AKR
Acadia Realty Trust
$21.96
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Overvalued
Trading 3.2% above fair value
You pay
$21.96
Bear
$17.03
Fair
$21.28
Bull
$25.54
Bear
$17.03
-22.4%
$1.28 FFO × 13x
Fair
$21.28
-3.1%
$1.28 FFO × 17x
Bull
$25.54
+16.3%
$1.28 FFO × 20x
Key Value Driver
FFO/share ($1.28) × retail P/FFO multiple
Implied Market Multiple
17.1x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $20.50 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $21.28 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify