In an article published on Seeking Alpha, the author stated four tipping points for Vereit Inc (NYSE:VER). These four points are Portfolio Pruning, Investment Grade Rating, Monetize Cole and Safe Dividend. The author added that the company’s dividend yield and share price are appearing awfully cheap. There is little doubt that the company has remained an ugly duckling in the Net Lease segment, as the total return for VER stand at -36.9% in past one year.
Even in the last three-month period, VER has underperformed compared to the other Net Lease players including Realty Income Corp (NYSE:O), W.P. Carey, Inc (NYSE:WPC) and National Retail Properties, Inc. (NYSE:NNN). The last one month provides unchanged conclusive evidence.
The company has failed to respond to any catalysts to lead its share price. Mr. Market is searching for a “tipping point” that can result in an up move in the share price and more outstandingly, start to reward the frustrated long term investors.
Here comes the major question, what is the tipping point for VER? As per Malcomb Gladwell, the tipping point can be stated as the boiling point, the threshold, and the moment of critical mass. Last week, VER supported an Investor Day event in New York City and the company offered a big 80+ page presentation.
Mr. Glenn Rufrano, the CEO of Vereit Inc (NYSE:VER) hosted the event along with many other major executives on the management team. As per Rufrano, there are several advantages of a full service real estate firm.
As a multi-disciplined landlord in net lease segment, Rufrano offers the broad-based transactional base in which company sources retail, office, and shopping and industrial center assets. Probably, one of the believed catalysts for VER is culling process or the pruning plans in which company has commenced to sell off flat lease properties, non-core properties, casual dining restaurants and non-controlled JVs.