Veris Residential, Inc. Reports Third Quarter 2024 Results
Veris Residential reported strong Q3 2024 results and raised its full-year guidance. The company achieved a 4.6% Same Store multifamily Blended Net Rental growth for the quarter and 8.4% year-over-year Normalized Same Store NOI growth. Notable improvements include reducing net debt by $227 million since September 2023 and refinancing $531 million of mortgage debt. The company raised its Core FFO guidance to $0.59-$0.60 and Same Store NOI guidance to 5.4%-6.2%. The portfolio maintained a 95.1% occupancy rate with an average rent per home of $3,980. The company's debt portfolio has a weighted average interest rate of 4.96% and maturity of 3.3 years.
Veris Residential ha riportato risultati solidi nel terzo trimestre del 2024 e ha aumentato le previsioni per l'intero anno. L'azienda ha registrato una crescita del 4,6% nel Blended Net Rental Same Store per il trimestre e una crescita del 8,4% anno su anno del NOI Normalized Same Store. Tra i miglioramenti rilevanti c'è la riduzione del debito netto di 227 milioni di dollari da settembre 2023 e il rifinanziamento di 531 milioni di dollari di debito ipotecario. L’azienda ha aumentato le previsioni per il Core FFO a $0,59-$0,60 e per il NOI Same Store a 5,4%-6,2%. Il portafoglio ha mantenuto un tasso di occupazione del 95,1% con un affitto medio per unità di $3,980. Il portafoglio debitorio della società ha un tasso d'interesse medio ponderato del 4,96% e una scadenza di 3,3 anni.
Veris Residential reportó resultados sólidos en el tercer trimestre de 2024 y aumentó su pronóstico para todo el año. La empresa logró un crecimiento del 4,6% en el alquiler neto mixto de Same Store para el trimestre y un crecimiento del 8,4% interanual en el NOI Normalizado de Same Store. Las mejoras notables incluyen la reducción de la deuda neta en 227 millones de dólares desde septiembre de 2023 y el refinanciamiento de 531 millones de dólares de deuda hipotecaria. La empresa aumentó su guía de Core FFO a $0,59-$0,60 y la guía de NOI de Same Store a un 5,4%-6,2%. El portafolio mantuvo un tasa de ocupación del 95,1% con un alquiler promedio por hogar de $3,980. El portafolio de deudas de la empresa tiene una tasa de interés promedio ponderada del 4,96% y un vencimiento de 3,3 años.
Veris Residential은 2024년 3분기 실적이 강력하다고 보고하며 연간 전망치를 상향 조정했습니다. 회사는 해당 분기에 4.6%의 동일 매장 혼합 순 임대 성장률을 달성했으며, 전년 대비 8.4%의 정상화된 동일 매장 NOI 성장률을 기록했습니다. 주목할 만한 개선 사항으로는 2023년 9월 이후 순부채를 2억 2700만 달러 줄이고 5억 3100만 달러의 모기지 부채를 재융자한 것입니다. 회사는 Core FFO 가이드를 $0.59~$0.60로, Same Store NOI 가이드를 5.4%~6.2%로 상향 조정했습니다. 포트폴리오는 95.1%의 점유율을 유지하며, 집당 평균 임대료는 $3,980입니다. 회사의 부채 포트폴리오는 4.96%의 가중 평균 금리와 3.3년의 만기를 갖고 있습니다.
Veris Residential a annoncé de bons résultats pour le troisième trimestre 2024 et a relevé ses prévisions pour l'année entière. L'entreprise a réalisé une croissance de 4,6% du loyer net mixte en Same Store pour le trimestre et une croissance de 8,4% d'une année sur l'autre du NOI normalisé en Same Store. Parmi les améliorations notables figure la réduction de la dette nette de 227 millions de dollars depuis septembre 2023 et le refinancement de 531 millions de dollars de dettes hypothécaires. L'entreprise a relevé ses prévisions de Core FFO à 0,59 $ - 0,60 $ et ses prévisions de NOI en Same Store à 5,4 % - 6,2 %. Le portefeuille a maintenu un taux d'occupation de 95,1% avec un loyer moyen par logement de 3 980 $. Le portefeuille de dettes de l'entreprise a un taux d'intérêt moyen pondéré de 4,96 % et une durée de 3,3 ans.
Veris Residential hat für das dritte Quartal 2024 starke Ergebnisse berichtet und seine Prognose für das Gesamtjahr angehoben. Das Unternehmen erzielte ein Wachstum der Blended Net Rental im Same Store von 4,6% für das Quartal und ein jährliches Wachstum des normalisierten Same Store NOI von 8,4%. Zu den bemerkenswerten Verbesserungen gehört die Reduzierung der Nettoverschuldung um 227 Millionen Dollar seit September 2023 sowie die Refinanzierung von 531 Millionen Dollar Hypothekenschulden. Das Unternehmen hat seine Leitlinie für Core FFO auf $0,59-$0,60 angehoben und die Leitlinie für Same Store NOI auf 5,4%-6,2%. Das Portfolio wies eine Belegungsrate von 95,1% auf, mit einer durchschnittlichen Miete pro Wohnung von 3.980 $. Das Schuldenportfolio des Unternehmens hat einen gewogenen durchschnittlichen Zinssatz von 4,96% und eine Laufzeit von 3,3 Jahren.
- Core FFO per share increased 17% year-over-year in first nine months
- Same Store NOI margin improved to 66.8%, up 130 basis points year-over-year
- Net debt reduced by $227 million since September 2023
- Average rent per home increased 1.5% quarter-over-quarter to $3,980
- Dividend increased to $0.07 per share from $0.05 year-over-year
- Net Loss per Diluted Share of $(0.10) in Q3 2024
- Same Store Blended Rental Growth Rate declined 0.8% quarter-over-quarter
- High leverage with Net Debt to EBITDA ratio at 11.7x
Insights
The Q3 2024 results demonstrate strong operational performance with several positive indicators. Core FFO per share increased 41.7% to
The raised guidance is particularly noteworthy, with Core FFO guidance increased to
Raises Full-Year 2024 Guidance
Three Months Ended September 30, | Nine Months Ended September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Net Income (Loss) per Diluted Share | ||||
Core FFO per Diluted Share | ||||
Core AFFO per Diluted Share | ||||
Dividend per Diluted Share |
YEAR-TO-DATE HIGHLIGHTS
- Same Store multifamily Blended Net Rental growth rate of
4.6% for the quarter and4.8% year to date. - Year-over-year Normalized Same Store NOI growth of
8.4% for the third quarter and8.0% year to date. - Year-to-date Normalized Same Store NOI margin of
66.8% , a 130 basis point improvement from the same period last year. - Reduced net debt by approximately
since September 30, 2023, and refinanced$227 million of mortgage debt, leaving no remaining consolidated debt maturities until 2026.$531 million - Raised guidance as a result of the favorable resolutions of certain non-controllable expenses and better-than-expected revenue growth.
- Core FFO guidance raised by over
13% at the low end and7% at the high end, resulting in a revised range of -$0.59 .$0.60 - Same Store NOI guidance raised by 240 basis points at the low end and 120 basis points at the high end, resulting in a revised range of
5.4% -6.2% .
- Core FFO guidance raised by over
- Named 2024 Regional Listed Sector Leader by GRESB for distinguished ESG leadership and performance, with the highest listed residential score in the
U.S. and the third-best listed residential score worldwide.
September 30, 2024 | June 30, 2024 | Change | |
Same Store Units | 7,621 | 7,621 | — % |
Same Store Occupancy | 95.1 % | 95.1 % | — % |
Same Store Blended Rental Growth Rate (Quarter) | 4.6 % | 5.4 % | (0.8) % |
Average Rent per Home | 1.5 % |
Mahbod Nia, Chief Executive Officer, commented, "Our portfolio continues to exhibit strong revenue growth, underpinned by robust demand for our premium properties and limited new supply in our key markets. I am extremely proud of the work our teams have done to mitigate controllable expense growth during a period of elevated inflation. These efforts, combined with a better than expected resolution of our non-controllable expenses last quarter, drove a substantial
SAME STORE PORTFOLIO PERFORMANCE
The following table shows Same Store performance:
($ in 000s) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||
2024 | 2023 | % | 2024 | 2023 | % | |
Total Property Revenue | 4.0 % | 5.9 % | ||||
Controllable Expenses | 13,452 | 13,543 | (0.7) % | 39,499 | 38,421 | 2.8 % |
Non-Controllable Expenses | 10,572 | 11,596 | (8.8) % | 35,023 | 33,130 | 5.7 % |
Total Property Expenses | 24,024 | 25,139 | (4.4) % | 74,522 | 71,551 | 4.2 % |
Same Store NOI | 8.4 % | 6.7 % | ||||
Less: Real Estate Tax Adjustments | — | 20 | — | 1,689 | ||
Normalized Same Store NOI | 8.4 % | 8.0 % |
In the third quarter, the Company renewed its property insurance program and finalized property taxes for its
FINANCE AND LIQUIDITY
Approximately all of the Company's debt is hedged or fixed. The Company's total debt portfolio has a weighted average effective interest rate of
Balance Sheet Metric ($ in 000s) | September 30, 2024 | June 30, 2024 |
Weighted Average Interest Rate | 4.96 % | 4.51 % |
Weighted Average Years to Maturity | 3.3 | 3.1 |
Interest Coverage Ratio | 1.7x | 1.7x |
Net Debt | ||
TTM EBITDA | ||
TTM Net Debt to EBITDA | 11.7x | 11.8x |
During the third quarter, the Company repaid the
The
At the beginning of the third quarter, the Company successfully met Sustainable KPI provisions that resulted in a 5-basis-point spread reduction for all borrowings on the Term Loan and Revolver.
ESG
The Company has again been recognized by global and national real estate organizations for its accomplishments in ESG and DEI. Most significantly, GRESB designated the Company as a Regional Listed Sector Leader in the Residential category, a recognition highlighting the top GRESB assessment performers in the
The Company was also recognized by Nareit with the Mid Cap Diversity Impact Award for its social responsibility policies.
DIVIDEND
The Company paid a dividend of
GUIDANCE
The Company has raised its 2024 guidance ranges to reflect the favorable outcome of certain non-controllable expenses that were finalized in the third quarter and continued multifamily outperformance.
Revised Guidance | Previous Guidance (July) | |||||
2024 Guidance Ranges | Low | High | Low | High | ||
Same Store Revenue Growth | 4.6 % | — | 5.0 % | 4.0 % | — | 5.0 % |
Same Store Expense Growth | 2.5 % | — | 3.0 % | 4.5 % | — | 5.5 % |
Same Store NOI Growth | 5.4 % | — | 6.2 % | 3.0 % | — | 5.0 % |
Core FFO per Share Guidance | Low | High | |
Net Loss per Share | — | ||
Other FFO adjustments per share | — | ||
Depreciation per Share | — | ||
Core FFO per Share | — |
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for Thursday, October 31, 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 third 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, October 31, 2024.
A replay of the call will also be accessible Thursday, October 31, 2024, through Sunday, December 1, 2024, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13747452.
Copies of Veris Residential, Inc.'s third quarter 2024 Form 10-Q and third quarter 2024 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website under 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, underpinned by leading corporate governance principles; a best-in-class, 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, available at https://investors.verisresidential.com/financial-information.
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 may not 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)
| ||
September 30, 2024 | December 31, 2023 | |
ASSETS | ||
Rental property | ||
Land and leasehold interests | ||
Buildings and improvements | 2,635,580 | 2,782,468 |
Tenant improvements | 12,946 | 30,908 |
Furniture, fixtures and equipment | 106,901 | 103,613 |
3,217,958 | 3,391,488 | |
Less – accumulated depreciation and amortization | (411,537) | (443,781) |
2,806,421 | 2,947,707 | |
Real estate held for sale, net | — | 58,608 |
Net investment in rental property | 2,806,421 | 3,006,315 |
Cash and cash equivalents | 12,782 | 28,007 |
Restricted cash | 19,687 | 26,572 |
Investments in unconsolidated joint ventures | 113,595 | 117,954 |
Unbilled rents receivable, net | 2,204 | 5,500 |
Deferred charges and other assets, net | 49,110 | 53,956 |
Accounts receivable | 2,041 | 2,742 |
Total Assets | ||
LIABILITIES & EQUITY | ||
Revolving credit facility and term loans | 353,580 | — |
Mortgages, loans payable and other obligations, net | 1,324,336 | 1,853,897 |
Dividends and distributions payable | 7,467 | 5,540 |
Accounts payable, accrued expenses and other liabilities | 45,509 | 55,492 |
Rents received in advance and security deposits | 10,993 | 14,985 |
Accrued interest payable | 4,816 | 6,580 |
Total Liabilities | 1,746,701 | 1,936,494 |
Redeemable noncontrolling interests | 9,294 | 24,999 |
Total Stockholders' Equity | 1,116,337 | 1,137,478 |
Noncontrolling interests in subsidiaries: | ||
Operating Partnership | 104,092 | 107,206 |
Consolidated joint ventures | 31,811 | 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 September 30, | Nine Months Ended September 30, | ||||
REVENUES | 2024 | 2023 | 2024 | 2023 | |
Revenue from leases | |||||
Management fees | 794 | 1,230 | 2,587 | 2,785 | |
Parking income | 3,903 | 3,947 | 11,570 | 11,673 | |
Other income | 1,251 | 1,361 | 5,048 | 4,596 | |
Total revenues | 68,175 | 66,473 | 202,991 | 193,277 | |
EXPENSES | |||||
Real estate taxes | 8,572 | 9,301 | 27,251 | 25,158 | |
Utilities | 2,129 | 2,039 | 6,196 | 5,863 | |
Operating services | 10,156 | 13,583 | 35,354 | 37,195 | |
Property management | 3,762 | 3,533 | 13,370 | 9,864 | |
General and administrative | 8,956 | 14,604 | 29,019 | 34,460 | |
Transaction related costs | — | 2,704 | 1,406 | 7,051 | |
Depreciation and amortization | 21,159 | 21,390 | 61,592 | 65,008 | |
Land and other impairments, net | 2,619 | — | 2,619 | 3,396 | |
Total expenses | 57,353 | 67,154 | 176,807 | 187,995 | |
OTHER (EXPENSE) INCOME | |||||
Interest expense | (21,507) | (23,715) | (64,683) | (67,422) | |
Interest cost of mandatorily redeemable noncontrolling interests | — | (36,392) | — | (49,782) | |
Interest and other investment income | 181 | 1,240 | 2,255 | 5,283 | |
Equity in earnings (loss) of unconsolidated joint ventures | (268) | 210 | 2,919 | 2,843 | |
Gain (loss) on disposition of developable land | — | — | 11,515 | (23) | |
Gain on sale of unconsolidated joint venture interests | — | — | 7,100 | — | |
Gain (loss) from extinguishment of debt, net | 8 | (1,046) | (777) | (3,702) | |
Other income (expense), net | (310) | (57) | (305) | 2,794 | |
Total other (expense) income, net | (21,896) | (59,760) | (41,976) | (110,009) | |
Loss from continuing operations before income tax expense | (11,074) | (60,441) | (15,792) | (104,727) | |
Provision for income taxes | (39) | (293) | (274) | (293) | |
Loss from continuing operations after income tax expense | (11,113) | (60,734) | (16,066) | (105,020) | |
Income from discontinued operations | 206 | 61 | 1,877 | 691 | |
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net | — | 423 | 1,548 | (2,286) | |
Total discontinued operations, net | 206 | 484 | 3,425 | (1,595) | |
Net loss | (10,907) | (60,250) | (12,641) | (106,615) | |
Noncontrolling interest in consolidated joint ventures | 391 | 592 | 1,429 | 1,815 | |
Noncontrolling interests in Operating Partnership of income from continuing operations | 923 | 5,243 | 1,293 | 9,785 | |
Noncontrolling interests in Operating Partnership in discontinued operations | (18) | (42) | (295) | 134 | |
Redeemable noncontrolling interests | (81) | (350) | (459) | (7,333) | |
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 | 92,903 | 92,177 | 92,615 | 91,762 | |
Diluted weighted average shares outstanding(6) | 101,587 | 100,925 | 101,304 | 100,770 |
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 September 30, | Nine Months Ended September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Net loss available to common shareholders | $ (9,692) | $ (54,807) | $ (10,673) | $ (102,214) | |
Add (deduct): Noncontrolling interests in Operating Partnership | (923) | (5,243) | (1,293) | (9,785) | |
Noncontrolling interests in discontinued operations | 18 | 42 | 295 | (134) | |
Real estate-related depreciation and amortization on continuing operations(1) | 23,401 | 23,746 | 68,547 | 72,087 | |
Real estate-related depreciation and amortization on discontinued operations | — | 1,926 | 668 | 10,870 | |
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 | — | (423) | (1,548) | 2,286 | |
FFO(2) | $ 12,804 | $ (34,759) | $ 48,896 | $ (26,890) | |
Add/(Deduct): | |||||
Gain (Loss) from extinguishment of debt, net | (8) | 1,046 | 777 | 3,714 | |
Land and other impairments | 2,619 | — | 2,619 | 3,396 | |
(Gain) Loss on disposition of developable land | — | — | (11,515) | 23 | |
Rebranding and Severance/Compensation related costs (G&A) | 206 | 5,904 | 2,079 | 7,869 | |
Rebranding and Severance/Compensation related costs (Property Management) | 26 | 288 | 2,390 | 288 | |
Severance/Compensation related costs (Operating Expenses) | — | 649 | — | 649 | |
Rockpoint buyout premium | — | 34,775 | — | 34,775 | |
Redemption value adjustments to mandatorily redeemable noncontrolling interests | — | — | — | 7,641 | |
Amortization of derivative premium(7) | 1,303 | 999 | 3,093 | 3,751 | |
Derivative mark to market adjustment | 16 | — | 16 | — | |
Transaction related costs | — | 2,704 | 1,406 | 7,051 | |
Core FFO | $ 16,966 | $ 11,606 | $ 49,761 | $ 42,267 | |
Add (Deduct) Non-Cash Items: | |||||
Straight-line rent adjustments(3) | (341) | 781 | (683) | 421 | |
Amortization of market lease intangibles, net | (9) | — | (25) | (79) | |
Amortization of lease inducements | — | 37 | 7 | 52 | |
Amortization of stock compensation | 3,005 | 3,234 | 9,979 | 9,725 | |
Non-real estate depreciation and amortization | 165 | 228 | 594 | 813 | |
Amortization of deferred financing costs | 1,675 | 1,353 | 4,486 | 3,185 | |
Deduct: | |||||
Non-incremental revenue generating capital expenditures: | |||||
Building improvements | (2,288) | (2,247) | (4,890) | (6,678) | |
Tenant improvements and leasing commissions(4) | (55) | (125) | (142) | (1,106) | |
Core AFFO(2) | $ 19,118 | $ 14,867 | $ 59,087 | $ 48,600 | |
Funds from Operations per share/unit-diluted | |||||
Core Funds from Operations per share/unit-diluted | |||||
Core Adjusted Funds from Operations per share/unit-diluted | |||||
Dividends declared per common share |
See Non-GAAP Financial Definitions. |
See Consolidated Statements of Operations. |
Adjusted EBITDA ($ in thousands) (unaudited) | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Core FFO (calculated on a previous page) | $ 16,966 | $ 11,606 | $ 49,761 | $ 42,267 | |
Deduct: | |||||
Equity in (earnings) loss of unconsolidated joint ventures | 268 | (210) | (3,181) | (2,843) | |
Equity in earnings share of depreciation and amortization | (2,407) | (2,584) | (7,549) | (7,740) | |
Add-back: | |||||
Interest expense | 21,507 | 23,715 | 64,683 | 68,244 | |
Amortization of derivative premium | (1,303) | (999) | (3,093) | (3,751) | |
Derivative mark to market adjustment | (16) | — | (16) | — | |
Recurring joint venture distributions | 2,374 | 2,896 | 8,252 | 8,982 | |
Noncontrolling interests in consolidated joint ventures | (391) | (592) | (1,429) | (1,815) | |
Interest cost for mandatorily redeemable noncontrolling interests | — | 1,617 | — | 7,366 | |
Redeemable noncontrolling interests | 81 | 350 | 459 | 7,333 | |
Income tax expense | 39 | 293 | 297 | 293 | |
Adjusted EBITDA | $ 37,118 | $ 36,092 | $ 108,184 | $ 118,336 |
See Consolidated Statements of Operations and Non-GAAP Financial Footnotes. |
See Non-GAAP Financial Definitions. |
Components of Net Asset Value ($ in thousands)
| |||||
Real Estate Portfolio | Other Assets | ||||
Operating Multifamily NOI1 | Total | At Share | Cash and Cash Equivalents | ||
New Jersey Waterfront | Restricted Cash | 19,687 | |||
26,032 | 26,032 | Other Assets | 53,355 | ||
Other | 30,712 | 22,651 | Subtotal Other Assets | ||
Total Multifamily NOI | |||||
Commercial NOI2 | 3,524 | 2,851 | Liabilities and Other | ||
Total NOI | |||||
Operating - Consolidated Debt at Share | |||||
Non-Strategic Assets | Operating - Unconsolidated Debt at Share | 295,863 | |||
Other Liabilities | 68,785 | ||||
Estimated Land Value3 | Revolving Credit Facility4 | 157,000 | |||
Total Non-Strategic Assets | Term Loan4 | 200,000 | |||
Preferred Units | 9,294 | ||||
Subtotal Liabilities and Other Considerations | |||||
Outstanding Shares5 | |||||
Diluted Weighted Average Shares | 102,312 | ||||
1 See Multifamily Operating Portfolio for more details. The Real Estate Portfolio table is reflective of the quarterly NOI annualized. |
2 See Commercial Assets and Developable Land for more details. |
3 Based off 4,139 potential units, see Commercial Assets and Developable Land for more details. |
4 On April 22, 2024, the Company secured a |
5 Outstanding shares for the quarter ended September 30, 2024 is comprised of the following (in 000s): 92,903 weighted average common shares outstanding, 8,684 weighted average Operating Partnership common and vested LTIP units outstanding, and 725 shares representing the dilutive effect of stock-based compensation awards. |
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 | 3Q 2024 | 2Q 2024 | 3Q 2024 | 2Q 2024 | 3Q 2024 | 2Q 2024 | ||
NJ Waterfront | |||||||||
Haus25 | 100.0 % | 750 | 95.8 % | 95.3 % | |||||
Liberty Towers* | 100.0 % | 648 | 91.7 % | 94.9 % | 4,237 | 4,206 | 5,506 | 4,833 | — |
BLVD 401 | 74.3 % | 311 | 94.7 % | 95.4 % | 4,304 | 4,186 | 2,592 | 2,236 | 116,016 |
BLVD 425 | 74.3 % | 412 | 95.2 % | 94.6 % | 4,147 | 4,052 | 3,413 | 3,161 | 131,000 |
BLVD 475 | 100.0 % | 523 | 96.8 % | 95.5 % | 4,241 | 4,122 | 4,319 | 4,474 | 165,000 |
Soho Lofts* | 100.0 % | 377 | 95.6 % | 96.6 % | 4,832 | 4,731 | 3,375 | 3,067 | — |
Urby Harborside | 85.0 % | 762 | 96.5 % | 96.7 % | 4,094 | 4,051 | 5,866 | 5,291 | 183,362 |
RiverHouse 9 | 100.0 % | 313 | 96.2 % | 96.6 % | 4,392 | 4,275 | 2,661 | 2,565 | 110,000 |
RiverHouse 11 | 100.0 % | 295 | 96.3 % | 96.7 % | 4,363 | 4,319 | 2,500 | 2,328 | 100,000 |
RiverTrace | 22.5 % | 316 | 95.3 % | 94.7 % | 3,829 | 3,764 | 2,113 | 2,176 | 82,000 |
Capstone | 40.0 % | 360 | 94.4 % | 95.9 % | 4,471 | 4,405 | 3,154 | 3,137 | 135,000 |
NJ Waterfront Subtotal | 85.0 % | 5,067 | 95.3 % | 95.7 % | |||||
Portside at East Pier | 100.0 % | 180 | 95.9 % | 95.5 % | |||||
Portside 2 at East Pier | 100.0 % | 296 | 94.8 % | 96.7 % | 3,446 | 3,395 | 2,108 | 2,117 | 95,827 |
145 Front at City Square* | 100.0 % | 365 | 95.1 % | 93.0 % | 2,475 | 2,535 | 1,467 | 1,540 | — |
The Emery | 100.0 % | 326 | 94.0 % | 94.2 % | 2,840 | 2,801 | 1,688 | 1,530 | 71,024 |
Massachusetts Subtotal | 100.0 % | 1,167 | 94.8 % | 94.7 % | |||||
Other | |||||||||
The | 100.0 % | 193 | 88.8 % | 87.7 % | |||||
The James* | 100.0 % | 240 | 93.8 % | 94.5 % | 3,148 | 3,113 | 1,535 | 1,365 | — |
Signature Place* | 100.0 % | 197 | 96.1 % | 93.7 % | 3,201 | 3,210 | 1,022 | 978 | — |
Quarry Place at Tuckahoe | 100.0 % | 108 | 98.1 % | 97.1 % | 4,293 | 4,436 | 723 | 815 | 41,000 |
Riverpark at | 45.0 % | 141 | 97.2 % | 93.6 % | 2,823 | 2,923 | 570 | 526 | 30,192 |
Metropolitan at 40 Park1 | 25.0 % | 130 | 95.6 % | 92.8 % | 3,722 | 3,750 | 731 | 735 | 34,100 |
Station House | 50.0 % | 378 | 94.7 % | 93.4 % | 3,017 | 2,851 | 1,705 | 1,627 | 87,883 |
Other Subtotal | 73.8 % | 1,387 | 94.5 % | 93.1 % | |||||
Operating Portfolio23 | 85.2 % | 7,621 | 95.1 % | 95.1 % |
1 As of September 30, 2024, Priority Capital included Metropolitan at |
2 Rental revenue associated with retail leases is included in the NOI disclosure above. Total sf outlined on Annex 6: Multifamily Operating Portfolio excludes approximately 189,367 sqft of ground floor retail, of which 142,739 sf was leased as of September 30, 2024. |
3 See Unconsolidated Joint Ventures and Annex 6: Multifamily Operating Portfolio for more details. |
*Properties that are currently in the collateral pool for the Term Loan and Revolving Credit Facility. |
See Non-GAAP Financial Definitions. |
Commercial Assets and Developable Land ($ in thousands)
| ||||||||
Commercial | Location | Ownership | Rentable SF | Percentage Leased 3Q 2024 | Percentage Leased 2Q 2024 | NOI 3Q 2024 | NOI 2Q 2024 | 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 | 12 | (1) | — | |
Port Imperial Retail South | 70.0 % | 18,064 | 92.0 % | 92.0 % | 115 | 77 | — | |
Port Imperial Retail North | 100.0 % | 8,400 | 100.0 % | 100.0 % | 46 | 127 | — | |
Riverwalk at Port Imperial | 100.0 % | 29,923 | 80.0 % | 80.0 % | 164 | 111 | — | |
Shops at 40 Park1 | 25.0 % | 50,973 | 69.0 % | 69.0 % | (46) | 656 | 6,010 | |
Commercial Total | 80.9 % | 732,403 | 78.4 % | 78.4 % |
Developable Land Parcel Units2 | |
NJ Waterfront | 2,351 |
849 | |
Other | 939 |
Developable Land Parcel Units Total | 4,139 |
1 The Company sold this joint venture on October 22, 2024. |
2 The Company has an additional 13,775 SF of developable retail space within land developments that is not represented in this table. |
See Non-GAAP Financial Definitions. |
Same Store Market Information1 | ||||||||||
Sequential Quarter Comparison (NOI in thousands) | ||||||||||
NOI at Share | Occupancy | Blended Lease Rate2 | ||||||||
Apartments | 3Q 2024 | 2Q 2024 | Change | 3Q 2024 | 2Q 2024 | Change | 3Q 2024 | 2Q 2024 | Change | |
New Jersey Waterfront | 5,067 | 7.3 % | 95.3 % | 95.7 % | (0.4) % | 6.6 % | 6.0 % | 0.6 % | ||
1,167 | 6,765 | 6,636 | 1.9 % | 94.8 % | 94.7 % | 0.1 % | 0.7 % | 5.0 % | (4.3) % | |
Other3 | 1,387 | 6,218 | 6,135 | 1.4 % | 94.5 % | 93.1 % | 1.4 % | 0.5 % | 3.0 % | (2.5) % |
Total | 7,621 | 5.9 % | 95.1 % | 95.1 % | — % | 4.6 % | 5.4 % | (0.8) % |
Year-over-Year Third Quarter Comparison (NOI in thousands) | ||||||||||
NOI at Share | Occupancy | Blended Lease Rate2 | ||||||||
Apartments | 3Q 2024 | 3Q 2023 | Change | 3Q 2024 | 3Q 2023 | Change | 3Q 2024 | 3Q 2023 | Change | |
New Jersey Waterfront | 5,067 | 12.3 % | 95.3 % | 95.9 % | (0.6) % | 6.6 % | 10.3 % | (3.7) % | ||
1,167 | 6,765 | 6,822 | (0.8) % | 94.8 % | 94.1 % | 0.7 % | 0.7 % | 7.3 % | (6.6) % | |
Other3 | 1,387 | 6,218 | 6,376 | (2.5) % | 94.5 % | 94.2 % | 0.3 % | 0.5 % | 8.3 % | (7.8) % |
Total | 7,621 | 8.4 % | 95.1 % | 95.3 % | (0.2) % | 4.6 % | 9.6 % | (5.0) % |
Average Revenue per Home (based on 7,621 units) | |||||||
Apartments | 3Q 2024 | 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 | |
New Jersey Waterfront | 5,067 | ||||||
1,167 | 2,946 | 2,931 | 2,893 | 2,925 | 2,918 | 2,836 | |
Other3 | 1,387 | 3,421 | 3,411 | 3,374 | 3,307 | 3,350 | 3,356 |
Total | 7,621 |
1 All statistics are based off the current 7,621 Same Store pool. |
2 Blended lease rates exclude properties not managed by Veris. |
3 "Other" includes properties in Suburban NJ, |
See Non-GAAP Financial Definitions. |
Same Store Performance ($ in thousands)
| ||||||||||||||
Multifamily Same Store1 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Sequential | ||||||||||||
2024 | 2023 | Change | % | 2024 | 2023 | Change | % | 3Q24 | 2Q24 | Change | % | |||
Apartment Rental Income | 4.2 % | 5.7 % | 1.8 % | |||||||||||
Parking/Other Income | 7,013 | 6,887 | 126 | 1.8 % | 21,569 | 20,015 | 1,554 | 7.8 % | 7,013 | 7,161 | (148) | (2.1) % | ||
Total Property Revenues2 | 4.0 % | 5.9 % | 1.5 % | |||||||||||
Marketing & Administration | 2,447 | 2,520 | (73) | (2.9) % | 7,120 | 7,188 | (68) | (0.9) % | 2,447 | 2,535 | (88) | (3.5) % | ||
Utilities | 2,503 | 2,415 | 88 | 3.6 % | 7,265 | 6,894 | 371 | 5.4 % | 2,503 | 2,188 | 315 | 14.4 % | ||
Payroll | 4,399 | 4,666 | (267) | (5.7) % | 13,012 | 13,297 | (285) | (2.1) % | 4,399 | 4,315 | 84 | 1.9 % | ||
Repairs & Maintenance | 4,103 | 3,942 | 161 | 4.1 % | 12,102 | 11,042 | 1,060 | 9.6 % | 4,103 | 4,386 | (283) | (6.5) % | ||
Controllable Expenses | (0.7) % | 2.8 % | 0.2 % | |||||||||||
Other Fixed Fees | 755 | 763 | (8) | (1.0) % | 2,188 | 2,216 | (28) | (1.3) % | 755 | 712 | 43 | 6.0 % | ||
Insurance | 703 | 1,163 | (460) | (39.6) % | 4,264 | 4,724 | (460) | (9.7) % | 703 | 1,781 | (1,078) | (60.5) % | ||
Real Estate Taxes | 9,114 | 9,670 | (556) | (5.7) % | 28,571 | 26,190 | 2,381 | 9.1 % | 9,114 | 9,877 | (763) | (7.7) % | ||
Non-Controllable Expenses | (8.8) % | 5.7 % | (14.5) % | |||||||||||
Total Property Expenses | (4.4) % | 4.2 % | (6.9) % | |||||||||||
Same Store GAAP NOI | 8.4 % | 6.7 % | 5.9 % | |||||||||||
Real Estate Tax Adjustments3 | — | 20 | (20) | — | 1,689 | (1,689) | — | — | — | |||||
Normalized Same Store NOI | 8.4 % | 8.0 % | 5.9 % | |||||||||||
Normalized SS NOI Margin | 68.3 % | 65.5 % | 2.8 % | 66.8 % | 65.5 % | 1.3 % | 68.3 % | 65.5 % | 2.8 % | |||||
Total Units | 7,621 | 7,621 | 7,621 | 7,621 | 7,621 | 7,621 | ||||||||
% Ownership | 85.2 % | 85.2 % | 85.2 % | 85.2 % | 85.2 % | 85.2 % | ||||||||
% Occupied - Quarter End | 95.1 % | 95.3 % | (0.2) % | 95.1 % | 95.3 % | (0.2) % | 95.1 % | 95.1 % | — % |
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. |
Debt Profile ($ in thousands) | |||||
Lender | Effective Interest Rate(1) | September 30, 2024 | December 31, 2023 | Date of Maturity | |
Repaid Permanent Loans in 2024 | |||||
Soho Lofts(2) | Flagstar Bank | 3.77 % | — | 158,777 | 07/01/29 |
145 Front at City Square(3) | US Bank | SOFR+ | — | 63,000 | 12/10/26 |
Signature Place(4) | Nationwide Life Insurance Company | 3.74 % | — | 43,000 | 08/01/24 |
Liberty Towers(5) | American General Life Insurance Company | 3.37 % | — | 265,000 | 10/01/24 |
Repaid Permanent Loans in 2024 | $— | ||||
Secured Permanent Loans | |||||
Portside 2 at East Pier | New York Life Insurance Co. | 4.56 % | 95,827 | 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 % | 116,016 | 117,000 | 08/10/26 |
Portside at East Pier(6) | KKR | SOFR + | 56,500 | 56,500 | 09/07/26 |
The | Bank of New York Mellon | SOFR + | 75,000 | 75,000 | 10/27/26 |
RiverHouse 9(8) | 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 |
Port Imperial Garage South | American General Life & A/G PC | 4.85 % | 31,237 | 31,645 | 12/01/29 |
The Emery | Flagstar Bank | 3.21 % | 71,024 | 72,000 | 01/01/31 |
Secured Permanent Loans Outstanding | |||||
Secured and/or Repaid Permanent Loans | |||||
Unamortized Deferred Financing Costs | (11,329) | (15,086) | |||
Secured Permanent Loans | |||||
Secured RCF & Term Loans: | |||||
Revolving Credit Facility(9) | Various Lenders | SOFR + | $— | 04/22/27 | |
Term Loan(9) | Various Lenders | SOFR + | 200,000 | — | 04/22/27 |
RCF & Term Loan Balances | $— | ||||
Unamortized Deferred Financing Costs | (3,420) | — | |||
Total RCF & Term Loan Debt | $— | ||||
Total Debt |
See Debt Profile Footnotes. |
Debt Summary and Maturity Schedule ($ in thousands) | ||||
As of September 30, | ||||
Balance | % of Total | Weighted Average Interest Rate | Weighted Average Maturity in Years | |
Fixed Rate & Hedged Debt | ||||
Fixed Rate & Hedged Secured Debt | 99.6 % | 4.93 % | 3.0 | |
Variable Rate Debt | ||||
Variable Rate Debt1 | 7,000 | 0.4 % | 7.65 % | 2.6 |
Totals / Weighted Average | 100.0 % | 4.94 % | 3.0 | |
Unamortized Deferred Financing Costs | (14,749) | |||
Total Consolidated Debt, net | ||||
Partners' Share | (72,941) | |||
VRE Share of Total Consolidated Debt, net2 | ||||
Unconsolidated Secured Debt | ||||
VRE Share | 53.0 % | 4.88 % | 4.5 | |
Partners' Share | 262,684 | 47.0 % | 4.88 % | 4.5 |
Total Unconsolidated Secured Debt | 100.0 % | 4.88 % | 4.5 | |
Pro Rata Debt Portfolio | ||||
Fixed Rate & Hedged Secured Debt | 99.6 % | 4.95 % | 3.3 | |
Variable Rate Secured Debt | 8,503 | 0.4 % | 7.59 % | 2.2 |
Total Pro Rata Debt Portfolio | 100.0 % | 4.96 % | 3.3 |
Debt Maturity Schedule as of September 3034 | ||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | |
Secured Debt | ||||||||
Term Loan Draw | ||||||||
Revolver | ||||||||
Unused Revolver Capacity |
1 Variable rate debt includes the unhedged balance on the Revolver. |
2 Minority interest share of consolidated debt is comprised of |
3 The Term Loan, Revolver and Unused Revolver Capacity are are shown with the one-year extension option utilized on the new facilities. At quarter end, the Term Loan was fully drawn and hedged at a strike of |
4 The graphic reflects consolidated debt balances only. |
Annex 1: Transaction Activity | |||||
2024 Dispositions to Date | |||||
($ in thousands except per SF) | |||||
Location | Transaction Date | Number of | 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 | |
6 Becker/85 | 4/30/2024 | N/A | N/A | 27,900 | |
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 | |||
Retail | |||||
Shops at 40 Park2 | 10/22/2024 | 1 | 50,973 | ||
Subtotal Retail | 1 | 50,973 | |||
2024 Dispositions to Date |
1 The joint venture sold the property; releasing approximately |
2 The joint venture sold the property for |
Annex 2: Reconciliation of Net Income (Loss) to NOI (three months ended) | |||
3Q 2024 | 2Q 2024 | ||
Total | Total | ||
Net Income (Loss) | $ (10,907) | $ 2,735 | |
Deduct: | |||
Income from discontinued operations | (206) | (1,419) | |
Management Fees | (794) | (871) | |
Interest and other investment income | (181) | (1,536) | |
Equity in (earnings) loss of unconsolidated joint ventures | 268 | (2,933) | |
(Gain) loss on disposition of developable land | — | (10,731) | |
(Gain) loss from extinguishment of debt, net | (8) | 785 | |
Other income, net | 310 | 250 | |
Add: | |||
Property management | 3,762 | 4,366 | |
General and administrative | 8,956 | 8,975 | |
Transaction related costs | — | 890 | |
Depreciation and amortization | 21,159 | 20,316 | |
Interest expense | 21,507 | 21,676 | |
Provision for income taxes | 39 | 176 | |
Net Operating Income (NOI) | $ 41,286 | $ 42,679 |
Summary of Consolidated Multifamily NOI by Type (unaudited): | 3Q 2024 | 2Q 2024 | |
Total Consolidated Multifamily - Operating Portfolio | $ 43,477 | $ 40,864 | |
Total Consolidated Commercial | 927 | 905 | |
Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests) | $ 44,404 | $ 41,769 | |
NOI (loss) from services, land/development/repurposing & other assets | 427 | 1,166 | |
Total Consolidated Multifamily NOI | $ 44,831 | $ 42,935 | |
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 | |
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. |
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 8,684 and 8,748 shares for the three months ended September 30, 2024 and 2023, respectively, and 8,689 and 9,007 for the nine months ended September 30, 2024 and 2023, respectively, plus dilutive Common Stock Equivalents (i.e. stock options). |
7. | Includes the Company's share from unconsolidated joint ventures of |
See Consolidated Statement of Operations. | |
See FFO, Core FFO and Core AFFO. | |
See Adjusted EBITDA. |
Annex 4: Unconsolidated Joint Ventures ($ in thousands)
| |||||||
Property | Units | Physical Occupancy | VRE's Nominal Ownership1 | 3Q 2024 NOI2 | Total Debt | VRE Share of 3Q NOI | VRE Share of Debt |
Multifamily | |||||||
Urby Harborside | 762 | 96.5 % | 85.0 % | ||||
RiverTrace at Port Imperial | 316 | 95.3 % | 22.5 % | 2,113 | 82,000 | 475 | 18,450 |
Capstone at Port Imperial | 360 | 94.4 % | 40.0 % | 3,154 | 135,000 | 1,262 | 54,000 |
Riverpark at | 141 | 97.2 % | 45.0 % | 570 | 30,192 | 257 | 13,586 |
Metropolitan at 40 Park | 130 | 95.6 % | 25.0 % | 731 | 34,100 | 183 | 8,525 |
Station House | 378 | 94.7 % | 50.0 % | 1,705 | 87,883 | 853 | 43,942 |
Total Multifamily | 2,087 | 95.6 % | 55.0 % | ||||
Retail | |||||||
Shops at 40 Park3 | N/A | 69.0 % | 25.0 % | (46) | 6,010 | (12) | 1,503 |
Total Retail | N/A | 69.0 % | 25.0 % | ||||
Total UJV | 2,087 | 55.0 % |
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 The Company sold this joint venture on October 22, 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 Soho Lofts was repaid in full on June 28, 2024, through a |
3. | The loan on 145 Front Street was repaid in full on May 22, 2024 using cash on hand. |
4. | The loan on Signature Place was repaid in full at maturity on August 1, 2024, through a |
5. | The loan on Liberty Towers was repaid in full at maturity on September 30, 2024, through a combination of a |
6. | The loan on Portside at East Pier is capped at a strike rate of |
7. | The loan on |
8. | The loan on RiverHouse 9 is capped at a strike rate of |
9. | The Company's facilities consist of a |
Balance as of | Initial | Deferred | 5 bps | Updated | SOFR or | All In | |
Secured Revolving Credit Facility (Unhedged) | 2.10 % | 0.66 % | (0.05) % | 2.71 % | 4.94 % | 7.65 % | |
Secured Revolving Credit Facility | 2.10 % | 0.66 % | (0.05) % | 2.71 % | 3.50 % | 6.21 % | |
Secured Term Loan | 2.10 % | 0.66 % | (0.05) % | 2.71 % | 3.50 % | 6.21 % |
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 % | 412 | 369,515 | 897 | 2003 | |
BLVD 425 | 100.0 % | 523 | 475,459 | 909 | 2011 | |
BLVD 475 | 74.3 % | 311 | 273,132 | 878 | 2016 | |
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 % | 180 | 154,859 | 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 % | 1,167 | 963,549 | 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 Portfolio1 | 85.2 % | 7,621 | 6,635,610 | 871 |
See Multifamily Operating Portfolio. | |
1 Total sf outlined excludes approximately 189,367 sqft of ground floor retail, of which 142,739 sf was leased as of September 30, 2024. |
Annex 7: Noncontrolling Interests in Consolidated Joint Ventures | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
BLVD 425 | $ 155 | $ 59 | $ 327 | $ 130 | |
BLVD 401 | (528) | (672) | (1,687) | (1,919) | |
Port Imperial Garage South | 12 | 21 | (3) | (40) | |
Port Imperial Retail South | 5 | 21 | 34 | 84 | |
Other consolidated joint ventures | (35) | (21) | (100) | (70) | |
Net losses in noncontrolling interests | $ (391) | $ (592) | $ (1,429) | $ (1,815) | |
Depreciation in noncontrolling interests | 721 | 715 | 2,179 | 2,141 | |
Funds from operations - noncontrolling interest in consolidated joint ventures | $ 330 | $ 123 | $ 750 | $ 326 | |
Interest expense in noncontrolling interest in consolidated joint ventures | 787 | 790 | 2,359 | 2,374 | |
Net operating income before debt service in consolidated joint ventures | $ 1,117 | $ 913 | $ 3,109 | $ 2,700 |
See Adjusted EBITDA . |
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, 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.
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 was Veris Residential's (VRE) Core FFO per share in Q3 2024?
What is VRE's revised Core FFO guidance for 2024?
What was VRE's Same Store occupancy rate in Q3 2024?