- Erez Asset Management, with a 5% stake, is pressuring multifamily REIT Veris Residential to explore a sale.
- Veris assets, mostly in New Jersey and Massachusetts, are considered underpriced by Erez.
- Erez estimates a sale could fetch a 40%–70% premium over recent trading prices.
- Broader REIT market dynamics and recent significant buyouts point to robust investor demand.
Activist Investor Calls for Sale
Bisnow reports that multifamily REIT Veris Residential faces new pressure as activist investor Erez Asset Management pushes for a company sale. Erez, which owns about 5% of Veris, says the REIT’s 17-property portfolio is undervalued and could attract serious buyer interest.
In a formal letter, Erez CEO Bruce Schanzer said Veris’ assets continue trading well below their net asset value. He pointed to favorable market conditions and recent comparable transactions to strengthen the case for a sale.
Asset Portfolio, Market Context
Veris Residential owns 11 apartment communities along New Jersey’s waterfront near New York City and six more in Massachusetts. In Q3, the REIT maintained solid performance, with 94.7% of its properties leased. It also generated $45.4M in same-store net operating income during the quarter.
However, Veris’ stock has traded below its net asset value for nearly a decade. This persistent gap has raised concerns about shareholder returns and long-term strategy. The company has also explored strategic options for individual assets, including a potential sale or refinancing of a major Jersey City tower.
Meanwhile, investor demand for public REITs has grown stronger. Brookfield recently paid a 34% premium to acquire Peakstone Realty Trust. Similarly, Blackstone offered a 40% premium for a Hawaii retail REIT. These deals signal a renewed appetite for listed REIT acquisitions.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Shareholder Value Concerns
Erez’s letter claims Veris could command a buyout price of $22–$25 per share. That represents a substantial premium to the December share price and reflects the investor’s conviction that incremental improvements or piecemeal asset sales will not close the value gap.
What’s Next
Veris Residential has not commented on Erez’s proposal. The REIT is set to announce Q4 earnings on February 25. As private capital continues targeting listed REITs trading below NAV, pressure is likely to mount on Veris and other public multifamily REITs to consider strategic options.
