Group 1: Financial Performance - Veris Residential (VRE) reported quarterly funds from operations (FFO) of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, but down from $0.18 per share a year ago, representing an FFO surprise of +21.43% [1] - The company posted revenues of $75.93 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.51%, compared to year-ago revenues of $67.48 million [2] - The current consensus FFO estimate for the coming quarter is $0.16 on revenues of $74.41 million, and for the current fiscal year, it is $0.62 on revenues of $289.73 million [7] Group 2: Market Performance and Outlook - Veris shares have declined approximately 12.6% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The Zacks Industry Rank for REIT and Equity Trust - Residential is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - The estimate revisions trend for Veris was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Core Insights - Veris Residential, Inc. has appointed Christopher Papa as a new member of its Board of Directors, effective July 23, 2025, bringing over 30 years of experience in real estate, accounting, and corporate finance [1][3] - Ronald M. Dickerman will step down from the Board on the same date, citing the need to prioritize his responsibilities at Madison International Realty and to provide flexibility in trading Veris Residential shares [2][3] Company Leadership Changes - Christopher Papa's background includes significant roles as CFO at Post Properties and Liberty Property Trust, with expertise in multifamily real estate, audit, and M&A [1][3] - Tammy K. Jones, Board Chair, expressed gratitude for Dickerman's contributions and highlighted the complementary skills that Papa brings to the Board [3] Strategic Outlook - Papa emphasized the strong portfolio of Class A multifamily properties and the tech-enabled operating platform of Veris Residential, positioning the company for continued success [3] - Dickerman reaffirmed his confidence in the strategic direction of Veris Residential and its management team as he transitions to an engaged shareholder role [3] Company Profile - Veris Residential is a forward-thinking REIT focused on owning, operating, acquiring, and developing premier Class A multifamily properties in the Northeast [5] - The company aims to deliver a contemporary living experience while positively impacting the communities it serves, supported by a strong management team and Board of Directors [5]

Part I Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Veris Residential, Inc. and Veris Residential, L.P. for the quarterly period ended June 30, 2025, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining the accounting policies and financial activities during the period [Veris Residential, Inc. Consolidated Financial Statements](index=6&type=section&id=Veris%20Residential%2C%20Inc.%20Consolidated%20Financial%20Statements) Veris Residential, Inc. reported a net income of $11.8 million for Q2 2025, a significant increase from $2.7 million in Q2 2024, primarily driven by a $36.6 million gain on the disposition of developable land, resulting in a net loss of $1.9 million for the six months ended June 30, 2025, with total assets increasing to $3.13 billion and total liabilities rising to $1.90 billion | Financial Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $75,928 | $67,476 | $143,684 | $134,816 | | **Net Income (Loss)** | $11,843 | $2,735 | $(1,887) | $(1,734) | | **Net Income (Loss) to Common Shareholders** | $10,904 | $2,922 | $205 | $(981) | | **Diluted EPS** | $0.12 | $0.03 | $0.00 | $(0.01) | | Balance Sheet Item | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $3,126,980 | $2,982,727 | | Net Investment in Rental Property | $2,995,913 | $2,795,012 | | Real estate held for sale, net | $288,575 | $7,291 | | **Total Liabilities** | $1,903,121 | $1,740,364 | | **Total Equity** | $1,214,565 | $1,233,069 | | Cash Flow Activity (YTD 2025) | Amount (in thousands) | | :--- | :--- | | Net Cash from Operating Activities | $36,983 | | Net Cash from Investing Activities | $20,822 | | Net Cash from Financing Activities | $(52,096) | | **Net Increase in Cash** | **$5,709** | [Veris Residential, L.P. Consolidated Financial Statements](index=12&type=section&id=Veris%20Residential%2C%20L.P.%20Consolidated%20Financial%20Statements) Veris Residential, L.P. reported financial results nearly identical to its General Partner, Veris Residential, Inc., with a net income of $11.8 million for Q2 2025 and a net loss of $1.9 million for the first six months of 2025, mirroring the parent company's total assets and liabilities, with the primary difference being the equity section presented as Partners' Capital, totaling $1.19 billion for the Operating Partnership | Financial Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $75,928 | $67,476 | $143,684 | $134,816 | | **Net Income (Loss)** | $11,843 | $2,735 | $(1,887) | $(1,734) | | **Net Income (Loss) to Common Unitholders** | $11,911 | $3,197 | $225 | $(1,074) | | Balance Sheet Item | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $3,126,980 | $2,982,727 | | **Total Liabilities** | $1,903,121 | $1,740,364 | | **Total Veris Residential, L.P. partners' capital** | $1,186,278 | $1,201,979 | [Notes to Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and activities, including the disposition of developable land for a $36.4 million gain, the acquisition of the remaining 15% interest in the Sable joint venture, the classification of four multifamily properties as held for sale, and details on its debt structure, commitments, contingencies, and stock-based compensation plans - The company operates as a single business segment focused on owning, operating, and developing its multifamily real estate portfolio after selling its last non-strategic office asset in Q1 2024[177](index=177&type=chunk) | Disposition of Developable Land (YTD 2025) | Net Sales Proceeds (in thousands) | Gain (Loss) (in thousands) | | :--- | :--- | :--- | | 65 Livingston | $7,139 | $(156) | | Wall Land | $30,152 | $26,036 | | 1 Water Street | $15,563 | $10,530 | | **Total** | **$52,854** | **$36,410** | - On April 21, 2025, the company acquired the remaining **15%** controlling interest in the Sable joint venture for **$38.5 million** and assumed the **$181.8 million** mortgage, leading to the consolidation of the property[64](index=64&type=chunk)[65](index=65&type=chunk) - As of June 30, 2025, four multifamily properties were classified as held for sale, with two subsequently sold in July 2025 for gross proceeds of **$207.2 million**[67](index=67&type=chunk) - The company is a defendant in an antitrust lawsuit brought by the New Jersey Attorney General concerning the use of RealPage, Inc. revenue management software, which the company believes is without merit[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A section provides management's perspective on the financial results and condition of the company, highlighting that the Q2 2025 net income increase was primarily due to a $36.6 million gain on land sales, offsetting higher interest expenses and a $12.5 million land impairment charge, with same-store revenue from leases growing 2.8% and strong liquidity supported by operations, asset sales, and a $300 million revolving credit facility, alongside a reconciliation of net income to Funds from Operations (FFO) of $36.9 million for Q2 2025 [Results of Operations](index=44&type=section&id=Results%20of%20Operations) For the three months ended June 30, 2025, total revenues increased by **12.8%** to **$75.9 million** compared to the same period in 2024, driven by a **13.8%** increase in revenue from leases and a **2.8%** growth in same-store lease revenue, with net income rising to **$11.8 million** from **$2.7 million** year-over-year, mainly due to a **$25.8 million** increase in gains on land sales, offsetting impairment charges | Metric (Q2 2025 vs Q2 2024) | Total Company Change (in thousands) | Same-Store Change (in thousands) | | :--- | :--- | :--- | | **Revenue from leases** | +$8,400 (+13.8%) | +$1,700 (+2.8%) | | **Total property expenses** | +$1,200 (+4.9%) | -$1,300 (-5.5%) | | **Land and other impairments, net** | +$12,500 | N/A | | **Gain on disposition of developable land** | +$25,800 (+240.8%) | N/A | | **Interest expense** | +$2,900 (+13.5%) | N/A | - The increase in total revenue was primarily driven by Acquired and Developed Properties, specifically the consolidation of Sable in Q2 2025[190](index=190&type=chunk)[194](index=194&type=chunk) - Same-store property expenses decreased by **5.5%**, mainly due to lower operating services costs from reduced insurance and renovation-related expenses at Liberty Towers[190](index=190&type=chunk)[191](index=191&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash on hand, cash flow from operations, proceeds from asset sales, and a $300 million revolving credit facility, with cash and cash equivalents increasing by $5.7 million since year-end 2024, total debt at $1.8 billion with a weighted average interest rate of 5.11%, and the full repayment of its $200 million term loan in July 2025 using property sales proceeds - Primary sources of liquidity include cash from operations, borrowings under the revolving credit facility, and proceeds from real estate sales[221](index=221&type=chunk) | Debt Summary (as of June 30, 2025) | Balance (in thousands) | % of Total | Weighted Avg. Interest Rate | | :--- | :--- | :--- | :--- | | Fixed Rate & Hedged Debt | $1,710,903 | 93.1% | 4.96% | | Unhedged Variable Rate Debt | $127,000 | 6.9% | 7.06% | | **Total Debt** | **$1,837,903** | **100.0%** | **5.11%** | - The company has a **$100 million** share repurchase program approved in February 2025, but no shares were repurchased during the quarter[238](index=238&type=chunk) [Funds from Operations (FFO)](index=54&type=section&id=Funds%20from%20Operations) Funds from Operations (FFO), a non-GAAP measure, is presented as a supplement to net income, with FFO available to common stock and unit holders increasing to **$36.9 million** for Q2 2025 from **$25.7 million** in the prior year, and to **$48.7 million** for the six-month period in 2025 compared to **$36.1 million** in 2024, adjusted for real estate depreciation, amortization, and gains or losses from property sales | FFO Reconciliation (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) available to common shareholders | $10,904 | $2,922 | $205 | $(981) | | Adjustments (Depreciation, Gains/Losses, etc.) | $25,993 | $22,789 | $48,451 | $37,073 | | **Funds from operations (FFO)** | **$36,897** | **$25,711** | **$48,656** | **$36,092** | - FFO calculation includes charges related to non-depreciable assets, such as **$12.5 million** in land impairment charges and a **$36.6 million** gain on the disposition of developable land for Q2 2025[247](index=247&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate changes affecting its $1.8 billion total indebtedness as of June 30, 2025, which it manages through fixed-rate debt or hedging floating-rate debt, with a hypothetical 100 basis point change in interest rates impacting the fair value of its fixed-rate debt by approximately $33.2 million and annual interest costs on variable-rate debt by approximately $5.7 million - The company manages interest rate risk by utilizing fixed-rate debt or hedging the majority of its floating-rate debt with interest rate swaps or caps[251](index=251&type=chunk) - A **100 basis point** increase/decrease in market interest rates would change the fair value of the company's fixed-rate debt by approximately **$33.2 million**[252](index=252&type=chunk) - A **100 basis point** increase/decrease in market rates would change annual interest costs on the company's variable-rate debt by approximately **$5.7 million**[253](index=253&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures for both Veris Residential, Inc. and Veris Residential, L.P. as of June 30, 2025, concluding that these controls were effective with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the disclosure controls and procedures for both Veris Residential, Inc. and Veris Residential, L.P. were effective as of the end of the reporting period[258](index=258&type=chunk)[260](index=260&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[259](index=259&type=chunk)[261](index=261&type=chunk) Part II Other Information [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the financial statements for details on legal proceedings, specifically mentioning the antitrust lawsuit filed by the New Jersey Attorney General regarding the use of RealPage revenue management software - The company is engaged in certain legal proceedings arising in the normal course of business, with details provided in Note 12 of the financial statements[264](index=264&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in risk factors from those disclosed in the 2024 Annual Report on Form 10-K[265](index=265&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company issued 2,580 shares of common stock to redeem an equal number of common units from the Operating Partnership in a private offering, and no shares were repurchased under its $100 million share repurchase program during the quarter - In Q2 2025, **2,580 shares** of common stock were issued to redeem common units of the Operating Partnership in an unregistered private offering[266](index=266&type=chunk) - No shares were repurchased under the company's **$100 million** share repurchase program during the three months ended June 30, 2025[268](index=268&type=chunk) [Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to credit agreements, CEO and CFO certifications as required by the Sarbanes-Oxley Act, and financial statements formatted in Inline XBRL - The Exhibit Index lists all documents filed with the report, including certifications from the CEO and CFO and financial data in XBRL format[270](index=270&type=chunk)[273](index=273&type=chunk)

[Earnings Release](index=3&type=section&id=Earnings%20Release) Veris Residential's Q2 2025 results show strong financial and operational progress, with strategic asset sales and raised guidance [Second Quarter 2025 Results & Strategic Progress](index=3&type=section&id=Second%20Quarter%202025%20Results%20%26%20Strategic%20Progress) Veris Residential achieved **$0.12 Net Income per diluted share** in Q2 2025, driven by **$448 million** in asset sales and credit facility amendments | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net Income (loss) per Diluted Share** | $0.12 | $0.03 | $0.00 | $(0.01) | | **Core FFO per Diluted Share** | $0.17 | $0.18 | $0.33 | $0.32 | | **Core AFFO per Diluted Share** | $0.19 | $0.21 | $0.36 | $0.39 | | **Dividend per Diluted Share** | $0.08 | $0.06 | $0.16 | $0.11 | - The company has completed or placed under binding contract **$448 million** of non-strategic asset sales year-to-date, advancing its goal to achieve Net Debt-to-EBITDA of around **10.0x by year-end 2025** and below **9.0x by year-end 2026**[8](index=8&type=chunk) - An amendment to the company's Revolver and Term Loan agreement resulted in an immediate **55-basis-point interest rate reduction**, with potential for further savings through deleveraging[7](index=7&type=chunk)[8](index=8&type=chunk) - Operational strength was demonstrated by a **4.7% Same Store Blended Net Rental Growth Rate** and **5.6% Same Store NOI growth** for the quarter[8](index=8&type=chunk) [Same Store Portfolio Performance](index=4&type=section&id=Same%20Store%20Portfolio%20Performance) The Same Store portfolio achieved **5.6% year-over-year NOI growth** to **$51.3 million** in Q2 2025, with blended rental growth accelerating to **4.7%** | | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | **Same Store Units** | 7,491 | 7,491 | —% | | **Same Store Occupancy** | 93.9% | 94.0% | (0.1)% | | **Same Store Blended Rental Growth Rate (Quarter)** | 4.7% | 2.3% | 2.4% | | **Average Rent per Home** | $4,085 | $4,023 | 1.5% | | ($ in 000s) | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **%** | **2025** | **2024** | **%** | | **Total Property Revenue** | $75,999 | $74,160 | 2.5% | $151,378 | $147,768 | 2.4% | | **Total Property Expenses** | 24,690 | 25,569 | (3.4)% | 49,387 | 50,055 | (1.3)% | | **Same Store NOI** | $51,309 | $48,591 | 5.6% | $101,991 | $97,713 | 4.4% | [Transaction Activity](index=4&type=section&id=Transaction%20Activity) Year-to-date, Veris Residential completed **$268 million** in asset sales and acquired its partner's interest in Jersey City Urby for **$38.5 million** | Name ($ 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 and Metropolitan at 40 Park | 4/21/2025 | West New York, NJ and Morristown, NJ | 7,100 | | 1 Water | 4/29/2025 | White Plains, NY | 15,500 | | Signature Place | 7/9/2025 | Morris Plains, NJ | 85,000 | | 145 Front Street | 7/22/2025 | Worcester, MA | 122,200 | | **Total Assets Sold in 2025-to-Date** | | | **$268,100** | - The company acquired its partner's interest in the Jersey City Urby for **$38.5 million**, eliminating a large unconsolidated joint venture. The property was rebranded to "Sable" and is expected to generate over **one million dollars in annualized synergies**[12](index=12&type=chunk) [Finance and Liquidity](index=4&type=section&id=Finance%20and%20Liquidity) As of July 22, 2025, the company held **$181 million in liquidity** with a **4.86% weighted average interest rate**, and achieved **55-basis-point interest savings** - As of July 22, 2025, the company had **$181 million in liquidity**, a weighted average effective interest rate of **4.86%**, and a weighted average maturity of **2.6 years**, with all debt either hedged or fixed[13](index=13&type=chunk) | Balance Sheet Metric ($ in 000s) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Weighted Average Interest Rate** | 5.08% | 4.95% | | **Weighted Average Years to Maturity** | 2.6 | 3.1 | | **TTM Interest Coverage Ratio** | 1.7x | 1.7x | | **Net Debt** | $1,795,320 | $1,643,411 | | **TTM Adjusted EBITDA (Normalized)** | $159,162 | $144,659 | | **Net Debt-to-EBITDA (Normalized)** | 11.3x | 11.4x | - Subsequent to quarter-end, the company amended its **$500 million credit facility**, resulting in an immediate **55-basis-point reduction** in the borrowing rate on its Revolver to **SOFR + 1.50%**[16](index=16&type=chunk) - The company fully repaid its **$200 million Term Loan** using proceeds from the sales of Signature Place and 145 Front Street[17](index=17&type=chunk) [Dividend and Guidance](index=5&type=section&id=Dividend%20and%20Guidance) Veris paid a **$0.08 per share dividend** and raised full-year 2025 guidance, with Core FFO per share now projected at **$0.63-$0.64** - A dividend of **$0.08 per share** was paid on July 10, 2025, to shareholders of record as of June 30, 2025[18](index=18&type=chunk) | 2025 Guidance Ranges | Current Guidance | Initial Guidance | | :--- | :--- | :--- | | **Same Store Revenue Growth** | 2.2% — 2.7% | 2.1% — 2.7% | | **Same Store Expense Growth** | 2.4% — 2.8% | 2.6% — 3.0% | | **Same Store NOI Growth** | 2.0% — 2.8% | 1.7% — 2.7% | | Core FFO per Share Guidance | Current Guidance | Initial Guidance | | :--- | :--- | :--- | | **Net Loss per Share** | $(0.22) — $(0.21) | $(0.24) — $(0.22) | | **Depreciation per Share** | $0.85 — $0.85 | $0.85 — $0.85 | | **Core FFO per Share** | $0.63 — $0.64 | $0.61 — $0.63 | [Key Financial Data](index=8&type=section&id=Key%20Financial%20Data) This section presents Veris Residential's consolidated financial statements, including balance sheet, operations, FFO, EBITDA, and net asset value [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets increased to **$3.13 billion**, driven by real estate held for sale, with total liabilities at **$1.90 billion** | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Net investment in rental property** | $2,995,913 | $2,795,012 | | **Total assets** | **$3,126,980** | **$2,982,727** | | **Total liabilities** | **$1,903,121** | **$1,740,364** | | **Total equity** | **$1,214,565** | **$1,233,069** | | **Total liabilities and equity** | **$3,126,980** | **$2,982,727** | [Consolidated Statement of Operations](index=9&type=section&id=Consolidated%20Statement%20of%20Operations) Q2 2025 total revenues reached **$75.9 million**, with net income available to common shareholders improving to **$10.9 million** (**$0.12 per diluted share**) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenues** | $75,928 | $67,476 | | **Total expenses** | $75,296 | $58,473 | | **Net income (loss)** | $11,843 | $2,735 | | **Net income (loss) available to common shareholders** | **$10,904** | **$2,922** | | **Diluted earnings per common share** | **$0.12** | **$0.03** | [FFO, Core FFO and Core AFFO](index=10&type=section&id=FFO%2C%20Core%20FFO%20and%20Core%20AFFO) Q2 2025 FFO increased to **$36.9 million** (**$0.36/share**), with Core FFO at **$17.8 million** (**$0.17/share**) and Core AFFO at **$19.1 million** (**$0.19/share**) | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **FFO** | $36,897 | $25,711 | | **Core FFO** | $17,757 | $18,615 | | **Core AFFO** | $19,149 | $21,634 | | **FFO per share/unit-diluted** | $0.36 | $0.25 | | **Core FFO per share/unit-diluted** | $0.17 | $0.18 | | **Core AFFO per share/unit-diluted** | $0.19 | $0.21 | [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) Q2 2025 Adjusted EBITDA rose to **$42.2 million**, with TTM Adjusted EBITDA (Normalized) at **$159.2 million**, resulting in a **11.3x Net Debt-to-EBITDA (Normalized) ratio** | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Adjusted EBITDA** | $42,202 | $37,889 | | ($ in thousands) | As of June 30, 2025 | | :--- | :--- | | **TTM Adjusted EBITDA** | $148,504 | | **Net Debt-to-EBITDA** | 12.1x | | **TTM Adjusted EBITDA (Normalized)** | $159,162 | | **Net Debt-to-EBITDA (Normalized)** | **11.3x** | [Components of Net Asset Value](index=12&type=section&id=Components%20of%20Net%20Asset%20Value) As of July 22, 2025, total operating multifamily NOI is **$209.6 million annualized**, with **$1.57 billion** in operating debt and **102.3 million** diluted shares | ($ in thousands) | Total | At Share | | :--- | :--- | :--- | | **Total Multifamily NOI as of 7/22** | $209,556 | $182,544 | | **Commercial NOI** | 4,732 | 3,792 | | **Total NOI as of 7/22** | **$214,288** | **$186,336** | - The estimated value of remaining land and non-strategic assets is **$134.2 million**[43](index=43&type=chunk)[46](index=46&type=chunk) | Liabilities and Other Considerations ($ in thousands) | Amount | | :--- | :--- | | **Operating - Consolidated Debt at Share** | $1,438,479 | | **Operating - Unconsolidated Debt at Share** | $129,170 | | **Revolving Credit Facility** | $126,000 | | **Subtotal Liabilities and Other Considerations** | **$1,780,725** | [Operating Portfolio](index=13&type=section&id=Operating%20Portfolio) This section details Veris Residential's multifamily and commercial operating portfolio performance, including occupancy, revenue, and NOI [Multifamily Operating Portfolio](index=14&type=section&id=Multifamily%20Operating%20Portfolio) The operating portfolio comprises **7,491 apartment units** with **93.9% occupancy** in Q2 2025, generating **$56.8 million in NOI** | | Ownership | Apartments | 2Q 2025 Occupancy | 2Q 2025 Avg Revenue per Home | 2Q 2025 NOI (in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **NJ Waterfront Subtotal** | 87.2% | 5,067 | 93.2% | $4,499 | $42,502 | | **Massachusetts Subtotal** | 100.0% | 1,167 | 95.6% | $3,010 | $6,769 | | **Other Subtotal** | 78.8% | 1,257 | 95.3% | $3,413 | $7,516 | | **Operating Portfolio Total** | **87.8%** | **7,491** | **93.9%** | **$4,085** | **$56,787** | [Commercial Assets and Developable Land](index=15&type=section&id=Commercial%20Assets%20and%20Developable%20Land) The commercial portfolio generated **$1.18 million in NOI** in Q2 2025, with developable land holding potential for **2,419 total units** - The commercial portfolio, with **56,387 rentable square feet**, was **86.3% leased** as of Q2 2025 and generated **$1.18 million in NOI** for the quarter[52](index=52&type=chunk) | Developable Land Parcel Units | Total Units | VRE Share | | :--- | :--- | :--- | | **NJ Waterfront** | 1,522 | 1,400 | | **Massachusetts** | 737 | 737 | | **Other** | 160 | 160 | | **Total** | **2,419** | **2,297** | [Same Store Market Information](index=16&type=section&id=Same%20Store%20Market%20Information) The Same Store portfolio achieved **5.6% year-over-year NOI growth** to **$51.3 million** in Q2 2025, with blended lease tradeouts at **4.7%** | Year-over-Year 2Q Comparison | Apartments | 2Q 2025 NOI at Share | Change | 2Q 2025 Occupancy | Change | 2Q 2025 Blended Lease Tradeouts | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **New Jersey Waterfront** | 5,067 | $37,814 | 4.5% | 93.2% | (1.9)% | 4.7% | | **Massachusetts** | 1,167 | $7,029 | 5.9% | 95.6% | 0.4% | 3.4% | | **Other** | 1,257 | $6,466 | 12.0% | 95.3% | 2.3% | 7.2% | | **Total** | **7,491** | **$51,309** | **5.6%** | **93.9%** | **(0.8)%** | **4.7%** | | Sequential Quarter Comparison | 2Q 2025 NOI at Share | Change | 2Q 2025 Blended Lease Tradeouts | Change | | :--- | :--- | :--- | :--- | :--- | | **Total** | **$51,309** | **1.2%** | **4.7%** | **2.4%** | [Same Store Performance](index=17&type=section&id=Same%20Store%20Performance) Q2 2025 Same Store GAAP NOI increased **5.6% year-over-year**, driven by **2.5% revenue growth** and **3.4% expense reduction**, expanding the NOI margin to **67.5%** | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Property Revenues** | $75,999 | $74,160 | 2.5% | | **Controllable Expenses** | $12,799 | $13,286 | (3.7)% | | **Non-Controllable Expenses** | $11,891 | $12,283 | (3.2)% | | **Total Property Expenses** | $24,690 | $25,569 | (3.4)% | | **Same Store GAAP NOI** | **$51,309** | **$48,591** | **5.6%** | | **Same Store NOI Margin** | **67.5%** | **65.5%** | **2.0%** | [Debt](index=17&type=section&id=Debt) This section outlines Veris Residential's debt profile, including total debt, interest rates, maturity schedules, and recent repayments [Debt Profile](index=18&type=section&id=Debt%20Profile) As of June 30, 2025, total debt was **$1.83 billion**, with **$1.51 billion** in secured permanent loans and **$327 million** in revolving credit and term loans | ($ in thousands) | June 30, 2025 Balance | | :--- | :--- | | **Secured Permanent Loans Outstanding** | $1,510,903 | | **RCF & Term Loan Balances** | $327,000 | | **Total Debt** | **$1,825,339** | [Debt Summary and Maturity Schedule](index=19&type=section&id=Debt%20Summary%20and%20Maturity%20Schedule) As of July 22, 2025, **100% of debt is hedged or fixed**, with a **4.86% weighted average interest rate** and **2.6-year maturity** - As of June 30, 2025, the total consolidated debt was **$1.83 billion** with a weighted average interest rate of **5.11%** and maturity of **2.44 years**. VRE's share of total consolidated debt was **$1.75 billion**[64](index=64&type=chunk) | Pro Forma as of July 22, 2025 | Balance | % of Total | Weighted Average Interest Rate | Weighted Average Maturity in Years | | :--- | :--- | :--- | :--- | :--- | | **Fixed Rate & Hedged Secured Debt** | $1,693,649 | 100.0% | 4.86% | 2.63 | - The debt maturity schedule shows significant maturities in **2026 and 2027**, with the Term Loan fully repaid in July 2025[65](index=65&type=chunk) [Reconciliations and Additional Details](index=19&type=section&id=Reconciliations%20and%20Additional%20Details) This section provides detailed annexes covering transaction activity, financial reconciliations, joint ventures, debt footnotes, property information, and non-GAAP definitions [Annex 1: Transaction Activity](index=20&type=section&id=Annex%201:%20Transaction%20Activity) This annex details 2025 transaction activity, including **$268.1 million in dispositions** and the **$38.5 million acquisition** of the remaining Sable property interest | 2025 Activity | Gross Asset Value | | :--- | :--- | | **Land dispositions-to-date** | $60,300 | | **Multifamily dispositions-to-date** | $207,800 | | **Total dispositions-to-date** | **$268,100** | | **Multifamily acquisitions-to-date** | **$38,500** | [Annex 2: Reconciliation of Net Income (loss) to NOI](index=21&type=section&id=Annex%202:%20Reconciliation%20of%20Net%20Income%20(loss)%20to%20NOI) This annex reconciles Q2 2025 Net Income of **$11.8 million** to a total NOI of **$50.1 million**, adjusting for key non-operating items | ($ in thousands) | 2Q 2025 | 1Q 2025 | | :--- | :--- | :--- | | **Net Income (loss)** | $11,843 | $(13,730) | | **Add: Depreciation and amortization** | 22,471 | 21,253 | | **Add: Interest expense** | 24,604 | 22,960 | | **Deduct: (Gain) loss on disposition of developable land** | (36,566) | 156 | | **Net operating income (NOI)** | **$50,067** | **$44,026** | [Annex 3: Consolidated Statements of Operations and Non-GAAP Financial Footnotes](index=22&type=section&id=Annex%203:%20Consolidated%20Statements%20of%20Operations%20and%20Non-GAAP%20Financial%20Footnotes) This annex clarifies financial statement calculations and non-GAAP reconciliations, detailing adjustments for depreciation, land impairments, and severance costs - The FFO calculation includes adjustments for the company's share of depreciation from unconsolidated joint ventures, which amounted to **$0.9 million** for Q2 2025[73](index=73&type=chunk) - Core FFO adjustments include the removal of a **$12.5 million land and other impairment charge** (controlling interest portion) and **$1.4 million in severance/compensation related costs** from G&A for Q2 2025[73](index=73&type=chunk) [Annex 4: Unconsolidated Joint Ventures](index=23&type=section&id=Annex%204:%20Unconsolidated%20Joint%20Ventures) The company's four unconsolidated joint ventures comprise **1,195 multifamily units** (**94.1% occupied**), generating **$8.1 million in total NOI** | | Units | Percentage Occupied | Total 2Q 2025 NOI | Total Debt | VRE Share of 2Q NOI | VRE Share of Debt | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total UJV** | 1,195 | 94.1% | $8,053 | $333,459 | $3,085 | $129,170 | [Annex 5: Debt Profile Footnotes](index=24&type=section&id=Annex%205:%20Debt%20Profile%20Footnotes) This annex details debt footnotes, clarifying **Term Loan repayment** and the **$126 million Revolver** being fully hedged, with an amended facility reducing the spread to **1.55% over SOFR** - Subsequent to quarter-end, the Term Loan was fully repaid, and the **$126 million drawn on the Revolver** is fully hedged by interest rate caps that expire in July 2026[77](index=77&type=chunk) | As of July 22, 2025 | Balance | Initial Spread | Updated Spread | All In Rate | | :--- | :--- | :--- | :--- | :--- | | **Secured Revolving Credit Facility** | $126,000,000 | 1.55% | 2.38% | 5.88% | [Annex 6: Multifamily Property Information](index=26&type=section&id=Annex%206:%20Multifamily%20Property%20Information) This annex lists all multifamily properties in the operating portfolio, totaling **7,491 units** with an average size of **869 square feet** | | Apartments | Rentable SF | Average Size | | :--- | :--- | :--- | :--- | | **NJ Waterfront Subtotal** | 5,067 | 4,391,122 | 867 | | **Massachusetts Subtotal** | 1,167 | 963,549 | 826 | | **Other Subtotal** | 1,257 | 1,156,702 | 920 | | **Operating Portfolio** | **7,491** | **6,511,373** | **869** | [Annex 7: Noncontrolling Interests in Consolidated JVs](index=27&type=section&id=Annex%207:%20Noncontrolling%20Interests%20in%20Consolidated%20JVs) This annex details noncontrolling interests in consolidated JVs, showing Q2 2025 net losses of **$149,000** and FFO of **$590,000** | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net losses in noncontrolling interests** | $(149) | $(543) | | **Depreciation in noncontrolling interests** | 739 | 737 | | **Funds from operations - noncontrolling interest** | $590 | $194 | [Non-GAAP Financial Definitions](index=28&type=section&id=Non-GAAP%20Financial%20Definitions) This section defines key non-GAAP financial measures like FFO, Core FFO, AFFO, NOI, and Adjusted EBITDA, clarifying their calculation and utility - **FFO (Funds From Operations):** Defined per Nareit as net income excluding gains/losses from property sales and real estate depreciation[91](index=91&type=chunk) - **Core FFO:** FFO adjusted for certain non-recurring items to facilitate performance comparison over time[90](index=90&type=chunk) - **NOI (Net Operating Income):** Total property revenues less total operating expenses, used to assess the unlevered performance of properties[95](index=95&type=chunk) - **Adjusted EBITDA:** Core FFO plus interest, taxes, and other adjustments, used as an indicator of the company's ability to service debt[87](index=87&type=chunk) [Company Information](index=28&type=section&id=Company%20Information) This section provides essential company details, including headquarters, stock exchange listing, ticker symbol, executive officers, and investor relations [Company Information](index=30&type=section&id=Company%20Information) This section provides essential company details, including headquarters in Jersey City, NYSE listing (VRE), key executive officers, and investor relations - **Company:** Veris Residential, Inc. **Headquarters:** Jersey City, New Jersey **Stock Exchange:** New York Stock Exchange **Ticker Symbol:** VRE[98](index=98&type=chunk) - **Executive Officers:** - Mahbod Nia, Chief Executive Officer - Amanda Lombard, Chief Financial Officer - Anna Malhari, Chief Operating Officer - Taryn Fielder, General Counsel and Secretary[99](index=99&type=chunk)

Core Insights - Veris Residential, Inc. reported a net income of $0.12 per diluted share for Q2 2025, compared to $0.03 in Q2 2024, indicating a positive year-over-year growth [3][30] - The company achieved a Core FFO per diluted share of $0.17, slightly down from $0.18 in the same quarter last year, while Core AFFO per diluted share was $0.19, down from $0.21 [3][30] - The company raised its operational guidance for 2025, reflecting continued strength in rental growth and improved expense projections [18] Financial Performance - Total property revenue for Q2 2025 was $75.999 million, a 2.5% increase from $74.160 million in Q2 2024 [7] - Same Store NOI grew by 5.6% year-over-year for the quarter, reaching $51.309 million, while year-to-date NOI growth was 4.4% [7][13] - The average rent per home increased by 1.5% to $4,085 compared to $4,023 in Q1 2025 [7] Strategic Progress - The company has completed or has binding contracts for nearly $450 million in sales, significantly ahead of schedule [4] - An amendment to the credit facility resulted in a 55 basis point reduction in corporate borrowing costs, with potential for further savings as the company continues to de-lever [5][11] - The company is on track to achieve a Net Debt-to-EBITDA ratio below 9.0x by year-end 2026 [13] Transaction Activity - Year-to-date, Veris Residential has closed $268 million in non-strategic asset sales, with an additional $180 million in sales under binding contract [8][13] - The company purchased its partner's interest in the Jersey City Urby for $38.5 million, rebranding it to "Sable" and consolidating management [8] Balance Sheet and Liquidity - As of July 22, 2025, the company had liquidity of $181 million and a weighted average effective interest rate of 4.86% [10] - The total net debt as of June 30, 2025, was $1.795 billion, with a TTM Adjusted EBITDA of $159.162 million [12][30] Dividend Information - The company declared a dividend of $0.08 per share on July 10, 2025, for shareholders of record as of June 30, 2025 [17]

Core Viewpoint - Veris Residential, Inc. has amended its $500 million credit facility to enhance financial flexibility and reduce borrowing costs, supporting its strategy to sell non-strategic assets and lower leverage [1][3]. Group 1: Credit Facility Details - The amended facility includes a $300 million Revolving Credit Facility and a $200 million delayed-draw Term Loan, with a leverage-based pricing grid for the Revolver, offering spreads from 1.25% to 1.80% over SOFR [2]. - The number of secured properties required in the collateral pool has been reduced from five to two, with the facility maturing in April 2027 and a one-year extension option on the Revolver [2]. Group 2: Financial Impact and Strategy - The amendment results in an initial improvement of 55 basis points in corporate borrowing costs, with potential for further savings as the balance sheet strengthens [3]. - The company aims to complete up to $500 million in non-strategic asset sales, which is part of its multi-pronged optimization strategy to enhance stakeholder value [3]. Group 3: Recent Transactions - Concurrently with the amended facility, Veris Residential completed the $85 million sale of Signature Place, using $80 million of the proceeds to reduce its Term Loan to $120 million [3]. Group 4: Company Overview - Veris Residential, Inc. is a real estate investment trust focused on Class A multifamily properties in the Northeast, utilizing a technology-enabled operating platform to enhance living experiences and community impact [5].

Core Viewpoint - Veris Residential, Inc. will host its second quarter 2025 financial results webcast and conference call on July 24, 2025, at 8:30 a.m. eastern, with results released after market close on July 23, 2025 [1]. Group 1: Financial Results Announcement - The conference call can be accessed via the internet or by phone, with a recommendation to log in or dial in 10 minutes prior to the start time [2]. - A replay of the conference call will be available from July 24, 2025, at 12:00 p.m. eastern until August 24, 2025, at 11:59 p.m. eastern, with specific access numbers and a passcode provided [3]. Group 2: Company Overview - Veris Residential, Inc. is a real estate investment trust (REIT) focused on owning, operating, acquiring, and developing Class A multifamily properties in the Northeast, utilizing a technology-enabled operating platform [4]. - The company emphasizes a contemporary living experience aligned with resident preferences and aims to positively impact the communities it serves, supported by an experienced management team and strong corporate governance [4].

Company Overview - Veris Residential 的入住率为 94.4%[8]，拥有 7,621 套公寓[8]。 - 截至 2024 年 11 月 8 日，混合净租金增长率为 4.5%[8]。 - 2024 年至今的 NOI 为 6.7%[11]。 - 83% 的房产获得了绿色认证[11]。 Financial Performance - 截至 2024 年 9 月 30 日，新泽西州海滨的运营多户型 NOI 为 1.7372 亿美元[12]，马萨诸塞州为 2603.2 万美元[12]，其他地区为 3071.2 万美元[12]，商业 NOI 为 352.4 万美元[12]。 - 非战略资产的估计土地价值为 1.87311 亿美元[13]，基于 4,139 个潜在单元[13]。 - 截至 2024 年 9 月 30 日，未偿还股份包括 9290.3 万股加权平均流通普通股[15]。 Market Overview - Tri-State 地区（纽约州、新泽西州、康涅狄格州）现有 A 级总库存为 30.3 万套[48]，在建 A 级项目为 50,575 套（占 16.7%）[48]，A 级平均租金为 4,260 美元[48]。 - Jersey City 海滨现有 A 级总库存为 19,500 套[48]，在建 A 级项目为 2,743 套（占 14.1%）[48]，A 级平均租金为 4,251 美元[48]。 - 波士顿都会区现有 A 级总库存为 11.6 万套[48]，在建 A 级项目为 10,174 套（占 8.7%）[51]，A 级平均租金为 3,290 美元[51]。 Portfolio Optimization - Veris Residential 的 ORA® 评分为 85.00（截至 2024 年 10 月 31 日）[36]。 - Liberty Towers 正在进行大规模翻新，投资额约为 3000 万美元[79]，预计 5 年 IRR 为 18%[80]，核心 FFO 增厚 0.06 美元/股[81]。 - myVeris 应用程序的居民采用率超过 90%[86]。

Industry Overview - The Zacks REIT and Equity Trust - Residential industry includes companies that own, develop, and manage various residential properties, generating revenues by renting spaces to tenants [3] - The demand for student housing is closely tied to enrollment growth at educational institutions, making it a key driver for this market segment [3] Current Market Dynamics - Strong rental demand is supported by a resilient labor market, demographic trends driving household formation, and rising homeownership costs making renting more attractive [1][4] - Residential REITs are leveraging technology to enhance tenant experience and improve operational efficiency [5] - Economic uncertainty and regional oversupply of apartments are creating challenges, potentially dampening consumer confidence and affecting renter affordability [2][6][7] Performance Metrics - The REIT and Equity Trust - Residential industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, returning 0.5% compared to the S&P 500's increase of 9.6% [11] - The industry is currently trading at a forward 12-month price-to-FFO ratio of 16.46, above the Finance sector's forward P/E of 16.11 but below the S&P 500's forward P/E of 21.89 [14] Future Outlook - The industry is positioned in the top 38% of around 250 Zacks industries, indicating robust near-term prospects [8][9] - Analysts are gaining confidence in the growth potential of the industry, as reflected in upward revisions of funds from operations (FFO) per share estimates [10] Investment Opportunities - Veris Residential focuses on Class A multifamily properties in high-demand Northeast markets, with upward revisions in FFO per share estimates suggesting growth potential [19][21] - Elme Communities targets value-oriented multifamily assets in supply-constrained markets, with a projected net operating income upside in 2025 [23][24][25] - NexPoint Residential Trust offers exposure to middle-income multifamily assets in high-growth Sunbelt markets, with upward revisions in FFO per share estimates indicating strong performance [26][27][28]

Core Viewpoint - Veris Residential (VRE) shares have shown a slight increase of 0.2% over the past four weeks, closing at $15.33, with a potential upside of 25.9% based on Wall Street analysts' mean price target of $19.30 [1][11]. Price Targets and Analyst Estimates - The mean estimate for VRE comprises five short-term price targets with a standard deviation of $4.02, indicating variability among analysts; the lowest estimate suggests a 4.4% increase to $16, while the highest predicts a surge of 69.6% to $26 [2][9]. - Analysts have recently shown increasing optimism regarding VRE's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price movements [4][11]. - The Zacks Consensus Estimate for the current year has risen by 2.5% over the past month, with two estimates increasing and no negative revisions [12]. Analyst Behavior and Price Target Reliability - There is skepticism regarding the reliability of analysts' price targets, as empirical research indicates that these targets often mislead investors rather than provide accurate guidance [7][10]. - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations for stocks they cover [8]. - A low standard deviation in price targets suggests a high degree of agreement among analysts about the stock's price direction, serving as a starting point for further research [9]. Investment Ranking - VRE currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside in the near term [13].