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Veris Residential (VRE)
NYSE:VRE
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Veris Residential
(NYSE:VRE)
Rating:52Neutral
Price Target:
$16.00
▲( 9.74% Upside)
Positive Factors
Earnings
Veris posted solid Q1 results with upside driven by a timing difference in the Urby tax credit.
Leasing Activity
Blended leasing spreads accelerated throughout the quarter, showing growth from 4.0% to 4.8%.
Negative Factors
Market Performance
The shares will not materially outperform the peers or the RMZ given this delay in the full monetization.
Revenue Growth
Revenue growth slowed to 2.4%, down from 8.9% the previous year.
Veris Residential (VRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend Yield1.99%
Average Volume (3M)529.92K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth-3.20%
EPS Growth76.43%
CountryUS
Employees188
SectorReal Estate
Sector Strength64
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.15
Shares Outstanding93,321,210
10 Day Avg. Volume385,634
30 Day Avg. Volume529,921
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.37
Price to Sales (P/S)0.00
P/FCF Ratio1.44K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.83Price Target Upside36.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Veris Residential Business Overview & Revenue Model
Company DescriptionVeris Residential (VRE) is a real estate investment trust (REIT) that specializes in owning, managing, and developing residential properties. The company focuses primarily on multifamily and mixed-use properties in urban and suburban markets. Veris Residential aims to create sustainable and vibrant communities by offering high-quality living spaces with modern amenities.
How the Company Makes MoneyVeris Residential makes money primarily through rental income generated from its portfolio of residential properties. The company leases apartments and mixed-use spaces to individuals and businesses, earning consistent revenue from tenant leases. Additionally, Veris Residential may engage in property development and sales, contributing to its revenue through strategic property transactions. The company's financial performance is influenced by factors such as occupancy rates, rental pricing, property management efficiency, and market demand for residential spaces.
Veris Residential Financial Statement Overview
Summary
Veris Residential faces significant financial challenges with persistent losses impacting profitability. Despite a strong equity base and the absence of debt, declining revenues and negative cash flows raise concerns about the company's ability to sustain operations without restructuring or strategic shifts.Income Statement
Veris Residential has faced declining revenue with a slight rebound in the TTM period. The net profit margin is negative, reflecting ongoing losses. EBIT and EBITDA margins show a decrease in profitability, indicating operational challenges.45
Neutral
Balance Sheet
The company has a strong equity position with no current debt, indicating a solid balance sheet. However, the decline in total assets and equity over time suggests potential risks to long-term stability. The equity ratio is relatively strong, showcasing a conservative approach to financing.60
Neutral
Cash Flow
Operating cash flow has turned negative in the TTM period, highlighting cash management issues. The free cash flow is also negative, indicating potential liquidity concerns. The cash flow to net income ratios are mixed, with a particularly challenging operating cash flow situation.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 271.49M | 271.07M | 279.86M | 355.02M | 329.32M | 313.56M | Gross Profit |
| 120.82M | 160.01M | 157.01M | 193.69M | 181.95M | 172.15M | EBIT |
| 39.45M | 38.18M | 3.15M | 27.93M | 9.40M | -23.62M | EBITDA |
| 123.47M | 119.39M | 76.03M | 139.44M | 121.02M | 94.72M | Net Income Common Stockholders |
| -29.98M | -23.12M | -107.27M | -112.18M | -195.45M | -132.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.60M | 7.25M | 28.01M | 26.78M | 31.75M | 38.10M | Total Assets |
| 2.95B | 2.98B | 3.24B | 3.92B | 4.53B | 5.15B | Total Debt |
| 1.67B | 1.67B | 1.85B | 1.90B | 2.39B | 2.80B | Net Debt |
| 1.66B | 1.67B | 1.83B | 1.88B | 2.36B | 2.76B | Total Liabilities |
| 1.73B | 1.74B | 1.94B | 2.01B | 2.56B | 3.04B | Stockholders Equity |
| 1.08B | 1.10B | 1.14B | 1.24B | 1.28B | 1.40B |
| Cash Flow | Free Cash Flow | ||||
| 1.03M | 52.33M | 45.54M | -115.53M | -8.99M | -70.08M | Operating Cash Flow |
| -2.19M | 52.33M | 45.54M | 66.45M | 56.12M | 85.42M | Investing Cash Flow |
| 89.12M | 162.05M | 579.65M | 220.09M | 446.23M | 28.46M | Financing Cash Flow |
| -237.88M | -244.65M | -618.26M | -290.35M | -503.19M | -102.75M |
Veris Residential Technical Analysis
Negative
14.58
Price Trends
15.80
Negative
15.90
Negative
16.52
Negative
Market Momentum
-0.23
Positive
33.48
Neutral
6.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRE, the sentiment is Negative. The current price of 14.58 is below the 20-day moving average (MA) of 15.48, below the 50-day MA of 15.80, and below the 200-day MA of 16.52, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 6.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRE.
Veris Residential Risk Analysis
Veris Residential disclosed 14 risk factors in its most recent earnings report. Veris Residential reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veris Residential Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.08B | ― | -1.55% | 4.94% | -1.81% | -33.33% | |
65 Neutral | $1.38B | 147.98 | 3.45% | 5.22% | 8.01% | ― | |
60 Neutral | $2.76B | 10.33 | 0.49% | 8507.90% | 5.95% | -17.56% | |
55 Neutral | $845.40M | 866.19 | -7.19% | 5.84% | -7.44% | -143.64% | |
54 Neutral | $288.46M | ― | -4.28% | 6.55% | 2.39% | -407.57% | |
52 Neutral | $1.36B | ― | -2.76% | 1.99% | -3.20% | 76.43% | |
48 Neutral | $1.11B | ― | -48.27% | ― | 9.28% | 34.42% |
* Real Estate Sector Average
Performance Comparison
VRE
Veris Residential
14.58
0.11
0.76%
AIV
Apartment Investment & Management
7.80
0.37
4.98%
UMH
Umh
16.47
2.09
14.53%
CSR
Centerspace
61.16
-2.87
-4.48%
BRT
BRT Apartments
15.26
-0.86
-5.33%
NXRT
NexPoint Residential
33.30
-1.31
-3.79%
Veris Residential Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -9.33%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a balanced outlook. While Veris Residential demonstrated strong operational performance and strategic progress with asset sales and consolidation efforts, challenges such as market volatility, economic uncertainty, and specific property-level issues like Liberty Towers' occupancy were noted. Financial metrics showed improvement, yet economic conditions pose potential risks.Q1-2025 Updates
Positive Updates
Positive Start to 2025
Veris Residential reported a strong start to 2025, with progress on corporate plans and solid operational and financial results. $45 million in non-strategic asset sales were completed, with contracts for an additional $34 million of land sales.
Consolidation of Jersey City Urby
Completed consolidation of a partner's 15% stake in Jersey City Urby for $38 million, rebranded as Sable. This transaction is accretive to earnings and expected to generate operational synergies.
Jersey City Market Outperformance
Jersey City assets showed strong performance, with a 4.2% new lease rental growth rate, exceeding the broader market in Jersey City Waterfront.
Increased Blended Net Rental Growth
Blended net rental growth rate increased to 4.8% in April, demonstrating positive leasing trends.
Technological Enhancements
Introduction of a new resident mobile app adopted by over 65% of units, offering improved functionalities and insights into resident engagement.
Stronger Financial Performance
Core FFO per share was $0.16 for the first quarter, higher than expected, showing improvement from the previous quarter and year.
Negative Updates
Market Volatility and Economic Uncertainty
Persistent market volatility and economic uncertainty linked to tariffs and trade policy changes pose risks to the company's outlook.
Liberty Towers Occupancy Challenges
Occupancy at Liberty Towers affected by ongoing renovations, resulting in a lower occupancy rate of 80.5%.
Increased Utility Costs
Higher utility costs due to a colder winter in the Northeast led to an increase in controllable expenses by 3.5%.
Net Loss to Shareholders
Reported a net loss of $0.12 per fully diluted share for the first quarter, compared to a net loss of $0.04 in the prior year.
Company Guidance
In the first quarter of 2025, Veris Residential, Inc. reported strong operational and financial performance, maintaining its guidance despite market volatility and economic uncertainty. The company completed $45 million in non-strategic asset sales and entered into contracts for an additional $34 million in land sales, contributing to its goal of selling $300 to $500 million in non-strategic assets over the next 12 to 24 months. Veris also consolidated its partner’s 15% stake in the Jersey City Urby for $38 million, rebranding it to Sable and expecting to achieve $1 million in operational synergies. The company recorded a 3.2% same-store NOI growth, with a blended net rental growth rate of 2.4% and occupancy of 95.3%. Despite potential recession risks and inflationary pressures, the multifamily markets, particularly in the Northeast, showed positive fundamentals, with new lease rental growth at 4.2% in Jersey City Waterfront compared to 3.6% in the broader market. Veris maintained its core FFO guidance at $0.61 to $0.63 per share, reflecting 2% to 5% growth over 2024, and a focus on reducing net debt to EBITDA below nine times by the end of 2026.Veris Residential Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Veris Residential Reports Q1 2025 Financial Results
Positive
Apr 23, 2025
Veris Residential, Inc. reported its first quarter 2025 results, highlighting a year-over-year same store multifamily blended net rental growth rate of 2.4% and a same store NOI growth of 3.2%. The company sold $45 million of non-strategic assets and unwound two joint ventures, with an additional $34 million under binding contract. They also acquired their partner’s interest in the Jersey City Urby joint venture, rebranding it to ‘Sable’ and taking over management, which is expected to create over $1 million in annualized synergies. Despite market volatility, Veris continues to unlock value and simplify its portfolio, with a focus on consolidating interests and enhancing operational efficiencies.
Business Operations and StrategyFinancial Disclosures
Veris Residential Reports Strong 2024 Financial Results
Positive
Feb 25, 2025
On February 24, 2025, Veris Residential, Inc. announced its financial results for the quarter and fiscal year ending December 31, 2024. The company reported a 13% increase in Core FFO year-over-year and a 36% increase since 2022, alongside a 6.9% growth in same-store NOI. Veris also highlighted a significant reduction in leverage, with net debt reduced by approximately one-third over the past three years. The company plans to sell $300-500 million in assets over the next 12-24 months to enhance earnings and further reduce leverage, while also investing in value-enhancing capital expenditure programs.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.