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The activist investor wants a seat at the table and has ideas for managment after they rejected a takeover offer from Kushner
Homebuilder Veris Residential’s Board has been busy again in discussions, this time with shareholder Madison International Realty.
Fintel reports that Madison International Realty Holdings, LLC has filed a 13D/A form with the SEC disclosing ownership of 6,107,661 shares of Veris Residential Inc (NYSE:VRE). This represents 6.7% of the company.Mohnish Pabrai’s Advice On Stock “Exits”The hardest decision every investor will have to make at some point is when to sell a stock. According to Warren Buffett, the best answer to this question is to avoid it altogether. Q2 hedge fund letters, conference, scoops etc Rather than buying stocks you might have to sell at some point, he thinks it Read More
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Q4 2022 hedge fund letters, conferences and more
In their previous filing dated November 17, 2020 they reported 6,409,183 shares and 7.07% of the company, a 4.7% decrease in the number of shares owned and a decrease in total ownership of 0.37% (calculated as current – previous percent ownership).
Madison International’s Discussions With Veris Residential
In the filing, Madison International revealed that it has been holding discussions with members of Veris Residential’s management on several items including the possibility of a seat on the Board.
Madison’s President and Founder Ronald Dickerman has engaged directly with the corporate governance committee and intends to continue the dialogue.
Dickerman in the filing highlighted his support for Veris’ management and the company’s strategic direction and believes that Madison’s expertise and experience would be beneficial to the company and its shareholders.
Veris Residential shares slipped -13.3% over 2022 but had traded as much as -45% lower by early October before a takeover offer from Kushner at $16 per share erased almost all losses.
Since the initial offer and discussions with management, Kushner reviewed the offer higher to $18.50 only to be unanimously rejected by the Board in mid-December.
Management told the street that they would remain open to other offers but concluded that Kushner’s proposal undervalued the company with uncertainty around financing sources for the deal.
The renewed activist activity should support VRE’s share price momentum through to the release of fourth quarter results scheduled for the 22nd of February.
Fintel’s consensus $17.85 analyst target for VRE suggests that the street expects the share price to tick marginally higher over 2023.
Research on the platform also indicated that the stock is screening high on the Fintel Insider Sentiment Score leaderboard with a value of 89.45. The insider score ranks VRE in the top 15% when ranked against 14,748 other global securities.
The score is based on a range of factors which include two net insiders purchasing 0.283% of the float during the last 90 days. These insiders included Veris’ CEO Mahbod Nia and Board director Akiva Katz who represents Bow Street LLC.
Fintel reports that Madison International Realty Holdings, LLC has filed a 13D/A form with the SEC disclosing ownership of 6,107,661 shares of Veris Residential Inc (VRE). This represents 6.7% of the company.
In their previous filing dated November 17, 2020, they reported 6,409,183 shares and 7.07% of the company, a decrease in shares of 4.70% and a decrease in total ownership of 0.37% (calculated as current – previous per cent ownership).
Veris Residential, Inc. is a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large.
The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principles, a best-in-class and sustainable approach to operations, and an inclusive culture based on equality and meritocratic empowerment.
What Are Other Large Shareholders Doing?
H/2 Credit Manager Lp holds 4,697,314 shares representing 5.16% ownership of the company. In it’s prior filing, the firm reported owning 4,475,314 shares, representing an increase of 4.73%. The firm increased its portfolio allocation in VRE by 10.21% over the last quarter.
Centersquare Investment Management Llc holds 4,036,969 shares representing 4.43% ownership of the company. In it’s prior filing, the firm reported owning 3,552,035 shares, representing an increase of 12.01%. The firm decreased its portfolio allocation in VRE by 68.46% over the last quarter.
Wellington Management Group Llp holds 2,360,322 shares representing 2.59% ownership of the company. In it’s prior filing, the firm reported owning 2,302,881 shares, representing an increase of 2.43%. The firm decreased its portfolio allocation in VRE by 87.06% over the last quarter.
Victory Capital Management Inc holds 1,849,114 shares representing 2.03% ownership of the company. In it’s prior filing, the firm reported owning 1,862,060 shares, representing a decrease of 0.70%. The firm decreased its portfolio allocation in VRE by 34.08% over the last quarter.
What Is The Overall Fund Sentiment?
There are 383 funds or institutions reporting positions in Veris Residential Inc. This is a decrease of 13 owner(s) or 3.28%.
Average portfolio weight of all funds dedicated to Veris Residential Inc is 0.2501%, a decrease of 10.1504%. Total shares owned by institutions decreased in the last three months by 1.53% to 87,913,255 shares.
Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe.
Click to see the Fintel Fund Sentiment Score for VRE / Veris Residential Inc.
Article by Ben Ward, Fintel