Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.22.2.2
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company operates in two business segments: (i) multifamily real estate and services and (ii) commercial and other real estate. The Company provides property management, leasing, acquisition, development, construction and tenant-related services for its commercial and other real estate and multifamily real estate portfolio. The Company’s multifamily 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, 2022 and 2021. The Company had no long lived assets in foreign locations as of September 30, 2022 and December 31, 2021. 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 multifamily real estate and services). All properties classified as discontinued operations have been excluded.
Selected results of operations for the three and nine months ended September 30, 2022 and 2021 and selected asset information as of September 30, 2022 and December 31, 2021 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
& Other Real Estate		 Multifamily
Real Estate & Services (d)		 Corporate
& Other (e)		 Total
Company
Total revenues:
Three months ended:
September 30, 2022 $ 31,462  $ 60,363  $ (469) $ 91,356 
September 30, 2021 37,418  45,182  (416) 82,184 
Nine months ended:
September 30, 2022 $ 110,473  $ 159,756  $ (1,414) $ 268,815 
September 30, 2021 115,010  122,778  (1,384) 236,404 
Total operating and interest expenses (a):
Three months ended:
September 30, 2022 $ 13,665  $ 31,117  $ 32,113  $ 76,895 
September 30, 2021 14,951  27,770  27,948  70,669 
Nine months ended:
September 30, 2022 $ 41,458  $ 82,124  $ 92,430  $ 216,012 
September 30, 2021 46,675  80,835  83,676  211,186 
Equity in earnings (loss) of unconsolidated joint ventures:
Three months ended:
September 30, 2022 $ —  $ (304) $ —  $ (304)
September 30, 2021 22  (1,746) —  (1,724)
Nine months ended:
September 30, 2022 $ —  $ 1,847  $ —  $ 1,847 
September 30, 2021 (111) (2,720) —  (2,831)
Net operating income (loss) (b):
Three months ended:
September 30, 2022 $ 17,797  $ 28,942  $ (32,582) $ 14,157 
September 30, 2021 22,489  15,666  (28,364) 9,791 
Nine months ended:
September 30, 2022 $ 69,015  $ 79,479  $ (93,844) $ 54,650 
September 30, 2021 68,224  39,223  (85,060) 22,387 
Total assets:
September 30, 2022 $ 875,794  $ 3,361,910  $ 18,388  $ 4,256,092 
December 31, 2021 1,216,717  3,294,226  16,375  4,527,318 
Total long-lived assets (c):
September 30, 2022 $ 809,474  $ 3,142,398  $ (1,531) $ 3,950,341 
December 31, 2021 1,087,198  3,098,492  (1,309) 4,184,381 
Total investments in unconsolidated joint ventures:
September 30, 2022 $ —  129,575  $ —  $ 129,575 
December 31, 2021 —  137,772  —  137,772 
(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 and unbilled rents receivable.
(d)Segment assets and operations were owned through a consolidated and variable interest entity commencing in February 2018, and which also include 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.
Veris Residential, Inc.
The following schedule reconciles net operating income to net income (loss) available to common shareholders (dollars in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2022 2021 2022 2021
Net operating income $ 14,157 $ 9,791 $ 54,650 $ 22,387
Add (deduct):
Depreciation and amortization (28,960) (28,950) (82,812) (85,226)
Property Impairments (84,509) —  (84,509) (6,041)
Land and other impairments, net (2,536) (3,401) (9,368) (11,333)
Realized gains (losses) and unrealized losses on disposition of rental property, net (5,100) (3,000) (3,264) 521
Gain on disposition of developable land — — 57,748 111
Gain on sale from unconsolidated joint ventures —  (1,886) —  (1,886)
Gain (loss) from extinguishment of debt, net —  — (6,418) (46,735)
Income (loss) from continuing operations (106,948) (27,446) (73,973) (128,202)
Discontinued operations
Income from discontinued operations 1,046 1,045 2,634 16,431
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net — 609 (4,440) 25,469
Total discontinued operations, net 1,046 1,654 (1,806) 41,900
Net income (loss) (105,902) (25,792) (75,779) (86,302)
Noncontrolling interests in consolidated joint ventures 726 1,137 2,484 3,670
Noncontrolling interests in Operating Partnership 10,420 2,962 8,356 13,084
Noncontrolling interest in discontinued operations (97) (150) 170 (3,809)
Redeemable noncontrolling interests (6,365) (6,471) (19,168) (19,413)
Net income (loss) available to common shareholders $ (101,218) $ (28,314) $ (83,937) $ (92,770)
Veris Residential, L.P.
The following schedule reconciles net operating income to net income (loss) available to common unitholders (dollars in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2022 2021 2022 2021
Net operating income $ 14,157 $ 9,791 $ 54,650 $ 22,387
Add (deduct):
Depreciation and amortization (28,960) (28,950) (82,812) (85,226)
Property Impairments (84,509) —  (84,509) (6,041)
Land and other impairments, net (2,536) (3,401) (9,368) (11,333)
Realized gains (losses) and unrealized losses on disposition of rental property, net (5,100) (3,000) (3,264) 521
Gain on disposition of developable land —  — 57,748  111
Gain on sale from unconsolidated joint ventures —  (1,886) —  (1,886)
Gain (loss) from extinguishment of debt, net —  — (6,418) (46,735)
Income (loss) from continuing operations (106,948) (27,446) (73,973) (128,202)
Discontinued operations
Income from discontinued operations 1,046 1,045 2,634 16,431
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net — 609 (4,440) 25,469
Total discontinued operations, net 1,046 1,654 (1,806) 41,900
Net income (loss) (105,902) (25,792) (75,779) (86,302)
Noncontrolling interests in consolidated joint ventures 726 1,137 2,484 3,670
Redeemable noncontrolling interests (6,365) (6,471) (19,168) (19,413)
Net income (loss) available to common unitholders $ (111,541) $ (31,126) $ (92,463) $ (102,045)