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Veris Residential, Inc. Reports Third Quarter 2024 Results

31.10.2024 by admin

Raises Full-Year 2024 Guidance

JERSEY CITY, N.J., Oct. 30, 2024 /PRNewswire/ — Veris Residential, Inc. VRE (the “Company”), a forward-thinking, environmentally and socially conscious multifamily REIT, today reported results for the third quarter 2024.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net Income (Loss) per Diluted Share	$(0.10)	$(0.60)	$(0.12)	$(1.16)
Core FFO per Diluted Share	$0.17	$0.12	$0.49	$0.42
Core AFFO per Diluted Share	$0.19	$0.15	$0.58	$0.48
Dividend per Diluted Share	$0.07	$0.05	$0.18	$0.05

YEAR-TO-DATE HIGHLIGHTS

Same Store multifamily Blended Net Rental growth rate of 4.6% for the quarter and 4.8% year to date.
Year-over-year Normalized Same Store NOI growth of 8.4% for the third quarter and 8.0% year to date.
Year-to-date Normalized Same Store NOI margin of 66.8%, a 130 basis point improvement from the same period last year.
Reduced net debt by approximately $227 million since September 30, 2023, and refinanced $531 million of mortgage debt, leaving no remaining consolidated debt maturities until 2026.
Raised guidance as a result of the favorable resolutions of certain non-controllable expenses and better-than-expected revenue growth.
- Core FFO guidance raised by over 13% at the low end and 7% at the high end, resulting in a revised range of $0.59 – $0.60.
- Same Store NOI guidance raised by 240 basis points at the low end and 120 basis points at the high end, resulting in a revised range of 5.4% – 6.2%.
Named 2024 Regional Listed Sector Leader by GRESB for distinguished ESG leadership and performance, with the highest listed residential score in the U.S. and the third-best listed residential score worldwide.

	September 30, 2024	June 30, 2024	Change
Same Store Units	7,621	7,621	— %
Same Store Occupancy	95.1 %	95.1 %	— %
Same Store Blended Rental Growth Rate (Quarter)	4.6 %	5.4 %	(0.8) %
Average Rent per Home	$3,980	$3,923	1.5 %

Mahbod Nia, Chief Executive Officer, commented, “Our portfolio continues to exhibit strong revenue growth, underpinned by robust demand for our premium properties and limited new supply in our key markets. I am extremely proud of the work our teams have done to mitigate controllable expense growth during a period of elevated inflation. These efforts, combined with a better than expected resolution of our non-controllable expenses last quarter, drove a substantial 17% year-over-year increase in Core FFO per share during the first nine months of the year, further improving our operating margin to 66.8% and allowing us to once again raise guidance.”

SAME STORE PORTFOLIO PERFORMANCE

The following table shows Same Store performance:

($ in 000s)	Three Months Ended September 30,			Nine Months Ended September 30,
	2024	2023	%	2024	2023	%
Total Property Revenue	$75,843	$72,948	4.0 %	$224,680	$212,227	5.9 %
Controllable Expenses	13,452	13,543	(0.7) %	39,499	38,421	2.8 %
Non-Controllable Expenses	10,572	11,596	(8.8) %	35,023	33,130	5.7 %
Total Property Expenses	24,024	25,139	(4.4) %	74,522	71,551	4.2 %
Same Store NOI	$51,819	$47,809	8.4 %	$150,158	$140,676	6.7 %
Less: Real Estate Tax Adjustments	—	20		—	1,689
Normalized Same Store NOI	$51,819	$47,789	8.4 %	$150,158	$138,987	8.0 %

In the third quarter, the Company renewed its property insurance program and finalized property taxes for its Jersey City assets, reducing Same Store non-controllable expenses by 8.8% for the quarter.

FINANCE AND LIQUIDITY

Approximately all of the Company’s debt is hedged or fixed. The Company’s total debt portfolio has a weighted average effective interest rate of 4.96% and weighted average maturity of 3.3 years.

Balance Sheet Metric ($ in 000s)	September 30, 2024	June 30, 2024
Weighted Average Interest Rate	4.96 %	4.51 %
Weighted Average Years to Maturity	3.3	3.1
Interest Coverage Ratio	1.7x	1.7x
Net Debt	$1,645,447	$1,646,023
TTM EBITDA	$140,682	$139,654
TTM Net Debt to EBITDA	11.7x	11.8x

During the third quarter, the Company repaid the $43 million mortgage on Signature Place and the $265 million mortgage on Liberty Towers using a combination of cash on hand, $145 million of additional draws on the Term Loan and a $157 million draw on the Secured Revolving Credit Facility. At quarter end, the Company had liquidity of approximately $170 million.

The $200 million Term Loan balance and $150 million of the Revolver were hedged with interest rate caps at a strike rate of 3.5%. The nine-month interest rate cap on the Revolver has not been designated as an effective accounting hedge to allow for flexibility should the Company repay a portion of the Revolver balance before the interest rate cap expires.

At the beginning of the third quarter, the Company successfully met Sustainable KPI provisions that resulted in a 5-basis-point spread reduction for all borrowings on the Term Loan and Revolver.

ESG

The Company has again been recognized by global and national real estate organizations for its accomplishments in ESG and DEI. Most significantly, GRESB designated the Company as a Regional Listed Sector Leader in the Residential category, a recognition highlighting the top GRESB assessment performers in the Americas. The Company achieved the highest listed residential score in the U.S. and third-best listed residential score worldwide, earning its third-consecutive 5 Star rating.

The Company was also recognized by Nareit with the Mid Cap Diversity Impact Award for its social responsibility policies.

DIVIDEND

The Company paid a dividend of $0.07 per share on October 16, 2024, for shareholders of record as of September 30, 2024.

GUIDANCE

The Company has raised its 2024 guidance ranges to reflect the favorable outcome of certain non-controllable expenses that were finalized in the third quarter and continued multifamily outperformance.

	Revised Guidance			Previous Guidance (July)
2024 Guidance Ranges	Low		High	Low		High
Same Store Revenue Growth	4.6 %	—	5.0 %	4.0 %	—	5.0 %
Same Store Expense Growth	2.5 %	—	3.0 %	4.5 %	—	5.5 %
Same Store NOI Growth	5.4 %	—	6.2 %	3.0 %	—	5.0 %

Core FFO per Share Guidance	Low		High
Net Loss per Share	$(0.15)	—	$(0.14)
Other FFO adjustments per share	$(0.16)	—	$(0.16)
Depreciation per Share	$0.90	—	$0.90
Core FFO per Share	$0.59	—	$0.60

CONFERENCE CALL/SUPPLEMENTAL INFORMATION

An earnings conference call with management is scheduled for Thursday, October 31, 2024, at 8:30 a.m. Eastern Time and will be broadcast live via the Internet at: http://investors.verisresidential.com.

The live conference call is also accessible by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) and requesting the Veris Residential third quarter 2024 earnings conference call.

The conference call will be rebroadcast on Veris Residential, Inc.’s website at:
http://investors.verisresidential.com beginning at 8:30 a.m. Eastern Time on Thursday, October 31, 2024.

A replay of the call will also be accessible Thursday, October 31, 2024, through Sunday, December 1, 2024, by calling (844) 512-2921 (domestic) or +1(412) 317-6671 (international) and using the passcode, 13747452.

Copies of Veris Residential, Inc.’s third quarter 2024 Form 10-Q and third quarter 2024 Supplemental Operating and Financial Data are available on Veris Residential, Inc.’s website under Financial Results.

In addition, once filed, these items will be available upon request from:
Veris Residential, Inc. Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311

ABOUT THE COMPANY

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The Company is guided by an experienced management team and Board of Directors, underpinned by leading corporate governance principles; a best-in-class, sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.

For additional information on Veris Residential, Inc. and our properties available for lease, please visit http:// www.verisresidential.com/.

The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the “10-Q”) filed by the Company for the same period with the Securities and Exchange Commission (the “SEC”) and all of the Company’s other public filings with the SEC (the “Public Filings”). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings, available at https://investors.verisresidential.com/financial-information.

We consider portions of this information, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such 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,” “projected,” “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 may not 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. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Disclosure Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K, as may be supplemented or amended by the Company’s Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.

Investors		Media
Anna Malhari		Amanda Shpiner/Grace Cartwright
Chief Operating Officer		Gasthalter & Co.
investors@verisresidential.com		veris-residential@gasthalter.com

Additional details in Company Information.

Consolidated Balance Sheet (in thousands) (unaudited)

	September 30, 2024	December 31, 2023
ASSETS
Rental property
Land and leasehold interests	$462,531	$474,499
Buildings and improvements	2,635,580	2,782,468
Tenant improvements	12,946	30,908
Furniture, fixtures and equipment	106,901	103,613
	3,217,958	3,391,488
Less – accumulated depreciation and amortization	(411,537)	(443,781)
	2,806,421	2,947,707
Real estate held for sale, net	—	58,608
Net investment in rental property	2,806,421	3,006,315
Cash and cash equivalents	12,782	28,007
Restricted cash	19,687	26,572
Investments in unconsolidated joint ventures	113,595	117,954
Unbilled rents receivable, net	2,204	5,500
Deferred charges and other assets, net	49,110	53,956
Accounts receivable	2,041	2,742
Total Assets	$3,005,840	$3,241,046
LIABILITIES & EQUITY
Revolving credit facility and term loans	353,580	—
Mortgages, loans payable and other obligations, net	1,324,336	1,853,897
Dividends and distributions payable	7,467	5,540
Accounts payable, accrued expenses and other liabilities	45,509	55,492
Rents received in advance and security deposits	10,993	14,985
Accrued interest payable	4,816	6,580
Total Liabilities	1,746,701	1,936,494
Redeemable noncontrolling interests	9,294	24,999
Total Stockholders’ Equity	1,116,337	1,137,478
Noncontrolling interests in subsidiaries:
Operating Partnership	104,092	107,206
Consolidated joint ventures	31,811	34,869
Total Noncontrolling Interests in Subsidiaries	$135,903	$142,075
Total Equity	$1,249,845	$1,279,553
Total Liabilities and Equity	$3,005,840	$3,241,046

Consolidated Statement of Operations (In thousands, except per share amounts) (unaudited) ¹

	Three Months Ended September 30,		Nine Months Ended September 30,
REVENUES	2024	2023	2024	2023
Revenue from leases	$62,227	$59,935	$183,786	$174,223
Management fees	794	1,230	2,587	2,785
Parking income	3,903	3,947	11,570	11,673
Other income	1,251	1,361	5,048	4,596
Total revenues	68,175	66,473	202,991	193,277
EXPENSES
Real estate taxes	8,572	9,301	27,251	25,158
Utilities	2,129	2,039	6,196	5,863
Operating services	10,156	13,583	35,354	37,195
Property management	3,762	3,533	13,370	9,864
General and administrative	8,956	14,604	29,019	34,460
Transaction related costs	—	2,704	1,406	7,051
Depreciation and amortization	21,159	21,390	61,592	65,008
Land and other impairments, net	2,619	—	2,619	3,396
Total expenses	57,353	67,154	176,807	187,995
OTHER (EXPENSE) INCOME
Interest expense	(21,507)	(23,715)	(64,683)	(67,422)
Interest cost of mandatorily redeemable noncontrolling interests	—	(36,392)	—	(49,782)
Interest and other investment income	181	1,240	2,255	5,283
Equity in earnings (loss) of unconsolidated joint ventures	(268)	210	2,919	2,843
Gain (loss) on disposition of developable land	—	—	11,515	(23)
Gain on sale of unconsolidated joint venture interests	—	—	7,100	—
Gain (loss) from extinguishment of debt, net	8	(1,046)	(777)	(3,702)
Other income (expense), net	(310)	(57)	(305)	2,794
Total other (expense) income, net	(21,896)	(59,760)	(41,976)	(110,009)
Loss from continuing operations before income tax expense	(11,074)	(60,441)	(15,792)	(104,727)
Provision for income taxes	(39)	(293)	(274)	(293)
Loss from continuing operations after income tax expense	(11,113)	(60,734)	(16,066)	(105,020)
Income from discontinued operations	206	61	1,877	691
Realized gains (losses) and unrealized gains (losses) on disposition of rental property and impairments, net	—	423	1,548	(2,286)
Total discontinued operations, net	206	484	3,425	(1,595)
Net loss	(10,907)	(60,250)	(12,641)	(106,615)
Noncontrolling interest in consolidated joint ventures	391	592	1,429	1,815
Noncontrolling interests in Operating Partnership of income from continuing operations	923	5,243	1,293	9,785
Noncontrolling interests in Operating Partnership in discontinued operations	(18)	(42)	(295)	134
Redeemable noncontrolling interests	(81)	(350)	(459)	(7,333)
Net loss available to common shareholders	$(9,692)	$(54,807)	$(10,673)	$(102,214)
Basic earnings per common share:
Net loss available to common shareholders	$(0.10)	$(0.60)	$(0.12)	$(1.16)
Diluted earnings per common share:
Net loss available to common shareholders	$(0.10)	$(0.60)	$(0.12)	$(1.16)
Basic weighted average shares outstanding	92,903	92,177	92,615	91,762
Diluted weighted average shares outstanding⁽⁶⁾	101,587	100,925	101,304	100,770

¹ For more details see Reconciliation to Net Income (Loss) to NOI.

FFO, Core FFO and Core AFFO (in thousands, except per share/unit amounts)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Net loss available to common shareholders	$ (9,692)	$ (54,807)	$ (10,673)	$ (102,214)
Add (deduct): Noncontrolling interests in Operating Partnership	(923)	(5,243)	(1,293)	(9,785)
Noncontrolling interests in discontinued operations	18	42	295	(134)
Real estate-related depreciation and amortization on continuing operations⁽¹⁾	23,401	23,746	68,547	72,087
Real estate-related depreciation and amortization on discontinued operations	—	1,926	668	10,870
Continuing operations: Gain on sale from unconsolidated joint ventures	—	—	(7,100)	—
Discontinued operations: Realized (gains) losses and unrealized (gains) losses on disposition of rental property, net	—	(423)	(1,548)	2,286
FFO⁽²⁾	$ 12,804	$ (34,759)	$ 48,896	$ (26,890)

Add/(Deduct):
Gain (Loss) from extinguishment of debt, net	(8)	1,046	777	3,714
Land and other impairments	2,619	—	2,619	3,396
(Gain) Loss on disposition of developable land	—	—	(11,515)	23
Rebranding and Severance/Compensation related costs (G&A)	206	5,904	2,079	7,869
Rebranding and Severance/Compensation related costs (Property Management)	26	288	2,390	288
Severance/Compensation related costs (Operating Expenses)	—	649	—	649
Rockpoint buyout premium	—	34,775	—	34,775
Redemption value adjustments to mandatorily redeemable noncontrolling interests	—	—	—	7,641
Amortization of derivative premium⁽⁷⁾	1,303	999	3,093	3,751
Derivative mark to market adjustment	16	—	16	—
Transaction related costs	—	2,704	1,406	7,051
Core FFO	$ 16,966	$ 11,606	$ 49,761	$ 42,267

Add (Deduct) Non-Cash Items:
Straight-line rent adjustments⁽³⁾	(341)	781	(683)	421
Amortization of market lease intangibles, net	(9)	—	(25)	(79)
Amortization of lease inducements	—	37	7	52
Amortization of stock compensation	3,005	3,234	9,979	9,725
Non-real estate depreciation and amortization	165	228	594	813
Amortization of deferred financing costs	1,675	1,353	4,486	3,185
Deduct:
Non-incremental revenue generating capital expenditures:
Building improvements	(2,288)	(2,247)	(4,890)	(6,678)
Tenant improvements and leasing commissions⁽⁴⁾	(55)	(125)	(142)	(1,106)
Core AFFO⁽²⁾	$ 19,118	$ 14,867	$ 59,087	$ 48,600

Funds from Operations per share/unit-diluted	$0.13	$(0.35)	$0.48	$(0.27)
Core Funds from Operations per share/unit-diluted	$0.17	$0.12	$0.49	$0.42
Core Adjusted Funds from Operations per share/unit-diluted	$0.19	$0.15	$0.58	$0.48
Dividends declared per common share	$0.07	$0.05	$0.1825	$0.05

See Non-GAAP Financial Definitions.

See Consolidated Statements of Operations.

Adjusted EBITDA ($ in thousands) (unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Core FFO (calculated on a previous page)	$ 16,966	$ 11,606	$ 49,761	$ 42,267
Deduct:
Equity in (earnings) loss of unconsolidated joint ventures	268	(210)	(3,181)	(2,843)
Equity in earnings share of depreciation and amortization	(2,407)	(2,584)	(7,549)	(7,740)
Add-back:
Interest expense	21,507	23,715	64,683	68,244
Amortization of derivative premium	(1,303)	(999)	(3,093)	(3,751)
Derivative mark to market adjustment	(16)	—	(16)	—
Recurring joint venture distributions	2,374	2,896	8,252	8,982
Noncontrolling interests in consolidated joint ventures	(391)	(592)	(1,429)	(1,815)
Interest cost for mandatorily redeemable noncontrolling interests	—	1,617	—	7,366
Redeemable noncontrolling interests	81	350	459	7,333
Income tax expense	39	293	297	293
Adjusted EBITDA	$ 37,118	$ 36,092	$ 108,184	$ 118,336

See Consolidated Statements of Operations and Non-GAAP Financial Footnotes.

See Non-GAAP Financial Definitions.

Components of Net Asset Value ($ in thousands)

Real Estate Portfolio			Other Assets

Operating Multifamily NOI¹	Total	At Share	Cash and Cash Equivalents	$12,782
New Jersey Waterfront	$173,720	$147,629	Restricted Cash	19,687
Massachusetts	26,032	26,032	Other Assets	53,355
Other	30,712	22,651	Subtotal Other Assets	$85,824
Total Multifamily NOI	$230,464	$196,312
Commercial NOI²	3,524	2,851	Liabilities and Other Considerations
Total NOI	$233,988	$199,163
			Operating – Consolidated Debt at Share	$1,262,734
Non-Strategic Assets			Operating – Unconsolidated Debt at Share	295,863
			Other Liabilities	68,785
Estimated Land Value³		$187,311	Revolving Credit Facility⁴	157,000
Total Non-Strategic Assets		$187,311	Term Loan⁴	200,000
			Preferred Units	9,294
			Subtotal Liabilities and Other Considerations	$1,993,676

			Outstanding Shares⁵

			Diluted Weighted Average Shares Outstanding for 3Q 2024 (in 000s)	102,312

¹ See Multifamily Operating Portfolio for more details. The Real Estate Portfolio table is reflective of the quarterly NOI annualized.

² See Commercial Assets and Developable Land for more details.

³ Based off 4,139 potential units, see Commercial Assets and Developable Land for more details.

⁴ On April 22, 2024, the Company secured a $500 million facility comprised of a $300 million revolver and $200 million delayed-draw term loan. The facility has a three-year term with a one-year extension option and a $200 million accordion feature. As of September 30, 2024. the Term Loan was fully drawn and hedged at a strike rate of 3.5%, expiring in July 2026. The Revolver was $157 million drawn, $150 million of the Revolver is hedged at a strike rate of 3.5%, expiring in June 2025.

⁵ Outstanding shares for the quarter ended September 30, 2024 is comprised of the following (in 000s): 92,903 weighted average common shares outstanding, 8,684 weighted average Operating Partnership common and vested LTIP units outstanding, and 725 shares representing the dilutive effect of stock-based compensation awards.

See Non-GAAP Financial Definitions.

Multifamily Operating Portfolio (in thousands, except Revenue per home)

		Operating Highlights

			Percentage Occupied		Average Revenue per Home		NOI		Debt Balance
	Ownership	Apartments	3Q 2024	2Q 2024	3Q 2024	2Q 2024	3Q 2024	2Q 2024	Debt Balance
NJ Waterfront
Haus25	100.0 %	750	95.8 %	95.3 %	$4,950	$4,842	$7,931	$7,337	$343,061
Liberty Towers*	100.0 %	648	91.7 %	94.9 %	4,237	4,206	5,506	4,833	—
BLVD 401	74.3 %	311	94.7 %	95.4 %	4,304	4,186	2,592	2,236	116,016
BLVD 425	74.3 %	412	95.2 %	94.6 %	4,147	4,052	3,413	3,161	131,000
BLVD 475	100.0 %	523	96.8 %	95.5 %	4,241	4,122	4,319	4,474	165,000
Soho Lofts*	100.0 %	377	95.6 %	96.6 %	4,832	4,731	3,375	3,067	—
Urby Harborside	85.0 %	762	96.5 %	96.7 %	4,094	4,051	5,866	5,291	183,362
RiverHouse 9	100.0 %	313	96.2 %	96.6 %	4,392	4,275	2,661	2,565	110,000
RiverHouse 11	100.0 %	295	96.3 %	96.7 %	4,363	4,319	2,500	2,328	100,000
RiverTrace	22.5 %	316	95.3 %	94.7 %	3,829	3,764	2,113	2,176	82,000
Capstone	40.0 %	360	94.4 %	95.9 %	4,471	4,405	3,154	3,137	135,000
NJ Waterfront Subtotal	85.0 %	5,067	95.3 %	95.7 %	$4,371	$4,291	$43,430	$40,605	$1,365,439
Massachusetts
Portside at East Pier	100.0 %	180	95.9 %	95.5 %	$3,269	$3,208	$1,245	$1,198	$56,500
Portside 2 at East Pier	100.0 %	296	94.8 %	96.7 %	3,446	3,395	2,108	2,117	95,827
145 Front at City Square*	100.0 %	365	95.1 %	93.0 %	2,475	2,535	1,467	1,540	—
The Emery	100.0 %	326	94.0 %	94.2 %	2,840	2,801	1,688	1,530	71,024
Massachusetts Subtotal	100.0 %	1,167	94.8 %	94.7 %	$2,946	$2,931	$6,508	$6,385	$223,351
Other
The Upton	100.0 %	193	88.8 %	87.7 %	$4,525	$4,637	$1,392	$1,320	$75,000
The James*	100.0 %	240	93.8 %	94.5 %	3,148	3,113	1,535	1,365	—
Signature Place*	100.0 %	197	96.1 %	93.7 %	3,201	3,210	1,022	978	—
Quarry Place at Tuckahoe	100.0 %	108	98.1 %	97.1 %	4,293	4,436	723	815	41,000
Riverpark at Harrison	45.0 %	141	97.2 %	93.6 %	2,823	2,923	570	526	30,192
Metropolitan at 40 Park¹	25.0 %	130	95.6 %	92.8 %	3,722	3,750	731	735	34,100
Station House	50.0 %	378	94.7 %	93.4 %	3,017	2,851	1,705	1,627	87,883
Other Subtotal	73.8 %	1,387	94.5 %	93.1 %	$3,421	$3,411	$7,678	$7,366	$268,175
Operating Portfolio²³	85.2 %	7,621	95.1 %	95.1 %	$3,980	$3,923	$57,616	$54,356	$1,856,965

¹ As of September 30, 2024, Priority Capital included Metropolitan at $23.3 million (Prudential).

² Rental revenue associated with retail leases is included in the NOI disclosure above. Total sf outlined on Annex 6: Multifamily Operating Portfolio excludes approximately 189,367 sqft of ground floor retail, of which 142,739 sf was leased as of September 30, 2024.

³ See Unconsolidated Joint Ventures and Annex 6: Multifamily Operating Portfolio for more details.

*Properties that are currently in the collateral pool for the Term Loan and Revolving Credit Facility.

See Non-GAAP Financial Definitions.

Commercial Assets and Developable Land ($ in thousands)
Commercial	Location	Ownership	Rentable SF	Percentage Leased 3Q 2024	Percentage Leased 2Q 2024	NOI 3Q 2024	NOI 2Q 2024	Debt Balance
Port Imperial Garage South	Weehawken, NJ	70.0 %	320,426	N/A	N/A	$590	$591	$31,237
Port Imperial Garage North	Weehawken, NJ	100.0 %	304,617	N/A	N/A	12	(1)	—
Port Imperial Retail South	Weehawken, NJ	70.0 %	18,064	92.0 %	92.0 %	115	77	—
Port Imperial Retail North	Weehawken, NJ	100.0 %	8,400	100.0 %	100.0 %	46	127	—
Riverwalk at Port Imperial	West New York, NJ	100.0 %	29,923	80.0 %	80.0 %	164	111	—
Shops at 40 Park¹	Morristown, NJ	25.0 %	50,973	69.0 %	69.0 %	(46)	656	6,010
Commercial Total		80.9 %	732,403	78.4 %	78.4 %	$881	$1,561	$37,247

Developable Land Parcel Units²
NJ Waterfront	2,351
Massachusetts	849
Other	939
Developable Land Parcel Units Total	4,139

¹ The Company sold this joint venture on October 22, 2024.

² The Company has an additional 13,775 SF of developable retail space within land developments that is not represented in this table.

See Non-GAAP Financial Definitions.

Same Store Market Information¹

Sequential Quarter Comparison (NOI in thousands)

		NOI at Share			Occupancy			Blended Lease Rate²
	Apartments	3Q 2024	2Q 2024	Change	3Q 2024	2Q 2024	Change	3Q 2024	2Q 2024	Change
New Jersey Waterfront	5,067	$38,836	$36,180	7.3 %	95.3 %	95.7 %	(0.4) %	6.6 %	6.0 %	0.6 %
Massachusetts	1,167	6,765	6,636	1.9 %	94.8 %	94.7 %	0.1 %	0.7 %	5.0 %	(4.3) %
Other³	1,387	6,218	6,135	1.4 %	94.5 %	93.1 %	1.4 %	0.5 %	3.0 %	(2.5) %
Total	7,621	$51,819	$48,951	5.9 %	95.1 %	95.1 %	— %	4.6 %	5.4 %	(0.8) %

Year-over-Year Third Quarter Comparison (NOI in thousands)

		NOI at Share			Occupancy			Blended Lease Rate²
	Apartments	3Q 2024	3Q 2023	Change	3Q 2024	3Q 2023	Change	3Q 2024	3Q 2023	Change
New Jersey Waterfront	5,067	$38,836	$34,591	12.3 %	95.3 %	95.9 %	(0.6) %	6.6 %	10.3 %	(3.7) %
Massachusetts	1,167	6,765	6,822	(0.8) %	94.8 %	94.1 %	0.7 %	0.7 %	7.3 %	(6.6) %
Other³	1,387	6,218	6,376	(2.5) %	94.5 %	94.2 %	0.3 %	0.5 %	8.3 %	(7.8) %
Total	7,621	$51,819	$47,789	8.4 %	95.1 %	95.3 %	(0.2) %	4.6 %	9.6 %	(5.0) %

Average Revenue per Home (based on 7,621 units)

	Apartments	3Q 2024	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
New Jersey Waterfront	5,067	$4,371	$4,291	$4,274	$4,219	$4,084	$4,048
Massachusetts	1,167	2,946	2,931	2,893	2,925	2,918	2,836
Other³	1,387	3,421	3,411	3,374	3,307	3,350	3,356
Total	7,621	$3,980	$3,923	$3,899	$3,855	$3,772	$3,736

¹ All statistics are based off the current 7,621 Same Store pool.

² Blended lease rates exclude properties not managed by Veris.

³ “Other” includes properties in Suburban NJ, New York, and Washington, DC. See Multifamily Operating Portfolio for breakout.

See Non-GAAP Financial Definitions.

Same Store Performance ($ in thousands)

Multifamily Same Store¹
	Three Months Ended September 30,				Nine Months Ended September 30,				Sequential
	2024	2023	Change	%	2024	2023	Change	%	3Q24	2Q24	Change	%
Apartment Rental Income	$68,830	$66,061	$2,769	4.2 %	$203,111	$192,212	$10,899	5.7 %	$68,830	$67,584	$1,246	1.8 %
Parking/Other Income	7,013	6,887	126	1.8 %	21,569	20,015	1,554	7.8 %	7,013	7,161	(148)	(2.1) %
Total Property Revenues²	$75,843	$72,948	$2,895	4.0 %	$224,680	$212,227	$12,453	5.9 %	$75,843	$74,745	$1,098	1.5 %
Marketing & Administration	2,447	2,520	(73)	(2.9) %	7,120	7,188	(68)	(0.9) %	2,447	2,535	(88)	(3.5) %
Utilities	2,503	2,415	88	3.6 %	7,265	6,894	371	5.4 %	2,503	2,188	315	14.4 %
Payroll	4,399	4,666	(267)	(5.7) %	13,012	13,297	(285)	(2.1) %	4,399	4,315	84	1.9 %
Repairs & Maintenance	4,103	3,942	161	4.1 %	12,102	11,042	1,060	9.6 %	4,103	4,386	(283)	(6.5) %
Controllable Expenses	$13,452	$13,543	$(91)	(0.7) %	$39,499	$38,421	$1,078	2.8 %	$13,452	$13,424	$28	0.2 %
Other Fixed Fees	755	763	(8)	(1.0) %	2,188	2,216	(28)	(1.3) %	755	712	43	6.0 %
Insurance	703	1,163	(460)	(39.6) %	4,264	4,724	(460)	(9.7) %	703	1,781	(1,078)	(60.5) %
Real Estate Taxes	9,114	9,670	(556)	(5.7) %	28,571	26,190	2,381	9.1 %	9,114	9,877	(763)	(7.7) %
Non-Controllable Expenses	$10,572	$11,596	$(1,024)	(8.8) %	$35,023	$33,130	$1,893	5.7 %	$10,572	$12,370	$(1,798)	(14.5) %
Total Property Expenses	$24,024	$25,139	$(1,115)	(4.4) %	$74,522	$71,551	$2,971	4.2 %	$24,024	$25,794	$(1,770)	(6.9) %
Same Store GAAP NOI	$51,819	$47,809	$4,010	8.4 %	$150,158	$140,676	$9,482	6.7 %	$51,819	$48,951	$2,868	5.9 %
Real Estate Tax Adjustments³	—	20	(20)		—	1,689	(1,689)		—	—	—
Normalized Same Store NOI	$51,819	$47,789	$4,030	8.4 %	$150,158	$138,987	$11,171	8.0 %	$51,819	$48,951	$2,868	5.9 %

Normalized SS NOI Margin	68.3 %	65.5 %	2.8 %		66.8 %	65.5 %	1.3 %		68.3 %	65.5 %	2.8 %
Total Units	7,621	7,621			7,621	7,621			7,621	7,621
% Ownership	85.2 %	85.2 %			85.2 %	85.2 %			85.2 %	85.2 %
% Occupied – Quarter End	95.1 %	95.3 %	(0.2) %		95.1 %	95.3 %	(0.2) %		95.1 %	95.1 %	— %

¹ Values represent the Company’s pro rata ownership of the operating portfolio. The James and Haus25 were added to the Same Store pool in 1Q 2024.

² Revenues reported based on Generally Accepted Accounting Principals or “GAAP”.

³ Represents tax settlements and final tax rate adjustments recognized that are applicable to prior periods.

Debt Profile ($ in thousands)

	Lender	Effective Interest Rate⁽¹⁾	September 30, 2024	December 31, 2023	Date of Maturity
Repaid Permanent Loans in 2024
Soho Lofts⁽²⁾	Flagstar Bank	3.77 %	—	158,777	07/01/29
145 Front at City Square⁽³⁾	US Bank	SOFR+1.84%	—	63,000	12/10/26
Signature Place⁽⁴⁾	Nationwide Life Insurance Company	3.74 %	—	43,000	08/01/24
Liberty Towers⁽⁵⁾	American General Life Insurance Company	3.37 %	—	265,000	10/01/24
Repaid Permanent Loans in 2024			$—	$529,777
Secured Permanent Loans
Portside 2 at East Pier	New York Life Insurance Co.	4.56 %	95,827	97,000	03/10/26
BLVD 425	New York Life Insurance Co.	4.17 %	131,000	131,000	08/10/26
BLVD 401	New York Life Insurance Co.	4.29 %	116,016	117,000	08/10/26
Portside at East Pier⁽⁶⁾	KKR	SOFR + 2.75%	56,500	56,500	09/07/26
The Upton⁽⁷⁾	Bank of New York Mellon	SOFR + 1.58%	75,000	75,000	10/27/26
RiverHouse 9⁽⁸⁾	JP Morgan	SOFR + 1.41%	110,000	110,000	06/21/27
Quarry Place at Tuckahoe	Natixis Real Estate Capital, LLC	4.48 %	41,000	41,000	08/05/27
BLVD 475	The Northwestern Mutual Life Insurance Co.	2.91 %	165,000	165,000	11/10/27
Haus25	Freddie Mac	6.04 %	343,061	343,061	09/01/28
RiverHouse 11	The Northwestern Mutual Life Insurance Co.	4.52 %	100,000	100,000	01/10/29
Port Imperial Garage South	American General Life & A/G PC	4.85 %	31,237	31,645	12/01/29
The Emery	Flagstar Bank	3.21 %	71,024	72,000	01/01/31
Secured Permanent Loans Outstanding			$1,335,665	$1,339,206
Secured and/or Repaid Permanent Loans			$1,335,665	$1,868,983
Unamortized Deferred Financing Costs			(11,329)	(15,086)
Secured Permanent Loans			$1,324,336	$1,853,897
Secured RCF & Term Loans:
Revolving Credit Facility⁽⁹⁾	Various Lenders	SOFR + 2.71%	$157,000	$—	04/22/27
Term Loan⁽⁹⁾	Various Lenders	SOFR + 2.71%	200,000	—	04/22/27
RCF & Term Loan Balances			$357,000	$—
Unamortized Deferred Financing Costs			(3,420)	—
Total RCF & Term Loan Debt			$353,580	$—
Total Debt			$1,677,916	$1,853,897

See Debt Profile Footnotes.

Debt Summary and Maturity Schedule ($ in thousands)

As of September 30, 99.6% of the Company’s total pro forma debt portfolio (consolidated and unconsolidated) is hedged or fixed. The Company’s total debt portfolio has a weighted average interest rate of 4.96% and a weighted average maturity of 3.3 years.

	Balance	% of Total	Weighted Average Interest Rate	Weighted Average Maturity in Years
Fixed Rate & Hedged Debt
Fixed Rate & Hedged Secured Debt	$1,685,665	99.6 %	4.93 %	3.0
Variable Rate Debt
Variable Rate Debt¹	7,000	0.4 %	7.65 %	2.6
Totals / Weighted Average	$1,692,665	100.0 %	4.94 %	3.0
Unamortized Deferred Financing Costs	(14,749)
Total Consolidated Debt, net	$1,677,916
Partners’ Share	(72,941)
VRE Share of Total Consolidated Debt, net²	$1,604,975

Unconsolidated Secured Debt
VRE Share	$295,863	53.0 %	4.88 %	4.5
Partners’ Share	262,684	47.0 %	4.88 %	4.5
Total Unconsolidated Secured Debt	$558,547	100.0 %	4.88 %	4.5

Pro Rata Debt Portfolio
Fixed Rate & Hedged Secured Debt	$1,907,280	99.6 %	4.95 %	3.3
Variable Rate Secured Debt	8,503	0.4 %	7.59 %	2.2
Total Pro Rata Debt Portfolio	$1,915,783	100.0 %	4.96 %	3.3

Debt Maturity Schedule as of September 30³⁴

	2024	2025	2026	2027	2028	2029	2030	2031
Secured Debt			$474	$316	$343	$131		$71
Term Loan Draw					$200
Revolver					$157
Unused Revolver Capacity					$143

¹ Variable rate debt includes the unhedged balance on the Revolver.

² Minority interest share of consolidated debt is comprised of $33.7 million at BLVD 425, $29.9 million at BLVD 401 and $9.4 million at Port Imperial South Garage.

³ The Term Loan, Revolver and Unused Revolver Capacity are are shown with the one-year extension option utilized on the new facilities. At quarter end, the Term Loan was fully drawn and hedged at a strike of 3.5%, expiring July 2026. The Revolver is partially capped with $150 million notional capped at a strike rate of 3.5%, expiring in June 2025.

⁴ The graphic reflects consolidated debt balances only.

Annex 1: Transaction Activity

2024 Dispositions to Date
($ in thousands except per SF)
	Location	Transaction Date	Number of Buildings	SF	Gross Asset Value
Land
2 Campus Drive	Parsippany-Troy Hills, NJ	1/3/2024	N/A	N/A	$9,700
107 Morgan	Jersey City, NJ	4/16/2024	N/A	N/A	54,000
6 Becker/85 Livingston	Roseland, NJ	4/30/2024	N/A	N/A	27,900
*Subtotal Land*					$91,600
Multifamily
Metropolitan Lofts¹	Morristown, NJ	1/12/2024	1	54,683	$30,300
*Subtotal Multifamily*			1	54,683	$30,300
Office
Harborside 5	Jersey City, NJ	3/20/2024	1	977,225	$85,000
*Subtotal Office*			1	977,225	$85,000
Retail
Shops at 40 Park²	Morristown, NJ	10/22/2024	1	50,973	$15,700
*Subtotal Retail*			1	50,973	$15,700
			2024 Dispositions to Date		$222,600

¹ The joint venture sold the property; releasing approximately $6 million of net proceeds to the Company.

² The joint venture sold the property for $15.7 million, of which the Company did not receive any net proceeds after repayment of property-level debt,, selling expenses, and preferred return to our joint venture partner.

Annex 2: Reconciliation of Net Income (Loss) to NOI (three months ended)

	3Q 2024	2Q 2024
	Total	Total
Net Income (Loss)	$ (10,907)	$ 2,735
Deduct:
Income from discontinued operations	(206)	(1,419)
Management Fees	(794)	(871)
Interest and other investment income	(181)	(1,536)
Equity in (earnings) loss of unconsolidated joint ventures	268	(2,933)
(Gain) loss on disposition of developable land	—	(10,731)
(Gain) loss from extinguishment of debt, net	(8)	785
Other income, net	310	250
Add:
Property management	3,762	4,366
General and administrative	8,956	8,975
Transaction related costs	—	890
Depreciation and amortization	21,159	20,316
Interest expense	21,507	21,676
Provision for income taxes	39	176
Net Operating Income (NOI)	$ 41,286	$ 42,679

Summary of Consolidated Multifamily NOI by Type (unaudited):	3Q 2024	2Q 2024
Total Consolidated Multifamily – Operating Portfolio	$ 43,477	$ 40,864
Total Consolidated Commercial	927	905
Total NOI from Consolidated Properties (excl. unconsolidated JVs/subordinated interests)	$ 44,404	$ 41,769
NOI (loss) from services, land/development/repurposing & other assets	427	1,166
Total Consolidated Multifamily NOI	$ 44,831	$ 42,935

See Consolidated Statement of Operations.

See Non-GAAP Financial Definitions.

Annex 3: Consolidated Statement of Operations and Non-GAAP Financial Footnotes

FFO, Core FFO, AFFO, NOI, & Adjusted EBITDA

1.	Includes the Company’s share from unconsolidated joint ventures, and adjustments for noncontrolling interest of $2.4 million and $2.6 million for the three months ended September 30, 2024 and 2023, respectively, and $7.5 million and $7.7 million for the nine months ended September 30, 2024 and 2023, respectively. Excludes non-real estate-related depreciation and amortization of $0.2 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $0.6 million and $0.8 million for the nine months ended September 30, 2024 and 2023, respectively.
2.	Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (Nareit). See Non-GAAP Financial Definitions for information About FFO, Core FFO, AFFO, NOI, & Adjusted EBITDA.
3.	Includes the Company’s share from unconsolidated joint ventures of $58 thousand and $40 thousand for the three months ended September 30, 2024 and 2023, respectively, and ($35) thousand and $26 thousand for the nine months ended September 30, 2024 and 2023, respectively.
4.	Excludes expenditures for tenant spaces in properties that have not been owned by the Company for at least a year.
5.	Net Debt calculated by taking the sum of secured revolving credit facility, secured term loan, and mortgages, loans payable and other obligations, and deducting cash and cash equivalents and restricted cash, all at period end.
6.	Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares 8,684 and 8,748 shares for the three months ended September 30, 2024 and 2023, respectively, and 8,689 and 9,007 for the nine months ended September 30, 2024 and 2023, respectively, plus dilutive Common Stock Equivalents (i.e. stock options).
7.	Includes the Company’s share from unconsolidated joint ventures of $72 thousand for the three months and nine months ended September 30, 2024.

See Consolidated Statement of Operations.
See FFO, Core FFO and Core AFFO.
See Adjusted EBITDA.

Annex 4: Unconsolidated Joint Ventures ($ in thousands)

Property	Units	Physical Occupancy	VRE’s Nominal Ownership¹	3Q 2024 NOI²	Total Debt	VRE Share of 3Q NOI	VRE Share of Debt
Multifamily
Urby Harborside	762	96.5 %	85.0 %	$5,866	$183,362	$4,986	$155,858
RiverTrace at Port Imperial	316	95.3 %	22.5 %	2,113	82,000	475	18,450
Capstone at Port Imperial	360	94.4 %	40.0 %	3,154	135,000	1,262	54,000
Riverpark at Harrison	141	97.2 %	45.0 %	570	30,192	257	13,586
Metropolitan at 40 Park	130	95.6 %	25.0 %	731	34,100	183	8,525
Station House	378	94.7 %	50.0 %	1,705	87,883	853	43,942
*Total Multifamily*	2,087	95.6 %	55.0 %	$14,139	$552,537	$8,015	$294,361
Retail
Shops at 40 Park³	N/A	69.0 %	25.0 %	(46)	6,010	(12)	1,503
*Total Retail*	N/A	69.0 %	25.0 %	$(46)	$6,010	$(12)	$1,503
Total UJV	2,087		55.0 %	$14,093	$558,547	$8,003	$295,863

¹ Amounts represent the Company’s share based on ownership percentage.

² The sum of property level revenue, straight line and ASC 805 adjustments; less: operating expenses, real estate taxes and utilities.

³ The Company sold this joint venture on October 22, 2024.

Annex 5: Debt Profile Footnotes

1.	Effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.
2.	The loan on Soho Lofts was repaid in full on June 28, 2024, through a $55 million Term Loan draw.
3.	The loan on 145 Front Street was repaid in full on May 22, 2024 using cash on hand.
4.	The loan on Signature Place was repaid in full at maturity on August 1, 2024, through a $43 million Term Loan draw.
5.	The loan on Liberty Towers was repaid in full at maturity on September 30, 2024, through a combination of a $102 million Term Loan draw, $157 million Revolver draw and cash on hand.
6.	The loan on Portside at East Pier is capped at a strike rate of 3.5%, expiring in September 2026.
7.	The loan on Upton is capped at a strike rate of 1.0%, expiring in October 2024. The Company intends to place a new cap on this loan at expiration.
8.	The loan on RiverHouse 9 is capped at a strike rate of 3.5%, expiring in July 2026.
9.	The Company’s facilities consist of a $300 million Revolver and $200 million delayed-draw Term Loan and are supported by a group of eight lenders. The eight lenders consists of JP Morgan Chase and Bank of New York Mellon as Joint Bookrunners; Bank of America Securities, Capital One, Goldman Sachs Bank USA, and RBC Capital Markets as Joint Lead Arrangers; and Associated Bank and Eastern Bank as participants. The facilities have a three-year term ending April 2027, with a one-year extension option. The Term Loan was accessed three times ($55 million in June, $43 million in August and $102 million in September) and was fully drawn as of September 30, 2024. The three Term Loan tranches are capped at a strike rate of 3.5%, expiring in July 2026. As of September 30, 2024, the Revolver was $157 million drawn, of which $150 million was capped at a strike rate of 3.5%, expiring in June 2025.

	Balance as of September 30, 2024	Initial Spread	Deferred Financing Costs	5 bps reduction KPI	Updated Spread	SOFR or SOFR Cap	All In Rate
Secured Revolving Credit Facility (Unhedged)	$7,000,000	2.10 %	0.66 %	(0.05) %	2.71 %	4.94 %	7.65 %
Secured Revolving Credit Facility	$150,000,000	2.10 %	0.66 %	(0.05) %	2.71 %	3.50 %	6.21 %
Secured Term Loan	$200,000,000	2.10 %	0.66 %	(0.05) %	2.71 %	3.50 %	6.21 %

Annex 6: Multifamily Property Information

	Location	Ownership	Apartments	Rentable SF	Average Size	Year Complete
NJ Waterfront
Haus25	Jersey City, NJ	100.0 %	750	617,787	824	2022
Liberty Towers	Jersey City, NJ	100.0 %	648	602,210	929	2003
BLVD 401	Jersey City, NJ	74.3 %	412	369,515	897	2003
BLVD 425	Jersey City, NJ	100.0 %	523	475,459	909	2011
BLVD 475	Jersey City, NJ	74.3 %	311	273,132	878	2016
Soho Lofts	Jersey City, NJ	100.0 %	377	449,067	1,191	2017
Urby Harborside	Jersey City, NJ	85.0 %	762	474,476	623	2017
RiverHouse 9	Weehawken, NJ	100.0 %	313	245,127	783	2021
RiverHouse 11	Weehawken, NJ	100.0 %	295	250,591	849	2018
RiverTrace	West New York, NJ	22.5 %	316	295,767	936	2014
Capstone	West New York, NJ	40.0 %	360	337,991	939	2021
NJ Waterfront Subtotal		85.0 %	5,067	4,391,122	867
Massachusetts
Portside at East Pier	East Boston, MA	100.0 %	180	154,859	862	2015
Portside 2 at East Pier	East Boston, MA	100.0 %	296	230,614	779	2018
145 Front at City Square	Worcester, MA	100.0 %	365	304,936	835	2018
The Emery	Revere, MA	100.0 %	326	273,140	838	2020
Massachusetts Subtotal		100.0 %	1,167	963,549	826
Other
The Upton	Short Hills, NJ	100.0 %	193	217,030	1,125	2021
The James	Park Ridge, NJ	100.0 %	240	215,283	897	2021
Signature Place	Morris Plains, NJ	100.0 %	197	203,716	1,034	2018
Quarry Place at Tuckahoe	Eastchester, NY	100.0 %	108	105,551	977	2016
Riverpark at Harrison	Harrison, NJ	45.0 %	141	124,774	885	2014
Metropolitan at 40 Park	Morristown, NJ	25.0 %	130	124,237	956	2010
Station House	Washington, DC	50.0 %	378	290,348	768	2015
Other Subtotal		73.8 %	1,387	1,280,939	924
Operating Portfolio¹		85.2 %	7,621	6,635,610	871


	See Multifamily Operating Portfolio.

	¹ Total sf outlined excludes approximately 189,367 sqft of ground floor retail, of which 142,739 sf was leased as of September 30, 2024.

Annex 7: Noncontrolling Interests in Consolidated Joint Ventures

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
BLVD 425	$ 155	$ 59	$ 327	$ 130
BLVD 401	(528)	(672)	(1,687)	(1,919)
Port Imperial Garage South	12	21	(3)	(40)
Port Imperial Retail South	5	21	34	84
Other consolidated joint ventures	(35)	(21)	(100)	(70)
Net losses in noncontrolling interests	$ (391)	$ (592)	$ (1,429)	$ (1,815)
Depreciation in noncontrolling interests	721	715	2,179	2,141
Funds from operations – noncontrolling interest in consolidated joint ventures	$ 330	$ 123	$ 750	$ 326
Interest expense in noncontrolling interest in consolidated joint ventures	787	790	2,359	2,374
Net operating income before debt service in consolidated joint ventures	$ 1,117	$ 913	$ 3,109	$ 2,700

Non-GAAP Financial Definitions

NON-GAAP FINANCIAL MEASURES

Included in this financial package are Funds from Operations, or FFO, Core Funds from Operations, or Core FFO, net operating income, or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or Adjusted EBITDA, each a “non-GAAP financial measure,” measuring Veris Residential, Inc.’s historical or future financial performance that is different from measures calculated and presented in accordance with generally accepted accounting principles (“U.S. GAAP”), within the meaning of the applicable Securities and Exchange Commission rules. Veris Residential, Inc. believes these metrics can be a useful measure of its performance which is further defined.

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted “EBITDA”)
The Company defines Adjusted EBITDA as Core FFO, plus interest expense, plus income tax expense, plus income (loss) in noncontrolling interest in consolidated joint ventures, and plus adjustments to reflect the entity’s share of Adjusted EBITDA of unconsolidated joint ventures. The Company presents Adjusted EBITDA because the Company believes that Adjusted EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of the Company’s ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of the Company’s financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of the Company’s liquidity.

Blended Net Rental Growth Rate or Blended Lease Rate
Weighted average of the net effective change in rent (inclusive of concessions) for a lease with a new resident or for a renewed lease compared to the rent for the prior lease of the identical apartment unit.

Core FFO and Adjusted FFO (“AFFO”)
Core FFO is defined as FFO, as adjusted for certain items to facilitate comparative measurement of the Company’s performance over time. Adjusted FFO (“AFFO”) is defined as Core FFO less (i) recurring tenant improvements, leasing commissions, and capital expenditures, (ii) straight-line rents and amortization of acquired above/below market leases, net, and (iii) other non-cash income, plus (iv) other non-cash charges. Core FFO and Adjusted AFFO are presented solely as supplemental disclosure that the Company’s management believes provides useful information to investors and analysts of its results, after adjusting for certain items to facilitate comparability of its performance from period to period. Core FFO and Adjusted FFO are non-GAAP financial measures that are not intended to represent cash flow and are not indicative of cash flows provided by operating activities as determined in accordance with GAAP. As there is not a generally accepted definition established for Core FFO and Adjusted FFO, the Company’s measures of Core FFO may not be comparable to the Core FFO and Adjusted FFO reported by other REITs. A reconciliation of net income per share to Core FFO and Adjusted FFO in dollars and per share are included in the financial tables accompanying this press release.

Funds From Operations (“FFO”)
FFO is defined as net income (loss) before noncontrolling interests in Operating Partnership, computed in accordance with U.S. GAAP, excluding gains or losses from depreciable rental property transactions (including both acquisitions and dispositions), and impairments related to depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from property transactions and impairments related to depreciable rental property (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs.

FFO per share should not be considered as an alternative to net income available to common shareholders per share as an indication of the Company’s performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company’s FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts (“Nareit”). A reconciliation of net income per share to FFO per share is included in the financial tables accompanying this press release.

NOI and Same Store NOI
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 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 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.

Same Store NOI is presented for the same store portfolio, which comprises all properties that were owned by the Company throughout both of the reporting periods.

Company Information

Company Information

Corporate Headquarters	Stock Exchange Listing	Contact Information
Veris Residential, Inc.	New York Stock Exchange	Veris Residential, Inc.
210 Hudson St., Suite 400		Investor Relations Department
Jersey City, New Jersey 07311	Trading Symbol	210 Hudson St., Suite 400
(732) 590-1010	Common Shares: VRE	Jersey City, New Jersey 07311

		Anna Malhari
		Chief Operating Officer
		E-Mail: amalhari@verisresidential.com
		Web: www.verisresidential.com



Executive Officers

Mahbod Nia	Amanda Lombard	Taryn Fielder
Chief Executive Officer	Chief Financial Officer	General Counsel and Secretary

Anna Malhari	Jeff Turkanis
Chief Operating Officer	EVP & Chief Investment Officer



Equity Research Coverage

Bank of America Merrill Lynch	BTIG, LLC	Citigroup
Josh Dennerlein	Thomas Catherwood	Nicholas Joseph

Evercore ISI	Green Street Advisors	JP Morgan
Steve Sakwa	John Pawlowski	Anthony Paolone

Truist
Michael R. Lewis

View original content to download multimedia:https://www.prnewswire.com/news-releases/veris-residential-inc-reports-third-quarter-2024-results-302292067.html

SOURCE Veris Residential, Inc.

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Coinbase On Following MicroStrategy's Bitcoin Playbook: Looking For 'Opportunities,' Says CFO, But Highlights Key Difference Between The Two Companies

31.10.2024 by admin

Coinbase Global Inc. COIN said it wants to expand its cryptocurrency investment portfolio and emphasized that assets held on its books, including Bitcoin BTC/USD, are intended to be retained for the long term

What Happened: During the company’s third-quarter 2024 earnings call, the management was asked whether they would pursue a reserve strategy akin to MicroStrategy, a Bitcoin investment company, with over $18 billion worth of the asset on its balance sheet.

Alesia Haas, the Chief Financial Officer, informed that the company does maintain a cryptocurrency investment portfolio on its balance sheet, the fair market value of which was about $1.3 billion at the end of the third quarter. This amounted to nearly a quarter of Coinbase’s total cash balance.

“You can see more detail in our filings, but we hold Bitcoin in addition to Ethereum and a mix of other cryptocurrency assets. These are intended to be long-term investments,” Haas added.

The CFO clarified that Coinbase functions as an operating company rather than an investment company and needed cash on hand for various capital requirements. Having said that, the firm looked for “opportunities” to expand its operations and broaden its cryptocurrency holdings in the future.

Why It Matters: Coinbase reported Q3 revenue of $1.21 billion after the market close on Wednesday, missing the Street consensus estimate of $1.26 billion. Additionally, earnings came in at 28 cents per share, lower than analysts’ estimate of 42 cents per share.

The company’s board authorized its first stock buyback program, providing for the repurchase of up to $1 billion of its outstanding Class A common stock without expiration.

Price Action: Coinbase stock plunged 4.84% in after-hours trading, after closing down 3.61% to $211.74 during Tuesday’s regular session.

Image via Flickr/ Ivan Radic

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News Real estate

MAA REPORTS THIRD QUARTER 2024 RESULTS

31.10.2024 by admin

GERMANTOWN, Tenn., Oct. 30, 2024 /PRNewswire/ — Mid-America Apartment Communities, Inc., or MAA MAA, today announced operating results for the three months ended September 30, 2024.

Third Quarter 2024 Operating Results	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Earnings per common share – diluted	$	0.98	$	0.94	$	3.07	$	3.34

Funds from operations (FFO) per Share – diluted	$	2.10	$	2.16	$	6.57	$	6.85

Core FFO per Share – diluted	$	2.21	$	2.29	$	6.65	$	6.85

A reconciliation of Net income available for MAA common shareholders to FFO and Core FFO, and discussion of the components of FFO and Core FFO, can be found later in this release. FFO per Share – diluted and Core FFO per Share – diluted include diluted common shares and units.

Eric Bolton, Chairman and Chief Executive Officer, said, “We continue to see strong demand for apartment housing, which is contributing to the steady absorption of the high volume of new supply delivered in the third quarter, which we believe has now peaked. Resident turnover is at record low levels, lease renewal pricing is strong, occupancy is steady, and collections also remain strong. We are confident that in calendar year 2025 we will see a meaningful decline in the amount of new supply impacting our portfolio, and we will enter a new multi-year cycle with demand outpacing supply. The upside opportunity within our current portfolio from these changing market conditions, coupled with the growing contribution from our new development and acquisitions pipeline, has MAA very well positioned.”

Highlights

During the third quarter of 2024, MAA’s Same Store Portfolio captured strong Average Physical Occupancy of 95.7%, matching the performance in the same period in the prior year. During the third quarter of 2024, MAA’s Same Store Portfolio produced flat revenue growth, as compared to the same period in the prior year, with Average Effective Rent per Unit down 0.4%, offset by a 2.6% increase in other property revenues.
During the third quarter of 2024, MAA’s Same Store Portfolio property operating expense increased by 3.0% and MAA’s Same Store Portfolio Net Operating Income (NOI) decreased by 1.7%, in each case as compared to the same period in the prior year.
As of September 30, 2024, resident turnover remained historically low at 42.8% on a trailing twelve month basis with a record low level of move-outs associated with buying single family-homes.
During the third quarter of 2024, MAA acquired a newly built 310-unit multifamily apartment community in initial lease-up located in Orlando, Florida. Subsequent to the end of the third quarter of 2024, MAA acquired a 386-unit multifamily community located in Dallas, Texas.
Subsequent to the end of the third quarter of 2024, MAA closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina.
As of September 30, 2024, MAA had eight communities under development, representing 2,762 units once complete, with a projected total cost of $978.3 million and an estimated $367.9 million remaining to be funded. During the third quarter of 2024, MAA started construction on a 306-unit multifamily apartment community located in Richmond, Virginia. Also during the third quarter of 2024, MAA agreed to finance a third party’s development of a 239-unit multifamily apartment community currently under construction located in Charlotte, North Carolina. During the third quarter of 2024, MAA completed the development of Novel Daybreak, located in the Salt Lake City, Utah market.
As of September 30, 2024, MAA had two recently completed development communities and three recently acquired communities in lease-up. Two communities are expected to stabilize in the fourth quarter of 2024, one is expected to stabilize in the first quarter of 2025 and two are expected to stabilize in the second quarter of 2025. During the third quarter of 2024, MAA completed the lease-up of MAA Central Avenue, located in Phoenix, Arizona.
MAA’s balance sheet remains strong with a Net Debt/Adjusted EBITDAre ratio of 3.9x and $805.7 million of combined cash and available capacity under MAALP’s unsecured revolving credit facility as of September 30, 2024. MAALP refers to Mid-America Apartments, L.P., which is MAA’s operating partnership.

Same Store Portfolio Operating Results

To ensure comparable reporting with prior periods, the Same Store Portfolio includes properties that were owned by MAA and stabilized at the beginning of the previous year. Same Store Portfolio results for the three and nine months ended September 30, 2024 as compared to the same periods in the prior year are summarized below:

	Three months ended September 30, 2024 vs. 2023						Nine months ended September 30, 2024 vs. 2023
	Revenues	Expenses	NOI			Average Effective Rent per Unit	Revenues	Expenses	NOI			Average Effective Rent per Unit
Same Store Operating Growth	0.0 %	3.0 %		(1.7)	%	(0.4) %	0.7 %	4.0 %		(1.1)	%	0.6 %

A reconciliation of Net income available for MAA common shareholders to NOI, including Same Store NOI, and discussion of the components of NOI, can be found later in this release.

Same Store Portfolio operating statistics for the three and nine months ended September 30, 2024 are summarized below:

	Three months ended September 30, 2024			Nine months ended September 30, 2024			September 30, 2024
	Average Effective Rent per Unit		Average Physical Occupancy	Average Effective Rent per Unit		Average Physical Occupancy	Resident Turnover
Same Store Operating Statistics	$	1,691	95.7 %	$	1,690	95.5 %	42.8 %

Same Store Portfolio lease pricing for new leases that were effective during the third quarter of 2024 declined 5.4%, while Same Store Portfolio lease pricing for renewing leases that were effective during the third quarter of 2024 increased 4.1%, producing a decrease of 0.2% for both new and renewing lease pricing on a blended basis in the third quarter of 2024 as compared to the prior lease.

Same Store Portfolio lease pricing for both new and renewing leases effective during the nine months ended September 30, 2024, on a blended basis, declined 0.2% as compared to the prior lease, driven by a 5.5% decrease for leases to new move-in residents, partially offset by a 4.5% increase for renewing leases.

Brad Hill, President and Chief Investment Officer, said, “Despite the record level of new apartment deliveries in many of our markets, we are encouraged by the momentum we are beginning to see, and as we approach the slower winter leasing season, where only 16% of our leases are set to expire, our portfolio is well positioned. Through October 28th, our 60-day exposure (which represents all current vacant units plus all notices to vacate over the next 60 days) at 6.3% is the lowest level we’ve seen in more than five years, our fourth quarter sequential seasonal deceleration in blended pricing should be better than previous years with October blends relatively consistent with the prior month, and our average physical occupancy is stable at 95.4%. Additionally, our recent acquisitions and our record, under-construction, development pipeline of nearly $1 billion are expected to provide continued, incremental earnings growth as we enter a multi-year period where the delivery of new apartment supply is poised to decline.”

Acquisition and Disposition Activity

In September 2024, MAA acquired a 310-unit multifamily community currently in lease-up and located in Orlando, Florida for approximately $84 million.

In October 2024, MAA acquired a 386-unit multifamily community located in Dallas, Texas for approximately $106 million and closed on the disposition of a 216-unit multifamily community located in Charlotte, North Carolina for net proceeds of approximately $39 million.

Development and Lease-up Activity

A summary of MAA’s development communities under construction as of the end of the third quarter of 2024 is set forth below (dollars in thousands):

Units as of

Development Costs as of

Expected Project

Total

September 30, 2024

Completions By Year

Development

Expected

Spend

Expected

Projects ⁽¹⁾

Total

Delivered

Leased

Total

to Date

Remaining

2024

2025

2026

2027

2,762

506

356

978,300

610,370

367,930

⁽¹⁾	Three of the development projects are currently leasing.

During the third quarter of 2024, MAA funded approximately $167 million of costs for current and planned projects, including predevelopment activities.

In July 2024, MAA agreed to finance a third party’s development of a 239-unit multifamily apartment community currently under construction located in Charlotte, North Carolina. This development is expected to deliver its first units in the third quarter of 2025, to be completed in the first quarter of 2026 and to reach stabilization in the fourth quarter of 2026 at a total cost of approximately $112 million. MAA has the option to purchase the development once it is stabilized.

In September 2024, MAA started construction on a 306-unit multifamily apartment community located in Richmond, Virginia on a land parcel acquired by MAA in August 2024. The development is expected to deliver its first units in the first quarter of 2027, to be completed in the third quarter of 2027 and to reach stabilization in the first quarter of 2028 at a total cost of approximately $100 million.

A summary of the total units, physical occupancy and cost of MAA’s lease-up communities as of the end of the third quarter of 2024 is set forth below (dollars in thousands):

Total

As of September 30, 2024

Lease-Up

Total

Physical

Spend

Projects ⁽¹⁾

Units

Occupancy

to Date

1,708

76.2

457,837

⁽¹⁾	Two of the lease-up projects are expected to stabilize in the fourth quarter of 2024, one in the first quarter of 2025 and two in the second quarter of 2025.

Property Redevelopment and Repositioning Activity

A summary of MAA’s interior redevelopment program as of the end of the third quarter of 2024 is set forth below:

As of September 30, 2024

Units

Average Cost

Increase in Average

Completed

per Unit

Effective Rent per Unit

YTD

Redevelopment

4,535

6,406

107

As of September 30, 2024, MAA had completed installation of Smart Home technology (unit entry locks, mobile control of lights and thermostat and leak monitoring) in over 94,000 units across its apartment community portfolio providing an increase in Average Effective Rent per Unit of approximately $25 since the initiative began during the first quarter of 2019.

During the third quarter of 2024, MAA continued its property repositioning program to upgrade and reposition the amenity and common areas at select apartment communities for higher and above market rent growth after projects are completed and units are fully repriced. For the nine months ended September 30, 2024, MAA spent $1.7 million on this program. Under this program, MAA started six projects during the third quarter of 2024.

Capital Expenditures

A summary of MAA’s capital expenditures and Funds Available for Distribution (FAD) for the three and nine months ended September 30, 2024 and 2023 is set forth below (dollars in millions, except per Share data):

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Core FFO attributable to common shareholders and unitholders	$	264.8	$	274.9	$	797.6	$	820.4
Recurring capital expenditures		(33.6)		(36.4)		(88.8)		(85.4)
Core Adjusted FFO (Core AFFO) attributable to common shareholders and unitholders		231.2		238.5		708.8		735.0
Redevelopment, revenue enhancing, commercial and other capital expenditures		(60.1)		(47.5)		(145.8)		(156.3)
FAD attributable to common shareholders and unitholders	$	171.1	$	191.0	$	563.0	$	578.7

Core FFO per Share – diluted	$	2.21	$	2.29	$	6.65	$	6.85
Core AFFO per Share – diluted	$	1.93	$	1.99	$	5.91	$	6.14

A reconciliation of Net income available for MAA common shareholders to FFO, Core FFO, Core AFFO and FAD, and discussion of the components of FFO, Core FFO, Core AFFO and FAD, can be found later in this release.

Balance Sheet and Financing Activities

As of September 30, 2024, MAA had $805.7 million of combined cash and available capacity under MAALP’s unsecured revolving credit facility.

Dividends and distributions paid on shares of common stock and noncontrolling interests during the third quarter of 2024 were $176.3 million, as compared to $167.8 million for the same period in the prior year.

Balance sheet highlights as of September 30, 2024 are summarized below (dollars in billions):

Total debt to adjusted total assets ⁽¹⁾	Net Debt/Adjusted EBITDAre ⁽²⁾	Total debt outstanding		Average effective interest rate	Fixed rate debt as a % of total debt	Total debt average years to maturity
28.7 %	3.9x	$	4.9	3.8 %	90.0 %		7.0

⁽¹⁾	As defined in the covenants for the bonds issued by MAALP.
⁽²⁾	Adjusted EBITDAre is calculated for the trailing twelve month period ended September 30, 2024.

A reconciliation of Unsecured notes payable and Secured notes payable to Net Debt and a reconciliation of Net income to Adjusted EBITDAre, along with discussion of the components of Net Debt and Adjusted EBITDAre, can be found later in this release.

123rd Consecutive Quarterly Common Dividend Declared

MAA declared its 123rd consecutive quarterly common dividend, which will be paid on October 31, 2024 to holders of record on October 15, 2024. The current annual dividend rate is $5.88 per common share. The timing and amount of future dividends will depend on actual cash flows from operations, MAA’s financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986 and other factors as MAA’s Board of Directors deems relevant. MAA’s Board of Directors may modify the dividend policy from time to time.

2024 Earnings and Same Store Portfolio Guidance

MAA is updating its prior 2024 guidance for Earnings per diluted common share, Core FFO per diluted Share, Core AFFO per diluted Share and Same Store performance. MAA expects to update its 2024 Earnings per diluted common share, Core FFO per diluted Share and Core AFFO per diluted Share guidance on a quarterly basis.

FFO, Core FFO and Core AFFO are non-GAAP financial measures. Acquisition and disposition activity materially affects depreciation and capital gains or losses, which combined, generally represent the majority of the difference between Net income available for common shareholders and FFO. As discussed in the definitions of non-GAAP financial measures found later in this release, MAA’s definition of FFO is in accordance with the National Association of Real Estate Investment Trusts’, or NAREIT’s, definition, and Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations. MAA believes that Core FFO is helpful in understanding operating performance in that Core FFO excludes not only depreciation expense of real estate assets and certain other non-routine items, but it also excludes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

2024 Guidance	Previous Range	Previous Midpoint	Revised Range	Revised Midpoint
Earnings:	Full Year 2024	Full Year 2024	Full Year 2024	Full Year 2024
Earnings per common share – diluted	$4.37 to $4.65	$4.51	$4.45 to $4.61	$4.53
Core FFO per Share – diluted	$8.74 to $9.02	$8.88	$8.80 to $8.96	$8.88
Core AFFO per Share – diluted	$7.78 to $8.06	$7.92	$7.84 to $8.00	$7.92

MAA Same Store Portfolio:
Property revenue growth	0.15% to 1.15%	0.65 %	0.25% to 0.75%	0.50 %
Property operating expense growth	3.75% to 4.75%	4.25 %	3.25% to 4.25%	3.75 %
NOI growth	-2.50% to -0.10%	-1.30 %	-1.90% to -0.70%	-1.30 %

MAA expects Core FFO for the fourth quarter of 2024 to be in the range of $2.15 to $2.31 per diluted Share, or $2.23 per diluted Share at the midpoint. The projected difference between Core FFO per diluted Share for the third quarter of 2024 to the midpoint of MAA’s guidance for the fourth quarter of 2024 is summarized below:

	Core FFO per diluted Share
Q3 2024 reported results	$	2.21
Same Store Revenues		(0.03)
Same Store Expenses		0.07
Non-Same Store NOI ⁽¹⁾		0.01
General and administrative expenses		(0.01)
Interest expense and Other non-operating (expense) income		(0.02)
Q4 2024 guidance midpoint	$	2.23


⁽¹⁾	Non-Same Store NOI results for the third quarter of 2024 included $0.03 of storm-related clean-up costs. Guidance for the fourth quarter of 2024 includes $0.02 to $0.03 of projected storm costs to be reflected in Non-Same Store NOI.

MAA does not forecast Earnings per diluted common share on a quarterly basis as MAA generally cannot predict the timing of forecasted acquisition and disposition activity within a particular quarter (rather than during the course of the full year). Additional details and guidance items are provided in the Supplemental Data to this release.

Supplemental Material and Conference Call

Supplemental Data to this release can be found on the “For Investors” page of the MAA website at www.maac.com. MAA will host a conference call to further discuss third quarter results on October 31, 2024, at 9:00 AM Central Time. The conference call-in number is (800) 715-9871. You may also join the live webcast of the conference call by accessing the “For Investors” page of the MAA website at www.maac.com. MAA’s filings with the Securities and Exchange Commission (SEC) are filed under the registrant names of Mid-America Apartment Communities, Inc. and Mid-America Apartments, L.P.

About MAA

MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of September 30, 2024, MAA had ownership interest in 104,469 apartment units, including communities currently in development, across 16 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at investor.relations@maac.com, or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.

Forward-Looking Statements

Sections of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property stabilizations, property acquisition and disposition activity, joint venture activity, development and renovation activity and other capital expenditures, and capital raising and financing activity, as well as lease pricing, revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “proforma,” “opportunity,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, as described below, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this release may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors;
exposure to risks inherent in investments in a single industry and sector;
adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions or development projects on favorable terms, our ability to consummate any planned dispositions in a timely manner on acceptable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
failure of development communities to be completed within budget and on a timely basis, if at all, to lease-up as anticipated or to achieve anticipated results;
unexpected capital needs;
material changes in operating costs, including real estate taxes, utilities and insurance costs, due to inflation and other factors;
inability to obtain appropriate insurance coverage at reasonable rates, or at all, losses due to uninsured risks, deductibles and self-insured retentions, or losses from catastrophes in excess of coverage limits;
ability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
level and volatility of interest or capitalization rates or capital market conditions;
the effect of any rating agency actions on the cost and availability of new debt financing;
the impact of adverse developments affecting the U.S. or global banking industry, including bank failures and liquidity concerns, which could cause continued or worsening economic and market volatility, and regulatory responses thereto;
significant change in the mortgage financing market or other factors that would cause single-family housing or other alternative housing options, either as an owned or rental product, to become a more significant competitive product;
ability to continue to satisfy complex rules in order to maintain our status as a REIT for federal income tax purposes, the ability of MAALP to satisfy the rules to maintain its status as a partnership for federal income tax purposes, the ability of our taxable REIT subsidiaries to maintain their status as such for federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;
inability to attract and retain qualified personnel;
cyber liability or potential liability for breaches of our or our service providers’ information technology systems, or business operations disruptions;
potential liability for environmental contamination;
changes in the legal requirements we are subject to, or the imposition of new legal requirements, that adversely affect our operations;
extreme weather and natural disasters;
disease outbreaks and other public health events and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;
impact of climate change on our properties or operations;
legal proceedings or class action lawsuits;
impact of reputational harm caused by negative press or social media postings of our actions or policies, whether or not warranted;
compliance costs associated with numerous federal, state and local laws and regulations; and
other risks identified in this release and in reports we file with the SEC or in other documents that we publicly disseminate.

New factors may also emerge from time to time that could have a material adverse effect on our business. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements contained in this release to reflect events, circumstances or changes in expectations after the date of this release.

FINANCIAL HIGHLIGHTS

Dollars in thousands, except per share data	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Rental and other property revenues	$	551,126		$	542,042		$	1,641,183		$	1,606,221

Net income available for MAA common shareholders	$	114,273		$	109,810		$	358,131		$	389,564

Total NOI ⁽¹⁾	$	339,565		$	342,819		$	1,026,024		$	1,029,862

Earnings per common share: ⁽²⁾
Basic	$	0.98		$	0.94		$	3.07		$	3.34
Diluted	$	0.98		$	0.94		$	3.07		$	3.34

Funds from operations per Share – diluted: ⁽²⁾
FFO ⁽¹⁾	$	2.10		$	2.16		$	6.57		$	6.85
Core FFO ⁽¹⁾	$	2.21		$	2.29		$	6.65		$	6.85
Core AFFO ⁽¹⁾	$	1.93		$	1.99		$	5.91		$	6.14

Dividends declared per common share	$	1.47		$	1.40		$	4.41		$	4.20

Dividends/Core FFO (diluted) payout ratio		66.5	%		61.1	%		66.3	%		61.3	%
Dividends/Core AFFO (diluted) payout ratio		76.2	%		70.4	%		74.6	%		68.4	%

Consolidated interest expense	$	42,726		$	36,651		$	124,352		$	110,655
Mark-to-market debt adjustment		—			—			—			25
Debt discount and debt issuance cost amortization		(1,514)			(1,501)			(4,569)			(4,562)
Capitalized interest		5,048			3,182			12,188			9,065
Total interest incurred	$	46,260		$	38,332		$	131,971		$	115,183


Amortization of principal on notes payable	$	—		$	124		$	—		$	854


⁽¹⁾	A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Net income available for MAA common shareholders to NOI; and (ii) Net income available for MAA common shareholders to FFO, Core FFO and Core AFFO.
⁽²⁾	See the “Share and Unit Data” section for additional information.

Dollars in thousands, except share price
	September 30, 2024		December 31, 2023
Gross Assets ⁽¹⁾	$	16,984,512	$	16,349,193
Gross Real Estate Assets ⁽¹⁾	$	16,733,158	$	16,089,909
Total debt	$	4,875,968	$	4,540,225
Common shares and units outstanding		119,955,843		119,838,096
Share price	$	158.90	$	134.46
Book equity value	$	6,154,112	$	6,299,122
Market equity value	$	19,060,983	$	16,113,430
Net Debt/Adjusted EBITDAre ⁽²⁾	3.9x		3.6x


⁽¹⁾	A reconciliation of Total assets to Gross Assets and Real estate assets, net, to Gross Real Estate Assets, along with discussion of their components, can be found later in this release.
⁽²⁾	Adjusted EBITDAre is calculated for the trailing twelve month period for each date presented. A reconciliation of the following items and discussion of their respective components can be found later in this release: (i) Unsecured notes payable and Secured notes payable to Net Debt; and (ii) Net income to EBITDA, EBITDAre and Adjusted EBITDAre.

CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share data (Unaudited)	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Revenues:
Rental and other property revenues	$	551,126	$	542,042	$	1,641,183	$	1,606,221
Expenses:
Operating expenses, excluding real estate taxes and insurance		134,475		122,660		378,887		347,868
Real estate taxes and insurance		77,086		76,563		236,272		228,491
Depreciation and amortization		146,722		146,702		434,764		424,175
Total property operating expenses		358,283		345,925		1,049,923		1,000,534
Property management expenses		17,265		16,298		54,461		50,317
General and administrative expenses		12,728		13,524		42,444		43,329
Interest expense		42,726		36,651		124,352		110,655
Loss on sale of depreciable real estate assets		—		75		25		61
Gain on sale of non-depreciable real estate assets		—	—			—		(54)
Other non-operating expense (income)		1,678		16,493		(2,604)		(3,966)
Income before income tax (expense) benefit		118,446		113,076		372,582		405,345
Income tax (expense) benefit		(670)		209		(3,485)		(3,596)
Income from continuing operations before real estate joint venture activity		117,776		113,285		369,097		401,749
Income from real estate joint venture		454		447		1,405		1,214
Net income		118,230		113,732		370,502		402,963
Net income attributable to noncontrolling interests		3,035		3,000		9,605		10,633
Net income available for shareholders		115,195		110,732		360,897		392,330
Dividends to MAA Series I preferred shareholders		922		922		2,766		2,766
Net income available for MAA common shareholders	$	114,273	$	109,810	$	358,131	$	389,564

Earnings per common share – basic:
Net income available for common shareholders	$	0.98	$	0.94	$	3.07	$	3.34

Earnings per common share – diluted:
Net income available for common shareholders	$	0.98	$	0.94	$	3.07	$	3.34

SHARE AND UNIT DATA

Shares and units in thousands	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net Income Shares ⁽¹⁾
Weighted average common shares – basic		116,820		116,633		116,758		116,479
Effect of dilutive securities		—		78		—		134
Weighted average common shares – diluted		116,820		116,711		116,758		116,613
Funds From Operations Shares And Units
Weighted average common shares and units – basic		119,900		119,787		119,865		119,635
Weighted average common shares and units – diluted		119,954		119,833		119,919		119,683
Period End Shares And Units
Common shares at September 30,		116,880		116,687		116,880		116,687
Operating Partnership units at September 30,		3,076		3,148		3,076		3,148
Total common shares and units at September 30,		119,956		119,835		119,956		119,835


⁽¹⁾	For additional information on the calculation of diluted common shares and earnings per common share, please refer to the Notes to the Condensed Consolidated Financial Statements in MAA’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, expected to be filed with the SEC on or about October 31, 2024.

CONSOLIDATED BALANCE SHEETS

Dollars in thousands (Unaudited)
	September 30, 2024		December 31, 2023
Assets
Real estate assets:
Land	$	2,085,464	$	2,031,403
Buildings and improvements and other		13,956,601		13,515,949
Development and capital improvements in progress		499,619		385,405
		16,541,684		15,932,757
Less: Accumulated depreciation		(5,217,893)		(4,864,690)
		11,323,791		11,068,067
Undeveloped land		73,861		73,861
Investment in real estate joint venture		41,693		41,977
Real estate assets, net		11,439,345		11,183,905

Cash and cash equivalents		50,232		41,314
Restricted cash		13,829		13,777
Other assets		237,525		245,507
Assets held for sale		15,321		—
Total assets	$	11,756,252	$	11,484,503

Liabilities and equity
Liabilities:
Unsecured notes payable	$	4,515,733	$	4,180,084
Secured notes payable		360,235		360,141
Accrued expenses and other liabilities		726,172		645,156
Total liabilities		5,602,140		5,185,381

Redeemable common stock		22,518		19,167

Shareholders’ equity:
Preferred stock		9		9
Common stock		1,166		1,168
Additional paid-in capital		7,413,674		7,399,921
Accumulated distributions in excess of net income		(1,458,816)		(1,298,263)
Accumulated other comprehensive loss		(7,359)		(8,764)
Total MAA shareholders’ equity		5,948,674		6,094,071
Noncontrolling interests – Operating Partnership units		155,562		163,128
Total shareholders’ equity		6,104,236		6,257,199
Noncontrolling interests – consolidated real estate entities		27,358		22,756
Total equity		6,131,594		6,279,955
Total liabilities and equity	$	11,756,252	$	11,484,503

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO FFO, CORE FFO, CORE AFFO AND FAD

Amounts in thousands, except per share and unit data	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net income available for MAA common shareholders	$	114,273	$	109,810	$	358,131	$	389,564
Depreciation and amortization of real estate assets		145,256		145,278		430,470		419,532
Loss on sale of depreciable real estate assets		—		75		25		61
MAA’s share of depreciation and amortization of real estate assets of real estate joint venture		157		153		466		456
Gain on consolidation of third-party development ⁽¹⁾		(11,033)		—		(11,033)		—
Net income attributable to noncontrolling interests		3,035		3,000		9,605		10,633
FFO attributable to common shareholders and unitholders		251,688		258,316		787,664		820,246
Loss on embedded derivative in preferred shares ⁽¹⁾		18,257		11,250		14,451		1,863
Gain on sale of non-depreciable real estate assets		—	—			—		(54)
Loss (gain) on investments, net of tax ⁽¹⁾⁽²⁾		533		5,166		(2,873)		(603)
Casualty related (recoveries) charges, net ⁽¹⁾		(5,714)		217		(9,664)		588
Gain on debt extinguishment ⁽¹⁾		—		(57)		—		(57)
Legal costs, settlements and (recoveries), net ⁽¹⁾⁽³⁾		—		—		8,000		(1,600)
Mark-to-market debt adjustment ⁽⁴⁾		—		—		—		(25)
Core FFO attributable to common shareholders and unitholders		264,764		274,892		797,578		820,358
Recurring capital expenditures		(33,535)		(36,368)		(88,810)		(85,367)
Core AFFO attributable to common shareholders and unitholders		231,229		238,524		708,768		734,991
Redevelopment capital expenditures		(12,769)		(19,723)		(33,767)		(77,442)
Revenue enhancing capital expenditures		(21,924)		(19,123)		(60,566)		(51,168)
Commercial capital expenditures		(1,211)		(2,104)		(4,281)		(4,540)
Other capital expenditures		(24,183)		(6,554)		(47,158)		(23,109)
FAD attributable to common shareholders and unitholders	$	171,142	$	191,020	$	562,996	$	578,732

Dividends and distributions paid	$	176,329	$	167,766	$	528,824	$	501,620

Weighted average common shares – diluted		116,820		116,711		116,758		116,613
FFO weighted average common shares and units – diluted		119,954		119,833		119,919		119,683

Earnings per common share – diluted:
Net income available for common shareholders	$	0.98	$	0.94	$	3.07	$	3.34

FFO per Share – diluted	$	2.10	$	2.16	$	6.57	$	6.85
Core FFO per Share – diluted	$	2.21	$	2.29	$	6.65	$	6.85
Core AFFO per Share – diluted	$	1.93	$	1.99	$	5.91	$	6.14


⁽¹⁾	Included in Other non-operating expense (income) in the Consolidated Statements of Operations.
⁽²⁾	For the three months ended September 30, 2024 and 2023, loss on investments is presented net of tax benefit of $0.1 million and $1.4 million, respectively. For the nine months ended September 30, 2024 and 2023, gain on investments is presented net of tax expense of $0.8 million and $0.1 million, respectively.
⁽³⁾	For the nine months ended September 30, 2024, in accordance with its accounting policies, MAA recognized $8.0 million of accrued legal defense costs that are expected to be incurred through July 2027.
⁽⁴⁾	Included in Interest expense in the Consolidated Statements of Operations.

RECONCILIATION OF NET INCOME AVAILABLE FOR MAA COMMON SHAREHOLDERS TO NET OPERATING INCOME

Dollars in thousands	Three Months Ended						Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net income available for MAA common shareholders	$	114,273	$	101,031	$	109,810	$	358,131	$	389,564
Depreciation and amortization		146,722		145,022		146,702		434,764		424,175
Property management expenses		17,265		17,201		16,298		54,461		50,317
General and administrative expenses		12,728		12,671		13,524		42,444		43,329
Interest expense		42,726		41,265		36,651		124,352		110,655
Loss on sale of depreciable real estate assets		—		23		75		25		61
Gain on sale of non-depreciable real estate assets		—		—	—			—		(54)
Other non-operating expense (income)		1,678		19,244		16,493		(2,604)		(3,966)
Income tax expense (benefit)		670		1,020		(209)		3,485		3,596
Income from real estate joint venture		(454)		(469)		(447)		(1,405)		(1,214)
Net income attributable to noncontrolling interests		3,035		2,709		3,000		9,605		10,633
Dividends to MAA Series I preferred shareholders		922		922		922		2,766		2,766
Total NOI	$	339,565	$	340,639	$	342,819	$	1,026,024	$	1,029,862

Same Store NOI	$	327,267	$	328,280	$	332,973	$	990,130	$	1,001,513
Non-Same Store and Other NOI		12,298		12,359		9,846		35,894		28,349
Total NOI	$	339,565	$	340,639	$	342,819	$	1,026,024	$	1,029,862

RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre AND ADJUSTED EBITDAre

Dollars in thousands	Three Months Ended				Twelve Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		December 31, 2023
Net income	$	118,230	$	113,732	$	535,370	$	567,831
Depreciation and amortization		146,722		146,702		575,652		565,063
Interest expense		42,726		36,651		162,931		149,234
Income tax expense		670		(209)		4,633		4,744
EBITDA		308,348		296,876		1,278,586		1,286,872
Loss on sale of depreciable real estate assets		—		75		26		62
Gain on consolidation of third-party development ⁽¹⁾		(11,033)		—		(11,033)		—
Adjustments to reflect MAA’s share of EBITDAre of an unconsolidated affiliate		340		340		1,356		1,350
EBITDAre		297,655		297,291		1,268,935		1,288,284
Loss (gain) on embedded derivative in preferred shares ⁽¹⁾		18,257		11,250		(5,940)		(18,528)
Gain on sale of non-depreciable real estate assets		—	—			—		(54)
Loss (gain) on investments ⁽¹⁾		648		6,547		(7,369)		(4,449)
Casualty related (recoveries) charges, net ⁽¹⁾		(5,714)		217		(9,272)		980
Gain on debt extinguishment ⁽¹⁾		—		(57)		—		(57)
Legal costs, settlements and (recoveries), net ⁽¹⁾⁽²⁾		—		—		5,146		(4,454)
Adjusted EBITDAre	$	310,846	$	315,248	$	1,251,500	$	1,261,722


⁽¹⁾	Included in Other non-operating expense (income) in the Consolidated Statements of Operations.

⁽²⁾	During the twelve months ended September 30, 2024, in accordance with its accounting policies, MAA recognized $8.5 million of accrued legal defense costs that are expected to be incurred through July 2027.

RECONCILIATION OF UNSECURED NOTES PAYABLE AND SECURED NOTES PAYABLE TO NET DEBT

Dollars in thousands
	September 30, 2024		December 31, 2023
Unsecured notes payable	$	4,515,733	$	4,180,084
Secured notes payable		360,235		360,141
Total debt		4,875,968		4,540,225
Cash and cash equivalents		(50,232)		(41,314)
Net Debt	$	4,825,736	$	4,498,911

RECONCILIATION OF TOTAL ASSETS TO GROSS ASSETS

Dollars in thousands
	September 30, 2024		December 31, 2023
Total assets	$	11,756,252	$	11,484,503
Accumulated depreciation		5,217,893		4,864,690
Accumulated depreciation for Assets held for sale ⁽¹⁾		10,367		—
Gross Assets	$	16,984,512	$	16,349,193


⁽¹⁾	Included in Assets held for sale in the Consolidated Balance Sheets.

RECONCILIATION OF REAL ESTATE ASSETS, NET TO GROSS REAL ESTATE ASSETS

Dollars in thousands
	September 30, 2024		December 31, 2023
Real estate assets, net	$	11,439,345	$	11,183,905
Accumulated depreciation		5,217,893		4,864,690
Assets held for sale, net		15,321		—
Accumulated depreciation for Assets held for sale ⁽¹⁾		10,367		—
Cash and cash equivalents		50,232		41,314
Gross Real Estate Assets	$	16,733,158	$	16,089,909


⁽¹⁾	Included in Assets held for sale in the Consolidated Balance Sheets.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDAre

For purposes of calculations in this release, Adjusted Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or Adjusted EBITDAre, represents EBITDAre further adjusted for items that are not considered part of MAA’s core operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares, gain or loss on sale of non-depreciable assets, gain or loss on investments, casualty related charges (recoveries), net, gain or loss on debt extinguishment and legal costs, settlements and (recoveries), net. As an owner and operator of real estate, MAA considers Adjusted EBITDAre to be an important measure of performance from core operations because Adjusted EBITDAre excludes various income and expense items that are not indicative of operating performance. MAA’s computation of Adjusted EBITDAre may differ from the methodology utilized by other companies to calculate Adjusted EBITDAre. Adjusted EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Core Adjusted Funds from Operations (Core AFFO)

Core AFFO is composed of Core FFO less recurring capital expenditures. Because net income attributable to noncontrolling interests is added back, Core AFFO, when used in this release, represents Core AFFO attributable to common shareholders and unitholders. Core AFFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers Core AFFO to be an important measure of performance from operations because Core AFFO measures the ability to control revenues, expenses and recurring capital expenditures.

Core Funds from Operations (Core FFO)

Core FFO represents FFO as adjusted for items that are not considered part of MAA’s core business operations such as adjustments related to the fair value of the embedded derivative in the MAA Series I preferred shares; gain or loss on sale of non-depreciable assets; gain or loss on investments, net of tax; casualty related charges (recoveries), net; gain or loss on debt extinguishment; legal costs, settlements and (recoveries), net, and mark-to-market debt adjustments. Because net income attributable to noncontrolling interests is added back, Core FFO, when used in this release, represents Core FFO attributable to common shareholders and unitholders. While MAA’s definition of Core FFO may be similar to others in the industry, MAA’s methodology for calculating Core FFO may differ from that utilized by other REITs and, accordingly, may not be comparable to such other REITs. Core FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that Core FFO is helpful in understanding its core operating performance between periods in that it removes certain items that by their nature are not comparable over periods and therefore tend to obscure actual operating performance.

EBITDA

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization, or EBITDA, is composed of net income plus depreciation and amortization, interest expense, and income taxes. As an owner and operator of real estate, MAA considers EBITDA to be an important measure of performance from core operations because EBITDA excludes various expense items that are not indicative of operating performance. EBITDA should not be considered as an alternative to Net income as an indicator of operating performance.

EBITDAre

For purposes of calculations in this release, Earnings Before Interest, Income Taxes, Depreciation and Amortization for real estate, or EBITDAre, is composed of EBITDA further adjusted for the gain or loss on sale of depreciable assets, gain on consolidation of third-party development and adjustments to reflect MAA’s share of EBITDAre of an unconsolidated affiliate. As an owner and operator of real estate, MAA considers EBITDAre to be an important measure of performance from core operations because EBITDAre excludes various expense items that are not indicative of operating performance. While MAA’s definition of EBITDAre is in accordance with NAREIT’s definition, it may differ from the methodology utilized by other companies to calculate EBITDAre. EBITDAre should not be considered as an alternative to Net income as an indicator of operating performance.

Funds Available for Distribution (FAD)

FAD is composed of Core FFO less total capital expenditures, excluding development spending, property acquisitions, capital expenditures relating to significant casualty losses that management expects to be reimbursed by insurance proceeds and corporate related capital expenditures. Because net income attributable to noncontrolling interests is added back, FAD, when used in this release, represents FAD attributable to common shareholders and unitholders. FAD should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. As an owner and operator of real estate, MAA considers FAD to be an important measure of performance from core operations because FAD measures the ability to control revenues, expenses and capital expenditures.

Funds From Operations (FFO)

FFO represents net income available for MAA common shareholders (calculated in accordance with GAAP) excluding gain or loss on disposition of operating properties, asset impairment and gain on consolidation of third-party development, plus depreciation and amortization of real estate assets, net income attributable to noncontrolling interests and adjustments for joint ventures. Because net income attributable to noncontrolling interests is added back, FFO, when used in this release, represents FFO attributable to common shareholders and unitholders. While MAA’s definition of FFO is in accordance with NAREIT’s definition, it may differ from the methodology for calculating FFO utilized by other companies and, accordingly, may not be comparable to such other companies. FFO should not be considered as an alternative to Net income available for MAA common shareholders as an indicator of operating performance. MAA believes that FFO is helpful in understanding operating performance in that FFO excludes depreciation and amortization of real estate assets. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Gross Assets

Gross Assets represents Total assets plus Accumulated depreciation and Accumulated depreciation for Assets held for sale. MAA believes that Gross Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

NON-GAAP FINANCIAL MEASURES (Continued)

Gross Real Estate Assets

Gross Real Estate Assets represents Real estate assets, net plus Accumulated depreciation, Assets held for sale, net, Accumulated depreciation for Assets held for sale, Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes that Gross Real Estate Assets can be used as a helpful tool in evaluating its balance sheet positions. MAA believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies.

Net Debt

Net Debt represents Unsecured notes payable and Secured notes payable less Cash and cash equivalents and 1031(b) exchange proceeds included in Restricted cash. MAA believes Net Debt is a helpful tool in evaluating its debt position.

Net Operating Income (NOI)

Net Operating Income represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties held during the period, regardless of their status as held for sale. NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Non-Same Store and Other NOI

Non-Same Store and Other NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Non-Same Store and Other Portfolio during the period. Non-Same Store and Other NOI includes storm-related expenses related to severe weather events, including hurricanes and winter storms. Non-Same Store and Other NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Non-Same Store and Other NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

Same Store NOI

Same Store NOI represents Rental and other property revenues less Total property operating expenses, excluding depreciation and amortization, for all properties classified within the Same Store Portfolio during the period. Same Store NOI excludes storm-related expenses related to severe weather events, including hurricanes and winter storms. Same Store NOI should not be considered as an alternative to Net income available for MAA common shareholders. MAA believes Same Store NOI is a helpful tool in evaluating operating performance because it measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance.

OTHER KEY DEFINITIONS

Average Effective Rent per Unit

Average Effective Rent per Unit represents the average of gross rent amounts after the effect of leasing concessions for occupied units plus prevalent market rates asked for unoccupied units, divided by the total number of units. Leasing concessions represent discounts to the current market rate. MAA believes average effective rent is a helpful measurement in evaluating average pricing. It does not represent actual rental revenue collected per unit.

Average Physical Occupancy

Average Physical Occupancy represents the average of the daily physical occupancy for an applicable period.

Development Communities

Communities remain identified as development until certificates of occupancy are obtained for all units under development. Once all units are delivered and available for occupancy, the community moves into the Lease-up Communities portfolio.

Lease-up Communities

New acquisitions acquired during lease-up and newly developed communities remain in the Lease-up Communities portfolio until stabilized. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days.

Non-Same Store and Other Portfolio

Non-Same Store and Other Portfolio includes recently acquired communities, communities in development or lease-up, communities that have been disposed of or identified for disposition, communities that have experienced a significant casualty loss, stabilized communities that do not meet the requirements defined by the Same Store Portfolio, retail properties and commercial properties.

Resident Turnover

Resident turnover represents resident move outs excluding transfers within the Same Store Portfolio as a percentage of expiring leases on a trailing twelve month basis as of the end of the reported quarter.

Same Store Portfolio

MAA reviews its Same Store Portfolio at the beginning of each calendar year, or as significant transactions or events warrant. Communities are generally added into the Same Store Portfolio if they were owned and stabilized at the beginning of the previous year. Communities are considered stabilized when achieving 90% average physical occupancy for 90 days. Communities that have been approved by MAA’s Board of Directors for disposition are excluded from the Same Store Portfolio. Communities that have experienced a significant casualty loss are also excluded from the Same Store Portfolio.

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SOURCE MAA

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Lastest news News

This Boeing Analyst Is No Longer Bullish; Here Are Top 5 Downgrades For Wednesday

31.10.2024 by admin

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

Considering buying BA stock? Here’s what analysts think:

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News Real estate

ACRES COMMERCIAL REALTY CORP. REPORTS RESULTS FOR THIRD QUARTER 2024

31.10.2024 by admin

UNIONDALE, N.Y., Oct. 30, 2024 /PRNewswire/ — ACRES Commercial Realty Corp. ACR (“ACR” or the “Company”), a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures, today reported results for the quarter ended September 30, 2024. ACR’s GAAP net income allocable to common shares was $2.8 million, or $0.36 per share-diluted, for the quarter ended September 30, 2024.

“We are proud of the diligent efforts of the ACRES team in maintaining a robust and high-quality investment portfolio,” said ACRES Commercial Realty Corp. President & CEO Mark Fogel. “Our unwavering focus remains on identifying high-quality opportunities while steadfastly protecting and enhancing shareholder value.”

ACR issued a full, detailed presentation of its results for the quarter ended September 30, 2024 that can be viewed at www.acresreit.com.

Earnings Call Details

ACR will host a live conference call on October 31, 2024 at 10:00 a.m. Eastern Time to discuss its third quarter 2024 operating results. The conference call can be accessed by dialing 1-800-274-8461 (U.S. domestic) or 1-203-518-9814 (International), Conference ID ACRES or from the investor relations section of the Company’s website at www.acresreit.com.

For those unable to listen to the live conference call, a replay will be available on the Company’s website and telephonically through November 14, 2024 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), with the passcode 11156888.

About ACRES Commercial Realty Corp.

ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate properties through direct ownership and joint ventures. The Company is externally managed by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a private commercial real estate lender exclusively dedicated to nationwide middle market commercial real estate lending with a focus on multifamily, student housing, hospitality, industrial and office property in top U.S. markets. For more information, please visit the Company’s website at www.acresreit.com or contact investor relations at IR@acresreit.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “continue,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “look forward” or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission, including, without limitation, factors impacting whether we will be able to maintain our sources of liquidity and whether we will be able to identify sufficient suitable investments to increase our originations. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

View original content to download multimedia:https://www.prnewswire.com/news-releases/acres-commercial-realty-corp-reports-results-for-third-quarter-2024-302291718.html

SOURCE ACRES Commercial Realty Corp.

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US GDP Rises 2.8% In Q3, But Can The Momentum Last? What 6 Top Economists Are Saying

31.10.2024 by admin

The U.S. economy grew at a robust 2.8% in the third quarter, but beneath the strong headline number, economists see diverging forces at play.

While the gross domestic product (GDP) growth rate marked a slight slowdown from the 3% pace recorded in the second quarter and came in also below the expected 3%, it still highlights the resilience of the U.S. economy amid a backdrop of elevated cost of borrowing and global geopolitical uncertainties.

From surging consumer spending to an unusual spike in defense spending, six top analysts weighed in on what’s fueling economic growth and whether it can last further.

‘Economic Exceptionalism’

According to Mohamed El-Erian, Allianz advisor and president at Queen’s College, the third-quarter GDP numbers highlight what he calls “U.S. economic exceptionalism.”

Even with growth slightly below expectations, El-Erian indicates that America’s economy is outperforming other advanced nations, thanks largely to strong consumer spending and federal budgetary expenditures.

“Personal consumption grew by 3.7%, the highest rate since the first quarter of 2023; and defense spending increased by 14.9%, leading the expansionary fiscal impulse,” El-Erian stated.

Jeffrey Roach, chief economist at LPL Financial, also highlighted the unusual spike in defense spending as a significant factor in the third quarter growth data, but he’s cautious about its sustainability.

“Defense spending spiked almost 15% annualized, the highest since 2003 and will likely revert next quarter,” Roach stated, suggesting that this was a temporary boost.

Roach remains optimistic about the durability of consumer spending, which he views as the real anchor of growth. “Private consumption patterns appear sustainable,” he said. On investments, he flagged that the technological sector is boosting CAPEX driven by the “A.I.. craze”.

Inflation data for third quarter provided mixed signals. Core PCE, the Federal Reserve’s preferred measure of inflation, increased slightly more than expected. Goldman Sachs chief economist Jan Hatzius indicated that the composition of growth was solid, but core inflation nudged upward, leading the firm to raise its September core PCE estimate to 0.26%. On an annual basis, this would place core PCE at 2.65% and headline PCE at 2.09%.

Tailwinds For The Fed

Bill Adams, chief economist at Comerica Bank, highlighted that the outcome marks the sixth consecutive quarter of annualized growth above 2.5%, the longest stretch since 2006.

Adams predicted that the Fed will cut rates by a quarter point after Election Day.

Jamie Cox, managing partner for Harris Financial Group, called the third quarter report an ideal scenario for the Federal Reserve, with solid growth accompanied by moderating inflation.

“Growth up, inflation down is precisely what you want to see,” Cox stated, noting that a steady growth rate paired with easing inflation gives the Fed more flexibility in easing interest rates.

James Thorne, chief market strategist at WellingtonAltus, argued that “the Federal Reserve ought to consider front-loading interest rate cuts” to preemptively counter economic deceleration.

He expects interest rates to fall to 2.75%, given that the Fed’s current rate stance is too high given the economy’s cooling trajectory. Thorne called for a 50-basis-point cut to help counterbalance the “downward momentum in the economy.”

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Wall Street Mixed, Semiconductors Tumble As AMD Disappoints, Alphabet Rallies, SMCI Plummets: What's Driving Markets Wednesday?

31.10.2024 by admin

Wall Street experienced a mixed trading session on Wednesday as investors weigh a batch of corporate earnings and fresh economic data.

The U.S. economy grew at an annualized rate of 2.8% in the third quarter, according to advance estimates. This marks a slight deceleration from the previous quarter’s 3% pace and falls short of analyst expectations of 3%.

On the employment front, the ADP National Employment report showed private payrolls surged by 233,000 in October —well above the 115,000 forecast and a significant increase from the revised 159,000 in September. This stronger-than-expected job growth underscores the resilience of the labor market ahead of Friday’s official jobs report.

In corporate news, Advanced Micro Devices Inc. AMD dropped 10% after posting quarterly results that met expectations but failed to excite investors. The decline in AMD shares dragged down the broader semiconductor sector, with the iShares Semiconductor ETF SOXX sliding over 3%.

In contrast, Alphabet Inc. jumped more than 5% following a robust earnings report that beat Wall Street expectations, boosting optimism around mega-cap tech stocks.

At midday, major U.S. indexes were trading mixed. The S&P 500 and the tech-heavy Nasdaq 100 remained flat, while the small-cap Russell 2000 outperformed with a 0.5% gain.

Gold prices extended all-time highs, up 0.5% to $2,787 per ounce. Oil prices surged 2%, fueled by supply concerns.

Bitcoin BTC/USD eased 0.8% to $72,100, pulling back from recent highs.

Wednesday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %
Russell 2000	2,246.40	0.4%
Dow Jones	42,309.80	0.2%
S&P 500	5,838.86	0.1 %
Nasdaq 100	20,505.98	-0.1%

According to Benzinga Pro data:

The SPDR S&P 500 ETF Trust SPY inched 0.1% higher to $582.16.
The SPDR Dow Jones Industrial Average DIA rose 0.2% to $423.25.
The tech-heavy Invesco QQQ Trust Series QQQ eased 0.2% to $499.18.
The iShares Russell 2000 ETF IWM rose 0.5% to $222.76.
The Communication Services Select Sector SPDR Fund XLC outperformed, up by 1.3%. The Technology Select Sector SPDR Fund XLK lagged, down 0.9%.

Wednesday’s Stock Movers

Super Micro Computer Inc. SMCI tumbled 33% after auditors Ernst & Young announced their resignation amid reporting issues, five days ahead of the company’s earnings report.

Large-cap stocks reacting to earnings were:

Eli Lilly and Company LLY, down 8%,
Visa Inc. V, up 3.6%,
AbbVie Inc. ABBV up over 5%,
Caterpillar Inc. CAT, down 1.4%,
Chubb Ltd. CB, down 1%,
Mondelez International Inc. MDLZ, up 1%,
Chipotle Mexican Grill Inc. CMG, down over 7%,
Snap Inc. SNAP, up 15%,
Reddit Inc. RDDT, up 38%,
Automatic Data Processing Inc. ADP, up 1%,
Garmin Ltd. GRMN, up 24%.

Major companies reporting earnings after the close Wednesday include Microsoft Corp. MSFT, Meta Platforms Inc. META, Amgen Inc. AMGN, and Booking Holdings Inc. BKNG.

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German Economy Faces Strong Headwinds Despite Return To Growth

31.10.2024 by admin

The German economy faces strong headwinds despite data showing that Europe’s largest exporter of goods returned to economic growth in the third quarter, beating analysts’ estimates.

The economy grew by 0.2% quarter-on-quarter in Q3, from an initial -0.1% in Q2, the Federal Statistical Office (Destatis) reported today. But it shrank by 0.2% on the year in Q3 after price and calendar adjustments, Destatis said. Analysts had a Q3 forecast of -0.1%.

German inflation accelerated to 2% in October from 1.6% in September, or well above the expected 1.8%, Destatis data showed today. Food prices, which accelerated 2.3% in October from 1.6% in September, and higher energy prices drove inflation higher.

The German DAX40 declined 1.1% today, closing at 19,266.

German Economy Remains Stuck In Stagflation

Though positive, the German economy, Europe’s largest, faces considerable challenges due to both cyclical and structural headwinds.

“The German economy avoided a technical recession in the third quarter, showing unexpected growth,” ING Think said. “However, this does not change the fact that the economy remains stuck in stagnation.”

Germany revised its second quarter’s contraction to -0.3% quarter-on-quarter from the initial -0.1%. This “somewhat dampened” the “positive surprise,” ING Think said.

The rise in GDP growth coincided with an improvement in consumer sentiment in November, though the level still remains low, a survey showed on Tuesday. The Gfk German Consumer Climate Index is forecast to rise by 2.7 points to -18.3 points in November compared to the previous month.

German Consumer Climate, Source: Nielsen

German Economy Hurt By Crises, Wars

Although this was the highest level in Gfk German Consumer Climate Index since April 2022, Germans are “pessimistic about overall economic development,” the survey said.

“The uncertainty caused by crises, wars and rising prices is still very much present,” Rolf Bürkl, consumer expert at the Nuremberg Institute for Market Decisions, said.

“Reports of a rising number of company insolvencies and plans to cut jobs or relocate production abroad are also preventing a more significant recovery in consumer sentiment,” Bürkl added.

Volkswagen (OTC:VWAGY), for example, announced on Monday the closure of three German factories and potential mass layoffs. High operating costs, a weak electric vehicle lineup, and diminishing demand in key markets drove the decision.

The group is closing factories to cut costs while a looming trade war with China weighs on sentiment after the European Union (EU) imposed tariffs on electric vehicles.

Volkswagen’s Costs Rise, As Layoffs Loom

Facing pressure from intense competition and rising energy and labor expenses, Volkswagen has taken unprecedented steps to close plants on German soil. This is the first time it had done so in the company’s 87-year history.

Volkswagen brand CEO Thomas Schäfer pointed out the problems in domestic production, as plants operate 25-50% above the firm’s target expenses. “We are not productive enough at our German locations,” Schäfer stated, stressing the urgent need for cost cuts.

Meanwhile, Volkswagen’s works council head Daniela Cavallo called the plan “a starvation, a weakening in installments” that threatens “tens of thousands of jobs in Germany.”

“Management is absolutely serious about all this,” she said. “This is not saber-rattling in the collective bargaining round.”

Volkswagen car sales in Europe, Source: ACEA

German Economy Will Feel Strain Of Plant Closures

The closures are poised to further strain the German economy, sparking concerns about the long-term future of its industrial economy. GDP is already forecasted to contract for a second consecutive year.

Volkswagen’s main restructuring plan sees salary freezes for 2025 and 2026 and a reduction in existing salary levels by at least 10%. It will abolish one-off payments for workers who have stayed at the company for 25 and 35 years. This could impact up to 140,000 workers.

In response, workers protest the proposed changes in Wolfsburg, home to the company’s headquarters. The powerful IG Metall union has threatened strikes by December if no agreement is reached.

VW VLKAF shares fell to €88.92, reaching the second-lowest point in 2024, far below the intra-year peak of €123.30.

EU Tariffs On China’s EVs Will Hurt German Economy

As Volkswagen shutters plants, the EU has introduced new tariffs on electric vehicles (EVs) imported from China. This will escalate trade tensions over Chinese subsidies, which may have a significant impact on German car manufacturers.

As of October 30, the EU introduced tariffs ranging between 7.8% and 35.3% on Chinese EV makers. This is in addition to the existing 10% import duty, with the highest surcharge applied to vehicles from Chinese state-owned automaker SAIC.

The Chinese Ministry of Commerce dismissed the tariffs as “trade protectionism” and has vowed to safeguard Chinese businesses’ interests. It lodged a complaint with the World Trade Organization.

Volkswagen’s financial chief, Arno Antlitz, cautioned that “under a tariffs regime, an industry only loses time.” He warned that Chinese automakers might still access the market through European-based production.

This tactic is underway, with Chinese automakers BYD and Leapmotor setting up production facilities in Europe and Turkey to sidestep tariffs.

“In a world in which, at least in manufacturing, China has become the new Germany,’ Germany’s old macro business model of cheap energy and easily accessible large export markets is no longer working,” ING Think said. “Looking ahead, there is very little reason to expect any imminent relief.”