NYSE:VER

Stock Analysis Report

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.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

-0.1%

VER

-0.3%

US REITs

1.8%

US Market


1 Year Return

35.0%

VER

19.5%

US REITs

7.3%

US Market

Return vs Industry: VER exceeded the US REITs industry which returned 19.5% over the past year.

Return vs Market: VER exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

VERIndustryMarket
7 Day-0.1%-0.3%1.8%
30 Day-0.3%0.9%-0.7%
90 Day10.5%7.0%0.06%
1 Year44.1%35.0%24.9%19.5%9.7%7.3%
3 Year24.0%0.8%34.5%17.4%46.3%36.9%
5 Year7.0%-21.1%63.3%28.9%64.5%46.5%

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?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VER ($9.75) is trading below our estimate of fair value ($15.32)

Significantly Undervalued: VER is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VER is poor value based on its PE Ratio (39.7x) compared to the REITs industry average (36.2x).

PE vs Market: VER is poor value based on its PE Ratio (39.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: VER's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VER is good value based on its PB Ratio (1.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VER's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: VER's earnings are forecast to decline over the next 3 years (-4.8% per year).

High Growth Earnings: VER's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VER's revenue (2.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: VER's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VER's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has VEREIT performed over the past 5 years?

57.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VER has become profitable over the past 5 years, growing earnings by 57.4% 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 (17.6%).


Return on Equity

High ROE: VER's Return on Equity (4.3%) is considered low.


Return on Assets

ROA vs Industry: VER's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: VER has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is VEREIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VER has a high level of physical assets or inventory.

Debt Coverage by Assets: VER's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: VER's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if VER has a sufficient allowance for bad loans.

Low Risk Liabilities: VER reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if VER has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VER has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if VER has an appropriate level of bad loans.


Next Steps

Dividend

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

5.64%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VER's dividend (5.64%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VER's dividend (5.64%) is in the top 25% of dividend payers in the US market (3.72%)

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 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.9%), VER's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VER's dividends in 3 years are forecast to be thoroughly covered by earnings (0.08% payout ratio).


Next Steps

Management

What is the CEO of VEREIT's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Glenn Rufrano (69yo)

4.5yrs

Tenure

US$8,080,813

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 ($USD8.08M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

4.4yrs

Average Tenure

59.5yo

Average Age

Experienced Management: VER's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: VER's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: VER insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$246,75018 Sep 19
Thomas Roberts
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares25,000
Max PriceUS$9.87

Ownership Breakdown


Management Team

  • Glenn Rufrano (69yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: US$8.08m
  • Paul McDowell (59yo)

    Executive VP & COO

    • Tenure: 4yrs
    • Compensation: US$2.51m
  • Tom Roberts (60yo)

    Executive VP & Chief Investment Officer

    • Tenure: 4yrs
    • Compensation: US$2.89m
  • Mike Bartolotta (62yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$2.67m
  • Lauren Goldberg (51yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$2.44m
  • Gavin Brandon (43yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.8yrs
  • Glenn Kindred

    Executive Vice President of Restaurants Division

    • Tenure: 5.9yrs
  • Bonni Rosen

    Senior Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mark Ordan (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$256.84k
  • Glenn Rufrano (69yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: US$8.08m
  • Hugh Frater (63yo)

    Non-Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$354.17k
  • Dave Henry (70yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$258.73k
  • Julie Richardson (56yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$280.90k
  • Eugene Pinover (71yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$267.42k
  • Richard Lieb (59yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$263.22k
  • Mary Preusse (50yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$240.72k

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$10.568b
  • Market Cap: US$10.409b
  • Shares outstanding: 1.09b
  • 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 Analysis2019/10/18 00:20
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.