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.

(PRNewsfoto/Veris Residential, Inc.)

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:

($ in 000s)

Three Months Ended December 31,

Twelve Months Ended 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 December 31,

Twelve  Months Ended 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)

(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 ventures1

(495)

(504)

(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 Multifamily NOI1

 Total 

 At Share 

Cash and Cash Equivalents2

$6,493

New Jersey Waterfront

$169,888

$145,446

Restricted Cash

17,059

Massachusetts

26,100

26,100

Other Assets

52,104

Other

31,832

24,132

Subtotal Other Assets

$75,656

Total Multifamily NOI

$227,820

$195,678


Commercial NOI3

1,980

1,159

Liabilities and Other Considerations

Add Back: Non-recurring NOI Impact4

1,368

1,368


Total NOI

$231,168

$198,205

Operating - Consolidated Debt at Share

$1,261,196




Operating - Unconsolidated Debt at Share

293,450

Non-Strategic Assets

Other Liabilities

68,051




Revolving Credit Facility5

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

Total Non-Strategic Assets6

$180,069

Subtotal Liabilities and Other Considerations

$1,976,991










Outstanding Shares7










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

Occupied

Average Revenue

per Home

NOI

Debt

Balance

Ownership

Apartments

4Q 2024

3Q 2024

4Q 2024

3Q 2024

4Q 2024

3Q 2024

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 Portfolio12

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)

 

Commercial

Location

Ownership

Rentable

SF1

Percentage

Leased

4Q 2024

Percentage

Leased

3Q 2024

NOI

4Q 2024

NOI

3Q 2024

Debt

Balance

Port Imperial South - Garage

Weehawken, NJ

70.0 %

Fn 1

N/A

N/A

$537

$590

$31,098

Port Imperial South - Retail

Weehawken, NJ

70.0 %

18,064

92.0 %

92.0 %

147

115

—

Port Imperial North - Garage

Weehawken, NJ

70.0 %

Fn 1

N/A

N/A

25

12

—

Port Imperial North - Retail

Weehawken, NJ

100.0 %

8,400

100.0 %

100.0 %

(275)

46

—

Riverwalk at Port Imperial

West New 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 Park2

Morristown, 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 Units3


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 Remaining4

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 Information1

Sequential Quarter Comparison

(NOI in thousands)   













NOI at Share

Occupancy

Blended Lease Rate2

Apartments

4Q 2024

3Q 2024

Change

4Q 2024

3Q 2024

Change

4Q 2024

3Q 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) %

Other3

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 Rate2 

Apartments

4Q 2024

4Q 2023

Change

4Q 2024

4Q 2023

Change

4Q 2024

4Q 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) %

Other3

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

Other3

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 Store1














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 Revenues2

$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 Adjustments3

—

—

—

—

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)


Lender

Effective

Interest Rate(1)

December 31, 2024

December 31, 2023

Date of

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

Signature Place(4)

Nationwide Life Insurance Company

3.74 %

—

43,000

08/01/24

Liberty Towers(5)

American General Life Insurance Company

3.37 %

—

265,000

10/01/24

Permanent Loans Repaid in 2024

$—

$529,777

Secured Permanent Loans




Portside 2 at East Pier

New York Life Insurance Co.

4.56 %

95,427

97,000

03/10/26

BLVD 425

New York Life Insurance Co.

4.17 %

131,000

131,000

08/10/26

BLVD 401

New York Life Insurance Co.

4.29 %

115,515

117,000

08/10/26

Portside at East Pier(6)

KKR

SOFR + 2.75%

56,500

56,500

09/07/26

The Upton(7)

Bank of New York Mellon

SOFR + 1.58%

75,000

75,000

10/27/26

RiverHouse 9 at Port Imperial(8)

JP Morgan

SOFR + 1.41%

110,000

110,000

06/21/27

Quarry Place at Tuckahoe

Natixis Real Estate Capital, LLC

4.48 %

41,000

41,000

08/05/27

BLVD 475

The Northwestern Mutual Life Insurance Co.

2.91 %

164,712

165,000

11/10/27

Haus25

Freddie Mac

6.04 %

343,061

343,061

09/01/28

RiverHouse 11 at Port Imperial

The Northwestern Mutual Life Insurance Co.

4.52 %

100,000

100,000

01/10/29

Port Imperial Garage South

American General Life & A/G PC

4.85 %

31,098

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 Facility(10)

Various Lenders

SOFR + 2.72%

$152,000

$—

04/22/27

Term Loan(10)

Various Lenders

SOFR + 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.


Balance

%

of Total

Weighted Average

Interest Rate

Weighted Average

Maturity in Years

Fixed Rate & Hedged Debt



Fixed Rate & Hedged Secured Debt

$1,683,966

99.9 %

5.05 %

2.76

Variable Rate Debt



Variable Rate Debt1

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, net2

$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, 202434 


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)


Location

Transaction Date

Number of
Buildings

SF

Gross Asset Value

2024 Dispositions




Land




2 Campus Drive

Parsippany-Troy Hills, NJ

1/3/2024

N/A

N/A

$9,700

107 Morgan

Jersey City, NJ

4/16/2024

N/A

N/A

54,000

6 Becker/85 Livingston

Roseland, NJ

4/30/2024

N/A

N/A

27,900

Subtotal Land



$91,600

Multifamily




Metropolitan Lofts1

Morristown, NJ

1/12/2024

1

54,683

$30,300

Subtotal Multifamily

1

54,683

$30,300

Office




Harborside 5

Jersey City, NJ

3/20/2024

1

977,225

$85,000

Subtotal Office

1

977,225

$85,000

Retail




Shops at 40 Park2

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)

 

Property

Units

Percentage

Occupied

VRE's Nominal

Ownership1

4Q 2024

NOI2

Total

Debt

VRE Share

of 4Q NOI

VRE Share

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 Park3

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.

                                        

Balance as of
December 31, 2024

Initial
Spread

Deferred
Financing
Costs

5 bps
reduction KPI

Updated
Spread

SOFR or
SOFR Cap

All In
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


Location

Ownership

Apartments

Rentable SF1

Average Size

Year Complete

NJ Waterfront





Haus25

Jersey City, NJ

100.0 %

750

617,787

824

2022

Liberty Towers

Jersey City, NJ

100.0 %

648

602,210

929

2003

BLVD 401

Jersey City, NJ

74.3 %

311

273,132

878

2016

BLVD 425

Jersey City, NJ

74.3 %

412

369,515

897

2003

BLVD 475

Jersey City, NJ

100.0 %

523

475,459

909

2011

Soho Lofts

Jersey City, NJ

100.0 %

377

449,067

1,191

2017

Urby Harborside

Jersey City, NJ

85.0 %

762

474,476

623

2017

RiverHouse 9 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

RiverTrace

West New York, NJ

22.5 %

316

295,767

936

2014

Capstone

West New York, NJ

40.0 %

360

337,991

939

2021

NJ Waterfront Subtotal

85.0 %

5,067

4,391,122

867

Massachusetts





Portside at East Pier

East Boston, MA

100.0 %

180

154,859

862

2015

Portside 2 at East Pier

East Boston, MA

100.0 %

296

230,614

779

2018

145 Front at City Square

Worcester, MA

100.0 %

365

304,936

835

2018

The Emery at Overlook Ridge

Revere, MA

100.0 %

326

273,140

838

2020

Massachusetts Subtotal

100.0 %

1,167

963,549

826

Other





The Upton

Short Hills, NJ

100.0 %

193

217,030

1,125

2021

The James

Park Ridge, NJ

100.0 %

240

215,283

897

2021

Signature Place

Morris Plains, NJ

100.0 %

197

203,716

1,034

2018

Quarry Place at Tuckahoe

Eastchester, NY

100.0 %

108

105,551

977

2016

Riverpark at Harrison

Harrison, NJ

45.0 %

141

124,774

885

2014

Metropolitan at 40 Park

Morristown, NJ

25.0 %

130

124,237

956

2010

Station House

Washington, DC

50.0 %

378

290,348

768

2015

Other Subtotal

73.8 %

1,387

1,280,939

924

Operating Portfolio2

85.2 %

7,621

6,635,610

871

See Multifamily Operating Portfolio.











1

Total sf outlined above excludes approximately 189,367 sqft of ground floor retail, of which 142,739 sf was leased as of December 31, 2024.  

2

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 December 31,

Twelve Months Ended December 31,

2024

2023

2024

2023

BLVD 425

$                96

$                72

$               423

$              202

BLVD 401

(571)

(568)

(2,258)

(2,487)

Port Imperial Garage South

(2)

(12)

(5)

(52)

Port Imperial Retail South

18

29

52

113

Other consolidated joint ventures

(36)

(25)

(136)

(95)

Net losses in noncontrolling interests

$            (495)

$            (504)

$          (1,924)

$          (2,319)

Depreciation in noncontrolling interests

744

712

2,923

2,853

Funds from operations - noncontrolling interest in consolidated joint ventures

$              249

$              208

$              999

$              534

Interest expense in noncontrolling interest in consolidated joint ventures

786

789

3,146

3,163

Net operating income before debt service in consolidated joint ventures

$           1,035

$              997

$            4,145

$           3,697

See Adjusted EBITDA.

 

Non-GAAP Financial Definitions

NON-GAAP FINANCIAL MEASURES 

Included in this financial package are Funds from Operations, or FFO, Core Funds from Operations, or Core FFO, net operating income, or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or Adjusted EBITDA, each a "non-GAAP financial measure," measuring Veris Residential, Inc.'s historical or future financial performance that is different from measures calculated and presented in accordance with generally accepted accounting principles ("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.

Company Information

Company Information



Corporate Headquarters

Stock Exchange Listing

Contact Information

Veris Residential, Inc.

New York Stock Exchange

Veris Residential, Inc.

210 Hudson St., Suite 400

Investor Relations Department

Jersey City, New Jersey 07311

Trading Symbol

210 Hudson St., Suite 400

(732) 590-1010

Common Shares: VRE

Jersey City, New Jersey 07311





Mackenzie Rice


Director, Investor Relations


E-Mail:  investors@verisresidential.com


Web: www.verisresidential.com






Executive Officers




Mahbod Nia

Amanda Lombard

Taryn Fielder

Chief Executive Officer

Chief Financial Officer

General Counsel and Secretary



Anna Malhari

Jeff Turkanis

Chief Operating Officer

EVP & Chief Investment Officer






Equity Research Coverage




Bank of America Merrill Lynch

BTIG, LLC

Citigroup

Josh Dennerlein

Thomas Catherwood

Nicholas Joseph



Evercore ISI

Green Street Advisors

JP Morgan

Steve Sakwa

John Pawlowski

Anthony Paolone



Truist

Michael R. Lewis

 

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SOURCE Veris Residential, Inc.

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