Veris Residential, Inc. Reports Fourth Quarter and Full Year 2024 Results
PR Newswire
JERSEY CITY, N.J., Feb. 24, 2025
JERSEY CITY, N.J., Feb. 24, 2025 /PRNewswire/ -- Veris Residential, Inc. (NYSE: VRE) (the "Company"), a forward-thinking, Northeast-focused, Class A multifamily REIT, today reported results for the fourth quarter and full year 2024.
Three Months
Ended December
31, Twelve Months Ended December 31,
2024 2023 2024 2023
Net Income (loss)
per Diluted
Share $(0.13) $(0.06) $(0.25) $(1.22)
Core FFO per
Diluted Share $0.11 $0.12 $0.60 $0.53
Core AFFO per
Diluted Share $0.13 $0.14 $0.71 $0.62
Dividend per
Diluted Share $0.08 $0.0525 $0.2625 $0.1025
----------------- ----------------- ----------- ----------- ----------
FOURTH QUARTER 2024 AND FULL YEAR HIGHLIGHTS
-- Net loss per share for 2024 was ($0.25), an increase of around $1
compared to full year 2023.
-- Grew 2024 Core FFO per share by 13% year over year, surpassing original
guidance.
-- Normalized Same Store NOI growth of 7.9% for the full year and 7.3% for
the fourth quarter.
-- Further improved Normalized Same Store NOI margin by 160 basis points to
66.8% for the full year and 200 basis points to 66.5% for the fourth
quarter compared to 2023.
-- Blended Net Rental Growth Rate of 4.0% for full year and 0.5% for the
quarter.
-- Refinanced $526 million of mortgages, leaving no remaining consolidated
debt maturities until 2026. All debt fixed or hedged.
-- Raised the dividend by approximately 60% on an annualized basis.
-- Completed $230 million of non-strategic asset sales during the year.
STRATEGIC UPDATE AND OUTLOOK
-- Identified pipeline of $300 to $500 million of assets, comprising the
majority of our land bank and select multifamily properties, to be sold
during the next 12-24 months, with proceeds used to fund up to a $100
million share repurchase program and the balance used to repay debt.
-- Targeting leverage below 9.0x Net Debt-to-EBITDA as these sales are
completed.
Mahbod Nia, Chief Executive Officer, commented, "Since the reconstitution of our Board and establishment of the Strategic Review Committee over four years ago, we have successfully transformed Veris Residential into a top-performing pure-play multifamily REIT with core, Class A properties, while staying abreast of the state of the transaction market and related capital flows, as well as capital markets, as we evaluate all available avenues to maximize value for our shareholders.
"Despite our continued operational outperformance, we recognize that the intrinsic value of Veris Residential is not accurately reflected in our share price today. We are keenly focused on closing this valuation gap through measures, including but not limited to, the crystallization of assets where we believe we can achieve strong pricing at or near to their intrinsic value, despite broader challenges in the investment market amidst the backdrop of heightened economic and geopolitical uncertainty.
"Accordingly, over the next 12-24 months, we plan to pursue $300 to $500 million of sales for assets that fit this profile given their size, location and buyer interest. We intend to use proceeds from these sales to fund a share repurchase program of up to $100 million--taking advantage of the dislocation that exists between our public trading value and our intrinsic value today on behalf of our shareholders--with the balance being used to repay debt, further de-levering the Company to below 9x Net Debt-to-EBITDA. Looking ahead, as we monetize these assets, we will maintain our ability to be nimble and to continue exploring any and all paths to further crystallize value for all shareholders."
SAME STORE PORTFOLIO PERFORMANCE
December 31, 2024 September 30, 2024 Change
Same Store Units 7,621 7,621 -- %
Same Store Occupancy 93.9 % 95.1 % (1.2) %
Same Store Blended Rental
Growth Rate (Quarter) 0.5 % 4.6 % (4.1) %
Average Rent per Home $4,033 $3,980 1.3 %
------------------------------ ----------------- ------------------ -------
As anticipated, due to the value-add renovation projects at Liberty Towers, Same Store occupancy ended the year at 93.9%, compared to 95.1% last quarter. Excluding Liberty Towers, occupancy for the Same Store portfolio would have been 94.6% in the fourth quarter, in line with the fourth quarter of 2023.
The following table shows Same Store performance:
Three Months Ended December Twelve Months Ended
($ in 000s) 31, December 31,
2024 2023 % 2024 2023 %
Total Property
Revenue $76,375 $73,371 4.1 % $300,679 $285,247 5.4 %
Controllable
Expenses 13,907 13,829 0.6 % 53,349 52,190 2.2 %
Non-Controllable
Expenses 11,649 12,199 (4.5) % 46,589 45,263 2.9 %
Total Property
Expenses 25,556 26,028 (1.8) % 99,938 97,453 2.5 %
----------------- -------- --------- --------- -------- -------- -------
Same Store NOI $50,819 $47,343 7.3 % $200,741 $187,794 6.9 %
----------------- -------- --------- --------- -------- -------- -------
Less: Real Estate
Tax Adjustments -- -- -- 1,689
----------------- -------- --------- --------- -------- -------- -------
Normalized Same
Store NOI $50,819 $47,343 7.3 % $200,741 $186,105 7.9 %
----------------- -------- --------- --------- -------- -------- -------
In October, the Company's joint venture sold the Shops at 40 Park retail property. As a result, it has been removed from the Same Store pool.
FINANCING AND LIQUIDITY
All of the Company's debt is hedged or fixed. The Company's total debt portfolio has a weighted average effective interest rate of 4.95% and weighted average maturity of 3.1 years.
Balance Sheet Metric ($ in 000s) December 31, 2024 September 30, 2024 Weighted Average Interest Rate 4.95 % 4.96 % Weighted Average Years to Maturity 3.1 3.3 ----------------------------------- ----------------- ------------------ TTM Interest Coverage Ratio 1.7x 1.7x ----------------------------------- ----------------- ------------------ Net Debt $1,647,892 $1,645,447 TTM EBITDA $140,694 $140,682 TTM Net Debt to EBITDA 11.7x 11.7x ----------------------------------- ----------------- ------------------
As of February 21, 2025, the Company had liquidity of $158 million in addition to $45 million of land sales under binding contract to sell. All of the Company's debt portfolio is fixed or hedged. The Company has no consolidated debt maturities until 2026.
In the fourth quarter, the Company exercised one-year extension options relating to mortgages on two unconsolidated joint ventures, Capstone and Metropolitan at 40 Park, now maturing in the fourth quarter of 2025.
SALES
In 2024, the Company completed $223 million of non-strategic sales, releasing approximately $175 million in net proceeds. Subsequent to year end, the 65 Livingston land parcel sold for $7 million. The proceeds from these sales were used to repay debt.
Two land parcels, 1 Water and Wall Land, are under binding contract for approximately $45 million.
DIVIDEND
The Company paid a dividend of $0.08 per share on January 10, 2025, for shareholders of record as of December 31, 2024.
SHARE REPURCHASE PROGRAM
The Board of Directors approved a $100 million share repurchase program over the next two years, with share repurchases under the new program authorized to begin on March 26, 2025.
Repurchases may be made from time to time in the open market, private purchases, through forward, derivative, alternative, accelerated repurchase or automatic purchase transactions, or otherwise. The share repurchase program does not, however, obligate the Company to acquire any particular amount of shares and repurchases may be suspended or terminated at any time at the Company's discretion. The amount and timing of repurchases are subject to a variety of factors, including liquidity, share price, market conditions and legal requirements.
GUIDANCE
The Company's 2025 Revenue Guidance range reflects continued strength in rental growth, albeit at a more moderate pace following the Company's extremely strong performance during the past three years.
Guidance provided includes the impact of assets currently under binding contract, with these proceeds utilized to repay debt.
The Company has identified a disposition pipeline of $300 to $500 million of assets, comprising the majority of its land bank, including approximately $45 million of land under binding contract, and select multifamily assets. Management expects that it may take 12 to 24 months to complete the sales and intends to use the proceeds to fund a share repurchase program of up to $100 million, taking advantage of the dislocation that exists between our public trading value and our intrinsic value today on behalf of our shareholders, with the balance being used to repay debt, further de-levering the Company to below 9.0x Net Debt-to-EBITDA .
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 Tuesday, February 25, 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 fourth 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 Tuesday, February 25, 2024.
A replay of the call will also be accessible Tuesday, February 25, 2025, through Tuesday, March 25, 2025, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13751046.
Copies of Veris Residential, Inc.'s 2024 Form 10-K and fourth quarter 2024 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website under Financial Results.
In addition, once filed, these items will be available upon request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, 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-K, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-K and the Public Filings, 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)
December 31, 2024 December 31, 2023
ASSETS
----------------------------------------
Rental property
----------------------------------------
Land and leasehold interests $458,946 $474,499
Buildings and improvements 2,634,321 2,782,468
Tenant improvements 14,784 30,908
Furniture, fixtures and equipment 112,201 103,613
----------------- -----------------
3,220,252 3,391,488
Less -- accumulated depreciation and
amortization (432,531) (443,781)
----------------- -----------------
2,787,721 2,947,707
Real estate held for sale, net 7,291 58,608
----------------- -----------------
Net investment in rental property 2,795,012 3,006,315
----------------- -----------------
Cash and cash equivalents 7,251 28,007
Restricted cash 17,059 26,572
Investments in unconsolidated joint
ventures 111,301 117,954
Unbilled rents receivable, net 2,253 5,500
Deferred charges and other assets, net 48,476 53,956
Accounts receivable 1,375 2,742
----------------- -----------------
Total Assets $2,982,727 $3,241,046
================= =================
LIABILITIES & EQUITY
----------------------------------------
Revolving credit facility and term loans 348,839 --
Mortgages, loans payable and other
obligations, net 1,323,474 1,853,897
Dividends and distributions payable 8,533 5,540
Accounts payable, accrued expenses and
other liabilities 42,744 55,492
Rents received in advance and security
deposits 11,512 14,985
Accrued interest payable 5,262 6,580
----------------- -----------------
Total Liabilities 1,740,364 1,936,494
Redeemable noncontrolling interests 9,294 24,999
Total Stockholders' Equity 1,099,391 1,137,478
Noncontrolling interests in
subsidiaries:
Operating Partnership 102,588 107,206
Consolidated joint ventures 31,090 34,869
----------------- -----------------
Total Noncontrolling Interests in
Subsidiaries $133,678 $142,075
----------------- -----------------
Total Equity $1,233,069 $1,279,553
----------------- -----------------
Total Liabilities and Equity $2,982,727 $3,241,046
================= =================
Consolidated Statement of Operations
(in thousands, except per share amounts) (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
REVENUES 2024 2023 2024 2023
--------------------
Revenue from leases $61,904 $60,896 $245,690 $235,117
Management fees 751 1,084 3,338 3,868
Parking income 3,893 3,824 15,463 15,498
Other income 1,535 1,216 6,583 5,812
----------- ------------ ----------- --------------
Total revenues 68,083 67,020 271,074 260,295
----------- ------------ ----------- --------------
EXPENSES
--------------------
Real estate taxes 10,173 9,529 37,424 34,687
Utilities 1,955 1,836 8,151 7,700
Operating services 12,885 13,570 48,239 50,769
Property management 3,877 4,323 17,247 14,188
General and
administrative 10,040 9,992 39,059 44,443
Transaction-related
costs 159 576 1,565 7,627
Depreciation and
amortization 21,182 21,227 82,774 86,235
Land and other
impairments, net -- 5,928 2,619 9,324
----------- ------------ ----------- --------------
Total expenses 60,271 66,981 237,078 254,973
----------- ------------ ----------- --------------
OTHER (EXPENSE)
INCOME
--------------------
Interest expense (23,293) (21,933) (87,976) (89,355)
Interest cost of
mandatorily
redeemable
noncontrolling
interests -- -- -- (49,782)
Interest and other
investment income 111 232 2,366 5,515
Equity in earnings
(loss) of
unconsolidated
joint ventures 1,015 260 3,934 3,102
Realized gains
(losses) and
unrealized gains
(losses) on
disposition of
rental property and
impairments, net -- (3) -- --
Gain (loss) on
disposition of
developable land -- 7,090 11,515 7,068
Gain (loss) on sale
of unconsolidated
joint venture
interests (154) -- 6,946 --
Gain (loss) from
extinguishment of
debt, net -- (1,903) (777) (5,606)
Other income
(expense), net (396) 77 (701) 2,871
----------- ------------ ----------- --------------
Total other
(expense) income,
net (22,717) (16,180) (64,693) (126,187)
----------- ------------ ----------- --------------
Income (loss) from
continuing
operations before
income tax expense (14,905) (16,141) (30,697) (120,865)
Provision for income
taxes (2) (199) (276) (492)
----------- ------------ ----------- --------------
Income (loss) from
continuing
operations after
income tax expense (14,907) (16,340) (30,973) (121,357)
----------- ------------ ----------- --------------
Income (loss) from
discontinued
operations (1,015) (33,377) 862 (32,686)
Realized gains
(losses) and
unrealized gains
(losses) on
disposition of
rental property and
impairments, net 1,899 43,971 3,447 41,682
----------- ------------ ----------- --------------
Total discontinued
operations, net 884 10,594 4,309 8,996
----------- ------------ ----------- --------------
Net Income (loss) (14,023) (5,746) (26,664) (112,361)
Noncontrolling
interest in
consolidated joint
ventures 495 504 1,924 2,319
Noncontrolling
interests in
Operating
Partnership of loss
(income) from
continuing
operations 1,238 1,389 2,531 11,174
Noncontrolling
interests in
Operating
Partnership in
discontinued
operations (76) (913) (371) (779)
Redeemable
noncontrolling
interests (81) (285) $(540.SI)$ (7,618)
----------- ------------ ----------- --------------
Net income (loss)
available to common
shareholders $(12,447) $(5,051) $(23,120) $(107,265)
=========== ============ =========== ==============
Basic earnings per
common share:
Net income (loss)
available to common
shareholders $(0.13) $(0.06) $(0.25) $(1.22)
Diluted earnings per
common share:
Net income (loss)
available to common
shareholders $(0.13) $(0.06) $(0.25) $(1.22)
Basic weighted
average shares
outstanding 92,934 92,240 92,695 91,883
Diluted weighted
average shares
outstanding(1) 101,611 100,936 101,381 100,812
=========== ============ =========== ==============
See Reconciliation to Net Income (Loss) to NOI for more detail.
---------------------------------------------------------------
FFO, Core FFO and Core AFFO
(in thousands, except per share/unit amounts)
Three Months Ended December 31, Twelve Months Ended December 31,
2024 2023 2024 2023
Net loss available to
common shareholders $ (12,447) $ (5,051) $ (23,120) $ (107,265)
Add/(Deduct):
-------------------------
Noncontrolling interests
in Operating
Partnership (1,238) (1,389) (2,531) (11,174)
Noncontrolling interests
in discontinued
operations 76 913 371 779
Real estate-related
depreciation and
amortization on
continuing
operations(2) 23,617 23,609 92,164 95,695
Real estate-related
depreciation and
amortization on
discontinued operations (33) 1,819 635 12,689
Property impairments on
discontinued operations -- 32,516 -- 32,516
Continuing operations:
(Gain) loss on sale from
unconsolidated joint
ventures 154 -- (6,946) --
Continuing operations:
Realized (gains) losses
and unrealized (gains)
losses on disposition of
rental property, net -- 3 -- --
Discontinued operations:
Realized (gains) losses
and unrealized (gains)
losses on disposition of
rental property, net -- (4,700) (1,548) (2,411)
---------------- ------------------ -------------- -----------------
FFO(3) $ 10,129 $ 47,720 $ 59,025 $ 20,829
================ ================== ============== =================
Add/(Deduct):
-------------------------
(Gain) loss from
extinguishment of debt,
net -- 1,903 777 5,618
Land and other
impairments -- 5,928 2,619 9,324
(Gain) loss on
disposition of
developable land (1,899) (46,361) (13,414) (46,339)
Rebranding and
Severance/Compensation
related costs (G&A)(4) 32 129 2,111 7,987
Rebranding and
Severance/Compensation
related costs (Property
Management)(5) 766 829 3,156 1,128
Severance/Compensation
related costs (Operating
Expenses) -- -- -- 649
Rockpoint buyout premium -- -- -- 34,775
Redemption value
adjustments to
mandatorily redeemable
noncontrolling
interests -- -- -- 7,641
Amortization of
derivative premium(6) 1,461 902 4,554 4,654
Derivative mark to market
adjustment 186 -- 202 --
Transaction related costs 578 576 1,984 7,627
---------------- ------------------ -------------- -----------------
Core FFO $ 11,253 $ 11,626 $ 61,014 $ 53,893
Add/(Deduct):
-------------------------
Straight-line rent
adjustments(7) (107) 81 (790) 502
Amortization of market
lease intangibles, net (5) -- (30) (80)
Amortization of lease
inducements -- 5 7 57
Amortization of stock
compensation 3,013 3,270 12,992 12,995
Non-real estate
depreciation and
amortization 169 216 763 1,028
Amortization of deferred
financing costs 1,639 1,255 6,125 4,440
Add/(Deduct):
-------------------------
Non-incremental revenue
generating capital
expenditures:
Building improvements (2,784) (1,670) (7,674) (8,348)
Tenant improvements
and leasing
commissions(8) (94) (888) (236) (1,994)
---------------- ------------------ -------------- -----------------
Core AFFO(3) $ 13,084 $ 13,895 $ 72,171 $ 62,493
================ ================== ============== =================
Funds from Operations per
share/unit-diluted $0.10 $0.47 $0.58 $0.21
Core Funds from
Operations per
share/unit-diluted $0.11 $0.12 $0.60 $0.53
Core Adjusted Funds from
Operations per
share/unit-diluted $0.13 $0.14 $0.71 $0.62
Dividends declared per
common share $0.08 $0.0525 $0.2625 $0.1025
================ ================== ============== =================
See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.
---------------------------------------------------------------------------
See Consolidated Statements of Operations.
---------------------------------------------------------------------------
Adjusted EBITDA
($ in thousands) (unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2024 2023 2024 2023
Core FFO
(calculated on
a previous
page) $ 11,253 $ 11,626 $ 61,014 $ 53,893
Deduct:
---------------
Equity in
(earnings)
loss of
unconsolidated
joint
ventures (1,015) (260) (4,196) (3,102)
Equity in
earnings share
of
depreciation
and
amortization (2,605) (2,597) (10,154) (10,337)
Add:
---------------
Interest
expense 23,294 21,933 87,977 90,177
Amortization of
derivative
premium (1,461) (902) (4,554) (4,654)
Derivative mark
to market
adjustment (186) -- (202) --
Recurring joint
venture
distributions 3,641 2,718 11,893 11,700
Noncontrolling
interests in
consolidated
joint
ventures(1) (495) $(504.SI)$ (1,924) (2,319)
Interest cost
for
mandatorily
redeemable
noncontrolling
interests -- -- -- 7,366
Redeemable
noncontrolling
interests 81 285 540 7,618
Income tax
expense 3 199 300 492
--------------- ---------------- ---------------- ----------------
Adjusted EBITDA $ 32,510 $ 32,498 $ 140,694 $ 150,834
--------------- ---------------- ---------------- ----------------
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(2) $6,493
-------------------- --------- --------- -------------------- ----------
New Jersey
Waterfront $169,888 $145,446 Restricted Cash 17,059
-------------------- --------- --------- -------------------- ----------
Massachusetts 26,100 26,100 Other Assets 52,104
-------------------- --------- --------- -------------------- ----------
Subtotal Other
Other 31,832 24,132 Assets $75,656
-------------------- --------- ---------
Total Multifamily
NOI $227,820 $195,678
-------------------- --------- ---------
Liabilities and
Other
Commercial NOI(3) 1,980 1,159 Considerations
-------------------- --------- ---------
Add Back:
Non-recurring NOI
Impact(4) 1,368 1,368
-------------------- ----------
Operating -
Consolidated Debt at
Total NOI $231,168 $198,205 Share $1,261,196
-------------------- ----------
Operating -
Unconsolidated Debt
at Share 293,450
-------------------- ----------
Non-Strategic Assets Other Liabilities 68,051
-------------------- ----------
Revolving Credit
Facility(5) 145,000
-------------------- --------- --------- -------------------- ----------
Estimated Value of
Remaining Land $134,819 Term Loan 200,000
-------------------- --------- --------- -------------------- ----------
Estimated Value of Land Under
Binding Contract for Sale 45,250 Preferred Units 9,294
------------------------------- -------------------- ----------
Subtotal Liabilities
and Other
Total Non-Strategic Assets(6) $180,069 Considerations $1,976,991
Outstanding
Shares(7)
Diluted Weighted
Average Shares
Outstanding for 4Q
2024 (in 000s) 102,587
-------------------- ----------
See Non-GAAP
Financial
Definitions.
--------------------
(1) See Multifamily Operating Portfolio for more details. The Real Estate
Portfolio table is reflective of the quarterly NOI annualized.
(2) Reflects the cash balance on February 21, 2025. Cash balance at quarter
end was $7.3 million.
(3) See Commercial Assets and Developable Land for more details.
(4) In the fourth quarter, the Company had lower than normal NOI value,
driven primarily by two non-recurring costs.
(5) Revolver balance on 12/31 was $152 million, subsequent to the sale of 65
Livingston, the Company repaid $7 million of the Revolver bringing the
balance to $145 million. See Debt Summary and Maturity Schedule for more
details.
(6) The land values are VRE`s share of value. 65 Livingston was removed from
the total as it closed on January 24, 2025. Land under binding contract
reflects two land parcels (Wall Land 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.
(7) Outstanding shares for the quarter ended December 31, 2024 is comprised
of the following (in 000s): 92,934 weighted average common shares
outstanding, 8,677 weighted average Operating Partnership common and
vested LTIP units outstanding, and 976 shares representing the dilutive
effect of stock-based compensation awards.
Multifamily Operating Portfolio
(in thousands, except Revenue per home)
Operating Highlights
Percentage Average Revenue
Occupied per Home NOI
4Q 4Q Debt
Ownership Apartments 2024 3Q 2024 2024 3Q 2024 4Q 2024 3Q 2024 Balance
NJ Waterfront
--------------
Haus25 100.0 % 750 95.3 % 95.8 % $4,986 $4,950 $7,803 $7,931 $343,061
Liberty
Towers* 100.0 % 648 85.6 % 91.7 % 4,319 4,237 4,543 5,506 --
BLVD 401 74.3 % 311 95.7 % 94.7 % 4,309 4,304 2,428 2,592 115,515
BLVD 425 74.3 % 412 95.6 % 95.2 % 4,175 4,147 3,246 3,413 131,000
BLVD 475 100.0 % 523 94.4 % 96.8 % 4,201 4,241 4,100 4,319 164,712
Soho Lofts* 100.0 % 377 94.7 % 95.6 % 4,860 4,832 3,258 3,375 --
Urby
Harborside 85.0 % 762 94.4 % 96.5 % 4,322 4,094 6,455 5,866 182,604
RiverHouse 9
at Port
Imperial 100.0 % 313 95.4 % 96.2 % 4,516 4,392 2,674 2,661 110,000
RiverHouse 11
at Port
Imperial 100.0 % 295 96.3 % 96.3 % 4,405 4,363 2,479 2,500 100,000
RiverTrace 22.5 % 316 94.4 % 95.3 % 3,851 3,829 2,243 2,113 82,000
Capstone 40.0 % 360 95.1 % 94.4 % 4,590 4,471 3,243 3,154 135,000
--------- ---------- ------ ------- ------ ------- ------- ------- ----------
NJ Waterfront
Subtotal 85.0 % 5,067 93.8 % 95.3 % $4,441 $4,371 $42,472 $43,430 $1,363,892
Massachusetts
--------------
Portside at
East Pier 100.0 % 180 95.2 % 95.9 % $3,265 $3,269 $1,207 $1,245 $56,500
Portside 2 at
East Pier 100.0 % 296 93.9 % 94.8 % 3,425 3,446 2,070 2,108 95,427
145 Front at
City Square* 100.0 % 365 94.0 % 95.1 % 2,524 2,475 1,549 1,467 --
The Emery at
Overlook
Ridge 100.0 % 326 92.9 % 94.0 % 2,865 2,840 1,699 1,688 70,653
--------- ---------- ------ ------- ------ ------- ------- ------- ----------
Massachusetts
Subtotal 100.0 % 1,167 93.9 % 94.8 % $2,962 $2,946 $6,525 $6,508 $222,580
Other
--------------
The Upton 100.0 % 193 91.4 % 88.8 % $4,411 $4,525 $1,238 $1,392 $75,000
The James* 100.0 % 240 95.8 % 93.8 % 3,168 3,148 1,447 1,535 --
Signature
Place* 100.0 % 197 96.5 % 96.1 % 3,312 3,201 1,050 1,022 --
Quarry Place
at Tuckahoe 100.0 % 108 95.8 % 98.1 % 4,368 4,293 821 723 41,000
Riverpark at
Harrison 45.0 % 141 95.7 % 97.2 % 2,995 2,823 626 570 30,192
Metropolitan
at 40 Park 25.0 % 130 93.7 % 95.6 % 3,741 3,722 771 731 34,100
Station House 50.0 % 378 91.8 % 94.7 % 2,989 3,017 2,005 1,705 87,350
--------- ---------- ------ ------- ------ ------- ------- ------- ----------
Other Subtotal 73.8 % 1,387 94.0 % 94.5 % $3,442 $3,421 $7,958 $7,678 $267,642
Operating
Portfolio(12) 85.2 % 7,621 93.9 % 95.1 % $4,033 $3,980 $56,955 $57,616 $1,854,114
See Non-GAAP Financial Definitions.
-----------------------------------
(1) Rental revenue associated with retail leases is
included in the NOI disclosure above.
(2) See Unconsolidated Joint Ventures and Annex 6:
Multifamily Operating Portfolio for more
details.
*Properties that are currently in the collateral pool for the Term Loan and
Revolving Credit Facility.
Commercial Assets and Developable Land
($ in thousands)
Percentage Percentage NOI NOI
Rentable Leased Leased 4Q 3Q Debt
Commercial Location Ownership SF(1) 4Q 2024 3Q 2024 2024 2024 Balance
----------- ------------ --------- -------- ---------- ---------- ----- ---- --------
Port
Imperial
South - Weehawken,
Garage NJ 70.0 % Fn 1 N/A N/A $537 $590 $31,098
Port
Imperial
South - Weehawken,
Retail NJ 70.0 % 18,064 92.0 % 92.0 % 147 115 --
Port
Imperial
North - Weehawken,
Garage NJ 70.0 % Fn 1 N/A N/A 25 12 --
Port
Imperial
North - Weehawken,
Retail NJ 100.0 % 8,400 100.0 % 100.0 % (275) 46 --
Riverwalk
at Port West New
Imperial York, NJ 100.0 % 29,923 80.0 % 80.0 % 61 164 --
Commercial Total 85.1 % 56,387 86.8 % 86.8 % $495 $927 $31,098
Shops at 40 Morristown,
Park(2) NJ 25.0 % 50,973 69.0 % 69.0 % 68 (46) --
Commercial Total with
Shops at 40 Park 80.9 % 107,360 78.4 % 78.4 % $563 $881 $31,098
Developable Land Parcel Units(3)
Total Units VRE Share
NJ Waterfront 2,351 1,565
Massachusetts 849 849
Other 939 939
------------------------------------------------------ ----------- ---------
Developable Land Parcel Units Total at December 31,
2024 4,139 3,353
------------------------------------------------------ ----------- ---------
Less: One land parcel rezoned from hotel to retail use 112 112
Less: 65 Livingston sold in January 2025 252 252
Less: Two land parcels under binding contract for sale 527 527
------------------------------------------------------ ----------- ---------
Developable Land Parcel Units Remaining(4) 3,248 2,462
------------------------------------------------------ ----------- ---------
See Non-GAAP Financial Definitions.
-----------------------------------
(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) The unit count reduced subsequently when the Company sold 65 Livingston
in January 2025. Wall Land and 1 Water Street are represented in the
under binding contract bucket. One land parcel in Malden, MA was rezoned
for retail use, reducing the total unit count by 112.
Same Store Market Information(1)
Sequential Quarter Comparison
(NOI in thousands)
NOI at Share Occupancy Blended Lease Rate(2)
4Q 3Q 3Q
Apartments 4Q 2024 3Q 2024 Change 2024 2024 Change 4Q 2024 2024 Change
New Jersey
Waterfront 5,067 $37,733 $38,836 (2.8) % 93.8 % 95.3 % (1.5) % 1.2 % 6.6 % (5.4) %
Massachusetts 1,167 6,787 6,765 0.3 % 93.9 % 94.8 % (0.9) % -- % 0.7 % (0.7) %
Other(3) 1,387 6,299 6,226 1.2 % 94.0 % 94.5 % (0.5) % (1.7) % 0.5 % (2.2) %
Total 7,621 $50,819 $51,827 (1.9) % 93.9 % 95.1 % (1.2) % 0.5 % 4.6 % (4.1) %
Year-over-Year Fourth Quarter Comparison
(NOI in thousands)
NOI at Share Occupancy Blended Lease Rate(2)
4Q 4Q 4Q
Apartments 4Q 2024 4Q 2023 Change 2024 2023 Change 4Q 2024 2023 Change
New Jersey
Waterfront 5,067 $37,733 $34,756 8.6 % 93.8 % 94.6 % (0.8) % 1.2 % 7.8 % (6.6) %
Massachusetts 1,167 6,787 6,570 3.3 % 93.9 % 93.9 % -- % -- % 0.5 % (0.5) %
Other(3) 1,387 6,299 6,017 4.7 % 94.0 % 94.0 % -- % (1.7) % 5.0 % (6.7) %
Total 7,621 $50,819 $47,343 7.3 % 93.9 % 94.4 % (0.5) % 0.5 % 6.2 % (5.7) %
Average Revenue per Home
Apartments 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023
New Jersey Waterfront 5,067 $4,441 $4,371 $4,291 $4,274 $4,219
Massachusetts 1,167 2,962 2,946 2,931 2,893 2,925
Other(3) 1,387 3,442 3,421 3,411 3,374 3,307
Total 7,621 $4,033 $3,980 $3,923 $3,899 $3,855
See Non-GAAP Financial Definitions.
-----------------------------------
(1) All statistics are based off the current 7,621 Same Store pool.
(2) Blended lease rates exclude properties not managed by Veris.
(3) "Other" includes properties in Suburban NJ, New York, and Washington, DC.
See Multifamily Operating Portfolio for breakout.
Same Store Performance
($ in thousands)
Multifamily Same
Store(1)
Three Months Ended December 31, Twelve Months Ended December 31, Sequential
2024 2023 Change % 2024 2023 Change % 4Q24 3Q24 Change %
Apartment Rental
Income $69,149 $66,603 $2,546 3.8 % $272,198 $258,816 $13,382 5.2 % $69,149 $68,862 $287 0.4 %
Parking/Other
Income 7,226 6,768 458 6.8 % 28,481 26,431 2,050 7.8 % 7,226 6,930 296 4.3 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Total Property
Revenues(2) $76,375 $73,371 $3,004 4.1 % $300,679 $285,247 $15,432 5.4 % $76,375 $75,792 $583 0.8 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Marketing &
Administration 2,618 2,559 59 2.3 % 9,733 9,741 (8) (0.1) % 2,618 2,444 174 7.1 %
Utilities 2,278 2,181 97 4.4 % 9,521 9,057 464 5.1 % 2,278 2,491 (213) (8.6) %
Payroll 4,525 4,666 (141) (3.0) % 17,531 17,956 (425) (2.4) % 4,525 4,398 127 2.9 %
Repairs &
Maintenance 4,486 4,423 63 1.4 % 16,564 15,436 1,128 7.3 % 4,486 4,095 391 9.5 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Controllable
Expenses $13,907 $13,829 $78 0.6 % $53,349 $52,190 $1,159 2.2 % $13,907 $13,428 $479 3.6 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Other Fixed Fees 719 728 (9) (1.2) % 2,879 2,918 (39) (1.3) % 719 745 (26) (3.5) %
Insurance 1,388 1,743 (355) (20.4) % 5,649 6,464 (815) (12.6) % 1,388 702 686 97.7 %
Real Estate Taxes 9,542 9,728 (186) (1.9) % 38,061 35,881 2,180 6.1 % 9,542 9,090 452 5.0 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Non-Controllable
Expenses $11,649 $12,199 $(550) (4.5) % $46,589 $45,263 $1,326 2.9 % $11,649 $10,537 $1,112 10.6 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Total Property
Expenses $25,556 $26,028 $(472) (1.8) % $99,938 $97,453 $2,485 2.5 % $25,556 $23,965 $1,591 6.6 %
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Same Store GAAP
NOI $50,819 $47,343 $3,476 7.3 % $200,741 $187,794 $12,947 6.9 % $50,819 $51,827 $(1,008) (1.9) %
======= ======= ======= ======== ======== ======== ======= ======== ======= ======= ======== =======
Real Estate Tax
Adjustments(3) -- -- -- -- 1,689 (1,689) -- -- --
------- ------- ------- -------- -------- -------- ------- -------- ------- ------- -------- -------
Normalized Same
Store NOI $50,819 $47,343 $3,476 7.3 % $200,741 $186,105 $14,636 7.9 % $50,819 $51,827 $(1,008) (1.9) %
======= ======= ======= ======== ======== ======== ======= ======== ======= ======= ======== =======
Normalized SS NOI
Margin 66.5 % 64.5 % 2.0 % 66.8 % 65.2 % 1.6 % 66.5 % 68.4 % (1.9) %
Total Units 7,621 7,621 7,621 7,621 7,621 7,621
% Ownership 85.2 % 85.2 % 85.2 % 85.2 % 85.2 % 85.2 %
% Occupied 93.9 % 94.4 % (0.5) % 93.9 % 94.4 % (0.5) % 93.9 % 95.1 % (1.2) %
(1) Values represent the Company's pro rata ownership of the operating
portfolio. The James and Haus25 were added to the Same Store pool in 1Q
2024. All periods displayed have an adjusted Same Store pool to reflect
the sales of both Met Lofts and Shops at 40 Park.
(2) Revenues reported based on Generally Accepted Accounting Principals or
"GAAP".
(3) Represents tax settlements and final tax rate adjustments recognized that
are applicable to prior periods.
Debt Profile
($ in thousands)
Effective
Interest December December Date of
Lender Rate(1) 31, 2024 31, 2023 Maturity
Permanent
Loans Repaid
in 2024
--------------
Soho Lofts(2) Flagstar Bank 3.77 % -- 158,777 07/01/29
145 Front at
City
Square(3) US Bank SOFR+1.84% -- 63,000 12/10/26
Nationwide
Life
Signature Insurance
Place(4) Company 3.74 % -- 43,000 08/01/24
American
General Life
Liberty Insurance
Towers(5) Company 3.37 % -- 265,000 10/01/24
Permanent Loans Repaid in
2024 $-- $529,777
Secured
Permanent
Loans
--------------
New York Life
Portside 2 at Insurance
East Pier Co. 4.56 % 95,427 97,000 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 % 115,515 117,000 08/10/26
Portside at SOFR +
East Pier(6) KKR 2.75% 56,500 56,500 09/07/26
Bank of New SOFR +
The Upton(7) York Mellon 1.58% 75,000 75,000 10/27/26
RiverHouse 9
at Port SOFR +
Imperial(8) JP Morgan 1.41% 110,000 110,000 06/21/27
Natixis Real
Estate
Quarry Place Capital,
at Tuckahoe LLC 4.48 % 41,000 41,000 08/05/27
The
Northwestern
Mutual Life
Insurance
BLVD 475 Co. 2.91 % 164,712 165,000 11/10/27
Haus25 Freddie Mac 6.04 % 343,061 343,061 09/01/28
The
Northwestern
RiverHouse 11 Mutual Life
at Port Insurance
Imperial Co. 4.52 % 100,000 100,000 01/10/29
American
Port Imperial General Life
Garage South & A/G PC 4.85 % 31,098 31,645 12/01/29
The Emery at
Overlook
Ridge(9) Flagstar Bank 3.21 % 70,653 72,000 01/01/31
Secured Permanent Loans
Outstanding $1,333,966 $1,339,206
Secured and/or Repaid
Permanent Loans $1,333,966 $1,868,983
Unamortized Deferred
Financing Costs (10,492) (15,086)
Secured Permanent Loans $1,323,474 $1,853,897
Secured RCF &
Term Loans:
--------------
Revolving
Credit Various SOFR +
Facility(10) Lenders 2.72% $152,000 $-- 04/22/27
Various SOFR +
Term Loan(10) Lenders 2.73% 200,000 -- 04/22/27
RCF & Term
Loan Balances $352,000 $--
Unamortized
Deferred
Financing
Costs (3,161) --
Total RCF &
Term Loan
Debt $348,839 $--
Total Debt $1,672,313 $1,853,897
See to Debt Profile Footnotes.
------------------------------
Debt Summary and Maturity Schedule
($ in thousands)
100% of the Company's total pro forma debt portfolio (consolidated and
unconsolidated) is hedged or fixed. The Company's total pro rata debt
portfolio has a weighted average interest rate of 4.95% and a weighted average
maturity of 3.1 years.
Weighted Average
% Weighted Average Maturity in
Balance of Total Interest Rate Years
Fixed Rate &
Hedged Debt
------------------
Fixed Rate &
Hedged Secured
Debt $1,683,966 99.9 % 5.05 % 2.76
Variable Rate Debt
------------------
Variable Rate
Debt(1) 2,000 0.1 % 7.08 % 2.31
Totals / Weighted
Average $1,685,966 100.0 % 5.05 % 2.76
Unamortized
Deferred
Financing Costs (13,654)
Total Consolidated
Debt, net $1,672,312
Partners' Share (72,770)
VRE Share of Total
Consolidated
Debt, net(2) $1,599,542
Unconsolidated
Secured Debt
VRE Share $293,450 53.2 % 4.72 % 4.00
Partners' Share 257,796 46.8 % 4.72 % 4.00
Total
Unconsolidated
Secured Debt $551,246 100.0 % 4.72 % 4.00
Pro Rata Debt
Portfolio
Fixed Rate &
Hedged Secured
Debt $1,899,646 100.0 % 4.95 % 3.10
Variable Rate
Secured Debt -- -- % -- % --
Total Pro Rata
Debt Portfolio $1,899,646 100.0 % 4.95 % 3.10
Debt Maturity Schedule as of December 31, 2024(34)
--------------------------------------------------------------------
2025 2026 2027 2028 2029 2030 2031
------------------------- ----- ---- ---- ---- ---- ---- ----
Secured Debt 473 316 343 131 71
-------------------------------- ---- ---- ---- ---- ---- ----
Term Loan 200
-------------------------------- ---- ---- ---- ---- ---- ----
Revolver 152
-------------------------------- ---- ---- ---- ---- ---- ----
Unused Revolver Capacity 148
-------------------------------- ---- ---- ---- ---- ---- ----
Pro Forma
Total Consolidated Debt, net on 12/31/24 1,685,966
Partners' Share (72,770)
---------
VRE Share of Total Consolidated Debt, net as of 12/31/24 1,613,196
---------
Repayment of outstanding Revolver borrowings from sale of 65
Livingston in January 2025 (7,000)
---------
VRE Share of Total Consolidated Debt, net on 2/20/25 1,606,196
---------
VRE Share of Total Unconsolidated Debt, net on 12/31/24 293,450
---------
Total Pro Rata Debt Portfolio 1,899,646
=========
(1) Variable rate debt includes the unhedged
balance on the Revolver at year end.
(2) Minority interest share of consolidated debt is
comprised of $33.7 million at BLVD 425, $29.7
million at BLVD 401 and $9.3 million at Port
Imperial South Garage.
(3) 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
at a strike of 3.5%, expiring July 2026. The
Revolver is partially capped with $150 million
notional capped at a strike rate of 3.5%,
expiring in June 2025.
The graphic reflects consolidated debt balances only. Dollars are shown in
millions.
Annex 1: Transaction Activity
($ in thousands except per SF)
Transaction Number of Gross Asset
Location Date Buildings SF Value
2024 Dispositions
Land
Parsippany-Troy
2 Campus Drive 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
6 Becker/85
Livingston Roseland, NJ 4/30/2024 N/A N/A 27,900
---------------
Subtotal Land $91,600
----------------------------------------------------- ----------- --------- ---------------
Multifamily
Metropolitan Lofts(1) 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 $85,000
----------- --------- ---------------
Subtotal Office 1 977,225 $85,000
----------------------------------------------------- ----------- --------- ---------------
Retail
Shops at 40 Park(2) Morristown, NJ 10/22/2024 1 50,973 $15,700
----------- --------- ---------------
Subtotal Retail 1 50,973 $15,700
----------------------------------------------------- ----------- --------- ---------------
2024 Dispositions
Total $222,600
====================== ===============
2025
Dispositions-to-Date
Land
65 Livingston Roseland, NJ 1/24/2025 N/A N/A $7,300
--------------------- ---------------- ------------ ----------- --------- ---------------
2025
Dispositions-to-Date $7,300
====================== ===============
Under Binding Contract
Wall Land Wall Township, NJ N/A N/A
1 Water Street White Plains, NY N/A N/A
(1) The joint venture sold the property; releasing approximately $6 million
of net proceeds to the Company.
(2) The Company`s joint venture sold the Shops at 40 Park retail for $15.7
million, of which the Company did not receive any net proceeds after
repayment of property-level debt, selling expenses, and preferred return
distributions to its joint venture partner.
Annex 2: Reconciliation of Net Income (loss) to NOI (three months ended)
4Q 2024 3Q 2024
Total Total
Net Income (loss) $ (14,023) $ (10,907)
Deduct:
Loss (income) from
discontinued operations 1,015 (206)
Realized gains (losses) and
unrealized gains (losses) on
disposition of rental
property and impairments,
net (1,899) --
Management fees (751) (794)
Interest and other
investment income (111) (181)
Equity in (earnings) loss of
unconsolidated joint
ventures (1,015) 268
(Gain) loss from
extinguishment of debt,
net -- (8)
(Gain) loss on sale of
unconsolidated joint venture
interests 154 --
Other (income) expense, net 396 310
Add:
Property management 3,877 3,762
General and administrative 10,040 8,956
Transaction-related costs 159 --
Depreciation and
amortization 21,182 21,159
Interest expense 23,293 21,507
Provision for income taxes 2 39
Land and other impairments,
net -- 2,619
------------------------- -------------------------
Net operating income (NOI) $ 42,319 $ 46,524
------------------------- -------------------------
Summary of Consolidated
Multifamily NOI by Type
(unaudited): 4Q 2024 3Q 2024
-----------------------------
Total Consolidated
Multifamily - Operating
Portfolio $ 41,612 $ 43,477
Total Consolidated Commercial 495 927
------------------------- -------------------------
Total NOI from Consolidated
Properties (excl.
unconsolidated
JVs/subordinated interests) $ 42,107 $ 44,404
------------------------- -------------------------
NOI (loss) from services,
land/development/repurposing
& other assets 398 427
------------------------- -------------------------
Total Consolidated
Multifamily NOI $ 42,505 $ 44,831
------------------------- -------------------------
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 9,653
and 8,696 shares for the three months ended December 31, 2024 and 2023,
respectively, and 9,472 and 8,929 for the twelve months ended December 31,
2024 and 2023, 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 $2.6 million and $2.6 million
for the three months ended December 31, 2024 and 2023, respectively, and
$10.2 million and $10.3 million for the twelve months ended December 31,
2024 and 2023, respectively. Excludes non-real estate-related depreciation
and amortization of $0.2 million and $0.2 million for the three months
ended December 31, 2024 and 2023, respectively, and $0.8 million and $1.0
million for the twelve months ended December 31, 2024 and 2023,
respectively.
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. Accounting for the impact of Severance/Compensation related costs, General
and Administrative expense was $10.0 million and $9.9 million for the
three months ended December 31, 2024 and 2023, respectively, and $37.0
million and $36.5 million for the twelve months ended December 31, 2024
and 2023, respectively.
5. Accounting for the impact of Severance/Compensation related costs,
Property Management expense was $3.1 million and $3.5 million for the
three months ended December 31, 2024 and 2023, respectively, and $14.1
million and $13.1 million for the twelve months ended December 31, 2024
and 2023, respectively.
6. Includes the Company's share from unconsolidated joint ventures of $20
thousand and $92 thousand for the three months and twelve months ended
December 31, 2024.
7. Includes the Company's share from unconsolidated joint ventures of $59
thousand and $23 thousand for the three months ended December 31, 2024 and
2023, respectively, and $94 thousand and ($4) thousand for the twelve
months ended December 31, 2024 and 2023, respectively.
8. Excludes expenditures for tenant spaces in properties that have not been
owned by the Company for at least a year.
See Consolidated Statement of Operations.
------------------------------------------------------------------------------
See FFO, Core FFO and Core AFFO.
------------------------------------------------------------------------------
See Adjusted EBITDA.
------------------------------------------------------------------------------
Annex 4: Unconsolidated Joint Ventures
($ in thousands)
VRE
VRE's Share
Percentage Nominal 4Q 2024 Total of 4Q VRE Share
Property Units Occupied Ownership(1) NOI(2) Debt NOI of Debt
Multifamily
Urby
Harborside 762 94.4 % 85.0 % $6,455 $182,604 $5,487 $155,213
RiverTrace at
Port
Imperial 316 94.4 % 22.5 % 2,243 82,000 505 18,450
Capstone at
Port
Imperial 360 95.1 % 40.0 % 3,243 135,000 1,297 54,000
Riverpark at
Harrison 141 95.7 % 45.0 % 626 30,192 282 13,586
Metropolitan
at 40 Park 130 93.7 % 25.0 % 771 34,100 193 8,525
Station House 378 91.8 % 50.0 % 2,005 87,350 1,003 43,675
----- ---------- ------------ ------- -------- ------ ---------
Total
Multifamily 2,087 94.1 % 55.0 % $15,343 $551,246 $8,766 $293,450
----- ---------- ------------ ------- -------- ------ ---------
Total UJV 2,087 94.1 % 55.0 % $15,343 $551,246 $8,766 $293,450
===== ========== ============ ======= ======== ====== =========
Retail Sold
in 4Q
Shops at 40
Park(3) N/A 69.0 % 25.0 % 68 -- 17 --
----- ---------- ------------ ------- -------- ------ ---------
Total Retail
Sold in 4Q N/A 69.0 % 25.0 % $68 $-- $17 $--
(1) Amounts represent the Company's share based on ownership percentage.
(2) The sum of property level revenue, straight line and ASC 805 adjustments;
less: operating expenses, real estate taxes and utilities.
(3) The Company`s joint venture sold the Shops at 40 Park retail for $15.7
million, of which the Company did not receive any net proceeds after
repayment of property-level debt, selling expenses, and preferred return
distributions to its joint venture partner.
Annex 5: Debt Profile Footnotes
1. Effective rate of debt, including deferred financing costs, comprised of
the cost of terminated treasury lock agreements (if any), debt initiation
costs, mark-to-market adjustment of acquired debt and other transaction
costs, as applicable.
2. The loan on Soho Lofts was prepaid in full on June 28, 2024, through a
$55 million Term Loan draw.
3. The loan on 145 Front Street was prepaid in full on May 22, 2024, using
cash on hand.
4. The loan on Signature Place was repaid on August 1, 2024, through a $43
million Term Loan draw.
5. The loan on Liberty Towers was repaid on September 30, 2024, through a
combination of a $102 million Term Loan draw, $157 million Revolver draw
and cash on hand.
6. 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.
7. The loan on Upton was hedged with an interest rate cap at a strike rate
of 1.0% that expired in October 2024. The Company elected to place a new
interest rate cap at a strike of 3.5%, expiring in November 2026.
8. The loan on RiverHouse 9 is hedged with an interest rate cap at a strike
rate of 3.5%, expiring in July 2026.
9. 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.
10. 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 accessed three times ($55 million in
June, $43 million in August and $102 million in September) and was fully
drawn as of December 31, 2024. The three Term Loan tranches are hedged
with interest rate caps at strike rates of 3.5%, expiring in July 2026.
As of December 31, 2024, the balance outstanding under the Revolver was
$152 million, of which $150 million was 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 December Initial Financing reduction Updated SOFR All In
31, 2024 Spread Costs KPI Spread Cap Rate
Secured
Revolving
Credit
Facility
(Unhedged) $2,000,000 2.10 % 0.67 % (0.05) % 2.72 % 4.36 % 7.08 %
Secured
Revolving
Credit
Facility $150,000,000 2.10 % 0.67 % (0.05) % 2.72 % 3.50 % 6.22 %
Secured
Term Loan $200,000,000 2.10 % 0.68 % (0.05) % 2.73 % 3.50 % 6.23 %
See 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
Urby Jersey City,
Harborside 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
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