Veris Residential(VRE) - 2025 Q1 - Quarterly Report

Revenue and Income - Total revenues for the three months ended March 31, 2025, were $67,756,000, an increase of 0.6$67,340,000 for the same period in 2024[27]. - Revenue from leases increased to $61,965,000, up 2.2$60,642,000 year-over-year[27]. - Net income (loss) for the three months ended March 31, 2025, was $(13,730,000), compared to$(4,469,000) for the same period in 2024, reflecting a significant decline[28]. - Basic earnings per common share for continuing operations was $(0.12) for Q1 2025, compared to$(0.06) for Q1 2024[27]. - Comprehensive loss attributable to common shareholders for the three months ended March 31, 2025, was $(11,487,000), compared to$(2,905,000) for the same period in 2024[28]. - For the three months ended March 31, 2025, Veris Residential reported a net loss of $13.73 million, compared to a net loss of$4.47 million for the same period in 2024, indicating a significant decline in performance[32]. - Net income (loss) for Q1 2025 was $(13,730), compared to$(4,469) in Q1 2024, reflecting a significant decline[37]. - Basic earnings per common unit for continuing operations was $(0.12) in Q1 2025, compared to$(0.06) in Q1 2024[36]. - Comprehensive loss for Q1 2025 was $(14,834), compared to$(3,377) in Q1 2024[37]. - For the three months ended March 31, 2025, the net loss was $13,730,000, compared to a net loss of$4,469,000 for the same period in 2024, representing an increase in loss of approximately 207%[39]. - The net income available to common shareholders was $(10.7) million, compared to$(3.9) million for the same period in 2024, reflecting a decrease of 174%[159]. Assets and Liabilities - Total assets decreased to $2,951,573,000 as of March 31, 2025, down from$2,982,727,000 at the end of 2024[26]. - Total liabilities decreased slightly to $1,733,102,000 from$1,740,364,000 at the end of 2024[26]. - Total equity as of March 31, 2025, was $1.21 billion, down from$1.27 billion at the same time in 2024[30]. - Total assets decreased from $1.41 billion as of December 31, 2024, to$1.35 billion as of March 31, 2025[32]. - Total liabilities decreased slightly to $1,733,102 as of March 31, 2025, from$1,740,364 at the end of 2024[35]. - Total equity decreased to $1,209,177 as of March 31, 2025, down from$1,233,069 at the end of 2024[35]. Cash Flow and Investments - Cash and cash equivalents increased to $7,596,000 from$7,251,000 at the end of 2024[26]. - The company experienced a decrease in cash and cash equivalents, ending the period with $22.11 million, down from$138.35 million a year earlier[32][33]. - Operating cash flows from continuing operations were $13.03 million for Q1 2025, a decrease from$15.31 million in Q1 2024[32]. - Veris Residential's cash flows from investing activities for Q1 2025 were $3.44 million, a significant decrease from$93.77 million in Q1 2024[32]. - The company reported cash flows from investing activities of $3,442,000 for the three months ended March 31, 2025, a significant decrease of 96.3$93,773,000 in the same period of 2024[39]. - The company reported funds from operations (FFO) of $11.8 million for Q1 2025, compared to$10.4 million for Q1 2024[217]. Expenses - The company incurred $21,253,000 in depreciation and amortization expenses for the three months ended March 31, 2025, compared to$20,117,000 for the same period in 2024[27]. - The company reported depreciation and amortization expenses of $21.25 million for Q1 2025, compared to$20.11 million in Q1 2024[32]. - Interest expense increased to $(22,960) in Q1 2025, compared to$(21,500) in Q1 2024[36]. - Utilities expenses increased by $0.5 million, or 23.6$1.0 million, or 9.2%, primarily due to the satisfaction of stay-on award conditions in 2024[184]. - Non-property expenses increased by $2.251 million, or 6.1$39.214 million[181]. Real Estate and Joint Ventures - As of March 31, 2025, the company owned or had interests in 22 multifamily rental properties, including 19 wholly-owned properties and 6 properties owned by unconsolidated joint ventures[44]. - The company had total real estate assets in consolidated joint ventures of $438.2 million as of March 31, 2025, a slight decrease from$442.4 million as of December 31, 2024[47]. - The Company’s equity in earnings of unconsolidated joint ventures for Q1 2025 was $3.842 million, compared to$254,000 in Q1 2024[74]. - Equity in earnings of unconsolidated joint ventures increased by $3.6 million, or 1412.6$200 million, and the 2024 Revolving Credit Facility was $148 million[96]. - The effective interest rate applicable to the 2024 Credit Facility as of March 31, 2025, was 6.23$1.322 billion as of March 31, 2025[100]. - The Company was in compliance with its debt covenants under the 2024 Credit Agreement as of March 31, 2025[97]. - The fair value of the Company's long-term debt is approximately $1.6 billion, compared to a book value of approximately$1.7 billion as of March 31, 2025[109]. Strategic Initiatives and Risks - The Company has discontinued operations related to its former New Jersey office and hotel portfolio, representing a strategic shift in operations[65]. - The company is exposed to market risk primarily from changes in market interest rates, which is monitored as part of its overall risk management strategy[220]. - The company faces risks related to the general economic climate that may negatively affect its business fundamentals and the financial condition of its residents and tenants[221]. - The company’s ability to attract, hire, and retain qualified personnel is a critical factor for its operational success[221]. - The company must navigate changes in operating costs, which could impact its financial performance[221]. - The company’s creditworthiness and the availability of financing on attractive terms are essential for pursuing acquisition and development opportunities[221]. - The company is at risk of not completing construction and development activities on time and within budget due to regulatory permits and material costs[221]. - The company’s real estate asset values may limit its ability to dispose of assets at favorable prices or secure debt financing[221]. - The company is subject to risks associated with governmental regulations, including changes in tax rates and housing laws[221].