Veris Residential, Inc. · NYSE:VRE
Veris Residential — Mack-Cali Realty — NAREIT Conference November 2020
21 slides from Veris Residential's conference presentation, Nov 17, 2020
Slide 1: NAREIT Conference November 17-18, 2020
NAREIT Conference November 17 - 18, 2020
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 September 30 , 2020 . Statements made in this presentation may be forward - looking statements within the meaning of Section 21 E of the Securities Exchange Act of 1934 , a
Slide 3: Simplified Business Plan to Three Executable Strategies
3 Complete the Sale of the Suburban Office Portfolio Simplified Business Plan to Three Executable Strategies: a. Maximize Suburban asset value with minimal COVID discount b. Increase strategic flexibility of the Company’s balance sheet c. Establish the Company as a predominantly residential REIT Rev
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
5 Maximize Suburban Asset Value with Minimal COVID Discount Complete the Sale of the Suburban Office Portfolio Year - to - date, the Company has executed or is under contract on sales representing 63% of its Suburban portfolio (1) SF Price PSF 1 Bridge Plaza - Fort Lee, NJ 200,000 $36.8M $184 Parsip
Slide 6: Increase Strategic Flexibility of the Company's Balance Sheet
6 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Debt Maturity Schedule Construction Office Secured Residential Secured Unsecured Bonds Revolver - - $190,089 $33,088 $126,558 - - - - - - - - - - - $250,000 $124,500 - $150,000 - $3,
Slide 7: Portfolio NOI mix toward residential
7 Residential , 38% Waterfront Office , 31% Suburban Office , 31% Note: The annualized 3Q 2020 corporate NOI includes income (expense) attributed to entities not directly associated with asse ts in the portfolio. See Information About Net Operating Income (NOI) on p. 21. (1) Represents annualized 3Q
Slide 8: Revitalize Waterfront Leasing
8 Revitalize Waterfront Leasing 2
Slide 9: Reposition Harborside as a Complete Campus Offering
9 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 • Consistent level of first - cla
Slide 10: Harborside Repositioning: Growing Demand for Business Districts Outside Manhattan
10 Harborside Repositioning: Capitalize on Growing Demand for Business Districts Outside of Manhattan Revitalize Waterfront Leasing • Opportunity for employees to live adjacent to where they work • Incredible connectivity and easy access to Midtown and Downtown • Outstanding commutation options incl
Slide 11: Harborside Repositioning: Target Users with a Diversity of Options
11 Harborside Repositioning: Aggressively Target Users with a Diversity of Options Revitalize Waterfront Leasing Pre - built program to allow for turn - key occupancy Striking views of Downtown NYC Opportunity for large blocks of contiguous space in a fully renovated & unique building Potential conf
Slide 12: Harborside Repositioning: Value Proposition for New York Companies
12 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 wnt own Manhattan with a $5 per RSF increase after 5 years, and base rent of $77 p
Slide 13: Utilize world-class team of leasing professionals
13 Utilize world - class team of leasing professionals Revitalize Waterfront Leasing • Twenty - year veteran at Rockefeller Group • During tenure, executed + 8 million SF of office, industrial and retail leases • Recently leased 2 million SF of office and retail in the newly redeveloped 1271 Avenue
Slide 14: Establish Roseland as an Optimized Platform
14 Establish Roseland as an Optimized Platform 3
Slide 15: Stabilize Occupancy at Operating Properties
15 Stabilize Occupancy at Operating Properties 93.9% 91.5% 89.6% 88.0% 88.2% 88.9% 89.1% 85.0% 86.0% 87.0% 88.0% 89.0% 90.0% 91.0% 92.0% 93.0% 94.0% 95.0% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Adj. Same Store (2) Physical Occupancy 5.9% Decline Peak to Trough, 1.1% Recovery 7.6% 5.4% 2.4%
Slide 16: Realize Cash Flow of Fully Funded Development Projects
16 Realize Cash Flow of Fully Funded Development Projects The Capstone West New York, NJ Note: Dollars in millions. (1) As of September 30, 2020 (2) As of November 15, 2020 Initial Occupancy Q1 2020 Q1 2021 Q1 2021 Q1 2021 Q1 2022 Project Stabilization Q4 2020 Q4 2021 Q1 2022 Q1 2022 Q3 2023 Total C
Slide 17: Residential peer comparison
17 Note: Data is as of 9/9/2020. (1) The Company’s lower capex spend is due to the newer age of its Apartment assets (2) Sources include Green Street Advisors and CBRE Number of Properties 29 289 125 193 248 320 300 176 Number of Units 6,524 83,371 32,767 65,298 68,993 81,809 100,279 53,631 Average
Slide 18: Capitalize on Value Creation From Enviable Development Pipeline
18 Capitalize on Value Creation From Enviable Development Pipeline Establish Roseland as an Optimized Platform Total Project Cost , 76% Value Creation , 24% Proj . Future Development Value Creation: +$1B Development Machine • +8,000 potential units of developable land • High barrier - to - entry mar
Slide 19: Appendix
19 Appendix
Slide 20: Global Definitions
Global Definitions Average Revenue Per Home : Calculated as total apartment revenue for the quarter ended September 30, 2020 divided by the average percent occupied for the quarter ended September 30, 2020, divided by the number of apartments and divided by three. Operating Communities : Communities
Slide 21: Information About Net Operating Income (NOI)
Information About Net Operating Income (NOI) NOI represents total revenues less total operating expenses, as reconciled to net income above . The Company considers NOI to be a meaningful non - GAAP financial measure for making decisions and assessing unlevered performance of its property types and m