PKST
Peakstone Realty Trust
$20.99
Real Estate Investment Trust
85%
P/FFO × Diversified REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 34.9% below fair value
You pay
$20.99
Bear
$26.63
Fair
$32.22
Bull
$37.81
Bear
$26.63
+26.9%
$1.85 FFO × 18x
Fair
$32.22
+53.5%
$1.85 FFO × 22x
Bull
$37.81
+80.1%
$1.85 FFO × 26x
Key Value Driver
FFO/share ($1.85) × diversified P/FFO multiple
Implied Market Multiple
11.4x
Summary
At $1.85 FFO/share with a 22x diversified REIT multiple, the base-case value is $32.22 per share. Dividend yield: 3.1%. DDM cross-check: $12.11.
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: $12.11 (62% 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