Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the Veris Residential Inc. fourth quarter 2022 earnings conference call.

All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today’s presentation, there will be an opportunity to ask questions. you star question, your one a keypad. telephone ask may then press on To question, star please your withdraw To press then two.

Please is being event note this recorded.

Taryn like conference go now turn Fielder, to ahead. would Please General I Counsel. to over the

Taryn Fielder

morning fourth XXXX Residential earnings the quarter everyone and call. Good to Veris welcome conference

discussed within would of the I information the to may call federal everyone remind this like laws. meaning constitute certain securities that on forward-looking statements

give estimates the you reasonable reflected in that are will statements results on the cannot press to release, refer believe these assumptions, annual reports based be we for SEC company. and that we the risk assurance company’s We impact anticipated the quarterly Although achieved. with factors filed the

Mahbod Residential’s With Officer. Mahbod? Nia, Executive that, would over Veris to I Chief like hand the to call

Mahbod Nia

welcome Good Amanda our by to fourth Taryn. joined I quarter CFO, call. you morning XXXX am our earnings Thank today Lombard. and

our and a volatility on asset resulting significantly of to exposure acknowledge play $XXX Before the fully I would a transaction market becoming Despite slowdown I like multi-family progress made financial results, has pure company. turn the executed moment of which to sales, to beginning since exiting path to closed team significant the million hotel reducing billion of our we segment. on XXXX, successfully $X.X in take office during our the tremendous non-strategic our XXXX and activity,

development, the the HausXX, We for reflecting also of completed year. XX% portfolio, multi-family units James, stabilized consecutive and almost approximately ground-up and second X,XXX together our to completed newest our The acquisition adding growth

the by sales the binding end from increased multi-family we pro forma to from approximately and the XX% our result, burn year will this business nearly As to XXXX net XX% contract the allowed further. NOI at of million. to NOI Amanda of of HausXX, balance beginning during net XX stabilized for under a strengthen progress This also discuss further $XXX expect reducing indebtedness off next by us has months. that our we of concessions share sheet,

operating unit respectively as X,XXX of Our year. XX.X% X,XXX and growing store operating were rents multi-family with and our XX.X% optimizing consistent our during the same This NOI portfolio December is XX. strategy of and portfolio occupied

upside We of seen [indiscernible] at XX.X% in for the have of a blended sustained growth to capture of quarter. The portfolio rate year the portfolio growth below XX% to reducing headline same achieved fourth our and end rents the rental quarter. net continue for store X% the and

to Jersey national store City same pressures. year to Full compared increased demand controllable NOI significant units, the XXX of last multi-family by term new XXXX, and XX key months, record contrast, despite Jersey times Boston outperformed during XXXX; supply limited rent by rents the deliveries despite mere of near across our revenues achieved was Market above by the XX.X% rental Jersey Our the inflationary our XXXX. New the be the average lower the ongoing Class year driven over during historic growth City markets and average A X% grew units while in expenses remains market next quality operational and compared however, three average; market a of of in robust. market, platform. XX%, from This our expected portfolio properties over significantly is reflecting strength delivered to and with by almost higher by growing high new slightly segment X,XXX

typically the seasonal we occupancy an driven to have following beginning the trends. by a December, in slower year seen at Turning XXXX, increase of

rental as of growth a of the February portfolio, recorded RiverHouse beginning this store blended same XX% XX% which going will of and with year. include net forward was rate X, since The Our Upton, Capstone XX occupied

marketing XX% Jersey February consistent with leased City HausXX, schedule property, strong As XXX-unit X, noted, this Class investment Residential’s ahead and for concepts environmentally April, and [indiscernible] that across well well A and tower Veris in the rents, premium as meet as a that of was Achieving as multi-family in our features demand teams in lifestyle our portfolio. testament commenced demonstrating friendly this design milestone our of in seen apartment preferences residents. responsible leasing experienced previously is living which of the leasing to

completed the land play closing provide An which properties closed such, and close. REIT $XX proceeds two non-strategic year Port to including these equity of a multi-family of in Hotel remaining the XXX $XXX XXX sale only equity the on significant Street our company During corporate Hudson increased sales, of transactions sale. segment XXXX, The approximately unlevered the we Street, their expected releasing Hotel. from of River we in release properties number million liquidity two Earlier are Hyatt office and pure upon exit a with and, valuable this over contract, also are away are non-strategic properties, binding and million the under guarantee. additional ahead. with million from complete, we’ll from million once million, parcels removing These to properties expected $XX be upon the office as waterfront and Furthermore, optionality Imperial are a becoming for month, office hotel $XXX $XX

governance efforts we Veris our ago, are of by prioritize diversity, year social stated creating sustainable environmental, commitment shareholders. of the formal for properties, approach enhanced fulfill equity planet an practices to over best and inclusion, continuing significantly support valuing communities to and the creation to seeks all through implementing and and purpose, value with our and that have just to people a our Since launching initiatives Residential, approach Embrace company’s

of gauge modified public Veris Index, Bloomberg gender-related market a reporting Gender recently, capitalization to index of was to the Residential Most weighted dedicated developed companies Equality data. performance a XXXX member named the

the strategic estate Center a We also leverage world’s formed innovative to with MIT positive global explore to and jointly of Real will and X%, Estate, companies educate future. partnership to for their solutions inspire, movement impact empower joined Pledge for the foremost resources technology, social help a the and of efficiently evolve that and industry the effectively one institutes our real study for for

value We During the seek past portfolio. complexity the fifth strong and begin sector-leading balance well enhanced challenges equipped and reduced platform, of to for across XXXX unlock in and a we simplified lie multi-family company, in strengthened have economic consecutive successfully operational as quarter streamlined our our years, the two a completion performance position potential of the weather sheet, across shareholders. and ahead resulting anticipated and transformation that the substantial created to we near the

our quarter. update during over the hand With financial performance to that, who going I’m on it will to Amanda, you

Amanda Lombard

Mahbod. Thank

income higher year a common versus to fully was multi-family and was diluted full $X.XX to available pure net prior the XXXX $X.XX XXXX, loss the fully on in For higher per XXXX as sales shareholder transition year. REIT result play in Net per shareholders assets. in common to of gains a ongoing diluted available share non-strategic recorded the share of

$X.XX $X.XX and and XXXX Core of fourth the year respectively. FFO full quarter for was

As near pure our company play transition to a communicated drive previously, the multi-family term in continues earnings. variability to

despite generating in than earnings flow assets As the long rather high value requirements assets term, depressed with results in short earnings and highly little short term levered profit, distribution we cash for these focused the driving of are to term capital on sale growth shareholders.

non-strategic over significant conclude equity released next we is transformation news there as the XX growth and earnings sales, significant the reallocate from room good The is for months. the that

catch-ups would this FFO backdrop, all earnings and from have fourth of variances core third we one-time noise, and quarter been the added fourth release reconciliation Ignoring real have excluding expenses taxes. our quarter of Given Jersey a City estate property-level the the $X.XX $X.XX to in related to the items quarter.

grow continued further in sheet. overhead strengthening the due of the structure, and space cost We the believe that HausXX earnings will lease-up, our in improvements to balance

mentioned, reflect as GAAP in Mahbod February; stabilized burn occupancy lease there are As year. will in that NOI however, off achieved the over concessions next doesn’t fully HausXX HausXX the NOI the stabilized

In under NOI of retail be by our in $XX and the still the achieved which presented fully XXXX is is addition, lease-up. end to stabilized NOI of includes expected supplemental million

to growth, higher however, estate City a store Annual primarily strong due despite same flat, catch-up anticipated, rental store dip real we in year-over-year NOI Jersey was XX.X%; as and to the was sequentially in and same NOI relatively taxes up more increase to and to seasonal in growth. some of capture normalized store [indiscernible] X.X% Sequentially, rent trends. will saw revenue leasing an rental we activity our return C-market of same a from believe continue due that we

during As that million will XXX Mahbod pool include around of mentioned, year. XXXX $XX the store three our comprising same NOI together properties additional contributed units

quarters, the in City. we seen have Jersey taxes estate two last real elevated For

control at our pilot changes, tax we future that real agreements of While estate all over can place appeal little we doing newer properties. are we many have taxes have and to in rate

to among transition and year of X% play inflationary growth store timing our and we reporting to were it that that decided controllable in mitigating multi-family illustrates expenses other align anticipated to sequentially near expenses the XXXX. Further, As believe year, pressures be breakout company, in in controllable expense will completion expenses. flat of maintain the we we over this the our out the function inflationary break the pure moderate multi-family increase expenses current a environment. almost able same as that companies costs is believe important property-level We a with non-controllable have of continue controllable and are incurred. is despite which We

annualized and exceeded. which that was $X adjustments and In million to In expenses quarterly one-time for greater core capitalized a $XX.X an charges, general ago, expenses expenses. including G&A These real $X $XX the $X G&A reduce was level sum on cash or terms, after by Turning XXXX was in year basis. of lowest million, sum two savings reduction services a to a million. in our severance implying million, on basis administrative set a million XQXX, representing for we even costs, real estate million Over the decades. over target we our core were $XX.X XQXX,

team, business to realizing and cost enter the right-sizing focused years, we the in as manner final multi-family across structure and to payroll into the on deepen our effort substantial began this our organization, thoughtful Over with To the adding We a company. we a savings. of last focus orderly eliminated limited XX on operations talent well and stages bench we over people, a transformation optimizing us positions, have ensure positioning our date, our enhancing have duplications disruption. removing two

assets from expect single into our midcap location, size our business. people, among certain headquarters the of corporate of stem savings with G&A right anticipate We cost in help continues services consolidation commensurate to processes percentage now peers a savings ensure in to of line and place, gross internalization a realize previously efforts. to as outsourced be policies G&A REIT the these and with is that other and will Our of with further currently we our

use of of non-strategic debt, from pay primary reducing the our down Onto date, proceeds the and balance been to sheet. To strengthening sheet. leverage assets has sale balance the

EBITDA debt over a to XX.X the to times XX.X the while XX%. course assets from un-depreciated As result, to ratio debt of also improved XX% net to improved times from our year,

debt $XX million an We in have was repaid of XXXX, loan secured Hotel February. that Port $X nearly beginning the Imperial XXXX of in of maturing since sale billion repaid the inclusive at the by

As a secured, is result, and million Boston of is one $XX of senior cross-collateralized. Furthermore, debt primarily a only XXX% the mortgage is properties. it outstanding our stabilized year our multi-family maturity on non-recourse, none this

entered Front the environment positioned debt XXX Hotel. Port the of inclusive of We fixed Street subsequent of well XX% which hedged, Imperial our the current The is end and/or hedge company in the with sale was rate to on year and believe interest into total that

As of interest portfolio average of weighted has and debt X.X%. rate a years X.X average maturity a a our current result, total weighted

Hyatt and transaction FFO the and quarter. Finally, for the less Imperial in activity, fourth relation The a recently owned announced very [indiscernible] than the is during of to period Hotels quarter $X.XX small our Port core contributed expected first in

continue the that and to to is believe play variable it earnings to a providing our appropriate earnings as puzzle company-level transformation place, and still unpredictable we so advance multi-family will last pure pieces we company, we As guidance. the our into delay put remain of

core our part this the on it over appropriate provide clarity operations, guidance is we greater feel time to have multi-family we as However, the business. of

NOI For XXXX, that X% we between will anticipate same and grow X%. store

grow by quantum We are projecting as will similar that and well. same store expenses a revenues

last questions, Before over briefly our line of the opening to the years. for work like results the recap two I’d

X, by of have We billion end Harborside developed and growing and multi-family $X from NOI HausXX. pro stabilized increased stabilized non-strategic for the over units, at the and completing XX% XXXX portfolio end to focused and X,XXX from from at of XX% the of the multi-family X XXXX X, sales, sale property simplified forma of of NOI over business, and our our XX%, share

including corporate nearly age sheet, Veris with per our $XXX bonds peers. average multi-family We of best-in-class were million boasts also capex highest to due an Residential recourse and debt, multi-family in repaying the extensive portfolio that offerings, six lowest $X XXXX XXXX. unit mature of publicly-traded balance a years, and revenue billion amenity our average to of and compared strengthened

approach we and of of completion continue highly anticipated of team all remain creation together the directors focused As the and closely transformation, work board our on shareholders. management to value for the

That concludes for now Operator, remarks, ready our and think we’re I questions.

Operator

instructions] begin question We the [Operator will answer now and session.

question with ISI. Evercore ahead. Please first from Sakwa comes Steve The go

Steve Sakwa

Yes, here. questions Good morning thanks. Mahbod. A couple

maybe talk land, both to is and company, but timing the both got you’ve and buildings there’s non-core you’ve and simplified couple land, inside lowly development about you still the I land office greatly put office from there maybe that guess of investors can planning buildings, that Look, for much side you’re understand anytime JV so maybe the a the I the not soon? and on just today some into Rockpoint appetite the outside, left not leased the assuming service

Mahbod Nia

Good It’s the for one. morning a relevant Steve, very and you question. thank

by priority take the the company, years implications, in this yielding the fact start not terms would which for minimum to that focus three and development not at so time. a in to is that development four is term capital income, a leverage company, is begin etc., time what a entails requirements, of a the at for that saying this would I of priority near given

out, and further once rationalization for assets, X, office point remaining is buildings and the the and that two potentially non-strategic X of As you correctly X close, as X, remaining X the land. Harborside some and Harborside

seeing are interest We in both. continued from buyers

at extent may but on balanced, the rationalize and mean the We we have those date, way does to of done both it office as in them due We’re evaluating that seek and side. the the sell It side to have the course. doesn’t land been we our any mean designated we’ll assets further office measured and fire balance residential price some options, with the non-strategic. assets on to tomorrow, thoughtful non-strategic exit as will a

Steve Sakwa

would you’ve you the would sort close market joint down to the and question, a Rockpoint venture. second my is with realize sales proceeds, any that whenever that hamstring expectation off designated what mark? the and Harborside along the you do Okay, are company paying you’ll asset, line or think about, the and try maybe that that to in other the in officially haven’t or that either I I question do you I pay the you of the the you credit but via Rockpoint with pay of venture guess or suburban cash debt, would have, bring cross look simplify the and is, off extent there that talked that you restrictions preclude

Mahbod Nia

know, venture, is you go the determined that if reallocate we is which the there’s are occur deferred that for negotiate down and that’s to that XX up we a be would so efficiently obviously can it. consistent the the triggered the framework to the released, under to the determines so to party, joint or we repayment it manner framework, that be a months, use buy-sell otherwise the what path sure I’m be will within can highest do capital there look agreement the equity that with is should best framework, in or Rockpoint could as to extent within board by Well, a that certain parameters by

other was part question? sorry, I’m what of your the

Steve Sakwa

the any trying capital? on limitations just of use was are there to I understand,

Mahbod Nia

credit you proceeds only the current limitation Harborside, obviously--yes, would of the limitation or the from for the is given assume have line, revolving Rockpoint, represents the other a of only the is Yes, should repayment credit sale collateral the for Harborside part really and potential of collateral, the come facility. to

able would us our that replacement nothing forward or restrict move in facility, sort You that to under of that there hamper to should revolving there credit the but be with that be assume Rockpoint. or framework ability amendment of would direction some

Steve Sakwa

Okay, great.

as Just multi-family May, got you’re out increases even on I going existing to February? renewal from and January guess have out question about you that and look might that in March-April and side? December, me, Where how the you to the maybe how at potentially renewals to, are you last of residents that sending thinking are notices those kind out, the compared

Mahbod Nia

looking Well, strong. still it’s quite

at and renewal some that still others at level, for We I which will of to hope stage. around tell across But that forward, helpful you we’re expectations. what they the double-digit couple looking have can next is normalize tried provided this do think going ultimately notices months temper find I at the we We that lower guidance portfolio. a and will you

Steve Sakwa

it That’s for thanks. Great, me.

Mahbod Nia

Thank you Steve.

Operator

Catherwood The Tom ahead. next BTIG. with from Please question comes go

Tom Catherwood

everyone. Thank you and good morning

Following the Steve’s are Harborside up this first question to we I where for expectation and are X, Mahbod, close, X? the the on year. kind know was in we of X process? with I sitting sales, quarter on the How looking of that in think

Mahbod Nia

and, actually Good indicated. frame that frame. closes expectation morning time until within much that we’re but in know, will Possibly, our originally that Could transaction it’s still we on timing confident that buyer everything market. with today, that It we is the tricky is Nothing done. transaction is close based here a still Tom. regular dialog that that time feel within done very today had slip? we Sitting

Tom Catherwood

triggers are obviously review? early stages the was that of put strategic review January on can that Back it. the due commence launch from out, press and that release negotiations talking to the the and a strategic the come course. you offer had planned the about comment that XX you Where what the Kushner, Got in are process, in that process in had board

Mahbod Nia

now that have Look, their is that market of of that to given best corporate parties, on side less currently interesting we’ve with practices, which of the have value would spirit it fiduciary for taking transformation, recently shareholders and on the the beginning any the governance where you’ve the due board with in from to and be known a any transparency, that just is factors was on seen highly interests the the board it into this contemplate who we had are and obligations to reconstituted, appropriate all also transparent best move are interest a would time, be it assets, reach to are board of and in some making shareholders the process the number focused interest relevant forward a at is--what conclusion multi-family the that transformation other in determine consistent expressed stands evaluate we ultimately that of of sale those strategic of sort portfolio, non-strategic an whether the for inbounds the conditions, consideration credible path as in running hopefully and institutions and shareholders, to independent, there. maximization the course in we

No factors specific definitive time those consider. frame of given, but board the sorts would I are the that think

Tom Catherwood

in you’re carrying of that net that last color, value for interest Rockpoint from investment. been where that looking the hurdle Appreciate declined. kind has change looking changes you’re What a change couple investment? to at the quarters this it. as is one IRR the a Got I me, that’s of underwriting that ultimate value has underwriting that asset assume you’re the Mahbod. that in as with row Then or

Mahbod Nia

based on side the on the in we joint a venture value, have look, Yes, quarterly a multi-family Rockpoint, and an that’s with reassess basis and obviously we business the of go of seeing. into value asset which cap by value entity take that other and in factors to and where sits the determine relevant of and asset rates you’re that ultimately value of all would stake. imply what through consideration terms That’s we

some the the for it’s the primarily movement rates in If and you’re implications there, by seeing obviously value driven assets. of variability

Tom Catherwood

how move, has cap of far part As material as been underwriting? rate that that that as

Mahbod Nia

draw as of markets where it’s say would it’s to. any overall so moved the Look, terms have far values are to moved asset concerned, have conclusions too in cap asset, as early by or to I rates

the We’re especially price triangulate volumes comps that multi-family the wall Transaction value reflect still to to science. a bit to extremely too Jersey that’s capital think quality in ultimately seeking acquire so high we assets. of scarcity in little we muted, aren’t is to assets, but where art There the tried here these a assets, discovery. of quality City of assets, really an the have a we would as of concentration are many still it a period opposed these of of and

Tom Catherwood

Got Thanks it, answers. appreciate the everyone.

Mahbod Nia

Thank you Tom.

Operator

America. Joshua comes Dennerlein of next from The Please go with question ahead. Bank

Joshua Dennerlein

I more. hey guidance assumptions Thanks the for time. little into to guys. Yes, just dig bit wanted a your

first as a just what Maybe or growth? new as growth are rent you lease rate market far one, assuming guys

Mahbod Nia

Sorry, in what are assuming of overall terms we growth? rental

Joshua Dennerlein

for portfolio. talked know growth you Market I rent so. rates, multi-family earlier renewal the to

Mahbod Nia

For region this rental of X% assuming in coming the growth. we’re year,

Joshua Dennerlein

portfolio, - last compare what across percent saw rent year market How Three okay. the you does that to growth? just

Mahbod Nia

saw tempered growth. market somewhat into so as City, where last Class we We the months. the around a of it’s and headwinds in XX put concentration that last to it year, economic last for ahead, A, growth the XX% assets rental year rental Well, X% of highest we’ve potential pace obviously achieved given down got Jersey context, saw growth around

Joshua Dennerlein

on the maybe as guidance? Then are into non-controllable taxes, your estate awesome. baked as far expense you expense seeing growth side, real Okay, what’s what or

Mahbod Nia

say did or you side--sorry, the controllable on the on non-controllable controllable? Well,

Joshua Dennerlein

The non-controllable. just [indiscernible]. guess I’m I

Mahbod Nia

magnitude would of Non-controllable, suggest to come, increases, any country, seen. they tax future we be in the Jersey the we’ve high extent significant as and assumption that XX% so taxes, so the as really, of quite increase, the that and a one pretty saw hopefully a increase perpetuity, would be City that’s in highest not that sustainable won’t that in

costs going saw the our mitigate we inflation, do further What forward us do to where we and to continue year-over-year focusing reduce really side, the controllable control is cost optimize slightly to impact to where sought structure the there. efforts on you by have we’re where that’s more actually really of definition

Joshua Dennerlein

thanks Great, guys.

Mahbod Nia

the Thank you for questions.

Operator

Nicholas The ahead. comes Please go next from Citi. with question Joseph

Nicholas Joseph

morning. good is right there follow-up Hey, how but now? specifically current value shareholder creating public beyond A on out a bit team board the and the the here, offer planning of

Mahbod Nia

the--? beyond Sorry,

Nicholas Joseph

The current public offer from Kushner.

Mahbod Nia

so I Well, see. that on I wouldn’t there’s Nick. say Oh, path,

have, recently said, that that on a maximization and has is very value obligations inbound highly to independent, of and have doing the their value evaluate I any reconstituted transformation a as for I reflect offers offers parallel and as they board such continue shareholders, strategic fully been focused will in transparent, the and with on obviously must credible intrinsic and you think all the management Veris be the we’re funded work that any But Residential. must of team. fiduciary

to where either financed board short dealing an is that has with but With sits. NDA, gap signing Kushner to you’re does and step Companies value and like situations think particularly if a we we first fall that there the world share nonetheless of with it the normal to, clear competitor, aim can regard whether you’re in $XX.XX offer bridge made offer, new and see non-public significant when in our logical does quite can engaged which so referring constructively we the has a remain is value this, question sits, the the with board that of of information view where mark of a adjusted that a value

board as team SRC. Ultimately time the and and to or The board two agreement is a made the to for very a basis, forward anyone that’s mutually management so path to Kushner board extent Companies spent NDA. really the that are remains not on decides concessions a ability on end else has qualified and the with business, any engaging much having mid received to at the simplify continuing time, have willing on we to process, signed creates The decision transformation. that able process, exclusive. But to and NDA, complete not that move the of be to the the who we’re as open get to that stands, value the entity that believe value at crystallize a focused we it

Nicholas Joseph

a anyone for are having beyond with Kushner? that quick Then you thanks Great, other follow-up, color. conversations just any

Mahbod Nia

inappropriate we’re Well, multi-family press in specifics, a making transformation. mention we that for comment of expressions on XX release, the any portfolio, interest for of January we’ve it’d had but strategic strategic given the be me did the the number credible on inbound as progress to

Nicholas Joseph

Thank you much. it. very Got

Mahbod Nia

Nick. Thanks

Operator

The Advisers. next Please comes Green Pawlowski John question ahead. Street with from go

John Pawlowski

Hey, good this morning. we expect Should year? acquisitions any multi-family

Mahbod Nia

Are on Good morning. the be, use no decision sales, priority? ultimately at about as equity that’s and so, highest a of don’t has you amount will the and the released been I best what’s be but acquisitions the Ultimately asset the--if would earlier, but decision it capital. capital of of this mentioned uses to think the at be should for time the that think it’s I it be non-strategic between that made significant, point. they remaining one a appropriate imagine the from would uses for considered, I board make

John Pawlowski

beginning, follow-up a development fair maybe Is to just a and not any expect like that this we the Okay, should it at Steve’s year? starts question interpretation? sounds

Mahbod Nia

believe would I but able board, to to that generation Again, on it cash don’t something that replenish not a to metrics, be I is cash will with leverage assets of given board. conjunction the the office don’t ultimately, a considerations, of highly the But to as dividend proceeds a on, turning in I of I say, levered made development the be lost That would our other rule use - discuss a want priority back focus flow flow look from namely out. given Yes. with decision be imagine something priority. and ultimately and sale we’d that position be get being will

John Pawlowski

properties? the these just process me, is from you question X curious on are sell the you and Harborside soonest Last could and how X, marketing along when realistically, in Okay. far

Mahbod Nia

hasn’t I looking with in We’re we and two clearly two stopped what making progress would not in I on thoughtful, provide half say two, those but with for time last ultimately any kind challenging transactional it considering to balanced, our of to but the when and sold. from that I would looking markets have way, say you a think regards us is course, despite making a COVID to options frame and not we’ll been update assets really guidance, years measured progress we any and put are we’re in, due those get and in

John Pawlowski

Okay, thanks time. the for

Mahbod Nia

you. Thank

Operator

from go question with next Johnston The Please Derek Bank. comes Deutsche ahead.

Derek Johnston

Hi as your If you land in the can which interested multi-family puzzle of to you portfolio, you is field kind part speak, and bank keenly mentioned that’s if pressure, morning. there? yield the pie, part so good of that remains ability you as just limits for potential could incoming Mahbod, thinking or land everybody, expand. the transaction, acquisition as so aren’t costly discuss of interest probably the buyers that development any under

Mahbod Nia

you land and as have Derek. platform, absolutely interest, inbound to and continue thank those a huge for the value are interesting in That’s observation is buyers, to expressions because so in some the expected, great controlling largely land, there the developable of business. it yes, is Yes, of multi-family in prospective some

something the of question is, working to--you further extent board closely prior part with advisors we the and of as that of The balancing it determine. some interest, rationalize should a our That’s is act transformation? and to all it and know, we’re to

Derek Johnston

thanks. Okay,

can follow-up, and the us what bank quick it parcels? a the entails, Just of you in remind entitlements land the

Mahbod Nia

it. units we Value-wise, $XXX what million, just X,XXX developed be and can believe is over around on

Derek Johnston

time. Thanks for the

Mahbod Nia

questions. Thank you the for

Operator

Steve from go with follow-up ISI. ahead. a have Sakwa Evercore Please We

Steve Sakwa

sell Page roughly assets, estimated some just these $XXX non-strategic break you is proceeds clear, as XXX% or of out do roughly you shared follow-up. this be some to, individually, where X,XXX with that Rockpoint? you land to wanted of either that X, put entity say, do just were JV units. Mahbod, On the owned get Veris, or if that’s thanks. value by for million Rockpoint inside I Great, one those

Mahbod Nia

our that’s No, of value, share Steve.

Steve Sakwa

Okay.

Mahbod Nia

corporate just trying the venture, on [indiscernible] we’re joint What show the what there inside but was what is to side, what’s our share. that’s was versus

Steve Sakwa

might have figure I the to what X, of problematic going bit no which guess for at know with today John’s back XX% on make assumable sell I’m at and guess virtually lack debt, today’s square I office to that I and trying feet, don’t the were rates. debt little better, great. non-existent Okay, was X it assumable low understand a and they a how XX% if question X,XXX leasing guess environment? just trying assets buyer just did if with to I’m them is more in I is out leasing, buildings to sellable Harborside

Mahbod Nia

I think question, great it’s a actually.

was the really significant City It leasing by in Manhattan, absolutely but and across Jersey not muted, growth strategic muted across occur or What expirations, right was a leasing It portfolio. across fourth we driven decline was - was You’re did not initiatives. lease in quarter had renewals. actually by leasing. our really

X of There regard uptick are some Harborside an to with we’re at positive, signs use, early that looking increased would that and that could is actually number tell that potentially seem sort are in use, alternative you. what some an and buyers beyond inquiries, see X, speaking leasing XXXX of but to I office

Steve Sakwa

severance/re-branding you There’s to deal in where $X.X then XX, re-branding, core transaction severance, with million guess were more. me. there’s from a any know or of much I those point but Page at over that FFO, a bit of just of carried kind you to into ’XX? a I be are Okay, don’t much and forward was do understand was add-backs. on reconcile dead to this there FFO costs of and severance/re-branding, expect one from kind how wanted I little costs couple of last how

Amanda Lombard

quarter, related the guidance of all any and fourth don’t that, some more severance now. we’d the for done cost. done In on and expect as this are the that, not been - we’re Hi Amanda. but we time future Steve, in giving they’ve far re-branding costs as for severance is the re-branding what costs expect that’s and It’s

your question that and didn’t To what go have don’t on if costs, will know some and dead in various or transaction-related and just deal a I transaction professional we through, future. from not more the would happen fees that’s

Steve Sakwa

That’s for thanks. it Great, me.

Mahbod Nia

Steve. you Thank

Operator

like would for the over to This to back closing remarks. concludes I our conference answer question turn Mahbod any Nia and session.

Mahbod Nia

Thank you us for joining today.

course. progress due their and another I’d results, of in the in team forward stellar our that for look to report transformation to again like achieve a consecutive us these allowed pleased tireless have to you and to updating of we Thank We’re fifth efforts operational quarter strategic quarter thank you. performance.

Operator

has concluded. attending conference now presentation. The Thank today’s you for

disconnect. now You may

Veris Residential (VRE) 22 Feb 232022 Q4 Earnings call transcript