Veris Residential : Earnings Release and Supplemental Q1 2025
VRE
Table Of Contents
Page(s)
Operating Portfolio
23
Annex 7: Noncontrolling Interests in Consolidated Joint Ventures
V E R I S R E S I D E N T I A L, I N C.
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NEWS RELEASE
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For Immediate Release
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Veris Residential, Inc.
Reports First Quarter 2025 Results
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JERSEY CITY, N.J., April 23, 2025 -- Veris Residential, Inc. (NYSE: VRE) (the "Company"), a forward-thinking, Northeast-focused, Class A multifamily REIT, today reported results for the first quarter 2025.
Three Months Ended March 31,
2025
2024
Net Income (loss) per Diluted Share
$(0.12)
$(0.04)
Core FFO per Diluted Share
$0.16
$0.14
Core AFFO per Diluted Share
$0.17
$0.18
Dividend per Diluted Share
$0.08
$0.0525
FIRST QUARTER UPDATE
Mahbod Nia, Chief Executive Officer, commented, "During the first quarter, Veris Residential continued to achieve strong operational results while advancing the corporate plan announced earlier this year. With a combined $79 million of non-strategic asset sales either closed or under binding contract this year, we continue to unlock value embedded within the Company, despite elevated levels of market volatility.
"In parallel, we further simplified our portfolio, consolidating our interest in the Jersey City Urby, now Sable, assuming management of the property. Leveraging the Veris Residential platform, we expect the property to realize over $1 million of annualized synergies on a run-rate basis."
SAME STORE PORTFOLIO PERFORMANCE
March 31, 2025
December 31, 2024
Change
Same Store Units
7,621
7,621
-%
Same Store Occupancy
94.0%
93.9%
0.1%
Same Store Blended Rental Growth Rate (Quarter)
2.4%
0.5%
1.9%
Average Rent per Home
$4,019
$4,033
(0.3)%
The following table shows Same Store performance:
($ in 000s)
Three Months Ended March 31,
2025
2024
%
Total Property Revenue
$75,761
$73,978
2.4%
Controllable Expenses
13,046
12,607
3.5%
Non-Controllable Expenses
11,822
12,057
(1.9)%
Total Property Expenses
24,868
24,664
0.8%
Same Store NOI
$50,893
$49,314
3.2%
FINANCE AND LIQUIDITY
Substantially all of the Company's debt is hedged or fixed with a weighted average effective interest rate of 4.96% and weighted average maturity of 2.8 years. Subsequent to quarter-end, the Company consolidated the mortgage on Sable and simultaneously modified it to suspend principal amortization through the remaining term.
Balance Sheet Metric ($ in 000s)
March 31, 2025
December 31, 2024
Weighted Average Interest Rate
4.96%
4.95%
Weighted Average Years to Maturity
2.8
3.1
TTM Interest Coverage Ratio
1.7x
1.7x
Net Debt
$1,643,411
$1,647,892
TTM EBITDA
$144,191
$140,694
TTM Net Debt to EBITDA
11.4x
11.7x
As of April 21, 2025, the Company had liquidity of approximately $146 million, including funds available on the revolver and cash on hand.
TRANSACTION ACTIVITY
Year to date, the Company has closed on $45 million of non-strategic asset sales, including two unconsolidated joint ventures. An additional $34 million across two land parcels are under binding contract, with an expected close in the first half of 2025.
Name ($ in 000s)
Date
Location
GAV
65 Livingston
1/24/2025
Roseland, NJ
$7,300
Wall Land
4/3/2025
Wall Township, NJ
31,000
PI - North Building (two parcels) and Metropolitan at 40 Park
4/21/2025
West New York, NJ
7,100
and Morristown, NJ
Total Assets Sold in 2025-to-date
$45,400
JV INTEREST ACQUISITION
In April 2025, the Company acquired its joint venture partner's 15% interest in the entity that owns the property now known as "Sable" at Harborside for $38.5 million, including consideration for the tax credit and termination of the management contract. The acquisition was funded through proceeds from non-strategic asset sales.
Upon closing, the Company owned 100% interest in the property, and as a result, consolidated the asset and its corresponding property-level mortgage of $181.8 million. The property-level mortgage was subsequently modified to be an interest-only mortgage.
The Company anticipates over $1 million of annualized synergies as a result of integrating the asset into the Veris platform.
SHARE BUYBACK PROGRAM
The Company announced a $100 million share repurchase program in February. No shares have been repurchased year to date.
DIVIDEND
The Company paid a dividend of $0.08 per share on April 10, 2025, for shareholders of record as of March 31, 2025.
GUIDANCE
The Company is maintaining its guidance for 2025 in accordance with the following table.
2025 Guidance Ranges
LowHigh
Same Store Revenue Growth
2.1%
-
2.7%
Same Store Expense Growth
2.6%
-
3.0%
Same Store NOI Growth
1.7%
-
2.7%
Core FFO per Share Guidance
Low
High
Net Loss per Share
$(0.24)
-
$(0.22)
Depreciation per Share
$0.85
-
$0.85
Core FFO per Share
$0.61
-
$0.63
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for Thursday, April 24, 2025, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com.
The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential first quarter 2025 earnings conference call.
The conference call will be rebroadcast on Veris Residential, Inc.'s website at: http://investors.verisresidential.com beginning at 8:30 a.m. Eastern Time on Thursday, April 24, 2025.
A replay of the call will also be accessible Thursday, April 24, 2025, through Saturday, May 25, 2025, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13751071.
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Copies of Veris Residential, Inc.'s first quarter 2025 Form 10-Q and first quarter 2025 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website under Financial Results.
In͏ 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
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ABOUT THE COMPANY
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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.
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For additional information on Veris Residential, Inc. and our properties available for lease, please visit http:// www.verisresidential.com/.
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The information in this press release must be read in conjunction with, and is modified in its entirety by, the Annual Report on Form 10-K (the "10-K") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public
Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings, available at https://investors.verisresidential.com/financial-information.
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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.
Additional details on Company Informationpage.
Consolidated Balance Sheet
(in thousands) (unaudited)
ASSETS
Rental property
Land and leasehold interests
Buildings and improvements
Tenant improvements
Furniture, fixtures and equipment
Less - accumulated depreciation and amortization
Real estate held for sale, net
Net investment in rental property Cash and cash equivalents Restricted cash
Investments in unconsolidated joint ventures Unbilled rents receivable, net
Deferred charges and other assets, net Accounts receivable
Total Assets
LIABILITIES & EQUITY
Revolving credit facility and term loans
Mortgages, loans payable and other obligations, net Dividends and distributions payable
Accounts payable, accrued expenses and other liabilities Rents received in advance and security deposits Accrued interest payable
Total Liabilities
Redeemable noncontrolling interests
Total Stockholders' Equity
Noncontrolling interests in subsidiaries:
Operating Partnership
Consolidated joint ventures
Total Noncontrolling Interests in Subsidiaries
Total Equity
Total Liabilities and Equity
March 31, 2025
December 31, 2024
$456,789
$458,946
2,627,149
2,634,321
15,067
14,784
113,997
112,201
3,213,002
3,220,252
(451,540)
(432,531)
2,761,462
2,787,721
9,138
7,291
2,770,600
2,795,012
7,596
7,251
14,512
17,059
111,607
111,301
2,409
2,253
43,680
48,476
1,169
1,375
$2,951,573
$2,982,727
345,172
348,839
1,322,036
1,323,474
8,485
8,533
40,648
42,744
11,529
11,512
5,232
5,262
1,733,102
1,740,364
9,294
9,294
1,080,486
1,099,391
99,814
102,588
28,877
31,090
$128,691
$133,678
$1,209,177
$1,233,069
$2,951,573
$2,982,727
7
Consolidated Statement of Operations
(In thousands, except per share amounts) (unaudited)
REVENUES
Revenue from leases
Management fees
Parking income
Other income
Total revenues
EXPENSES
Real estate taxes
Utilities
Operating services
Property management
General and administrative
Transaction-related costs
Depreciation and amortization
Land and other impairments, net
Total expenses
OTHER (EXPENSE) INCOME
Interest expense
Interest and other investment income
Equity in earnings (loss) of unconsolidated joint ventures
Gain (loss) on disposition of developable land
Gain (loss) on sale of unconsolidated joint venture interests
Other income (expense), net
Total other (expense) income, net
Income (loss) from continuing operations before income tax expense
Provision for income taxes
Income (loss) from continuing operations after income tax expense
Income (loss) from discontinued operations
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net
Total discontinued operations, net
Net Income (loss)
Noncontrolling interest in consolidated joint ventures
Noncontrolling interests in Operating Partnership of loss (income) from continuing operations Noncontrolling interests in Operating Partnership in discontinued operations Redeemable noncontrolling interests
Net income (loss) available to common shareholders
Basic earnings per common share:
Net income (loss) available to common shareholders
Diluted earnings per common share:
Net income (loss) available to common shareholders
Basic weighted average shares outstanding
Diluted weighted average shares outstanding(1)
Three Months Ended March 31,
20252024
$61,965 $60,642
718922
3,7493,745
1,3242,031
67,75667,340
9,2129,177
2,8072,271
10,99312,570
4,3855,242
10,06811,088
308516
21,25320,117
3,200-
62,22660,981
(22,960) (21,500)
25538
3,842254
(13,824) (6,210)
(13,866) (6,269)
136252
-1,548
1361,800
(13,730) (4,469)
2,125495
998523
$(0.12)$(0.04)
$(0.12)$(0.04)
93,05992,275
101,690 100,968
See Reconciliation to Net Income (Loss) to NOIpage for more details.
8
FFO, Core FFO and Core AFFO
(in thousands, except per share/unit amounts)
Net loss available to common shareholders
Add/(Deduct):
Noncontrolling interests in Operating Partnership
Noncontrolling interests in discontinued operations
Real estate-related depreciation and amortization on continuing operations(2)
Real estate-related depreciation and amortization on discontinued operations
Continuing operations: Loss (gain) on sale from unconsolidated joint ventures
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net
FFO(3)
Add/(Deduct):
Land and other impairments(4)
(Gain) loss on disposition of developable land
Rebranding and Severance/Compensation related costs (G&A)(5)
Rebranding and Severance/Compensation related costs (Property Management)(6)
Amortization of derivative premium(7)
Derivative mark to market adjustment
Transaction related costs
Core FFO
Add/(Deduct):
Straight-line rent adjustments(8)
Amortization of market lease intangibles, net
Amortization of lease inducements
Amortization of stock compensation
Non-real estate depreciation and amortization
Amortization of deferred financing costs
Add/(Deduct):
Non-incremental revenue generating capital expenditures:
Building improvements
Tenant improvements and leasing commissions(9)
Core AFFO(3)
Funds from Operations per share/unit-diluted
Core Funds from Operations per share/unit-diluted
Core Adjusted Funds from Operations per share/unit-diluted
Dividends declared per common share
See Consolidated Statements of Operations and Non-GAAPFinancial Footnotespage.
See Consolidated Statements of Operationspage.
Three Months Ended March 31,
2025
2024
$
(10,699)
$
(3,903)
23,44522,631
$
11,759
$
10,380
1,600-
156(784)
1681,637
5101,526
1,084904
255-
308516
$
15,840
$
14,179
3,3663,727
150210
1,7071,242
(3,306)(1,040)
$
17,575
$
18,334
$0.12$0.10
$0.16$0.14
$0.17$0.18
$0.08 $0.0525
9
Adjusted EBITDA
($ in thousands) (unaudited)
Three Months Ended March 31,
2025
2024
Core FFO (calculated on a previous page)
$
15,840
$
14,179
Deduct:
Equity in (earnings) loss of unconsolidated joint ventures
(3,842)
(459)
Equity in earnings share of depreciation and amortization
(2,343)
(2,724)
Add:
Interest expense
22,960
21,500
Amortization of derivative premium
(1,084)
(904)
Derivative mark to market adjustment
(255)
-
Recurring joint venture distributions
5,801
1,701
Income (loss) in noncontrolling interest in consolidated joint ventures, net of land and other
(525)
(495)
impairments1
Redeemable noncontrolling interests
81
297
Income tax expense
43
82
Adjusted EBITDA
$
36,675
$
33,177
See Consolidated Statements of Operations and Non-GAAPFinancial Footnotespage.
See Non-GAAPFinancial Definitions.
1See Annex 7for breakout of Noncontrolling interests in consolidated joint ventures.
10
Disclaimer
Veris Residential Inc. published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 20:20 UTC.