BNL
Broadstone Net Lease, Inc.
$21.86
Real Estate Investment Trust
85%
P/FFO × Diversified REIT Multiple
Mild
·
Conviction
Fair Value
Trading 3.2% below fair value
You pay
$21.86
Bear
$18.75
Fair
$22.57
Bull
$26.40
Bear
$18.75
-14.2%
$1.39 FFO × 14x
Fair
$22.57
+3.3%
$1.39 FFO × 17x
Bull
$26.40
+20.8%
$1.39 FFO × 20x
Key Value Driver
FFO/share ($1.39) × diversified P/FFO multiple
Implied Market Multiple
15.7x
Summary
Our base-case estimate uses P/FFO × Diversified REIT Multiple. We then blend that result with the average analyst price target of $22.83 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $22.57 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.
Dividend yield of 5.3% is unusually high — make sure the company generates enough cash to keep paying it.
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