VMRK changes
Pick any two versions below to diff them.
- Price
- $61.26 → $64.63(+5.5%)
- Discount category
- Well below intrinsic value → Below intrinsic value
- Next earnings
- Nov 4, 2026 → Feb 4, 2027
- Next earnings is estimate
- No → Yes
- About
- Vivmark Residential is a real estate investment trust (REIT) that owns, develops and manages rental apartments in large metropolitan areas of the United States. It was formed on August 17, 2026, when AvalonBay Communities and Equity Residential completed an all-stock merger of equals. Equity Residential was the legal acquirer and changed its name to Vivmark Residential, and each AvalonBay share became 2.793 Vivmark shares. The shares started to trade under the ticker VMRK on August 18, 2026. The company owns more than removed: 184,000 added: 185,000 apartments and has about $4.4 billion of removed: development, or about 11,100 apartments, under construction. added: development underway. It has headquarters in Chicago and Arlington, Virginia. Benjamin Schall is President and CEO.
- Thesis
- The market prices Vivmark for slow rent growth and for the risk of a large merger. Same store revenue added: on a merged basis grew removed: only 1.9% at legacy Equity Residential added: 2.4% in removed: Q2 added: Q3 2026, and removed: Vivmark's added: the 2026 outlook added: is 2.0% to 2.4%. Expenses grow faster: the 2026 outlook for same store removed: residential revenue added: expense growth is removed: 2% at added: 4.1% to 4.7%, partly because of higher property taxes on AvalonBay's California communities after the removed: midpoint. added: merger. The merger closed on August 17, 2026, and the company must now combine two large operating platforms. removed: Management expects $175 million of gross added: In November 2026, management raised its target for net run-rate operating synergies removed: and $125 added: to $135 million added: from $125 million, to be reached by March 2028, and lowered its estimate of removed: net synergies after real estate tax reassessments. added: total merger costs to about $725 million. For the gap to close, three things must be true. The company must reach the synergy target and show it in its results. Rent growth must improve in removed: 2027, led by markets such as Northern California added: 2027; the blended rate on new and removed: New York City, where it is strongest now. added: renewed leases was 3.1% in Q3 2026. The development pipeline of about $4.4 billion must deliver its expected returns. The removed: Q3 2026 report on November 4, 2026, is the first report of the combined company. The 2027 guidance in early 2027 added: is the next test, and it shows the plan for synergies and rent growth. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is weak rent growth if job growth slows.
- Risks
- The merger combines two large companies with different systems and teams. If the integration is slow or costs more than planned, the removed: $125 added: $135 million of expected net synergies can come late or be smaller. Rent growth is slow: the 2026 outlook for same store removed: residential revenue growth added: on a merged basis is removed: 2% added: 2.0% to 2.4%, and expenses grow faster, at removed: the midpoint. added: 4.1% to 4.7%. Higher property taxes on AvalonBay's California communities add about $50 million of yearly costs from 2027. Slower job growth or new apartment supply in its markets can reduce rents and occupancy. The company has about $4.4 billion of development under construction. Higher construction costs or slow lease-up can lower the returns on these projects. removed: Notes mature regularly, including $300 million added: Debt matures regularly. At September 30, 2026, $1.83 billion of principal was due removed: October 15, 2026 added: in the rest of 2026, including $1.0 billion of commercial paper, and removed: $400 added: $872 million added: was due removed: May 15, added: in 2027. Higher interest rates increase the cost to refinance removed: them. added: it.
- Balance sheet
- added: Cash: $112M Debt: $17.6B Net debt: $17.4B Undrawn credit line: $4.0B, to April 2030 Ratings: S&P A (stable outlook) Vivmark removed: has not yet published added: funds itself mostly with unsecured notes, mortgages, commercial paper and a removed: balance sheet for the combined company. added: term loan. At removed: the merger close, it gave an equity market added: September 30, 2026, total debt was $17.0 billion at carrying value added: and $17.56 billion of removed: about $51 added: principal. Unsecured debt was $14.96 billion, including $1.02 billion added: of commercial paper and removed: an enterprise added: a $550 million term loan due April 2029, and secured debt was $2.04 billion. The carrying value added: is lower than the principal mostly because of added: a fair value discount of about removed: $70 billion. At June 30, 2026, before added: $516 million on the removed: merger, legacy Equity Residential added: debt from the merger. The weighted average effective rate was 4.29%, the weighted average maturity was 6.1 years, and 90.8% of the debt had removed: $6.0 added: a fixed rate. Cash and cash equivalents were $112 million, and restricted cash was $276 million. Nothing was drawn on the $5.0 billion of unsecured removed: notes, $1.6 billion of mortgage debt added: revolving credit facilities, which end in April and removed: $1.5 added: December 2030, and available liquidity after the commercial paper was about $3.97 billion. Of the principal, $1.83 billion added: was due in the rest of added: 2026, including the commercial paper, and removed: cash of $36 million. At added: $872 million in 2027. After the removed: close, added: quarter, the removed: operating partnership assumed AvalonBay's unsecured notes, which include added: company repaid $300 million of removed: 2.900% added: 2.90% notes removed: due October 15, 2026, $400 million of 3.350% notes due May 15, 2027 and removed: $450 added: $500 million of removed: 3.200% added: 2.85% notes removed: due January 15, 2028. In August 2026, the operating partnership agreed to issue $600 million added: at maturity. Debt was 26.2% of removed: 4.950% notes due 2031 and $400 million added: total market capitalization of removed: 5.450% notes due 2036. On added: $64.9 billion at September removed: 16, 2026, it increased added: 30, 2026. S&P raised its removed: commercial paper program added: rating to removed: $2.5 billion from $1.5 billion. The Q3 2026 report gives the first combined balance sheet. added: A with a stable outlook on August 18, 2026. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Nov 4, 2026: Q3 2026 earnings: first combined report. removed: Pending. added: Passed. Watch: Same store revenue growth near the 2% outlook and integration on plan pass; a cut to the outlook or higher merger costs fail. added: Outcome: Same store revenue on a merged basis grew 2.4%, the 2026 outlook rose to 2.0% to 2.4%, the synergy target rose to $135 million and the estimate of merger costs fell to about $725 million. Feb added: 4, 2027 (estimate): 2027 guidance: synergies and rent growth. Pending. Watch: 2027 guidance with faster same store revenue growth and most of the removed: $125 added: $135 million of net synergies passes; slower growth or delayed synergies fail.
- Recent events
- added: Nov 4, 2026: Vivmark reported Q3 2026 results, its first quarter as a combined company. Core FFO was $1.03 per share, up 5.1%, and EPS was a loss of $1.27 per share, which includes $0.92 per share of merger costs. On a merged basis, same store revenue rose 2.4%, expenses rose 3.6% and NOI rose 1.7%, and physical occupancy was 95.8%. Vivmark raised its target for net run-rate synergies to $135 million and lowered its estimate of merger costs to about $725 million. It guided to Q4 2026 core FFO of $1.01 to $1.05 per share and 2026 same store revenue growth of 2.0% to 2.4%. Oct 8, 2026: Vivmark said that it will report Q3 2026 results after the market closes on November 4, 2026, and hold a conference call on November 5, 2026. Sep 16, 2026: The operating partnership increased its commercial paper program to a maximum of $2.5 billion from $1.5 billion. Sep 15, 2026: Vivmark set its 2026 outlook for same store residential revenue growth at 2% at the midpoint. At September 11, 2026, same store net effective asking rents were up 3.6% year over year, physical occupancy was 95.7% and 60% of residents renewed their leases. Aug 18, 2026: S&P Global Ratings raised Vivmark's long-term issuer credit rating to A with a stable outlook, after the merger closed. Vivmark said that S&P expects benefits from its larger scale, operating efficiencies and conservative financial policy. Aug 17, 2026: AvalonBay and Equity Residential completed their merger of equals, and Equity Residential changed its name to Vivmark Residential. Each AvalonBay share became 2.793 Vivmark shares. The operating partnership assumed AvalonBay's unsecured notes. Aug 4, 2026: The operating partnership agreed to issue $600 million of 4.950% notes due October 1, 2031 and $400 million of 5.450% notes due October 1, 2036. Jul 22, 2026: Equity Residential reported Q2 2026 results. Normalized FFO per share rose 3.0% to $1.02. Same store revenues rose 1.9%, expenses rose 3.0% and NOI rose 1.4%. The company raised the midpoint of its guidance for same store revenue and NOI. May 21, 2026: Equity Residential and AvalonBay announced an agreement to combine in an all-stock merger of equals. They expected $175 million of gross synergies and $125 million of net synergies, and an initial annual dividend of $2.81 per share.