Veris Residential(VRE) - 2023 Q4 - Annual Results

News Release: Fourth Quarter and Full Year 2023 Results Veris Residential, Inc. announces its fourth quarter and full year 2023 results, highlighting its successful transformation into a pure-play multifamily REIT and strong operational performance Executive Summary & Key Financial Highlights Veris Residential, Inc. announced its fourth quarter and full year 2023 results, successfully transforming into a pure-play multifamily REIT, achieving excellent operational performance, and optimizing its balance sheet through strategic asset sales and debt refinancing Key Financial Data for Q4 and Full Year 2023 | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net Income (Loss) per Diluted Share | $(0.06) | $0.34 | $(1.22) | $(0.63) | | Core FFO per Diluted Share | $0.12 | $0.05 | $0.53 | $0.44 | | Dividends Declared per Share | $0.0525 | $— | $0.1025 | $— | Operational Highlights for 2023 (as of December 31) | Metric | Dec 31, 2023 | Dec 31, 2022 | % Change | | :-------------------------- | :----------- | :----------- | :------- | | Operating Units | 7,681 | 6,931 | 10.8% | | % Physical Occupancy | 94.4% | 95.3% | (1.0)% | | Same Store Units | 6,691 | 5,825 | 14.9% | | Same Store Occupancy | 94.4% | 95.6% | (1.3)% | | Same Store Blended Rental Growth Rate | 5.0% | 11.7% | (57.3)% | | Average Rent per Home | $3,792 | $3,482 | 8.9% | - The company has successfully transformed into a pure-play multifamily REIT, boasting a high-quality Class A property portfolio and a vertically integrated operating platform[7] - Core FFO per share increased to $0.53, representing a 20% growth year-over-year[8] - Annual NOI growth rate reached 17.6%, exceeding the upper end of guidance, with NOI margin improving from 62% in 2022 to 64%[8] - Over $700 million in non-strategic assets, including eight properties and four land parcels, have been sold since early 2023. A binding contract was signed in January 2024 for the sale of the last office property, Harborside 5, for $85 million[8] - Debt structure was optimized through the early redemption of Rockpoint's preferred equity ($520 million), refinancing $400 million in debt, and reducing total liabilities by $50 million[8] Same Store Portfolio Performance For the full year 2023, the same-store portfolio achieved strong revenue and NOI growth, significantly exceeding the initial guidance range, with robust year-over-year performance despite a slight quarter-over-quarter decrease in Q4 2023 NOI and occupancy 2023 Same Store Performance vs. Guidance Ranges | Metric | 2023 Actual Growth | Original Guidance Range | Adjusted Guidance Range | | :---------------------- | :----------------- | :---------------------- | :---------------------- | | Same Store Revenue Growth | 11.0% | 4-6% | 9-10% | | Same Store Expense Growth | 0.4% | 4-6% | 2-3% | | Same Store NOI Growth | 17.6% | 4-6% | 14-15% | Detailed Same Store Performance Comparison: FY 2023 vs. FY 2022 | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | % Change | | :---------------------- | :-------- | :-------- | :------- | | Total Property Revenue | $241,078 | $217,284 | 11.0% | | Total Property Expenses | $84,818 | $84,442 | 0.4% | | Same Store NOI | $156,260 | $132,842 | 17.6% | - Haus25 and The James will join the same-store pool in the first quarter of this year, with these two properties contributing over $8 million in NOI during the fourth quarter[9] Transaction Activity Veris Residential continues its divestment of non-strategic assets, completing over $660 million in sales in 2023 and an additional $40 million year-to-date in 2024, with $139 million in non-strategic assets remaining under binding contract, including its last office property - In 2023, the company completed over $660 million in non-strategic asset sales, including two hotel properties, five office properties, and three land parcels[10] - In Q4 2023, the company completed the sales of Harborside 4, 3 Campus, and 23 Main for a total of $89 million, generating approximately $82 million in net proceeds[11] - By year-end, the company had binding contracts to sell 2 Campus and The Metropolitan Lofts joint venture for a total of $40 million, with net proceeds of approximately $16 million[11] - Currently, $139 million in non-strategic assets remain under binding contract, including the company's last office property, Harborside 5[12] Finance and Liquidity As of February 20, 2024, the company possesses approximately $95 million in available liquidity, with its debt portfolio largely hedged or fixed at a weighted average interest rate of 4.5% and a 3.7-year term, and has reactivated its "at-the-market" offering program for up to $100 million in common stock - As of February 20, 2024, available liquidity is approximately $95 million, comprising cash on hand and revolving credit facility availability[13] - 99.9% of the company's debt is hedged or fixed, with a weighted average interest rate of 4.5% and a weighted average term of 3.7 years[13] Key Balance Sheet Metrics (as of December 31) | Balance Sheet Metric | 2023 | 2022 | | :------------------------ | :----- | :----- | | Weighted Average Interest Rate | 4.5% | 4.4% | | Weighted Average Years to Maturity | 3.7 years | 4.1 years | | Net-Debt-to-Adjusted EBITDA | 13.8x | 13.5x | | Interest Coverage Ratio | 1.5x | 1.5x | - The company has reactivated its "at-the-market" (ATM) program, allowing for the issuance and sale of up to $100 million in common stock from time to time, with net proceeds to be used for general corporate purposes[14] - As of February 20, 2024, $60 million of the revolving credit facility ("Revolver") remains undrawn[15] ESG and Dividend Policy Veris Residential received multiple significant recognitions for its leadership in ESG, DEI, and corporate governance, including Nareit's "Leader in the Light" award and a second consecutive GRESB 5-star rating, and also reinstated and subsequently increased its Q4 2023 common stock quarterly dividend by 5% - The company was recognized by Nareit as a "Leader in the Light" in the residential sector and achieved Global Listed and Regional Sector Leader status in the GRESB annual survey, earning a 5-star rating for the second consecutive year[16] - The company also received Nareit's Bronze-level Diversity, Equity & Inclusion (DEI) recognition[16] - The Board of Directors declared a Q4 2023 quarterly common stock dividend of $0.0525 per share, representing a 5% increase from the prior dividend[17] Operational Guidance (2024) Veris Residential issued its 2024 operational guidance, anticipating continued positive growth in same-store metrics and Core FFO per share, building on the strong performance of 2023 2024 Guidance Ranges | 2024 Guidance Ranges | Low | High | | :-------------------- | :---- | :---- | | Same Store Revenue Growth | 4.0% | 5.0% | | Same Store Expense Growth | 5.0% | 6.0% | | Same Store NOI Growth | 2.5% | 5.0% | | Net Loss per Share | $(0.40) | $(0.35) | | Core FFO per Share | $0.48 | $0.53 | Key Financial Data This section provides a detailed overview of Veris Residential's key financial statements, including the consolidated balance sheet, statements of operations, and various FFO and EBITDA metrics, for the reported periods Consolidated Balance Sheet As of December 31, 2023, the company's total assets and liabilities decreased compared to the same period in 2022, primarily due to a reduction in rental properties and real estate held for sale, reflecting strategic asset dispositions Consolidated Balance Sheet Summary (as of December 31) | Metric | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--------------------------------- | :----------- | :----------- | | Total Assets | $3,241,046 | $3,920,768 | | Total Liabilities | $1,936,494 | $2,006,200 | | Total Equity | $1,279,553 | $1,399,337 | | Net Investment in Rental Property | $3,006,315 | $3,608,145 | | Real Estate Held for Sale, net | $58,608 | $193,933 | Rental Property Details (as of December 31, 2023) | Asset Type | Multifamily (in thousands) | Office/Corp. (in thousands) | Total (in thousands) | | :-------------------------- | :---------- | :----------- | :---------- | | Land and leasehold interests | $468,556 | $5,943 | $474,499 | | Buildings and improvements | $2,642,626 | $139,842 | $2,782,468 | Consolidated Statement of Operations For the full year 2023, despite an increase in total revenues, Veris Residential's net loss significantly widened from $34.89 million in 2022 to $112.36 million, primarily due to property impairments, increased interest costs from the mandatory redemption of non-controlling interests, and reduced gains from developable land dispositions Consolidated Statement of Operations Summary (Full Year 2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | % Change | | :-------------------- | :-------- | :-------- | :------- | | Total Revenues | $279,859 | $233,448 | 19.9% | | Total Expenses | $310,373 | $265,663 | 16.8% | | Net (Loss) Income | $(112,361) | $(34,885) | (222.1)% | | Net (Loss) Income available to common shareholders | $(107,265) | $(52,066) | (106.0)% | | Diluted EPS | $(1.22) | $(0.63) | (93.7)% | - Property impairment: $32,516 thousand in 2023, compared to $0 in 2022[28] - Interest cost from mandatory redemption of non-controlling interests: ($49,782) thousand in 2023, compared to $0 in 2022[28] - Gain (loss) on disposition of developable land: $7,068 thousand in 2023, compared to $57,262 thousand in 2022[28] FFO and Core FFO In 2023, Core FFO per diluted share significantly increased to $0.53, up from $0.44 in 2022, reflecting operational improvements and adjustments for non-recurring items, while FFO substantially decreased due to various adjustments, including property impairments and gains/losses on asset dispositions FFO and Core FFO (Full Year 2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | % Change | | :--------------------------------- | :-------- | :-------- | :------- | | FFO | $20,829 | $89,591 | (76.8)% | | Core FFO | $53,893 | $44,300 | 21.7% | | Funds from operations per share-diluted | $0.21 | $0.89 | (76.4)% | | Core Funds from Operations per share/unit-diluted | $0.53 | $0.44 | 20.5% | - Key adjustments to FFO in 2023 included property impairment from continuing operations ($32,516 thousand), Rockpoint acquisition premium ($34,775 thousand), and redemption value adjustment for mandatory redemption of non-controlling interests ($7,641 thousand)[31] AFFO and Adjusted EBITDA In 2023, Adjusted FFO (AFFO) significantly increased to $62.49 million, up from $12.33 million in 2022, driven by higher Core FFO and reduced non-incremental revenue-generating capital expenditures, with Adjusted EBITDA also growing, indicating improved operating earnings before non-cash items and financing costs AFFO and Adjusted EBITDA (Full Year 2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | % Change | | :-------------------- | :-------- | :-------- | :------- | | Core AFFO | $62,493 | $12,331 | 406.8% | | Adjusted EBITDA | $150,834 | $145,190 | 3.9% | | Net debt to Adjusted EBITDA | 11.9x | 12.8x | (7.0)% | - Building improvement expenses within non-incremental revenue-generating capital expenditures decreased from ($14,992) thousand in 2022 to ($8,348) thousand in 2023[35] EBITDAre Q4 2023 EBITDAre significantly increased to $74.76 million, up from $33.64 million in Q4 2022, primarily due to property impairments and an increased share of property NOI from the company's unconsolidated joint ventures, though Adjusted EBITDAre saw a slight decrease EBITDAre (Q4 2023 vs. Q4 2022) | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | % Change | | :---------------- | :-------- | :-------- | :------- | | EBITDAre | $74,759 | $33,636 | 122.3% | | Adjusted EBITDAre | $37,836 | $39,591 | (4.5)% | - Property impairment ($32,516 thousand in Q4 2023 vs. $10,302 thousand in Q4 2022) and the company's share of property NOI from unconsolidated joint ventures ($7,768 thousand in Q4 2023 vs. $6,694 thousand in Q4 2022) were key drivers of EBITDAre growth[38] Components of Net Asset Value The components of net asset value highlight the company's transition to multifamily assets, with its operating multifamily portfolio contributing the majority of NOI, and also detail non-strategic assets under binding contract, estimated land value, and its debt and equity structure Total NOI (at Share) | Metric | Total (in thousands) | At Share (in thousands) | | :-------- | :---- | :------- | | Total NOI | $218,072 | $185,488 | Non-Strategic Assets | Metric | Value (in thousands) | | :------------------------------ | :-------- | | Non-Strategic Assets Under Binding Contract | $139,000 | | Estimated Land Value | $214,659 | | Subtotal Non-Strategic Assets | $353,659 | Liabilities and Other Considerations | Metric | Value (in thousands) | | :------------------------------------ | :---------- | | Operating - Consolidated Debt at Share | $1,795,667 | | Operating - Unconsolidated Debt at Share | $298,679 | | Subtotal Liabilities and Other Considerations | $2,196,242 | - Diluted weighted average common shares outstanding for Q4 2023 were 100,936,000 shares[43] Operating Portfolio This section provides a detailed breakdown of Veris Residential's operating portfolio, focusing on multifamily properties, commercial assets, developable land, and same-store performance metrics Multifamily Operating Portfolio The multifamily operating portfolio comprises 7,681 apartments, with an overall physical occupancy of 94.4% in Q4 2023, and the New Jersey Waterfront properties, as the largest component, demonstrating strong average revenue per home and NOI Operating Portfolio Overview (Q4 2023) | Metric | Value | | :-------------------- | :---- | | Total Apartments | 7,681 | | % Physical Occupancy | 94.4% | | Average Revenue per Home | $3,854 | | Total NOI (in thousands) | $53,238 | | Total Debt Balance (in thousands) | $2,411,012 | New Jersey Waterfront Subtotal (Q4 2023) | Metric | Value | | :-------------------- | :---- | | Apartments | 5,067 | | % Occupied | 94.6% | | Average Revenue per Home | $4,219 | | NOI (in thousands) | $39,100 | Commercial, Developable Land and Other Non-Strategic Assets The company's commercial portfolio, primarily located in Weehawken and Morristown, New Jersey, totals 732,906 rentable square feet with a 73.8% leased rate in Q4 2023, and it also holds 4,578 developable land parcels (net of those under binding contract) and one remaining office asset, Harborside 5, which is under a binding sales contract Commercial Portfolio (Q4 2023) | Metric | Value | | :-------------------- | :---- | | Total Rentable SF | 732,906 | | % Leased | 73.8% | | Total NOI (in thousands) | $1,599 | | Total Debt Balance (in thousands) | $37,712 | - Total developable land parcels amount to 5,361, with 783 under binding sales contract, leaving 4,578 remaining[48] - The remaining office asset, Harborside 5 (Jersey City, NJ), totals 977,225 square feet with a 34.6% leased rate and an average base rent of $44.28. This asset is currently under a binding sales contract[48] Same Store Market Information The same-store portfolio (6,691 units) experienced a slight quarter-over-quarter decrease in NOI and occupancy in Q4 2023, but demonstrated strong year-over-year NOI growth, with the blended lease rate for the entire portfolio at 5.0% in Q4 2023 Same Store Market Information: Quarter-over-Quarter Comparison (Q4 2023 vs. Q3 2023) | Metric | 4Q 2023 (in thousands) | 3Q 2023 (in thousands) | Change | | :----------------- | :------ | :------ | :----- | | Total NOI | $45,024 | $45,310 | (0.6)% | | Total Occupancy | 94.4% | 95.4% | (1.1)% | | Blended Lease Rate | 5.0% | 9.4% | Same Store Market Information: Year-over-Year Comparison (Q4 2023 vs. Q4 2022) | Metric | 4Q 2023 (in thousands) | 4Q 2022 (in thousands) | Change | | :----------------- | :------ | :------ | :----- | | Total NOI | $45,024 | $39,340 | 14.4% | | Total Occupancy | 94.4% | 95.3% | (0.9)% | | Blended Lease Rate | 5.0% | 14.4% | - Average revenue per home (total) increased from $3,503 in Q4 2022 to $3,792 in Q4 2023[53] Same Store Performance The multifamily same-store portfolio achieved strong year-over-year growth in total property revenues and NOI for both Q4 and the full year 2023, despite a slight quarter-over-quarter NOI decrease in Q4, with total property expenses remaining relatively stable year-over-year Same Store Performance: Full Year Comparison (2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | Change (in thousands) | % Change | | :-------------------- | :-------- | :-------- | :------- | :------- | | Total Property Revenues | $241,078 | $217,284 | $23,794 | 11.0% | | Total Property Expenses | $84,818 | $84,442 | $376 | 0.4% | | Same Store GAAP NOI | $156,260 | $132,842 | $23,418 | 17.6% | Same Store Performance: Q4 Year-over-Year Comparison (2023 vs. 2022) | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | Change (in thousands) | % Change | | :-------------------- | :-------- | :-------- | :------- | :------- | | Total Property Revenues | $61,497 | $57,133 | $4,364 | 7.6% | | Total Property Expenses | $22,422 | $23,360 | $(938) | (4.0)% | | Same Store GAAP NOI | $39,075 | $33,773 | $5,302 | 15.7% | - Controllable expenses increased by 4.2% to $44,558 thousand. Non-controllable expenses decreased by 3.4% to $40,260 thousand, primarily due to a 5.7% reduction in real estate taxes[55] Debt This section details Veris Residential's debt profile, including secured permanent loans, debt characteristics, and maturity schedules, highlighting its largely fixed-rate and hedged debt structure Debt Profile As of December 31, 2023, the company's total secured permanent loans amounted to $1.8539 billion, a decrease from $1.9040 billion in 2022, with the portfolio primarily consisting of fixed-rate loans with varying maturities and no outstanding revolving credit or term loan debt at year-end Total Secured Permanent Loans (as of December 31) | Metric | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :-------------------------- | :----------- | :----------- | | Principal Balance Outstanding | $1,868,983 | $1,911,488 | | Total Secured Permanent Loans | $1,853,897 | $1,903,977 | - As of December 31, 2023, there was no outstanding balance on the revolving credit facility or term loans[58] - The Port Imperial Hotels loan was no longer applicable in 2023 (sold in February 2023). The Haus25 loan increased from $297,324 thousand in 2022 to $343,061 thousand in 2023 due to new permanent financing[58][82] Debt Summary and Maturity Schedule The company's pro rata debt portfolio is 99.9% fixed-rate or hedged, with a weighted average interest rate of 4.47% and a weighted average maturity of 3.7 years, and as of year-end 2023, VRE's net share of consolidated debt was $1.7806 billion Pro Rata Debt Portfolio Characteristics | Metric | Value | | :-------------------------- | :---- | | Fixed Rate & Hedged Debt | 99.9% | | Weighted Average Interest Rate | 4.47% | | Weighted Average Maturity | 3.7 years | Consolidated Debt (as of December 31, 2023) | Metric | Value (in thousands) | | :-------------------------------- | :---------- | | Total Consolidated Debt, net | $1,853,897 | | VRE Share of Total Consolidated Debt, net | $1,780,581 | | VRE Share of Unconsolidated Secured Debt | $298,678 | | Total Pro Rata Debt Portfolio | $2,094,345 | Reconciliations and Additional Details This section provides detailed reconciliations and additional financial information, including transaction activity, NOI adjustments, consolidated statements of operations footnotes, and details on unconsolidated joint ventures Annex 1: Transaction Activity This annex details the company's non-strategic asset dispositions in 2023 and early 2024, totaling $660.3 million in 2023 and $40 million year-to-date in 2024 - Total dispositions in 2023: $660,300 thousand[64] 2023 Dispositions by Asset Type | Asset Type | Number of Buildings | Gross Asset Value (000s) | | :----------- | :------------------ | :----------------------- | | Hotels | 2 | $97,000 | | Office | 5 | $483,500 | | Land | N/A | $79,800 | - Year-to-date 2024 dispositions: $40,000 thousand[65] Year-to-Date 2024 Dispositions by Asset Type | Asset Type | Number of Buildings | Gross Asset Value (000s) | | :----------- | :------------------ | :----------------------- | | Land | N/A | $9,700 | | Multifamily | 1 | $30,300 | Annex 2: Reconciliation of NOI This annex provides a reconciliation of net loss to Net Operating Income (NOI) for Q4 and Q3 2023, showing total NOI of $85.93 million in Q4 2023, with multifamily properties contributing the majority Total NOI (Q4 2023 vs. Q3 2023) | Metric | Q4 2023 (in thousands) | Q3 2023 (in thousands) | | :------ | :-------- | :-------- | | Net loss | $(5,746) | $(60,250) | | Net operating income (NOI) | $85,930 | $42,642 | Consolidated Multifamily NOI Summary (Q4 2023 vs. Q3 2023) | Metric | Q4 2023 (in thousands) | Q3 2023 (in thousands) | | :---------------------------------------------------- | :-------- | :-------- | | Total Consolidated Multifamily - Operating Portfolio | $39,381 | $39,708 | | Total Consolidated Commercial | $1,332 | $929 | | Total Consolidated Multifamily NOI | $41,373 | $41,065 | Annex 3: Consolidated Statements of Operations Footnotes This annex provides detailed footnotes and definitions for various financial metrics used in the consolidated statements of operations, including adjustments for unconsolidated joint ventures, non-real estate depreciation, free rent periods, and capital expenditures - Real estate related depreciation and amortization includes the company's share in unconsolidated joint ventures and excludes non-real estate related depreciation and amortization[71] - Straight-line rent adjustments include free rent periods and the company's share in unconsolidated joint ventures[71] - Net debt is calculated as the sum of senior unsecured notes, unsecured revolving credit facility, and mortgage loans, notes payable, and other obligations, less cash and cash equivalents and restricted cash at period-end[71] Annex 4: Detailed Consolidated Statement of Operations (Year-End) This annex presents a detailed year-end consolidated statement of operations, disaggregating revenues and expenses for 2023 and 2022 into "All Operations" and "Less: Discontinued Operations," providing a comprehensive view of the company's financial performance Total Revenues (Full Year 2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | | :------------ | :-------- | :-------- | | All Operations | $300,945 | $360,990 | | Total | $279,859 | $233,448 | Total Expenses (Full Year 2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | | :------------ | :-------- | :-------- | | All Operations | $327,508 | $438,947 | | Total | $310,373 | $265,663 | Net Loss (Full Year 2023 vs. 2022) | Metric | FY 2023 (in thousands) | FY 2022 (in thousands) | | :------------ | :-------- | :-------- | | Net Loss | $(112,361) | $(34,885) | | Net loss available to common shareholders | $(107,265) | $(52,066) | Annex 5: Core FFO per Diluted Share This annex details the reconciliation of net income (loss) to FFO and Core FFO per diluted share, covering Q3 2023, the full year, and the corresponding period in 2022, highlighting adjustments made to derive these non-GAAP metrics Core FFO per Diluted Share (Full Year 2023 vs. 2022) | Metric | FY 2023 | FY 2022 | | :--------------------------------- | :-------- | :-------- | | Net income (loss) available to common shareholders | $(1.06) | $(0.52) | | FFO | $0.21 | $0.89 | | Core FFO | $0.53 | $0.44 | - Key adjustments include real estate related depreciation and amortization, property impairment, gain/loss on disposition of rental properties, loss on extinguishment of debt, and Rockpoint acquisition premium[75] Annex 6: Unconsolidated Joint Ventures This annex provides detailed information on the company's unconsolidated joint ventures, primarily involving multifamily properties, showcasing their physical occupancy, VRE's equity share, NOI, and debt positions Unconsolidated Joint Ventures Overview (Q4 2023) | Metric | Value | | :-------------------- | :-------- | | Total Units (Multifamily) | 2,146 | | Total Physical Occupancy | 93.4% | | Total VRE Share of 4Q NOI (in thousands) | $7,768 | | Total VRE Share of Debt (in thousands) | $307,279 | - The largest multifamily unconsolidated joint venture by VRE's share of debt is Urby Harborside ($157,881 thousand)[78] - The Metropolitan Lofts joint venture was sold on January 12, 2024, for a total valuation of approximately $30 million, with VRE's net proceeds share at $6 million[78] Annex 7: Debt Profile Footnotes This annex provides footnotes explaining effective interest rates, specific loan details, and refinancing activities related to the company's debt profile - Effective interest rate is defined to include deferred financing costs, terminated treasury lock agreement costs (if any), debt origination costs, mark-to-market adjustments on acquired debt, and other transaction costs[82] - Refinancing activities include Portside at East Pier (fixed-rate Freddie Mac loan refinanced with a 3-year SOFR cap), The Upton (SOFR cap of 1.0%), 145 Front at City Square (9-month SOFR cap of 4.0%), and Haus25 (construction loan repaid with new permanent Freddie Mac financing)[82] - In July 2023, the company acquired Rockpoint's interest in the company, funded by $175 million in bridge financing (revolving credit facility and term loan), which was fully repaid in October 2023[82] Annex 8: Multifamily Property Information This annex provides detailed information on the company's multifamily properties, including location, ownership percentage, number of apartments, rentable square footage, average size, and year of completion - The operating portfolio totals 7,681 apartments, 6,691,525 rentable square feet, with an average size of 871 square feet[83] - The New Jersey Waterfront subtotal comprises 5,067 apartments, 4,391,122 rentable square feet, with an average size of 867 square feet[83] - Newer properties include Haus25 (2022), RiverHouse 9 (2021), Capstone (2021), The Upton (2021), The James (2021), and The Emery (2020)[83] Non-GAAP Financial Definitions This section provides definitions for key non-GAAP financial measures used by Veris Residential, explaining their calculation and relevance in assessing financial performance Non-GAAP Financial Measures This section defines key non-GAAP financial measures used by Veris Residential, Inc., including Funds From Operations (FFO), Core FFO, Adjusted FFO (AFFO), Net Operating Income (NOI), Adjusted EBITDA, and EBITDAre, explaining their calculation and role in assessing financial performance - FFO (Funds From Operations): Defined by Nareit, excludes gains/losses and related impairments on sales of depreciable rental properties, and adds back real estate related depreciation and amortization, aiding in comparing operating performance of equity REITs[90] - Core FFO: FFO adjusted for certain items to facilitate period-over-period comparisons of the company's performance[88] - AFFO (Adjusted FFO): Core FFO less (i) recurring tenant improvements, leasing commissions, and capital expenditures, (ii) straight-line rent and net amortization of acquired above/below market leases, and (iii) other non-cash income, plus (iv) other non-cash expenses[88] - NOI (Net Operating Income): Total revenues less total operating expenses, used to evaluate unleveraged property type and market performance. Same-store NOI applies to properties owned by the company for both reporting periods[93] - Adjusted EBITDA: Core FFO plus interest expense, income tax expense, non-controlling interests in consolidated joint ventures' share of net income (loss), and the entity's share of Adjusted EBITDA from unconsolidated joint ventures, indicating the company's ability to incur and service debt[86] - EBITDAre (Earnings Before Interest, Tax, Depreciation, Amortization, and Rent Costs): Calculated per Nareit standards, net income (loss) plus interest expense, income tax expense, depreciation and amortization, gain/loss on disposition of depreciable property, impairment write-downs of depreciable property and investments in unconsolidated joint ventures, and adjustments to reflect the entity's share of EBITDAre from unconsolidated joint ventures[89] - Blended Net Rental Growth Rate: Weighted average of the net effective change in rent for new or renewal leases (including concessions) compared to the prior rent for the same apartment unit[87] Company Information This section provides essential company details, including contact information, headquarters, stock exchange listing, key executives, and equity research coverage Company Information This section provides key company contact information, headquarters address, stock exchange listing details, and a list of the executive team and equity research coverage - The company's headquarters are located in Jersey City, New Jersey[95] - The company is listed on the New York Stock Exchange under the ticker symbol VRE[95] - Key executives include Mahbod Nia (Chief Executive Officer), Anna Malhari (Chief Operating Officer), Amanda Lombard (Chief Financial Officer), Taryn Fielder (General Counsel & Secretary), and Jeff Turkanis (Executive Vice President & Chief Investment Officer)[95] - Equity research coverage includes analysts from Bank of America Merrill Lynch, BTIG, LLC, Citigroup, Truist, Evercore ISI, Green Street Advisors, and J.P. Morgan[96]