Contrasting CapitaLand Ascendas REIT (OTCMKTS:ACDSF) and Lineage (NASDAQ:LINE)

Lineage (NASDAQ:LINE) and CapitaLand Ascendas REIT (OTCMKTS:ACDSF) are both mid-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

34.2% of CapitaLand Ascendas REIT shares are held by institutional investors. 71.6% of Lineage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Lineage and CapitaLand Ascendas REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lineage	-2.72%	-1.56%	-0.76%
CapitaLand Ascendas REIT	N/A	N/A	N/A

Dividends

Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.2%. CapitaLand Ascendas REIT pays an annual dividend of $0.14 per share and has a dividend yield of 7.5%. Lineage pays out -343.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Lineage and CapitaLand Ascendas REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lineage	4	9	5	0	2.06
CapitaLand Ascendas REIT	0	0	0	0	0.00

Lineage currently has a consensus target price of $43.62, indicating a potential upside of 7.34%. Given Lineage’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Lineage is more favorable than CapitaLand Ascendas REIT.

Earnings and Valuation

This table compares Lineage and CapitaLand Ascendas REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lineage	$5.36 billion	1.73	-$100.00 million	($0.62)	-65.55
CapitaLand Ascendas REIT	N/A	N/A	N/A	N/A	N/A

CapitaLand Ascendas REIT has lower revenue, but higher earnings than Lineage.

About Lineage

Lineage, Inc. is the world’s largest global temperature-controlled warehouse REIT with a network of over 480 strategically located facilities totaling over 84.1 million square feet and 3.0 billion cubic feet of capacity across countries in North America, Europe, and Asia-Pacific. Coupling end-to-end supply chain solutions and technology, Lineage partners with some of the world’s largest food and beverage producers, retailers, and distributors to help increase distribution efficiency, advance sustainability, minimize supply chain waste, and, most importantly, feed the world.

About CapitaLand Ascendas REIT

CapitaLand Ascendas REIT (CLAR) is Singapore’s first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. CLAR has since grown to be a global REIT anchored in Singapore, with a strong focus on tech and logistics properties in developed markets. As at 31 December 2023, its investment properties under management stood at S$16.9 billion. It owns a total of 232 properties across three segments, namely Business Space and Life Sciences; Logistics; and Industrial and Data Centres. These properties are in the developed markets of Singapore, the United States, Australia, and the United Kingdom/Europe. These properties house a tenant base of approximately 1,790 international and local companies from a wide range of industries and activities, including data centres, information technology, engineering, logistics & supply chain management, biomedical sciences, financial services (backroom office support), electronics, government and other manufacturing and services industries. Major tenants include Singtel, DSO National Laboratories, SEA Group, Stripe, Entserve UK, DBS, Seagate, Citibank, Pinterest, and Equinix. CLAR is listed in several indices. These include the FTSE Straits Times Index, the Morgan Stanley Capital International, Inc (MSCI) Index, the European Public Real Estate Association/National Association of Real Estate Investment Trusts (EPRA/NAREIT) Global Real Estate Index and Global Property Research (GPR) Asia 250. CLAR has an issuer rating of A3′ by Moody’s Investors Service. CLAR is managed by CapitaLand Ascendas REIT Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.