AlphaMadera

NNN NNN REIT, Inc.

$43.87

Real Estate Investment Trust 85%

P/FFO × Retail REIT Multiple

Moderate · Conviction

Fair Value

Trading 21.0% below fair value

You pay $43.87

Bear $45.12

Fair $55.56

Bull $66.00

Bear $45.12 +2.9% $3.46 FFO × 14x

Fair $55.56 +26.6% $3.46 FFO × 17x

Bull $66.00 +50.4% $3.46 FFO × 21x

Adjust Assumptions

P/FFO Multiple

17.4x

FFO per Share

3.46$

Key Value Driver

FFO/share ($3.46) × retail P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 12.7x

Market is pricing in (growth)

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (29 analysts) $48.29

Divergence from AlphaVal 15%

Summary

At $3.46 FFO/share with a 17x retail REIT multiple, the base-case value is $55.56 per share. Dividend yield: 5.5%. DDM cross-check: $45.01.

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 5.5% 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