Analyzing CapitaLand Ascendas REIT (OTCMKTS:ACDSF) & Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF)

Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF) and CapitaLand Ascendas REIT (OTCMKTS:ACDSF) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Earnings & Valuation

This table compares Dream Industrial Real Estate Investment Trust and CapitaLand Ascendas REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A	$1.02	9.01
CapitaLand Ascendas REIT	N/A	N/A	N/A	$0.18	9.96

Dream Industrial Real Estate Investment Trust is trading at a lower price-to-earnings ratio than CapitaLand Ascendas REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dream Industrial Real Estate Investment Trust and CapitaLand Ascendas REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A
CapitaLand Ascendas REIT	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Dream Industrial Real Estate Investment Trust and CapitaLand Ascendas REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Industrial Real Estate Investment Trust	0	0	2	1	3.33
CapitaLand Ascendas REIT	0	0	0	0	0.00

Institutional & Insider Ownership

46.3% of Dream Industrial Real Estate Investment Trust shares are held by institutional investors. Comparatively, 34.2% of CapitaLand Ascendas REIT shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Dream Industrial Real Estate Investment Trust pays an annual dividend of $0.70 per share and has a dividend yield of 7.6%. CapitaLand Ascendas REIT pays an annual dividend of $0.14 per share and has a dividend yield of 7.9%. Dream Industrial Real Estate Investment Trust pays out 68.7% of its earnings in the form of a dividend. CapitaLand Ascendas REIT pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Dream Industrial Real Estate Investment Trust beats CapitaLand Ascendas REIT on 6 of the 8 factors compared between the two stocks.

About Dream Industrial Real Estate Investment Trust

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at December 31, 2023, we own, manage and operate a global portfolio of well-located, diversified industrial properties comprising 327 assets totalling approximately 71.4 million square feet of GLA in key markets across Canada, Europe and the U.S. Our goal is to deliver strong total returns to our unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by our high-quality portfolio and an investment grade balance sheet. Our REIT Units are listed on the Toronto Stock Exchange (TSX) under the trading symbol DIR.UN.

About CapitaLand Ascendas REIT

CapitaLand Ascendas REIT (CLAR) is Singapore’s first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. CLAR has since grown to be a global REIT anchored in Singapore, with a strong focus on tech and logistics properties in developed markets. As at 31 December 2023, its investment properties under management stood at S$16.9 billion. It owns a total of 232 properties across three segments, namely Business Space and Life Sciences; Logistics; and Industrial and Data Centres. These properties are in the developed markets of Singapore, the United States, Australia, and the United Kingdom/Europe. These properties house a tenant base of approximately 1,790 international and local companies from a wide range of industries and activities, including data centres, information technology, engineering, logistics & supply chain management, biomedical sciences, financial services (backroom office support), electronics, government and other manufacturing and services industries. Major tenants include Singtel, DSO National Laboratories, SEA Group, Stripe, Entserve UK, DBS, Seagate, Citibank, Pinterest, and Equinix. CLAR is listed in several indices. These include the FTSE Straits Times Index, the Morgan Stanley Capital International, Inc (MSCI) Index, the European Public Real Estate Association/National Association of Real Estate Investment Trusts (EPRA/NAREIT) Global Real Estate Index and Global Property Research (GPR) Asia 250. CLAR has an issuer rating of A3′ by Moody’s Investors Service. CLAR is managed by CapitaLand Ascendas REIT Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.