Veris Residential, Inc. Announces Withdrawal of Public Offering of Common Stock
Veris Residential (NYSE: VRE) announced the withdrawal of its proposed public offering of common stock. CEO Mahbod Nia stated that the decision aligns with the company’s disciplined capital allocation approach and aims to protect shareholder interests. Consequently, no shares will be sold, and the pending acquisition of 55 Riverwalk Place will be terminated. The announcement emphasized that this press release does not serve as a solicitation for the sale or purchase of securities in any jurisdiction where it would be unlawful.
- Decision aligns with a disciplined capital allocation approach.
- Move aims to protect shareholder interests.
- Continued focus on optimizing the company's platform, portfolio, and balance sheet.
- Termination of the pending acquisition of 55 Riverwalk Place.
- Potential missed opportunity for raising capital through the stock offering.
- Possibility of shareholder dilution remains if future offerings are considered.
Insights
The decision by Veris Residential, Inc. to withdraw its public offering of common stock reflects a strategic recalibration. Generally, companies issue new shares to raise capital for expansion, debt reduction, or other strategic initiatives. By retracting this offering, Veris may be indicating either unforeseen financial resilience or concerns about current market conditions being unfavorable for issuing new stock.
It's important to note that issuing new stock often dilutes existing shareholders' equity, which can be a sensitive issue. The withdrawal could be seen as an effort to protect shareholder value and avoid dilution. On the flip side, it may also imply that the company does not see the immediate need for additional capital, which can be a positive signal regarding its current financial health.
The mention of terminating the pending acquisition of 55 Riverwalk Place introduces another layer of complexity. Acquisitions are typically aimed at growth and diversification. Scrapping such a plan might suggest a strategic shift, potentially focusing on internal optimization and leveraging existing assets more effectively.
In terms of market reaction, the short-term response could be mixed. Some investors might view the withdrawal positively as a protective measure, while others might question the company's growth strategy. Long-term implications will largely depend on Veris Residential's ability to effectively execute their stated value creation plan.
From a market perspective, the withdrawal of a public offering often signals underlying concerns either about the company's valuation or broader market conditions. In this case, Veris Residential's decision can be understood as a cautious approach given the current economic landscape. Market conditions may not be favorable for achieving a desirable valuation on the new shares, which could undercut the intended financial benefits of the offering.
The announcement also indicates an intention to terminate the pending acquisition of 55 Riverwalk Place, suggesting a strategic realignment. This move could imply that the anticipated synergies or projected returns from the acquisition might not be as promising as initially thought. It's also possible that internal resource allocation has been reprioritized to focus on optimizing their current portfolio and balance sheet, which might yield more immediate or secure returns.
For investors, this cautious stance can be interpreted as the management's effort to safeguard against overextension in uncertain times. The market might view this as a prudent adjustment in strategy, reducing potential risks associated with over-leverage or market volatility.
Mahbod Nia, Chief Executive Officer of Veris Residential, said, "Following careful consideration of all relevant factors, consistent with our disciplined approach and with the best interests of our shareholders in mind, we have made the decision to withdraw our previously announced public offering of common stock. We greatly appreciate the continued trust and support of our shareholders as we seek to continue executing our three-pronged approach to value creation encompassing capital allocation and further optimization of our platform, portfolio and balance sheet."
As a result of the withdrawal, no shares of common stock will be sold pursuant to the offering. Additionally, Veris Residential intends to terminate its pending acquisition of 55 Riverwalk Place.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements relate to, without limitation, the Company's future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, the Company can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from what is expressed or forecast in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements. Factors that could materially affect results of the Company include those risk factors contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and the Company's other public filings. Copies of each filing may be obtained from the Company or the SEC. The Company assumes no obligation to update and supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
About Veris Residential, Inc.
Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large. As of March 31, 2024, the Company owned or had interests in 22 multifamily rental properties, as well as non-core assets comprised of four parking/retail properties, plus developable land.
Investor Contact
Amanda Lombard
Chief Financial Officer
732-590-1010
alombard@verisresidential.com
Anna Malhari
Chief Operating Officer
732-590-1010
amalhari@verisresidential.com
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SOURCE Veris Residential, Inc.
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