Veris Residential, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

INVESTMENTS IN RENTAL PROPERTIES

INVESTMENTS IN RENTAL PROPERTIES

6 Months Ended

Jun. 30, 2025

Dispositions of Rental Properties and Developable Land

The Company disposed of the following developable land holding during the six months ended June 30, 2025 (dollars in thousands):


Disposition Date	Property	Location	Net Sales Proceeds		Net Carrying Value			Gain (loss) on disposition of developable land
01/24/25	65 Livingston	Roseland, NJ	$	7,139	$	7,295	(a)	$	(156)
04/03/25	Wall Land	Wall Township, NJ	30,152		4,116			26,036
04/29/25	1 Water Street	White Plains, NY	15,563		5,033			10,530


Totals			$	52,854	$	16,444		$	36,410

(a) Carrying value reflects previously recorded impairment charges of $2.6 million.

The Company disposed of the following rental properties during the six months ended June 30, 2024 (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) and unrealized gains (losses) on disposition of rental property and impairments, net
03/20/24	Harborside 5	Jersey City, New Jersey	1	977,225	Office	$	81,515	$	81,228	$	287
	Others (a)									1,261
Totals						$	81,515	$	81,228	$	1,548

(a) Others represent resolution of estimated accrued expenses from various previously sold rental properties.

The Company disposed of the following developable land holding during the six months ended June 30, 2024 (dollars in thousands):


Disposition Date	Property	Location	Net Sales Proceeds		Net Carrying Value			Gain (loss) on disposition of developable land
01/03/24	2 Campus	Parsippany-Troy Hills, New Jersey	$	10,155	$	9,371		$	784
04/16/24	107 Morgan	Jersey City, New Jersey	50,630		50,929		(a)	(299)
04/30/24	6 Becker Farm / 85 Livingston	Roseland, NJ	27,985		16,955			11,030
Totals			$	88,770	$	77,255		$	11,515

(a) Carrying value reflects previously recorded impairment charges of $10.5 million.

Dispositions of Unconsolidated Joint Ventures

In April 2025, the Company sold its interest in The Metropolitan at 40 Park multifamily rental property in Morristown, New Jersey for $0.5 million. The Company recorded a gain on sale for its interest of approximately $0.2 million during the three and six months ended June 30, 2025.

In April 2025, the Company sold its interest in the PI North developable land parcels in West New York, New Jersey for $6.6 million. The Company recorded a gain on sale for its interest of approximately $4.9 million during the three and six months ended June 30, 2025.

In January 2024, the Company's joint venture sold the Lofts at 40 Park multifamily rental property for $30.3 million and

the Company recorded a gain on the sale for its interest of approximately $7.1 million during the six months ended

June 30, 2024.

Acquisition of Controlling Interest in Unconsolidated Joint Venture

On April 21, 2025, the Company acquired the remaining 15% controlling interest in the joint venture which owns Sable (previously referred to as “Urby at Harborside”) for cash consideration of $38.5 million (“Sable JV Interest Acquisition”). Concurrent with the acquisition, the Company assumed the $181.8 million property-level mortgage. The acquisition was funded from the proceeds of sales previously completed.

Prior to the acquisition of the controlling interest of Sable, the Company accounted for its investment in that joint venture as an equity method investment under the voting interest model within Investments in unconsolidated joint ventures on our Consolidated Balance Sheets. This transaction was accounted for as an asset acquisition under, ASC 805-50, Business Combinations. As a result of acquiring full ownership, the Company consolidated Sable onto the Consolidated Balance Sheets at the sum of the historical cost basis for the existing 85% interest and at the purchase price for the newly acquired 15% interest.

The gross purchase price of the newly acquired 15% controlling interest, inclusive of transaction costs of $2.1 million, was allocated by major categories of assets acquired and liabilities assumed using relative fair value. The consolidated balances for Sable as of the acquisition date were as follows: $267.3 million of Net investment in rental property, $2.2 million of acquired in-place leases and other intangibles presented within Deferred charges and other assets, net, and $181.0 million of Mortgages, loans payable and other obligations, net.

Real Estate Held for Sale and Related Liabilities

As of June 30, 2025, the Company had classified four multifamily properties, 145 Front Street at City Square, The James, Signature Place, and Quarry Place at Tuckahoe, and the related mortgage loan for Quarry Place at Tuckahoe, as held for sale. The properties are located in Worcester, MA, Park Ridge, NJ, Morris Plains, NJ and Eastchester, NY, respectively. In July 2025, 145 Front Street at City Square and Signature Place were sold for gross proceeds of $207.2 million.

As of December 31, 2024, the Company had classified a developable land parcel, located in Roseland, New Jersey as held for sale, which was sold in January 2025.

The following table summarizes real estate and liabilities held for sale, net as of June 30, 2025 and December 31, 2024:


(dollars in thousands)	June 30, 2025		December 31, 2024
Land	$	22,941	$	9,910
Building & Other	328,145		—
Less: Accumulated depreciation	(55,634)		—
Less: Cumulative unrealized losses on property held for sale	(6,877)		(2,619)
Real estate held for sale, net	$	288,575	$	7,291

Liabilities held for sale, net	$	40,862	$	—

Discontinued Operations

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. See Note 7: Discontinued Operations.