Mahbod Nia, CEO Veris Residential, Inc. (NYSE: VRE), sat down for a video interview at Nareit’s REITweek: 2024 investor conference, held June 3-6 in New York.
Nia highlighted the strong macroeconomic conditions that underpin the company’s growth, saying they are supported by job and wage growth that drives revenue. He added that limited supply in Veris’ markets, combined with a broader national shortage in the multifamily sector, enhances the company’s ability to outperform other asset classes.
Nia also discussed the challenges and opportunities in the multifamily sector, pointing out that transaction volumes have slowed significantly over the past few years. Despite this, he has seen positive signs, including a convergence of price expectations between buyers and sellers, which has led to an increase in transactions, particularly smaller deals and some larger portfolio trades for private opportunity funds.
Reflecting on Veris Residential’s strategic shift, Nia highlighted the transformation from a primarily office-focused portfolio to a pure-play multifamily REIT. He noted that the company has repaid $1 billion of debt, reinstated its dividend, and implemented a three-pronged strategy focusing on capital allocation, portfolio and platform optimization, and balance sheet optimization.
Nia said, “We’re making progress in all three of these areas,” and noted that this progress has enabled the REIT to raise its guidance and dividend.
Nia also spoke about the company’s commitment to environmental, social and governance issues, and said ESG is an integral part of the company’s decision-making process.
He said, “If we can do something that ultimately reduces our carbon emissions while also reducing our operating expenses and creating value for our shareholders, why wouldn’t we do it?”
