1. VRE reported a net loss of $0.12 per share. 2. Core FFO increased to $0.16, up from $0.14 year-over-year. 3. The company announced a $100 million share buyback program. 4. Same Store NOI rose 3.2%, indicating strong operational performance. 5. VRE's liquidity remains strong at approximately $146 million.
The increase in core FFO and strong same store NOI growth signal operational progress. Historically, comparable improvements in financials have led to positive stock performance for VRE.
VRE's financial performance and liquidity are critical indicators for investors, potentially leading to a positive stock response. The announced buyback program is an additional bullish signal.
Immediate positive financial indicators often influence market perception and trading in the short term, leading to potential price increases.
(NYSE: VRE) (the "Company"), a forward-thinking, Northeast-focused, Class A multifamily REIT, today reported results for the first quarter 2025.
| Metric | 2025 | 2024 |
|---|---|---|
| Net Income (loss) per Diluted Share | $(0.12) | $(0.04) |
| Core FFO per Diluted Share | $0.16 | $0.14 |
| Core AFFO per Diluted Share | $0.17 | $0.18 |
| Dividend per Diluted Share | $0.08 | $0.0525 |
Mahbod Nia, Chief Executive Officer, commented, "During the first quarter, Veris Residential continued to achieve strong operational results while advancing the corporate plan announced earlier this year. With a combined $79 million of non-strategic asset sales either closed or under binding contract this year, we continue to unlock value embedded within the Company, despite elevated levels of market volatility.
"In parallel, we further simplified our portfolio, consolidating our interest in the Jersey City Urby, now Sable, assuming management of the property. Leveraging the Veris Residential platform, we expect the property to realize over $1 million of annualized synergies on a run-rate basis."
| Metric | March 31, 2025 | December 31, 2024 | Change |
|---|---|---|---|
| Same Store Units | 7,621 | 7,621 | — % |
| Same Store Occupancy | 94.0 % | 93.9 % | 0.1 % |
| Same Store Blended Rental Growth Rate (Quarter) | 2.4 % | 0.5 % | 1.9 % |
| Average Rent per Home | $4,019 | $4,033 | (0.3) % |
Substantially all of the Company's debt is hedged or fixed with a weighted average effective interest rate of 4.96% and weighted average maturity of 2.8 years. Subsequent to quarter-end, the Company consolidated the mortgage on Sable and simultaneously modified it to suspend principal amortization through the remaining term.
| Metric | March 31, 2025 | December 31, 2024 |
|---|---|---|
| Weighted Average Interest Rate | 4.96 % | 4.95 % |
| Weighted Average Years to Maturity | 2.8 | 3.1 |
| TTM Interest Coverage Ratio | 1.7x | 1.7x |
| Net Debt | $1,643,411 | $1,647,892 |
| TTM EBITDA | $144,191 | $140,694 |
| TTM Net Debt to EBITDA | 11.4x | 11.7x |
As of April 21, 2025, the Company had liquidity of approximately $146 million, including funds available on the revolver and cash on hand.
Year to date, the Company has closed on $45 million of non-strategic asset sales, including two unconsolidated joint ventures. An additional $34 million across two land parcels are under binding contract, with an expected close in the first half of 2025.
| Name ($ in 000s) | Date | Location | GAV |
|---|---|---|---|
| 65 Livingston | 1/24/2025 | Roseland, NJ | $7,300 |
| Wall Land | 4/3/2025 | Wall Township, NJ | 31,000 |
| PI - North Building (two parcels) and Metropolitan at 40 Park | 4/21/2025 | West New York, NJ and Morristown, NJ | $7,100 |
| Total Assets Sold in 2025-to-date | $45,400 |
In April 2025, the Company acquired its joint venture partner's 15% interest in the entity that owns the property now known as "Sable" at Harborside for $38.5 million, including consideration for the tax credit and termination of the management contract. The acquisition was funded through proceeds from non-strategic asset sales.
Upon closing, the Company owned 100% interest in the property, and as a result, consolidated the asset and its corresponding property-level mortgage of $181.8 million. The property-level mortgage was subsequently modified to be an interest-only mortgage.
The Company anticipates over $1 million of annualized synergies as a result of integrating the asset into the Veris platform.
The Company announced a $100 million share repurchase program in February. No shares have been repurchased year to date.
The Company paid a dividend of $0.08 per share on April 10, 2025, for shareholders of record as of March 31, 2025.
The Company is maintaining its guidance for 2025 in accordance with the following table:
| 2025 Guidance Ranges | Low | High |
|---|---|---|
| Same Store Revenue Growth | 2.1 % | 2.7 % |
| Same Store Expense Growth | 2.6 % | 3.0 % |
| Same Store NOI Growth | 1.7 % | 2.7 % |
| Core FFO per Share Guidance | Low | High |
|---|---|---|
| Net Loss per Share | $(0.24) | $(0.22) |
| Depreciation per Share | $0.85 | $0.85 |
| Core FFO per Share | $0.61 | $0.63 |
An earnings conference call with management is scheduled for Thursday, April 24, 2025, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com.
The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential first quarter 2025 earnings conference call.
The conference call will be rebroadcast on Veris Residential, Inc.'s website at: http://investors.verisresidential.com beginning at 8:30 a.m. Eastern Time on Thursday, April 24, 2025.
A replay of the call will also be accessible Thursday, April 24, 2025, through Saturday, May 25, 2025, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13751071.
Veris Residential, Inc. is a forward-thinking real estate investment trust (REIT) that primarily owns, operates, acquires and develops premier Class A multifamily properties in the Northeast. Our technology-enabled, vertically integrated operating platform delivers a contemporary living experience aligned with residents' preferences while positively impacting the communities we serve.
For additional information on Veris Residential, Inc. and our properties available for lease, please visit http://www.verisresidential.com/.
The information in this press release must be read in conjunction with, and is modified in its entirety by, the Annual Report on Form 10-K (the "10-K") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings").