JERSEY
CITY, N.J., April 24,
2024 /PRNewswire/ -- Veris Residential, Inc.
(NYSE: VRE) (the "Company"), a forward-thinking, environmentally
and socially conscious multifamily REIT, today reported results for
the first quarter 2024.
|
Three Months
Ended,
|
|
March 31,
2024
|
December 31,
2023
|
|
Net Income (Loss) per
Diluted Share
|
$(0.04)
|
$(0.06)
|
|
Core FFO per Diluted
Share
|
$0.14
|
$0.12
|
|
Core AFFO per Diluted
Share
|
$0.18
|
$0.14
|
|
Dividend per Diluted
Share
|
$0.0525
|
$0.0525
|
CAPITAL ALLOCATION AND BALANCE SHEET
- Sold $179 million of
non-strategic assets, including the last office asset; two land
parcels are currently under binding contract for $28 million.
- Secured a new $500 million
three-plus-one-year term revolving credit facility and term loan
package.
- Combination of proceeds from closed asset sales and new
facilities to address all consolidated debt maturities through the
end of 2025.
- Raising 2024 guidance, reflecting positive earnings impact
anticipated from new, alternative financing strategy and
anticipated debt reduction.
OPERATIONAL PERFORMANCE
- Same Store multifamily Blended Net Rental Growth Rate of
4.6%.
- Same Store NOI growth of over 14% YOY and 4% sequentially.
- Earned highest Online Reputation Assessment (ORA®) Score of
REITs in the United States.
- Achieved highest ISS ESG Corporate Score of real estate
companies in the United
States.
Mahbod Nia, Chief Executive
Officer, commented: "We had a positive start to the year,
implementing and advancing a number of value-enhancing operational,
capital recycling and balance-sheet-related initiatives, while
continuing to deliver strong financial results.
"Despite the challenging credit environment, we were able to
secure a $500 million credit facility
and term loan from a broad range of lenders, providing us with
substantial liquidity, financial flexibility and potential for
enhanced earnings, as reflected in our raised guidance. We also
unlocked another $145 million of idle
equity from non-strategic asset sales while continuing to generate
solid operational performance, as evidenced by our Same Store
year-over-year NOI growth of 14%. Looking ahead, we are well
positioned to execute on our multi-pronged optimization strategy as
we seek to continue creating value for our shareholders."
|
March 31,
2024
|
March 31,
2023
|
|
Same Store
Units
|
7,622
|
7,622
|
|
Same Store
Occupancy
|
94.1 %
|
95.9 %
|
|
Same Store Blended
Rental Growth Rate
|
4.6 %
|
10.2 %
|
|
Average Rent per
Home
|
$3,899
|
$3,622
|
SAME STORE PORTFOLIO PERFORMANCE
Haus25 and The James were added to the Same Store pool in 2024.
These properties contributed nearly $8.7 million to NOI in the first
quarter.
The following table presents a more detailed breakout of Same
Store performance:
|
Three Months Ended
March 31,
|
|
2024
|
2023
|
%
|
|
Total Property
Revenue
|
$74,092
|
$68,063
|
8.9 %
|
|
Controllable
Expenses
|
12,622
|
12,517
|
0.8 %
|
|
Non-Controllable
Expenses
|
12,083
|
12,318
|
(1.9) %
|
|
Total Property
Expenses
|
24,705
|
24,835
|
(0.5) %
|
|
Same Store
NOI
|
$49,387
|
$43,228
|
14.2 %
|
TRANSACTION ACTIVITY
As previously announced, the Company closed on the sales of 2
Campus and The Metropolitan Lofts joint venture for a combined
gross price of $40 million, releasing
approximately $16 million in net
proceeds.
The last office asset in the portfolio, Harborside 5, sold for
$85 million, releasing approximately
$81 million in net proceeds.
Subsequent to quarter end, 107 Morgan land parcel sold for
$54 million, releasing approximately
$48 million in net proceeds. An
additional $28 million across two land parcels are under
binding contract with an expected close in the first half of
2024.
FINANCE AND LIQUIDITY
Virtually all (99.9%) of the Company`s debt is hedged or fixed.
The Company`s total debt portfolio has a weighted average rate of
4.4% and weighted average maturity of 3.5 years.
|
Three Months
Ended,
|
|
Balance Sheet
Metric
|
March 31,
2024
|
December 31,
2023
|
|
Weighted Average
Interest Rate
|
4.4 %
|
4.5 %
|
|
Weighted Average Years
to Maturity
|
3.5
|
3.7
|
|
Interest Coverage
Ratio
|
1.5x
|
1.5x
|
|
Net Debt
|
1,714,800
|
1,799,318
|
|
TTM EBITDA
|
142,543
|
151,201
|
|
TTM Net Debt to
EBITDA
|
12.0x
|
11.9x
|
On April 22, 2024, the Company
successfully replaced its existing revolving credit facility and
term loan package with a new $500
million secured facility package, comprising a $200 million delayed-draw term loan and
$300 million revolving credit
facility. Both the revolving credit facility and term loan have a
three-year term and a one-year extension option. The facility
package also has sustainability linked KPIs and includes a
$200 million accordion feature.
Proceeds from the facilities will be used to repay existing
loans over time as well as for general corporate purposes. No funds
were drawn at closing. The Company expects to utilize interest rate
caps to partially hedge future drawn funds.
DIVIDEND
The Company paid a dividend of $0.0525 per share on April
16, 2024.
ESG
In the first quarter, Veris Residential earned the highest ISS
ESG Corporate Score of all real estate companies in the United States, surpassing all but three
real estate companies globally. The Company was also named a Gold
Green Lease Leader by the US Department of Energy and secured three
awards from the International WELL Building Institute: the WELL
Concept Leader Award, Equity Leadership Award, and Commitment and
Engagement Award.
GUIDANCE
As a result of the anticipated earnings impact of the Company`s
new credit facilities and associated debt reduction, the Company is
raising its Core FFO per Share guidance in accordance with the
following table:
|
2024 Guidance
Ranges
|
Low
|
|
High
|
|
Same Store Revenue
Growth
|
4.0 %
|
—
|
5.0 %
|
|
Same Store Expense
Growth
|
5.0 %
|
—
|
6.0 %
|
|
Same Store NOI
Growth
|
2.5 %
|
—
|
5.0 %
|
|
|
|
|
|
Core FFO per Share
Guidance
|
Low
|
|
High
|
|
Net Loss per
Share
|
$(0.38)
|
—
|
$(0.34)
|
|
Add back: Depreciation
per Share
|
$0.88
|
—
|
$0.88
|
|
Core FFO per
Share
|
$0.50
|
—
|
$0.54
|
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for
Thursday, April 25, 2024, at
8:30 a.m. Eastern Time and will be
broadcast live via the Internet at:
http://investors.verisresidential.com/.
The live conference call is also accessible by dialing (877)
451-6152 (domestic) or (201) 389-0879 (international) and
requesting the Veris Residential first quarter 2024 earnings
conference call.
The conference call will be rebroadcast on Veris Residential,
Inc.'s website at:
http://investors.verisresidential.com/ beginning at 8:30 a.m. Eastern Time on Thursday, April 25,
2024.
A replay of the call will also be accessible Friday, April 26, 2024, through Sunday, May 26, 2024, by calling (844) 512-2921
(domestic) or (412) 317-6671 (international) and using the
passcode, 137343562.
Copies of Veris Residential, Inc.'s first quarter 2024 Form 10-Q
and first quarter 2024 Supplemental Operating and Financial Data
are available on Veris Residential, Inc.'s website: Financial
Results
In addition, once filed, these items will be available upon
request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
ABOUT THE COMPANY
Veris Residential, Inc. is a forward-thinking, environmentally
and socially conscious real estate investment trust (REIT) that
primarily owns, operates, acquires and develops holistically
inspired, Class A multifamily properties that meet the
sustainability-conscious lifestyle needs of today's residents while
seeking to positively impact the communities it serves and the
planet at large. The company is guided by an experienced management
team and Board of Directors and is underpinned by leading corporate
governance principle; a best-in-class and sustainable approach to
operations; and an inclusive culture based on equality and
meritocratic empowerment.
For additional information on Veris Residential, Inc. and our
properties available for lease, please visit
http://www.verisresidential.com/.
The information in this press release must be read in
conjunction with, and is modified in its entirety by, the Quarterly
Report on Form 10-Q (the "10-Q") filed by the Company for the
same period with the Securities and Exchange Commission (the "SEC")
and all of the Company's other public filings with the SEC (the
"Public Filings"). In particular, the financial information
contained herein is subject to and qualified by reference to the
financial statements contained in the 10-Q, the footnotes thereto
and the limitations set forth therein. Investors may not rely on
the press release without reference to the 10-Q and the Public
Filings.
We consider portions of this information, including the
documents incorporated by reference, to be forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. We intend such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in Section 21E of such act.
Such forward-looking statements relate to, without limitation, our
future economic performance, plans and objectives for future
operations and projections of revenue and other financial items.
Forward-looking statements can be identified by the use of words
such as "may," "will," "plan," "potential," "projected," "should,"
"expect," "anticipate," "estimate," "target," "continue" or
comparable terminology. Forward-looking statements are inherently
subject to certain risks, trends and uncertainties, many of which
we cannot predict with accuracy and some of which we might not even
anticipate. Although we believe that the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions at the time made, we can give no assurance that such
expectations will be achieved. Future events and actual results,
financial and otherwise, may differ materially from the results
discussed in the forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed
above together with the additional factors under the heading
"Disclosure Regarding Forward-Looking Statements" and "Risk
Factors" in the Company's Annual Report on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q, which are incorporated herein by reference. The Company
assumes no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events, new
information or otherwise, except as required under applicable
law.
|
Investors
|
|
Media
|
|
Anna Malhari
|
|
Amanda Shpiner/Grace
Cartwright
|
|
Chief Operating
Officer
|
|
Gasthalter &
Co.
|
|
investors@verisresidential.com
|
|
veris-residential@gasthalter.com
|
Additional details in Company Information.
|
Consolidated Balance
Sheet
(in thousands)
(unaudited)
|
|
|
March 31,
2024
|
December 31,
2023
|
|
ASSETS
|
|
|
|
Rental
property
|
|
|
|
Land and leasehold
interests
|
$463,826
|
$474,499
|
|
Buildings and
improvements
|
2,633,849
|
2,782,468
|
|
Tenant
improvements
|
8,391
|
30,908
|
|
Furniture, fixtures and
equipment
|
105,668
|
103,613
|
|
3,211,734
|
3,391,488
|
|
Less – accumulated
depreciation and amortization
|
(372,241)
|
(443,781)
|
|
2,839,493
|
2,947,707
|
|
Real estate held for
sale, net
|
66,975
|
58,608
|
|
Net investment in
rental property
|
2,906,468
|
3,006,315
|
|
Cash and cash
equivalents
|
112,701
|
28,007
|
|
Restricted
cash
|
25,649
|
26,572
|
|
Investments in
unconsolidated joint ventures
|
118,830
|
117,954
|
|
Unbilled rents
receivable, net
|
1,542
|
5,500
|
|
Deferred charges and
other assets, net
|
45,999
|
53,956
|
|
Accounts
receivable
|
1,671
|
2,742
|
|
Total
Assets
|
$3,212,860
|
$3,241,046
|
|
LIABILITIES &
EQUITY
|
|
|
|
Mortgages, loans
payable and other obligations, net
|
1,853,149
|
1,853,897
|
|
Dividends and
distributions payable
|
5,642
|
5,540
|
|
Accounts payable,
accrued expenses and other liabilities
|
53,839
|
55,492
|
|
Rents received in
advance and security deposits
|
12,234
|
14,985
|
|
Accrued interest
payable
|
6,486
|
6,580
|
|
Total
Liabilities
|
1,931,350
|
1,936,494
|
|
Redeemable
noncontrolling interests
|
9,294
|
24,999
|
|
Total Stockholders'
Equity
|
1,132,231
|
1,137,478
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
Operating
Partnership
|
106,544
|
107,206
|
|
Consolidated joint
ventures
|
33,441
|
34,869
|
|
Total Noncontrolling
Interests in Subsidiaries
|
$139,985
|
$142,075
|
|
Total
Equity
|
$1,272,216
|
$1,279,553
|
|
Total Liabilities
and Equity
|
$3,212,860
|
$3,241,046
|
|
Consolidated
Statement of Operations
(In thousands,
except per share amounts) (unaudited) 1
|
|
|
Three Months Ended
March 31,
|
|
REVENUES
|
2024
|
2023
|
|
Revenue from
leases
|
$60,642
|
$56,097
|
|
Real estate
services
|
922
|
911
|
|
Parking
income
|
3,745
|
3,728
|
|
Other income
|
2,031
|
1,862
|
|
Total
revenues
|
67,340
|
62,598
|
|
EXPENSES
|
|
|
|
Real estate
taxes
|
9,177
|
9,559
|
|
Utilities
|
2,271
|
2,063
|
|
Operating
services
|
12,570
|
11,383
|
|
Real estate services
expenses
|
5,242
|
1,943
|
|
General and
administrative
|
11,088
|
10,281
|
|
Transaction related
costs
|
516
|
1,027
|
|
Depreciation and
amortization
|
20,117
|
21,788
|
|
Land and other
impairments, net
|
—
|
3,396
|
|
Total
expenses
|
60,981
|
61,440
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
Interest
expense
|
(21,500)
|
(22,014)
|
|
Interest and other
investment income
|
538
|
116
|
|
Equity in earnings
(losses) of unconsolidated joint ventures
|
254
|
(68)
|
|
Gain (loss) on
disposition of developable land
|
784
|
(22)
|
|
Gain (loss) on sale of
unconsolidated joint venture interests
|
7,100
|
—
|
|
Other income (expense),
net
|
255
|
1,998
|
|
Total other
(expense) income, net
|
(12,569)
|
(19,990)
|
|
Loss from continuing
operations before income tax expense
|
(6,210)
|
(18,832)
|
|
Provision for income
taxes
|
(59)
|
—
|
|
Loss from continuing
operations after income tax expense
|
(6,269)
|
(18,832)
|
|
Income from
discontinued operations
|
252
|
1,822
|
|
Realized gains (losses)
and unrealized gains (losses) on disposition of rental property and
impairments, net
|
1,548
|
780
|
|
Total discontinued
operations, net
|
1,800
|
2,602
|
|
Net
loss
|
(4,469)
|
(16,230)
|
|
Noncontrolling interest
in consolidated joint ventures
|
495
|
587
|
|
Noncontrolling
interests in Operating Partnership of income from continuing
operations
|
523
|
2,277
|
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
(155)
|
(241)
|
|
Redeemable
noncontrolling interests
|
(297)
|
(6,366)
|
|
Net loss available
to common shareholders
|
$(3,903)
|
$(19,973)
|
|
Basic earnings per
common share:
|
|
|
|
Net loss available to
common shareholders
|
$(0.04)
|
$(0.27)
|
|
Diluted earnings per
common share:
|
|
|
|
Net loss available to
common shareholders
|
$(0.04)
|
$(0.27)
|
|
Basic weighted average
shares outstanding
|
92,275
|
91,226
|
|
Diluted weighted
average shares outstanding(6)
|
100,968
|
100,526
|
|
|
|
1
|
For more details see
Reconciliation to Net Income (Loss) to NOI
|
|
FFO, Core FFO and
Core AFFO
(in thousands,
except per share/unit amounts)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
2023
|
|
Net loss available to
common shareholders
|
$(3,903)
|
$(19,973)
|
|
Add (deduct):
Noncontrolling interests in Operating Partnership
|
(523)
|
(2,277)
|
|
Noncontrolling
interests in discontinued operations
|
155
|
241
|
|
Real estate-related
depreciation and amortization on continuing
operations(1)
|
22,631
|
24,129
|
|
Real estate-related
depreciation and amortization on discontinued operations
|
668
|
6,815
|
|
Continuing operations:
Gain on sale from unconsolidated joint ventures
|
(7,100)
|
—
|
|
Discontinued
operations: Realized (gains) losses and unrealized (gains) losses
on disposition of rental property, net
|
(1,548)
|
(780)
|
|
FFO(2)
|
$10,380
|
$8,155
|
|
|
|
|
Add/(Deduct):
|
|
|
|
Loss from
extinguishment of debt, net
|
—
|
12
|
|
Land and other
impairments
|
—
|
3,396
|
|
(Gain) Loss on
disposition of developable land
|
(784)
|
22
|
|
Rebranding and
Severance/Compensation related costs (G&A)
|
1,637
|
1,148
|
|
Rebranding and
Severance/Compensation related costs (RE Services)
|
1,526
|
—
|
|
Amortization of
derivative premium
|
904
|
1,133
|
|
Transaction related
costs
|
516
|
1,027
|
|
Core
FFO
|
$14,179
|
$14,893
|
|
|
|
|
Add (Deduct) Non-Cash
Items:
|
|
|
|
Straight-line rent
adjustments(3)
|
25
|
(1,253)
|
|
Amortization of market
lease intangibles, net
|
(7)
|
(30)
|
|
Amortization of lease
inducements
|
7
|
15
|
|
Amortization of stock
compensation
|
3,727
|
2,877
|
|
Non-real estate
depreciation and amortization
|
210
|
384
|
|
Amortization of
deferred financing costs
|
1,242
|
1,211
|
|
Deduct:
|
|
|
|
Non-incremental revenue
generating capital expenditures:
|
|
|
|
Building
improvements
|
(1,040)
|
(2,092)
|
|
Tenant improvements
and leasing commissions(4)
|
(9)
|
(352)
|
|
Tenant improvements and
leasing commissions on space vacant for more than one
year
|
—
|
(736)
|
|
Core
AFFO(2)
|
$18,334
|
$14,917
|
|
|
|
|
Funds from Operations
per share/unit-diluted
|
$0.10
|
$0.08
|
|
Core Funds from
Operations per share/unit-diluted
|
$0.14
|
$0.15
|
|
Dividends declared per
common share
|
$0.0525
|
—
|
|
|
See Non-GAAP
Financial Definitions.
|
|
See Consolidated
Statements of Operations and Non-GAAP Financial
Footnotes.
|
|
Adjusted EBITDA and
EBITDAre
($ in thousands)
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
2023
|
|
Core FFO (calculated on
a previous page)
|
$14,179
|
$14,893
|
|
Deduct:
|
|
|
|
Equity in (earnings)
loss of unconsolidated joint ventures
|
(459)
|
68
|
|
Equity in earnings
share of depreciation and amortization
|
(2,724)
|
(2,576)
|
|
Add-back:
|
|
|
|
Interest
expense
|
21,500
|
22,836
|
|
Amortization of
derivative premium
|
(904)
|
(1,133)
|
|
Recurring joint venture
distributions
|
1,701
|
1,547
|
|
Noncontrolling
interests in consolidated joint ventures
|
(495)
|
(587)
|
|
Redeemable
noncontrolling interests
|
297
|
6,366
|
|
Income tax
expense
|
82
|
51
|
|
Adjusted
EBITDA
|
$33,177
|
$41,465
|
|
|
|
|
Add/(Deduct):
|
|
|
|
Noncontrolling
interests in Operating Partnership of income from continuing
operations
|
(523)
|
(2,277)
|
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
155
|
241
|
|
Noncontrolling
interests in consolidated joint ventures(a)
|
(495)
|
(587)
|
|
Redeemable
noncontrolling interests
|
297
|
6,366
|
|
Interest
expense
|
21,500
|
22,836
|
|
Income tax
expense
|
82
|
51
|
|
Depreciation and
amortization
|
20,785
|
28,754
|
|
Deduct:
|
|
|
|
Discontinued
operations: Realized (gains) losses and unrealized (gains) losses
on disposition of rental property, net
|
(1,548)
|
(780)
|
|
Equity in (earnings)
loss of unconsolidated joint ventures
|
(254)
|
68
|
|
Add:
|
|
|
|
Company's share of
property NOI's in unconsolidated joint
ventures(1)
|
7,728
|
13,381
|
|
EBITDAre
|
$43,824
|
$48,080
|
|
Add:
|
|
|
|
Loss from
extinguishment of debt, net
|
—
|
12
|
|
Severance and
compensation-related costs
|
1,637
|
1,148
|
|
Transaction related
costs
|
516
|
1,027
|
|
Land and other
impairments, net
|
—
|
3,396
|
|
Gain on disposition of
developable land
|
(784)
|
22
|
|
Amortization of
derivative premium
|
904
|
1,133
|
|
Adjusted
EBITDAre
|
$46,097
|
$54,818
|
|
|
|
|
Net debt at period
end(5)
|
$1,714,800
|
$1,763,369
|
|
Net debt to Adjusted
EBITDA
|
12.9x
|
10.6x
|
|
|
See Consolidated
Statements of Operations and Non-GAAP Financial
Footnotes.
|
|
See Non-GAAP
Financial Definitions.
|
|
a) See Noncontrolling
Interests in Consolidated Joint Ventures.
|
|
Components of Net
Asset Value
($ in
thousands)
|
|
|
Real Estate
Portfolio
|
|
Other
Assets
|
|
|
|
|
|
|
|
Operating Multifamily
NOI1
|
Total
|
At
Share
|
|
Cash and Cash
Equivalents2
|
$142,180
|
|
New Jersey
Waterfront
|
$165,056
|
$140,266
|
|
Restricted
Cash
|
25,649
|
|
Massachusetts
|
25,080
|
25,080
|
|
Other Assets
|
49,212
|
|
Other
|
30,276
|
22,329
|
|
Subtotal Other
Assets
|
$217,041
|
|
Total Multifamily
NOI
|
$220,412
|
$187,676
|
|
|
|
|
Commercial
NOI3
|
4,588
|
3,712
|
|
Liabilities and
Other Considerations
|
|
|
Total
NOI
|
$225,000
|
$191,387
|
|
|
|
|
|
|
|
Operating -
Consolidated Debt at Share
|
$1,793,947
|
|
Non-Strategic
Assets
|
|
Operating -
Unconsolidated Debt at Share
|
297,806
|
|
|
Other
Liabilities
|
78,201
|
|
Non-Strategic Assets
Under Binding Contract4
|
|
$28,000
|
|
Revolving Credit
Facility5
|
—
|
|
Estimated Land
Value6
|
|
187,311
|
|
Term
Loan5
|
—
|
|
Subtotal
Non-Strategic Assets
|
|
$215,311
|
|
Preferred
Units
|
9,294
|
|
|
|
|
Subtotal Liabilities
and Other Considerations
|
$2,179,248
|
|
|
|
|
|
|
|
|
|
|
Outstanding
Shares7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Shares Outstanding for 1Q 2024
|
100,967,737
|
|
|
|
|
|
|
|
1
|
See Multifamily
Operating Portfolio page for more details. The Real Estate
Portfolio table is reflective of the quarterly NOI
annualized.
|
|
2
|
Pro forma cash as of
April 22, 2024, for transaction activity that occurred subsequent
to quarter end.
|
|
3
|
See Commercial Assets
and Developable Land page for more details.
|
|
4
|
Represents the
estimated gross price of two land parcels, 6 Becker and 85
Livingston.
|
|
5
|
The prior facility
comprised of a $115 million term loan and $60 million revolver was
terminated on April 22, 2024. The Company simultaneously secured a
$500 million facility comprised of a $300 million revolver and $200
million delayed-draw term loan. The facility has a three-year term
with a one-year extension option and a $200 million accordion
feature.
|
|
6
|
Based off 4,139
potential units, see Commercial Assets and Developable Land page
for more details.
|
|
7
|
Common Shares
Outstanding as of March 31, 2024 were 92,385,167.
|
|
|
|
See Non-GAAP Financial
Definitions.
|
|
Multifamily
Operating Portfolio
(in thousands,
except Revenue per home)
|
|
|
|
|
Operating
Highlights
|
|
|
|
Percentage
Occupied
|
Average
Revenue
per
Home
|
NOI
|
Debt
Balance
|
|
Ownership
|
Apartments
|
1Q
2024
|
4Q
2023
|
1Q
2024
|
4Q
2023
|
1Q
2024
|
4Q
2023
|
|
NJ
Waterfront
|
|
|
|
|
|
|
|
|
|
|
Haus25
|
100.0 %
|
750
|
91.4 %
|
94.1 %
|
$4,788
|
$4,665
|
$7,279
|
$6,884
|
$343,061
|
|
Liberty
Towers
|
100.0 %
|
648
|
94.7 %
|
93.2 %
|
4,221
|
4,220
|
4,665
|
4,930
|
265,000
|
|
BLVD 401
|
74.3 %
|
311
|
95.0 %
|
97.4 %
|
4,134
|
4,138
|
2,470
|
2,427
|
117,000
|
|
BLVD 425
|
74.3 %
|
412
|
95.7 %
|
95.6 %
|
3,995
|
3,987
|
3,103
|
3,038
|
131,000
|
|
BLVD 475
|
100.0 %
|
523
|
96.4 %
|
96.5 %
|
4,063
|
4,078
|
4,675
|
4,180
|
165,000
|
|
Soho Lofts
|
100.0 %
|
377
|
95.9 %
|
94.4 %
|
4,718
|
4,627
|
2,905
|
2,616
|
158,034
|
|
Urby
Harborside
|
85.0 %
|
762
|
90.7 %
|
92.3 %
|
4,072
|
4,014
|
5,318
|
5,370
|
185,017
|
|
RiverHouse 9
|
100.0 %
|
313
|
94.8 %
|
96.2 %
|
4,242
|
4,148
|
2,899
|
2,358
|
110,000
|
|
RiverHouse
11
|
100.0 %
|
295
|
95.9 %
|
94.6 %
|
4,405
|
4,177
|
2,518
|
2,140
|
100,000
|
|
RiverTrace
|
22.5 %
|
316
|
94.5 %
|
95.6 %
|
3,804
|
3,711
|
2,273
|
2,184
|
82,000
|
|
Capstone
|
40.0 %
|
360
|
96.6 %
|
95.0 %
|
4,339
|
4,379
|
3,159
|
2,973
|
135,000
|
|
NJ Waterfront
Subtotal
|
85.0 %
|
5,067
|
94.2 %
|
94.6 %
|
$4,274
|
$4,219
|
$41,264
|
$39,100
|
$1,791,112
|
|
Massachusetts
|
|
|
|
|
|
|
|
|
|
|
Portside at East
Pier
|
100.0 %
|
181
|
94.4 %
|
94.9 %
|
$3,206
|
$3,174
|
$1,159
|
$1,163
|
$56,500
|
|
Portside 2 at East
Pier
|
100.0 %
|
296
|
95.7 %
|
96.2 %
|
3,328
|
3,384
|
1,997
|
2,034
|
96,613
|
|
145 Front at City
Square
|
100.0 %
|
365
|
94.2 %
|
92.9 %
|
2,531
|
2,576
|
1,549
|
1,608
|
62,746
|
|
The Emery
|
100.0 %
|
326
|
96.1 %
|
92.3 %
|
2,730
|
2,760
|
1,565
|
1,515
|
71,758
|
|
Massachusetts
Subtotal
|
100.0 %
|
1,168
|
95.1 %
|
93.9 %
|
$2,893
|
$2,925
|
$6,270
|
$6,320
|
$287,617
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
The Upton
|
100.0 %
|
193
|
91.8 %
|
91.7 %
|
$4,614
|
$4,752
|
$1,417
|
$1,475
|
$75,000
|
|
The James
|
100.0 %
|
240
|
93.9 %
|
96.3 %
|
3,027
|
3,052
|
1,380
|
1,330
|
—
|
|
Signature
Place
|
100.0 %
|
197
|
95.8 %
|
97.5 %
|
3,157
|
3,174
|
1,017
|
974
|
43,000
|
|
Quarry Place at
Tuckahoe
|
100.0 %
|
108
|
93.9 %
|
93.5 %
|
4,352
|
4,321
|
707
|
709
|
41,000
|
|
Riverpark at
Harrison
|
45.0 %
|
141
|
92.9 %
|
92.2 %
|
2,886
|
2,885
|
514
|
577
|
30,192
|
|
Metropolitan at 40
Park1
|
25.0 %
|
130
|
89.9 %
|
95.4 %
|
3,675
|
3,613
|
711
|
721
|
34,100
|
|
Station
House
|
50.0 %
|
378
|
91.5 %
|
92.1 %
|
2,873
|
2,562
|
1,823
|
1,713
|
88,927
|
|
Other
Subtotal
|
73.8 %
|
1,387
|
92.7 %
|
94.0 %
|
$3,374
|
$3,307
|
$7,569
|
$7,499
|
$312,219
|
|
Operating
Portfolio2,3
|
85.2 %
|
7,622
|
94.1 %
|
94.4 %
|
$3,899
|
$3,855
|
$55,103
|
$52,919
|
$2,390,948
|
|
Metropolitan
Lofts4
|
|
|
|
|
|
|
$81
|
$319
|
$—
|
|
Total
Portfolio
|
|
|
|
|
|
|
$55,184
|
$53,238
|
$2,390,948
|
|
|
|
1
|
As of March 31, 2024,
Priority Capital included Metropolitan at $23.3M
(Prudential).
|
|
2
|
Excludes approximately
189,367 sqft of ground floor retail of which 140,522 sf was leased
as of March 31, 2024.
|
|
3
|
See Unconsolidated
Joint Ventures and Multifamily Property Information pages for more
details.
|
|
4
|
In January 2024, the
Company's joint venture sold Lofts at 40 Park ("Metropolitan
Lofts") thus it is excluded from same store calculations. Proceeds
from the sale were used to repay the outstanding loan
balance.
|
|
Commercial Assets
and Developable Land
($ in
thousands)
|
|
|
Commercial
|
Location
|
Ownership
|
Rentable
SF
|
Percentage
Leased
1Q
2024
|
Percentage
Leased
4Q
2023
|
NOI
1Q
2024
|
NOI
4Q
2023
|
Debt
Balance
|
|
Port Imperial Garage
South
|
Weehawken,
NJ
|
70.0 %
|
320,426
|
N/A
|
N/A
|
$468
|
$517
|
$31,511
|
|
Port Imperial Garage
North
|
Weehawken,
NJ
|
100.0 %
|
304,617
|
N/A
|
N/A
|
(57)
|
36
|
—
|
|
Port Imperial Retail
South
|
Weehawken,
NJ
|
70.0 %
|
18,064
|
100.0 %
|
100.0 %
|
202
|
185
|
—
|
|
Port Imperial Retail
North
|
Weehawken,
NJ
|
100.0 %
|
8,400
|
100.0 %
|
100.0 %
|
72
|
373
|
—
|
|
Riverwalk at Port
Imperial
|
West New York,
NJ
|
100.0 %
|
30,426
|
73.2 %
|
59.2 %
|
177
|
221
|
—
|
|
Shops at 40
Park
|
Morristown,
NJ
|
25.0 %
|
50,973
|
69.0 %
|
69.0 %
|
285
|
267
|
6,067
|
|
Commercial
Total
|
|
80.9 %
|
732,906
|
77.8 %
|
73.8 %
|
$1,147
|
$1,599
|
$37,578
|
|
Developable Land
Parcels1
|
|
NJ
Waterfront2
|
2,351
|
|
Massachusetts
|
849
|
|
Other
|
1,378
|
|
Developable Land
Parcels
Total
|
4,578
|
|
Under Binding Contract
for Sale
|
439
|
|
Total Less Under
Binding Contract
|
4,139
|
|
|
|
1
|
The Company has an
additional 13,775 SF of potential retail space within land
developments that is not represented in this table.
|
|
2
|
Reflects the sale of
107 Morgan subsequent to quarter end.
|
|
Same Store Market
Information1
|
|
Sequential Quarter
Comparison
(NOI in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI at
Share
|
Occupancy
|
Blended Lease
Rate2
|
|
Apartments
|
1Q
2024
|
4Q
2023
|
Change
|
1Q
2024
|
4Q
2023
|
Change
|
1Q
2024
|
4Q
2023
|
|
New Jersey
Waterfront
|
5,067
|
$36,697
|
$34,754
|
5.6 %
|
94.2 %
|
94.6 %
|
(0.4) %
|
4.1 %
|
7.7 %
|
|
Massachusetts
|
1,168
|
6,520
|
6,572
|
(0.8) %
|
95.1 %
|
93.9 %
|
1.2 %
|
2.9 %
|
0.5 %
|
|
Other3
|
1,387
|
6,170
|
6,089
|
1.3 %
|
92.7 %
|
94.0 %
|
(1.3) %
|
4.8 %
|
4.6 %
|
|
Total
|
7,622
|
$49,387
|
$47,415
|
4.2 %
|
94.1 %
|
94.4 %
|
(0.3) %
|
4.6 %
|
6.1 %
|
|
Year-over-Year First
Quarter Comparison
(NOI in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI at
Share
|
Occupancy
|
Blended Lease
Rate2
|
|
Apartments
|
1Q
2024
|
1Q
2023
|
Change
|
1Q
2024
|
1Q
2023
|
Change
|
1Q
2024
|
1Q
2023
|
|
New Jersey
Waterfront
|
5,067
|
$36,697
|
$31,159
|
17.8 %
|
94.2 %
|
96.2 %
|
(2.0) %
|
4.1 %
|
13.2 %
|
|
Massachusetts
|
1,168
|
6,520
|
6,155
|
5.9 %
|
95.1 %
|
95.5 %
|
(0.4) %
|
2.9 %
|
4.2 %
|
|
Other3
|
1,387
|
6,170
|
5,914
|
4.3 %
|
92.7 %
|
94.8 %
|
(2.1) %
|
4.8 %
|
3.6 %
|
|
Total
|
7,622
|
$49,387
|
$43,228
|
14.2 %
|
94.1 %
|
95.9 %
|
(1.8) %
|
4.6 %
|
10.2 %
|
|
Average Revenue per
Home (based on 7,622 units from 1Q23 to Present)
|
|
|
|
|
|
|
|
|
1Q
2024
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
1Q
20224
|
|
New Jersey
Waterfront
|
$4,274
|
$4,219
|
$4,084
|
$4,048
|
$3,919
|
$3,298
|
|
Massachusetts
|
2,893
|
2,925
|
2,918
|
2,836
|
2,798
|
2,554
|
|
Other3
|
3,374
|
3,307
|
3,350
|
3,356
|
3,227
|
2,930
|
|
Total
|
$3,899
|
$3,855
|
$3,772
|
$3,736
|
$3,622
|
$3,103
|
|
|
|
1
|
All statistics are
based off the current 7,622 Same Store pool. Same Store 4Q23 was
6,691 and before 2023 the actual pool was 5,825 units when
initially reported.
|
|
2
|
Blended lease rates
exclude properties not managed by Veris.
|
|
3
|
"Other" includes
properties in Suburban NJ, New York, and Washington, DC. See
Multifamily Operating Portfolio page for breakout.
|
|
4
|
The total portfolio
included 6,691 units in 2022. The average revenue per home is
based on the total portfolio less Metropolitan Lofts for 1Q
2022.
|
|
See Non-GAAP Financial
Definitions.
|
|
Same Store
Performance
($ in
thousands)
|
|
|
Multifamily Same
Store1
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Sequential
|
|
2024
|
2023
|
Change
|
%
|
|
1Q24
|
4Q23
|
Change
|
%
|
|
Apartment Rental
Income
|
$66,697
|
$61,873
|
$4,824
|
7.8 %
|
|
$66,697
|
$66,597
|
$100
|
0.2 %
|
|
Parking/Other
Income
|
7,395
|
6,190
|
1,205
|
19.5 %
|
|
7,395
|
6,887
|
508
|
7.4 %
|
|
Total Property
Revenues2
|
$74,092
|
$68,063
|
$6,029
|
8.9 %
|
|
$74,092
|
$73,484
|
$608
|
0.8 %
|
|
Marketing &
Administration
|
2,138
|
2,345
|
(207)
|
(8.8) %
|
|
2,138
|
2,559
|
(421)
|
(16.5) %
|
|
Utilities
|
2,573
|
2,424
|
149
|
6.1 %
|
|
2,573
|
2,190
|
383
|
17.5 %
|
|
Payroll
|
4,298
|
4,445
|
(147)
|
(3.3) %
|
|
4,298
|
4,667
|
(369)
|
(7.9) %
|
|
Repairs &
Maintenance
|
3,613
|
3,303
|
310
|
9.4 %
|
|
3,613
|
4,431
|
(818)
|
(18.5) %
|
|
Controllable
Expenses
|
$12,622
|
$12,517
|
$105
|
0.8 %
|
|
$12,622
|
$13,847
|
$(1,225)
|
(8.8) %
|
|
Other Fixed
Fees
|
722
|
717
|
5
|
0.7 %
|
|
722
|
737
|
(15)
|
(2.0) %
|
|
Insurance
|
1,780
|
1,781
|
(1)
|
(0.1) %
|
|
1,780
|
1,744
|
36
|
2.1 %
|
|
Real Estate
Taxes
|
9,581
|
9,820
|
(239)
|
(2.4) %
|
|
9,581
|
9,741
|
(160)
|
(1.6) %
|
|
Non-Controllable
Expenses
|
$12,083
|
$12,318
|
$(235)
|
(1.9) %
|
|
$12,083
|
$12,222
|
$(139)
|
(1.1) %
|
|
Total Property
Expenses
|
$24,705
|
$24,835
|
$(130)
|
(0.5) %
|
|
$24,705
|
$26,069
|
$(1,364)
|
(5.2) %
|
|
Same Store GAAP
NOI
|
$49,387
|
$43,228
|
$6,159
|
14.2 %
|
|
$49,387
|
$47,415
|
$1,972
|
4.2 %
|
|
Real Estate Tax
Adjustments3
|
—
|
(490)
|
490
|
|
|
—
|
—
|
—
|
|
|
Normalized Same
Store NOI
|
$49,387
|
$43,718
|
$5,669
|
13.0 %
|
|
$49,387
|
$47,415
|
$1,972
|
4.2 %
|
|
Total Units
|
7,622
|
7,622
|
|
|
|
7,622
|
7,622
|
|
|
|
% Ownership
|
85.2 %
|
85.2 %
|
|
|
|
85.2 %
|
85.2 %
|
|
|
|
% Occupied - Quarter
End
|
94.1 %
|
95.9 %
|
(1.8) %
|
|
|
94.1 %
|
94.4 %
|
(0.3) %
|
|
|
|
|
1
|
Values represent the
Company`s pro rata ownership of the operating portfolio. The James
and Haus25 were added to the Same Store pool in 1Q 2024.
|
|
2
|
Revenues reported based
on Generally Accepted Accounting Principals or "GAAP".
|
|
3
|
Represents tax
settlements and final tax rate adjustments recognized that are
applicable to prior periods.
|
|
|
See Non-GAAP Financial Definitions.
|
|
Debt
Profile
($ in
thousands)
|
|
|
Lender
|
Effective
Interest
Rate(1)
|
March 31,
2024
|
December 31,
2023
|
Date
of
Maturity
|
|
Secured Permanent
Loans
|
|
|
|
|
|
|
Signature
Place
|
Nationwide Life
Insurance Company
|
3.74 %
|
43,000
|
43,000
|
08/01/24
|
|
Liberty
Towers
|
American General Life
Insurance Company
|
3.37 %
|
265,000
|
265,000
|
10/01/24
|
|
Portside 2 at East
Pier
|
New York Life Insurance
Co.
|
4.56 %
|
96,613
|
97,000
|
03/10/26
|
|
BLVD 425
|
New York Life Insurance
Co.
|
4.17 %
|
131,000
|
131,000
|
08/10/26
|
|
BLVD 401
|
New York Life Insurance
Co.
|
4.29 %
|
117,000
|
117,000
|
08/10/26
|
|
Portside at East
Pier(2)
|
KKR
|
SOFR + 2.75%
|
56,500
|
56,500
|
09/07/26
|
|
The
Upton(3)
|
Bank of New York
Mellon
|
SOFR + 1.58%
|
75,000
|
75,000
|
10/27/26
|
|
145 Front at City
Square(4)
|
US Bank
|
SOFR + 1.84%
|
62,746
|
63,000
|
12/10/26
|
|
RiverHouse
9(5)
|
JP Morgan
|
SOFR + 1.41%
|
110,000
|
110,000
|
06/21/27
|
|
Quarry Place at
Tuckahoe
|
Natixis Real Estate
Capital, LLC
|
4.48 %
|
41,000
|
41,000
|
08/05/27
|
|
BLVD 475
|
The Northwestern Mutual
Life Insurance Co.
|
2.91 %
|
165,000
|
165,000
|
11/10/27
|
|
Haus25
|
Freddie Mac
|
6.04 %
|
343,061
|
343,061
|
09/01/28
|
|
RiverHouse
11
|
The Northwestern Mutual
Life Insurance Co.
|
4.52 %
|
100,000
|
100,000
|
01/10/29
|
|
Soho Lofts
|
Flagstar
Bank
|
3.77 %
|
158,034
|
158,777
|
07/01/29
|
|
Port Imperial Garage
South
|
American General Life
& A/G PC
|
4.85 %
|
31,511
|
31,645
|
12/01/29
|
|
The Emery
|
Flagstar
Bank
|
3.21 %
|
71,758
|
72,000
|
01/01/31
|
|
Principal Balance
Outstanding
|
|
|
$1,867,223
|
$1,868,983
|
|
|
Unamortized Deferred
Financing Costs
|
|
|
(14,074)
|
(15,086)
|
|
|
Total Secured
Permanent Loans
|
|
|
$1,853,149
|
$1,853,897
|
|
|
|
|
|
|
|
|
Secured RCF &
Term Loans:
|
|
|
|
|
|
|
Revolving Credit
Facility
|
JP Morgan & Goldman
Sachs
|
SOFR + 4.10%
|
$—
|
$—
|
07/25/24
|
|
Term Loan
|
JP Morgan & Goldman
Sachs
|
SOFR + 4.10%
|
—
|
—
|
07/25/24
|
|
Total RCF & Term
Loan Debt(6)
|
|
|
$—
|
$—
|
|
|
Total
Debt
|
|
|
$1,853,149
|
$1,853,897
|
|
|
|
See Debt Profile
Footnotes.
|
|
Debt Summary and
Maturity Schedule
|
|
As of March 31, 99.9%
of the Company`s total pro forma debt portfolio (consolidated and
unconsolidated) is hedged or fixed. The Company`s total debt
portfolio has a weighted average interest rate of 4.4% and a
weighted average maturity of 3.5 years.
|
|
($ in
thousands)
|
|
Balance
|
%
of
Total
|
Weighted
Average
Interest
Rate
|
Weighted
Average
Maturity in
Years
|
|
Fixed Rate &
Hedged Debt
|
|
|
|
|
|
Fixed Rate & Hedged
Secured Debt
|
$1,867,223
|
100.0 %
|
4.34 %
|
3.2
|
|
Variable Rate
Debt
|
|
|
|
|
|
Variable Rate
Debt1
|
—
|
— %
|
— %
|
—
|
|
Totals / Weighted
Average
|
$1,867,223
|
100.0 %
|
4.34 %
|
3.2
|
|
Unamortized Deferred
Financing Costs
|
(14,074)
|
|
|
|
|
Total Consolidated
Debt, net
|
$1,853,149
|
|
|
|
|
Partners'
Share
|
(73,276)
|
|
|
|
|
VRE Share of Total
Consolidated Debt, net2
|
$1,779,873
|
|
|
|
|
|
|
|
|
|
Unconsolidated
Secured Debt
|
|
|
|
|
|
VRE Share
|
$297,806
|
53.1 %
|
4.89 %
|
5.0
|
|
Partners'
Share
|
263,497
|
46.9 %
|
4.89 %
|
5.0
|
|
Total Unconsolidated
Secured Debt
|
$561,303
|
100.0 %
|
4.89 %
|
5.0
|
|
|
|
|
|
|
Pro Rata Debt
Portfolio
|
|
|
|
|
|
Fixed Rate & Hedged
Secured Debt
|
$2,090,236
|
99.9 %
|
4.42 %
|
3.5
|
|
Variable Rate Secured
Debt
|
1,517
|
0.1 %
|
7.31 %
|
0.8
|
|
Total Pro Rata Debt
Portfolio
|
$2,091,753
|
100.0 %
|
4.42 %
|
3.5
|
|
Pro Forma Debt
Maturity Schedule3
|
|
($ in millions)
|
|
Secured
Debt
|
Planned 2024
Refinancings
|
Unused Revolver
Capacity
|
Unused Term Loan
Capacity
|
|
2024
|
|
$308
|
|
|
|
2025
|
|
|
|
|
|
2026
|
$476
|
$63
|
|
|
|
2027
|
$316
|
|
|
|
|
2028
|
$343
|
|
$300
|
$200
|
|
2029
|
$132
|
$158
|
|
|
|
2030
|
|
|
|
|
|
2031
|
$72
|
|
|
|
|
|
|
1
|
Variable rate debt
includes the Revolver and reflects the balances on the Revolver and
Term Loan.
|
|
2
|
Minority interest share
of consolidated debt is comprised of $33.7 million at BLVD 425,
$30.1 million at BLVD 401 and $9.5 million at Port Imperial South
Garage.
|
|
3
|
The Unused Term Loan
and Unused Revolver Capacity balances are shown with the one-year
extension option utilized on the new facilities.
|
|
Annex 1: Transaction
Activity
|
|
|
2024 Dispositions to
Date
|
|
|
|
|
|
|
$ in thousands except
per SF
|
|
Location
|
Transaction
Date
|
Number of
Buildings
|
SF
|
Gross
Asset
Value
|
|
Land
|
|
|
|
|
|
|
2 Campus
Drive
|
Parsippany-Troy Hills,
NJ
|
1/3/2024
|
N/A
|
N/A
|
$9,700
|
|
107 Morgan
|
Jersey City,
NJ
|
4/16/2024
|
N/A
|
N/A
|
54,000
|
|
Subtotal
Land
|
|
|
|
|
$63,700
|
|
Multifamily
|
|
|
|
|
|
|
Metropolitan
Lofts1
|
Morristown,
NJ
|
1/12/2024
|
1
|
54,683
|
$30,300
|
|
Subtotal
Multifamily
|
|
|
1
|
54,683
|
$30,300
|
|
Office
|
|
|
|
|
|
|
Harborside 5
|
Jersey City,
NJ
|
3/20/2024
|
1
|
977,225
|
$85,300
|
|
Subtotal
Office
|
|
|
1
|
977,225
|
$85,300
|
|
|
|
2024 Dispositions to
Date
|
$179,300
|
|
|
|
1
|
The joint venture sold
the property; releasing approximately $6 million of net proceeds to
the Company.
|
|
Annex 2:
Reconciliation of Net Income (Loss) to NOI (three months
ended)
|
|
|
1Q
2024
|
|
4Q
2023
|
|
Total
|
|
Total
|
|
Net Income
(Loss)
|
$
(4,469)
|
|
$
(5,746)
|
|
Deduct:
|
|
|
|
|
Income from
discontinued operations
|
(252)
|
|
33,489
|
|
Realized gains and
unrealized gains on disposition of rental property and impairments,
net
|
(1,548)
|
|
(43,970)
|
|
Real estate services
income
|
(922)
|
|
(1,084)
|
|
Interest and other
investment income
|
(538)
|
|
(232)
|
|
Equity in (earnings)
losses of unconsolidated joint ventures
|
(254)
|
|
(260)
|
|
(Gain) loss on
disposition of developable land
|
(784)
|
|
(7,090)
|
|
Loss from
extinguishment of debt, net
|
—
|
|
1,903
|
|
Realized gains (losses)
and unrealized gains (losses) on disposition of rental property,
net
|
—
|
|
2
|
|
Gain on sale of
unconsolidated joint venture interests
|
(7,100)
|
|
—
|
|
Other income,
net
|
(255)
|
|
(77)
|
|
Add:
|
|
|
|
|
Real estate services
expenses
|
5,242
|
|
4,323
|
|
General and
administrative
|
11,088
|
|
9,990
|
|
Transaction related
costs
|
516
|
|
576
|
|
Depreciation and
amortization
|
20,117
|
|
21,227
|
|
Interest
expense
|
21,500
|
|
21,933
|
|
Provision for income
taxes
|
59
|
|
199
|
|
Land impairments and
other impairments, net
|
—
|
|
5,928
|
|
Net Operating Income
(NOI)
|
$
42,400
|
|
$
41,111
|
|
|
|
|
|
Summary of
Consolidated Multifamily NOI by Type (unaudited):
|
1Q
2024
|
|
4Q
2023
|
|
Total Consolidated
Multifamily - Operating Portfolio
|
$
41,305
|
|
$
39,381
|
|
Total Consolidated
Commercial
|
862
|
|
1,332
|
|
Total NOI from
Consolidated Properties (excl. unconsolidated JVs/subordinated
interests)
|
$
42,167
|
|
$
40,713
|
|
NOI (loss) from
services, land/development/repurposing & other
assets
|
875
|
|
660
|
|
Total Consolidated
Multifamily NOI
|
$
43,042
|
|
$
41,373
|
|
|
|
|
|
See Consolidated
Statement of Operations
|
|
See Non-GAAP Financial
Definitions.
|
|
Annex 3:
Consolidated Statement of Operations and Non-GAAP Financial
Footnotes
|
|
FFO, Core FFO, AFFO,
NOI, Adjusted EBITDA, & EBITDAre
|
|
|
|
1.
|
Includes the Company's
share from unconsolidated joint ventures, and adjustments for
noncontrolling interest of $2.7 million and $2.6 million for the
three months ended March 31, 2024 and 2023, respectively. Excludes
non-real estate-related depreciation and amortization of $0.2
million for the three months ended March 31, 2024 and 2023,
respectively.
|
|
2.
|
Funds from operations
is calculated in accordance with the definition of FFO of the
National Association of Real Estate Investment Trusts (Nareit). See
Non-GAAP Financial Definitions for information About FFO, Core FFO,
AFFO, NOI, Adjusted EBITDA & EBITDAre.
|
|
3.
|
Includes the Company's
share from unconsolidated joint ventures of $9.3 thousand and $26.6
thousand for the three months ended March 31, 2024 and 2023,
respectively.
|
|
4.
|
Excludes expenditures
for tenant spaces in properties that have not been owned by the
Company for at least a year.
|
|
5.
|
Net Debt calculated by
taking the sum of secured revolving credit facility, secured term
loan, and mortgages, loans payable and other obligations, and
deducting cash and cash equivalents and restricted cash, all at
period end.
|
|
6.
|
Calculated based on
weighted average common shares outstanding, assuming redemption of
Operating Partnership common units into common shares 8,418 and
9,146 shares for the three months ended March 31, 2024 and 2023,
respectively, plus dilutive Common Stock Equivalents (i.e. stock
options).
|
|
|
See Consolidated
Statement of Operations.
|
|
See FFO, Core FFO and
Core AFFO.
|
|
See Adjusted EBITDA and
EBITDAre.
|
|
Annex 4:
Unconsolidated Joint Ventures
|
|
($ in
thousands)
|
|
|
Property
|
Units
|
Physical
Occupancy
|
VRE's
Nominal
Ownership1
|
1Q
2024
NOI2
|
Total
Debt
|
VRE
Share
of 1Q
NOI
|
VRE
Share
of
Debt
|
|
Multifamily
|
|
|
|
|
|
|
|
|
Urby
Harborside
|
762
|
90.7 %
|
85.0 %
|
$5,318
|
$185,017
|
$4,520
|
$157,264
|
|
RiverTrace at Port
Imperial
|
316
|
94.5 %
|
22.5 %
|
2,273
|
82,000
|
511
|
18,450
|
|
Capstone at Port
Imperial
|
360
|
96.6 %
|
40.0 %
|
3,159
|
135,000
|
1,264
|
54,000
|
|
Riverpark at
Harrison
|
141
|
92.9 %
|
45.0 %
|
514
|
30,192
|
231
|
13,586
|
|
Metropolitan at 40
Park
|
130
|
89.9 %
|
25.0 %
|
711
|
34,100
|
178
|
8,525
|
|
Station
House
|
378
|
91.5 %
|
50.0 %
|
1,823
|
88,927
|
912
|
44,464
|
|
Total
Multifamily
|
2,087
|
92.5 %
|
55.0 %
|
$13,798
|
$555,236
|
$7,616
|
$296,289
|
|
Retail
|
|
|
|
|
|
|
|
|
Shops at 40
Park
|
N/A
|
69.0 %
|
25.0 %
|
285
|
6,067
|
71
|
1,517
|
|
Total
Retail
|
N/A
|
69.0 %
|
25.0 %
|
$285
|
$6,067
|
$71
|
$1,517
|
|
Total
UJV
|
|
|
|
$14,083
|
$561,303
|
$7,687
|
$297,806
|
|
Metropolitan
Lofts3
|
|
|
|
81
|
|
41
|
|
|
Total UJV
Adjusted
|
|
|
|
$14,164
|
|
$7,728
|
|
|
|
|
1
|
Amounts represent the
Company's share based on ownership percentage.
|
|
2
|
The sum of property
level revenue, straight line and ASC 805 adjustments; less:
operating expenses, real estate taxes and utilities.
|
|
3
|
Metropolitan Lofts sold
on January 12, 2024.
|
|
Annex 5: Debt
Profile Footnotes
|
|
|
|
1.
|
Effective rate of debt,
including deferred financing costs, comprised of the cost of
terminated treasury lock agreements (if any), debt initiation
costs, mark-to-market adjustment of acquired debt and other
transaction costs, as applicable.
|
|
2.
|
The loan on Portside at
East Pier is capped at a strike rate of 3.5%, expiring in September
2026.
|
|
3.
|
The loan on Upton is
capped at a strike rate of 1.0%, expiring in October
2024.
|
|
4.
|
The loan on 145 Front
Street is capped at a strike rate of 4.0%, expiring in June 2024.
Subsequent to quarter end, the Company noticed the lender of its
intention to prepay the loan in May 2024. After the loan is repaid,
the Company plans to contribute the asset to the collateral pool of
its new facility package.
|
|
5.
|
The loan on RiverHouse
9 is capped at a strike rate of 3.0%, expiring in June
2024.
|
|
6.
|
On April 22, 2024, the
Company terminated its existing facility comprised of a $115
million term loan and $60 million revolver. The Company
simultaneously secured a $500 million facility with a group of
eight lenders, comprised of a $300 million revolver and $200
million delayed-draw term loan. The facility has a three-year term
ending April 2027, with a one-year extension option. For more
details on the facility please refer to the terms outlined in the
first quarter 2024 10-Q.
|
|
|
|
See Debt
Profile.
|
|
Annex 6: Multifamily
Property Information
|
|
|
Location
|
Ownership
|
Apartments
|
Rentable
SF
|
Average
Size
|
Year
Complete
|
|
NJ
Waterfront
|
|
|
|
|
|
|
|
Haus25
|
Jersey City,
NJ
|
100.0 %
|
750
|
617,787
|
824
|
2022
|
|
Liberty
Towers
|
Jersey City,
NJ
|
100.0 %
|
648
|
602,210
|
929
|
2003
|
|
BLVD 401
|
Jersey City,
NJ
|
74.3 %
|
311
|
273,132
|
878
|
2016
|
|
BLVD 425
|
Jersey City,
NJ
|
74.3 %
|
412
|
369,515
|
897
|
2003
|
|
BLVD 475
|
Jersey City,
NJ
|
100.0 %
|
523
|
475,459
|
909
|
2011
|
|
Soho Lofts
|
Jersey City,
NJ
|
100.0 %
|
377
|
449,067
|
1,191
|
2017
|
|
Urby
Harborside
|
Jersey City,
NJ
|
85.0 %
|
762
|
474,476
|
623
|
2017
|
|
RiverHouse 9
|
Weehawken,
NJ
|
100.0 %
|
313
|
245,127
|
783
|
2021
|
|
RiverHouse
11
|
Weehawken,
NJ
|
100.0 %
|
295
|
250,591
|
849
|
2018
|
|
RiverTrace
|
West New York,
NJ
|
22.5 %
|
316
|
295,767
|
936
|
2014
|
|
Capstone
|
West New York,
NJ
|
40.0 %
|
360
|
337,991
|
939
|
2021
|
|
NJ Waterfront
Subtotal
|
|
85.0 %
|
5,067
|
4,391,122
|
867
|
|
|
Massachusetts
|
|
|
|
|
|
|
|
Portside at East
Pier
|
East Boston,
MA
|
100.0 %
|
181
|
156,091
|
862
|
2015
|
|
Portside 2 at East
Pier
|
East Boston,
MA
|
100.0 %
|
296
|
230,614
|
779
|
2018
|
|
145 Front at City
Square
|
Worcester,
MA
|
100.0 %
|
365
|
304,936
|
835
|
2018
|
|
The Emery
|
Revere, MA
|
100.0 %
|
326
|
273,140
|
838
|
2020
|
|
Massachusetts
Subtotal
|
|
100.0 %
|
1,168
|
964,781
|
826
|
|
|
Other
|
|
|
|
|
|
|
|
The Upton
|
Short Hills,
NJ
|
100.0 %
|
193
|
217,030
|
1,125
|
2021
|
|
The James
|
Park Ridge,
NJ
|
100.0 %
|
240
|
215,283
|
897
|
2021
|
|
Signature
Place
|
Morris Plains,
NJ
|
100.0 %
|
197
|
203,716
|
1,034
|
2018
|
|
Quarry Place at
Tuckahoe
|
Eastchester,
NY
|
100.0 %
|
108
|
105,551
|
977
|
2016
|
|
Riverpark at
Harrison
|
Harrison, NJ
|
45.0 %
|
141
|
124,774
|
885
|
2014
|
|
Metropolitan at 40
Park
|
Morristown,
NJ
|
25.0 %
|
130
|
124,237
|
956
|
2010
|
|
Station
House
|
Washington,
DC
|
50.0 %
|
378
|
290,348
|
768
|
2015
|
|
Other
Subtotal
|
|
73.8 %
|
1,387
|
1,280,939
|
924
|
|
|
Operating
Portfolio
|
|
85.2 %
|
7,622
|
6,636,842
|
871
|
|
|
Metropolitan
Lofts1
|
Morristown,
NJ
|
50.0 %
|
59
|
54,683
|
927
|
2018
|
|
Operating Portfolio
4Q23
|
|
85.0 %
|
7,681
|
6,691,525
|
871
|
|
|
|
See Multifamily
Operating Portfolio.
|
|
|
|
1
|
Metropolitan Lofts sold
on January 12, 2024.
|
|
Annex 7:
Noncontrolling Interests in Consolidated Joint
Ventures
|
|
|
Three Months Ended
March 31,
|
|
2024
|
2023
|
|
BLVD 425
|
$
80
|
$
17
|
|
BLVD 401
|
(552)
|
(558)
|
|
Port Imperial Garage
South
|
(26)
|
(45)
|
|
Port Imperial Retail
South
|
34
|
25
|
|
Other consolidated
joint ventures
|
(31)
|
(26)
|
|
Net losses in
noncontrolling interests
|
$
(495)
|
$
(587)
|
|
Depreciation in
noncontrolling interests
|
721
|
712
|
|
Funds from
operations - noncontrolling interest in consolidated joint
ventures
|
$
226
|
$
125
|
|
Interest expense in
noncontrolling interest in consolidated joint ventures
|
788
|
792
|
|
Net operating income
before debt service in consolidated joint ventures
|
$
1,014
|
$
917
|
|
|
See Adjusted EBITDA and
EBITDAre.
|
Non-GAAP Financial Definitions
NON-GAAP FINANCIAL MEASURES
Included in this financial package are Funds from Operations, or
FFO, Core Funds from Operations, or Core FFO, net operating income,
or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation,
and Amortization, or Adjusted EBITDA, and EBIDAre or Earnings
Before Interest, Taxes, Depreciation, Amortization and Rent Costs,
each a "non-GAAP financial measure," measuring Veris Residential,
Inc.'s historical or future financial performance that is different
from measures calculated and presented in accordance with generally
accepted accounting principles ("U.S. GAAP"), within the meaning of
the applicable Securities and Exchange Commission rules. Veris
Residential, Inc. believes these metrics can be a useful measure of
its performance which is further defined.
Adjusted Earnings Before Interest, Tax, Depreciation and
Amortization (Adjusted "EBITDA")
The Company defines Adjusted EBITDA as Core FFO, plus interest
expense, plus income tax expense, plus income (loss) in
noncontrolling interest in consolidated joint ventures, and plus
adjustments to reflect the entity's share of Adjusted EBITDA of
unconsolidated joint ventures. The Company presents Adjusted EBITDA
because the Company believes that Adjusted EBITDA, along with cash
flow from operating activities, investing activities and financing
activities, provides investors with an additional indicator of the
Company's ability to incur and service debt. Adjusted EBITDA should
not be considered as an alternative to net income (determined in
accordance with GAAP), as an indication of the Company's financial
performance, as an alternative to net cash flows from operating
activities (determined in accordance with GAAP), or as a measure of
the Company's liquidity.
Blended Net Rental Growth Rate or Blended Lease
Rate
Weighted average of the net effective change in rent (inclusive
of concessions) for a lease with a new resident or for a renewed
lease compared to the rent for the prior lease of the identical
apartment unit.
Core FFO and Adjusted FFO ("AFFO")
Core FFO is defined as FFO, as adjusted for certain items to
facilitate comparative measurement of the Company's performance
over time. Adjusted FFO ("AFFO") is defined as Core FFO less (i)
recurring tenant improvements, leasing commissions, and capital
expenditures, (ii) straight-line rents and amortization of acquired
above/below market leases, net, and (iii) other non-cash income,
plus (iv) other non-cash charges. Core FFO and Adjusted AFFO are
presented solely as supplemental disclosure that the Company's
management believes provides useful information to investors and
analysts of its results, after adjusting for certain items to
facilitate comparability of its performance from period to period.
Core FFO and Adjusted FFO are non-GAAP financial measures that are
not intended to represent cash flow and are not indicative of cash
flows provided by operating activities as determined in accordance
with GAAP. As there is not a generally accepted definition
established for Core FFO and Adjusted FFO, the Company's measures
of Core FFO may not be comparable to the Core FFO and Adjusted FFO
reported by other REITs. A reconciliation of net income per share
to Core FFO and Adjusted FFO in dollars and per share are included
in the financial tables accompanying this press release.
Earnings Before Interest, Tax, Depreciation, Amortization,
and Rent Costs ("EBITDAre")
The Company computes EBITDAre in accordance with standards
established by the National Association of Real Estate Investment
Trusts, or Nareit, which may not be comparable to EBITDAre reported
by other REITs that do not compute EBITDAre in accordance with the
Nareit definition, or that interpret the Nareit definition
differently than the Company does. The White Paper on EBITDAre
approved by the Board of Governors of Nareit in September 2017 defines EBITDAre as net income
(loss) (computed in accordance with Generally Accepted Accounting
Principles, or GAAP), plus interest expense, plus income tax
expense, plus depreciation and amortization, plus (minus) losses
and gains on the disposition of depreciated property, plus
impairment write-downs of depreciated property and investments in
unconsolidated joint ventures, plus adjustments to reflect the
entity's share of EBITDAre of unconsolidated joint ventures. The
Company presents EBITDAre, because the Company believes that
EBITDAre, along with cash flow from operating activities, investing
activities and financing activities, provides investors with an
additional indicator of the Company's ability to incur and service
debt. EBITDAre should not be considered as an alternative to net
income (determined in accordance with GAAP), as an indication of
the Company's financial performance, as an alternative to net cash
flows from operating activities (determined in accordance with
GAAP), or as a measure of the Company's liquidity.
Funds From Operations ("FFO")
FFO is defined as net income (loss) before noncontrolling
interests in Operating Partnership, computed in accordance with
U.S. GAAP, excluding gains or losses from depreciable rental
property transactions (including both acquisitions and
dispositions), and impairments related to depreciable rental
property, plus real estate-related depreciation and amortization.
The Company believes that FFO per share is helpful to investors as
one of several measures of the performance of an equity REIT. The
Company further believes that as FFO per share excludes the effect
of depreciation, gains (or losses) from property transactions and
impairments related to depreciable rental property (all of which
are based on historical costs which may be of limited relevance in
evaluating current performance), FFO per share can facilitate
comparison of operating performance between equity REITs.
FFO per share should not be considered as an alternative to net
income available to common shareholders per share as an indication
of the Company's performance or to cash flows as a measure of
liquidity. FFO per share presented herein is not necessarily
comparable to FFO per share presented by other real estate
companies due to the fact that not all real estate companies use
the same definition. However, the Company's FFO per share is
comparable to the FFO per share of real estate companies that use
the current definition of the National Association of Real Estate
Investment Trusts ("Nareit"). A reconciliation of net income per
share to FFO per share is included in the financial tables
accompanying this press release.
NOI and Same Store NOI
NOI represents total revenues less total operating expenses, as
reconciled to net income above. The Company considers NOI to be a
meaningful non-GAAP financial measure for making decisions and
assessing unlevered performance of its property types and markets,
as it relates to total return on assets, as opposed to levered
return on equity. As properties are considered for sale and
acquisition based on NOI estimates and projections, the Company
utilizes this measure to make investment decisions, as well as
compare the performance of its assets to those of its peers. NOI
should not be considered a substitute for net income, and the
Company's use of NOI may not be comparable to similarly titled
measures used by other companies. The Company calculates NOI before
any allocations to noncontrolling interests, as those interests do
not affect the overall performance of the individual assets being
measured and assessed.
Same Store NOI is presented for the same store portfolio, which
comprises all properties that were owned by the Company throughout
both of the reporting periods.
|
Company
Information
|
|
|
Company
Information
|
|
|
|
|
|
|
Corporate
Headquarters
|
Stock Exchange
Listing
|
Contact
Information
|
|
Veris Residential,
Inc.
|
New York Stock
Exchange
|
Veris Residential,
Inc.
|
|
210 Hudson St., Suite
400
|
|
Investor Relations
Department
|
|
Jersey City, New Jersey
07311
|
Trading
Symbol
|
210 Hudson St., Suite
400
|
|
(732)
590-1010
|
Common Shares:
VRE
|
Jersey City, New Jersey
07311
|
|
|
|
|
|
Anna
Malhari
|
|
|
Chief Operating
Officer
|
|
|
E-Mail:
amalhari@verisresidential.com
|
|
|
Web:
www.verisresidential.com
|
|
|
|
|
|
|
|
|
|
|
Executive
Officers
|
|
|
|
|
|
|
Mahbod
Nia
|
Amanda
Lombard
|
Taryn
Fielder
|
|
Chief Executive
Officer
|
Chief Financial
Officer
|
General Counsel and
Secretary
|
|
|
|
|
Anna
Malhari
|
Jeff
Turkanis
|
|
|
Chief Operating
Officer
|
EVP & Chief
Investment Officer
|
|
|
|
|
|
|
|
|
|
|
|
Equity Research
Coverage
|
|
|
|
|
|
|
Bank of America
Merrill Lynch
|
BTIG,
LLC
|
Citigroup
|
|
Josh
Dennerlein
|
Thomas
Catherwood
|
Nicholas
Joseph
|
|
|
|
|
Evercore
ISI
|
Green Street
Advisors
|
JP
Morgan
|
|
Steve Sakwa
|
John
Pawlowski
|
Anthony
Paolone
|
|
|
|
|
Truist
|
|
|
|
Michael R.
Lewis
|
|
|
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SOURCE Veris Residential, Inc.