Veris Residential, Inc. Reports Second Quarter 2025 Results

Core Insights - Veris Residential, Inc. reported a net income of $0.12 per diluted share for Q2 2025, compared to $0.03 in Q2 2024, indicating a positive year-over-year growth [3][30] - The company achieved a Core FFO per diluted share of $0.17, slightly down from $0.18 in the same quarter last year, while Core AFFO per diluted share was $0.19, down from $0.21 [3][30] - The company raised its operational guidance for 2025, reflecting continued strength in rental growth and improved expense projections [18] Financial Performance - Total property revenue for Q2 2025 was $75.999 million, a 2.5% increase from $74.160 million in Q2 2024 [7] - Same Store NOI grew by 5.6% year-over-year for the quarter, reaching $51.309 million, while year-to-date NOI growth was 4.4% [7][13] - The average rent per home increased by 1.5% to $4,085 compared to $4,023 in Q1 2025 [7] Strategic Progress - The company has completed or has binding contracts for nearly $450 million in sales, significantly ahead of schedule [4] - An amendment to the credit facility resulted in a 55 basis point reduction in corporate borrowing costs, with potential for further savings as the company continues to de-lever [5][11] - The company is on track to achieve a Net Debt-to-EBITDA ratio below 9.0x by year-end 2026 [13] Transaction Activity - Year-to-date, Veris Residential has closed $268 million in non-strategic asset sales, with an additional $180 million in sales under binding contract [8][13] - The company purchased its partner's interest in the Jersey City Urby for $38.5 million, rebranding it to "Sable" and consolidating management [8] Balance Sheet and Liquidity - As of July 22, 2025, the company had liquidity of $181 million and a weighted average effective interest rate of 4.86% [10] - The total net debt as of June 30, 2025, was $1.795 billion, with a TTM Adjusted EBITDA of $159.162 million [12][30] Dividend Information - The company declared a dividend of $0.08 per share on July 10, 2025, for shareholders of record as of June 30, 2025 [17]