REG
Regency Centers Corporation
$79.99
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Fair Value
Trading 10.8% below fair value
You pay
$79.99
Bear
$72.78
Fair
$89.63
Bull
$106.49
Bear
$72.78
-9.0%
$5.09 FFO × 16x
Fair
$89.63
+12.1%
$5.09 FFO × 20x
Bull
$106.49
+33.1%
$5.09 FFO × 23x
Key Value Driver
FFO/share ($5.09) × retail P/FFO multiple
Implied Market Multiple
15.7x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $85.75 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $89.63 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