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INET Freehold and Leasehold Real Estate Investment Trust (INETREIT.BK)

Company Dividend Discount ModelIndustry: REIT - SpecialtySector: Real Estate

Valuation Snapshot

Stable Growth$14.79 - $22.16$18.28
Multi-Stage$29.06 - $31.95$30.48
Blended Fair Value$24.38
Current Price$11.00
Upside121.64%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021201920182017
DPS0.00%0.00%0.730.510.590.080.000.000.000.000.000.00
YoY Growth--42.37%-12.57%607.75%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--8.36%5.87%5.32%0.69%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)894.68
(-) Cash Dividends Paid (M)403.32
(=) Cash Retained (M)491.36
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)178.94111.8367.10
Cash Retained (M)491.36491.36491.36
(-) Cash Required (M)-178.94-111.83-67.10
(=) Excess Retained (M)312.43379.53424.26
(/) Shares Outstanding (M)504.48504.48504.48
(=) Excess Retained per Share0.620.750.84
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share0.620.750.84
(=) Adjusted Dividend1.421.551.64
WACC / Discount Rate7.40%7.40%7.40%
Growth Rate-2.00%-1.00%0.00%
Fair Value$14.79$18.28$22.16
Upside / Downside34.44%66.22%101.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)894.68885.73876.87868.10859.42850.83876.35
Payout Ratio45.08%54.06%63.05%72.03%81.02%90.00%92.50%
Projected Dividends (M)403.32478.86552.85625.31696.27765.75810.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.40%7.40%7.40%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)441.35445.85450.36
Year 2 PV (M)469.64479.27489.00
Year 3 PV (M)489.59504.73520.18
Year 4 PV (M)502.45523.27544.74
Year 5 PV (M)509.30535.82563.44
PV of Terminal Value (M)12,247.7212,885.4913,549.55
Equity Value (M)14,660.0515,374.4416,117.26
Shares Outstanding (M)504.48504.48504.48
Fair Value$29.06$30.48$31.95
Upside / Downside164.18%177.05%190.44%

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