Veris Residential, Inc. · NYSE:VRE
Veris Residential — Mack-Cali Realty — CITI Conference March 2021
21 slides from Veris Residential's conference presentation, Mar 8, 2021
Slide 1: CITI Conference March 8, 2021
CITI Conference March 8, 2021
Slide 2: Forward-Looking Statements
This Operating and Financial Data connection with our Annual Report the year ended December 31, 2020. should be read in on Form 10-K for 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. Forwar
Slide 3: Simplified Business Plan to Three Executable Strategies
Simplified Business Plan to Three Executable Strategies: Complete the Sale of the Suburban Office Portfolio Establish Roseland as an Optimized Platform Revitalize Waterfront Leasing 1 2 3 a. Maximize Suburban asset value with minimal COVID discount Increase strategic flexibility of the Company’s bal
Slide 4: Complete the Sale of the Suburban Office Portfolio
Complete the Sale of the Suburban Office Portfolio 1 4
Slide 5: Maximize Suburban Asset Value with Minimal COVID Discount
Complete the Sale of the Suburban Office Portfolio Maximize Suburban Asset Value with Minimal COVID Discount 2020 Office Sales (2) SF 200,000 1,589,420 156,495 168,144 98,500 154,395 200,000 158,235 2,725,189 Price $36,700,000 166,725,000 21,000,000 25,550,000 7,500,000 12,750,000 61,000,000 9,983,0
Slide 6: Increase Strategic Flexibility of the Company's Balance Sheet
Complete the Sale of the Suburban Office Portfolio Increase Strategic Flexibility of the Company’s Balance Sheet • • Proceeds from the sale of remaining suburban office assets will be used to retire corporate debt Projected gross sales proceeds exceed total corporate debt balances Debt Maturity Sche
Slide 7: Establish the Company as a Predominantly Residential REIT
Complete the Sale of the Suburban Office Portfolio Establish the Company as a Predominantly Residential REIT 4Q 2020 + CIP Stab. NOI (excl. Disc Ops) (1) 4Q 2020 NOI (incl. Disc Ops) (1) 4Q 2020 NOI (excl. Disc Ops) (1) Suburban Office 25% Waterfront Office 38% Residential 38% Waterfront Office 49%
Slide 8: Revitalize Waterfront Leasing
Revitalize Waterfront Leasing 2 8
Slide 9: Reposition Harborside as a Complete Campus Offering
Revitalize Waterfront Leasing Reposition Harborside as a Complete Campus Offering • High-quality and unique office space attractive to different types of tenants • Strong sense of community and active 24/7 lifestyle with excellent residential options • Unique opportunity for user-control • Consisten
Slide 10: Harborside Repositioning: Capitalize on Growing Demand for Business Districts Outside Manhattan
Revitalize Waterfront Leasing Revitalize Waterfront Leasing Harborside Repositioning: Capitalize on Growing Demand for Business Districts Outside of Manhattan • Opportunity for employees to live adjacent to where they work • Incredible connectivity and easy access to Midtown and Downtown • Outstandi
Slide 11: Harborside Repositioning: Aggressively Target Users with a Diversity of Options
Revitalize Waterfront Leasing Harborside Repositioning: Aggressively Target Users with a Diversity of Options Opportunity for large Opportunity for large blocks of contiguous space in a fully renovated & unique building Pre-built program to allow for turn-key occupancy Striking views of Potential co
Slide 12: Offer a Compelling Value Proposition for New York Companies
Revitalize Waterfront Leasing Harborside Repositioning: Offer a Compelling Value Proposition for New York Companies 1. Analysis assumes a base rent of $43 per RSF with 2.25% fixed annual increases for Harborside, base rent of $57 per RSF for Do wntown Manhattan with a $5 per RSF increase after 5 yea
Slide 13: Utilize world-class team of leasing professionals
Revitalize Waterfront Leasing Utilize world-class team of leasing professionals Mary Ann Tighe – CEO, Tri-State Region Edward J. Guiltinan Senior Vice President, Leasing • • • • • • • Responsible for +107.5 million SF of leases Anchored +14.4 million SF of new construction 9-time winner of REBNY’s D
Slide 14: Establish Roseland as an Optimized Platform
Establish Roseland as an Optimized Platform 3 14
Slide 15: Stabilize Occupancy at Operating Properties
Establish Roseland as an Optimized Platform Stabilize Occupancy at Operating Properties 2020 Same Store Portfolio • TheCompany hascontinued to increase occupancy at its operating properties 10.0% 92.0% 5.0% • Same store physical occupancy 86.3% on upfrom 90.0% increased 140bps to December31st,2020,
Slide 16: Realize Cash Flow of Fully Funded Development Projects
Establish Roseland as an Optimized Platform Realize Cash Flow of Fully Funded Development Projects Development Yield STABILIZED AT ABOVE PRO FORMA RENTS Note: Dollars in millions. (1) As of December 31, 2020 (2) As of February 28, 2021 16 Initial Occupancy Project Stabilization Total Cost (1) Total
Slide 17: Maintain Operational Excellence
Establish Roseland as an Optimized Platform Maintain Operational Excellence • • RRT is worth more per building & per door than its peers Younger projects with higher potential for rent growth Note: Comparable data is as of 9/9/2020. Sources include Green Street Advisors and CBRE (1) NAV metrics refl
Slide 18: Reinvigorate Development Machine
Establish Roseland as an Optimized Platform Reinvigorate Development Machine Future Developments Location Units Hudson Waterfront Plaza 8 Plaza 9 Urby Harborside - Future Phases 107 Morgan Liberty Landing Phase 1 Liberty Landing – Future Phases PI South – Park Parcel PI South – Building 16 PI South
Slide 19: Appendix
Te Se ee eS ia ia ta Appendix
Slide 20: Global Definitions
Global Definitions Average Revenue Per Home: Calculated as total apartment revenue for the Operating Communities: Communities that have achieved Project quarter ended September 30, 2020 divided by the average percent occupied for the quarter ended September 30, 2020, divided by the number of apartme
Slide 21: Information About Net Operating Income (NOI)
Information About Net Operating Income (NOI) Reconciliation of Net Income (Loss) to Net Operating Income (NOI) $ in thousands (unaudited) 4Q 2020 3Q 2020 Office/Corp $47,498 Roseland $30,800 Total $78,298 Office/Corp $8,314 Roseland ($49,432) Total ($41,118) Net Income (loss) Deduct: Real estate ser