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Veris (VRE) Surges 10.7%: Is This an Indication of Further Gains?
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Veris Residential (VRE - Free Report) shares rallied 10.7% in the last trading session to close at $11.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 26% loss over the past four weeks.
The increased optimism in the stock stems from Veris’ efforts to inch closer to the completion of its strategic transformation to become a pure-play multifamily REIT. It recently disposed of 101 Hudson Street for $346 million. Simultaneously, it entered into a binding agreement to sell Harborside 1, 2, and 3 for a total price of $420 million, which is expected to close in the first quarter of 2023.
It anticipates receiving net proceeds of nearly $350 million and $90 million from the disposition of Harborside 1/2/3 and 101 Hudson Street, respectively.
With the completion of the sale of Harborside 1/2/3 and the pro-forma for the stabilization of Haus25 (currently over 78% leased), VRE’s multifamily segment will represent around 98% of its net operating income, indicating an increase from 39% witnessed at the end of first-quarter 2021.
This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.12 per share in its upcoming report, which represents a year-over-year change of -29.4%. Revenues are expected to be $82.48 million, down 1.5% from the year-ago quarter.
While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.
For Veris, the consensus FFO per share estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on VRE going forward to see if this recent jump can turn into more strength down the road.
Veris belongs to the Zacks REIT and Equity Trust - Residential industry. Another stock from the same industry, American Homes 4 Rent (AMH - Free Report) , closed the last trading session 1.8% lower at $31.32. Over the past month, AMH has returned -14%.
American Homes 4 Rent's consensus FFO per share estimate for the upcoming report has changed -0.3% over the past month to $0.39. Compared to the company's year-ago FFO per share, this represents a change of +11.4%. American Homes 4 Rent currently boasts a Zacks Rank of #3 (Hold).
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Veris (VRE) Surges 10.7%: Is This an Indication of Further Gains?
Veris Residential (VRE - Free Report) shares rallied 10.7% in the last trading session to close at $11.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 26% loss over the past four weeks.
The increased optimism in the stock stems from Veris’ efforts to inch closer to the completion of its strategic transformation to become a pure-play multifamily REIT. It recently disposed of 101 Hudson Street for $346 million. Simultaneously, it entered into a binding agreement to sell Harborside 1, 2, and 3 for a total price of $420 million, which is expected to close in the first quarter of 2023.
It anticipates receiving net proceeds of nearly $350 million and $90 million from the disposition of Harborside 1/2/3 and 101 Hudson Street, respectively.
With the completion of the sale of Harborside 1/2/3 and the pro-forma for the stabilization of Haus25 (currently over 78% leased), VRE’s multifamily segment will represent around 98% of its net operating income, indicating an increase from 39% witnessed at the end of first-quarter 2021.
This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.12 per share in its upcoming report, which represents a year-over-year change of -29.4%. Revenues are expected to be $82.48 million, down 1.5% from the year-ago quarter.
While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.
For Veris, the consensus FFO per share estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on VRE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Veris belongs to the Zacks REIT and Equity Trust - Residential industry. Another stock from the same industry, American Homes 4 Rent (AMH - Free Report) , closed the last trading session 1.8% lower at $31.32. Over the past month, AMH has returned -14%.
American Homes 4 Rent's consensus FFO per share estimate for the upcoming report has changed -0.3% over the past month to $0.39. Compared to the company's year-ago FFO per share, this represents a change of +11.4%. American Homes 4 Rent currently boasts a Zacks Rank of #3 (Hold).