FCPT
Four Corners Property Trust, Inc.
$26.05
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Fair Value
Trading 1.2% below fair value
You pay
$26.05
Bear
$21.30
Fair
$26.36
Bull
$31.42
Bear
$21.30
-18.2%
$1.57 FFO × 16x
Fair
$26.36
+1.2%
$1.57 FFO × 20x
Bull
$31.42
+20.6%
$1.57 FFO × 23x
Key Value Driver
FFO/share ($1.57) × retail P/FFO multiple
Implied Market Multiple
16.5x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $28.67 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $26.36 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: $13.66 (47% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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