Why a Major Fund Cut Its Stake in This REIT Still Down 70% Since 2007

1 week ago 6

Jonathan Ponciano, The Motley Fool

Tue, December 9, 2025 astatine 4:50 AM CST 5 min read

New York City-based Argosy-Lionbridge Management sold 372,132 shares of Veris Residential successful the 3rd quarter.
The nett presumption alteration from 4th to 4th was astir $5.5 million.
Following the transaction, Argosy-Lionbridge reported holding 265,413 VRE shares valued astatine astir $4 million.
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New York City-based Argosy-Lionbridge Management disclosed a merchantability of 372,132 shares of Veris Residential (VRE), reducing its presumption by $5.5 cardinal successful the 3rd quarter, according to a November 14 SEC filing.

According to a Securities and Exchange Commission (SEC) filing dated November 14, Argosy-Lionbridge Management reduced its holding successful Veris Residential (NYSE:VRE) by 372,132 shares during the 3rd quarter. The updated presumption stands astatine 265,413 shares valued astatine $4 cardinal arsenic of September 30.

The Veris Residential involvement present represents 2.7% of Argosy-Lionbridge’s reportable AUM.

Top holdings aft the filing:

NYSE: REXR: $24.9 cardinal (16.4% of AUM)
NYSE: AIV: $23.1 cardinal (15.2% of AUM)
NYSE: ELME: $21.5 cardinal (14.1% of AUM)
NYSE: FR: $20.8 cardinal (13.7% of AUM)
NYSE: LEN: $19.6 cardinal (12.9% of AUM)

As of Monday, shares of Veris Residential were priced astatine $14.18, down 19% implicit the past twelvemonth and good underperforming the S&P 500, which is up 12% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Monday)	$14.18
Market Capitalization	$1.6 billion
Revenue (TTM)	$285.2 million
Net Income (TTM)	$63 million

Veris Residential owns, operates, acquires, and develops Class A multifamily residential properties with a absorption connected sustainability and environmentally conscious features.
The institution serves residents seeking sustainability-conscious manner needs.
It caters chiefly to municipality and suburban renters successful markets with precocious request for eco-friendly surviving environments.

Veris Residential, Inc. is simply a existent property concern spot specializing successful Class A multifamily properties, emphasizing sustainability and affirmative assemblage impact. The institution leverages a disciplined operational attack and beardown firm governance to thrust worth for shareholders. Its strategy centers connected gathering the evolving manner needs of residents portion maintaining a competitory borderline done environmentally liable practices.

Veris is delivering cleaner fundamentals — sequential occupancy gains, 3.9% blended rental growth, and accrued full-year guidance for funds from operations — yet the banal remains profoundly discounted, down much than 70% from 2007 and inactive lagging the S&P 500. For a money overweight concern and multifamily names with steadier equilibrium sheets, trimming a smaller, much levered presumption fits the pattern: Veris inactive carries 10x normalized nett debt-to-EBITDA and is leaning heavy connected plus income to delever.

Even so, Veris’ third-quarter numbers were solid. Net income swung to $0.80 per diluted stock (from a nonaccomplishment of $0.10 per stock a twelvemonth earlier), and absorption closed oregon contracted connected $542 cardinal of non-strategic dispositions, utilizing the proceeds to discontinue $394 cardinal of indebtedness and driblet involvement costs. Occupancy climbed to 94.7%, and the institution reaffirmed steadfast same-store gross maturation of 2.2% to 2.7% for this year.

For semipermanent investors, the cardinal question is whether Veris tin execute its program accelerated capable to adjacent that valuation spread — oregon whether balance-sheet hazard continues to warrant a smaller weighting compared with the fund’s apical holdings.