Comparing First Industrial Realty Trust (NYSE:FR) & Innovative Industrial Properties (NYSE:IIPR)

First Industrial Realty Trust (NYSE:FR) and Innovative Industrial Properties (NYSE:IIPR) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Dividends

First Industrial Realty Trust pays an annual dividend of $2.00 per share and has a dividend yield of 3.4%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 15.1%. First Industrial Realty Trust pays out 73.0% 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. First Industrial Realty Trust has increased its dividend for 12 consecutive years and Innovative Industrial Properties has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for First Industrial Realty Trust and Innovative Industrial Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Industrial Realty Trust	0	7	7	1	2.60
Innovative Industrial Properties	1	3	1	0	2.00

First Industrial Realty Trust presently has a consensus price target of $67.43, indicating a potential upside of 13.40%. Innovative Industrial Properties has a consensus price target of $52.00, indicating a potential upside of 2.98%. Given First Industrial Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe First Industrial Realty Trust is more favorable than Innovative Industrial Properties.

Volatility & Risk

First Industrial Realty Trust has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Institutional and Insider Ownership

99.8% of First Industrial Realty Trust shares are held by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are held by institutional investors. 1.1% of First Industrial Realty 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares First Industrial Realty Trust and Innovative Industrial Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Industrial Realty Trust	47.97%	12.99%	6.41%
Innovative Industrial Properties	52.27%	7.73%	5.69%

Valuation and Earnings

This table compares First Industrial Realty Trust and Innovative Industrial Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Industrial Realty Trust	$727.08 million	10.84	$247.44 million	$2.74	21.70
Innovative Industrial Properties	$263.65 million	5.28	$118.25 million	$4.41	11.45

First Industrial Realty Trust has higher revenue and earnings than Innovative Industrial Properties. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than First Industrial Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

First Industrial Realty Trust beats Innovative Industrial Properties on 13 of the 18 factors compared between the two stocks.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.

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.