WPC
W. P. Carey Inc.
$75.43
Real Estate Investment Trust
85%
P/FFO × Diversified REIT Multiple
Mild
·
Conviction
Fair Value
Trading 1.0% below fair value
You pay
$75.43
Bear
$62.76
Fair
$76.20
Bull
$89.65
Bear
$62.76
-16.8%
$4.43 FFO × 14x
Fair
$76.20
+1.0%
$4.43 FFO × 17x
Bull
$89.65
+18.9%
$4.43 FFO × 20x
Key Value Driver
FFO/share ($4.43) × diversified P/FFO multiple
Implied Market Multiple
17.0x
Summary
Our base-case estimate uses P/FFO × Diversified REIT Multiple. We then blend that result with the average analyst price target of $78.71 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $76.20 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