Veris Residential (VRE) is back in focus after fresh commentary on its ongoing portfolio optimization, including non core asset sales and efforts to reinforce its balance sheet, alongside modest upward earnings estimate revisions for 2025 and 2026.

Despite the focus on non core asset sales and balance sheet repair, Veris Residential’s share price return has been relatively muted. The stock has shown a 90 day gain of 1.44% and a slightly negative year to date move. The 1 year total shareholder return shows a decline of 2.01% and the 3 year total shareholder return shows a decline of 8.04%, which contrasts with a 5 year total shareholder return of 16.59%. This suggests recent momentum has been soft compared with the longer term picture.

If you are weighing what else to watch in real estate and beyond, it could be a good moment to broaden your view using fast growing stocks with high insider ownership.

With Veris trading at US$14.79 against an average analyst target of US$17.58 and some implied intrinsic upside, you have to ask whether the current discount signals an opportunity or if the market already anticipates the growth ahead.

Most Popular Narrative: 17.8% Undervalued

With Veris Residential’s fair value narrative at US$18.00 against the last close of US$14.79, the gap in expectations is clear and worth unpacking.

The reduction in Veris Residential’s consensus price target reflects a sharp downgrade in revenue growth expectations, from 3.0% growth to a slight contraction, alongside a modest decline in net profit margin, resulting in a new fair value estimate of $18.00.

Want to see what still underpins that premium to the current price? The narrative leans on specific margin assumptions and a detailed cash flow profile. Curious which levers matter most to that US$18.00 fair value call?

Result: Fair Value of $18 (UNDERVALUED)

However, you still need to weigh the high net debt to EBITDA of 11.4x and occupancy pressures at Liberty Towers, which could challenge that fair value story.

Build Your Own Veris Residential Narrative

If parts of this story do not quite align with your view, or you would rather test the numbers yourself, you can quickly build a custom thesis using Do it your way.

A great starting point for your Veris Residential research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.