Published Wed, 14 Mar 2018 15:32:39 -0400 on Seeking Alpha
VEREIT, Inc. (VER) is a gift for shareholders around $7. The commercial property REIT makes an excellent value proposition at today's price point as shares as significantly undervalued. I have added VEREIT, Inc. as a long-term holding to my income portfolio because the real estate investment trust's dividend is better than its reputation. An investment in VER yields 7.8 percent.
VEREIT, Inc., formerly known as American Realty Capital Properties, has been through a lot. The company grew at a rapid pace before being tangled up in a major accounting scandal at the end of 2014 that led to the suspension of its dividend, a restatement of its financials, and a reshuffling of its senior management team. The new CEO at the time, Glenn Rufrano, has run a tight ship since 2015, though. He rebranded the company, divested of higher-risk restaurant real estate, reduced leverage, and started to pay a dividend again in 2015.
Source: VEREIT, Inc. Investor Presentation
Yet, VEREIT, Inc. commands a much lower valuation multiple in the sector than other commercial property REITs such as Realty Income Corp. (O) or National Retail Properties, Inc. (NNN).
As a matter of fact, VEREIT, Inc.'s shares sell for a discount to book value whereas the other REITs command a premium to book value. And a rather significant premium, too.
VER Price to Book Value data by YChartsAnd here's how VEREIT, Inc. currently compares against the other two commercial property REITs in... Read more
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