JERSEY CITY, N.J., April 24, 2024 /PRNewswire/ -- Veris Residential, Inc. (NYSE:VRE) (the "Company"), a forward-thinking, environmentally and socially conscious multifamily REIT, today reported results for the first quarter 2024. Three Months Ended, March 31, 2024 December 31, 2023 Net Income (Loss) per Diluted Share $(0.04) $(0.06) Core FFO per Diluted Share $0.14 $0.12 Core AFFO per Diluted Share $0.18 $0.14 Dividend per Diluted Share $0.0525 $0.0525 CAPITAL ALLOCATION AND BALANCE SHEET Sold $179 million of non-strategic assets, including the last office asset; two land parcels are currently under binding contract for $28 million. Secured a new $500 million three-plus-one-year term revolving credit facility and term loan package. Combination of proceeds from closed asset sales and new facilities to address all consolidated debt maturities through the end of 2025. Raising 2024 guidance, reflecting positive earnings impact anticipated from new, alternative financing strategy and anticipated debt reduction. OPERATIONAL PERFORMANCE Same Store multifamily Blended Net Rental Growth Rate of 4.6%. Same Store NOI growth of over 14% YOY and 4% sequentially. Earned highest Online Reputation Assessment (ORA®) Score of REITs in the United States. Achieved highest ISS ESG Corporate Score of real estate companies in the United States. Mahbod Nia, Chief Executive Officer, commented: "We had a positive start to the year, implementing and advancing a number of value-enhancing operational, capital recycling and balance-sheet-related initiatives, while continuing to deliver strong financial results. "Despite the challenging credit environment, we were able to secure a $500 million credit facility and term loan from a broad range of lenders, providing us with substantial liquidity, financial flexibility and potential for enhanced earnings, as reflected in our raised guidance. We also unlocked another $145 million of idle equity from non-strategic asset sales while continuing to generate solid operational performance, as evidenced by our Same Store year-over-year NOI growth of 14%. Looking ahead, we are well positioned to execute on our multi-pronged optimization strategy as we seek to continue creating value for our shareholders." March 31, 2024 March 31, 2023 Same Store Units 7,622 7,622 Same Store Occupancy 94.1 % 95.9 % Same Store Blended Rental Growth Rate 4.6 % 10.2 % Average Rent per Home $3,899 $3,622 SAME STORE PORTFOLIO PERFORMANCE Haus25 and The James were added to the Same Store pool in 2024. These properties contributed nearly $8.7 million to NOI in the first quarter. The following table presents a more detailed breakout of Same Store performance: Three Months Ended March 31, 2024 2023 % Total Property Revenue $74,092 $68,063 8.9 % Controllable Expenses 12,622 12,517 0.8 % Non-Controllable Expenses 12,083 12,318 (1.9) % Total Property Expenses 24,705 24,835 (0.5) % Same Store NOI $49,387 $43,228 14.2 % TRANSACTION ACTIVITY As previously announced, the Company closed on the sales of 2 Campus and The Metropolitan Lofts joint venture for a combined gross price of $40 million, releasing approximately $16 million in net proceeds. The last office asset in the portfolio, Harborside 5, sold for $85 million, releasing approximately $81 million in net proceeds. Subsequent to quarter end, 107 Morgan land parcel sold for $54 million, releasing approximately $48 million in net proceeds. An additional $28 million across two land parcels are under binding contract with an expected close in the first half of 2024. FINANCE AND LIQUIDITY Virtually all (99.9%) of the Company`s debt is hedged or fixed. The Company`s total debt portfolio has a weighted average rate of 4.4% and weighted average maturity of 3.5 years. Three Months Ended, Balance Sheet Metric March 31, 2024 December 31, 2023 Weighted Average Interest Rate 4.4 % 4.5 % Weighted Average Years to Maturity 3.5 3.7 Interest Coverage Ratio 1.5x 1.5x Net Debt 1,714,800 1,799,318 TTM EBITDA 142,543 151,201 TTM Net Debt to EBITDA 12.0x 11.9x On April 22, 2024, the Company successfully replaced its existing revolving credit facility and term loan package with a new $500 million secured facility package, comprising a $200 million delayed-draw term loan and $300 million revolving credit facility. Both the revolving credit facility and term loan have a three-year term and a one-year extension option. The facility package also has sustainability linked KPIs and includes a $200 million accordion feature. Proceeds from the facilities will be used to repay existing loans over time as well as for general corporate purposes. No funds were drawn at closing. The Company expects to utilize interest rate caps to partially hedge future drawn funds. DIVIDEND The Company paid a dividend of $0.0525 per share on April 16, 2024. ESG In the first quarter, Veris Residential earned the highest ISS ESG Corporate Score of all real estate companies in the United States, surpassing all but three real estate companies globally. The Company was also named a Gold Green Lease Leader by the US Department of Energy and secured three awards from the International WELL Building Institute: the WELL Concept Leader Award, Equity Leadership Award, and Commitment and Engagement Award. GUIDANCE As a result of the anticipated earnings impact of the Company`s new credit facilities and associated debt reduction, the Company is raising its Core FFO per Share guidance in accordance with the following table: 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 % Core FFO per Share Guidance Low High Net Loss per Share $(0.38) — $(0.34) Add back: Depreciation per Share $0.88 — $0.88 Core FFO per Share $0.50 — $0.54 CONFERENCE CALL/SUPPLEMENTAL INFORMATION An earnings conference call with management is scheduled for Thursday, April 25, 2024, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com/. The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential first quarter 2024 earnings conference call. The conference call will be rebroadcast on Veris Residential, Inc.'s website at:http://investors.verisresidential.com/ beginning at 8:30 a.m. Eastern Time on Thursday, April 25, 2024. A replay of the call will also be accessible Friday, April 26, 2024, through Sunday, May 26, 2024, by calling (844) 512-2921 (domestic) or (412) 317-6671 (international) and using the passcode, 137343562. Copies of Veris Residential, Inc.'s first quarter 2024 Form 10-Q and first quarter 2024 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website: Financial Results In addition, once filed, these items will be available upon request from:Veris Residential, Inc. Investor Relations DepartmentHarborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311 ABOUT THE COMPANY Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment. For additional information on Veris Residential, Inc. and our properties available for lease, please visit http://www.verisresidential.com/. The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the "10-Q") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings. We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law. Investors Media Anna Malhari Amanda Shpiner/Grace Cartwright Chief Operating Officer Gasthalter & Co. Additional details in Company Information.   Consolidated Balance Sheet (in thousands) (unaudited)   March 31, 2024 December 31, 2023 ASSETS Rental property Land and leasehold interests $463,826 $474,499 Buildings and improvements 2,633,849 2,782,468 Tenant improvements 8,391 30,908 Furniture, fixtures and equipment 105,668 103,613 3,211,734 3,391,488 Less – accumulated depreciation and amortization (372,241) (443,781) 2,839,493 2,947,707 Real estate held for sale, net 66,975 58,608 Net investment in rental property 2,906,468 3,006,315 Cash and cash equivalents 112,701 28,007 Restricted cash 25,649 26,572 Investments in unconsolidated joint ventures 118,830 117,954 Unbilled rents receivable, net 1,542 5,500 Deferred charges and other assets, net 45,999 53,956 Accounts receivable 1,671 2,742 Total Assets $3,212,860 $3,241,046 LIABILITIES & EQUITY Mortgages, loans payable and other obligations, net 1,853,149 1,853,897 Dividends and distributions payable 5,642 5,540 Accounts payable, accrued expenses and other liabilities 53,839 55,492 Rents received in advance and security deposits 12,234 14,985 Accrued interest payable 6,486 6,580 Total Liabilities 1,931,350 1,936,494 Redeemable noncontrolling interests 9,294 24,999 Total Stockholders' Equity 1,132,231 1,137,478 Noncontrolling interests in subsidiaries: Operating Partnership 106,544 107,206 Consolidated joint ventures 33,441 34,869 Total Noncontrolling Interests in Subsidiaries $139,985 $142,075 Total Equity $1,272,216 $1,279,553 Total Liabilities and Equity $3,212,860 $3,241,046   Consolidated Statement of Operations (In thousands, except per share amounts) (unaudited) 1 Three Months Ended March 31, REVENUES 2024 2023 Revenue from leases $60,642 $56,097 Real estate services 922 911 Parking income 3,745 3,728 Other income 2,031 1,862 Total revenues 67,340 62,598 EXPENSES Real estate taxes 9,177 9,559 Utilities 2,271 2,063 Operating services 12,570 11,383 Real estate services expenses 5,242 1,943 General and administrative 11,088 10,281 Transaction related costs 516 1,027 Depreciation and amortization 20,117 21,788 Land and other impairments, net — 3,396 Total expenses 60,981 61,440 OTHER (EXPENSE) INCOME Interest expense (21,500) (22,014) Interest and other investment income 538 116 Equity in earnings (losses) of unconsolidated joint ventures 254 (68) Gain (loss) on disposition of developable land 784 (22) Gain (loss) on sale of unconsolidated joint venture interests 7,100 — Other income (expense), net 255 1,998 Total other (expense) income, net (12,569) (19,990) Loss from continuing operations before income tax expense (6,210) (18,832) Provision for income taxes (59) — Loss from continuing operations after income tax expense (6,269) (18,832) Income from discontinued operations 252 1,822 Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net 1,548 780 Total discontinued operations, net 1,800 2,602 Net loss (4,469) (16,230) Noncontrolling interest in consolidated joint ventures 495 587 Noncontrolling interests in Operating Partnership of income from continuing operations 523 2,277 Noncontrolling interests in Operating Partnership in discontinued operations (155) (241) Redeemable noncontrolling interests (297) (6,366) Net loss available to common shareholders $(3,903) $(19,973) Basic earnings per common share: Net loss available to common shareholders $(0.04) $(0.27) Diluted earnings per common share: Net loss available to common shareholders $(0.04) $(0.27) Basic weighted average shares outstanding 92,275 91,226 Diluted weighted average shares outstanding(6) 100,968 100,526 1 For more details see Reconciliation to Net Income (Loss) to NOI   FFO, Core FFO and Core AFFO    (in thousands, except per share/unit amounts) Three Months Ended March 31, 2024 2023 Net loss available to common shareholders $(3,903) $(19,973) Add (deduct):  Noncontrolling interests in Operating Partnership (523) (2,277) Noncontrolling interests in discontinued operations 155 241 Real estate-related depreciation and amortization on continuing operations(1) 22,631 24,129 Real estate-related depreciation and amortization on discontinued operations 668 6,815 Continuing operations: Gain on sale from unconsolidated joint ventures (7,100) — Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net (1,548) (780) FFO(2) $10,380 $8,155 Add/(Deduct): Loss from extinguishment of debt, net — 12 Land and other impairments — 3,396  (Gain) Loss on disposition of developable land (784) 22 Rebranding and Severance/Compensation related costs (G&A) 1,637 1,148 Rebranding and Severance/Compensation related costs (RE Services) 1,526 — Amortization of derivative premium 904 1,133 Transaction related costs 516 1,027 Core FFO $14,179 $14,893 Add (Deduct) Non-Cash Items: Straight-line rent adjustments(3) 25 (1,253) Amortization of market lease intangibles, net (7) (30) Amortization of lease inducements 7 15 Amortization of stock compensation 3,727 2,877 Non-real estate depreciation and amortization 210 384 Amortization of deferred financing costs 1,242 1,211 Deduct: Non-incremental revenue generating capital expenditures: Building improvements (1,040) (2,092) Tenant improvements and leasing commissions(4) (9) (352) Tenant improvements and leasing commissions on space vacant for more than one year — (736) Core AFFO(2) $18,334 $14,917 Funds from Operations per share/unit-diluted $0.10 $0.08 Core Funds from Operations per share/unit-diluted $0.14 $0.15 Dividends declared per common share $0.0525 — See Non-GAAP Financial Definitions. See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.     Adjusted EBITDA and EBITDAre ($ in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Core FFO (calculated on a previous page) $14,179 $14,893 Deduct: Equity in (earnings) loss of unconsolidated joint ventures (459) 68 Equity in earnings share of depreciation and amortization (2,724) (2,576) Add-back: Interest expense 21,500 22,836 Amortization of derivative premium (904) (1,133) Recurring joint venture distributions 1,701 1,547 Noncontrolling interests in consolidated joint ventures (495) (587) Redeemable noncontrolling interests 297 6,366 Income tax expense 82 51 Adjusted EBITDA $33,177 $41,465 Add/(Deduct): Noncontrolling interests in Operating Partnership of income from continuing operations (523) (2,277) Noncontrolling interests in Operating Partnership in discontinued operations 155 241 Noncontrolling interests in consolidated joint ventures(a) (495) (587) Redeemable noncontrolling interests 297 6,366 Interest expense 21,500 22,836 Income tax expense 82 51 Depreciation and amortization 20,785 28,754 Deduct: Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net (1,548) (780) Equity in (earnings) loss of unconsolidated joint ventures (254) 68 Add: Company's share of property NOI's in unconsolidated joint ventures(1) 7,728 13,381 EBITDAre $43,824 $48,080 Add: Loss from extinguishment of debt, net — 12 Severance and compensation-related costs 1,637 1,148 Transaction related costs 516 1,027 Land and other impairments, net — 3,396 Gain on disposition of developable land (784) 22 Amortization of derivative premium 904 1,133 Adjusted EBITDAre $46,097 $54,818 Net debt at period end(5) $1,714,800 $1,763,369 Net debt to Adjusted EBITDA 12.9x 10.6x See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.   See Non-GAAP Financial Definitions. a) See Noncontrolling Interests in Consolidated Joint Ventures.     Components of Net Asset Value ($ in thousands)   Real Estate Portfolio Other Assets Operating Multifamily NOI1  Total   At Share  Cash and Cash Equivalents2 $142,180 New Jersey Waterfront $165,056 $140,266 Restricted Cash 25,649 Massachusetts 25,080 25,080 Other Assets 49,212 Other 30,276 22,329 Subtotal Other Assets $217,041 Total Multifamily NOI $220,412 $187,676 Commercial NOI3 4,588 3,712 Liabilities and Other Considerations Total NOI $225,000 $191,387 Operating - Consolidated Debt at Share $1,793,947 Non-Strategic Assets Operating - Unconsolidated Debt at Share 297,806 Other Liabilities 78,201 Non-Strategic Assets Under Binding Contract4 $28,000 Revolving Credit Facility5 — Estimated Land Value6 187,311 Term Loan5 — Subtotal Non-Strategic Assets $215,311 Preferred Units 9,294 Subtotal Liabilities and Other Considerations $2,179,248 Outstanding Shares7