JERSEY CITY, N.J. - Veris Residential, Inc. (NYSE: VRE), a real estate investment trust, announced Monday it has initiated a public offering of 10.5 million shares of its common stock. The offering is being managed by J.P. Morgan, Goldman Sachs (NYSE:GS) & Co. LLC, and BofA Securities as the joint book-runners.
The underwriters have an option, valid for 30 days, to purchase up to an additional 1.575 million shares. Veris Residential's plans for the net proceeds include financing the acquisition of 55 Riverwalk Place, a mixed-use residential and retail property in West New York, New Jersey.
Should the acquisition not proceed, the funds may be redirected to general corporate purposes, which could include reducing the company's mortgage debt, specifically the $157 million secured by the Soho Lofts in Jersey City.
The shares are being offered under an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Prospective investors can obtain a copy of the preliminary prospectus from the offices of the managing book-runners or by visiting the SEC's EDGAR online database.
The press release includes forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from the company's expectations. These statements are protected under the safe harbor provisions of federal securities laws.
Veris Residential, known for its environmentally and socially responsible multifamily properties, currently holds interests in 22 multifamily rental properties, in addition to other non-core assets and land with development potential.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information provided is based on a press release statement from Veris Residential, Inc.
InvestingPro Insights
As Veris Residential, Inc. (NYSE: VRE) embarks on its public offering of 10.5 million shares, investors may be scrutinizing the company's financial health and market position. According to InvestingPro data, Veris Residential has a market capitalization of $1.54 billion. The company's revenue has shown a positive trajectory with a growth of 16.24% over the last twelve months as of Q1 2024, which signifies a strengthening position in its sector.
Despite the growth in revenue, an InvestingPro Tip highlights a potential liquidity concern, as the company's short term obligations currently exceed its liquid assets. This could be an important consideration for investors, especially in light of the company's plans to finance acquisitions and reduce mortgage debt. Additionally, Veris Residential is trading at a high EBITDA valuation multiple, suggesting that the market has high expectations for the company's future profitability.
Investors looking to delve deeper into Veris Residential's financials can find a wealth of additional InvestingPro Tips on https://www.investing.com/pro/VRE. For those considering an in-depth analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 6 detailed InvestingPro Tips that could further inform investment decisions.
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