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

Quarterly report pursuant to Section 13 or 15(d)

Deferred Charges, Goodwill And Other Assets, Net

Deferred Charges, Goodwill And Other Assets, Net

9 Months Ended

Sep. 30, 2015

Deferred Charges, Goodwill And Other Assets, Net [Abstract]

Deferred Charges, Goodwill And Other Assets, Net

5. DEFERRED CHARGES, GOODWILL AND OTHER ASSETS, NET



		September 30,		December 31,
(dollars in thousands)		2015		2014
Deferred leasing costs	$	232,291	$	239,138
Deferred financing costs		20,823		24,042
		253,114		263,180
Accumulated amortization		(119,965)		(122,358)
Deferred charges, net		133,149		140,822
Notes receivable (a)		13,557		21,491
In-place lease values, related intangibles and other assets, net		4,936		6,565
Goodwill		2,945		2,945
Prepaid expenses and other assets, net		46,136		32,827

Total deferred charges, goodwill and other assets, net	$	200,723	$	204,650

(a)Includes as of September 30, 2015: a mortgage receivable for $10.4 million which bears interest at LIBOR plus six percent and matures in August 2016; and an interest-free note receivable with a net present value of $3.1 million and matures in April 2023. The Company believes these balances are fully collectible.

DERIVATIVE FINANCIAL INSTRUMENTS

The Company does not have any derivative instruments designated as cash flow hedges. The following table summarizes the notional and fair value of the Company’s derivative financial instruments, designated as fair value hedges, as of September 30, 2015 and December 31, 2014 (dollars in thousands):



								Fair Value
		Notional		Strike		Effective	Expiration		September 30,		December 31,
		Value	(a)	Rate		Date	Date		2015		2014
LIBOR Cap	$	51,000		1.5	%	September 2014	October 2015	$	-	$	1
LIBOR Cap		24,000		1.5	%	September 2014	October 2015		-		1
LIBOR Cap		51,000		1.75	%	October 2015	October 2016		2		64
LIBOR Cap		24,000		1.75	%	October 2015	October 2016		1		29
								$	3	$	95

(a)

The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks.

The Company includes these derivative financial instruments in deferred charges, goodwill and other assets, net. As changes in the fair value of these derivative financial instruments are recorded in earnings, the Company recorded a loss on the change in fair value of $12,000 and $92,000 during the three and nine months ended September 30, 2015, respectively, which is included in interest and other investment income in the consolidated statements of operations.