Veris Residential, Inc. Reports Second Quarter 2025 Results
JERSEY CITY, N.J., July 23, 2025 /PRNewswire/ -- Veris Residential, Inc. (NYSE:VRE) (the "Company"), a forward-thinking, Northeast-focused, Class A multifamily REIT, today reported results for the second quarter 2025.
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net Income (loss) per Diluted Share
$0.12
$0.03
$0.00
$(0.01)
Core FFO per Diluted Share
$0.17
$0.18
$0.33
$0.32
Core AFFO per Diluted Share
$0.19
$0.21
$0.36
$0.39
Dividend per Diluted Share
$0.08
$0.06
$0.16
$0.11
STRATEGIC PROGRESS
$448 million of non-strategic asset sales completed or under contract year to date. On track to achieve Net Debt-to-EBITDA of around 10.0x by year-end 2025 and below 9.0x by year-end 2026. - $268 million in closed sales, including Signature Place and 145 Front Street. - $180 million in sales under binding contract, including two multifamily assets.
Secured amendment to Revolver and Term Loan agreement, including a leverage-based pricing grid, realizing an immediate 55-basis-point interest rate reduction.
CONTINUED OPERATIONAL STRENGTH
Year-over-year Same Store Blended Net Rental Growth Rate of 4.7% for the quarter and 3.5% year to date.
Year-over-year Same Store NOI growth of 5.6% for the quarter and 4.4% year to date, further improving operating margin to 67.4% year to date.
Same Store occupancy of 93.9% (95.5% excluding Liberty Towers).
Raised 2025 guidance to reflect significant progress in corporate plan and continued operational strength.
"We have made significant progress on our corporate initiatives both operationally and strategically, enabling us to raise guidance. We continued to see strength in our operations, and with nearly $450 million of sales already completed or under binding contract, we are well ahead of schedule and on track to realize our near-term leverage targets, including Net Debt-to-EBITDA below 9x next year," said Mahbod Nia, Chief Executive Officer of Veris Residential.
"We are proud to have made meaningful progress on our strategic plan to continue optimizing our balance sheet. With the amendment to our credit facility, we secured an immediate reduction in our corporate borrowing costs of 55 basis points, with the potential to realize additional interest savings as we seek to further de-lever over time. We remain focused on executing our multi-pronged optimization strategy as we seek to continue enhancing value for all Veris Residential stakeholders."
SAME STORE PORTFOLIO PERFORMANCE
The following table uses the current Same Store pool for both the first and second quarter of 2025, as it is consistently reported throughout the Supplemental package. The actual Same Store pool on March 31 was 7,621 units, which included units from The Metropolitan at 40 Park.
June 30, 2025
March 31, 2025
Change
Same Store Units
7,491
7,491
— %
Same Store Occupancy
93.9 %
94.0 %
(0.1) %
Same Store Blended Rental Growth Rate (Quarter)
4.7 %
2.3 %
2.4 %
Average Rent per Home
$4,085
$4,023
1.5 %
The following table shows Same Store performance:
($ in 000s)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
%
2025
2024
%
Total Property Revenue
$75,999
$74,160
2.5 %
$151,378
$147,768
2.4 %
Controllable Expenses
12,799
13,286
(3.7) %
25,736
25,775
(0.2) %
Non-Controllable Expenses
11,891
12,283
(3.2) %
23,651
24,280
(2.6) %
Total Property Expenses
24,690
25,569
(3.4) %
49,387
50,055
(1.3) %
Same Store NOI
$51,309
$48,591
5.6 %
$101,991
$97,713
4.4 %
TRANSACTION ACTIVITY
Year to date, the Company has closed $268 million of non-strategic asset sales, including two unconsolidated joint ventures and two wholly owned multifamily assets. Two additional multifamily assets, The James in New Jersey and Quarry Place in New York, are under binding contract for a further $180 million.
Name ($ in 000s)
Date
Location
GAV
65 Livingston
1/24/2025
Roseland, NJ
$7,300
Wall Land
4/3/2025
Wall Township, NJ
31,000
PI - North Building (two parcels) and Metropolitan at 40 Park
4/21/2025
West New York, NJ and Morristown, NJ
7,100
1 Water
4/29/2025
White Plains, NY
15,500
Signature Place
7/9/2025
Morris Plains, NJ
85,000
145 Front Street
7/22/2025
Worcester, MA
122,200
Total Assets Sold in 2025-to-Date
$268,100
In April, the Company purchased its partner's interest in the Jersey City Urby for $38.5 million, eliminating the Company's largest remaining unconsolidated joint venture, rebranding the property to "Sable" and assuming management. The consolidation is expected to create over one million dollars in annualized synergies.
FINANCE AND LIQUIDITY
As of July 22, 2025, following the completion of the previously announced sales, the Company had liquidity of $181 million, a weighted average effective interest rate of 4.86% and a weighted average maturity of 2.6 years, with all of the Company's debt either hedged or fixed.
In July, subsequent to quarter end, the Company amended its $300 million Revolving Credit Facility ("Revolver") and $200 million delayed-draw Term Loan ("Term Loan" and collectively, the "Amended Facility"), as discussed in greater detail below. The Amended Facility, combined with completed and announced asset sales, allows the Company to reduce interest expense as it continues to de-lever over time.
Balance Sheet Metric ($ in 000s)
June 30, 2025
March 31, 2025
Weighted Average Interest Rate
5.08 %
4.95 %
Weighted Average Years to Maturity
2.6
3.1
TTM Interest Coverage Ratio
1.7x
1.7x
Net Debt
$1,795,320
$1,643,411
TTM Adjusted EBITDA (Normalized)
$159,162
$144,659
Net Debt-to-EBITDA (Normalized)
11.3x
11.4x
Note: Calculation of Net Debt-to-EBITDA ratio includes an adjusted EBITDA figure, normalizing the Trailing Twelve Month ("TTM") period for recent transactions. Please see the Supplemental Package for reconciliation.
AMENDED CREDIT FACILITY
Subsequent to quarter end, the Company announced the amendment of its $500 million credit facility established in April 2024. The Amended Facility package—comprising a $300 million Revolver and a $200 million delayed-draw Term Loan—introduces a leverage-based pricing grid for the Revolver, with spreads ranging from 1.20% to 1.75% over SOFR (inclusive of the 5-basis-point spread reduction associated with meeting certain KPIs) and reduces the required number of secured properties in the collateral pool from five to two. At closing, the Company's total leverage ratio as defined by the Amended Facility was between 50% and 55%, resulting in a borrowing rate on the Revolver of SOFR + 1.50%, representing a 55-basis-point reduction from the prior rate. The Amended Facility matures in April 2027 and retains a one-year extension option on the Revolver.
At closing, the Company repaid $80 million of the Term Loan using proceeds from the sale of Signature Place. Subsequent to the amendment, the Company fully repaid the remaining balance of the Term Loan using proceeds from the sale of 145 Front Street.
DIVIDEND
The Company paid a dividend of $0.08 per share on July 10, 2025, for shareholders of record as of June 30, 2025.
GUIDANCE
The Company is raising its operational guidance for 2025 in accordance with the following table. The increased operational guidance reflects continued strength in rental growth and a higher degree of certainty around controllable expense projections.
Current Guidance
Initial Guidance
2025 Guidance Ranges
Low
High
Low
High
Same Store Revenue Growth
2.2 %
—
2.7 %
2.1 %
—
2.7 %
Same Store Expense Growth
2.4 %
—
2.8 %
2.6 %
—
3.0 %
Same Store NOI Growth
2.0 %
—
2.8 %
1.7 %
—
2.7 %
The Company is raising its 2025 Core FFO per share guidance range to $0.63 to $0.64. This reflects the accretive impacts of the consolidation of Sable and interest expense savings from debt repayment associated with recent sales and from reduced corporate borrowing costs.
Current Guidance
Initial Guidance
Core FFO per Share Guidance
Low
High
Low
High
Net Loss per Share
$(0.22)
—
$(0.21)
$(0.24)
—
$(0.22)
Depreciation per Share
$0.85
—
$0.85
$0.85
—
$0.85
Core FFO per Share
$0.63
—
$0.64
$0.61
—
$0.63
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for Thursday, July 24, 2025, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com.
The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential second quarter 2025 earnings conference call.
The conference call will be rebroadcast on Veris Residential, Inc.'s website at:http://investors.verisresidential.com beginning at 8:30 a.m. Eastern Time on Thursday, July 24, 2025.
A replay of the call will also be accessible Thursday, July 24, 2025, through Sunday, August 24, 2025, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13753249.
Copies of Veris Residential, Inc.'s second quarter 2025 Form 10-Q and second quarter 2025 Supplemental Operating and Financial Data are available on Veris Residential, Inc.'s website under Financial Results.
In addition, once filed, these items will be available upon request from:
Veris Residential, Inc. Investor Relations DepartmentHarborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
ABOUT THE COMPANY
Veris Residential, Inc. is a forward-thinking real estate investment trust (REIT) that primarily owns, operates, acquires and develops premier Class A multifamily properties in the Northeast. Our technology-enabled, vertically integrated operating platform delivers a contemporary living experience aligned with residents' preferences while positively impacting the communities we serve. We are guided by an experienced management team and Board of Directors, underpinned by leading corporate governance principles; a best-in-class approach to operations; and an inclusive culture based on meritocratic empowerment.
For additional information on Veris Residential, Inc. and our properties available for lease, please visit http://www.verisresidential.com/.
The information in this press release must be read in conjunction with, and is modified in its entirety by, the Annual Report on Form 10-K (the "10-K") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings, available at https://investors.verisresidential.com/financial-information.
We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations, and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we may not anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.
Investors
Media
Mackenzie Rice
Amanda Shpiner/Grace Cartwright
Director, Investor Relations
Gasthalter & Co.
Additional details in Company Information.
Consolidated Balance Sheet
(in thousands) (unaudited)
June 30, 2025
December 31, 2024
ASSETS
Rental property
Land and leasehold interests
$442,566
$458,946
Buildings and improvements
2,611,276
2,634,321
Tenant improvements
16,145
14,784
Furniture, fixtures and equipment
112,424
112,201
3,182,411
3,220,252
Less, accumulated depreciation and amortization
(475,073)
(432,531)
2,707,338
2,787,721
Real estate held for sale, net
288,575
7,291
Net investment in rental property
2,995,913
2,795,012
Cash and cash equivalents
11,438
7,251
Restricted cash
18,581
17,059
Investments in unconsolidated joint ventures
53,618
111,301
Unbilled rents receivable, net
3,252
2,253
Deferred charges and other assets, net
43,059
48,476
Accounts receivable
1,119
1,375
Total assets
$3,126,980
$2,982,727
LIABILITIES AND EQUITY
Revolving credit facility and term loans
324,513
348,839
Mortgages, loans payable and other obligations, net
1,459,964
1,323,474
Liabilities held for sale, net
40,862
—
Dividends and distributions payable
8,529
8,533
Accounts payable, accrued expenses and other liabilities
50,262
42,744
Rents received in advance and security deposits
13,185
11,512
Accrued interest payable
5,806
5,262
Total liabilities
1,903,121
1,740,364
Redeemable noncontrolling interests
9,294
9,294
Total Stockholders' Equity
1,086,095
1,099,391
Noncontrolling interests in subsidiaries:
Operating Partnership
100,183
102,588
Consolidated joint ventures
28,287
31,090
Total noncontrolling interests in subsidiaries
$128,470
$133,678
Total equity
$1,214,565
$1,233,069
Total liabilities and equity
$3,126,980
$2,982,727
Consolidated Statement of Operations
(In thousands, except per share amounts) (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
REVENUES
2025
2024
2025
2024
Revenue from leases
$69,348
$ 60,917
$131,313
$ 121,559
Management fees
766
871
1,484
1,793
Parking income
4,376
3,922
8,125
7,667
Other income
1,438
1,766
2,762
3,797
Total revenues
75,928
67,476
143,684
134,816
EXPENSES
Real estate taxes
10,105
9,502
19,317
18,679
Utilities
2,103
1,796
4,910
4,067
Operating services
12,887
12,628
23,880
25,198
Property management
4,088
4,366
8,473
9,608
General and administrative
9,605
8,975
19,673
20,063
Transaction related costs
1,570
890
1,878
1,406
Depreciation and amortization
22,471
20,316
43,724
40,433
Land and other impairments, net
12,467
—
15,667
—
Total expenses
75,296
58,473
137,522
119,454
OTHER (EXPENSE) INCOME
Interest expense
(24,604)
(21,676)
(47,564)
(43,176)
Interest and other investment income
70
1,536
95
2,074
Equity in earnings (losses) of unconsolidated joint ventures
526
2,933
4,368
3,187
Realized gains (losses) and unrealized gains (losses) on disposition of rental property, net
(6,877)
—
(6,877)
—
Gain (loss) on disposition of developable land
36,566
10,731
36,410
11,515
Gain (loss) on sale of unconsolidated joint venture interests
5,122
—
5,122
7,100
Gain (loss) from extinguishment of debt, net
—
(785)
—
(785)
Other income (expense), net
528
(250)
423
5
Total other (expense) income, net
11,331
(7,511)
(8,023)
(20,080)
Income (loss) from continuing operations before income tax expense
11,963
1,492
(1,861)
(4,718)
Provision for income taxes
(93)
(176)
(135)
(235)
Income (loss) from continuing operations after income tax expense
11,870
1,316
(1,996)
(4,953)
Discontinued operations:
Income (loss) from discontinued operations
(27)
1,419
109
1,671
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net
—
—
—
1,548
Total discontinued operations, net
(27)
1,419
109
3,219
Net income (loss)
11,843
2,735
(1,887)
(1,734)
Noncontrolling interests in consolidated joint ventures
149
543
2,274
1,038
Noncontrolling interests in Operating Partnership of income (loss) from continuing operations
(1,009)
(153)
(11)
370
Noncontrolling interests in Operating Partnership in discontinued operations
2
(122)
(9)
(277)
Redeemable noncontrolling interests
(81)
(81)
(162)
(378)
Net income (loss) available to common shareholders
$10,904
$2,922
$205
$(981)
Basic earnings per common share:
Net income (loss) available to common shareholders
$0.12
$0.03
$0.00
$(0.01)
Diluted earnings per common share:
Net income (loss) available to common shareholders
$0.12
$0.03
$0.00
$(0.01)
Basic weighted average shares outstanding
93,392
92,663
93,227
92,469
Diluted weighted average shares outstanding1
102,259
101,952
102,164
101,160
See Reconciliation to Net Income (Loss) to NOI for more details.
FFO, Core FFO and Core AFFO
(in thousands, except per share/unit amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net income (loss) available to common shareholders
$ 10,904
$ 2,922
$ 205
$ (981)
Add/(Deduct):
Noncontrolling interests in Operating Partnership
1,009
153
11
(370)
Noncontrolling interests in discontinued operations
(2)
122
9
277
Real estate-related depreciation and amortization on continuing operations2
23,231
22,514
46,676
45,146
Real estate-related depreciation and amortization on discontinued operations
—
—
—
668
Continuing operations: (Gain) loss on sale from unconsolidated joint ventures
(5,122)
—
(5,122)
(7,100)
Continuing operations: Realized and unrealized (gains) losses on disposition of rental property
6,877
—
6,877
—
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net
—
—
—
(1,548)
FFO3
$ 36,897
$ 25,711
$ 48,656
$ 36,092
Add/(Deduct):
(Gain) loss from extinguishment of debt, net
—
785
—
785
Land and other impairments4
12,467
—
14,067
—
(Gain) loss on disposition of developable land
(36,566)
(10,731)
(36,410)
(11,515)
Severance/Compensation related costs (G&A)5
1,352
236
1,520
1,873
Severance/Compensation related costs (Property Management)6
889
838
1,399
2,364
Amortization of derivative premium7
878
886
1,962
1,790
Derivative mark to market adjustment
270
—
525
—
Transaction related costs
1,570
890
1,878
1,406
Core FFO
$ 17,757
$ 18,615
$ 33,597
$ 32,795
Add/(Deduct):
Straight-line rent adjustments8
(605)
(367)
(751)
(342)
Amortization of market lease intangibles, net
(3)
(9)
(6)
(16)
Amortization of lease inducements
—
—
—
7
Amortization of debt discounts (premiums)
9
—
9
—
Amortization of stock compensation
2,813
3,247
6,179
6,974
Non-real estate depreciation and amortization
139
219
289
429
Amortization of deferred financing costs
1,777
1,569
3,484
2,811
Add/(Deduct):
Non-incremental revenue generating capital expenditures:
Building improvements
(2,675)
(1,562)
(5,981)
(2,602)
Tenant improvements and leasing commissions9
(63)
(78)
(96)
(87)
Core AFFO3
$ 19,149
$ 21,634
$ 36,724
$ 39,969
Funds from Operations per share/unit-diluted
$0.36
$0.25
$0.48
$0.35
Core Funds from Operations per share/unit-diluted
$0.17
$0.18
$0.33
$0.32
Core Adjusted Funds from Operations per share/unit-diluted
$0.19
$0.21
$0.36
$0.39
Dividends declared per common share
$0.08
$0.06
$0.16
$0.11
See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.
See Consolidated Statements of Operations.
Adjusted EBITDA
($ in thousands) (unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Core FFO (calculated on a previous page)
$ 17,757
$ 18,615
$ 33,597
$ 32,795
Deduct:
