FR First Industrial Realty Trust, Inc.
$61.73
Real Estate Investment Trust 85%
P/FFO × Industrial REIT Multiple
Moderate · Conviction

Undervalued

Trading 25.2% below fair value

You pay $61.73
Bear $67.50
Fair $82.50
Bull $97.50
Bear $67.50 +9.4% $3.26 FFO × 21x
Fair $82.50 +33.7% $3.26 FFO × 25x
Bull $97.50 +58.0% $3.26 FFO × 30x

Adjust Assumptions

25.3x
3.26$

Key Value Driver

FFO/share ($3.26) × industrial P/FFO multiple

Implied Market Multiple 18.9x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (29 analysts) $72.13
Divergence from AlphaVal 14%

Summary

At $3.26 FFO/share with a 25x industrial REIT multiple, the base-case value is $82.50 per share. Dividend yield: 3.2%.

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