So, you own a bunch of apartment buildings. You've been working hard to fix them up, make them nicer, and charge more rent. Then one day, a group of investors knocks on your door with a briefcase full of cash and says, "We'll take it off your hands." That's essentially what just happened to Veris Residential, Inc. (VRE).
The multifamily real estate investment trust announced Monday that it has agreed to be bought by a consortium of investors led by Affinius Capital. The price tag? A cool $3.4 billion in enterprise value. For shareholders, that translates to $19 in cash for each share they own. The same $19-per-share offer goes to holders of the company's operating partnership units.
Now, $19 might just sound like a number. But in the world of mergers, context is everything. That price represents a 23.2% premium over what Veris's stock was trading at on February 4, 2026, before any news of a potential deal was in the air. It's also a 27.5% premium to the stock's average price over the 30 days leading up to that date. In short, it's a pretty nice bump for saying yes.
The buyers plan to fund the purchase with a mix of equity and debt, including a committed $2.08 billion bridge loan. The Veris board has already given the deal a unanimous thumbs-up. The whole thing is expected to wrap up in the second quarter of 2026, assuming shareholders agree and regulators don't raise any red flags.
There's a catch, though, for income investors. Veris says it will pay its regular quarterly dividend for the first quarter of fiscal 2026. After that? The dividend spigot gets turned off. When you're being bought for cash, the new owners typically aren't in the mood to keep sending checks to the old shareholders.
The deal caps off what the company calls a "significant transformation" into a leading multifamily REIT. The idea was to create more value for shareholders, and a $3.4 billion cash buyout is one way to do that.
As if the merger news wasn't enough for one day, Veris also dropped its latest earnings report. The company posted funds from operations—a key profitability metric for REITs—of 19 cents per share. That narrowly beat the analyst consensus estimate of 18 cents. Revenue, however, came in at $71.3 million, which was a bit shy of the $73.022 million analysts were expecting.
Digging into the operational details, the numbers show a company that was performing decently. Net operating income for its same-store properties rose 5.9% year-over-year. The blended net rental growth rate for those properties increased by 2.5%. Occupancy across its same-store portfolio, which includes the Liberty Towers property, stood at 94.4%.
The company ended the year with $280 million in liquidity on its balance sheet. But with a buyout on the horizon, Veris is hitting pause on the usual investor routine. It won't be holding a conference call to discuss these earnings, and it won't be providing any financial guidance for 2026. Why bother forecasting the future when your future is a scheduled merger?
The market's reaction was exactly what you'd expect when someone offers you a big pile of money. Veris Residential shares shot up 12.46% to $18.86 in premarket trading Monday, hitting a fresh 52-week high. That's just 14 cents shy of the $19 buyout price, which suggests investors are pretty confident this deal is going to close.
