NYSE:VER

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has VEREIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VER has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

VER

3.3%

US REITs

1.8%

US Market


1 Year Return

-28.9%

VER

-10.0%

US REITs

14.2%

US Market

Return vs Industry: VER underperformed the US REITs industry which returned -10% over the past year.

Return vs Market: VER underperformed the US Market which returned 14.2% over the past year.


Shareholder returns

VERIndustryMarket
7 Day1.8%3.3%1.8%
30 Day6.7%2.0%0.04%
90 Day2.8%4.2%9.8%
1 Year-23.9%-28.9%-6.4%-10.0%16.7%14.2%
3 Year2.5%-17.0%17.8%3.8%41.6%32.2%
5 Year23.2%-12.2%54.1%23.3%90.9%69.5%

Price Volatility Vs. Market

How volatile is VEREIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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 ($6.97) is trading below our estimate of fair value ($16.36)

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


Price To Earnings Ratio

PE vs Industry: VER is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: VER is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VER's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VER is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

How is VEREIT forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VER is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: VER is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VER's is expected to become profitable in the next 3 years.

Revenue vs Market: VER's revenue (3.5% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: VER's revenue (3.5% 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 (2.9%).


Next Steps

Past Performance

How has VEREIT performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VER is currently unprofitable.

Growing Profit Margin: VER is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VER is unprofitable, but has reduced losses over the past 5 years at a rate of 15.3% per year.

Accelerating Growth: Unable to compare VER's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VER is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (2.4%).


Return on Equity

High ROE: VER has a negative Return on Equity (-7.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is VEREIT's financial position?


Financial Position Analysis

Short Term Liabilities: VER's short term assets ($711.7M) exceed its short term liabilities ($315.1M).

Long Term Liabilities: VER's short term assets ($711.7M) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: VER's debt to equity ratio (91.3%) is considered high.

Reducing Debt: VER's debt to equity ratio has reduced from 101.4% to 91.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VER has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VER has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of 12.7% each year.


Next Steps

Dividend

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

4.42%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VER's dividend (4.42%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: VER's dividend (4.42%) is low compared to the top 25% of dividend payers in the US market (4.65%).


Stability and Growth of Payments

Stable Dividend: VER has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VER has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: VER is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: VER's dividends in 3 years are forecast to be covered by earnings (61.5% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Glenn Rufrano (70 yo)

5.42yrs

Tenure

US$6,821,118

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 ($USD6.82M) is about average for companies of similar size in the US market ($USD7.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Rufrano
CEO & Director5.42yrsUS$6.82m0.13%
$ 10.1m
Michael Bartolotta
Executive VP & CFO4.92yrsUS$2.84m0.019%
$ 1.4m
Paul McDowell
Executive VP & COO4.92yrsUS$2.67m0.019%
$ 1.4m
Thomas Roberts
Executive VP & Chief Investment Officer4.92yrsUS$3.07m0.037%
$ 2.9m
Lauren Goldberg
Executive VP5.33yrsUS$2.59m0.016%
$ 1.2m
Gavin Brandon
Senior VP & Chief Accounting Officer5.75yrsno data0.0018%
$ 137.1k
Bonni Rosen
Senior Vice President of Investor Relationsno datano datano data
Glenn Kindred
Executive Vice President of Restaurants Division6.83yrsno datano data
Bianca Martinez
Senior VPno datano datano data

5.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: VER's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Rufrano
CEO & Director5.42yrsUS$6.82m0.13%
$ 10.1m
Hugh Frater
Independent Non-Executive Chairman5.42yrsUS$326.24k0.010%
$ 782.5k
David Henry
Independent Director5yrsUS$257.74k0.0032%
$ 245.7k
Julie Richardson
Independent Director5.42yrsUS$294.50k0.0041%
$ 317.3k
Eugene Pinover
Independent Director5yrsUS$277.54k0.0020%
$ 152.5k
Richard Lieb
Independent Director3.58yrsUS$267.41k0.00022%
$ 16.9k
Mary Preusse
Independent Director3.58yrsUS$244.91k0.00022%
$ 16.9k

5.0yrs

Average Tenure

64yo

Average Age

Experienced Board: VER's board of directors are considered experienced (5 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 8.5%.


Top Shareholders

Company Information

VEREIT, Inc.'s company bio, 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$7.702b
  • Market Cap: US$7.513b
  • Shares outstanding: 1.08b
  • Website: https://www.vereit.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VERNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2011
50ADB (Deutsche Boerse AG)YesCommon StockDEEURSep 2011
VER.PRFNYSE (New York Stock Exchange)PFD SER FUSUSDJan 2014

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:23
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.