Veris Residential, Inc. · NYSE:VRE
Veris Residential — Investor Presentation (September 2024)
39 slides from Veris Residential's investor presentation, Sep 9, 2024
Slide 1: Corporate Presentation September 9, 2024
Corporate Presentation SEPTEMBER 9, 2024
Slide 2: Forward-Looking Statements
This Operating and Financial Data should be read in connection with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. Statements made in this presentation may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such
Slide 3: Company Overview
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 3 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW OVERVIEW Signature Place, Morris Plains, NJ Company Overview
Slide 4: At-A-Glance: Key Company Highlights
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 4 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW E X P E R I E N C E D L E A D E R S H I P T E A M W I T H A P R OV E N T R A C K R E C O R D O F VA LU E CREATION N E W E S T, H I G H
Slide 5: Rapid Transformation to a Pure-Play Multifamily REIT
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 5 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG 2021 2022 2023 2024 COMPANY OVERVIEW 39% 45% 53% 56% 64% 68% 75% 86% 84% 99% 99% 99% 100% Named new CEO and COO Announced strategic shift to pure-play
Slide 6: What's Next: A Multi-Faceted Approach to Value Creation
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 6 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW VALUE CREATION PLATFORM/PORTFOLIO OPTIMIZATION CAPITAL ALLOCATION BALANCE SHEET OPTIMIZATION What's Next: A Multi-Faceted Approach to
Slide 7: Veris' Value Proposition
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 7 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW 1 2 3 4 5 6 7 8 Veris' Value Proposition W E L L-P O S I T I O N E D W I T H S T R O N G U N D E R LY I N G F U N D A M E N TA L S Sec
Slide 8: Northeast Coastal Focused
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 8 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW MORRIS COUNTY • Signature Place • The Metropolitan at 40 Park BERGEN COUNTY • The James HARRISON • RiverPark at Harrison SHORT HILLS •
Slide 9: Superior Portfolio Quality
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 9 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW Superior Portfolio Quality Portfolio differentiators: • Highly-amenitized, Class A assets • Youngest multifamily portfolio • Located i
Slide 10: Our Leadership Team
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 10 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG COMPANY OVERVIEW Executive Team Dept. Heads Mahbod Nia Taryn Fielder Amanda Lombard Anna Malhari Jeff Turkanis Chief Executive Officer General Counsel
Slide 11: Market Overview
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 11 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG MARKET OVERVIEW Market Overview The Metropolitan, Morristown, NJ
Slide 12: Our Core Markets: Robust Demand and Limited Near-Term Supply
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 12 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG MARKET OVERVIEW 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% Annual Effective Rent Change: 2024 (Annual Average) UPPER MIDWEST LOWER
Slide 13: Core Market Statistics: Tri-State, Jersey City, Boston
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 13 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG MARKET OVERVIEW Tri-State (NY, NJ, CT)1 297,000 EXISTING TOTAL CLASS A INVENTORY 20,000 (6.7%) CLASS A IN-CONSTRUCTION PIPELINE $4,221 AVERAGE CLASS A
Slide 14: Rising Incomes Support Growing Rents
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 14 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG MARKET OVERVIEW Rent/Income % (Mean) 14% 13% 15% 13% 14% 14% 16% 15% 15% 13% 14% 13% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q
Slide 15: Portfolio Optimization
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 15 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION PORTFOLIO Portfolio Optimization RiverTrace at Port Imperial, West New York, NJ
Slide 16: Ongoing Portfolio Optimization Strategies
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 16 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Ongoing Portfolio Optimization Strategies FOCUS ON MAXIMIZING NOI GROWTH AND MARGIN Revenue Maximization Expense Mitigation Cap
Slide 17: Class A Portfolio with Peer-Leading Revenue & NOI Growth
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 17 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Peer (Median) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Veris Residential
Slide 18: Revenue Management Driving Outperformance
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 18 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Revenue Management Driving Outperformance OPTIMIZING RENTAL REVENUE Market Intelligence • Realtime demand/ supply analytics • D
Slide 19: Driving Operating Margin Improvements
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 19 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION 30% 40% 50% 60% 70% 80% 90% 100% SUSTAINED INCREASE IN NOI MARGIN SINCE Q1 2021 OF REVENUE 22% NOI MARGIN 57% N O I MARGIN 66%
Slide 20: Value-Add Opportunities—Liberty Towers
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 20 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION RENOVATING AND REPOSITIONING LIBERTY TOWERS Extensive renovations are currently underway at Liberty Towers, a 648- unit apartme
Slide 21: Technology—myVeris App
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 21 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Technology—myVeris App ALL-ENCOMPASSING RESIDENT ENGAGEMENT APP Our comprehensive resident mobile application, myVeris, streaml
Slide 22: Technology—Quinn, Our AI Property Assistant
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 22 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION * Does not include hours saved through community and maintenance assistant functionality. Technology—Quinn, Our AI Property Ass
Slide 23: Technology—Virtual and Self-Guided Tours
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 23 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Technology—Virtual and Self-Guided Tours STREAMLINING OPERATIONS AND REDUCING COSTS Using Peek, we create virtual tours for all
Slide 24: Customer Service—The Veris Promise
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 24 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Customer Service—The Veris Promise CREATING EXCEPTIONAL RESIDENT EXPERIENCES Our Pledge. Our Promise. The Veris Promise is our
Slide 25: Peer Comparison
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 25 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG PORTFOLIO OPTIMIZATION Number of Properties 22 300 172 255 299 292 187 28 Number of Units 7,621 91,399 58,250 62,510 79,738 101,465 60,126 9,374 H1 Sa
Slide 26: Resident Reviews
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 26 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG Average Property Google Review Ever, the maintenance technician was very helpful! I put a request in for my ice maker to be fixed on a Monday night, a
Slide 27: Capital Allocation
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 27 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG CAPITAL ALLOCATION PORTFOLIO Quarry Place, Tuckahoe, NY Capital Allocation
Slide 28: Capital Allocation: A Disciplined, Value-Oriented Approach
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 28 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG CAPITAL ALLOCATION DEVELOPMENT ACQUISITIONS VALUE-ADD CAPITAL ALLOCATION LEVERAGE REDUCTION RETURN OF CAPITAL OTHER $ Capital Allocation A D I S C I P
Slide 29: Development Track Record
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 29 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG CAPITAL ALLOCATION Development Track Record E S TA B L I S H E D T R A C K R E C O R D D E V E LO P I N G P R O P E RT I E S OF THE HIGHEST QUALITY Ov
Slide 30: Our Current Land Bank
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 30 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG Jersey City, NJ Weehawken, NJ Short Hills, NJ West New York, NJ Roseland, NJ Parsippany, NJ White Plains, NY Malden, MA Revere, MA Wall Township, NJ C
Slide 31: Transaction Track Record
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 31 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG CAPITAL ALLOCATION THE HYATT JERSEY CITY HARBORSIDE 1, 2 & 3 JERSEY CITY 101 HUDSON JERSEY CITY HARBORSIDE 5 & 6 JERSEY CITY METROPOLITAN Transaction
Slide 32: Balance Sheet Optimization
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 32 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG RiverTrace at Port Imperial, West New York, NJ Balance Sheet Optimization BALANCE SHEET
Slide 33: Current Debt Portfolio & Recent Payments
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 33 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG BALANCE SHEET Current Debt Portfolio & Recent Payments: • Current debt comprises almost entirely (99.9%) of senior fixed-rate mortgages secured by the
Slide 34: ESG
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 34 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG ESG Signature Place, Morris Plains, NJ ESG
Slide 35: ESG as an Amenity
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 35 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG + + + = ESG Environmental Social Governance ESG as an Amenity ESG Leader • 66% reduction in Scope 1 & 2 emissions • 22% reduction in Scope 3 emissions
Slide 36: ESG Memberships & Awards
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 36 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG ESG Memberships & Awards Bloomberg Gender-Equality Index Climate Disclosure Project (CDP) GRESB S&P Corporate Sustainability Assessment Science Based
Slide 37: Information About Net Operating Income (NOI)
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 37 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG ESG Information About Net Operating Income (NOI) RECONCILIATION OF NET INCOME (LOSS) TO NET OPERATING INCOME (NOI) DEFINITION OF NET OPERATING INCOME
Slide 38: Definitions
CORPORATE PRESENTATION, SEPTEMBER 9, 2024 | 38 Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG Definitions Net Blended Rental Growth Rate combines new lease and renewal lease growth rates. New lease growth rate refers to the difference in rent a
Slide 39: Thank You
Soho Lofts, Jersey City, NJ THIS PRESENTATION HAS BEEN FORMATTED FOR SCREENS. PLEASE CONSIDER THE ENVIRONMENT BEFORE PRINTING. Thank You
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