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Veris Residential(VRE) - 2024 Q1 - Quarterly Results
VREVeris Residential(VRE)2024-04-24 20:31

Financial Performance - For Q1 2024, Veris Residential reported a Core FFO per diluted share of 0.14,upfrom0.14, up from 0.12 in Q4 2023, and a Core AFFO per diluted share of 0.18,upfrom0.18, up from 0.14[5]. - The company reported a net loss per diluted share of (0.04)forQ12024,animprovementfrom(0.04) for Q1 2024, an improvement from (0.06) in Q4 2023[5]. - Total revenues for Q1 2024 increased to 67,340,000,up7.867,340,000, up 7.8% from 62,598,000 in Q1 2023[27]. - Net loss available to common shareholders improved to (3,903,000)inQ12024,comparedto(3,903,000) in Q1 2024, compared to (19,973,000) in Q1 2023, representing a 80.5% reduction[29]. - Funds from Operations (FFO) for Q1 2024 were 10,380,000,a27.310,380,000, a 27.3% increase from 8,155,000 in Q1 2023[29]. - Core Funds from Operations (Core FFO) decreased slightly to 14,179,000inQ12024from14,179,000 in Q1 2024 from 14,893,000 in Q1 2023, a decline of 4.8%[29]. - Adjusted EBITDA for Q1 2024 was 33,177,000,down20.033,177,000, down 20.0% from 41,465,000 in Q1 2023[31]. - The company reported a net loss of 4,469forQ12024,comparedtoanetlossof4,469 for Q1 2024, compared to a net loss of 5,746 in Q4 2023[58]. - For the three months ended March 31, 2024, the company reported Funds from Operations (FFO) of 14,083thousand,comparedto14,083 thousand, compared to 14,164 thousand for the same period in 2023, reflecting a decrease of 0.6%[64]. Revenue and Growth - The company achieved Same Store NOI growth of 14.2% year-over-year, with total property revenue increasing by 8.9% to 74.1millioncomparedto74.1 million compared to 68.1 million in Q1 2023[9]. - The Same Store blended rental growth rate was 4.6%, down from 10.2% in the previous year, with average rent per home increasing to 3,899from3,899 from 3,622[6]. - Total property revenues reached 74,092inQ12024,reflectingagrowthof74,092 in Q1 2024, reflecting a growth of 6,029 or 8.9% year-over-year[47]. - Same Store GAAP NOI increased to 49,387,up49,387, up 6,159 or 14.2% from the previous year[47]. - Apartment rental income for Q1 2024 was 66,697,anincreaseof66,697, an increase of 4,824 or 7.8% compared to Q1 2023[47]. - The total Net Operating Income (NOI) for the multifamily portfolio was 225,000,000inQ12024,comparedto225,000,000 in Q1 2024, compared to 191,387,000 in Q1 2023, reflecting a significant growth[33]. Debt and Financing - Veris Residential secured a 500millioncreditfacilityandtermloan,enhancingliquidityandfinancialflexibility,whilealsoraisingits2024guidanceforCoreFFOpersharetoarangeof500 million credit facility and term loan, enhancing liquidity and financial flexibility, while also raising its 2024 guidance for Core FFO per share to a range of 0.50 to 0.54[6][17].−Totaldebtportfoliohasaweightedaverageinterestrateof4.40.54[6][17]. - Total debt portfolio has a weighted average interest rate of 4.4% and a weighted average maturity of 3.5 years, with 99.9% of the debt hedged or fixed[12][13]. - The company plans to utilize proceeds from new credit facilities for debt repayment and general corporate purposes, with no funds drawn at closing[14]. - The company's total debt as of March 31, 2024, was 1,853,149, slightly down from 1,853,897attheendof2023[50].−TheeffectiverateofdebtincludesaloanonPortsideatEastPiercappedatastrikerateof3.51,853,897 at the end of 2023[50]. - The effective rate of debt includes a loan on Portside at East Pier capped at a strike rate of 3.5%, expiring in September 2026[67]. - The company plans to prepay the loan on 145 Front Street in May 2024, which is capped at a strike rate of 4.0%[67]. Asset Management - The company sold 179 million of non-strategic assets, including the last office asset, and has two land parcels under contract for an additional 28million[8][10].−Thecompanydisposedofassetstotaling28 million[8][10]. - The company disposed of assets totaling 179,300 in 2024 to date, including land and multifamily properties[57]. - The company has 4,139 thousand square feet of developable land parcels available, excluding those under binding contract for sale[40]. - The company experienced a gain of 7,100,000onthesaleofunconsolidatedjointventureinterestsinQ12024,withnocomparablegainreportedinQ12023[27].OccupancyandRentalRates−Asof1Q2024,thetotalportfoliooccupancyratewas94.17,100,000 on the sale of unconsolidated joint venture interests in Q1 2024, with no comparable gain reported in Q1 2023[27]. Occupancy and Rental Rates - As of 1Q 2024, the total portfolio occupancy rate was 94.1%, a slight decrease from 94.4% in 4Q 2023[43]. - The percentage of occupied units at the end of the quarter was 94.1%, down from 95.9% in Q1 2023, a decrease of 1.8%[47]. - The total occupancy rate for multifamily properties was 92.5% in Q1 2024, with Urby Harborside achieving 90.7% and RiverTrace at Port Imperial reaching 94.5%[64]. - The average revenue per home increased to 3,899 in 1Q 2024, up from 3,855in4Q2023,reflectingayear−over−yearincreaseof14.23,855 in 4Q 2023, reflecting a year-over-year increase of 14.2%[45]. - The New Jersey Waterfront segment's average revenue per home rose to 4,274 in 1Q 2024, compared to 4,219in4Q2023[45].CorporateRecognition−VerisResidentialachievedthehighestOnlineReputationAssessment(ORA®)ScoreamongREITsintheU.S.andreceivedthehighestISSESGCorporateScoreamongrealestatecompanies[8][16].−Thecompanydeclareddividendsof4,219 in 4Q 2023[45]. Corporate Recognition - Veris Residential achieved the highest Online Reputation Assessment (ORA®) Score among REITs in the U.S. and received the highest ISS ESG Corporate Score among real estate companies[8][16]. - The company declared dividends of 0.0525 per common share in Q1 2024, marking a new dividend issuance[29]. - The dividend paid was $0.0525 per share, consistent with the previous quarter[15].