On July 24, 2024, Veris Residential Inc (VRE, Financial) released its 8-K filing for the second quarter of 2024. Veris Residential Inc is a fully-integrated, self-administered and self-managed real estate investment trust (REIT) that owns and operates a portfolio of multifamily rental properties and Class A office properties, primarily located in the Northeast.
Performance Overview
Veris Residential Inc (VRE, Financial) reported a net income of $0.03 per diluted share for Q2 2024, a significant improvement from a net loss of $0.30 per diluted share in Q2 2023. This performance exceeded analyst estimates, which projected a loss of $0.09 per share. The company's revenue for the quarter was $74.75 million, surpassing the estimated $66.99 million.
Key Financial Achievements
Veris Residential Inc (VRE, Financial) achieved several notable financial milestones during the quarter:
- Core FFO per diluted share increased to $0.18 from $0.16 in Q2 2023.
- Core AFFO per diluted share rose to $0.21 from $0.19 in Q2 2023.
- Same Store NOI growth of 7.9% year-over-year and 3.1% quarter-over-quarter, normalized for the impact of successful real estate tax appeals recognized in the prior year.
- Expanded occupancy by 100 basis points sequentially to 95.1%.
- Completed the sales of three assets for $82 million, bringing total gross proceeds from non-strategic asset sales this year to over $200 million.
- Secured a new $500 million revolver and delayed-draw term loan with a three-plus-one-year term.
- Repaid two mortgages totaling approximately $220 million using cash on hand and $55 million of the aforementioned term loan.
Income Statement Highlights
| Three Months Ended June 30 | 2024 | 2023 |
|---|---|---|
| Net Income (Loss) per Diluted Share | $0.03 | $(0.30) |
| Core FFO per Diluted Share | $0.18 | $0.16 |
| Core AFFO per Diluted Share | $0.21 | $0.19 |
| Dividend per Diluted Share | $0.06 | $0.0525 |
Balance Sheet and Cash Flow
Veris Residential Inc (VRE, Financial) reported a weighted average interest rate of 4.5% on its debt portfolio, with a weighted average maturity of 3.1 years. The company’s net debt decreased to $1.65 billion from $1.71 billion in the previous quarter. The interest coverage ratio improved to 1.7x from 1.5x.
Operational Highlights
Same Store multifamily blended net rental growth rate was 5.4% for the quarter and 5.0% year-to-date. The average rent per home increased to $3,923 from $3,899 in the previous quarter. The company also reported a 66% reduction in Scope 1 & 2 emissions and a 22% reduction in Scope 3 emissions compared to 2019 baseline measurements.
Guidance and Outlook
Veris Residential Inc (VRE, Financial) raised its Core FFO guidance range by approximately 4%, or $0.02, and tightened its Same Store NOI guidance range by 50 basis points. The company now expects Same Store NOI growth between 3.0% and 5.0% for 2024.
"We are pleased to report another quarter of strong operational and financial results, leading to our decision to raise guidance once again," said Mahbod Nia, Chief Executive Officer. "Looking ahead, we remain well-positioned to execute our three-pronged approach to value creation as we seek to maximize value on behalf of our shareholders."
For more details, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Veris Residential Inc for further details.
