JERSEY
CITY, N.J., Feb. 21,
2024 /PRNewswire/ -- Veris Residential, Inc. (NYSE:
VRE) (the "Company"), a forward-thinking, environmentally and
socially conscious multifamily REIT, today reported results for the
fourth quarter and full year 2023.
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Net Income (Loss) per
Diluted Share
|
$(0.06)
|
$0.34
|
|
$(1.22)
|
$(0.63)
|
|
Core FFO per Diluted
Share
|
$0.12
|
$0.05
|
|
$0.53
|
$0.44
|
|
Dividends Declared per
Share
|
$0.0525
|
$—
|
|
$0.1025
|
$—
|
ANOTHER YEAR OF OPERATIONAL OUTPERFORMANCE
- Grew Core FFO per share to $0.53,
an increase of 20% compared to last year.
- Exceeded upper end of NOI guidance, achieving 17.6% annual
growth, driven by strong revenue growth and effective expense
mitigation measures.
- Further improved NOI margin to 64% from 62% in 2022 and 57% in
2021.
- Same Store multifamily Blended Net Rental Growth Rate of 5.0%
for the quarter and 9.3% for the year.
- Reduced Core G&A by 13% compared to 2022.
- Reinstated quarterly dividend, subsequently raising it by 5% in
the fourth quarter.
- Recognized by Nareit for leadership in sustainability and DEI
efforts.
COMPLETED TRANSFORMATION TO A PURE-PLAY
MULTIFAMILY REIT
- Sold over $700 million of
non-strategic assets since the beginning of 2023, comprising eight
properties and four land parcels.
- Signed a binding contract to sell Harborside 5, our last office
property, for $85 million in
January 2024.
- Negotiated the early redemption of Rockpoint's preferred
interest for $520 million.
- Refinanced $400 million of debt
and reduced overall indebtedness by $50
million.
|
December 31,
2023
|
December 31,
2022
|
%
Change
|
|
Operating
Units
|
7,681
|
6,931
|
10.8 %
|
|
% Physical
Occupancy
|
94.4 %
|
95.3 %
|
(1.0) %
|
|
Same Store
Units
|
6,691
|
5,825
|
14.9 %
|
|
Same Store
Occupancy
|
94.4 %
|
95.6 %
|
(1.3) %
|
|
Same Store Blended
Rental Growth Rate
|
5.0 %
|
11.7 %
|
(57.3) %
|
|
Average Rent per
Home
|
$3,792
|
$3,482
|
8.9 %
|
Mahbod Nia, Chief Executive
Officer, commented: "Over the past three years, we have
successfully transformed Veris Residential from a complex company
to a pure-play multifamily REIT underpinned by a high-quality
portfolio of Class A properties and a vertically integrated,
best-in-class operating platform. While we have built a strong
foundation to date, the potential for continued value creation and
relative outperformance as we mature as a multifamily company is
tremendous. We look forward to this next phase, during which we
will work to further optimize our operations, capital and balance
sheet to the benefit of our stakeholders."
SAME STORE PORTFOLIO PERFORMANCE
|
2023 Actual
Growth
|
Original
Guidance
Range for 2023
|
Adjusted
Guidance
Range from Previous
Quarter
|
|
Same Store Revenue
Growth
|
11.0 %
|
4-6%
|
9-10%
|
|
Same Store Expense
Growth
|
0.4 %
|
4-6%
|
2-3%
|
|
Same Store NOI
Growth
|
17.6 %
|
4-6%
|
14-15%
|
The following table presents a more detailed breakout of Same
Store performance:
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
%
|
|
2023
|
2022
|
%
|
|
Total Property
Revenue
|
$61,497
|
$57,133
|
7.6 %
|
|
$241,078
|
$217,284
|
11.0 %
|
|
Controllable
Expenses
|
11,729
|
11,191
|
4.8 %
|
|
44,558
|
42,773
|
4.2 %
|
|
Non-Controllable
Expenses
|
10,693
|
12,169
|
(12.1) %
|
|
40,260
|
41,669
|
(3.4) %
|
|
Total Property
Expenses
|
22,422
|
23,360
|
(4.0) %
|
|
84,818
|
84,442
|
0.4 %
|
|
Same Store
NOI
|
$39,075
|
$33,773
|
15.7 %
|
|
$156,260
|
$132,842
|
17.6 %
|
Haus25 and The James will be added to the Same Store pool in the
first quarter of this year. These properties contributed over
$8 million to NOI in the fourth
quarter.
TRANSACTION ACTIVITY
In 2023, the Company closed over $660
million of non-strategic sales, including two hotel
properties, five office properties and three land plots.
|
Quarter
|
Gross Price
(000s)
|
|
1Q
|
$105,000
|
|
2Q
|
$420,000
|
|
3Q
|
$46,000
|
|
4Q
|
$89,000
|
In October 2023, the Company
closed on the sales of Harborside 4, 3 Campus and 23 Main for
a combined gross price of $89
million, releasing approximately $82
million in net proceeds.
Subsequent to year end, the Company closed on the sales of 2
Campus and The Metropolitan Lofts joint venture for a combined
gross price of $40 million, releasing
approximately $16 million in net
proceeds.
Currently, $139 million of
non-strategic assets remain under binding contract, including our
last office property, Harborside 5.
FINANCE AND LIQUIDITY
As of February 20, 2024, available
liquidity is approximately $95
million, taking into account cash on hand and the capacity
of the Revolving Credit Facility ("Revolver"). Virtually all
(99.9%) of the Company`s debt is hedged or fixed. The Company`s
total debt portfolio has a weighted average rate of 4.5% and
weighted average maturity of 3.7 years.
|
Three Months Ended
December 31,
|
|
Balance Sheet
Metric
|
2023
|
2022
|
|
Weighted Average
Interest Rate
|
4.5 %
|
4.4 %
|
|
Weighted Average Years
to Maturity
|
3.7 years
|
4.1 years
|
|
Net-Debt-to-Adjusted
EBITDA
|
13.8x
|
13.5x
|
|
Annualized Adjusted
EBITDA
|
129,992
|
137,892
|
|
Interest Coverage
Ratio
|
1.5x
|
1.5x
|
In the fourth quarter, the Company reestablished an "ATM"
(At-the-Market) program, through which the Company may issue and
sell, from time to time, up to $100
million of shares of its common stock. The Company intends
to use net proceeds from any sales of these shares under the ATM
program for general corporate purposes.
The $60 million Revolver remains
undrawn as of February 20, 2024.
ESG
Throughout the fourth quarter, the Company earned recognition
from top real estate and business organizations for leadership in
ESG, DEI and corporate stewardship. Most significantly, the Company
was named a Leader in the Light by Nareit for superior
sustainability efforts in the residential sector. The achievement
partially reflects the results of the GRESB Annual Survey, through
which the Company was honored as a Global Listed and Regional
Sector Leader with a second-consecutive 5 Star rating. The Company
was also awarded Nareit's Bronze Diversity, Equity & Inclusion
Recognition.
DIVIDEND POLICY
As previously announced, the Company`s Board of Directors
declared a quarterly dividend on its common stock for the fourth
quarter 2023 in the amount of $0.0525
per share, an increase of 5% from the previous dividend. The
dividend was paid on January
10th.
OPERATIONAL GUIDANCE
Recognizing the tremendous operational outperformance realized
in 2023 while also considering the state of the current market and
potential for Veris to achieve continued positive growth, the
Company is establishing its 2024 guidance ranges in accordance with
the following table:
|
2024 Guidance
Ranges
|
Low
|
|
High
|
|
Same Store Revenue
Growth
|
4.0 %
|
—
|
5.0 %
|
|
Same Store Expense
Growth
|
5.0 %
|
—
|
6.0 %
|
|
Same Store NOI
Growth
|
2.5 %
|
—
|
5.0 %
|
|
Core FFO per Share
Guidance
|
Low
|
|
High
|
|
Net Loss per
Share
|
$(0.40)
|
—
|
$(0.35)
|
|
Add back: Depreciation
per Share
|
$0.88
|
—
|
$0.88
|
|
Core FFO per
Share
|
$0.48
|
—
|
$0.53
|
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for
Thursday, February 22, 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 fourth quarter 2023 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, February 22,
2024.
A replay of the call will also be accessible Thursday, February 22, 2024, through Friday, March 22, 2024, by calling (844) 512-2921
(domestic) or (412) 317-6671 (international) and using the
passcode, 13743562.
Copies of Veris Residential, Inc.'s 2023 Form 10-K and
fourth quarter 2023 Supplemental Operating and Financial Data
are available on Veris Residential, Inc.'s website: Financial
Results.
In addition, once filed, these items will be available upon
request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
ABOUT THE COMPANY
Veris Residential, Inc. is a forward-thinking, environmentally
and socially conscious real estate investment trust (REIT) that
primarily owns, operates, acquires and develops
holistically-inspired, Class A multifamily properties that meet the
sustainability-conscious lifestyle needs of today's residents while
seeking to positively impact the communities it serves and the
planet at large. The company is guided by an experienced management
team and Board of Directors and is underpinned by leading corporate
governance principle; a best-in-class and sustainable approach to
operations; and an inclusive culture based on equality and
meritocratic empowerment.
For additional information on Veris Residential, Inc. and our
properties available for lease, please visit http://
www.verisresidential.com/.
The information in this press release must be read in
conjunction with, and is modified in its entirety by, the Quarterly
Report on Form 10-K (the "10-K") 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-K, the footnotes thereto
and the limitations set forth therein. Investors may not rely on
the press release without reference to the 10-K 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
|
See additional details on Company Information.
|
Consolidated Balance Sheet
|
|
(in thousands)
(unaudited)
|
|
|
December 31,
2023
|
December 31,
2022
|
|
ASSETS
|
Multifamily
|
Office/Corp.
|
Total
|
|
|
Rental
property
|
|
|
|
|
|
Land and leasehold
interests
|
$468,556
|
$5,943
|
$474,499
|
$492,204
|
|
Buildings and
improvements
|
2,642,626
|
139,842
|
2,782,468
|
3,332,315
|
|
Tenant
improvements
|
7,866
|
23,042
|
30,908
|
122,509
|
|
Furniture, fixtures and
equipment
|
96,057
|
7,556
|
103,613
|
99,094
|
|
3,215,105
|
176,383
|
3,391,488
|
4,046,122
|
|
Less – accumulated
depreciation and amortization
|
(345,386)
|
(98,395)
|
(443,781)
|
(631,910)
|
|
2,869,719
|
77,988
|
2,947,707
|
3,414,212
|
|
Real estate held for
sale, net
|
58,608
|
—
|
58,608
|
193,933
|
|
Net investment in
rental property
|
2,928,327
|
77,988
|
3,006,315
|
3,608,145
|
|
Cash and cash
equivalents
|
6,685
|
21,322
|
28,007
|
26,782
|
|
Restricted
cash
|
19,891
|
6,681
|
26,572
|
20,867
|
|
Investments in
unconsolidated joint ventures
|
117,954
|
—
|
117,954
|
126,158
|
|
Unbilled rents
receivable, net
|
1,558
|
3,942
|
5,500
|
39,734
|
|
Deferred charges and
other assets, net12
|
43,392
|
10,564
|
53,956
|
96,162
|
|
Accounts
receivable
|
1,796
|
946
|
2,742
|
2,920
|
|
Total
Assets
|
$3,119,603
|
$121,443
|
$3,241,046
|
$3,920,768
|
|
LIABILITIES &
EQUITY
|
|
|
|
|
|
Mortgages, loans
payable and other obligations, net
|
1,853,897
|
—
|
1,853,897
|
1,903,977
|
|
Dividends and
distributions payable
|
—
|
5,540
|
5,540
|
110
|
|
Accounts payable,
accrued expenses and other liabilities
|
30,341
|
25,151
|
55,492
|
72,041
|
|
Rents received in
advance and security deposits
|
11,590
|
3,395
|
14,985
|
22,941
|
|
Accrued interest
payable
|
6,580
|
—
|
6,580
|
7,131
|
|
Total
Liabilities
|
1,902,408
|
34,086
|
1,936,494
|
2,006,200
|
|
Redeemable
noncontrolling interests
|
—
|
24,999
|
24,999
|
515,231
|
|
Total
Stockholders'/Members Equity
|
1,182,056
|
(44,578)
|
1,137,478
|
1,235,685
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
—
|
107,206
|
107,206
|
126,109
|
|
Consolidated joint
ventures
|
35,139
|
(270)
|
34,869
|
37,543
|
|
Total Noncontrolling
Interests in Subsidiaries
|
$35,139
|
$106,936
|
$142,075
|
$163,652
|
|
Total
Equity
|
$1,217,195
|
$62,358
|
$1,279,553
|
$1,399,337
|
|
Total Liabilities
and Equity
|
$3,119,603
|
$121,443
|
$3,241,046
|
$3,920,768
|
|
_____________________________________________
|
|
1 Includes
mark-to-market lease intangible net assets of $10,034 and
mark-to-market lease intangible net liabilities of $298 as of 4Q
2023.
|
|
2 Includes
Prepaid Expenses and Other Assets attributable to Multifamily of
$29,481 as follows: (i) deposits of $4,819, (i) other receivables
of $14,544, (iii) other prepaid/assets of $8,882, and (iv) prepaid
taxes of $1,236.
|
|
Consolidated
Statement of Operations
|
|
(In thousands,
except per share amounts)
(unaudited) 12
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
REVENUES
|
2023
|
2022
|
|
2023
|
2022
|
|
Revenue from
leases
|
$66,183
|
$60,032
|
|
$252,144
|
$206,052
|
|
Real estate
services
|
1,084
|
888
|
|
3,868
|
3,581
|
|
Parking
income
|
4,462
|
4,160
|
|
18,036
|
15,819
|
|
Other income
|
1,188
|
2,104
|
|
5,811
|
7,996
|
|
Total
revenues
|
72,917
|
67,184
|
|
279,859
|
233,448
|
|
EXPENSES
|
|
|
|
|
|
|
Real estate
taxes
|
11,077
|
12,447
|
|
40,810
|
39,112
|
|
Utilities
|
2,293
|
2,191
|
|
9,922
|
8,921
|
|
Operating
services
|
16,364
|
13,443
|
|
57,925
|
52,797
|
|
Real estate services
expenses
|
4,323
|
2,514
|
|
14,188
|
10,549
|
|
General and
administrative
|
9,992
|
12,221
|
|
44,472
|
56,014
|
|
Transaction-related
costs
|
576
|
2,119
|
|
7,627
|
3,468
|
|
Depreciation and
amortization
|
23,046
|
23,619
|
|
93,589
|
85,434
|
|
Property
impairments
|
32,516
|
—
|
|
32,516
|
—
|
|
Land and other
impairments, net
|
5,928
|
—
|
|
9,324
|
9,368
|
|
Total
expenses
|
106,115
|
68,554
|
|
310,373
|
265,663
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
Interest
expense
|
(21,933)
|
(21,215)
|
|
(89,355)
|
(66,381)
|
|
Interest cost of
mandatorily redeemable noncontrolling interests
|
—
|
—
|
|
(49,782)
|
—
|
|
Interest and other
investment income
|
232
|
102
|
|
5,515
|
729
|
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
260
|
(647)
|
|
3,102
|
1,200
|
|
Realized gains (losses)
and unrealized gains (losses) on disposition of rental property,
net
|
(3)
|
—
|
|
—
|
—
|
|
Gain (loss) on
disposition of developable land
|
7,090
|
(486)
|
|
7,068
|
57,262
|
|
Loss
from extinguishment of debt, net
|
(1,903)
|
—
|
|
(5,606)
|
(129)
|
|
Other income,
net
|
77
|
—
|
|
2,871
|
—
|
|
Total other income
(expense), net
|
(16,180)
|
(22,246)
|
|
(126,187)
|
(7,319)
|
|
Loss from continuing
operations before income tax expense
|
(49,378)
|
(23,616)
|
|
(156,701)
|
(39,534)
|
|
Provision for income
taxes
|
(199)
|
—
|
|
(492)
|
—
|
|
Loss from continuing
operations after income tax expense
|
(49,577)
|
(23,616)
|
|
(157,193)
|
(39,534)
|
|
(Loss) income from
discontinued operations
|
(140)
|
(12,547)
|
|
3,150
|
(64,704)
|
|
Realized gains (losses)
and unrealized gains (losses) on disposition of rental property and
impairments, net
|
43,971
|
77,057
|
|
41,682
|
69,353
|
|
Total discontinued
operations, net
|
43,831
|
64,510
|
|
44,832
|
4,649
|
|
Net (loss)
income
|
(5,746)
|
40,894
|
|
(112,361)
|
(34,885)
|
|
Noncontrolling interest
in consolidated joint ventures
|
504
|
595
|
|
2,319
|
3,079
|
|
Noncontrolling
interests in Operating Partnership of income from continuing
operations
|
4,252
|
2,723
|
|
14,267
|
5,652
|
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
(3,776)
|
(5,975)
|
|
(3,872)
|
(378)
|
|
Redeemable
noncontrolling interests
|
(285)
|
(6,366)
|
|
(7,618)
|
(25,534)
|
|
Net (loss) income
available to common shareholders
|
$(5,051)
|
$31,871
|
|
$(107,265)
|
$(52,066)
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
Net loss available to
common shareholders
|
$(0.06)
|
$0.34
|
|
$(1.22)
|
$(0.63)
|
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
Net loss available to
common shareholders
|
$(0.06)
|
$0.34
|
|
$(1.22)
|
$(0.63)
|
|
Basic weighted average
shares outstanding
|
92,240
|
91,115
|
|
91,883
|
91,046
|
|
Diluted weighted
average shares outstanding
|
100,936
|
100,417
|
|
100,812
|
100,265
|
|
_______________________________________________
|
|
1 For more
details see Reconciliation to Net Income (Loss) to
NOI
|
|
2 For
detailed contribution breakout see Consolidated Statement of
Operations (Year-End)
|
|
FFO and
Core FFO
|
|
(in thousands,
except per share/unit amounts)
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Net income (loss)
available to common shareholders
|
$(5,051)
|
$31,871
|
|
$(107,265)
|
$(52,066)
|
|
Add (deduct):
Noncontrolling interests in Operating Partnership
|
(4,252)
|
(2,723)
|
|
(14,267)
|
(5,652)
|
|
Noncontrolling
interests in discontinued operations
|
3,776
|
5,975
|
|
3,872
|
378
|
|
Real estate-related
depreciation and amortization on continuing
operations(1)
|
25,428
|
25,949
|
|
103,049
|
95,103
|
|
Real estate-related
depreciation and amortization on discontinued operations
|
—
|
5,036
|
|
5,335
|
26,370
|
|
Property impairments on
continuing operations
|
32,516
|
—
|
|
32,516
|
—
|
|
Property impairments on
discontinued operations
|
—
|
10,302
|
|
—
|
94,811
|
|
Discontinued
operations: Gain on sale from unconsolidated joint
ventures
|
—
|
(7,677)
|
|
—
|
(7,677)
|
|
Continuing operations:
Realized (gains) losses and unrealized (gains) losses on
disposition of rental property, net
|
3
|
—
|
|
—
|
—
|
|
Discontinued
operations: Realized (gains) losses and unrealized (gains) losses
on disposition of rental property, net
|
(4,700)
|
(69,380)
|
|
(2,411)
|
(61,676)
|
|
FFO(2)
|
$47,720
|
$(647)
|
|
$20,829
|
$89,591
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
Loss from
extinguishment of debt, net
|
1,903
|
1,014
|
|
5,618
|
7,432
|
|
Land and other
impairments
|
5,928
|
—
|
|
9,324
|
9,368
|
|
Loss (gain) on
disposition of developable land
|
(46,361)
|
486
|
|
(46,339)
|
(57,262)
|
|
Rebranding and
Severance/Compensation related costs (G&A)
|
129
|
1,836
|
|
7,987
|
14,080
|
|
Rebranding and
Severance/Compensation related costs (RE Services)
|
829
|
—
|
|
1,128
|
—
|
|
Rebranding and
Severance/Compensation related costs (Operating
Services)
|
—
|
—
|
|
649
|
—
|
|
Rockpoint buyout
premium
|
—
|
—
|
|
34,775
|
—
|
|
Redemption value
adjustment to mandatorily redeemable noncontrolling
interests
|
—
|
—
|
|
7,641
|
—
|
|
Lease breakage fee,
net
|
—
|
—
|
|
—
|
(22,664)
|
|
Amortization of
derivative premium
|
902
|
500
|
|
4,654
|
287
|
|
Transaction related
costs
|
576
|
2,119
|
|
7,627
|
3,468
|
|
Core
FFO
|
$11,626
|
$5,308
|
|
$53,893
|
$44,300
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding(6)
|
100,936
|
100,417
|
|
100,812
|
100,265
|
|
|
|
|
|
|
|
Funds from operations
per share-diluted
|
$0.47
|
$(0.01)
|
|
$0.21
|
$0.89
|
|
Core Funds from
Operations per share/unit-diluted
|
$0.12
|
$0.05
|
|
$0.53
|
$0.44
|
|
Dividends declared per
common share
|
$0.0525
|
—
|
|
$0.1025
|
—
|
See Core FFO per Diluted Share.
See Consolidated Statements of Operations Footnotes.
See Non GAAP Financial Definitions.
|
AFFO and Adjusted EBITDA
|
|
($ in thousands,
except per share amounts) (unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Core FFO (calculated on
previous page)
|
$11,626
|
$5,308
|
|
$53,893
|
$44,300
|
|
Add (Deduct) Non-Cash
Items:
|
|
|
|
|
|
|
Straight-line rent
adjustments(3)
|
81
|
(1,273)
|
|
502
|
157
|
|
Amortization of market
lease intangibles, net
|
—
|
(30)
|
|
(80)
|
(155)
|
|
Amortization of lease
inducements
|
5
|
16
|
|
57
|
129
|
|
Amortization of stock
compensation
|
3,270
|
2,829
|
|
12,995
|
11,339
|
|
Non-real estate
depreciation and amortization
|
216
|
395
|
|
1,028
|
1,328
|
|
Amortization of
deferred financing costs
|
1,255
|
1,219
|
|
4,440
|
4,821
|
|
Deduct:
|
|
|
|
|
|
|
Non-incremental revenue
generating capital expenditures:
|
|
|
|
|
|
|
Building
improvements
|
(1,670)
|
(3,748)
|
|
(8,348)
|
(14,992)
|
|
Tenant improvements
and leasing commissions(4)
|
(229)
|
(255)
|
|
(789)
|
(10,773)
|
|
Tenant improvements and
leasing commissions on space vacant for more than one
year
|
(659)
|
(4,546)
|
|
(1,205)
|
(23,823)
|
|
Core
AFFO(2)
|
$13,895
|
$(85)
|
|
$62,493
|
$12,331
|
|
|
|
|
|
|
|
Core FFO (calculated on
previous page)
|
$11,626
|
$5,308
|
|
$53,893
|
$44,300
|
|
Deduct:
|
|
|
|
|
|
|
Equity in (earnings)
loss of unconsolidated joint ventures
|
(260)
|
647
|
|
(3,102)
|
(1,200)
|
|
Equity in earnings
share of depreciation and amortization
|
(2,597)
|
(2,574)
|
|
(10,337)
|
(10,392)
|
|
Add-back:
|
|
|
|
|
|
|
Interest
expense
|
21,933
|
23,171
|
|
90,177
|
78,040
|
|
Amortization of
derivative premium
|
(902)
|
(500)
|
|
(4,654)
|
(287)
|
|
Recurring joint venture
distributions
|
2,718
|
2,471
|
|
11,700
|
12,000
|
|
Noncontrolling
interests in consolidated joint ventures
|
(504)
|
(595)
|
|
(2,319)
|
(3,079)
|
|
Interest cost of
mandatorily redeemable noncontrolling interests
|
—
|
—
|
|
7,366
|
—
|
|
Redeemable
noncontrolling interests
|
285
|
6,366
|
|
7,618
|
25,534
|
|
Provision for income
taxes
|
199
|
179
|
|
492
|
274
|
|
Adjusted
EBITDA
|
$32,498
|
$34,473
|
|
$150,834
|
$145,190
|
|
|
|
|
|
|
|
Net debt at period
end(5)
|
1,799,318
|
1,856,328
|
|
1,799,318
|
1,856,328
|
|
Net debt to Adjusted
EBITDA
|
13.8x
|
13.5x
|
|
11.9x
|
12.8x
|
See Consolidated Statements of Operations Footnotes.
See Non GAAP Financial Definitions.
|
EBITDAre (Quarterly
Comparison)
|
|
($ in
thousands) (unaudited)
|
|
|
Three Months Ended
December 31,
|
|
2023
|
2022
|
|
Net income (loss)
available to common shareholders
|
$(5,051)
|
$31,871
|
|
Add/(Deduct):
|
|
|
|
Noncontrolling
interests in Operating Partnership of income from continuing
operations
|
(4,252)
|
(2,723)
|
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
3,776
|
5,975
|
|
Noncontrolling
interests in consolidated joint ventures(a)
|
(504)
|
(595)
|
|
Redeemable
noncontrolling interests
|
285
|
6,366
|
|
Interest
expense
|
21,933
|
23,171
|
|
Provision for income
taxes
|
199
|
179
|
|
Depreciation and
amortization
|
23,046
|
28,806
|
|
Deduct:
|
|
|
|
Continuing operations:
Realized (gains) losses and unrealized (gains) losses on
disposition of rental property, net
|
3
|
—
|
|
Discontinued
operations: Realized (gains) losses and unrealized (gains) losses
on disposition of rental property, net
|
(4,700)
|
(69,380)
|
|
Discontinued
operations: Gain on sale from unconsolidated joint
ventures
|
—
|
(7,677)
|
|
Equity in (earnings)
loss of unconsolidated joint ventures
|
(260)
|
647
|
|
Add:
|
|
|
|
Property
impairments
|
32,516
|
10,302
|
|
Company's share of
property NOI's in unconsolidated joint
ventures(1)
|
7,768
|
6,694
|
|
EBITDAre
|
$74,759
|
$33,636
|
|
Add:
|
|
|
|
Loss from
extinguishment of debt, net
|
1,903
|
1,014
|
|
Severance and
compensation-related costs
|
129
|
1,836
|
|
Transaction-related
costs
|
576
|
2,119
|
|
Land and other
impairments, net
|
5,928
|
—
|
|
Gain on disposition of
developable land
|
(46,361)
|
486
|
|
Amortization of
derivative premium
|
902
|
500
|
|
Adjusted
EBITDAre
|
$37,836
|
$39,591
|
|
(a) Noncontrolling
interests in consolidated joint ventures:
|
|
|
|
BLVD 425
|
72
|
6
|
|
BLVD 401
|
(568)
|
(600)
|
|
Port Imperial Garage
South
|
(12)
|
—
|
|
Port Imperial Retail
South
|
29
|
16
|
|
Other consolidated
joint ventures
|
(25)
|
(17)
|
|
Net losses in
noncontrolling interests
|
$(504)
|
$(595)
|
|
Depreciation in
noncontrolling interest in consolidated joint ventures
|
712
|
708
|
|
Funds from
operations - noncontrolling interest in consolidated joint
ventures
|
$208
|
$113
|
|
Interest expense in
noncontrolling interest in consolidated joint ventures
|
789
|
791
|
|
Net operating income
before debt service in consolidated joint ventures
|
$997
|
$904
|
See Consolidated Statements of Operations Footnotes.
See Non GAAP Financial Definitions.
|
Components of Net
Asset Value
|
|
($ in
thousands)
|
|
|
Real Estate
Portfolio
|
|
Other
Assets
|
|
|
|
|
|
|
|
Operating Multifamily
NOI1
|
Total
|
At
Share
|
|
Cash and Cash
Equivalents2
|
$34,673
|
|
New Jersey
Waterfront
|
$156,400
|
$132,910
|
|
Restricted
Cash
|
26,572
|
|
Massachusetts
|
25,280
|
25,280
|
|
Other Assets
|
62,198
|
|
Other3
|
29,996
|
22,123
|
|
Subtotal Other
Assets
|
$123,443
|
|
Total Multifamily
NOI
|
$211,676
|
$180,313
|
|
|
|
|
Commercial
NOI4
|
6,396
|
5,174
|
|
Liabilities and
Other Considerations
|
|
|
Total
NOI
|
$218,072
|
$185,488
|
|
|
|
|
|
|
|
Operating -
Consolidated Debt at Share
|
$1,795,667
|
|
Non-Strategic
Assets
|
|
Operating -
Unconsolidated Debt at Share2
|
298,679
|
|
|
Other
Liabilities
|
82,597
|
|
Non-Strategic Assets
Under Binding Contract5
|
|
$139,000
|
|
Revolving Credit
Facility6
|
—
|
|
Estimated Land
Value7
|
|
214,659
|
|
Term
Loan6
|
—
|
|
Subtotal
Non-Strategic Assets
|
|
$353,659
|
|
Preferred
Units8
|
19,299
|
|
|
|
|
Subtotal Liabilities
and Other Considerations
|
$2,196,242
|
|
|
|
|
|
|
|
|
|
|
Outstanding
Shares9
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Shares Outstanding for 4Q 2023
|
100,936,000
|
|
|
|
|
|
|
|
________________________________________________
|
|
1
See Multifamily Operating Portfolio page for more
details.
|
|
2 Pro forma
for transaction activity completed subsequent to quarter
end.
|
|
3
Metropolitan Lofts was sold on January 12, 2024 and is not
reflected in this line.
|
|
4
See Commercial, Developable Land & Other Non-Strategic
Assets page for more details.
|
|
5 Represents
the gross price of two assets, Harborside 5 and 107
Morgan.
|
|
6 In July
2023, the Company entered into a transitional $60 million Revolving
Credit Facility and $115 million Term Loan agreement to fund the
buyout of Rockpoint`s interest and provide corporate
liquidity, The Revolving Credit Facility and Term Loan were both
fully repaid in October 2023.
|
|
7 Based off
4,578 potential units, see Commercial, Developable Land &
Other Non-Strategic Assets page for more details.
|
|
8 In
February 2024, $5.7 million of units were redeemed, and the Company
was notified that an additional $10.0 million would be redeemed, to
be paid out in March.
|
|
9 Common
Shares Outstanding as of December 31, 2023 were
92,229,424.
|
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
|
4Q
2023
|
3Q
2023
|
4Q
2023
|
3Q
2023
|
4Q
2023
|
3Q
2023
|
|
NJ
Waterfront
|
|
|
|
|
|
|
|
|
|
|
Haus25
|
100.0 %
|
750
|
94.1 %
|
94.8 %
|
$4,665
|
$4,437
|
$6,884
|
$6,759
|
$343,061
|
|
Liberty
Towers
|
100.0 %
|
648
|
93.2 %
|
95.2 %
|
4,220
|
4,124
|
4,930
|
4,727
|
265,000
|
|
BLVD 401
|
74.3 %
|
311
|
97.4 %
|
96.8 %
|
4,138
|
4,077
|
2,427
|
2,372
|
117,000
|
|
BLVD 425
|
74.3 %
|
412
|
95.6 %
|
97.3 %
|
3,987
|
4,012
|
3,038
|
3,026
|
131,000
|
|
BLVD 475
|
100.0 %
|
523
|
96.5 %
|
98.2 %
|
4,078
|
4,021
|
4,180
|
3,799
|
165,000
|
|
Soho Lofts
|
100.0 %
|
377
|
94.4 %
|
92.0 %
|
4,627
|
4,648
|
2,616
|
2,753
|
158,777
|
|
Urby
Harborside
|
85.0 %
|
762
|
92.3 %
|
95.3 %
|
4,014
|
3,946
|
5,370
|
5,490
|
185,742
|
|
RiverHouse 9
|
100.0 %
|
313
|
96.2 %
|
97.8 %
|
4,148
|
4,027
|
2,358
|
2,450
|
110,000
|
|
RiverHouse
11
|
100.0 %
|
295
|
94.6 %
|
96.3 %
|
4,177
|
4,123
|
2,140
|
2,422
|
100,000
|
|
RiverTrace
|
22.5 %
|
316
|
95.6 %
|
96.5 %
|
3,711
|
3,682
|
2,184
|
2,120
|
82,000
|
|
Capstone
|
40.0 %
|
360
|
95.0 %
|
96.4 %
|
4,379
|
4,354
|
2,973
|
3,086
|
135,000
|
|
NJ Waterfront
Subtotal
|
85.0 %
|
5,067
|
94.6 %
|
95.9 %
|
$4,219
|
$4,143
|
$39,100
|
$39,004
|
$1,792,580
|
|
Massachusetts
|
|
|
|
|
|
|
|
|
|
|
Portside at East
Pier
|
100.0 %
|
181
|
94.9 %
|
92.6 %
|
$3,174
|
$3,216
|
$1,163
|
$1,266
|
$56,500
|
|
Portside 2 at East
Pier
|
100.0 %
|
296
|
96.2 %
|
95.8 %
|
3,384
|
3,268
|
2,034
|
2,024
|
97,000
|
|
145 Front at City
Square
|
100.0 %
|
365
|
92.9 %
|
93.7 %
|
2,576
|
2,671
|
1,608
|
1,711
|
63,000
|
|
The Emery
|
100.0 %
|
326
|
92.3 %
|
93.9 %
|
2,760
|
2,711
|
1,515
|
1,565
|
72,000
|
|
Massachusetts
Subtotal
|
100.0 %
|
1,168
|
93.9 %
|
94.1 %
|
$2,925
|
$2,918
|
$6,320
|
$6,566
|
$288,500
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
The Upton
|
100.0 %
|
193
|
91.7 %
|
92.7 %
|
$4,752
|
$4,820
|
$1,475
|
$1,578
|
$75,000
|
|
The James
|
100.0 %
|
240
|
96.3 %
|
95.0 %
|
3,052
|
3,026
|
1,330
|
1,461
|
—
|
|
Signature
Place
|
100.0 %
|
197
|
97.5 %
|
94.4 %
|
3,174
|
3,195
|
974
|
1,081
|
43,000
|
|
Quarry Place at
Tuckahoe
|
100.0 %
|
108
|
93.5 %
|
93.5 %
|
4,321
|
4,293
|
709
|
714
|
41,000
|
|
Riverpark at
Harrison
|
45.0 %
|
141
|
92.2 %
|
94.0 %
|
2,885
|
2,772
|
577
|
526
|
30,192
|
|
Metropolitan at 40
Park1
|
25.0 %
|
130
|
95.4 %
|
93.8 %
|
3,613
|
3,568
|
721
|
784
|
34,100
|
|
Metropolitan
Lofts2
|
50.0 %
|
59
|
94.4 %
|
94.9 %
|
3,725
|
3,610
|
319
|
303
|
17,200
|
|
Station
House
|
50.0 %
|
378
|
92.1 %
|
94.7 %
|
2,562
|
2,757
|
1,713
|
1,513
|
89,440
|
|
Other
Subtotal
|
72.8 %
|
1,446
|
94.0 %
|
94.2 %
|
$3,324
|
$3,361
|
$7,818
|
$7,960
|
$329,932
|
|
Operating
Portfolio34
|
85.0 %
|
7,681
|
94.4 %
|
95.3 %
|
$3,854
|
$3,809
|
$53,238
|
$53,530
|
$2,411,012
|
|
_________________________________________________
|
|
1 As of
December 31, 2023, Priority Capital included Metropolitan at
$23,314,422 (Prudential). The Company paid down the loan $2.4M in
the fourth quarter.
|
|
2 On January
12, 2024, the joint venture was sold for a gross valuation of
approximately $30 million, VRE`s share of net proceeds was $6
million.
|
|
3 Operating
Portfolio includes properties that have achieved over 95% leased
for six consecutive weeks. Excludes approximately 190,525 sqft of
ground floor retail of which 137,477 sf was leased as of December
31, 2023.
|
|
4
See Unconsolidated Joint Ventures and Multifamily Property
Information pages for more details.
|
See Non GAAP Financial Definitions.
|
Commercial,
Developable Land and Other Non-Strategic
Assets
|
|
|
($ in
thousands)
|
|
Commercial
|
Location
|
Ownership
|
Rentable
SF
|
Percentage
Leased
4Q
2023
|
Percentage
Leased
3Q
2023
|
NOI
4Q
2023
|
NOI
3Q
2023
|
Debt
Balance
|
|
Port Imperial Garage
South
|
Weehawken,
NJ
|
70.0 %
|
320,426
|
N/A
|
N/A
|
$517
|
$541
|
$31,645
|
|
Port Imperial Garage
North
|
Weehawken,
NJ
|
100.0 %
|
304,617
|
N/A
|
N/A
|
36
|
(33)
|
—
|
|
Port Imperial Retail
South
|
Weehawken,
NJ
|
70.0 %
|
18,064
|
100.0 %
|
100.0 %
|
185
|
173
|
—
|
|
Port Imperial Retail
North
|
Weehawken,
NJ
|
100.0 %
|
8,400
|
100.0 %
|
100.0 %
|
373
|
90
|
—
|
|
Riverwalk at Port
Imperial
|
West New York,
NJ
|
100.0 %
|
30,426
|
59.2 %
|
65.0 %
|
221
|
158
|
—
|
|
Shops at 40
Park
|
Morristown,
NJ
|
25.0 %
|
50,973
|
69.0 %
|
69.0 %
|
267
|
281
|
6,067
|
|
Commercial
Total
|
|
80.9 %
|
732,906
|
73.8 %
|
75.5 %
|
$1,599
|
$1,210
|
$37,712
|
|
Developable Land
Parcels1
|
|
NJ
Waterfront
|
3,134
|
|
Massachusetts
|
849
|
|
Other
|
1,378
|
|
Developable Land
Parcels
Total
|
5,361
|
|
Under Binding Contract
for Sale
|
783
|
|
Total Less Under
Binding Contract
|
4,578
|
One in-service office asset remains in the portfolio:
|
|
|
|
|
Avg. Base
Rent
+
Escalations
|
|
Building
|
Location
|
Total
SF
|
Leased
SF
|
%
Leased2
|
|
Harborside
53
|
Jersey City,
NJ
|
977,225
|
338,109
|
34.6 %
|
$44.28
|
|
Total Office
Portfolio
|
|
977,225
|
338,109
|
34.6 %
|
$44.28
|
|
_____________________________________________
|
|
1 The
Company has an additional 13,775 SF of potential retail space
within land developments that is not represented in this
table.
|
|
2 Harborside
5 has 42,964 SF of leased space expiring in 2024 and 28,856 SF
expiring in 2025.
|
|
3 Harborside
5 is currently under binding contract for sale.
|
See Non GAAP Financial Definitions.
|
Same Store Market
Information1
|
|
|
Sequential Quarter
Comparison
|
|
(NOI in
thousands)
|
|
|
|
NOI
|
Occupancy
|
Blended Lease
Rate
|
|
Apartments
|
4Q
2023
|
3Q
2023
|
Change
|
4Q
2023
|
3Q
2023
|
Change
|
4Q
2023
|
3Q
2023
|
|
New Jersey
Waterfront
|
4,317
|
$32,216
|
$32,245
|
(0.1) %
|
94.7 %
|
96.1 %
|
(1.4) %
|
6.3 %
|
10.3 %
|
|
Massachusetts
|
1,168
|
6,320
|
6,566
|
(3.7) %
|
93.9 %
|
94.1 %
|
(0.3) %
|
0.5 %
|
7.8 %
|
|
Other2
|
1,206
|
6,488
|
6,499
|
(0.2) %
|
93.5 %
|
94.1 %
|
(0.6) %
|
3.5 %
|
7.9 %
|
|
Total
|
6,691
|
45,024
|
45,310
|
(0.6) %
|
94.4 %
|
95.4 %
|
(1.1) %
|
5.0 %
|
9.4 %
|
|
Year-over-Year
Fourth Quarter Comparison
|
|
(NOI in
thousands)
|
|
|
|
NOI
|
Occupancy
|
Blended Lease
Rate
|
|
Apartments
|
4Q
2023
|
4Q
2022
|
Change
|
4Q
2023
|
4Q
2022
|
Change
|
4Q
2023
|
4Q
2022
|
|
New Jersey
Waterfront
|
4,317
|
$32,216
|
$27,409
|
17.5 %
|
94.7 %
|
95.7 %
|
(1.0) %
|
6.3 %
|
18.7 %
|
|
Massachusetts
|
1,168
|
6,320
|
5,676
|
11.3 %
|
93.9 %
|
94.9 %
|
(1.1) %
|
0.5 %
|
3.7 %
|
|
Other2
|
1,206
|
6,488
|
6,255
|
3.7 %
|
93.5 %
|
94.2 %
|
(0.7) %
|
3.5 %
|
10.1 %
|
|
Total
|
6,691
|
45,024
|
39,340
|
14.4 %
|
94.4 %
|
95.3 %
|
(0.9) %
|
5.0 %
|
14.4 %
|
|
Average Revenue per
Home (based on 6,691 units)
|
|
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
4Q
2021
|
|
New Jersey
Waterfront
|
$4,142
|
$4,092
|
$4,014
|
$3,863
|
$3,765
|
$3,194
|
|
Massachusetts
|
2,925
|
2,918
|
2,836
|
2,812
|
2,769
|
2,444
|
|
Other2
|
3,378
|
3,427
|
3,453
|
3,326
|
3,275
|
2,795
|
|
Total
|
$3,792
|
$3,767
|
$3,708
|
$3,583
|
$3,503
|
$2,974
|
|
________________________________________________
|
|
1 All
statistics are based off the current 6,691 unit Same Store pool.
Same Store 4Q22 and 4Q21 were actually 5,825 units when initially
reported.
|
|
2 "Other"
includes properties in Suburban NJ, New York, and Washington, DC.
See Multifamily Operating Portfolio page for
breakout.
|
See Non GAAP Financial Definitions.
|
Same Store
Performance
|
|
($ in
thousands)
|
|
|
Multifamily Same
Store1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
Sequential
|
|
2023
|
2022
|
Change
|
%
|
|
2023
|
2022
|
Change
|
%
|
|
4Q
2023
|
3Q
2023
|
Change
|
%
|
|
Apartment Rental
Income
|
$55,456
|
$51,275
|
$4,181
|
8.2 %
|
|
$216,873
|
$195,267
|
$21,606
|
11.1 %
|
|
$55,456
|
$55,316
|
$140
|
0.3 %
|
|
Parking/Other
Income
|
6,041
|
5,858
|
183
|
3.1 %
|
|
24,205
|
22,017
|
2,188
|
9.9 %
|
|
6,041
|
6,182
|
(141)
|
(2.3) %
|
|
Total Property
Revenues2
|
$61,497
|
$57,133
|
$4,364
|
7.6 %
|
|
$241,078
|
$217,284
|
$23,794
|
11.0 %
|
|
$61,497
|
$61,498
|
$(1)
|
— %
|
|
Marketing &
Administration
|
2,100
|
2,237
|
(137)
|
(6.1)
|
|
7,862
|
7,638
|
224
|
2.9 %
|
|
2,100
|
2,076
|
24
|
1.2 %
|
|
Utilities
|
1,917
|
1,790
|
127
|
7.1 %
|
|
7,765
|
7,626
|
139
|
1.8 %
|
|
1,917
|
2,020
|
(103)
|
(5.1) %
|
|
Payroll
|
4,026
|
3,852
|
174
|
4.5 %
|
|
15,600
|
14,945
|
655
|
4.4 %
|
|
4,026
|
4,074
|
(48)
|
(1.2) %
|
|
Repairs &
Maintenance
|
3,686
|
3,312
|
374
|
11.3 %
|
|
13,331
|
12,564
|
767
|
6.1 %
|
|
3,686
|
3,417
|
269
|
7.9 %
|
|
Controllable
Expenses
|
$11,729
|
$11,191
|
$538
|
4.8 %
|
|
$44,558
|
$42,773
|
$1,785
|
4.2 %
|
|
$11,729
|
$11,587
|
$142
|
1.2 %
|
|
Other Fixed
Fees
|
738
|
531
|
207
|
39.0 %
|
|
2,957
|
2,556
|
401
|
15.7 %
|
|
738
|
764
|
(26)
|
(3.4) %
|
|
Insurance
|
1,469
|
1,513
|
(44)
|
(2.9) %
|
|
5,386
|
5,249
|
137
|
2.6 %
|
|
1,469
|
945
|
524
|
55.4 %
|
|
Real Estate
Taxes
|
8,486
|
10,125
|
(1,639)
|
(16.2) %
|
|
31,917
|
33,864
|
(1,947)
|
(5.7) %
|
|
8,486
|
8,764
|
(278)
|
(3.2) %
|
|
Non-Controllable
Expenses
|
$10,693
|
$12,169
|
$(1,476)
|
(12.1) %
|
|
$40,260
|
$41,669
|
$(1,409)
|
(3.4) %
|
|
$10,693
|
$10,473
|
$220
|
2.1 %
|
|
Total Property
Expenses
|
$22,422
|
$23,360
|
$(938)
|
(4.0) %
|
|
$84,818
|
$84,442
|
$376
|
0.4 %
|
|
$22,422
|
$22,060
|
$362
|
1.6 %
|
|
Same Store GAAP
NOI
|
$39,075
|
$33,773
|
$5,302
|
15.7 %
|
|
$156,260
|
$132,842
|
$23,418
|
17.6 %
|
|
$39,075
|
$39,438
|
$(363)
|
(0.9) %
|
|
Real Estate Tax
Adjustments3
|
—
|
(1,456)
|
1,456
|
|
|
1,689
|
(1,170)
|
2,859
|
|
|
—
|
20
|
(20)
|
|
|
Normalized Same
Store NOI
|
$39,075
|
$35,229
|
$3,846
|
10.9 %
|
|
$154,571
|
$134,012
|
$20,559
|
15.3 %
|
|
$39,075
|
$39,418
|
$(343)
|
(0.9) %
|
|
Total Units
|
6,691
|
6,691
|
|
|
|
6,691
|
6,691
|
|
|
|
6,691
|
6,691
|
|
|
|
% Ownership
|
82.7 %
|
82.7 %
|
|
|
|
82.7 %
|
82.7 %
|
|
|
|
82.7 %
|
82.7 %
|
|
|
|
% Occupied - Quarter
End
|
94.4 %
|
95.3 %
|
(0.9) %
|
|
|
94.4 %
|
95.3 %
|
(0.9) %
|
|
|
94.4 %
|
95.4 %
|
(1.0) %
|
|
|
____________________________________________
|
|
1 Values
represent the Company`s pro rata ownership of the operating
portfolio.
|
|
2 Revenues
reported based on Generally Accepted Accounting Principals or
"GAAP".
|
|
3 Represents
tax settlements and final tax rate adjustments recognized that are
applicable to prior periods.
|
See Non GAAP Financial Definitions.
|
Debt
Profile
|
|
($ in
thousands)
|
|
|
Lender
|
Effective
Interest
Rate(1)
|
December 31,
2023
|
December 31,
2022
|
Date
of
Maturity
|
|
Secured Permanent
Loans
|
|
|
|
|
|
|
Port Imperial
Hotels(2)
|
Fifth Third
Bank
|
N/A
|
$—
|
$84,000
|
N/A
|
|
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 %
|
97,000
|
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(3)
|
KKR
|
SOFR + 2.75%
|
56,500
|
58,998
|
09/07/26
|
|
The
Upton(4)
|
Bank of New York
Mellon
|
SOFR + 1.58%
|
75,000
|
75,000
|
10/27/26
|
|
145 Front at City
Square(5)
|
US Bank
|
SOFR + 1.84%
|
63,000
|
63,000
|
12/10/26
|
|
RiverHouse
9(6)
|
JP Morgan
|
SOFR + 1.41%
|
110,000
|
110,000
|
06/21/27
|
|
Quarry Place at
Tuckahoe
|
Natixis Real Estate
Capital, LLC
|
4.48 %
|
41,000
|
41,000
|
08/05/27
|
|
BLVD 475
|
The Northwestern Mutual
Life Insurance Co.
|
2.91 %
|
165,000
|
165,000
|
11/10/27
|
|
Haus25(7)
|
Freddie Mac
|
6.04 %
|
343,061
|
297,324
|
09/01/28
|
|
RiverHouse
11
|
The Northwestern Mutual
Life Insurance Co.
|
4.52 %
|
100,000
|
100,000
|
01/10/29
|
|
Soho Lofts
|
New York Community
Bank
|
3.77 %
|
158,777
|
160,000
|
07/01/29
|
|
Port Imperial Garage
South
|
American General Life
& A/G PC
|
4.85 %
|
31,645
|
32,166
|
12/01/29
|
|
The Emery
|
New York Community
Bank
|
3.21 %
|
72,000
|
72,000
|
01/01/31
|
|
Principal Balance
Outstanding
|
|
|
$1,868,983
|
$1,911,488
|
|
|
Unamortized Deferred
Financing Costs
|
|
|
(15,086)
|
(7,511)
|
|
|
Total Secured
Permanent Loans
|
|
|
$1,853,897
|
$1,903,977
|
|
|
|
|
|
|
|
|
Secured RCF &
Term Loans:
|
|
|
|
|
|
|
Revolving Credit
Facility(8)
|
JP Morgan & Goldman
Sachs
|
SOFR + 3.85%
|
$—
|
$—
|
07/25/24
|
|
Term
Loan(8)
|
JP Morgan & Goldman
Sachs
|
SOFR + 3.85%
|
—
|
—
|
07/25/24
|
|
Total RCF & Term
Loan Debt
|
|
|
$—
|
$—
|
|
|
Total
Debt
|
|
|
$1,853,897
|
$1,903,977
|
|
See Debt Profile Footnotes.
Debt Summary and Maturity Schedule
99.9% of the Company`s total pro forma debt portfolio
(consolidated and unconsolidated) is hedged or fixed. The Company`s
total debt portfolio has a weighted average interest rate of 4.5%
and a weighted average maturity of 3.7 years.
|
($ in
thousands)
|
|
Balance
|
%
of
Total
|
Weighted
Average
Interest
Rate
|
Weighted
Average
Maturity in
Years
|
|
Fixed Rate &
Hedged Debt
|
|
|
|
|
|
Fixed Rate & Hedged
Secured Debt
|
$1,868,983
|
100.0 %
|
4.34 %
|
3.5
|
|
Variable Rate
Debt1
|
|
|
|
|
|
Variable Rate
Debt
|
—
|
— %
|
— %
|
—
|
|
Totals / Weighted
Average
|
$1,868,983
|
100.0 %
|
4.34 %
|
3.5
|
|
Unamortized Deferred
Financing Costs
|
(15,086)
|
|
|
|
|
Total Consolidated
Debt, net
|
$1,853,897
|
|
|
|
|
Partners'
Share
|
(73,316)
|
|
|
|
|
VRE Share of Total
Consolidated Debt, net2
|
$1,780,581
|
|
|
|
|
|
|
|
|
|
Unconsolidated
Secured Debt
|
|
|
|
|
|
VRE Share
|
$307,279
|
53.0 %
|
4.83 %
|
4.6
|
|
Partners'
Share
|
272,462
|
47.0 %
|
4.83 %
|
4.6
|
|
Total Unconsolidated
Secured Debt
|
$579,741
|
100.0 %
|
4.83 %
|
4.6
|
|
|
|
|
|
|
Pro Rata Debt
Portfolio
|
|
|
|
|
|
Fixed Rate & Hedged
Secured Debt
|
$2,092,828
|
99.9 %
|
4.46 %
|
3.7
|
|
Variable Rate Secured
Debt
|
1,517
|
0.1 %
|
7.31 %
|
1.0
|
|
Total Pro Rata Debt
Portfolio
|
$2,094,345
|
100.0 %
|
4.47 %
|
3.7
|
|
_____________________________________________
|
|
1 Variable
rate debt includes the Revolver and reflects the balances on the
Revolver and Term Loan.
|
|
2 Minority
interest share of consolidated debt is comprised of $33.7 million
at BLVD 425, $30.1 million at BLVD 401 and $9.5 million at
Port Imperial South Garage.
|
|
|
|
Pro Forma Debt
Portfolio Reconciliation
|
|
|
4Q
2023
|
|
Total Consolidated
Debt, net on 12/31
|
$1,868,983
|
|
Partners Share of
Consolidated Debt on 12/31
|
(73,316)
|
|
VRE Share of
Consolidated Debt on 12/31
|
$1,795,667
|
|
VRE Share of Total
Unconsolidated Debt on 12/31
|
307,279
|
|
Metropolitan Lofts Sale
(VRE Share of Debt Extinguishment)
|
(8,601)
|
|
VRE Share of
Unconsolidated Secured Debt
|
$298,678
|
|
Total Pro Rata Debt
Portfolio
|
$2,094,345
|
|
Annex 1: Transaction
Activity
|
|
|
2023
|
|
|
|
|
|
|
$ in thousands except
per SF
|
|
Location
|
Transaction
Date
|
Number
of
Buildings
|
SF
|
Gross
Asset
Value
|
|
Hotels
|
|
|
|
|
|
|
Port Imperial
Hotels
|
Weehawken,
NJ
|
2/10/2023
|
2
|
N/A
|
$97,000
|
|
Subtotal
Hotels
|
|
|
2
|
|
$97,000
|
|
Office
|
|
|
|
|
|
|
Harborside 1, 2, &
3
|
Jersey City,
NJ
|
4/04/2023
|
3
|
1,886,800
|
$420,000
|
|
Harborside 6
|
Jersey City,
NJ
|
9/13/2023
|
1
|
231,856
|
46,000
|
|
23 Main
Street
|
Holmdel, NJ
|
10/13/2023
|
1
|
350,000
|
17,500
|
|
Subtotal
Office
|
|
|
5
|
2,468,656
|
$483,500
|
|
Land
|
|
|
|
|
|
|
101 Columbia
Rd.
|
Morris Plains,
NJ
|
3/17/2023
|
N/A
|
N/A
|
$8,300
|
|
Harborside 4
|
Jersey City,
NJ
|
10/05/2023
|
N/A
|
N/A
|
58,000
|
|
3 Campus
Drive
|
Jersey City,
NJ
|
10/12/2023
|
N/A
|
N/A
|
13,500
|
|
Subtotal
Land
|
|
|
|
|
$79,800
|
|
|
|
2023 Total
Dispositions
|
$660,300
|
|
2024 Dispositions to
Date
|
|
|
|
|
|
|
$ in thousands except
per SF
|
|
Location
|
Transaction
Date
|
Number of
Buildings
|
SF
|
Gross
Asset
Value
|
|
Land
|
|
|
|
|
|
|
2 Campus
Drive
|
Jersey City,
NJ
|
1/3/2024
|
N/A
|
N/A
|
$9,700
|
|
Subtotal
Land
|
|
|
|
|
$9,700
|
|
Multifamily
|
|
|
|
|
|
|
Metropolitan
Lofts1
|
Morristown,
NJ
|
1/12/2024
|
1
|
54,683
|
$30,300
|
|
Subtotal
Multifamily
|
|
|
1
|
54,683
|
$30,300
|
|
|
|
2024 Dispositions to
Date
|
$40,000
|
|
______________________________________________
|
|
1 The joint venture
sold releasing approximately $6 million of net proceeds to the
Company.
|
|
Annex 2: Reconciliation of Net Income (Loss)
to NOI (three months
ended)
|
|
|
4Q
2023
|
|
3Q
2023
|
|
Multifamily
|
Office /
Corp
|
Disc.
Ops
|
Total
|
|
Multifamily
|
Office /
Corp
|
Total
|
|
Net
loss
|
$(7,636)
|
$1,890
|
$—
|
$(5,746)
|
|
$(39,797)
|
$(20,453)
|
$(60,250)
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
Real estate services
income
|
(1,084)
|
—
|
—
|
(1,084)
|
|
(1,230)
|
—
|
(1,230)
|
|
Interest and other
investment loss (income)
|
(1)
|
(231)
|
—
|
(232)
|
|
(1)
|
(1,239)
|
(1,240)
|
|
Equity in (earnings)
loss of unconsolidated joint ventures
|
(260)
|
—
|
—
|
(260)
|
|
(210)
|
—
|
(210)
|
|
Realized and unrealized
(gains) losses on dispositions
|
—
|
(4,697)
|
4,700
|
3
|
|
—
|
—
|
—
|
|
(Gain) loss on
disposition of developable land
|
(1,690)
|
(44,671)
|
39,271
|
(7,090)
|
|
—
|
—
|
—
|
|
Loss from early
extinguishment of debt, net
|
—
|
1,903
|
—
|
1,903
|
|
1,046
|
—
|
1,046
|
|
Other Income
|
—
|
(77)
|
—
|
(77)
|
|
—
|
57
|
57
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Real estate services
expenses
|
3,025
|
1,298
|
—
|
4,323
|
|
2,106
|
1,427
|
3,533
|
|
General and
administrative
|
437
|
9,555
|
—
|
9,992
|
|
327
|
14,293
|
14,620
|
|
Transaction-related
costs
|
132
|
444
|
—
|
576
|
|
—
|
2,704
|
2,704
|
|
Depreciation and
amortization
|
20,943
|
2,103
|
|
23,046
|
|
21,115
|
2,097
|
23,212
|
|
Interest
expense
|
21,568
|
365
|
—
|
21,933
|
|
57,664
|
2,443
|
60,107
|
|
Provision for income
taxes
|
11
|
188
|
—
|
199
|
|
45
|
248
|
293
|
|
Property
impairments
|
—
|
32,516
|
—
|
32,516
|
|
—
|
—
|
—
|
|
Land and other
impairments, net
|
5,928
|
—
|
—
|
5,928
|
|
—
|
—
|
—
|
|
Net operating income
(NOI)
|
$41,373
|
$586
|
$43,971
|
$85,930
|
|
$41,065
|
$1,577
|
$42,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Consolidated Multifamily NOI by Type (unaudited):
|
4Q
2023
|
3Q
2023
|
|
Total Consolidated
Multifamily - Operating Portfolio
|
$39,381
|
$39,708
|
|
Total Consolidated
Commercial
|
$1,332
|
$929
|
|
|
|
|
Total NOI from
Consolidated Properties (excl. unconsolidated JVs/subordinated
interests)
|
$40,713
|
$40,637
|
|
NOI (loss) from
services, land/development/repurposing & other
assets
|
$660
|
$428
|
|
|
|
|
Total Consolidated
Multifamily NOI
|
$41,373
|
$41,065
|
See Consolidated Statement of Operations.
See Non GAAP Financial Definitions.
Annex 3: Consolidated Statement of Operations
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 $2,597 and $2,574 for the three months
ended December 31, 2023 and 2022, respectively and $10,337 and
$10,392 for the twelve months ended December 31, 2023 and 2022,
respectively. Excludes non-real estate-related depreciation and
amortization of $216 and $395 for the three months ended December
31, 2023 and 2022, respectively, and $1,028 and $1,328 for the
twelve months ended December 31, 2023 and 2022,
respectively.
|
|
(2)
|
Funds from operations
is calculated in accordance with the definition of FFO of the
National Association of Real Estate Investment Trusts (Nareit). See
Non-GAAP Financial Definitions for information About FFO, Core FFO,
AFFO, NOI, Adjusted EBITDA & EBITDAre.
|
|
(3)
|
Includes free rent of
$56 and $3,252 for the three months ended December 31, 2023 and
2022, respectively and $4,414 and $13,312 for the twelve months
ended December 31, 2023 and 2022, respectively. Also includes the
Company's share from unconsolidated joint ventures of $23 and $4
for the three months ended December 31, 2023 and 2022, respectively
and $(4) and $(815) for the twelve months ended December 31, 2023
and 2022, respectively.
|
|
(4)
|
Excludes expenditures
for tenant spaces in properties that have not been owned by the
Company for at least a year and excludes Collector`s
Universe.
|
|
(5)
|
Net Debt calculated by
taking the sum of senior unsecured notes, unsecured revolving
credit facility, 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 8,420 and
8,656 shares for the three months ended December 31, 2023 and 2022,
respectively, and 8,669 and 8,639 for the twelve months ended
December 31, 2023 and 2022, respectively, plus dilutive Common
Stock Equivalents (i.e. stock options).
|
See Consolidated Statement of Operations.
|
Annex 4: Detailed Consolidated Statement of
Operations (Year-End)
|
|
|
Twelve Months Ended
December 31, 2023
|
|
Twelve Months Ended
December 31, 2022
|
|
REVENUES
|
All
Operations
|
Less: Disc.
Ops
|
Total
|
|
All
Operations
|
Less: Disc.
Ops
|
Total
|
|
Revenue from
leases
|
$271,873
|
$(19,729)
|
$252,144
|
|
$290,033
|
$(83,981)
|
$206,052
|
|
Real estate
services
|
3,868
|
—
|
3,868
|
|
3,581
|
—
|
3,581
|
|
Parking
income
|
18,942
|
(906)
|
18,036
|
|
18,556
|
(2,737)
|
15,819
|
|
Hotel income
|
594
|
(594)
|
—
|
|
15,506
|
(15,506)
|
—
|
|
Other income
|
5,668
|
143
|
5,811
|
|
33,314
|
(25,318)
|
7,996
|
|
Total
revenues
|
300,945
|
(21,086)
|
279,859
|
|
360,990
|
(127,542)
|
233,448
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
45,531
|
(4,721)
|
40,810
|
|
59,235
|
(20,123)
|
39,112
|
|
Utilities
|
11,033
|
(1,111)
|
9,922
|
|
14,343
|
(5,422)
|
8,921
|
|
Operating
services
|
63,693
|
(5,768)
|
57,925
|
|
78,589
|
(25,792)
|
52,797
|
|
Real estate services
expenses
|
14,188
|
—
|
14,188
|
|
10,549
|
—
|
10,549
|
|
General and
administrative
|
44,521
|
(49)
|
44,472
|
|
56,176
|
(162)
|
56,014
|
|
Transaction-related
costs
|
7,627
|
—
|
7,627
|
|
3,468
|
—
|
3,468
|
|
Depreciation and
amortization
|
99,075
|
(5,486)
|
93,589
|
|
112,408
|
(26,974)
|
85,434
|
|
Property
Impairments
|
32,516
|
—
|
32,516
|
|
94,811
|
(94,811)
|
—
|
|
Land and other
impairments, net
|
9,324
|
—
|
9,324
|
|
9,368
|
—
|
9,368
|
|
Total
expenses
|
327,508
|
(17,135)
|
310,373
|
|
438,947
|
(173,284)
|
265,663
|
|
Operating income
(expense)
|
(26,563)
|
(3,951)
|
(30,514)
|
|
(77,957)
|
45,742
|
(32,215)
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
Interest
expense
|
(90,177)
|
822
|
(89,355)
|
|
(78,040)
|
11,659
|
(66,381)
|
|
Interest cost of
mandatorily redeemable noncontrolling interests
|
(49,782)
|
—
|
(49,782)
|
|
—
|
—
|
—
|
|
Interest and other
investment income (loss)
|
5,548
|
(33)
|
5,515
|
|
729
|
—
|
729
|
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
3,102
|
—
|
3,102
|
|
1,200
|
—
|
1,200
|
|
Realized gains (losses)
and unrealized gains (losses) on disposition of rental property,
net
|
2,411
|
(2,411)
|
—
|
|
61,676
|
(61,676)
|
—
|
|
Gain (loss) on
disposition of developable land
|
46,339
|
(39,271)
|
7,068
|
|
57,262
|
—
|
57,262
|
|
Gain (loss) on sale of
unconsolidated joint venture interests
|
—
|
—
|
—
|
|
7,677
|
(7,677)
|
—
|
|
Gain
(loss) from extinguishment of debt, net
|
(5,618)
|
12
|
(5,606)
|
|
(7,432)
|
7,303
|
(129)
|
|
Other Income,
net
|
2,871
|
—
|
2,871
|
|
—
|
—
|
—
|
|
Total other income
(expense), net
|
(85,306)
|
(40,881)
|
(126,187)
|
|
43,072
|
(50,391)
|
(7,319)
|
|
Loss from continuing
operations before income tax expense
|
(111,869)
|
(44,832)
|
(156,701)
|
|
(34,885)
|
(4,649)
|
(39,534)
|
|
Provision for income
taxes
|
(492)
|
—
|
(492)
|
|
—
|
—
|
—
|
|
Income from
continuing operations after income tax expense
|
(112,361)
|
(44,832)
|
(157,193)
|
|
(34,885)
|
(4,649)
|
(39,534)
|
|
Income (loss) from
discontinued operations
|
—
|
3,150
|
3,150
|
|
—
|
(64,704)
|
(64,704)
|
|
Realized gains (losses)
and unrealized gains (losses) on disposition of rental property and
impairments, net
|
—
|
41,682
|
41,682
|
|
—
|
69,353
|
69,353
|
|
Total discontinued
operations
|
—
|
44,832
|
44,832
|
|
—
|
4,649
|
4,649
|
|
Net
Loss
|
(112,361)
|
—
|
(112,361)
|
|
(34,885)
|
—
|
(34,885)
|
|
Noncontrolling
interests in consolidated joint ventures
|
2,319
|
—
|
2,319
|
|
3,079
|
—
|
3,079
|
|
Noncontrolling
interests in Operating Partnership of income from continuing
operations
|
14,267
|
—
|
14,267
|
|
5,652
|
—
|
5,652
|
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
(3,872)
|
—
|
(3,872)
|
|
(378)
|
—
|
(378)
|
|
Redeemable
noncontrolling interests
|
(7,618)
|
—
|
(7,618)
|
|
(25,534)
|
—
|
(25,534)
|
|
Net loss available
to common shareholders
|
$(107,265)
|
$—
|
$(107,265)
|
|
$(52,066)
|
$—
|
$(52,066)
|
See Consolidated Statement of Operations.
|
Annex 5:
Core FFO per Diluted Share
|
|
|
Three Months Ended
September 30,
|
|
Twelve Months Ended
December 31,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Net income (loss)
available to common shareholders
|
$(0.05)
|
$0.32
|
|
$(1.06)
|
$(0.52)
|
|
Add (deduct):
Noncontrolling interests in Operating Partnership
|
(0.04)
|
(0.03)
|
|
(0.14)
|
(0.06)
|
|
Noncontrolling
interests in discontinued operations
|
0.04
|
0.06
|
|
0.04
|
—
|
|
Real estate-related
depreciation and amortization on continuing operations
|
0.25
|
0.26
|
|
1.02
|
0.95
|
|
Real estate-related
depreciation and amortization on discontinued operations
|
—
|
0.05
|
|
0.05
|
0.26
|
|
Property impairments on
continuing operations
|
0.32
|
—
|
|
0.32
|
—
|
|
Property impairments on
discontinued operations
|
—
|
0.10
|
|
—
|
0.95
|
|
Discontinued
operations: Gain on sale from unconsolidated joint
ventures
|
—
|
(0.08)
|
|
—
|
(0.08)
|
|
Discontinued
operations: Realized (gains) losses and unrealized (gains) losses
on disposition of rental property, net
|
(0.05)
|
(0.69)
|
|
(0.02)
|
(0.61)
|
|
FFO
|
$0.47
|
$(0.01)
|
|
$0.21
|
$0.89
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
Loss from
extinguishment of debt, net
|
0.02
|
0.01
|
|
0.06
|
0.07
|
|
Land and other
impairments
|
0.06
|
—
|
|
0.09
|
0.09
|
|
Loss (gain) on
disposition of developable land
|
(0.46)
|
—
|
|
(0.46)
|
(0.56)
|
|
Rebranding and
Severance/Compensation related costs (G&A)
|
—
|
0.02
|
|
0.07
|
0.14
|
|
Rebranding and
Severance/Compensation related costs (RE Services)
|
0.01
|
—
|
|
0.01
|
—
|
|
Rebranding and
Severance/Compensation related costs (Operating
Services)
|
—
|
—
|
|
0.01
|
—
|
|
Rockpoint buyout
premium
|
—
|
—
|
|
0.34
|
—
|
|
Redemption value
adjustment to mandatorily redeemable noncontrolling
interests
|
—
|
—
|
|
0.08
|
—
|
|
Lease breakage fee,
net
|
—
|
—
|
|
—
|
(0.23)
|
|
Amortization of
derivative premium
|
0.01
|
—
|
|
0.05
|
—
|
|
Transaction related
costs
|
0.01
|
0.03
|
|
0.07
|
0.04
|
|
Core
FFO
|
$0.12
|
$0.05
|
|
$0.53
|
$0.44
|
|
|
|
|
|
|
See FFO and Core FFO.
See Non GAAP Financial Definitions.
|
Annex 6:
Unconsolidated Joint Ventures
|
|
($ in
thousands)
|
|
|
Property
|
Units
|
Physical
Occupancy
|
VRE's
Nominal
Ownership1
|
4Q
2023
NOI2
|
Total
Debt
|
VRE
Share
of 4Q
NOI
|
VRE
Share
of
Debt
|
|
Multifamily
|
|
|
|
|
|
|
|
|
Urby
Harborside
|
762
|
92.3 %
|
85.0 %
|
$5,370
|
$185,742
|
$4,565
|
$157,881
|
|
RiverTrace at Port
Imperial
|
316
|
95.6 %
|
22.5 %
|
2,184
|
82,000
|
491
|
18,450
|
|
Capstone at Port
Imperial
|
360
|
95.0 %
|
40.0 %
|
2,973
|
135,000
|
1,189
|
54,000
|
|
Riverpark at
Harrison
|
141
|
92.2 %
|
45.0 %
|
577
|
30,192
|
260
|
13,586
|
|
Metropolitan at 40
Park3
|
130
|
95.4 %
|
25.0 %
|
721
|
34,100
|
180
|
8,525
|
|
Metropolitan
Lofts4
|
59
|
94.4 %
|
50.0 %
|
319
|
17,200
|
160
|
8,600
|
|
Station
House
|
378
|
92.1 %
|
50.0 %
|
1,713
|
89,440
|
857
|
44,720
|
|
Total
Multifamily
|
2,146
|
93.4 %
|
54.9 %
|
$13,857
|
$573,674
|
$7,701
|
$305,762
|
|
Retail
|
|
|
|
|
|
|
|
|
Shops at 40
Park
|
N/A
|
69.0 %
|
25.0 %
|
$267
|
6,067
|
67
|
1,517
|
|
Total
Retail
|
N/A
|
69.0 %
|
25.0 %
|
$267
|
$6,067
|
$67
|
$1,517
|
|
Total
UJV
|
|
|
|
$14,124
|
$579,741
|
$7,768
|
$307,279
|
|
_________________________________________________
|
|
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 paid down
the loan balance $2.1 million in 4Q 2023.
|
|
4
|
On January 12, 2024,
the joint venture was sold for a gross valuation of approximately
$30 million, VRE`s share of net proceeds was $6 million.
|
See Non GAAP Financial Definitions.
Annex 7: Debt Profile Footnotes
- 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.
- Port Imperial Hotels sold on February
10, 2023.
- In August 2023, the fixed rate
Freddie Mac loan on Portside at East Pier was refinanced and placed
a 3- year SOFR cap at a strike rate of 3.5%.
- The Upton loan has been capped at a strike rate of 1.0%,
expiring in October 2024.
- In September 2023, the Company
placed a 9 month SOFR cap at a strike rate of 4.0% on the loan
at 145 Front at City Square.
- The loan on RiverHouse 9 is capped at a strike rate of
3.0%, expiring in June 2024.
- In August 2023, the Company fully
repaid its construction loan on Haus25 with a new permanent
financing provided by Freddie Mac. The balance shown as of
December 31, 2022 ($297M) reflects the outstanding construction loan
provided by QuadReal at that time.
- In July 2023, the Company
purchased Rockpoint`s interest in the Company. Concurrently,
the Company entered into a $175
million transitional facility package. The entire
$115 million Term Loan and initial
draw of $52 million on the Revolving
Credit Facility were fully repaid in October
2023.
See Debt Profile.
|
Annex 8: Multifamily
Property Information
|
|
|
Location
|
Ownership
|
Apartments
|
Rentable
SF
|
Average
Size
|
Year
Complete
|
|
NJ
Waterfront
|
|
|
|
|
|
|
|
Haus25
|
Jersey City,
NJ
|
100.0 %
|
750
|
617,787
|
824
|
2022
|
|
Liberty
Towers
|
Jersey City,
NJ
|
100.0 %
|
648
|
602,210
|
929
|
2003
|
|
BLVD 401
|
Jersey City,
NJ
|
74.3 %
|
311
|
273,132
|
878
|
2016
|
|
BLVD 425
|
Jersey City,
NJ
|
74.3 %
|
412
|
369,515
|
897
|
2003
|
|
BLVD 475
|
Jersey City,
NJ
|
100.0 %
|
523
|
475,459
|
909
|
2011
|
|
Soho Lofts
|
Jersey City,
NJ
|
100.0 %
|
377
|
449,067
|
1,191
|
2017
|
|
Urby
Harborside
|
Jersey City,
NJ
|
85.0 %
|
762
|
474,476
|
623
|
2017
|
|
RiverHouse 9
|
Weehawken,
NJ
|
100.0 %
|
313
|
245,127
|
783
|
2021
|
|
RiverHouse
11
|
Weehawken,
NJ
|
100.0 %
|
295
|
250,591
|
849
|
2018
|
|
RiverTrace
|
West New York,
NJ
|
22.5 %
|
316
|
295,767
|
936
|
2014
|
|
Capstone
|
West New York,
NJ
|
40.0 %
|
360
|
337,991
|
939
|
2021
|
|
NJ Waterfront
Subtotal
|
|
85.0 %
|
5,067
|
4,391,122
|
867
|
|
|
Massachusetts
|
|
|
|
|
|
|
|
Portside at East
Pier
|
East Boston,
MA
|
100.0 %
|
181
|
156,091
|
862
|
2015
|
|
Portside 2 at East
Pier
|
East Boston,
MA
|
100.0 %
|
296
|
230,614
|
779
|
2018
|
|
145 Front at City
Square
|
Worcester,
MA
|
100.0 %
|
365
|
304,936
|
835
|
2018
|
|
The Emery
|
Revere, MA
|
100.0 %
|
326
|
273,140
|
838
|
2020
|
|
Massachusetts
Subtotal
|
|
100.0 %
|
1,168
|
964,781
|
826
|
|
|
Other
|
|
|
|
|
|
|
|
The Upton
|
Short Hills,
NJ
|
100.0 %
|
193
|
217,030
|
1,125
|
2021
|
|
The James
|
Park Ridge,
NJ
|
100.0 %
|
240
|
215,283
|
897
|
2021
|
|
Signature
Place
|
Morris Plains,
NJ
|
100.0 %
|
197
|
203,716
|
1,034
|
2018
|
|
Quarry Place at
Tuckahoe
|
Eastchester,
NY
|
100.0 %
|
108
|
105,551
|
977
|
2016
|
|
Riverpark at
Harrison
|
Harrison, NJ
|
45.0 %
|
141
|
124,774
|
885
|
2014
|
|
Metropolitan at 40
Park
|
Morristown,
NJ
|
25.0 %
|
130
|
124,237
|
956
|
2010
|
|
Metropolitan
Lofts
|
Morristown,
NJ
|
50.0 %
|
59
|
54,683
|
927
|
2018
|
|
Station
House
|
Washington,
DC
|
50.0 %
|
378
|
290,348
|
768
|
2015
|
|
Other
Subtotal
|
|
72.8 %
|
1,446
|
1,335,622
|
924
|
|
|
Operating
Portfolio
|
|
85.0 %
|
7,681
|
6,691,525
|
871
|
|
See Multifamily Operating Portfolio.
Non-GAAP Financial Definitions
NON-GAAP FINANCIAL MEASURES
Included in this financial package are Funds from Operations, or
FFO, Core Funds from Operations, or Core FFO, net operating income,
or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation,
and Amortization, or Adjusted EBITDA, and EBIDAre or Earnings
Before Interest, Taxes, Depreciation, Amortization and Rent Costs,
each a "non-GAAP financial measure," measuring Veris Residential,
Inc.'s historical or future financial performance that is different
from measures calculated and presented in accordance with generally
accepted accounting principles ("U.S. GAAP"), within the meaning of
the applicable Securities and Exchange Commission rules. Veris
Residential, Inc. believes these metrics can be a useful measure of
its performance which is further defined.
Adjusted Earnings Before Interest, Tax, Depreciation and
Amortization (Adjusted "EBITDA")
The Company defines Adjusted EBITDA as Core FFO, plus interest
expense, plus income tax expense, plus income (loss) in
noncontrolling interest in consolidated joint ventures, and plus
adjustments to reflect the entity's share of Adjusted EBITDA of
unconsolidated joint ventures. The Company presents Adjusted EBITDA
because the Company believes that Adjusted EBITDA, along with cash
flow from operating activities, investing activities and financing
activities, provides investors with an additional indicator of the
Company's ability to incur and service debt. Adjusted EBITDA should
not be considered as an alternative to net income (determined in
accordance with GAAP), as an indication of the Company's financial
performance, as an alternative to net cash flows from operating
activities (determined in accordance with GAAP), or as a measure of
the Company's liquidity.
Blended Net Rental Growth Rate or Blended Lease
Rate
Weighted average of the net effective change in rent (inclusive
of concessions) for a lease with a new resident or for a renewed
lease compared to the rent for the prior lease of the identical
apartment unit.
Core FFO and Adjusted FFO ("AFFO")
Core FFO is defined as FFO, as adjusted for certain items to
facilitate comparative measurement of the Company's performance
over time. Adjusted FFO ("AFFO") is defined as Core FFO less (i)
recurring tenant improvements, leasing commissions, and capital
expenditures, (ii) straight-line rents and amortization of acquired
above/below market leases, net, and (iii) other non-cash income,
plus (iv) other non-cash charges. Core FFO and Adjusted AFFO are
presented solely as supplemental disclosure that the Company's
management believes provides useful information to investors and
analysts of its results, after adjusting for certain items to
facilitate comparability of its performance from period to period.
Core FFO and Adjusted FFO are non-GAAP financial measures that are
not intended to represent cash flow and are not indicative of cash
flows provided by operating activities as determined in accordance
with GAAP. As there is not a generally accepted definition
established for Core FFO and Adjusted FFO, the Company's measures
of Core FFO may not be comparable to the Core FFO and Adjusted FFO
reported by other REITs. A reconciliation of net income per share
to Core FFO and Adjusted FFO in dollars and per share are included
in the financial tables accompanying this press release.
Earnings Before Interest, Tax, Depreciation, Amortization,
and Rent Costs ("EBITDAre")
The Company computes EBITDAre in accordance with standards
established by the National Association of Real Estate Investment
Trusts, or Nareit, which may not be comparable to EBITDAre reported
by other REITs that do not compute EBITDAre in accordance with the
Nareit definition, or that interpret the Nareit definition
differently than the Company does. The White Paper on EBITDAre
approved by the Board of Governors of Nareit in September 2017 defines EBITDAre as net income
(loss) (computed in accordance with Generally Accepted Accounting
Principles, or GAAP), plus interest expense, plus income tax
expense, plus depreciation and amortization, plus (minus) losses
and gains on the disposition of depreciated property, plus
impairment write-downs of depreciated property and investments in
unconsolidated joint ventures, plus adjustments to reflect the
entity's share of EBITDAre of unconsolidated joint ventures. The
Company presents EBITDAre, because the Company believes that
EBITDAre, along with cash flow from operating activities, investing
activities and financing activities, provides investors with an
additional indicator of the Company's ability to incur and service
debt. EBITDAre should not be considered as an alternative to net
income (determined in accordance with GAAP), as an indication of
the Company's financial performance, as an alternative to net cash
flows from operating activities (determined in accordance with
GAAP), or as a measure of the Company's liquidity.
Funds From Operations ("FFO")
FFO is defined as net income (loss) before noncontrolling
interests in Operating Partnership, computed in accordance with
U.S. GAAP, excluding gains or losses from depreciable rental
property transactions (including both acquisitions and
dispositions), and impairments related to depreciable rental
property, plus real estate-related depreciation and amortization.
The Company believes that FFO per share is helpful to investors as
one of several measures of the performance of an equity REIT. The
Company further believes that as FFO per share excludes the effect
of depreciation, gains (or losses) from property transactions and
impairments related to depreciable rental property (all of which
are based on historical costs which may be of limited relevance in
evaluating current performance), FFO per share can facilitate
comparison of operating performance between equity REITs.
FFO per share should not be considered as an alternative to net
income available to common shareholders per share as an indication
of the Company's performance or to cash flows as a measure of
liquidity. FFO per share presented herein is not necessarily
comparable to FFO per share presented by other real estate
companies due to the fact that not all real estate companies use
the same definition. However, the Company's FFO per share is
comparable to the FFO per share of real estate companies that use
the current definition of the National Association of Real Estate
Investment Trusts ("Nareit"). A reconciliation of net income per
share to FFO per share is included in the financial tables
accompanying this press release.
NOI and Same Store NOI
NOI represents total revenues less total operating expenses, as
reconciled to net income above. The Company considers NOI to be a
meaningful non-GAAP financial measure for making decisions and
assessing unlevered performance of its property types and markets,
as it relates to total return on assets, as opposed to levered
return on equity. As properties are considered for sale and
acquisition based on NOI estimates and projections, the Company
utilizes this measure to make investment decisions, as well as
compare the performance of its assets to those of its peers. NOI
should not be considered a substitute for net income, and the
Company's use of NOI may not be comparable to similarly titled
measures used by other companies. The Company calculates NOI before
any allocations to noncontrolling interests, as those interests do
not affect the overall performance of the individual assets being
measured and assessed.
Same Store NOI is presented for the same store portfolio, which
comprises all properties that were owned by the Company throughout
both of the reporting periods.
Company Information
|
Company
Information
|
|
|
|
|
|
|
Corporate
Headquarters
|
Stock Exchange
Listing
|
Contact
Information
|
|
Veris Residential,
Inc.
|
New York Stock
Exchange
|
Veris Residential,
Inc.
|
|
210 Hudson St., Suite
400
|
|
Investor Relations
Department
|
|
Jersey City, New Jersey
07311
|
Trading
Symbol
|
210 Hudson St., Suite
400
|
|
(732)
590-1010
|
Common Shares:
VRE
|
Jersey City, New Jersey
07311
|
|
|
|
|
|
Anna
Malhari
|
|
|
Chief Operating
Officer
|
|
|
E-Mail:
amalhari@verisresidential.com
|
|
|
Web:
www.verisresidential.com
|
|
|
|
|
|
|
|
|
|
|
Executive
Officers
|
|
|
|
|
|
|
Mahbod
Nia
|
Amanda
Lombard
|
Taryn
Fielder
|
|
Chief Executive
Officer
|
Chief Financial
Officer
|
General Counsel and
Secretary
|
|
|
|
|
Anna
Malhari
|
Jeff
Turkanis
|
|
|
Chief Operating
Officer
|
EVP & Chief
Investment Officer
|
|
|
|
|
|
|
|
|
|
|
|
Equity Research
Coverage
|
|
|
|
|
|
|
Bank of America
Merrill Lynch
|
BTIG,
LLC
|
Citigroup
|
|
Josh
Dennerlein
|
Thomas
Catherwood
|
Nicholas
Joseph
|
|
|
|
|
Evercore
ISI
|
Green Street
Advisors
|
JP
Morgan
|
|
Steve Sakwa
|
John
Pawlowski
|
Anthony
Paolone
|
|
|
|
|
Truist
|
|
|
|
Michael R.
Lewis
|
|
|
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SOURCE Veris Residential, Inc.