Veris Residential (VRE) Q3 2024 earnings summary

Executive summary

• Core FFO per share for Q3 2024 was $0.17, a 42% increase from $0.12 in Q3 2023, with year-to-date Core FFO up 17% and strong NOI growth driven by market rent increases and cost controls.

• Portfolio maintained 95.1% occupancy and 55% retention, with blended net rental growth of 4.6% for the quarter and 4.8% year-to-date.

• Recognized for ESG leadership, earning a third consecutive 5-star GRESB rating, a NAREIT diversity award, and named 2024 Regional Listed Sector Leader by GRESB.

• Completed the sale of the last non-strategic office asset, finalizing the strategic shift to a multifamily focus.

• Operating profit for Q3 2024 was $10.8 million, up from a loss of $0.7 million in Q3 2023.

Financial highlights

• Net loss available to common shareholders for Q3 2024 was $0.10 per share, improved from $0.60 in Q3 2023.

• Same-store NOI growth was 8.4% for the quarter and 6.7% year-to-date, with normalized NOI margin at 66.8% year-to-date.

• Total revenues for Q3 2024 were $75.8 million, up 4.0% year-over-year, and $68.2 million reported in another filing.

• Interest expense decreased 9.3% year-over-year in Q3 2024 due to mortgage payoffs.

• Dividend per diluted share increased to $0.07 in Q3 2024.

Outlook and guidance

• Raised 2024 Core FFO per share guidance to $0.59–$0.60, up over 13% at the low end from prior guidance, reflecting improved NOI and lower interest expense.

• Same-store NOI growth guidance increased to 5.4%–6.2%, with revenue growth range at 4.6%–5% and expense expectations improved to 2.5%–3%.

• Q4 Core FFO expected to be lower than Q3 due to seasonality and absence of one-time benefits.

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