Company: VRE
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000924901-25-000011
Chunk: 47

Company: Veris Residential, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 16
Chunk 47
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, respectively.  

66

(c)The value of acquired above market lease intangibles in which the Company is the lessee and in-place lease intangibles in which the Company is the lessor are amortized to expense over the remaining initial terms of the respective leases. The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $0.5 million, $2.0 million and $1.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. (d)This amount has a corresponding liability of $6.5 million and $7.4 million as of December 31, 2024 and 2023, respectively, which is included in Accounts payable, accrued expense and other liabilities. See Note 12: Commitments and Contingencies – Office and Ground Lease Agreements for further details.DERIVATIVE FINANCIAL INSTRUMENTSCash Flow Hedges of Interest Rate RiskThe Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate caps as part of its interest rate risk management strategy. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium.The changes in the fair value of derivatives designated and that qualify as cash flow hedges is 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 $0.8 million will be reclassified as an increase to interest expense. The Company entered into the following interest rate caps during the year ended December 31, 2024 (dollars in thousands):Hedged ItemDesignationEffective DateMaturity DateNotional AmountStrike RateTerm LoanCash Flow6/28/20247/22/2026$55,000 3.50 %RiverHouse 9 at Port Imperial MortgageCash Flow7/1/20247/1/2026$110,000 3.50 %Term LoanCash Flow8/1/20247/22/2026$43,000 3.50 %Term Loan