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

Quarterly report pursuant to Section 13 or 15(d)

RECENT TRANSACTIONS

RECENT TRANSACTIONS

3 Months Ended

Mar. 31, 2023

Real Estate Held for Sale/Discontinued Operations/Dispositions

The Company has discontinued operations related to its former New Jersey office and hotel portfolio (collectively, the “Office Portfolio”) which represented a strategic shift in the Company’s operations beginning in 2019. In the first quarter of 2023, the Company identified six office properties (including a property not in service) and two hotels as discontinued operations. See Note 7: Discontinued Operations.

As of March 31, 2023, the Company identified as held for sale several office properties totaling approximately 2.2 million square feet and several developable land parcels, which are located in Jersey City, Holmdel and Parsippany, New Jersey. As of March 31, 2023, a land parcel that was previously identified as held for sale was reclassified as held and used. As a result of recent sales contracts in place, the Company determined that the carrying value of three land parcels held for sale were not expected to be recovered from estimated net sales proceeds, and accordingly, recorded land and other impairments of $3.4 million during the three months ended March 31, 2023.

The total estimated sales proceeds of real estate held for sale, net of expected selling costs, are expected to be approximately $456.5 million.

In April 2023, the Company completed the sale of three office properties totaling approximately 1.9 million square feet for a gross sales price of $420 million.

The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands) as of March 31, 2023:


	Office Portfolio		Other Assets Held for Sale		Total
Land	$	16,232	$	59,463	$	75,695
Building & Other	553,740		8,204		561,944
Less: Accumulated depreciation	(235,700)		—		(235,700)
Less: Cumulative unrealized losses on property held for sale	(4,440)		—		(4,440)
Real estate held for sale, net	$	329,832	$	67,667	$	397,499


Other assets and liabilities	Office Portfolio		Other Assets Held for Sale		Total
Unbilled rents receivable, net (a)	$	32,491	$	—	$	32,491
Deferred charges, net (a)	27,900		—		27,900


Accounts payable, accrued exp & other liability	(7,786)		(41)		(7,827)
Unearned rents/deferred rental income (a)	(6,624)		—		(6,624)

(a)Expected to be removed with the completion of the sales.

The Company disposed of the following rental property during the three months ended March 31, 2023 (dollars in thousands):


Disposition Date	Property	Location	# of Bldgs.	Rentable Square Feet	Property Type	Net Sales Proceeds			Net Carrying Value		Discontinued Operations Realized Gains (Losses)/ Unrealized Losses, net
02/10/23	XS Hotels	Weehawken, New Jersey	2	—	Hotel	$	93,358	(a)	$	92,578	$	780


Totals			2	—		$	93,358		$	92,578	$	780

(a)Included the proceeds of $84 million used to repay the mortgage loan encumbering the property at closing.

The Company disposed of the following developable land holding during the three months ended March 31, 2023 (dollars in thousands):


Disposition Date	Property	Location	Net Sales Proceeds			Net Carrying Value		Realized Gains (Losses)/ Unrealized Losses, net
03/17/23	Columbia-Honeywell	Morris Township, New Jersey	$	8,214	(a)	$	8,236	$	(22)




Totals			$	8,214		$	8,236	$	(22)

(a) Included deposits totaling $1.1 million received by the Company in December 2022 and January 2023.