anna Malhari


Amanda Shpiner/Grace Cartwright

Chief Operating Officer


Gasthalter & Co.

investors@verisresidential.com


veris-residential@gasthalter.com

Additional details in Company Information.

 

Consolidated Balance Sheet

(in thousands) (unaudited)  



March 31, 2024

December 31, 2023

ASSETS



Rental property



Land and leasehold interests

$463,826

$474,499

Buildings and improvements

2,633,849

2,782,468

Tenant improvements

8,391

30,908

Furniture, fixtures and equipment

105,668

103,613


3,211,734

3,391,488

Less – accumulated depreciation and amortization

(372,241)

(443,781)


2,839,493

2,947,707

Real estate held for sale, net

66,975

58,608

Net investment in rental property

2,906,468

3,006,315

Cash and cash equivalents

112,701

28,007

Restricted cash

25,649

26,572

Investments in unconsolidated joint ventures

118,830

117,954

Unbilled rents receivable, net

1,542

5,500

Deferred charges and other assets, net

45,999

53,956

Accounts receivable

1,671

2,742

Total Assets

$3,212,860

$3,241,046

LIABILITIES & EQUITY



Mortgages, loans payable and other obligations, net

1,853,149

1,853,897

Dividends and distributions payable

5,642

5,540

Accounts payable, accrued expenses and other liabilities

53,839

55,492

Rents received in advance and security deposits

12,234

14,985

Accrued interest payable

6,486

6,580

Total Liabilities

1,931,350

1,936,494

Redeemable noncontrolling interests

9,294

24,999

Total Stockholders' Equity

1,132,231

1,137,478

Noncontrolling interests in subsidiaries:



Operating Partnership

106,544

107,206

Consolidated joint ventures

33,441

34,869

Total Noncontrolling Interests in Subsidiaries

$139,985

$142,075

Total Equity

$1,272,216

$1,279,553

Total Liabilities and Equity

$3,212,860

$3,241,046

 

Consolidated Statement of Operations

(In thousands, except per share amounts) (unaudited) 1



Three Months Ended March 31,

REVENUES

2024

2023

Revenue from leases

$60,642

$56,097

Real estate services

922

911

Parking income

3,745

3,728

Other income

2,031

1,862

Total revenues

67,340

62,598

EXPENSES



Real estate taxes

9,177

9,559

Utilities

2,271

2,063

Operating services

12,570

11,383

Real estate services expenses

5,242

1,943

General and administrative

11,088

10,281

Transaction related costs

516

1,027

Depreciation and amortization

20,117

21,788

Land and other impairments, net

—

3,396

Total expenses

60,981

61,440

OTHER (EXPENSE) INCOME



Interest expense

(21,500)

(22,014)

Interest and other investment income

538

116

Equity in earnings (losses) of unconsolidated joint ventures

254

(68)

Gain (loss) on disposition of developable land

784

(22)

Gain (loss) on sale of unconsolidated joint venture interests

7,100

—

Other income (expense), net

255

1,998

Total other (expense) income, net

(12,569)

(19,990)

Loss from continuing operations before income tax expense

(6,210)

(18,832)

Provision for income taxes

(59)

—

Loss from continuing operations after income tax expense

(6,269)

(18,832)

Income from discontinued operations

252

1,822

Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net

1,548

780

Total discontinued operations, net

1,800

2,602

Net loss

(4,469)

(16,230)

Noncontrolling interest in consolidated joint ventures

495

587

Noncontrolling interests in Operating Partnership of income from continuing operations

523

2,277

Noncontrolling interests in Operating Partnership in discontinued operations

(155)

(241)

Redeemable noncontrolling interests

(297)

(6,366)

Net loss available to common shareholders

$(3,903)

$(19,973)

Basic earnings per common share:



Net loss available to common shareholders

$(0.04)

$(0.27)

Diluted earnings per common share:



Net loss available to common shareholders

$(0.04)

$(0.27)

Basic weighted average shares outstanding

92,275

91,226

Diluted weighted average shares outstanding(6)

100,968

100,526



1

For more details see Reconciliation to Net Income (Loss) to NOI

 

FFO, Core FFO and Core AFFO  

 (in thousands, except per share/unit amounts)



Three Months Ended March 31,


2024

2023

Net loss available to common shareholders

$(3,903)

$(19,973)

Add (deduct):  Noncontrolling interests in Operating Partnership

(523)

(2,277)

Noncontrolling interests in discontinued operations

155

241

Real estate-related depreciation and amortization on continuing operations(1)

22,631

24,129

Real estate-related depreciation and amortization on discontinued operations

668

6,815

Continuing operations: Gain on sale from unconsolidated joint ventures

(7,100)

—

Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net

(1,548)

(780)

FFO(2)

$10,380

$8,155




Add/(Deduct):



Loss from extinguishment of debt, net

—

12

Land and other impairments

—

3,396

 (Gain) Loss on disposition of developable land

(784)

22

Rebranding and Severance/Compensation related costs (G&A)

1,637

1,148

Rebranding and Severance/Compensation related costs (RE Services)

1,526

—

Amortization of derivative premium

904

1,133

Transaction related costs

516

1,027

Core FFO

$14,179

$14,893




Add (Deduct) Non-Cash Items:



Straight-line rent adjustments(3)

25

(1,253)

Amortization of market lease intangibles, net

(7)

(30)

Amortization of lease inducements

7

15

Amortization of stock compensation

3,727

2,877

Non-real estate depreciation and amortization

210

384

Amortization of deferred financing costs

1,242

1,211

Deduct:



Non-incremental revenue generating capital expenditures:



Building improvements

(1,040)

(2,092)

Tenant improvements and leasing commissions(4)

(9)

(352)

Tenant improvements and leasing commissions on space vacant for more than one year

—

(736)

Core AFFO(2)

$18,334

$14,917




Funds from Operations per share/unit-diluted

$0.10

$0.08

Core Funds from Operations per share/unit-diluted

$0.14

$0.15

Dividends declared per common share

$0.0525

—


See Non-GAAP Financial Definitions.

See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.  

 

Adjusted EBITDA and EBITDAre

($ in thousands) (unaudited)



Three Months Ended March 31,


2024

2023

Core FFO (calculated on a previous page)

$14,179

$14,893

Deduct:



Equity in (earnings) loss of unconsolidated joint ventures

(459)

68

Equity in earnings share of depreciation and amortization

(2,724)

(2,576)

Add-back:



Interest expense

21,500

22,836

Amortization of derivative premium

(904)

(1,133)

Recurring joint venture distributions

1,701

1,547

Noncontrolling interests in consolidated joint ventures

(495)

(587)

Redeemable noncontrolling interests

297

6,366

Income tax expense

82

51

Adjusted EBITDA

$33,177

$41,465




Add/(Deduct):



Noncontrolling interests in Operating Partnership of income from continuing operations

(523)

(2,277)

Noncontrolling interests in Operating Partnership in discontinued operations

155

241

Noncontrolling interests in consolidated joint ventures(a)

(495)

(587)

Redeemable noncontrolling interests

297

6,366

Interest expense

21,500

22,836

Income tax expense

82

51

Depreciation and amortization

20,785

28,754

Deduct:



Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net

(1,548)

(780)

Equity in (earnings) loss of unconsolidated joint ventures

(254)

68

Add:



Company's share of property NOI's in unconsolidated joint ventures(1)

7,728

13,381

EBITDAre

$43,824

$48,080

Add:



Loss from extinguishment of debt, net

—

12

Severance and compensation-related costs

1,637

1,148

Transaction related costs

516

1,027

Land and other impairments, net

—

3,396

Gain on disposition of developable land

(784)

22

Amortization of derivative premium

904

1,133

Adjusted EBITDAre

$46,097

$54,818




Net debt at period end(5)

$1,714,800

$1,763,369

Net debt to Adjusted EBITDA

12.9x

10.6x


See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.  

See Non-GAAP Financial Definitions.

a) See Noncontrolling Interests in Consolidated Joint Ventures.  

 

Components of Net Asset Value

($ in thousands)

 


Real Estate Portfolio


Other Assets







Operating Multifamily NOI1

 Total 

 At Share 


Cash and Cash Equivalents2

$142,180

New Jersey Waterfront

$165,056

$140,266


Restricted Cash

25,649

Massachusetts

25,080

25,080


Other Assets

49,212

Other

30,276

22,329


Subtotal Other Assets

$217,041

Total Multifamily NOI

$220,412

$187,676




Commercial NOI3

4,588

3,712


Liabilities and Other Considerations


Total NOI

$225,000

$191,387








Operating - Consolidated Debt at Share

$1,793,947

Non-Strategic Assets


Operating - Unconsolidated Debt at Share

297,806



Other Liabilities

78,201

Non-Strategic Assets Under Binding Contract4


$28,000


Revolving Credit Facility5

—

Estimated Land Value6


187,311


Term Loan5

—

Subtotal Non-Strategic Assets


$215,311


Preferred Units

9,294





Subtotal Liabilities and Other Considerations

$2,179,248











Outstanding Shares7












Diluted Weighted Average Shares Outstanding for 1Q 2024

100,967,737







1

See Multifamily Operating Portfolio page for more details. The Real Estate Portfolio table is reflective of the quarterly NOI annualized.

2

Pro forma cash as of April 22, 2024, for transaction activity that occurred subsequent to quarter end.

3

See Commercial Assets and Developable Land page for more details.

4

Represents the estimated gross price of two land parcels, 6 Becker and 85 Livingston.

5

The prior facility comprised of a $115 million term loan and $60 million revolver was terminated on April 22, 2024. The Company simultaneously secured a $500 million facility comprised of a $300 million revolver and $200 million delayed-draw term loan. The facility has a three-year term with a one-year extension option and a $200 million accordion feature.

6

Based off 4,139 potential units, see Commercial Assets and Developable Land page for more details.

7

Common Shares Outstanding as of March 31, 2024 were 92,385,167.



See Non-GAAP Financial Definitions.

 

Multifamily Operating Portfolio

(in thousands, except Revenue per home)





Operating Highlights




Percentage

Occupied

Average Revenue

per Home

NOI

Debt

Balance


Ownership

Apartments

1Q 2024

4Q 2023

1Q 2024

4Q 2023

1Q 2024

4Q 2023

NJ Waterfront










Haus25

100.0 %

750

91.4 %

94.1 %

$4,788

$4,665

$7,279

$6,884

$343,061

Liberty Towers

100.0 %

648

94.7 %

93.2 %

4,221

4,220

4,665

4,930

265,000

BLVD 401

74.3 %

311

95.0 %

97.4 %

4,134

4,138

2,470

2,427

117,000

BLVD 425

74.3 %

412

95.7 %

95.6 %

3,995

3,987

3,103

3,038

131,000

BLVD 475

100.0 %

523

96.4 %

96.5 %

4,063

4,078

4,675

4,180

165,000

Soho Lofts

100.0 %

377

95.9 %

94.4 %

4,718

4,627

2,905

2,616

158,034

Urby Harborside

85.0 %

762

90.7 %

92.3 %

4,072

4,014

5,318

5,370

185,017

RiverHouse 9

100.0 %

313

94.8 %

96.2 %

4,242

4,148

2,899

2,358

110,000

RiverHouse 11

100.0 %

295

95.9 %

94.6 %

4,405

4,177

2,518

2,140

100,000

RiverTrace

22.5 %

316

94.5 %

95.6 %

3,804

3,711

2,273

2,184

82,000

Capstone

40.0 %

360

96.6 %

95.0 %

4,339

4,379

3,159

2,973

135,000

NJ Waterfront Subtotal

85.0 %

5,067

94.2 %

94.6 %

$4,274

$4,219

$41,264

$39,100

$1,791,112

Massachusetts










Portside at East Pier

100.0 %

181

94.4 %

94.9 %

$3,206

$3,174

$1,159

$1,163

$56,500

Portside 2 at East Pier

100.0 %

296

95.7 %

96.2 %

3,328

3,384

1,997

2,034

96,613

145 Front at City Square

100.0 %

365

94.2 %

92.9 %

2,531

2,576

1,549

1,608

62,746

The Emery

100.0 %

326

96.1 %

92.3 %

2,730

2,760

1,565

1,515

71,758

Massachusetts Subtotal

100.0 %

1,168

95.1 %

93.9 %

$2,893

$2,925

$6,270

$6,320

$287,617

Other










The Upton

100.0 %

193

91.8 %

91.7 %

$4,614

$4,752

$1,417

$1,475

$75,000

The James

100.0 %

240

93.9 %

96.3 %

3,027

3,052

1,380

1,330

—

Signature Place

100.0 %

197

95.8 %

97.5 %

3,157

3,174

1,017

974

43,000

Quarry Place at Tuckahoe

100.0 %

108

93.9 %

93.5 %

4,352

4,321

707

709

41,000

Riverpark at Harrison

45.0 %

141

92.9 %

92.2 %

2,886

2,885

514

577

30,192

Metropolitan at 40 Park1

25.0 %

130

89.9 %

95.4 %

3,675

3,613

711

721

34,100

Station House

50.0 %

378

91.5 %

92.1 %

2,873

2,562

1,823

1,713

88,927

Other Subtotal

73.8 %

1,387

92.7 %

94.0 %

$3,374

$3,307

$7,569

$7,499

$312,219

Operating Portfolio2,3

85.2 %

7,622

94.1 %

94.4 %

$3,899

$3,855

$55,103

$52,919

$2,390,948

Metropolitan Lofts4







$81

$319

$—

Total Portfolio







$55,184

$53,238

$2,390,948



1

As of March 31, 2024, Priority Capital included Metropolitan at $23.3M (Prudential).

2

Excludes approximately 189,367 sqft of ground floor retail of which 140,522 sf was leased as of March 31, 2024.

3

See Unconsolidated Joint Ventures and Multifamily Property Information pages for more details.

4

In January 2024, the Company's joint venture sold Lofts at 40 Park ("Metropolitan Lofts") thus it is excluded from same store calculations. Proceeds from the sale were used to repay the outstanding loan balance.

 

Commercial Assets and Developable Land

($ in thousands)

 


Commercial

Location

Ownership

Rentable

SF

Percentage

Leased

1Q 2024

Percentage

Leased

4Q 2023

NOI

1Q 2024

NOI

4Q 2023

Debt

Balance

Port Imperial Garage South

Weehawken, NJ

70.0 %

320,426

N/A

N/A

$468

$517

$31,511

Port Imperial Garage North

Weehawken, NJ

100.0 %

304,617

N/A

N/A

(57)

36

—

Port Imperial Retail South

Weehawken, NJ

70.0 %

18,064

100.0 %

100.0 %

202

185

—

Port Imperial Retail North

Weehawken, NJ

100.0 %

8,400

100.0 %

100.0 %

72

373

—

Riverwalk at Port Imperial

West New York, NJ

100.0 %

30,426

73.2 %

59.2 %

177

221

—

Shops at 40 Park

Morristown, NJ

25.0 %

50,973

69.0 %

69.0 %

285

267

6,067

Commercial Total


80.9 %

732,906

77.8 %

73.8 %

$1,147

$1,599

$37,578

 

Developable Land Parcels1

NJ Waterfront2

2,351

Massachusetts

849

Other

1,378

Developable Land Parcels Total                                               

4,578

Under Binding Contract for Sale

439

Total Less Under Binding Contract

4,139



1

The Company has an additional 13,775 SF of potential retail space within land developments that is not represented in this table.

2

Reflects the sale of 107 Morgan subsequent to quarter end.

 

Same Store Market Information1

 

Sequential Quarter Comparison

 

(NOI in thousands)













NOI at Share

Occupancy

Blended Lease Rate2


Apartments

1Q 2024

4Q 2023

Change

1Q 2024

4Q 2023

Change

1Q 2024

4Q 2023

New Jersey Waterfront

5,067

$36,697

$34,754

5.6 %

94.2 %

94.6 %

(0.4) %

4.1 %

7.7 %

Massachusetts

1,168

6,520

6,572

(0.8) %

95.1 %

93.9 %

1.2 %

2.9 %

0.5 %

Other3

1,387

6,170

6,089

1.3 %

92.7 %

94.0 %

(1.3) %

4.8 %

4.6 %

Total

7,622

$49,387

$47,415

4.2 %

94.1 %

94.4 %

(0.3) %

4.6 %

6.1 %

 

Year-over-Year First Quarter Comparison

 

(NOI in thousands) 













NOI at Share

Occupancy

Blended Lease Rate2 


Apartments

1Q 2024

1Q 2023

Change

1Q 2024

1Q 2023

Change

1Q 2024

1Q 2023

New Jersey Waterfront

5,067

$36,697

$31,159

17.8 %

94.2 %

96.2 %

(2.0) %

4.1 %

13.2 %

Massachusetts

1,168

6,520

6,155

5.9 %

95.1 %

95.5 %

(0.4) %

2.9 %

4.2 %

Other3

1,387

6,170

5,914

4.3 %

92.7 %

94.8 %

(2.1) %

4.8 %

3.6 %

Total

7,622

$49,387

$43,228

14.2 %

94.1 %

95.9 %

(1.8) %

4.6 %

10.2 %

 

Average Revenue per Home (based on 7,622 units from 1Q23 to Present)









1Q 2024

4Q 2023

3Q 2023

2Q 2023

1Q 2023

1Q 20224

New Jersey Waterfront

$4,274

$4,219

$4,084

$4,048

$3,919

$3,298

Massachusetts

2,893

2,925

2,918

2,836

2,798

2,554

Other3

3,374

3,307

3,350

3,356

3,227

2,930

Total

$3,899

$3,855

$3,772

$3,736

$3,622

$3,103



1

All statistics are based off the current 7,622 Same Store pool. Same Store 4Q23 was 6,691 and before 2023 the actual pool was 5,825 units when initially reported.

2

Blended lease rates exclude properties not managed by Veris.

3

"Other" includes properties in Suburban NJ, New York, and Washington, DC. See Multifamily Operating Portfolio page for breakout.

4

The total portfolio included  6,691 units in 2022. The average revenue per home is based on the total portfolio less Metropolitan Lofts for 1Q 2022.

 

See Non-GAAP Financial Definitions.

 

Same Store Performance

($ in thousands)


Multifamily Same Store1











Three Months Ended March 31,


Sequential


2024

2023

Change

%


1Q24

4Q23

Change

%

Apartment Rental Income

$66,697

$61,873

$4,824

7.8 %


$66,697

$66,597

$100

0.2 %

Parking/Other Income

7,395

6,190

1,205

19.5 %


7,395

6,887

508

7.4 %

Total Property Revenues2

$74,092

$68,063

$6,029

8.9 %


$74,092

$73,484

$608

0.8 %

Marketing & Administration

2,138

2,345

(207)

(8.8) %


2,138

2,559

(421)

(16.5) %

Utilities

2,573

2,424

149

6.1 %


2,573

2,190

383

17.5 %

Payroll

4,298

4,445

(147)

(3.3) %


4,298

4,667

(369)

(7.9) %

Repairs & Maintenance

3,613

3,303

310

9.4 %


3,613

4,431

(818)

(18.5) %

Controllable Expenses

$12,622

$12,517

$105

0.8 %


$12,622

$13,847

$(1,225)

(8.8) %

Other Fixed Fees

722

717

5

0.7 %


722

737

(15)

(2.0) %

Insurance

1,780

1,781

(1)

(0.1) %


1,780

1,744

36

2.1 %

Real Estate Taxes

9,581

9,820

(239)

(2.4) %


9,581

9,741

(160)

(1.6) %

Non-Controllable Expenses

$12,083

$12,318

$(235)

(1.9) %


$12,083

$12,222

$(139)

(1.1) %

Total Property Expenses

$24,705

$24,835

$(130)

(0.5) %


$24,705

$26,069

$(1,364)

(5.2) %

Same Store GAAP NOI

$49,387

$43,228

$6,159

14.2 %


$49,387

$47,415

$1,972

4.2 %

Real Estate Tax Adjustments3

—

(490)

490



—

—

—


Normalized Same Store NOI

$49,387

$43,718

$5,669

13.0 %


$49,387

$47,415

$1,972

4.2 %

Total Units

7,622

7,622




7,622

7,622



% Ownership

85.2 %

85.2 %




85.2 %

85.2 %



% Occupied - Quarter End

94.1 %

95.9 %

(1.8) %



94.1 %

94.4 %

(0.3) %




1

Values represent the Company`s pro rata ownership of the operating portfolio. The James and Haus25 were added to the Same Store pool in 1Q 2024.

2

Revenues reported based on Generally Accepted Accounting Principals or "GAAP".

3

Represents tax settlements and final tax rate adjustments recognized that are applicable to prior periods.


   See Non-GAAP Financial Definitions.

 

Debt Profile

($ in thousands)



Lender

Effective

Interest Rate(1)

March 31, 2024

December 31, 2023

Date of

Maturity

Secured Permanent Loans






Signature Place

Nationwide Life Insurance Company

3.74 %

43,000

43,000

08/01/24

Liberty Towers

American General Life Insurance Company

3.37 %

265,000

265,000

10/01/24

Portside 2 at East Pier

New York Life Insurance Co.

4.56 %

96,613

97,000

03/10/26

BLVD 425

New York Life Insurance Co.

4.17 %

131,000

131,000

08/10/26

BLVD 401

New York Life Insurance Co.

4.29 %

117,000

117,000

08/10/26

Portside at East Pier(2)

KKR

SOFR + 2.75%

56,500

56,500

09/07/26

The Upton(3)

Bank of New York Mellon

SOFR + 1.58%

75,000

75,000

10/27/26

145 Front at City Square(4)

US Bank

SOFR + 1.84%

62,746

63,000

12/10/26

RiverHouse 9(5)

JP Morgan

SOFR + 1.41%

110,000

110,000

06/21/27

Quarry Place at Tuckahoe

Natixis Real Estate Capital, LLC

4.48 %

41,000

41,000

08/05/27

BLVD 475

The Northwestern Mutual Life Insurance Co.

2.91 %

165,000

165,000

11/10/27

Haus25

Freddie Mac

6.04 %

343,061

343,061

09/01/28

RiverHouse 11

The Northwestern Mutual Life Insurance Co.

4.52 %

100,000

100,000

01/10/29

Soho Lofts

Flagstar Bank

3.77 %

158,034

158,777

07/01/29

Port Imperial Garage South

American General Life & A/G PC

4.85 %

31,511

31,645

12/01/29

The Emery

Flagstar Bank

3.21 %

71,758

72,000

01/01/31

Principal Balance Outstanding



$1,867,223

$1,868,983


Unamortized Deferred Financing Costs



(14,074)

(15,086)


Total Secured Permanent Loans



$1,853,149

$1,853,897








Secured RCF & Term Loans:






Revolving Credit Facility

JP Morgan & Goldman Sachs

SOFR + 4.10%

$—

$—

07/25/24

Term Loan

JP Morgan & Goldman Sachs

SOFR + 4.10%

—

—

07/25/24

Total RCF & Term Loan Debt(6)



$—

$—


Total Debt



$1,853,149

$1,853,897



See Debt Profile Footnotes.

                       

Debt Summary and Maturity Schedule

 

As of March 31, 99.9% of the Company`s total pro forma debt portfolio (consolidated and unconsolidated) is hedged or fixed. The Company`s total debt portfolio has a weighted average interest rate of 4.4% and a weighted average maturity of 3.5 years.

 

 ($ in thousands)       


Balance

%

of Total

Weighted Average

Interest Rate

Weighted Average

Maturity in Years

Fixed Rate & Hedged Debt





Fixed Rate & Hedged Secured Debt

$1,867,223

100.0 %

4.34 %

3.2

Variable Rate Debt





Variable Rate Debt1

—

— %

— %

—

Totals / Weighted Average

$1,867,223

100.0 %

4.34 %

3.2

Unamortized Deferred Financing Costs

(14,074)




Total Consolidated Debt, net

$1,853,149




Partners' Share

(73,276)




VRE Share of Total Consolidated Debt, net2

$1,779,873









Unconsolidated Secured Debt





VRE Share

$297,806

53.1 %

4.89 %

5.0

Partners' Share

263,497

46.9 %

4.89 %

5.0

Total Unconsolidated Secured Debt

$561,303

100.0 %

4.89 %

5.0






Pro Rata Debt Portfolio





Fixed Rate & Hedged Secured Debt

$2,090,236

99.9 %

4.42 %

3.5

Variable Rate Secured Debt

1,517

0.1 %

7.31 %

0.8

Total Pro Rata Debt Portfolio

$2,091,753

100.0 %

4.42 %

3.5

 

Pro Forma Debt Maturity Schedule3

($ in millions)


Secured Debt

Planned 2024 Refinancings

Unused Revolver Capacity

Unused Term Loan Capacity

2024


$308



2025





2026

$476

$63



2027

$316




2028

$343


$300

$200

2029

$132

$158



2030





2031

$72






1

Variable rate debt includes the Revolver and reflects the balances on the Revolver and Term Loan.

2

Minority interest share of consolidated debt is comprised of $33.7 million at BLVD 425, $30.1 million at BLVD 401 and $9.5 million at Port Imperial South Garage.

3

The Unused Term Loan and Unused Revolver Capacity balances are shown with the one-year extension option utilized on the new facilities.

 

Annex 1: Transaction Activity


2024 Dispositions to Date






$ in thousands except per SF


Location

Transaction

Date

Number of Buildings

SF

Gross Asset

Value

Land






2 Campus Drive

Parsippany-Troy Hills, NJ

1/3/2024

N/A

N/A

$9,700

107 Morgan

Jersey City, NJ

4/16/2024

N/A

N/A

54,000

Subtotal Land





$63,700

Multifamily






Metropolitan Lofts1

Morristown, NJ

1/12/2024

1

54,683

$30,300

Subtotal Multifamily



1

54,683

$30,300

Office






Harborside 5

Jersey City, NJ

3/20/2024

1

977,225

$85,300

Subtotal Office



1

977,225

$85,300




2024 Dispositions to Date

$179,300



1

The joint venture sold the property; releasing approximately $6 million of net proceeds to the Company.

 

Annex 2: Reconciliation of Net Income (Loss) to NOI (three months ended)



1Q 2024


4Q 2023


Total


Total

Net Income (Loss)

$                   (4,469)


$                   (5,746)

Deduct:




Income from discontinued operations

(252)


33,489

Realized gains and unrealized gains on disposition of rental property and impairments, net

(1,548)


(43,970)

Real estate services income

(922)


(1,084)

Interest and other investment income

(538)


(232)

Equity in (earnings) losses of unconsolidated joint ventures

(254)


(260)

(Gain) loss on disposition of developable land

(784)


(7,090)

Loss from extinguishment of debt, net

—


1,903

Realized gains (losses) and unrealized gains (losses) on disposition of rental property, net

—


2

Gain on sale of unconsolidated joint venture interests

(7,100)


—

Other income, net

(255)


(77)

Add:




Real estate services expenses

5,242


4,323

General and administrative

11,088


9,990

Transaction related costs

516


576

Depreciation and amortization

20,117


21,227

Interest expense

21,500


21,933

Provision for income taxes

59


199

Land impairments and other impairments, net

—


5,928

Net Operating Income (NOI)

$                   42,400


$                   41,111





Summary of Consolidated Multifamily NOI by Type (unaudited):

1Q 2024


4Q 2023

Total Consolidated Multifamily - Operating Portfolio

$                   41,305


$                   39,381

Total Consolidated Commercial

862


1,332

Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests)

$                   42,167


$                   40,713

NOI (loss) from services, land/development/repurposing & other assets

875


660

Total Consolidated Multifamily NOI

$                   43,042


$                   41,373





See Consolidated Statement of Operations 

See Non-GAAP Financial Definitions.

 

Annex 3: Consolidated Statement of Operations and Non-GAAP Financial Footnotes

 

FFO, Core FFO, AFFO, NOI, Adjusted EBITDA, & EBITDAre



1.

Includes the Company's share from unconsolidated joint ventures, and adjustments for noncontrolling interest of $2.7 million and $2.6 million for the three months ended March 31, 2024 and 2023, respectively. Excludes non-real estate-related depreciation and amortization of $0.2 million  for the three months ended March 31, 2024 and 2023, respectively.

2.

Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (Nareit). See Non-GAAP Financial Definitions for information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre.

3.

Includes the Company's share from unconsolidated joint ventures of $9.3 thousand and $26.6 thousand for the three months ended March 31, 2024 and 2023, respectively.

4.

Excludes expenditures for tenant spaces in properties that have not been owned by the Company for at least a year.

5.

Net Debt calculated by taking the sum of secured revolving credit facility, secured term loan, and mortgages, loans payable and other obligations, and deducting cash and cash equivalents and restricted cash, all at period end.

6.

Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares 8,418 and 9,146 shares for the three months ended March 31, 2024 and 2023, respectively, plus dilutive Common Stock Equivalents (i.e. stock options).


See Consolidated Statement of Operations.

See FFO, Core FFO and Core AFFO.

See Adjusted EBITDA and EBITDAre. 

 

Annex 4: Unconsolidated Joint Ventures

 

($ in thousands)


Property

Units

Physical

Occupancy

VRE's Nominal

Ownership1

1Q 2024

NOI2

Total

Debt

VRE Share

of 1Q NOI

VRE Share

of Debt

Multifamily








Urby Harborside

762

90.7 %

85.0 %

$5,318

$185,017

$4,520

$157,264

RiverTrace at Port Imperial

316

94.5 %

22.5 %

2,273

82,000

511

18,450

Capstone at Port Imperial

360

96.6 %

40.0 %

3,159

135,000

1,264

54,000

Riverpark at Harrison

141

92.9 %

45.0 %

514

30,192

231

13,586

Metropolitan at 40 Park

130

89.9 %

25.0 %

711

34,100

178

8,525

Station House

378

91.5 %

50.0 %

1,823

88,927

912

44,464

Total Multifamily

2,087

92.5 %

55.0 %

$13,798

$555,236

$7,616

$296,289

Retail








Shops at 40 Park

N/A

69.0 %

25.0 %

285

6,067

71

1,517

Total Retail

N/A

69.0 %

25.0 %

$285

$6,067

$71

$1,517

Total UJV




$14,083

$561,303

$7,687

$297,806

Metropolitan Lofts3




81


41


Total UJV Adjusted




$14,164


$7,728




1

Amounts represent the Company's share based on ownership percentage.

2

The sum of property level revenue, straight line and ASC 805 adjustments; less: operating expenses, real estate taxes and utilities.

3

Metropolitan Lofts sold on January 12, 2024.

 


Annex 5: Debt Profile Footnotes



1.

Effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.

2.

The loan on Portside at East Pier is capped at a strike rate of 3.5%, expiring in September 2026.

3.

The loan on Upton is capped at a strike rate of 1.0%, expiring in October 2024.

4.

The loan on 145 Front Street is capped at a strike rate of 4.0%, expiring in June 2024. Subsequent to quarter end, the Company noticed the lender of its intention to prepay the loan in May 2024. After the loan is repaid, the Company plans to contribute the asset to the collateral pool of its new facility package.

5.

The loan on RiverHouse 9 is capped at a strike rate of 3.0%, expiring in June 2024.

6.

On April 22, 2024, the Company terminated its existing facility comprised of a $115 million term loan and $60 million revolver. The Company simultaneously secured a $500 million facility with a group of eight lenders, comprised of a $300 million revolver and $200 million delayed-draw term loan. The facility has a three-year term ending April 2027,  with a one-year extension option. For more details on the facility please refer to the terms outlined in the first quarter 2024 10-Q.



See Debt Profile.

        

Annex 6: Multifamily Property Information



Location

Ownership

Apartments

Rentable SF

Average Size

Year Complete

NJ Waterfront







Haus25

Jersey City, NJ

100.0 %

750

617,787

824

2022

Liberty Towers

Jersey City, NJ

100.0 %

648

602,210

929

2003

BLVD 401

Jersey City, NJ

74.3 %

311

273,132

878

2016

BLVD 425

Jersey City, NJ

74.3 %

412

369,515

897

2003

BLVD 475

Jersey City, NJ

100.0 %

523

475,459

909

2011

Soho Lofts

Jersey City, NJ

100.0 %

377

449,067

1,191

2017

Urby Harborside

Jersey City, NJ

85.0 %

762

474,476

623

2017

RiverHouse 9

Weehawken, NJ

100.0 %

313

245,127

783

2021

RiverHouse 11

Weehawken, NJ

100.0 %

295

250,591

849

2018

RiverTrace

West New York, NJ

22.5 %

316

295,767

936

2014

Capstone

West New York, NJ

40.0 %

360

337,991

939

2021

NJ Waterfront Subtotal


85.0 %

5,067

4,391,122

867


Massachusetts







Portside at East Pier

East Boston, MA

100.0 %

181

156,091

862

2015

Portside 2 at East Pier

East Boston, MA

100.0 %

296

230,614

779

2018

145 Front at City Square

Worcester, MA

100.0 %

365

304,936

835

2018

The Emery

Revere, MA

100.0 %

326

273,140

838

2020

Massachusetts Subtotal


100.0 %

1,168

964,781

826


Other







The Upton

Short Hills, NJ

100.0 %

193

217,030

1,125

2021

The James

Park Ridge, NJ

100.0 %

240

215,283

897

2021

Signature Place

Morris Plains, NJ

100.0 %

197

203,716

1,034

2018

Quarry Place at Tuckahoe

Eastchester, NY

100.0 %

108

105,551

977

2016

Riverpark at Harrison

Harrison, NJ

45.0 %

141

124,774

885

2014

Metropolitan at 40 Park

Morristown, NJ

25.0 %

130

124,237

956

2010

Station House

Washington, DC

50.0 %

378

290,348

768

2015

Other Subtotal


73.8 %

1,387

1,280,939

924


Operating Portfolio


85.2 %

7,622

6,636,842

871


Metropolitan Lofts1

Morristown, NJ

50.0 %

59

54,683

927

2018

Operating Portfolio 4Q23


85.0 %

7,681

6,691,525

871



See Multifamily Operating Portfolio.



1

Metropolitan Lofts sold on January 12, 2024.

 

Annex 7: Noncontrolling Interests in Consolidated Joint Ventures



Three Months Ended March 31,


2024

2023

BLVD 425

$                                    80

$                                    17

BLVD 401

(552)

(558)

Port Imperial Garage South

(26)

(45)

Port Imperial Retail South

34

25

Other consolidated joint ventures

(31)

(26)

Net losses in noncontrolling interests

$                                 (495)

$                                 (587)

Depreciation in noncontrolling interests

721

712

Funds from operations - noncontrolling interest in consolidated joint ventures

$                                  226

$                                  125

Interest expense in noncontrolling interest in consolidated joint ventures

788

792

Net operating income before debt service in consolidated joint ventures

$                               1,014

$                                  917


See Adjusted EBITDA and EBITDAre.

 

Non-GAAP Financial Definitions

NON-GAAP FINANCIAL MEASURES 

Included in this financial package are Funds from Operations, or FFO, Core Funds from Operations, or Core FFO, net operating income, or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or Adjusted EBITDA, and EBIDAre or Earnings Before Interest, Taxes, Depreciation, Amortization and Rent Costs, each a "non-GAAP financial measure," measuring Veris Residential, Inc.'s historical or future financial performance that is different from measures calculated and presented in accordance with generally accepted accounting principles ("U.S. GAAP"), within the meaning of the applicable Securities and Exchange Commission rules. Veris Residential, Inc. believes these metrics can be a useful measure of its performance which is further defined.

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted "EBITDA")

The Company defines Adjusted EBITDA as Core FFO, plus interest expense, plus income tax expense, plus income (loss) in noncontrolling interest in consolidated joint ventures, and plus adjustments to reflect the entity's share of Adjusted EBITDA of unconsolidated joint ventures. The Company presents Adjusted EBITDA because the Company believes that Adjusted EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company's ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company's financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company's liquidity.

Blended Net Rental Growth Rate or Blended Lease Rate

Weighted average of the net effective change in rent (inclusive of concessions) for a lease with a new resident or for a renewed lease compared to the rent for the prior lease of the identical apartment unit.

Core FFO and Adjusted FFO ("AFFO")

Core FFO is defined as FFO, as adjusted for certain items to facilitate comparative measurement of the Company's performance over time. Adjusted FFO ("AFFO") is defined as Core FFO less (i) recurring tenant improvements, leasing commissions, and capital expenditures, (ii) straight-line rents and amortization of acquired above/below market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges. Core FFO and Adjusted AFFO are presented solely as supplemental disclosure that the Company's management believes provides useful information to investors and analysts of its results, after adjusting for certain items to facilitate comparability of its performance from period to period. Core FFO and Adjusted FFO are non-GAAP financial measures that are not intended to represent cash flow and are not indicative of cash flows provided by operating activities as determined in accordance with GAAP. As there is not a generally accepted definition established for Core FFO and Adjusted FFO, the Company's measures of Core FFO may not be comparable to the Core FFO and Adjusted FFO reported by other REITs. A reconciliation of net income per share to Core FFO and Adjusted FFO in dollars and per share are included in the financial tables accompanying this press release.

Earnings Before Interest, Tax, Depreciation, Amortization, and Rent Costs ("EBITDAre")

The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of Nareit in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. The Company presents EBITDAre, because the Company believes that EBITDAre, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company's ability to incur and service debt. EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company's financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company's liquidity.

Funds From Operations ("FFO") 

FFO is defined as net income (loss) before noncontrolling interests in Operating Partnership, computed in accordance with U.S. GAAP, excluding gains or losses from depreciable rental property transactions (including both acquisitions and dispositions), and impairments related to depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from property transactions and impairments related to depreciable rental property (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs.

FFO per share should not be considered as an alternative to net income available to common shareholders per share as an indication of the Company's performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company's FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts ("Nareit"). A reconciliation of net income per share to FFO per share is included in the financial tables accompanying this press release.

NOI and Same Store NOI 

NOI represents total revenues less total operating expenses, as reconciled to net income above. The Company considers NOI to be a meaningful non-GAAP financial measure for making decisions and assessing unlevered performance of its property types and markets, as it relates to total return on assets, as opposed to levered return on equity. As properties are considered for sale and acquisition based on NOI estimates and projections, the Company utilizes this measure to make investment decisions, as well as compare the performance of its assets to those of its peers. NOI should not be considered a substitute for net income, and the Company's use of NOI may not be comparable to similarly titled measures used by other companies. The Company calculates NOI before any allocations to noncontrolling interests, as those interests do not affect the overall performance of the individual assets being measured and assessed.

Same Store NOI is presented for the same store portfolio, which comprises all properties that were owned by the Company throughout both of the reporting periods.

 

Company Information


Company Information






Corporate Headquarters

Stock Exchange Listing

Contact Information

Veris Residential, Inc.

New York Stock Exchange

Veris Residential, Inc.

210 Hudson St., Suite 400


Investor Relations Department

Jersey City, New Jersey 07311

Trading Symbol

210 Hudson St., Suite 400

(732) 590-1010

Common Shares: VRE

Jersey City, New Jersey 07311






Anna Malhari



Chief Operating Officer



E-Mail:  amalhari@verisresidential.com



Web: www.verisresidential.com










Executive Officers






Mahbod Nia

Amanda Lombard

Taryn Fielder

Chief Executive Officer

Chief Financial Officer

General Counsel and Secretary




Anna Malhari

Jeff Turkanis


Chief Operating Officer

EVP & Chief Investment Officer











Equity Research Coverage






Bank of America Merrill Lynch

BTIG, LLC

Citigroup

Josh Dennerlein

Thomas Catherwood

Nicholas Joseph




Evercore ISI

Green Street Advisors

JP Morgan

Steve Sakwa

John Pawlowski

Anthony Paolone




Truist



Michael R. Lewis



 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/veris-residential-inc-reports-first-quarter-2024-results-302126673.html

SOURCE Veris Residential, Inc.

FAQ

What were Veris Residential, Inc.'s Core FFO per Diluted Share in the first quarter of 2024?

Veris Residential, Inc.'s Core FFO per Diluted Share was $0.14 in the first quarter of 2024.

What was the Same Store NOI growth percentage year-over-year?

The Same Store NOI growth was over 14% year-over-year.

What credit facility did Veris Residential, Inc. secure in April 2024?

Veris Residential, Inc. secured a new $500 million three-plus-one-year term revolving credit facility and term loan package in April 2024.

What awards did Veris Residential, Inc. receive in the first quarter of 2024?

Veris Residential, Inc. received the Gold Green Lease Leader award by the US Department of Energy and three awards from the International WELL Building Institute in the first quarter of 2024.

What was the Net Debt amount for Veris Residential, Inc. in Q1 2024?

Veris Residential, Inc.'s Net Debt was $1,714,800 in Q1 2024.

What was the Same Store Blended Rental Growth Rate in Q1 2024?

The Same Store Blended Rental Growth Rate was 4.6% in Q1 2024.

What was the Core FFO per Share guidance range for 2024?

The Core FFO per Share guidance range for 2024 was $0.50 to $0.54.

Stock VRE logo
Veris Residential, Inc.

NYSE:VRE

VRE Rankings

#2106 Ranked by Market Cap
#1480 Ranked by Dividends

VRE Latest News

Nov 13, 2024
Veris Residential Declares Quarterly Cash Dividend
Oct 30, 2024
Veris Residential, Inc. Reports Third Quarter 2024 Results
Oct 10, 2024
Veris Residential, Inc. Announces Dates for Third Quarter 2024 Financial Results and Webcast
Aug 5, 2024
Veris Residential Declares Quarterly Cash Dividend
Jul 24, 2024
Veris Residential, Inc. Reports Second Quarter 2024 Results

VRE Stock Data

1.69B
77.46M
10.05%
108.22%
4.22%
REIT - Residential
Real Estate Investment Trusts
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JERSEY CITY