Veris Residential, Inc. Reports First Quarter 2024 Results
- 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.
- 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.
Three Months Ended, | ||
March 31, 2024 | December 31, 2023 | |
Net Income (Loss) per Diluted Share | ||
Core FFO per Diluted Share | ||
Core AFFO per Diluted Share | ||
Dividend per Diluted Share |
CAPITAL ALLOCATION AND BALANCE SHEET
- Sold
of non-strategic assets, including the last office asset; two land parcels are currently under binding contract for$179 million .$28 million - Secured a new
three-plus-one-year term revolving credit facility and term loan package.$500 million - 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 and4% 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
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 |
SAME STORE PORTFOLIO PERFORMANCE
Haus25 and The James were added to the Same Store pool in 2024. These properties contributed nearly
The following table presents a more detailed breakout of Same Store performance:
Three Months Ended March 31, | |||
2024 | 2023 | % | |
Total Property Revenue | 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 | 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
The last office asset in the portfolio, Harborside 5, sold for
Subsequent to quarter end, 107 Morgan land parcel sold for
FINANCE AND LIQUIDITY
Virtually all (
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
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
ESG
In the first quarter, Veris Residential earned the highest ISS ESG Corporate Score of all real estate companies in
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 | — | ||
Add back: Depreciation per Share | — | ||
Core FFO per Share | — |
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,
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 | ||
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 | ||
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 | ||
Total Equity | ||
Total Liabilities and Equity |
Consolidated Statement of Operations (In thousands, except per share amounts) (unaudited) 1 | ||
Three Months Ended March 31, | ||
REVENUES | 2024 | 2023 |
Revenue from leases | ||
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 | ||
Basic earnings per common share: | ||
Net loss available to common shareholders | ||
Diluted earnings per common share: | ||
Net loss available to common shareholders | ||
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 | ||
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) | ||
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 | ||
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) | ||
Funds from Operations per share/unit-diluted | ||
Core Funds from Operations per share/unit-diluted | ||
Dividends declared per common share | — |
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) | ||
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 | ||
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 | ||
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 | ||
Net debt at period end(5) | ||
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 | ||
New Jersey Waterfront | Restricted Cash | 25,649 | |||
25,080 | 25,080 | Other Assets | 49,212 | ||
Other | 30,276 | 22,329 | Subtotal Other Assets | ||
Total Multifamily NOI | |||||
Commercial NOI3 | 4,588 | 3,712 | Liabilities and Other Considerations | ||
Total NOI | |||||
Operating - Consolidated Debt at Share | |||||
Non-Strategic Assets | Operating - Unconsolidated Debt at Share | 297,806 | |||
Other Liabilities | 78,201 | ||||
Non-Strategic Assets Under Binding Contract4 | Revolving Credit Facility5 | — | |||
Estimated Land Value6 | 187,311 | Term Loan5 | — | ||
Subtotal Non-Strategic Assets | Preferred Units | 9,294 | |||
Subtotal Liabilities and Other Considerations | |||||
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 |
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 % | |||||
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 % | |||||
Portside at East Pier | 100.0 % | 181 | 94.4 % | 94.9 % | |||||
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 % | |||||
Other | |||||||||
The | 100.0 % | 193 | 91.8 % | 91.7 % | |||||
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 | 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 % | |||||
Operating Portfolio2,3 | 85.2 % | 7,622 | 94.1 % | 94.4 % | |||||
Metropolitan Lofts4 | $— | ||||||||
Total Portfolio |
1 | As of March 31, 2024, Priority Capital included Metropolitan at |
2 | Excludes approximately 189,367 sqft of ground floor retail of which 140,522 sf was leased as of March 31, 2024. |
3 | See Unconsolidated Joint Ventures and Multifamily Property Information pages for more details. |
4 | In January 2024, the Company's joint venture sold Lofts at 40 Park ("Metropolitan Lofts") thus it is excluded from same store calculations. Proceeds from the sale were used to repay the outstanding loan balance. |
Commercial Assets and Developable Land ($ 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 | 70.0 % | 320,426 | N/A | N/A | ||||
Port Imperial Garage North | 100.0 % | 304,617 | N/A | N/A | (57) | 36 | — | |
Port Imperial Retail South | 70.0 % | 18,064 | 100.0 % | 100.0 % | 202 | 185 | — | |
Port Imperial Retail North | 100.0 % | 8,400 | 100.0 % | 100.0 % | 72 | 373 | — | |
Riverwalk at Port Imperial | 100.0 % | 30,426 | 73.2 % | 59.2 % | 177 | 221 | — | |
Shops at 40 Park | 25.0 % | 50,973 | 69.0 % | 69.0 % | 285 | 267 | 6,067 | |
Commercial Total | 80.9 % | 732,906 | 77.8 % | 73.8 % |
Developable Land Parcels1 | |
NJ Waterfront2 | 2,351 |
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 | 5.6 % | 94.2 % | 94.6 % | (0.4) % | 4.1 % | 7.7 % | ||
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 | 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 | 17.8 % | 94.2 % | 96.2 % | (2.0) % | 4.1 % | 13.2 % | ||
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 | 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 | ||||||
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 |
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, |
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 | 7.8 % | 0.2 % | |||||||
Parking/Other Income | 7,395 | 6,190 | 1,205 | 19.5 % | 7,395 | 6,887 | 508 | 7.4 % | |
Total Property Revenues2 | 8.9 % | 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 | 0.8 % | (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 | (1.9) % | (1.1) % | |||||||
Total Property Expenses | (0.5) % | (5.2) % | |||||||
Same Store GAAP NOI | 14.2 % | 4.2 % | |||||||
Real Estate Tax Adjustments3 | — | (490) | 490 | — | — | — | |||
Normalized Same Store NOI | 13.0 % | 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 + | 56,500 | 56,500 | 09/07/26 |
The | Bank of New York Mellon | SOFR + | 75,000 | 75,000 | 10/27/26 |
145 Front at City Square(4) | US Bank | SOFR + | 62,746 | 63,000 | 12/10/26 |
RiverHouse 9(5) | JP Morgan | SOFR + | 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 | |||||
Unamortized Deferred Financing Costs | (14,074) | (15,086) | |||
Total Secured Permanent Loans | |||||
Secured RCF & Term Loans: | |||||
Revolving Credit Facility | JP Morgan & Goldman Sachs | SOFR + | $— | $— | 07/25/24 |
Term Loan | JP Morgan & Goldman Sachs | SOFR + | — | — | 07/25/24 |
Total RCF & Term Loan Debt(6) | $— | $— | |||
Total Debt |
See Debt Profile Footnotes. |
Debt Summary and Maturity Schedule
| ||||
As of March 31,
| ||||
($ in thousands) | ||||
Balance | % of Total | Weighted Average Interest Rate | Weighted Average Maturity in Years | |
Fixed Rate & Hedged Debt | ||||
Fixed Rate & Hedged Secured Debt | 100.0 % | 4.34 % | 3.2 | |
Variable Rate Debt | ||||
Variable Rate Debt1 | — | — % | — % | — |
Totals / Weighted Average | 100.0 % | 4.34 % | 3.2 | |
Unamortized Deferred Financing Costs | (14,074) | |||
Total Consolidated Debt, net | ||||
Partners' Share | (73,276) | |||
VRE Share of Total Consolidated Debt, net2 | ||||
Unconsolidated Secured Debt | ||||
VRE Share | 53.1 % | 4.89 % | 5.0 | |
Partners' Share | 263,497 | 46.9 % | 4.89 % | 5.0 |
Total Unconsolidated Secured Debt | 100.0 % | 4.89 % | 5.0 | |
Pro Rata Debt Portfolio | ||||
Fixed Rate & Hedged Secured Debt | 99.9 % | 4.42 % | 3.5 | |
Variable Rate Secured Debt | 1,517 | 0.1 % | 7.31 % | 0.8 |
Total Pro Rata Debt Portfolio | 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 | ||||
2025 | ||||
2026 | ||||
2027 | ||||
2028 | ||||
2029 | ||||
2030 | ||||
2031 |
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 |
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 | |
107 Morgan | 4/16/2024 | N/A | N/A | 54,000 | |
Subtotal Land | |||||
Multifamily | |||||
Metropolitan Lofts1 | 1/12/2024 | 1 | 54,683 | ||
Subtotal Multifamily | 1 | 54,683 | |||
Office | |||||
Harborside 5 | 3/20/2024 | 1 | 977,225 | ||
Subtotal Office | 1 | 977,225 | |||
2024 Dispositions to Date |
1 | The joint venture sold the property; releasing approximately |
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. | 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 |
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 % | ||||
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 | 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 % | ||||
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 % | ||||
Total UJV | |||||||
Metropolitan Lofts3 | 81 | 41 | |||||
Total UJV Adjusted |
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. | The loan on |
4. | The loan on 145 Front Street is capped at a strike rate of |
5. | The loan on RiverHouse 9 is capped at a strike rate of |
6. | On April 22, 2024, the Company terminated its existing facility comprised of a |
See Debt Profile. |
Annex 6: Multifamily Property Information | ||||||
Location | Ownership | Apartments | Rentable SF | Average Size | Year Complete | |
NJ Waterfront | ||||||
Haus25 | 100.0 % | 750 | 617,787 | 824 | 2022 | |
Liberty Towers | 100.0 % | 648 | 602,210 | 929 | 2003 | |
BLVD 401 | 74.3 % | 311 | 273,132 | 878 | 2016 | |
BLVD 425 | 74.3 % | 412 | 369,515 | 897 | 2003 | |
BLVD 475 | 100.0 % | 523 | 475,459 | 909 | 2011 | |
Soho Lofts | 100.0 % | 377 | 449,067 | 1,191 | 2017 | |
Urby Harborside | 85.0 % | 762 | 474,476 | 623 | 2017 | |
RiverHouse 9 | 100.0 % | 313 | 245,127 | 783 | 2021 | |
RiverHouse 11 | 100.0 % | 295 | 250,591 | 849 | 2018 | |
RiverTrace | 22.5 % | 316 | 295,767 | 936 | 2014 | |
Capstone | 40.0 % | 360 | 337,991 | 939 | 2021 | |
NJ Waterfront Subtotal | 85.0 % | 5,067 | 4,391,122 | 867 | ||
Portside at East Pier | 100.0 % | 181 | 156,091 | 862 | 2015 | |
Portside 2 at East Pier | 100.0 % | 296 | 230,614 | 779 | 2018 | |
145 Front at City Square | 100.0 % | 365 | 304,936 | 835 | 2018 | |
The Emery | 100.0 % | 326 | 273,140 | 838 | 2020 | |
Massachusetts Subtotal | 100.0 % | 1,168 | 964,781 | 826 | ||
Other | ||||||
The | 100.0 % | 193 | 217,030 | 1,125 | 2021 | |
The James | 100.0 % | 240 | 215,283 | 897 | 2021 | |
Signature Place | 100.0 % | 197 | 203,716 | 1,034 | 2018 | |
Quarry Place at Tuckahoe | 100.0 % | 108 | 105,551 | 977 | 2016 | |
Riverpark at | 45.0 % | 141 | 124,774 | 885 | 2014 | |
Metropolitan at 40 Park | 25.0 % | 130 | 124,237 | 956 | 2010 | |
Station House | 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 | 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 ("
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
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 | |
Trading Symbol | 210 Hudson St., Suite 400 | |
(732) 590-1010 | Common Shares: VRE | |
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 |
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SOURCE Veris Residential, Inc.
FAQ
What were Veris Residential, Inc.'s Core FFO per Diluted Share in the first quarter of 2024?
What was the Same Store NOI growth percentage year-over-year?
What credit facility did Veris Residential, Inc. secure in April 2024?
What awards did Veris Residential, Inc. receive in the first quarter of 2024?
What was the Net Debt amount for Veris Residential, Inc. in Q1 2024?
What was the Same Store Blended Rental Growth Rate in Q1 2024?