Veris Residential, Inc.

Where It Passes

Where It Falls Short

• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-0.0%

  ✗Buffett> 10%

  ROIC - WACC-10.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.09x -> 0.11x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital1.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=0.1%; FY2024: ROIC=1.0%; FY2025: ROIC=1.0%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC1.0% (RR=100% x ROIC=1.0%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 1.0%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 4▾

  VRE overvalued: all 4 models price fair value below $18.92 (median $12.43)

  Graham fair value$14.90

  ✗Graham-27.1% margin vs $18.92

  Greenblatt fair value$1.99

  ✗Greenblatt-849.5% margin vs $18.92

  Pabrai fair value$10.19

  ✗Pabrai-85.7% margin vs $18.92

  Akre fair value$14.68

  ✗Akre-28.9% margin vs $18.92
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag VRE's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.10, IC: 1.9x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.10

  ✗Lynch< 0.33

  Cash - Long-term Debt$-1.3B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change56.07% -> 50.32%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.10

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.10

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.9x, D/EBITDA=5.1x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.10

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0955; #3316/4210 (top 78.8%)

  ✗AsnessTop 30% of eligible cross-section
• Verdicts8% pass✓ 1✗ 11▾

  Split decision: 11 FAIL · 4 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (2/7)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (3/10)✗MungerFAIL (1/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (0/6)✗MarksFAIL (3/5)✓AckmanPASS (5/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (0/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability13% pass✓ 9✗ 26▾

  14 of 16 flag VRE's profitability — Graham, Buffett, Lynch +11 more

  Positive EPS (10 years)21/28 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)21/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-3.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)10.9% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE6.4%

  ✗Lynch> 15%

  EBIT / Enterprise Value1.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.0%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.78%

  ✓PiotroskiROA > 0

  ROA Change YoY-0.78% -> 2.78% (delta: +3.55%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.81%, ROA=2.78%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY97.0% -> 96.8%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue25.2%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity6.4%

  ✗Dreman> 12%

  Margin of SafetyP/FFO=10.9x

  ✓PabraiP/FFO < 15

  Return on Equity-1.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency21/28 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue10.9%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity6.4%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend2.0% (2023) -> 10.9% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 97.0% -> 96.8%, operating margin 2.0% -> 10.9%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+4.09%; #1982/6340 (top 31.3%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+10.31%; #2781/3702 (top 75.1%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+6.37%; #2294/5226 (top 43.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0212; #1503/5884 (top 25.5%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR24.3% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth25% pass✓ 5✗ 8▾

  6 of 8 flag VRE's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency21/28 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth6.4%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 97.0% -> 96.8%, operating margin 2.0% -> 10.9%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR-1.3%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR24.3% over 5 years

  ✗Neff7%-20% annualized
• Valuation31% pass✓ 6✗ 19▾

  9 of 13 flag VRE's valuation — Lynch, Greenblatt, Dreman +6 more

  Price / FFO per Share10.9x

  ✓Graham<= 15x✓Dreman< 12x✓Ackman<= 25

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value1.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.0%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / (CFO / Shares)23.3x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=23.7x, OE Yield=9.1%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/FFO or FFO YieldP/FFO=10.9x, FFO Yield=9.2%

  ✓PabraiP/FFO < 15 or FFO Yield > 10%

  P/B or P/E vs. Historical AverageP/E=23.7x, P/B=1.5x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / EPS23.7x

  ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price vs. Trailing Low

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Price / Book Value per Share1.5x

  ✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Net income / market capitalization+4.09%; #1982/6340 (top 31.3%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.6424; #2382/6449 (top 36.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS23.7x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.54x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-20.1%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1654; #3958/5247 (top 75.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date

  ✗OshaughnessyTop 10% of eligible cross-section
• Cash Flow33% pass✓ 3✗ 4▾

  4 of 6 flag VRE's cash flow — Buffett, Dreman, Neff +1 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Operating Cash Flow$76.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.81%, ROA=2.78%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)23.3x

  ✗Dreman< 8x

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section