EGP
EastGroup Properties, Inc.
$210.17
Real Estate Investment Trust
85%
P/FFO × Industrial REIT Multiple
Mild
·
Conviction
Fair Value
Trading 14.2% below fair value
You pay
$210.17
Bear
$200.48
Fair
$245.03
Bull
$289.58
Bear
$200.48
-4.6%
$8.82 FFO × 23x
Fair
$245.03
+16.6%
$8.82 FFO × 29x
Bull
$289.58
+37.8%
$8.82 FFO × 34x
Key Value Driver
FFO/share ($8.82) × industrial P/FFO multiple
Implied Market Multiple
23.8x
Summary
Our base-case estimate uses P/FFO × Industrial REIT Multiple. We then blend that result with the average analyst price target of $228.36 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $245.03 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