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): June 4, 2024
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) |
| --- | --- |
| ¨ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which 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 | 2024-06-04 |
| 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 June 4, 2024, 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 NAREIT REITWeek 2024 Investor 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. |
| 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: June 4, 2024 | 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: June 4, 2024 | By: | /s/ Taryn Fielder | |
| Taryn Fielder | |||
| Executive Vice President, General Counsel and Corporate Secretary |
Exhibit 99.1
| Corporate Presentation<br>MAY 31, 2024 | ||||||
|---|---|---|---|---|---|---|
| This Operating and Financial Data should be read in connection with our<br>Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.<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>FORWARD-LOOKING STATEMENTS | ||||||
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 3<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>OVERVIEW<br>145 Front at City Square, Worcester, MA<br>Company Overview<br>COMPANY OVERVIEW |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 4<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>At-A-Glance<br>KEY COMPANY HIGHLIGHTS<br>Veris Residential, Inc.<br>is a forward-thinking,<br>environmentally and socially<br>conscious real estate investment<br>trust (REIT) that primarily<br>owns, operates, acquires and<br>develops holistically inspired,<br>Class A multifamily properties<br>that meet the sustainability-conscious lifestyle needs of<br>today's residents while positively<br>impacting the communities it<br>serves and the planet at large.<br>E X P E R I E N C E D L E A D E R S H I P<br>T E A M W I T H A P R OV E N<br>T R A C K R E C O R D O F VA LU E<br>CREATION<br>N E W E S T, H I G H E S T- Q U A L I T Y<br>C L A S S A M U LT I FA M I LY<br>PORTFOLIO<br>B E S T- I N - C L A S S ,<br>V E RT I C A L LY<br>INTEGRATED<br>O P E R AT I O N A L<br>PLATFORM<br>94.7%*<br>OCCUPANCY RATE<br>22 7,621<br>COMMUNITIES APARTMENT HOMES<br>78% 92<br>OF PROPERTIES<br>A R E G R E E N<br>CERTIFIED<br>2023 GRESB SCORE<br>* Average as of May 20, 2024<br>COMPANY OVERVIEW<br>14.2%<br>Q1 2024 NOI GROWTH<br>VERIS'<br>VALUE<br>PROPOSITION |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 5<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Rapid Transformation to a Pure-Play Multifamily REIT<br>Named new<br>CEO and<br>COO<br>Announced<br>strategic shift<br>to pure-play<br>multifamily<br>Repaid<br>$575m of<br>corporate<br>bonds<br>Rebranded<br>to<br>Veris<br>Residential<br>Reinstated<br>dividend<br>Negotiated<br>early<br>redemption<br>of Rockpoint<br>preferred<br>interest<br>Transformed<br>remaining<br>C-Suite<br>leadership<br>$831m of<br>non-strategic<br>sales (5 land<br>parcels, 2<br>offices and<br>1 hotel)<br>Acquired<br>The James<br>2021 2022 2023<br>$660m of<br>non-strategic<br>sales (3 land<br>parcels, 5<br>offices and<br>2 hotels)<br>$207m of<br>non-strategic<br>sales YTD,<br>including<br>Harborside 5,<br>our last office<br>asset<br>2024<br>$731m<br>of suburban<br>office sales<br>across 20<br>properties<br>COMPANY OVERVIEW<br>39%<br>45%<br>53% 56%<br>64% 68% 75%<br>86% 84%<br>99%<br>Launched<br>Haus25<br>11th Quarter<br>of sector-leading<br>operational<br>performance<br>99% 99% 100% |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 6<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>What's Next: A Multi-Faceted Approach to Value Creation<br>OPTIMIZATION INITIATIVES TO ENHANCE ENTITY VALUE<br>With the transformation behind us, our focus turns to the<br>significant opportunities for continued value creation that lie<br>ahead.<br> • Capital Allocation: Initiatives focused on generating<br>earnings and value accretion, providing a further boost<br>to the positive baseline performance from our existing<br>multifamily portfolio over time<br> • Platform/Portfolio Optimization: Continued operational<br>outperformance through platform and portfolio<br>optimization strategies<br> • Balance Sheet Optimization: Focusing on the<br>composition and level of debt over time<br>PLATFORM/PORTFOLIO<br>OPTIMIZATION<br>CAPITAL<br>ALLOCATION<br>BALANCE SHEET<br>OPTIMIZATION<br>VALUE<br>CREATION<br>COMPANY OVERVIEW |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 7<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Veris' Value Proposition<br>W E L L-P O S I T I O N E D W I T H S T R O N G U N D E R LY I N G F U N D A M E N TA L S<br>1 2 3 4<br> Sector-leading,<br>vertically integrated<br>operational platform.<br>Strong track record of<br>developing to core<br>(1,616 units—or 32%<br>since 2021).<br>Technology-guided/AI-based approach to revenue<br>optimization.<br>Newest Class A portfolio in<br>established Northeast markets<br>commanding the highest average<br>rent /unit and growth rate.<br>5 6 7 8<br>Highly scalable<br>platform.<br>Experienced management team<br>with strong track record.<br>Diverse, experienced Board, highly<br>focused on value creation.<br>Best-in-class governance<br>and commitment to value-enhancing ESG initiatives.<br>Disciplined, value-oriented<br>approach to evaluating capital<br>allocation opportunities.<br>COMPANY OVERVIEW |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 8<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Northeast Coastal<br>Focused<br>MORRIS COUNTY<br> • Signature Place<br> • The Metropolitan at 40 Park<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> • The 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>7,621 premium units across 22 assets, with<br>locations across New Jersey, Massachusetts,<br>Suburban New York and Washington, D.C.<br>Almost half of our properties are located on the<br>Jersey City Waterfront, where Class A rents continue<br>to reflect a discount of approximately 30% to<br>top Manhattan submarkets and 12% to those of<br>Downtown Brooklyn while offering generally newer<br>product, more space and a wider selection of<br>amenities.<br>OUR CORE MARKETS<br>COMPANY OVERVIEW |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 9<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Superior Portfolio Quality<br>Portfolio differentiators:<br> • Highly-amenitized, Class A assets<br> • Youngest multifamily portfolio<br> • Located in top-performing submarkets<br> • Commanding highest rents<br> • Sector-leading ORA® Score of 82.88, reflecting high<br>resident satisfaction<br> • Underpinned by ESG principles<br>Unmatched finishes and amenities:<br> • Resident lounges with picturesque views<br> • State-of-the-art fitness centers<br> • Rooftop swimming pools<br> • Dog parks and grooming areas<br> • EV charging stations<br> • Green roofs<br> • Hydroponic farms<br> • Rooftop beehives<br> • Private event spaces<br> • Conference rooms<br> • Work pods<br> • Golf simulator rooms<br>H I G H LY A M E N I T I Z E D & S PA C I O U S<br>APARTMENT HOMES<br>The Upton, Short Hills, NJ<br>COMPANY OVERVIEW |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 10<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Our Leadership Team<br>PROVEN TRACK RECORD OF VALUE CREATION Executive Team<br>Mahbod Nia Taryn Fielder Amanda Lombard Anna Malhari Jeff Turkanis<br>Chief Executive<br>Officer<br>General Counsel<br> & Secretary<br>Chief Financial<br>Officer<br>Chief Operating<br>Officer<br>Chief Investment<br>Officer<br>Dept. Heads<br>Carmen DeGuida Lori Milo Karen Cusmano PJ Lefort<br>CISO & Vice President<br>Information Technology<br>Senior Vice President<br>Human Resources<br>Senior Vice President<br>Sustainability & ESG<br>Senior Vice President<br>Operations<br>Senior Vice President<br>Operations & Asset Mgmt<br>Nicole Jones<br>Senior Vice President<br>Marketing & Comms<br>Jay Minchilli Javairia Waseem<br>Vice President<br>Tax<br>Chief Accounting<br>Officer<br>Cindy Mai<br>COMPANY OVERVIEW |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 11<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Market Overview<br>Haus 25, Jersey City, NJ<br>MARKET OVERVIEW |
| --- | ||||||
| 0.0%<br>0.5%<br>1.0%<br>1.5%<br>2.0%<br>2.5%<br>3.0%<br>0% 1% 2% 3% 4% 5% 6% 7% 8%<br>Annual Effective Rent Change: 2024 (Annual Average)<br>UPPER MIDWEST<br>LOWER MIDWEST/PLAINS<br>MID-ATLANTIC<br>DESERT/MOUNTAINS<br>CAROLINAS<br>WEST COAST<br>SOUTHEAST TEXAS<br>FLORIDA<br>Annual Net Inventory Change: 2024 (% of Existing Stock Scheduled to Deliver)<br>NORTHEAST<br>Source: RealPage®; CoStar for Jersey City Waterfront data only<br>JERSEY CITY WATERFRONT<br>3.5%<br>CORPORATE PRESENTATION, MAY 31, 2024 | 12<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Our Core Markets<br>R O B U S T D E M A N D A N D L I M I T E D N E A R-T E R M S U P P LY<br>SUPPORT CONTINUED RENTAL GROWTH<br>MARKET OVERVIEW |
| --- | ||||||
| As of May 2024. Source: Oxford Economics; CoStar for Jersey City Waterfront.<br>1. Stats do not include Connecticut. 2. Includes all of Jersey City, NJ.<br>CORPORATE PRESENTATION, MAY 31, 2024 | 13<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Tri-State (NY, NJ, CT)1<br>295,000<br>EXISTING TOTAL<br>CLASS A INVENTORY<br>15,000 (4.9%)<br>CLASS A IN-CONSTRUCTION PIPELINE<br>$4,180<br>AVERAGE CLASS A<br>RENTS<br>2.5%<br>RENT GROWTH<br>FORECAST<br>0.6%<br>PROJECTED ANNUAL<br>POPULATION GROWTH<br>(0.2%)<br>PROJECTED ANNUAL<br>JOB GROWTH<br>1.7%<br>PROJECTED ANNUAL<br>GDP GROWTH<br>Jersey City Waterfront<br>19,000<br>EXISTING TOTAL<br>CLASS A INVENTORY<br>3.3%<br>CLASS A VACANCY RATE<br>$4,048<br>AVERAGE<br>CLASS A RENTS<br>2.8%<br>RENT GROWTH<br>FORECAST<br>0.6%<br>PROJECTED ANNUAL<br>POPULATION GROWTH2<br>(0.2%)<br>PROJECTED ANNUAL<br>JOB GROWTH2<br>1.7%<br>PROJECTED ANNUAL<br>GDP GROWTH2<br>Boston Metro<br>115,000<br>EXISTING TOTAL<br>CLASS A INVENTORY<br>4,000 (3.6%)<br>CLASS A IN-CONSTRUCTION PIPELINE<br>$3,323<br>AVERAGE CLASS A<br>RENTS<br>4.6%<br>RENT GROWTH<br>FORECAST<br>0.7%<br>PROJECTED ANNUAL<br>POPULATION GROWTH<br>1.2%<br>PROJECTED ANNUAL<br>JOB GROWTH<br>3.3%<br>PROJECTED ANNUAL<br>GDP GROWTH<br>Our Core Markets<br>COMMUNITIES CONCENTRATED IN THE NORTHEAST<br>MARKET OVERVIEW<br>385 (2.0%)<br>CLASS A IN-CONSTRUCTION PIPELINE<br>5.5%<br>CLASS A VACANCY RATE<br>7.9%<br>CLASS A VACANCY RATE |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 14<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Weighted average of Veris Residential markets as of December 2023. Markets include New Jersey, New York, Massachusetts and Washington, D.C. Source: US Census Bureau.<br>Key Drivers in Our Core Markets<br>ESTABLISHED MARKETS WITH STRONG FUNDAMENTALS<br>MARKET OVERIEW<br>Higher Average<br>Resident Income<br>MEDIAN RESIDENT INCOME<br>Higher Cost of<br>Home Ownership<br>MEDIAN VALUES<br>Higher Educational<br>Attainment<br>% OF ADULTS WITH<br>BACHELOR'S OR HIGHER<br>$74,755<br>$104,431<br>1.37x<br>1.52x<br>35.70%<br>49.93%<br>U.S.<br>Average<br>Veris<br>Markets<br>U.S.<br>Average<br>U.S.<br>Average<br>Veris<br>Markets<br>Veris<br>Markets<br>Veris<br>Properties<br>$187,102 |
| --- | ||||||
| Rent/Income % (Mean)<br>CORPORATE PRESENTATION, MAY 31, 2024 | 15<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Our Residents' Income Profile<br>R E S I D E N T I N C O M E S S T E A D I LY G R O W I N G I N PA R A L L E L W I T H R E N T S<br>12%<br>AV E R A G E R E S I D E N T<br>R E N T TO N E T D I S P O S A B L E<br>INCOME<br>$187,102<br>AVERAGE RESIDENT<br> INCOME<br>$369,150<br>AV E R A G E H O U S E H O L D<br>INCOME<br>Resident income information reflects Q1 2024.<br>MARKET OVERIEW<br>14% 13% 15% 13% 14% 14% 16% 15% 15% 13% 14% 13%<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>Q4<br>2021<br>Q1<br>2022<br>Q2<br>2022<br>Q3<br>2022<br>Q4<br>2022<br>Q1<br>2023<br>Q2<br>2023<br>Q3<br>2023<br>Q4<br>2023<br>Average Revenue per Home<br>$4,100<br>$3,900<br>$3,700<br>$3,500<br>$3,300<br>$3,100<br>$2,900<br>$2,700<br>$2,500<br>80.0%<br>70.0%<br>60.0%<br>50.0%<br>40.0%<br>30.0%<br>20.0%<br>10.0%<br>0.0%<br>Rising Incomes Support Growing Rents<br>Q1<br>2024<br>12% |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 16<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>PORTFOLIO<br>Portfolio Optimization<br>PORTFOLIO OPTIMIZATION<br>145 Front at City Square, Worcester, MA |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 17<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Ongoing Portfolio Optimization Strategies<br>FOCUS ON MAXIMIZING NOI GROWTH AND MARGIN<br>PORTFOLIO OPTIMIZATION<br>Revenue<br>Maximization<br>Expense<br>Mitigation<br>Capital<br>Investment<br> • Guided, AI-based approach to<br>revenue optimization.<br> • Prioritization of resident retention.<br> • Focus on resident experience<br>(The Veris Promise).<br> • Ancillary revenue opportunities.<br> • Controls/budgeting/accountability.<br> • Simplification of organizational<br>structure/streamlined processes.<br> • Technology driving efficiencies<br>across functions (EliseAI, Peek,<br>Maintenance IQ and others).<br> • Hybrid-style, "floating" leasing team.<br> • Centralized back office.<br> • ROIC-focused capex to grow<br>revenue and/or reduce expenses,<br>driving NOI growth.<br> • Value-enhancing ESG initiatives. |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 18<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Class A Portfolio with Peer-Leading Revenue & NOI Growth<br>11 CONSECUTIVE QUARTERS OF SECTOR-LEADING PERFORMANCE<br>Veris<br> 14.2%<br>vs.<br>Peers<br>2.3%<br>Q1 S A M E S TO R E YOY<br>NOI GROWTH<br>PORTFOLIO OPTIMIZATION<br>Peer (Median)<br>Q4<br>2020<br>Q1<br>2021<br>Q2<br>2021<br>Q3<br>2021<br>Q4<br>2021<br>Q1<br>2022<br>Q2<br>2022<br>Q3<br>2022<br>Q4<br>2022<br>Q1<br>2023<br>Q2<br>2023<br>Q3<br>2023<br>Veris Residential<br>20%<br>15%<br>10%<br>5%<br>0%<br>-5%<br>-10%<br>-15%<br>Year-Over-Year Revenue Growth<br>Q4<br>2023<br>Q1<br>2024 |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 19<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Revenue Management Driving Outperformance<br>OPTIMIZING RENTAL REVENUE<br>Market<br>Intelligence<br> • Realtime demand/<br>supply analytics<br> • Demographic trends<br> • Target resident mix<br>Revenue<br>Management<br> • Guided, AI-based<br>approach to optimizing<br>new lease and renewal<br>pricing<br> • Lease expiration<br>optimization matrix<br> • Optimized occupancy<br>Marketing &<br>Customer<br>Service<br> • Targeted marketing<br>spend based on<br>data/intelligence<br> • Customer service<br>experiences<br>streamlined by<br>technology<br>Revenue<br>Outperformance<br> • 11 consecutive quarters<br>of peer-leading revenue<br>growth<br>PORTFOLIO OPTIMIZATION<br>A Rental Premium<br>Average rent per home for Class A property<br>5.6%<br>Market Rent<br>per Home<br>$4,091 $4,317<br>Veris Premium Veris Rent<br>per Home<br>VERIS PROPERTIES ON JERSEY CITY<br>WATERFRONT COMMAND<br>Q2 SAME STORE BLENDED<br>RENTAL GROWTH RATE<br>AS OF MAY 20, 2024<br>$226 |
| --- | ||||||
| 30%<br>40%<br>50%<br>60%<br>70%<br>80%<br>90%<br>100%<br>SUSTAINED INCREASE IN NOI MARGIN SINCE Q1 2021<br>OF REVENUE<br>22%<br>NOI MARGIN<br>57% N O I<br>MARGIN<br>67%<br>O F<br>REVENUE<br>17%<br>CORPORATE PRESENTATION, MAY 31, 2024 | 20<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Driving Operating Margin Improvements<br>T H R O U G H E F F E CT I V E E X P E N S E M I T I G AT I O N M E A S U R E S D E S P I T E T H E<br>INFLATIONAL BACKDROP AND ELEVATED TAX INCREASES IN JERSEY CITY<br>What's Increased Our NOI<br>Margin So Far:<br> • Introduction of controls and budgeting<br>accountability<br> • Simplification of organizational structure<br> • Centralized back-office functions, including<br>vendor management and certain accounting<br>functions<br> • AI-enabled leasing assistant<br> • Hybrid-style, "floating" leasing team<br>What Will Continue to Drive<br>Improvement:<br> • Smart maintenance platform<br> • Smart budgeting platform<br> • Other initiatives under review<br>2021 2022 2023<br>Non-Controllable Expenses Over Revenue Controllable Expenses Over Revenue Non-Controllable Expenses Over Revenue<br>Controllable Expenses<br>Non-Controllable Expenses<br>NOI Margin<br>PORTFOLIO OPTIMIZATION<br>Q1 24 |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 21<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>RENOVATING AND REPOSITIONING LIBERTY TOWERS<br>We have begun an extensive renovation of Liberty Towers,<br>a 648-unit apartment building in Jersey City, which will<br>significantly enhance the value of the asset.<br>Future Value-Add Opportunities—Liberty Towers<br>18%<br>RETURN-ON-INVESTMENT<br>$0.06<br>P E R S H A R E C O R E F F O<br>C O N T R I B U T I O N W I T H C O M P L E T I O N<br>IN 3-4 YEARS<br>PORTFOLIO OPTIMIZATION<br>$30 Million<br>INVESTMENT<br>Renderings of the planned renovations of the amenity core |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 22<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Technology—myVeris App<br>ALL-ENCOMPASSING RESIDENT ENGAGEMENT APP<br>Our comprehensive resident mobile application,<br>myVeris, streamlines business operations while<br>offering a convenient, all-in-one solution for<br>residents to:<br> • Pay rent<br> • Request maintenance<br> • Message community management<br> • Reserve amenities<br> • View package deliveries<br> • RSVP to events<br> • Browse community information<br> and resources<br> • Register visitors<br> • Connect with brand partners<br> • Post on a digital community bulletin board<br>Homepage Property events Amenity reservations, including<br>work-from-home areas<br>Partner Promotions, where<br>residents receive exclusive deals<br>from handpicked partners<br> >90%<br>RESIDENT ADOPTION<br>RATE:<br>PORTFOLIO OPTIMIZATION |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 23<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Technology—Quinn, Our AI Property Assistant<br>COMMUNICATING WITH PROSPECTS AND RESIDENTS<br>Quinn, powered by Elise AI, is a virtual leasing agent<br>that replies to prospects using natural language<br>AI. This powerful tool automates the entire leasing<br>workflow, allowing leasing agents to focus on tours.<br>The AI is able to:<br> • Provide prospects with property and<br> leasing information<br> • Book tours for prospects<br> • Retrieve and update CRM data about<br> buildings, units, tours and prospects<br> • Follow-up with unresponsive leads<br> • Send confirmation emails<br> • Manage rescheduling and cancellations<br> • Send applications and thank you notes<br>Online chat feature<br>addition to our website<br>Sample of reporting<br>features<br>PORTFOLIO OPTIMIZATION<br>7,286*<br>AVERAGE EMPLOYEE HOURS<br>SAVED PER MONTH:<br>* Data taken from January 1, 2024 - April 30, 2024. |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 24<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Technology—Virtual and Self-Guided Tours<br>STREAMLINING OPERATIONS AND REDUCING COSTS<br>Using Peek, we create virtual tours for<br>all vacant apartments in our portfolio,<br>allowing for:<br> • Self-guided tours<br> • Streamlined operations<br> • Reduced costs<br> • Reduced prospect travel time<br> • Engaging customer experiences<br>Website allows user to see actual unit<br>they are interested in renting<br>Sample of reporting features<br>PORTFOLIO OPTIMIZATION<br> >22,000<br>M O N T H LY V I E W S<br> >2,000<br>TOTAL SPACES SCANNED |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 25<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Customer Service—The Veris Promise<br>EXCEPTIONAL RESIDENT EXPERIENCES<br>Our Pledge. Our Promise.<br>The Veris Promise is our<br>commitment to providing<br>best-in-class services while<br>creating vibrant, sustainable<br>communities. This is a pledge to<br>our residents, current and future,<br>and a true differentiator for our<br>portfolio.<br>30-DAY MOVE-IN<br>GUARANTEE<br>24-HR MAINTENANCE<br>GUARANTEE<br>CURATED PARTNER<br>PROMOTIONS<br>EMBRACE BY VERIS<br>RESIDENTIAL<br>INCLUSIVE DOG<br>Welcome<br> & CAT POLICY<br>Home<br>SMOKE-FREE COMMUNITIES &<br>Wellness<br>ELEVATOR PURIFICATION<br>ONE COMPLIMENTARY<br>LOCK-OUT<br>ONE COURTESY<br>LATE PAYMENT<br>CREDIT BUILDER<br>PROGRAM<br>VERBAL TRANSLATION<br>SERVICES<br>Extra<br>Perks<br>COMPLIMENTARY BIKE<br>STORAGE SPACE<br>75-POINT MOVE-IN<br>INSPECTION<br>WELL HEALTH-SAFETY<br> & EQUITY RATED SPACES<br>ENHANCED RESIDENT<br>REFERRAL PROGRAM<br>PORTFOLIO OPTIMIZATION<br>BILT REWARDS<br>PROGRAM |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 26<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Average Property Google Review<br>Ever, the maintenance technician was<br>very helpful! I put a request in for my ice<br>maker to be fixed on a Monday night,<br>and Ever was there first thing Tuesday<br>morning to get our ice maker back up and<br>running again. He was polite, kind, and<br>professional. We have loved our time at<br>Portside East so far and would recommend<br>these apartments to anyone!<br> – Yelp, Portside at East Pier I cannot say enough good things about Haus25. This building<br>is super clean and everyone from concierge, maintenance ,<br>and the leasing office have been great! Trisha and Joseph have<br>made the transition to a new apartment within the building so<br>seamless. They were extremely helpful with all questions and<br>made sure we knew exactly what to expect from the lease terms,<br>amenities, and moving. Haus25 is a wonderful community to be<br>a part of, and I’m so happy to call it home! – Haus25, Google<br>We love The James! Whenever we submit a maintenance request, Armando arrives typically<br>within an hour or two to help fix the problem. He is extremely kind and very helpful! The<br>amenities are amazing and the building is beautiful and very clean. We would recommend<br>living here to anyone! – Apartments.com, The James<br>Customer Service—An Excellent Reputation<br>National Average: 61.77<br>I made a self-tour yesterday at Haus25 and it was<br>a really great experience! Trisha responded to my<br>inquiry and arranged for my tour immediately and<br>the staffs in the building are nice too. They offered<br>me with detailed instructions on my tour. And the<br>building is a nice one! – Haus25, Google<br>Veris ORA® Score: 82.88<br>PORTFOLIO OPTIMIZATION<br>As of April 2024.<br>I love Riverhouse 11! Best decision was to live here<br>with my daughter. We enjoy all the amenities and<br>neighborhood. Our building is always clean and taken<br>care of. The staff is amazing specially Michael, the<br>leasing Manager who truly goes above and beyond<br>for us and has always made me feel appreciated and<br>valued. I truly appreciate people who deal with others<br>with courtesy and genuine care, thank you Michael so<br>much! I highly recommend Riverhouse 11.<br> – Google, RiverHouse 11 at Port Imperial<br> We love living in BLVD. The location is<br>excellent, the views are breathtaking and the<br>staff is amazing. Would recommend to anyone<br>looking for an apartment in Jersey City!<br> – Facebook, The BLVD Collection |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 27<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Focus on Operational Excellence<br>PEER-LEADING PERFORMANCE<br>PORTFOLIO OPTIMIZATION<br>Number of Properties 22 299 171 254 299 292 187 28<br>Number of Units 7,621 90,673 59,227 62,271 79,688 100,880 59,813 9,374<br>Same Store NOI Growth YTD YoY 14.2% 3.7% 2.3% 3.0% 5.5% (0.7)% 1.2% 0.3%<br>NOI Margin 66.7% 69.3% 64.4% 69.9% 67.6% 64.4% 68.7% 63.0%<br>Net Blended Rental Growth Rate 4.6% 2.0% (1.1)% 2.7% 1.6% (0.4)% 0.8% 2.3%<br>Same Store Average Monthly Rent per Home $3,899 $2,967 $1,992 $2,631 $3,070 $1,690 $2,545 $1,889<br>Average Asset Age1 8 17 14 29 23 20 23 40<br>Capex Reserve per Home1 $1,750 $2,300 $3,150 $3,550 $2,500 $2,350 $3,250 $3,250<br>ORA Ranking2 82.88 78.57 77.52 59.21 71.78 75.45 56.58 66.61<br>Elite 1% ORA Properties for 2023 2 9 8 0 2 15 1 2<br>Note: Veris Residential properties as of March 31, 2024. Peer comparable data as of 1Q 2024 reporting. Veris Residential same store portfolio now includes all multifamily assets as of 1Q24.<br>1. Information based on Green Street as of May 15, 2024.<br>2. ORA® Rankings as published by J Turner as of April 2024. |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 28<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>The Emery at Overlook Ridge, Malden, MA<br>PORTFOLIO<br>Capital Allocation<br>CAPITAL ALLOCATION |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 29<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Capital Allocation<br>A D I S C I P L I N E D, VA LU E-O R I E N T E D A P P R OA C H TA R G E T I N G T H E<br>M O S T- C O M P E L L I N G R I S K- A D J U S T E D R E T U R N S<br>DEVELOPMENT<br>ACQUISITIONS<br>VALUE-ADD<br>CAPITAL ALLOCATION<br>Strong Track<br>Record<br>Disciplined<br>Approach<br>Scaleable<br>Platform<br> • Experienced Board and<br>management team with<br>proven track record of<br>value creation<br> • Comprehensive review<br>of all capital allocation<br>alternatives with focus on<br>maximizing shareholder<br>value<br> • Expertise evaluating<br>construction, development,<br>redevelopment and value-add opportunities<br> • Proven ability to source<br>deals off-market<br> • Disciplined underwriting<br>approach<br> • Qualitative and<br>quantitative analysis for<br>market and asset-level<br>fundamentals with cross-functional input<br> • Operational insight into<br>local and sector market<br>fundamentals and capital<br>markets<br> • Proprietary analysis and<br>tracking of key markets<br> • Board oversight/approval<br> • Best-in-class, vertically<br>integrated platform<br> • Ability to leverage<br>regional and corporate<br>teams<br> • Technology driving<br>efficiencies<br>CAPITAL<br>ALLOCATION<br>LEVERAGE<br>REDUCTION<br>RETURN OF<br>CAPITAL<br>OTHER<br>$ |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 30<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Development Track Record<br>E S TA B L I S H E D T R A C K R E C O R D D E V E LO P I N G P R O P E RT I E S<br>OF THE HIGHEST QUALITY<br>Over the past three years, we have developed and<br>stabilized four new multifamily properties. These high-quality Class A assets are located in our core markets<br>and offer modern amenities, spacious units and<br>sustainability-centric design. As such, they demand<br>significant rent premiums, contributing to overall<br>portfolio outperformance.<br>1,616<br>UNITS DEVELOPED<br>BETWEEN 2021-2023<br>CAPITAL ALLOCATION |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 31<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Our Current Land Bank<br>S U B S TA N T I A L P OT E N T I A L F O R F U T U R E D E V E LO P M E N T<br>OR CAPITAL RECYCLING<br>Jersey City, NJ<br>Weehawken, NJ<br>Short Hills, NJ West New York, NJ<br>Roseland, NJ<br>Parsippany, NJ<br>White Plains, NY<br>Malden, MA<br>Revere, MA<br>Wall Township, NJ<br>We are evaluating our remaining land bank as we<br>contemplate potential future development starts<br>and/or further land sales.<br>4,139<br>UNITS FOR POTENTIAL DEVELOPMENT<br>CAPITAL ALLOCATION<br>$187 Million*<br>LAND BANK VALUE<br>* Reflects sale of 6 Becker/85 Livingston in April 2024. |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 32<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Transaction Track Record<br>H I G H LY A CT I V E O V E R T H E PA S T F O U R Y E A R S D E S P I T E<br>CHALLENGING TRANSACTION MARKETS<br>Transactions completed since 2020 include<br>34 offices, 3 hotels, 16 land parcels and 1<br>multifamily property.<br>$2.6 B<br>OF TRANSACTIONS<br>CLOSED<br>54<br>ASSETS<br>SOLD<br>CAPITAL ALLOCATION<br>THE HYATT<br>JERSEY CITY<br>HARBORSIDE 1, 2 & 3<br>JERSEY CITY<br>101 HUDSON<br>JERSEY CITY<br>4 Years of<br>Transactions<br>TRACK RECORD SINCE JANUARY 1, 2020<br>HARBORSIDE 5 & 6<br>JERSEY CITY<br>METROPOLITAN<br>LOFTS |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 33<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>The Capstone at Port Imperial, West New York, NJ<br>Balance Sheet Optimization<br>BALANCE SHEET |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 34<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Continued Balance Sheet Optimization Over Time<br>DE-LEVERING, DE-RISKING AND MAXIMIZING FLEXIBILITY<br>Current Debt Portfolio & Recent Payments:<br> • Current debt comprises almost entirely (99.9%) of senior fixed-rate<br>mortgages secured by the multifamily portfolio.<br> • The Company’s total debt portfolio has a weighted average<br>interest rate of 4.5% and weighted average maturity of 3.7 years.<br> • The Company repaid the loan on 145 Front Street in May 2024.<br>Debt Strategy:<br> • Maximizing operational flexibility<br> • Actively managing debt maturity profile<br> • Leverage reduction over time<br> • Diversifying lender base and composition of debt<br> • Mitigating interest risk<br>Debt Maturity Schedule<br>AS OF MAY 31, 2024<br>BALANCE SHEET<br>Excludes the $200M Term Loan and<br>$300M Revolver capacities of the<br>facility maturing in 2028, assuming the<br>exercising of their respective 1-year<br>extension options.<br>$14<br>2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035<br>Planned Refinancings Unconsolidated Mortgages Consolidated Mortgages<br>$467<br>$63<br>$18<br>$413 $316 $343<br>$122<br>$158<br>$72 $45 |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 35<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Training session at the corporate office<br>ESG<br>ESG |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 36<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Environmental Social Governance ESG as an Amenity ESG Leader<br>+ + + =<br> • 54% reduction in Scope 1 & 2<br>emissions<br> • 24% reduction of energy<br>consumption<br> • 78% of properties green certified<br> • 65% of properties with EV<br>charging points<br> • 90% of properties with a Walk<br>Score of 70 or higher<br> • 100% of managed portfolio<br>WELL Equity Rated (1st<br>company globally to achieve<br>portfolio wide)<br> • 100% of managed portfolio<br>WELL Health-Safety Rated<br> • 53% racially/ethnically diverse<br>across all employees<br> • Included in Bloomberg<br>Gender-Equality Index<br> • Pledge 1% member<br> • 100% of leases with a<br>Sustainability Addendum<br> • Supplier Diversity Program<br> • Diverse, highly independent<br>Board of Directors<br> • Strong ethics and compliance<br>program<br> • Ethics hotline<br> • Veris Farms, hydroponic<br>farming, at select properties<br> • 30 urban beehives<br> • Health-focused spaces like<br>gyms, saunas and greens space<br> • 100% ENERGY STAR® appliances<br> • Ecobee smart thermostats,<br>saving residents 26% on<br>energy bills<br> • Nareit’s 2023 Leader in the<br>Light Award<br> • Nareit’s 2023 Bronze DEI<br> • GRESB Global Listed and<br>Regional Sector Leader<br> • Gold Green Lease Leader<br> • Great Places to Work Certified™<br> • VerisSustainability.com<br>launched on Earth Day 2024<br>Key ESG Initiatives & Achievements<br>SIGNIFICANT PROGRESS OVER THE PAST 3 YEARS<br>ESG |
| --- | ||||||
| CORPORATE PRESENTATION, MAY 31, 2024 | 37<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<br>Memberships & Awards<br>Bloomberg Gender-Equality Index<br>Climate Disclosure Project (CDP)<br>GRESB<br>S&P Corporate Sustainability Assessment<br>Science Based Targets initiative (SBTi)<br>Task Force for Climate and Financial Disclosures (TCFD)<br>UN Sustainable Development Goals (SDG)<br>UN Global Compact Communication on Progress<br>WELL-RECOGNIZED INDUSTRY LEADER<br>Leader in the Light<br>Nareit<br>Best Corporate Steward<br>US Chamber of Commerce Foundation<br>Global Listed and Regional Sector Leader<br>GRESB<br>Bronze Diversity Equity & Inclusion Recognition<br>Nareit<br>Best Transaction<br>MHN Excellence Awards<br>Best Workplaces in New York<br>Fortune<br>Best Workplaces in Real Estate<br>Fortune<br>Best Places to Work in New Jersey<br>NJBIZ<br>Leading Organization in Diversity, Equity & Inclusion<br>MAA President's & Achievement Awards<br>Best ESG Program<br>MHN Excellence Awards<br>ESG<br>CEO Action for Diversity Pledge<br>UN Global Compact<br>UN Women Empowerment Principles (WEPs)<br>USGBC<br>NMHC<br>Nareit<br>DOE Better Buildings Initiative - partners in the Better<br>Climate Challenge and Water Savings Network<br>Voluntary Best Practices<br>Major Company Awards<br>Signatory<br>Memberships |
| --- | ||||||
| COR PORATE P RESE N TATIO N, MAY 31, 2024 | 38<br>Q1 2024 Total Q4 2023 Total<br>Net Income (loss) $(4,469) $(5,746)<br>Deduct:<br>Income from discontinued operations (252) 33,489<br>Realized gains and unrealized gains on disposition of rental property and impairments, net (1,548) (43,970)<br>Real estate services income (922) (1,084)<br>Interest and other investment income (538) (232)<br>Equity in (earnings) losses of unconsolidated joint ventures (254) (260)<br>(Gain) loss on disposition of developable land (784) (7,090)<br>Loss from extinguishment of debt, net — 1,903<br>Realized gains (losses) and unrealized gains (losses) on disposition of rental property, net — 2<br>Gain on sale of unconsolidated joint venture interests (7,100) —<br>Other Income, net (255) (77)<br>Add:<br>Real estate services expenses 5,242 4,323<br>General and administrative 11,088 9,990<br>Transaction related costs 516 576<br>Depreciation and amortization 20,117 21,227<br>Interest expense 21,500 21,933<br>Land impairments and other impairments, net — 5,928<br>Net Operating Income (NOI) $42,400 $41,111<br>Information About Net Operating Income (NOI)<br>RECONCILIATION OF NET INCOME (LOSS) TO NET OPERATING INCOME (NOI)<br>Provision for income taxes 59 199<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<br>levered 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<br>the Company’s 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>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG |
| --- | ||||||
| COR PORATE P RESE N TATIO N, MAY 31, 2024 | 39<br>Company Overview | Market Overview | Portfolio Optimization | Capital Allocation | Balance Sheet | ESG<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>Net Operating Income (NOI) represents total revenues less total<br>operating expenses, as reconciled to net income above. The Company<br>making decisions and assessing unlevered performance of its property<br>types and markets as it relates to total return on assets, as opposed<br>to levered return on equity. As properties are considered for sale and<br>acquisition based on NOI estimates and projections, the Company<br>utilizes this measure to make investment decisions, as well as compare<br>the performance of its assets to those of its peers. NOI should not be<br>considered a substitute for net income, and the Company’s use of<br>NOI may not be comparable to similarly titled measures used by other<br>companies. The Company calculates NOI before any allocations to<br>non-controlling interests, as those interests do not affect the overall<br>performance of the individual assets being measured and assessed.<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 properties nationwide. Using a statistical model, a single score<br>based on a scale of 0 to 100 is assigned to each property.<br>Elite 1% ORA® is an annual ranking of the properties assessed by ORA®<br>nationally. The top 1% make it to the list, typically requiring a property score<br>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>during the years being compared. |
| --- | ||||||
| THIS PRESENTATION HAS BEEN FORMATTED FOR SCREENS. PLEASE CONSIDER THE ENVIRONMENT BEFORE PRINTING.<br>Thank You | ||||||
| --- |