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Veris Residential, Inc. (VRE)

Company Dividend Discount ModelIndustry: REIT - ResidentialSector: Real Estate

Valuation Snapshot

Stable Growth$4.19 - $5.96$5.06
Multi-Stage$6.98 - $7.68$7.32
Blended Fair Value$6.19
Current Price$15.20
Upside-59.25%
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 Rate9.10%9.10%9.10%
Growth Rate-2.63%-1.63%-0.63%
Fair Value$4.19$5.06$5.96
Upside / Downside-72.42%-66.68%-60.76%

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 Rate9.10%9.10%9.10%
Growth Rate-2.63%-1.63%-0.63%
Year 1 PV (M)21.9422.1722.39
Year 2 PV (M)25.9826.5227.06
Year 3 PV (M)28.9029.8030.71
Year 4 PV (M)30.8932.1733.50
Year 5 PV (M)32.1133.8035.55
PV of Terminal Value (M)557.51586.73617.16
Equity Value (M)697.32731.18766.38
Shares Outstanding (M)99.8499.8499.84
Fair Value$6.98$7.32$7.68
Upside / Downside-54.05%-51.82%-49.50%

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