EGP
EastGroup Properties, Inc.
$205.16
Real Estate Investment Trust
85%
P/FFO × Industrial REIT Multiple
Mild
·
Conviction
Fair Value
Trading 13.8% below fair value
You pay
$205.16
Bear
$194.73
Fair
$238.01
Bull
$281.28
Bear
$194.73
-5.1%
$8.82 FFO × 23x
Fair
$238.01
+16.0%
$8.82 FFO × 29x
Bull
$281.28
+37.1%
$8.82 FFO × 34x
Key Value Driver
FFO/share ($8.82) × industrial P/FFO multiple
Implied Market Multiple
23.3x
Summary
Our base-case estimate uses P/FFO × Industrial REIT Multiple. We then blend that result with the average analyst price target of $204.73 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $238.01 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