DCF Tool

AIRC

Apartment Income REIT Corp – Lessors of Residential Buildings and Dwellings
Apartment Income REIT Corp. (AIR) is a real estate investment trust focused on the ownership and management of quality apartment communities located in the largest markets in the United States. AIR is one of the country's largest owners and operators of apartments, with 98 communities in 12 states and the District of Columbia. AIR common shares are traded on the New York Stock Exchange under the ticker symbol AIRC, and are included in the S&P 400.
Analysis Results
Intrinsic Value $135.70
Latest Price $36.16
Relative Value 73% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 462 439
2023 530 479
2024 607 522
2025 696 569
2026 798 621
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 23900 million. This corresponds to a present value of 17700 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2630 million. Adding in the terminal value gives a total present value of 20300 million.

There are presently 150.0 million outstanding shares, so the intrinsic value per share is 135.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 964,688,000
Current Cash 67,320,000
Current Liabilities 592,774,000
Current Debt 0
Non-Cash Working Capital (NCWC) 304,594,000
Change in NCWC -100,004,000
EBIT 701,501,000
Tax Provision -5,246,000
Depreciation and Amortization 319,742,000
Capital Expenditure -538,554,000
Unlevered Free Cash Flow 382,685,000
Current Assets 1,047,548,000
Current Cash 44,214,000
Current Liabilities 598,736,000
Current Debt 0
Non-Cash Working Capital (NCWC) 404,598,000
Change in NCWC 309,388,000
EBIT 148,555,000
Tax Provision 95,437,000
Depreciation and Amortization 393,672,000
Capital Expenditure -370,282,000
Unlevered Free Cash Flow 481,333,000
Current Assets 598,686,000
Current Cash 142,902,000
Current Liabilities 360,574,000
Current Debt 0
Non-Cash Working Capital (NCWC) 95,210,000
Change in NCWC 128,217,000
EBIT 157,576,000
Tax Provision -3,135,000
Depreciation and Amortization 380,171,000
Capital Expenditure -393,461,000
Unlevered Free Cash Flow 272,503,000

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