Veris Residential slightly beats Q4 revenue expectations, to be acquired by affinius capital-led investor consortium

Overview

• Northeast multifamily REIT's Q4 revenue slightly beat analyst expectations

• Core FFO per share for Q4 beat analyst estimates

• Company completed $542 mln non-strategic asset sales, reducing debt by $490 mln

• Co to be acquired by affinius capital-led investor consortium for $3.4 billion in cash

Outlook

• Company did not provide specific guidance for future revenue or EPS in its press release

Result Drivers

• CORE FFO GROWTH - Annual Core FFO per share increased over 20%, surpassing guidance, due to improved operational efficiencies

• ASSET SALES - Completed $542 mln in non-strategic asset sales, exceeding target and reducing debt by $490 mln

• OCCUPANCY AND NOI - Maintained strong occupancy of 94.4% and achieved 5.9% growth in same-store NOI for Q4

Company press release: ID:nPn6wCgyMa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for Veris Residential Inc is $17.50, about 4.4% above its February 20 closing price of $16.77

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