EX-99.1 2 a991earningsreleaseandsupp.htm EX-99.1 Document









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Table Of Contents



Page(s)
   Key Financial Data
  Operating Portfolio
Debt
   Reconciliations and Additional Details
   Annex 1: Transaction Activity









    


V E R I S    R E S I D  E  N  T  I  A  L,    I N C.  
NEWS RELEASE
For Immediate Release
Veris Residential, Inc.
Reports First Quarter 2024 Results
JERSEY CITY, N.J., April 24, 2024 –– Veris Residential, Inc. (NYSE: VRE) (the “Company”), a forward-thinking, environmentally and socially conscious multifamily REIT, today reported results for the first quarter 2024.

Three Months Ended,
March 31, 2024December 31, 2023
Net Income (Loss) per Diluted Share$(0.04)$(0.06)
Core FFO per Diluted Share$0.14$0.12
Core AFFO per Diluted Share$0.18$0.14
Dividend per Diluted Share
$0.0525$0.0525

CAPITAL ALLOCATION AND BALANCE SHEET

–Sold $179 million of non-strategic assets, including the last office asset; two land parcels are currently under binding contract for $28 million.
–Secured a new $500 million three-plus-one-year term revolving credit facility and term loan package.
–Combination of proceeds from closed asset sales and new facilities to address all consolidated debt maturities through the end of 2025.
–Raising 2024 guidance, reflecting positive earnings impact anticipated from new, alternative financing strategy and anticipated debt reduction.

OPERATIONAL PERFORMANCE

–Same Store multifamily Blended Net Rental Growth Rate of 4.6%.
–Same Store NOI growth of over 14% YOY and 4% sequentially.
–Earned highest Online Reputation Assessment (ORA®) Score of REITs in the United States.
–Achieved highest ISS ESG Corporate Score of real estate companies in the United States.

Mahbod Nia, Chief Executive Officer, commented:"We had a positive start to the year, implementing and advancing a number of value-enhancing operational, capital recycling and balance-sheet-related initiatives, while continuing to deliver strong financial results."

"Despite the challenging credit environment, we were able to secure a $500 million credit facility and term loan from a broad range of lenders, providing us with substantial liquidity, financial flexibility and potential for enhanced earnings, as reflected in our raised guidance. We also unlocked another $145 million of idle equity from non-strategic asset sales while continuing to generate solid operational performance, as evidenced by our Same Store year-over-year NOI growth of 14%. Looking ahead, we are well positioned to execute on our multi-pronged optimization strategy as we seek to continue creating value for our shareholders."

March 31, 2024March 31, 2023
Same Store Units7,6227,622
Same Store Occupancy94.1%95.9%
Same Store Blended Rental Growth Rate4.6%10.2%
Average Rent per Home$3,899$3,622

SAME STORE PORTFOLIO PERFORMANCE

Haus25 and The James were added to the Same Store pool in 2024. These properties contributed nearly $8.7 million to NOI in the first quarter.



The following table presents a more detailed breakout of Same Store performance:

Three Months Ended March 31,
20242023%
Total Property Revenue$74,092$68,0638.9%
Controllable Expenses12,62212,5170.8%
Non-Controllable Expenses12,08312,318(1.9)%
Total Property Expenses24,70524,835(0.5)%
Same Store NOI
$49,387$43,22814.2%

TRANSACTION ACTIVITY

As previously announced, the Company closed on the sales of 2 Campus and The Metropolitan Lofts joint venture for a combined gross price of $40 million, releasing approximately $16 million in net proceeds.

The last office asset in the portfolio, Harborside 5, sold for $85 million, releasing approximately $81 million in net proceeds.

Subsequent to quarter end, 107 Morgan land parcel sold for $54 million, releasing approximately $48 million in net proceeds. An additional $28 million across two land parcels are under binding contract with an expected close in the first half of 2024.

FINANCE AND LIQUIDITY

Virtually all (99.9%) of the Company`s debt is hedged or fixed. The Company`s total debt portfolio has a weighted average rate of 4.4% and weighted average maturity of 3.5 years.

Three Months Ended,
Balance Sheet MetricMarch 31, 2024December 31, 2023
Weighted Average Interest Rate4.4%4.5%
Weighted Average Years to Maturity3.53.7
Interest Coverage Ratio
1.5x1.5x
Net Debt1,714,8001,799,318
TTM EBITDA
142,543151,201
TTM Net Debt to EBITDA
12.0x11.9x

On April 22, 2024, the Company successfully replaced its existing revolving credit facility and term loan package with a new $500 million secured facility package, comprising a $200 million delayed-draw term loan and $300 million revolving credit facility. Both the revolving credit facility and term loan have a three-year term and a one-year extension option. The facility package also has sustainability linked KPIs and includes a $200 million accordion feature.

Proceeds from the facilities will be used to repay existing loans over time as well as for general corporate purposes. No funds were drawn at closing. The Company expects to utilize interest rate caps to partially hedge future drawn funds.

DIVIDEND

The Company paid a dividend of $0.0525 per share on April 16, 2024.

ESG

In the first quarter, Veris Residential earned the highest ISS ESG Corporate Score of all real estate companies in the United States, surpassing all but three real estate companies globally. The Company was also named a Gold Green Lease Leader by the US Department of Energy and secured three awards from the International WELL Building Institute: the WELL Concept Leader Award, Equity Leadership Award, and Commitment and Engagement Award.





GUIDANCE

As a result of the anticipated earnings impact of the Company`s new credit facilities and associated debt reduction, the Company is raising its Core FFO per Share guidance in accordance with the following table:

2024 Guidance RangesLowHigh
Same Store Revenue Growth4.0%—5.0%
Same Store Expense Growth5.0%—6.0%
Same Store NOI Growth2.5%—5.0%

Core FFO per Share Guidance LowHigh
Net Loss per Share$(0.38)—$(0.34)
Add back: Depreciation per Share$0.88—$0.88
Core FFO per Share$0.50—$0.54

CONFERENCE CALL/SUPPLEMENTAL INFORMATION

An earnings conference call with management is scheduled for Thursday, April 25, 2024, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com/.

The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential first quarter 2024 earnings conference call.

The conference call will be rebroadcast on Veris Residential, Inc.’s website at:
http://investors.verisresidential.com/ beginning at 8:30 a.m. Eastern Time on Thursday, April 25, 2024.

A replay of the call will also be accessible Friday, April 26, 2024, through Sunday, May 26, 2024, by calling (844) 512-2921 (domestic) or (412) 317-6671 (international) and using the passcode, 137343562.
Copies of Veris Residential, Inc.’s first quarter 2024 Form 10-Q and first quarter 2024 Supplemental Operating and Financial Data are available on Veris Residential, Inc.’s website: Financial Results

In addition, once filed, these items will be available upon request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
ABOUT THE COMPANY
Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.
For additional information on Veris Residential, Inc. and our properties available for lease, please visit http:// www.verisresidential.com/.
The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the “10-Q”) filed by the Company for the same period with the Securities and Exchange Commission (the “SEC”) and all of the Company’s other public filings with the SEC (the “Public Filings”). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings.
We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.


We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “potential,” “projected,” “should,” “expect,” “anticipate,” “estimate,” “target,” “continue” or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.
InvestorsMedia
Anna MalhariAmanda Shpiner/Grace Cartwright
Chief Operating OfficerGasthalter & Co.
investors@verisresidential.comveris-residential@gasthalter.com

Additional details on Company Information page.

Consolidated Balance Sheet
(in thousands) (unaudited)

March 31, 2024December 31, 2023
ASSETS
Rental property
Land and leasehold interests$463,826$474,499
Buildings and improvements2,633,8492,782,468
Tenant improvements8,39130,908
Furniture, fixtures and equipment105,668103,613
3,211,7343,391,488
Less – accumulated depreciation and amortization(372,241)(443,781)
2,839,4932,947,707
Real estate held for sale, net66,97558,608
Net investment in rental property2,906,4683,006,315
Cash and cash equivalents112,70128,007
Restricted cash25,64926,572
Investments in unconsolidated joint ventures118,830117,954
Unbilled rents receivable, net1,5425,500
Deferred charges and other assets, net45,99953,956
Accounts receivable1,6712,742
Total Assets$3,212,860$3,241,046
LIABILITIES & EQUITY
Mortgages, loans payable and other obligations, net1,853,1491,853,897
Dividends and distributions payable5,6425,540
Accounts payable, accrued expenses and other liabilities53,83955,492
Rents received in advance and security deposits12,23414,985
Accrued interest payable6,4866,580
Total Liabilities1,931,3501,936,494
Redeemable noncontrolling interests9,29424,999
Total Stockholders’ Equity
1,132,2311,137,478
Noncontrolling interests in subsidiaries:
Operating Partnership106,544107,206
Consolidated joint ventures33,44134,869
Total Noncontrolling Interests in Subsidiaries$139,985$142,075
Total Equity$1,272,216$1,279,553
Total Liabilities and Equity$3,212,860$3,241,046


7

Consolidated Statement of Operations
(In thousands, except per share amounts) (unaudited) 1

Three Months Ended March 31,
REVENUES20242023
Revenue from leases$60,642$56,097
Real estate services922911
Parking income3,7453,728
Other income2,0311,862
Total revenues67,34062,598
EXPENSES
Real estate taxes9,1779,559
Utilities2,2712,063
Operating services12,57011,383
Real estate services expenses5,2421,943
General and administrative11,08810,281
Transaction related costs5161,027
Depreciation and amortization20,11721,788
Land and other impairments, net—3,396
Total expenses60,98161,440
OTHER (EXPENSE) INCOME
Interest expense(21,500)(22,014)
Interest and other investment income538116
Equity in earnings (losses) of unconsolidated joint ventures254(68)
Gain (loss) on disposition of developable land784(22)
Gain (loss) on sale of unconsolidated joint venture interests7,100—
Other income (expense), net2551,998
Total other (expense) income, net
(12,569)(19,990)
Loss from continuing operations before income tax expense(6,210)(18,832)
Provision for income taxes(59)—
Loss from continuing operations after income tax expense(6,269)(18,832)
Income from discontinued operations2521,822
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net1,548780
Total discontinued operations, net1,8002,602
Net loss(4,469)(16,230)
Noncontrolling interest in consolidated joint ventures495587
Noncontrolling interests in Operating Partnership of income from continuing operations5232,277
Noncontrolling interests in Operating Partnership in discontinued operations(155)(241)
Redeemable noncontrolling interests(297)(6,366)
Net loss available to common shareholders$(3,903)$(19,973)
Basic earnings per common share:
Net loss available to common shareholders$(0.04)$(0.27)
Diluted earnings per common share:
Net loss available to common shareholders$(0.04)$(0.27)
Basic weighted average shares outstanding92,27591,226
Diluted weighted average shares outstanding(6)
100,968100,526
    






8
FFO, Core FFO and Core AFFO



(in thousands, except per share/unit amounts)
Three Months Ended March 31,
20242023
Net loss available to common shareholders
$(3,903)$(19,973)
Add (deduct): Noncontrolling interests in Operating Partnership(523)(2,277)
Noncontrolling interests in discontinued operations155241 
Real estate-related depreciation and amortization on continuing operations(1)
22,63124,129 
Real estate-related depreciation and amortization on discontinued operations6686,815 
Continuing operations: Gain on sale from unconsolidated joint ventures(7,100)— 
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net(1,548)(780)
FFO(2)
$10,380$8,155
Add/(Deduct):
Loss from extinguishment of debt, net—12 
Land and other impairments—3,396 
 (Gain) Loss on disposition of developable land(784)22 
Rebranding and Severance/Compensation related costs (G&A)1,6371,148 
Rebranding and Severance/Compensation related costs (RE Services)1,526— 
Amortization of derivative premium9041,133
Transaction related costs5161,027
Core FFO$14,179$14,893
Add (Deduct) Non-Cash Items:
Straight-line rent adjustments(3)
25(1,253)
Amortization of market lease intangibles, net(7)(30)
Amortization of lease inducements715
Amortization of stock compensation3,7272,877
Non-real estate depreciation and amortization210384
Amortization of deferred financing costs1,2421,211
Deduct:
Non-incremental revenue generating capital expenditures:
Building improvements(1,040)(2,092)
Tenant improvements and leasing commissions(4)
(9)(352)
Tenant improvements and leasing commissions on space vacant for more than one year—(736)
Core AFFO(2)
$18,334$14,917
Funds from Operations per share/unit-diluted
$0.10$0.08
Core Funds from Operations per share/unit-diluted$0.14$0.15
Dividends declared per common share$0.0525—



9

Adjusted EBITDA and EBITDAre
($ in thousands) (unaudited)



Three Months Ended March 31,
20242023
Core FFO (calculated on a previous page)$14,179$14,893
Deduct:
Equity in (earnings) loss of unconsolidated joint ventures(459)68
Equity in earnings share of depreciation and amortization(2,724)(2,576)
Add-back:
Interest expense21,50022,836
Amortization of derivative premium(904)(1,133)
Recurring joint venture distributions1,7011,547
Noncontrolling interests in consolidated joint ventures(495)(587)
Redeemable noncontrolling interests2976,366
Income tax expense8251
Adjusted EBITDA$33,177$41,465
Add/(Deduct):
Noncontrolling interests in Operating Partnership of income from continuing operations(523)(2,277)
Noncontrolling interests in Operating Partnership in discontinued operations155241
Noncontrolling interests in consolidated joint ventures(a)
(495)(587)
Redeemable noncontrolling interests2976,366
Interest expense21,50022,836
Income tax expense8251
Depreciation and amortization20,78528,754
Deduct:
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net(1,548)(780)
Equity in (earnings) loss of unconsolidated joint ventures(254)68
Add:
Company's share of property NOI's in unconsolidated joint ventures(1)
7,72813,381
EBITDAre$43,824$48,080
Add:
Loss from extinguishment of debt, net—12
Severance and compensation-related costs1,6371,148
Transaction related costs
5161,027
Land and other impairments, net—3,396
Gain on disposition of developable land(784)22
Amortization of derivative premium9041,133
Adjusted EBITDAre$46,097$54,818
Net debt at period end(5)
$1,714,800$1,763,369
Net debt to Adjusted EBITDA12.9x10.6x


10
Components of Net Asset Value
($ in thousands)



Real Estate PortfolioOther Assets
Operating Multifamily NOI1 Total  At Share Cash and Cash Equivalents2$142,180
New Jersey Waterfront$165,056$140,266Restricted Cash25,649
Massachusetts25,08025,080Other Assets49,212
Other30,27622,329Subtotal Other Assets$217,041
Total Multifamily NOI$220,412$187,676
Commercial NOI34,5883,712Liabilities and Other Considerations
Total NOI$225,000$191,387
Operating - Consolidated Debt at Share$1,793,947
Non-Strategic AssetsOperating - Unconsolidated Debt at Share 297,806
Other Liabilities78,201
Non-Strategic Assets Under Binding Contract4$28,000Revolving Credit Facility5—
Estimated Land Value6187,311
Term Loan5
—
Subtotal Non-Strategic Assets$215,311Preferred Units9,294
Subtotal Liabilities and Other Considerations$2,179,248
Outstanding Shares7
Diluted Weighted Average Shares Outstanding for 1Q 2024100,967,737

1 See Multifamily Operating Portfolio page for more details. The Real Estate Portfolio table is reflective of the quarterly NOI annualized.
2 Pro forma cash as of April 22, 2024, for transaction activity that occurred subsequent to quarter end.
3 See Commercial Assets and Developable Land page for more details.
4 Represents the estimated gross price of two land parcels, 6 Becker and 85 Livingston.
5 The prior facility comprised of a $115 million term loan and $60 million revolver was terminated on April 22, 2024. The Company simultaneously secured a $500 million facility comprised of a $300 million revolver and $200 million delayed-draw term loan. The facility has a three-year term with a one-year extension option and a $200 million accordion feature.
6 Based off 4,139 potential units, see Commercial Assets and Developable Land page for more details.
7 Common Shares Outstanding as of March 31, 2024 were 92,385,167.

11
Multifamily Operating Portfolio





(in thousands, except Revenue per home)     

Operating Highlights
Percentage
Occupied
Average Revenue
per Home		NOI
Debt
Balance
OwnershipApartments1Q 20244Q 20231Q 20244Q 20231Q 20244Q 2023
NJ Waterfront
Haus25100.0%75091.4%94.1%$4,788$4,665$7,279$6,884$343,061
Liberty Towers100.0%64894.7%93.2%4,2214,2204,6654,930265,000
BLVD 40174.3%31195.0%97.4%4,1344,1382,4702,427117,000
BLVD 42574.3%41295.7%95.6%3,9953,9873,1033,038131,000
BLVD 475100.0%52396.4%96.5%4,0634,0784,6754,180165,000
Soho Lofts100.0%37795.9%94.4%4,7184,6272,9052,616158,034
Urby Harborside85.0%76290.7%92.3%4,0724,0145,3185,370185,017
RiverHouse 9100.0%31394.8%96.2%4,2424,1482,8992,358110,000
RiverHouse 11100.0%29595.9%94.6%4,4054,1772,5182,140100,000
RiverTrace22.5%31694.5%95.6%3,8043,7112,2732,18482,000
Capstone 40.0%36096.6%95.0%4,3394,3793,1592,973135,000
NJ Waterfront Subtotal
85.0%5,06794.2%94.6%$4,274$4,219$41,264$39,100$1,791,112
Massachusetts
Portside at East Pier100.0%18194.4%94.9%$3,206$3,174$1,159$1,163$56,500
Portside 2 at East Pier100.0%29695.7%96.2%3,3283,3841,9972,03496,613
145 Front at City Square100.0%36594.2%92.9%2,5312,5761,5491,60862,746
The Emery100.0%32696.1%92.3%2,7302,7601,5651,51571,758
Massachusetts Subtotal
100.0%1,16895.1%93.9%$2,893$2,925$6,270$6,320$287,617
Other
The Upton100.0%19391.8%91.7%$4,614$4,752$1,417$1,475$75,000
The James100.0%24093.9%96.3%3,0273,0521,3801,330—
Signature Place100.0%19795.8%97.5%3,1573,1741,01797443,000
Quarry Place at Tuckahoe100.0%10893.9%93.5%4,3524,32170770941,000
Riverpark at Harrison45.0%14192.9%92.2%2,8862,88551457730,192
Metropolitan at 40 Park125.0%13089.9%95.4%3,6753,61371172134,100
Station House50.0%37891.5%92.1%2,8732,5621,8231,71388,927
Other Subtotal
73.8%1,38792.7%94.0%$3,374$3,307$7,569$7,499$312,219
Operating Portfolio2,3
85.2%7,62294.1%94.4%$3,899$3,855$55,103$52,919$2,390,948
Metropolitan Lofts4$81$319$—
Total Portfolio$55,184$53,238$2,390,948


1 As of March 31, 2024, Priority Capital included Metropolitan at $23.3M (Prudential).
2 Excludes approximately 189,367 sqft of ground floor retail of which 140,522 sf was leased as of March 31, 2024.
4 In January 2024, the Company's joint venture sold Lofts at 40 Park ("Metropolitan Lofts") thus it is excluded from same store calculations. Proceeds from the sale were used to repay the outstanding loan balance.
                                                            12
Commercial Assets and Developable Land







($ in thousands)
CommercialLocationOwnership
Rentable
SF
Percentage
Leased
1Q 2024
Percentage
Leased
4Q 2023
NOI
1Q 2024
NOI
4Q 2023
Debt
Balance
Port Imperial Garage SouthWeehawken, NJ70.0%320,426N/AN/A$468$517$31,511
Port Imperial Garage NorthWeehawken, NJ100.0%304,617N/AN/A(57)36—
Port Imperial Retail SouthWeehawken, NJ70.0%18,064100.0%100.0%202185—
Port Imperial Retail NorthWeehawken, NJ100.0%8,400100.0%100.0%72373—
Riverwalk at Port ImperialWest New York, NJ100.0%30,42673.2%59.2%177221—
Shops at 40 ParkMorristown, NJ25.0%50,97369.0%69.0%2852676,067
Commercial Total80.9%732,90677.8%73.8%$1,147$1,599$37,578




Developable Land Parcels1
NJ Waterfront22,351
Massachusetts849
Other1,378
Developable Land Parcels Total    4,578
Under Binding Contract for Sale439
Total Less Under Binding Contract4,139








1 The Company has an additional 13,775 SF of potential retail space within land developments that is not represented in this table.
2 Reflects the sale of 107 Morgan subsequent to quarter end.
13

Same Store Market Information1





Sequential Quarter Comparison

(NOI in thousands)                     

NOI at ShareOccupancy
Blended Lease Rate2
Apartments1Q 20244Q 2023Change1Q 20244Q 2023Change1Q 20244Q 2023
New Jersey Waterfront5,067$36,697$34,7545.6%94.2%94.6%(0.4)%4.1%7.7%
Massachusetts1,1686,5206,572(0.8)%95.1%93.9%1.2%2.9%0.5%
Other31,3876,1706,0891.3%92.7%94.0%(1.3)%4.8%4.6%
Total7,622$49,387$47,4154.2%94.1%94.4%(0.3)%4.6%6.1%





Year-over-Year First Quarter Comparison

(NOI in thousands)

NOI at Share
Occupancy
Blended Lease Rate2
Apartments1Q 20241Q 2023Change1Q 20241Q 2023Change1Q 20241Q 2023
New Jersey Waterfront5,067$36,697$31,15917.8%94.2%96.2%(2.0)%4.1%13.2%
Massachusetts1,1686,5206,1555.9%95.1%95.5%(0.4)%2.9%4.2%
Other3
1,3876,1705,9144.3%92.7%94.8%(2.1)%4.8%3.6%
Total7,622$49,387$43,22814.2%94.1%95.9%(1.8)%4.6%10.2%





Average Revenue per Home (based on 7,622 units from 1Q23 to Present)


1Q 20244Q 20233Q 20232Q 20231Q 20231Q 20224
New Jersey Waterfront$4,274$4,219$4,084$4,048$3,919$3,298
Massachusetts2,8932,9252,9182,8362,7982,554
Other3
3,3743,3073,3503,3563,2272,930
Total$3,899$3,855$3,772$3,736$3,622$3,103
1 All statistics are based off the current 7,622 Same Store pool. Same Store 4Q23 was 6,691 and before 2023 the actual pool was 5,825 units when initially reported.
2 Blended lease rates exclude properties not managed by Veris.
3 "Other" includes properties in Suburban NJ, New York, and Washington, DC. See Multifamily Operating Portfolio page for breakout.
4 The total portfolio included 6,691 units in 2022. The average revenue per home is based on the total portfolio less Metropolitan Lofts for 1Q 2022.
14
Same Store Performance
($ in thousands)





Multifamily Same Store1
Three Months Ended March 31,Sequential
20242023Change%1Q244Q23Change%
Apartment Rental Income$66,697$61,873$4,8247.8%$66,697$66,597$1000.2%
Parking/Other Income7,3956,1901,20519.5%7,3956,8875087.4%
Total Property Revenues2$74,092$68,063$6,0298.9%$74,092$73,484$6080.8%
Marketing & Administration2,1382,345(207)(8.8)%2,1382,559(421)(16.5)%
Utilities2,5732,4241496.1%2,5732,19038317.5%
Payroll4,2984,445(147)(3.3)%4,2984,667(369)(7.9)%
Repairs & Maintenance3,6133,3033109.4%3,6134,431(818)(18.5)%
Controllable Expenses$12,622$12,517$1050.8%$12,622$13,847$(1,225)(8.8)%
Other Fixed Fees72271750.7%722737(15)(2.0)%
Insurance1,7801,781(1)(0.1)%1,7801,744362.1%
Real Estate Taxes9,5819,820(239)(2.4)%9,5819,741(160)(1.6)%
Non-Controllable Expenses$12,083$12,318$(235)(1.9)%$12,083$12,222$(139)(1.1)%
Total Property Expenses$24,705$24,835$(130)(0.5)%$24,705$26,069$(1,364)(5.2)%
Same Store GAAP NOI
$49,387$43,228$6,15914.2%$49,387$47,415$1,9724.2%
Real Estate Tax Adjustments3—(490)490———
Normalized Same Store NOI$49,387$43,718$5,66913.0%$49,387$47,415$1,9724.2%
Total Units
7,6227,6227,6227,622
% Ownership
85.2%85.2%85.2%85.2%
% Occupied - Quarter End
94.1%95.9%(1.8)%94.1%94.4%(0.3)%
1 Values represent the Company`s pro rata ownership of the operating portfolio. The James and Haus25 were added to the Same Store pool in 1Q 2024.
2 Revenues reported based on Generally Accepted Accounting Principals or "GAAP".
3 Represents tax settlements and final tax rate adjustments recognized that are applicable to prior periods.

15

Debt Profile



($ in thousands)

Lender
Effective
Interest Rate(1)
March 31, 2024December 31, 2023Date of
Maturity
Secured Permanent Loans
Signature PlaceNationwide Life Insurance Company3.74%43,00043,00008/01/24
Liberty TowersAmerican General Life Insurance Company3.37%265,000265,00010/01/24
Portside 2 at East PierNew York Life Insurance Co.4.56%96,61397,00003/10/26
BLVD 425New York Life Insurance Co.4.17%131,000131,00008/10/26
BLVD 401New York Life Insurance Co.4.29%117,000117,00008/10/26
Portside at East Pier(2)
KKRSOFR + 2.75%56,50056,50009/07/26
The Upton(3)
Bank of New York MellonSOFR + 1.58%75,00075,00010/27/26
145 Front at City Square(4)
US BankSOFR + 1.84%62,74663,00012/10/26
RiverHouse 9(5)
JP MorganSOFR + 1.41%110,000110,00006/21/27
Quarry Place at TuckahoeNatixis Real Estate Capital, LLC4.48%41,00041,00008/05/27
BLVD 475The Northwestern Mutual Life Insurance Co.2.91%165,000165,00011/10/27
Haus25Freddie Mac6.04%343,061343,06109/01/28
RiverHouse 11The Northwestern Mutual Life Insurance Co.4.52%100,000100,00001/10/29
Soho LoftsFlagstar Bank3.77%158,034158,77707/01/29
Port Imperial Garage SouthAmerican General Life & A/G PC4.85%31,51131,64512/01/29
The Emery
Flagstar Bank
3.21%71,75872,00001/01/31
Principal Balance Outstanding$1,867,223$1,868,983
Unamortized Deferred Financing Costs(14,074)(15,086)
Total Secured Permanent Loans$1,853,149$1,853,897
Secured RCF & Term Loans:
Revolving Credit FacilityJP Morgan & Goldman SachsSOFR + 4.10%$—$—07/25/24
Term LoanJP Morgan & Goldman SachsSOFR + 4.10%——07/25/24
Total RCF & Term Loan Debt(6)
$—$—
Total Debt$1,853,149$1,853,897







16
Debt Summary and Maturity Schedule
        



As of March 31, 99.9% of the Company`s total pro forma debt portfolio (consolidated and unconsolidated) is hedged or fixed. The Company`s total debt portfolio has a weighted average interest rate of 4.4% and a weighted average maturity of 3.5 years.

($ in thousands)     
Balance%
of Total		Weighted Average
Interest Rate		Weighted Average
Maturity in Years
Fixed Rate & Hedged Debt
Fixed Rate & Hedged Secured Debt$1,867,223100.0%4.34%3.2
Variable Rate Debt
Variable Rate Debt1——%—%—
Totals / Weighted Average$1,867,223100.0%4.34%3.2
Unamortized Deferred Financing Costs(14,074)
Total Consolidated Debt, net$1,853,149
Partners’ Share(73,276)
VRE Share of Total Consolidated Debt, net2$1,779,873
Unconsolidated Secured Debt
VRE Share$297,80653.1%4.89%5.0
Partners’ Share263,49746.9%4.89%5.0
Total Unconsolidated Secured Debt$561,303100.0%4.89%5.0
Pro Rata Debt Portfolio
Fixed Rate & Hedged Secured Debt$2,090,23699.9%4.42%3.5
Variable Rate Secured Debt1,5170.1%7.31%0.8
Total Pro Rata Debt Portfolio$2,091,753100.0%4.42%3.5



Pro Forma Debt Maturity Schedule3
chart-9b5b129576c5480a9fa.jpg    

1 Variable rate debt includes the Revolver and reflects the balances on the Revolver and Term Loan.
2 Minority interest share of consolidated debt is comprised of $33.7 million at BLVD 425, $30.1 million at BLVD 401 and $9.5 million at Port Imperial South Garage.
3 The Unused Term Loan and Unused Revolver Capacity balances are shown with the one-year extension option utilized on the new facilities.
17
Annex 1: Transaction Activity






2024 Dispositions to Date
$ in thousands except per SF
Location
Transaction
Date
Number of BuildingsSF
Gross Asset
Value
Land
2 Campus Drive
Parsippany-Troy Hills, NJ
1/3/2024N/AN/A$9,700
107 MorganJersey City, NJ4/16/2024N/AN/A54,000
Subtotal Land$63,700
Multifamily
Metropolitan Lofts1Morristown, NJ1/12/2024154,683$30,300
Subtotal Multifamily154,683$30,300
Office
Harborside 5Jersey City, NJ3/20/20241977,225$85,300
Subtotal Office1977,225$85,300
2024 Dispositions to Date$179,300

1 The joint venture sold the property; releasing approximately $6 million of net proceeds to the Company.
18
Annex 2: Reconciliation of Net Income (Loss) to NOI (three months ended)





1Q 20244Q 2023
TotalTotal
Net Income (Loss)$(4,469)$(5,746)
Deduct:
Income from discontinued operations(252)33,489 
Realized gains and unrealized gains on disposition of rental property and impairments, net(1,548)(43,970)
Real estate services income(922)(1,084)
Interest and other investment income(538)(232)
Equity in (earnings) losses of unconsolidated joint ventures(254)(260)
(Gain) loss on disposition of developable land(784)(7,090)
Loss from extinguishment of debt, net— 1,903 
Realized gains (losses) and unrealized gains (losses) on disposition of rental property, net— 2 
Gain on sale of unconsolidated joint venture interests(7,100)— 
Other income, net(255)(77)
Add:
Real estate services expenses5,242 4,323 
General and administrative11,088 9,990 
Transaction related costs516 576 
Depreciation and amortization20,117 21,227 
Interest expense21,500 21,933 
Provision for income taxes59 199 
Land impairments and other impairments, net— 5,928 
Net Operating Income (NOI)$42,400 $41,111 


Summary of Consolidated Multifamily NOI by Type (unaudited):1Q 20244Q 2023
Total Consolidated Multifamily - Operating Portfolio$41,305 $39,381 
Total Consolidated Commercial862 1,332 
Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests)$42,167 $40,713 
NOI (loss) from services, land/development/repurposing & other assets875 660 
Total Consolidated Multifamily NOI$43,042 $41,373 















19
Annex 3: Consolidated Statement of Operations and Non-GAAP Financial Footnotes



FFO, Core FFO, AFFO, NOI, Adjusted EBITDA, & EBITDAre

1.Includes the Company’s share from unconsolidated joint ventures, and adjustments for noncontrolling interest of $2.7 million and $2.6 million for the three months ended March 31, 2024 and 2023, respectively. Excludes non-real estate-related depreciation and amortization of $0.2 million for the three months ended March 31, 2024 and 2023, respectively.
2.Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (Nareit). See Non-GAAP Financial Definitions for information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre.
3.Includes the Company's share from unconsolidated joint ventures of $9.3 thousand and $26.6 thousand for the three months ended March 31, 2024 and 2023, respectively.
4.Excludes expenditures for tenant spaces in properties that have not been owned by the Company for at least a year.
5.Net Debt calculated by taking the sum of secured revolving credit facility, secured term loan, and mortgages, loans payable and other obligations, and deducting cash and cash equivalents and restricted cash, all at period end.
6.Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares 8,418 and 9,146 shares for the three months ended March 31, 2024 and 2023, respectively, plus dilutive Common Stock Equivalents (i.e. stock options).



20
Annex 4: Unconsolidated Joint Ventures

($ in thousands)
PropertyUnitsPhysical
Occupancy		VRE's Nominal
Ownership1		1Q 2024
NOI2		Total
Debt		VRE Share
of 1Q NOI		VRE Share
of Debt
Multifamily
Urby Harborside76290.7%85.0%$5,318$185,017$4,520$157,264
RiverTrace at Port Imperial31694.5%22.5%2,27382,00051118,450
Capstone at Port Imperial36096.6%40.0%3,159135,0001,26454,000
Riverpark at Harrison14192.9%45.0%51430,19223113,586
Metropolitan at 40 Park13089.9%25.0%71134,1001788,525
Station House37891.5%50.0%1,82388,92791244,464
Total Multifamily2,08792.5%55.0%$13,798$555,236$7,616$296,289
Retail
Shops at 40 ParkN/A69.0%25.0%2856,067711,517
Total RetailN/A69.0%25.0%$285$6,067$71$1,517
Total UJV$14,083$561,303$7,687$297,806
Metropolitan Lofts38141
Total UJV Adjusted$14,164$7,728
1 Amounts represent the Company's share based on ownership percentage.
2 The sum of property level revenue, straight line and ASC 805 adjustments; less: operating expenses, real estate taxes and utilities.
3 Metropolitan Lofts sold on January 12, 2024.
21
Annex 5: Debt Profile Footnotes
            


1.Effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.
2.The loan on Portside at East Pier is capped at a strike rate of 3.5%, expiring in September 2026.
3.The loan on Upton is capped at a strike rate of 1.0%, expiring in October 2024.
4.The loan on 145 Front Street is capped at a strike rate of 4.0%, expiring in June 2024. Subsequent to quarter end, the Company noticed the lender of its intention to prepay the loan in May 2024. After the loan is repaid, the Company plans to contribute the asset to the collateral pool of its new facility package.
5.The loan on RiverHouse 9 is capped at a strike rate of 3.0%, expiring in June 2024.
6.On April 22, 2024, the Company terminated its existing facility comprised of a $115 million term loan and $60 million revolver. The Company simultaneously secured a $500 million facility with a group of eight lenders, comprised of a $300 million revolver and $200 million delayed-draw term loan. The facility has a three-year term ending April 2027, with a one-year extension option. For more details on the facility please refer to the terms outlined in the first quarter 2024 10-Q.



Back to Debt Profile page.






































22
Annex 6: Multifamily Property Information




LocationOwnershipApartmentsRentable SFAverage SizeYear Complete
NJ Waterfront
Haus25Jersey City, NJ100.0%750617,7878242022
Liberty TowersJersey City, NJ100.0%648602,2109292003
BLVD 401Jersey City, NJ74.3%311273,1328782016
BLVD 425Jersey City, NJ74.3%412369,5158972003
BLVD 475Jersey City, NJ100.0%523475,4599092011
Soho LoftsJersey City, NJ100.0%377449,0671,1912017
Urby HarborsideJersey City, NJ85.0%762474,4766232017
RiverHouse 9Weehawken, NJ100.0%313245,1277832021
RiverHouse 11Weehawken, NJ100.0%295250,5918492018
RiverTraceWest New York, NJ22.5%316295,7679362014
CapstoneWest New York, NJ40.0%360337,9919392021
NJ Waterfront Subtotal
85.0%5,0674,391,122867
Massachusetts
Portside at East PierEast Boston, MA100.0%181156,0918622015
Portside 2 at East PierEast Boston, MA100.0%296230,6147792018
145 Front at City SquareWorcester, MA100.0%365304,9368352018
The EmeryRevere, MA100.0%326273,1408382020
Massachusetts Subtotal
100.0%1,168964,781826
Other
The UptonShort Hills, NJ100.0%193217,0301,1252021
The JamesPark Ridge, NJ100.0%240215,2838972021
Signature PlaceMorris Plains, NJ100.0%197203,7161,0342018
Quarry Place at TuckahoeEastchester, NY100.0%108105,5519772016
Riverpark at HarrisonHarrison, NJ45.0%141124,7748852014
Metropolitan at 40 ParkMorristown, NJ25.0%130124,2379562010
Station HouseWashington, DC50.0%378290,3487682015
Other Subtotal
73.8%1,3871,280,939924
Operating Portfolio
85.2%7,6226,636,842871
Metropolitan Lofts1Morristown, NJ50.0%5954,6839272018
Operating Portfolio 4Q2385.0%7,6816,691,525871




1 Metropolitan Lofts sold on January 12, 2024.
22                                                                         
Annex 7: Noncontrolling Interests in Consolidated Joint Ventures



Three Months Ended March 31,
20242023
BLVD 425$80 $17 
BLVD 401(552)(558)
Port Imperial Garage South(26)(45)
Port Imperial Retail South 34 25 
Other consolidated joint ventures(31)(26)
Net losses in noncontrolling interests$(495)$(587)
Depreciation in noncontrolling interests721 712 
Funds from operations - noncontrolling interest in consolidated joint ventures$226 $125 
Interest expense in noncontrolling interest in consolidated joint ventures788 792 
Net operating income before debt service in consolidated joint ventures$1,014 $917 




24
Non-GAAP Financial Definitions

NON-GAAP FINANCIAL MEASURES
Included in this financial package are Funds from Operations, or FFO, Core Funds from Operations, or Core FFO, net operating income, or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or Adjusted EBITDA, and EBIDAre or Earnings Before Interest, Taxes, Depreciation, Amortization and Rent Costs, each a “non-GAAP financial measure,” measuring Veris Residential, Inc.’s historical or future financial performance that is different from measures calculated and presented in accordance with generally accepted accounting principles (“U.S. GAAP”), within the meaning of the applicable Securities and Exchange Commission rules. Veris Residential, Inc. believes these metrics can be a useful measure of its performance which is further defined.

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted "EBITDA")
The Company defines Adjusted EBITDA as Core FFO, plus interest expense, plus income tax expense, plus income (loss) in noncontrolling interest in consolidated joint ventures, and plus adjustments to reflect the entity's share of Adjusted EBITDA of unconsolidated joint ventures. The Company presents Adjusted EBITDA because the Company believes that Adjusted EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

Blended Net Rental Growth Rate or Blended Lease Rate
Weighted average of the net effective change in rent (inclusive of concessions) for a lease with a new resident or for a renewed lease compared to the rent for the prior lease of the identical apartment unit.
Core FFO and Adjusted FFO ("AFFO")
Core FFO is defined as FFO, as adjusted for certain items to facilitate comparative measurement of the Company's performance over time. Adjusted FFO ("AFFO") is defined as Core FFO less (i) recurring tenant improvements, leasing commissions, and capital expenditures, (ii) straight-line rents and amortization of acquired above/below market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges. Core FFO and Adjusted AFFO are presented solely as supplemental disclosure that the Company's management believes provides useful information to investors and analysts of its results, after adjusting for certain items to facilitate comparability of its performance from period to period. Core FFO and Adjusted FFO are non-GAAP financial measures that are not intended to represent cash flow and are not indicative of cash flows provided by operating activities as determined in accordance with GAAP. As there is not a generally accepted definition established for Core FFO and Adjusted FFO, the Company's measures of Core FFO may not be comparable to the Core FFO and Adjusted FFO reported by other REITs. A reconciliation of net income per share to Core FFO and Adjusted FFO in dollars and per share are included in the financial tables accompanying this press release.

Earnings Before Interest, Tax, Depreciation, Amortization, and Rent Costs ("EBITDAre")
The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of Nareit in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. The Company presents EBITDAre, because the Company believes that EBITDAre, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.


Funds From Operations ("FFO")
FFO is defined as net income (loss) before noncontrolling interests in Operating Partnership, computed in accordance with U.S. GAAP, excluding gains or losses from depreciable rental property transactions (including both acquisitions and dispositions), and impairments related to depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from property transactions and impairments related to depreciable rental property (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs.
25            
Non-GAAP Financial Definitions
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.
26            
Company Information



Company Information
Corporate HeadquartersStock Exchange ListingContact Information
Veris Residential, Inc.New York Stock ExchangeVeris Residential, Inc.
210 Hudson St., Suite 400Investor Relations Department
Jersey City, New Jersey 07311Trading Symbol210 Hudson St., Suite 400
(732) 590-1010Common Shares: VREJersey City, New Jersey 07311
Anna Malhari
Chief Operating Officer
E-Mail: amalhari@verisresidential.com
Web: www.verisresidential.com
Executive Officers
Mahbod NiaAmanda LombardTaryn Fielder
Chief Executive OfficerChief Financial OfficerGeneral Counsel and Secretary
Anna MalhariJeff Turkanis
Chief Operating OfficerEVP & Chief Investment Officer
Equity Research Coverage
Bank of America Merrill LynchBTIG, LLCCitigroup
Josh DennerleinThomas CatherwoodNicholas Joseph
Evercore ISIGreen Street Advisors JP Morgan
Steve SakwaJohn PawlowskiAnthony Paolone
Truist
Michael R. Lewis
                                                         27