Veris Residential, Inc. Q2 FY2025 earnings call

• Completed or executed binding contracts for approximately $450 million of nonstrategic asset sales, well ahead of schedule. Sold Signature Place (197 units, $85M) and 145 Front Street (365 units, $122M), with additional $180M in binding contracts.
• Consolidated partners' 15% stake in Sables, realizing operational synergies.
• Northeast multifamily market performing well, with Jersey City Waterfront submarket having lower vacancy and higher rents.
• Portfolio occupancy excluding Liberty Towers at 95.5%, rental growth at 4.7%, Same Store NOI up 5.6%, operating margin at 67.5%.
• Technology investments: Launched VR showroom, AI chatbot, proprietary revenue management tool, reducing costs.

In the second quarter, Veris Residential achieved $0.17 of Core FFO and 5.6% Same Store NOI growth. Excluding Liberty Towers, occupancy was 95.5% as of June 30, up from 94.7% the prior year. The blended net rental growth rate for the quarter was 4.7%, with renewals at 5.2% and new leases at 4%. Year-to-date, Core FFO was $0.33 per share, and Same Store NOI growth was 4.4%.

• Raised Core FFO guidance to $0.63 to $0.64 per share from $0.61 to $0.63.
• Raised Same Store NOI guidance to between 2% and 2.8%.
• G&A expected to be flat, interest expense guidance assumes sales close by Q3 to repay debt.

• Challenging transaction market with potential impact from buyer issues on sales.
• Volatility in real estate taxes and insurance renewals, with Jersey City taxes and insurance premiums affecting guidance.

Q: Talk about Board change and CIO departure, impact on dispositions A: Thanked Jeff for CIO, Brian Primost leading investment team; Ron's departure due to fiduciary obligations, but still supportive Q: Tough comps in back half, visibility on taxes and insurance A: Insurance renewal mid-to-high single digits, real estate taxes resetting in Q3, Jersey City taxes impact Q: Dispositions pace, future sales A: Team did well, challenging market, $134M land and small assets left for further deleveraging Q: Properties sold, challenges, replacement cost A: Sold properties had discounts to replacement cost, cap rate 5.1% in line with intrinsic value Q: Next year's debt maturities, buyback vs leverage reduction A: Half of $0.5B debt maturing on wholly owned assets can be repaid, other half via joint venture solutions; leverage reduction priority over buyback Q: Mayoral election in NYC, impact on Jersey City A: Potential benefit if NYC policies increase taxes on high earners, but too early to conclude Q: Blended rent spreads for July A: Mid-single digit in July Q: Land sales, near term plans A: Difficult market, but looking to recycle capital, not fire selling Q: Liberty Towers occupancy trajectory A: May have volatility, but expecting low 80s, project to take ~3 years to complete