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

Quarterly report pursuant to Section 13 or 15(d)

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS

6 Months Ended

Jun. 30, 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. As of June 30, 2024, 14 of the Company’s properties, with a total carrying value of approximately $2.2 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 June 30, 2024.

A summary of the Company’s mortgages, loans payable and other obligations as of June 30, 2024 and December 31, 2023 is as follows (dollars in thousands):


Property/Project Name	Lender		Effective Rate (a)		June 30, 2024		December 31, 2023		Maturity

Signature Place	Nationwide Life Insurance Company		3.74	%	$	43,000	$	43,000	08/01/24
Liberty Towers	American General Life Insurance Company		3.37	%	265,000		265,000		10/01/24
Portside 2 at East Pier (b)	New York Life Insurance Company		4.56	%	96,222		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	%	116,510		117,000		08/10/26

Portside at East Pier (c)	KKR	SOFR+	2.75	%	56,500		56,500		09/07/26
The Upton (d)	Bank of New York Mellon	SOFR+	1.58	%	75,000		75,000		10/27/26
145 Front at City Square (e)	US Bank	SOFR+	1.84	%	—		63,000		12/10/26
RiverHouse 9 at Port Imperial (f)	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	%	165,000		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 (g)	Flagstar Bank		3.77	%	—		158,777		07/01/29
Port Imperial South 4/5 Garage	American General Life & A/G PC		4.85	%	31,375		31,645		12/01/29
The Emery at Overlook Ridge (h)	Flagstar Bank		3.21	%	71,392		72,000		01/01/31

Principal balance outstanding					1,645,060		1,868,983
Unamortized deferred financing costs					(12,295)		(15,086)

Total mortgages, loans payable and other obligations, net					$	1,632,765	$	1,853,897

(a)Reflects effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.

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

(c)On August 10, 2023, the Company refinanced the Freddie Mac fixed rate loan. Additionally, a 3-year cap at a strike rate of 3.5% was placed, expiring in September 2026.

(d)As of June 30, 2024, an interest-rate cap agreement was in place for this mortgage loan with a strike rate of 1.0%, expiring in October 2024.

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

(f)As of June 30, 2024, an interest-rate cap agreement was in place for this mortgage loan, with a strike rate of 3.0%, expiring July 1, 2024. Subsequent to quarter end, the Company entered into an interest-rate cap agreement to hedge this mortgage, with a strike rate of 3.5%, expiring in July 2026.

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

(h)Effective rate reflects the fixed rate period, which ends on January 1, 2026. After that period ends, the Company must make a one-time election of how to compute the interest rate for this loan: (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.

Cash Paid for Interest and Interest Capitalized

Cash paid for interest for the three months ended June 30, 2024 and 2023 was $19.9 million and $19.6 million (of which zero pertained to properties classified as discontinued operations), respectively. Cash paid for interest for the six months

ended June 30, 2024 and 2023 was $39.3 million and $40.1 million (of which zero and $1.1 million pertained to properties classified as discontinued operations), respectively. No interest was capitalized by the Company for the three or six months ended June 30, 2024 and 2023.

Summary of Indebtedness


(dollars in thousands)	June 30, 2024				December 31, 2023
	Balance		Weighted Average Interest Rate		Balance		Weighted Average Interest Rate
Fixed Rate & Hedged Debt, including Term Loan (a)	$	1,686,954	4.43	%	$	1,853,897	4.34	%


Totals/Weighted Average, net of unamortized deferred financing costs:	$	1,686,954	4.43	%	$	1,853,897	4.34	%

(a) As of June 30, 2024 and December 31, 2023, includes debt with interest rate caps outstanding with a notional amount of $304.0 million and $304.5 million, respectively. Subsequent to the quarter ended June 30, 2024, the Company placed an interest rate cap on the 2024 Term Loan with a notional amount of $55 million. The cap has a strike rate of 3.50% and expires in July 2026.