Kushner Applauds New Board Appointments at Veris

Rhea-AI Summary

Kushner, a significant shareholder of Veris Residential (NYSE: VRE), has welcomed the recent appointments of Stephanie Williams and Ronald Dickerman to the Board of Directors. These appointments are seen as a critical step towards improving the company’s performance, which has lagged behind industry standards since Bow Street took control almost three years ago. Kushner highlights that Veris has not provided shareholder distributions in two years, has a high operating expense ratio, and has faced substantial value destruction. Kushner is optimistic that new board members will help steer the company towards regaining lost shareholder value.

Positive

• Appointment of experienced real estate professionals to the Board.
• Potential for improved shareholder value with new management direction.

Negative

• Veris has not made distributions to shareholders in two years.
• High operating expense ratios affecting profitability.
• Market capitalization has decreased significantly since Bow Street's takeover.
• Increased debt load and sold off promising development opportunities at low prices.

NEW YORK, Feb. 27, 2023 /PRNewswire/ -- Kushner (together with its affiliates, "Kushner"), a seasoned real estate owner and operator and one of the largest shareholders of Veris Residential (NYSE: VRE) ("Veris"), today sent a press release regarding Veris' two new board appointments:

Kushner Applauds New Board Appointments at Veris

The full text of the press release follows:

Kushner Companies LLC ("Kushner") today issued the following statement:

As one of the largest shareholders of Veris Residential Inc. (NYSE: VRE), Kushner applauds today's announcement of the appointment of Stephanie Williams and Ronald Dickerman to Veris' Board of Directors. Stephanie and Ronald are deeply experienced real estate professionals each with a long history of residential real estate management and transactional success.

As Kushner has been saying for many months, we believe the Veris Board and management needs to acknowledge the fact that since Bow Street took over the Board almost three years ago, the Company's performance has trailed the industry badly. Veris has not made a distribution to shareholders in two years and has one of the highest operating expense ratios in its category. Managing a New Jersey residential REIT with a Board of mainly non-real estate professionals led by an activist hedge fund and a highly paid CEO operating from London has resulted in the beleaguered Veris shareholders who took Bow Street's promises in 2019 and 2020 seriously suffering significant value destruction. Since the takeover, Veris' market capitalization has shrunk, its debt load has increased, its operating expenses have skyrocketed, it has sold off some of its most promising development opportunities at the low end of the range, and the Company has discontinued distributions to its shareholders.

We at Kushner believe that with proper management and direction Veris could return premium value to all of its shareholders. We remind all shareholders that immediately prior to our first offer for the Company in October of last year Veris' share price was $12.47 and has not traded anywhere near where it was trading when Bow Street took over the Board in quite some time. Veris is only trading where it is today because of Kushner's ongoing interest in providing shareholders value for their shares. We are hopeful that today's announcement of the appointment of two seasoned real estate professionals to the Veris Board indicates a new seriousness of purpose on behalf of the entire Veris Board to take the steps necessary to finally secure value for all Veris shareholders. In that regard we will once again try to reach out to the Veris Board to determine whether they will engage with us as a potential buyer of the Company at a substantial premium without infringing our rights to communicate with shareholders transparently. If the Board continues engaging in legal maneuvers to disenfranchise potential bidders we will seek necessary change. If you have any questions, please contact us:

Investor Contact:
Bruce Goldfarb / Pat McHugh
Okapi Partners LLC
(212) 297-0720
info@okapipartners.com 

Media Contact:
Melanie Sloan
Summer Strategies LLC
(202) 365-0606
msloan@summerstrategies.com

About Kushner
Founded in New Jersey in 1985, Kushner is a diversified real estate organization responsible for the ownership, management, development, and redevelopment of properties through the country. Kushner currently owns and operates over 21,000 units across the country, with a strong presence in New Jersey, and has a multifamily development pipeline of over 9,300 units.

View original content:https://www.prnewswire.com/news-releases/kushner-applauds-new-board-appointments-at-veris-301757080.html

SOURCE Kushner

FAQ

What new board appointments were made at Veris Residential on February 27, 2023?

Stephanie Williams and Ronald Dickerman were appointed to the Board of Directors at Veris Residential.

Why is Kushner concerned about Veris Residential's performance?

Kushner believes Veris has underperformed since Bow Street took control, with no shareholder distributions in two years and high operating expenses.

What stock symbol is associated with Veris Residential?

Veris Residential trades under the stock symbol VRE on the NYSE.

What does Kushner propose for Veris Residential to improve shareholder value?

Kushner suggests that proper management and board direction could return premium value to Veris shareholders.

How has Veris Residential's market performance changed since Bow Street's takeover?

Veris's market capitalization has decreased, and its share price has not returned to levels prior to Bow Street's involvement.