AlphaMadera

OUT Outfront Media Inc.

$29.79

Real Estate Investment Trust 85%

P/FFO × Specialty REIT Multiple

Moderate · Conviction

Undervalued

Trading 31.5% below fair value

You pay $29.79

Bear $35.78

Fair $43.47

Bull $51.16

Bear $35.78 +20.1% $1.74 FFO × 22x

Fair $43.47 +45.9% $1.74 FFO × 27x

Bull $51.16 +71.7% $1.74 FFO × 32x

Adjust Assumptions

P/FFO Multiple

27.2x

FFO per Share

1.74$

Key Value Driver

FFO/share ($1.74) × specialty P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 17.1x

Market is pricing in (growth)

Analyst Consensus (External Reference)

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

Average Target (13 analysts) $37.50

Divergence from AlphaVal 16%

Summary

At $1.74 FFO/share with a 27x specialty REIT multiple, the base-case value is $43.47 per share. Dividend yield: 4.1%. DDM cross-check: $33.98.

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