FR
First Industrial Realty Trust, Inc.
$54.44
Real Estate Investment Trust
85%
P/FFO × Industrial REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 35.5% below fair value
You pay
$54.44
Bear
$69.02
Fair
$84.36
Bull
$99.70
Bear
$69.02
+26.8%
$3.34 FFO × 21x
Fair
$84.36
+55.0%
$3.34 FFO × 25x
Bull
$99.70
+83.1%
$3.34 FFO × 30x
Adjust Assumptions
25.3x
$
Key Value Driver
FFO/share ($3.34) × industrial P/FFO multiple
Implied Market Multiple
16.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (29 analysts)
$69.80
Divergence from AlphaVal
21%
Summary
At $3.34 FFO/share with a 25x industrial REIT multiple, the base-case value is $84.36 per share. Dividend yield: 3.6%.
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