GTY
Getty Realty Corp.
$28.04
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 25.6% below fair value
You pay
$28.04
Bear
$30.80
Fair
$37.68
Bull
$44.56
Bear
$30.80
+9.8%
$2.28 FFO × 12x
Fair
$37.68
+34.4%
$2.28 FFO × 15x
Bull
$44.56
+58.9%
$2.28 FFO × 18x
Adjust Assumptions
15.4x
$
Key Value Driver
FFO/share ($2.28) × retail P/FFO multiple
Implied Market Multiple
12.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (14 analysts)
$36.00
Divergence from AlphaVal
5%
Summary
At $2.28 FFO/share with a 15x retail REIT multiple, the base-case value is $37.68 per share. Dividend yield: 6.9%. DDM cross-check: $43.78.
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 yield of 6.9% is unusually high — make sure the company generates enough cash to keep paying it.
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