NNN REIT (NYSE:NNN) versus Frasers Centrepoint Trust (OTCMKTS:FRZCF) Critical Survey

NNN REIT (NYSE:NNN) and Frasers Centrepoint Trust (OTCMKTS:FRZCF) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Dividends

NNN REIT pays an annual dividend of $2.48 per share and has a dividend yield of 5.4%. Frasers Centrepoint Trust pays an annual dividend of $0.11 per share and has a dividend yield of 6.5%. NNN REIT pays out 121.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Frasers Centrepoint Trust pays out 57.9% of its earnings in the form of a dividend. NNN REIT has increased its dividend for 35 consecutive years. Frasers Centrepoint Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

90.0% of NNN REIT shares are held by institutional investors. Comparatively, 18.1% of Frasers Centrepoint Trust shares are held by institutional investors. 0.9% of NNN REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for NNN REIT and Frasers Centrepoint Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NNN REIT	2	9	3	0	2.07
Frasers Centrepoint Trust	0	0	0	0	0.00

NNN REIT currently has a consensus price target of $47.60, indicating a potential upside of 3.86%. Given NNN REIT’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NNN REIT is more favorable than Frasers Centrepoint Trust.

Valuation and Earnings

This table compares NNN REIT and Frasers Centrepoint Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NNN REIT	$926.21 million	9.50	$389.78 million	$2.04	22.47
Frasers Centrepoint Trust	N/A	N/A	N/A	$0.19	8.95

NNN REIT has higher revenue and earnings than Frasers Centrepoint Trust. Frasers Centrepoint Trust is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NNN REIT and Frasers Centrepoint Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NNN REIT	40.35%	8.70%	4.06%
Frasers Centrepoint Trust	N/A	N/A	N/A

Summary

NNN REIT beats Frasers Centrepoint Trust on 12 of the 14 factors compared between the two stocks.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.

About Frasers Centrepoint Trust

Frasers Centrepoint Trust ("FCT") is a leading developer-sponsored retail real estate investment trust ("REIT") and one of the largest suburban retail mall owners in Singapore with assets under management of approximately S$6.9 billion. FCT's property portfolio comprises ten retail malls and an office building located in the suburban regions of Singapore, near homes and within minutes to transportation amenities. The retail portfolio has approximately 2.9 million square feet of net lettable area with over 1,800 leases with a strong focus on providing for necessity spending, food & beverage and essential services. The portfolio comprises Causeway Point, Century Square, Changi City Point, Hougang Mall, NEX (effective 25.50% interest), Northpoint City North Wing (including Yishun 10 Retail Podium), Tampines 1, Tiong Bahru Plaza, Waterway Point (50.00% interest), White Sands and an office property (Central Plaza). FCT's malls enjoy stable and recurring shopper footfall supported by commuter traffic and residential population in the catchment areas. FCT also holds a 30.97% stake in Hektar Real Estate Investment Trust, a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia Securities Berhad. FCT is index constituent of several benchmark indices including the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index), FTSE ST Real Estate Investment Trust Index, MSCI Singapore Small Cap Index and SGX iEdge S-REIT Leaders Index. Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006, FCT is managed by Frasers Centrepoint Asset Management Ltd. ("FCAM"), a real estate management company and a wholly-owned subsidiary of Frasers Property Limited.