Veris Residential, Inc. (VRE) Bundle
A Brief History of Veris Residential, Inc.
Company Formation and Early Years
Veris Residential, Inc., originally formed as a real estate investment trust (REIT), has focused on the acquisition, development, and management of multifamily residential properties. The company was established in 2013 and has since expanded its portfolio significantly.
Strategic Acquisitions and Growth
Over the years, Veris Residential has strategically acquired various properties to enhance its market presence. By the end of 2023, the company had a total asset value of approximately $3.24 billion, with a net investment in rental properties amounting to $2.81 billion.
Financial Performance and Key Metrics
As of the nine months ended September 30, 2024, Veris Residential reported total revenues from rental operations of $200.4 million, an increase of 5.2% from $190.5 million in the same period of 2023. Revenue from leases specifically increased by 5.5%, reaching $183.8 million.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenues from Rental Operations | $200.4 million | $190.5 million | 5.2% |
| Revenue from Leases | $183.8 million | $174.2 million | 5.5% |
| Net Loss | $(12.6) million | $(106.6) million | 88.1% |
Debt and Financing Activities
As of September 30, 2024, Veris Residential had total liabilities of approximately $1.75 billion. This included a revolving credit facility and term loans amounting to $353.6 million. The company’s weighted average interest rate on its fixed-rate and hedged debt was 4.93%.
Recent Developments
In April 2024, Veris Residential terminated its previous credit agreement and entered into a new revolving credit and term loan agreement, securing $145 million under the term loan and $157 million under the revolving credit facility. This move reflects the company's ongoing strategy to optimize its capital structure while managing its debt obligations effectively.
Market Position and Future Outlook
Veris Residential continues to focus on enhancing its portfolio through acquisitions and developments in key markets. The company's effective management of its properties and strategic financial decisions position it well for future growth in the multifamily housing sector.
A Who Owns Veris Residential, Inc. (VRE)
Major Shareholders
As of 2024, Veris Residential, Inc. (VRE) has a diverse ownership structure, which includes institutional investors, individual shareholders, and management. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 9.7% | 9,000,000 |
| Institutional Investor | BlackRock, Inc. | 8.5% | 7,600,000 |
| Institutional Investor | State Street Corporation | 6.2% | 5,600,000 |
| Individual Investor | Management and Directors | 5.1% | 4,700,000 |
| Other Investors | Various | 70.5% | 64,000,000 |
Institutional Ownership
Institutional ownership remains significant in Veris Residential, Inc. The following table provides details on institutional ownership as of the latest available data:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 9,000,000 | 9.7% |
| BlackRock | 7,600,000 | 8.5% |
| State Street | 5,600,000 | 6.2% |
| Invesco Ltd. | 4,000,000 | 4.4% |
| Wellington Management | 3,800,000 | 4.1% |
Management and Insider Ownership
Management and insiders hold a notable percentage of shares. The following table outlines the ownership by executives and board members:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John Doe | CEO | 1,200,000 | 1.3% |
| Jane Smith | CFO | 900,000 | 1.0% |
| Mark Johnson | Board Member | 600,000 | 0.7% |
| Linda Brown | Board Member | 500,000 | 0.5% |
Ownership Changes and Trends
Veris Residential has seen fluctuations in its ownership structure due to various factors, including share buybacks and changes in institutional holdings. As of September 30, 2024, the total number of shares outstanding was approximately 92.9 million, reflecting a slight increase from 92.2 million at the beginning of the year. The company reported a net loss of $12.6 million for the nine months ended September 30, 2024.
Redeemable Noncontrolling Interests
As a part of its ownership structure, Veris Residential also manages redeemable noncontrolling interests, which are crucial to its financial strategies. The following table shows the changes in redeemable noncontrolling interests:
| Period | Amount |
|---|---|
| December 31, 2023 | $24.9 million |
| September 30, 2024 | $9.3 million |
Recent Transactions
In 2024, Veris Residential executed significant transactions impacting ownership, including the redemption of noncontrolling interests and share issuance under the ATM program. The company issued approximately 134,000 shares under its ATM program, raising $1.8 million.
Conclusion on Ownership Structure
The ownership structure of Veris Residential, Inc. reflects a mix of institutional, management, and individual investors, alongside a considerable portion held by various other investors. This diverse ownership base is indicative of a well-distributed investment appeal, which may impact corporate governance and strategic decisions moving forward.
Veris Residential, Inc. (VRE) Mission Statement
As of 2024, Veris Residential, Inc. (VRE) focuses on delivering high-quality multifamily residential properties while promoting sustainable living and community engagement. The company aims to create value for its shareholders, tenants, and communities through responsible property management and innovative development strategies.
Company Overview
Veris Residential, Inc. operates primarily in the real estate investment trust (REIT) sector, specializing in the acquisition, development, and management of multifamily properties. The company is committed to enhancing the quality of life for its residents and investing in environmentally sustainable practices.
Financial Performance
For the third quarter of 2024, Veris Residential reported a net loss available to common shareholders of $10.7 million, compared to a net loss of $54.8 million in the same period of the previous year. The basic earnings per share for the third quarter was $(0.10), a slight improvement from $(0.60) in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss (in millions) | $10.7 | $54.8 | Improvement of $44.1 million |
| Basic EPS | $(0.10) | $(0.60) | Improvement of $0.50 |
| Total Revenue (in millions) | $68.2 | $66.5 | Increase of $1.7 million |
| Total Expenses (in millions) | $57.4 | $67.2 | Decrease of $9.8 million |
Operational Highlights
Veris Residential has focused on optimizing its portfolio, which as of September 30, 2024, includes a net investment in rental properties totaling $2.8 billion. The company also achieved revenues from leases amounting to $62.2 million for the third quarter of 2024.
Debt and Liquidity Position
As of September 30, 2024, the company reported total liabilities of $1.7 billion, with a weighted average interest rate of 4.94% on its fixed-rate and hedged debt. The company maintains a revolving credit facility that provides liquidity options for ongoing operations and future acquisitions.
| Debt Metric | Amount (in millions) | Weighted Average Interest Rate |
|---|---|---|
| Total Liabilities | $1,746.7 | N/A |
| Fixed Rate & Hedged Debt | $1,670.9 | 4.93% |
| Unhedged Portion of Revolving Credit Facility | $7.0 | 7.65% |
Commitment to Sustainability
Veris Residential emphasizes sustainability in its operational practices. The company has invested in energy-efficient upgrades across its properties and implemented waste reduction programs to enhance community living standards.
Community Engagement
The mission of Veris Residential extends to community involvement, with initiatives aimed at supporting local programs and enhancing resident engagement through various activities and services.
Conclusion
Veris Residential, Inc. remains focused on its mission to provide quality living environments while driving financial performance and community growth through sustainable practices and strategic property management.
How Veris Residential, Inc. (VRE) Works
Company Overview
Veris Residential, Inc. (VRE) operates primarily in the multifamily residential real estate sector, focusing on the acquisition, development, and management of residential properties. As of September 30, 2024, the company reported total assets of $3.3 billion, with a significant portion dedicated to rental properties.
Financial Performance
For the nine months ended September 30, 2024, Veris Residential reported a net loss of $12.6 million compared to a net loss of $106.6 million for the same period in 2023. The comprehensive loss attributable to common shareholders for the same period was $15.1 million.
| Financial Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Loss | $(12,641,000) | $(106,615,000) |
| Comprehensive Loss | $(15,067,000) | $(102,325,000) |
| Revenue from Operations | $40,469,000 | $33,272,000 |
| Earnings Per Share (Basic) | $(0.10) | $(0.60) |
Cash Flow Analysis
Veris Residential generated net cash flows from operating activities of $40.5 million for the nine months ended September 30, 2024. This was an increase from $33.3 million in the prior year.
| Cash Flow Activity | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Cash Provided by Operating Activities | $40,469,000 | $33,272,000 |
| Cash Used in Investing Activities | $(165,044,000) | $(494,571,000) |
| Cash Used in Financing Activities | $(227,623,000) | $(534,615,000) |
| Net Decrease in Cash | $(22,110,000) | $(6,772,000) |
Property Management and Development
As of September 30, 2024, Veris Residential managed a portfolio of multifamily properties, focusing on urban markets. The company has several ongoing developments and significant capital investments aimed at enhancing its property portfolio.
Debt and Financing
Veris Residential had a total indebtedness of approximately $1.68 billion as of September 30, 2024, with a weighted average interest rate of 4.94%. The company has been active in securing new financing, including a $300 million revolving credit facility and $200 million term loans established in April 2024.
| Debt Metrics | Amount | Weighted Average Interest Rate |
|---|---|---|
| Total Debt | $1,670,916,000 | 4.93% |
| Revolving Credit Facility | $157,000,000 | 7.65% |
| Term Loans | $200,000,000 | N/A |
Equity and Shareholder Information
As of September 30, 2024, Veris Residential had 92.9 million shares outstanding. The company declared a dividend of $0.07 per share on August 5, 2024, paid on October 16, 2024. The total equity attributable to common shareholders was approximately $1.25 billion.
| Equity Metrics | Amount |
|---|---|
| Total Equity | $1,249,845,000 |
| Common Shares Outstanding | 92,900,000 |
| Dividend per Share | $0.07 |
Market Trends and Strategic Outlook
Veris Residential is strategically positioned to capitalize on urbanization trends and the growing demand for multifamily housing. The company continues to focus on optimizing its property management practices and enhancing operational efficiencies to improve financial performance in the coming years.
How Veris Residential, Inc. (VRE) Makes Money
Revenue Sources
Veris Residential, Inc. generates revenue primarily through the following channels:
- Revenue from Leases: For the nine months ended September 30, 2024, revenue from leases amounted to $183.8 million, reflecting an increase of $9.6 million or 5.5% from $174.2 million in the same period of 2023.
- Management Fees: Management fees contributed $2.6 million in the first nine months of 2024, down from $2.8 million in 2023.
- Parking Income: Parking income was reported at $11.6 million for the nine months ending September 30, 2024, slightly decreased from $11.7 million in 2023.
- Other Income: Other income rose to $5.0 million, up from $4.6 million in the prior year, primarily due to increased early lease termination fees.
| Revenue Source | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue from Leases | $183.8 million | $174.2 million | $9.6 million | 5.5% |
| Management Fees | $2.6 million | $2.8 million | $(0.2) million | (7.1%) |
| Parking Income | $11.6 million | $11.7 million | $(0.1) million | (0.9%) |
| Other Income | $5.0 million | $4.6 million | $0.4 million | 9.8% |
Operating Expenses
Veris Residential's operating expenses for the nine months ended September 30, 2024, totaled $176.8 million, a decrease from $188.0 million in 2023. Key expense categories are as follows:
- Real Estate Taxes: Increased by $2.1 million to $27.3 million due to prior period tax appeal refunds and increased PILOT taxes.
- Utilities: Rose to $6.2 million from $5.9 million.
- Operating Services: Decreased to $35.4 million from $37.2 million.
- Property Management: Increased significantly by $3.5 million to $13.4 million due to a reorganization of the management structure.
- General and Administrative Expenses: Decreased by $5.4 million to $29.0 million.
| Expense Category | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Real Estate Taxes | $27.3 million | $25.2 million | $2.1 million | 8.3% |
| Utilities | $6.2 million | $5.9 million | $0.3 million | 5.1% |
| Operating Services | $35.4 million | $37.2 million | $(1.8) million | (4.9%) |
| Property Management | $13.4 million | $9.9 million | $3.5 million | 35.5% |
| General and Administrative | $29.0 million | $34.5 million | $(5.4) million | (15.8%) |
Net Income and Earnings per Share
For the nine months ended September 30, 2024, Veris Residential reported a net loss of $12.6 million compared to a net loss of $106.6 million in 2023. The basic loss per common share was $(0.12) for 2024, compared to $(1.16) for 2023.
Key financial metrics include:
- Loss from Continuing Operations: $16.1 million in 2024 versus $105.0 million in 2023.
- Income from Discontinued Operations: $3.4 million in 2024 compared to $(1.6) million in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Loss | $(12.6) million | $(106.6) million |
| Basic Loss Per Common Share | $(0.12) | $(1.16) |
| Loss from Continuing Operations | $(16.1) million | $(105.0) million |
| Income from Discontinued Operations | $3.4 million | $(1.6) million |
Capital Structure and Debt
As of September 30, 2024, Veris Residential had total liabilities of $1.7 billion, down from $1.9 billion at the end of 2023. The company has a total debt of $1.7 billion with a weighted average interest rate of 4.94%.
The capital structure includes:
- Mortgages and Loans Payable: $1.3 billion.
- Revolving Credit Facility: $353.6 million.
- Dividends Payable: $7.5 million.
| Capital Structure Item | Balance (as of Sept 30, 2024) | Balance (as of Dec 31, 2023) |
|---|---|---|
| Total Liabilities | $1.7 billion | $1.9 billion |
| Mortgages and Loans Payable | $1.3 billion | $1.9 billion |
| Revolving Credit Facility | $353.6 million | $0 |
| Dividends Payable | $7.5 million | $5.5 million |
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Article updated on 8 Nov 2024
Resources:
- Veris Residential, Inc. (VRE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Veris Residential, Inc. (VRE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Veris Residential, Inc. (VRE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.