CBL
CBL & Associates Properties, Inc.
$47.23
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Strong
·
Conviction
Undervalued
Trading 66.8% below fair value
You pay
$47.23
Bear
$114.34
Fair
$142.33
Bull
$170.32
Bear
$114.34
+142.1%
$9.73 FFO × 16x
Fair
$142.33
+201.4%
$9.73 FFO × 20x
Bull
$170.32
+260.6%
$9.73 FFO × 23x
Key Value Driver
FFO/share ($9.73) × retail P/FFO multiple
Implied Market Multiple
4.9x
Summary
At $9.73 FFO/share with a 20x retail REIT multiple, the base-case value is $142.33 per share. Dividend yield: 3.6%. DDM cross-check: $31.68.
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-based valuation: $31.68 (78% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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