Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – Get Free Report) are both small-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Dividends
Industrial Logistics Properties Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.8%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.4%. Industrial Logistics Properties Trust pays out -55.6% of its earnings in the form of a dividend. Innovative Industrial Properties pays out 172.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innovative Industrial Properties has increased its dividend for 4 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Industrial Logistics Properties Trust and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial Logistics Properties Trust | -10.37% | -5.34% | -0.91% |
| Innovative Industrial Properties | 52.27% | 7.73% | 5.69% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial Logistics Properties Trust | $448.85 million | 1.23 | -$66.19 million | ($0.72) | -11.46 |
| Innovative Industrial Properties | $265.95 million | 5.90 | $118.25 million | $4.41 | 12.90 |
Innovative Industrial Properties has lower revenue, but higher earnings than Industrial Logistics Properties Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than Innovative Industrial Properties, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Industrial Logistics Properties Trust and Innovative Industrial Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial Logistics Properties Trust | 1 | 1 | 1 | 0 | 2.00 |
| Innovative Industrial Properties | 1 | 3 | 0 | 0 | 1.75 |
Industrial Logistics Properties Trust presently has a consensus target price of $11.50, indicating a potential upside of 39.39%. Innovative Industrial Properties has a consensus target price of $48.00, indicating a potential downside of 15.65%. Given Industrial Logistics Properties Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Industrial Logistics Properties Trust is more favorable than Innovative Industrial Properties.
Risk and Volatility
Industrial Logistics Properties Trust has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Insider & Institutional Ownership
49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are held by institutional investors. 2.3% of Industrial Logistics Properties Trust shares are held by insiders. Comparatively, 2.3% of Innovative Industrial Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Innovative Industrial Properties beats Industrial Logistics Properties Trust on 10 of the 16 factors compared between the two stocks.
About Industrial Logistics Properties Trust
Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties. As of December 31, 2023, ILPT's portfolio consisted of 411 properties containing approximately 60 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2023 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
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