Analyzing Gladstone Commercial (NASDAQ:GOOD) and CapitaLand Ascendas REIT (OTCMKTS:ACDSF)

CapitaLand Ascendas REIT (OTCMKTS:ACDSF) and Gladstone Commercial (NASDAQ:GOOD) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Dividends

CapitaLand Ascendas REIT pays an annual dividend of $0.14 per share and has a dividend yield of 7.4%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 9.6%. Gladstone Commercial pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CapitaLand Ascendas REIT and Gladstone Commercial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CapitaLand Ascendas REIT	0	0	0	0	0.00
Gladstone Commercial	0	4	0	0	2.00

Gladstone Commercial has a consensus target price of $12.83, suggesting a potential upside of 2.67%. Given Gladstone Commercial’s stronger consensus rating and higher possible upside, analysts clearly believe Gladstone Commercial is more favorable than CapitaLand Ascendas REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CapitaLand Ascendas REIT	N/A	N/A	N/A
Gladstone Commercial	12.74%	12.11%	1.71%

Institutional & Insider Ownership

34.2% of CapitaLand Ascendas REIT shares are owned by institutional investors. Comparatively, 45.5% of Gladstone Commercial shares are owned by institutional investors. 1.3% of Gladstone Commercial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CapitaLand Ascendas REIT	N/A	N/A	N/A	N/A	N/A
Gladstone Commercial	$161.34 million	3.75	$19.29 million	$0.18	69.44

Gladstone Commercial has higher revenue and earnings than CapitaLand Ascendas REIT.

Summary

Gladstone Commercial beats CapitaLand Ascendas REIT on 10 of the 11 factors compared between the two stocks.

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.

About Gladstone Commercial

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003.