Veris Residential, Inc. · NYSE:VRE
Veris Residential — Investor Presentation (February 2025)
45 slides from Veris Residential's investor presentation, Feb 25, 2025
Slide 1: Corporate Presentation February 24, 2025
Corporate Presentation FEBRUARY 24, 2025
Slide 2: Forward-Looking Statements
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 2 THIS OPERATING AND FINANCIAL DATA SHOULD BE READ IN CONNECTION WITH OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024. Statements made in this presentation may be forward-looking statements within the mean-ing of Section 21E of the Secu
Slide 3: Our Vision and Mission
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 3 Our Vision To continuously innovate and transform residential living by creating exceptional spaces where residents thrive and feel truly at home, while positively impacting the communities we serve. Our Mission To deliver comprehensive residential solut
Slide 4: Veris At-A-Glance
Veris At-A-Glance CORPORATE PRESENTATION, FEBRUARY 24, 2025 Overview | 4 94.0%1,2 OCCUPANCY RATE $388,000 1.6%1 AVERAGE HOUSEHOLD INCOME PER UNIT BLENDED NET RENTAL GROWTH RATE 9 Years 7,621 AVERAGE AGE OF PROPERTY APARTMENT UNITS 1. Average as of February 20, 2025. 2. 95.3% excluding Liberty Towers
Slide 5: Peer-Leading 2024 Results
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 5 Peer-Leading 2024 Results Overview HIGHLIGHTS • 13% increase in Core FFO YOY and 36% increase from 2022 • 6.9% increase in Same Store NOI • 4.0% Blended Net Rental Growth Rate • 160 basis-point improvement in operating margin • $223 million of non-strate
Slide 6: 2025 Corporate Plan
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 6 2025 Corporate Plan Platform Optimization Capital Allocation Overview • Targeting land bank, JV’s and select multifamily assets where we believe we will be able to crystallize values at or near NAV • Investing in value-enhancing Capex programs across our
Slide 7: 2025 Guidance
CORPORATE PRESENTATION, FEBRUARY 24, 2025 Overview | 7 2025 Guidance 2025 Guidance Ranges Low High Same Store Revenue Growth 2.1% 2.7% Same Store Expense Growth 2.6% 3.0% Same Store NOI Growth 1.7% 2.7% Core FFO per Share $0.61 $0.63 Core FFO per Share (% Growth) 2% 5% Note: Please refer to this Cor
Slide 8: Our Vision
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 8 Our Vision Our Vision
Slide 9: Excellence Always
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 9 Excellence Always As of January 2025 Average Property Google Review 86.69 VERIS RESIDENTIAL ORA SCORE 62.17 NATIONAL AVERAGE ORA SCORE As of January 2025 “Haus25 is exceptional across the board. The apartments are lovely, the amenities top notch, and the
Slide 10: Our Competitive Advantage
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 10 Our Competitive Advantage Class A Portfolio Newest Portfolio | Unparalleled Amenity Offering Highest Average Rent & Growth Rate Desirable Northeast Markets with Limited New Supply Leading Operating Platform Vertically Integrated & Highly Scalable | Cust
Slide 11: A Highly Desirable Class A Portfolio Commanding the Highest Rents
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 11 A Highly Desirable Class A Portfolio Commanding the Highest Rents AV E R A G E R E N T-P E R-H O M E 8.4% 5.5% Rental Growth Outpacing Peers VERIS PEERS R E N T-P E R-H O M E (CAGR 2021-2024) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 20
Slide 12: Tangible Improvement in Operating Margin & Controllable Expenses
IN LINE WITH PEER AVERAGE Operating Margin Veris Residential Multifamily Public Peer Average 2022 2023 2024 15% 17% 19% 21% 23% 25% 2021 19.5% 17.7% 2024 Veris Residential Multifamily Public Peers Controllable Expenses Peer Average CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 12 10% 20% 30% 40% 50% 6
Slide 13: Liberty Towers Value-Add
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 13 RENOVATE, REBRAND, REPOSITION Liberty Towers Value-Add ~$30 Million INVESTMENT 18% ESTIMATED ROI $0.06/Share CORE FFO ACCRETION AT COMPLETION APARTMENT RENOVATIONS • Kitchens include modern cabinetry, quartz countertops, stainless steel appliances and m
Slide 14: Liberty Towers' Amenities Before & After
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 14 Liberty Towers’ Amenities Before & After Our Vision Before Same Spaces After
Slide 15: Liberty Towers' Units Before & After
Before Same Spaces After CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 15 AFTER Liberty Towers’ Units Before & After Our Vision
Slide 16: Portside Value-Add
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 16 PLANNED UNIT & BUILDING RENOVATIONS Portside Value-Add ~$1.5 Million INVESTMENT 15% ESTIMATED ROI PLANNED UNIT RENOVATIONS • New washer/dryers, dishwashers, microwaves, kitchen faucets and kitchen backsplashes • New LED lights, chrome bathroom accessori
Slide 17: Overview of Our Land Bank
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 17 Overview of Our Land Bank HARBORSIDE 8 Jersey City, NJ PI SOUTH, BLDG 2 Weehawken, NJ WALL TOWNSHIP LAND Monmouth County, NJ 3,775 Units FOR POTENTIAL DEVELOPMENT ~$180 Million LAND BANK VALUE $135 Million UNDER REVIEW $45 Million UNDER BINDING CONTRACT
Slide 18: Introducing Prism
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 18 Introducing Our Vision Technology without people is just circuits and code—but people partnered with technology forms the foundation for sustainable value creation. Prism, powered by people + tech, is our overarching approach to purposeful technology im
Slide 19: Our Onsite Technology Solutions
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 19 Our Onsite Technology Solutions DYNAMIC PRICING INTELLIGENCE Dynamic revenue management leveraging real-time analytics to optimize unit pricing and maximize value. V I RT UA L L E A S I N G A G E N T & RESIDENT ASSISTANT A conversational AI offering hum
Slide 20: Prospect Experience
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 20 Prospect Experience Our Vision As an industry average, 33% of emails are missed without AI assistance. PROSPECT REACHES OUT TO US AI EMAIL FOLLOWS-UP VIA EMAIL • Creates Guest Cards • Answers All Questions • Books Tours • Sends Tour Confirmation • Resch
Slide 21: Transforming the Resident Experience with AI & Automation
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 21 Transforming the Resident Experience with AI & Automation Our Vision CHALLENGE Manual processing delays response time to maintenance requests TECHNOLOGY SOLUTION AI assistant responds to maintenance requests within 30 seconds. • Processed 2,500 maintena
Slide 22: AI & Automation Implementation Across Corporate Functions
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 22 AI & Automation Implementation Across Corporate Functions Our Vision CORPORATE-WIDE • AI-powered meeting assistance to capture notes, action items and transcripts • Document management and collaboration tools that streamline workflow • Automated task ma
Slide 23: Market Overview
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 23 Market Overview Market Overview
Slide 24: Individual Transaction Capital Flows
Individual CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 24 Transaction Capital Flows Market Overview $254 B I L L I O N O F D RY-P O W E R, B U T O N LY 10% F O C U S E D ON CORE/CORE+ OPPORTUNITIES Closed-end funds focused on North America. 4% Core+ 6% Core 18% Debt 34% Value-Add 38% Opportunistic M
Slide 25: Jersey City Market Overview
Under Construction Proposed Housing Units per 1,000 People CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 25 Jersey City Market Overview 8-15% POPULATION GROWTH BY 2032 74% 40,000 OF POPULATION ARE RENTERS CLASS A UNITS 317,171 JERSEY CITY POPULATION By 2032, Jersey City could face a housing shortage o
Slide 26: Jersey City Waterfront
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 26 Jersey City Waterfront 19,500 EXISTING TOTAL CLASS A INVENTORY 3.5% CLASS A VACANCY RATE $4,225 AVERAGE CLASS A RENT ~40% HOMEOWNERSHIP PREMIUM1 0.4% PROJECTED ANNUAL POPULATION GROWTH2 0.5% PROJECTED ANNUAL JOB GROWTH2 4.0% PROJECTED ANNUAL GDP GROWTH2
Slide 27: Jersey City and Port Imperial Maps
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 27 Manhattan Haus25 Liberty Towers 410 BLVD 425 BLVD 8 Harborside 8 & 9 1 2 4 5 3 475 BLVD Soho Lofts 6 Urby J O I N T-V E N T U R E 7 8 VERIS BUILDINGS D1 55 Hudson (1,017 units) 50 Hudson (924 units) 425 Marin (802 units) VERIS OWNED LAND COMPETITOR IN C
Slide 28: East Boston/Chelsea
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 28 East Boston/Chelsea 17.6% CLASS A VACANCY RATE 1 $2,875 AVERAGE CLASS A RENT 0.4% PROJECTED ANNUAL POPULATION GROWTH2 0.5% PROJECTED ANNUAL JOB GROWTH2 4.0% PROJECTED ANNUAL GDP GROWTH 339 (7.3%) CLASS A IN-CONSTRUCTION As of January 2025. Source: Oxfor
Slide 29: Renters by Choice
7% of new Veris renters have an average income of over $2.1 million. CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 29 Renters by Choice 66% O F R E N T E R S S AY R E N T I N G F I TS T H E I R C U R R E N T L I F E S T Y L E MORE THAN OWNING A HOME >33% O F R E N T E R S S AY B E I N G A R E N T E R
Slide 30: Corporate Responsibility
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 30 Corporate Responsibility Corporate Responsibility
Slide 31: Sustainability & Wellness, Community, Governance
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 31 SUSTAINABILITY & WELLNESS GOVERNANCE • 66% reduction in Scope 1 & 2 emissions • 22% reduction in Scope 3 emissions • 28% reduction in energy consumption • 79% of properties Green Certified • 65% of properties have EV chargers • 90% of properties have a
Slide 32: Our Values
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 32 Our Values EXCELLENCE ALWAYS FORWARD-THINKING Our properties are part of wider communities, and we recognize our responsibility to those around us. By putting our residents and employees first, we ensure exceptional living and working experiences that c
Slide 33: Ancillary Information
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 33 Ancillary Information Ancillary Information
Slide 34: Our Evolution
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 34 Our Evolution 2024 39% 45% 53% 56% 64% 68% 75% 84% 86% 99% 99% 99% 100% Named new CEO and COO Announced strategic shift to pure-play multifamily Repaid $575M of corporate bonds Rebranded to Veris Residential Reinstated dividend Negotiated early redempti
Slide 35: Transaction Track Record
$2.6B OF TRANSACTIONS CLOSED 55 A S S E TS SOLD Sales Since June 30, 2020 33 OFFICE BUILDINGS 3 HOTELS 17 LAND PARCELS 1 RETAIL PROPERTY 1 M U LT I FA M I LY PROPERTY Assets Sold Include CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 35 THE HYATT JERSEY CITY HARBORSIDE 1, 2 & 3 JERSEY CITY HARBORSIDE 5
Slide 36: Peer-Leading Performance Results
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 36 Peer-Leading Performance Results FOCUSED ON OVERALL EXCELLENCE Number of Properties 22 287 173 262 312 299 193 29 Number of Units 7,621 93,518 59,996 62,157 84,249 102,079 59,747 9,374 Same Store NOI Growth YTD YOY 6.9% 2.3% 1.2% 1.7% 1.6% (2.1%) 2.1% 1
Slide 37: Components of Net Asset Value
CORPORATE PRESENTATION, FEBRUARY 24, 2025 Ancillary Information | 37 Q4 2024 Components of Net Asset Value REAL ESTATE PORTFOLIO Operating Multifamily NOI1 Total At Share New Jersey Waterfront 169,888 145,446 Massachusetts 26,100 26,100 Other 31,832 24,132 Total Multifamily NOI 227,820 195,677 Comme
Slide 38: Continued Balance Sheet Optimization
CORPORATE PRESENTATION, FEBRUARY 24, 2025 Ancillary Information | 38 $57 Continued Balance Sheet Optimization Debt Strategy: • Maximizing operational flexibility • Actively managing debt maturity profile • Reducing leverage over time • Diversifying lender base and composition of debt Debt Maturity S
Slide 39: Net Operating Income Reconciliation
Revenues Q4 2024 Total Q3 2024 Total Net Income (14,023) (10,907) Deduct: Management fees (751) (794) Loss (income) from discontinued operations 1,015 (206) Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net (1,899) - Interest and other inves
Slide 40: FFO and Core FFO Reconciliation
CORPORATE PRESENTATION, FEBRUARY 24, 2025 Ancillary Information | 40 2024 2023 Net loss available to common shareholders ($23,120) ($107,265) Add/(Deduct): Noncontrolling interests in Operating Partnership (2,531) (11,174) Noncontrolling interests in discontinued operations 371 779 Real estate-relat
Slide 41: Adjusted EBITDA Reconciliation
CORPORATE PRESENTATION, FEBRUARY 24, 2025 Ancillary Information | 41 2024 2023 Core FFO calculated on previous page $61,014 $53,893 Deduct: Equity in (earnings) loss of unconsolidated joint ventures (4,196) (3,102) Equity in earnings share of depreciation and amortization (10,154) (10,337) Add: Inte
Slide 42: The Veris Residential Team
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 42 The Veris Residential Team Executive Team Dept. Heads Mahbod Nia Taryn Fielder Amanda Lombard Anna Malhari Jeff Turkanis Chief Executive Officer General Counsel & Secretary Chief Financial Officer Chief Operating Officer Chief Investment Officer Carmen
Slide 43: Property Directory
CORPORATE PRESENTATION, FEBRUARY 24, 2025 Ancillary Information | 43 Property Directory 145 FRONT AT CITY SQUARE 145 Front Street Worcester, MA 01608 BLVD 401 401 Washington Blvd. Jersey City, NJ 07310 BLVD 425 425 Washington Blvd. Jersey City, NJ 07310 BLVD 475 475 Washington Blvd. Jersey City, NJ
Slide 44: Definitions
CORPORATE PRESENTATION, FEBRUARY 24, 2025 | 44 Definitions AV E R A G E E F F E CT I V E M O N T H LY R E N T P E R H O M E represents the average effective rent (net of concessions) for in-place leases and the market rent for vacant homes. CORE FFO AND ADJUSTED FFO (“AFFO”) Core FFO is defined as F
Slide 45: Thank You
Thank You
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