GTY
Getty Realty Corp.
$36.25
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Fair Value
Trading 3.7% below fair value
You pay
$36.25
Bear
$30.78
Fair
$37.66
Bull
$44.55
Bear
$30.78
-15.1%
$2.33 FFO × 12x
Fair
$37.66
+3.9%
$2.33 FFO × 15x
Bull
$44.55
+22.9%
$2.33 FFO × 18x
Key Value Driver
FFO/share ($2.33) × retail P/FFO multiple
Implied Market Multiple
15.5x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $34.50 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $37.66 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 yield of 5.3% 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