CURB
Curbline Properties Corp.
$30.99
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Strong
·
Conviction
Overvalued
Trading 55.9% above fair value
You pay
$30.99
Bear
$16.13
Fair
$19.88
Bull
$23.64
Bear
$16.13
-47.9%
$0.98 FFO × 16x
Fair
$19.88
-35.8%
$0.98 FFO × 20x
Bull
$23.64
-23.7%
$0.98 FFO × 23x
Key Value Driver
FFO/share ($0.98) × retail P/FFO multiple
Implied Market Multiple
31.5x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $30.25 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $19.88 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: $12.86 (26% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $30.25 (from 8 analysts). Our estimate is 43% below 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