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

6 Months Ended

Jun. 30, 2018

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 six months ended June 30, 2018 and 2017. The Company had no long lived assets in foreign locations as of June 30, 2018 and December 31, 2017. 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 six months ended June 30, 2018 and 2017 and selected asset information as of June 30, 2018 and December 31, 2017 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:
June 30, 2018	$	101,792	$	24,781	$	16	$	126,589
June 30, 2017		138,003		23,859		904		162,766
Six months ended:
June 30, 2018		216,978		48,640		(62)		265,556
June 30, 2017		269,869		41,207		1,577		312,653

Total operating and
interest expenses (a):
Three months ended:
June 30, 2018	$	43,116	$	16,194	$	25,323	$	84,633
June 30, 2017		55,620		16,455		29,802		101,877
Six months ended:
June 30, 2018		97,097		32,291		51,696		181,084
June 30, 2017		113,670		31,042		54,471		199,183


Equity in earnings (loss) of
unconsolidated joint ventures:
Three months ended:
June 30, 2018	$	909	$	(961)	$	-	$	(52)
June 30, 2017		(18)		(3,280)		-		(3,298)
Six months ended:
June 30, 2018		769		751		-		1,520
June 30, 2017		394		(3,743)		-		(3,349)

Net operating income (loss) (b):
Three months ended:
June 30, 2018	$	59,585	$	7,626	$	(25,307)	$	41,904
June 30, 2017		82,365		4,124		(28,898)		57,591
Six months ended:
June 30, 2018		120,650		17,100		(51,758)		85,992
June 30, 2017		156,593		6,422		(52,894)		110,121

Total assets:
June 30, 2018	$	2,751,750	$	2,036,479	$	70,055	$	4,858,284
December 31, 2017		2,915,646		1,937,708		104,531		4,957,885

Total long-lived assets (c):
June 30, 2018	$	2,478,007	$	1,733,979	$	33,344	$	4,245,330
December 31, 2017		2,613,815		1,645,410		31,901		4,291,126

Total investments in
unconsolidated joint ventures:
June 30, 2018	$	15,110	$	232,199	$	298	$	247,607
December 31, 2017		15,143		237,321		162		252,626

(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 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 2017.

(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				Six Months Ended
		June 30,				June 30,
		2018		2017		2018		2017
Net operating income	$	41,904	$	57,591	$	85,992	$	110,121
Add (deduct):
Depreciation and amortization		(41,413)		(57,762)		(82,710)		(105,393)
Realized gains (losses) and unrealized losses on disposition of
rental property, net		1,010		(38,954)		59,196		(33,448)
Gain on sale of investment in unconsolidated joint venture		-		-		-		12,563
Loss from extinguishment of debt, net		-		-		(10,289)		(239)
Net income (loss)		1,501		(39,125)		52,189		(16,396)
Noncontrolling interest in consolidated joint ventures		95		181		125		418
Noncontrolling interest in Operating Partnership		142		4,296		(4,741)		2,001
Redeemable noncontrolling interest		(2,989)		(2,682)		(5,788)		(3,474)
Net income (loss) available to common shareholders	$	(1,251)	$	(37,330)	$	41,785	$	(17,451)

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				Six Months Ended
		June 30,				June 30,
		2018		2017		2018		2017
Net operating income	$	41,904	$	57,591	$	85,992	$	110,121
Add (deduct):
Depreciation and amortization		(41,413)		(57,762)		(82,710)		(105,393)
Realized gains (losses) and unrealized losses on disposition of
rental property, net		1,010		(38,954)		59,196		(33,448)
Gain on sale of investment in unconsolidated joint venture		-		-		-		12,563
Loss from extinguishment of debt, net		-		-		(10,289)		(239)
Net income (loss)		1,501		(39,125)		52,189		(16,396)
Noncontrolling interest in consolidated joint ventures		95		181		125		418
Redeemable noncontrolling interest		(2,989)		(2,682)		(5,788)		(3,474)
Net income (loss) available to common unitholders	$	(1,393)	$	(41,626)	$	46,526	$	(19,452)

Mack-Cali Realty LP [Member]