Stock News Buzz: VEREIT (NYSE:VER)

VEREIT (NYSE:VER) stock observed trading -7.11% off 52-week high price. On the other end, the stock has been noted 24.80% away from low price over the last 52-weeks. The stock disclosed a move of -0.14% away from 50 day moving average and 2.06% away from 200 day moving average. Moving closer, we can see that shares have been trading 2.43% off 20-day moving average. It has market cap of $9.98B and dividend yield of 5.84%.

On Jan. 14, 2020, VEREIT (NYSE:VER) revealed it has closed on an office partnership which will include three VEREIT office assets totaling approximately $137.5 million and 582,000 square feet. This partnership allows VEREIT to reduce balance sheet office exposure while utilizing the Company’s in-house infrastructure to manage and increase the value of the enterprise.

The office partnership was formed with an institutional client of Arch Street Capital Advisors. VEREIT was represented by Mark Penrod, Managing Director, and Daniel Prendiville, Vice President, at Eastdil Secured L.L.C. (Eastdil Secured). Two of the three properties were contributed to the partnership at the time of closing totaling $87.7 million with the last property expected to be added to the partnership in the first quarter of 2020 for $49.8 million.

The partnership has a traditional 80/20 equity structure. The three VEREIT office assets being contributed to the partnership have a weighted average lease term of approximately eight years, are located in three different states, and have a capitalization rate of approximately 7.8%.

Fourth Quarter 2019 Transaction Highlights

  • Acquisitions in the fourth quarter were $166.2 million bringing the total for 2019 to $425.6 million
  • Portfolio dispositions in the fourth quarter were $225.5 million bringing the total for 2019 to $1.1 billion comprised of $739.5 million portfolio dispositions and $326.0 million from the industrial partnership
  • Issued 9.0 million shares under the Company’s at the market (ATM) equity offering program for gross proceeds of $86.7 million at a weighted average price of $9.60 per share
  • Issued $600.0 million aggregate principal amount of 3.10% senior notes due 2029
  • Proceeds from the senior notes along with borrowings under the Company’s revolving credit facility and cash on hand were used to fund the redemption of all $400.0 million of the 4.125% senior notes due 2021, repurchase of $80.7 million of the 3.75% convertible senior notes due 2020, redemption of $200.0 million of VEREIT’s 6.7% Series F preferred stock, and repayment of $185.6 million of mortgage debt
  • Fourth Quarter 2019 Litigation Update
  • As previously disclosed, VEREIT reached an agreement, which is subject to documentation and approval by the Commissioners of the Securities & Exchange Commission (SEC), to settle the SEC investigation for $8.0 million as a civil penalty
  • The court issued an order granting preliminary approval of both the class action settlement and derivative action settlement with a hearing scheduled for January 21, 2020 to consider final approval of both settlements
  • Deadline of December 31, 2019 to file objections to the class action or derivative action settlements passed with no objections filed

The USA based company VEREIT moved with change of 0.53% to $9.41 with the total traded volume of 6562415 shares in recent session versus to an average volume of 10.47M. The stock was observed in the 5 days activity at 2.39%. The one month performance of stock was 2.62%. VER’s shares are at -2.99% for the quarter and driving a 24.14% return over the course of the past year and is now at 1.84% since this point in 2018.  Right now the stock beta is 0.56. The average volatility for the week and month was at 1.45% and 1.59% respectively. There are 1.06B shares outstanding and 1.06B shares are floated in market.

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