Veris Residential, Inc. (VRE): A Bull Case Theory

We came across a bullish thesis on Veris Residential, Inc. on Real Assets, Real Value’s Substack by Real Assets Value. In this article, we will summarize the bulls’ thesis on VRE. Veris Residential, Inc.'s share was trading at $14.20 as of July 30^th. VRE’s trailing P/E was 7.30 according to Yahoo Finance.

Veris Residential (VRE), a $1.5B market cap multifamily REIT, owns high-quality, newer apartment assets concentrated in high-barrier markets like Jersey City, Port Imperial, Boston, suburban NJ/NY, and DC. The company, formerly Mack-Cali, fully transitioned out of office properties by 2024 and rebranded in 2021 to reflect its multifamily focus. Amid a strategic review, Veris has begun executing on its plan to sell $300–$500M of assets to reduce leverage below 9.0x net debt/EBITDA and repurchase up to $100M in stock.

In Q2 2025 alone, Veris announced $385M in property sales and binding contracts, and an additional $60M of land sales. These non-core, lower-yielding properties were sold at cap rates of ~5.25%, focusing on smaller, more liquid deals. These dispositions sharpen Veris’s portfolio concentration in its prime Jersey City and Port Imperial holdings, potentially making it a more attractive M&A target. Despite elevated leverage and G&A costs, Veris trades at a ~6.1% implied cap rate, or ~28x AFFO, but at a ~25% discount to an estimated net liquidation value of $20/share. Private market comps and recent transactions by peers like KKR, AvalonBay, and Equity Residential support VRE’s valuation.

The board, handpicked by activist investors Madison International and Bow Street, appears aligned with shareholders and a potential take-private. Madison’s founder recently stepped down from the board, and the CIO’s quiet exit suggests the company may not redeploy sale proceeds, reinforcing the M&A narrative. While standalone performance is constrained by debt and limited cash flow, Veris’s high-quality portfolio, especially its NJ waterfront land, represents significant embedded value and a compelling takeover target.

Previously, we covered a bullish thesis on STAG Industrial, Inc. by Steve Wagner in May 2025, which highlighted strong lease spreads, disciplined asset recycling, and conservative leverage. The company's stock appreciated ~6% as the thesis played out. The thesis still stands. Real Assets Value shares a similar view but emphasizes value unlocking and M&A optionality in Veris Residential.

Veris Residential, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held VRE at the end of the first quarter which was 22 in the previous quarter. While we acknowledge the potential of VRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.