VEREIT Inc. owns and actively manages a diversified portfolio of retail, restaurant, office and industrial real estate assets. The company was founded in 2010 and is based in Phoenix, Arizona.
VER Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for VEREIT Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that VEREIT Inc ranked in the 2th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 99.17%. The most interesting components of our discounted cash flow analysis for VEREIT Inc ended up being:
The compound growth rate in the free cash flow of VEREIT Inc over the past 5.44 years is -0.24%; that's better than only 8.63% of cash flow producing equities in the Real Estate sector, where it is classified.
VEREIT Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
VEREIT Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.96. This coverage rate is greater than that of only 20.4% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CWK, FREVS, CPT, CXP, and ELS can be thought of as valuation peers to VER, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
NEW YORK , Sept. 14, 2020 /PRNewswire/ -- Arch Street Capital Advisors ("Arch Street") is pleased to announce the acquisition of 12975 Worldgate Centre, a high-quality office asset located in the Washington D.C. MSA ("Property") in partnership with VEREIT. The Property is 100% occupied by Peraton and serves as their global headquarters. The acquisition is part of the programmatic joint venture ("Partnership") formed in January 2020 with Arch Street's institutional client, Gatehouse Capital, K.S.C.C., Kuwait . With the subject acquisition, the Partnership has acquired four assets to date, equating to a total value of approximately $170.6 million . The Partnership continues to actively seek new long-term leased, single-tenant office acquisition opportunities. … Full story available on Ben...
PHOENIX , Sept. 8, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER ) ("VEREIT"), a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S., announced the closing of $157.5 million of dispositions in the third quarter to accretively fund the previously announced partial redemption of $150.0 million of its 6.70% Series F Cumulative Redeemable Preferred Stock ("Preferred Stock") on September 20 , 2020. The disposition total includes the Company's share of a property contributed to the office partnership of $39.8 million . The other portfolio dispositions were comprised of an additional office sale for $107.0 million at a 5.6% capitalization rate as well as $10.7 million of non-core assets which included...
PHOENIX , Aug. 20, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER ) ("VEREIT") announced today that it intends to redeem 6,000,000 shares of its 6.70% Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock"), representing approximately 24.12% of its approximately 24.9 million shares of Series F Preferred Stock outstanding, on September 20, 2020 (the "Redemption Date") using proceeds from expected dispositions and cash on hand. The shares of Series F Preferred Stock will be redeemed at a redemption price of $25.00 per share, plus accrued and unpaid dividends from September 15, 2020 to, but not including, the Redemption Date in an amount equal to $0.0232639 per share, for total proceeds of $25.0232639 per share (the "Redemption Price"). Payment of the Redemption Price wil...
Investment Thesis Vereit Inc. (VER) is a net lease real estate investment trust that owns a large and diversified portfolio of mostly single-tenant properties across the United States. Its $14.7 billion portfolio is mostly made up of retail properties (2,068 total) and restaurants (1,536), with smaller industrial (147 properties) and...
Cashflow Capitalist on Seeking Alpha | August 11, 2020