Critical Review: Summit Industrial Income REIT (OTCMKTS:SMMCF) vs. First Industrial Realty Trust (NYSE:FR)

Summit Industrial Income REIT (OTCMKTS:SMMCF) and First Industrial Realty Trust (NYSE:FR) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Insider & Institutional Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Comparatively, 99.8% of First Industrial Realty Trust shares are owned by institutional investors. 0.9% of First Industrial Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Summit Industrial Income REIT and First Industrial Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
First Industrial Realty Trust	42.94%	10.64%	5.51%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Summit Industrial Income REIT and First Industrial Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
First Industrial Realty Trust	0	7	7	0	2.50

First Industrial Realty Trust has a consensus target price of $58.31, suggesting a potential upside of 2.84%. Given First Industrial Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe First Industrial Realty Trust is more favorable than Summit Industrial Income REIT.

Valuation & Earnings

This table compares Summit Industrial Income REIT and First Industrial Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
First Industrial Realty Trust	$669.64 million	11.21	$287.55 million	$2.18	26.01

First Industrial Realty Trust has higher revenue and earnings than Summit Industrial Income REIT. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.1%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. First Industrial Realty Trust pays out 81.7% 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 has increased its dividend for 12 consecutive years. First Industrial Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First Industrial Realty Trust beats Summit Industrial Income REIT on 12 of the 14 factors compared between the two stocks.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.