Veris Residential, Inc. Reports First Quarter 2025 Results
PR Newswire
JERSEY CITY, N.J., April 23, 2025
JERSEY CITY, N.J., April 23, 2025 /PRNewswire/ -- Veris Residential, Inc. (NYSE: VRE) (the "Company"), a forward-thinking, Northeast-focused, Class A multifamily REIT, today reported results for the first quarter 2025.
Three Months Ended March 31,
2025 2024
Net Income (loss) per Diluted Share $(0.12) $(0.04)
Core FFO per Diluted Share $0.16 $0.14
Core AFFO per Diluted Share $0.17 $0.18
Dividend per Diluted Share $0.08 $0.0525
==================================== ============== ==============
FIRST QUARTER UPDATE
-- Year-over-year Same Store multifamily Blended Net Rental Growth Rate of
2.4%.
-- Year-over-year Same Store NOI growth of 3.2%.
-- Same Store occupancy of 94.0% (95.3% excluding Liberty Towers).
-- $45 million of non-strategic assets sold year to date, unwinding two
joint ventures, with an additional $34 million under binding contract.
-- Subsequent to quarter-end, purchased our partner's interest in the Jersey
City Urby joint venture, eliminating the Company's largest remaining
unconsolidated joint venture for $38.5 million, rebranding the property
to "Sable" and taking over management. The consolidation is expected to
create over $1 million in annualized synergies.
Mahbod Nia, Chief Executive Officer, commented, "During the first quarter, Veris Residential continued to achieve strong operational results while advancing the corporate plan announced earlier this year. With a combined $79 million of non-strategic asset sales either closed or under binding contract this year, we continue to unlock value embedded within the Company, despite elevated levels of market volatility.
"In parallel, we further simplified our portfolio, consolidating our interest in the Jersey City Urby, now Sable, assuming management of the property. Leveraging the Veris Residential platform, we expect the property to realize over $1 million of annualized synergies on a run-rate basis."
SAME STORE PORTFOLIO PERFORMANCE
March 31, 2025 December 31, 2024 Change
Same Store Units 7,621 7,621 -- %
Same Store Occupancy 94.0 % 93.9 % 0.1 %
Same Store Blended Rental Growth
Rate (Quarter) 2.4 % 0.5 % 1.9 %
Average Rent per Home $4,019 $4,033 (0.3) %
---------------------------------- -------------- ----------------- -------
The following table shows Same Store performance:
($ in 000s) Three Months Ended March 31,
2025 2024 %
Total Property Revenue $75,761 $73,978 2.4 %
Controllable Expenses 13,046 12,607 3.5 %
Non-Controllable Expenses 11,822 12,057 (1.9) %
Total Property Expenses 24,868 24,664 0.8 %
-------------------------- ---------- --------- ---------
Same Store NOI $50,893 $49,314 3.2 %
-------------------------- ---------- --------- ---------
FINANCE AND LIQUIDITY
Substantially all of the Company's debt is hedged or fixed with a weighted average effective interest rate of 4.96% and weighted average maturity of 2.8 years. Subsequent to quarter-end, the Company consolidated the mortgage on Sable and simultaneously modified it to suspend principal amortization through the remaining term.
Balance Sheet Metric ($ in 000s) March 31, 2025 December 31, 2024 Weighted Average Interest Rate 4.96 % 4.95 % Weighted Average Years to Maturity 2.8 3.1 ----------------------------------- -------------- ----------------- TTM Interest Coverage Ratio 1.7x 1.7x ----------------------------------- -------------- ----------------- Net Debt $1,643,411 $1,647,892 TTM EBITDA $144,191 $140,694 TTM Net Debt to EBITDA 11.4x 11.7x ----------------------------------- -------------- -----------------
As of April 21, 2025, the Company had liquidity of approximately $146 million, including funds available on the revolver and cash on hand.
TRANSACTION ACTIVITY
Year to date, the Company has closed on $45 million of non-strategic asset sales, including two unconsolidated joint ventures. An additional $34 million across two land parcels are under binding contract, with an expected close in the first half of 2025.
Name ($ in 000s) Date Location GAV 65 Livingston 1/24/2025 Roseland, NJ $7,300 Wall Land 4/3/2025 Wall Township, NJ 31,000 PI - North Building (two parcels) West New York, NJ and Metropolitan at 40 Park 4/21/2025 and Morristown, NJ 7,100 ----------------------------------- ---------- -------------------- ------- Total Assets Sold in 2025-to-date $45,400 ===================================================================== =======
JV INTEREST ACQUISITION
In April 2025, the Company acquired its joint venture partner's 15% interest in the entity that owns the property now known as "Sable" at Harborside for $38.5 million, including consideration for the tax credit and termination of the management contract. The acquisition was funded through proceeds from non-strategic asset sales.
Upon closing, the Company owned 100% interest in the property, and as a result, consolidated the asset and its corresponding property-level mortgage of $181.8 million. The property-level mortgage was subsequently modified to be an interest-only mortgage.
The Company anticipates over $1 million of annualized synergies as a result of integrating the asset into the Veris platform.
SHARE BUYBACK PROGRAM
The Company announced a $100 million share repurchase program in February. No shares have been repurchased year to date.
DIVIDEND
The Company paid a dividend of $0.08 per share on April 10, 2025, for shareholders of record as of March 31, 2025.
GUIDANCE
The Company is maintaining its guidance for 2025 in accordance with the following table:
2025 Guidance Ranges Low High Same Store Revenue Growth 2.1 % -- 2.7 % Same Store Expense Growth 2.6 % -- 3.0 % Same Store NOI Growth 1.7 % -- 2.7 % ---------------------------- ------- ------- Core FFO per Share Guidance Low High Net Loss per Share $(0.24) -- $(0.22) Depreciation per Share $0.85 -- $0.85 Core FFO per Share $0.61 -- $0.63 ---------------------------- ------- -------
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for Thursday, April 24, 2025, 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 2025 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 24, 2025.
A replay of the call will also be accessible Thursday, April 24, 2025, through Saturday, May 25, 2025, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13751071.
Copies of Veris Residential, Inc.'s first quarter 2025 Form 10-Q and first quarter 2025 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website under Financial Results.
In addition, once filed, these items will be available upon request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
ABOUT THE COMPANY
Veris Residential, Inc. is a forward-thinking real estate investment trust $(REIT)$ that primarily owns, operates, acquires and develops premier Class A multifamily properties in the Northeast. Our technology-enabled, vertically integrated operating platform delivers a contemporary living experience aligned with residents' preferences while positively impacting the communities we serve. We are guided by an experienced management team and Board of Directors, underpinned by leading corporate governance principles; a best-in-class approach to operations; and an inclusive culture based on 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 Annual 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-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings, available at https://investors.verisresidential.com/financial-information.
We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations, and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we may not anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.
Investors Media Mackenzie Rice Amanda Shpiner/Grace Cartwright Director, Investor Relations Gasthalter & Co. investors@verisresidential.com veris-residential@gasthalter.com
Additional details in Company Information.
Consolidated Balance Sheet
(in thousands) (unaudited)
March 31, 2025 December 31, 2024
ASSETS
-------------------------------------------
Rental property
-------------------------------------------
Land and leasehold interests $456,789 $458,946
Buildings and improvements 2,627,149 2,634,321
Tenant improvements 15,067 14,784
Furniture, fixtures and equipment 113,997 112,201
-------------- -----------------
3,213,002 3,220,252
Less -- accumulated depreciation and
amortization (451,540) (432,531)
-------------- -----------------
2,761,462 2,787,721
Real estate held for sale, net 9,138 7,291
-------------- -----------------
Net investment in rental property 2,770,600 2,795,012
-------------- -----------------
Cash and cash equivalents 7,596 7,251
Restricted cash 14,512 17,059
Investments in unconsolidated joint
ventures 111,607 111,301
Unbilled rents receivable, net 2,409 2,253
Deferred charges and other assets, net 43,680 48,476
Accounts receivable 1,169 1,375
-------------- -----------------
Total Assets $2,951,573 $2,982,727
============== =================
LIABILITIES & EQUITY
-------------------------------------------
Revolving credit facility and term loans 345,172 348,839
Mortgages, loans payable and other
obligations, net 1,322,036 1,323,474
Dividends and distributions payable 8,485 8,533
Accounts payable, accrued expenses and
other liabilities 40,648 42,744
Rents received in advance and security
deposits 11,529 11,512
Accrued interest payable 5,232 5,262
-------------- -----------------
Total Liabilities 1,733,102 1,740,364
Redeemable noncontrolling interests 9,294 9,294
Total Stockholders' Equity 1,080,486 1,099,391
Noncontrolling interests in subsidiaries:
Operating Partnership 99,814 102,588
Consolidated joint ventures 28,877 31,090
-------------- -----------------
Total Noncontrolling Interests in
Subsidiaries $128,691 $133,678
-------------- -----------------
Total Equity $1,209,177 $1,233,069
-------------- -----------------
Total Liabilities and Equity $2,951,573 $2,982,727
============== =================
Consolidated Statement of Operations
(In thousands, except per share amounts) (unaudited)
Three Months Ended March 31,
REVENUES 2025 2024
--------------------------------------------
Revenue from leases $61,965 $60,642
Management fees 718 922
Parking income 3,749 3,745
Other income 1,324 2,031
--------------- -------------
Total revenues 67,756 67,340
--------------- -------------
EXPENSES
--------------------------------------------
Real estate taxes 9,212 9,177
Utilities 2,807 2,271
Operating services 10,993 12,570
Property management 4,385 5,242
General and administrative 10,068 11,088
Transaction-related costs 308 516
Depreciation and amortization 21,253 20,117
Land and other impairments, net 3,200 --
--------------- -------------
Total expenses 62,226 60,981
--------------- -------------
OTHER (EXPENSE) INCOME
--------------------------------------------
Interest expense (22,960) (21,500)
Interest and other investment income 25 538
Equity in earnings (loss) of unconsolidated
joint ventures 3,842 254
Gain (loss) on disposition of developable
land (156) 784
Gain (loss) on sale of unconsolidated joint
venture interests -- 7,100
Other income (expense), net (105) 255
--------------- -------------
Total other (expense) income, net (19,354) (12,569)
--------------- -------------
Income (loss) from continuing operations
before income tax expense (13,824) (6,210)
Provision for income taxes (42) (59)
--------------- -------------
Income (loss) from continuing operations
after income tax expense (13,866) (6,269)
--------------- -------------
Income (loss) from discontinued operations 136 252
Realized gains (losses) and unrealized gains
(losses) on disposition of rental property
and impairments, net -- 1,548
--------------- -------------
Total discontinued operations, net 136 1,800
--------------- -------------
Net Income (loss) (13,730) (4,469)
Noncontrolling interest in consolidated
joint ventures 2,125 495
Noncontrolling interests in Operating
Partnership of loss (income) from
continuing operations 998 523
Noncontrolling interests in Operating
Partnership in discontinued operations (11) (155)
Redeemable noncontrolling interests (81) (297)
--------------- -------------
Net income (loss) available to common
shareholders $(10,699) $(3,903)
=============== =============
Basic earnings per common share:
Net income (loss) available to common
shareholders $(0.12) $(0.04)
Diluted earnings per common share:
Net income (loss) available to common
shareholders $(0.12) $(0.04)
Basic weighted average shares outstanding 93,059 92,275
Diluted weighted average shares
outstanding(1) 101,690 100,968
=============== =============
See Reconciliation to Net Income (Loss) to NOI for more details.
----------------------------------------------------------------
FFO, Core FFO and Core AFFO
(in thousands, except per share/unit amounts)
Three Months Ended March 31,
2025 2024
Net loss available to common
shareholders $ (10,699) $ (3,903)
Add/(Deduct):
---------------------------------
Noncontrolling interests in
Operating Partnership (998) (523)
Noncontrolling interests in
discontinued operations 11 155
Real estate-related depreciation
and amortization on continuing
operations(2) 23,445 22,631
Real estate-related depreciation
and amortization on discontinued
operations -- 668
Continuing operations: Loss
(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)
------------------- --------------------
FFO(3) $ 11,759 $ 10,380
=================== ====================
Add/(Deduct):
---------------------------------
Land and other impairments(4) 1,600 --
(Gain) loss on disposition of
developable land 156 (784)
Rebranding and
Severance/Compensation related
costs (G&A)(5) 168 1,637
Rebranding and
Severance/Compensation related
costs (Property Management)(6) 510 1,526
Amortization of derivative
premium(7) 1,084 904
Derivative mark to market
adjustment 255 --
Transaction related costs 308 516
------------------- --------------------
Core FFO $ 15,840 $ 14,179
Add/(Deduct):
---------------------------------
Straight-line rent adjustments(8) (146) 25
Amortization of market lease
intangibles, net (3) (7)
Amortization of lease inducements -- 7
Amortization of stock
compensation 3,366 3,727
Non-real estate depreciation and
amortization 150 210
Amortization of deferred
financing costs 1,707 1,242
Add/(Deduct):
---------------------------------
Non-incremental revenue
generating capital expenditures:
Building improvements (3,306) (1,040)
Tenant improvements and
leasing commissions(9) (33) (9)
------------------- --------------------
Core AFFO(3) $ 17,575 $ 18,334
=================== ====================
Funds from Operations per
share/unit-diluted $0.12 $0.10
Core Funds from Operations per
share/unit-diluted $0.16 $0.14
Core Adjusted Funds from
Operations per
share/unit-diluted $0.17 $0.18
Dividends declared per common
share $0.08 $0.0525
=================== ====================
See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.
---------------------------------------------------------------------------
See Consolidated Statements of Operations.
---------------------------------------------------------------------------
Adjusted EBITDA
($ in thousands) (unaudited)
Three Months Ended March 31,
2025 2024
Core FFO (calculated on a previous
page) $ 15,840 $ 14,179
Deduct:
-----------------------------------
Equity in (earnings) loss of
unconsolidated joint ventures (3,842) (459)
Equity in earnings share of
depreciation and amortization (2,343) (2,724)
Add:
-----------------------------------
Interest expense 22,960 21,500
Amortization of derivative premium (1,084) (904)
Derivative mark to market
adjustment (255) --
Recurring joint venture
distributions 5,801 1,701
Income (loss) in noncontrolling
interest in consolidated joint
ventures, net of land and other
impairments(1) (525) (495)
Redeemable noncontrolling interests 81 297
Income tax expense 43 82
------------------- ------------------
Adjusted EBITDA $ 36,675 $ 33,177
------------------- ------------------
See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.
---------------------------------------------------------------------------
See Non-GAAP Financial Definitions.
---------------------------------------------------------------------------
(1) See Annex 7 for breakout of Noncontrolling interests in consolidated
joint ventures.
-------------------------------------------------------------------------
Components of Net Asset Value
($ in thousands)
Real Estate Portfolio Other Assets
Operating Cash and Cash
Multifamily NOI(1) Total At Share Equivalents $7,596
-------------------- ---------- --------- ------------------- ----------
New Jersey
Waterfront $169,460 $145,268 Restricted Cash 14,512
-------------------- ---------- --------- ------------------- ----------
Massachusetts 26,220 26,220 Other Assets 47,258
-------------------- ---------- --------- ------------------- ----------
Subtotal Other
Other 31,920 24,566 Assets $69,366
-------------------- ---------- ---------
Total Multifamily
NOI $227,600 $196,054
-------------------- ---------- ---------
Liabilities and
Other
Commercial NOI(2) 2,380 1,949 Considerations
Total NOI $229,980 $198,003
------------------- ----------
Operating -
Consolidated Debt
at Share(3) $1,440,886
------------------- ----------
Operating -
Unconsolidated Debt
Non-Strategic Assets at Share(3) 129,442
------------------- ----------
Other Liabilities 65,894
------------------- ----------
Estimated Value of Land Under Revolving Credit
Binding Contract $34,250 Facility(3) 161,000
================================ --------- ------------------- ----------
Estimated Value of Remaining
Land 115,194 Term Loan 200,000
------------------- ----------
Total Non-Strategic Assets(4) $149,444 Preferred Units 9,294
------------------- ----------
Subtotal
Liabilities and
Other
Considerations $2,006,516
Outstanding
Shares(5)
Diluted Weighted
Average Shares
Outstanding for 1Q
2025 (in 000s) 102,066
------------------- ----------
(1) See Multifamily Operating Portfolio for more
details. The Real Estate Portfolio table is
reflective of the quarterly NOI annualized.
-------------------------------------------------
(2) See Commercial Assets and Developable Land for
more details.
-------------------------------------------------
(3) See Debt Summary and Maturity Schedule for pro
forma reconciliation.
-------------------------------------------------
(4) The land values are VRE`s share of value. Wall
Land, PI North - Buillding 6 and Riverbend I
parcels were removed from the totals as the sales
of these assets closed in April 2025. Estimated
value of land under binding contract reflects two
land parcels (PI South - Building 2 and 1 Water
Street) and the value VRE expects to receive upon
completion of the sale. For more details on unit
change see Commercial Assets and Developable
Land.
-------------------------------------------------
(5) Outstanding shares for the quarter ended March
31, 2025 is comprised of the following (in 000s):
93,059 weighted average common shares
outstanding, 8,631 weighted average Operating
Partnership common and vested LTIP units
outstanding, and 377 shares representing the
dilutive effect of stock-based compensation
awards.
See Non-GAAP Financial Definitions.
------------------------------------------------------------------------------
Multifamily Operating Portfolio
(in thousands, except Revenue per home)
Operating Highlights
Percentage Average Revenue
Occupied per Home NOI(1)
1Q 1Q Debt
Ownership Apartments 2025 4Q 2024 2025 4Q 2024 1Q 2025 4Q 2024 Balance
NJ Waterfront
--------------
Haus25 100.0 % 750 95.6 % 95.3 % $4,969 $4,986 $8,195 $7,803 $343,061
Liberty
Towers* 100.0 % 648 80.5 % 85.6 % 4,428 4,319 4,289 4,543 --
BLVD 401 74.3 % 311 95.0 % 95.7 % 4,272 4,309 2,431 2,428 115,010
BLVD 425 74.3 % 412 95.9 % 95.6 % 4,143 4,175 3,426 3,246 131,000
BLVD 475 100.0 % 523 96.4 % 94.4 % 4,235 4,201 4,197 4,100 163,844
Soho Lofts* 100.0 % 377 94.2 % 94.7 % 4,828 4,860 3,232 3,258 --
Sable (f.k.a.
Jersey City
Urby)(2) 85.0 % 762 94.5 % 94.4 % 4,223 4,322 5,879 6,455 181,810
RiverHouse 9
at Port
Imperial 100.0 % 313 96.4 % 95.4 % 4,493 4,516 2,715 2,674 110,000
RiverHouse 11
at Port
Imperial 100.0 % 295 95.8 % 96.3 % 4,391 4,405 2,527 2,479 100,000
RiverTrace 22.5 % 316 94.2 % 94.4 % 3,808 3,851 2,151 2,243 82,000
Capstone 40.0 % 360 95.6 % 95.1 % 4,603 4,590 3,323 3,243 135,000
--------- ---------- ------ ------- ------ ------- ------- ------- ----------
NJ Waterfront
Subtotal 85.0 % 5,067 93.4 % 93.8 % $4,430 $4,441 $42,365 $42,472 $1,361,725
Massachusetts
--------------
Portside at
East Pier 100.0 % 180 96.4 % 95.2 % $3,283 $3,265 $1,156 $1,207 $56,500
Portside 2 at
East Pier 100.0 % 296 95.8 % 93.9 % 3,502 3,425 2,115 2,070 95,022
145 Front at
City Square* 100.0 % 365 94.8 % 94.0 % 2,513 2,524 1,636 1,549 --
The Emery at
Overlook
Ridge 100.0 % 326 93.9 % 92.9 % 2,845 2,865 1,648 1,699 70,279
--------- ---------- ------ ------- ------ ------- ------- ------- ----------
Massachusetts
Subtotal 100.0 % 1,167 95.0 % 93.9 % $2,975 $2,962 $6,555 $6,525 $221,801
Other
--------------
The Upton 100.0 % 193 93.3 % 91.4 % $4,355 $4,411 $1,290 $1,238 $75,000
The James* 100.0 % 240 97.8 % 95.8 % 3,074 3,168 1,570 1,447 --
Signature
Place* 100.0 % 197 95.7 % 96.5 % 3,350 3,312 1,101 1,050 --
Quarry Place
at Tuckahoe 100.0 % 108 96.8 % 95.8 % 4,406 4,368 798 821 41,000
Riverpark at
Harrison 45.0 % 141 97.6 % 95.7 % 2,857 2,995 568 626 30,192
Metropolitan
at 40
Park(3) 25.0 % 130 94.0 % 93.7 % 3,800 3,741 798 771 34,100
Station House 50.0 % 378 93.2 % 91.8 % 2,909 2,989 1,855 2,005 86,812
--------- ---------- ------ ------- ------ ------- ------- ------- ----------
Other Subtotal 73.8 % 1,387 95.2 % 94.0 % $3,396 $3,442 $7,980 $7,958 $267,104
Operating
Portfolio(45) 85.2 % 7,621 94.0 % 93.9 % $4,019 $4,033 $56,900 $56,955 $1,850,630
(1) The sum of property level revenue, straight line
and ASC 805 adjustments; less: operating
expenses, real estate taxes and utilities.
(2) Subsequent to quarter-end, purchased joint
venture partner's interest in the Jersey City
property that was previously known as the "Urby"
and is now named "Sable".
(3) On April 21, 2025, the Company sold its interests
in the Metropolitan joint venture.
(4) Rental revenue associated with retail leases is
included in the NOI disclosure above.
(5) See Unconsolidated Joint Ventures and Annex 6:
Multifamily Operating Portfolio for more
details.
-------------------------------------------------
*Properties that are currently in the collateral pool for the Term Loan and
Revolving Credit Facility.
See Non-GAAP Financial Definitions.
------------------------------------------------------------------------------
Commercial Assets and Developable Land
($ in thousands)
Percentage Percentage NOI NOI
Rentable Leased Leased 1Q 4Q Debt
Commercial Location Ownership SF(1) 1Q 2025 4Q 2024 2025 2024 Balance
----------- ------------ --------- -------- ---------- ---------- ---- ----- --------
Port
Imperial
South - Weehawken,
Garage NJ 70.0 % Fn 1 N/A N/A $413 $537 $30,957
Port
Imperial
South - Weehawken,
Retail NJ 70.0 % 18,064 77.0 % 92.0 % 112 147 --
Port
Imperial
North - Weehawken,
Garage NJ 70.0 % Fn 1 N/A N/A (54) 25 --
Port
Imperial
North - Weehawken,
Retail NJ 100.0 % 8,400 100.0 % 100.0 % 89 (275) --
Riverwalk
at Port West New
Imperial York, NJ 100.0 % 29,923 80.0 % 80.0 % 35 61 --
Commercial Total 56,387 82.0 % 86.8 % $595 $495 $30,957
Shops at 40 Morristown,
Park(2) NJ N/A N/A N/A 69.0 % -- 68 --
Commercial Total with
Shops at 40 Park 82.0 % 78.4 % $595 $563 $30,957
Developable Land Parcel Units(3)
Total Units VRE Share
NJ Waterfront 1,522 1,400
Massachusetts 737 737
Other 459 459
------------------------------------------------------ ----------- ---------
Developable Land Parcel Units Total at April 22,
2025(4) 2,718 2,596
------------------------------------------------------ ----------- ---------
Less: land under binding contract 544 422
Developable Land Parcel Units Remaining 2,174 2,174
------------------------------------------------------ ----------- ---------
(1) Port Imperial South - Garage and Port Imperial North - Garage include
approximately 850 and 686 parking spaces, respectively.
(2) The Company`s joint venture sold the Shops at 40 Park retail property on
October 22, 2024.
(3) The Company has an additional 34,375 SF of developable retail space
within land developments that is not represented in this table.
(4) Includes the impact of the three land parcels that sold in April 2025.
Same Store Market Information(1)
Sequential Quarter Comparison
(NOI in thousands)
Blended Lease
NOI at Share Occupancy Tradeouts(2)
1Q 4Q 1Q
Apartments 1Q 2025 4Q 2024 Change 2025 2024 Change 2025 4Q 2024 Change
New Jersey
Waterfront 5,067 $37,673 $37,733 (0.2) % 93.4 % 93.8 % (0.3) % 2.4 % 1.2 % 1.2 %
Massachusetts 1,167 6,816 6,787 0.4 % 95.0 % 93.9 % 1.2 % 2.5 % -- % 2.5 %
Other(3) 1,387 6,404 6,299 1.7 % 95.2 % 94.0 % 1.1 % 2.6 % (1.7) % 4.3 %
Total 7,621 $50,893 $50,819 0.1 % 94.0 % 93.9 % 0.1 % 2.4 % 0.5 % 1.9 %
Year-over-Year First Quarter Comparison
(NOI in thousands)
Blended Lease
NOI at Share Occupancy Tradeouts(2)
1Q 1Q 1Q 1Q
Apartments 1Q 2025 1Q 2024 Change 2025 2024 Change 2025 2024 Change
New Jersey
Waterfront 5,067 $37,673 $36,698 2.7 % 93.4 % 94.2 % (0.8) % 2.4 % 4.1 % (1.7) %
Massachusetts 1,167 6,816 6,520 4.5 % 95.0 % 95.1 % (0.1) % 2.5 % 2.9 % (0.4) %
Other(3) 1,387 6,404 6,096 5.1 % 95.2 % 92.7 % 2.7 % 2.6 % 4.8 % (2.2) %
Total 7,621 $50,893 $49,314 3.2 % 94.0 % 94.1 % (0.1) % 2.4 % 4.6 % (2.2) %
Average Revenue per Home
Apartments 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024
New Jersey Waterfront 5,067 $4,430 $4,441 $4,371 $4,291 $4,274
Massachusetts 1,167 2,975 2,962 2,946 2,931 2,893
Other(3) 1,387 3,396 3,442 3,421 3,411 3,374
Total 7,621 $4,019 $4,033 $3,980 $3,923 $3,899
(1) All statistics are based off the current 7,621
Same Store pool.
(2) Blended lease tradeouts exclude properties not
managed by Veris.
(3) "Other" includes properties in Suburban NJ, New
York, and Washington, DC. See Multifamily
Operating Portfolio for breakout.
-------------------------------------------------
See Non-GAAP Financial Definitions.
------------------------------------------------------------------------------
Same Store Performance
($ in thousands)
Multifamily Same
Store(1)
Three Months Ended March 31, Sequential
2025 2024 Change % 1Q25 4Q24 Change %
Apartment Rental
Income $68,679 $66,701 $1,978 3.0 % $68,679 $69,149 $(470) (0.7) %
Parking/Other
Income 7,082 7,277 (195) (2.7) % 7,082 7,226 (144) (2.0) %
------- ------- ------- -------- ------- ------- ------- --------
Total Property
Revenues(2) $75,761 $73,978 $1,783 2.4 % $75,761 $76,375 $(614) (0.8) %
------- ------- ------- -------- ------- ------- ------- --------
Marketing &
Administration 2,145 2,138 7 0.3 % 2,145 2,618 (473) (18.1) %
Utilities 3,244 2,570 674 26.2 % 3,244 2,278 966 42.4 %
Payroll 4,291 4,295 (4) (0.1) % 4,291 4,525 (234) (5.2) %
Repairs &
Maintenance 3,366 3,604 (238) (6.6) % 3,366 4,486 (1,120) (25.0) %
------- ------- ------- -------- ------- ------- ------- --------
Controllable
Expenses $13,046 $12,607 $439 3.5 % $13,046 $13,907 $(861) (6.2) %
------- ------- ------- -------- ------- ------- ------- --------
Other Fixed Fees 725 712 13 1.8 % 725 719 6 0.8 %
Insurance 1,467 1,779 (312) (17.5) % 1,467 1,388 79 5.7 %
Real Estate Taxes 9,630 9,566 64 0.7 % 9,630 9,542 88 0.9 %
------- ------- ------- -------- ------- ------- ------- --------
Non-Controllable
Expenses $11,822 $12,057 $(235) (1.9) % $11,822 $11,649 $173 1.5 %
------- ------- ------- -------- ------- ------- ------- --------
Total Property
Expenses $24,868 $24,664 $204 0.8 % $24,868 $25,556 $(688) (2.7) %
------- ------- ------- -------- ------- ------- ------- --------
Same Store GAAP
NOI $50,893 $49,314 $1,579 3.2 % $50,893 $50,819 $74 0.1 %
======= ======= ======= ======== ======= ======= ======= ========
Same Store NOI
Margin 67.2 % 66.7 % 0.5 % 67.2 % 66.5 % 0.7 %
Total Units 7,621 7,621 7,621 7,621
% Ownership 85.2 % 85.2 % 85.2 % 85.2 %
% Occupied 94.0 % 94.1 % (0.1) % 94.0 % 93.9 % 0.1 %
(1) Values represent the Company's pro rata ownership of the operating
portfolio. All periods displayed have the same properties in the pool.
(2) Revenues reported based on Generally Accepted Accounting Principals or
"GAAP".
Debt Profile
($ in thousands)
Effective
Interest March 31, December Date of
Lender Rate(1) 2025 31, 2024 Maturity
Secured
Permanent
Loans
------------
Portside 2 New York Life
at East Insurance
Pier Co. 4.56 % 95,022 95,427 03/10/26
New York Life
Insurance
BLVD 425 Co. 4.17 % 131,000 131,000 08/10/26
New York Life
Insurance
BLVD 401 Co. 4.29 % 115,010 115,515 08/10/26
Portside at
East SOFR +
Pier(2) KKR 2.75% 56,500 56,500 09/07/26
Bank of New SOFR +
The Upton(3) York Mellon 1.58% 75,000 75,000 10/27/26
RiverHouse 9
at Port SOFR +
Imperial(4) JP Morgan 1.41% 110,000 110,000 06/21/27
Natixis Real
Quarry Place Estate
at Capital,
Tuckahoe LLC 4.48 % 41,000 41,000 08/05/27
The
Northwestern
Mutual Life
Insurance
BLVD 475 Co. 2.91 % 163,844 164,712 11/10/27
Haus25 Freddie Mac 6.04 % 343,061 343,061 09/01/28
The
Northwestern
RiverHouse Mutual Life
11 at Port Insurance
Imperial Co. 4.52 % 100,000 100,000 01/10/29
Port
Imperial American
Garage General Life
South & A/G PC 4.85 % 30,957 31,098 12/01/29
The Emery at
Overlook
Ridge(5) Flagstar Bank 3.21 % 70,279 70,653 01/01/31
Secured Permanent Loans
Outstanding $1,331,673 $1,333,966
Unamortized Deferred
Financing Costs (9,637) (10,492)
Secured Permanent Loans $1,322,036 $1,323,474
Secured RCF
& Term
Loans:
------------
Revolving
Credit Various SOFR +
Facility(6) Lenders 2.73% $148,000 $152,000 04/22/27
Various SOFR +
Term Loan(6) Lenders 2.73% 200,000 200,000 04/22/27
RCF & Term Loan Balances $348,000 $352,000
Unamortized Deferred
Financing Costs (2,828) (3,161)
Total RCF & Term Loan Debt $345,172 $348,839
Total Debt $1,667,208 $1,672,313
See to Debt Profile Footnotes.
------------------------------
Debt Summary and Maturity Schedule
($ in thousands)
Nearly all of the Company's total pro forma debt portfolio (consolidated and
unconsolidated) is hedged or fixed. The Company's total pro forma debt
portfolio has a weighted average interest rate of 4.96% and a weighted average
maturity of 2.8 years.
Weighted Average
% Weighted Average Maturity in
Balance of Total Interest Rate Years
Fixed Rate &
Hedged Debt
------------------
Fixed Rate &
Hedged Secured
Debt $1,679,673 100.0 % 5.05 % 2.51
Variable Rate Debt
------------------
Variable Rate Debt -- -- % -- % --
Totals / Weighted
Average $1,679,673 100.0 % 5.05 % 2.51
Unamortized
Deferred
Financing Costs (12,465)
Total Consolidated
Debt, net $1,667,208
Partners' Share (72,597)
VRE Share of Total
Consolidated
Debt, net(1) $1,594,611
Unconsolidated
Secured Debt
VRE Share $292,506 53.2 % 4.71 % 3.80
Partners' Share 257,408 46.8 % 4.71 % 3.80
Total
Unconsolidated
Secured Debt $549,914 100.0 % 4.71 % 3.80
Pro Forma Debt
Portfolio
Fixed Rate &
Hedged Secured
Debt $1,920,328 99.4 % 4.94 % 2.84
Variable Rate
Secured Debt 11,000 0.6 % 7.04 % 2.06
Total Pro Forma
Debt Portfolio $1,931,328 100.0 % 4.96 % 2.83
Debt Maturity Schedule as of March 31, 2025(23)
--------------------------------------------------------------------
2025 2026 2027 2028 2029 2030 2031
Secured Debt 473 315 343 131 70
Term Loan 200
Revolver 148
Unused Revolver Capacity 152
Pro Forma
Total Consolidated Debt, gross on 3/31/25 1,679,673
Partners' Share (72,597)
---------
VRE Share of Total Consolidated Debt, as of 3/31/25 1,607,076
---------
Net Revolver activity in April 13,000
Consolidation of debt associated with JV interest acquisition 181,810
---------
VRE Share of Total Consolidated Debt, as of 4/21/25 1,800,886
VRE Share of Unconsolidated Secured Debt, on 3/31/25 292,506
Consolidation of debt associated with JV interest acquisition (154,539)
Disposition of our interest in Metropolitan at 40 Park joint
venture (8,525)
---------
VRE Share of Total Unconsolidated Debt, on 4/21/25 129,442
Total Pro Forma Debt Portfolio 1,931,328
=========
(1) Minority interest share of consolidated debt is comprised of $33.7
million at BLVD 425, $29.6 million at BLVD 401 and $9.3 million at Port
Imperial South Garage.
(2) The Term Loan, Revolver and Unused Revolver Capacity are shown with the
one-year extension option utilized on the facilities. At quarter end, the
Term Loan was fully drawn and hedged with an interest-rate cap with a
strike rate of 3.5%, expiring July 2026. The Revolver is fully hedged
with an interest-rate cap of 3.5%, expiring in June 2025.
(3) The graphic reflects consolidated debt balances only. Dollars are shown
in millions.
Annex 1: Transaction Activity
($ in thousands except per SF)
Transaction Number of Gross Asset
Location Date Buildings Units Value
2025
dispositions-to-date
Land
65 Livingston Roseland, NJ 1/24/2025 N/A N/A $7,300
Wall
Township,
Wall Land NJ 4/3/2025 N/A N/A 31,000
PI North - Building 6 West New
and Riverbend I York, NJ 4/21/2025 N/A N/A 6,500
------------ -------- ---------------
Land
dispositions-to-date $44,800
Multifamily
Metropolitan at 40 Morristown,
Park NJ 4/21/2025 1 130 $600
------------ -------- ---------------
Multifamily
dispositions-to-date $600
---------------------- ---------------
Total
dispositions-to-date $45,400
====================== ===============
Land Under Binding
Contract
White
1 Water Street Plains, NY N/A N/A N/A
Weehawken,
PI South - Building 2 NJ N/A N/A N/A
2025
Acquisitions-to-Date
Multifamily
Sable (f.k.a Jersey Jersey City,
City Urby) NJ 4/21/2025 1 762 $38,500(1)
------------ -------- ---------------
Multifamily
acquisitions-to-date $38,500
(1) Represents gross value associated with the purchase of our partner`s
equity interest in the Jersey City property now known as Sable.
Annex 2: Reconciliation of Net Income (loss) to NOI (three months ended)
1Q 2025 4Q 2024
Total Total
Net Income (loss) $ (13,730) $ (14,023)
Deduct:
Management fees (718) (751)
Loss (income) from
discontinued operations (136) 1,015
Realized gains (losses) and
unrealized gains (losses)
on disposition of rental
property and impairment,
net -- (1,899)
Interest and other
investment income (25) (111)
Equity in (earnings) loss of
unconsolidated joint
ventures (3,842) (1,015)
(Gain) loss on disposition
of developable land 156 --
Gain on sale of
unconsolidated joint
venture interests -- 154
Other (income) expense, net 105 396
Add:
Property management 4,385 3,877
General and administrative 10,068 10,040
Transaction-related costs 308 159
Depreciation and
amortization 21,253 21,182
Interest expense 22,960 23,293
Provision for income taxes 42 2
Land and other impairments,
net 3,200 --
------------------------- -------------------------
Net operating income (NOI) $ 44,026 $ 42,319
------------------------- -------------------------
Summary of Consolidated
Multifamily NOI by Type
(unaudited): 1Q 2025 4Q 2024
-----------------------------
Total Consolidated
Multifamily - Operating
Portfolio $ 42,326 $ 41,612
Total Consolidated Commercial 595 495
------------------------- -------------------------
Total NOI from Consolidated
Properties (excl.
unconsolidated
JVs/subordinated interests) $ 42,921 $ 42,107
------------------------- -------------------------
NOI (loss) from services,
land/development/repurposing
& other assets 1,250 398
------------------------- -------------------------
Total Consolidated
Multifamily NOI $ 44,171 $ 42,505
------------------------- -------------------------
See Consolidated Statement of Operations.
-----------------------------------------
See Non-GAAP Financial Definitions.
-----------------------------------------
Annex 3: Consolidated Statement of Operations and Non-GAAP Financial Footnotes
FFO, Core FFO, AFFO, NOI, & Adjusted EBITDA
1. Calculated based on weighted average common shares outstanding, assuming
redemption of Operating Partnership common units into common shares 8,360
and 8,418 shares for the three months ended March 31, 2025 and 2024,
respectively, plus dilutive Common Stock Equivalents (i.e. stock
options).
2. Includes the Company's share from unconsolidated joint ventures, and
adjustments for noncontrolling interest of $2.3 million and $2.7 million
for the three months ended March 31, 2025 and 2024, respectively. Excludes
non-real estate-related depreciation and amortization of $0.2 million and
$0.2 million for each of the three months ended March 31, 2025 and 2024.
3. 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.
--------------------------------------------------------------------------
4. Represents the Company`s controlling interest portion of $3.2 million land
and other impairment charge.
5. Accounting for the impact of Severance/Compensation related costs, General
and Administrative expense was $9.9 million and $9.6 million for the three
months ended March 31, 2025 and 2024, respectively.
6. Accounting for the impact of Severance/Compensation related costs,
Property Management expense was $3.9 million and $3.7 million for the
three months ended March 31, 2025 and 2024, respectively.
7. Includes the Company's share from unconsolidated joint ventures of $12
thousand and $19 thousand for the three months ended March 31, 2025 and
2024, respectively.
8. Includes the Company's share from unconsolidated joint ventures of $10
thousand for each of the three months ended March 31, 2025 and 2024.
9. Excludes expenditures for tenant spaces in properties that have not been
owned by the Company for at least a year.
Back to Consolidated Statement of Operations.
------------------------------------------------------------------------------
Back to FFO, Core FFO and Core AFFO.
------------------------------------------------------------------------------
Back to Adjusted EBITDA.
------------------------------------------------------------------------------
Annex 4: Unconsolidated Joint Ventures
($ in thousands)
VRE
VRE's Share
Percentage Nominal 1Q 2025 Total of 1Q VRE Share
Property Units Occupied Ownership(1) NOI(2) Debt NOI of Debt
Multifamily
Sable (f.k.a
Jersey City
Urby)(3) 762 94.5 % 85.0 % $5,879 $181,810 $4,997 $154,539
RiverTrace at
Port
Imperial 316 94.2 % 22.5 % 2,151 82,000 484 18,450
Capstone at
Port
Imperial 360 95.6 % 40.0 % 3,323 135,000 1,329 54,000
Riverpark at
Harrison 141 97.6 % 45.0 % 568 30,192 256 13,586
Metropolitan
at 40
Park(4) 130 94.0 % 25.0 % 798 34,100 200 8,525
Station House 378 93.2 % 50.0 % 1,855 86,812 928 43,406
----- ---------- ------------ ------- -------- ------ ---------
Total
Multifamily 2,087 94.6 % 55.0 % $14,574 $549,914 $8,193 $292,506
----- ---------- ------------ ------- -------- ------ ---------
Total UJV 2,087 94.6 % 55.0 % $14,574 $549,914 $8,193 $292,506
===== ========== ============ ======= ======== ====== =========
(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) Subsequent to quarter-end, purchased joint venture partner's interest in
the Jersey City property that was previously known as the "Urby" and is
now named "Sable".
(4) On April 21, the Company sold its interests in the Metropolitan joint
venture.
Annex 5: Debt Profile Footnotes
1. Effective rate of debt, including deferred financing costs, comprised of
debt initiation costs, and other transaction costs, as applicable.
2. The loan on Portside at East Pier is hedged with a 3-year cap at a strike
rate of 3.5%, expiring in September 2026.
3. The loan on Upton is hedged with an interest rate cap at a strike rate of
3.5%, expiring in November 2026.
4. The loan on RiverHouse 9 is hedged with an interest rate cap at a strike
rate of 3.5%, expiring in July 2026.
5. Effective rate reflects the fixed rate period, which ends on January 1,
2026. After that period ends, the Company must make a one-time interest
rate election of either: (a) the floating-rate option, the sum of the
highest prime rate as published in the New York Times on each applicable
Rate Change Date plus 2.75% annually or (b) the fixed-rate option, the sum
of the Five Year Fixed Rate Advance of the Federal Home Loan Bank of New
York in effects as of the first business day of the month which is three
months prior to the Rate Change Date plus 3.00% annually.
6. The Company's facilities consist of a $300 million Revolver and $200
million delayed-draw Term Loan and are supported by a group of eight
lenders. The eight lenders consists of JP Morgan Chase and Bank of New
York Mellon as Joint Bookrunners; Bank of America Securities, Capital One,
Goldman Sachs Bank USA, and RBC Capital Markets as Joint Lead Arrangers;
and Associated Bank and Eastern Bank as participants. The facilities have
a three-year term ending April 22, 2027, with a one-year extension option.
The Term Loan was fully drawn and hedged with interest rate caps at strike
rates of 3.5%, expiring in July 2026. As of March 31, 2025, the balance
outstanding under the Revolver was $148 million, of which was fully hedged
with an interest rate cap at a strike rate of 3.5%, expiring in June
2025.
SOFR
Balance as Deferred 5 bps or
of March 31, Initial Financing reduction Updated SOFR All In
2025 Spread Costs KPI Spread Cap Rate
Secured
Revolving
Credit
Facility $148,000,000 2.10 % 0.68 % (0.05) % 2.73 % 3.50 % 6.23 %
Secured
Term
Loan $200,000,000 2.10 % 0.68 % (0.05) % 2.73 % 3.50 % 6.23 %
Back to Debt Profile.
--------------------------------------------------------------------------------
Annex 6: Multifamily Property Information
Rentable Average Year
Location Ownership Apartments SF(1) Size Complete
NJ Waterfront
--------------
Jersey City,
Haus25 NJ 100.0 % 750 617,787 824 2022
Jersey City,
Liberty Towers NJ 100.0 % 648 602,210 929 2003
Jersey City,
BLVD 401 NJ 74.3 % 311 273,132 878 2016
Jersey City,
BLVD 425 NJ 74.3 % 412 369,515 897 2003
Jersey City,
BLVD 475 NJ 100.0 % 523 475,459 909 2011
Jersey City,
Soho Lofts NJ 100.0 % 377 449,067 1,191 2017
Sable (f.k.a
Jersey City Jersey City,
Urby)(2) NJ 85.0 % 762 474,476 623 2017
RiverHouse 9
at Port
Imperial Weehawken, NJ 100.0 % 313 245,127 783 2021
RiverHouse 11
at Port
Imperial Weehawken, NJ 100.0 % 295 250,591 849 2018
West New
RiverTrace York, NJ 22.5 % 316 295,767 936 2014
West New
Capstone York, NJ 40.0 % 360 337,991 939 2021
--------- ---------- --------- ------- -----------
NJ Waterfront Subtotal 85.0 % 5,067 4,391,122 867
Massachusetts
--------------
Portside at East Boston,
East Pier MA 100.0 % 180 154,859 862 2015
Portside 2 at East Boston,
East Pier MA 100.0 % 296 230,614 779 2018
145 Front at
City Square Worcester, MA 100.0 % 365 304,936 835 2018
The Emery at
Overlook
Ridge Revere, MA 100.0 % 326 273,140 838 2020
--------- ---------- --------- ------- -----------
Massachusetts Subtotal 100.0 % 1,167 963,549 826
Other
--------------
Short Hills,
The Upton NJ 100.0 % 193 217,030 1,125 2021
Park Ridge,
The James NJ 100.0 % 240 215,283 897 2021
Signature Morris
Place Plains, NJ 100.0 % 197 203,716 1,034 2018
Quarry Place Eastchester,
at Tuckahoe NY 100.0 % 108 105,551 977 2016
Riverpark at
Harrison Harrison, NJ 45.0 % 141 124,774 885 2014
Metropolitan
at 40 Morristown,
Park(3) NJ 25.0 % 130 124,237 956 2010
Washington,
Station House DC 50.0 % 378 290,348 768 2015
--------- ---------- --------- ------- -----------
Other Subtotal 73.8 % 1,387 1,280,939 924
Operating Portfolio(4) 85.2 % 7,621 6,635,610 871
Back to Multifamily Operating Portfolio.
------------------------------------------------------------------------------
(1) Total sf outlined above excludes
approximately 191,838 sqft of ground
floor retail, of which 149,497 sf was
leased as of March 31, 2025.
(2) Subsequent to quarter-end,
purchased joint venture partner's
interest in the Jersey City property
that was previously known as the "Urby"
and is now named "Sable".
(3) On April 21, the Company sold the
Metropolitan joint venture.
(4) Rental revenue associated with retail
leases is included in the NOI
disclosure on the Multifamily Operating
Portfolio.
---------------------------------------
Annex 7: Noncontrolling Interests in Consolidated Joint Ventures
Three Months Ended March 31,
2025 2024
BLVD 425 $ 152 $ 80
BLVD 401 (552) (552)
Port Imperial Garage South (82) (26)
Port Imperial Retail South 8 34
Other consolidated joint ventures (1,651) (31)
----------------- ------------------
Net losses in noncontrolling
interests $ (2,125) $ (495)
----------------- ------------------
Depreciation in noncontrolling
interests 736 721
----------------- ------------------
Funds from operations -
noncontrolling interest in
consolidated joint ventures $ (1,389) $ 226
----------------- ------------------
Interest expense in noncontrolling
interest in consolidated joint
ventures 782 788
----------------- ------------------
Net operating income before debt
service in consolidated joint
ventures $ (607) $ 1,014
----------------- ------------------
Back to Adjusted EBITDA.
------------------------
Non-GAAP Financial Definitions
NON-GAAP FINANCIAL MEASURES
Included in this financial package are Funds from Operations, or FFO, Core Funds from Operations, or Core FFO, net operating income, or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or Adjusted EBITDA, each a "non-GAAP financial measure," measuring Veris Residential, Inc.'s historical or future financial performance that is different from measures calculated and presented in accordance with generally accepted accounting principles ("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.
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.
(MORE TO FOLLOW) Dow Jones Newswires
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