Company: VRE
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000924901-25-000028
Chunk: 48

Company: Veris Residential, Inc.
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 1
Chunk 48
---
2025, the Company had six interest rate caps outstanding and in effect with a notional amount of $441.5 million designated as cash flow hedges of interest rate risk, and one undesignated interest rate cap outstanding and in effect with a notional amount of $150.0 million.The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of March 31, 2025 and December 31, 2024 (dollars in thousands):Derivative Instruments Fair ValueBalance sheet locationMarch 31,2025December 31,2024Interest rate caps designated as hedging instruments$3,122 $4,953 Deferred charges and other assets, netInterest rate caps not designated as hedging instruments269525 Deferred charges and other assets, net

21

The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024, respectively (dollars in thousands):Derivatives in Cash Flow Hedging RelationshipsAmount of Gain or (Loss) Recognized in OCI on Derivative (a) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (a) (b) Total Amount of Interest Expense presented in the Consolidated Statements of OperationsThree months ended March 31,Three months ended March 31,Three months ended March 31,202520242025202420252024Interest Rate Caps$(901)$966 $(141)$1,058 $(22,960)$(21,500)(a)Amounts exclude net losses of $0.3 million and net gains of $1.2 million recognized on unconsolidated jointly owned investments during the three months ended March 31, 2025 and 2024, respectively.(b)The gain or loss reclassified from Accumulated OCI into Income is recorded in Interest Expense.Credit-risk-related Contingent FeaturesThe Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. Specifically, the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness.

As of March 31,