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

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting Information [Line Items]

17. SEGMENT REPORTING

The Company operates in two business segments: (i) commercial and other real estate and (ii) multi-family real estate and services. The Company provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate and multi-family real estate portfolio. The Company’s multi-family services business also provides similar services for third parties. The Company had no revenues from foreign countries recorded for the nine months ended September 30, 2019 and 2018. The Company had no long lived assets in foreign locations as of September 30, 2019 and December 31, 2018. The accounting policies of the segments are the same as those described in Note 2: Significant Accounting Policies, excluding depreciation and amortization.

The Company evaluates performance based upon net operating income from the combined properties and operations in each of its real estate segments (commercial and other real estate and multi-family real estate and services).

Selected results of operations for the three and nine months ended September 30, 2019 and 2018 and selected asset information as of September 30, 2019 and December 31, 2018 regarding the Company’s operating segments are as follows. Amounts for prior periods have been restated to conform to the current period segment reporting presentation (dollars in thousands):


		Commercial		Multi-family		Corporate		Total
		& Other Real Estate		Real Estate & Services (d)		& Other (e)		Company
Total revenues:
Three months ended:
September 30, 2019	$	84,705	$	46,453	$	726	$	131,884
September 30, 2018		100,489		30,942		683		132,114
Nine months ended:
September 30, 2019		268,136		127,521		937		396,594
September 30, 2018		317,467		79,582		621		397,670

Total operating and
interest expenses (a):
Three months ended:
September 30, 2019	$	35,934	$	23,989	$	31,211	$	91,134
September 30, 2018		43,774		19,272		25,994		89,040
Nine months ended:
September 30, 2019		113,155	$	67,606	$	98,576		279,337
September 30, 2018		140,872		51,563		77,689		270,124

Equity in earnings (loss) of
unconsolidated joint ventures:
Three months ended:
September 30, 2019	$	307	$	(420)	$	-	$	(113)
September 30, 2018		713		(1,400)		-		(687)
Nine months ended:
September 30, 2019		1,540		(2,422)		-		(882)
September 30, 2018		1,482		(649)		-		833

Net operating income (loss) (b):
Three months ended:
September 30, 2019	$	49,078	$	22,044	$	(30,485)	$	40,637
September 30, 2018		57,428		10,270		(25,311)		42,387
Nine months ended:
September 30, 2019		156,521		57,493		(97,639)		116,375
September 30, 2018		178,077		27,370		(77,068)		128,379

Total assets:
September 30, 2019	$	2,327,132	$	3,332,241	$	61,562	$	5,720,935
December 31, 2018		2,687,178		2,260,497		112,969		5,060,644

Total long-lived assets (c):
September 30, 2019	$	2,100,625	$	3,051,319	$	34,609	$	5,186,553
December 31, 2018		2,413,696		1,973,826		33,157		4,420,679

Total investments in
unconsolidated joint ventures:
September 30, 2019	$	10,808	$	202,691	$	-	$	213,499
December 31, 2018		13,699		218,771		280		232,750

(a)Total operating and interest expenses represent the sum of: real estate taxes; utilities; operating services; real estate services expenses; general and administrative, acquisition related costs and interest expense (net of interest income). All interest expense, net of interest and other investment income, (including for property-level mortgages) is excluded from segment amounts and classified in Corporate & Other for all periods.

(b)Net operating income represents total revenues less total operating and interest expenses (as defined and classified in Note “a”), plus equity in earnings (loss) of unconsolidated joint ventures, for the period.

(c)Long-lived assets are comprised of net investment in rental property, unbilled rents receivable and goodwill.

(d)Segment assets and operations were owned through a consolidated variable interest entity commencing in February 2018, and which also includes

the Company’s consolidated hotel operations.

(e)Corporate & Other represents all corporate-level items (including interest and other investment income, interest expense, non-property general and administrative expense), as well as intercompany eliminations necessary to reconcile to consolidated Company totals.

Mack-Cali Realty Corporation

The following schedule reconciles net operating income to net income (loss) available to common shareholders (dollars in thousands):


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2019		2018		2019		2018
Net operating income	$	40,637	$	42,387	$	116,375	$	128,379
Add (deduct):
Depreciation and amortization		(49,538)		(45,813)		(146,936)		(128,523)
Property impairments		(5,894)		-		(11,696)		-
Land impairments		(6,345)		-		(8,844)		-
Gain on change of control of interests		-		14,217		13,790		14,217
Realized gains (losses) and unrealized losses on disposition of
rental property, net		(35,079)		(9,102)		233,285		50,094
Gain on disposition of developable land		296		-		566		-
Gain on sale of investment in unconsolidated joint venture		-		-		903		-
Gain (loss) from extinguishment of debt, net		(98)		-		1,801		(10,289)
Net income (loss)		(56,021)		1,689		199,244		53,878
Noncontrolling interests in consolidated joint ventures		405		451		2,500		576
Noncontrolling interests in Operating Partnership		6,159		167		(19,087)		(4,574)
Redeemable noncontrolling interests		(6,471)		(3,785)		(16,144)		(9,573)
Net income (loss) available to common shareholders	$	(55,928)	$	(1,478)	$	166,513	$	40,307

Mack-Cali Realty, L.P.

The following schedule reconciles net operating income to net income (loss) available to common unitholders (dollars in thousands):


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2019		2018		2019		2018
Net operating income	$	40,637	$	42,387	$	116,375	$	128,379
Add (deduct):
Depreciation and amortization		(49,538)		(45,813)		(146,936)		(128,523)
Property impairments		(5,894)		-		(11,696)		-
Land impairments		(6,345)		-		(8,844)		-
Gain on change of control of interests		-		14,217		13,790		14,217
Realized gains (losses) and unrealized losses on disposition of
rental property, net		(35,079)		(9,102)		233,285		50,094
Gain on disposition of developable land		296		-		566		-
Gain on sale of investment in unconsolidated joint venture		-		-		903		-
Gain (loss) from extinguishment of debt, net		(98)		-		1,801		(10,289)
Net income (loss)		(56,021)		1,689		199,244		53,878
Noncontrolling interests in consolidated joint ventures		405		451		2,500		576
Redeemable noncontrolling interests		(6,471)		(3,785)		(16,144)		(9,573)
Net income (loss) available to common unitholders	$	(62,087)	$	(1,645)	$	185,600	$	44,881

Mack-Cali Realty LP [Member]