Supplemental Operating and Financial Data Q2 2022 Exhibit 99.1
Veris Residential Inc. (the “Company”, “VRE”, “we”, “our”, “us”) 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. 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. 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 we have 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 our business and the financial condition of our tenants and residents; • the value of our real estate assets, which may limit our 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; • our ability to lease or re-lease space at current or anticipated rents; • changes in the supply of and demand for our properties; • changes in interest rate levels and volatility in the securities markets; • our 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; • our 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; • our ability to obtain adequate insurance, including coverage for natural disasters and terrorist acts; • our 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 our 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 our 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 second quarter 2022 earnings press release (included as Exhibit 99.2 of the Company’s Current Report on Form 8-K, filed on August 3, 2022), as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Operating and Financial Data. Forward-Looking Statements 2
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. 3 Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre
4 Company Highlights
5 Q2 2022 Highlights • The 6,691-unit operating multifamily portfolio and Same Store 5,825-unit operating multifamily portfolio were 97.1% and 96.8% occupied, respectively, as of June 30, 2022 • Same Store NOI for the operating multifamily portfolio increased year-over-year and quarter-over-quarter by 28.0% and 8.2%, respectively, reflecting higher occupancy, lower concessions and increasing market rents • Second quarter 2022 multifamily Blended Net Rental Growth Rate1 of 21% • Strong leasing momentum continues at Haus25, a 750-unit property located in Jersey City, NJ, which was 66% leased as of July 31, 2022 with 494 leases signed since leasing commenced on April 6, 2022 • Completed acquisition of The James, a Class-A 240-unit property located in Park Ridge, NJ for $129.6 million subsequent to quarter end • The Hyatt Hotel and 23 Main Street, the Company's last suburban office property, are under binding contracts for a total sales price of $132.25 million, which dispositions are expected to generate $19.6 million of net proceeds to the Company • Refinanced the construction loan for RiverHouse 9 in Port Imperial with a five-year $110 million floating-rate loan at an interest margin of 1.21%2 over SOFR and a two-year cap at a strike rate of 3.0% • 76% of total debt is fixed and/or hedged with a weighted average maturity of five years • Released 2021 ESG report, including commitment to 50% emissions reduction as validated by the Science Based Targets initiative (SBTi) and achieved independent sector leading ESG rankings 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. 2. Effective rate is 1.41% including amortization of deferred financing costs.
Same Store Revenue Growth YoY 9.2% 14.2% 16.9% 6.4% 8.9% 11.7% VRE Peer Average Q4 2021 Q1 2022 Q2 2022 6 Consistent Outperformance Driven By Operational Enhancements Same Store NOI Growth YoY 21.0% 20.0% 28.0% 9.2% 11.8% 15.3% VRE Peer Average Q4 2021 Q1 2022 Q2 2022 Blended Net Rental Growth Rate 12.9% 15.8% 20.8% 12.5% 13.9% 14.9% VRE Peer Average Q4 2021 Q1 2022 Q2 2022 Notes: Peers included are AvalonBay Communities, AIR Communities, Camden Property Trust, Essex Property Trust, Equity Residential, MAA, UDR and WashREIT. Veris Residential Q4 2021 Same Store revenue and NOI exclude Emery, which was included in Q1 2022 and Q2 2022. Veris Residential Blended Net Rental Growth Rate is based on Same Store assets excluding Urby, Station House and RiverPark at Harrison. Peer information is based on Same Store.
Three Months Ended Three Months Ended June 30, 2022 March 31, 2022 June 30, 2022 March 31, 2022 Net Income / (Loss) per Diluted Share $0.25 $(0.13) Key Portfolio Statistics Core FFO per Diluted Share(1) $0.15 $0.09 Multifamily Portfolio Weighted Average - Diluted Shares(2) 100,352,307 99,934,499 Operating Units 6,691 6,691 Total Equity $1.8 billion $2.2 billion % Physical Occupancy 97.1% 97.5% Total Debt $2.2 billion $2.2 billion Average Rent per Home $3,198 $3,069 Total Capitalization $4.1 billion $4.5 billion Lease-Up Units (Previously In-Construction) 750 750 Debt-to-Undepreciated Assets 45.2% 44.9% Land Bank Units 5,459 7,257 Net Debt $2.2 billion $2.1 billion Office Portfolio Annualized Adjusted EBITDA(1) $154,588 $113,692 Square Feet of Office Space 4.3 million 4.3 million Net Debt-to-Adjusted EBITDA 14.1x 18.8x Consolidated In-Service Properties 6 6 Interest Coverage Ratio(1) 2.2x 1.9x % Leased Office 73.0% 73.3% % Commenced Occupancy 66.9% 66.7% Cash Rental Rate Roll-Up/(Down)(3) (4.0)% (11.7)% GAAP Rental Rate Roll-Up/(Down)(3) (4.5)% (4.9)% Average In-Place Rent per Square Foot $38.24 $38.75 7 Q2 2022 Key Financial Metrics 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. 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.
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 Lease-Up Portfolio details for costs. 4. Includes 2 land parcels under contract. 5. Based on 5,009 potential units. 6. Includes Port Imperial Park Parcel and Urby II / III held in Qualified Intermediary. Real Estate Portfolio - Multifamily Other Assets Operating Multifamily NOI (Q2 Annualized)(1) Total At Share Cash and Cash Equivalents $11,738 New Jersey Waterfront $92,480 $79,112 Restricted Cash 23,011 Massachusetts 23,208 23,208 Other Assets(6) 141,737 Other 18,868 11,598 Subtotal Other Assets $176,486 Lease-up Properties stabilized in Q4 2021(2) 20,396 15,445 Haus25(3) (Stabilized NOI) 28,707 28,707 Liabilities Total Multifamily NOI $183,659 $158,070 Commercial (Q2 Annualized) 4,926 3,188 Operating - Consolidated Debt at Share $1,456,868 Hotels (Q2 Annualized) 6,744 6,744 Operating - Unconsolidated Debt at Share 313,342 Total NOI $195,329 $168,002 Lease-Up - Wholly Owned Debt 291,672 Lease-Up - Unfunded Wholly Owned Debt 8,328 Multifamily Land Value Hotels Debt 89,000 Other Liabilities 39,330 Gross Estimated Proceeds from Land Sales(4) 25,500 Subtotal Liabilities $2,198,540 Estimated Value of Land(5) 270,594 Other Considerations Rockpoint Interest $476,094 Outstanding Shares Common Shares (Outstanding as of June 30, 2022) 100,353,001 Fully Diluted Shares for Q2 2022 100,352,307 8 Components of Net Asset Value – Multifamily $ in thousands
Real Estate Portfolio - Office Other Assets Office NOI (Q2 Annualized) Total At Share Cash and Cash Equivalents $17,335 Waterfront(1) $28,804 $28,804 Restricted Cash 1,345 Suburban 4,564 4,564 Other Assets 121,373 Hotel 12,752 6,376 Subtotal Other Assets $140,053 Total GAAP NOI(2) $46,120 $39,744 Less: straight-lining of rents adj. and ASC 805 124 124 Liabilities Total Cash NOI(3) $45,996 $39,620 Revolving Credit Facility $76,000 Office Sales / Land Value Consolidated Property Debt 250,000 Unconsolidated Property Debt at Share 50,000 Gross Proceeds from Office Sale $380,000 Other Liabilities 51,081 Estimated Value of Land(4) 94,008 Subtotal Liabilities $427,081 Other Considerations Preferred Equity / LP Interest $40,231 Outstanding Shares Common Shares (Outstanding as of June 30, 2022) 100,353,001 Fully Diluted Shares for Q2 2022 100,352,307 9 Components of Net Asset Value – Other $ in thousands 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 Q2 Cash NOI from a property in Jersey City, NJ under contract as of June 30, 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. 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.
Office $ in thousands (incl. per unit values) except per SF Location Transaction Date Number of Buildings SF Percentage Leased Gross Asset Value(1) Price per SF Q1 2022 Disposition 111 River Street Hoboken, NJ 01/21/22 1 566,215 81.3% $210,000 $371 Total Q1 2022 Disposition 1 566,215 81.3% $210,000 $371 Land Location Transaction Date Gross Asset 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 Port Imperial Park Parcel Weehawken, NJ 04/15/22 $30,000 Urby II / III Jersey City, NJ 04/21/22 70,000 Total Q2 2022 Dispositions $100,000 1. Dispositions list gross sales proceeds at 100% ownership level. 10 Transaction Activity Dispositions Multifamily $ in thousands (incl. per unit values) except per SF Location Transaction Date Gross Asset Value(1) Q3 2022 Acquisition to Date The James Park Ridge, NJ 07/21/22 $129,600 Total Q3 2022 Acquisition to Date $129,600 Acquisition
Multifamily Same Store(1) Three Months Ended June 30, Six Months Ended June 30, Sequential 2022 2021 Change % 2022 2021 Change % Q2 2022 Q1 2022 Change % Total Property Revenues (GAAP) $46,224 $39,534 $6,690 16.9 % $90,638 $78,424 $12,214 15.6 % $46,224 $44,414 $1,810 4.1 % Real Estate Taxes 6,404 6,083 321 5.3 % 12,886 11,995 891 7.4 % 6,404 6,483 (79) (1.2) % Payroll 3,206 2,960 246 8.3 % 6,354 5,768 586 10.2 % 3,206 3,148 58 1.8 % Repairs & Maintenance 3,192 3,288 (96) (2.9) % 6,337 6,122 215 3.5 % 3,192 3,146 46 1.5 % Utilities 1,111 1,162 (51) (4.4) % 2,622 2,850 (228) (8.0) % 1,111 1,511 (400) (26.5) % Insurance 1,082 893 189 21.2 % 2,167 1,773 394 22.2 % 1,082 1,085 (3) (0.3) % Marketing 802 1,213 (411) (33.9) % 1,604 2,395 (791) (33.0) % 802 802 – – Management Fees & Other 1,872 1,619 253 15.6 % 3,726 3,224 502 15.6 % 1,872 1,854 18 1.0 % Total Property Expenses 17,669 17,218 451 2.6 % 35,696 34,127 1,569 4.6 % 17,669 18,029 (360) (2.0) % Same Store GAAP NOI(2) $28,555 $22,316 $6,239 28.0 % $54,942 $44,297 $10,645 24.0 % $28,555 $26,385 $2,170 8.2 % Total Units 5,825 5,825 - - 5,825 5,825 - - 5,825 5,825 - - % Ownership 83.9 % 83.9 % - - 83.9 % 83.9 % - - 83.9 % 83.9 % - - % Occupied - Quarter End 96.8 % 92.1 % 4.7 % - 96.8 % 92.1 % 4.7 % - 96.8 % 97.2 % (0.4) % - 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. 11 Same Store Performance $ in thousands (unaudited)
1. Includes mark-to-market lease intangible net assets of $10,706 and mark-to-market lease intangible net liabilities of $332 as of Q2 2022. 2. Includes Prepaid Expenses and Other Assets attributable to Multifamily of $123,340 as follows: (i) deposits of $9,144, (ii) other receivables of $102,852, (iii) other prepaids/assets of $9,491, and (iv) prepaid taxes of $1,853. June 30, 2022 December 31, 2021 ASSETS Multifamily Office/Corp. Elim. / Other Total Rental property Land and leasehold interests $322,257 $16,687 – $338,944 $348,505 Buildings and improvements 2,412,412 517,646 – 2,930,058 2,682,223 Tenant improvements 7,365 101,530 – 108,895 106,654 Furniture, fixtures and equipment 110,454 7,089 – 117,543 100,011 Land and improvements held for development 162,521 14,215 – 176,736 144,705 Development and construction in progress 165,375 280,906 – 446,281 694,768 3,180,384 938,073 – 4,118,457 4,076,866 Less – accumulated depreciation and amortization (238,619) (381,795) – (620,414) (583,416) 2,941,765 556,278 – 3,498,043 3,493,450 Rental property held for sale, net 93,828 274,797 – 368,625 618,646 Net Investment in Rental Property 3,035,593 831,075 – 3,866,668 4,112,096 Cash and cash equivalents 11,738 17,335 – 29,073 31,754 Restricted cash 23,011 1,345 – 24,356 19,701 Investments in unconsolidated joint ventures 132,790 – – 132,790 137,772 Unbilled rents receivable, net 2,804 48,696 – 51,500 72,285 Deferred charges, goodwill and other assets, net(1)(2) 136,597 71,870 (5,000) 203,467 151,347 Accounts receivable 2,336 807 – 3,143 2,363 Total Assets $3,344,869 $971,128 $(5,000) $4,310,997 $4,527,318 LIABILITIES & EQUITY Revolving credit facility – 76,000 – 76,000 148,000 Mortgages, loans payable and other obligations, net 1,902,334 249,155 – 2,151,489 2,241,070 Note payable to affiliate 5,000 – (5,000) – – Dividends and distributions payable – 111 – 111 384 Accounts payable, accrued expenses and other liabilities 33,531 35,689 – 69,220 134,977 Rents received in advance and security deposits 10,329 15,093 – 25,422 26,396 Accrued interest payable 4,224 1,033 – 5,257 5,760 Total Liabilities 1,955,418 377,081 (5,000) 2,327,499 2,556,587 Commitments and contingencies Redeemable noncontrolling interests 476,094 40,231 – 516,325 521,313 Total Stockholders’/Members Equity 874,470 421,810 – 1,296,280 1,281,982 Noncontrolling interests in subsidiaries: Operating Partnership – 132,250 – 132,250 127,053 Consolidated joint ventures 38,887 (244) – 38,643 40,383 Total Noncontrolling Interests in Subsidiaries $38,887 $132,006 – $170,893 $167,436 Total Equity $913,357 $553,816 – $1,467,173 $1,449,418 Total Liabilities and Equity $3,344,869 $971,128 $(5,000) $4,310,997 $4,527,318 12 Balance Sheet $ in thousands (unaudited)
1. General and administrative includes $1.1 million of General and administrative – property level which is also included in multifamily NOI. Q2 2022 Q2 2021 REVENUES Multifamily Office/Corp. Less: Disc. Ops Total Revenue from leases: Base rents $41,467 $23,133 -$1,141 $63,459 $62,415 Escalations and recoveries from tenants 1,552 3,884 (405) 5,031 4,961 Real estate services 897 – – 897 2,593 Parking income 3,468 1,286 – 4,754 3,484 Hotel income 4,536 – – 4,536 2,714 Other income 957 192 – 1,149 3,520 Total revenues 52,877 28,495 (1,546) 79,826 79,687 EXPENSES Real estate taxes 7,508 4,718 (194) 12,032 12,010 Utilities 1,672 1,805 – 3,477 3,151 Operating services 12,268 6,650 (212) 18,706 18,943 Real estate services expenses 2,873 47 – 2,920 3,213 General and administrative(1) 1,819 9,764 (1) 11,582 18,066 Dead deal and transaction-related costs 82 1,263 – 1,345 2,745 Depreciation and amortization 20,149 7,880 (296) 27,733 28,498 Property impairments – – – – 6,041 Land and other impairments 3,900 – – 3,900 7,519 Total expenses 50,271 32,127 (703) 81,695 100,186 Operating Income (expense) 2,606 (3,632) (843) (1,869) (20,499) OTHER (EXPENSE) INCOME Interest expense (15,622) (2,085) – (17,707) (16,554) Interest and other investment income (loss) 59 130 – 189 95 Equity in earnings (loss) of unconsolidated joint ventures 2,638 – – 2,638 349 Realized and unrealized gains (losses) on disposition – (4,440) 4,440 – 3,521 Gain on disposition of developable land 55,125 – – 55,125 111 Gain (loss) from extinguishment of debt, net (129) – – (129) (46,735) Total other income (expense) 42,071 (6,395) 4,440 40,116 (59,213) Income from continuing operations 44,677 (10,027) 3,597 38,247 (79,712) Income from discontinued operations – – 843 843 3,601 Realized gains (losses) on disposition – – (4,440) (4,440) 2,080 Total discontinued operations – – (3,597) (3,597) 5,681 Net Income 44,677 (10,027) – 34,650 (74,031) Noncontrolling interest in consolidated joint ventures 784 – – 784 1,198 Noncontrolling interests in Operating Partnership from continuing operations – (3,029) – (3,029) 7,742 Noncontrolling interests in Operating Partnership in discontinued operations – 334 – 334 (517) Redeemable noncontrolling interest (6,016) (350) – (6,366) (6,471) Net income (loss) available to common shareholders $39,445 $(13,072) – $26,373 $(72,079) Basic earnings per common share: Net income (loss) available to common shareholders $0.25 $(0.81) Diluted earnings per common share: Net income (loss) available to common shareholders $0.25 $(0.81) Basic weighted average shares outstanding 91,027 90,774 Diluted weighted average shares outstanding 100,352 99,873 13 Income Statement - Quarterly Comparison $ in thousands, except per share amounts (unaudited)
1. General and administrative includes $1.8 million of General and administrative – property level which is also included in multifamily NOI. Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 REVENUES Multifamily Office/Corp. Less: Disc. Ops Total All Operations Less: Disc. Ops Total Revenue from leases: Base rents $80,907 $45,020 $(2,283) $123,644 $150,381 $(27,488) $122,893 Escalations and recoveries from tenants 2,552 7,365 (729) 9,188 11,754 (3,060) 8,694 Real estate services 1,807 – – 1,807 5,119 – 5,119 Parking income 6,450 2,481 – 8,931 6,586 (16) 6,570 Hotel income 5,953 – – 5,953 3,767 – 3,767 Other income 1,724 26,212 – 27,936 7,215 (38) 7,177 Total revenues 99,393 81,078 (3,012) 177,459 184,822 (30,602) 154,220 EXPENSES Real estate taxes 15,415 9,504 (387) 24,532 27,583 (3,954) 23,629 Utilities 3,652 3,758 – 7,410 9,597 (2,354) 7,243 Operating services 23,423 14,025 (342) 37,106 39,883 (5,618) 34,265 Real estate services expenses 5,201 82 – 5,283 6,531 – 6,531 General and administrative(1) 3,234 27,825 (3) 31,056 32,071 (19) 32,052 Dead deal and transaction-related costs 82 1,263 – 1,345 2,745 – 2,745 Depreciation and amortization 37,552 16,991 (692) 53,851 57,978 (1,702) 56,276 Property impairments – – – – 6,041 – 6,041 Land and other impairments 6,832 – – 6,832 7,932 – 7,932 Total expenses 95,391 73,448 (1,424) 167,415 190,361 (13,647) 176,714 Operating Income (expense) 4,002 7,630 (1,588) 10,044 (5,539) (16,955) (22,494) OTHER (EXPENSE) INCOME Interest expense (27,885) (4,848) – (32,733) (35,734) 1,570 (34,164) Interest and other investment income (loss) 60 287 – 347 112 – 112 Equity in earnings (loss) of unconsolidated joint ventures 2,151 – – 2,151 (1,107) – (1,107) Realized and unrealized gains (losses) on disposition – (2,604) 4,440 1,836 28,382 (24,861) 3,521 Gain on disposition of developable land 55,125 2,623 – 57,748 111 – 111 Gain (loss) from extinguishment of debt, net (129) (6,289) – (6,418) (46,735) – (46,735) Total other income (expense) 29,322 (10,831) 4,440 22,931 (54,971) (23,291) (78,262) Income from continuing operations 33,324 (3,201) 2,852 32,975 (60,510) (40,246) (100,756) Income from discontinued operations – – 1,588 1,588 – 15,385 15,385 Realized gains (losses) on disposition – – (4,440) (4,440) – 24,861 24,861 Total discontinued operations – – (2,852) (2,852) – 40,246 40,246 Net Income 33,324 (3,201) – 30,123 (60,510) – (60,510) Noncontrolling interest in consolidated joint ventures 1,758 – – 1,758 2,533 – 2,533 Noncontrolling interests in Operating Partnership from continuing operations – (2,064) – (2,064) 10,122 – 10,122 Noncontrolling interests in Operating Partnership in discontinued operations – 267 – 267 (3,659) – (3,659) Redeemable noncontrolling interest (12,031) (772) – (12,803) (12,942) – (12,942) Net income (loss) available to common shareholders $23,051 $(5,770) – $17,281 $(64,456) – $(64,456) Basic earnings per common share: Net income (loss) available to common shareholders $0.12 $(0.75) Diluted earnings per common share: Net income (loss) available to common shareholders $0.12 $(0.75) Basic weighted average shares outstanding 90,989 90,733 Diluted weighted average shares outstanding 100,171 99,817 14 Income Statement - Year-to-Date Comparison $ in thousands, except per share amounts (unaudited)
Notes: See endnotes and “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) available to common shareholders $26,373 $(72,079) $17,281 $(64,456) Add (deduct): Noncontrolling interest in Operating Partnership 3,029 (7,742) 2,064 (10,122) Noncontrolling interests in discontinued operations (334) 517 (267) 3,659 Real estate-related depreciation and amortization on continuing operations(1) 29,980 30,702 58,444 60,432 Real estate-related depreciation and amortization on discontinued operations 296 647 691 1,699 Property impairments on continuing operations – 6,041 – 6,041 Impairment of unconsolidated joint venture investment (included in Equity in earnings) – (2) – (2) Continuing operations: Realized and unrealized (gains) losses on disposition of rental property, net – (3,521) (1,836) (3,521) Discontinued operations: Realized and unrealized (gains) losses on disposition of rental property, net 4,440 (2,080) 4,440 (24,861) Funds from operations(2) $63,784 $(47,517) $80,817 $(31,131) Add/(Deduct): (Gain)/Loss from extinguishment of debt, net 129 46,735 6,418 46,735 Dead deal and other post-sale items in other income/expense – (1,351) – (3,068) Dead deal and transaction-related costs 1,345 2,745 1,345 2,745 Land and other impairments 3,900 7,519 6,832 7,932 (Gain) on disposition of developable land (55,125) – (57,748) – CEO and related management changes costs – – – 2,089 Severance/Rebranding costs 1,225 7,213 8,867 8,258 Lease breakage fee, net – – (22,664) – Interest - derivative (2) – (2) – Core FFO $15,256 $15,344 $23,865 $33,560 Diluted weighted average shares/units outstanding(6) 100,352 99,873 100,171 99,817 Funds from operations per share-diluted $0.64 $(0.48) $0.81 $(0.31) Core Funds from Operations per share/unit-diluted $0.15 $0.15 $0.24 $0.34 Dividends declared per common share $0.00 $0.00 $0.00 $0.00 15 FFO & Core FFO $ in thousands except per share and ratios (unaudited)
Notes: See endnotes and “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. 16 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Core FFO (calculated on previous page) $15,256 $15,344 $23,865 $33,560 Add (Deduct) Non-Cash Items: Straight-line rent adjustments(3) 1,981 (2,255) 6,627 (3,534) Amortization of market lease intangibles, net 4 (620) (106) (1,652) Amortization of lease inducements 37 5 75 (8) Amortization of stock compensation 3,019 2,609 5,638 5,210 Non-real estate depreciation and amortization 325 329 650 654 Amortization of debt discount/(premium) and mark-to-market, net – 65 – 232 Amortization of deferred financing costs 1,181 1,283 2,358 2,190 Deduct: Non-incremental revenue generating capital expenditures: Building improvements (2,243) (2,662) (5,492) (5,355) Tenant improvements and leasing commissions(4) (1,611) (502) (6,261) (1,272) Tenant improvements and leasing commissions on space vacant for more than one year (9,606) (6,354) (15,898) (9,156) Core AFFO(2) $8,343 $7,242 $11,456 $20,869 Core FFO (calculated on previous page) $15,256 $15,344 $23,865 $33,560 Deduct: Equity in earnings (loss) of unconsolidated joint ventures, net (2,638) (349) (2,151) 1,107 Equity in earnings share of depreciation and amortization (2,572) (2,531) (5,243) (4,806) Add-back: Interest expense 17,707 16,830 32,733 35,734 Recurring JV distributions 5,223 3,545 6,618 4,766 Income (loss) in noncontrolling interest in consolidated joint ventures (784) (1,198) (1,757) (2,532) Redeemable noncontrolling interest 6,366 6,471 12,802 12,941 Income tax expense 89 38 204 153 Adjusted EBITDA $38,647 $38,150 $67,071 $80,923 Net debt at period end(5) 2,174,060 2,305,509 2,174,060 2,305,509 Net debt to Adjusted EBITDA 14.1x 15.1x 16.2x 14.2x AFFO & Adjusted EBITDA $ in thousands, except per share amounts and ratios (unaudited)
Notes: See unconsolidated joint venture NOI details and “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. 17 Three Months Ended June 30, 2022 2021 Net Income (loss) available to common shareholders $26,373 -$72,079 Add/(Deduct): Noncontrolling interest in operating partnership 3,029 (7,742) Noncontrolling interest in discontinued operations (334) 517 Noncontrolling interest in consolidated joint ventures(a) (784) (1,198) Redeemable noncontrolling interest 6,366 6,471 Interest expense 17,707 16,830 Income tax expense 89 38 Depreciation and amortization 28,029 29,146 Deduct: Continuing operations: Realized and unrealized (gains) losses on disposition of rental property, net – (3,521) Discontinued operations: Realized and unrealized (gains) losses on disposition of rental property, net 4,440 (2,080) Equity in (earnings) loss of unconsolidated joint ventures (2,638) (349) Add: Property Impairments – 6,041 Company's share of property NOI's in unconsolidated joint ventures(1) 8,719 6,970 EBITDAre $90,996 $(20,956) Add: Loss from extinguishment of debt, net 129 46,735 Severance/Rebranding costs 1,225 7,213 Dead deal and other post-sale items in Other income – (1,240) Dead deal and transaction-related costs (1,345) 2,745 Land and other impairments 3,900 7,519 Gain on disposition of developable land (55,125) (111) CEO and related management changes – – Interest - derivative (2) – Adjusted EBITDAre $39,778 $41,905 (a) Noncontrolling interests in consolidated joint ventures: BLVD 425 (89) (301) BLVD 401 (667) (736) Port Imperial Garage South (11) (141) Port Imperial Retail South 18 23 Other consolidated joint ventures (35) (43) Net losses in noncontrolling interests $(784) $(1,198) Depreciation in noncontrolling interest in consolidated JV's 704 680 Funds from operations - noncontrolling interest in consolidated JV's $(80) $(518) Interest expense in noncontrolling interest in consolidated JV's 792 807 Net operating income before debt service in consolidated JV's $712 $289 EBITDAre - Quarterly Comparison $ in thousands (unaudited)
• 76% of the Company’s total debt portfolio (consolidated and unconsolidated) is hedged or fixed at a weighted average interest rate of 3.69% with a weighted average maturity of five years $ in thousands Debt Maturity Schedule $292 $250 $148 $308 $483 $316 $292 $72 $76 $174 Construction Office secured Multifamily secured Revolver Unused Revolver Capacity 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 18 Balance % of Total Weighted Average Interest Rate(1) Weighted Average Maturity in Years Fixed Rate Debt Fixed Rate Secured Debt $1,532,416 68.5% 3.70% 4.51 Variable Rate Debt Variable Rate Secured Debt 704,672 31.5% 3.72% 2.93 Totals / Weighted Average $2,237,088 100.0% 3.70% 4.02 Unamortized Deferred Financing Costs (9,599) Total Consolidated Debt, net $2,227,489 Partners’ Share (73,548) VRE Share of Total Consolidated Debt, net(2) $2,153,941 Unconsolidated Secured Debt VRE Share 363,342 52.6% 3.83% 5.69 Partners’ Share 326,853 47.4% 3.83% 5.69 Total Unconsolidated Secured Debt $690,195 100.0% 3.83% 5.69 Debt Summary & Maturity Schedule 1. The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 1.03 percent as of June 30, 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 $9.7 million at Port Imperial South Garage.
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. Haus25 construction loan can be extended to December 1, 2025. 3. Includes a 3-year LIBOR cap at a strike rate of 1.0%. 4. Includes a 2-year SOFR cap at a strike rate of 3.0%. 19 Lender Effective Interest Rate(1) June 30, 2022 Date of Maturity Secured Construction Loans Haus25(2) QuadReal Finance LIBOR+ 2.70% 291,672 12/01/24 Total Secured Construction Debt 291,672 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(3) 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 RiverHouse 9(4) JP Morgan Chase Bank SOFR + 1.41% 110,000 06/21/27 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% 32,418 12/01/29 The Emery New York Community Bank 3.21% 72,000 01/01/31 Principal Balance Outstanding 1,619,416 Unamortized Deferred Financing Costs (8,754) Total Secured Permanent Debt 1,610,662 Total Debt - Multifamily Portfolio - A 1,902,334 Multifamily Debt Profile $ in thousands
Lender Effective Interest Rate(1) June 30, 2022 Date of 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 (845) Total Secured Debt - Office Portfolio 249,155 Secured Revolving Credit Facilities & Term Loans: Secured Revolving Credit Facility 8 Lenders LIBOR + 2.75% 76,000 05/06/24 Total Debt - Office Portfolio - B 325,155 Total Debt - Multifamily Portfolio - A 1,902,334 Total Consolidated Debt: A + B = C 2,227,489 20 Office Debt Profile $ in thousands
Property Units Physical Occupancy VRE's Nominal Ownership(1) Q2 2022 NOI(2) Total Debt VRE Share of Q2 NOI VRE Share of Debt Multifamily Urby Harborside 762 97.4% 85.0% $4,991 $189,845 $4,242 $161,368 RiverTrace at Port Imperial 316 96.8% 22.5% 1,896 82,000 427 18,450 Capstone at Port Imperial 360 99.2% 40.0% 2,063 135,000 825 54,000 Riverpark at Harrison 141 95.7% 45.0% 450 30,192 203 13,586 Metropolitan at 40 Park 130 96.9% 25.0% 1,067 42,567 267 10,642 Metropolitan Lofts 59 94.9% 50.0% 263 18,200 132 9,100 Station House 378 93.4% 50.0% 1,740 92,391 870 46,196 Subtotal - Multifamily 2,146 96.7% 54.9% $12,470 $590,195 $6,966 $313,342 Retail/Hotel Hyatt Regency Jersey City 351 65.2% 50.0% $3,188 $100,000 $1,594 $50,000 Total Operating $15,658 $690,195 $8,560 $363,342 Other Unconsolidated JVs $320 – $159 – Total Unconsolidated JVs $15,978 $690,195 $8,719 $363,342 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. 21 Unconsolidated Joint Ventures $ in thousands
Multifamily Portfolio 22
Operating Highlights Rentable SF Avg. Size Year Complete Percentage Occupied Average Revenue per Home NOI Debt BalanceLocation Ownership Apartments Q2 2022 Q1 2022 Q2 2022 Q1 2022 Q2 2022 Q1 2022 New Jersey Waterfront Liberty Towers Jersey City, NJ 100.0% 648 602,210 929 2003 98.3% 97.7% $3,496 $3,302 $4,354 $3,882 $265,000 BLVD 425 Jersey City, NJ 74.3% 412 369,515 897 2003 98.1% 96.8% 3,231 3,101 2,395 2,121 131,000 BLVD 475 Jersey City, NJ 100.0% 523 475,459 909 2011 95.6% 97.7% 3,357 3,218 3,038 2,735 165,000 BLVD 401 Jersey City, NJ 74.3% 311 273,132 878 2016 96.8% 97.7% 3,484 3,311 1,972 1,804 117,000 Soho Lofts Jersey City, NJ 100.0% 377 449,067 1,191 2017 97.3% 95.5% 3,925 3,791 2,400 2,309 160,000 Urby Harborside Jersey City, NJ 85.0% 762 474,476 623 2017 97.4% 98.3% 3,319 3,127 4,991 4,710 189,845 RiverHouse 9 Weehawken, NJ 100.0% 313 245,127 783 2021 100.0% 100.0% 3,178 3,187 1,855 1,852 110,000 RiverHouse 11 Weehawken, NJ 100.0% 295 250,591 849 2018 97.6% 98.0% 3,559 3,461 2,074 2,003 100,000 RiverTrace at Port Imperial West New York, NJ 22.5% 316 295,767 936 2014 96.8% 98.1% 3,270 3,208 1,896 1,830 82,000 Capstone at Port Imperial West New York, NJ 40.0% 360 337,991 939 2021 99.2% 100.0% 3,231 3,106 2,063 1,896 135,000 New Jersey Waterfront Subtotal 82.4% 4,317 3,773,335 874 97.6% 97.9% $3,402 $3,264 $27,038 $25,142 $1,454,845 Massachusetts Portside at East Pier East Boston, MA 100.0% 181 156,091 862 2015 98.3% 97.7% $2,928 $2,832 $1,181 $1,016 $58,998 Portside II at East Pier East Boston, MA 100.0% 296 230,614 779 2018 95.1% 95.5% 2,989 2,905 1,782 1,645 97,000 145 Front at City Square Worcester, MA 100.0% 365 304,936 835 2018 95.6% 97.8% 2,337 2,247 1,410 1,326 63,000 The Emery Revere, MA 100.0% 326 273,140 838 2020 96.6% 97.5% 2,490 2,427 1,429 1,376 72,000 Massachusetts Subtotal 100.0% 1,168 964,781 826 96.2% 97.1% $2,637 $2,555 $5,802 $5,363 $290,998 Other The Upton Short Hills, NJ 100.0% 193 217,030 1,125 2021 96.9% 98.4% $3,846 $3,655 $1,181 $1,098 $75,000 Signature Place Morris Plains, NJ 100.0% 197 203,716 1,034 2018 99.0% 98.5% 2,848 2,757 840 800 43,000 Quarry Place at Tuckahoe Eastchester, NY 100.0% 108 105,551 977 2016 96.3% 98.1% 3,693 3,648 666 711 41,000 RiverPark at Harrison Harrison, NJ 45.0% 141 124,774 885 2014 95.7% 97.2% 2,369 2,300 450 453 30,192 Metropolitan at 40 Park(1) Morristown, NJ 25.0% 130 124,237 956 2010 96.9% 96.2% 3,243 3,076 758 538 36,500 Metropolitan Lofts Morristown, NJ 50.0% 59 54,683 927 2018 94.9% 93.2% 3,327 3,199 263 236 18,200 Station House Washington, DC 50.0% 378 290,348 768 2015 93.4% 94.2% 2,587 2,395 1,740 1,424 92,391 Other Subtotal 67.4% 1,206 1,120,339 929 95.9% 96.4% $3,011 $2,870 $5,898 $5,260 $336,283 Operating Portfolio(2) 82.7% 6,691 5,858,455 876 97.1% 97.5% $3,198 $3,069 $38,738 $35,765 $2,082,126 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 June 30, 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. 23 Operating Portfolio - Multifamily $ in thousands, except per home
Commercial Location Ownership Spaces Rentable SF Year Complete Percentage Leased Q2 2022 Percentage Leased Q1 2022 NOI Q2 2022 NOI Q1 2022 Debt Balance Port Imperial Garage South Weehawken, NJ 70.0% 800 320,426 2013 N/A N/A $527 $272 $32,418 Port Imperial Garage North Weehawken, NJ 100.0% 786 304,617 2016 N/A N/A (19) (85) – Port Imperial Retail South Weehawken, NJ 70.0% 18,064 2013 88.1% 88.1% 149 128 – Port Imperial Retail North Weehawken, NJ 100.0% 8,400 2016 100.0% 100.0% 113 161 – Riverwalk at Port Imperial West New York, NJ 100.0% 30,423 2008 65.0% 65.0% 152 184 – Shops at 40 Park Morristown, NJ 25.0% 50,973 2010 69.0% 69.0% 309 341 6,067 Commercial Total 80.9% 732,903 73.5% 73.5% $1,231 $1,001 $38,485 Hotels Location Ownership Keys Year Complete Average Occupancy Q2 2022 Average Occupancy Q1 2022 ADR Q2 2022 ADR Q1 2022 NOI Q2 2022 NOI Q1 2022 Debt Balance Envue, Autograph Collection Weehawken, NJ 100.0% 208 2019 73.7% 38.8% $219 $196 $975 $(1,137) Residence Inn at Port Imperial Weehawken, NJ 100.0% 164 2018 83.7% 72.3% 204 156 711 118 Marriott Hotels at Port Imperial 100.0% 372 78.1% 53.6% $423 $351 $1,686 $(1,019) $89,000 Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. 24 Operating Portfolio - Commercial $ in thousands
Project Capitalization - Total Capital as of Q2 2022 Development Schedule Location Ownership Apartment Homes/ Keys Costs Debt(1) VRE Capital Third Party Capital Dev Costs(2) Debt Balance Start Initial Occupancy Project Stabilization Projected Stabilized Yield on Cost Projected Stabilized NOI Consolidated Haus25 Jersey City, NJ 100.0% 750 $469,510 $300,000 $169,510 — $461,182 $291,672 Q1 2019 Q2 2022 Q1 2023 6.11% $28,707 Land Bank Potential Units Hudson Waterfront 3,526 Greater NY/NJ 1,069 Boston Metro 864 Land Bank Total 5,459 25 Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. NOI amounts are projected only. 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 NOI assumes NOI at projected property revenue at 95% occupancy. Projected Stabilized Yield on Cost represents Projected Stabilized NOI divided by Total Costs. 1. Represents maximum loan proceeds. 2. Represents development costs funded with debt or capital as of June 30, 2022. Lease-Up Portfolio & Land Bank • There is no remaining equity to be funded $ in thousands
26 Office Portfolio
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 June 2022 billings times 12. For leases whose rent commences after July 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. Avg. Base Rent + Escalations(1) 2022 Expirations Building Location Total SF Leased SF % Leased SF % Total In-Place Rent 101 Hudson Jersey City, NJ 1,246,283 1,037,100 83.2% $40.49 40,605 3% $44.25 Harborside 2 & 3 Jersey City, NJ 1,487,222 1,299,986 87.4% 39.94 22,300 1% 42.00 Harborside 5 Jersey City, NJ 977,225 400,079 40.9% 43.53 9,102 1% 53.50 Harborside 6 Jersey City, NJ 231,856 47,542 20.5% N/A – – — Total Waterfront (In-Service) 3,942,586 2,784,707 70.6% $40.68 72,007 2% $44.72 Harborside 1(2) Jersey City, NJ 399,578 – N/A N/A N/A N/A N/A Total Waterfront 4,342,164 2,784,707 64.1% $40.68 72,007 2% $44.72 23 Main Street(3) Holmdel, NJ 350,000 350,000 100.0% 18.83 – – - Total Suburban 350,000 350,000 100.0% $18.83 – – – Total In-Service Office Portfolio 4,292,586 3,134,707 73.0% $38.24 72,007 2% $44.72 27 Property Listing
1. Inclusive of escalations. Leasing Rollforwards For the three months ended June 30, 2022 Leased (%) Q1 2022 Inventory Q1 2022 Leased (SF) Q1 2022 Inventory Acquired/ Disposed Leased (SF) Acquired/ Disposed Expiring/ Adj. SF Incoming SF Net Leasing Activity Inventory Q2 2022 Leased (SF) Q2 2022 Leased (%) Q2 2022 Waterfront 70.9% 3,942,586 2,795,843 – – (35,315) 24,179 (11,136) 3,942,586 2,784,707 70.6% Suburban 100.0% 350,000 350,000 – – – – – 350,000 350,000 100.0% Subtotals 73.3% 4,292,586 3,145,843 – – (35,315) 24,179 (11,136) 4,292,586 3,134,707 73.0% Leasing Activity For the three months ended June 30, 2022 Number of Transactions Total SF New Leases SF Renewed / Other Retained (SF) Weighted SF Weighted Avg. Term (Yrs) Wtd. Avg. Base Rent ($)(1) Wtd. Avg. Costs SF Per Year ($) Waterfront 1 24,179 24,179 – 24,179 5.7 $33.98 $2.55 Suburban – – – – – – – Subtotals 1 24,179 24,179 – 24,179 5.7 $33.98 $2.55 28 Leasing Rollforwards & Activity For the six months ended June 30, 2022 Leased (%) Q4 2021 Inventory Q4 2021 Leased (SF) Q4 2021 Inventory Acquired/ Disposed Leased (SF) Acquired/ Disposed Expiring/ Adj. SF Incoming SF Net Leasing Activity Inventory Q2 2022 Leased (SF) Q2 2022 Leased (%) Q2 2022 Waterfront 72.0% 4,508,801 3,244,653 (566,215) (460,352) (165,965) 166,371 406 3,942,586 2,784,707 70.6% Suburban 100.0% 350,000 350,000 – – – – – 350,000 350,000 100.0% Subtotals 74.0% 4,858,801 3,594,653 (566,215) (460,352) (165,965) 166,371 406 4,292,586 3,134,707 73.0%
1. Annualized base rental revenue plus escalations is based on actual June 2022 billings times 12. For leases whose rent commences after July 1, 2022 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above. 2. Represents the percentage of space leased and annual base rental revenue to commercial tenants only. 3. Collectors Universe – 16,393 square feet expire in 2023; 130,419 square feet expire in 2038. 4. First Data Corporation – 8,014 square feet expire in 2026; 80,360 square feet expire in 2029. 5. Tp Icap Americas Holdings – 63,372 square feet expire in 2023; 37,387 square feet expire in 2033. 6. BETMGM – 22,300 square feet expire in 2022; 49,043 square feet expire in 2032. Number of Properties Annualized Base Rental Revenue ($'000)(1) Company Annualized Base Rental Revenue (%)(2) Square Feet Leased Total Company Leased SF (%)(2) Year of Lease Expiration Merrill Lynch Pierce Fenner 1 $9,418 9.1% 388,207 13.1% 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 5.3% 132,265 4.5% 2031 Vonage America Inc. 1 $5,023 4.9% 350,000 11.8% 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 3.3% 100,759 3.4% (5) Cardinia Real Estate 1 $3,239 3.1% 79,771 2.7% 2032 New Jersey City University 1 $3,011 2.9% 84,929 2.9% 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 $65,955 63.8% 2,053,560 69.3% 29 Top 15 Tenants
1. Includes office & standalone retail property tenants only. Excludes leases for amenity, retail, parking & month-to-month tenants. Some tenants have multiple leases. 2. Annualized base rental revenue plus escalations is based on actual June 2022 billings times 12. For leases whose rent commences after July 1, 2022 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above. 3. Includes leases in effect as of the period end date, some of which have commencement dates in the future. 30 Year of Expiration/Market Number of Leases Expiring(1) Net Rentable Area Subject to Expiring Leases (SF) Percentage of Total Leased Square Feet Represented by Expiring Leases (%) Annualized Base Rental Revenue Under Expiring Leases ($'000)(2)(3) Average Annualized Base Rent Per Net Rentable Square Foot Represented by Expiring Leases ($) Percentage of Annual Base Rent Under Expiring Leases (%) 2022 Waterfront 11 72,007 2.4% $3,119 $43.32 3.0% Total – 2022 11 72,007 2.4% $3,119 $43.32 3.0% 2023 Waterfront 15 352,464 11.9% $13,395 $38.00 13.0% Suburban 1 350,000 11.8% $5,023 $14.35 4.9% Total – 2023 16 702,464 23.7% $18,418 $26.22 17.9% 2024 Waterfront 13 215,003 7.2% $8,569 $39.86 8.3% Total – 2024 13 215,003 7.2% $8,569 $39.86 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 7.9% Total – 2026 9 219,408 7.4% $8,196 $37.35 7.9% 2027 Waterfront 7 422,375 14.2% $11,129 $26.35 10.8% Total – 2027 7 422,375 14.2% $11,129 $26.35 10.8% 2028 and thereafter Waterfront 32 1,222,355 41.2% $50,130 $41.01 48.5% TOTAL – 2028 and thereafter 32 1,222,355 41.2% $50,130 $41.01 48.5% Totals by Type Waterfront 99 2,619,272 88.2% $98,252 $37.51 95.1% Suburban 1 350,000 11.8% $5,023 $14.35 4.9% Totals/Weighted Average 100 2,969,272 100.0% $103,275 $34.78 100.0% Lease Expirations
Notes: Veris Residential properties as of June 30, 2022. Peer comparable data as of Q2 2022 reporting. 1. Veris Residential portfolio includes Haus25, except for Same Store metrics. Same Store also excludes the Upton, RiverHouse 9 and Capstone. 2. Veris Residential is based on Same Store assets excluding Urby, Station House and RiverPark at Harrison. Peer information is based on Same Store. 3. Veris Residential as of June 30, 2022. Peer information based on Green Street as of August 1, 2022. 4. ORA Rankings as published by J Turner as of June 30, 2022. 31 Veris Residential Peer Comparison Number of Properties 22 299 75 176 254 310 292 181 27 Number of Units 7,441 89,037 25,363 60,267 62,661 80,227 98,778 58,328 8,868 Same Store NOI Growth 28.0% 17.0% 16.4% 16.5% 19.1% 16.7% 17.1% 14.7% 5.1% Net Blended Rental Growth Rate2 20.8% 13.9% 14.1% 15.3% 14.8% 15.4% 17.2% 17.4% 11.2% Same Store Average Monthly Rent per Home $3,176 $2,760 $2,589 $1,839 $2,461 $2,900 $1,529 $2,377 $1,781 Average Asset Age3 6 15 38 13 28 23 19 23 41 Capex Reserve per Home3 $855 $2,100 $4,300 $3,025 $3,150 $2,300 $2,425 $2,850 $2,500 ORA Ranking4 84.60 79.39 68.42 79.36 60.89 69.50 77.18 59.57 N/A 1
FFO, Core FFO, AFFO, NOI, Adjusted EBITDA, & EBITDAre (1) Includes the Company’s share from unconsolidated joint ventures, and adjustments for noncontrolling interest of $2,571 and $2,533 for the three months ended June 30, 2022 and 2021, respectively and $5,242 and $4,808 for the six months June 30, 2022 and 2021, respectively. Excludes non- real estate-related depreciation and amortization of $325 and $329 for the three months ended June 30, 2022 and 2021, respectively, and $650 and $654 for the six months ended June 30, 2022 and 2021, respectively. (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 $1,917 and $4,464 for the three months ended June 30, 2022 and 2021, respectively and $4,118 and $8,189 for the six months ended June 30, 2022 and 2021, respectively. Also includes the Company's share from unconsolidated joint ventures of $(319) and $46 for the three months ended June 30, 2022 and 2021, respectively and $(624) and $134 for the six months ended June 30, 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 (8,620 and 8,765 shares for the three months ended June 30, 2022 and 2021, respectively and 8,642 and 8,784 shares for the six months ended June 30, 2022 and 2021, respectively), plus dilutive Common Stock Equivalents (i.e. stock options). 32 Endnotes
33 Q2 2022 Q1 2022 Multifamily Office / Corp Total Multifamily Office / Corp Total Net Income (loss) $44,677 $(8,027) $36,650 $(11,354) $6,827 $(4,527) Deduct: Real estate services income (896) – (896) (910) – (910) Interest and other investment loss (income) 59 130 189 1 157 158 Equity in (earnings) loss of unconsolidated joint ventures (2,638) – (2,638) 487 – 487 General & Administrative - property level (1,137) – (1,137) (688) – (688) Realized and unrealized (gains) losses on disposition – – – – – – (Gain) loss on disposition of developable land (55,125) – (55,125) – (2,623) (2,623) (Gain) loss on sale of investment in unconsolidated joint venture – – – – – – (Gain) loss from early extinguishment of debt, net 129 – 129 – 6,289 6,289 Add: Real estate services expenses 2,873 47 2,920 2,328 35 2,363 General and administrative 1,819 9,201 11,020 1,416 17,765 19,181 Dead deal and transaction-related costs – – – – – – Depreciation and amortization 20,149 7,881 28,030 17,403 9,110 26,513 Interest expense 15,622 2,085 17,707 12,263 2,762 15,025 Property impairments – – – – – – Land impairments 3,900 – 3,900 2,932 – 2,932 Net operating income (NOI) $29,432 $11,317 $40,749 $23,878 $40,322 $64,200 Summary of Consolidated Multifamily NOI by Type (unaudited): Q2 2022 Q1 2022 Total Consolidated Multifamily - Operating Portfolio $26,577 $24,678 Total Consolidated Commercial $922 $660 Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests): $27,499 $25,338 NOI (loss) from services, land/development/repurposing & other assets $1,933 ($1,460) Total Consolidated Multifamily NOI $29,432 $23,878 Reconciliation of Net Income (Loss) to NOI (three months ended) $ in thousands (unaudited)
34 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. 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. Company Information, Executive Officers & Analysts