Don't Buy VEREIT Expecting a Takeover
Net lease real estate investment trust (REIT) VEREIT (NYSE: VER) has been struggling under a cloud of uncertainty since late 2014. That was when an accounting scandal forced major changes, including a new management team, a portfolio makeover, and the temporary suspension of the dividend. With all of that behind the company, largely including the legal mess left over from the accounting revelation, VEREIT is basically a new company. But it's still cheap relative to peers. That's a reason for investors to buy -- but don't go in expecting another REIT to take advantage of that cheap valuation and acquire VEREIT. Here's why.
You have to give credit to Glen Rufrano and the team he brought in to clean up the mess that was left behind following the 2014 accounting issues. A respected industry veteran, he set out clear and simple goals, including strengthening the balance sheet, streamlining the portfolio, and reinstating the dividend. The targets were public, so analysts and investors could monitor the progress. VEREIT achieved every one of its goals.
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Source Fool.com
