Company: VRE
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001628280-25-045884
Chunk: 132

Company: Veris Residential, Inc.
Filing Date: 2025-10-22
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 software and owners and/or operators of multifamily housing, including us, which utilize this software. The Company was formally served with the complaint on April 30, 2025. The complaint alleges violation of the Sherman Act, the New Jersey Antitrust Act, and the New Jersey Consumer Fraud Act. We believe this lawsuit is without merit and we intend to vigorously defend against it. As this proceeding is in the early stages, it is not possible for the Company to predict the outcome nor is it possible to estimate the amount of loss, if any, which may be associated with an adverse decision in any of this matter.OFFICE AND GROUND LEASE AGREEMENTSFuture minimum rental payments under the terms of all non-cancelable office and ground leases under which the Company is the lessee, as of September 30, 2025 and December 31, 2024, are as follows (dollars in thousands):YearAs of September 30, 2025Amount October 1 through December 31, 2025$32020261,27920271,280202849420292222030 through 2101 31,226Total lease payments34,821Less: imputed interest(28,920)Total$5,901 YearAs of December 31, 2024Amount2025$1,27920261,27920271,280202849420292222030 through 2101 31,225Total lease payments35,779Less: imputed interest(29,235)Total$6,544Office and ground lease expenses incurred by the Company amounted to $0.7 million for each of the three months ended September 30, 2025 and 2024, and $2.0 million and $1.9 million for the nine months ended September 30, 2025 and 2024, respectively.

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The Company had capitalized operating leases for one office and two ground leases, which had balances of $2.5 million and $1.8 million, respectively, at September 30, 2025. Such amounts represent the net present value (“NPV”) of future payments detailed above. The one office and two ground leases used incremental borrowing rates of 6.0 percent and 7.6 percent, respectively, to arrive at the NPV and have weighted average remaining lease terms of 2.5 years and 75.9 years, respectively. These rates were arrived at by adjusting the fixed rates of the Company’s mortgage debt