Strong 2nd quarter for Veris Residential

The James in Park Ridge. (Claremont Development)

The transition of Mack-Cali Realty Corp. to Veris Residential showed strong results in the second quarter, the Jersey City-based company said.

CEO Mahbod Nia said the company is seeing the results of its efforts to reposition itself.

“Our multifamily portfolio posted another quarter of sector-leading same-store rental and (net operating income) growth, reflecting the significant steps we have taken over the past 18 months to reposition the portfolio and enhance our operational platform,” he said.

The multifamily portfolio now constitutes 83% of Veris’ NOI on a pro forma basis, up from 39% as of the end of the first quarter of 2021. Nia said approximately 1,900 multifamily units have been added to its portfolio, representing growth of over 30% during this time.

“We continued to make progress in our strategic transformation, with the acquisition of the James now complete and binding agreements in place to dispose of two additional non-core assets,” he said.

Veris acquired the James, a Class A, 240-unit property located in Park Ridge, for $129.6 million.

Among other second-quarter highlights listed by the company:

  • Net income of 25 cents per share;
  • The 6,691-unit operating multifamily portfolio and same-store 5,825-unit operating multifamily portfolio were 97.1% and 96.8% occupied, respectively, as of June 30;
  • Same-store NOI for the operating multifamily portfolio increased year-over-year and quarter-over-quarter by 28% and 8.2%, respectively, reflecting higher occupancy, lower concessions and increasing market rents;
  • Second quarter 2022 multifamily blended net rental growth rate of 21%;
  • Strong leasing momentum continues at Haus25, a 750-unit property located in Jersey City, which was 66% leased as of July 31, with 494 leases signed since leasing commenced April 6;
  • The Hyatt Hotel and 23 Main St., the company’s last suburban office property, are under binding contracts for a total sales price of $132.25 million, with dispositions expected to generate $19.6 million of net proceeds to the company;
  • Released 2021 ESG report, including commitment to 50% emissions reduction as validated by the Science Based Targets initiative and achieved independent sector-leading ESG rankings.