Company: VRE
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001628280-25-045884
Chunk: 20

Company: Veris Residential, Inc.
Filing Date: 2025-10-22
Form: 10-Q
Item: Part I, Item 3
Chunk 20
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Table of Contents

Item 3. Quantitative And Qualitative Disclosures About Market Risk

The Company is exposed to market risk from its indebtedness primarily from changes in market interest rates. The Company monitors interest rate risk as an integral part of its overall risk management. The Company manages its exposure to interest rate risk by utilizing fixed rate indebtedness or by hedging the majority of its floating rate indebtedness with interest rate swaps or caps, as appropriate. 

As of September 30, 2025, the Company's indebtedness with an aggregate principal balance of $1.4 billion had an estimated aggregate fair value of $1.5 billion.

Changes in interest rates impact the fair value of the Company's fixed rate debt instruments, computed using current market yields. Approximately $1.2 billion of the Company’s long-term debt as of September 30, 2025 bears interest at fixed rates with a weighted average coupon of 4.71% and therefore the fair value of these instruments is affected by changes in market interest rates. If market rates of interest increased or decreased by 100 basis points, the fair value of the Company’s fixed rate debt as of September 30, 2025 would be approximately $30.0 million lower or higher, respectively. 

The effective interest rates on the Company’s $216.0 million variable rate debt hedged by interest-rate caps, as of September 30, 2025 ranged from SOFR plus 141 basis points to SOFR plus 239 basis points. Assuming interest-rate caps are not in effect as of September 30, 2025, if market rates of interest on the Company’s variable rate debt increased or decreased by 100 basis points, then the increase or decrease in interest costs on the Company’s variable rate debt would be approximately $2.2 million annually.

The following table presents principal cash flows (in thousands) based upon maturity dates of the debt obligations and the related weighted-average interest rates by expected maturity dates for the fixed rate debt.

September 30, 2025 Debt, including current portion($s in thousands)10/1/2025 - 12/31/2025 2026202720282029Thereafter Sub-totalOther (a) (b)Total FairValueFixed Rate & Hedged Debt, including Revolving Credit Facility$2,476$419,283$300,644$345,457$311,624$62,584$1,442,068$(8,531)$1,433,537$