JERSEY CITY, N.J. - Veris Residential, Inc. (NYSE: VRE), a real estate investment trust, has declared a quarterly cash dividend of $0.08 per common stock share for the fourth quarter of 2024. The dividend, pertaining to the period ending December 31, 2024, is scheduled for payment on January 10, 2025, to shareholders recorded by the end of December 2024.
The announcement indicates that future dividends will be contingent on the Board of Directors' approval, which will consider a variety of factors. These factors include the company's adjusted funds from operations (AFFO), actual cash flow from operations, estimated taxable income, distribution requirements, and potential capital needs.
Veris Residential is known for its commitment to environmental and social responsibility, focusing on owning, operating, and developing Class A multifamily properties. The company aims to cater to the sustainability-conscious lifestyle of its residents while making a positive impact on the communities and the environment. The management team and Board of Directors are experienced and adhere to high standards of corporate governance, sustainable operations, and an inclusive culture.
This dividend declaration is part of the company's financial activities and is based on a press release statement from Veris Residential, Inc. The information provided is intended for investors and the broader market, offering insight into the company's financial distributions and operational direction. It is important for stakeholders to note that the dividend amounts and timings are subject to change based on the company's performance and strategic decisions made by the Board of Directors.
In other recent news, Veris Residential exhibited a significant Q3 performance with a 42% increase in core Funds From Operations (FFO) per share, escalating to $0.17. This growth is attributed to robust market rent growth and efficient management of non-controllable expenses. Consequently, the company has revised its full-year core FFO guidance to between $0.59 and $0.60 per share. Despite reporting a net loss to common shareholders, Veris Residential's same-store Net Operating Income (NOI) grew by 6.7% year-to-date.
Veris Residential also successfully refinanced $308 million in mortgages, extending debt maturities to 2026, and maintained high occupancy rates of 95.1%. The company has initiated a renovation project at Liberty Towers, expecting mid to high teens return on invested capital. Following these developments, BofA Securities upgraded Veris Residential's stock rating from Neutral to Buy, and lifted its price target from $20.00 to $23.00, reflecting confidence in the company's growth trajectory. The firm has also adjusted its forecasts for the company's future FFO, projecting an increase for the years ahead. These recent developments underscore the company's resilience and strategic positioning in the market.
InvestingPro Insights
Veris Residential's recent dividend declaration aligns with its financial performance and market position. According to InvestingPro data, the company's dividend yield stands at 1.54%, with a notable dividend growth of 40% over the last twelve months as of Q3 2024. This growth in dividends reflects the company's commitment to returning value to shareholders, despite facing some financial challenges.
InvestingPro Tips highlight that Veris Residential is currently trading near its 52-week high, with a one-year price total return of 39.12%. This suggests investor confidence in the company's strategy and future prospects. However, it's important to note that the company is not currently profitable, with a negative P/E ratio of -155.45 for the last twelve months as of Q3 2024.
The company's focus on Class A multifamily properties and sustainability appears to be driving growth, as evidenced by a 12.02% revenue growth over the last twelve months. Additionally, Veris Residential boasts a strong gross profit margin of 56.73%, indicating efficient cost management in its operations.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Veris Residential, providing deeper insights into the company's financial health and market position.
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