Veris Residential (VRE): Evaluating Valuation After Surpassing Asset Sale Targets and Strengthening Financials

Veris Residential (VRE) has caught investor attention after surpassing asset sale targets and meaningfully reducing its debt. These steps underline a sharper focus on its core multifamily residential portfolio and an improving financial outlook.

See our latest analysis for Veris Residential.

Momentum has started building for Veris Residential, as the company’s recent asset sales and debt reduction have been met with a modest 90-day share price return of 4.85%. However, investors are still weighing its long-term prospects, with the latest year seeing a total shareholder return of -16.7%. A positive five-year total shareholder return of 12.4% highlights a story of mixed progress and improving fundamentals.

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The market’s reaction has been tepid so far. With shares still trading below analysts’ price targets, the question remains: is Veris Residential undervalued right now or is future growth already built into the price?

Most Popular Narrative: 17.1% Undervalued

With a fair value set at $18, compared to Veris Residential’s latest close of $14.92, the most widely followed narrative signals the stock is trading at a substantial discount, catching the attention of value-focused investors.

The sale of $300 million to $500 million of nonstrategic assets over the next 12 to 24 months is expected to improve debt position, with part of the proceeds used for debt repayment. This could potentially reduce net-debt-to-EBITDA and interest expenses.

Read the complete narrative.

Want to know the playbook that drives this bullish price target? The calculations behind fair value depend on a big swing in earnings and profit margins, with numbers that would redefine what’s possible for this REIT. Curious just how ambitious these growth assumptions are? Uncover the bold financial projections that could change the story for Veris Residential.

Result: Fair Value of $18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as ongoing market volatility and challenges with property occupancy could quickly shift the outlook for Veris Residential’s valuation story.

Find out about the key risks to this Veris Residential narrative.

Build Your Own Veris Residential Narrative

If you see things differently or want to dive into the details yourself, you can shape your own narrative in just a few minutes: Do it your way

A great starting point for your Veris Residential research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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