Veris Residential, Inc. (VRE)
Description
Veris Residential, Inc. is a self-administered, self-managed real estate investment trust (REIT) that owns, operates and develops a portfolio of multifamily rental properties, non-core retail and parking properties, and developable land principally in the Northeast U.S., and selectively participates in unconsolidated joint ventures.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $1,667,208,000
- Debt History
- Debt decreased by approximately 0.3% compared to December 2024
- Debt Trend
- Decreasing
Profit Information
- Profit
- $10,699,000
- Profit History
- Profit increased by approximately 174% compared to Q1 2024
- Profit Trend
- Increasing
Detailed Report
Veris Residential, Inc. Q1 2025 Financial Report
Report Date: 2025-04-30
Period Covered: Quarter ended March 31, 2025
Form Type: 10-Q
Executive Summary
- Net income (GAAP) of $13.73 million; net income available to common shareholders of $10.70 million, up from $3.90 million in Q1 2024.
- Total revenue grew modestly to $67.76 million driven by higher rental rates and parking income.
- FFO (per NAREIT) of $11.76 million versus $10.38 million in Q1 2024.
- Total debt of $1.667 billion, down 0.3% vs December 2024; liquidity remains healthy with $14.5 million restricted cash plus $7.6 million unrestricted cash.
- Land impairment of $32.0 million in Q1 2025 and disposition loss of $0.16 million on livingston land sale.
- Declared dividend of $0.08 per share (paid April 2025).
Profit and Loss Analysis
| Metric | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Total Revenue | $67.756 M | $67.340 M | +0.6% |
| Lease Revenue | $61.965 M | $60.642 M | +2.2% |
| Management Fee | $0.718 M | $0.922 M | –22.2% |
| Parking Income | $3.749 M | $3.745 M | +0.1% |
| Other Income | $1.324 M | $2.031 M | –34.8% |
| Operating Expenses (ex-depr.) | $62.226 M | $60.981 M | +2.0% |
| Depreciation & Amortization | $21.253 M | $20.117 M | +5.7% |
| Land Impairments | $3.200 M | $– | n/a |
| Interest Expense | $22.960 M | $21.500 M | +6.8% |
| Equity Earnings (Joint Ventures) | $3.842 M | $0.254 M | +1,412% |
| Net Income Available to Common | $10.699 M | $3.903 M | +174% |
Key Drivers
- Higher market rental rates and stable occupancy drove lease revenue gains.
- Lower management fees reflect timing and mix of third-party services.
- Parking income remained flat; other income declined on lower lease-termination and miscellaneous revenues.
- Interest expense rose on higher SOFR-based borrowing costs despite partial de-leveraging of the revolver.
- Strong unconsolidated JV performance (+$3.8 M vs. $0.3 M prior year) largely from Urby Harborside tax credits and improved fundamentals.
- One-time $32 M land impairment (developable parcels) and minor loss on sale of Livingston land.
Balance Sheet & Debt
- Total Assets: $2.951 B; Total Equity: $1.209 B.
- Total Debt: $1.667 B (weighted-average effective interest rate 5.05%).
- Revolving credit facility – $148 M outstanding
- Term loan – $200 M
- Mortgages & other – $1.219 B
- Debt Maturities: 2025: $7.1 M; 2026: $475.8 M; 2027: $658.6 M; 2028: $345.5 M; 2029: $130.1 M; Thereafter: $62.6 M.
- Debt has modest amortization; covenants are well within compliance.
Pros & Cons
Pros:
- Significant profit growth and FFO improvement.
- Strong JV contributions diversifying income streams.
- Prudent debt management reducing leverage and lengthening maturities.
- Stable cash flows underpinning $0.08/share dividend.
Cons:
- Rising interest rates increased financing costs.
- $32 M land impairment highlights cyclical risk in developable land values.
- Exposure to development pipelines and regulatory changes in Northeast markets.
Prepared by Financial Analysis Team
Statistics Breakdown
Q1 2025 Revenue Mix:
- Lease Revenue: $61.965 M (91.4%)
- Management Fees: $0.718 M (1.1%)
- Parking Income: $3.749 M (5.5%)
- Other Income: $1.324 M (2.0%)
- Equity Earnings (Unconsol. JVs): $3.842 M
Company Direction Insights
Veris Residential is on a solid growth trajectory, underpinned by rising rents and strong JV results. Liquidity remains robust with undrawn revolver capacity and free cash flow supporting dividends and selective capital recycling. The REIT’s leverage is moderate and maturities staggered, though rising SOFR rates pose continued cost pressure. Future challenges include cyclical land valuations, potential capital markets volatility, and execution risk on development parcels. Opportunities exist to monetize non-core assets, further JV partnerships, and optimize the capital stack to lower blended borrowing costs.