Head to Head Survey: Kite Realty Group Trust (NYSE:KRG) and CapitaLand Integrated Commercial Trust (OTCMKTS:CPAMF)

CapitaLand Integrated Commercial Trust (OTCMKTS:CPAMF) and Kite Realty Group Trust (NYSE:KRG) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

20.1% of CapitaLand Integrated Commercial Trust shares are held by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are held by institutional investors. 2.0% of Kite Realty Group Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for CapitaLand Integrated Commercial Trust and Kite Realty Group Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CapitaLand Integrated Commercial Trust	0	0	0	0	N/A
Kite Realty Group Trust	1	1	3	1	2.67

Kite Realty Group Trust has a consensus price target of $26.33, indicating a potential upside of 5.21%. Given Kite Realty Group Trust’s higher probable upside, analysts plainly believe Kite Realty Group Trust is more favorable than CapitaLand Integrated Commercial Trust.

Dividends

CapitaLand Integrated Commercial Trust pays an annual dividend of $0.11 per share and has a dividend yield of 6.4%. Kite Realty Group Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.2%. CapitaLand Integrated Commercial Trust pays out 59.1% of its earnings in the form of a dividend. Kite Realty Group Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CapitaLand Integrated Commercial Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares CapitaLand Integrated Commercial Trust and Kite Realty Group Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CapitaLand Integrated Commercial Trust	N/A	N/A	N/A	$0.18	9.20
Kite Realty Group Trust	$827.37 million	6.64	$47.50 million	$0.26	96.27

Kite Realty Group Trust has higher revenue and earnings than CapitaLand Integrated Commercial Trust. CapitaLand Integrated Commercial Trust is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CapitaLand Integrated Commercial Trust and Kite Realty Group Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CapitaLand Integrated Commercial Trust	N/A	N/A	N/A
Kite Realty Group Trust	-2.95%	-0.69%	-0.35%

Summary

Kite Realty Group Trust beats CapitaLand Integrated Commercial Trust on 8 of the 13 factors compared between the two stocks.

About CapitaLand Integrated Commercial Trust

CapitaLand Integrated Commercial Trust (CICT) is the first and largest real estate investment trust (REIT) listed on Singapore Exchange Securities Trading Limited (SGX-ST) with a market capitalisation of S$13.7 billion as at 31 December 2023. It debuted on SGX-ST as CapitaLand Mall Trust in July 2002 and was renamed CICT in November 2020 following the merger with CapitaLand Commercial Trust. CICT owns and invests in quality income-producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore. As the largest proxy for Singapore commercial real estate, CICT's portfolio comprises 21 properties in Singapore, two properties in Frankfurt, Germany, and three properties in Sydney, Australia with a total property value of S$24.5 billion based on valuations of its proportionate interests in the portfolio as at 31 December 2023. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.