Mack-Cali Realty Corp. has rebranded as Veris Residential to reflect its new strategic direction and corporate values as it transitions into a pure-play multifamily real estate investment trust (REIT) and seeks to create long-term value for its shareholders. The company will continue to be publicly traded on the New York Stock Exchange and will do so under its new name and ticker symbol, VRE, as of Dec. 10.
The REIT, based in Jersey City, New Jersey, has made progress in achieving its strategic objectives of simplifying its business, strengthening its balance sheet, and enhancing its operational platform over the past several months. This includes more than $1 billion of suburban asset sales, the repayment of all corporate-level recourse debt, an internal reorganization with $5 million of run-rate cash expense savings, and a renewed commitment to environmental, social, and governance (ESG) best practices.
In addition, it now is less than a handful of office assets away from transitioning to a pure-play multifamily company in growth markets across the Northeast, building upon the strong leasing momentum of its portfolio. Veris Residential’s multifamily portfolio includes 18 Class A properties with 5,825 units featuring luxury amenities and curated resident events and programming.
According to the company, under the new brand ethos, it will be dedicated to meeting its residents’ sustainability-conscious lifestyle needs by operating in a socially, ethically, and environmentally responsible manner as well as maximizing value for its stakeholders.
“Since the establishment of our ESG committee in July 2020, the board of directors and management team have worked tirelessly to intricately weave environmental and social considerations into the fabric of the company, serving as a compass to inform our current and future decision-making,” said CEO Mahbod Nia. “Our new brand, Veris Residential, encapsulates our responsible, transparent, and forward-thinking approach, underpinned by a unified culture grounded in equality and meritocratic empowerment. I look forward to leading the company through this next phase of its evolution and building upon our strong momentum this year to continue generating long-term value for our shareholders while positively impacting our residents and the communities we serve.”
Veris Residential’s multifamily portfolio has an average property age of seven years. Many of its existing properties and development projects include energy efficiency and other sustainable features, positioning the portfolio to deliver competitive growth over time.
In connection with the rebrand, some additional initiatives implemented at the property and corporate levels include:
Formally endorsing global sustainability initiatives, such as the Ten Principles of the U.N. Global Compact and the Climate Group’s EV100;
- Enhancing support for diverse and all-inclusive communities, including increasing gender and ethnic diversity within the company and the board of directors and introducing companywide diversity training;
- Reducing its overall carbon footprint with thoughtfully designed new developments, upgrading building management systems, and adopting 100% renewable electricity within its headquarters and across common areas within its multifamily portfolio;
- Improving the health and well-being of residents and employees, including earning WELL Health and Safety certification across its multifamily properties earlier this year and piloting a number of sustainable technologies;
- Implementing a flexible, hybrid working structure so that it can continue to attract and retain experienced and dedicated team members; and
- Continuing to maintain a deep connection with residents and communities by partnering with local and national organizations that share its values, such as Boys & Girls Clubs, Habitat for Humanity, and American Red Cross.
“The decision to reposition Mack-Cali as Veris Residential is an important milestone following the transformative steps the company has taken since the reconstitution of the board of directors,” said board chair Tammy K. Jones, co-founder and CEO of Basis Investment Group. “As we look ahead, we remain committed to maximizing long-term value for our shareholders while also strategically managing evolving ESG risks and opportunities. This integrated approach to the way we conduct our business—one that acknowledges the importance of all stakeholders, strong corporate governance, as well as its responsibility to the communities we serve and the planet we inhabit—will be a strong competitive advantage and position Veris for future growth and success.”
