Veris Residential, Inc. · NYSE:VRE
Veris Residential — Mack-Cali Realty — Investor Presentation (September 2020)
21 slides from Veris Residential's investor presentation, Sep 15, 2020
Slide 1: September 2020
September 2020 Exhibit 99.1
Slide 2: Forward-looking statements disclaimer
2 This Operating and Financial Data should be read in connection with our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. 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. Fo
Slide 3: Committed to Unlocking Additional Value: Three Primary Initiatives
Committed to Unlocking Additional Value Strategy Based on Three Primary Initiatives Developments control and scale $1B of cost at a 6.2% yield. Equity fully 3 Balance Sheet Enhancement Eliminate unsecured corporate debt to increase strategic flexibility with proceeds from Suburban Office sales Compl
Slide 4: Current Asset Mix Improves Quality of Cash Flow
Current Asset Mix Improves Quality of Cash Flow Higher Concentration of Multifamily Assets Reduces Capital Needs Suburban Office, 35% Residential, 37% Waterfront Office, 28% Note: The annualized 2Q 2020 corporate NOI includes income (expense) attributed to entities not directly associated with asset
Slide 5: Suburban Office Sales Update
Suburban Office Sales Update Asset Sales Progressing, Pandemic Inhibited Pace 5 Portfolio NameSquare FootageUnder ContractExpected Sales Timing Parsippany & Giralda Farms Portfolio - I1,448,420Y3Q20 Parsippany & Giralda Farms Portfolio - II796,044Y4Q20 Short Hills Portfolio828,413Y4Q20/1Q21 Other -
Slide 6: Ongoing Enhancement of Debt Profile
Ongoing Enhancement of Debt Profile No Material Maturities Until 2022 Note: Debt maturities shown pro forma for utilization of all extension options for the revolving line of credit and for the refinancing of February 2021 maturity of mortgage on Monaco with a new 7-year mortgage. 6
Slide 7: Refreshed Vision and Strategy to Execute on Waterfront Office
Refreshed Vision and Strategy to Execute on Waterfront Office New Team, New Positioning • Hired integrated office and retail team from CBRE to execute strategy • Proactive targeting directed at existing New York City office users • Repositioning Harborside as a “Campus” • • • Large block opportuniti
Slide 8: The Harborside Campus CLI Boasts Superior Neighborhood Control
The Harborside Campus CLI Boasts Superior Neighborhood Control 8
Slide 9: The Harborside Campus CLI Already Features Many Campus Essentials and Amenities
The Harborside Campus CLI Already Features Many Campus Essentials and Amenities 9
Slide 10: The Harborside Campus and Plans to Complete the Campus
The Harborside Campus And Plans to Complete the Campus Are Identified 10
Slide 11: The Harborside Campus Marketing Designed to Match the Campus Approach
The Harborside Campus Marketing Designed to Match the Campus Approach 11
Slide 12: Harborside Campus Occupant Health & Well-Being
Harborside Campus Occupant Health & Well-Being Front and Center – Harborside Provides Turn-Key Solutions 12
Slide 13: Harborside Campus Transportation Network
Harborside Campus Transportation Network Supports Connection to Employees and other Attractive Amenities 13
Slide 14: Harborside Pricing Advantage vs. Manhattan
Harborside Pricing Advantage vs. Manhattan Quantifying Economics – Annual Savings Over 30% for Long Term Leases 14 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 Downtown Manhattan with $5 per RSF increases every 5 years,
Slide 15: Roseland Contributes Meaningfully to Company's Value Proposition
Roseland Contributes Meaningfully to Company’s Value Proposition Waterfront Residential Deliveries Catalyze Cash Flow Growth and Value Creation Capital recycled into highly profitable residential developments (1) Represents the time period to achieve 90% leased. (2) Represents the increase in rent p
Slide 16: Growth Prospects Enhanced by $1.0B Waterfront Development Pipeline
Growth Prospects Enhanced by 1.0B Waterfront Development Pipeline 6.2% 5.9% 6.2% 6.5% 6.0% Yield: $0.0 $0.0 $0.0 $0.0 $0.0 Fund: (1) Positioned to deliver 1,942 residential units over the next two years, with no remaining equity required. Proven residential leasing strength and high-quality assets m
Slide 17: Roseland Residential Portfolio Compares Favorably to Public Peers
Roseland Residential Portfolio Compares Favorably to Public Peers RRT Worth More Per Building & Per Door, Younger Projects with Higher Potential for Rent Growth 17 Number of Properties 29 289125193248320300176 Number of Units 6,896 83,37132,76765,29868,99381,809100,27953,631 Average Monthly Rent per
Slide 18: Appendix: NAV Calculation
Appendix 18 NAV Calculation (2) Net Value Range (3 Apt Units/ NOI Cap Rate Rentable SF. (1) Residential Portfolio Units Stabilized Operating Properties - Wholly-Owned/Consolidated 4,285 $120.3 4.8% Operating Properties - Unconsolidated JVs (5) 2,611 55.7 4.4% In-Construction Properties (6) 1,942 60.
Slide 19: Appendix: NAV Notes
Appendix 1) Reflects 2Q 2020 Annualized Cash NOI for office assets; projected 12-month NOI for stabilized residential assets and the projected stabilized NOI for residential assets in-construction and lease-up. See Information About Net Operating Income on page 44. NAV is generally arrived at by cal
Slide 20: Appendix: Top NAV Contributors
Appendix Top NAV (net equity) Contributors Operating Properties Office Hudson Waterfront Class A Suburban Suburban Suburban - Under Contract Subtotal Urby Harborside Monaco Liberty Towers Portside 7 & 5/6 at East Pier Soho Lofts Subtotal $197 170 144 104 90 $705 11% 10% 8% 6% 5% 41% 4.908 1.955 1.29
Slide 21: Appendix: Valuation Methodology Notes
Appendix 14) See Information About Net Operating Income on page 44. Valuations for properties planned for or undergoing a repositioning or repurposing utilize a projected stabilized net operating income for the asset upon completion of the repositioning/repurposing activities. After applying an esti
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