24/07/2024 | Press release | Distributed by Public on 24/07/2024 20:45
Page(s) | |
Key Financial Data | |
Operating Portfolio | |
Debt | |
Reconciliations and Additional Details | |
Annex 1: Transaction Activity
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Annex 2:Reconciliation of NOI
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Annex 4: Unconsolidated Joint Ventures
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Annex 5: Debt Profile Footnotes
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Annex 6: Multifamily Property Information
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Three Months Ended June 30, | Six Months Ended June 30, | |||
2024 | 2023 | 2024 | 2023 | |
Net Income (Loss) per Diluted Share | $0.03 | $(0.30) | $(0.01) | $(0.56) |
Core FFO per Diluted Share | $0.18 | $0.16 | $0.32 | $0.30 |
Core AFFO per Diluted Share | $0.21 | $0.19 | $0.40 | $0.33 |
Dividend per Diluted Share
|
$0.06 | $- | $0.1125 | $- |
June 30, 2024 | March 31, 2024 | |
Same Store Units
|
7,621 | 7,621 |
Same Store Occupancy | 95.1% | 94.1% |
Same Store Blended Rental Growth Rate (Quarter) | 5.4% | 4.6% |
Average Rent per Home | $3,923 | $3,899 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||
2024 | 2023 | % | 2024 | 2023 | % | |
Total Property Revenue | $74,745 | $71,215 | 5.0% | $148,837 | $139,279 | 6.9% |
Controllable Expenses | 13,424 | 12,361 | 8.6% | 26,045 | 24,878 | 4.7% |
Non-Controllable Expenses | 12,370 | 9,217 | 34.2% | 24,451 | 21,534 | 13.5% |
Total Property Expenses | 25,794 | 21,578 | 19.5% | 50,496 | 46,412 | 8.8% |
Same Store NOI
|
$48,951 | $49,637 | (1.4)% | $98,341 | $92,867 | 5.9% |
Real Estate Tax Adjustments | - | 2,179 | - | 1,689 | ||
Normalized Same Store NOI | $48,951 | $47,458 | 3.1% | $98,341 | $91,178 | 7.9% |
Balance Sheet Metric ($ in 000s) | June 30, 2024 | March 31, 2024 |
Weighted Average Interest Rate | 4.5% | 4.4% |
Weighted Average Years to Maturity | 3.1 | 3.5 |
Interest Coverage Ratio
|
1.7x | 1.5x |
Net Debt | $1,646,023 | $1,714,800 |
TTM EBITDA
|
$139,654 | $142,543 |
TTM Net Debt to EBITDA
|
11.8x | 12.0x |
Current Guidance | Initial Guidance | |||||
2024 Guidance Ranges | Low | High | Low | High | ||
Same Store Revenue Growth | 4.0% | - | 5.0% | 4.0% | - | 5.0% |
Same Store Expense Growth | 4.5% | - | 5.5% | 5.0% | - | 6.0% |
Same Store NOI Growth | 3.0% | - | 5.0% | 2.5% | - | 5.0% |
Core FFO per Share Guidance | Low | High | |
Net Loss per Share | $(0.21) | - | $(0.17) |
Other FFO adjustments per share | $(0.16) | - | $(0.16) |
Depreciation per Share | $0.89 | - | $0.89 |
Core FFO per Share | $0.52 | - | $0.56 |
Investors | Media |
Anna Malhari | Amanda Shpiner/Grace Cartwright |
Chief Operating Officer | Gasthalter & Co. |
[email protected] | [email protected] |
June 30, 2024 | December 31, 2023 | |
ASSETS | ||
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 |
3,213,826 | 3,391,488 | |
Less - accumulated depreciation and amortization | (390,556) | (443,781) |
2,823,270 | 2,947,707 | |
Real estate held for sale, net | - | 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 & EQUITY | ||
Revolving credit facility and term loans | 54,189 | - |
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 |
Redeemable noncontrolling interests | 9,294 | 24,999 |
Total 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 |
Three Months Ended June 30, | Six Months Ended June 30, | |||
REVENUES | 2024 | 2023 | 2024 | 2023 |
Revenue from leases | $60,917 | $58,192 | $121,559 | $114,289 |
Real estate services | 871 | 643 | 1,793 | 1,554 |
Parking income | 3,922 | 3,998 | 7,667 | 7,726 |
Other income | 1,766 | 1,373 | 3,797 | 3,235 |
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 | - | - | - | 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 | - | (13,390) | - | (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 | - | 11,515 | (22) |
Gain on sale of unconsolidated joint venture interests
|
- | - | 7,100 | - |
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) |
Loss from continuing operations before income tax expense | 1,492 | (25,455) | (4,718) | (44,287) |
Provision for income taxes | (176) | - | (235) | - |
Loss from continuing operations after income tax expense | 1,316 | (25,455) | (4,953) | (44,287) |
Income 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 | - | (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 interest 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 loss available to common shareholders | $2,922 | $(27,434) | $(981) | $(47,407) |
Basic earnings per common share: | ||||
Net income (loss) available to common shareholders
|
$0.03 | $(0.30) | $(0.01) | $(0.56) |
Diluted earnings per common share: | ||||
Net income (loss) available to common shareholders
|
$0.03 | $(0.30) | $(0.01) | $(0.56) |
Basic weighted average shares outstanding | 92,663 | 91,873 | 92,469 | 91,551 |
Diluted weighted average shares outstanding(6)
|
101,952 | 100,854 | 101,160 | 100,691 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net income (loss) available to common shareholders
|
$ | 2,922 | $ | (27,434) | $ | (981) | $ | (47,407) |
Add (deduct): Noncontrolling interests in Operating Partnership | 153 | (2,265) | (370) | (4,542) | ||||
Noncontrolling interests in discontinued operations | 122 | (417) | 277 | (176) | ||||
Real estate-related depreciation and amortization on continuing operations(1)
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22,514 | 24,211 | 45,146 | 48,341 | ||||
Real estate-related depreciation and amortization on discontinued operations | - | 2,128 | 668 | 8,943 | ||||
Continuing operations: Gain on sale from unconsolidated joint ventures | - | - | (7,100) | - | ||||
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net | - | 3,488 | (1,548) | 2,709 | ||||
FFO(2)
|
$ | 25,711 | $ | (289) | $ | 36,092 | $ | 7,868 |
Add/(Deduct): | ||||||||
Loss from extinguishment of debt, net | 785 | 2,657 | 785 | 2,669 | ||||
Land and other impairments | - | - | - | 3,396 | ||||
(Gain) Loss on disposition of developable land | (10,731) | - | (11,515) | 22 | ||||
Rebranding and Severance/Compensation related costs (G&A) | 236 | 817 | 1,873 | 1,781 | ||||
Rebranding and Severance/Compensation related costs (RE Services) | 838 | - | 2,364 | - | ||||
Redemption value adjustments to mandatorily redeemable noncontrolling interests | - | 7,641 | - | 7,641 | ||||
Amortization of derivative premium | 886 | 1,619 | 1,790 | 2,752 | ||||
Transaction related costs | 890 | 3,319 | 1,406 | 4,347 | ||||
Core FFO | $ | 18,615 | $ | 15,764 | $ | 32,795 | $ | 30,476 |
Add (Deduct) Non-Cash Items: | ||||||||
Straight-line rent adjustments(3)
|
(367) | 893 | (342) | (360) | ||||
Amortization of market lease intangibles, net | (9) | (49) | (16) | (79) | ||||
Amortization of lease inducements | - | - | 7 | 15 | ||||
Amortization of stock compensation | 3,247 | 3,614 | 6,974 | 5,761 | ||||
Non-real estate depreciation and amortization | 219 | 199 | 429 | 584 | ||||
Amortization of deferred financing costs | 1,569 | 621 | 2,811 | 1,832 | ||||
Deduct: | ||||||||
Non-incremental revenue generating capital expenditures: | ||||||||
Building improvements | (1,562) | (2,339) | (2,602) | (4,431) | ||||
Tenant improvements and leasing commissions(4)
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(78) | (195) | (87) | (547) | ||||
Tenant improvements and leasing commissions on space vacant for more than one year | - | 302 | - | (434) | ||||
Core AFFO(2)
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$ | 21,634 | $ | 18,810 | $ | 39,969 | $ | 32,817 |
Funds from Operations per share/unit-diluted
|
$0.25 | $0.00 | $0.35 | $0.08 | ||||
Core Funds from Operations per share/unit-diluted | $0.18 | $0.16 | $0.32 | $0.30 | ||||
Dividends declared per common share | $0.06 | - | $0.1125 | - |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Core FFO (calculated on a previous page) | $ | 18,615 | $ | 15,764 | $ | 32,795 | $ | 30,476 |
Deduct: | ||||||||
Equity in earnings of unconsolidated joint ventures
|
(2,990) | (2,700) | (3,449) | (2,633) | ||||
Equity in earnings share of depreciation and amortization | (2,417) | (2,579) | (5,142) | (5,155) | ||||
Add-back: | ||||||||
Interest expense | 21,676 | 21,692 | 43,176 | 43,706 | ||||
Amortization of derivative premium | (886) | (1,619) | (1,790) | (2,752) | ||||
Recurring joint venture distributions | 4,177 | 4,539 | 5,878 | 6,086 | ||||
Noncontrolling interests in consolidated joint ventures | (543) | (636) | (1,038) | (1,223) | ||||
Interest cost for mandatorily redeemable noncontrolling interests | - | 5,749 | - | 5,749 | ||||
Redeemable noncontrolling interests | 81 | 617 | 378 | 6,983 | ||||
Income tax expense | 176 | (49) | 258 | 3 | ||||
Adjusted EBITDA | $ | 37,889 | $ | 40,778 | $ | 71,066 | $ | 81,240 |
Net income (loss) available to common shareholders
|
$ | 2,922 | $ | (27,434) | $ | (981) | $ | (47,407) |
Add/(Deduct): | ||||||||
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) | ||||
Noncontrolling interests in consolidated joint ventures(a)
|
(543) | (636) | (1,038) | (1,223) | ||||
Redeemable noncontrolling interests | 81 | 617 | 378 | 6,983 | ||||
Interest cost for mandatorily redeemable noncontrolling interests | - | 5,749 | - | 5,749 | ||||
Interest expense | 21,676 | 21,692 | 43,176 | 44,528 | ||||
Income tax expense | 176 | (49) | 258 | 2 | ||||
Depreciation and amortization | 20,316 | 23,959 | 41,101 | 52,713 | ||||
Deduct: | ||||||||
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net | - | 3,488 | (1,548) | 2,708 | ||||
Equity in (earnings) loss of unconsolidated joint ventures | (2,933) | (2,700) | (3,187) | (2,632) | ||||
Add: | ||||||||
Company's share of property NOI's in unconsolidated joint ventures(1)
|
10,235 | 10,287 | 17,963 | 23,668 | ||||
EBITDAre | $ | 52,205 | $ | 32,291 | $ | 96,029 | $ | 80,371 |
Add: | ||||||||
Loss from extinguishment of debt, net | 785 | 2,657 | 785 | 2,669 | ||||
Severance and compensation-related costs | 1,074 | 817 | 2,711 | 1,965 | ||||
Transaction related costs
|
890 | 3,319 | 1,406 | 4,347 | ||||
Land and other impairments, net | - | - | - | 3,396 | ||||
Gain on disposition of developable land | (10,731) | - | (11,515) | 22 | ||||
Amortization of derivative premium | 886 | 1,619 | 1,790 | 2,752 | ||||
Adjusted EBITDAre | $ | 45,109 | $ | 40,703 | $ | 91,206 | $ | 95,522 |
Net debt at period end(5)
|
$ | 1,646,023 | $ | 1,396,428 | $ | 1,646,023 | $ | 1,396,428 |
Net debt to Adjusted EBITDA | 10.9x | 8.6x | 11.6x | 8.6x |
Real Estate Portfolio | Other Assets | |||
Operating Multifamily NOI1 | Total | At Share | Cash and Cash Equivalents | $18,398 |
New Jersey Waterfront | $162,420 | $138,026 | Restricted Cash | 22,533 |
Massachusetts | 25,540 | 25,540 | Other Assets | 53,332 |
Other | 29,464 | 21,730 | Subtotal Other Assets | $94,263 |
Total Multifamily NOI | $217,424 | $185,297 | ||
Commercial NOI2 | 6,244 | 5,051 | Liabilities and Other Considerations | |
Total NOI | $223,668 | $190,348 | ||
Operating - Consolidated Debt at Share | $1,571,951 | |||
Non-Strategic Assets | Operating - Unconsolidated Debt at Share | 296,945 | ||
Other Liabilities | 70,605 | |||
Estimated Land Value3 | $187,311 | Revolving Credit Facility4 | - | |
Total Non-Strategic Assets | $187,311 |
Term Loan4
|
55,000 | |
Preferred Units | 9,294 | |||
Subtotal Liabilities and Other Considerations | $2,003,795 | |||
Outstanding Shares5 | ||||
Diluted Weighted Average Shares Outstanding for 2Q 2024 (in 000s)
|
101,952 | |||
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Operating Highlights | ||||||||
Percentage
Occupied
|
Average Revenue per Home |
NOI |
Debt
Balance
|
||||||
Ownership | Apartments | 2Q 2024 | 1Q 2024 | 2Q 2024 | 1Q 2024 | 2Q 2024 | 1Q 2024 | ||
NJ Waterfront
|
|||||||||
Haus25 | 100.0% | 750 | 95.3% | 91.4% | $4,842 | $4,788 | $7,337 | $7,279 | $343,061 |
Liberty Towers | 100.0% | 648 | 94.9% | 94.7% | 4,206 | 4,221 | 4,833 | 4,665 | 265,000 |
BLVD 401 | 74.3% | 311 | 95.4% | 95.0% | 4,186 | 4,134 | 2,236 | 2,470 | 116,510 |
BLVD 425 | 74.3% | 412 | 94.6% | 95.7% | 4,052 | 3,995 | 3,161 | 3,103 | 131,000 |
BLVD 475 | 100.0% | 523 | 95.5% | 96.4% | 4,122 | 4,063 | 4,474 | 4,675 | 165,000 |
Soho Lofts | 100.0% | 377 | 96.6% | 95.9% | 4,731 | 4,718 | 3,067 | 2,905 | - |
Urby Harborside | 85.0% | 762 | 96.7% | 90.7% | 4,051 | 4,072 | 5,291 | 5,318 | 184,309 |
RiverHouse 9 | 100.0% | 313 | 96.6% | 94.8% | 4,275 | 4,242 | 2,565 | 2,899 | 110,000 |
RiverHouse 11 | 100.0% | 295 | 96.7% | 95.9% | 4,319 | 4,405 | 2,328 | 2,518 | 100,000 |
RiverTrace | 22.5% | 316 | 94.7% | 94.5% | 3,764 | 3,804 | 2,176 | 2,273 | 82,000 |
Capstone | 40.0% | 360 | 95.9% | 96.6% | 4,405 | 4,339 | 3,137 | 3,159 | 135,000 |
NJ Waterfront Subtotal
|
85.0% | 5,067 | 95.7% | 94.2% | $4,291 | $4,274 | $40,605 | $41,264 | $1,631,880 |
Massachusetts | |||||||||
Portside at East Pier | 100.0% | 180 | 95.5% | 94.4% | $3,208 | $3,206 | $1,198 | $1,159 | $56,500 |
Portside 2 at East Pier | 100.0% | 296 | 96.7% | 95.7% | 3,395 | 3,328 | 2,117 | 1,997 | 96,222 |
145 Front at City Square | 100.0% | 365 | 93.0% | 94.2% | 2,535 | 2,531 | 1,540 | 1,549 | - |
The Emery | 100.0% | 326 | 94.2% | 96.1% | 2,801 | 2,730 | 1,530 | 1,565 | 71,392 |
Massachusetts Subtotal
|
100.0% | 1,167 | 94.7% | 95.1% | $2,931 | $2,893 | $6,385 | $6,270 | $224,114 |
Other | |||||||||
The Upton | 100.0% | 193 | 87.7% | 91.8% | $4,637 | $4,614 | $1,320 | $1,417 | $75,000 |
The James | 100.0% | 240 | 94.5% | 93.9% | 3,113 | 3,027 | 1,365 | 1,380 | - |
Signature Place | 100.0% | 197 | 93.7% | 95.8% | 3,210 | 3,157 | 978 | 1,017 | 43,000 |
Quarry Place at Tuckahoe | 100.0% | 108 | 97.1% | 93.9% | 4,436 | 4,352 | 815 | 707 | 41,000 |
Riverpark at Harrison | 45.0% | 141 | 93.6% | 92.9% | 2,923 | 2,886 | 526 | 514 | 30,192 |
Metropolitan at 40 Park1 | 25.0% | 130 | 92.8% | 89.9% | 3,750 | 3,675 | 735 | 711 | 34,100 |
Station House | 50.0% | 378 | 93.4% | 91.5% | 2,851 | 2,873 | 1,627 | 1,823 | 88,408 |
Other Subtotal
|
73.8% | 1,387 | 93.1% | 92.7% | $3,411 | $3,374 | $7,366 | $7,569 | $311,700 |
Operating Portfolio2,3
|
85.2% | 7,621 | 95.1% | 94.1% | $3,923 | $3,899 | $54,356 | $55,103 | $2,167,694 |
Metropolitan Lofts4 | $- | $81 | |||||||
Total Portfolio | $54,356 | $55,184 |
Commercial | Location | Ownership |
Rentable
SF
|
Percentage
Leased
2Q 2024
|
Percentage
Leased
1Q 2024
|
NOI
2Q 2024
|
NOI
1Q 2024
|
Debt
Balance
|
Port Imperial Garage South | Weehawken, NJ | 70.0% | 320,426 | N/A | N/A | $591 | $468 | $31,375 |
Port Imperial Garage North | Weehawken, NJ | 100.0% | 304,617 | N/A | N/A | (1) | (57) | - |
Port Imperial Retail South | Weehawken, NJ | 70.0% | 18,064 | 92.0% | 100.0% | 77 | 202 | - |
Port Imperial Retail North | Weehawken, NJ | 100.0% | 8,400 | 100.0% | 100.0% | 127 | 72 | - |
Riverwalk at Port Imperial | West New York, NJ | 100.0% | 29,923 | 80.0% | 73.2% | 111 | 177 | - |
Shops at 40 Park | Morristown, NJ | 25.0% | 50,973 | 69.0% | 69.0% | 656 | 285 | 6,067 |
Commercial Total | 80.9% | 732,403 | 78.4% | 77.8% | $1,561 | $1,147 | $37,442 |
Developable Land Parcels1 | |
NJ Waterfront | 2,351 |
Massachusetts | 849 |
Other | 939 |
Developable Land Parcels Total | 4,139 |
|
|||||||||
NOI at Share | Occupancy |
Blended Lease Rate2
|
|||||||
Apartments | 2Q 2024 | 1Q 2024 | Change | 2Q 2024 | 1Q 2024 | Change | 2Q 2024 | 1Q 2024 | |
New Jersey Waterfront | 5,067 | $36,180 | $36,697 | (1.4)% | 95.7% | 94.2% | 1.5% | 6.0% | 4.1% |
Massachusetts | 1,167 | 6,636 | 6,520 | 1.8% | 94.7% | 95.1% | (0.4)% | 5.0% | 2.9% |
Other3 | 1,387 | 6,135 | 6,170 | (0.6)% | 93.1% | 92.7% | 0.4% | 3.0% | 4.8% |
Total | 7,621 | $48,951 | $49,387 | (0.9)% | 95.1% | 94.1% | 1.0% | 5.4% | 4.6% |
|
|||||||||
NOI at Share
|
Occupancy |
Blended Lease Rate2
|
|||||||
Apartments | 2Q 2024 | 2Q 2023 | Change | 2Q 2024 | 2Q 2023 | Change | 2Q 2024 | 2Q 2023 | |
New Jersey Waterfront | 5,067 | $36,180 | $36,963 | (2.1)% | 95.7% | 95.8% | (0.1)% | 6.0% | 12.4% |
Massachusetts | 1,167 | 6,636 | 6,278 | 5.7% | 94.7% | 95.2% | (0.5)% | 5.0% | 10.0% |
Other3
|
1,387 | 6,135 | 6,396 | (4.1)% | 93.1% | 95.0% | (1.9)% | 3.0% | 9.6% |
Total | 7,621 | $48,951 | $49,637 | (1.4)% | 95.1% | 95.6% | (0.5)% | 5.4% | 11.6% |
|
||||||
2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | |
New Jersey Waterfront | $4,291 | $4,274 | $4,219 | $4,084 | $4,048 | $3,919 |
Massachusetts | 2,931 | 2,893 | 2,925 | 2,918 | 2,836 | 2,798 |
Other3
|
3,411 | 3,374 | 3,307 | 3,350 | 3,356 | 3,227 |
Total | $3,923 | $3,899 | $3,855 | $3,772 | $3,736 | $3,622 |
Multifamily Same Store1 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Sequential | ||||||||||
2024 | 2023 | Change | % | 2024 | 2023 | Change | % | 2Q24 | 1Q24 | Change | % | |
Apartment Rental Income | $67,584 | $64,277 | $3,307 | 5.1% | $134,281 | $126,151 | $8,130 | 6.4% | $67,584 | $66,697 | $887 | 1.3% |
Parking/Other Income | 7,161 | 6,938 | 223 | 3.2% | 14,556 | 13,128 | 1,428 | 10.9% | 7,161 | 7,395 | (234) | (3.2)% |
Total Property Revenues2 | $74,745 | $71,215 | $3,530 | 5.0% | $148,837 | $139,279 | $9,558 | 6.9% | $74,745 | $74,092 | $653 | 0.9% |
Marketing & Administration | 2,535 | 2,324 | 211 | 9.1% | 4,673 | 4,668 | 5 | 0.1% | 2,535 | 2,138 | 397 | 18.6% |
Utilities | 2,188 | 2,055 | 133 | 6.5% | 4,761 | 4,479 | 282 | 6.3% | 2,188 | 2,573 | (385) | (15.0)% |
Payroll | 4,315 | 4,185 | 130 | 3.1% | 8,612 | 8,631 | (19) | (0.2)% | 4,315 | 4,298 | 17 | 0.4% |
Repairs & Maintenance | 4,386 | 3,797 | 589 | 15.5% | 7,999 | 7,100 | 899 | 12.7% | 4,386 | 3,613 | 773 | 21.4% |
Controllable Expenses | $13,424 | $12,361 | $1,063 | 8.6% | $26,045 | $24,878 | $1,167 | 4.7% | $13,424 | $12,622 | $802 | 6.4% |
Other Fixed Fees | 712 | 737 | (25) | (3.4)% | 1,433 | 1,453 | (20) | (1.4)% | 712 | 722 | (10) | (1.4)% |
Insurance | 1,781 | 1,780 | 1 | 0.1% | 3,561 | 3,561 | - | -% | 1,781 | 1,780 | 1 | 0.1% |
Real Estate Taxes | 9,877 | 6,700 | 3,177 | 47.4% | 19,457 | 16,520 | 2,937 | 17.8% | 9,877 | 9,581 | 296 | 3.1% |
Non-Controllable Expenses | $12,370 | $9,217 | $3,153 | 34.2% | $24,451 | $21,534 | $2,917 | 13.5% | $12,370 | $12,083 | $287 | 2.4% |
Total Property Expenses | $25,794 | $21,578 | $4,216 | 19.5% | $50,496 | $46,412 | $4,084 | 8.8% | $25,794 | $24,705 | $1,089 | 4.4% |
Same Store GAAP NOI
|
$48,951 | $49,637 | $(686) | (1.4)% | $98,341 | $92,867 | $5,474 | 5.9% | $48,951 | $49,387 | $(436) | (0.9)% |
Real Estate Tax Adjustments3 | - | 2,179 | (2,179) | - | 1,689 | (1,689) | - | - | - | |||
Normalized Same Store NOI | $48,951 | $47,458 | $1,493 | 3.1% | $98,341 | $91,178 | $7,163 | 7.9% | $48,951 | $49,387 | $(436) | (0.9)% |
Total Units
|
7,621 | 7,621 | 7,621 | 7,621 | 7,621 | 7,621 | ||||||
% Ownership
|
85.2% | 85.2% | 85.2% | 85.2% | 85.2% | 85.2% | ||||||
% Occupied - Quarter End
|
95.1% | 95.6% | (0.5)% | 95.1% | 95.6% | (0.5)% | 95.1% | 94.1% | 1.0% |
Lender |
Effective
Interest Rate(1)
|
June 30, 2024 | December 31, 2023 |
Date of Maturity |
|
Secured Permanent Loans | |||||
Soho Lofts(2)
|
- | 158,777 | |||
145 Front at City Square(3)
|
- | 63,000 | |||
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 | New York Life Insurance Co. | 4.56% | 96,222 | 97,000 | 03/10/26 |
BLVD 425 | New York Life Insurance Co. | 4.17% | 131,000 | 131,000 | 08/10/26 |
BLVD 401 | New York Life Insurance Co. | 4.29% | 116,510 | 117,000 | 08/10/26 |
Portside at East Pier(4)
|
KKR | SOFR + 2.75% | 56,500 | 56,500 | 09/07/26 |
The Upton(5)
|
Bank of New York Mellon | SOFR + 1.58% | 75,000 | 75,000 | 10/27/26 |
RiverHouse 9(6)
|
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 | The Northwestern Mutual Life Insurance Co. | 4.52% | 100,000 | 100,000 | 01/10/29 |
Port Imperial Garage South | American General Life & A/G PC | 4.85% | 31,375 | 31,645 | 12/01/29 |
The Emery |
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 Secured Permanent Loans | $1,632,765 | $1,853,897 | |||
Secured RCF & Term Loans: | |||||
Revolving Credit Facility(7)
|
JP Morgan and Bank of New York Mellon | SOFR + 2.10% | $- | $- | 04/22/27 |
Term Loan(7)
|
JP Morgan and Bank of New York Mellon | SOFR + 2.62% | 55,000 | - | 04/22/27 |
RCF & Term Loan Balances | $55,000 | $- | |||
Unamortized Deferred Financing Costs | (811) | - | |||
Total RCF & Term Loan Debt | $54,189 | $- | |||
Total Debt | $1,686,954 | $1,853,897 |
Balance |
% of Total |
Weighted Average Interest Rate |
Weighted Average Maturity in Years |
|
Fixed Rate & Hedged Debt | ||||
Fixed Rate & Hedged Secured Debt | $1,700,060 | 100.0% | 4.43% | 2.8 |
Variable Rate Debt | ||||
Variable Rate Debt1 | - | -% | -% | - |
Totals / Weighted Average | $1,700,060 | 100.0% | 4.43% | 2.8 |
Unamortized Deferred Financing Costs | (13,106) | |||
Total Consolidated Debt, net | $1,686,954 | |||
Partners' Share | (73,109) | |||
VRE Share of Total Consolidated Debt, net2 | $1,613,845 | |||
Unconsolidated Secured Debt | ||||
VRE Share | $296,945 | 53.0% | 4.89% | 4.8 |
Partners' Share | 263,131 | 47.0% | 4.89% | 4.8 |
Total Unconsolidated Secured Debt | $560,076 | 100.0% | 4.89% | 4.8 |
Pro Rata Debt Portfolio | ||||
Fixed Rate & Hedged Secured Debt | $1,922,379 | 99.9% | 4.50% | 3.1 |
Variable Rate Secured Debt | 1,517 | 0.1% | 7.33% | 0.5 |
Total Pro Rata Debt Portfolio | $1,923,896 | 100.0% | 4.51% | 3.1 |
2024 Dispositions to Date | |||||
$ in thousands except per SF | |||||
Location |
Transaction
Date
|
Number of Buildings | SF |
Gross Asset
Value
|
|
Land | |||||
2 Campus Drive |
Parsippany-Troy Hills, NJ
|
1/3/2024 | N/A | N/A | $9,700 |
107 Morgan | Jersey City, NJ | 4/16/2024 | N/A | N/A | 54,000 |
6 Becker/85 Livingston | Roseland, NJ | 4/30/2024 | N/A | N/A | 27,900 |
Subtotal Land | $91,600 | ||||
Multifamily | |||||
Metropolitan Lofts1 | Morristown, NJ | 1/12/2024 | 1 | 54,683 | $30,300 |
Subtotal Multifamily | 1 | 54,683 | $30,300 | ||
Office | |||||
Harborside 5 | Jersey City, NJ | 3/20/2024 | 1 | 977,225 | $85,000 |
Subtotal Office | 1 | 977,225 | $85,000 | ||
2024 Dispositions to Date | $206,900 |
2Q 2024 |
1Q 2024
|
|||
Total | Total | |||
Net Income (Loss) | $ | 2,735 | $ | (4,469) |
Deduct: | ||||
Income from discontinued operations | (1,419) | (252) | ||
Realized gains and unrealized gains on disposition of rental property and impairments, net | - | (1,548) | ||
Real estate services income | (871) | (922) | ||
Interest and other investment income | (1,536) | (538) | ||
Equity in (earnings) losses of unconsolidated joint ventures | (2,933) | (254) | ||
(Gain) loss on disposition of developable land | (10,731) | (784) | ||
Loss from extinguishment of debt, net | 785 | - | ||
Gain on sale of unconsolidated joint venture interests | (7,100) | |||
Other income, net | 250 | (255) | ||
Add: | ||||
Real estate services expenses | 4,366 | 5,242 | ||
General and administrative | 8,975 | 11,088 | ||
Transaction related costs | 890 | 516 | ||
Depreciation and amortization | 20,316 | 20,117 | ||
Interest expense | 21,676 | 21,500 | ||
Provision for income taxes | 176 | 59 | ||
Net Operating Income (NOI) | $ | 42,679 | $ | 42,400 |
Summary of Consolidated Multifamily NOI by Type (unaudited): | 2Q 2024 |
1Q 2024
|
||
Total Consolidated Multifamily - Operating Portfolio | $ | 40,864 | $ | 41,305 |
Total Consolidated Commercial | 905 | 862 | ||
Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests) | $ | 41,769 | $ | 42,167 |
NOI (loss) from services, land/development/repurposing & other assets | 1,166 | 875 | ||
Total Consolidated Multifamily NOI | $ | 42,935 | $ | 43,042 |
Property | Units |
Physical Occupancy |
VRE's Nominal Ownership1 |
2Q 2024 NOI2 |
Total Debt |
VRE Share of 2Q NOI |
VRE Share of Debt |
Multifamily | |||||||
Urby Harborside | 762 | 96.7% | 85.0% | $5,291 | $184,309 | $4,497 | $156,663 |
RiverTrace at Port Imperial | 316 | 94.7% | 22.5% | 2,176 | 82,000 | 490 | 18,450 |
Capstone at Port Imperial | 360 | 95.9% | 40.0% | 3,137 | 135,000 | 1,255 | 54,000 |
Riverpark at Harrison | 141 | 93.6% | 45.0% | 526 | 30,192 | 237 | 13,586 |
Metropolitan at 40 Park | 130 | 92.8% | 25.0% | 735 | 34,100 | 184 | 8,525 |
Station House | 378 | 93.4% | 50.0% | 1,627 | 88,408 | 814 | 44,204 |
Total Multifamily | 2,087 | 95.2% | 55.0% | $13,492 | $554,009 | $7,476 | $295,428 |
Retail | |||||||
Shops at 40 Park | N/A | 69.0% | 25.0% | 656 | 6,067 | 164 | 1,517 |
Total Retail | N/A | 69.0% | 25.0% | $656 | $6,067 | $164 | $1,517 |
Total UJV | $14,148 | $560,076 | $7,640 | $296,945 |
Location | Ownership | Apartments | Rentable SF | Average Size | Year Complete | |
NJ Waterfront
|
||||||
Haus25 | Jersey City, NJ | 100.0% | 750 | 617,787 | 824 | 2022 |
Liberty Towers | Jersey City, NJ | 100.0% | 648 | 602,210 | 929 | 2003 |
BLVD 401 | Jersey City, NJ | 74.3% | 311 | 273,132 | 878 | 2016 |
BLVD 425 | Jersey City, NJ | 74.3% | 412 | 369,515 | 897 | 2003 |
BLVD 475 | Jersey City, NJ | 100.0% | 523 | 475,459 | 909 | 2011 |
Soho Lofts | Jersey City, NJ | 100.0% | 377 | 449,067 | 1,191 | 2017 |
Urby Harborside | Jersey City, NJ | 85.0% | 762 | 474,476 | 623 | 2017 |
RiverHouse 9 | Weehawken, NJ | 100.0% | 313 | 245,127 | 783 | 2021 |
RiverHouse 11 | Weehawken, NJ | 100.0% | 295 | 250,591 | 849 | 2018 |
RiverTrace | West New York, NJ | 22.5% | 316 | 295,767 | 936 | 2014 |
Capstone | West New York, NJ | 40.0% | 360 | 337,991 | 939 | 2021 |
NJ Waterfront Subtotal
|
85.0% | 5,067 | 4,391,122 | 867 | ||
Massachusetts | ||||||
Portside at East Pier | East Boston, MA | 100.0% | 180 | 154,859 | 860 | 2015 |
Portside 2 at East Pier | East Boston, MA | 100.0% | 296 | 230,614 | 779 | 2018 |
145 Front at City Square | Worcester, MA | 100.0% | 365 | 304,936 | 835 | 2018 |
The Emery | Revere, MA | 100.0% | 326 | 273,140 | 838 | 2020 |
Massachusetts Subtotal
|
100.0% | 1,167 | 963,549 | 826 | ||
Other | ||||||
The Upton | Short Hills, NJ | 100.0% | 193 | 217,030 | 1,125 | 2021 |
The James | Park Ridge, NJ | 100.0% | 240 | 215,283 | 897 | 2021 |
Signature Place | Morris Plains, NJ | 100.0% | 197 | 203,716 | 1,034 | 2018 |
Quarry Place at Tuckahoe | Eastchester, NY | 100.0% | 108 | 105,551 | 977 | 2016 |
Riverpark at Harrison | Harrison, NJ | 45.0% | 141 | 124,774 | 885 | 2014 |
Metropolitan at 40 Park | Morristown, NJ | 25.0% | 130 | 124,237 | 956 | 2010 |
Station House | Washington, DC | 50.0% | 378 | 290,348 | 768 | 2015 |
Other Subtotal
|
73.8% | 1,387 | 1,280,939 | 924 | ||
Operating Portfolio
|
85.2% | 7,621 | 6,635,610 | 871 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
BLVD 425 | $ | 92 | $ | 54 | $ | 172 | $ | 71 |
BLVD 401 | (607) | (689) | (1,159) | (1,247) | ||||
Port Imperial Garage South | 11 | (16) | (15) | (61) | ||||
Port Imperial Retail South | (5) | 38 | 29 | 63 | ||||
Other consolidated joint ventures | (34) | (23) | (65) | (49) | ||||
Net losses in noncontrolling interests | $ | (543) | $ | (636) | $ | (1,038) | $ | (1,223) |
Depreciation in noncontrolling interests | 737 | 714 | 1,458 | 1,426 | ||||
Funds from operations - noncontrolling interest in consolidated joint ventures | $ | 194 | $ | 78 | $ | 420 | $ | 203 |
Interest expense in noncontrolling interest in consolidated joint ventures | 784 | 792 | 1,572 | 1,584 | ||||
Net operating income before debt service in consolidated joint ventures | $ | 978 | $ | 870 | $ | 1,992 | $ | 1,787 |
Company Information | ||
Corporate Headquarters | Stock Exchange Listing | Contact Information |
Veris Residential, Inc. | New York Stock Exchange | Veris Residential, Inc. |
210 Hudson St., Suite 400 | Investor Relations Department | |
Jersey City, New Jersey 07311 | Trading Symbol | 210 Hudson St., Suite 400 |
(732) 590-1010 | Common Shares: VRE | Jersey City, New Jersey 07311 |
Anna Malhari | ||
Chief Operating Officer | ||
E-Mail: [email protected] | ||
Web: www.verisresidential.com | ||
Executive Officers | ||
Mahbod Nia | Amanda Lombard | Taryn Fielder |
Chief Executive Officer | Chief Financial Officer | General Counsel and Secretary |
Anna Malhari | Jeff Turkanis | |
Chief Operating Officer | EVP & Chief Investment Officer | |
Equity Research Coverage | ||
Bank of America Merrill Lynch | BTIG, LLC | Citigroup |
Josh Dennerlein | Thomas Catherwood | Nicholas Joseph |
Evercore ISI | Green Street Advisors | JP Morgan |
Steve Sakwa | John Pawlowski | Anthony Paolone |
Truist | ||
Michael R. Lewis |