Veris Residential(US:VRE)2025-10-22 20:34Financial Performance - Total revenues for Q3 2025 reached $73,440,000, an increase of 7.6% compared to $68,175,000 in Q3 2024[27] - Net income for Q3 2025 was $81,326,000, compared to a net loss of $10,907,000 in Q3 2024, marking a significant turnaround[28] - 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[27] - For the three months ended September 30, 2025, net income was $75,237,000, compared to a net loss of $9,692,000 for the same period in 2024, representing a significant turnaround[30] - Net income from continuing operations for the nine months ended September 30, 2025, was $75,548, compared to a net loss of $16,066 in 2024[32] - For the nine months ended September 30, 2025, the net income was $79,439,000, a significant increase compared to a net loss of $12,641,000 for the same period in 2024[42] - Net income for the three months ended September 30, 2025, was $81.3 million, compared to a loss of $10.9 million in 2024, representing an increase of $92.2 million[189] - Net income increased significantly to $79.4 million in 2025, compared to a net loss of $12.6 million in 2024, representing a change of 728.4%[1] Revenue and Expenses - Revenue from leases for the nine months ended September 30, 2025, was $198,938,000, an increase of 8.3% from $183,786,000 in the same period of 2024[27] - Revenue from rental operations increased by $5.5 million, or 8.2%, to $72.9 million for the three months ended September 30, 2025, compared to $67.4 million in 2024[189] - Revenue from rental operations increased by $14.7 million, or 7.3%, to $215.1 million in 2025 compared to 2024[1] - Total expenses for Q3 2025 were $60,720,000, an increase from $57,353,000 in Q3 2024, reflecting a 4.1% rise[35] - Total property expenses increased by $4.5 million, or 21.4%, to $25.3 million, with real estate taxes rising by $1.6 million, or 18.2%[189] - Total property expenses increased by $4.6 million, or 6.7%, totaling $73.4 million in 2025[1] Assets and Liabilities - Total assets decreased to $2,791,763,000 as of September 30, 2025, down from $2,982,727,000 at the end of 2024[26] - Total liabilities decreased to $1,510,632,000 as of September 30, 2025, compared to $1,740,364,000 at the end of 2024[26] - The total assets of the company included restricted cash of $17,042,000 as of September 30, 2025, compared to $19,687,000 as of September 30, 2024[43] - The total carrying value of properties encumbered by mortgages and loans payable was approximately $1.9 billion as of September 30, 2025[107] - The Company’s total mortgages, loans payable, and other obligations netted approximately $1.4 billion as of September 30, 2025, with a weighted average interest rate of 4.77%[114] Equity and Dividends - The company has a total equity of $1,271,837,000 as of September 30, 2025, compared to $1,233,069,000 at the end of 2024[26] - Total equity increased to $1,271,837,000 as of September 30, 2025, up from $1,249,845,000 a year earlier, reflecting a growth of approximately 1.8%[31] - Common stock dividends for the nine months ended September 30, 2025, totaled $22,770,000, compared to $17,222,000 for the same period in 2024, indicating a year-over-year increase of about 32.5%[31] - The Company declared dividends of $0.0800 per share for the nine months ended September 30, 2025, compared to $0.0525, $0.0600, and $0.0700 per share for the same period in 2024, reflecting an increase of approximately 52.4%[56] Cash Flow and Financing Activities - Total cash provided by operating activities increased to $50,498 in 2025 from $40,469 in 2024, representing a growth of approximately 24.9%[32] - Cash flows from investing activities significantly rose to $386,331 in 2025, up from $165,044 in 2024, indicating a growth of approximately 133.5%[32] - The company reported a net cash used in financing activities of $(435,319) in 2025, compared to $(227,623) in 2024, indicating a significant increase in cash outflows[32] - Cash and cash equivalents increased to $8,778 in 2025 from $7,251 in 2024, showing an increase of about 21.0%[34] - Cash and cash equivalents increased by $1.5 million to $25.8 million as of September 30, 2025[217] Investments and Joint Ventures - The company owned or had interests in 17 multifamily rental properties as of September 30, 2025, including 13 multifamily properties and three non-core assets[46] - The Company recognized $2.0 million in management, leasing, and development services for its unconsolidated joint ventures in the nine months ended September 30, 2025[76] - The Company recognized equity in earnings of $4,708,000 for the nine months ended September 30, 2025, an increase from $2,919,000 in 2024[80] - The Company had an aggregate investment of approximately $52.8 million in its equity method joint ventures, which owned four multifamily properties totaling 1,195 apartment units[73] Impairments and Gains - The Company recognized no impairment charges during the three months ended September 30, 2025, but recorded $15.7 million of impairment charges during the nine months ended September 30, 2025, related to three developable land parcels[123] - An impairment charge of $6.9 million was recognized on a multifamily property classified as held for sale located in Park Ridge, NJ, based on its estimated selling price during the nine months ended September 30, 2025[124] - The company recognized net realized gains of $91.0 million on the dispositions of four multifamily properties during the third quarter of 2025[195] - The Company recognized a gain of $35.3 million from the disposition of developable land in 2025, compared to $11.5 million in 2024[209] Debt and Interest - The Company has a $300 million senior secured revolving credit facility and a $200 million senior secured term loan facility, with an outstanding principal balance of $31 million on the revolving credit facility as of September 30, 2025, at an effective interest rate of 5.89%[96] - The Company incurred office and ground lease expenses of $0.7 million for each of the three months ended September 30, 2025, and 2024[133] - Cash paid for interest for the three months ended September 30, 2025, was $20.2 million, compared to $19.6 million for the same period in 2024[113] - Interest expense increased by $5.1 million, or 7.9%, primarily due to the consolidation of Sable[206] Stock and Shareholder Information - The Company did not repurchase any shares during the three and nine months ended September 30, 2025, despite having a $100 million share repurchase program approved[144] - As of September 30, 2025, the Company had 1,530,000 stock options granted and outstanding, all of which are vested, with a weighted average remaining contractual life of approximately 3.0 years[148] - The balance at September 30, 2025, for General Partner capital was $1,156,864, an increase from $1,113,942 in 2024, representing a growth of approximately 3.8%[142]