Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.23.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2023
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 six months ended June 30, 2023 and 2022. The Company had no long lived assets in foreign locations as of June 30, 2023 and December 31, 2022. 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 six months ended June 30, 2023 and 2022 and selected asset information as of June 30, 2023 and December 31, 2022 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:
June 30, 2023 $ 4,525  $ 64,144  $ 60  $ 68,729 
June 30, 2022 1,379  52,876  (442) 53,813 
Six months ended:
June 30, 2023 $ 8,290  $ 126,422  $ 976  $ 135,688 
June 30, 2022 4,865  99,393  (944) 103,314 
Total operating and interest expenses (a):
Three months ended:
June 30, 2023 $ 3,050  $ 23,710  $ 45,968  $ 72,728 
June 30, 2022 672  26,221  26,357  53,250 
Six months ended:
June 30, 2023 $ 4,697  $ 52,061  $ 77,008  $ 133,766 
June 30, 2022 1,372  51,008  57,637  110,017 
Equity in earnings (loss) of unconsolidated joint ventures:
Three months ended:
June 30, 2023 $ —  $ 2,700  $ —  $ 2,700 
June 30, 2022 —  2,638  —  2,638 
Six months ended:
June 30, 2023 $ —  $ 2,633  $ —  $ 2,633 
June 30, 2022 —  2,151  —  2,151 
Net operating income (loss) (b):
Three months ended:
June 30, 2023 $ 1,475  $ 43,134  $ (45,908) $ (1,299)
June 30, 2022 707  29,293  (26,799) 3,201 
Six months ended:
June 30, 2023 $ 3,593  $ 76,994  $ (76,032) $ 4,555 
June 30, 2022 3,493  50,536  (58,581) (4,552)
Total assets:
June 30, 2023 $ 200,488  $ 3,192,520  $ 379,825  $ 3,772,833 
December 31, 2022 597,459  3,302,188  21,121  3,920,768 
Total long-lived assets (c):
June 30, 2023 $ 194,879  $ 2,969,009  $ (1,503) $ 3,162,385 
December 31, 2022 547,923  3,101,286  (1,330) 3,647,879 
Total investments in unconsolidated joint ventures:
June 30, 2023 $ —  122,435  $ —  $ 122,435 
December 31, 2022 —  126,158  —  126,158 
(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.
(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
June 30,		 Six Months Ended
June 30,
2023 2022 2023 2022
Net operating (loss) income $ (1,299) $ 3,201 $ 4,555 $ (4,552)
Add (deduct):
Depreciation and amortization (23,684) (21,015) (47,331) (39,456)
Land and other impairments, net —  (3,900) (3,396) (6,832)
(Loss) Gain on disposition of developable land — 55,125 (22) 57,748
Gain (loss) from extinguishment of debt, net (2,657) (129) (2,657) (129)
Other income, net 853 — 2,851  — 
(Loss) income from continuing operations (26,787) 33,282  (46,000) 6,779 
Discontinued operations
(Loss) income from discontinued operations 140 5,808 2,344  25,948 
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net (3,488) (4,440) (2,709) (2,604)
Total discontinued operations, net (3,348) 1,368 (365) 23,344
Net (loss) income (30,135) 34,650  (46,365) 30,123 
Noncontrolling interests in consolidated joint ventures 636 784 1,223 1,758
Noncontrolling interests in Operating Partnership 2,384 (2,568) 4,696 305
Noncontrolling interest in discontinued operations 298 (127) 22 (2,102)
Redeemable noncontrolling interests (617) (6,366) (6,983) (12,803)
Net (loss) income available to common shareholders $ (27,434) $ 26,373 $ (47,407) $ 17,281
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
June 30,		 Six Months Ended
June 30,
2023 2022 2023 2022
Net operating (loss) income $ (1,299) $ 3,201 $ 4,555 $ (4,552)
Add (deduct):
Depreciation and amortization (23,684) (21,015) (47,331) (39,456)
Land and other impairments, net —  (3,900) (3,396) (6,832)
Gain on disposition of developable land —  55,125 (22) 57,748
Gain (loss) from extinguishment of debt, net (2,657) (129) (2,657) (129)
Other income, net 853  —  2,851  — 
(Loss) income from continuing operations (26,787) 33,282  (46,000) 6,779 
Discontinued operations
(Loss) income from discontinued operations 140 5,808 2,344 25,948
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net (3,488) (4,440) (2,709) (2,604)
Total discontinued operations, net (3,348) 1,368 (365) 23,344
Net (loss) income (30,135) 34,650 (46,365) 30,123
Noncontrolling interests in consolidated joint ventures 636 784 1,223 1,758
Redeemable noncontrolling interests (617) (6,366) (6,983) (12,803)
Net (loss) income available to common unitholders $ (30,116) $ 29,068 $ (52,125) $ 19,078