Veris Residential, Inc. (NYSE:VRE) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET
Company Participants
Mahbod Nia – Chief Executive Officer
Amanda Lombard – Chief Financial Officer
Conference Call Participants
Brian Spahn – Evercore
Michael Bilerman – Citi
Nicholas Joseph – Citi
Tom Catherwood – BTIG
John Pawlowski – Green Street Advisors
Operator
Good day, everyone, and welcome to Veris Residential Second Quarter 2022 Earnings Conference Call. Today's call is being recorded. I would like to remind everyone that certain information on this call may constitute forward-looking statements within the meaning of the federal securities laws, although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved. We refer you to the company's press release, annual and quarterly reports filed in the SEC for risk factors that impact the company.
With that, I would like to hand you over to Mahbod Nia, Veris Residential's Chief Executive Officer. Please go ahead.
Mahbod Nia
Good morning and welcome to our second quarter 2022 earnings call. I'm joined by our CFO, Amanda Lombard. We are pleased to announce another solid quarter during which our multifamily portfolio again posted sector-leading rental and NOI growth while maintaining occupancy at around 97%. These results reflect the significant steps we have taken over the past 18 months to notably transform the company, repositioning the portfolio and enhancing our operational platform.
Today, NOI contribution from multifamily sits at 83% on a pro forma basis, up from 39% as of the end of the first quarter of 2021 and approximately 1,900 multifamily units have been added to our portfolio representing growth of over 30% during this time. The significant increase in NOI across our stabilized assets, driven by strong demand across our properties is evidenced by continued leasing velocity at Haus25, which is now 66% leased and nearly 50% occupied.
We also made progress on our strategic transformation, closing our acquisition of The James and signing definitive agreements for the sale of the Hyatt Hotel and 23 Main Street, our last remaining suburban office assets. The operating fundamentals across our 6,691 unit multifamily portfolio remained strong during the quarter, with occupancy at 97.1%, and a blended net rental growth rate of 21%, a figure that was up from 16% in the first quarter and that we continue to maintain at around 20% through July.