-

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.

·

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.





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.



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 



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.



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 

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. 



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.



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)

Real Estate Taxes

Payroll

Repairs & Maintenance

Utilities

Insurance

Marketing

Management Fees & Other

Total Property Expenses

Same Store GAAP NOI(2)

Total Units

-

-

-

-

% Ownership

-

-

-

-

% Occupied - Quarter End

-

-

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.



Balance Sheet

$ in thousands (unaudited)



March 31, 2022

December 31, 2021

ASSETS

Multifamily

Office

Elim. / Other

Total

Rental property

Land and leasehold interests

–

Buildings and improvements

–

Tenant improvements

–

Furniture, fixtures and equipment

–

Land and improvements held for development

–

Development and construction in progress

–



–

Less – accumulated depreciation and amortization

–



–

Rental property held for sale, net

–

Net Investment in Rental Property

–

Cash and cash equivalents

–

Restricted cash

–

Investments in unconsolidated joint ventures

–

–

Unbilled rents receivable, net

–

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

Accounts receivable

–

Total Assets

($25,000)

LIABILITIES & EQUITY

Revolving credit facility

–

–

Mortgages, loans payable and other obligations, net

–

Note payable to affiliate

–

–

–

Dividends and distributions payable

–

–

Accounts payable, accrued expenses and other liabilities

–

Rents received in advance and security deposits

–

Accrued interest payable

–

Total Liabilities

Commitments and contingencies

Redeemable noncontrolling interests

–

Total Stockholders’/Members Equity

–

Noncontrolling interests in subsidiaries:

Operating Partnership

–

–

Consolidated joint ventures

–

Total Noncontrolling Interests in Subsidiaries

–

Total Equity

–

Total Liabilities and Equity

($25,000)

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.



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

–



Escalations and recoveries from tenants

–



Real estate services

–

–



Parking income

–



Hotel income

–

–



Other income

–



Total revenues

–

EXPENSES



Real estate taxes

–



Utilities

–



Operating services

–



Real estate services expenses

–



General and administrative(1)

–



Depreciation and amortization

–



Land and other impairments

–

–



Total expenses

–

Operating Income (expense)

–

OTHER (EXPENSE) INCOME



Interest expense

–



Interest and other investment income (loss)

–



Equity in earnings (loss) of unconsolidated joint ventures

–

–



Realized and unrealized gains (losses) on disposition

–

–

–



Gain on disposition of developable land

–

–

–



Gain (loss) from extinguishment of debt, net

–

–

–



Total other income (expense)

–

Income from continuing operations

–



Income from discontinued operations

–

–

–

–



Realized gains (losses) on disposition

–

–

–

–



Total discontinued operations

–

–

–

–

Net Income

–



Noncontrolling interest in consolidated joint ventures

–

–



Noncontrolling interests in Operating Partnership from continuing operations

–

–



Noncontrolling interests in Operating Partnership in discontinued operations

–

–

–

–



Redeemable noncontrolling interest

–

Net income (loss) available to common shareholders

($16,396)

–

($9,092)

Basic earnings per common share:

Net income (loss) available to common shareholders

($0.13)

Diluted earnings per common share:

Net income (loss) available to common shareholders

($0.13)

Basic weighted average shares outstanding

Diluted weighted average shares outstanding

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)

Add (deduct):  Noncontrolling interest in Operating Partnership

Noncontrolling interests in discontinued operations

–

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

Real estate-related depreciation and amortization on discontinued operations

–

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

–

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

–

Funds from operations(2)



Add/(Deduct):

(Gain)/Loss from extinguishment of debt, net

–

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

–

Land and other impairments

(Gain) on disposition of developable land

–

CEO and related management changes costs

–

Severance/Rebranding costs

Lease breakage fee, net

–

Core FFO



Diluted weighted average shares/units outstanding(6)



Funds from operations per share-diluted

Core Funds from Operations per share/unit-diluted

Dividends declared per common share



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)

Add (Deduct) Non-Cash Items:

Straight-line rent adjustments(3)

Amortization of market lease intangibles, net

Amortization of lease inducements

Amortization of stock compensation

Non-real estate depreciation and amortization

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

–

Amortization of deferred financing costs

Deduct:

Non-incremental revenue generating capital expenditures:

      Building improvements

      Tenant improvements and leasing commissions(4)

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

Core AFFO(2)

($745)



Core FFO (calculated on previous page)



Deduct:

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

Equity in earnings share of depreciation and amortization

Add-back:

Interest expense

Recurring JV distributions

Income (loss) in noncontrolling interest in consolidated joint ventures

Redeemable noncontrolling interest

Income tax expense

Adjusted EBITDA



Net debt at period end(5)

Net debt to Adjusted EBITDA

18.8x

14.9x



EBITDAre - Quarterly Comparison    

$ in thousands (unaudited)



Three Months Ended March 31,



2022

2021

Net Income (loss) available to common shareholders

($9,092)

Add/(Deduct):

Noncontrolling interest in operating partnership

Noncontrolling interest in discontinued operations

–

Noncontrolling interest in consolidated joint ventures(a)

Redeemable noncontrolling interest

Interest expense

Income tax expense

Depreciation and amortization

Deduct:

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

–

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

–

Equity in (earnings) loss of unconsolidated joint ventures

Add:

Property Impairments

–

–

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

EBITDAre

Add:

Loss from extinguishment of debt, net

–

Severance/Rebranding costs

Dead deal and other post-sale items in Other income

–

Land and other impairments

Gain on disposition of developable land

–

CEO and related management changes

–

Lease breakage fee, net

–

Adjusted EBITDAre

(a) Noncontrolling interests in consolidated joint ventures:

BLVD 425

BLVD 401

Port Imperial Garage South

Port Imperial Retail South

Other consolidated joint ventures

–

Net losses in noncontrolling interests

($964)

($1,335)

Depreciation in noncontrolling interest in consolidated JV's

Funds from operations - noncontrolling interest in consolidated JV's

($264)

($638)

Interest expense in noncontrolling interest in consolidated JV's

Net operating income before debt service in consolidated JV's

·

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 

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.



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%

12/19/22

Haus25(3)

QuadReal Finance

LIBOR+ 2.70%

12/01/24

Total Secured Construction Debt

Secured Permanent  Loans

Marriott Hotels at Port Imperial

Fifth Third Bank

LIBOR+ 3.40%

04/01/23

Portside at East Pier

CBRE Capital Markets/FreddieMac

3.57%

08/01/23

Signature Place

Nationwide Life Insurance Company

3.74%

08/01/24

Liberty Towers

American General Life Insurance Company

3.37%

10/01/24

Portside II at East Pier

New York Life Insurance Co.

4.56%

03/10/26

BLVD 425

New York Life Insurance Co.

4.17%

08/10/26

BLVD 401

New York Life Insurance Co.

4.29%

08/10/26

The Upton(4)

Bank of New York Mellon

LIBOR+ 1.58%

10/27/26

145 Front at City Square

MUFG Union Bank

LIBOR+ 1.84%

12/10/26

Quarry Place at Tuckahoe

Natixis Real Estate Capital LLC

4.48%

08/05/27

BLVD 475

Northwestern Mutual Life

2.91%

11/10/27

RiverHouse 11

Northwestern Mutual Life

4.52%

01/10/29

Soho Lofts

New York Community Bank

3.77%

07/01/29

Port Imperial Garage South

American General Life & A/G PC

4.85%

12/01/29

The Emery

New York Community Bank

3.21%

01/01/31

Principal Balance Outstanding

Unamortized Deferred Financing Costs

Total Secured Permanent Debt

Total Debt - Multifamily Portfolio - A

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%.



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%

10/11/26

Principal Balance Outstanding

Unamortized Deferred Financing Costs

Total Secured Debt - Office Portfolio



Secured Revolving Credit Facilities & Term Loans:

Secured Revolving Credit Facility

8 Lenders

LIBOR + 2.75%

05/06/24



Total Debt - Office Portfolio - B



Total Debt - Multifamily Portfolio - A



Total Consolidated Debt: A + B = C



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

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.