Critical Review: Select Income REIT (SIR) and Excel Trust (EXL)
Select Income REIT (NASDAQ: SIR) and Excel Trust (NYSE:EXL) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
This is a breakdown of current recommendations for Select Income REIT and Excel Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Select Income REIT||0||0||1||0||3.00|
Select Income REIT currently has a consensus price target of $34.00, suggesting a potential upside of 42.32%. Given Select Income REIT’s higher possible upside, research analysts clearly believe Select Income REIT is more favorable than Excel Trust.
This table compares Select Income REIT and Excel Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Select Income REIT||18.65%||4.18%||1.85%|
Select Income REIT pays an annual dividend of $2.04 per share and has a dividend yield of 8.5%. Excel Trust does not pay a dividend. Select Income REIT pays out 210.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Excel Trust has raised its dividend for 7 consecutive years.
Insider and Institutional Ownership
48.2% of Select Income REIT shares are held by institutional investors. 2.0% of Select Income REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Select Income REIT and Excel Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Select Income REIT||N/A||N/A||N/A||$0.97||24.63|
Select Income REIT beats Excel Trust on 8 of the 10 factors compared between the two stocks.
About Select Income REIT
Select Income REIT is a real estate investment trust. The Company is engaged in the ownership of properties that include buildings and leased industrial lands that are primarily net leased to single tenants. As of December 31, 2016, the Company owned 121 properties (362 buildings, leasable land parcels and easements) with approximately 44.8 million rentable square feet. As of December 31, 2016, the Company’s properties consisted of 110 office and industrial properties (133 buildings) with approximately 27.0 million square feet located in 34 states throughout the mainland United States (Mainland Properties), and 11 properties (229 buildings, leasable land parcels and easements) located on the island of Oahu, Hawaii, with approximately 17.8 million rentable square feet that are primarily leased to industrial and commercial tenants (Hawaii Properties). As of December 31, 2016, the Company’s properties were leased to 312 different tenants.
About Excel Trust
Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.
Receive News & Stock Ratings for Select Income REIT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Select Income REIT and related stocks with our FREE daily email newsletter.