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1. Company Snapshot

1.a. Company Description

Veris Residential, Inc.is a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large.The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principles, a best-in-class and sustainable approach to operations, and an inclusive culture based on equality and meritocratic empowerment.


For additional information on Veris Residential, Inc.and our properties available for lease, please visit http://www.verisresidential.com/.

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1.b. Last Insights on VRE

Veris Residential's recent performance was driven by strong Q2 2025 results, with FFO of $0.17 per share beating estimates. The company's liquidity-enhancing transactions, including an amended credit facility and sale of Signature Place, reduced its term loan by $80 million. Additionally, the company's Board of Directors declared a $0.08 cash dividend for Q3 2025. Analysts predict a 25.9% upside, citing a positive trend in earnings estimate revisions. The company's strong position in the Northeast multifamily market and favorable sector fundamentals also contribute to its positive outlook.

1.c. Company Highlights

2. Veris Residential's Strong Q3 2025 Earnings: A Deeper Dive

Veris Residential reported a core FFO per share of $0.20, beating analyst estimates of $0.15. The company's blended net rental growth stood at 3.9%, outperforming the national market. Revenue growth was robust, driven by a strong operational performance. The actual EPS came in at $0.2. With a P/E Ratio of 19.43 and an EV/EBITDA of 7.61, the market seems to be pricing in a certain level of growth. The company's ability to achieve a same-store blended net rental growth of 3.9% for the quarter and 3.5% for the first nine months of the year is a testament to its strong operational performance.

Publication Date: Nov -03

📋 Highlights
  • Blended Net Rental Growth:: Achieved 3.9% growth, outpacing the national market, with core FFO per share of $0.20.
  • Asset Sales Progress:: Sold $542M in non-strategic assets, exceeding initial $300–500M target, raising sales guidance to $650M.
  • Debt Reduction:: Net debt-to-EBITDA decreased 15% to 10x year-to-date, with a target to reach 8x by 2026.
  • Operational Performance:: Same-store NOI growth guidance at 2–2.8%, and portfolio revenue per home of $4,255, 40% above peers.
  • Market Conditions:: Benefiting from improved transaction activity and renewed Core-Plus capital interest in multifamily assets.

Operational Highlights

The Northeast portfolio, particularly New York City, continues to drive growth, with rental growth at 4.8%. The portfolio's average revenue per home is $4,255, maintaining a premium of over 40% compared to peers. The company's focus on executing its plan and operational initiatives is evident in its strong operational performance.

Asset Monetization and Deleveraging

Veris Residential has made significant progress in monetizing non-strategic assets, with $542 million of transactions closed or under contract at a 5.1% cap rate. The company has raised its disposition guidance to $650 million, reflecting its best estimate of the value that can be crystallized through asset sales. This is expected to drive earnings growth and reduce net debt-to-EBITDA, which has already decreased by 15% since the beginning of the year to 10x. The company aims to further decrease this to approximately 9x and potentially below 8x by the end of 2026.

Guidance and Outlook

The company has raised its guidance for the second consecutive quarter to $0.67 to $0.68, representing 12.5% growth above 2024. Same-store NOI guidance remains at 2% to 2.8%. Analysts estimate next year's revenue growth at -0.6%, but the company's focus on deleveraging and executing its plan may help mitigate this. The company's P/B Ratio of 1.06 suggests that the stock may be undervalued, considering its strong operational performance and progress in asset monetization.

Market Conditions and Future Prospects

Early signs of renewed interest from Core-Plus capital are evident, driven by rates coming in and the realization that credit investments may not offer the same multiple as equity investments. The company's ability to adapt to changing market conditions and its focus on creating shareholder value will be crucial in the coming quarters. With a Dividend Yield of 2.23%, the stock offers an attractive return for income investors.

3. NewsRoom

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Vanguard FTSE Canadian Capped REIT Index ETF (TSE:VRE) Trading 0.5% Higher – What’s Next?

Nov -29

Source: defenseworld.net

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B&I Capital AG Boosts Stock Position in Veris Residential, Inc. $VRE

Nov -27

Source: defenseworld.net

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Veris Residential, Inc. (NYSE:VRE) Given Consensus Rating of “Hold” by Brokerages

Nov -25

Source: defenseworld.net

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Veris Residential: A Northeast Residential REIT In A Portfolio Balancing Act

Nov -06

Source: seekingalpha.com

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Veris Residential Declares Fourth Quarter 2025 Cash Dividend

Nov -05

Source: prnewswire.com

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Y Intercept Hong Kong Ltd Increases Stock Holdings in Veris Residential, Inc. $VRE

Nov -05

Source: defenseworld.net

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Veris Residential, Inc. (NYSE:VRE) Short Interest Update

Nov -05

Source: defenseworld.net

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Veris Residential: Shares Have Potential, But Are Fully Priced

Nov -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.94%)

6. Segments

Multi-family Real Estate and Services

Expected Growth: 2%

Veris Residential, Inc.'s multi-family real estate and services segment growth is driven by increasing demand for rental properties, particularly in urban areas, and a growing need for amenity-rich living spaces. Additionally, the company's focus on sustainability and ESG initiatives resonates with environmentally conscious renters, contributing to its 2% growth.

Commercial and Other Real Estate

Expected Growth: 1%

Veris Residential, Inc.'s Commercial and Other Real Estate segment growth is driven by increasing demand for office and industrial spaces, strategic acquisitions, and effective asset management. Additionally, the company's focus on sustainability and energy-efficient properties attracts environmentally conscious tenants, contributing to its growth.

Corporate and Other

Expected Growth: 3%

Veris Residential, Inc.'s Corporate and Other segment growth is driven by strategic asset sales, cost savings initiatives, and a focus on operational efficiency. Additionally, the company's shift towards a more fee-based business model and growth in its third-party management business contribute to its 3% growth.

7. Detailed Products

Multifamily Properties

Veris Residential, Inc. owns and operates a diverse portfolio of multifamily properties, offering residents a range of amenities and services.

Commercial Properties

The company's commercial portfolio includes office buildings, retail spaces, and industrial properties, catering to a variety of businesses and industries.

Land Development

Veris Residential, Inc. engages in land development, acquiring and entitling land for future development, and partnering with builders and developers.

Property Management

The company offers comprehensive property management services, including leasing, marketing, and maintenance, for its own properties and third-party clients.

Real Estate Investment

Veris Residential, Inc. invests in real estate opportunities, including joint ventures, partnerships, and direct property investments.

8. Veris Residential, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Veris Residential, Inc. is medium due to the availability of alternative housing options.

Bargaining Power Of Customers

The bargaining power of customers for Veris Residential, Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Veris Residential, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Veris Residential, Inc. is high due to the relatively low barriers to entry in the residential real estate industry.

Intensity Of Rivalry

The intensity of rivalry for Veris Residential, Inc. is high due to the competitive nature of the residential real estate industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.59%
Debt Cost 7.48%
Equity Weight 34.41%
Equity Cost 9.95%
WACC 8.33%
Leverage 190.59%

11. Quality Control: Veris Residential, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BRT Apartments

A-Score: 6.2/10

Value: 5.9

Growth: 5.3

Quality: 3.8

Yield: 10.0

Momentum: 3.5

Volatility: 8.7

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NexPoint Residential Trust

A-Score: 5.9/10

Value: 6.3

Growth: 5.2

Quality: 5.5

Yield: 9.0

Momentum: 2.0

Volatility: 7.7

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UMH Properties

A-Score: 5.8/10

Value: 4.3

Growth: 3.0

Quality: 7.1

Yield: 9.0

Momentum: 2.0

Volatility: 9.7

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Clipper Realty

A-Score: 5.6/10

Value: 8.1

Growth: 6.2

Quality: 5.5

Yield: 10.0

Momentum: 1.0

Volatility: 3.0

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AIMCo

A-Score: 5.0/10

Value: 4.3

Growth: 2.1

Quality: 4.0

Yield: 10.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Veris Residential

A-Score: 4.7/10

Value: 6.2

Growth: 1.9

Quality: 5.9

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.49$

Current Price

14.49$

Potential

-0.00%

Expected Cash-Flows