NTST
NETSTREIT Corp.
$21.50
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Overvalued
Trading 4.9% above fair value
You pay
$21.50
Bear
$16.62
Fair
$20.50
Bull
$24.38
Bear
$16.62
-22.7%
$1.14 FFO × 16x
Fair
$20.50
-4.7%
$1.14 FFO × 20x
Bull
$24.38
+13.4%
$1.14 FFO × 23x
Key Value Driver
FFO/share ($1.14) × retail P/FFO multiple
Implied Market Multiple
18.9x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $22.69 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $20.50 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: $14.02 (29% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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