Veris Residential (VRE) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in Q2 2024, with continued progress on a value creation plan focused on multifamily rental properties in the Northeast.

• As of June 30, 2024, owned or had interests in 22 multifamily properties and several non-core assets, with operations managed as a single reportable segment.

• Completed the sale of the last non-strategic office asset in Q1 2024, further focusing on multifamily operations.

• Portfolio occupancy reached 95.1% as of June 30, with 5% blended net rental growth and 5.9% NOI growth in H1 2024.

• Focus remains on organic value creation, operational excellence, and balance sheet optimization.

Financial highlights

• Q2 2024 net income was $2.7 million, or $0.03 per diluted share, compared to a net loss of $30.1 million or $(0.30) per share in Q2 2023.

• Q2 2024 total property revenue increased 5.0% year-over-year to $74.7 million; six-month revenue up 6.9%.

• Core FFO per share was $0.18, up from $0.14 last quarter and $0.16 in Q2 2023.

• Funds from operations (FFO) for Q2 2024 were $25.7 million, compared to $(0.3) million in Q2 2023.

• Paid a dividend of $0.06 per share, a 14.3% sequential increase.

Outlook and guidance

• Core FFO guidance raised by 4% to $0.52–$0.56 per share, reflecting non-recurring income and tax appeal benefits.

• Same-store expense growth guidance revised to 4.5%–5.5% due to favorable insurance and tax trends.

• Same-store NOI growth guidance bottom end increased to 3.0%–5.0%.

• Management expects to meet liquidity needs through cash, operating cash flow, property sales, and credit facility draws.