Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Veris Residential, Inc. (VRE)

Company Dividend Discount ModelIndustry: REIT - ResidentialSector: Real Estate

Valuation Snapshot

Stable Growth$5.22 - $7.83$6.46
Multi-Stage$11.52 - $12.70$12.10
Blended Fair Value$9.28
Current Price$15.20
Upside-38.96%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.000.000.000.610.810.810.780.600.60
YoY Growth--0.00%-100.00%-87.16%-99.22%-24.98%0.15%3.52%29.62%0.09%-33.22%
Dividend Yield--0.00%0.00%0.00%0.03%3.92%5.31%3.66%4.66%2.23%2.56%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)63.00
(-) Cash Dividends Paid (M)16.55
(=) Cash Retained (M)46.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.607.874.72
Cash Retained (M)46.4446.4446.44
(-) Cash Required (M)-12.60-7.87-4.72
(=) Excess Retained (M)33.8438.5741.72
(/) Shares Outstanding (M)99.8499.8499.84
(=) Excess Retained per Share0.340.390.42
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share0.340.390.42
(=) Adjusted Dividend0.500.550.58
WACC / Discount Rate6.78%6.78%6.78%
Growth Rate-2.63%-1.63%-0.63%
Fair Value$5.22$6.46$7.83
Upside / Downside-65.63%-57.50%-48.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)63.0061.9760.9659.9759.0058.0459.78
Payout Ratio26.28%39.02%51.77%64.51%77.26%90.00%92.50%
Projected Dividends (M)16.5524.1831.5638.6945.5852.2455.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.78%6.78%6.78%
Growth Rate-2.63%-1.63%-0.63%
Year 1 PV (M)22.4222.6522.88
Year 2 PV (M)27.1227.6828.24
Year 3 PV (M)30.8231.7832.75
Year 4 PV (M)33.6535.0636.50
Year 5 PV (M)35.7537.6239.58
PV of Terminal Value (M)1,000.621,053.071,107.69
Equity Value (M)1,150.381,207.851,267.65
Shares Outstanding (M)99.8499.8499.84
Fair Value$11.52$12.10$12.70
Upside / Downside-24.20%-20.41%-16.47%

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