Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.23.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTINGThe 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, 2023 and 2022. The Company had no long lived assets in foreign locations as of September 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 nine months ended September 30, 2023 and 2022 and selected asset information as of September 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:
September 30, 2023 $ 4,682  $ 66,202  $ 598  $ 71,482 
September 30, 2022 3,241  60,363  (469) 63,135 
Nine months ended:
September 30, 2023 $ 12,745  $ 192,625  $ 1,573  $ 206,943 
September 30, 2022 7,922  159,756  (1,414) 166,264 
Total operating and interest expenses (a):
Three months ended:
September 30, 2023 $ 3,513  $ 26,338  $ 78,877  $ 108,728 
September 30, 2022 614  31,117  28,795  60,526 
Nine months ended:
September 30, 2023 $ 8,104  $ 78,400  $ 155,738  $ 242,242 
September 30, 2022 5,612  82,125  82,727  170,464 
Equity in earnings (loss) of unconsolidated joint ventures:
Three months ended:
September 30, 2023 $ —  $ 210  $ —  $ 210 
September 30, 2022 —  (304) —  (304)
Nine months ended:
September 30, 2023 $ —  $ 2,843  $ —  $ 2,843 
September 30, 2022 —  1,847  —  1,847 
Net operating income (loss) (b):
Three months ended:
September 30, 2023 $ 1,169  $ 40,074  $ (78,279) $ (37,036)
September 30, 2022 2,627  28,942  (29,264) 2,305 
Nine months ended:
September 30, 2023 $ 4,641  $ 117,068  $ (154,165) $ (32,456)
September 30, 2022 2,310  79,478  (84,141) (2,353)
Total assets:
September 30, 2023 $ 164,956  $ 3,146,961  $ 17,973  $ 3,329,890 
December 31, 2022 597,459  3,302,188  21,121  3,920,768 
Total long-lived assets (c):
September 30, 2023 $ 153,828  $ 2,952,451  $ (1,715) $ 3,104,564 
December 31, 2022 547,923  3,101,286  (1,330) 3,647,879 
Total investments in unconsolidated joint ventures:
September 30, 2023 $ —  119,830  $ —  $ 119,830 
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
September 30,		 Nine Months Ended
September 30,
2023 2022 2023 2022
Net operating (loss) income $ (37,036) $ 2,305 $ (32,456) $ (2,353)
Add (deduct):
Depreciation and amortization (23,212) (22,359) (70,543) (61,815)
Land and other impairments, net —  (2,535) (3,396) (9,367)
(Loss) gain on disposition of developable land — — (23) 57,747
Loss from extinguishment of debt, net (1,046) — (3,702) (129)
Other income, net (57) — 2,794  — 
Loss from continuing operations before income tax expense (61,351) (22,589) (107,326) (15,917)
Provision for income taxes (293) —  (293) — 
Loss from continuing operations after income tax expense (61,644) (22,589) (107,619) (15,917)
Discontinued operations
Income (loss) from discontinued operations 971 (78,213) 3,290  (52,158)
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net 423 (5,100) (2,286) (7,704)
Total discontinued operations, net 1,394 (83,313) 1,004 (59,862)
Net loss (60,250) (105,902) (106,615) (75,779)
Noncontrolling interests in consolidated joint ventures 592 726 1,815 2,484
Noncontrolling interests in Operating Partnership 5,322 2,613 10,016 2,929
Noncontrolling interest in discontinued operations (121) 7,710  (97) 5,597
Redeemable noncontrolling interests (350) (6,365) (7,333) (19,168)
Net loss available to common shareholders $ (54,807) $ (101,218) $ (102,214) $ (83,937)
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,
2023 2022 2023 2022
Net operating (loss) income $ (37,036) $ 2,305 $ (32,456) $ (2,353)
Add (deduct):
Depreciation and amortization (23,212) (22,359) (70,543) (61,815)
Land and other impairments, net —  (2,535) (3,396) (9,367)
(Loss) gain on disposition of developable land —  — (23) 57,747
Loss from extinguishment of debt, net (1,046) — (3,702) (129)
Other income, net (57) — 2,794  —
Loss from continuing operations before income tax expense (61,351) (22,589) (107,326) (15,917)
Provision for income taxes (293) —  (293) — 
Loss from continuing operations after income tax expense (61,644) (22,589) (107,619) (15,917)
Discontinued operations
Income (loss) from discontinued operations 971 (78,213) 3,290 (52,158)
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net 423 (5,100) (2,286) (7,704)
Total discontinued operations, net 1,394 (83,313) 1,004 (59,862)
Net loss (60,250) (105,902) (106,615) (75,779)
Noncontrolling interests in consolidated joint ventures 592 726 1,815 2,484
Redeemable noncontrolling interests (350) (6,365) (7,333) (19,168)
Net loss available to common unitholders $ (60,008) $ (111,541) $ (112,133) $ (92,463)