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

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables)

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables)

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summary Of Unconsolidated Joint Ventures

The following is a summary of the Company's unconsolidated joint ventures as of September 30, 2023 and December 31, 2022 (dollars in thousands):


									Property Debt
Entity / Property Name	Number of Apartment Units or Rentable SF		Company's Effective Ownership % (a)		Carrying Value				As of September 30, 2023				Interest Rate

					September 30, 2023		December 31, 2022		Balance		Maturity Date
Multifamily
Metropolitan and Lofts at 40 Park (b) (c)	189	units	25.00	%	$	682	$	1,747	$	60,767	(d)		(d)
RiverTrace at Port Imperial	316	units	22.50	%	4,703		5,114		82,000		11/10/26		3.21	%
Capstone at Port Imperial	360	units	40.00	%	21,688		23,234		135,000		12/22/24	SOFR+	1.2	%
Riverpark at Harrison	141	units	45.00	%	—		—		30,192		07/01/35		3.19	%
Station House	378	units	50.00	%	32,167		32,372		89,946		07/01/33		4.82	%
Urby at Harborside (e)	762	units	85.00	%	58,493		61,594		186,457		08/01/29		5.197	%
PI North - Land (b) (f)	829	potential units	20.00	%	1,678		1,678		—		—		—



Other (g)					419		419		—		—		—
Totals:					$	119,830	$	126,158	$	584,362

(a)Company's effective ownership % represents the Company's entitlement to residual distributions after payments of priority returns, where applicable.

(b)The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.

(c)Through the joint venture, the Company also owns a 25 percent interest in a 50,973 square feet retail building ("Shops at 40 Park") and a 50 percent interest in a 59-unit, five story multifamily rental property ("Lofts at 40 Park").

(d)Property debt balance consists of: (i) an interest only loan, collateralized by the Metropolitan at 40 Park, with a balance of $36,500, bears interest at SOFR +2.85 percent that subsequent to September 30, 2023 was extended to mature on October 10, 2024; (ii) an amortizable loan, collateralized by the Shops at 40 Park, with a balance of $6,067, with a fixed rate of 5.125%. On January 10, 2023, the loan was modified bearing interest at SOFR +2.00 percent and matures in January 2025; and (iii) an interest only loan, collateralized by the Lofts at 40 Park, with a balance of $18,200, which bears interest at SOFR +2.00 percent that subsequent to September 30, 2023 was extended to mature on February 1, 2024, requiring a $1 million principal repayment, of which our share was 50 percent.

(e)The Company owns an 85 percent interest with shared control over major decisions such as, approval of budgets, property financings and leasing guidelines. The Company had guaranteed $22 million of the principal outstanding debt. On February 1, 2023, the lender released the guarantor of all obligations under the Guaranty Agreement.

(f)The Company owns a 20 percent residual interest in undeveloped land parcel 6 and parcel I that can accommodate the development of 829 multifamily units.

(g)The Company owns other interests in various unconsolidated joint ventures, including interests in assets previously owned and interest in ventures whose businesses are related to its core operations. These ventures are not expected to significantly impact the Company's operations in the near term.

Summary Of Company's Equity In Earnings (Loss) Of Unconsolidated Joint Ventures

The following is a summary of the Company’s equity in earnings (loss) of unconsolidated joint ventures for the three and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
Entity / Property Name	2023		2022		2023		2022
Multifamily
Metropolitan and Lofts at 40 Park	$	(357)	$	(207)	$	(965)	$	(440)
RiverTrace at Port Imperial	125		101		407		248
Capstone at Port Imperial	38		(109)		(275)		(60)
Riverpark at Harrison	68		94		473		139
Station House	(198)		(160)		(205)		(615)
Urby at Harborside	615		(23)		3,588		2,745
PI North - Land	(80)		—		(176)		(173)
Liberty Landing	(1)		—		(4)		(10)
Other
Other	—		—		—		13

Company's equity in earnings of unconsolidated joint ventures (a)	$	210	$	(304)	$	2,843	$	1,847

(a)Amounts are net of amortization of basis differences of $154 for each of the three months ended September 30, 2023 and 2022 and $463 for each of the nine months ended September 30, 2023 and 2022.

Schedule of Equity Method Investment, Summarized Financial Information, Balance Sheet

The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2023 and December 31, 2022:


(dollars in thousands)	September 30, 2023		December 31, 2022
Assets:
Rental Property, net	$	731,601	$	745,210
Other assets	32,708		39,241
Total assets	$	764,309	$	784,451
Liabilities and partners'/members' capital:
Mortgages and loans payable	$	584,362	$	587,913
Other liabilities	9,680		15,545
Partners'/members' capital	170,267		180,993
Total liabilities and partners'/members' capital	$	764,309	$	784,451

Schedule of Equity Method Investment, Summarized Financial Information, Income Statement

The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the three and nine months ended September 30, 2023 and 2022, respectively (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total revenues	$	26,266	$	34,402	$	70,967	$	111,874
Operating and other expenses	(9,107)		(19,651)		(26,236)		(67,467)
Depreciation and amortization	(5,591)		(6,384)		(16,728)		(19,325)
Interest expense	(7,520)		(7,852)		(22,995)		(21,679)
Net income	$	4,048	$	515	$	5,008	$	3,403