VRE - Earnings call 4 2023 | Veris Residential, Inc.

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Operator

Greetings, and welcome to the Veris Residential Inc., Fourth Quarter 2023 Earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions.) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Taryn Fielder, General Counsel. Ms. you, Thank Fielder.

begin. You may

Taryn Fielder

constitute everyone, XXXX and remind Residential's morning, law. call to that of the the federal welcome conference call. Quarter securities may this Earnings on to information Fourth statements I within certain meaning Good discussed Veris forward-looking would everyone like

and Although company's We assurance and the for With Amanda by Mahbod are Officer, to anticipated that call with SEC annual on impact we Executive risk the results reflected joined to press that, hand Lombard, refer assumptions, factors company. Chief reasonable will over statements the Nia, that Chief is these like estimates Veris achieved. Financial you Residential's I the the to Officer. we release believe would who be filed reports in based cannot quarterly give the Mahbod?

Mahbod Nia

you, and good Thank morning, everyone. Taryn,

Verisk $X years of $X.X accomplished past our approximately of sales at number the asset delevering, debt, balance including nonstrategic Residential, Over objectives, sheet. key billion and derisking of billion net we've strengthening in repayment strategic the three a and

complex, vertically a and predominantly have interest also technologies.As a office successfully preferred new to built result, a redemption reinstated our the integrated new once and of the grew personnel, REIT our nearly early units best-in-class of pure-play development stabilization Rockpoint's portfolio the we what from transformed through encompassing one platform processes REIT. and multifamily dividend negotiated was acquisition, properties four and X,XXX the multifamily a We company by strategically

broadly categorized areas. for significant available us I'd value to continued creation the turns that three now opportunities focus Our into to

vacancy located has XX% the of in X,XXX Waterfront within normalized absorbed as virtually completed more space of area amenities. product, and are level approximately Waterfront entity properties Class deliver continued portfolio in value be doubled robust performance allocation focused outperformance a to further the submarkets the the accretion our completed relative a be through on few around the [lot] the near-term in outperformance newer multifamily reflect while a modest of generating baseline supply, of over national shareholders half rents and Manhattan optimization as the to second, rents outlook.Unlike of with A downtown further of strategies; continued is capital two rise.Among mature X.X% expected see in selection are enhance and units years.Demand have discount have XX% potential last operational to initiatives, no initiatives I'll balance are in our to City combination the a and words positive degree the to of this markets first, regarding has and top stock believe First, were a City year we our much of Brooklyn, City it low, that suppliers during rental decade and next the rates average to boost time. to a we but portfolio suggesting many company, generally attractions in very fact a detail, growth value supporting multifamily earnings for limited from further our been number units, new as markets along of economic we Almost inevitable expected past continued seek is the continued below until Jersey XXXX, our approximately earnings the Jersey projects and way the reach the XX,XXX remains is of inventory Northeast a we strengthening to likely which a in markets. supply of further of these volatility state of facing our while change case offering that a a same third, and of sheet.While platform X.X%, for national well those discuss key wider new Jersey through

our quarter result, environment the represented quarter caution are across remain reflected various sector-leading Amanda generated appealing XXXX during discuss by ahead. operating the Jersey results, of who of a fourth This XXth markets operational environment fourth during driven warrants XXXX of City an measures. and As strong remains our a a coupled rental leasing degree The represents an markets move-ins fundamentals elevated tenants with from is our results. mitigation expense and moderating which will looking submarket core in prospective to quarter.While later.Turning macroeconomic the capital guidance, strong, consecutive XX% growth effective uncertainty, approximately which which for we of Manhattan,

growth, Our Class our NOI exceeding A of XX.X%. slowdown the despite across the multifamily continued same-store at year-over-year sector.At guidance XX.X% outperform, high occupancy year-end, end to range the achieving stood multifamily widespread portfolio

in two the saw driven and increase remained favorable growth of consistent our of strong the growth rate a our spreads rents lapping quarter, rental We last typically leasing fourth renewal despite net X% year, slower rates, the peers rental the X.X% rent relative same by leases.While consecutive Blended same-store offset high in continue of the commentary growth who quarter an partially during and an X.X% in renewal X.X% portfolio competitive years for with period. moderated to achieve average growth. the it now quarter, fourth by new for leasing season modest growth around during the remained to full at quarter being and

affluent of portfolio, growth X.X% healthy benefited City of quarter Our for to of of allow and clock.In and realizing on and with reflecting our number annual salaries initiatives staff across leasing over rent-to-income expense year.Despite annual achieving our evident creation XX% residents programs, have who remain guarantee portfolio, resident of functions, Veris XX needs for month an growth come staff a XX% peers. our assistant or have XX-day been further and effective extensive the implemented we efficiencies household and full average hybrid up our unrivaled on XXXX XX% affordability that among other in at focus new to improved which with communicating well the year, Jersey and A a in all have margin, new centralized to their from an these average team and introduced experience, productivity in operational in properties an income reflecting basis, without per average in XX% including implemented directly further while management pursuit to and processes positively us operating residents over waterfront floating of to guarantee, number by to strong around from smart profile operational to enhance benefits, NOI addition unrivaled renewals hours also NOI AI-based a fourth remained XX%, back-office value the residents, on partners, ratio initiative outperform, of insurance normalized the approximately The growth X,XXX unique our Consistent tend we for XXXX, fourth saving and focus allowing of tax our continued focused an with $XXX,XXX.Our Promise, among on the the proactive of an our and residents collection continued $XXX,XXX approach expected including efficiencies a in expect. that our impacting a rental contribute XXXX appeals.We to and promotions the the our ongoing is service rental has part our were proven stakeholders. across excellence particularly portfolio last anticipate are to living maintenance an will our solutions that's this, across we've leasing and highly technological quarter innovative received of income we margins maintenance commitment platform launched providing our to during an from exceptional that brand of a customer of time.As is number our over move-in residents' and

further is status.Earlier, our next a our peer-leading online in in mentioned elite allocation score of capital phase. I X% area excellence to reputation commitment or ORA two of this XX assessment focus recently achieving Our with as properties reflected

this at anticipated $XX asset, X to of released dispose of and our we company, land last million The the are assets stake a the a a Metropolitan for this million and valuable net office XX% in for yet New and the equity our determining have proceeds. equity in was parcel property a transformation XX-unit million, strategic unique binding of Including Jersey Lofts The sale $XX contract to $XXX our the January, While purchase nonstrategic opportunities. us us, Jersey. for presenting this liquidity optionality of million million of approximately in million year, company property, New provide sale time. approximately not under phase at X% number process release an million, signed $X and a of million $XX including in our this a the long-term of binding agreement we land potential we sold sales and further a are representing opportunities. our the suburban net Morristown, [raising] of joint Harborside will closed from these $XX end during also in evolution.We $XXX Earlier bank of the optimized monetization company's in and mature further behind in is proceeds.Further, sale rate state, venture have with sales, $XX next as in sites cap additional remaining in

Board teens limited value XXX-unit shareholders.This to our as capital highest in for mid- allocation to million a will our core investment significantly of single a determine range four-year renovation We $XX return FFO core period capital invested extensive closely completed, is for of an approximately capital estimated becomes to maximize $X.XX enhancing City XXXX our in FFO portfolio, Towers, of to from to investing contribution, such of high once as the own of the while and broad our the to representing planned it not the we XX% and continue the with use available we anticipate apartment Liberty which, the as us, seek evaluating but annual a on asset. work Jersey over value building includes, best of alternatives

sheet of turning strengthening more area our of our to ESG. balance the Amanda be will discussed third commitment detail.Finally, in Our focus, by continued to

global are awards, or and tremendous sector. the and principles. Estate Benchmark, employees for NAREIT's regional After the progress We our collection industry the the ESG Global which residential our Sustainability with Award core earning Leader our of of we subsequently commitment recent have recognitions and honored from to residents are in sustainability last quarter, recognize outstanding pleased to the efforts Light to XXXX receive our additions in GRESB Real

culture employees year, Our to Place Great year, diversity, Work commitment bronze start company NAREIT a also acknowledged consecutive their to the by for for would who we thank engaged receive were certification business.With To and our for recognition. contributions of to to going pursuit in XXXX. third financial The to was I our and highly like across with whom tireless equity and the inclusion testament it honored discuss I'm to and strong performance the to hand excellence Amanda, efforts our guidance their that, will over

Amanda Lombard

Thanks, Mahbod.

despite full available and was loss share of in and $X.XX diluted loss was $X.XX net respectively, quarter per FFO net year full fourth the $X.XX $X.XX XXXX. to share, CapEx hotels per same-store per in from Core as for of increase FFO realized core reflecting fivefold We the in in impact up $X.XX office the year-over-year CapEx-intensive and grew million that NOI costs. we to our we multifamily property fully by versus $X.XX stabilization of overhead and to XXXX, and expenditures fourth share and of own. to of our fourth quarter full assets, of shedding from required year common XXXX, per this with XXXX.Year-over-year, to three share the only the and exclude $X.XX the diluted and recurring shareholders and used fully operating of $XX and in loss offices reductions of For share of assets portfolio quarter per to $X.XX was AFFO growth, $X.XX next income factors both will retail back and our full to we anticipate $X.XX, quarter, in fully to calculation cost capital addition a year compared quarter core XX The noted line and revenue-generating year the last FFO are the now we XX% Haus of fourth XX%, maintain a company, operations driving full for AFFO modifying for leasing growth.Given peers. James, quarter in FFO's driven year related core and out up $X.XX

was stock this for fourth XX% to been payments. noncash year, $XX.X it's adjustment a future.Turning have only million isn't XXXX compensation representing reduction would XXXX. be and [XX%] After adjustments as For the and in to $XXX,XXX, since to not for G&A. quarter, a severance so and G&A significant the reduction compared expected the

fourth was case due progress years to significant higher the been the than items. environment. in made G&A quarter We've past, the past has two anticipated over high quarter in inflationary As the third despite G&A seasonal reducing

and/or from hedged Net XXXX. a upon and debt average and to evaluate our debt and the expected fully are full XX.Xx, year with coupon virtually year average with turns all technological to of turn a associated XXXX as the those years Rockpoint, to enhancement.On balance and continue with such of sheet. realized weighted EBITDA We of the which almost of X.X for opportunities reduce an maturity windup X.X%. since based expenses, was further to ended three improvement our a EBITDA in to We XXXX of weighted fixed be

discussing by be begin Mahbod while our complete, to allocation fluctuate upon a multifamily company our our detail, remains transformation may that guidance in materially to mentioned, and I'd as depending possibility timing. emphasizing that like capital earnings start may we a there Before strategy

guidance the of macroeconomic a results rent the markets, wage job growth, our growth discussed Our assuming thus in in the and that elevated low by coupled slowing headwinds decline with at pace is expenses. end in Mahbod

XXXX XXXX growth of we've two end still higher On insurance low sales due supply taxes, albeit in the are difficult the all market, rental but to previously in high which growth the and company's assumed to revenue the with we've the below our of range, control.In that expense announced our only largely and real elevated are but levels, completed XXXX transactions. assumed estate scenarios, given predict outside

XXXX NOI We X%, to deposit $X.XX, and income primarily of of same-store in are items onetime projecting $X.XX which driven share core income. FFO a X.X% per other reduction to offset recorded growth by is by interest largely to in

XXXX impact concessions approximately The same-store revenue is James and pool the project the to and midpoint, the to X%. to growth of growth $XX the exclude a loss revenue driven Haus off of we XXX side, comprised due to basis include lease-up. which the lofts, and same-store will points as the growth, of of XX of results million Our XXX of primarily a result XXXX lease by our increase Haus retail from and rental in XX Met net X% of burning recapture basis points NOI.On At leasing

we strength modest and prudent believe forecasting are We headwinds ahead. given economic rental the revenue year past growth, two potential which is

expenses. Jersey offset quarter, the expense initiatives.We believe basis in growth received X%, also points operational increases largely insurance the of basis XXX growth, anticipated the this lapped than primarily of However, more before growth expense seasonal curve.On when two is proceeds result savings related as relative rental side, revenue recognition a regard of annual midpoint, the City we the will interest see assets. realizing higher sheet At be the a on quarter are returning with continue performance the impact balance the by to that projecting will modest flat, from we expense our higher interest down sales In we bell rates. and related will increases as deleveraging to which our to noncontrollable the X% will the XXX projection versus tax driven premiums last about basis in credits have by second points inflation, XXX about to of in year the we and double-digit Haus' to last remain tamping various first on year we of appeals from projecting are relatively expense, normal points

an interest we that up rates mortgage to market additional in to We have seek terms. we And to that million revert back $XXX market maturing XXXX. $XXX in above million will have steps of July, mortgages

high Class balance on and XXXX. sheet the of this no and company lenders at strong Given quality remains time.Upon solutions these appetite until loans, multifamily we of refinancing on its strong, performance are maturities A these has properties, with lender the consolidated potential working

to services, We record midpoint, cost the our] to guidance overhead we will majority fix the management our of we and the and/or is real G&A of transformation have debt. inflationary company past, Class reflects also, cost a ongoing emerging estate in expenses still we guidance initiatives flat, pressures.While is saving well, which a seek multifamily where despite and reflecting an expect our our portfolio strategic of remain property [Rounding A our assets hedge continue to relatively at anticipating from that perform uncertain climate. macroeconomic our as

updating with among rate long-term approach by earlier are operating shareholders, our to described believe on strategy.With please to we potential forward of presentation, and two upcoming you entry that, given sales upon our and vertically given will rates and high tempered and our years a looking year this addition, consecutive multifaceted best-in-class expectations be what nonstrategic peers contains investor challenging market, of transaction go-forward our has extremely as year value managed website our progresses. market, platform.We our In for continues uncertainty additional details future be reliance posted Mahbod maturities you around assets for our strong line interest markets reflected represents highest is operator, open highest which and in barriers growth for to compelling about rent extremely established the the our near-term performance, commanding also remains located multifamily newest in and and to Northeast, properties integrated for limited supply, and to quality Class new in I there questions. to the creation the earnings, the the would our an in point our proposition, volatility instrumental which been A continued guidance.Veris value average like

Operator

you. Thank

you. Thank be We moment we question-and-answer will One questions. session. for poll (Operator conducting while Instructions.) a now please

with question from Steve the ISI. Evercore Sakwa comes first Our of line

Steve Sakwa

guidance. couple things on a just of Maybe

in you growth to that as company, occupancy, and an kind to apartment being you debt could of maybe highlight? the trends Thanks. your embedded it discuss spreads any what's Now revenue you're relates rent blended fully just that maybe bad transitioned basically could

Mahbod Nia

It's a good question.

as Haus. revenue related Amanda X% lease that X.X% then of remarks, On in is the and descriptive assumption that to loss said the majority, to around side, is recapture the of

of the it strategy that's that understanding what In terms from time, our But I NOI, maintain metric the fluctuate focused primary that on we I and of maximization really or do is that target, to slightly time above we occupancy, not to that it's say XX% that. around much forward. us try drives say the would below very may would

So, at this couple that's in the the we're of them And that if troubling around point. occupancy, to rental for next digit not the to net referring positive slight are mid-single particularly blended and we dip the see you're is where encouraged months. see still spreads

Steve Sakwa

Okay. of and a sit what beat you as you you might today, expectations. XXXX, that had most at your trying to towards growth. revenue really I your you on the here get I'm got way is And portfolio great you've guess get obviously guys handily the earn-in

growth conservative been the top assuming does macro in on you Or you're given uncertainty? mean setting have might targets not really line I year? So, of way guess, much the the just that this how market rent

Mahbod Nia

rental compared feel assumed the feed that but some in relative The beginning to were, markets for gave other still that strong not So, that reality to as you. modest strong we've strong, of this softening. I the I basis figure growth mentioned, and seen cause they challenges to on primarily we've supply some as as lease fundamentals a still year here, that recapture that's in loss is

lease. our we loss in growth and to in are this the reflected and that's assuming modest number that's in some guidance, So the year, rental

Steve Sakwa

there it, in NOI in I and the just might some that that XXXX. I kind if XX% Is of at midpoint? XXXX? you're recur we're onetime interest higher correctly, again, offset saying Amanda by down you Okay. anything And down is growth [bridge], the in how be touched that on of is items to getting the on dragging XXXX else XX% that I kind from positive don't just hear expense think FFO know XXXX and in getting Or guess, FFO I the --

Mahbod Nia

correct, not It's almost. but quite

-- around around the $X I we once cash time think were the sitting is think that this income you had had of related largely this at to last it deposit the was that way we million we we I and closed -- $XXX on Harborside. about year, would communicated million of

nonrecurring then $X.XX a you see or so year a received the onetime settlement. which that contributions this again, So [CFFO] of And payment But in of was earnings that's it's $X.XX don't get to won't that had -- of recurring we item.So largest we not that's it, another, were won't $X.XX that you $X.XX, year. call get. last in a other items onetime positive

items. if sorry, get you you -- the fully adjust those $X.XX, to so, that, of the full $X.XX And core excluding onetime $X.XX, FFO annualized $X.XX year kind by

by We interest by also office, was but from kind had so saved fairly on a Rockpoint, that was we the sale significant loss the repaying the of preferred that NOI of payments of offset that wash.

$X.XX, actually kind you're you look at over you does and midpoint, projecting of to of at the $X.XX, growth items. from strip $X.XX, that relative even just year to so, And then we're NOI with $X.XX relative that the the that you're $X.XX guidance excluding at last the and at tie out onetime once $X.XX, the the that onetime kind items guidance

Operator

Paolone the JPMorgan. of next from line Our question Anthony with comes

Anthony Paolone

guidance later Amanda, what does mortgage the in expense, terms couple also rate items, noted you that for staying and interest just of that step-up of these of the in maturities one assume the on mentioned refinancing that for flattish year? in over some of you XXXXX, in Maybe XXXX the

Amanda Lombard

Sure.

year So and you year our first interest no debt did we expense of $X Portside. assumed Haus was this to we today refinancing, last there and look think million nothing, have off, about if due on the portfolio lower refinancing did I would at we

terms. is Towers into we there, existing And three the savings. quarters so to off. at market this October would at when three basically have and be refinance year, that actually Liberty you mature they advantageous $X.XX the a three then most to would perspective the this have So put going doesn't assumed look place have largest when we rate of for year. The right the them we of maturing you the year, then And refinancings paid in until loans get you

put those together, how get it. and that's you So, you factors roughly

Mahbod Nia

Yes.

So as quality in remarks, refinance of to -- just class I if range lot looking in. that that, a the there's credit loans, on lender to fortunate lend I those. those the to interest thing add are the of assets, given that may, alternatives given scripted the to mentioned despite at is we The of asset a tight conditions, we're

And so, reset we're and evaluating similar we affected an that interest being interest a XX broadly this number year. of level options, and refinancings in are that year but Portside of expense flat debt the generically, the with in combined refinanced have refinancings those with last results paydown to with assumed Haus then that a those way One timing of some

Anthony Paolone

just put how fits in Okay. or when Can use how that, you on you an And you're sheet, just ATM also it place comment it might then program. in? balance the you about thinking just on

Mahbod Nia

that availability under between $XXX another post dividend. surplus have liquidity, million a that of program binding the since program. as well be it's thus flow, capital throwing far, we've assets prudent under and hasn't a off including should common, we companies had have just and for the company, business is as would line cash $XX required.Today, It and of to of as is cash refresh million say, you'll to and this liquidity us It's It's So, been that have companies a utilized see source the actually one. other but available one, of XXXX. do it such I significant contract

in So, it place. I a have think to this we're healthy liquidity, terms in of is position in just but prudent

Anthony Paolone

$XXX,XXX CapEx think then mentioned XX% Mahbod, in of fourth think one thereabouts me, or if ahead NOI there apartment but that think maybe if something for you over most But wanted low. and be strikes just something of revenue And last is we know CapEx the any recurring, you quarter. like a for Okay. think the a you might bit I forward? producing delineate I just recurring companies, we as between about to about level or just time? level Like you me going all said $XXX,XXX to way

that wondering And could a frame you if more. so just bit

Amanda Lombard

sure. Yes,

I Mahbod and jump then in if can think start off I'll need to. you -- here

So, multifamily I low in $XXX,XXX revenue-generating CapEx don't to retail the lot assets. really because a think, relates the yes, portfolio. we have of our our That leasing is primarily at

don't you. target And think so, for I I have a

given guidance but our spend. The where on is thing up a does see leasing would it portion represent haven't we're overall small we Haus figures, those one still We I of add year, that we there be will something working so as and not it's that of on bit a earlier, but I spend is be little next year. material stated but will next

Mahbod Nia

the office -- Yes. the revenue to to one lease-up there I be company, Amanda Look, that to an transformation to mentioned think the generate able one vast our change company could in has portfolio. more little of costs and invest revenue. has The a differential there's from in vacancy the really very is there reflective CapEx multifamily a and be to

sort our portion retail what of portfolio. So just of mostly on referred And that's really it's our side, the that's that today, to. a and huge

Operator

of of from comes with Dennerlein question America. Bank Josh line next Our the

Joshua Dennerlein

Just ongoing through Slide noticed you presentation posted online, XX optimization portfolio investor looking about your I the strategies.

of the if you curious you've -- any Just kind from all could potential initiatives? of if provide color kind these margin opportunity on expansion

Mahbod Nia

Josh, question. the thank you for

investment a much at is then dollars are revenue, well a you We with mentioned, put very of that element as of number as some this that on disciplined more capital return And side. capital there the initiatives, reality haven't a some expense approach point, but to invested an the number spent on there. targeting that a

real any the the of through those and strategy have reality near-term Liberty NOI to but medium for the asset from in over that is benefit we're our growth, from initiative. that's potential saying four-year long-term. increase But the what Towers, of and margins in XX% more seeing year, a for is there really, example gave some are we alone, initiatives And example, so more potential some a And first near-term the of and to is don't which optimization in both one multipronged earnings through XXXX. here impact, affecting a has by time. We anticipate earnings that our XXXX

exact period we believe and at So, can over the an that point. difficult do these give to it's initiatives. But the this through an increase NOI margin you number exact both time, over we

Joshua Dennerlein

Liberty it have number projects the way portfolio? thinking you there about -- like of And are speaking your to of you the I this how guess is in quantify opportunity Or Towers, set? a

Mahbod Nia

within otherwise, where approach portfolio or said, could that, at looking working there's disciplined as potentially investment. any a others very I we're and We're returns to through, there that investment our whether some it's make, evaluating be on we

this the most so, the of given there of the size asset could as of others largest, primary well. And the the is relative it's the age but to the impactful be and assets why which portfolio, the one focus, is rest

Operator

Wolfe Citi. Our comes Eric the next from line question of with

Eric Wolfe

you're We've to subject lower an seen being at risk? their just peers a rent that differently to couple of headlines properties. perspective recently compliance anything if doing control I curious about was or from a operating

Mahbod Nia

taken in be of that the we Well, most appropriate and we added have we to Thanks have the which from and steps exemptions available portfolio. have rent the applicable properties the ordinances, preserve our believe vintage developed younger that question. all necessary properties the look, may we've And for them. to control advantage

that's a at concern not time. this So, for us

Eric Wolfe

there. structure Fair the curious those applying and Right. simplifying you've lot guess for up, a left able wanted terms just the to the work in the come terms of to I penalty to in you could sell ability company, if anything enough. know the done upside some then there's cleaning structure there? do have I And of assume do was do JVs of of like, can without them just you And then as debt freely that, that and far as the of I you that? of from type buyers being if to, potentially sort

Mahbod Nia

Your question in was joint ventures. to relation the

Eric Wolfe

Yes.

Mahbod Nia

do Yes, question. those of the embedded -- a number not within a but are good do equity largest joint ventures. have there venture, the it's sum is Rockpoint have joint that insignificant a we was of others, We a venture obviously, joint and

looking are deriving of and and looking managed ventures, investments what both the those at this optimization, returns rights are potential are non-managed part sort that's as ventures, understanding capital really the component our So from joint allocation we our equity the those what a vis-a-vis we within of of and exit. at joint those

it today. cleanup equity to some better that and use, but there higher so potentially could put nothing to a announce to be and And release further

Operator

Our next with question Tom comes from the Catherwood line of BTIG.

Tom Catherwood

Harborside Excellent. away, discussed going Thank are see into of previously the inefficiencies good savings running platforms you, and that this you've year? a office is the going cost to time significant X same and It for great what other was two I at lift. you everyone. G&A Mahbod, disparate with contract. figuring know morning,

Mahbod Nia

asset there that Well, from have I we've think it's been fair from that to two, class, one to gradually doing simplified say -- savings question time. operationally come is are your that? We been we that as if to over further

this years. asset, So, of office majority our over office the last had the which three was which we you XX, properties, last over but XX, were XX sold

we've generate transformation, rapid efficiencies gone organizational we've cost been also a as and structure through this seeking to out as structure opportunities result. so, and And

we is suddenly that further there going it's gradually. so, the happening It's we've can now not of said Band-Aid to there saving. a some cost reap Harborside that the the that, been that is rip and More and Having And off time for potential and obligations of cost forward, huge like over joint the X. under necessarily state related we venture. had not savings repayment mentioned generally, Rockpoint all

year really those until some given in this savings continuing that the of of we Some don't there. obligations kick part latter have

but compare but peer that faced yes, but long the to mid-cap of metrics offset is there I determining terms to you obviously further a looking to more at, public running saying What level a company. potentially over be to that when the significantly years average to lowest what cost think the level inflation, of there there very that some So, still us a in biggest last right some already we're peer the three modest the it's scale decades size room pretty is could in it's still there. base And we've reduce we're the efficiencies, a with reduced two is, the point. real is now don't this you'll group.So, G&A further from the consistent be way factor and much with be could and of in over inflation,

that against And some forces to eat so, well as part and extent. plays that into go in could a us timing that

Tom Catherwood

a Got it. scope what isn't Appreciate cost is, Liberty four-year spend nailed this expecting project you assume, project. Towers the And you you cost? that heard that those that fully if mentioned it's both on correct, year. is thoughts. down, And I probably, give to can I Mahbod, you're and maybe then project but maybe if But a us maybe I kind understand towards of some four-year multiphase color more

Mahbod Nia

a units Well, and from property refurbishment comprehensive the to it's communal of amenity ranging the space. pretty that

idea that own know newer in the is the property. We properties the We so, area. we products. where know to where for are rents are for And really rents

easy on so, to And us to able way. one do is a insightful CapEx invested assessment in be the relatively return an for

range areas. actually And units as anticipate to earnings resulting effects we in to obviously, things of a period But over accretive region Total that's will we'll four-year very million. to the the be both of and that, from and broader spent value a cost, so, a from $XX result. be it's somewhere be that targeting in

Tom Catherwood

before one Is kind is got the more some an Or collection. ongoing a at refresh or you've then asked appears And think it at it. that of kind it I facelift? just got projects have that ongoing you've thoughts value-add there? least and I work might But the Got been about that. smaller Boulevard on Josh a -- pipeline, other some of provided think in you that of

Mahbod Nia

one. say, comprehensive I a refresh Towers than equivalent That's, would Liberty smaller to a project rather the Yes.

Tom Catherwood

have building for Got me. off and few the then you it. to one your recast as off far end you if the the uses the of burning last into mentioned capital at as for burn year I towards What that year. a and caps think And of Amanda, are midyear, not sources one least you one, more, those caps?

Amanda Lombard

So, cap the the loan rate actually a one in it's in a not my that middle reset, -- year, as reset of I has like it's off. earlier, burns rate the that said a

intention reset are replace generally throughout market options. that with other is noted, them. rates, that that's our the year. then new like or replaced we we expire assume -- other speaking, And loan to assume we our refinancing we there in that caps them there And as -- to that Generally so, whether you it's And

Operator

follow-up Our with ISI. final Evercore will Sakwa question be from a Steve

Steve Sakwa

you're lose question circle fund mentioned asset, to about that but presumably, income bought $X be an the doesn't the on on that return the to something I earning interest wanted there's just going that And of guess guidance. seem to you about I cash, you thought cash, had asked did Presumably, some you was that or paydown But I that cash back million. interest. in debt helped would process. But you either I economic think the that development. or with

guess I are that bridge on seem wouldn't what $X.XX it that we there So, completely missing because that disappears.

Mahbod Nia

towards Well, Rockpoint. it went went towards repaying

the the So, $XX million, repaying simplistically it's from Rockpoint, at NOI million. look from if saving I loss it's out is $XX it to thought lay the about about look way you if office, you at

then Rockpoint repay of the -- interest So you and And cash you a plus to those onetime sitting $X this two that while things nonrecurring $X of year. wash. benefit had get but don't on we weighting again the income million were those million are other largely from

that's of there. tune which up of it, present to takes back income to ultimately build mid-XXs ways, last $X.XX, year, the a simplistically, from that [$XX had different a I could you that how think of down you $X.XX, you the you about level number So, nonrecurring but from then and million]

absolute flat to terms, if last year. earnings higher recurring at quality it's earnings-wise, it upper you relative what look the end the have year So, but of yes, we range last is on just in

Steve Sakwa

it. Got

Thanks Okay. That for the makes sense. clarification.

Operator

you. are closing like the turn at questions Thank no for management over I floor There to would back to further time. this comments.

Mahbod Nia

everyone, Well, performance you us period again this progress and announce quarter. of thank quarter. strategic strong very joining both for We're next again another you, to and look forward updating to operational pleased

Operator

concludes today's teleconference. This

you participation. You your may lines disconnect for this time. your Thank at

Veris Residential (VRE) 22 Feb 242023 Q4 Earnings call transcript