NNN
NNN REIT, Inc.
$49.23
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Fair Value
Trading 8.1% below fair value
You pay
$49.23
Bear
$43.50
Fair
$53.56
Bull
$63.62
Bear
$43.50
-11.6%
$3.46 FFO × 14x
Fair
$53.56
+8.8%
$3.46 FFO × 17x
Bull
$63.62
+29.2%
$3.46 FFO × 21x
Key Value Driver
FFO/share ($3.46) × retail P/FFO multiple
Implied Market Multiple
14.2x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $47.56 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $53.56 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.
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