Highlands REIT (OTCMKTS:HHDS) vs. Stockland (OTCMKTS:STKAF) Critical Review

Profitability

This table compares Highlands REIT and Stockland’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highlands REIT	-31.82%	-6.18%	-3.61%
Stockland	N/A	N/A	N/A

Insider & Institutional Ownership

0.0% of Highlands REIT shares are held by institutional investors. Comparatively, 38.4% of Stockland shares are held by institutional investors. 2.3% of Highlands REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Highlands REIT and Stockland”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highlands REIT	$37.41 million	2.50	-$11.10 million	($0.01)	-13.00
Stockland	N/A	N/A	N/A	$0.23	13.66

Stockland has lower revenue, but higher earnings than Highlands REIT. Highlands REIT is trading at a lower price-to-earnings ratio than Stockland, indicating that it is currently the more affordable of the two stocks.

Summary

Stockland beats Highlands REIT on 6 of the 8 factors compared between the two stocks.

About Highlands REIT

We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.

About Stockland

We are a leading creator and curator of connected communities with people at the heart of the places we create. For more than 70 years, we have built a proud legacy, helping more Australians achieve the dream of home ownership, and enabling the future of work and retail. Today, we continue to build on our history as one of Australia's largest diversified property groups to elevate the social value of our places, and create a tangible sense of human connection, belonging and community for our customers. We own, fund, develop and manage one of Australia's largest portfolios of residential and land lease communities, retail town centres, and workplace and logistics assets. Our approach is distinctive, bringing a unique combination of development expertise, scale, deep customer insight, and diverse talent – with care in everything we do. We are committed to contributing to the economic prosperity of Australia and the wellbeing of our communities and our planet.