Veris Residential, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Real Estate Transactions (Tables)

Real Estate Transactions (Tables)

6 Months Ended

Jun. 30, 2014

		Andover
		Place
Land	$	8,535
Buildings and improvements		27,609
Furniture, fixtures and equipment		459
In-place lease values (1)		1,118
		37,721

Less: Below market lease values (1)		(25)

Net cash paid at acquisition	$	37,696

(1)In-place lease values and below market lease values will be amortized over one year or less.

Schedule Of Property Sales


				Rentable		Net		Net
Sale			# of	Square		Sales		Book		Realized
Date	Property/Address	Location	Bldgs.	Feet		Proceeds		Value		Gain
04/23/14	22 Sylvan Way	Parsippany, New Jersey	1	249,409	$	94,897	$	60,244	$	34,653
06/23/14	30 Knightsbridge Road (a)	Piscataway, New Jersey	4	680,350		54,641		52,361		2,280
06/23/14	470 Chestnut Ridge Road (a) (b)	Woodcliff Lake, New Jersey	1	52,500		7,195		7,109		86
06/23/14	530 Chestnut Ridge Road (a) (b)	Woodcliff Lake, New Jersey	1	57,204		6,299		6,235		64
06/27/14	400 Rella Boulevard	Suffern, New York	1	180,000		27,539		10,938		16,601
06/30/14	412 Mount Kemble Avenue (a)	Morris Township, New Jersey	1	475,100		44,751		43,851		900

Totals:			9	1,694,563	$	235,322	$	180,738	$	54,584

(a)The Company completed the sale of these properties for approximately $117 million: $114.6 million in cash and subordinated equity interests in each of the properties sold with capital accounts aggregating $2.4 million. Net sale proceeds from the sale aggregated $112.9 million which was comprised of the $117 million gross sales price less the subordinated equity interests of $2.4 million and $1.7 million in closing costs. The purchasers of these properties are joint ventures formed between the Company and affiliates of the Keystone Property Group (“Keystone Entities”). The senior equity will receive a 15 percent internal rate of return (“IRR”) after which the subordinated equity will receive a ten percent IRR and then all distributable cash flow will be split equally between the Keystone Entities and the Company. In connection with these partial sale transactions, because the buyer receives a preferential return, the Company only recognized profit to the extent that they received net proceeds in excess of their entire carrying value of the properties, effectively reflecting their retained subordinate equity interest at zero. The Company has contracts with Keystone Entities to sell an additional seven of its office properties in New Jersey, New York and Connecticut, aggregating approximately 928,258 square feet, for approximately $104 million, comprised of: $78.3 million in cash from a combination of Keystone Entities senior and pari-passu equity and mortgage financing; Company subordinated equity interests in each of the properties being sold with capital accounts aggregating $18.8 million; and Company pari passu equity interests in three of the properties being sold aggregating $6.9 million.

(b)The Company recorded an impairment charge of $3.9 million on these properties at December 31, 2013 as it estimated that the carrying value of the properties may not be recoverable over their anticipated holding periods.

Summary Of Income From Properties Sold


	Three Months Ended		Six Months Ended
		June 30,	June 30,
		2013		2013
Total revenues	$	12,333	$	27,205
Operating and other expenses		(4,778)		(10,982)
Depreciation and amortization		(2,989)		(6,442)
Interest expense		(36)		(118)

Income from discontinued operations		4,530		9,663

Loss from early extinguishment of debt		(703)		(703)
Impairments (1)		(23,851)		(23,851)

Realized gains on disposition of rental property		37,609		37,609
Realized gains (losses) and unrealized losses on
disposition of rental property and impairments, net		13,758		13,758

Total discontinued operations	$	17,585	$	22,718

(1)Represents impairment charges recorded on certain properties prior to their sale.

Properties Sold, Year To Date [Member]

Real Estate Properties [Line Items]

Summary Of Income From Properties Sold



		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
Total revenues	$	6,547	$	9,235	$	16,302	$	18,478
Operating and other expenses		(3,208)		(3,918)		(8,764)		(7,099)
Depreciation and amortization		(1,433)		(2,190)		(3,379)		(4,376)
Interest income		3		-		3		-

Income from properties sold		1,909		3,127		4,162		7,003

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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