Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 22, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-13274 | |
Entity Registrant Name | VERIS RESIDENTIAL, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 22-3305147 | |
Entity Address, Address Line One | Harborside 3, 210 Hudson St. | |
Entity Address, Address Line Two | Ste. 400 | |
Entity Address, City or Town | Jersey City | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07311 | |
City Area Code | 732 | |
Local Phone Number | 590-1010 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | VRE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 92,893,924 | |
Entity Central Index Key | 0000924901 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
VERIS RESIDENTIAL, L.P. | ||
Entity File Number | 333-57103 | |
Entity Registrant Name | VERIS RESIDENTIAL, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3315804 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
VERIS RESIDENTIAL, INC. AND SUB
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Rental property | ||
Land and leasehold interests | $ 463,826 | $ 474,499 |
Buildings and improvements | 2,635,611 | 2,782,468 |
Tenant improvements | 8,682 | 30,908 |
Furniture, fixtures and equipment | 105,707 | 103,613 |
Gross investment in rental property | 3,213,826 | 3,391,488 |
Less – accumulated depreciation and amortization | (390,556) | (443,781) |
Total investment in rental property | 2,823,270 | 2,947,707 |
Real estate held for sale, net | 0 | 58,608 |
Net investment in rental property | 2,823,270 | 3,006,315 |
Cash and cash equivalents | 18,398 | 28,007 |
Restricted cash | 22,533 | 26,572 |
Investments in unconsolidated joint ventures | 120,392 | 117,954 |
Unbilled rents receivable, net | 1,805 | 5,500 |
Deferred charges and other assets, net | 49,529 | 53,956 |
Accounts receivable | 1,998 | 2,742 |
Total assets | 3,037,925 | 3,241,046 |
LIABILITIES AND EQUITY | ||
Revolving credit facility and term loans | 54,189 | 0 |
Mortgages, loans payable and other obligations, net | 1,632,765 | 1,853,897 |
Dividends and distributions payable | 6,375 | 5,540 |
Accounts payable, accrued expenses and other liabilities | 47,117 | 55,492 |
Rents received in advance and security deposits | 11,280 | 14,985 |
Accrued interest payable | 5,833 | 6,580 |
Total liabilities | 1,757,559 | 1,936,494 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 9,294 | 24,999 |
Veris Residential, Inc. stockholders’ equity: | ||
Common stock, $0.01 par value, 190,000,000 shares authorized, 92,821,785 and 92,229,424 shares outstanding | 928 | 922 |
Additional paid-in capital | 2,559,343 | 2,553,060 |
Dividends in excess of net earnings | (1,429,887) | (1,418,312) |
Accumulated other comprehensive income | 2,040 | 1,808 |
Total Veris Residential, Inc. stockholders’ equity | 1,132,424 | 1,137,478 |
Noncontrolling interests in subsidiaries: | ||
Operating Partnership | 105,959 | 107,206 |
Consolidated joint ventures | 32,689 | 34,869 |
Total noncontrolling interests in subsidiaries | 138,648 | 142,075 |
Total equity | 1,271,072 | 1,279,553 |
Total liabilities and equity | $ 3,037,925 | $ 3,241,046 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities |
VERIS RESIDENTIAL, INC. AND S_2
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 190,000,000 | 190,000,000 |
Common stock, shares outstanding (in shares) | 92,821,785 | 92,229,424 |
VERIS RESIDENTIAL, INC. AND S_3
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUES | ||||
Total revenues | $ 67,476 | $ 64,206 | $ 134,816 | $ 126,804 |
EXPENSES | ||||
Real estate taxes | 9,502 | 6,298 | 18,679 | 15,857 |
Utilities | 1,796 | 1,761 | 4,067 | 3,824 |
Operating services | 12,628 | 12,232 | 25,198 | 23,615 |
Real estate services expenses | 4,366 | 4,389 | 9,608 | 6,332 |
General and administrative | 8,975 | 9,572 | 20,063 | 19,853 |
Transaction related costs | 890 | 3,319 | 1,406 | 4,347 |
Depreciation and amortization | 20,316 | 21,831 | 40,433 | 43,619 |
Land and other impairments, net | 0 | 0 | 0 | 3,396 |
Total expenses | 58,473 | 59,402 | 119,454 | 120,843 |
OTHER (EXPENSE) INCOME | ||||
Interest expense | (21,676) | (21,692) | (43,176) | (43,706) |
Interest cost of mandatorily redeemable noncontrolling interests | 0 | (13,390) | 0 | (13,390) |
Interest and other investment income | 1,536 | 3,927 | 2,074 | 4,043 |
Equity in earnings of unconsolidated joint ventures | 2,933 | 2,700 | 3,187 | 2,633 |
Gain (loss) on disposition of developable land | 10,731 | 0 | 11,515 | (22) |
Gain on sale of unconsolidated joint venture interests | 0 | 0 | 7,100 | 0 |
Loss from extinguishment of debt, net | (785) | (2,657) | (785) | (2,657) |
Other income (expense), net | (250) | 853 | 5 | 2,851 |
Total other (expense) income, net | (7,511) | (30,259) | (20,080) | (50,248) |
Income (loss) from continuing operations before income tax expense | 1,492 | (25,455) | (4,718) | (44,287) |
Provision for income taxes | (176) | 0 | (235) | 0 |
Income (loss) from continuing operations after income tax expense | 1,316 | (25,455) | (4,953) | (44,287) |
Discontinued operations: | ||||
Income (loss) from discontinued operations | 1,419 | (1,192) | 1,671 | 631 |
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net | 0 | (3,488) | 1,548 | (2,709) |
Total discontinued operations, net | 1,419 | (4,680) | 3,219 | (2,078) |
Net income (loss) | 2,735 | (30,135) | (1,734) | (46,365) |
Noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Noncontrolling interests in Operating Partnership of income from continuing operations | (153) | 2,265 | 370 | 4,542 |
Noncontrolling interests in Operating Partnership in discontinued operations | (122) | 417 | (277) | 176 |
Redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Net income (loss) available to common shareholders | $ 2,922 | $ (27,434) | $ (981) | $ (47,407) |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Discontinued operations (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net income (loss) available to common shareholders (in dollars per share) | 0.03 | (0.30) | (0.01) | (0.56) |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.02 | (0.25) | (0.04) | (0.54) |
Discontinued operations (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net income (loss) available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
Basic weighted average shares outstanding (in shares) | 92,663 | 91,873 | 92,469 | 91,551 |
Diluted weighted average shares outstanding (in shares) | 101,952 | 100,854 | 101,160 | 100,691 |
Revenue from leases | ||||
REVENUES | ||||
Total revenues | $ 60,917 | $ 58,192 | $ 121,559 | $ 114,289 |
Real estate services | ||||
REVENUES | ||||
Total revenues | 871 | 643 | 1,793 | 1,554 |
Parking income | ||||
REVENUES | ||||
Total revenues | 3,922 | 3,998 | 7,667 | 7,726 |
Other income | ||||
REVENUES | ||||
Total revenues | $ 1,766 | $ 1,373 | $ 3,797 | $ 3,235 |
VERIS RESIDENTIAL, INC. AND S_4
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,735 | $ (30,135) | $ (1,734) | $ (46,365) |
Other comprehensive income (loss): | ||||
Net unrealized (loss) gain on derivative instruments | (838) | 1,536 | 254 | 591 |
Comprehensive income (loss) | 1,897 | (28,599) | (1,480) | (45,774) |
Comprehensive loss attributable to noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Comprehensive income attributable to redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Comprehensive (income) loss attributable to noncontrolling interests in Operating Partnership | (203) | 2,545 | 71 | 4,668 |
Comprehensive income (loss) attributable to common shareholders | $ 2,156 | $ (26,035) | $ (749) | $ (46,866) |
VERIS RESIDENTIAL, INC. AND S_5
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Dividends in Excess of Net Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Subsidiaries |
Balance, beginning (in shares) at Dec. 31, 2022 | 91,142,000 | |||||
Balance, beginning at Dec. 31, 2022 | $ 1,399,337 | $ 911 | $ 2,532,182 | $ (1,301,385) | $ 3,977 | $ 163,652 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (46,365) | (47,407) | 1,042 | |||
Unit distributions | 0 | |||||
Redeemable noncontrolling interests | (11,960) | (4,516) | (7,444) | |||
Change in noncontrolling interests in consolidated joint ventures | (562) | (562) | ||||
Redemption of common units for common stock (in shares) | 650,000 | |||||
Redemption of common units for common stock | 0 | $ 7 | 9,044 | (9,051) | ||
Redemption of common units | (94) | (94) | ||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 2 | 2 | ||||
Directors' deferred compensation plan (in shares) | 21,000 | |||||
Directors' deferred compensation plan | 196 | 196 | ||||
Stock compensation (in shares) | 259,000 | |||||
Stock compensation | 7,339 | 6,852 | 487 | |||
Cancellation of restricted shares (in shares) | (31,000) | |||||
Cancellation of restricted shares | (466) | (466) | ||||
Other comprehensive (loss) income | 591 | 541 | 50 | |||
Rebalancing of ownership percentage between parent and subsidiaries | 0 | (2,985) | 2,985 | |||
Balance, ending (in shares) at Jun. 30, 2023 | 92,041,000 | |||||
Balance, ending at Jun. 30, 2023 | 1,348,018 | $ 918 | 2,540,309 | (1,348,792) | 4,518 | 151,065 |
Balance, beginning (in shares) at Mar. 31, 2023 | 91,620,000 | |||||
Balance, beginning at Mar. 31, 2023 | 1,373,969 | $ 915 | 2,533,854 | (1,321,358) | 3,119 | 157,439 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (30,135) | (27,434) | (2,701) | |||
Unit distributions | 0 | |||||
Redeemable noncontrolling interests | (617) | (617) | ||||
Redemption of common units for common stock (in shares) | 271,000 | |||||
Redemption of common units for common stock | 0 | $ 3 | 4,189 | (4,192) | ||
Redemption of common units | (78) | (78) | ||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 1 | 1 | ||||
Directors' deferred compensation plan (in shares) | 21,000 | |||||
Directors' deferred compensation plan | 86 | 86 | ||||
Stock compensation (in shares) | 144,000 | |||||
Stock compensation | 3,475 | 3,381 | 94 | |||
Cancellation of restricted shares (in shares) | (15,000) | |||||
Cancellation of restricted shares | (219) | (219) | ||||
Other comprehensive (loss) income | 1,536 | 1,399 | 137 | |||
Rebalancing of ownership percentage between parent and subsidiaries | 0 | (983) | 983 | |||
Balance, ending (in shares) at Jun. 30, 2023 | 92,041,000 | |||||
Balance, ending at Jun. 30, 2023 | $ 1,348,018 | $ 918 | 2,540,309 | (1,348,792) | 4,518 | 151,065 |
Balance, beginning (in shares) at Dec. 31, 2023 | 92,229,424 | 92,229,000 | ||||
Balance, beginning at Dec. 31, 2023 | $ 1,279,553 | $ 922 | 2,553,060 | (1,418,312) | 1,808 | 142,075 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,734) | (981) | (753) | |||
Shares issued under ATM Program, net (in shares) | 134,000 | |||||
Shares issued under ATM Program, net | 1,831 | $ 1 | 1,830 | |||
Common stock dividends | (10,594) | (10,594) | ||||
Unit distributions | (978) | (978) | ||||
Redeemable noncontrolling interests | (378) | (378) | ||||
Change in noncontrolling interests in consolidated joint ventures | (1,142) | (1,142) | ||||
Redemption of common units for common stock (in shares) | 9,000 | |||||
Redemption of common units for common stock | 0 | 113 | (113) | |||
Redemption of common units | 0 | 0 | ||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 4 | 4 | ||||
Directors' deferred compensation plan | 198 | 198 | ||||
Stock compensation (in shares) | 675,000 | |||||
Stock compensation | 7,399 | $ 7 | 7,392 | |||
Cancellation of restricted shares (in shares) | (225,000) | |||||
Cancellation of restricted shares | (3,341) | $ (2) | (3,339) | |||
Other comprehensive (loss) income | 254 | 232 | 22 | |||
Rebalancing of ownership percentage between parent and subsidiaries | $ 0 | 85 | (85) | |||
Balance, ending (in shares) at Jun. 30, 2024 | 92,821,785 | 92,822,000 | ||||
Balance, ending at Jun. 30, 2024 | $ 1,271,072 | $ 928 | 2,559,343 | (1,429,887) | 2,040 | 138,648 |
Balance, beginning (in shares) at Mar. 31, 2024 | 92,385,000 | |||||
Balance, beginning at Mar. 31, 2024 | 1,272,216 | $ 924 | 2,555,700 | (1,427,199) | 2,806 | 139,985 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,735 | 2,922 | (187) | |||
Shares issued under ATM Program, net (in shares) | 134,000 | |||||
Shares issued under ATM Program, net | 1,886 | $ 1 | 1,885 | |||
Common stock dividends | (5,610) | (5,610) | ||||
Unit distributions | (521) | (521) | ||||
Redeemable noncontrolling interests | (81) | (81) | ||||
Change in noncontrolling interests in consolidated joint ventures | (209) | (209) | ||||
Redemption of common units for common stock (in shares) | 9,000 | |||||
Redemption of common units for common stock | 0 | 113 | (113) | |||
Redemption of common units | 0 | |||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 3 | 3 | ||||
Directors' deferred compensation plan | 99 | 99 | ||||
Stock compensation (in shares) | 417,000 | |||||
Stock compensation | 3,199 | $ 4 | 3,195 | |||
Cancellation of restricted shares (in shares) | (123,000) | |||||
Cancellation of restricted shares | (1,807) | $ (1) | (1,806) | |||
Other comprehensive (loss) income | (838) | (766) | (72) | |||
Rebalancing of ownership percentage between parent and subsidiaries | $ 0 | 154 | (154) | |||
Balance, ending (in shares) at Jun. 30, 2024 | 92,821,785 | 92,822,000 | ||||
Balance, ending at Jun. 30, 2024 | $ 1,271,072 | $ 928 | $ 2,559,343 | $ (1,429,887) | $ 2,040 | $ 138,648 |
VERIS RESIDENTIAL, INC. AND S_6
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (1,734) | $ (46,365) | |
Net (income) loss from discontinued operations | (3,219) | 2,078 | |
Net loss from continuing operations | (4,953) | (44,287) | |
Adjustments to reconcile net income (loss) to net cash provided by | |||
Depreciation and amortization, including related intangible assets | 40,417 | 43,541 | |
Amortization of deferred compensation stock units | 198 | 196 | |
Amortization of stock compensation | 7,348 | 7,339 | |
Amortization of deferred financing costs | 2,811 | 1,808 | |
Equity in earnings of unconsolidated joint ventures | (3,187) | (2,633) | |
(Gain) loss on disposition of developable land | (11,515) | 22 | |
Gain on sale of unconsolidated joint ventures | (7,100) | 0 | |
Land and other impairments, net | 0 | 3,396 | |
Loss from extinguishment of debt | 785 | 2,657 | |
Gain on insurance proceeds | (5) | (2,851) | |
Interest cost of mandatorily redeemable noncontrolling interests | 0 | 13,390 | |
Changes in operating assets and liabilities: | |||
(Increase) decrease in unbilled rents receivable, net | (247) | 1,088 | |
Decrease in deferred charges and other assets | 7,293 | 3,856 | |
Increase in accounts receivable, net | (465) | (485) | |
Decrease in accounts payable, accrued expenses and other liabilities | (4,080) | (7,341) | |
(Decrease) increase in rents received in advance and security deposits | (558) | 925 | |
(Decrease) increase in accrued interest payable | (747) | 158 | |
Net cash flows provided by operating activities - continuing operations | 25,995 | 20,779 | |
Net cash flows provided by operating activities - discontinued operations | 548 | 3,585 | |
Net cash provided by operating activities | 26,543 | 24,364 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Rental property additions, improvements and other costs | (5,670) | (6,449) | |
Development of rental property and other related costs | (3,970) | (5,647) | |
Proceeds from the sales of developable land | 88,962 | 6,528 | |
Proceeds from sale of investments in joint ventures | 6,095 | 0 | |
Repayment of notes receivable | 32 | 1,257 | |
Investment in unconsolidated joint ventures | (226) | (98) | |
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 3,281 | 6,454 | |
Proceeds from insurance settlements | 255 | 3,239 | |
Net cash provided by investing activities - continuing operations | 88,759 | 5,284 | |
Net cash provided by investing activities - discontinued operations | 77,184 | 446,350 | |
Net cash provided by investing activities | 165,943 | 451,634 | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Borrowings from revolving credit facility | 0 | 16,000 | |
Repayment of revolving credit facility | 0 | (16,000) | |
Borrowings from term loans | 55,000 | 0 | |
Repayment of mortgages, loans payable and other obligations | (223,922) | (84,258) | |
Redemption of redeemable noncontrolling interests, net | (15,700) | 0 | |
Payment of early debt extinguishment costs | 0 | (251) | |
Common unit redemptions | 0 | (94) | |
Payment of financing costs | (7,744) | (1,721) | |
Contribution from noncontrolling interests | 108 | 0 | |
Distribution to noncontrolling interests | (1,249) | 0 | |
Distributions to redeemable noncontrolling interests | (384) | (12,731) | |
Payment of common dividends and distributions | (10,737) | (38) | |
Share issuance proceeds (costs), net | 1,831 | 0 | |
Other financing activities | (3,337) | 0 | |
Net cash used in financing activities | (206,134) | (99,093) | |
Net (decrease) increase in cash and cash equivalents | (13,648) | 376,905 | |
Cash, cash equivalents and restricted cash, beginning of period | [1] | 54,579 | 47,649 |
Cash, cash equivalents and restricted cash, end of period | [2] | $ 40,931 | $ 424,554 |
[1] Includes Restricted Cash of $26,572 and $20,867 as of December 31, 2023 and 2022, respectively. Includes Restricted Cash of $22,533 and $27,614 as of June 30, 2024 and 2023, respectively. |
VERIS RESIDENTIAL, INC. AND S_7
VERIS RESIDENTIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash | $ 22,533 | $ 26,572 | $ 27,614 | $ 20,867 |
VERIS RESIDENTIAL, L.P. AND SUB
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Rental property | ||
Land and leasehold interests | $ 463,826 | $ 474,499 |
Buildings and improvements | 2,635,611 | 2,782,468 |
Tenant improvements | 8,682 | 30,908 |
Furniture, fixtures and equipment | 105,707 | 103,613 |
Gross investment in rental property | 3,213,826 | 3,391,488 |
Less – accumulated depreciation and amortization | (390,556) | (443,781) |
Total investment in rental property | 2,823,270 | 2,947,707 |
Real estate held for sale, net | 0 | 58,608 |
Net investment in rental property | 2,823,270 | 3,006,315 |
Cash and cash equivalents | 18,398 | 28,007 |
Restricted cash | 22,533 | 26,572 |
Investments in unconsolidated joint ventures | 120,392 | 117,954 |
Unbilled rents receivable, net | 1,805 | 5,500 |
Deferred charges and other assets, net | 49,529 | 53,956 |
Accounts receivable | 1,998 | 2,742 |
Total assets | 3,037,925 | 3,241,046 |
LIABILITIES AND EQUITY | ||
Revolving credit facility and term loans | 54,189 | 0 |
Mortgages, loans payable and other obligations, net | 1,632,765 | 1,853,897 |
Dividends and distributions payable | 6,375 | 5,540 |
Accounts payable, accrued expenses and other liabilities | 47,117 | 55,492 |
Rents received in advance and security deposits | 11,280 | 14,985 |
Accrued interest payable | 5,833 | 6,580 |
Total liabilities | 1,757,559 | 1,936,494 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 9,294 | 24,999 |
Partners’ Capital: | ||
Accumulated other comprehensive income | 2,040 | 1,808 |
Total liabilities and equity | 3,037,925 | 3,241,046 |
VERIS RESIDENTIAL, L.P. | ||
Rental property | ||
Land and leasehold interests | 463,826 | 474,499 |
Buildings and improvements | 2,635,611 | 2,782,468 |
Tenant improvements | 8,682 | 30,908 |
Furniture, fixtures and equipment | 105,707 | 103,613 |
Gross investment in rental property | 3,213,826 | 3,391,488 |
Less – accumulated depreciation and amortization | (390,556) | (443,781) |
Total investment in rental property | 2,823,270 | 2,947,707 |
Real estate held for sale, net | 0 | 58,608 |
Net investment in rental property | 2,823,270 | 3,006,315 |
Cash and cash equivalents | 18,398 | 28,007 |
Restricted cash | 22,533 | 26,572 |
Investments in unconsolidated joint ventures | 120,392 | 117,954 |
Unbilled rents receivable, net | 1,805 | 5,500 |
Deferred charges and other assets, net | 49,529 | 53,956 |
Accounts receivable | 1,998 | 2,742 |
Total assets | 3,037,925 | 3,241,046 |
LIABILITIES AND EQUITY | ||
Revolving credit facility and term loans | 54,189 | 0 |
Mortgages, loans payable and other obligations, net | 1,632,765 | 1,853,897 |
Dividends and distributions payable | 6,375 | 5,540 |
Accounts payable, accrued expenses and other liabilities | 47,117 | 55,492 |
Rents received in advance and security deposits | 11,280 | 14,985 |
Accrued interest payable | 5,833 | 6,580 |
Total liabilities | 1,757,559 | 1,936,494 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 9,294 | 24,999 |
Partners’ Capital: | ||
General Partner, 92,821,785 and 92,229,424 common units outstanding | 1,066,602 | 1,071,973 |
Limited partners, 8,685,214 and 8,692,561 common units/LTIPs outstanding | 169,741 | 170,903 |
Accumulated other comprehensive income | 2,040 | 1,808 |
Total Veris Residential, L.P. partners’ capital | 1,238,383 | 1,244,684 |
Noncontrolling interests in consolidated joint ventures | 32,689 | 34,869 |
Total equity | 1,271,072 | 1,279,553 |
Total liabilities and equity | $ 3,037,925 | $ 3,241,046 |
VERIS RESIDENTIAL, L.P. AND S_2
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Parenthetical) - VERIS RESIDENTIAL, L.P. - shares | Jun. 30, 2024 | Dec. 31, 2023 |
General Partner common units outstanding (in shares) | 92,821,785 | 92,229,424 |
Limited partners common units outstanding (in shares) | 8,685,214 | 8,692,561 |
VERIS RESIDENTIAL, L.P. AND S_3
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUES | ||||
Total revenues | $ 67,476 | $ 64,206 | $ 134,816 | $ 126,804 |
EXPENSES | ||||
Real estate taxes | 9,502 | 6,298 | 18,679 | 15,857 |
Utilities | 1,796 | 1,761 | 4,067 | 3,824 |
Operating services | 12,628 | 12,232 | 25,198 | 23,615 |
Real estate services expenses | 4,366 | 4,389 | 9,608 | 6,332 |
General and administrative | 8,975 | 9,572 | 20,063 | 19,853 |
Transaction related costs | 890 | 3,319 | 1,406 | 4,347 |
Depreciation and amortization | 20,316 | 21,831 | 40,433 | 43,619 |
Land and other impairments, net | 0 | 0 | 0 | 3,396 |
Total expenses | 58,473 | 59,402 | 119,454 | 120,843 |
OTHER (EXPENSE) INCOME | ||||
Interest expense | (21,676) | (21,692) | (43,176) | (43,706) |
Interest cost of mandatorily redeemable noncontrolling interests | 0 | (13,390) | 0 | (13,390) |
Interest and other investment income | 1,536 | 3,927 | 2,074 | 4,043 |
Equity in earnings of unconsolidated joint ventures | 2,933 | 2,700 | 3,187 | 2,633 |
Gain (loss) on disposition of developable land | 10,731 | 0 | 11,515 | (22) |
Gain on sale of unconsolidated joint venture interests | 0 | 0 | 7,100 | 0 |
Loss from extinguishment of debt, net | (785) | (2,657) | (785) | (2,657) |
Other income (expense), net | (250) | 853 | 5 | 2,851 |
Total other (expense) income, net | (7,511) | (30,259) | (20,080) | (50,248) |
Income (loss) from continuing operations before income tax expense | 1,492 | (25,455) | (4,718) | (44,287) |
Provision for income taxes | (176) | 0 | (235) | 0 |
Income (loss) from continuing operations after income tax expense | 1,316 | (25,455) | (4,953) | (44,287) |
Discontinued operations: | ||||
Income (loss) from discontinued operations | 1,419 | (1,192) | 1,671 | 631 |
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net | 0 | (3,488) | 1,548 | (2,709) |
Total discontinued operations, net | 1,419 | (4,680) | 3,219 | (2,078) |
Net income (loss) | 2,735 | (30,135) | (1,734) | (46,365) |
Noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Net income (loss) available to common shareholders | $ 2,922 | $ (27,434) | $ (981) | $ (47,407) |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Discontinued operations (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net income (loss) available to common shareholders (in dollars per share) | 0.03 | (0.30) | (0.01) | (0.56) |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.02 | (0.25) | (0.04) | (0.54) |
Discontinued operations (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net income (loss) available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
Revenue from leases | ||||
REVENUES | ||||
Total revenues | $ 60,917 | $ 58,192 | $ 121,559 | $ 114,289 |
Real estate services | ||||
REVENUES | ||||
Total revenues | 871 | 643 | 1,793 | 1,554 |
Parking income | ||||
REVENUES | ||||
Total revenues | 3,922 | 3,998 | 7,667 | 7,726 |
Other income | ||||
REVENUES | ||||
Total revenues | 1,766 | 1,373 | 3,797 | 3,235 |
VERIS RESIDENTIAL, L.P. | ||||
REVENUES | ||||
Total revenues | 67,476 | 64,206 | 134,816 | 126,804 |
EXPENSES | ||||
Real estate taxes | 9,502 | 6,298 | 18,679 | 15,857 |
Utilities | 1,796 | 1,761 | 4,067 | 3,824 |
Operating services | 12,628 | 12,232 | 25,198 | 23,615 |
Real estate services expenses | 4,366 | 4,389 | 9,608 | 6,332 |
General and administrative | 8,975 | 9,572 | 20,063 | 19,853 |
Transaction related costs | 890 | 3,319 | 1,406 | 4,347 |
Depreciation and amortization | 20,316 | 21,831 | 40,433 | 43,619 |
Land and other impairments, net | 0 | 0 | 0 | 3,396 |
Total expenses | 58,473 | 59,402 | 119,454 | 120,843 |
OTHER (EXPENSE) INCOME | ||||
Interest expense | (21,676) | (21,692) | (43,176) | (43,706) |
Interest cost of mandatorily redeemable noncontrolling interests | 0 | (13,390) | 0 | (13,390) |
Interest and other investment income | 1,536 | 3,927 | 2,074 | 4,043 |
Equity in earnings of unconsolidated joint ventures | 2,933 | 2,700 | 3,187 | 2,633 |
Gain (loss) on disposition of developable land | 10,731 | 0 | 11,515 | (22) |
Gain on sale of unconsolidated joint venture interests | 0 | 0 | 7,100 | 0 |
Loss from extinguishment of debt, net | (785) | (2,657) | (785) | (2,657) |
Other income (expense), net | (250) | 853 | 5 | 2,851 |
Total other (expense) income, net | (7,511) | (30,259) | (20,080) | (50,248) |
Income (loss) from continuing operations before income tax expense | 1,492 | (25,455) | (4,718) | (44,287) |
Provision for income taxes | (176) | 0 | (235) | 0 |
Income (loss) from continuing operations after income tax expense | 1,316 | (25,455) | (4,953) | (44,287) |
Discontinued operations: | ||||
Income (loss) from discontinued operations | 1,419 | (1,192) | 1,671 | 631 |
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net | 0 | (3,488) | 1,548 | (2,709) |
Total discontinued operations, net | 1,419 | (4,680) | 3,219 | (2,078) |
Net income (loss) | 2,735 | (30,135) | (1,734) | (46,365) |
Noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Net income (loss) available to common shareholders | $ 3,197 | $ (30,116) | $ (1,074) | $ (52,125) |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Discontinued operations (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net income (loss) available to common shareholders (in dollars per share) | 0.03 | (0.30) | (0.01) | (0.56) |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.02 | (0.25) | (0.04) | (0.54) |
Discontinued operations (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net income (loss) available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
Basic weighted average units outstanding (in shares) | 101,352 | 100,854 | 101,160 | 100,691 |
Diluted weighted average units outstanding (in shares) | 101,952 | 100,854 | 101,160 | 100,691 |
VERIS RESIDENTIAL, L.P. | Revenue from leases | ||||
REVENUES | ||||
Total revenues | $ 60,917 | $ 58,192 | $ 121,559 | $ 114,289 |
VERIS RESIDENTIAL, L.P. | Real estate services | ||||
REVENUES | ||||
Total revenues | 871 | 643 | 1,793 | 1,554 |
VERIS RESIDENTIAL, L.P. | Parking income | ||||
REVENUES | ||||
Total revenues | 3,922 | 3,998 | 7,667 | 7,726 |
VERIS RESIDENTIAL, L.P. | Other income | ||||
REVENUES | ||||
Total revenues | $ 1,766 | $ 1,373 | $ 3,797 | $ 3,235 |
VERIS RESIDENTIAL, L.P. AND S_4
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net income (loss) | $ 2,735 | $ (30,135) | $ (1,734) | $ (46,365) |
Other comprehensive income (loss): | ||||
Net unrealized (loss) gain on derivative instruments | (838) | 1,536 | 254 | 591 |
Comprehensive income (loss) | 1,897 | (28,599) | (1,480) | (45,774) |
Comprehensive loss attributable to noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Comprehensive income attributable to redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Comprehensive income (loss) attributable to common shareholders | 2,156 | (26,035) | (749) | (46,866) |
VERIS RESIDENTIAL, L.P. | ||||
Net income (loss) | 2,735 | (30,135) | (1,734) | (46,365) |
Other comprehensive income (loss): | ||||
Net unrealized (loss) gain on derivative instruments | (838) | 1,536 | 254 | 591 |
Comprehensive income (loss) | 1,897 | (28,599) | (1,480) | (45,774) |
Comprehensive loss attributable to noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Comprehensive income attributable to redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Comprehensive income (loss) attributable to common shareholders | $ 2,359 | $ (28,580) | $ (820) | $ (51,534) |
VERIS RESIDENTIAL, L.P. AND S_5
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | General Partner Common Units | Common Unitholders | VERIS RESIDENTIAL, L.P. | VERIS RESIDENTIAL, L.P. Accumulated Other Comprehensive Income (Loss) | VERIS RESIDENTIAL, L.P. General Partner Common Units | VERIS RESIDENTIAL, L.P. Limited Partner Common Units/ Vested LTIP Units | VERIS RESIDENTIAL, L.P. Common Unitholders | VERIS RESIDENTIAL, L.P. Limited Partner Common Unitholders | VERIS RESIDENTIAL, L.P. Noncontrolling Interest in Consolidated Joint Ventures |
Balance, beginning (in shares) at Dec. 31, 2022 | 91,142,000 | 9,301,000 | ||||||||
Balance, beginning at Dec. 31, 2022 | $ 1,399,337 | $ 3,977 | $ 1,163,935 | $ 193,882 | $ 37,543 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | $ (46,365) | (46,365) | (47,407) | (4,718) | 5,760 | |||||
Shares issued under ATM Program, net | $ 0 | |||||||||
Redeemable noncontrolling interests | (11,960) | (11,960) | (4,516) | (461) | (6,983) | |||||
Change in noncontrolling interests in consolidated joint ventures | (562) | (562) | (562) | |||||||
Vested LTIP units (in shares) | 221,000 | |||||||||
Redemption of limited partners common units for shares of general partner common units (in shares) | 650,000 | (650,000) | ||||||||
Redemption of limited partners common units for shares of general partner common units | 0 | 9,051 | (9,051) | |||||||
Redemption of limited partner common units (in shares) | 5,000 | |||||||||
Redemption of limited partners common units | (94) | 9,051 | (94) | (94) | ||||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 2 | 2 | 2 | |||||||
Directors' deferred compensation plan (in shares) | 21,000 | |||||||||
Directors' deferred compensation plan | 196 | 196 | 196 | 196 | ||||||
Other comprehensive (loss) income | 591 | 541 | 591 | 541 | 50 | |||||
Stock compensation (in shares) | 259,000 | |||||||||
Stock compensation | 7,339 | 7,339 | 6,852 | 487 | ||||||
Cancellation of common and restricted shares (in shares) | (31,000) | |||||||||
Cancellation of restricted shares | (466) | (466) | (466) | |||||||
Balance, ending (in shares) at Jun. 30, 2023 | 92,041,000 | 8,867,000 | ||||||||
Balance, ending at Jun. 30, 2023 | 1,348,018 | 4,518 | 1,127,647 | 180,095 | 35,758 | |||||
Balance, beginning (in shares) at Mar. 31, 2023 | 91,620,000 | 9,116,000 | ||||||||
Balance, beginning at Mar. 31, 2023 | 1,373,969 | 3,119 | 1,147,640 | 186,816 | 36,394 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | (30,135) | (30,135) | (27,434) | (2,682) | (19) | |||||
Shares issued under ATM Program, net | 0 | |||||||||
Redeemable noncontrolling interests | (617) | (617) | (617) | |||||||
Vested LTIP units (in shares) | 26,000 | |||||||||
Redemption of limited partners common units for shares of general partner common units (in shares) | 271,000 | (271,000) | ||||||||
Redemption of limited partners common units for shares of general partner common units | 0 | 0 | 4,192 | (4,192) | ||||||
Redemption of limited partner common units (in shares) | (4,000) | |||||||||
Redemption of limited partners common units | (78) | 4,192 | (78) | (78) | ||||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 1 | 1 | 1 | |||||||
Directors' deferred compensation plan (in shares) | 21,000 | |||||||||
Directors' deferred compensation plan | 86 | 86 | 86 | 86 | ||||||
Other comprehensive (loss) income | 1,536 | 1,399 | 1,536 | 1,399 | 137 | |||||
Stock compensation (in shares) | 144,000 | |||||||||
Stock compensation | 3,475 | 3,475 | 3,381 | 94 | ||||||
Cancellation of common and restricted shares (in shares) | (15,000) | |||||||||
Cancellation of restricted shares | $ (219) | (219) | (219) | |||||||
Balance, ending (in shares) at Jun. 30, 2023 | 92,041,000 | 8,867,000 | ||||||||
Balance, ending at Jun. 30, 2023 | 1,348,018 | 4,518 | 1,127,647 | 180,095 | 35,758 | |||||
Balance, beginning (in shares) at Dec. 31, 2023 | 92,229,424 | 92,229,000 | 8,693,000 | |||||||
Balance, beginning at Dec. 31, 2023 | 1,279,553 | 1,808 | 1,071,973 | 170,903 | 34,869 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | $ (1,734) | (1,734) | (981) | (93) | (660) | |||||
Shares issued under ATM Program, net (in shares) | 134,000 | |||||||||
Shares issued under ATM Program, net | 1,831 | 1,831 | 1,831 | |||||||
Unit distributions | (978) | (11,572) | (10,594) | (978) | ||||||
Redeemable noncontrolling interests | (378) | (378) | (378) | |||||||
Change in noncontrolling interests in consolidated joint ventures | (1,142) | (1,142) | (1,142) | |||||||
Vested LTIP units (in shares) | 1,000 | |||||||||
Redemption of limited partners common units for shares of general partner common units (in shares) | 9,000 | (9,000) | ||||||||
Redemption of limited partners common units for shares of general partner common units | $ 0 | 0 | 113 | (113) | ||||||
Redemption of limited partner common units (in shares) | (9,230) | |||||||||
Redemption of limited partners common units | $ 0 | 113 | ||||||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 4 | 4 | 4 | |||||||
Directors' deferred compensation plan | 198 | 198 | 198 | 198 | ||||||
Other comprehensive (loss) income | 254 | 232 | 254 | 232 | 22 | |||||
Stock compensation (in shares) | 675,000 | |||||||||
Stock compensation | 7,399 | 7,399 | 7,399 | |||||||
Cancellation of common and restricted shares (in shares) | (225,000) | |||||||||
Cancellation of restricted shares | $ (3,341) | (3,341) | (3,341) | |||||||
Balance, ending (in shares) at Jun. 30, 2024 | 92,821,785 | 92,822,000 | 8,685,000 | |||||||
Balance, ending at Jun. 30, 2024 | 1,271,072 | 2,040 | 1,066,602 | 169,741 | 32,689 | |||||
Balance, beginning (in shares) at Mar. 31, 2024 | 92,385,000 | 8,694,000 | ||||||||
Balance, beginning at Mar. 31, 2024 | 1,272,216 | 2,806 | 1,065,797 | 170,172 | 33,441 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | $ 2,735 | 2,735 | 2,922 | 275 | (462) | |||||
Shares issued under ATM Program, net (in shares) | 134,000 | |||||||||
Shares issued under ATM Program, net | 1,886 | 1,886 | 1,886 | 1,886 | ||||||
Unit distributions | (521) | (6,131) | (5,610) | (521) | ||||||
Redeemable noncontrolling interests | (81) | (81) | (81) | |||||||
Change in noncontrolling interests in consolidated joint ventures | (209) | (209) | (209) | |||||||
Redemption of limited partners common units for shares of general partner common units (in shares) | 9,000 | (9,000) | ||||||||
Redemption of limited partners common units for shares of general partner common units | 0 | 0 | 113 | (113) | ||||||
Redemption of limited partners common units | 113 | |||||||||
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 3 | 3 | 3 | |||||||
Directors' deferred compensation plan | 99 | 99 | 99 | 99 | ||||||
Other comprehensive (loss) income | (838) | $ (766) | (838) | (766) | (72) | |||||
Stock compensation (in shares) | 417,000 | |||||||||
Stock compensation | 3,199 | 3,199 | 3,199 | |||||||
Cancellation of common and restricted shares (in shares) | (123,000) | |||||||||
Cancellation of restricted shares | $ (1,807) | (1,807) | (1,807) | |||||||
Balance, ending (in shares) at Jun. 30, 2024 | 92,821,785 | 92,822,000 | 8,685,000 | |||||||
Balance, ending at Jun. 30, 2024 | $ 1,271,072 | $ 2,040 | $ 1,066,602 | $ 169,741 | $ 32,689 |
VERIS RESIDENTIAL, L.P. AND S_6
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (1,734) | $ (46,365) | |
Net (income) loss from discontinued operations | (3,219) | 2,078 | |
Income (loss) from continuing operations after income tax expense | (4,953) | (44,287) | |
Adjustments to reconcile net income (loss) to net cash provided by | |||
Depreciation and amortization, including related intangible assets | 40,417 | 43,541 | |
Amortization of deferred compensation stock units | 198 | 196 | |
Amortization of stock compensation | 7,348 | 7,339 | |
Amortization of deferred financing costs | 2,811 | 1,808 | |
Equity in earnings of unconsolidated joint ventures | (3,187) | (2,633) | |
(Gain) loss on disposition of developable land | (11,515) | 22 | |
Gain on sale of unconsolidated joint ventures | (7,100) | 0 | |
Land and other impairments, net | 0 | 3,396 | |
Loss from extinguishment of debt | 785 | 2,657 | |
Gain on insurance proceeds | (5) | (2,851) | |
Interest cost of mandatorily redeemable noncontrolling interests | 0 | 13,390 | |
Changes in operating assets and liabilities: | |||
(Increase) decrease in unbilled rents receivable, net | (247) | 1,088 | |
Decrease in deferred charges and other assets | 7,293 | 3,856 | |
Increase in accounts receivable, net | (465) | (485) | |
Decrease in accounts payable, accrued expenses and other liabilities | (4,080) | (7,341) | |
(Decrease) increase in rents received in advance and security deposits | (558) | 925 | |
(Decrease) increase in accrued interest payable | (747) | 158 | |
Net cash flows provided by operating activities - continuing operations | 25,995 | 20,779 | |
Net cash flows provided by operating activities - discontinued operations | 548 | 3,585 | |
Net cash provided by operating activities | 26,543 | 24,364 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Rental property additions, improvements and other costs | (5,670) | (6,449) | |
Development of rental property and other related costs | (3,970) | (5,647) | |
Proceeds from the sales of developable land | 88,962 | 6,528 | |
Proceeds from sale of investments in joint ventures | 6,095 | 0 | |
Repayment of notes receivable | 32 | 1,257 | |
Investment in unconsolidated joint ventures | (226) | (98) | |
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 3,281 | 6,454 | |
Proceeds from insurance settlements | 255 | 3,239 | |
Net cash provided by investing activities - continuing operations | 88,759 | 5,284 | |
Net cash provided by investing activities - discontinued operations | 77,184 | 446,350 | |
Net cash provided by investing activities | 165,943 | 451,634 | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Borrowings from revolving credit facility | 0 | 16,000 | |
Repayment of revolving credit facility | 0 | (16,000) | |
Borrowings from term loans | 55,000 | 0 | |
Repayment of mortgages, loans payable and other obligations | (223,922) | (84,258) | |
Redemption of redeemable noncontrolling interests, net | (15,700) | 0 | |
Payment of early debt extinguishment costs | 0 | (251) | |
Common unit redemptions | 0 | (94) | |
Payment of financing costs | (7,744) | (1,721) | |
Contribution from noncontrolling interests | 108 | 0 | |
Distribution to noncontrolling interests | (1,249) | 0 | |
Distributions to redeemable noncontrolling interests | (384) | (12,731) | |
Payment of common dividends and distributions | (10,737) | (38) | |
Share issuance proceeds (costs), net | 1,831 | 0 | |
Other financing activities | (3,337) | 0 | |
Net cash used in financing activities | (206,134) | (99,093) | |
Net (decrease) increase in cash and cash equivalents | (13,648) | 376,905 | |
Cash, cash equivalents and restricted cash, beginning of period | [1] | 54,579 | 47,649 |
Cash, cash equivalents and restricted cash, end of period | [2] | 40,931 | 424,554 |
VERIS RESIDENTIAL, L.P. | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | (1,734) | (46,365) | |
Net (income) loss from discontinued operations | (3,219) | 2,078 | |
Income (loss) from continuing operations after income tax expense | (4,953) | (44,287) | |
Adjustments to reconcile net income (loss) to net cash provided by | |||
Depreciation and amortization, including related intangible assets | 40,417 | 43,541 | |
Amortization of deferred compensation stock units | 198 | 196 | |
Amortization of stock compensation | 7,348 | 7,339 | |
Amortization of deferred financing costs | 2,811 | 1,808 | |
Equity in earnings of unconsolidated joint ventures | (3,187) | (2,633) | |
(Gain) loss on disposition of developable land | (11,515) | 22 | |
Gain on sale of unconsolidated joint ventures | (7,100) | 0 | |
Land and other impairments, net | 0 | 3,396 | |
Loss from extinguishment of debt | 785 | 2,657 | |
Gain on insurance proceeds | (5) | (2,851) | |
Interest cost of mandatorily redeemable noncontrolling interests | 0 | 13,390 | |
Changes in operating assets and liabilities: | |||
(Increase) decrease in unbilled rents receivable, net | (247) | 1,088 | |
Decrease in deferred charges and other assets | 7,293 | 3,856 | |
Increase in accounts receivable, net | (465) | (485) | |
Decrease in accounts payable, accrued expenses and other liabilities | (4,080) | (7,341) | |
(Decrease) increase in rents received in advance and security deposits | (558) | 925 | |
(Decrease) increase in accrued interest payable | (747) | 158 | |
Net cash flows provided by operating activities - continuing operations | 25,995 | 20,779 | |
Net cash flows provided by operating activities - discontinued operations | 548 | 3,585 | |
Net cash provided by operating activities | 26,543 | 24,364 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Rental property additions, improvements and other costs | (5,670) | (6,449) | |
Development of rental property and other related costs | (3,970) | (5,647) | |
Proceeds from the sales of developable land | 88,962 | 6,528 | |
Proceeds from sale of investments in joint ventures | 6,095 | 0 | |
Repayment of notes receivable | 32 | 1,257 | |
Investment in unconsolidated joint ventures | (226) | (98) | |
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 3,281 | 6,454 | |
Proceeds from insurance settlements | 255 | 3,239 | |
Net cash provided by investing activities - continuing operations | 88,759 | 5,284 | |
Net cash provided by investing activities - discontinued operations | 77,184 | 446,350 | |
Net cash provided by investing activities | 165,943 | 451,634 | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Borrowings from revolving credit facility | 0 | 16,000 | |
Repayment of revolving credit facility | 0 | (16,000) | |
Borrowings from term loans | 55,000 | 0 | |
Repayment of mortgages, loans payable and other obligations | (223,922) | (84,258) | |
Redemption of redeemable noncontrolling interests, net | (15,700) | 0 | |
Payment of early debt extinguishment costs | 0 | (251) | |
Common unit redemptions | 0 | (94) | |
Payment of financing costs | (7,744) | (1,721) | |
Contribution from noncontrolling interests | 108 | 0 | |
Distribution to noncontrolling interests | (1,249) | 0 | |
Distributions to redeemable noncontrolling interests | (384) | (12,731) | |
Payment of common dividends and distributions | (10,737) | (38) | |
Share issuance proceeds (costs), net | 1,831 | 0 | |
Other financing activities | (3,337) | 0 | |
Net cash used in financing activities | (206,134) | (99,093) | |
Net (decrease) increase in cash and cash equivalents | (13,648) | 376,905 | |
Cash, cash equivalents and restricted cash, beginning of period | [3] | 54,579 | 47,649 |
Cash, cash equivalents and restricted cash, end of period | [4] | $ 40,931 | $ 424,554 |
[1] Includes Restricted Cash of $26,572 and $20,867 as of December 31, 2023 and 2022, respectively. Includes Restricted Cash of $22,533 and $27,614 as of June 30, 2024 and 2023, respectively. Includes Restricted Cash of $26,572 and $20,867 as of December 31, 2023 and 2022, respectively. Includes Restricted Cash of $22,533 and $27,614 as of June 30, 2024 and 2023, respectively. |
VERIS RESIDENTIAL, L.P. AND S_7
VERIS RESIDENTIAL, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted cash | $ 22,533 | $ 26,572 | $ 27,614 | $ 20,867 |
VERIS RESIDENTIAL, L.P. | ||||
Restricted cash | $ 22,533 | $ 26,572 | $ 27,614 | $ 20,867 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION ORGANIZATION Veris Residential, Inc., a Maryland corporation, together with its subsidiaries (collectively, the “General Partner”) is a fully-integrated, self-administered, self-managed real estate investment trust (“REIT”). The General Partner controls Veris Residential, L.P., a Delaware limited partnership, together with its subsidiaries (collectively, the “Operating Partnership”), as its sole general partner and owned a 91.4 and 91.4 percent common unit interest in the Operating Partnership as of June 30, 2024 and December 31, 2023, respectively. The Company owns, operates and develops multifamily rental properties located primarily in the Northeast, as well as a portfolio of non-strategic land and commercial assets. The Company is focused on conducting business in a socially, ethically, and environmentally responsible manner, while seeking to maximize value for all stakeholders. Veris Residential, Inc. was incorporated on May 24, 1994. Unless stated otherwise or the context requires, the “Company” refers to the General Partner and its subsidiaries, including the Operating Partnership and its subsidiaries. As of June 30, 2024, the Company owned or had interests in 22 multifamily rental properties, as well as non-core assets comprised of four parking/retail properties, plus developable land (collectively, the "Properties"). The Properties are comprised of: (a) 19 wholly-owned or Company-controlled properties comprised of 16 multifamily properties and three non-core assets, and (b) seven properties owned by unconsolidated joint ventures in which the Company has investment interests, including six multifamily properties and one non-core asset. The Properties are located in three states in the Northeast, plus the District of Columbia. BASIS OF PRESENTATION The accompanying consolidated financial statements reflect all accounts of the Company, including its controlled subsidiaries, which consist principally of the Operating Partnership and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. See Note 2 to the 2023 10-K: Significant Accounting Policies – Investments in Unconsolidated Joint Ventures, for the Company’s treatment of unconsolidated joint venture interests. Intercompany accounts and transactions have been eliminated. The Company consolidates variable interest entities ("VIEs") in which it is considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance; and (2) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company continuously assesses its determination of the primary beneficiary for each entity and assesses reconsideration events that may cause a change in the original determinations. The Operating Partnership is considered a VIE of the parent company, Veris Residential, Inc. As the Operating Partnership is already consolidated in the balance sheets of Veris Residential, Inc., this has no impact on the consolidated financial statements of Veris Residential, Inc. As of June 30, 2024 and December 31, 2023, the Company’s investments in consolidated real estate joint ventures, which are variable interest entities in which the Company is deemed to be the primary beneficiary, have total real estate assets of $445.8 million and $449.8 million, respectively, other assets of $6.8 million and $6.7 million, respectively, mortgages of $285.2 million and $285.2 million, respectively, and other liabilities of $15.7 million and $14.7 million, respectively. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to prior period amounts in order to conform with current period presentation, primarily related to classification of certain properties as discontinued operations. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES These financial statements should be read in conjunction with the Company’s audited Annual Report on Form 10-K for the year ended December 31, 2023, as certain disclosures in this Quarterly Report on Form 10-Q that would duplicate those included in the 10-K are not included in these financial statements. Upon completion of the sale of the last remaining non-strategic office asset in the first quarter of 2024, the Company reassessed its reportable segments as the business activities are managed and evaluated on a consolidated basis. The Company evaluates performance based upon net operating income from the combined properties and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single reportable segment for disclosure purposes in accordance with GAAP. Dividends and Distributions Payable The Board of Directors considers a variety of factors when setting the Company's dividends including the Company’s earnings, income tax projections, cash flows, financial condition, capital requirements, debt maturities, the availability of debt and equity capital, applicable REIT and legal restrictions and the general overall economic conditions and other factors. On May 6, 2024, the Company declared a $0.06 dividend per common share, which was paid on July 16, 2024 to shareholders of record as of the close of business on July 3, 2024. At June 30, 2024 and December 31, 2023, the balance of the distributions payable was $6.4 million and $5.5 million, respectively. Impact of Recently-Issued Accounting Standards |
INVESTMENTS IN RENTAL PROPERTIE
INVESTMENTS IN RENTAL PROPERTIES | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
INVESTMENTS IN RENTAL PROPERTIES | INVESTMENTS IN RENTAL PROPERTIES Dispositions of Rental Properties and Developable Land The Company disposed of the following rental properties during the six months ended June 30, 2024 (dollars in thousands) : Disposition Property Location # of Rentable Property Net Net Discontinued 03/20/24 Harborside 5 Jersey City, New Jersey 1 977,225 Office $ 81,515 $ 81,228 $ 287 Others (a) 1,261 Totals 1 977,225 $ 81,515 $ 81,228 $ 1,548 (a) Others represent resolution of estimated accrued expenses from various previously sold rental properties. The Company disposed of the following developable land holdings during the six months ended June 30, 2024 (dollars in thousands): Disposition Property Location Net Net Realized 01/03/24 2 Campus Parsippany-Troy Hills, New Jersey $ 10,155 $ 9,371 $ 784 04/16/24 107 Morgan Jersey City, New Jersey 50,630 50,929 (a) (299) 04/30/24 6 Becker Farm / 85 Livingston Roseland, NJ 27,985 16,955 11,030 Totals $ 88,770 $ 77,255 $ 11,515 (a) Carrying value reflects previously recorded impairment charges of $10.5 million . Dispositions of Unconsolidated Joint Venture In January 2024, the Company's joint venture sold the Lofts at 40 Park multifamily rental property for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million. Real Estate Held for Sale As of June 30, 2024, the Company did not have any assets classified as held for sale. As of December 31, 2023, the Company had classified as held for sale several developable land parcels, which are located in Jersey City and Parsippany, New Jersey and have been subsequently sold. The following table summarizes the real estate held for sale, net as of December 31, 2023: (dollars in thousands) December 31, Land $ 59,464 Building & Other 9,688 Less: Accumulated depreciation — Less: Cumulative unrealized losses on property held for sale (10,544) Real estate held for sale, net $ 58,608 Discontinued Operations The Company has discontinued operations related to its former New Jersey office and hotel portfolio (collectively, the “Office Portfolio”) which represented a strategic shift in the Company’s operations. See Note 7: Discontinued Operations. |
INVESTMENTS IN UNCONSOLIDATED J
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES As of June 30, 2024, the Company had an aggregate investment of approximately $120 million in its equity method joint ventures. The Company formed these ventures with unaffiliated third parties, or acquired interests in them, to develop or manage properties, or to acquire land in anticipation of possible development of rental properties. As of June 30, 2024, the unconsolidated joint ventures owned: six multifamily properties totaling 2,087 apartment units, a retail property aggregating approximately 51,000 square feet and interests and/or rights to developable land parcels able to accommodate up to 829 apartment units. The Company’s unconsolidated interests range from 20 percent to 85 percent subject to specified priority allocations in certain of the joint ventures. The amounts reflected in the following tables (except for the Company’s share of equity in earnings) are based on the historical financial information of the individual joint ventures. The Company does not record losses of the joint ventures in excess of its investment balances unless the Company is liable for the obligations of the joint venture or is otherwise committed to provide financial support to the joint venture. The outside basis portion of the Company’s investments in joint ventures is amortized over the anticipated useful lives of the underlying ventures’ tangible and intangible assets acquired and liabilities assumed. The debt of the Company’s unconsolidated joint ventures generally is non-recourse to the Company, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions, and material misrepresentations. The Company performed management, leasing, development and other services for the properties owned by the unconsolidated joint ventures, related parties to the Company, and recognized $0.8 million and $0.5 million for such services in the three months ended June 30, 2024 and 2023, respectively, and $1.6 million and $1.4 million in the six months ended June 30, 2024 and 2023, respectively. The Company had $1.0 million and $0.7 million in accounts receivable due from its unconsolidated joint ventures as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, the Company does not have any investments in unconsolidated joint ventures that are considered VIEs. The following is a summary of the Company's unconsolidated joint ventures as of June 30, 2024 and December 31, 2023 (dollars in thousands) : Property Debt Entity / Property Name Number of Company's Carrying Value As of June, 30, 2024 June 30, December 31, Balance Maturity Interest Multifamily Metropolitan and Lofts at 40 Park (b) (c) 130 units (c) $ 1,512 $ 908 $ 40,167 (d) (d) RiverTrace at Port Imperial 316 units 22.50 % 4,162 4,506 82,000 11/10/26 3.21 % The Capstone at Port Imperial 360 units 40.00 % 22,116 21,361 135,000 12/22/24 SOFR+ 1.20 % Riverpark at Harrison 141 units 45.00 % — — 30,192 07/01/35 3.19 % Station House 378 units 50.00 % 31,727 32,022 88,408 07/01/33 4.82 % Urby at Harborside (e) 762 units 85.00 % 58,778 57,060 184,309 08/01/29 5.20 % PI North - Land (b) (f) 829 potential units 20.00 % 1,678 1,678 — — — Other (g) 419 419 — — — Totals: $ 120,392 $ 117,954 $ 560,076 (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 owns a 25 percent interest in a 130-unit multifamily rental property ("The Metropolitan at 40 Park") and also owns a 25 percent interest in a 50,973 square feet retail building ("Shops at 40 Park"). In January 2024, the joint venture sold the 59-unit, five story multifamily rental property ("Lofts at 40 Park") for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million. (d) Property debt balance as of June 30, 2024 consists of: (i) an interest only loan, collateralized by the Metropolitan at 40 Park, with a balance of $34.1 million, bears interest at SOFR +2.85%, matures on October 10, 2024; and (ii) an interest only loan, collateralized by the Shops at 40 Park, with a balance of $6.1 million, bears interest at SOFR +2.00% and matures on January 9, 2025. Proceeds from the sale of Lofts at 40 Park were used to repay an interest-only loan with a balance of $17.2 million in January 2024. (e) The Company owns an 85 percent interest with shared control over major decisions such as, approval of budgets, property financings and leasing guidelines. (f) The Company owns a 20 percent residual interest in undeveloped land parcels: parcel 6 and parcel I that can accommodate the development of 829 apartment 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. The following is a summary of the Company’s equity in earnings (loss) of unconsolidated joint ventures for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Three Months Ended Six Months Ended Entity / Property Name 2024 2023 2024 2023 Multifamily Metropolitan and Lofts at 40 Park (a) $ (47) $ (326) $ (474) $ (608) RiverTrace at Port Imperial 132 144 291 282 Capstone at Port Imperial (5) (126) 44 (313) Riverpark at Harrison 68 67 136 405 Station House (133) 91 (171) (7) Urby at Harborside 3,084 2,906 3,587 2,973 PI North - Land (166) (56) (226) (96) Liberty Landing — — (3) Company's equity in earnings of unconsolidated joint ventures (b) $ 2,933 $ 2,700 $ 3,187 $ 2,633 (a) In January 2024, the joint venture sold the Lofts at 40 Park multifamily rental property for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million. (b) Amounts are net of amortization of basis differences of $154 thousand for each of the three months ended June 30, 2024 and 2023 and $309 thousand for each of the six months ended June 30, 2024 and 2023. |
DEFERRED CHARGES AND OTHER ASSE
DEFERRED CHARGES AND OTHER ASSETS, NET | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets [Abstract] | |
DEFERRED CHARGES AND OTHER ASSETS, NET | DEFERRED CHARGES AND OTHER ASSETS, NET (dollars in thousands) June 30, December 31, Deferred leasing costs $ 4,660 $ 8,324 Deferred financing costs (a) 7,543 771 12,203 9,095 Accumulated amortization (3,849) (5,063) Deferred charges, net 8,354 4,032 In-place lease values, related intangibles and other assets, net 9,734 10,034 Right of use assets (b) 5,659 6,161 Prepaid expenses and other assets, net 25,782 33,729 Total deferred charges and other assets, net $ 49,529 $ 53,956 (a) This amount relates to the deferred financing costs associated with the revolving credit facility and undrawn term loan balances. Deferred financing costs related to all other debt liabilities are netted against those debt liabilities for all periods presented. (b) This amount has a corresponding liability of $7.0 million and $7.4 million as of June 30, 2024 and December 31, 2023, respectively, which is included in Accounts payable, accrued expense and other liabilities. See Note 12: Commitments and Contingencies – Office and Ground Lease agreements for further details. DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate caps as part of its interest rate risk management strategy. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates $1.6 million will be reclassified as a decrease to interest expense. As of June 30, 2024, the Company had four interest rate caps outstanding and in effect with a notional amount of $304.0 million designated as cash flow hedges of interest rate risk. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2024 and December 31, 2023 (dollars in thousands) : Asset Derivatives designated Fair Value Balance sheet location June 30, December 31, Interest rate caps $ 4,924 $ 5,098 Deferred charges and other assets, net On June 28, 2024, the Company entered into an interest rate cap to hedge the Riverhouse 9 mortgage loan with a notional amount of $110 million, replacing the in-place interest rate cap upon expiration on July 1, 2024. The cap has a strike rate of 3.5% and expires in July 2026. Subsequent to the quarter end, the Company entered into an interest rate cap to hedge the first draw of 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. The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI on Derivative (a) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (a) (b) Total Amount of Interest Expense presented in the consolidated statements of operations Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Interest Rate Caps $ 187 $ 2,221 $ 1,152 $ 1,697 $ 1,067 $ 685 $ 2,126 $ 1,106 $ (21,676) $ (21,692) $ (43,176) $ (43,706) (a) Amounts exclude net gains of $42 thousand and $0 recognized on unconsolidated jointly owned investments during the three months ended June 30, 2024 and 2023, respectively and $1.2 million and $0 during the six months ended June 30, 2024 and 2023. (b) The gain or loss reclassified from Accumulated OCI into Income is recorded in Interest Expense. Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. Specifically, the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. |
RESTRICTED CASH
RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2024 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash generally includes resident and tenant security deposits for certain of the Company’s properties, and escrow and reserve funds for debt service, real estate taxes, property insurance, capital improvements, tenant improvements and leasing costs established pursuant to certain mortgage financing arrangements, and is comprised of the following (dollars in thousands) : June 30, December 31, Security deposits $ 10,430 $ 9,996 Escrow and other reserve funds 12,103 16,576 Total restricted cash $ 22,533 $ 26,572 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The Company's sale of its former Office Portfolio represented a strategic shift in the Company’s operations. As such, the results of these sold properties are classified as discontinued operations for all periods presented. The following table summarizes income from discontinued operations and the related realized gains (losses) and unrealized losses on disposition of rental property and impairments, net, for the three and six months ended June 30, 2024 and 2023 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total Revenues $ (277) $ 7,210 $ 2,722 $ 28,217 Operating and other expenses, net 1,639 (6,274) (645) (17,670) Depreciation and amortization — (2,128) (668) (9,094) Interest Expense — — — (822) Equity in earnings of unconsolidated joint ventures 57 — 262 — Income from discontinued operations 1,419 (1,192) 1,671 631 Realized gain (loss) on disposition of rental property — (3,488) 1,548 (2,709) Realized gain (loss), net — (3,488) 1,548 (2,709) Total discontinued operations, net $ 1,419 $ (4,680) $ 3,219 $ (2,078) |
REVOLVING CREDIT FACILITY AND T
REVOLVING CREDIT FACILITY AND TERM LOANS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND TERM LOANS | REVOLVING CREDIT FACILITY AND TERM LOANS On April 22, 2024, the Company entered into a revolving credit and term loan agreement (the "2024 Credit Agreement") with a group of eight lenders that provides for a $300 million senior secured revolving credit facility (the "2024 Revolving Credit Facility") and a $200 million senior secured term loan facility (the "2024 Term Loan"). The terms of the 2024 Revolving Credit Facility include: (1) a three-year term ending in April 2027, subject to one twelve-month extension option; (2) revolving credit loans may be made to the Company in an aggregate principal amount of up to $300 million; (3) a first priority lien on no fewer than five properties with an aggregate appraised value of at least $900 million, initially consisting of (i) The James; and the following additional identified properties to be added to the collateral pool at a subsequent date, (ii) 145 Front at City Square; (iii) Signature Place; (iv) Soho Lofts; and (v) Liberty Towers (collectively, the “Collateral Pool Properties”); and (4) a commitment fee payable quarterly ranging from 25 basis points to 35 basis points per annum on the daily unused amount of the 2024 Revolving Credit Facility. The terms of the 2024 Term Loan included: (1) a three-year term ending in April 2027, subject to one twelve-month extension option; (2) up to three delayed draws prior to April 22, 2025 of the term loan commitments up to an aggregate principal amount of $200 million; (3) a first priority lien in the Collateral Pool Properties; and (iv) a ticking fee payable quarterly equal to 35 basis points per annum on the daily unused amount of the 2024 Term Loan Facility. The Company may request increases in the principal amount of the 2024 Revolving Credit Facility and/or new term loans under the 2024 Term Loan Facility in an aggregate amount of up to $200 million, which shall be subject to commercially reasonable syndication efforts. Interest on borrowings under the 2024 Revolving Credit Facility and the 2024 Term Loan shall be based on applicable interest rate (the “Interest Rate”) plus a margin ranging from 100 basis points to 200 basis points (the “Applicable Rate”) depending on the Interest Rate elected. With respect to borrowings under the 2024 Revolving Credit Facility and the 2024 Term Loan, the Interest Rate shall be either (A) the Alternative Base Rate plus the Applicable Rate and/or (B) the Adjusted Term SOFR Rate plus the Applicable Rate or, with respect to the 2024 Revolving Credit Facility only, (C) the Adjusted Daily Effective SOFR Rate plus the Applicable Rate. As used herein: “Alternative Base Rate” means, subject to a floor of 1.00%, the highest of (i) the rate of interest last quoted by The Wall Street Journal in the U.S. as the prime rate in effect (the “Prime Rate”), (ii) the NYFRB Rate from time to time plus 0.5% and (iii) the Adjusted Term SOFR Rate for a one month interest period plus 1%; “Adjusted Term SOFR Rate” means, subject to a floor of 0.0%, the Term SOFR Rate, plus 10 basis points; and “Adjusted Daily Effective SOFR Rate” means, subject to a floor of 0.0%, for any day, the secured overnight financing rate for such business day published by the NYFRB on the NYFRB’s on the immediately succeeding business day (“SOFR”) plus 10 basis points. The General Partner and certain subsidiaries of the Operating Partnership are the guarantors of the obligations of the Operating Partnership under the 2024 Credit Agreement, and certain subsidiaries of the Operating Partnership also granted the lenders a security interest in certain subsidiary guarantors in order to further secure the obligations, liabilities and indebtedness of the Operating Partnership under the 2024 Credit Agreement. The 2024 Credit Agreement, which applies to both the 2024 Revolving Credit Facility and the 2024 Term Loan, includes certain restrictions and covenants which limit, among other things the incurrence of additional indebtedness, the incurrence of liens and the disposition of real estate properties, and which require compliance with financial ratios (prior to the Operating Partnership’s election of equity-secured financial covenants) relating to (a) the maximum total leverage ratio (65%), (b) the minimum debt service coverage ratio (1.25 times), (c) the minimum tangible net worth ratio (80% of tangible net worth as of April 22, 2024 plus 80% of net cash proceeds of equity issuances by the General Partner or the Operating Partnership), (d) the maximum unhedged variable rate debt ratio (30%), and (e) financial ratios (after the Operating Partnership's election of equity-secured financial covenants) relating to (i) the maximum total leverage ratio (60 percent), (ii) the minimum debt service coverage ratio (1.50 times), (iii) the minimum tangible net worth ratio (80% of tangible net worth as of April 22, 2024 plus 80% of net cash proceeds of equity issuances by the General Partner or the Operating Partnership), and (iv) the maximum unhedged variable rate debt ratio (30%). On July 25, 2023, the Company entered into a revolving credit and term loan agreement (“2023 Credit Agreement”) with a group of two lenders that provides for a $60 million senior secured revolving credit facility (the “2023 Revolving Credit Facility”) and a $115 million senior secured term loan facility (the “2023 Term Loan”). During the fourth quarter of 2023, the Company fully repaid the remaining balances of the 2023 Term Loan and 2023 Revolving Credit Facility. On April 22, 2024, the Company terminated the 2023 Credit Agreement for both the 2023 Credit Facility and 2023 Term Loan. On June 28, 2024, the Company drew $55 million available under the 2024 Term Loan which proceeds, together with available cash, were used to payoff the mortgage loan on Soho Lofts. Subsequent to the quarter end, the Company placed an interest rate cap on the 2024 Term Loan with a notional amount of $55 million. As of June 30, 2024, the principal balance of the 2024 Revolving Credit Facility and 2024 Term Loan was zero and $55 million, respectively. The effective interest rate applicable to the 2024 Term Loan was 6.12%. As of June 30, 2024, The James and 145 Front at City Square are encumbered by the Company's credit facilities, with a total carrying value of approximately $0.2 billion. Subsequent to quarter end, Soho Lofts was added to the collateral pool. |
MORTGAGES, LOANS PAYABLE AND OT
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS | 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, December 31, 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, December 31, Balance Weighted Average 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 % |
EMPLOYEE BENEFIT 401(k) PLANS
EMPLOYEE BENEFIT 401(k) PLANS | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT 401(k) PLANS | EMPLOYEE BENEFIT 401(k) PLANS Employees of the General Partner, who meet certain minimum age and service requirements, are eligible to participate in the Veris Residential, Inc. 401(k) Savings/Retirement Plan (the “401(k) Plan”). Eligible employees may elect to defer from one percent up to 60 percent of their annual compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. The Company may make discretionary matching or profit sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year. Participants are always 100 percent vested in their pre-tax and post-tax contributions, as well as any matching or profit sharing contributions made on their behalf by the Company. All contributions are allocated as a percentage of compensation of the eligible participants for the Plan year. The assets of the 401(k) Plan are held in trust and a separate account is established for each participant. Total expense recognized by the Company for the 401(k) Plan for the three months ended June 30, 2024 and 2023 was $139 thousand and $129 thousand, respectively and $290 thousand and $277 thousand for the six months ended June 30, 2024 and 2023, respectively. |
DISCLOSURE OF FAIR VALUE OF ASS
DISCLOSURE OF FAIR VALUE OF ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURE OF FAIR VALUE OF ASSETS AND LIABILITIES | DISCLOSURE OF FAIR VALUE OF ASSETS AND LIABILITIES The following disclosure of estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the assets and liabilities at June 30, 2024 and December 31, 2023. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Items Measured at Fair Value on a Recurring Basis Cash equivalents, receivables, notes receivables, accounts payable, and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of June 30, 2024 and December 31, 2023. The fair value of the Company’s long-term debt, consisting of mortgages, loans payable and other obligations aggregated approximately $1.6 billion and $1.8 billion as compared to the book value of approximately $1.7 billion and $1.9 billion as of June 30, 2024 and December 31, 2023, respectively. The fair value of the Company’s long-term debt was valued using level 3 inputs (as provided by ASC 820, Fair Value Measurements and Disclosures). The fair value was estimated using a discounted cash flow analysis based on the borrowing rates currently available to the Company for loans with similar terms and maturities. The fair value of the mortgage debt was determined by discounting the future contractual interest and principal payments by a market rate. Although the Company has determined that the majority of the inputs used to value its derivative financial instruments fall within level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivative financial instruments utilize level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. As a result, the Company has determined that its derivative financial instruments valuations in their entirety are classified in level 2 of the fair value hierarchy. Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) The fair value measurements used in the evaluation of the Company’s rental properties for impairment analysis are considered to be Level 3 valuations within the fair value hierarchy, as there are significant unobservable assumptions. Assumptions that were utilized in the fair value calculations include, but are not limited to, discount rates, market capitalization rates, expected lease rental rates, third-party broker information and information from potential buyers, as applicable. Valuations of real estate identified as held for sale are based on estimated sale prices, net of estimated selling costs, of such property. In the absence of an executed sales agreement with a set sales price, management’s estimate of the net sales price may be based on a number of unobservable assumptions, including, but not limited to, the Company’s estimates of future cash flows, market capitalization rates and discount rates, if applicable. For developable land, an estimated per-unit market value assumption is also considered based on development rights or plans for the land. There were no impairment charges recognized during the three and six months ended June 30, 2024 and $3.6 million and $7.0 million during the three and six months ended June 30, 2023, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES PILOT AGREEMENTS Pursuant to agreements with certain municipalities, the Company is required to make payments in lieu of property taxes (“PILOT”) on certain of its properties as follows: PILOT Payments PILOT Payments Property Name Location Asset Type PILOT Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in Thousands) (Dollars in Thousands) BLVD 401 (a) Jersey City, NJ Multifamily 4/2026 $ 701 $ 461 $ 1,143 $ 864 RiverHouse 11 at Port Imperial (b) Weehawken, NJ Multifamily 7/2033 492 405 949 779 Port Imperial 4/5 Hotel (c) Weehawken, NJ Hotel 12/2033 — — — 224 RiverHouse 9 at Port Imperial (d) Weehawken, NJ Multifamily 6/2046 451 372 858 754 Haus25 (e) Jersey City, NJ Mixed-Use 3/2047 717 573 1,414 1,147 The James (f) Park Ridge, NJ Multifamily 6/2051 210 144 416 287 Total PILOT taxes $ 2,571 $ 1,955 $ 4,780 $ 4,055 (a) The annual PILOT is equal to 10 percent percent of Gross Revenues for years 1-4, 12 percent for years 5-8 and 14 percent for years 9-10, as defined. (b) The annual PILOT is equal to 12 percent of Gross Revenues for years 1-5, 13 percent for years 6-10 and 14 percent for years 11-15, as defined. (c) The annual PILOT is equal to two percent of Total Project Costs, as defined. The property was disposed of during the first quarter of 2023. (d) The annual PILOT is equal to 11 percent of Gross Revenues for years 1-10, 12.5 percent for years 11-18 and 14 percent for years 19-25, as defined. (e) The annual PILOT is equal to seven percent of Gross Revenues, as defined, for a term of 25 years. (f) The annual PILOT is equal to 10 percent of Gross Revenues for years 1-10, 11.5 percent for years 11-21 and 12.5 percent for years 22-30, as defined. At the conclusion of the above-referenced agreements, it is expected that the properties will be assessed by the municipality and be subject to real estate taxes at the then prevailing rates. LITIGATION The Company is a defendant in litigation arising in the normal course of its business activities. Management does not believe that the ultimate resolution of these matters will have a materially adverse effect upon the Company’s financial condition taken as whole. OFFICE AND GROUND LEASE AGREEMENTS Future minimum rental payments under the terms of all non-cancelable office and ground leases under which the Company is the lessee, as of June 30, 2024 and December 31, 2023, are as follows (dollars in thousands) : Year As of June 30, 2024 Amount July 1 through December 31, 2024 $ 636 2025 1,279 2026 1,279 2027 1,280 2028 494 2029 through 2101 31,447 Total lease payments 36,415 Less: imputed interest (29,461) Total $ 6,954 Year As of December 31, 2023 Amount 2024 $ 1,272 2025 1,279 2026 1,279 2027 1,280 2028 494 2029 through 2101 31,447 Total lease payments 37,051 Less: imputed interest (29,700) Total $ 7,351 Office and ground lease expenses incurred by the Company amounted to $629 thousand and $582 thousand for the three months ended June 30, 2024 and 2023, respectively and $1.3 million and $847 thousand for the six months ended June 30, 2024 and 2023, respectively. The Company had capitalized operating leases for one office and two ground leases, which had balances of $3.6 million and $2.0 million, respectively, at June 30, 2024. Such amounts represent the net present value (“NPV”) of future payments detailed above. The one office and two ground leases used incremental borrowing rates of 6.0 percent and 7.6 percent, respectively, to arrive at the NPV and have weighted average remaining lease terms of 3.8 years and 77.1 years, respectively. These rates were arrived at by adjusting the fixed rates of the Company’s mortgage debt with debt having terms approximating the remaining lease term of the Company’s office and ground leases and calculating notional rates for fully-collateralized loans. The initial recognition of a lease liability and right-of-use asset for the office lease of $4.7 million is a noncash activity during the six months ended June 30, 2023. OTHER During the first quarter of 2024, the Company determined that the applicable conditions required to earn the stay-on award agreements with 20 employees were satisfied, and as a result, the corresponding cash and stock awards were deemed earned and payable. The total cost of such awards was approximately $2.6 million, including the issuance of 42,095 shares of the Company’s common stock, of which $1.3 million and $1.3 million was recorded in General and administrative and Real estate services expenses, respectively, on the Company's Consolidated Statements of Operations during the six months ended June 30, 2024. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2024 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS Rockpoint Transactions On April 5, 2023, Veris Residential Trust (“VRT”), the Company’s subsidiary through which the Company conducts its multifamily residential real estate operations, exercised its right to purchase and redeem direct and indirect interests (the “Put/Call Interests”) in preferred units of limited partnership interests in VRLP (the "Preferred Units") from certain affiliates of Rockpoint Group, L.L.C. (Rockpoint Group, L.L.C. and its affiliates, collectively, “Rockpoint”). On April 6, 2023, Rockpoint exercised its right under the Veris Residential Partners, L.P. (“VRLP”) Partnership Agreement to defer the closing of VRT’s purchase and redemption of the Put/Call Interests for one year. The exercise of the call right caused Rockpoint's interests to be reclassified as mandatorily redeemable noncontrolling interests under the accounting guidance, and included within the Total liabilities on the Company's Consolidated Balance Sheets. The impact of subsequent changes in redemption value at each period end is recorded as interest cost. The carrying amount is not reduced below the initial measurement amount. On July 25, 2023, VRT and the Operating Partnership entered into the Rockpoint Purchase Agreement with Rockpoint pursuant to which VRT and the Operating Partnership acquired from Rockpoint all of the Preferred Units that constituted the Put/Call Interests for an aggregate purchase price of approximately $520 million. Under the terms of the Rockpoint Purchase Agreement, the Original Investment Agreement and the Add On Investment Agreement have been terminated and are of no further force and effect (other than certain tax and related indemnification rights and obligations), Rockpoint ceased to be, direct or indirect, as applicable, members of VRLP, and all obligations of VRT and VRLP and all rights, title and interest of Rockpoint in and pursuant to the VRLP Partnership Agreement (except for certain tax, confidentiality and indemnification rights and obligations) and all other agreements by and between the General Partner, the Operating Partnership, VRT, VRLP and Rockpoint were terminated, including without limitation all provisions relating to the valuation and repurchase of the Put/Call Interests. As a result of the redemption, the Company recorded the change in redemption value of approximately $34.8 million as Interest cost of mandatorily redeemable noncontrolling interests on the Company's Consolidated Statements of Operations. Preferred Units The Operating Partnership has 9,213 Series A-1 Preferred Units (the "Preferred Units") outstanding as of June 30, 2024. The Series A Preferred Units were all redeemed as of March 13, 2024. The key terms of the Preferred Units are summarized as follows: Series A-1 Preferred Units Issuance date February and April, 2017 Number of units issued 9,213 Stated value per unit $1,000 Annual dividend rate paid quarterly (a) Conversion rate 27.936 Conversion value per unit $35.80 Maximum common unit conversion 257,375 (a) Series A-1 Preferred Units pay dividends quarterly at an annual rate equal to the greater of (x) 3.50 percent, or (y) the then-effective annual dividend yield on the General Partner’s common stock. The Preferred Units have a liquidation and dividend preference senior to the common units and include customary anti-dilution protections for stock splits and similar events. The Preferred Units are convertible into common units of limited partnership interests of the Operating Partnership and are redeemable for cash at their stated value at the option of the holder. Summary of Redeemable Noncontrolling Interest s The following tables set forth the changes in Redeemable noncontrolling interests within the mezzanine section for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Series A-1 Preferred Units In VRLP Balance at April 1, 2024 $ 9,294 Income Attributed to Noncontrolling Interests 81 Distributions (81) Balance at June 30, 2024 $ 9,294 Series A and Balance at January 1, 2024 $ 24,999 Redemption/Payout (15,700) Income Attributed to Noncontrolling Interests 378 Distributions (383) Balance at June 30, 2024 $ 9,294 Series A and Rockpoint Total Balance at April 1, 2023 $ 40,231 $ 479,977 $ 520,208 Income Attributed to Noncontrolling Interests 350 267 617 Distributions (350) (267) (617) Reclassification to Mandatorily Redeemable Non-controlling Interests — (479,977) (479,977) Balance at June 30, 2023 $ 40,231 $ — $ 40,231 Series A and Rockpoint Total Balance at January 1, 2023 $ 40,231 $ 475,000 $ 515,231 Income Attributed to Noncontrolling Interests 700 6,283 6,983 Distributions (700) (6,283) (6,983) Redemption Value Adjustment — 4,977 4,977 Reclassification to Mandatorily Redeemable Non-controlling Interests — (479,977) (479,977) Balance at June 30, 2023 $ 40,231 $ — $ 40,231 |
VERIS RESIDENTIAL, INC. STOCKHO
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL | VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL To maintain its qualification as a REIT, not more than 50 percent in value of the outstanding shares of the General Partner may be owned, directly or indirectly, by five or fewer individuals at any time during the last half of any taxable year of the General Partner, other than its initial taxable year (defined to include certain entities), applying certain constructive ownership rules. To help ensure that the General Partner will not fail this test, the General Partner’s Charter provides, among other things, certain restrictions on the transfer of common stock to prevent further concentration of stock ownership. Moreover, to evidence compliance with these requirements, the General Partner must maintain records that disclose the actual ownership of its outstanding common stock and demands written statements each year from the holders of record of designated percentages of its common stock requesting the disclosure of the beneficial owners of such common stock. Partners’ Capital in the accompanying consolidated financial statements relates to (a) General Partners’ capital consisting of common units in the Operating Partnership held by the General Partner, and (b) Limited Partners’ capital consisting of common units and LTIP units held by the limited partners. See Note 15: Noncontrolling Interests in Subsidiaries. The following table reflects the activity of the General Partner capital for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Three Months Ended Six Months Ended 2024 2023 2024 2023 Opening Balance $ 1,132,231 $ 1,216,530 $ 1,137,478 $ 1,235,685 Net income (loss) available to common shareholders 2,922 (27,434) (981) (47,407) Shares issued under ATM Program, net 1,886 — 1,831 — Common stock distributions (5,610) — (10,594) — Redeemable noncontrolling interests — — — (4,516) Redemption of common units for common stock 113 4,192 113 9,051 Shares issued under Dividend Reinvestment and Stock Purchase Plan 3 1 4 2 Directors' deferred compensation plan 99 86 198 196 Stock Compensation 3,199 3,381 7,399 6,852 Cancellation of common stock (1,807) (219) (3,341) (466) Other comprehensive (loss) income (766) 1,399 232 541 Rebalancing of ownership percent between parent and subsidiaries 154 (983) 85 (2,985) Balance at June 30 $ 1,132,424 $ 1,196,953 $ 1,132,424 $ 1,196,953 Any transactions resulting in the issuance of additional common and preferred stock of the General Partner result in a corresponding issuance by the Operating Partnership of an equivalent amount of common and preferred units to the General Partner. ATM PROGRAM On November 15, 2023, the Company reestablished a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks, pursuant to which shares of our common stock having an aggregate gross sales price of up to $100 million may be sold (i) directly through or to the banks acting as sales agents or as principal for their own accounts or (ii) through or to participating banks or their affiliates acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement (“ATM Forwards”). Effective as of that date, the Company terminated a prior ATM Program that was established on December 13, 2021 , under which we were able to offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $200 million, with a syndicate of banks. During the quarter ended June 30, 2024, the Company sold 133,759 shares pursuant to the ATM Program, generating net proceeds of $1.9 million. DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN The General Partner has a Dividend Reinvestment and Stock Purchase Plan (the “DRIP”) which commenced in March 1999 under which approximately 5.4 million shares of the General Partner’s common stock have been reserved for future issuance. The DRIP provides for automatic reinvestment of all or a portion of a participant’s dividends from the General Partner’s shares of common stock. The DRIP also permits participants to make optional cash investments up to $5,000 a month without restriction and, if the Company waives this limit, for additional amounts subject to certain restrictions and other conditions set forth in the DRIP prospectus filed as part of the Company’s effective registration statement on Form S-3 filed with the SEC for the approximately 5.4 million shares of the General Partner’s common stock reserved for issuance under the DRIP. INCENTIVE STOCK PLAN In May 2013, the General Partner established the 2013 Incentive Stock Plan under which a total of 4,600,000 shares has been reserved for issuance. In June 2021, stockholders of the Company approved the Amended and Restated 2013 Incentive Stock Plan (as so amended and restated, the "2013 Plan") to increase the total shares reserved for issuance under the plan from 4,600,000 to 6,565,000 shares. In June 2024, stockholders of the Company approved the termination of the 2013 Plan and the establishment of the 2024 Incentive Stock Plan (the "2024 Plan"), under which a total of 2,885,207 shares has been reserved for issuance. No new awards will be granted under the 2013 Plan. Stock Options As of June 30, 2024, the Company has 2,330,000 options granted and outstanding, of which 2,246,666 are vested. There were no stock options exercised under any stock option plans for the six months ended June 30, 2024 and 2023, respectively. The Company has a policy of issuing new shares to satisfy stock option exercises. As of June 30, 2024 and December 31, 2023, the stock options outstanding had a weighted average remaining contractual life of approximately 3.1 years and 3.6 years, respectively. The Company recognized stock compensation expense related to stock options of $92 thousand and $322 thousand for the three months ended June 30, 2024 and 2023, respectively and $429 thousand and $644 thousand for the six months ended June 30, 2024 and 2023, respectively. Restricted Stock Awards The Company has issued Restricted Stock Awards ("RSAs") in the form of restricted stock units to non-employee members of the Board of Directors, which allow the holders to each receive shares of the Company’s common stock following a one-year vesting period. Vesting of the RSAs issued is based on time and service. On June 26, 2024, the Company issued RSAs to non-employee members of the Board of Directors, of which 71,232 unvested RSAs were outstanding at June 30, 2024. The Company recognized stock compensation expense related to RSAs of $201 thousand and $187 thousand for the three months ended June 30, 2024 and 2023, respectively and $431 thousand and $362 thousand for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the Company had $1.0 million of total unrecognized compensation cost related to unvested RSAs granted under the Company’s stock compensation plans. That cost is expected to be recognized over a remaining weighted average period of 1 year. All currently outstanding and unvested RSAs provided to the non-employee members of the Board of Directors were issued under the 2024 Plan. Long-Term Incentive Plan Awards The Company has granted long-term incentive plans awards (“LTIP Awards”) to executive officers, senior management, and certain other employees of the Company. LTIP Awards generally are granted in the form of restricted stock units (each, an “RSU” and collectively, the “RSU LTIP Awards”) and constitute awards under the 2013 Plan and 2024 Plan. A portion of the RSUs are subject to time-based vesting conditions and will vest over a three-year period ("TRSUs"). As of June 30, 2024, there are 895,670 TRSUs outstanding and unvested. Additionally, in April 2022, the General Partner granted 59,707 TRSUs subject to time-vesting conditions, vesting over three years, to three executive officers as “inducement awards” intended to comply with New York Stock Exchange Rule 303A.08. As of June 30, 2024, there are 14,467 TRSUs classified as inducement awards outstanding and unvested. Another portion of the annual LTIP Awards have market-based vesting conditions ("PRSUs"), and recipients will only earn the full amount of the PRSUs if, over the three-year performance period, the General Partner achieves an absolute Total Shareholder Return ("TSR") target and if the General Partner’s relative TSR as compared to a group of peer REITs exceeds certain thresholds. The market-based award targets are determined annually by the compensation committee of the Board of Directors. As of June 30, 2024, there are 812,609 PRSUs outstanding and unvested. In addition, the Company has granted RSUs with a three-year cliff vest subject to the achievement of adjusted funds from operations targets ("OPRSUs"). As of June 30, 2024, there are 763,452 OPRSUs outstanding and unvested. The Company recognized stock compensation expense related to LTIP awards of $2.9 million and $3.1 million for the three months ended June 30, 2024 and 2023, respectively and $6.5 million and $6.3 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the Company had $14.5 million of total unrecognized compensation cost related to unvested LTIP Awards granted under the Company’s stock compensation plans. That cost is expected to be recognized over a remaining weighted average period of 2.2 years. All currently outstanding and unvested RSU LTIP Awards provided to the executive officers, senior management, and certain other employees were issued under the 2013 Plan or as inducement awards. Deferred Stock Compensation Plan For Directors The Amended and Restated Deferred Compensation Plan for Directors, which commenced January 1, 1999, allows non-employee directors of the Company to elect to defer up to 100 percent of their annual retainer fee into deferred stock units. The deferred stock units are convertible into an equal number of shares of common stock upon the directors’ termination of service from the Board of Directors or a change in control of the Company, as defined in the plan. Deferred stock units are credited to each director quarterly using the closing price of the Company’s common stock on the applicable dividend record date for the respective quarter. Each participating director’s account is also credited for an equivalent amount of deferred stock units based on the dividend rate for each quarter. During the three months ended June 30, 2024 and 2023, deferred stock units earned were 6,951 and 5,379, respectively. During the six months ended June 30, 2024, and 2023, 14,060 and 12,950 deferred stock units were earned, respectively. As of June 30, 2024 and December 31, 2023, there were 92,035 and 77,975 deferred stock units outstanding, respectively. EARNINGS PER SHARE/UNIT Basic EPS or EPU excludes dilution and is computed by dividing net income available to common shareholders or unitholders by the weighted average number of shares or units outstanding for the period. Diluted EPS or EPU reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In the calculation of basic and diluted EPS and EPU, a redemption value adjustment of redeemable noncontrolling interests attributable to common shareholders or unitholders is included in the calculation to arrive at the numerator of net income (loss) available to common shareholders or unitholders. The following information presents the Company’s results for the three and six months ended June 30, 2024 and 2023 in accordance with ASC 260, Earnings Per Share (dollars in thousands, except per share amounts) : Veris Residential, Inc.: Three Months Ended Six Months Ended Computation of Basic EPS 2024 2023 2024 2023 Income (loss) from continuing operations after income tax expense $ 1,316 $ (25,455) $ (4,953) $ (44,287) Add (deduct): Noncontrolling interests in consolidated joint ventures 543 636 1,038 1,223 Add (deduct): Noncontrolling interests in Operating Partnership (153) 2,265 370 4,542 Add (deduct): Redeemable noncontrolling interests (81) (617) (378) (6,983) Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to common shareholders — — — (4,516) Income (loss) from continuing operations available to common shareholders $ 1,625 $ (23,171) $ (3,923) $ (50,021) Income (loss) from discontinued operations available to common shareholders 1,297 (4,263) 2,942 (1,902) Net income (loss) available to common shareholders for basic earnings per share $ 2,922 $ (27,434) $ (981) $ (51,923) Weighted average common shares 92,663 91,873 92,469 91,551 Basic EPS : Income (loss) from continuing operations available to common shareholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to common shareholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common shareholders $ 0.03 $ (0.30) $ (0.01) $ (0.56) Three Months Ended Six Months Ended Computation of Diluted EPS 2024 2023 2024 2023 Net income (loss) from continuing operations available to common shareholders $ 1,625 $ (23,171) $ (3,923) $ (50,021) Add (deduct): Noncontrolling interests in Operating Partnership 153 (2,265) (370) (4,542) Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to the Operating Partnership unitholders — — — (461) Income (loss) from continuing operations for diluted earnings per share $ 1,778 $ (25,436) $ (4,293) $ (55,024) Income (loss) from discontinued operations for diluted earnings per share 1,419 (4,680) 3,219 (2,078) Net income (loss) available for diluted earnings per share $ 3,197 $ (30,116) $ (1,074) $ (57,102) Weighted average common shares 101,952 100,854 101,160 100,691 Diluted EPS : Income (loss) from continuing operations available to common shareholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to common shareholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common shareholders $ 0.03 $ (0.30) $ (0.01) $ (0.56) The following schedule reconciles the weighted average shares used in the basic EPS calculation to the shares used in the diluted EPS calculation (in thousands) : Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic EPS shares 92,663 91,873 92,469 91,551 Add: Operating Partnership – common and vested LTIP units 8,689 8,981 8,691 9,140 Add: Dilutive effect of stock-based compensation awards 600 — — — Diluted EPS Shares 101,952 100,854 101,160 100,691 Veris Residential, L.P.: Three Months Ended Six Months Ended Computation of Basic EPU 2024 2023 2024 2023 Income (loss) from continuing operations after income tax expense $ 1,316 $ (25,455) $ (4,953) $ (44,287) Add (deduct): Noncontrolling interests in consolidated joint ventures 543 636 1,038 1,223 Add (deduct): Redeemable noncontrolling interests (81) (617) (378) (6,983) Add (deduct): Redemption value adjustment of redeemable noncontrolling interests — — — (4,977) Income (loss) from continuing operations available to unitholders $ 1,778 $ (25,436) $ (4,293) $ (55,024) Income (loss) from discontinued operations available to unitholders 1,419 (4,680) 3,219 (2,078) Net income (loss) available to common unitholders for basic earnings per unit $ 3,197 $ (30,116) $ (1,074) $ (57,102) Weighted average common units 101,352 100,854 101,160 100,691 Basic EPU : Income (loss) from continuing operations available to unitholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to unitholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common unitholders for basic earnings per unit $ 0.03 $ (0.30) $ (0.01) $ (0.56) Three Months Ended Six Months Ended Computation of Diluted EPU 2024 2023 2024 2023 Income (loss) from continuing operations available to common unitholders $ 1,778 $ (25,436) $ (4,293) $ (55,024) Income (loss) from discontinued operations for diluted earnings per unit 1,419 (4,680) 3,219 (2,078) Net income (loss) available to common unitholders for diluted earnings per unit $ 3,197 $ (30,116) $ (1,074) $ (57,102) Weighted average common unit 101,952 100,854 101,160 100,691 Diluted EPU : Income (loss) from continuing operations available to common unitholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to common unitholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common unitholders $ 0.03 $ (0.30) $ (0.01) $ (0.56) The following schedule reconciles the weighted average units used in the basic EPU calculation to the units used in the diluted EPU calculation (in thousands) : Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic EPU units 101,352 100,854 101,160 100,691 Add: Dilutive effect of stock-based compensation awards 600 — — — Diluted EPU Units 101,952 100,854 101,160 100,691 |
NONCONTROLLING INTERESTS IN SUB
NONCONTROLLING INTERESTS IN SUBSIDIARIES | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS IN SUBSIDIARIES | NONCONTROLLING INTERESTS IN SUBSIDIARIES Noncontrolling interests in subsidiaries in the accompanying consolidated financial statements relate to (i) common units (“Common Units”) and LTIP units in the Operating Partnership, held by parties other than the General Partner (“Limited Partners”), and (ii) interests in consolidated joint ventures for the portion of such ventures not owned by the Company. The following table reflects the activity of noncontrolling interests for the three and six months ended June 30, 2024 and 2023, respectively : Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Opening Balance $ 139,985 $ 157,439 $ 142,075 $ 163,652 Net (loss) income (187) (2,701) (753) 1,042 Unit distributions (521) — (978) — Redeemable noncontrolling interests (81) (617) (378) (7,444) Change in noncontrolling interests in consolidated joint ventures (209) — (1,142) (562) Redemption of common units for common stock (113) (4,192) (113) (9,051) Redemption of common units — (78) — (94) Stock compensation — 94 — 487 Other comprehensive (loss) income (72) 137 22 50 Rebalancing of ownership percentage between parent and subsidiaries (154) 983 (85) 2,985 Balance at June 30 $ 138,648 $ 151,065 $ 138,648 $ 151,065 Pursuant to ASC 810, Consolidation, on the accounting and reporting for noncontrolling interests and changes in ownership interests of a subsidiary, changes in a parent’s ownership interest (and transactions with noncontrolling interests unitholders in the subsidiary) while the parent retains its controlling interest in its subsidiary should be accounted for as equity transactions. The carrying value of the noncontrolling interests shall be adjusted to reflect the change in its ownership interest in the subsidiary, with the offset to equity attributable to the parent. Accordingly, as a result of equity transactions which caused changes in ownership percentages between Veris Residential, Inc. stockholders’ equity and noncontrolling interests in the Operating Partnership that occurred during the six months ended June 30, 2024, the Company has decreased noncontrolling interests in the Operating Partnership and increased additional paid-in capital in Veris Residential, Inc. stockholders’ equity by approximately $0.1 million as of June 30, 2024. NONCONTROLLING INTERESTS IN OPERATING PARTNERSHIP (applicable only to General Partner) Common Units During the six months ended June 30, 2024, the Company redeemed 9,230 common units for common shares, at their fair value of $113 thousand. Certain individuals and entities own common units in the Operating Partnership. A common unit and a share of Common Stock of the General Partner have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the Operating Partnership. Common unitholders have the right to redeem their common units, subject to certain restrictions. The redemption is required to be satisfied in shares of Common Stock, cash, or a combination thereof, calculated as follows: one share of the General Partner’s Common Stock, or cash equal to the fair market value of a share of the General Partner’s Common Stock at the time of redemption, for each common unit. The General Partner, in its sole discretion, determines the form of redemption of common units (i.e., whether a common unitholder receives Common Stock, cash, or any combination thereof). If the General Partner elects to satisfy the redemption with shares of Common Stock as opposed to cash, it is obligated to issue shares of its Common Stock to the redeeming unitholder. Regardless of the rights described above, the common unitholders may not put their units for cash to the General Partner or the Operating Partnership under any circumstances. When a unitholder redeems a common unit, noncontrolling interests in the Operating Partnership is reduced and Veris Residential, Inc. Stockholders’ equity is increased. LTIP Units After LTIP Units are fully vested, LTIP Units may be converted on a one-for-one basis into common units. Common units in turn have a one-for-one relationship in value with shares of the General Partner’s common stock, and are redeemable on a one-for-one basis for cash or, at the election of the Company, shares of the General Partner’s common stock. As of June 30, 2024, there are no unvested LTIP Units. Noncontrolling Interests Ownership in Operating Partnership As of June 30, 2024 and December 31, 2023, the noncontrolling interests common unit and LTIP units holders owned 8.6 percent and 8.6 percent of the Operating Partnership, respectively. NONCONTROLLING INTERESTS IN CONSOLIDATED JOINT VENTURES (applicable to General Partner and Operating Partnership) The Company consolidates certain joint ventures in which it has ownership interests. Various entities and/or individuals hold noncontrolling interests in these ventures. PARTICIPATION RIGHTS The Company’s interests in a potential future development provides for the initial distributions of net cash flow solely to the Company, and thereafter, other parties have participation rights in 50 percent of the excess net cash flow remaining after the distribution to the Company of the aggregate amount equal to the sum of: (a) the Company’s capital contributions, plus (b) an IRR of 10 percent per annum. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Dividends and Distributions Payable | Dividends and Distributions Payable The Board of Directors considers a variety of factors when setting the Company's dividends including the Company’s earnings, income tax projections, cash flows, financial condition, capital requirements, debt maturities, the availability of debt and equity capital, applicable REIT and legal restrictions and the general overall economic conditions and other factors. On May 6, 2024, the Company declared a $0.06 dividend per common share, which was paid on July 16, 2024 to shareholders of record as of the close of business on July 3, 2024. At June 30, 2024 and December 31, 2023, the balance of the distributions payable was $6.4 million and $5.5 million, respectively. |
Impact of Recently-Issued Accounting Standards | Impact of Recently-Issued Accounting Standards |
INVESTMENTS IN RENTAL PROPERT_2
INVESTMENTS IN RENTAL PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule Of Real Estate Properties Sold And Disposed | The Company disposed of the following rental properties during the six months ended June 30, 2024 (dollars in thousands) : Disposition Property Location # of Rentable Property Net Net Discontinued 03/20/24 Harborside 5 Jersey City, New Jersey 1 977,225 Office $ 81,515 $ 81,228 $ 287 Others (a) 1,261 Totals 1 977,225 $ 81,515 $ 81,228 $ 1,548 (a) Others represent resolution of estimated accrued expenses from various previously sold rental properties. |
Schedule Of Disposed Developable Land | The Company disposed of the following developable land holdings during the six months ended June 30, 2024 (dollars in thousands): Disposition Property Location Net Net Realized 01/03/24 2 Campus Parsippany-Troy Hills, New Jersey $ 10,155 $ 9,371 $ 784 04/16/24 107 Morgan Jersey City, New Jersey 50,630 50,929 (a) (299) 04/30/24 6 Becker Farm / 85 Livingston Roseland, NJ 27,985 16,955 11,030 Totals $ 88,770 $ 77,255 $ 11,515 (a) Carrying value reflects previously recorded impairment charges of $10.5 million . |
Schedule Of Assets Held For Sale | The following table summarizes the real estate held for sale, net as of December 31, 2023: (dollars in thousands) December 31, Land $ 59,464 Building & Other 9,688 Less: Accumulated depreciation — Less: Cumulative unrealized losses on property held for sale (10,544) Real estate held for sale, net $ 58,608 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Unconsolidated Joint Ventures | The following is a summary of the Company's unconsolidated joint ventures as of June 30, 2024 and December 31, 2023 (dollars in thousands) : Property Debt Entity / Property Name Number of Company's Carrying Value As of June, 30, 2024 June 30, December 31, Balance Maturity Interest Multifamily Metropolitan and Lofts at 40 Park (b) (c) 130 units (c) $ 1,512 $ 908 $ 40,167 (d) (d) RiverTrace at Port Imperial 316 units 22.50 % 4,162 4,506 82,000 11/10/26 3.21 % The Capstone at Port Imperial 360 units 40.00 % 22,116 21,361 135,000 12/22/24 SOFR+ 1.20 % Riverpark at Harrison 141 units 45.00 % — — 30,192 07/01/35 3.19 % Station House 378 units 50.00 % 31,727 32,022 88,408 07/01/33 4.82 % Urby at Harborside (e) 762 units 85.00 % 58,778 57,060 184,309 08/01/29 5.20 % PI North - Land (b) (f) 829 potential units 20.00 % 1,678 1,678 — — — Other (g) 419 419 — — — Totals: $ 120,392 $ 117,954 $ 560,076 (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 owns a 25 percent interest in a 130-unit multifamily rental property ("The Metropolitan at 40 Park") and also owns a 25 percent interest in a 50,973 square feet retail building ("Shops at 40 Park"). In January 2024, the joint venture sold the 59-unit, five story multifamily rental property ("Lofts at 40 Park") for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million. (d) Property debt balance as of June 30, 2024 consists of: (i) an interest only loan, collateralized by the Metropolitan at 40 Park, with a balance of $34.1 million, bears interest at SOFR +2.85%, matures on October 10, 2024; and (ii) an interest only loan, collateralized by the Shops at 40 Park, with a balance of $6.1 million, bears interest at SOFR +2.00% and matures on January 9, 2025. Proceeds from the sale of Lofts at 40 Park were used to repay an interest-only loan with a balance of $17.2 million in January 2024. (e) The Company owns an 85 percent interest with shared control over major decisions such as, approval of budgets, property financings and leasing guidelines. (f) The Company owns a 20 percent residual interest in undeveloped land parcels: parcel 6 and parcel I that can accommodate the development of 829 apartment units. (g) |
Schedule 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 six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Three Months Ended Six Months Ended Entity / Property Name 2024 2023 2024 2023 Multifamily Metropolitan and Lofts at 40 Park (a) $ (47) $ (326) $ (474) $ (608) RiverTrace at Port Imperial 132 144 291 282 Capstone at Port Imperial (5) (126) 44 (313) Riverpark at Harrison 68 67 136 405 Station House (133) 91 (171) (7) Urby at Harborside 3,084 2,906 3,587 2,973 PI North - Land (166) (56) (226) (96) Liberty Landing — — (3) Company's equity in earnings of unconsolidated joint ventures (b) $ 2,933 $ 2,700 $ 3,187 $ 2,633 (a) In January 2024, the joint venture sold the Lofts at 40 Park multifamily rental property for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million. (b) Amounts are net of amortization of basis differences of $154 thousand for each of the three months ended June 30, 2024 and 2023 and $309 thousand for each of the six months ended June 30, 2024 and 2023. |
DEFERRED CHARGES AND OTHER AS_2
DEFERRED CHARGES AND OTHER ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets [Abstract] | |
Schedule Of Deferred Charges, Goodwill And Other Assets | (dollars in thousands) June 30, December 31, Deferred leasing costs $ 4,660 $ 8,324 Deferred financing costs (a) 7,543 771 12,203 9,095 Accumulated amortization (3,849) (5,063) Deferred charges, net 8,354 4,032 In-place lease values, related intangibles and other assets, net 9,734 10,034 Right of use assets (b) 5,659 6,161 Prepaid expenses and other assets, net 25,782 33,729 Total deferred charges and other assets, net $ 49,529 $ 53,956 (a) This amount relates to the deferred financing costs associated with the revolving credit facility and undrawn term loan balances. Deferred financing costs related to all other debt liabilities are netted against those debt liabilities for all periods presented. (b) This amount has a corresponding liability of $7.0 million and $7.4 million as of June 30, 2024 and December 31, 2023, respectively, which is included in Accounts payable, accrued expense and other liabilities. See Note 12: Commitments and Contingencies – Office and Ground Lease agreements for further details. |
Schedule Of Fair Value Of The Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2024 and December 31, 2023 (dollars in thousands) : Asset Derivatives designated Fair Value Balance sheet location June 30, December 31, Interest rate caps $ 4,924 $ 5,098 Deferred charges and other assets, net |
Schedule Of Cash Flow Hedging, Derivative Financial Instruments On The Income Statement | The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI on Derivative (a) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (a) (b) Total Amount of Interest Expense presented in the consolidated statements of operations Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Interest Rate Caps $ 187 $ 2,221 $ 1,152 $ 1,697 $ 1,067 $ 685 $ 2,126 $ 1,106 $ (21,676) $ (21,692) $ (43,176) $ (43,706) (a) Amounts exclude net gains of $42 thousand and $0 recognized on unconsolidated jointly owned investments during the three months ended June 30, 2024 and 2023, respectively and $1.2 million and $0 during the six months ended June 30, 2024 and 2023. (b) The gain or loss reclassified from Accumulated OCI into Income is recorded in Interest Expense. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restricted Cash and Investments [Abstract] | |
Schedule Of Restricted Cash | Restricted cash generally includes resident and tenant security deposits for certain of the Company’s properties, and escrow and reserve funds for debt service, real estate taxes, property insurance, capital improvements, tenant improvements and leasing costs established pursuant to certain mortgage financing arrangements, and is comprised of the following (dollars in thousands) : June 30, December 31, Security deposits $ 10,430 $ 9,996 Escrow and other reserve funds 12,103 16,576 Total restricted cash $ 22,533 $ 26,572 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Income (Loss) from Discontinued Operations and Related Realized and Unrealized Gains (Losses) | The following table summarizes income from discontinued operations and the related realized gains (losses) and unrealized losses on disposition of rental property and impairments, net, for the three and six months ended June 30, 2024 and 2023 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total Revenues $ (277) $ 7,210 $ 2,722 $ 28,217 Operating and other expenses, net 1,639 (6,274) (645) (17,670) Depreciation and amortization — (2,128) (668) (9,094) Interest Expense — — — (822) Equity in earnings of unconsolidated joint ventures 57 — 262 — Income from discontinued operations 1,419 (1,192) 1,671 631 Realized gain (loss) on disposition of rental property — (3,488) 1,548 (2,709) Realized gain (loss), net — (3,488) 1,548 (2,709) Total discontinued operations, net $ 1,419 $ (4,680) $ 3,219 $ (2,078) |
MORTGAGES, LOANS PAYABLE AND _2
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages, Loans Payable and Other Obligations | 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, December 31, 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. |
Schedule of Indebtedness | Summary of Indebtedness (dollars in thousands) June 30, December 31, Balance Weighted Average 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 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Tax Abatement Agreements | Pursuant to agreements with certain municipalities, the Company is required to make payments in lieu of property taxes (“PILOT”) on certain of its properties as follows: PILOT Payments PILOT Payments Property Name Location Asset Type PILOT Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in Thousands) (Dollars in Thousands) BLVD 401 (a) Jersey City, NJ Multifamily 4/2026 $ 701 $ 461 $ 1,143 $ 864 RiverHouse 11 at Port Imperial (b) Weehawken, NJ Multifamily 7/2033 492 405 949 779 Port Imperial 4/5 Hotel (c) Weehawken, NJ Hotel 12/2033 — — — 224 RiverHouse 9 at Port Imperial (d) Weehawken, NJ Multifamily 6/2046 451 372 858 754 Haus25 (e) Jersey City, NJ Mixed-Use 3/2047 717 573 1,414 1,147 The James (f) Park Ridge, NJ Multifamily 6/2051 210 144 416 287 Total PILOT taxes $ 2,571 $ 1,955 $ 4,780 $ 4,055 (a) The annual PILOT is equal to 10 percent percent of Gross Revenues for years 1-4, 12 percent for years 5-8 and 14 percent for years 9-10, as defined. (b) The annual PILOT is equal to 12 percent of Gross Revenues for years 1-5, 13 percent for years 6-10 and 14 percent for years 11-15, as defined. (c) The annual PILOT is equal to two percent of Total Project Costs, as defined. The property was disposed of during the first quarter of 2023. (d) The annual PILOT is equal to 11 percent of Gross Revenues for years 1-10, 12.5 percent for years 11-18 and 14 percent for years 19-25, as defined. (e) The annual PILOT is equal to seven percent of Gross Revenues, as defined, for a term of 25 years. (f) |
Schedule of Future Minimum Rental Payments of Ground Leases | Future minimum rental payments under the terms of all non-cancelable office and ground leases under which the Company is the lessee, as of June 30, 2024 and December 31, 2023, are as follows (dollars in thousands) : Year As of June 30, 2024 Amount July 1 through December 31, 2024 $ 636 2025 1,279 2026 1,279 2027 1,280 2028 494 2029 through 2101 31,447 Total lease payments 36,415 Less: imputed interest (29,461) Total $ 6,954 Year As of December 31, 2023 Amount 2024 $ 1,272 2025 1,279 2026 1,279 2027 1,280 2028 494 2029 through 2101 31,447 Total lease payments 37,051 Less: imputed interest (29,700) Total $ 7,351 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Preferred Units | The key terms of the Preferred Units are summarized as follows: Series A-1 Preferred Units Issuance date February and April, 2017 Number of units issued 9,213 Stated value per unit $1,000 Annual dividend rate paid quarterly (a) Conversion rate 27.936 Conversion value per unit $35.80 Maximum common unit conversion 257,375 (a) Series A-1 Preferred Units pay dividends quarterly at an annual rate equal to the greater of (x) 3.50 percent, or (y) the then-effective annual dividend yield on the General Partner’s common stock. |
Schedule of Changes In The Value of The Redeemable Noncontrolling Interests | The following tables set forth the changes in Redeemable noncontrolling interests within the mezzanine section for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Series A-1 Preferred Units In VRLP Balance at April 1, 2024 $ 9,294 Income Attributed to Noncontrolling Interests 81 Distributions (81) Balance at June 30, 2024 $ 9,294 Series A and Balance at January 1, 2024 $ 24,999 Redemption/Payout (15,700) Income Attributed to Noncontrolling Interests 378 Distributions (383) Balance at June 30, 2024 $ 9,294 Series A and Rockpoint Total Balance at April 1, 2023 $ 40,231 $ 479,977 $ 520,208 Income Attributed to Noncontrolling Interests 350 267 617 Distributions (350) (267) (617) Reclassification to Mandatorily Redeemable Non-controlling Interests — (479,977) (479,977) Balance at June 30, 2023 $ 40,231 $ — $ 40,231 Series A and Rockpoint Total Balance at January 1, 2023 $ 40,231 $ 475,000 $ 515,231 Income Attributed to Noncontrolling Interests 700 6,283 6,983 Distributions (700) (6,283) (6,983) Redemption Value Adjustment — 4,977 4,977 Reclassification to Mandatorily Redeemable Non-controlling Interests — (479,977) (479,977) Balance at June 30, 2023 $ 40,231 $ — $ 40,231 |
VERIS RESIDENTIAL, INC. STOCK_2
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of General Partner Capital | The following table reflects the activity of the General Partner capital for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands) : Three Months Ended Six Months Ended 2024 2023 2024 2023 Opening Balance $ 1,132,231 $ 1,216,530 $ 1,137,478 $ 1,235,685 Net income (loss) available to common shareholders 2,922 (27,434) (981) (47,407) Shares issued under ATM Program, net 1,886 — 1,831 — Common stock distributions (5,610) — (10,594) — Redeemable noncontrolling interests — — — (4,516) Redemption of common units for common stock 113 4,192 113 9,051 Shares issued under Dividend Reinvestment and Stock Purchase Plan 3 1 4 2 Directors' deferred compensation plan 99 86 198 196 Stock Compensation 3,199 3,381 7,399 6,852 Cancellation of common stock (1,807) (219) (3,341) (466) Other comprehensive (loss) income (766) 1,399 232 541 Rebalancing of ownership percent between parent and subsidiaries 154 (983) 85 (2,985) Balance at June 30 $ 1,132,424 $ 1,196,953 $ 1,132,424 $ 1,196,953 |
Schedule of Reconciliation of Shares used in Basic EPS Calculation to Shares used in Diluted EPS Calculation | The following information presents the Company’s results for the three and six months ended June 30, 2024 and 2023 in accordance with ASC 260, Earnings Per Share (dollars in thousands, except per share amounts) : Veris Residential, Inc.: Three Months Ended Six Months Ended Computation of Basic EPS 2024 2023 2024 2023 Income (loss) from continuing operations after income tax expense $ 1,316 $ (25,455) $ (4,953) $ (44,287) Add (deduct): Noncontrolling interests in consolidated joint ventures 543 636 1,038 1,223 Add (deduct): Noncontrolling interests in Operating Partnership (153) 2,265 370 4,542 Add (deduct): Redeemable noncontrolling interests (81) (617) (378) (6,983) Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to common shareholders — — — (4,516) Income (loss) from continuing operations available to common shareholders $ 1,625 $ (23,171) $ (3,923) $ (50,021) Income (loss) from discontinued operations available to common shareholders 1,297 (4,263) 2,942 (1,902) Net income (loss) available to common shareholders for basic earnings per share $ 2,922 $ (27,434) $ (981) $ (51,923) Weighted average common shares 92,663 91,873 92,469 91,551 Basic EPS : Income (loss) from continuing operations available to common shareholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to common shareholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common shareholders $ 0.03 $ (0.30) $ (0.01) $ (0.56) Three Months Ended Six Months Ended Computation of Diluted EPS 2024 2023 2024 2023 Net income (loss) from continuing operations available to common shareholders $ 1,625 $ (23,171) $ (3,923) $ (50,021) Add (deduct): Noncontrolling interests in Operating Partnership 153 (2,265) (370) (4,542) Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to the Operating Partnership unitholders — — — (461) Income (loss) from continuing operations for diluted earnings per share $ 1,778 $ (25,436) $ (4,293) $ (55,024) Income (loss) from discontinued operations for diluted earnings per share 1,419 (4,680) 3,219 (2,078) Net income (loss) available for diluted earnings per share $ 3,197 $ (30,116) $ (1,074) $ (57,102) Weighted average common shares 101,952 100,854 101,160 100,691 Diluted EPS : Income (loss) from continuing operations available to common shareholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to common shareholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common shareholders $ 0.03 $ (0.30) $ (0.01) $ (0.56) The following schedule reconciles the weighted average shares used in the basic EPS calculation to the shares used in the diluted EPS calculation (in thousands) : Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic EPS shares 92,663 91,873 92,469 91,551 Add: Operating Partnership – common and vested LTIP units 8,689 8,981 8,691 9,140 Add: Dilutive effect of stock-based compensation awards 600 — — — Diluted EPS Shares 101,952 100,854 101,160 100,691 Veris Residential, L.P.: Three Months Ended Six Months Ended Computation of Basic EPU 2024 2023 2024 2023 Income (loss) from continuing operations after income tax expense $ 1,316 $ (25,455) $ (4,953) $ (44,287) Add (deduct): Noncontrolling interests in consolidated joint ventures 543 636 1,038 1,223 Add (deduct): Redeemable noncontrolling interests (81) (617) (378) (6,983) Add (deduct): Redemption value adjustment of redeemable noncontrolling interests — — — (4,977) Income (loss) from continuing operations available to unitholders $ 1,778 $ (25,436) $ (4,293) $ (55,024) Income (loss) from discontinued operations available to unitholders 1,419 (4,680) 3,219 (2,078) Net income (loss) available to common unitholders for basic earnings per unit $ 3,197 $ (30,116) $ (1,074) $ (57,102) Weighted average common units 101,352 100,854 101,160 100,691 Basic EPU : Income (loss) from continuing operations available to unitholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to unitholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common unitholders for basic earnings per unit $ 0.03 $ (0.30) $ (0.01) $ (0.56) Three Months Ended Six Months Ended Computation of Diluted EPU 2024 2023 2024 2023 Income (loss) from continuing operations available to common unitholders $ 1,778 $ (25,436) $ (4,293) $ (55,024) Income (loss) from discontinued operations for diluted earnings per unit 1,419 (4,680) 3,219 (2,078) Net income (loss) available to common unitholders for diluted earnings per unit $ 3,197 $ (30,116) $ (1,074) $ (57,102) Weighted average common unit 101,952 100,854 101,160 100,691 Diluted EPU : Income (loss) from continuing operations available to common unitholders $ 0.02 $ (0.25) $ (0.04) $ (0.54) Income (loss) from discontinued operations available to common unitholders 0.01 (0.05) 0.03 (0.02) Net income (loss) available to common unitholders $ 0.03 $ (0.30) $ (0.01) $ (0.56) The following schedule reconciles the weighted average units used in the basic EPU calculation to the units used in the diluted EPU calculation (in thousands) : Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic EPU units 101,352 100,854 101,160 100,691 Add: Dilutive effect of stock-based compensation awards 600 — — — Diluted EPU Units 101,952 100,854 101,160 100,691 |
NONCONTROLLING INTERESTS IN S_2
NONCONTROLLING INTERESTS IN SUBSIDIARIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Schedule of Activity of Noncontrolling Interests | The following table reflects the activity of noncontrolling interests for the three and six months ended June 30, 2024 and 2023, respectively : Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Opening Balance $ 139,985 $ 157,439 $ 142,075 $ 163,652 Net (loss) income (187) (2,701) (753) 1,042 Unit distributions (521) — (978) — Redeemable noncontrolling interests (81) (617) (378) (7,444) Change in noncontrolling interests in consolidated joint ventures (209) — (1,142) (562) Redemption of common units for common stock (113) (4,192) (113) (9,051) Redemption of common units — (78) — (94) Stock compensation — 94 — 487 Other comprehensive (loss) income (72) 137 22 50 Rebalancing of ownership percentage between parent and subsidiaries (154) 983 (85) 2,985 Balance at June 30 $ 138,648 $ 151,065 $ 138,648 $ 151,065 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Millions | Jun. 30, 2024 USD ($) property state | Dec. 31, 2023 USD ($) |
Real Estate Properties [Line Items] | ||
Percentage of ownership interest | 91.40% | 91.40% |
Consolidated joint ventures, total real estate assets | $ | $ 445.8 | $ 449.8 |
Consolidated joint ventures, other assets | $ | 6.8 | 6.7 |
Consolidated joint ventures, mortgages | $ | 285.2 | 285.2 |
Consolidated joint ventures, other liabilities | $ | $ 15.7 | $ 14.7 |
Multi-Family Properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 22 | |
Parking/Retail | ||
Real Estate Properties [Line Items] | ||
Number of properties | 4 | |
Company Controlled Properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 19 | |
Multi-Family Properties, Company Controlled | ||
Real Estate Properties [Line Items] | ||
Number of properties | 16 | |
Non-Core Assets | ||
Real Estate Properties [Line Items] | ||
Number of properties | 3 | |
Investment Properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 7 | |
Number of states | state | 3 | |
Multi-Family Properties, Investment | ||
Real Estate Properties [Line Items] | ||
Number of properties | 6 | |
Non-Core Assets, Investment | ||
Real Estate Properties [Line Items] | ||
Number of properties | 1 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Millions | May 06, 2024 | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 0.06 | ||
Dividends payable | $ 6.4 | $ 5.5 |
INVESTMENTS IN RENTAL PROPERT_3
INVESTMENTS IN RENTAL PROPERTIES - Schedule of Disposed Properties (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) ft² building | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of Buildings | building | 1 |
Rentable Square Feet | ft² | 977,225 |
Net Sales Proceeds | $ 81,515 |
Net Carrying Value | $ 81,228 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Harborside 5 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of Buildings | building | 1 |
Rentable Square Feet | ft² | 977,225 |
Net Sales Proceeds | $ 81,515 |
Net Carrying Value | 81,228 |
Discontinued Operations, Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations Realized Gains (Losses)/ Unrealized Losses, net | 1,548 |
Discontinued Operations, Disposed of by Sale | Harborside 5 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations Realized Gains (Losses)/ Unrealized Losses, net | 287 |
Discontinued Operations, Disposed of by Sale | Others | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations Realized Gains (Losses)/ Unrealized Losses, net | $ 1,261 |
INVESTMENTS IN RENTAL PROPERT_4
INVESTMENTS IN RENTAL PROPERTIES - Schedule of Disposed Developable Land (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net Sales Proceeds | $ 88,770 |
Net Carrying Value | 77,255 |
Realized Gains (Losses)/ Unrealized Losses, net | 11,515 |
2 Campus | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net Sales Proceeds | 10,155 |
Net Carrying Value | 9,371 |
Realized Gains (Losses)/ Unrealized Losses, net | 784 |
107 Morgan | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net Sales Proceeds | 50,630 |
Net Carrying Value | 50,929 |
Realized Gains (Losses)/ Unrealized Losses, net | (299) |
Impairment charges | 10,500 |
6 Becker Farm / 85 Livingston | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net Sales Proceeds | 27,985 |
Net Carrying Value | 16,955 |
Realized Gains (Losses)/ Unrealized Losses, net | $ 11,030 |
INVESTMENTS IN RENTAL PROPERT_5
INVESTMENTS IN RENTAL PROPERTIES - Narrative (Details) - Unconsolidated Joint Venture Office Buildings - Metropolitan and Lofts at 40 Park $ in Millions | 1 Months Ended |
Jan. 31, 2024 USD ($) | |
Real Estate Properties [Line Items] | |
Sale price | $ 30.3 |
Gain on sale of investments | $ 7.1 |
INVESTMENTS IN RENTAL PROPERT_6
INVESTMENTS IN RENTAL PROPERTIES - Schedule of Real Estate Held For Sale/Discontinued Operations/Dispositions (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate [Abstract] | ||
Land | $ 59,464 | |
Building & Other | 9,688 | |
Less: Accumulated depreciation | 0 | |
Less: Cumulative unrealized losses on property held for sale | (10,544) | |
Real estate held for sale, net | $ 0 | $ 58,608 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) potentialApartmentUnit apartmentUnit property investment | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) ft² potentialApartmentUnit apartmentUnit property investment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in equity method joint ventures | $ | $ 120,000 | $ 120,000 | |||
Management, leasing, development and other services fees | $ | 800 | $ 500 | 1,600 | $ 1,400 | |
Accounts receivable | $ | 1,998 | 1,998 | $ 2,742 | ||
Unconsolidated Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts receivable | $ | $ 1,000 | $ 1,000 | $ 700 | ||
PI North - Land | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | apartmentUnit | 829 | 829 | |||
Unconsolidated Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of VIEs | investment | 0 | 0 | |||
Multifamily | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of properties | property | 6 | 6 | |||
Number of units in real estate property | apartmentUnit | 2,087 | 2,087 | |||
Multifamily | PI North - Land | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | potentialApartmentUnit | 829 | 829 | |||
Percentage of interest in venture | 20% | 20% | |||
Multifamily | Urby at Harborside | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | apartmentUnit | 762 | 762 | |||
Percentage of interest in venture | 85% | 85% | |||
Unconsolidated Joint Venture Retail Buildings | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Area of mixed use project (in square feet) | ft² | 51 | ||||
Unconsolidated Joint Venture Land Parcels | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of units in real estate property | apartmentUnit | 829 | 829 |
INVESTMENTS IN UNCONSOLIDATED_4
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES - Schedule of Unconsolidated Joint Ventures (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2024 USD ($) apartmentUnit floor | Jun. 30, 2024 USD ($) ft² apartmentUnit potentialApartmentUnit | Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying Value | $ 120,392 | $ 117,954 | |
Balance | $ 560,076 | ||
Metropolitan and Lofts at 40 Park | The Metropolitan at 40 Park | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 130,000 | ||
Residual ownership interest (as a percent) | 25% | ||
Metropolitan and Lofts at 40 Park | The Shops At 40 Park Property | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | $ 6,100 | ||
Residual ownership interest (as a percent) | 25% | ||
Area of property (in square feet) | ft² | 50,973 | ||
Interest rate, variable (as a percent) | 2% | ||
Metropolitan and Lofts at 40 Park | Lofts At 40 Park Property | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 59 | ||
Balance | $ 17,200 | ||
Number of stories | floor | 5 | ||
Metropolitan and Lofts at 40 Park | Metropolitan at 40 Park | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | $ 34,100 | ||
Interest rate, variable (as a percent) | 2.85% | ||
PI North - Land | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 829 | ||
Residual ownership interest (as a percent) | 20% | ||
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 2,087 | ||
Multifamily | Metropolitan and Lofts at 40 Park | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 130 | ||
Carrying Value | $ 1,512 | 908 | |
Balance | $ 40,167 | ||
Multifamily | RiverTrace at Port Imperial | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 316 | ||
Company's Effective Ownership Percentage | 22.50% | ||
Carrying Value | $ 4,162 | 4,506 | |
Balance | $ 82,000 | ||
Interest rate, stated (as a percent) | 3.21% | ||
Multifamily | The Capstone at Port Imperial | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 360 | ||
Company's Effective Ownership Percentage | 40% | ||
Carrying Value | $ 22,116 | 21,361 | |
Balance | $ 135,000 | ||
Interest rate, variable (as a percent) | 1.20% | ||
Multifamily | Riverpark at Harrison | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 141 | ||
Company's Effective Ownership Percentage | 45% | ||
Carrying Value | $ 0 | 0 | |
Balance | $ 30,192 | ||
Interest rate, stated (as a percent) | 3.19% | ||
Multifamily | Station House | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 378 | ||
Company's Effective Ownership Percentage | 50% | ||
Carrying Value | $ 31,727 | 32,022 | |
Balance | $ 88,408 | ||
Interest rate, stated (as a percent) | 4.82% | ||
Multifamily | Urby at Harborside | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | apartmentUnit | 762 | ||
Company's Effective Ownership Percentage | 85% | ||
Carrying Value | $ 58,778 | 57,060 | |
Balance | $ 184,309 | ||
Interest rate, stated (as a percent) | 5.20% | ||
Multifamily | PI North - Land | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Apartment Units | potentialApartmentUnit | 829 | ||
Company's Effective Ownership Percentage | 20% | ||
Carrying Value | $ 1,678 | 1,678 | |
Balance | $ 0 | ||
Interest rate, stated (as a percent) | 0% | ||
Other | Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying Value | $ 419 | $ 419 | |
Balance | $ 0 | ||
Interest rate, stated (as a percent) | 0% | ||
Unconsolidated Joint Venture Office Buildings | Metropolitan and Lofts at 40 Park | |||
Schedule of Equity Method Investments [Line Items] | |||
Sale price | $ 30,300 | ||
Gain on sale of investments | $ 7,100 |
INVESTMENTS IN UNCONSOLIDATED_5
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES - Schedule of Company's Equity In Earnings (Loss) of Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | $ 2,933 | $ 2,700 | $ 3,187 | $ 2,633 | |
Amortization of basis difference | 154 | 154 | 309 | 309 | |
Multifamily | Metropolitan and Lofts at 40 Park | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | (47) | (326) | (474) | (608) | |
Multifamily | RiverTrace at Port Imperial | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | 132 | 144 | 291 | 282 | |
Multifamily | Capstone at Port Imperial | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | (5) | (126) | 44 | (313) | |
Multifamily | Riverpark at Harrison | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | 68 | 67 | 136 | 405 | |
Multifamily | Station House | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | (133) | 91 | (171) | (7) | |
Multifamily | Urby at Harborside | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | 3,084 | 2,906 | 3,587 | 2,973 | |
Multifamily | PI North - Land | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | (166) | (56) | (226) | (96) | |
Multifamily | Liberty Landing | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale from unconsolidated joint ventures | $ 0 | $ 0 | $ (3) | ||
Unconsolidated Joint Venture Office Buildings | Metropolitan and Lofts at 40 Park | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sale price | $ 30,300 | ||||
Gain on sale of investments | $ 7,100 |
DEFERRED CHARGES AND OTHER AS_3
DEFERRED CHARGES AND OTHER ASSETS, NET - Schedule of Deferred Charges, Goodwill And Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Deferred leasing costs | $ 4,660 | $ 8,324 |
Deferred financing costs | 7,543 | 771 |
Deferred charges, gross | 12,203 | 9,095 |
Accumulated amortization | (3,849) | (5,063) |
Deferred charges, net | 8,354 | 4,032 |
In-place lease values, related intangibles and other assets, net | 9,734 | 10,034 |
Right of use assets | 5,659 | 6,161 |
Prepaid expenses and other assets, net | 25,782 | 33,729 |
Total deferred charges and other assets, net | 49,529 | 53,956 |
Right of use liabilities | $ 7,000 | $ 7,400 |
DEFERRED CHARGES AND OTHER AS_4
DEFERRED CHARGES AND OTHER ASSETS, NET - Narrative (Details) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) interestRateCap | Jul. 24, 2024 USD ($) | Jun. 28, 2024 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated additional amount to be reclassified to interest expense | $ 1,600,000 | ||
Interest Rate Caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional value | $ 110,000,000 | ||
Derivative, cap interest rate | 3.50% | ||
Derivatives, net liability position | $ 0 | ||
Interest Rate Caps | Subsequent Event | Term Loan | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional value | $ 55,000,000 | ||
Derivative, cap interest rate | 3.50% | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of interest rate derivatives outstanding | interestRateCap | 4 | ||
Notional value | $ 304,000,000 |
DEFERRED CHARGES AND OTHER AS_5
DEFERRED CHARGES AND OTHER ASSETS, NET - Schedule of Fair Value of The Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Designated as Hedging Instrument | Interest Rate Caps | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset derivatives | $ 4,924 | $ 5,098 |
DEFERRED CHARGES AND OTHER AS_6
DEFERRED CHARGES AND OTHER ASSETS, NET - Schedule of Cash Flow Hedging, Derivative Financial Instruments On The Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total Amount of Interest Expense presented in the consolidated statements of operations | $ 21,676 | $ 21,692 | $ 43,176 | $ 43,706 |
Extinguishment of debt, net | (785) | (2,657) | (785) | (2,657) |
Not Designated as Hedging Instrument | Interest Rate Caps | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivative | 187 | 2,221 | 1,152 | 1,697 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | 1,067 | 685 | 2,126 | 1,106 |
Total Amount of Interest Expense presented in the consolidated statements of operations | (21,676) | (21,692) | (43,176) | (43,706) |
Not Designated as Hedging Instrument | Interest Rate Caps | Cash Flow Hedging | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Extinguishment of debt, net | $ 42 | $ 0 | $ 1,200 | $ 0 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted Cash and Investments [Abstract] | ||||
Security deposits | $ 10,430 | $ 9,996 | ||
Escrow and other reserve funds | 12,103 | 16,576 | ||
Total restricted cash | $ 22,533 | $ 26,572 | $ 27,614 | $ 20,867 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations | $ 1,419 | $ (1,192) | $ 1,671 | $ 631 |
Realized gain (loss), net | 0 | (3,488) | 1,548 | (2,709) |
Total discontinued operations, net | 1,419 | (4,680) | 3,219 | (2,078) |
Suburban Office Portfolio | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total Revenues | (277) | 7,210 | 2,722 | 28,217 |
Operating and other expenses, net | 1,639 | (6,274) | (645) | (17,670) |
Depreciation and amortization | 0 | (2,128) | (668) | (9,094) |
Interest Expense | 0 | 0 | 0 | (822) |
Equity in earnings of unconsolidated joint ventures | 57 | 0 | 262 | 0 |
Income from discontinued operations | 1,419 | (1,192) | 1,671 | 631 |
Realized gain (loss) on disposition of rental property | 0 | (3,488) | 1,548 | (2,709) |
Realized gain (loss), net | 0 | (3,488) | 1,548 | (2,709) |
Total discontinued operations, net | $ 1,419 | $ (4,680) | $ 3,219 | $ (2,078) |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND TERM LOANS (Details) $ in Thousands | 6 Months Ended | ||||||
Jun. 28, 2024 USD ($) | Apr. 22, 2024 USD ($) lender extension draw property | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jul. 24, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jul. 25, 2023 USD ($) lender | |
Line of Credit Facility [Line Items] | |||||||
Loan balance | $ 1,700,000 | $ 1,900,000 | |||||
Borrowings from term loans | 55,000 | $ 0 | |||||
Interest Rate Caps | |||||||
Line of Credit Facility [Line Items] | |||||||
Notional value | $ 110,000 | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Number of lenders | lender | 8 | 2 | |||||
Secured debt | $ 300,000 | $ 60,000 | |||||
Loan period | 3 years | ||||||
Number of extensions | extension | 1 | ||||||
Extension option period | 12 months | ||||||
Number of properties with first priority lien | property | 5 | ||||||
Appraisal value | $ 900,000 | 200,000 | |||||
Loan balance | 0 | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Debt Covenant Period One | |||||||
Line of Credit Facility [Line Items] | |||||||
Total leverage ratio | 65% | ||||||
Debt service coverage ratio | 125% | ||||||
Tangible net worth ratio | 80% | ||||||
Percentage of net cash proceeds of equity issuances | 80% | ||||||
Percentage of maximum unhedged variable rate debt ratio | 30% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Debt Covenant Period Two | |||||||
Line of Credit Facility [Line Items] | |||||||
Total leverage ratio | 60% | ||||||
Debt service coverage ratio | 150% | ||||||
Tangible net worth ratio | 80% | ||||||
Percentage of net cash proceeds of equity issuances | 80% | ||||||
Percentage of maximum unhedged variable rate debt ratio | 30% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Alternative Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 1% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | NYFRB Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 0.50% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Adjusted Term SOFR | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 1% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Adjusted Term SOFR Subject to Floor | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 0% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Term SOFR | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 0.10% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Adjusted Daily Effective SOFR | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 0% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, variable (as a percent) | 0.10% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Facility fee basis points | 0.25% | ||||||
Interest rate, variable (as a percent) | 1% | ||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Facility fee basis points | 0.35% | ||||||
Interest rate, variable (as a percent) | 2% | ||||||
Term Loan | Interest Rate Caps | Subsequent Event | |||||||
Line of Credit Facility [Line Items] | |||||||
Notional value | $ 55,000 | ||||||
Term Loan | Credit Agreement | Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Secured debt | $ 200,000 | $ 115,000 | |||||
Loan period | 3 years | ||||||
Number of extensions | extension | 1 | ||||||
Extension option period | 12 months | ||||||
Facility fee basis points | 0.35% | ||||||
Number of draws | draw | 3 | ||||||
Loan balance | $ 200,000 | $ 55,000 | |||||
Borrowings from term loans | $ 55,000 | ||||||
Effective rate (as a percent) | 6.12% |
MORTGAGES, LOANS PAYABLE AND _3
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Number of properties with encumbered company mortgages | property | 14 | |||
Carrying value of encumbered properties | $ 2,200,000,000 | $ 2,200,000,000 | ||
Cash paid for interest | 19,900,000 | $ 19,600,000 | 39,300,000 | $ 40,100,000 |
Interest capitalized | 0 | $ 0 | 0 | 0 |
Discontinued Operations | ||||
Debt Instrument [Line Items] | ||||
Cash paid for interest | $ 0 | $ 0 | $ 1,100,000 |
MORTGAGES, LOANS PAYABLE AND _4
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS - Schedule of Mortgages, Loans Payable And Other Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 11, 2024 | Jun. 30, 2024 | Jul. 01, 2024 | May 22, 2024 | Dec. 31, 2023 | Aug. 10, 2023 | |
Debt Instrument [Line Items] | ||||||
Principal balance outstanding | $ 1,700,000 | $ 1,900,000 | ||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
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 | ||||
Secured Debt | Signature Place | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 3.74% | |||||
Principal balance outstanding | $ 43,000 | 43,000 | ||||
Secured Debt | Liberty Towers | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 3.37% | |||||
Principal balance outstanding | $ 265,000 | 265,000 | ||||
Secured Debt | Portside 2 at East Pier | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 4.56% | |||||
Principal balance outstanding | $ 96,222 | 97,000 | ||||
Debt instrument, percent guaranteed | 10% | |||||
Secured Debt | BLVD 425 | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 4.17% | |||||
Principal balance outstanding | $ 131,000 | 131,000 | ||||
Secured Debt | BLVD 401 | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 4.29% | |||||
Principal balance outstanding | $ 116,510 | 117,000 | ||||
Secured Debt | Portside at East Pier | ||||||
Debt Instrument [Line Items] | ||||||
Principal balance outstanding | $ 56,500 | 56,500 | ||||
Derivative, cap interest rate | 3.50% | |||||
Secured Debt | Portside at East Pier | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, variable (as a percent) | 2.75% | |||||
Secured Debt | The Upton | ||||||
Debt Instrument [Line Items] | ||||||
Principal balance outstanding | $ 75,000 | 75,000 | ||||
Secured Debt | The Upton | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, variable (as a percent) | 1.58% | |||||
Secured Debt | 145 Front at City Square | ||||||
Debt Instrument [Line Items] | ||||||
Principal balance outstanding | $ 0 | 63,000 | ||||
Derivative, cap interest rate | 4% | |||||
Secured Debt | 145 Front at City Square | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, variable (as a percent) | 1.84% | |||||
Secured Debt | RiverHouse 9 At Port Imperial | ||||||
Debt Instrument [Line Items] | ||||||
Principal balance outstanding | $ 110,000 | 110,000 | ||||
Secured Debt | RiverHouse 9 At Port Imperial | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, variable (as a percent) | 1.41% | |||||
Secured Debt | Quarry Place at Tuckahoe | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 4.48% | |||||
Principal balance outstanding | $ 41,000 | 41,000 | ||||
Secured Debt | BLVD 475 | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 2.91% | |||||
Principal balance outstanding | $ 165,000 | 165,000 | ||||
Secured Debt | Haus25 | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 6.04% | |||||
Principal balance outstanding | $ 343,061 | 343,061 | ||||
Secured Debt | RiverHouse 11 at Port Imperial | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 4.52% | |||||
Principal balance outstanding | $ 100,000 | 100,000 | ||||
Secured Debt | Soho Lofts | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 3.77% | |||||
Principal balance outstanding | $ 0 | 158,777 | ||||
Secured Debt | Port Imperial South 4/5 Garage | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 4.85% | |||||
Principal balance outstanding | $ 31,375 | 31,645 | ||||
Secured Debt | The Emery at Overlook Ridge | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate (as a percent) | 3.21% | |||||
Principal balance outstanding | $ 71,392 | $ 72,000 | ||||
Secured Debt | The Emery at Overlook Ridge | Prime Rate | Floating Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, variable (as a percent) | 2.75% | |||||
Secured Debt | The Emery at Overlook Ridge | Prime Rate | Fixed Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, variable (as a percent) | 3% | |||||
Secured Debt | Upton | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, cap interest rate | 1% | |||||
Secured Debt | Riverhouse9 At Port Imperial | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, cap interest rate | 3% | |||||
Secured Debt | Riverhouse9 At Port Imperial | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, cap interest rate | 3.50% |
MORTGAGES, LOANS PAYABLE AND _5
MORTGAGES, LOANS PAYABLE AND OTHER OBLIGATIONS - Schedule of Indebtedness (Details) - USD ($) $ in Thousands | Jul. 24, 2024 | Jun. 30, 2024 | Jun. 28, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||||
Totals/Weighted Average, net of unamortized deferred financing costs: | $ 1,686,954 | $ 1,853,897 | ||
Weighted Average Interest Rate | 4.43% | 4.34% | ||
Interest Rate Caps | ||||
Debt Instrument [Line Items] | ||||
Notional value | $ 110,000 | |||
Derivative, cap interest rate | 3.50% | |||
Interest Rate Caps | Term Loan | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Notional value | $ 55,000 | |||
Derivative, cap interest rate | 3.50% | |||
Fixed Rate & Hedged Debt | ||||
Debt Instrument [Line Items] | ||||
Balance | $ 1,686,954 | $ 1,853,897 | ||
Weighted Average Interest Rate | 4.43% | 4.34% | ||
Fixed Rate & Hedged Debt | Interest Rate Caps | ||||
Debt Instrument [Line Items] | ||||
Balance | $ 304,000 | $ 304,500 |
EMPLOYEE BENEFIT 401(k) PLANS (
EMPLOYEE BENEFIT 401(k) PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||||
Minimum employee subscription rate, percentage of compensation (as a percent) | 1% | |||
Maximum employee subscription rate, percentage of compensation (as a percent) | 60% | |||
Employee pre-tax contributions vested percentage (as a percent) | 100% | |||
Expenses for employee benefit plan | $ 139 | $ 129 | $ 290 | $ 277 |
DISCLOSURE OF FAIR VALUE OF A_2
DISCLOSURE OF FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |||||
Fair value of long-term debt | $ 1,600 | $ 1,600 | $ 1,800 | ||
Loan balance | 1,700 | 1,700 | $ 1,900 | ||
Impairment charges | $ 0 | $ 3.6 | $ 0 | $ 7 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Tax Abatement Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | $ 2,571 | $ 1,955 | $ 4,780 | $ 4,055 |
Blvd 401 | ||||
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | 701 | 461 | $ 1,143 | 864 |
Blvd 401 | Years 1-4 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 10% | |||
Blvd 401 | Years 5-8 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 12% | |||
Blvd 401 | Years 9-10 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 14% | |||
RiverHouse 11 at Port Imperial | ||||
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | 492 | 405 | $ 949 | 779 |
RiverHouse 11 at Port Imperial | Years 1-5 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 12% | |||
RiverHouse 11 at Port Imperial | Years 6-10 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 13% | |||
RiverHouse 11 at Port Imperial | Years 11-15 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 14% | |||
Port Imperial 4/5 Hotel | ||||
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | 0 | 0 | $ 0 | 224 |
Percentage of PILOT on project costs (as a percent) | 2% | |||
RiverHouse 9 At Port Imperial | ||||
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | 451 | 372 | $ 858 | 754 |
RiverHouse 9 At Port Imperial | Years 1-10 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 11% | |||
RiverHouse 9 At Port Imperial | Years 11-18 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 12.50% | |||
RiverHouse 9 At Port Imperial | Years 19-25 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 14% | |||
Haus25 | ||||
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | 717 | 573 | $ 1,414 | 1,147 |
Percentage of PILOT on gross revenues (as a percent) | 7% | |||
Project period | 25 years | |||
The James | ||||
Commitments And Contingencies [Line Items] | ||||
Total PILOT taxes | $ 210 | $ 144 | $ 416 | $ 287 |
Percentage of PILOT on gross revenues (as a percent) | 10% | |||
The James | Years 11-21 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 11.50% | |||
The James | Years 22-30 | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage of PILOT on gross revenues (as a percent) | 12.50% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Rental Payments of Ground Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remaining | $ 636 | |
Year one | 1,279 | $ 1,272 |
Year two | 1,279 | 1,279 |
Year three | 1,280 | 1,279 |
Year four | 494 | 1,280 |
After year four | 31,447 | |
Year five | 494 | |
After year five | 31,447 | |
Total lease payments | 36,415 | 37,051 |
Less: imputed interest | (29,461) | (29,700) |
Operating lease | $ 6,954 | $ 7,351 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Ground Lease Agreements - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) groundLease property | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Ground lease expense incurred | $ 629 | $ 582 | $ 1,300 | $ 847 | |
Number of ground leases | groundLease | 2 | ||||
Operating lease | 6,954 | $ 6,954 | $ 7,351 | ||
Right of use assets | $ 5,659 | $ 5,659 | $ 6,161 | ||
Office | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of property | property | 1 | 1 | |||
Operating lease | $ 3,600 | 4,700 | $ 3,600 | 4,700 | |
Borrowing rate | 6% | 6% | |||
Remaining lease term | 3 years 9 months 18 days | 3 years 9 months 18 days | |||
Right of use assets | $ 4,700 | $ 4,700 | |||
Ground Lease | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease | $ 2,000 | $ 2,000 | |||
Borrowing rate | 7.60% | 7.60% | |||
Remaining lease term | 77 years 1 month 6 days | 77 years 1 month 6 days |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Other - Narrative (Details) - Stay-On Award Agreement $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 employee | Jun. 30, 2024 USD ($) shares | |
Commitments And Contingencies [Line Items] | ||
Number of employees | employee | 20 | |
Potential shares (in shares) | shares | 42,095 | |
Maximum | ||
Commitments And Contingencies [Line Items] | ||
Stay on award agreement cost | $ 2.6 | |
Maximum | General and Administrative Expense | ||
Commitments And Contingencies [Line Items] | ||
Stay on award agreement cost | 1.3 | |
Maximum | Real Estate Services Expenses | ||
Commitments And Contingencies [Line Items] | ||
Stay on award agreement cost | $ 1.3 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 25, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 30, 2017 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable noncontrolling interests | $ (81) | $ (617) | $ (378) | $ (11,960) | ||
VERIS RESIDENTIAL, L.P. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable noncontrolling interests | $ (81) | $ (617) | $ (378) | $ (11,960) | ||
VERIS RESIDENTIAL, L.P. | Series A-1 Preferred Units | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Number of units issued (in shares) | 9,213,000 | 9,213,000 | 9,213 | |||
Rockpoint | Rockpoint Purchase Agreement | Rockpoint | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Purchase price | $ 520,000 | |||||
Redeemable noncontrolling interests | $ 34,800 |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS -Schedule of Preferred Units (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 03, 2017 | Jun. 30, 2023 USD ($) | Apr. 30, 2017 $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 shares | |
Redeemable Noncontrolling Interests | |||||
Preferred Units [Line Items] | |||||
Reclassification to Mandatorily Redeemable Non-controlling Interests | $ (479,977) | $ (479,977) | |||
Rockpoint | Redeemable Noncontrolling Interests | |||||
Preferred Units [Line Items] | |||||
Reclassification to Mandatorily Redeemable Non-controlling Interests | (479,977) | (479,977) | |||
Series A-1 Preferred Units | VERIS RESIDENTIAL, L.P. | |||||
Preferred Units [Line Items] | |||||
Number of units issued (in shares) | shares | 9,213 | 9,213,000 | |||
Stated value per unit (in dollars per share) | $ / shares | $ 1,000 | ||||
Conversion rate | 27.936 | ||||
Conversion value per unit (in dollars per share) | $ / shares | $ 35.80 | ||||
Maximum common unit conversion (in shares) | shares | 257,375 | ||||
Preferred unit, dividend rate, percentage | 3.50% | ||||
Series A-1 Preferred Units In VRLP | Redeemable Noncontrolling Interests | |||||
Preferred Units [Line Items] | |||||
Reclassification to Mandatorily Redeemable Non-controlling Interests | $ 0 | $ 0 |
REDEEMABLE NONCONTROLLING INT_5
REDEEMABLE NONCONTROLLING INTERESTS - Schedule of Changes In The Value of The Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Income Attributed to Noncontrolling Interests | $ (81) | $ (617) | $ (378) | $ (6,983) |
Redemption Value Adjustment | (81) | (617) | (378) | (11,960) |
Redeemable Noncontrolling Interests | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 520,208 | 515,231 | ||
Income Attributed to Noncontrolling Interests | 617 | 6,983 | ||
Distributions | (617) | (6,983) | ||
Redemption Value Adjustment | 4,977 | |||
Reclassification to Mandatorily Redeemable Non-controlling Interests | (479,977) | (479,977) | ||
Ending balance | 40,231 | 40,231 | ||
Redeemable Noncontrolling Interests | Series A-1 Preferred Units In VRLP | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 9,294 | 40,231 | 24,999 | 40,231 |
Redemption/Payout | (15,700) | |||
Income Attributed to Noncontrolling Interests | 81 | 350 | 378 | 700 |
Distributions | (81) | (350) | (383) | (700) |
Redemption Value Adjustment | 0 | |||
Reclassification to Mandatorily Redeemable Non-controlling Interests | 0 | 0 | ||
Ending balance | $ 9,294 | 40,231 | $ 9,294 | 40,231 |
Redeemable Noncontrolling Interests | Rockpoint | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 479,977 | 475,000 | ||
Income Attributed to Noncontrolling Interests | 267 | 6,283 | ||
Distributions | (267) | (6,283) | ||
Redemption Value Adjustment | 4,977 | |||
Reclassification to Mandatorily Redeemable Non-controlling Interests | (479,977) | (479,977) | ||
Ending balance | $ 0 | $ 0 |
VERIS RESIDENTIAL, INC. STOCK_3
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Schedule of General Partner Capital (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning | $ 1,137,478 | |||
Shares issued under ATM Program, net | $ 1,886 | 1,831 | ||
Common stock distributions | (5,610) | (10,594) | ||
Redeemable noncontrolling interests | (81) | $ (617) | (378) | $ (6,983) |
Redemption of common units for common stock | (78) | 0 | (94) | |
Directors' deferred compensation plan | 99 | 86 | 198 | 196 |
Other comprehensive (loss) income | (838) | 1,536 | 254 | 591 |
Rebalancing of ownership percent between parent and subsidiaries | 0 | 0 | 0 | 0 |
Balance, ending | 1,132,424 | 1,132,424 | ||
Common Unitholders | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning | 1,132,231 | 1,216,530 | 1,137,478 | 1,235,685 |
Net income (loss) available to common shareholders | 2,922 | (27,434) | (981) | (47,407) |
Shares issued under ATM Program, net | 1,886 | 0 | 1,831 | 0 |
Common stock distributions | (5,610) | 0 | (10,594) | 0 |
Redeemable noncontrolling interests | 0 | 0 | 0 | (4,516) |
Redemption of common units for common stock | 113 | 4,192 | 113 | 9,051 |
Shares issued under Dividend Reinvestment and Stock Purchase Plan | 3 | 1 | 4 | 2 |
Directors' deferred compensation plan | 99 | 86 | 198 | 196 |
Stock Compensation | 3,199 | 3,381 | 7,399 | 6,852 |
Cancellation of common stock | (1,807) | (219) | (3,341) | (466) |
Other comprehensive (loss) income | (766) | 1,399 | 232 | 541 |
Rebalancing of ownership percent between parent and subsidiaries | 154 | (983) | 85 | (2,985) |
Balance, ending | $ 1,132,424 | $ 1,196,953 | $ 1,132,424 | $ 1,196,953 |
VERIS RESIDENTIAL, INC. STOCK_4
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - ATM Program And Dividend Reinvestment And Stock Purchase Plan - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Nov. 15, 2023 | Dec. 13, 2021 | Jun. 30, 2024 | |
Stockholders Equity [Line Items] | |||
Combined aggregate offering price | $ 100,000 | $ 200,000 | |
ATM, shares issued (in shares) | 133,759 | ||
ATM program net proceeds | $ 1,900 | ||
Dividend Reinvestment And Stock Purchase Plan | |||
Stockholders Equity [Line Items] | |||
Reserved stocks for issuance (in shares) | 5,400,000 | ||
Monthly cash investment without restriction, maximum | $ 5 |
VERIS RESIDENTIAL, INC. STOCK_5
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Incentive Stock Plan And Stock Options - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 30, 2021 | May 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 2,330,000 | ||||||
Stock options, vested (in shares) | 2,246,666 | ||||||
Options exercised (in shares) | 0 | 0 | |||||
Weighted average remaining contractual life | 3 years 1 month 6 days | 3 years 7 months 6 days | |||||
Stock options expense | $ 92 | $ 322 | $ 429 | $ 644 | |||
2013 Incentive Stock Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Reserved stocks for issuance (in shares) | 6,565,000 | 4,600,000 | |||||
2024 Incentive Stock Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Reserved stocks for issuance (in shares) | 2,885,207 | 2,885,207 |
VERIS RESIDENTIAL, INC. STOCK_6
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Restricted Stock Awards - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unvested Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercisable time period | 1 year | |||
Total unrecognized compensation cost | $ 1,000 | $ 1,000 | ||
Total unrecognized compensation cost, period of recognition | 1 year | |||
Unvested Restricted Stock | Board Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested stock outstanding (in shares) | 71,232 | 71,232 | ||
RSA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 201 | $ 187 | $ 431 | $ 362 |
VERIS RESIDENTIAL, INC. STOCK_7
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Long-Term Incentive Plan Awards - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 executive shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 2,330,000 | ||||
2021 RSU LTIP Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Time Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercisable time period | 3 years | ||||
Time Based Restricted Stock Units | Non-Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested stock outstanding (in shares) | 895,670 | 895,670 | |||
Time Based Restricted Stock Units | Three Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercisable time period | 3 years | ||||
Unvested stock outstanding (in shares) | 14,467 | 14,467 | |||
Granted (in shares) | 59,707 | ||||
Number of executives | executive | 3 | ||||
Performance Based Restricted Stock Units | 2021 RSU LTIP Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested stock outstanding (in shares) | 812,609 | 812,609 | |||
Operations Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested stock outstanding (in shares) | 763,452 | 763,452 | |||
LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ | $ 2.9 | $ 3.1 | $ 6.5 | $ 6.3 | |
Total unrecognized compensation cost | $ | $ 14.5 | $ 14.5 | |||
Total unrecognized compensation cost, period of recognition | 2 years 2 months 12 days |
VERIS RESIDENTIAL, INC. STOCK_8
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Deferred Stock Compensation Plan For Directors - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |||||
Maximum percentage of retainer fee that directors may defer | 100% | ||||
Deferred stock units earned (in shares) | 6,951 | 5,379 | 14,060 | 12,950 | |
Deferred stock units outstanding (in shares) | 92,035 | 92,035 | 77,975 |
VERIS RESIDENTIAL, INC. STOCK_9
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Schedule of Earnings Per Share Tables - Basic Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders Equity [Line Items] | ||||
Income (loss) from continuing operations after income tax expense | $ 1,316 | $ (25,455) | $ (4,953) | $ (44,287) |
Add (deduct): Noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Add (deduct): Noncontrolling interests in Operating Partnership | (153) | 2,265 | 370 | 4,542 |
Add (deduct): Redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to common shareholders | 0 | 0 | 0 | (4,516) |
Income (loss) from continuing operations available to common shareholders | 1,625 | (23,171) | (3,923) | (50,021) |
Income (loss) from discontinued operations available to common shareholders | 1,297 | (4,263) | 2,942 | (1,902) |
Net income (loss) available to common shareholders for basic earnings per share | $ 2,922 | $ (27,434) | $ (981) | $ (51,923) |
Weighted average common shares (in shares) | 92,663 | 91,873 | 92,469 | 91,551 |
Income (loss) from continuing operations available to common shareholders (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Income (loss)from discontinued operations available to common shareholders (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net loss available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
VERIS RESIDENTIAL, L.P. | ||||
Stockholders Equity [Line Items] | ||||
Income (loss) from continuing operations after income tax expense | $ 1,316 | $ (25,455) | $ (4,953) | $ (44,287) |
Add (deduct): Noncontrolling interests in consolidated joint ventures | 543 | 636 | 1,038 | 1,223 |
Add (deduct): Redeemable noncontrolling interests | (81) | (617) | (378) | (6,983) |
Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to common shareholders | 0 | 0 | 0 | (4,977) |
Income (loss) from continuing operations available to common shareholders | 1,778 | (25,436) | (4,293) | (55,024) |
Income (loss) from discontinued operations available to common shareholders | 1,419 | (4,680) | 3,219 | (2,078) |
Net income (loss) available to common shareholders for basic earnings per share | $ 3,197 | $ (30,116) | $ (1,074) | $ (57,102) |
Weighted average common units (in shares) | 101,352 | 100,854 | 101,160 | 100,691 |
Income (loss) from continuing operations available to common shareholders (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Income (loss)from discontinued operations available to common shareholders (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net loss available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
VERIS RESIDENTIAL, INC. STOC_10
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Schedule of Earnings Per Share Tables - Diluted Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders Equity [Line Items] | ||||
Income (loss) from continuing operations available to common unitholders | $ 1,625 | $ (23,171) | $ (3,923) | $ (50,021) |
Add (deduct): Noncontrolling interests in Operating Partnership | 153 | (2,265) | (370) | (4,542) |
Add (deduct): Redemption value adjustment of redeemable noncontrolling interests attributable to the Operating Partnership unitholders | 0 | 0 | 0 | (461) |
Income (loss) from continuing operations for diluted earnings per share | 1,778 | (25,436) | (4,293) | (55,024) |
Income (loss) from discontinued operations for diluted earnings per share | 1,419 | (4,680) | 3,219 | (2,078) |
Net income (loss) available for diluted earnings per share | $ 3,197 | $ (30,116) | $ (1,074) | $ (57,102) |
Weighted average common shares (in shares) | 101,952 | 100,854 | 101,160 | 100,691 |
Loss from continuing operations available to common unitholders (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Income from discontinued operations available to common unitholders (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net loss available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
VERIS RESIDENTIAL, L.P. | ||||
Stockholders Equity [Line Items] | ||||
Income (loss) from continuing operations available to common unitholders | $ 1,778 | $ (25,436) | $ (4,293) | $ (55,024) |
Income (loss) from discontinued operations for diluted earnings per share | 1,419 | (4,680) | 3,219 | (2,078) |
Net income (loss) available for diluted earnings per share | $ 3,197 | $ (30,116) | $ (1,074) | $ (57,102) |
Weighted average common unit (in shares) | 101,952 | 100,854 | 101,160 | 100,691 |
Loss from continuing operations available to common unitholders (in dollars per share) | $ 0.02 | $ (0.25) | $ (0.04) | $ (0.54) |
Income from discontinued operations available to common unitholders (in dollars per share) | 0.01 | (0.05) | 0.03 | (0.02) |
Net loss available to common shareholders (in dollars per share) | $ 0.03 | $ (0.30) | $ (0.01) | $ (0.56) |
VERIS RESIDENTIAL, INC. STOC_11
VERIS RESIDENTIAL, INC. STOCKHOLDERS’ EQUITY AND VERIS RESIDENTIAL, L.P.’S PARTNERS’ CAPITAL - Schedule of Reconciliation of Shares Used In Basic EPS Calculation To Shares Used In Diluted EPS Calculation (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders Equity [Line Items] | ||||
Basic weighted average shares outstanding (in shares) | 92,663 | 91,873 | 92,469 | 91,551 |
Diluted EPS shares (in shares) | 101,952 | 100,854 | 101,160 | 100,691 |
Operating Partnership – common and vested LTIP units | ||||
Stockholders Equity [Line Items] | ||||
Weighted average number of shares outstanding, diluted adjustment (in shares) | 8,689 | 8,981 | 8,691 | 9,140 |
Add: Dilutive effect of stock-based compensation awards | ||||
Stockholders Equity [Line Items] | ||||
Weighted average number of shares outstanding, diluted adjustment (in shares) | 600 | 0 | 0 | 0 |
VERIS RESIDENTIAL, L.P. | ||||
Stockholders Equity [Line Items] | ||||
Basic EPU units (in shares) | 101,352 | 100,854 | 101,160 | 100,691 |
Diluted EPU Units (in shares) | 101,952 | 100,854 | 101,160 | 100,691 |
VERIS RESIDENTIAL, L.P. | Add: Dilutive effect of stock-based compensation awards | ||||
Stockholders Equity [Line Items] | ||||
Weighted average number of units outstanding, diluted adjustment (in shares) | 600 | 0 | 0 | 0 |
NONCONTROLLING INTERESTS IN S_3
NONCONTROLLING INTERESTS IN SUBSIDIARIES - Schedule of Activity Of Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance, beginning | $ 142,075 | |||
Unit distributions | $ (521) | (978) | ||
Redeemable noncontrolling interests | (81) | $ (617) | (378) | $ (6,983) |
Redemption of common units for common stock | 0 | 0 | 0 | 0 |
Redemption of common units | (78) | 0 | (94) | |
Other comprehensive (loss) income | (838) | 1,536 | 254 | 591 |
Rebalancing of ownership percentage between parent and subsidiaries | 0 | 0 | 0 | 0 |
Balance, ending | 138,648 | 138,648 | ||
Noncontrolling Interests in Subsidiaries | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance, beginning | 139,985 | 157,439 | 142,075 | 163,652 |
Net (loss) income | (187) | (2,701) | (753) | 1,042 |
Unit distributions | (521) | 0 | (978) | 0 |
Redeemable noncontrolling interests | (81) | (617) | (378) | (7,444) |
Change in noncontrolling interests in consolidated joint ventures | (209) | 0 | (1,142) | (562) |
Redemption of common units for common stock | (113) | (4,192) | (113) | (9,051) |
Redemption of common units | 0 | (78) | 0 | (94) |
Stock compensation | 0 | 94 | 0 | 487 |
Other comprehensive (loss) income | (72) | 137 | 22 | 50 |
Rebalancing of ownership percentage between parent and subsidiaries | (154) | 983 | (85) | 2,985 |
Balance, ending | $ 138,648 | $ 151,065 | $ 138,648 | $ 151,065 |
NONCONTROLLING INTERESTS IN S_4
NONCONTROLLING INTERESTS IN SUBSIDIARIES - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) shares | Dec. 31, 2023 | |
Noncontrolling Interest [Line Items] | ||
Rebalance of ownership percentage | $ | $ 100 | |
Redemption of limited partners common units (in shares) | shares | 9,230 | |
Proceeds from redemption of common units | $ | $ 113 | |
Number of common shares received upon redemption of common units (in shares) | shares | 1 | |
Conversion ratio | 1 | |
Participation Rights | ||
Noncontrolling Interest [Line Items] | ||
Excess net cash flow remaining after the distribution to the Company | 50% | |
Internal rate of return | 10% | |
VERIS RESIDENTIAL, L.P. | ||
Noncontrolling Interest [Line Items] | ||
Percentage of noncontrolling interest | 8.60% | 8.60% |