KRG
Kite Realty Group Trust
$27.03
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Strong
·
Conviction
Undervalued
Trading 51.1% below fair value
You pay
$27.03
Bear
$44.18
Fair
$55.23
Bull
$66.27
Bear
$44.18
+63.5%
$3.33 FFO × 16x
Fair
$55.23
+104.3%
$3.33 FFO × 20x
Bull
$66.27
+145.2%
$3.33 FFO × 23x
Key Value Driver
FFO/share ($3.33) × retail P/FFO multiple
Implied Market Multiple
8.1x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $26.33 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $55.23 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.
Wall Street's average price target is $26.33 (from 25 analysts). Our estimate is 146% 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