Frasers Centrepoint Trust (OTCMKTS:FRZCF) vs. Tanger (NYSE:SKT) Financial Contrast

Frasers Centrepoint Trust (OTCMKTS:FRZCF) and Tanger (NYSE:SKT) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

Frasers Centrepoint Trust pays an annual dividend of $0.11 per share and has a dividend yield of 6.5%. Tanger pays an annual dividend of $1.25 per share and has a dividend yield of 3.2%. Frasers Centrepoint Trust pays out 57.9% of its earnings in the form of a dividend. Tanger pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tanger has increased its dividend for 4 consecutive years. Frasers Centrepoint Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for Frasers Centrepoint Trust and Tanger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frasers Centrepoint Trust	0	0	0	0	0.00
Tanger	1	7	2	0	2.10

Tanger has a consensus target price of $39.70, suggesting a potential upside of 0.99%. Given Tanger’s stronger consensus rating and higher probable upside, analysts clearly believe Tanger is more favorable than Frasers Centrepoint Trust.

Profitability

This table compares Frasers Centrepoint Trust and Tanger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frasers Centrepoint Trust	N/A	N/A	N/A
Tanger	20.74%	17.72%	4.62%

Earnings and Valuation

This table compares Frasers Centrepoint Trust and Tanger”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frasers Centrepoint Trust	N/A	N/A	N/A	$0.19	8.95
Tanger	$581.56 million	7.77	$114.78 million	$1.10	35.74

Tanger has higher revenue and earnings than Frasers Centrepoint Trust. Frasers Centrepoint Trust is trading at a lower price-to-earnings ratio than Tanger, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

18.1% of Frasers Centrepoint Trust shares are held by institutional investors. Comparatively, 85.2% of Tanger shares are held by institutional investors. 3.2% of Tanger shares are held 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.

Summary

Tanger beats Frasers Centrepoint Trust on 12 of the 14 factors compared between the two stocks.

About Frasers Centrepoint Trust

Frasers Centrepoint Trust ("FCT") is a leading developer-sponsored retail real estate investment trust ("REIT") and one of the largest suburban retail mall owners in Singapore with assets under management of approximately S$6.9 billion. FCT's property portfolio comprises ten retail malls and an office building located in the suburban regions of Singapore, near homes and within minutes to transportation amenities. The retail portfolio has approximately 2.9 million square feet of net lettable area with over 1,800 leases with a strong focus on providing for necessity spending, food & beverage and essential services. The portfolio comprises Causeway Point, Century Square, Changi City Point, Hougang Mall, NEX (effective 25.50% interest), Northpoint City North Wing (including Yishun 10 Retail Podium), Tampines 1, Tiong Bahru Plaza, Waterway Point (50.00% interest), White Sands and an office property (Central Plaza). FCT's malls enjoy stable and recurring shopper footfall supported by commuter traffic and residential population in the catchment areas. FCT also holds a 30.97% stake in Hektar Real Estate Investment Trust, a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia Securities Berhad. FCT is index constituent of several benchmark indices including the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index), FTSE ST Real Estate Investment Trust Index, MSCI Singapore Small Cap Index and SGX iEdge S-REIT Leaders Index. Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006, FCT is managed by Frasers Centrepoint Asset Management Ltd. ("FCAM"), a real estate management company and a wholly-owned subsidiary of Frasers Property Limited.

About Tanger

Tanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 43 years of expertise in the retail and outlet shopping industries. Tanger’s portfolio of 38 outlet centers, one adjacent managed center and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission (“SEC”) that includes a supplemental information package for the quarter and year ended December 31, 2023.