Company: VRE
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000924901-25-000051
Chunk: 121

Company: Veris Residential, Inc.
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 8
Chunk 121
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The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates $1.0 million will be reclassified as an increase to interest expense.As of June 30, 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.  In July 2025, the Company repaid the $200 million outstanding balance on the 2024 Term Loan.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 June 30, 2025 and December 31, 2024 (dollars in thousands):Derivative Instruments Fair ValueBalance sheet locationJune 30,2025December 31,2024Interest rate caps designated as hedging instruments$2,293 $4,953 Deferred charges and other assets, netInterest rate caps not designated as hedging instruments— 525 Deferred charges and other assets, netThe 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 and six months ended June 30, 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 June 30,Six months ended June 30,Three months ended June 30,Six months ended June 30,Three months ended June 30,Six months ended June 30,202520242025202420252024202520242025202420252024Interest Rate Caps$110 $187 $(790)$1,152 $63 $1,067 $(77)$2,126 $(24,604)$(21,676)$(47,564)$(43,176)(a)Amounts exclude net losses of $