CSR
Centerspace
$68.24
Real Estate Investment Trust
85%
P/FFO × Residential REIT Multiple
Strong
·
Conviction
Undervalued
Trading 48.6% below fair value
You pay
$68.24
Bear
$111.83
Fair
$132.69
Bull
$153.54
Bear
$111.83
+63.9%
$7.79 FFO × 21x
Fair
$132.69
+94.4%
$7.79 FFO × 25x
Bull
$153.54
+125.0%
$7.79 FFO × 29x
Key Value Driver
FFO/share ($7.79) × residential P/FFO multiple
Implied Market Multiple
8.8x
Summary
Our base-case estimate uses P/FFO × Residential REIT Multiple. We then blend that result with the average analyst price target of $68.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $132.69 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-based valuation: $47.49 (68% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $68.00 (from 11 analysts). Our estimate is 119% above the consensus -- consider that gap carefully.
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