#United States #Jersey City #Veris Residential #multifamily REIT

Veris Residential, Inc. Reports First Quarter 2025 Results

Veris Residential, Inc., a Northeast-focused multifamily REIT, announced its financial outcomes for the first quarter of 2025, revealing a mix of operational achievements and strategic asset management. The company, recognized for its proactive approach and innovative portfolio strategies, reported a net loss per diluted share of $(0.12), compared to $(0.04) in the same quarter last year. Meanwhile, the Core Funds from Operations (FFO) per diluted share rose to $0.16 from $0.14, indicating positive underlying operational performance.

Financial Highlights

Veris Residential experienced a year-over-year same-store multifamily blended net rental growth rate of 2.4%. This growth comes alongside a 3.2% increase in the same-store net operating income (NOI). The occupancy rate across their portfolio stood at 94.0%, although this figure climbed to 95.3% when excluding Liberty Towers.

Additionally, the company has successfully divested $45 million of non-strategic assets, which reflects their commitment to refining their asset portfolio. Furthermore, they finalized the purchase of their partner’s interest in the Jersey City Urby joint venture for $38.5 million, rebranding the property to "Sable". This consolidation is projected to yield over $1 million in annualized synergies, further enhancing their operational efficiency and management capabilities.

Strategic Moves and Market Position

Mahbod Nia, the CEO of Veris Residential, highlighted the company's advancements in simplifying their portfolio as a priority for increasing overall value. The focus remains on unlocking opportunities within their assets, especially amidst the current market volatility. The firm aims to position itself favorably by streamlining operations and improving synergies.

The first quarter results reflect a balance of impressive occupancy rates and rental growth strategies, evident in their year-on-year financial metrics:

• - Total Property Revenue rose from $73.978 million to $75.761 million, marking a 2.4% increase.
• - Same Store NOI also improved from $49.314 million to $50.893 million, up by 3.2%.

Despite challenges in some operational areas, the company managed to control expenses, which exhibited an increase of 0.8% in total property expenses, presenting a slight uptick considering overall revenue growth. The organization also reported a similarly stable debt profile, with most of its debt hedged, maintaining an effective interest rate of 4.96%.

Forward-Looking Statements

Looking ahead, Veris Residential has upheld its financial guidance for the remainder of 2025, projecting continued growth in same-store revenue and NOI. The company anticipates a stable market environment, allowing them to pursue additional strategic asset sales and management innovations. As part of their ongoing commitment to transparency, they have scheduled an earnings conference call for April 24, 2025, to delve deeper into their strategies and future initiatives.

In summary, Veris Residential’s first-quarter results reflect a robust performance in the multifamily sector, enhanced by strategic asset movements and an unwavering commitment to operational excellence. With continued focus on sustainable growth and portfolio optimization, Veris Residential appears poised for a successful year ahead.