Critical Survey: RioCan Real Estate Investment Trust (OTCMKTS:RIOCF) versus InvenTrust Properties (NYSE:IVT)

RioCan Real Estate Investment Trust (OTCMKTS:RIOCF) and InvenTrust Properties (NYSE:IVT) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Dividends

RioCan Real Estate Investment Trust pays an annual dividend of $1.41 per share and has a dividend yield of 9.3%. InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. RioCan Real Estate Investment Trust pays out 57.3% of its earnings in the form of a dividend. InvenTrust Properties pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has increased its dividend for 4 consecutive years. RioCan Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for RioCan Real Estate Investment Trust and InvenTrust Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RioCan Real Estate Investment Trust	0	0	0	0	0.00
InvenTrust Properties	0	2	4	1	2.86

InvenTrust Properties has a consensus price target of $35.14, indicating a potential upside of 7.67%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, analysts clearly believe InvenTrust Properties is more favorable than RioCan Real Estate Investment Trust.

Institutional and Insider Ownership

33.6% of RioCan Real Estate Investment Trust shares are held by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are held by institutional investors. 0.7% of InvenTrust Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares RioCan Real Estate Investment Trust and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RioCan Real Estate Investment Trust	N/A	N/A	N/A
InvenTrust Properties	4.80%	0.85%	0.53%

Valuation & Earnings

This table compares RioCan Real Estate Investment Trust and InvenTrust Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RioCan Real Estate Investment Trust	N/A	N/A	N/A	$2.46	6.15
InvenTrust Properties	$299.17 million	8.51	$111.42 million	$0.20	163.20

InvenTrust Properties has higher revenue and earnings than RioCan Real Estate Investment Trust. RioCan Real Estate Investment Trust is trading at a lower price-to-earnings ratio than InvenTrust Properties, indicating that it is currently the more affordable of the two stocks.

Summary

InvenTrust Properties beats RioCan Real Estate Investment Trust on 12 of the 15 factors compared between the two stocks.

About RioCan Real Estate Investment Trust

RioCan is one of Canada's largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at December 31, 2023, our portfolio is comprised of 188 properties with an aggregate net leasable area of approximately 32.6 million square feet (at RioCan's interest) including office, residential rental and 9 development properties.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.