Critical Review: Frasers Logistics & Commercial Trust (OTCMKTS:FRLOF) and Innovative Industrial Properties (NYSE:IIPR)

Innovative Industrial Properties (NYSE:IIPR) and Frasers Logistics & Commercial Trust (OTCMKTS:FRLOF) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares Innovative Industrial Properties and Frasers Logistics & Commercial Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$263.65 million	6.18	$118.25 million	$4.41	13.41
Frasers Logistics & Commercial Trust	N/A	N/A	N/A	N/A	N/A

Innovative Industrial Properties has higher revenue and earnings than Frasers Logistics & Commercial Trust.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Innovative Industrial Properties and Frasers Logistics & Commercial Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Industrial Properties	1	3	0	0	1.75
Frasers Logistics & Commercial Trust	0	0	0	0	0.00

Innovative Industrial Properties presently has a consensus price target of $48.00, suggesting a potential downside of 18.84%. Given Innovative Industrial Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Innovative Industrial Properties is more favorable than Frasers Logistics & Commercial Trust.

Profitability

This table compares Innovative Industrial Properties and Frasers Logistics & Commercial Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Industrial Properties	52.27%	7.73%	5.69%
Frasers Logistics & Commercial Trust	N/A	N/A	N/A

Institutional & Insider Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. 2.3% of Innovative Industrial Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Innovative Industrial Properties beats Frasers Logistics & Commercial Trust on 8 of the 8 factors compared between the two stocks.

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.

About Frasers Logistics & Commercial Trust

Frasers Logistics & Commercial Trust ("FLCT") is a Singapore-listed real estate investment trust with a portfolio comprising 107 industrial and commercial properties, worth approximately S$6.4 billion, diversified across five major developed markets – Australia, Germany, Singapore, the United Kingdom and the Netherlands. FLCT was listed on the Mainboard of Singapore Exchange Securities Trading Limited ("SGX-ST") on 20 June 2016 as Frasers Logistics & Industrial Trust and was subsequently renamed Frasers Logistics & Commercial Trust on 29 April 2020 following the completion of a merger with Frasers Commercial Trust. FLCT's investment strategy is to invest globally in a diversified portfolio of income-producing properties used predominantly for logistics or industrial purposes located globally, or commercial purposes (comprising primarily CBD office space) or business park purposes (comprising primarily non-CBD office space and/or research and development space) located in the Asia-Pacific region or in Europe (including the United Kingdom). FLCT is sponsored by Frasers Property Limited. FLCT is a constituent of the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index), Straits Times Index and Global Property Research (GPR) 250.