Exhibit 99.1

Picture 5

 


 

 

 

Forward-Looking Statements





The Company considers 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. The Company intends 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 the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, the Company 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.



In addition, the extent to which the ongoing COVID-19 pandemic impacts us and our tenants and residents will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.



Among the factors about which the Company has made assumptions are:

-

risks and uncertainties affecting the general economic climate and conditions, which in turn may have a negative effect on the fundamentals of the Company’s business and the financial condition of the Company’s tenants and residents;

-

the value of the Company’s real estate assets, which may limit the Company’s ability to dispose of assets at attractive prices or obtain or maintain debt financing secured by our properties or on an unsecured basis;

-

the extent of any tenant bankruptcies or of any early lease terminations;

-

the Company’s ability to lease or re-lease space at current or anticipated rents;

-

changes in the supply of and demand for the Company’s properties;

-

changes in interest rate levels and volatility in the securities markets;

-

the Company’s ability to complete construction and development activities on time and within budget, including without limitation obtaining regulatory permits and the availability and cost of materials, labor and equipment;

-

the Company’s ability to attract, hire and retain qualified personnel;

-

forward-looking financial and operational information, including information relating to future development projects, potential acquisitions or dispositions, leasing activities, capitalization rates and projected revenue and income;

-

changes in operating costs;

-

the Company’s ability to obtain adequate insurance, including coverage for natural disasters and terrorist acts;

-

the Company’s credit worthiness and the availability of financing on attractive terms or at all, which may adversely impact our ability to pursue acquisition and development opportunities and refinance existing debt and the Company’s future interest expense;

-

changes in governmental regulation, tax rates and similar matters; and

-

other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants or residents will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated.



For further information on factors which could impact us and the statements contained herein, see Item 1A: Risk Factors in Veris Residential, Inc.’s (“VRE”) Annual Report on Form 10-K for the year ended December 31, 2021. We assume no obligation to update and supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.



This Supplemental Operating and Financial Data is not an offer to sell or solicitation to buy any securities of VRE. Any offers to sell or solicitations of VRE shall be made by means of a prospectus. The information in this Supplemental Package 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 VRE for the same period with the Securities and Exchange Commission (the “SEC”) and all of the VRE’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 Supplemental Package without reference to the 10-Q and the Public Filings. Any investors’ receipt of, or access to, the information contained herein is subject to this qualification.



This Supplemental Operating and Financial Data should be read in connection with the Company’s first quarter 2022 earnings press release (included as Exhibit 99.2 of the Company’s Current Report on Form 8-K, filed on May 4, 2022), as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Operating and Financial Data.

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Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre



Funds from operations (“FFO”) is defined as net income (loss) before noncontrolling interests of unitholders, computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses from depreciable rental property transactions (including both acquisitions and dispositions), and impairments related to depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from property transactions and impairments related to depreciable rental property (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs. 

FFO per share should not be considered as an alternative to net income available to common shareholders per share as an indication of the Company’s performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company’s FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts (“NAREIT”). A reconciliation of net income per share to FFO per share is included in the financial tables above.

Core FFO is defined as FFO, as adjusted for items that may distort the comparative measurement of the Company’s performance over time.  Adjusted FFO ("AFFO") is defined as Core FFO less (i) recurring tenant improvements, leasing commissions and capital expenditures, (ii) straight-line rents and amortization of acquired above/below-market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges.  Core FFO and AFFO are both non-GAAP financial measures that are not intended to represent cash flow and are not indicative of cash flows provided by operating activities as determined in accordance with GAAP.  Core FFO and AFFO are presented solely as supplemental disclosures that the Company’s management believes provides useful information regarding the Company's operating performance and its ability to fund its dividends. There are not generally accepted definitions established for Core FFO or AFFO.  Therefore, the Company's measures of Core FFO and AFFO may not be comparable to the Core FFO and AFFO reported by other REITs.  A reconciliation of net income to Core FFO and AFFO are included in the financial tables above.

Net operating income (“NOI”) represents total revenues less total operating expenses, as reconciled to net income above. Same Store GAAP NOI and Same Store Cash NOI are reconciled to Total Property Revenues. The Company considers NOI, Same Store GAAP NOI, and Same Store Cash NOI to be meaningful non-GAAP financial measures for making decisions and assessing unlevered performance of its property types and markets, as it relates to total return on assets, as opposed to levered return on equity.  As properties are considered for sale and acquisition based on NOI estimates and projections, the Company utilizes this measure to make investment decisions, as well as compare the performance of its assets to those of its peers.  NOI should not be considered a substitute for net income, and the Company’s use of NOI, Same Store GAAP NOI, Same Store Cash NOI may not be comparable to similarly titled measures used by other companies.  The Company calculates NOI before any allocations to noncontrolling interests, as those interests do not affect the overall performance of the individual assets being measured and assessed.

Same Store includes specific properties, which represent all in-service properties owned by the Company during the reported period, excluding properties sold, disposed of, held for sale, removed from service, or for any reason considered not stabilized, or being redeveloped or repositioned in the reporting period.

Adjusted EBITDA is a non-GAAP financial measure. The Company computes Adjusted EBITDA in accordance with what it believes are industry standards for this type of measure, which may not be comparable to Adjusted EBITDA reported by other REITs. The Company defines Adjusted EBITDA as Core FFO , plus interest expense, plus income tax expense, plus income (loss) in noncontrolling interest in consolidated joint ventures, and plus adjustments to reflect the entity's share of Adjusted EBITDA of unconsolidated joint ventures. The Company presents Adjusted EBITDA because the Company believes that Adjusted EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

EBITDAre is a non-GAAP financial measure. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company does. The White Paper on EBITDAre approved by the Board of Governors of NAREIT in September 2017 defines EBITDAre as net income (loss) (computed in accordance with Generally Accepted Accounting Principles, or GAAP), plus interest expense, plus income tax expense, plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated joint ventures, plus adjustments to reflect the entity's share of EBITDAre of unconsolidated joint ventures. The Company presents EBITDAre, because the Company believes that EBITDAre, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

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A picture containing sky, outdoor, water

Description automatically generated

Company Highlights

4


 

 

 

Q1 2022 Highlights



·

The 6,691-unit operating multifamily portfolio and the Same Store 5,825-unit operating multifamily portfolio were 97.5% and 97.2% occupied, respectively, as of March 31, 2022

·

First quarter 2022,  year-over-year and quarter-over-quarter Same Store NOI for the operating multifamily portfolio increased by 20.0% and 6.8%, respectively, reflecting higher occupancy, lower concessions and increasing market rents during the quarter

·

Multifamily Blended Net Rental Growth Rate1 was 16%  during the first quarter 2022

·

Haus25, a 750-unit property located in Jersey City, NJ commenced leasing on April 6, 2022 and was 29% leased as of May 1, 2022 with 216 new leases signed

·

On March 16, 2022, the Company entered into an off-market transaction to acquire The James, a Class-A 240-unit property located in Park Ridge, NJ for $130 million, or a 4.0% cap rate

·

Completed the disposal of four land parcels located in West Windsor, Weehawken and Jersey City, NJ for $129.5 million

·

Strengthened executive leadership with the appointments of Jeff Turkanis and Taryn Fielder as Chief Investment Officer and General Counsel, respectively























































































1.

Excludes Urby, Station House and RiverPark at Harrison; Blended Net Rental Growth Rate – weighted average of the net effective change in rent (inclusive of concessions) for a lease with a new resident or for a renewed lease on an apartment unit compared to the rent for the prior lease of the identical apartment unit.

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Q1 2022 Key Financial Metrics







 

 

 

 

 

 

 

 



Three Months Ended

 

 

Three Months Ended



March 31, 2022

 

December 31, 2021

 

 

March 31, 2022

 

December 31, 2021

Net Income / (Loss) per Diluted Share

($0.13)

 

($0.32)

 

Key Portfolio Statistics

 

 

 

Core FFO per Diluted Share(1)

$0.09

 

$0.17

 

Multifamily Portfolio

 

 

 

Weighted Average - Diluted Shares(2)

99,934,499 

 

99,962,745 

 

Operating Units

6,691

 

6,691

Total Equity

$2.2 billion

 

$2.4 billion

 

% Physical Occupancy

97.5%

 

96.6%

Total Debt

$2.2 billion

 

$2.4 billion

 

Average Rent per Home(3)

$3,103

 

$2,974

Total Capitalization

$4.5 billion

 

$4.8 billion

 

In-Construction Units

750

 

750

Debt-to-Undepreciated Assets

44.9%

 

46.8%

 

Land Bank Units

7,257

 

7,257

Net Debt

$2.1 billion

 

$2.3 billion

 

Office Portfolio

 

 

 

Annualized Adjusted EBITDA(1)

$113,692

 

$152,732

 

Square Feet of Office Space

4.3 million

 

4.9 million

Net Debt-to-Adjusted EBITDA

18.8x

 

15.3x

 

Consolidated In-Service Properties

6

 

7

Interest Coverage Ratio(1)

1.9x

 

2.4x

 

% Leased Office

73.3%

 

74.0%



 

 

 

 

% Commenced Occupancy

66.7%

 

71.8%



 

 

 

 

Cash Rental Rate Roll-Up/(Down)(4)

(11.7%)

 

2.5%



 

 

 

 

GAAP Rental Rate Roll-Up/(Down)(4)

(4.9%)

 

14.9%



 

 

 

 

Average In-Place Rent per Square Foot

$42.43

 

$41.40





 

















1.

See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. FFO is calculated in accordance with the definition of the National Association of Real Estate Investment Trusts (NAREIT). Interest Coverage Ratio is calculated as Adjusted EBITDA divided by interest expense.

2.

Includes any outstanding preferred units presented on a converted basis into common units, noncontrolling interests in consolidated joint ventures and redeemable noncontrolling interests.

3.

Q1 2022 is based on 6,691 units including three recently stabilized properties. Q4 2021 is based on 5,825 units, which exclude three lease-up properties stabilized during the quarter.

4.

Cash Rental Rate Roll-Up is the change in starting rent for applicable signed lease transactions in the period compared to the last month’s rent for the prior space leased. GAAP Rental Rate Roll-Up is the change in average monthly rent for applicable signed lease transactions in the period compared to the average monthly rent for the prior space leased.

6


 

 

 

Components of Net Asset Value  Multifamily 

$ in thousands









 

 

 

 

 

Real Estate Portfolio - Multifamily

 

 

 

Other Assets

 



 

 

 

 

 

Operating Multifamily NOI (Q1 Annualized)(1)

Total

At Share

 

Cash and Cash Equivalents

$8,630

New Jersey Waterfront

$85,576

$73,037

 

Restricted Cash

19,808 

Massachusetts

21,452 

21,452 

 

Other Assets

43,579 

Other

16,648 

10,717 

 

Subtotal Other Assets

$72,017

Lease-up Properties stabilized in Q4 2021(2)

19,384 

14,834 

 

 

 

Haus25(3) (Stabilized NOI)

28,098 

28,098 

 

Liabilities

 

Total Multifamily NOI

$171,158

$148,138

 

 

 

Commercial (Q1 Annualized)

4,003 

2,500 

 

Operating - Consolidated Debt at Share

$1,436,978

Hotels (Q1 Annualized)

(4,076)

(4,076)

 

Operating - Unconsolidated Debt at Share

314,118 

Total NOI

$171,085

$146,562

 

In-Construction - Wholly Owned Debt

269,083 



 

 

 

In-Construction - Unfunded Wholly Owned Debt

30,917 

Multifamily Land Value

 

 

 

Hotels Debt

89,000 



 

 

 

Other Liabilities

51,937 

Gross Estimated Proceeds from Land Sales(4)

 

$125,500

 

Subtotal Liabilities

$2,192,033

Estimated Value of Land(5)

 

$272,642

 

 

 



 

 

 

Other Considerations

 



 

 

 

 

 



 

 

 

Rockpoint Interest

$472,210



 

 

 

 

 



 

 

 

Outstanding Shares

 



 

 

 

 

 



 

 

 

Common Shares (Outstanding as of March 31, 2022)

99,918,144 



 

 

 

Fully Diluted Shares for Q1 2022

99,934,499 



 

 

 

 

 







Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. Net Asset Value (“NAV”) is the metric represents the net projected value of the Company’s interest after accounting for all priority debt and equity payments.  The metric includes capital invested by the Company. Excludes other unconsolidated JV.

1.

Please see Operating Portfolio – Multifamily details for breakdown.

2.

Includes RiverHouse 9, Capstone at Port Imperial and The Upton.

3.

See In-Construction Portfolio details for costs.

4.

Includes 4 land parcel sold post March 31, 2022 and under contract.

5.

Based on 5,009 potential units.

7


 

 

 

Components of Net Asset Value  Other

$ in thousands





 

 

 

 

 

Real Estate Portfolio - Office

 

 

 

Other Assets

 



 

 

 

 

 

Office NOI (Q1 Annualized)

Total

At Share

 

Cash and Cash Equivalents

$17,508

Waterfront(1)

$27,948

$27,948

 

Restricted Cash

1,345 

Suburban

4,564 

4,564 

 

Other Assets

144,156 

Hotel

(3,252)

(1,628)

 

Subtotal Other Assets

$163,009

Total GAAP NOI(2)

$29,260

$30,884

 

 

 

Less: straight-lining of rents adj. and ASC 805

224 

222 

 

Liabilities

 

Total Cash NOI(3)

$29,036

$30,662

 

 

 



 

 

 

Revolving Credit Facility

$78,000

Office Sales / Land Value

 

 

 

Consolidated Property Debt

250,000 



 

 

 

Unconsolidated Property Debt at Share

50,000 

Gross Proceeds from Office Sale(4)

 

$380,000

 

Other Liabilities

57,928 

Estimated Value of Land(5)

 

94,008 

 

Subtotal Liabilities

$435,928



 

 

 

 

 



 

 

 

Other Considerations

 



 

 

 

 

 



 

 

 

Preferred Equity / LP Interest

40,302 



 

 

 

 

 



 

 

 

Outstanding Shares

 



 

 

 

 

 



 

 

 

Common Shares (Outstanding as of March 31, 2022)

99,918,144 



 

 

 

Fully Diluted Shares for Q1 2022

99,934,499 















































Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. Net Asset Value (“NAV”) is the metric represents the net projected value of the Company’s interest after accounting for all priority debt and equity payments.  The metric includes capital invested by the Company. Excludes other unconsolidated JV.

1.

Excludes annualized Q1 Cash NOI from 111 River Street sold during the quarter and a property in Jersey City, NJ under contract as of March 31, 2022.

2.

The aggregate sum of: property-level revenue, straight-line and ASC 805 adjustments over the given time period; less: operating expense, real estate taxes and utilities over the same store portfolio.

3.

The aggregate sum of: property-level revenue, excluding straight-line and ASC 805 adjustments over the given time period; less: operating expense, real estate taxes and utilities over the same store portfolio.

4.

Excludes prepayment costs of up to $15 million.

5.

Estimated Land is based on the estimated buildable SF and marketable units at estimated market pricing. Includes Harborside Plaza 4, 3 Campus, Route 34 and Columbia. 

8


 

 

 





 

 

 

 

 

 

 

Disposition Activity



 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

$ in thousands (incl. per unit values) except per SF



 

Transaction

Number of

 

Percentage

Gross Asset

Price per



Location

Date

Buildings

SF

Leased

Value(1)

SF

Q1 2022 Dispositions

 

 

 

 

 

 

 

111 River Street

Hoboken, NJ

01/21/22

1

566,215 

81.3%

$210,000

$371

Total Q1 2022 Dispositions

 

 

1

566,215 

81.3%

$210,000

$371



 

 

 

 

 

 

 































 

 

 

Land

 

 

 



 

Transaction

Gross Asset



Location

Date

Value(1)

Q1 2022 Dispositions

 

 

 

Palladium Residential Land

West Windsor, NJ

03/22/22

$24,250

Palladium Commercial Land

West Windsor, NJ

03/22/22

5,250

Total Q1 2022 Dispositions

 

 

$29,500



 

 

 

Q2 2022 Dispositions to Date

 

 

 

PI Park

Weehawken, NJ

04/15/22

$30,000

Urby II / III

Jersey City, NJ

04/21/22

70,000

Total Q2 2022 Dispositions to Date

 

 

$100,000









































































1.

Dispositions list gross sales proceeds at 100% ownership level.

9


 

 

 



 

 

 

 

 

 

 

 

 

 

Same Store Performance

$ in thousands (unaudited)

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Multifamily Same Store(1)

 

 

 

 

 

 



 

Three Months Ended March 31,

 

Sequential



 

2022

2021

Change

%  

 

Q1 2022

Q4 2021

Change

%  

Total Property Revenues (GAAP)

$44,414  $38,891  $5,523  14.2% 

 

$44,414  $42,679  $1,735  4.1% 

Real Estate Taxes

6,483  5,912  571  9.7% 

 

6,483  5,813  670  11.5% 

Payroll

3,148  2,808  340  12.1% 

 

3,148  3,316  (168) (5.1%)

Repairs & Maintenance

3,146  2,834  312  11.0% 

 

3,146  3,456  (310) (9.0%)

Utilities

1,511  1,687  (176) (10.4%)

 

1,511  1,248  263  21.1% 

Insurance

1,085  880  205  23.3% 

 

1,085  890  195  21.9% 

Marketing

802  1,182  (380) (32.1%)

 

802  1,176  (374) (31.8%)

Management Fees & Other

1,854  1,605  249  15.5% 

 

1,854  2,072  (218) (10.5%)

Total Property Expenses

18,029  16,908  1,121  6.6% 

 

18,029  17,971  58  0.3% 

Same Store GAAP NOI(2)

$26,385  $21,983  $4,402  20.0% 

 

$26,385  $24,708  $1,677  6.8% 

Total Units

5,825  5,825 

-

-

 

5,825  5,825 

-

-

% Ownership

83.9%  83.9% 

-

-

 

83.9%  83.9% 

-

-

% Occupied - Quarter End

97.2%  89.8%  7.4% 

-

 

97.2%  96.5%  0.7% 

-







































































































































Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”.

1.

Values represent the Company’s pro rata ownership of operating portfolio.

2.

Aggregate property-level revenue over the given period; less: operating expense, real estate taxes and utilities over the same period for the same store portfolio.



 

 

 

 

 

 

10


 

 

 

Balance Sheet

 

 

 

 

 

 

$ in thousands (unaudited)

 

 

 

 



March 31, 2022

December 31, 2021

ASSETS

Multifamily

Office

Elim. / Other

Total

 

 

Rental property

 

 

 

 

 

 

Land and leasehold interests

$327,483  $21,023 

$348,506 

 

$348,505 

Buildings and improvements

2,060,674  620,730 

2,681,404 

 

2,682,223 

Tenant improvements

7,168  101,005 

108,173 

 

106,654 

Furniture, fixtures and equipment

94,755  6,935 

101,690 

 

100,011 

Land and improvements held for development

136,103  6,775 

142,878 

 

144,705 

Development and construction in progress

535,787  190,812 

726,599 

 

694,768 



3,161,970  947,280 

4,109,250 

 

4,076,866 

Less – accumulated depreciation and amortization

(218,851) (387,774)

(606,625)

 

(583,416)



2,943,119  559,506 

3,502,625 

 

3,493,450 

Rental property held for sale, net

146,881  265,177 

412,058 

 

618,646 

Net Investment in Rental Property

3,090,000  824,683 

3,914,683 

 

4,112,096 

Cash and cash equivalents

8,630  17,508 

26,138 

 

31,754 

Restricted cash

19,808  1,345 

21,153 

 

19,701 

Investments in unconsolidated joint ventures

135,116 

135,116 

 

137,772 

Unbilled rents receivable, net

4,290  48,871 

53,161 

 

72,285 

Deferred charges, goodwill and other assets, net(1)(2)

37,277  95,064  (25,000) 107,341 

 

151,347 

Accounts receivable

2,012  221 

2,233 

 

2,363 

Total Assets

$3,297,133  $987,692 

($25,000)

$4,259,825 

 

$4,527,318 

LIABILITIES & EQUITY

 

 

 

 

 

 

Revolving credit facility

78,000 

78,000 

 

148,000 

Mortgages, loans payable and other obligations, net

1,859,837  249,106 

2,108,943 

 

2,241,070 

Note payable to affiliate

25,000 

(25,000)

 

Dividends and distributions payable

132 

132 

 

384 

Accounts payable, accrued expenses and other liabilities

47,226  42,754 

89,980 

 

134,977 

Rents received in advance and security deposits

9,242  15,033 

24,275 

 

26,396 

Accrued interest payable

4,279  903 

5,182 

 

5,760 

Total Liabilities

1,945,584  385,928  (25,000) 2,306,512 

 

2,556,587 

Commitments and contingencies

 

 

 

 

 

 

Redeemable noncontrolling interests

472,210  40,302 

512,512 

 

521,313 

Total Stockholders’/Members Equity

839,668  436,013 

1,275,681 

 

1,281,982 

Noncontrolling interests in subsidiaries:

 

 

 

 

 

 

Operating Partnership

125,700 

125,700 

 

127,053 

Consolidated joint ventures

39,671  (251)

39,420 

 

40,383 

Total Noncontrolling Interests in Subsidiaries

$39,671  $125,449 

$165,120 

 

$167,436 

Total Equity

$879,339  $561,462 

$1,440,801 

 

$1,449,418 

Total Liabilities and Equity

$3,297,133  $987,692 

($25,000)

$4,259,825 

 

$4,527,318 













































1.

Includes mark-to-market lease intangible net assets of $10,865 and mark-to-market lease intangible net liabilities of $357 as of Q1 2022.

2.

Includes Prepaid Expenses and Other Assets attributable to Multifamily of $24,091 as follows: (i) deposits of $11,551, (ii) other receivables of $3,393, (iii) other prepaids/assets of $7,253, and (iv) prepaid taxes of $1,894.

11


 

 

 



 

 

 

 

 

 

Income Statement - Quarterly Comparison

 

 

$ in thousands, except per share amounts (unaudited)



Q1 2022

Q1 2021

REVENUES

Multifamily

Office

Less: Disc. Ops

Total

 



Revenue from leases:

 

 

 

 

 



Base rents

$39,440  $21,887 

$61,327  $61,620 



Escalations and recoveries from tenants

1,000  3,481 

4,481  4,151 



Real estate services

910 

910  2,527 



Parking income

2,983  1,194 

4,177  3,086 



Hotel income

1,417 

1,417  1,053 



Other income

767  26,020 

26,787  3,656 



Total revenues

$46,517  $52,582 

$99,099  $76,093 

EXPENSES

 

 

 

 

 



Real estate taxes

7,907  4,787 

12,694  11,831 



Utilities

1,979  1,954 

3,933  4,092 



Operating services

11,156  7,375 

18,531  15,450 



Real estate services expenses

2,328  35 

2,363  3,318 



General and administrative(1)

1,416  18,059 

19,475  13,989 



Depreciation and amortization

17,404  9,110 

26,514  28,173 



Land and other impairments

2,932 

2,932  413 



Total expenses

45,122  41,320 

86,442  77,266 

Operating Income (expense)

1,395  11,262 

12,657  (1,173)

OTHER (EXPENSE) INCOME

 

 

 

 

 



Interest expense

(12,263) (2,762)

(15,025) (17,610)



Interest and other investment income (loss)

157 

158  17 



Equity in earnings (loss) of unconsolidated joint ventures

(487)

(487) (1,456)



Realized and unrealized gains (losses) on disposition

1,836 

1,836 



Gain on disposition of developable land

2,623 

2,623 



Gain (loss) from extinguishment of debt, net

(6,289)

(6,289)



Total other income (expense)

(12,749) (4,435)

(17,184) (19,049)

Income from continuing operations

(11,354) 6,827 

(4,527) (20,222)



Income from discontinued operations

10,962 



Realized gains (losses) on disposition

22,781 



Total discontinued operations

33,743 

Net Income

(11,354) 6,827 

(4,527) 13,521 



Noncontrolling interest in consolidated joint ventures

974 

974  1,335 



Noncontrolling interests in Operating Partnership from continuing operations

898 

898  2,305 



Noncontrolling interests in Operating Partnership in discontinued operations

(3,067)



Redeemable noncontrolling interest

(6,016) (421)

(6,437) (6,471)

Net income (loss) available to common shareholders

($16,396)

$7,304 

($9,092)

$7,623 

Basic earnings per common share:

 

 

 

 

 

Net income (loss) available to common shareholders

 

 

 

($0.13)

$0.06 

Diluted earnings per common share:

 

 

 

 

 

Net income (loss) available to common shareholders

 

 

 

($0.13)

$0.06 

Basic weighted average shares outstanding

 

 

 

90,951,000  90,692,000 

Diluted weighted average shares outstanding

 

 

 

99,934,000  99,760,000 































12


 

 

 

1.

General and administrative includes $688k of General and administrative – property level which is also included in multifamily NOI.



 

 

FFO & Core FFO

$ in thousands except per share and ratios (unaudited)



Three Months Ended March 31,



2022

2021

Net income (loss) available to common shareholders

($9,092)

$7,623 

Add (deduct):  Noncontrolling interest in Operating Partnership

(898) (2,305)

Noncontrolling interests in discontinued operations

3,067 

Real estate-related depreciation and amortization on continuing operations(1)

28,859  30,122 

Real estate-related depreciation and amortization on discontinued operations

659 

Continuing operations: Realized and unrealized (gains) losses on disposition of rental property, net

(1,836)

Discontinued operations: Realized and unrealized (gains) losses on disposition of rental property, net

(22,781)

Funds from operations(2)

$17,033  $16,385 



 

 

Add/(Deduct):

 

 

(Gain)/Loss from extinguishment of debt, net

6,289 

Dead deal and other post-sale items in other income/expense

(1,717)

Land and other impairments

2,932  413 

(Gain) on disposition of developable land

(2,623)

CEO and related management changes costs

2,089 

Severance/Rebranding costs

7,642  1,045 

Lease breakage fee, net

(22,664)

Core FFO

$8,609  $18,215 



 

 

Diluted weighted average shares/units outstanding(6)

99,934,000  99,760,000 



 

 

Funds from operations per share-diluted

$0.17  $0.16 

Core Funds from Operations per share/unit-diluted

$0.09  $0.18 

Dividends declared per common share

$0.00  $0.00 































































































































13


 

 

 

Notes: See endnotes and “Information About FFO, Core FFO, AFFO,  NOI, Adjusted EBITDA & EBITDAre”.



 

 

AFFO & Adjusted EBITDA

$ in thousands, except per share amounts and ratios (unaudited)



Three Months Ended March 31,



2022

2021

Core FFO (calculated on previous page)

$8,609  $18,215 

Add (Deduct) Non-Cash Items:

 

 

Straight-line rent adjustments(3)

2,109  (1,279)

Amortization of market lease intangibles, net

(110) (1,032)

Amortization of lease inducements

38  (13)

Amortization of stock compensation

2,619  2,601 

Non-real estate depreciation and amortization

325  325 

Amortization of debt discount/(premium) and mark-to-market, net

167 

Amortization of deferred financing costs

1,177  907 

Deduct:

 

 

Non-incremental revenue generating capital expenditures:

 

 

      Building improvements

(3,249) (2,693)

      Tenant improvements and leasing commissions(4)

(5,971) (770)

Tenant improvements and leasing commissions on space vacant for more than one year

(6,292) (2,802)

Core AFFO(2)

($745)

$13,626 



 

 

Core FFO (calculated on previous page)

$8,609  $18,215 



 

 

Deduct:

 

 

Equity in earnings (loss) of unconsolidated joint ventures, net

487  1,456 

Equity in earnings share of depreciation and amortization

(2,671) (2,275)

Add-back:

 

 

Interest expense

15,025  18,904 

Recurring JV distributions

1,395  1,221 

Income (loss) in noncontrolling interest in consolidated joint ventures

(974) (1,334)

Redeemable noncontrolling interest

6,437  6,471 

Income tax expense

115  115 

Adjusted EBITDA

$28,423  $42,773 



 

 

Net debt at period end(5)

$2,139,652  $2,541,445 

Net debt to Adjusted EBITDA

18.8x

14.9x















































































































14


 

 

 



Notes: See endnotes and “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”.

15


 

 

 



 

 

EBITDAre - Quarterly Comparison    

$ in thousands (unaudited)



Three Months Ended March 31,



2022

2021

Net Income (loss) available to common shareholders

($9,092)

$7,623 

Add/(Deduct):

 

 

Noncontrolling interest in operating partnership

(898) (2,305)

Noncontrolling interest in discontinued operations

3,067 

Noncontrolling interest in consolidated joint ventures(a)

(974) (1,335)

Redeemable noncontrolling interest

6,437  6,471 

Interest expense

15,025  18,904 

Income tax expense

115  115 

Depreciation and amortization

26,513  28,832 

Deduct:

 

 

Continuing operations: Realized and unrealized (gains) losses on disposition of rental property, net

(1,836)

Discontinued operations: Realized and unrealized (gains) losses on disposition of rental property, net

(22,781)

Equity in (earnings) loss of unconsolidated joint ventures

487  1,456 

Add:

 

 

Property Impairments

Company's share of property NOI's in unconsolidated joint ventures(1)

6,027  4,233 

EBITDAre

$41,804  $44,280 

Add:

 

 

Loss from extinguishment of debt, net

6,289 

Severance/Rebranding costs

7,642  1,045 

Dead deal and other post-sale items in Other income

(1,717)

Land and other impairments

2,932  413 

Gain on disposition of developable land

(2,623)

CEO and related management changes

2,089 

Lease breakage fee, net

(22,701)

Adjusted EBITDAre

$33,343  $46,110 

(a) Noncontrolling interests in consolidated joint ventures:

 

 

BLVD 425

(157) (313)

BLVD 401

(730) (767)

Port Imperial Garage South

(89) (185)

Port Imperial Retail South

12  (9)

Other consolidated joint ventures

(61)

Net losses in noncontrolling interests

($964)

($1,335)

Depreciation in noncontrolling interest in consolidated JV's

700  697 

Funds from operations - noncontrolling interest in consolidated JV's

($264)

($638)

Interest expense in noncontrolling interest in consolidated JV's

793  807 

Net operating income before debt service in consolidated JV's

$529  $169 







Notes: See unconsolidated joint venture NOI details and “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”.

16


 

 

 

Debt Summary & Maturity Schedule

·

Over 70% of the Company’s total debt portfolio (consolidated and unconsolidated) is hedged or fixed at a weighted average interest rate of 3.78% with a maturity of 5.2 years



 

 

 

 

 

 

 

 

$ in thousands

 

 

 

 

 

 

 

 



 

 

%

 

Weighted Average

 

Weighted Average

 



Balance

 

of Total

 

Interest Rate(1)

 

Maturity in Years

 

Fixed Rate Debt

 

 

 

 

 

 

 

 

Fixed Rate Secured Debt

$1,532,540

 

69.8%

 

3.70%

 

4.76 

 



 

 

 

 

 

 

 

 

Variable Rate Debt

 

 

 

 

 

 

 

 

Variable Rate Secured Debt

664,107 

 

30.2%

 

3.51%

 

2.52 

 

Totals / Weighted Average

$2,196,647

 

100.0%

 

3.64%

 

4.09 

 

Unamortized Deferred Financing Costs

(9,704)

 

 

 

 

 

 

 

Total Consolidated Debt, net

$2,186,943

 

 

 

 

 

 

 

Partners’ Share

(73,585)

 

 

 

 

 

 

 

VRE Share of Total Consolidated Debt, net(2)

$2,113,358

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Unconsolidated Secured Debt

 

 

 

 

 

 

 

 

VRE Share

364,118 

 

52.7%

 

3.63%

 

5.95 

 

Partners’ Share

327,184 

 

47.3%

 

3.63%

 

5.95 

 

Total Unconsolidated Secured Debt

$691,302

 

100.0%

 

3.63%

 

5.95 

 





Debt Maturity Schedule

Chart, bar chart

Description automatically generated

1.

The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.31 percent as of March 31, 2022, plus the applicable spread.

2.

Minority interest share of consolidated debt is comprised of $33.7 million at BLVD 425, $30.1 million at BLVD 401 and $9.8 million at Port Imperial South Garage.

17


 

 

 





 

 

 

 

 

 

Multifamily Debt Profile

 

 

 

 

$ in thousands

 

 

 

 



 

Effective

 

March 31,

 

Date of



Lender

Interest Rate(1)

 

2022

 

Maturity

Secured Construction Loans

 

 

 

 

 

 

RiverHouse 9(2)

Bank of New York Mellon

LIBOR+ 2.13%

 

90,024 

 

12/19/22

Haus25(3)

QuadReal Finance

LIBOR+ 2.70%

 

269,083 

 

12/01/24

Total Secured Construction Debt

 

 

 

359,107 

 

 

Secured Permanent  Loans

 

 

 

 

 

 

Marriott Hotels at Port Imperial

Fifth Third Bank

LIBOR+ 3.40%

 

89,000 

 

04/01/23

Portside at East Pier

CBRE Capital Markets/FreddieMac

3.57%

 

58,998 

 

08/01/23

Signature Place

Nationwide Life Insurance Company

3.74%

 

43,000 

 

08/01/24

Liberty Towers

American General Life Insurance Company

3.37%

 

265,000 

 

10/01/24

Portside II at East Pier

New York Life Insurance Co.

4.56%

 

97,000 

 

03/10/26

BLVD 425

New York Life Insurance Co.

4.17%

 

131,000 

 

08/10/26

BLVD 401

New York Life Insurance Co.

4.29%

 

117,000 

 

08/10/26

The Upton(4)

Bank of New York Mellon

LIBOR+ 1.58%

 

75,000 

 

10/27/26

145 Front at City Square

MUFG Union Bank

LIBOR+ 1.84%

 

63,000 

 

12/10/26

Quarry Place at Tuckahoe

Natixis Real Estate Capital LLC

4.48%

 

41,000 

 

08/05/27

BLVD 475

Northwestern Mutual Life

2.91%

 

165,000 

 

11/10/27

RiverHouse 11

Northwestern Mutual Life

4.52%

 

100,000 

 

01/10/29

Soho Lofts

New York Community Bank

3.77%

 

160,000 

 

07/01/29

Port Imperial Garage South

American General Life & A/G PC

4.85%

 

32,542 

 

12/01/29

The Emery

New York Community Bank

3.21%

 

72,000 

 

01/01/31

Principal Balance Outstanding

 

 

 

1,509,540 

 

 

Unamortized Deferred Financing Costs

 

 

 

(8,810)

 

 

Total Secured Permanent Debt

 

 

 

1,500,730 

 

 

Total Debt - Multifamily Portfolio - A

 

 

 

1,859,837 

 

 









































1.

Effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.

2.

RiverHouse 9 construction loan can be extended to December 19, 2023.

3.

Haus25 construction loan can be extended to December 1, 2025.

4.

Includes a 3-year LIBOR cap at a strike rate of 1.0%.



 

 

 

 

 

 

18


 

 

 

Office Debt Profile

 

$ in thousands

 

 

 

 

 

 



 

Effective

 

March 31,

 

Date of



Lender

Interest Rate(1)

 

2022

 

Maturity

Secured Permanent Loans

 

 

 

 

 

 

101 Hudson

Wells Fargo CMBS

3.20%

 

250,000 

 

10/11/26

Principal Balance Outstanding

 

 

 

250,000 

 

 

Unamortized Deferred Financing Costs

 

 

 

(894)

 

 

Total Secured Debt - Office Portfolio

 

 

 

249,106 

 

 



 

 

 

 

 

 

Secured Revolving Credit Facilities & Term Loans:

 

 

 

 

 

 

Secured Revolving Credit Facility

8 Lenders

LIBOR + 2.75%

 

78,000 

 

05/06/24



 

 

 

 

 

 

Total Debt - Office Portfolio - B

 

 

 

327,106 

 

 



 

 

 

 

 

 

Total Debt - Multifamily Portfolio - A

 

 

 

1,859,837 

 

 



 

 

 

 

 

 

Total Consolidated Debt: A + B = C

 

 

 

2,186,943 

 

 















































































 

 

 

 

 

 

 

 

19


 

 

 

Unconsolidated Joint Ventures

$ in thousands

 

 

 

 

 

 

 

 



 

 

Physical

VRE's Nominal

Q1 2022

Total

VRE Share

VRE Share

Property

 

Units

Occupancy

Ownership(1)

NOI(2)

Debt

of Q1 NOI

of Debt



 

 

 

 

 

 

 

 

Multifamily

 

 

 

 

 

 

 

 

Urby Harborside

 

762 

98.3%

85.0%

$4,710

$190,480

$4,004

$161,908

RiverTrace at Port Imperial

 

316 

98.1%

22.5%

1,830 

82,000 

412 

18,450 

Capstone at Port Imperial

 

360 

100.0%

40.0%

1,896 

135,000 

758 

54,000 

Riverpark at Harrison

 

141 

97.2%

45.0%

453 

30,192 

204 

13,586 

Metropolitan at 40 Park

 

130 

96.2%

25.0%

879 

42,567 

220 

10,642 

Metropolitan Lofts

 

59 

93.2%

50.0%

236 

18,200 

118 

9,100 

Station House

 

378 

94.2%

50.0%

1,424 

92,863 

712 

46,432 

Subtotal - Multifamily

 

2,146 

97.5%

54.9%

$11,428

$591,302

$6,428

$314,118



 

 

 

 

 

 

 

 

Retail/Hotel

 

 

 

 

 

 

 

 

Hyatt Regency Jersey City

 

351 

49.8%

50.0%

($813)

$100,000

($407)

$50,000

Total Operating

 

 

 

 

$10,615

$691,302

$6,021

$364,118



 

 

 

 

 

 

 

 

Other Unconsolidated JVs

 

 

 

 

$13

$6

Total Unconsolidated JVs

 

 

 

 

$10,628

$691,302

$6,027

$364,118



































































































Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”.

1.

Amounts represent the Company’s share based on ownership percentage. 

2.

The sum of property-level revenue, straight-line and ASC 805 adjustments; less: operating expense, real estate taxes and utilities.

20


 

 

 

A picture containing building, sky

Description automatically generated

Multifamily Portfolio

21


 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Portfolio - Multifamily

 

 

 

 

 

 

$ in thousands, except per home

 

 

 

 

 

 

 



 

 

 

 

 

 

Operating Highlights



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Percentage

Average Revenue

 

 

 



 

 

 

Rentable

Avg.

Year

Occupied

per Home

NOI

Debt



Location

Ownership

Apartments

SF

Size

Complete

Q1 2022

Q4 2021

Q1 2022

Q4 2021

Q1 2022

Q4 2021

Balance

New Jersey Waterfront

 

 

 

 

 

 

 

 

 

 

 

 

 

Liberty Towers

Jersey City, NJ

100.0%

648

602,210

929

2003

97.7%

95.7%

$3,302

$3,211

$3,882

$3,422

$265,000

BLVD 425

Jersey City, NJ

74.3%

412

369,515

897

2003

96.8%

95.6%

3,101

3,015

2,121

2,082

131,000

BLVD 475

Jersey City, NJ

100.0%

523

475,459

909

2011

97.7%

96.6%

3,218

3,108

2,735

2,871

165,000

BLVD 401

Jersey City, NJ

74.3%

311

273,132

878

2016

97.7%

96.5%

3,311

3,123

1,804

1,713

117,000

Soho Lofts

Jersey City, NJ

100.0%

377

449,067

1,191

2017

95.5%

97.3%

3,791

3,684

2,309

2,111

160,000

Urby Harborside

Jersey City, NJ

85.0%

762

474,476

623

2017

98.3%

97.0%

3,044

3,044

4,710

4,226

190,480

RiverHouse 9

Weehawken, NJ

100.0%

313

245,127

783

2021

100.0%

94.9%

3,187

N/A

1,852

947

90,024

RiverHouse 11

Weehawken, NJ

100.0%

295

250,591

849

2018

98.0%

98.0%

3,461

3,446

2,003

1,868

100,000

RiverTrace at Port Imperial

West New York, NJ

22.5%

316

295,767

936

2014

98.1%

95.6%

3,150

3,150

1,830

2,001

82,000

Capstone at Port Imperial

West New York, NJ

40.0%

360

337,991

939

2021

100.0%

99.2%

3,731

N/A

1,896

1,595

135,000

New Jersey Waterfront Subtotal

82.4%

4,317

3,773,335

874

 

97.9%

96.6%

$3,297

$3,194

$25,142

$22,836

$1,435,504



 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

 

 

 

 

 

 

 

 

 

 

 

 

Portside at East Pier

East Boston, MA

100.0%

181

156,091

862

2015

97.7%

96.6%

$2,832

$2,720

$1,016

$957

$58,998

Portside II at East Pier

East Boston, MA

100.0%

296

230,614

779

2018

95.5%

97.6%

2,905

2,758

1,645

1,481

97,000

145 Front at City Square

Worcester, MA

100.0%

365

304,936

835

2018

97.8%

98.9%

2,246

2,182

1,326

1,481

63,000

The Emery

Revere, MA

100.0%

326

273,140

838

2020

97.5%

96.0%

2,427

2,298

1,376

1,246

72,000

Massachusetts Subtotal

100.0%

1,168

964,781

826

 

97.1%

97.4%

$2,554

$2,444

$5,363

$5,165

$290,998



 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

The Upton

Short Hills, NJ

100.0%

193

217,030

1,125

2021

98.4%

99.5%

$3,655

N/A

$1,098

$1,164

$75,000

Signature Place

Morris Plains, NJ

100.0%

197

203,716

1,034

2018

98.5%

98.5%

2,757

2,723

800

789

43,000

Quarry Place at Tuckahoe

Eastchester, NY

100.0%

108

105,551

977

2016

98.1%

98.1%

3,648

3,659

711

615

41,000

RiverPark at Harrison

Harrison, NJ

45.0%

141

124,774

885

2014

97.2%

98.6%

2,337

2,337

453

500

30,192

Metropolitan at 40 Park(1)

Morristown, NJ

25.0%

130

124,237

956

2010

96.2%

94.6%

3,081

3,081

538

500

36,500

Metropolitan Lofts

Morristown, NJ

50.0%

59

54,683

927

2018

93.2%

89.8%

3,069

3,069

236

238

18,200

Station House

Washington, DC

50.0%

378

290,348

768

2015

94.2%

91.5%

2,615

2,615

1,424

1,070

92,863

Other Subtotal

67.4%

1,206

1,120,339

929

 

96.4%

95.6%

$2,937

$2,795

$5,260

$4,876

$336,755



 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Portfolio(2)

82.7%

6,691

5,858,455

876

 

97.5%

96.6%

$3,103

$2,974

$35,765

$32,877

$2,063,257





























Notes:  See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. Unconsolidated joint venture income represented at 100% venture NOI. Average Revenue per Home is calculated as total apartment revenue for the quarter divided by the average percent occupied for the quarter, divided by the number of apartments and divided by three.

1.

As of March 31, 2022, Priority Capital included Metropolitan at $20,914,422 (Prudential).

2.

Operating Portfolio is properties that have achieved over 95% leased for six consecutive weeks. Excludes approximately 150,000 sqft of ground floor retail.

22


 

 

 





 

 

 

 

 

 

 

 

 

 

Operating Portfolio - Commercial

 

 

 

$ in thousands

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Percentage

Percentage

 

 

 



 

 

 

Rentable

Year

Leased

Leased

NOI

NOI

Debt

Commercial

Location

Ownership

Spaces

SF

Complete

Q1 2022

Q4 2021

Q1 2022

Q4 2021

Balance

Port Imperial Garage South

Weehawken, NJ

70.0%

800 

320,426 

2013

N/A

N/A

$272

$382

$32,542

Port Imperial Garage North

Weehawken, NJ

100.0%

786 

304,617 

2016

N/A

N/A

(85)

(51)

Port Imperial Retail South

Weehawken, NJ

70.0%

 

18,064 

2013

88.1%

88.1%

128 

187 

Port Imperial Retail North

Weehawken, NJ

100.0%

 

8,400 

2016

100.0%

100.0%

161 

78 

Riverwalk at Port Imperial

West New York, NJ

100.0%

 

30,423 

2008

65.0%

65.0%

184 

177 

Shops at 40 Park

Morristown, NJ

25.0%

 

50,973 

2010

69.0%

69.0%

341 

360 

6,067 



 

 

 

 

 

 

 

 

 

 

Commercial Total

 

80.9%

 

732,903 

 

73.5%

73.5%

$1,001

$1,133

$38,609





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

Average

Average

 

 

 

 

 



 

 

 

Year

Occupancy

Occupancy

ADR

ADR

NOI

NOI

Debt

Hotels

Location

Ownership

Keys

Complete

Q1 2022

Q4 2021

Q1 2022

Q4 2021

Q1 2022

Q4 2021

Balance

Envue, Autograph Collection

Weehawken, NJ

100.0%

208 

2019

38.8%

61.5%

$196

$203

($1,137)

$509

 

Residence Inn at Port Imperial

Weehawken, NJ

100.0%

164 

2018

72.3%

83.2%

156 

181 

118 

719 

 

Marriott Hotels at Port Imperial

 

100.0%

372 

 

53.6%

71.1%

$156

$181

($1,019)

$1,228

$89,000































Notes:    See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”.

23


 

 

 

In-Construction Portfolio & Land Bank

·

There is no remaining equity to be funded







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Project Capitalization - Total

 

Capital as of Q1 2022

 

Development Schedule

 

 



 

 

Apartment

 

 

 

Third

 

 

 

 

 

 

 

Projected

Projected



 

 

Homes/

 

 

VRE

Party

 

Dev

Debt

 

 

Initial

Project

Stabilized

Stabilized



Location

Ownership

Keys

Costs

Debt(1)

Capital

Capital

 

Costs(2)

Balance

 

Start

Occupancy

Stabilization

Yield on Cost

NOI

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Haus25

Jersey City, NJ

100.0%

750

$469,510

$300,000

$169,510

 

$438,593

$269,083

 

Q1 2019

Q2 2022

Q2 2023

5.98%

$28,098







 

 

 



 

 

Potential

Land Bank

 

 

Units

Hudson Waterfront

 

5,324 

Greater NY/NJ

 

 

1,069 

Boston Metro

 

 

864 



 

 

 

Land Bank Total

 

7,257



























































































































Notes:    See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. NOI amounts are projected only. In-Construction Portfolio are assets that are under construction and have not yet commenced initial leasing activities. Lease-Up Portfolio are the assets that have commenced initial operations but have not yet achieved Project Stabilization, achieved over 95% leased for six consecutive weeks. Total Costs represents full project budget, including land and developer fees, and interest expense through project completion as evidenced by a certificate of completion or issuance of a final or temporary certificate of occupancy. VRE Capital  represents cash equity that the Company has contributed or has a future obligation to contribute to a project. Projected Stabilized Residential NOI assumes NOI at projected property revenue at 95% occupancy. Projected Stabilized Yield on Cost represents Projected Stabilized Residential NOI divided by Total Costs.

1.

Represents maximum loan proceeds.

2.

Represents development costs funded with debt or capital as of March 31, 2022.

24


 

 

 

A city skyline across the water

Description automatically generated with low confidence

Office Portfolio

25


 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Listing

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

Avg. Base Rent

 

2022 Expirations

Building

 

Location

 

Total SF

 

Leased SF

 

% Leased

 

+ Escalations(1)

 

SF

 

% Total

 

In-Place Rent



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

101 Hudson

 

Jersey City, NJ

 

1,246,283 

 

1,041,892 

 

83.6%

 

$45.52

 

45,397 

 

4%

 

$41.52

Harborside 2 & 3

 

Jersey City, NJ

 

1,487,222 

 

1,306,330 

 

87.8%

 

42.53 

 

28,644 

 

2%

 

43.20 

Harborside 5

 

Jersey City, NJ

 

977,225 

 

400,079 

 

40.9%

 

46.73 

 

9,102 

 

1%

 

55.73 

Harborside 6

 

Jersey City, NJ

 

231,856 

 

47,542 

 

20.5%

 

N/A

 

 

 

-

Total Waterfront (In-Service)

 

 

 

3,942,586 

 

2,795,843 

 

70.9%

 

$44.29

 

83,143 

 

2%

 

$43.66

Harborside 1(2)

 

Jersey City, NJ

 

399,578 

 

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

Total Waterfront

 

 

 

4,342,164 

 

2,795,843 

 

64.4%

 

$44.29

 

83,143 

 

2%

 

$43.66

23 Main Street(3)

 

Holmdel, NJ

 

350,000 

 

350,000 

 

100.0%

 

27.61 

 

 

 

-

Total Suburban

 

 

 

350,000 

 

350,000 

 

100.0%

 

$27.61

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total In-Service Office Portfolio

 

 

 

4,292,586 

 

3,145,843 

 

73.3%

 

$42.43

 

83,143 

 

2%

 

$43.66

































1.

Includes annualized base rental revenue plus escalations for square footage leased to commercial and retail tenants only.  Excludes leases for amenity, parking and month-to-month tenants.  Annualized base rental revenue plus escalations is based on actual March 2022 billings times 12.  For leases whose rent commences after January 1, 2022 annualized base rental revenue is based on the first full month’s billing times 12.  As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.

2.

Harborside 1 was taken out of service in Q4 2019.

3.

Average base rents + escalations reflect rental values on a triple net basis.



 

 

 

 

 

 

 

 

 

 

 

26


 

 

 

Leasing Rollforwards & Activity

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Leasing Rollforwards

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31, 2022

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Inventory

Leased (SF)

 

 

 

 

 

 



Leased (%)

Inventory  

Leased (SF)

Acquired/

Acquired/

Expiring/

Incoming

Net Leasing

Inventory

Leased (SF)

Leased (%)



Q4 2021

Q4 2021

Q4 2021

Disposed

Disposed

Adj. SF

SF

Activity

Q1 2022

Q1 2022

Q1 2022



 

 

 

 

 

 

 

 

 

 

 

Waterfront

72.0%

4,508,801 

3,244,653 

(566,215)

(460,352)

(130,650)

142,192 

11,542 

3,942,586 

2,795,843 

70.9%

Suburban

100.0%

350,000 

350,000 

350,000 

350,000 

100.0%

Subtotals

74.0%

4,858,801 

3,594,653 

(566,215)

(460,352)

(130,650)

142,192 

11,542 

4,292,586 

3,145,843 

73.3%







 

 

 

 

 

 

 

 

 

 

Leasing Activity

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

For the three months ended March 31, 2022

 

 

 

 



 

 

 

 

 

 

 

 

 

 



Number of

 

Total

 

New Leases

Renewed / Other

Weighted Avg.

Weighted Avg.

Wtd. Avg.

Wtd. Avg. Costs



Transactions

 

SF

 

SF

Retained (SF)

SF

Term (Yrs)

Base Rent ($)(1)

SF Per Year ($)



 

 

 

 

 

 

 

 

 

 

Waterfront

 

142,192 

 

142,192 

35,548 

15.3 

$42.62

$8.43

Suburban

 

 

 

Subtotals

 

142,192 

 

142,192 

35,548 

15.3 

$42.62

$8.43









































1.

Inclusive of escalations.

27


 

 

 



 

 

 

 

 

 

 

 

 

 

 

Top 15 Tenants

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

Annualized

 

Company

 

Square

 

 

 

Year of



Number of

 

Base Rental

 

Annualized Base

 

Feet

 

Total Company

 

Lease



Properties

 

Revenue ($'000)(1)

 

Rental Revenue (%)(2)

 

Leased

 

Leased SF (%)(2)

 

Expiration



 

 

 

 

 

 

 

 

 

 

 

Merrill Lynch Pierce Fenner

1

 

$9,418

 

9.2%

 

388,207 

 

13.0%

 

2027

MUFG Bank Ltd.

1

 

5,689 

 

5.5%

 

137,076 

 

4.6%

 

2029

Collectors Universe, Inc.

1

 

5,545 

 

5.4%

 

146,812 

 

4.9%

 

(3)

E-Trade Financial Corporation

1

 

5,505 

 

5.4%

 

132,265 

 

4.4%

 

2031

Vonage America Inc.

1

 

5,023 

 

4.9%

 

350,000 

 

11.7%

 

2023

Sumitomo Mitsui Banking Corp

1

 

4,624 

 

4.5%

 

111,105 

 

3.7%

 

2036

Arch Insurance Company

1

 

4,326 

 

4.2%

 

106,815 

 

3.6%

 

2024

Brown Brothers Harriman & Co.

1

 

4,018 

 

3.9%

 

114,798 

 

3.9%

 

2026

First Data Corporation

1

 

3,782 

 

3.7%

 

88,374 

 

3.0%

 

(4)

Tp Icap Americas Holdings Inc

1

 

3,446 

 

3.4%

 

100,759 

 

3.4%

 

(5)

Cardinia Real Estate Llc

1

 

3,239 

 

3.2%

 

79,771 

 

2.7%

 

2032

New Jersey City University

1

 

3,011 

 

2.9%

 

84,929 

 

2.8%

 

2035

Zurich American Ins. Co.

1

 

2,915 

 

2.8%

 

64,414 

 

2.2%

 

2032

BETMGM, LLC

1

 

2,800 

 

2.7%

 

71,343 

 

2.4%

 

(6)

Amtrust Financial Services

1

 

2,614 

 

2.5%

 

76,892 

 

2.6%

 

2023

Totals

 

 

$65,955

 

64.2%

 

2,053,560 

 

68.9%

 

 























1.

Annualized base rental revenue is based on actual March 2022 billings times 12. For leases whose rent commences after January 1, 2022, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.

2.

Represents the percentage of space leased and annual base rental revenue to commercial tenants only.

3.

Collectors Universe16,393 square feet expire in 2023; 130,419 square feet expire in 2038.

4.

First Data Corporation – 8,014 square feet expire in 2026; 80,360 square feet expire in 2029.

5.

Tp Icap Americas Holdings – 63,372 square feet expire in 2023; 37,387 square feet expire in 2033.

6.

BETMGM – 22,300 square feet expire in 2022; 49,043 square feet expire in 2032.

28


 

 

 



 

 

 

 

 

 

Lease Expirations

 

 

 

 



 

 

 

 

 

 



Number of

Net Rentable Area

Percentage of Total Leased

Annualized Base

Average Annualized Base Rent

Percentage of

Year of Expiration/Market

Leases

Subject to Expiring

Square Feet Represented

Rental Revenue Under

Per Net Rentable Square Foot

Annual Base Rent



Expiring(1)

Leases (SF)

by Expiring Leases (%)

Expiring Leases ($'000)(2)(3)

Represented by

Under



 

 

 

 

Expiring Leases ($)

Expiring Leases (%)

2022

 

 

 

 

 

 

  Waterfront

13

83,143

2.8%

$3,403

$40.93

3.3%

Total – 2022

13

83,143

2.8%

$3,403

$40.93

3.3%

2023

 

 

 

 

 

 

  Waterfront

15

352,464

11.8%

$13,367

$37.92

13.0%

  Suburban

1

350,000

11.7%

$5,023

$14.35

4.9%

Total – 2023

16

702,464

23.6%

$18,389

$26.18

17.9%

2024

 

 

 

 

 

 

  Waterfront

13

215,003

7.2%

$8,564

$39.83

8.3%

Total – 2024

13

215,003

7.2%

$8,564

$39.83

8.3%

2025

 

 

 

 

 

 

  Waterfront

12

115,660

3.9%

$3,714

$32.11

3.6%

Total – 2025

12

115,660

3.9%

$3,714

$32.11

3.6%

2026

 

 

 

 

 

 

  Waterfront

9

219,408

7.4%

$8,196

$37.35

8.0%

Total – 2026

9

219,408

7.4%

$8,196

$37.35

8.0%

2027

 

 

 

 

 

 

  Waterfront

7

422,375

14.2%

$10,932

$25.88

10.7%

Total – 2027

7

422,375

14.2%

$10,932

$25.88

10.7%

2028 and thereafter

 

 

 

 

 

 

  Waterfront

32

1,222,355

41.0%

$49,392

$40.41

48.1%

TOTAL – 2028 and thereafter

32

1,222,355

41.0%

$49,392

$40.41

48.1%



 

 

 

 

 

 

Totals by Type

 

 

 

 

 

 

  Waterfront

101

2,630,408

88.3%

$97,568

$37.09

95.1%

  Suburban

1

350,000

11.7%

$5,023

$14.35

4.9%

Totals/Weighted Average

102

2,980,408

100.0%

$102,590

$34.42

100.0%





















































































1.

Includes office & standalone retail property tenants only. Excludes leases for amenity, retail, parking & monthtomonth tenants. Some tenants have multiple leases.

2.

Annualized base rental revenue is based on actual March 2022 billings times 12. For leases whose rent commences after January 1, 2022, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.

3.

Includes leases in effect as of the period end date, some of which have commencement dates in the future.

29


 

 

 

Endnotes

FFO, Core FFO, AFFO, NOI, Adjusted EBITDA, & EBITDAre

(1)

Includes the Company’s share from unconsolidated joint ventures, and adjustments for noncontrolling interest, of $2,671 and $2,275 for the three months ended March 31, 2022 and 2021, respectively. Excludes non-real estate-related depreciation and amortization of $325 and $325 for the three months ended March 31, 2022 and 2021.

(2)

Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”.

(3)

Includes free rent of $2,201 and $3,725 for the three months ended March 31, 2022 and 2021, respectively. Also includes the Company's share from unconsolidated joint ventures of $(305) and $88 for the three months ended March 31, 2022 and 2021, respectively.

(4)

Excludes expenditures for tenant spaces in properties that have not been owned by the Company for at least a year.

(5)

Net Debt calculated by taking the sum of senior unsecured notes, unsecured revolving credit facility, and mortgages, loans payable and other obligations, and deducting cash and cash equivalents and restricted cash, all at period end.

(6)

Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (8,665 and 8,803 shares for the three months ended March 31, 2022 and 2021, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).































 

 

 

 

 

 

30


 

 

 

Reconciliation of Net Income (Loss) to NOI
(three months ended)

$ in thousands (unaudited)



Q1 2022

Q4 2021



Multifamily

Office / Corp

Total

Multifamily

Office / Corp

Total

Net Income (loss)

($11,354)

$6,827

($4,527)

($29,708)

$6,471

($23,237)

Deduct:

 

 

 

 

 

 

Real estate services income

(910)

(910)

(1,848)

(1,848)

Interest and other investment loss (income)

1

157

158

(3)

(5,141)

(5,144)

Equity in (earnings) loss of unconsolidated joint ventures

487

487

1,420

1,420

General & Administrative - property level

(688)

(688)

(2,101)

(2,101)

Realized and unrealized (gains) losses on disposition

(2,501)

(2,501)

(Gain) loss on disposition of developable land

(2,623)

(2,623)

(2,004)

(2,004)

(Gain) loss on sale of investment in unconsolidated joint venture

(Gain) loss from early extinguishment of debt, net

6,289

6,289

343

343

Add:

 

 

 

 

 

 

Real estate services expenses

2,328

35

2,363

2,968

51

3,019

General and administrative

1,416

17,765

19,181

2,436

11,415

13,851

Dead deal and transaction-related costs

2,488

3,317

5,805

Depreciation and amortization

17,403

9,110

26,513

17,276

7,932

25,208

Interest expense

12,263

2,762

15,025

11,751

4,077

15,828

Property impairments

7,426

7,426

Land impairments

2,932

2,932

12,386

12,386

Net operating income (NOI)

$23,878

$40,322

$64,200

$24,834

$23,617

$48,451



 

 

 

 

 

 

Summary of Consolidated Multifamily NOI by Type (unaudited):

 

Q1 2022

Q4 2021

 

Total Consolidated Multifamily - Operating Portfolio

 

$24,678

$22,747

 

Total Consolidated Commercial

 

660

773

 



 

 

 

 

 

 

Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests):

25,338

23,520

 

NOI (loss) from services, land/development/repurposing & other assets

 

(1,460)

1,314

 



 

 

 

 

 

 

Total Consolidated Multifamily NOI

 

$23,878

$24,834

 





 

 

 

31


 

 

 

Company Information, Executive Officers & Analysts



 

 

 

Company Information

 

 

 



 

 

 

Corporate Headquarters

Stock Exchange Listing

Contact Information

 

Veris Residential, Inc.

New York Stock Exchange

Veris Residential, Inc.

 

Harborside 3, 210 Hudson St., Ste. 400

 

Investor Relations Department

 

Jersey City, New Jersey 07311

Trading Symbol

Harborside 3, 210 Hudson St., Ste. 400

 

(732) 590-1010

Common Shares:  VRE

Jersey City, New Jersey 07311

 



 

 

 



 

Anna Malhari

 



 

Chief Operating Officer

 



 

E-Mail: amalhari@verisresidential.com

 



 

Web: www.verisresidential.com

 



 

 

 



 

 

 

Executive Officers

 

 

 



 

 

 

Mahbod Nia

Amanda Lombard

Taryn Fielder

Jeff Turkanis

Chief Executive Officer

Chief Financial Officer

General Counsel and Secretary

EVP and Chief Investment Officer



 

 

 

Anna Malhari

Gwen Marnell

 

 

Chief Operating Officer

Chief Accounting Officer

 

 



 

 

 



 

 

 

Equity Research Coverage

 

 

 



 

 

 

Bank of America Merrill Lynch

Citigroup

Green Street Advisors

Truist

James C. Feldman

Michael Bilerman

John Pawlowski

Michael R. Lewis



 

 

 

BTIG, LLC

Deutsche Bank North America

JP Morgan

Evercore ISI

Thomas Catherwood

Derek Johnston

Anthony Paolone

Steve Sakwa



 

 

 

Any opinions, estimates, forecasts or predictions regarding Veris Residential, Inc's performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Veris Residential, Inc. or its management.  Veris Residential, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.



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