Gramercy Property Trust (GPT) & First Industrial Realty Trust (FR) Critical Survey
Gramercy Property Trust (NYSE: GPT) and First Industrial Realty Trust (NYSE:FR) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Earnings and Valuation
This table compares Gramercy Property Trust and First Industrial Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$517.26 million||9.03||$33.35 million||$0.44||66.05|
|First Industrial Realty Trust||$378.02 million||10.30||$121.23 million||$1.07||30.36|
First Industrial Realty Trust has higher revenue, but lower earnings than Gramercy Property Trust. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gramercy Property Trust has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.2%. First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.6%. Gramercy Property Trust pays out 340.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gramercy Property Trust has increased its dividend for 3 consecutive years and First Industrial Realty Trust has increased its dividend for 2 consecutive years. Gramercy Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
88.6% of Gramercy Property Trust shares are owned by institutional investors. Comparatively, 93.6% of First Industrial Realty Trust shares are owned by institutional investors. 1.0% of Gramercy Property Trust shares are owned by company insiders. Comparatively, 1.7% of First Industrial Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Gramercy Property Trust and First Industrial Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||2||3||0||2.33|
|First Industrial Realty Trust||0||4||3||0||2.43|
Gramercy Property Trust currently has a consensus target price of $31.25, suggesting a potential upside of 7.54%. First Industrial Realty Trust has a consensus target price of $31.67, suggesting a potential downside of 2.53%. Given Gramercy Property Trust’s higher probable upside, equities research analysts plainly believe Gramercy Property Trust is more favorable than First Industrial Realty Trust.
This table compares Gramercy Property Trust and First Industrial Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||14.10%||2.60%||1.25%|
|First Industrial Realty Trust||32.44%||9.54%||4.47%|
First Industrial Realty Trust beats Gramercy Property Trust on 12 of the 16 factors compared between the two stocks.
About Gramercy Property Trust
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
About First Industrial Realty Trust
First Industrial Realty Trust, Inc. is a real estate investment trust (REIT). The Trust is a self-administered real estate company, which owns, manages, acquires, sells, develops and redevelops industrial real estate. As of December 31, 2016, the Company’s in-service portfolio consisted of 215 light industrial properties, 53 research and development (R&D)/flex properties, 167 bulk warehouse properties and 100 regional warehouse properties containing an aggregate of approximately 62.2 million square feet of gross leasable area (GLA) located in 23 states. The Company’s in-service portfolio includes all properties that have reached stabilized occupancy, developed and redeveloped properties and acquired properties that are occupied at acquisition or one year from the acquisition date. The Company’s operations are conducted primarily through the First Industrial, L.P. (the Operating Partnership), of which the Company is the sole general partner.
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