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

Annual report pursuant to Section 13 and 15(d)

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

12 Months Ended

Dec. 31, 2024

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

The Company has mortgages, loans payable and other obligations which primarily consist of various loans collateralized by certain of the Company’s rental properties, land and development projects. As of December 31, 2024, 12 of the Company’s properties, with a total carrying value of approximately $1.8 billion are encumbered by the Company’s mortgages and loans payable. Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only. The Company was in compliance with its debt covenants under its mortgages and loans payable as of December 31, 2024.

A summary of the Company’s mortgages, loans payable and other obligations as of December 31, 2024 and 2023 is as follows (dollars in thousands):


Property Name	Lender		Effective Rate (a)		December 31, 2024		December 31, 2023		Maturity

Signature Place (b)	Nationwide Life Insurance Company		3.74	%	—		43,000		08/01/24
Liberty Towers (c)	American General Life Insurance Company		3.37	%	—		265,000		10/01/24
Portside 2 at East Pier (d)	New York Life Insurance Company		4.56	%	95,427		97,000		03/10/26
BLVD 425	New York Life Insurance Company		4.17	%	131,000		131,000		08/10/26
BLVD 401	New York Life Insurance Company		4.29	%	115,515		117,000		08/10/26
Portside at East Pier (e)	KKR	SOFR+	2.75	%	56,500		56,500		09/07/26
The Upton (f)	Bank of New York Mellon	SOFR+	1.58	%	75,000		75,000		10/27/26
145 Front at City Square (g)	US Bank	SOFR+	1.84	%	—		63,000		12/10/26
RiverHouse 9 at Port Imperial (h)	JP Morgan	SOFR+	1.41	%	110,000		110,000		06/21/27
Quarry Place at Tuckahoe	Natixis Real Estate Capital LLC		4.48	%	41,000		41,000		08/05/27
BLVD 475	The Northwestern Mutual Life Insurance Co.		2.91	%	164,712		165,000		11/10/27
Haus25	Freddie Mac		6.04	%	343,061		343,061		09/01/28
RiverHouse 11 at Port Imperial	The Northwestern Mutual Life Insurance Co.		4.52	%	100,000		100,000		01/10/29
Soho Lofts (i)	Flagstar Bank		3.77	%	—		158,777		07/01/29
Port Imperial South 4/5 Garage	American General Life & A/G PC		4.85	%	31,098		31,645		12/01/29
The Emery at Overlook Ridge (j)	Flagstar Bank		3.21	%	70,653		72,000		01/01/31

Principal balance outstanding					1,333,966		1,868,983
Unamortized deferred financing costs					(10,492)		(15,086)

Total mortgages, loans payable and other obligations, net					$	1,323,474	$	1,853,897

(a)Reflects effective rate of debt, including deferred financing costs, comprised of debt initiation costs, and other transaction costs, as applicable.

(b)On August 1, 2024 the Company paid the outstanding loan amount in full.

(c)On September 30, 2024, the Company prepaid the outstanding loan amount in full.

(d)On June 11, 2024, the lender terminated the Company's payment guarantee of 10 percent of the outstanding principal.

(e)On August 10, 2023, the Company repaid the Freddie Mac fixed rate loan at maturity. The current mortgage is hedged with an interest-rate cap with a strike rate of 3.5%, expiring in September 2026.

(f)As of December 31, 2024, this mortgage is hedged with an interest-rate cap with a strike rate of 3.5%, expiring November 2026.

(g)On May 22, 2024, the Company prepaid the outstanding loan amount in full. The interest-rate cap with a strike rate of 4.0% matured on June 30, 2024.

(h)As of December 31, 2024, this mortgage is hedged with an interest-rate cap with a strike rate of 3.5%, expiring in July 2026.

(i)On June 28, 2024, the Company prepaid the outstanding loan amount in full.

(j)Effective rate reflects the fixed rate period, which ends on January 1, 2026. After that period ends, the Company must make a one-time interest rate election of either: (a) the floating-rate option, the sum of the highest prime rate as published in the New York Times on each applicable Rate Change Date plus 2.75% annually or (b) the fixed-rate option, the sum of the Five Year Fixed Rate Advance of the Federal Home Loan Bank of New York in effects as of the first business day of the month which is three months prior to the Rate Change Date plus 3.00% annually.

SCHEDULED PRINCIPAL PAYMENTS

Scheduled principal payments for the Company’s mortgages, loans payable and other obligations, including Term Loan and Revolving Credit Facility, as of December 31, 2024 are as follows (dollars in thousands):


Period	Scheduled Amortization		Principal Maturities		Total
2025	$	9,419	$	—	$	9,419
2026	7,879		467,904		475,783
2027	5,326		657,318		662,644
2028	2,396		343,061		345,457
2029	2,289		127,792		130,081
Thereafter	1,770		60,812		62,582
Sub-total	29,079		1,656,887		1,685,966
Unamortized deferred financing costs (a)	(13,653)		—		(13,653)

Totals	$	15,426	$	1,656,887	$	1,672,313

(a) Excludes $4.7 million of unamortized deferred financing costs recorded in Deferred charges and other assets, net, pertaining to the Company's Revolving Credit Facility as of December 31, 2024.

CASH PAID FOR INTEREST AND INTEREST CAPITALIZED

Cash paid for interest for the years ended December 31, 2024, 2023 and 2022 was $78.5 million, $81.6 million and $80.3 million, (of which zero, $1.4 million and $13.3 million pertained to properties classified as discontinued operations), respectively. No interest was capitalized by the Company for the years ended December 31, 2024 and 2023, and $12.2 million was capitalized for the year ended December 31, 2022.

SUMMARY OF INDEBTEDNESS


(dollars in thousands)	December 31, 2024				December 31, 2023
	Balance		Weighted Average Interest Rate		Balance		Weighted Average Interest Rate
Fixed Rate & Hedged Debt, including Term Loan and Revolving Credit Facility (a)	$	1,670,313	5.05	%	$	1,853,897	4.34	%
Unhedged portion of Revolving Credit Facility	2,000		7.08	%	—		—	%

Totals/Weighted Average, net of unamortized deferred financing costs (b):	$	1,672,313	5.05	%	$	1,853,897	4.34	%

(a) As of December 31, 2024 and 2023, includes debt with interest rate caps outstanding with a notional amount of $591.5 million and $304.5 million, respectively.

(b) Excludes $4.7 million of unamortized deferred financing costs recorded in Deferred charges and other assets, net, pertaining to the Company's Revolving Credit Facility as of December 31, 2024.