FRT
Federal Realty Investment Trust
$119.75
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Fair Value
Trading 11.1% below fair value
You pay
$119.75
Bear
$108.68
Fair
$134.68
Bull
$160.69
Bear
$108.68
-9.2%
$9.02 FFO × 16x
Fair
$134.68
+12.5%
$9.02 FFO × 20x
Bull
$160.69
+34.2%
$9.02 FFO × 23x
Key Value Driver
FFO/share ($9.02) × retail P/FFO multiple
Implied Market Multiple
13.3x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $115.44 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $134.68 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: $66.20 (54% 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