As Editor of The Forbes Real Estate Investor, I am continually shopping for REITs that I can buy for less than their intrinsic value. I guess you could say that I’m the ultimate bargain shopper, always looking to invest in REITs as I would groceries, when they are both on sale.

My philosophy for investing is similar to Warren Buffett in that I always avoid overpaying for anything (priced above intrinsic value) that may become vulnerable to the “king is wearing no clothes syndrome”.

Thus, for any value investor, the rewards are rooted in the “margin of safety” principle in which owning a stock trading less than intrinsic value will ultimately be recognized and the price will eventually rise to a higher level.

When I’m shopping in REIT-dom, I don’t just look for the cheap securities that are “cheap for a reason”. Instead, I look for sound companies that have demonstrated consistent profit margins over a span of time.

When I see a high-quality REIT that is mis-priced, I began to inspect the merchandise more closely. I ask myself, “Can the company maintain its profitability”? Then I ask, “How sustainable is the dividend?” Finally, I ask “Can the dividend continue to grow over the next 3-4-and 5 years?”

I’m not looking for a quick buck either – I’ll leave that up to the market timers. My objective is simple: I want to own high-quality REITs that offer above-average appreciation potential and safe and growing dividends. As the legendary investor Benjamin Graham wrote, the value investor’s purpose is to capitalize upon “a favorable difference between price on the one hand and indicated or appraised value on the other.”

Urstadt Biddle: A Blue Chip Operation

Urstadt Biddle Properties Inc. (UBA) was founded in 1969 and listed on the NYSE on July 6, 1969. The Connecticut-based shopping center REIT has an impressive track record of increasing annual dividends for 21 years in a row; in addition, the company has maintained 45 consecutive years of uninterrupted dividends. There are just a dozen REITs that paid and increased dividends during the Great Recession and Urstadt Biddle is one of the stalwarts.

UBA is unique in that it almost exclusively focuses on the affluent suburbs to the north of New York City – four counties comprising Bergen (NJ), Westchester (NY), Putnam (NY), and Fairfield (CT). The majority of UBA’s properties are located in wealthy New York and Connecticut suburbs along the I-95 corridor north of New York City. The overall portfolio of 70 properties constitutes strong, in-fill, dominant grocery-anchored centers in wealthy neighborhoods. These mature sub-markets are heavily constrained by development and zoning, which offers “high barriers to entry” characteristics.

Urstadt Biddle has a unique capital structure with two classes of common stock: UBA’s “common stock” trades under the symbol UBP, has super voting rights, and is held primarily by insiders. “Class A common” trades under the symbol UBA, and is held primarily by institutional investors.

This differentiated dual share structure keeps control among insiders, while the public’s Class “A” shares enjoy a higher dividend per share. The board recently increased UBA’s annualized dividend to $1.02, while holding common (UBP) dividend at an annualized $0.90 per share.

UBA’s strong balance sheet provides for additional investment capacity and ample financial flexibility. The company has just 24% total debt to total capitalization and two preferred issues.

Solving for the Dividend Riddle: Try Urstadt Biddle

UBA has boosted its occupancy to around 94.8% and the company has been actively acquiring properties bear its NY metro target market. The combined internal and external growth drivers should allow the REIT to increase Net Operating Income and drive dividend growth.

 As noted, the recent dividend boost is also a solid indication that the company is serious about maintaining its durable track record of performance. The current dividend yield (on the UBA shares) is 4.8%.

In terms of valuation, UBA is trading at $21.43 with a Price to Funds from Operations (or P/FFO) multiple of 16.9x. Based on Adjusted Funds from Operations (or AFFO), UBA trades at 20.3x the 2015 estimates, a 12% discount to the peer average of 22.5x.

Over the last 90 days UBA’s share price has fallen around 10% providing investors with a better opportunity to capitalize (on the margin of safety). Insiders have been buying up the shares too and that’s another good indication that there’s an alignment of interest.

Now I’ve solved the dividend riddle: It may be time to buy Urstadt Biddle. Following the principles of value investing, if stocks are cheap, you buy them. UBA is a BUY and my FAIR VALUE price is $20.40 (because I’m looking for a 5% yield day one).

Source: SNL Financial.

This post originally appeared on Forbes.