IVT
InvenTrust Properties Corp.
$35.33
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Strong
·
Conviction
Undervalued
Trading 76.4% below fair value
You pay
$35.33
Bear
$125.37
Fair
$149.57
Bull
$173.77
Bear
$125.37
+254.8%
$3.08 FFO × 16x
Fair
$149.57
+323.4%
$3.08 FFO × 20x
Bull
$173.77
+391.8%
$3.08 FFO × 23x
Key Value Driver
FFO/share ($3.08) × retail P/FFO multiple
Implied Market Multiple
11.5x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $36.50 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $149.57 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: $452.72 (155% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $36.50 (from 5 analysts). Our estimate is 387% above the consensus -- consider that gap carefully.
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