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

3 Months Ended

Mar. 31, 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 three months ended March 31, 2019 and 2018. The Company had no long lived assets in foreign locations as of March 31, 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 months ended March 31, 2019 and 2018 and selected asset information as of March 31, 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:
March 31, 2019	$	98,060	$	36,359	$	(170)	$	134,249
March 31, 2018		115,184		23,860		(77)		138,967

Total operating and
interest expenses (a):
Three months ended:
March 31, 2019	$	41,943	$	21,188	$	30,910	$	94,041
March 31, 2018		57,583		16,097		22,771		96,451

Equity in earnings (loss) of
unconsolidated joint ventures:
Three months ended:
March 31, 2019	$	721	$	(1,402)	$	-	$	(681)
March 31, 2018		(140)		1,712		-		1,572

Net operating income (loss) (b):
Three months ended:
March 31, 2019	$	56,838	$	13,769	$	(31,080)	$	39,527
March 31, 2018		57,461		9,475		(22,848)		44,088

Total assets:
March 31, 2019	$	2,509,690	$	2,440,389	$	324,205	$	5,274,284
December 31, 2018		2,687,178		2,260,497		112,969		5,060,644

Total long-lived assets (c):
March 31, 2019	$	2,226,796	$	2,169,197	$	33,827	$	4,429,820
December 31, 2018		2,413,696		1,973,826		33,157		4,420,679

Total investments in
unconsolidated joint ventures:
March 31, 2019	$	10,551	$	202,096	$	314	$	212,961
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 available to common shareholders (dollars in thousands):



		Three Months Ended
		March 31,
		2019		2018
Net operating income	$	39,527	$	44,088
Add (deduct):
Depreciation and amortization		(48,046)		(41,297)
Gain on change of control of interests		13,790		-
Realized gains (losses) and unrealized losses on disposition of
rental property, net		268,109		58,186
Gain on sale of investment in unconsolidated joint venture		903		-
Gain (loss) from extinguishment of debt, net		1,311		(10,289)
Net income		275,594		50,688
Noncontrolling interests in consolidated joint ventures		1,248		30
Noncontrolling interests in Operating Partnership		(27,680)		(4,883)
Redeemable noncontrolling interests		(4,667)		(2,799)
Net income available to common shareholders	$	244,495	$	43,036

Mack-Cali Realty, L.P.

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



		Three Months Ended
		March 31,
		2019		2018
Net operating income	$	39,527	$	44,088
Add (deduct):
Depreciation and amortization		(48,046)		(41,297)
Gain on change of control of interests		13,790		-
Realized gains (losses) and unrealized losses on disposition of
rental property, net		268,109		58,186
Gain on sale of investment in unconsolidated joint venture		903		-
Gain (loss) from extinguishment of debt, net		1,311		(10,289)
Net income		275,594		50,688
Noncontrolling interests in consolidated joint ventures		1,248		30
Redeemable noncontrolling interests		(4,667)		(2,799)
Net income available to common unitholders	$	272,175	$	47,919

Mack-Cali Realty LP [Member]