EPRT
Essential Properties Realty Trust, Inc.
$31.33
Real Estate Investment Trust
85%
P/FFO × Diversified REIT Multiple
Moderate
·
Conviction
Fair Value
Trading 16.5% below fair value
You pay
$31.33
Bear
$31.12
Fair
$37.51
Bull
$43.90
Bear
$31.12
-0.7%
$1.88 FFO × 18x
Fair
$37.51
+19.7%
$1.88 FFO × 22x
Bull
$43.90
+40.1%
$1.88 FFO × 26x
Key Value Driver
FFO/share ($1.88) × diversified P/FFO multiple
Implied Market Multiple
16.7x
Summary
Our base-case estimate uses P/FFO × Diversified REIT Multiple. We then blend that result with the average analyst price target of $36.64 from 22 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $37.51 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