Why Argosy-Lionbridge Reduced Its Stake in Veris Residential

On a particularly nippy November day, a rather peculiar thing happened. Argosy-Lionbridge Management, an entity based in the grand metropolis of New York City, decided to part ways with a hefty chunk of Veris Residential (VRE) shares. They unloaded a dazzling 372,132 shares during the third quarter, whittling down their stake by a cool $5.5 million. And why, you might ask? Well, according to a rather bland filing to the SEC on November 14, it seems they weren’t terribly fond of their financial partner anymore.

The Tale of the Vanishing Shares

Argosy-Lionbridge, once holding a sizeable fortune in Veris Residential, saw fit to trim its portfolio. As of September 30, their remaining shares now stood at a paltry 265,413 – valued at just $4 million. A far cry from the $5.5 million they once hoarded with fervor. It’s like a child reluctantly giving up their favorite, but now quite tattered, teddy bear. Only this bear was worth a great deal more than a few lost naps.

What’s the Bigger Picture?

Now, this move wasn’t entirely shocking, no, no, not at all. The Veris Residential shares had begun to resemble an old and battered toy that had lost its charm. At $14.18 each, they’ve dropped a hefty 19% over the past year. Even worse, the S&P 500, that ever-haughty yardstick of success, had marched onward with a 12% gain during the same time. Veris Residential? Well, it hasn’t quite lived up to the glittering promises it once made. How sad.

To put it simply, the fate of Veris Residential seems uncertain. Argosy-Lionbridge’s trimmed position now represents a mere 2.7% of their assets under management (AUM), down from a once-larger figure that spoke of far fonder days. And in case you were wondering about Argosy-Lionbridge’s other darling investments, they’ve stashed their money in a few safer, sturdier assets. Oh, the steady old favorites:

REXR: $24.9 million (16.4% of AUM)
AIV: $23.1 million (15.2% of AUM)
ELME: $21.5 million (14.1% of AUM)
FR: $20.8 million (13.7% of AUM)
LEN: $19.6 million (12.9% of AUM)

The Company in the Spotlight

Metric	Value
Price (as of market close Monday)	$14.18
Market Capitalization	$1.6 billion
Revenue (TTM)	$285.2 million
Net Income (TTM)	$63 million

The Curious Case of Veris Residential

Veris Residential, dear reader, is no mere ordinary real estate company. No, no, it’s a Real Estate Investment Trust (REIT) with a rather grand vision. They own, operate, acquire, and develop Class A multifamily residential properties. They dazzle us with sustainability and eco-friendly features-oh, how delightfully modern! They focus on urban and suburban renters who demand nothing less than environmentally conscious living spaces.

But what good is a grand vision if you’re just watching the numbers slide further down a rather grim slope? Veris has certainly made some attempts to turn the tide. It has posted sequential occupancy gains and a blended rental growth of 3.9%. Yet, despite all their efforts, their stock price keeps floundering like a fish too tired to swim.

The Foolish Take

And here lies the crux of it all. Despite Veris’ admirable clean-up act-improving occupancy and revving up revenue guidance-its stock is still cheaper than a pie thrown by a disgruntled baker. Down over 70% from its 2007 heyday, it simply cannot keep up with the sassy S&P 500. Even the mightiest investors like Argosy-Lionbridge can’t ignore the steep hill Veris has to climb. The company’s balance sheet remains a bit wobbly, holding 10x normalized net debt-to-EBITDA-no simple feat to untangle. Perhaps, that’s why they’ve been shifting around assets faster than a magician’s hand.

Still, for long-term investors with patience, the real question remains: Can Veris Residential repair the crumbling walls of its valuation, or will the risks continue to outshine any potential rewards? One must wonder.

As for Argosy-Lionbridge? Well, perhaps their decision to trim their stake is a reflection of their cautious approach-an approach that values stability over hope in the endless storm of speculative investments. And who can blame them?

Glossary of Mysterious Terms

13F reportable assets under management (AUM): A peculiar list of investments that managers must reveal to the SEC, much like a child must confess their broken toys to the grown-ups.

Assets under management (AUM): The total market value of assets that a fund looks after, as if they were the most precious trinkets in a treasure chest.

Stake: The portion of ownership one has in a company or investment. Think of it as your share of the pie-sometimes large, often small, but always of value.

Class A multifamily residential properties: High-quality, luxurious apartments that are almost as posh as the Queen’s hat collection. Only the best for those who can afford it!

Real estate investment trust (REIT): A company that invests in real estate and gives its profits to its shareholders, like a mysterious benefactor doling out the spoils of their secretive empire.

Disciplined operational approach: A method of working that values order and control, like the carefully organized chaos of a tidy desk drawer.

Corporate governance: The set of rules that help keep companies in line. It’s the invisible hand that keeps the naughty children in check.

TTM: The latest 12 months, as if you were counting days in a peculiar calendar, full of twists and turns.

Oh, how delightfully complicated the world of finance is! 🧐

2025-12-09 13:54