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Vereit: Is A Breakout Just Around The Corner?

MnMInvestor profile picture


  • Since the accounting scandal, VEREIT has largely traded in line with Fed policy.
  • The stock has not received any credit for the progress the current management team has made.
  • VEREIT is attractively priced for those willing to accept the legal risks.


Last year, I started the year by calling VEREIT, Inc. (VER) my mid-cap stock of the year in an article published on Seeking Alpha here. I asserted that at $8.48, the stock was due for some multiple expansion, as it was not receiving credit for the progress that the new management team was making in improving its financial situation. Management had laid out a clear plan to improve itself by paying down debt (by shrinking the real estate portfolio), reducing the Red Lobster concentration, rebuilding Cole Capital, and achieving investment grade metrics.

I followed that first article up in April with an update here where I noted that even with a nice run in the stock to over $9.00, there was still room to go.

Then, in May, when the REIT rally continued, I grew concerned with the pace and wrote here that I viewed REIT valuations as getting a bit frothy and that I had taken some profits. I ended up selling most of my VER shares at $9.43 (held outside of my MnM Portfolio, for those who follow me regularly; I did not sell any of my REITs at that time in the MnM Portfolio). Looking back, I didn't get the top of the REIT rally 100% correct, as it continued into July and topped $10, but for those like me who took profits, it turned out to be a good move. VER ended up closing the year out at $8.46, largely in line with where it had started the year, giving all of the rally back. My mid-cap stock of the year ended up being the stock of the first half of the year, but you can't say I didn't warn you.

Fed Policy has Driven REIT Pricing

It shouldn't be any surprise to any seasoned

This article was written by

MnMInvestor profile picture
Forty year old individual investor building my portfolio towards the goal of retiring with a steady stream of income. Dedicated to dividend growth investing. Looking for opportunities to learn from others and share my investing endeavors with the SA community. CURRENTLY ON HIATUS FROM WRITING

Analyst’s Disclosure: I am/we are long VER, O. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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