Reviewing Easterly Government Properties (NYSE:DEA) and Keppel DC REIT (OTCMKTS:KPDCF)

Keppel DC REIT (OTCMKTS:KPDCF) and Easterly Government Properties (NYSE:DEA) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Keppel DC REIT and Easterly Government Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel DC REIT	0	0	0	0	0.00
Easterly Government Properties	1	4	2	0	2.14

Easterly Government Properties has a consensus price target of $25.06, suggesting a potential upside of 3.10%. Given Easterly Government Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Easterly Government Properties is more favorable than Keppel DC REIT.

Institutional and Insider Ownership

86.5% of Easterly Government Properties shares are held by institutional investors. 6.5% of Easterly Government Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Keppel DC REIT and Easterly Government Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keppel DC REIT	N/A	N/A	N/A
Easterly Government Properties	2.86%	0.75%	0.30%

Valuation and Earnings

This table compares Keppel DC REIT and Easterly Government Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel DC REIT	N/A	N/A	N/A	N/A	N/A
Easterly Government Properties	$336.10 million	3.42	$13.00 million	$0.21	115.76

Easterly Government Properties has higher revenue and earnings than Keppel DC REIT.

Summary

Easterly Government Properties beats Keppel DC REIT on 9 of the 9 factors compared between the two stocks.

About Keppel DC REIT

Keppel DC REIT was listed on the Singapore Exchange on 12 December 2014 as the first pure-play data centre REIT in Asia. Keppel DC REIT’s investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate and assets necessary to support the digital economy. Keppel DC REIT’s investments comprise an optimal mix of colocation, fully-fitted and shell and core assets, as well as debt securities issued by NetCo which holds network assets, thereby reinforcing the diversity and resiliency of its portfolio. Keppel DC REIT is managed by Keppel DC REIT Management Pte. Ltd. (the Manager) and is sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

About Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).