company background image
VER

VEREITNYSE:VER Stock Report

Market Cap

US$11.6b

7D

3.2%

1Y

49.5%

Updated

23 Oct, 2021

Data

Company Financials +
VER fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends4/6

VER Overview

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S.

VEREIT Competitors

Price History & Performance

Summary of all time highs, changes and price drops for VEREIT
Historical stock prices
Current Share PriceUS$50.47
52 Week HighUS$30.05
52 Week LowUS$50.98
Beta1.19
1 Month Change6.34%
3 Month Change2.58%
1 Year Change49.54%
3 Year Change39.23%
5 Year Change9.60%
Change since IPO-20.83%

Recent News & Updates

Sep 18

Vereit Now Trades At A Premium To Realty Income Merger Ratio, What To Do

Shareholders have approved the previously announced Realty Income purchase of Vereit. Shortly after the announced sale, almost all the "arbitrage value" of Vereit disappeared, and actually Vereit now trades at a premium to .7x Realty Income's share price. I was overweight both and sold most of my Realty Income, which in retrospect was an error as O yields more than VER. Yesterday I sold $45 covered calls on Vereit expiring today, nearly guaranteeing I'll be "called out" this weekend. With all due respect to the guys from R.E.M., with the points above, I feel fine with this outcome.

Shareholder Returns

VERUS REITsUS Market
7D3.2%2.2%1.7%
1Y49.5%35.3%30.3%

Return vs Industry: VER exceeded the US REITs industry which returned 35.3% over the past year.

Return vs Market: VER exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is VER's price volatile compared to industry and market?
VER volatility
VER Beta1.19
Industry Beta0.84
Market Beta1

Stable Share Price: VER is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: VER's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010160Glenn Rufranohttps://www.vereit.com

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has total real estate investments of $14.6 billion including approximately 3,800 properties and 88.9 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties.

VEREIT Fundamentals Summary

How do VEREIT's earnings and revenue compare to its market cap?
VER fundamental statistics
Market CapUS$11.57b
Earnings (TTM)US$225.32m
Revenue (TTM)US$1.17b

51.4x

P/E Ratio

9.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VER income statement (TTM)
RevenueUS$1.17b
Cost of RevenueUS$123.16m
Gross ProfitUS$1.04b
ExpensesUS$818.99m
EarningsUS$225.32m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.98
Gross Margin89.45%
Net Profit Margin19.30%
Debt/Equity Ratio83.2%

How did VER perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

66%

Payout Ratio

Does VER pay a reliable dividends?

See VER dividend history and benchmarks
When do you need to buy VER by to receive an upcoming dividend?
VEREIT dividend dates
Ex Dividend DateNov 01 2021
Dividend Pay DateNov 15 2021
Days until Ex dividend8 days
Days until Dividend pay date22 days

Does VER pay a reliable dividends?

See VER dividend history and benchmarks

Valuation

Is VEREIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VER ($50.47) is trading below our estimate of fair value ($109.11)

Significantly Below Fair Value: VER is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VER is good value based on its PE Ratio (51.4x) compared to the US REITs industry average (51.9x).

PE vs Market: VER is poor value based on its PE Ratio (51.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VER is poor value based on its PEG Ratio (8.8x)


Price to Book Ratio

PB vs Industry: VER is good value based on its PB Ratio (1.7x) compared to the US REITs industry average (2.1x).


Future Growth

How is VEREIT forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VER's forecast earnings growth (5.8% per year) is above the savings rate (2%).

Earnings vs Market: VER's earnings (5.8% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: VER's earnings are forecast to grow, but not significantly.

Revenue vs Market: VER's revenue (6.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: VER's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VER's Return on Equity is forecast to be low in 3 years time (5.4%).


Past Performance

How has VEREIT performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VER has a large one-off gain of $48.4M impacting its June 30 2021 financial results.

Growing Profit Margin: VER became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VER has become profitable over the past 5 years, growing earnings by 20.7% per year.

Accelerating Growth: VER has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VER has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (8.3%).


Return on Equity

High ROE: VER's Return on Equity (3.8%) is considered low.


Financial Health

How is VEREIT's financial position?


Financial Position Analysis

Short Term Liabilities: VER's short term assets ($656.7M) exceed its short term liabilities ($235.4M).

Long Term Liabilities: VER's short term assets ($656.7M) do not cover its long term liabilities ($6.0B).


Debt to Equity History and Analysis

Debt Level: VER's debt to equity ratio (83.2%) is considered high.

Reducing Debt: VER's debt to equity ratio has reduced from 101.9% to 83.2% over the past 5 years.

Debt Coverage: VER's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: VER's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

What is VEREIT current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 24 2021Ex Dividend DateNov 01 2021Dividend Pay DateNov 15 202114 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: VER's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: VER's dividend (3.66%) is in the top 25% of dividend payers in the US market (3.47%)


Stability and Growth of Payments

Stable Dividend: VER's dividend payments have been volatile in the past 10 years.

Growing Dividend: VER's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.4%), VER's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VER's dividends in 3 years are forecast to be covered by earnings (62.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Glenn Rufrano (71 yo)

6.5yrs

Tenure

US$8,310,491

Compensation

Mr. Glenn J. Rufrano has been the Chief Executive Officer and Director at VEREIT, Inc., sole general partner of VEREIT Operating Partnership, L.P. since April 1, 2015. Mr. Rufrano served as Chief executiv...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD8.31M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VER's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: VER's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

VEREIT, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: VEREIT, Inc.
  • Ticker: VER
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$11.573b
  • Market Cap: US$11.565b
  • Shares outstanding: 229.30m
  • Website: https://www.vereit.com

Number of Employees


Location

  • VEREIT, Inc.
  • 2325 East Camelback Road
  • 9th Floor
  • Phoenix
  • Arizona
  • 85016
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 22:32
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.