OLP - One Liberty Properties, Inc.
Price:
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CONSENSUS:
Hold
DETAILS
AlphaVal
Deterministic, archetype-aware fair value
Real Estate Investment Trust
85% confidence
Primary model: P/FFO × Diversified REIT Multiple
Adjust Assumptions
22.1x
$
Key Value Driver
FFO/share ($2.41) × diversified P/FFO multiple
Implied Market Multiple
9.7x
Plain-Language Summary
At $2.41 FFO/share with a 22x diversified REIT multiple, the base-case value is $47.41 per share. Dividend yield: 7.7%. DDM cross-check: $33.55.
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 yield of 7.7% is unusually high — make sure the company generates enough cash to keep paying it.
Dividend-based valuation: $33.55 (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