8-K
Veris Residential, Inc. (VRE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OFTHE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): September 7, 2023 (September 6, 2023)
VERIS RESIDENTIAL, INC.
(Exact Name of Registrant as Specified in Charter)
| Maryland | 1-13274 | 22-3305147 |
|---|---|---|
| (State<br> or Other Jurisdiction<br> of Incorporation) | (Commission<br> File Number) | (IRS<br> Employer<br> Identification No.) |
Harborside3**, 210 Hudson St.** , Ste.400
JerseyCity**, New Jersey**
07311
(Address of Principal Executive Offices) (Zip Code)
(732
)
590-1010
(Registrant’s telephone number, including area code)
VERIS
RESIDENTIAL, L.P.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 333-57103 | 22-3315804 |
|---|---|---|
| (State<br> or Other Jurisdiction<br> of Incorporation) | (Commission<br> File Number) | (IRS<br> Employer<br> Identification No.) |
Harborside3**, 210Hudson St.** , Ste.400
JerseyCity**, NewJersey**
07311
(Address of Principal Executive Offices) (Zip Code)
(732
)
590-1010
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ¨ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ¨ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which<br><br> registered |
|---|---|---|
| Common<br> Stock, par value $0.01 | VRE | New<br> York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Co-Registrant CIK | 0001067063 |
|---|---|
| Co-Registrant Amendment Flag | false |
| Co-Registrant Form Type | 8-K |
| Co-Registrant DocumentPeriodEndDate | 2023-09-06 |
| Co-Registrant Written Communications | false |
| Co-Registrant Solicitating Materials | false |
| Co-Registrant PreCommencement Tender Offer | false |
| Co-Registrant PreCommencement Issuer Tender Offer | false |
Item 7.01 Regulation FD Disclosure
Beginning on September 8, 2023, Veris Residential, Inc., a Maryland corporation (the “General Partner”) and the general partner of Veris Residential, L.P. (the “Company,” and together with the General Partner, the “Registrants”), will participate in investor meetings and the Evercore ISI Annual Real Estate Conference and the BofA Securities 2023 Global Real Estate Conference during which members of the General Partner’s management will make presentations to investors. A copy of the General Partner’s investor presentation is furnished herewith as Exhibit 99.1.
Limitation of Incorporation by Reference
In accordance with General Instruction B.2. of Form 8-K, this information, including Exhibit 99.1 furnished herewith, is furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act. The information in this Item 7.01 of this Current Report on Form 8-K (including the exhibit hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
Cautionary Statements
This Current Report on Form 8-K, including the exhibits furnished herewith, contains “forward-looking statements” within the meaning of Section 21E of the Exchange Act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “potential,” “project,” “should,” “expect,” “anticipate,” “estimate,” “target,” “continue” or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements as a result of various factors, including those listed in Exhibit 99.1 on page 2 and incorporated by reference herein. Readers are cautioned not to place undue reliance on these forward-looking statements. Unless required by U.S. federal securities laws, we do not intend to update any of the forward-looking statements to reflect circumstances or events that occur after the statements are made or to conform the statements to actual results. The information contained in this Current Report on Form 8-K, including the exhibit filed herewith, should be viewed in conjunction with the consolidated financial statements and notes thereto appearing in the Registrants’ Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
In connection with the foregoing, the Registrants hereby furnishes the following documents:
| Item 9.01 | Financial Statements and Exhibits |
|---|
(d) Exhibits
| Exhibit Number **** | Exhibit Title **** |
|---|---|
| 99.1 | Investor Presentation dated September 6, 2023. |
| 104.1 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VERIS RESIDENTIAL, INC. | |||
|---|---|---|---|
| Dated: September 7, 2023 | By: | /s/ Taryn Fielder | |
| Taryn Fielder | |||
| Executive Vice President, General Counsel and Corporate Secretary | |||
| VERIS RESIDENTIAL, L.P. | |||
| By: | Veris Residential, Inc. | ||
| its general partner | |||
| Dated: September 7, 2023 | By: | /s/ Taryn Fielder | |
| Taryn Fielder | |||
| Executive Vice President, General Counsel and Corporate Secretary |
Exhibit 99.1
| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 1<br>Overview | Portfolio | ESG | Appendix<br>S E R V I N G P R O P E RT I E S , P E O P L E , A N D T H E P L A N E T.<br>Corporate Presentation<br>SEPTEMBER 6, 2023 |
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| 2<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>This Operating and Financial Data should be read in connection with our<br>Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.<br>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. Such for-ward-looking statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-look-ing statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial<br>items. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “potential,” “projected,” “should,” “expect,” “anticipate,” “estimate,”<br> “target,” “continue” or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot<br>predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based<br>upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise,<br>may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements<br>and are advised to consider the factors listed above together with the additional factors under the heading “Disclosure Regarding Forward-Looking Statements” and “Risk<br>Factors” in our annual reports on Form 10-K, as may be supplemented or amended by our quarterly reports on Form 10-Q, which are incorporated herein by reference. We<br>assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.<br>OVERVIEW<br>FORWARD-LOOKING STATEMENTS | |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 3<br>Overview | Portfolio | ESG | Appendix<br>OVERVIEW<br>Haus25, Jersey City, NJ<br>Overview<br>THE QUARTER IN REVIEW |
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| 4<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Cements Position as Pure-Play<br>Multifamily REIT<br> • 99% of NOI from multifamily<br>(vs 39% in Q1 2021)<br> • Youngest multifamily portfolio<br>commanding highest rents and lowest<br>capex per unit among peers<br> • Reinstated a quarterly dividend of $0.05<br>per common share effective for the third<br>quarter of 2023<br>Transformation Highlights<br>Simplification<br> & Refocus<br> • Over $2 billion of non-strategic sales<br>closed, including 25 office properties and<br>two hotels since Q1 2021, simplifying and<br>refocusing the business on multifamily<br> • Developed and stabilized four new<br>multifamily properties adding 1,856 units<br>since Q1 2021<br> • Recently signed binding agreements for four<br>non-strategic land plots, Harborside 6 and<br>23 Main Street for $205 million<br> • Consummated early redemption of<br>Rockpoint's interest in Veris Residential<br>Trust for $520 million<br> • G & A reduced to lowest level in two decades<br>in real terms<br>Sector-Leading Operational<br>Performance<br> • Developed leading operational platform<br>incorporating new personnel, processes<br>and technology<br> • Eight (8) consecutive quarters of sector<br>leading performance (supported by leading<br>platform)<br> • Same store NOI growth of 22% compared<br>to the same quarter last year<br> • Same Store blended rental growth rate<br>of 12% during the second quarter<br> • 7,681-unit multifamily portfolio and Same<br>Store 6,691-unit multifamily portfolio were<br>95.6% and 95.7% occupied, respectively, as<br>of June 30, 2023<br>+ = | |
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| 5<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Rapid Transformation to a Prime Multifamily REIT<br>OVERVIEW<br>1. Pro forma closing of Harborside 1, 2 and 3 and stabilized NOI from Haus25 (post burn-off of concessions).<br> Refer to the appendix to this presentation for NOI reconciliation.<br>Residential Office<br>39%<br>45%<br>53% 56%<br>64%<br>68%<br>75%<br>86%<br>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1<br>84%<br>2023<br>Q4<br>2021 2022<br>I N C R E A S I N G S H A R E O F N O I F R O M M U LT I FA M I LY<br>99%<br>Q2<br>32% Growth<br>in Our Multifamily Portfolio<br> • Four (4) developments completed & stabilized<br>ahead of budget<br> • 1,856 units added<br> • Haus25 (750 units) stabilized within 10 months | |
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| 6<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Class A Portfolio Demanding Highest Rents<br>OVERVIEW<br>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2<br>2021 2022 2023<br>Peers include AvalonBay<br>Communities, AIR<br>Communities, Camden<br>Property Trust, Essex<br>Property Trust, Equity<br>Residential, MAA, UDR<br>and Elme Communities.<br>Information is based on<br>Same Store.<br>Peers<br>WIDENING RENTAL PREMIUMS REFLECT OPERATIONAL ENHANCEMENTS<br>Veris Residential average<br>revenue based off of the<br>entire multifamily portfolio.<br>$2,974 $2,925<br>$3,734<br>$2,064<br>$2,438<br>Rebranded to<br>VRE<br>RiverHouse 9<br>Stabilized<br>Refined Operations<br>Model & Business<br>Platform<br>Launched Full<br>Website<br>Haus25<br>Stabilized<br>$3,103 $3,198<br>$3,621<br>53% Rent<br>Premium to<br>Peers<br>$2,930<br>The Capstone &<br>The Upton<br>Stabilized<br>Mahbod Nia<br>named CEO<br>42% Rent<br>Premium to<br>Peers | |
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| 7<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Continued Outperformance<br>OVERVIEW<br>Note: Peers included are AvalonBay Communities, AIR Communities, Camden Property Trust, Essex Property Trust, Equity Residential, MAA, UDR and Elme Communities. Peer information is based on Same Store. Riverhouse 9, Capstone and Upton were added to Same Store in Q1 2023.<br>Veris<br> 22%<br>Q2 2023<br>S A M E S TO R E<br>YOY NOI GROWTH<br>SAME STORE YOY REVENUE<br>G R O W T H (Q UA RT E R LY)<br>SAME STORE BLENDED NET RENTAL<br>G R O W T H R AT E (Q UA RT E R LY)<br>vs. Peers<br>7%<br>Veris Peers Average | |
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| 8<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Focus on Operational Excellence<br>OVERVIEW<br>Number of Properties 23 294 73 172 252 304 292 181 27<br>Number of Units 7,681 88,659 22,455 60,514 62,261 80,212 99,407 57,997 8,873<br>Same Store NOI Growth YoY 21.8% 7.9% 11.2% 7.1% 3.6% 5.4% 8.6% 7.7% 10.8%<br>Net Blended Rental Growth Rate(2) 11.2% 6.4% 6.5% 4.1% 2.2% 4.3% 3.8% 3.1% 3.7%<br>Same Store Ave. Monthly Rent per Home $3,708 $2,920 $2,870 $1,998 $2,597 $3,026 $1,673 $2,532 $1,890<br>Average Asset Age(3) 7 15 38 13 28 23 19 23 42<br>Capex Reserve per Home(3) $1,750 $2,300 $4,575 $3,150 $3,550 $2,500 $2,350 $3,250 $3,250<br>ORATM Score(4) 80.65 78.46 67.16 78.57 59.39 70.73 79.06 58.31 68.32<br>Elite 1% ORA®(4) Properties for 2021 5 20 1 13 1 7 29 0 0<br>Note: Veris Residential properties as of June 30, 2023. Peer comparable data as of Q2 2023 reporting.<br>1. Veris Residential portfolio includes Haus25 and The James, except for Same Store metrics.<br>2. Veris Residential had an unadjusted NOI Margin of 68.4% for Q2. The 64.8% includes tax adjustments realized in Q2.<br>3. Information based on Green Street as of July 24, 2023.<br>4. ORA Rankings as published by J Turner as of June 2023.<br>(1) | |
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| 9<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Debt Overview<br>FINANCING AND LIQUIDITY<br>OVERVIEW<br> • As of August 30, 99% of the Companys total debt portfolio \(consolidated and unconsolidated\) is hedged or fixed. The<br>Companys total debt portfolio has a weighted average interest rate of 4.4% and weighted average maturity of 4 years.<br> • The loans on Portside 1 and Haus25 were refinanced in August and reflected in the above statement.<br> • Leverage primarily comprised of senior secured mortgage debt on multifamily properties.<br>DEBT MATURITY SCHEDULE<br>(AS OF AUGUST 30, 2023)<br>Note: Chart reflects the refinancing activity around Haus25 and Portside 1. Chart does not include balances on the new RCF or Term Loan. Multifamily Secured<br>2023 2024 2025 2026 2027 2028 2029 2030 2031<br>$308<br>$540<br>$316<br>$292<br>$72<br>$343 |
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| 10<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>OVERVIEW<br>Components of Net Asset Value<br>REAL ESTATE PORTFOLIO TOTAL AT SHARE<br>New Jersey Waterfront $137,660 $114,454<br>Normalized impact of successful tax appeals (8,716) (8,716)<br>Massachusetts 24,144 24,144<br>Other 32,972 23,998<br>Haus25 (Stabilized NOI) 30,426 30,426<br>Total Multifamily NOI $216,486 $184,306<br>Commercial NOI 5,336 4,317<br>Total NOI $221,822 $188,623<br>NON-STRATEGIC ASSETS<br>Book Value of Harborside 5 $119,544<br>Gross Price of Non-Strategic Assets Under Binding Contract 205,000<br>Estimated Land Value 210,551<br>Subtotal Non-Strategic Assets $504,783<br>OTHER ASSETS TOTAL<br>Cash and Cash Equivalents $17,907<br>Restricted Cash 22,430<br>Other Assets 71,267<br>Subtotal Other Assets $111,604<br>LIABILITIES AND OTHER CONSIDERATIONS<br>Operating - Consolidated Debt at Share $1,753,835<br>Operating - Unconsolidated Debt at Share 310,067<br>Other Liabilities 75,984<br>Revolving Credit Facility 25,000<br>Term Loan 115,000<br>Preferred Equity/LP interest 40,231<br>Subtotal Liabilities and Other Considerations $2,320,117<br>OUTSTANDING SHARES<br>Common Shares (Outstanding as of June 30, 2023) 100,908,061<br>Fully Diluted Shares for Q2 2023 100,854,172<br>$ IN THOUSANDS<br>Notes: See “Information About FFO, Core FFO, AFFO, NOI, Adjusted EBITDA & EBITDAre”. Net Asset Value (“NAV”) is the metric that represents the net projected value of the<br>Company’s interest after accounting for all priority debt and equity payments. The metric includes capital invested by the Company. Please refer to the Company's Supplemental<br>Operating and Financial Data, furnished as Exhibit 99.1 to the Company's Current Report on Form 8-K as filed with the SEC on July 26, 2023, and the 10-Q for more details. | |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 11<br>Overview | Portfolio | ESG | Appendix<br>RiverHouse 11, Weehawken, NJ<br>PORTFOLIO<br>Portfolio<br>WHERE PROGRESS COMES TO LIFE |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 12<br>Overview | Portfolio | ESG | Appendix<br>Best-In-Class, Northeast<br>Multifamily REIT<br>ASSETS AT A GLANCE<br>MORRIS COUNTY<br> • Signature Place<br> • The Metropolitan at 40 Park<br> • The Metropolitan Lofts<br>BERGEN COUNTY<br> • The James<br>HARRISON<br> • RiverPark at Harrison<br>SHORT HILLS<br> • The Upton<br>JERSEY CITY<br> • Soho Lofts<br> • Urby<br> • BLVD Collection<br> • Haus25<br> • Liberty Towers<br>PORT IMPERIAL<br> • RiverTrace<br> • The Capstone<br> • RiverHouse 9<br> • RiverHouse 11<br>NEW YORK<br> • Quarry Place<br>MASSACHUSETTS<br> • 145 Front at City Square<br> • Portside I/II at East Pier<br> • The Emery<br>WASHINGTON, D.C.<br> • Station House<br>7,681 Premium units across 23 assets, with<br>locations across New Jersey, Boston, Suburban<br>New York and Washington, D.C.<br>Since endeavoring to become a pure-play,<br>multifamily REIT, we have added 1,856 residential<br>units to our portfolio—that’s a growth of 32% in just<br>two years. All acquisitions and developments stay<br>true to our vision: Class A properties with resort-style amenities, professionally-curated events and a<br>commitment to ESG.<br>PORTFOLIO |
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| 13<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Class-A Portfolio<br>Properties boast lounges with picturesque views, advanced<br>fitness centers, dog parks and grooming areas, rooftop<br>swimming pools and rec areas, as well as ESG-driven<br>features like EV charging stations, green roofs, and resident<br>programs like rooftop beehives and Veris Farm.<br>Note: Veris peers include Avalon Bay, AIR Communities, Camden, ESSEX Property Trust, Equity<br>Residential, UDR, MAA, and Elme Communities. Veris Residential as of June 30, 2023. Peer<br>information based off Green Street as of July 24, 2023.<br>N E W E S T P O RT F O L I O ( AV E R A G E A G E )<br>WITH THE LOWEST CAPEX REQUIREMENT<br>The James, Park Ridge, NJ<br>We also allow residents to book private events in shared<br>spaces, such as our lounges, rooftop areas, conference<br>rooms and work pods—all providing additional income.<br>PORTFOLIO<br>0 years 10 years 20 years 30 years 40 years<br>$2000<br>$2500<br>$3000<br>$3500<br>$4000<br>$4500<br>$5000<br>ELME<br>AIRC<br>EQR ESS<br>UDR<br>MAA AVB<br>CPT<br>VRE | |
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| 14<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Our integrated suite of front office technology<br>provides multifamily owners and operators the<br>levers they need to improve efficiency, maximize<br>NOI and effortlessly guide tenants from lead to<br>lease.<br>MyVeris App<br>The MyVeris app allows residents to pay rent,<br>reserve amenities, RSVP to events and manage<br>maintenance requests. It also serves as a<br>communication tool.<br>Self-Service Leasing<br>This service allows prospects to schedule and<br>adjust appointments and lease apartments sight-unseen directly through our website.<br>Technology-Focused<br>Approach<br>M O D E R N E F F I C I E N C I E S<br>Virtual Tours<br>Prospects can now remotely tour selected<br>apartments via our website, allowing them to<br>visualize their apartment home. Stats from this<br>service also provide analytics and market insights<br>to our teams.<br>Revenue Optimization Platform<br>Analytical, informed approach to pricing,<br>maximizing revenue for new leases and renewals.<br>RiverHouse 11, Weehawken, NJ<br>PORTFOLIO | |
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| 15<br>Overview | Portfolio<br> | ESG<br> | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>The Upton, Short Hills, NJ<br>PORTFOLIO<br>An Excellent<br>Reputation<br>Average Property Google Review<br>We have been at Signature since<br>the opening and I could not have<br>been happier. The Management<br>and maintenance staff have been<br>extremely responsive and very<br>nice. I have to give a shout out<br>to some of the old employees<br>and new ones like Cheryl,<br>Katharine, Jose, Gilbert and the<br>management teams of Carol-Ann,<br>Erga and Antonio have really<br>made sure the staff on top of the<br>game. The buildings and grounds<br>are very well maintained. Great<br>place to live.<br>- Signature Place, Yelp<br>The RiverTrace community (residents and management<br>alike) has been nothing short of excellent! The<br>community resources, concierges, attention to residents,<br>and events offered are awesome. Each resident here<br>stays for a long period of time because of the warmth<br>and comfort that the RiverTrace provides. Franer,<br>Chanelly, and Gary work hard to guarantee satisfaction.<br>I couldn't recommend more!<br> – RiverTrace, Google<br>Emery is such a great<br>place! Management<br>is extremely helpful,<br>especially Maria! She<br>completely answered<br>all my questions and<br>beyond! If I could give<br>her 10 stars I would!<br> – The Emery, Google<br>From the moment I stepped inside the lobby, I was impressed<br>by the elegant design, attention to detail, and amazing<br>ambiance. The downtown location couldn't be more perfect<br> – there are tons of restaurants, shops, stunning waterfront/<br>NYC views & super easy access to the city. Whole Foods is<br>opening across the street! The amenities are top-notch & very<br>well maintained. The entire on-site team from concierge to<br>the leasing/management are incredibly friendly, attentive &<br>hospitable. If you're looking for an elevated living experience in<br>the heart of downtown Jersey City, Haus25 is the place to be!<br> – Haus25, Apartments.com<br> “<br> “<br> “<br> “<br> “<br> “<br> “<br>We've been at 475 Blvd for over 2 years now. We have loved our stay and the building<br>has very great amenities. Staff is very friendly. The maintenance team is very quick to<br>respond. A special shout out to Keston. He goes above and beyond to fix any issues and<br>he is very quick and efficient. – BLVD Collection, Google “<br> “ | |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 16<br>Overview | Portfolio | ESG | Appendix<br>RiverHouse 11, Weehawken, NJ<br>PORTFOLIO<br>Commitment to ESG<br>P R O P E RT I E S , P E O P L E , P L A N E T.<br>ESG |
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| 17<br>Overview | Portfolio | ESG | Appendix<br>CORPORATE PRESENTATION, SEPTEMBER 6, 2023<br>Environmental Social Governance ESG as an Amenity ESG Leader<br>ESG Initiatives<br>+ + + =<br> • 54% Reduction in Scope 1 & 2 Emissions (compared to 2019)<br> • More than 90% of Operational Carbon Footprint Disclosed (including Scope 3)<br> • Neary 70% of properties are green certified<br> • Planted over 10,000 trees in honor of residents & employees<br> • WELL Equity Rated (1st<br>company globally to achieve<br>this portfolio-wide)<br> • WELL Health & Safety Rated<br> • Met Gender Equality Target<br>at Management Level (ahead of 2025 goal)<br> • Part of CEO Action for Diversity & Inclusion<br> • Joined Pledge 1%<br> • Launched Ethics Hotline<br> • Introduced Green Lease<br>Addendums to 90% of Leases<br> • Launched Supplier Diversity Program<br> • Beehives installed at majority<br>of portfolio<br> • BLVD Collection's Veris Farm yielded 1,091 lbs of produce<br> • All appliances are ENERGY STAR®<br> • Ecobee smart thermostats save residents 26% on energy bills<br> • Majority of communities receive a Walk Score of 90+<br> • Leading ISS QualityScore, rating of 1 for both Social and<br>Environmental disclosures and 1 for Governance (10 being<br>the highest risk)<br> • GRESB Score of 5 Star for ESG Leadership and Performance<br>(the highest score offered)<br> • Consecutive years being Great Place to Work® Certified<br> • Inclusion in Bloomberg Gender Equality Index (upon 1st submission) | |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 18<br>Overview | Portfolio | ESG | Appendix<br>Portside, East Boston, MA<br>APPENDIX<br>ADDITIONAL CONTENT & DEFINITIONS<br>Appendix |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 19<br>Overview | Portfolio | ESG | Appendix<br>Multifamily Office / Corp Disc. Ops Total Multifamily Office / Corp Total<br>Net Income (loss) $(12,805) $(17,330) $— $(30,135) $(11,015) $(5,215) $(16,230)<br>Deduct:<br>Real estate services income (644) 1 — (643) (911) — (911)<br>Interest and other investment loss (income) (1) (3,926) — (3,927) (29) (87) (116)<br>Equity in (earnings) loss of unconsolidated joint ventures (2,700) — — (2,700) 68 — 68<br>General & Administrative – property level — 3,488 (3,488) — 3 — 3<br>Realized and unrealized (gains) losses on disposition — — — — — (780) (780)<br>(Gain) loss on disposition of developable land — — — — — 22 22<br>(Gain) loss from early extinguishment of debt, net — 2,657 — 2,657 (12) 12 —<br>Other Income (710) (143) — (853) — — —<br>Add:<br>Real estate services expenses 2,352 2,037 — 4,389 1,897 46 1,943<br>General and administrative 660 8,932 (10) 9,582 1,354 8,932 10,286<br>Dead deal and transaction-related costs — 3,319 — 3,319 — 1,027 1,027<br>Depreciation and amortization 21,583 2,376 (275) 23,684 21,506 2,370 23,876<br>Interest expense 35,068 14 — 35,082 21,986 28 22,014<br>Land impairments — 3,396 — 3,396 3,396 — 3,396<br>Net Operating Income (NOI) $42,803 $4,821 $(3,773) $43,851 $38,243 $6,355 $44,598<br>DEFINITION OF NET OPERATING INCOME (NOI):<br>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 markets as it relates to total return on assets, as opposed to levered<br>return on equity. As properties are considered for sale and acquisition based on NOI estimates and projections, the Company utilizes this measure to make investment decisions, as well as compare the performance of its assets to those of its peers. NOI should not be considered a substitute for net income, and the Company’s<br>use of NOI may not be comparable to similarly titled measures used by other companies. The Company calculates NOI before any allocations to noncontrolling interests, as those interests do not affect the overall performance of the individual assets being measured and assessed.<br>Information About Net Operating Income (NOI)<br>RECONCILIATION OF NET INCOME (LOSS) TO NET OPERATING INCOME (NOI)<br>Q2 2023 Q1 2023<br>APPENDIX |
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| CORPORATE PRESENTATION, SEPTEMBER 6, 2023 | 20<br>Overview | Portfolio | ESG | Appendix<br>Definitions<br>Net Blended Rental Growth Rate combines new lease and renewal<br>lease growth rates. New lease growth rate refers to the difference in rent a<br>new occupant of a unit is paying compared to the rent the unit’s previous<br>occupant was paying on a net effective basis. Renewal lease growth rate<br>refers to the increase or decrease in monthly rent in a renewed lease<br>compared to the previous lease on a net effective basis.<br>Average Effective Monthly Rent Per Home represents the average<br>effective rent (net of concessions) for in-place leases and the market rent<br>for vacant homes.<br>ORA™ score is an aggregate compilation of a property’s ratings across<br>various review sites. Each month, J Turner Research monitors the online<br>ratings of more than 120,000 properties nationwide. Using a statistical<br>model, a single score based on a scale of 0 to 100 is assigned to each<br>property.<br>Elite 1% ORA® Properties for 2021 is an annual ranking of the 128,000<br>properties assessed by ORA® nationally. The top 1% make it to the list,<br>typically requiring a property score above 95.<br>Same Store includes properties that were owned for the entirety of the<br>years being compared and exclude properties under redevelopment or<br>development and properties acquired, sold or classified as held for sale<br>during the years being compared.<br>APPENDIX |
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| THIS PRESENTATION HAS BEEN FORMATTED FOR SCREENS.<br>PLEASE CONSIDER THE ENVIRONMENT BEFORE PRINTING.<br>Thank You | ||||
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