Veris Residential, Inc. · NYSE:VRE
Veris Residential — Mack-Cali Realty — Investor Presentation (May 2013)
31 slides from Veris Residential's investor presentation, May 28, 2013
Slide 1: An Introduction to Roseland: Follow up Presentation
February 27, 2013 An Introduction to: Follow up Presentation: May 28, 2013
Slide 2: Disclosures regarding forward looking statements
1 Disclosures regarding forward looking statements This presentation includes forward-looking statements about us, our properties and our business strategies. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E
Slide 3: Table of Contents
I. II. III. IV. Strategic Diversification for Mack-Cali: An Introduction to Roseland Roseland and Portfolio Overview Business Operations and Capital Activity Exhibits - 2 - Table of Contents
Slide 4: I. Strategic Diversification for Mack-Cali
- 3 - I. Strategic Diversification for Mack-Cali
Slide 5: Mack-Cali's Strategic Transformation
- 4 - Mack-Cali’s Strategic Transformation Why? The Company’s core office business, having lagged in the recent market recovery, has led to strategic shift to a dual property type focus – Office and Multi-family We believe the multi-family asset class will provide benefits to Mack-Cali shareholders:
Slide 6: Multi-Family Trends
- 5 - Multi-Family Trends Regional and local trends benefit the multi-family property type Gap between cost of ownership vs. renting is large in the Northeast Consumer confidence in home ownership as an ‘investment’ is low Individual and family needs for increased flexibility and liquidity Appeal of
Slide 7: Mack-Cali's Focus on Multi-Family Sector
- 6 - Mack-Cali’s Focus on Multi-Family Sector, While Mining, Pruning and Enhancing its Core Office Portfolio What? Capitalizing on marketplace trends, Mack-Cali has made significant investments in the Residential marketplace: Harborside Financial Center: In December 2011, Mack-Cali formed a joint v
Slide 8: Roseland Overview: Company Highlights
Company Highlights Industry leading reputation and proven track record for successful and profitable conception, execution and management of large scale residential developments Roseland has a rich 20-year history and track record of success having developed in excess of $2.5 billion since its incep
Slide 9: Competitive Advantages
- 8 - Competitive Advantages Premier full service development company focused in high barrier to entry Northeast markets provides unique advantages Synergies Alignment of experience with large multi-phase sites in “home rule” municipalities Capital availability to enhance the region’s premier multi-
Slide 10: Roseland Operations
- 9 - Roseland Operations Development - Vision Construction - Implementation Management – Execution Roseland’s focus on all aspects of the real estate development cycle is implemented by an Executive Team with an average of 27 years of industry experience Roseland Executive Team* Mitchell E. Hersh C
Slide 11: Key Relationships
- 10 - Key Relationships Roseland’s key relationships with public entities and private institutions has often allowed it to source and execute unique development opportunities. This reputation has led to significant unsolicited opportunities Public / Private Partnerships Capital Markets Banks / Lend
Slide 12: II. Roseland and Multi-Family Portfolio Overview
- 11 - II. Roseland and Multi-Family Portfolio Overview
Slide 13: Roseland Operating Segments and Active Construction
Approximately $555 million of active construction projects Committed institutional capital to support in-process development Development of identified new sites in core markets Adaptive re-use of underutilized Mack-Cali land and property inventory 11 in-process starts 2,376 multi-family units 741 co
Slide 14: Portfolio Overview - Introduction
- 13 - Portfolio Overview - Introduction Roseland has developed a portfolio of best-in-class properties in high barrier to entry Northeast markets Within the multi-family sector there has been a historic correlation between average revenue and higher valuation multiples Market Positioning Overview C
Slide 15: Portfolio Highlights - Masterplan Communities: Port Imperial
- 14 - The Roseland pipeline contains assets in all aspects of the development cycle with a geographic footprint that overlays with the Mack-Cali office portfolio Portfolio Highlights – Masterplan Communities Port Imperial Overview RiversEdge 236 Units 50% Ownership Prudential RiverTrace 316 Units (
Slide 16: Portfolio Highlights - Masterplan Communities: Overlook Ridge
- 15 - The Roseland pipeline contains assets in all aspects of the development cycle with a geographic footprint that overlays with the Mack-Cali office portfolio Portfolio Highlights – Masterplan Communities Overlook Ridge Overview Select Developments Master planned community five miles north of Bo
Slide 17: Select Portfolio Highlights
Select Portfolio Highlights - 16 - Monaco 523 Units (Operating) 15% Ownership Prudential, Hartz, GSD Marbella 412 Units (Operating) 24.3% Ownership Prudential, GSD Marbella South 311 Units (2013 Start) 24.3% Ownership Prudential, GSD Lincoln Harbor 355 Units (In Construction) 227 Units (2013 Start)
Slide 18: Development Buildout Schedule
- 17 - Excluding acquisitions and future identified and unidentified opportunities, the chart below highlights in-process and future potential residential development activity from Roseland’s core portfolio Development Buildout Schedule * Represents approximate unit counts, subject to change = Proje
Slide 19: III. Business Operations and Capital Activity
- 18 - III. Business Operations and Capital Activity
Slide 20: Company Investment Activity: Roseland Business Plan
Opportunity for Mack-Cali to leverage Roseland’s highly scalable platform to create and grow a large multi-family property portfolio and market leading brand Company Investment Activity Roseland Business Plan: ~$700 MM of initial estimated annual investment activity I. Operating Business: Ownership
Slide 21: Growth Cylinder I: New Development Activity
Roseland’s existing portfolio and highly skilled organization provide a proven, sustainable growth trajectory Growth Cylinder I - 20 - A. New Development Activity Profitable fee-based management and development platform that is already scaled to support significant new activity Fee Income: Fee incom
Slide 22: Growth Cylinder II: Mack-Cali Adaptive Re-Use
These opportunities will create a profitable and synergistic line of business within Mack-Cali Growth Cylinder II B. Mack-Cali “Adaptive Re-Use” - 21 - Significant opportunity to identify and execute on opportunities to transform excess land and underutilized real estate within Mack-Cali’s portfolio
Slide 23: Growth Cylinder III: Acquisitions / Repositioning
The residential division will actively pursue strategic acquisitions in our core geographies, utilizing the platform’s comprehensive skill set, with a focus on repositioning potential. Growth Cylinder III - 22 - C. Acquisitions / Repositioning Significant opportunity to acquire, reposition and “up-m
Slide 24: Summary and Strategic Benefits
- 23 - The size and scope of the combined companies’ current holdings, development pipeline and financial strength forms the premier real estate owner and operator in one of the country’s highest barrier to entry markets Summary and Strategic Benefits Redefines Mack-Cali as a premier owner of multif
Slide 25: IV. Exhibits
IV. Exhibits —_— Mack-CaurROSELAND
Slide 26: Assets - Operational (As of December 31, 2012)
Assets – Operational (As of December 31, 2012) - 25 - Commercial Year Apartment Square 2012 Effective Property Location Built Units Feet NOI Ownership Operating Multifamily: Marbella Jersey City, NJ 2003 412 $8,047,000 24.27% Monaco (North and South) Jersey City, NJ 2011 523 11,415,000 15.00% Metrop
Slide 27: Assets - Land Holdings (As of December 31, 2012)
Assets – Land Holdings (As of December 31, 2012) - 27 - Estimated Estimated Commercial Apartment Square Effective Property Location Units Feet Ownership Port Imperial North West New York, NJ 836 20.00% Riverwalk C West New York, NJ 363 20.00% Port Imperial South Weehawken, NJ 1,148 416,000 50.00% Hi
Slide 28: Adaptive / Re-Use Candidates
“Adaptive / Re-Use” Candidates - 28 - Below are select examples of holdings we are examining for repurposing potential 150 J.F. Kennedy Parkway Millburn, NJ 581 Main Street Woodbridge, NJ 10 Independence Boulevard Warren, NJ 100 Walnut Avenue Clark, NJ Mack-Cali Business Campus Parsippany, NJ 461 Fr
Slide 29: Executive Leadership
Executive Leadership Bradford R. Klatt Prior to founding Roseland in 1992, Mr. Klatt was an active investor in real estate, specializing in non- and sub-performing assets, when he joined Goldman, Sachs & Co. to establish its Principal Investment Department. During his six years at Goldman, he helped
Slide 30: Senior Management
Senior Management Ivan Baron Executive Vice President, General Counsel. Prior to joining Roseland in 1994 as General Counsel, Mr. Baron was a senior associate at the law firm of Riker, Danzig, Scherer, Hyland and Perretti, where his practice included foreclosure and collection litigation in addition
Slide 31: Senior Management (cont.)
Senior Management (cont.) Andrew Marshall Executive Vice President, Development. Mr. Marshall oversees all development personnel and projects in Roseland’s New Jersey portfolio and is directly responsible for the management and oversight of all aspects of the development process for Port Imperial fr