Veris Residential, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Segment Reporting

Segment Reporting

12 Months Ended

Dec. 31, 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 years ended December 31, 2018, 2017 and 2016. The Company had no long lived assets in foreign locations as of December 31, 2018 and 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 years ended December 31, 2018, 2017 and 2016, and selected asset information as of December 31, 2018 and 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:
2018	$	416,369	$	113,805	$	432	$	530,606
2017		522,223		90,654		3,323		616,200
2016		541,271		69,873		2,254		613,398

Total operating and
interest expenses (a):
2018	$	183,439	$	70,280	$	104,788	$	358,507
2017		238,055		63,589		94,662		396,306
2016		263,663		60,646		91,042		415,351

Equity in earnings (loss) of
unconsolidated joint ventures:
2018	$	2,319	$	(2,446)	$	-	$	(127)
2017		1,644		(7,725)		-		(6,081)
2016		23,796		(5,008)		-		18,788
								-
Net operating income (loss) (b):
2018	$	235,249	$	41,079	$	(104,356)	$	171,972
2017		285,812		19,340		(91,339)		213,813
2016		301,404		4,219		(88,788)		216,835

Total assets:
2018	$	2,687,178	$	2,260,497	$	112,969	$	5,060,644
2017		2,915,646		1,937,708		104,531		4,957,885

Total long-lived assets (c):
2018	$	2,413,696	$	1,973,826	$	33,157	$	4,420,679
2017		2,613,815		1,645,410		31,901		4,291,126

Total investments in
unconsolidated joint ventures:
2018	$	13,699	$	218,771	$	280	$	232,750
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 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.

(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 available to common shareholders (dollars in thousands):



	Year Ended December 31,
		2018		2017		2016
Net operating income	$	171,972	$	213,813	$	216,835
Add (deduct):
Depreciation and amortization		(174,847)		(205,169)		(186,684)
Land Impairments		(24,566)		-		-
Gain on change of control of interests		14,217		-		15,347
Realized gains (losses) and unrealized losses on disposition of
rental property, net		99,436		2,364		109,666
Gain on disposition of developable land		30,939		-		-
Gain on sale of investment in unconsolidated joint venture		-		23,131		5,670
Loss from extinguishment of debt, net		(10,750)		(421)		(30,540)
Net income		106,401		33,718		130,294
Noncontrolling interest in consolidated joint ventures		1,216		1,018		651
Noncontrolling interest in Operating Partnership		(9,527)		(2,711)		(13,721)
Redeemable noncontrolling interest		(13,979)		(8,840)		-
Net income available to common shareholders	$	84,111	$	23,185	$	117,224

Mack-Cali Realty, L.P.

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



	Year Ended December 31,
		2018		2017		2016
Net operating income	$	171,972	$	213,813	$	216,835
Add (deduct):
Depreciation and amortization		(174,847)		(205,169)		(186,684)
Land Impairments		(24,566)		-		-
Gain on change of control of interests		14,217		-		15,347
Realized gains (losses) and unrealized losses on disposition of
rental property, net		99,436		2,364		109,666
Gain on disposition of developable land		30,939		-		-
Gain on sale of investment in unconsolidated joint venture		-		23,131		5,670
Loss from extinguishment of debt, net		(10,750)		(421)		(30,540)
Net income		106,401		33,718		130,294
Noncontrolling interest in consolidated joint ventures		1,216		1,018		651
Redeemable noncontrolling interest		(13,979)		(8,840)
Net income available to common unitholders	$	93,638	$	25,896	$	130,945

Mack-Cali Realty LP [Member]