Veris Residential(US:VRE)2025-10-22 20:11Financial 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]