Oct. 22 at 9:08 PM
$GNL Well, I think market is definitely missing something. This should be
$13+. My math...
AFFO Multiple - GNL at 8.0x 2025E AFFO (
$7.51 /
$0.94). Peer average 15.2x. Office quality and credit upgrade support re-rating; at 12x,
$11.28 (50% upside); at 14x,
$13.16 (~75% upside).
Implied Cap Rate - 9.9% (
$498 NOI /
$5.05B EV) vs. peers 6.4%. At 7.5%, asset value ≈
$6.64 billion; subtract net debt
$2.79B/pref
$0.60B → equity
$3.25B →
$14.70/share (96% upside).
Dividend Yield - 10.1% (
$0.76 /
$7.51) vs. peers 4.8%. Sustainable at 81% payout; yield compression to 5.8% →
$13.10 (~73% upside).
🤷🏻♂️😒 Market discounting the office portfolio by a lot. I think it's a quality office portfolio compared to many. Hopefully, Q3 ER will start the rerating process.