I found that this can happen if the referenced project is targeting a higher version of the framework than the project that is trying to use it. You can tell if this is the problem by going to the output window and looking for something similar to this:
The primary reference "my_reference" could not be resolved because it was built against the ".NETFramework,Version=v4.7.2" framework. This is a higher version than the currently targeted framework ".NETFramework,Version=v4.7".
The solution is to change the target framework of one or other of the projects.