Financial Data and Key Metrics Changes - The company reported blended net rental growth of 3.9%, significantly outperforming the national market, with core FFO per share of $0.20, an increase of $0.03 from the previous quarter [3][16] - Core FFO year-to-date is $0.52 per share, compared to $0.49 at the same time last year [16] - Net income available to common shareholders was $0.80 per fully diluted share, reflecting substantial gains from sales during the quarter versus a loss of $0.10 for the prior year [16] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [11] - Average revenue per home increased to $4,255, over 40% premium compared to peers [11] - Occupancy rate was 95.8% excluding Liberty Towers, and overall occupancy was 94.7% [12] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to new supply [4][5] - New York City led the nation in rental growth at 4.8%, supported by limited supply [5] - The Jersey City Waterfront maintained low vacancy levels and rental growth of almost 3% [7] Company Strategy and Development Direction - The company is focused on monetizing select non-strategic assets, raising the sales target from $500 million to $650 million [3][4] - The strategy aims to enhance optionality and explore a wider range of financing strategies, potentially reducing the cost of capital [4] - Continued divestment of non-strategic assets is expected to strengthen the balance sheet and drive earnings growth [3][4] Management's Comments on Operating Environment and Future Outlook - Management noted that softening labor markets and declining consumer sentiment could present headwinds to the sector [5] - The company raised core FFO guidance for the second consecutive quarter to $0.67 to $0.68 per share, reflecting robust year-over-year growth of 12% to 13% [21][22] - The outlook remains positive, with expectations of continued operational performance and strategic asset sales [22] Other Important Information - The company improved its GRESP score by one point to 90, maintaining a five-star rating and ranking first in its peer group [10] - The company has reduced net debt to EBITDA by 15% since the beginning of the year to 10 times [3][20] Q&A Session Summary Question: Follow-up on store guidance ranges - Management explained that Q3 same store NOI growth was an anomaly due to non-controllable expenses and expects to remain within guidance range for Q4 [25][26] Question: Visibility into rental revenue - Management confirmed strong visibility into renewals with only 5% of NOI outstanding to renew, and renewal rates are expected around 4% to 5% [27] Question: Leverage target and future focus - The focus remains on executing the current plan while continuing operational improvements, with potential for further amendments in the future [31][32] Question: Buyer pool for asset sales - Management noted a broader buyer pool for smaller assets, but larger sales have seen a thinner buyer pool [33] Question: Disposition guidance and asset sales - The increase in sales guidance reflects both improved market conditions and the evaluation of additional assets for sale [39][52]

Core Insights - Veris Residential (VRE) reported revenue of $73.44 million for Q3 2025, marking a year-over-year increase of 7.7% [1] - The company's EPS for the same period was $0.20, a significant improvement from -$0.10 a year ago, with an EPS surprise of +33.33% compared to the consensus estimate of $0.15 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $74.99 million, resulting in a surprise of -2.06% [1] Revenue Breakdown - Other income was reported at $1.4 million, slightly below the two-analyst average estimate of $1.44 million, but showed a year-over-year increase of 11.8% [4] - Management fees were reported at $0.52 million, significantly lower than the average estimate of $0.75 million, reflecting a year-over-year decline of 34.1% [4] Stock Performance - Over the past month, Veris shares have returned -6.8%, contrasting with the Zacks S&P 500 composite's increase of +1.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Veris Residential, Inc. reported a significant improvement in financial performance for Q3 2025, with net income per diluted share of $0.80 compared to a loss of $(0.10) in Q3 2024 [2][28] - The company achieved a Core FFO per diluted share of $0.20, up from $0.17 in the same quarter last year, and raised its guidance for Core FFO per share to a range of $0.67 to $0.68 for 2025 [2][10] - The company has successfully executed $542 million in non-core asset sales year-to-date, exceeding its initial target and raising the disposition target to $650 million [4][10] Financial Performance - For the three months ended September 30, 2025, total property revenue increased by 2.2% year-over-year to $68.87 million, while controllable expenses rose by 5.7% [7][30] - Same Store NOI decreased by 2.7% for the quarter but increased by 1.6% year-to-date [7][10] - The company reported a Same Store blended rental growth rate of 3.9% for the quarter and 3.5% year-to-date [10] Operational Highlights - The company achieved a Same Store occupancy rate of 94.7%, up from 93.3% in the previous quarter [6][10] - Veris Residential sold four multifamily properties and one land parcel during Q3, generating $406 million in gross proceeds [8][10] - The company utilized asset sale proceeds to reduce debt by $394 million during the quarter, lowering its Net Debt-to-EBITDA (Normalized) to 10.0x [10][12] Strategic Initiatives - The company is on track to achieve a Net Debt-to-EBITDA (Normalized) of approximately 9.0x upon the anticipated sale of Harborside 8/9 [10] - Veris Residential was recognized as a 2025 Regional Listed Sector Leader and Top Performer by GRESB for its sustainability efforts [10][19] - The company amended its $500 million credit facility to introduce a leverage-based pricing grid, which is expected to enhance financial flexibility [15][16] Dividend Information - The company declared a dividend of $0.08 per share, payable on October 10, 2025 [17][30] - The dividend represents an increase from $0.07 per share in the same period last year [30] Guidance - The company maintained its operational guidance for 2025, projecting Same Store revenue growth between 2.2% and 2.7% [17] - The updated guidance for Core FFO per share reflects a positive adjustment due to one-time tax appeal refunds recognized in Q3 [10][17]

Financial Performance - Total revenues for Q3 2025 reached $73,440,000, an increase of 7.6% compared to $68,175,000 in Q3 2024[27] - Net income for Q3 2025 was $81,326,000, compared to a net loss of $10,907,000 in Q3 2024, marking a significant turnaround[28] - The company reported a basic earnings per share of $0.81 for Q3 2025, compared to a loss of $0.10 per share in Q3 2024[27] - For the three months ended September 30, 2025, net income was $75,237,000, compared to a net loss of $9,692,000 for the same period in 2024, representing a significant turnaround[30] - Net income from continuing operations for the nine months ended September 30, 2025, was $75,548, compared to a net loss of $16,066 in 2024[32] - For the nine months ended September 30, 2025, the net income was $79,439,000, a significant increase compared to a net loss of $12,641,000 for the same period in 2024[42] - Net income for the three months ended September 30, 2025, was $81.3 million, compared to a loss of $10.9 million in 2024, representing an increase of $92.2 million[189] - Net income increased significantly to $79.4 million in 2025, compared to a net loss of $12.6 million in 2024, representing a change of 728.4%[1] Revenue and Expenses - Revenue from leases for the nine months ended September 30, 2025, was $198,938,000, an increase of 8.3% from $183,786,000 in the same period of 2024[27] - Revenue from rental operations increased by $5.5 million, or 8.2%, to $72.9 million for the three months ended September 30, 2025, compared to $67.4 million in 2024[189] - Revenue from rental operations increased by $14.7 million, or 7.3%, to $215.1 million in 2025 compared to 2024[1] - Total expenses for Q3 2025 were $60,720,000, an increase from $57,353,000 in Q3 2024, reflecting a 4.1% rise[35] - Total property expenses increased by $4.5 million, or 21.4%, to $25.3 million, with real estate taxes rising by $1.6 million, or 18.2%[189] - Total property expenses increased by $4.6 million, or 6.7%, totaling $73.4 million in 2025[1] Assets and Liabilities - Total assets decreased to $2,791,763,000 as of September 30, 2025, down from $2,982,727,000 at the end of 2024[26] - Total liabilities decreased to $1,510,632,000 as of September 30, 2025, compared to $1,740,364,000 at the end of 2024[26] - The total assets of the company included restricted cash of $17,042,000 as of September 30, 2025, compared to $19,687,000 as of September 30, 2024[43] - The total carrying value of properties encumbered by mortgages and loans payable was approximately $1.9 billion as of September 30, 2025[107] - The Company’s total mortgages, loans payable, and other obligations netted approximately $1.4 billion as of September 30, 2025, with a weighted average interest rate of 4.77%[114] Equity and Dividends - The company has a total equity of $1,271,837,000 as of September 30, 2025, compared to $1,233,069,000 at the end of 2024[26] - Total equity increased to $1,271,837,000 as of September 30, 2025, up from $1,249,845,000 a year earlier, reflecting a growth of approximately 1.8%[31] - Common stock dividends for the nine months ended September 30, 2025, totaled $22,770,000, compared to $17,222,000 for the same period in 2024, indicating a year-over-year increase of about 32.5%[31] - The Company declared dividends of $0.0800 per share for the nine months ended September 30, 2025, compared to $0.0525, $0.0600, and $0.0700 per share for the same period in 2024, reflecting an increase of approximately 52.4%[56] Cash Flow and Financing Activities - Total cash provided by operating activities increased to $50,498 in 2025 from $40,469 in 2024, representing a growth of approximately 24.9%[32] - Cash flows from investing activities significantly rose to $386,331 in 2025, up from $165,044 in 2024, indicating a growth of approximately 133.5%[32] - The company reported a net cash used in financing activities of $(435,319) in 2025, compared to $(227,623) in 2024, indicating a significant increase in cash outflows[32] - Cash and cash equivalents increased to $8,778 in 2025 from $7,251 in 2024, showing an increase of about 21.0%[34] - Cash and cash equivalents increased by $1.5 million to $25.8 million as of September 30, 2025[217] Investments and Joint Ventures - The company owned or had interests in 17 multifamily rental properties as of September 30, 2025, including 13 multifamily properties and three non-core assets[46] - The Company recognized $2.0 million in management, leasing, and development services for its unconsolidated joint ventures in the nine months ended September 30, 2025[76] - The Company recognized equity in earnings of $4,708,000 for the nine months ended September 30, 2025, an increase from $2,919,000 in 2024[80] - The Company had an aggregate investment of approximately $52.8 million in its equity method joint ventures, which owned four multifamily properties totaling 1,195 apartment units[73] Impairments and Gains - The Company recognized no impairment charges during the three months ended September 30, 2025, but recorded $15.7 million of impairment charges during the nine months ended September 30, 2025, related to three developable land parcels[123] - An impairment charge of $6.9 million was recognized on a multifamily property classified as held for sale located in Park Ridge, NJ, based on its estimated selling price during the nine months ended September 30, 2025[124] - The company recognized net realized gains of $91.0 million on the dispositions of four multifamily properties during the third quarter of 2025[195] - The Company recognized a gain of $35.3 million from the disposition of developable land in 2025, compared to $11.5 million in 2024[209] Debt and Interest - The Company has a $300 million senior secured revolving credit facility and a $200 million senior secured term loan facility, with an outstanding principal balance of $31 million on the revolving credit facility as of September 30, 2025, at an effective interest rate of 5.89%[96] - The Company incurred office and ground lease expenses of $0.7 million for each of the three months ended September 30, 2025, and 2024[133] - Cash paid for interest for the three months ended September 30, 2025, was $20.2 million, compared to $19.6 million for the same period in 2024[113] - Interest expense increased by $5.1 million, or 7.9%, primarily due to the consolidation of Sable[206] Stock and Shareholder Information - The Company did not repurchase any shares during the three and nine months ended September 30, 2025, despite having a $100 million share repurchase program approved[144] - As of September 30, 2025, the Company had 1,530,000 stock options granted and outstanding, all of which are vested, with a weighted average remaining contractual life of approximately 3.0 years[148] - The balance at September 30, 2025, for General Partner capital was $1,156,864, an increase from $1,113,942 in 2024, representing a growth of approximately 3.8%[142]

Financial Performance - For Q3 2025, Veris Residential reported a net income per diluted share of $0.80, compared to a loss of $(0.10) in Q3 2024, marking a significant turnaround[5] - Total revenues for Q3 2025 reached $73,440,000, an increase of 7.4% compared to $68,175,000 in Q3 2024[34] - Net income available to common shareholders for Q3 2025 was $75,237,000, compared to a net loss of $9,692,000 in Q3 2024[36] - Funds from Operations (FFO) for Q3 2025 was $12,510,000, slightly down from $12,804,000 in Q3 2024[36] - Core Funds from Operations (Core FFO) increased to $20,018,000 in Q3 2025 from $16,966,000 in Q3 2024, representing a growth of 17.9%[36] - Total net income for Q3 2025 was $81,326, compared to $11,843 in Q2 2025, indicating a significant increase[69] Operational Metrics - The company achieved a blended net rental growth of 3.9% for the quarter and raised its Core FFO guidance to $0.67 to $0.68 per share, representing a 12.5% increase year-over-year[8] - Same Store NOI growth was reported at 1.6% year-to-date, with a Same Store occupancy rate of 94.7% as of September 30, 2025[10] - Total property revenue for the Same Store portfolio increased by 2.2% year-over-year to $68.87 million for Q3 2025[10] - Apartment rental income for Q3 2025 increased by 1.4% year-over-year to $62,111, while total property revenues rose by 2.2% to $68,870[58] - Occupancy rate for Q3 2025 was 94.7%, down from 95.0% in Q3 2024, but up from 93.3% in Q2 2025[58] Debt and Liquidity - The company reduced its net debt by $394 million during Q3 2025, achieving a Net Debt-to-EBITDA (Normalized) ratio of 10.0x, down from 11.3x in the previous quarter[8] - The company maintained a liquidity of $274 million as of September 30, 2025, with a weighted average effective interest rate of 4.76%[13] - Total debt as of September 30, 2025, was $1,433,537, a decrease from $1,672,313 at the end of 2024[63] - The weighted average interest rate for the total debt portfolio is 4.76% with a weighted average maturity of 2.6 years[62] - Net Debt as of September 30, 2025, stood at $1,407,717 million, with a Net Debt-to-EBITDA ratio of 9.2x[38] Asset Management - Year-to-date, Veris Residential completed or contracted $542 million in non-core asset sales, exceeding its initial target of $500 million, and raised the disposition target to $650 million[7] - Total assets decreased to $2,791,763,000 as of September 30, 2025, from $2,982,727,000 at the end of 2024[32] - Total liabilities reduced to $1,510,632,000 as of September 30, 2025, down from $1,740,364,000 at the end of 2024[32] - The estimated value of land under contract is $75,000 million, with remaining land valued at $35,395 million[42] - The company has 2,174 total developable land parcel units, with 897 units remaining after accounting for land under contract[52] Sustainability and Recognition - The company was recognized as a 2025 Regional Listed Sector Leader and Top Performer by GRESB for its sustainability efforts, maintaining a 5 Star Rating[21] Dividends and Shareholder Returns - The company declared dividends of $0.08 per common share in Q3 2025, up from $0.07 in Q3 2024[36] - The company reported a basic earnings per share of $0.81 for Q3 2025, compared to a loss of $0.10 per share in Q3 2024[34] Expenses and Costs - The company reported a 17.0% increase in real estate taxes for Q3 2025 compared to Q3 2024, amounting to $9,258[58] - The company achieved a 110.1% increase in insurance expenses for Q3 2025 compared to Q3 2024, totaling $1,355[58] - The company’s management fees for Q3 2025 were $523, down from $766 in Q2 2025, indicating a reduction in management costs[69] Miscellaneous - The company reported a gain of $1,118 on the disposition of developable land in Q3 2025, contrasting with a loss of $36,566 in Q2 2025[69] - The total number of units in the multifamily acquisitions to date is 762, with a total acquisition cost of $38,500[67] - Noncontrolling interests reported net losses of $907,000 for the three months ended September 30, 2025, compared to $391,000 in 2024[81]

Core Viewpoint - Veris Residential, Inc. will host its third quarter 2025 financial results webcast and conference call on October 23, 2025, with results released after market close on October 22, 2025 [1]. Group 1: Conference Call Details - The conference call can be accessed via the internet on the Company's website or by dialing specific numbers for domestic and international participants [2]. - Participants are advised to log on or dial in approximately 10 minutes before the scheduled start time [2]. Group 2: Replay Information - A replay of the conference call will be available from October 23, 2025, at 12:00 p.m. ET until November 23, 2025, at 11:59 p.m. ET [3]. - Listeners can access the replay using designated phone numbers and a passcode, with audio also available on the Company's website for one year [3]. Group 3: Company Overview - Veris Residential, Inc. is a multifamily REIT focused on owning, operating, acquiring, and developing Class A properties in the Northeast [4]. - The Company utilizes a technology-enabled, vertically integrated operating platform to enhance living experiences and positively impact communities [4]. - The management team and Board of Directors emphasize corporate governance, operational excellence, and an inclusive culture [4].

Core Insights - Veris Residential achieved the highest score among U.S. listed residential multifamily companies in the GRESB 2024 assessment and secured the third-highest score globally [1] - The company increased the share of green-certified properties (LEED or equivalent) to 79% of its managed multifamily portfolio [1] - Veris Residential secured sustainability-linked financing, resulting in a 5-basis-point margin reduction [1] Sustainability Performance - The 2024 Sustainability Report highlights strategic sustainability investments that generate measurable returns [1] - These investments are positioned to strengthen the company's competitive position in the multifamily market [1]

Core Viewpoint - Veris Residential, Inc. has declared a cash dividend of $0.08 per share for the third quarter of 2025, reflecting the company's ongoing commitment to returning value to shareholders [1]. Group 1: Company Overview - Veris Residential, Inc. is a real estate investment trust (REIT) focused on owning, operating, acquiring, and developing Class A multifamily properties primarily in the Northeast [3]. - The company utilizes a technology-enabled, vertically integrated operating platform to enhance the living experience for residents and positively impact the communities it serves [3]. - Veris Residential is guided by an experienced management team and Board of Directors, emphasizing strong corporate governance and an inclusive, meritocratic culture [3]. Group 2: Dividend Announcement - The cash dividend of $0.08 is for the period ending September 30, 2025, and will be paid on October 10, 2025, to shareholders of record as of September 30, 2025 [1].

Financial Data and Key Metrics Changes - The second quarter marked solid operational and financial results with core FFO of $0.17 and same store NOI growth of 5.6% [3][4] - Year to date, FFO per share was $0.33 compared to $0.32 last year, indicating slight growth [14] - Same store NOI growth for the quarter was 5.6%, while year to date growth was 4.4% [15] Business Line Data and Key Metrics Changes - The portfolio achieved a blended net rental growth rate of 4.7% for the quarter, up from 2.3% in the first quarter [9] - Occupancy rates improved to 95.5% excluding Liberty Towers, up from 94.7% a year ago [8] - Retention rates improved to approximately 60%, indicating stronger tenant stability [8] Market Data and Key Metrics Changes - The Northeast multifamily landscape is performing well, with New York City showing historically low vacancy rates below 3% [5][6] - Jersey City Waterfront has absorbed 3,900 units with minimal impact on occupancy rates over the past five years [6] - Demand remains strong in Boston, with rent growth above national levels [6] Company Strategy and Development Direction - The company is focused on reducing leverage to around 10 times by year-end 2025 and below nine times by year-end 2026 [4] - Significant progress has been made in executing nonstrategic asset sales, with $450 million targeted by the end of 2026 [4] - The company is investing in technology to enhance operational efficiency and customer experience [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the Northeast multifamily market is benefiting from favorable supply-demand dynamics and urban migration trends [5][6] - The company anticipates continued strong rental growth due to the competitive nature of the market and the quality of its assets [10] - Management expressed confidence in the ability to manage debt maturities and refinancing options effectively [49][50] Other Important Information - The company has raised its core FFO guidance range to $0.63 to $0.64 per share, reflecting robust portfolio performance [20][21] - Same store NOI guidance has been raised to between 22.8%, indicating strong market rent growth visibility [22] Q&A Session Summary Question: Discussion on board change and CIO departure - Management acknowledged the departure of the CIO and expressed confidence in the investment team led by Brian Primost to continue executing the company's strategy [25][26] Question: Guidance on taxes and insurance for the back half of the year - Management indicated that they expect mid to high single-digit increases in insurance and noted the volatility of real estate taxes in Jersey City [29][30] Question: Future sales and disposition strategy - Management highlighted the challenges in the transaction market but expressed a desire to realize NAV on smaller assets and land [32][33] Question: Market dynamics for larger buildings - Management confirmed that there is a discount for larger properties, making smaller transactions more accessible to a broader buyer pool [37][38] Question: Debt maturities and refinancing plans - Management outlined plans to address upcoming debt maturities through sales and refinancing, emphasizing the quality of their assets [46][48] Question: Rent to income ratio and pricing power - Management explained that the low rent to income ratio reflects the high income of residents, providing substantial pricing power [53][54] Question: Impact of New York City mayoral election on Jersey City - Management suggested that Jersey City could benefit from potential policies affecting development and taxation in New York City [59][60] Question: Trajectory of occupancy for Liberty Towers - Management indicated that occupancy may fluctuate but expects to stabilize in the low 80s as renovations progress [70][72]

Financial Performance & Guidance - Core FFO per Diluted Share was $0.33 for the first half of 2025 and $0.17 for Q2 2025[15] - Same Store NOI Growth was 4.4% year-to-date and 5.6% for Q2 2025[10, 15] - The company is targeting a Net Debt-to-EBITDA (Normalized) ratio of approximately 10.0x by year-end 2025 and below 9.0x by year-end 2026[33, 35, 37] - The company expects Same Store Revenue Growth between 2.2% and 2.7% for 2025[20] - The company expects Same Store NOI Growth between 2.0% and 2.8% for 2025[20] - The company expects Core FFO per Share between $0.63 and $0.64 for 2025, representing a growth of 5.0% to 6.7%[20] Portfolio & Operations - As of June 30, 2025, the company's portfolio consisted of 21 residential buildings with 7,491 apartment units[10] - The occupancy rate was 93.9% as of June 30, 2025[11] - The average age of the company's properties is 10 years[10] - The average household income per unit is $445,334[10] Capital Allocation & Debt Management - The company has sold or has under binding contract $448 million of non-strategic assets in 2025[28, 31] - The company amended its $500 million credit facility, consisting of a $300 million Revolver and a $200 million Term Loan[32]