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The company witnessed a 20% increase in Core Funds From Operations (FFO) per diluted share, reaching $0.53 compared to the previous year. This growth was driven by a 17.6% rise in net operating income (NOI), surpassing the upper end of their guidance. The NOI margin also improved to 64% in 2023 from 62% in 2022.
Veris Residential sold over $700 million in non-strategic assets, including eight properties and four land parcels, and signed a contract to sell its last office property, Harborside 5, for $85 million in January 2024. The company also refinanced $400 million of debt and reduced overall indebtedness by $50 million.
The REIT reinstated its quarterly dividend and increased it by 5% in the fourth quarter. It was also recognized by Nareit for its sustainability and diversity, equity, and inclusion (DEI) efforts.
The company’s Same Store multifamily Blended Net Rental Growth Rate was 5.0% for the quarter and 9.3% for the year. The CEO, Mahbod Nia, remarked on the successful transformation of Veris Residential into a pure-play multifamily REIT and expressed optimism for the company’s potential for continued value creation.
Veris Residential’s 2024 guidance anticipates Same Store Revenue Growth of 4-5%, Same Store Expense Growth of 5-6%, and Same Store NOI Growth of 2.5-5%.
As of February 20, 2024, the company’s available liquidity stands at approximately $95 million, with virtually all of its debt being hedged or fixed. The weighted average interest rate of the debt portfolio is 4.5%, with a maturity of 3.7 years.
The company’s financial performance, including the increase in Core FFO, the sale of non-strategic assets, and the improvement in NOI, suggests a strategic focus on optimizing operations and strengthening the balance sheet.
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