Analyzing Plaza Retail REIT (OTCMKTS:PAZRF) & Kite Realty Group Trust (NYSE:KRG)

Kite Realty Group Trust (NYSE:KRG) and Plaza Retail REIT (OTCMKTS:PAZRF) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Profitability

This table compares Kite Realty Group Trust and Plaza Retail REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kite Realty Group Trust	41.80%	11.26%	5.20%
Plaza Retail REIT	N/A	N/A	N/A

Insider & Institutional Ownership

90.8% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 22.2% of Plaza Retail REIT shares are owned by institutional investors. 2.7% of Kite Realty Group Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Kite Realty Group Trust and Plaza Retail REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kite Realty Group Trust	$844.36 million	6.53	$298.66 million	$1.62	16.99
Plaza Retail REIT	N/A	N/A	N/A	$0.65	5.69

Kite Realty Group Trust has higher revenue and earnings than Plaza Retail REIT. Plaza Retail REIT is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Kite Realty Group Trust and Plaza Retail REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kite Realty Group Trust	0	6	2	1	2.44
Plaza Retail REIT	0	2	1	0	2.33

Kite Realty Group Trust presently has a consensus price target of $30.14, indicating a potential upside of 9.49%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Kite Realty Group Trust is more favorable than Plaza Retail REIT.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.2%. Plaza Retail REIT pays an annual dividend of $0.24 per share and has a dividend yield of 6.4%. Kite Realty Group Trust pays out 71.6% of its earnings in the form of a dividend. Plaza Retail REIT pays out 36.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kite Realty Group Trust has raised its dividend for 4 consecutive years. Plaza Retail REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kite Realty Group Trust beats Plaza Retail REIT on 13 of the 15 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.

About Plaza Retail REIT

Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at June 30, 2023 includes interests in 234 properties totaling approximately 8.8 million square feet across Canada and additional lands held for development. Plaza's portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants.