Executive Summary

Core FFO per diluted share rose to $0.20, and management raised FY25 Core FFO guidance to $0.67–$0.68 (from $0.63–$0.64) after recognizing ~$4M of one-time tax appeal refunds; deleveraging accelerated with Net Debt/EBITDA (Normalized) down to 10.0x and targeted to ~9x upon closing the Harborside 8/9 land sale in 1Q next year .
Reported diluted GAAP EPS was $0.80, aided by $91.0M of gains on asset sales; revenue was $73.44M, with steady operational KPIs but higher non-controllable expenses (taxes and insurance) pressuring same-store NOI margin sequentially and YoY .
Versus S&P Global consensus, Q3 beat on FFO/share and GAAP EPS but modestly missed on revenue; beats/misses were driven by asset sale gains, tax appeal refunds (+$0.04 to Core FFO), and higher Jersey City taxes (-$0.01 impact in Q3) . Consensus values retrieved from S&P Global.
Stock-reaction catalysts: continued asset sales (disposition target lifted to $650M), visible deleveraging path (potentially below 8x by YE26), and raised Core FFO outlook; near-term catalyst is Harborside 8/9 closing in 1Q with ~$0.04 run-rate Core FFO contribution .

What Went Well and What Went Wrong

What Went Well
- Core FFO/share improved to $0.20 and FY25 Core FFO guidance was raised to $0.67–$0.68 (second consecutive raise), reflecting ~$4M tax appeal refunds; CEO emphasized balance sheet transformation and “outsized earnings growth” .
- Dispositions/Deleveraging: $542M of non-core asset sales closed/under contract YTD (target raised to $650M); Net Debt/EBITDA (Normalized) improved to 10.0x with path to ~9.0x post Harborside 8/9 and potentially ~8.0x by YE26 .
- Operations resilient: same-store blended net rental growth +3.9% in Q3; occupancy 95.8% ex-Liberty Towers (same-store 94.7%) and average revenue/home rose to $4,255; GRESB sector leadership recognized .
What Went Wrong
- Same-store NOI margin compressed to 66.0% (vs 69.3% YoY and 68.1% sequential), with non-controllable expenses (taxes, insurance) driving a 2.7% YoY decline in same-store NOI for the quarter .
- Jersey City tax rate increases (~4.5%) and pool rebalancing pressured quarterly same-store results; CFO noted the Q3 same-store print was an anomaly given the prior-year comp and this year’s tax reset .
- Revenue modestly missed S&P Global consensus despite solid rent growth and occupancy, underscoring the impact of higher non-controllable costs and portfolio mix changes. Consensus values retrieved from S&P Global.

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($USD Millions)	$68.18	$75.93	$73.44
Diluted EPS (GAAP)	$(0.10)	$0.12	$0.80
FFO/share (diluted)	$0.13	$0.36	$0.12
Core FFO/share (diluted)	$0.17	$0.17	$0.20
Same-Store NOI ($USD Millions, at share)	$46.68	$45.995	$45.44
Same-Store NOI Margin (%)	69.3%	68.1%	66.0%
Same-Store Occupancy (%)	95.0%	93.3%	94.7%

Versus S&P Global consensus (Q3 2025):

Revenue: Actual $73.44M vs $73.71M consensus* → slight miss .
GAAP EPS: Actual $0.80 vs $(0.07) consensus* → beat, driven by $91.0M gains on asset sales .
FFO/share (REIT): Actual $0.20 vs $0.16 consensus* → beat (helped by ~$0.04 tax appeal refunds; partially offset by ~$0.01 higher Jersey City taxes) .
Consensus values retrieved from S&P Global.

Revenue composition

Revenue Component ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Revenue from Leases	$62.23	$69.35	$67.63
Management Fees	$0.79	$0.77	$0.52
Parking Income	$3.90	$4.38	$3.89
Other Income	$1.25	$1.44	$1.40
Total Revenues	$68.18	$75.93	$73.44

Operating KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Same-Store Blended Net Rental Growth (Quarter)	5.0% (tradeouts proxy)	4.7%	3.9%
Same-Store Occupancy (%)	95.0%	93.3%	94.7%
Average Revenue per Home (Total)	$4,117	$4,226	$4,255

Balance sheet and liquidity (quarter-end)

Liquidity: $274M; Weighted average interest rate 4.76%; WAM 2.6 years; all debt hedged or fixed .
Net Debt $1.408B; TTM Adjusted EBITDA (Normalized) $141.2M; Net Debt/EBITDA (Normalized) 10.0x .
Dividend: $0.08 per share paid Oct 10 (record date Sep 30) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Core FFO per Share	FY2025	$0.63–$0.64 (July)	$0.67–$0.68	Raised
Net Income per Share	FY2025	$(0.22)–$(0.21)	$0.64–$0.65	Raised
Realized/Unrealized Gains on Sales (per share)	FY2025	—	$(0.82)	Added disclosure
Depreciation (per share)	FY2025	$0.85	$0.85	Maintained
Same-Store Revenue Growth	FY2025	2.2%–2.7%	2.2%–2.7%	Maintained
Same-Store Expense Growth	FY2025	2.4%–2.8%	2.4%–2.8%	Maintained
Same-Store NOI Growth	FY2025	2.0%–2.8%	2.0%–2.8%	Maintained
Non-Core Disposition Target	2025	~$300–$500M initial target (call)	$650M	Raised
Net Debt/EBITDA (Normalized)	Post Harborside 8/9	~9x target	~9x (affirmed)	Affirmed
Long-Term Leverage Target	YE2026	Below 9x (prior plan)	~8x or lower	Lowered target

Notes: Management lifted FY25 Core FFO guidance primarily due to ~$4M tax appeal refunds; CFO called out ~$0.04 boost to Q3 Core FFO and ~$0.01 headwind from finalized Jersey City taxes .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Deleveraging/Asset Sales	Q1: Announced $79M of sales closed/under contract YTD; $100M buyback authorized, none used; Sable consolidation . Q2: ~$448M sales closed/under contract; amended credit facility; guidance raised .	$542M closed/under contract YTD; disposition target increased to $650M; Net Debt/EBITDA (Normalized) improved to 10.0x; ~9.0x after Harborside 8/9 close .	Improving pace and scope
Capital Markets/Buyer Pool	Q2: Lower borrowing spread (grid); revolver/term loan amended .	Early signs of renewed Core Plus interest; smaller assets more liquid; low-5% blended cap rate on Q3 multifamily sales; prioritizing deleveraging over buybacks .	Incrementally constructive
AI/Technology (PRISM)	Not emphasized in Q1/Q2 press releases.	PRISM cited for efficiency; controllable expense growth 1.9% YTD .	Adoption benefits visible
Macro/Supply	Q1/Q2: Resilient ops; modest occupancy softness; rent growth steady .	National rents slowing; Northeast/NYC outperforming (NYC rents +4.8% in Sep); Jersey City resilient, limited new supply .	Mixed macro; strong local
Regional Trends	Q1/Q2: NJ Waterfront strength; portfolio optimization .	Waterfront new lease growth ~6%; 55% of new move-ins from out-of-state; affluent demographic base .	Strong demand mix
Regulatory/Taxes	Q1: Guidance maintained; no specific tax callouts.	Jersey City tax increases (~4.5%) pressured Q3 same-store; expect within FY guidance range .	Headwind absorbed
Sustainability	Notable performance ongoing.	GRESB score 90; sector leader & top performer .	Recognized leadership

Management Commentary

CEO: “We are pleased to raise our disposition target to $650 million, positioning us to potentially delever to below 8x by year-end 2026.”
CEO: “Harborside 8/9 is expected to close early next year… anticipated to generate $0.04 of run-rate earnings while further decreasing net debt to EBITDA to approximately 9 times.”
COO: “Same store blended net rental growth rate of 3.9%… occupancy 95.8% excluding Liberty Towers… average revenue per home to $4,255… retention improving by over 570 bps to 61%.”
CFO: “Core FFO per share was $0.20… +$0.04 from tax appeals on sold assets, offset by ~$0.01 from the finalization of Jersey City property taxes… we are raising Core FFO guidance to $0.67 to $0.68.”

Q&A Highlights

Same-store NOI outlook: Q3 was an “anomaly” due to last year’s favorable non-controllables and this year’s tax reset; no major one-time items expected in Q4; confidence to land within 2.0%–2.8% SSI NOI range .
Renewal pricing/visibility: Only ~0.5% of NOI to renew for Q4; renewals being sent in ~4%–5% range, settling slightly below; occupancy remains strong .
Leverage path: Focus remains on executing the expanded disposition plan; below-8x by YE26 possible; ongoing evaluation of strategic options with Board/SRC .
Capital allocation: $100M buyback seen as accretive but deprioritized in favor of deleveraging given circular impact of leverage on NAV discounts .
Disposition pricing/liquidity: Smaller assets saw broader buyer interest; Q3 multifamily sales around a 5.1% blended cap rate in line with expectations .

Estimates Context

S&P Global consensus vs actual (Q3 2025):
- Revenue: $73.71M consensus* vs $73.44M actual → slight miss .
- GAAP EPS: $(0.07) consensus* vs $0.80 actual → beat, primarily from $91.0M gains on sales .
- FFO/share (REIT): $0.16 consensus* vs $0.20 actual → beat (tax appeals +$0.04; taxes -$0.01) .
Trend: Q1 and Q2 revenues beat consensus; Q3 modest revenue miss but strong FFO/EPS beats. Consensus values retrieved from S&P Global.

Key Takeaways for Investors

Guidance momentum: FY25 Core FFO raised to $0.67–$0.68 on higher confidence and one-time tax refunds; watch for any normalization after the $0.04 benefit .
Balance sheet: Accelerated deleveraging via asset sales; Harborside 8/9 closing is a near-term catalyst for ~9x Net Debt/EBITDA (Normalized) and ~+$0.04 Core FFO run-rate .
Operational resilience: Strong rent growth in the NJ Waterfront and healthy demographic demand underpin revenue durability despite national supply softness .
Expense discipline vs taxes: PRISM-supported cost control contains controllables (1.9% YTD), but local tax headwinds can pressure quarterly prints; full-year ranges reaffirmed .
Capital allocation: Management prioritizes deleveraging over buybacks near-term to compress leverage-driven valuation discounts; improving buyer depth in smaller assets supports disposition plan .
Sustainability/ESG: GRESB leadership (score 90, sector leader) supports long-term positioning with potential capital cost benefits .

Additional data details and sources:

Q3 2025 earnings materials (Press release and 8-K with supplemental): .
Earnings call transcript (Q3 2025): .
Prior quarters for trend analysis (Press releases): Q2 2025 ; Q1 2025 .

Estimates footnote: *Consensus values retrieved from S&P Global.

Veris Residential, Inc. (VRE)·Q3 2025 Earnings Summary