Veris Cancels Stock Offering After One Day

On Monday, Veris Residential announced a stock offering to help fund its purchase of a 348-unit apartment building in New Jersey. A day later, it reversed course.

Veris scuttled its planned stock offering Tuesday, Bisnow reported. The abrupt change sent shares of the luxury multifamily company plummeting.

“Following careful consideration of all relevant factors, consistent with our disciplined approach and with the best interests of our shareholders in mind, we have made the decision to withdraw our previously announced public offering of common stock,” Veris CEO Mahbod Nia said in a statement.

Veris had announced an underwritten public offering of 10.5 million shares of common stock. The underwriters were to be granted a 30-day option to purchase up to nearly 1.6 million additional shares.

Proceeds were to be used towards the acquisition of 55 Riverwalk Place in West New York, a multifamily property on the New Jersey side of the Hudson River with 48,000 square feet of retail space.

Veris already seemed to be hedging its bets in Monday’s announcement, however, revealing if that acquisition were to fall through, the proceeds would instead go towards “general corporate purposes and working capital,” such as paying off a $157 million mortgage secured by Soho Lofts, a 377-unit Jersey City property.

Veris did not respond to a request for comment by press time.

Veris’ stock dipped 7 percent on that news after the market closed Monday. The real estate investment trust’s share price has hovered around the same level since then and is down 9.6 percent year-to-date.

The unusual change of plans was just the latest drama for Veris as it pivots since changing its name from Mack-Cali Realty in 2021.

Two years ago, Kushner Companies attempted to acquire the REIT in a takeover bid that quickly turned ugly. At one point, Kushner accused Veris of misleading the public. Kushner dropped the takeover bid last January.

— Holden Walter-Warner