Critical Survey: RioCan Real Estate Investment Trust (OTCMKTS:RIOCF) versus Regency Centers (NASDAQ:REG)

RioCan Real Estate Investment Trust (OTCMKTS:RIOCF) and Regency Centers (NASDAQ:REG) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

33.6% of RioCan Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 96.1% of Regency Centers shares are owned by institutional investors. 1.0% of Regency Centers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

RioCan Real Estate Investment Trust pays an annual dividend of $1.41 per share and has a dividend yield of 9.1%. Regency Centers pays an annual dividend of $3.02 per share and has a dividend yield of 4.0%. RioCan Real Estate Investment Trust pays out 57.3% of its earnings in the form of a dividend. Regency Centers pays out 102.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers has raised its dividend for 5 consecutive years. RioCan Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for RioCan Real Estate Investment Trust and Regency Centers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RioCan Real Estate Investment Trust	0	0	0	0	0.00
Regency Centers	0	11	6	2	2.53

Regency Centers has a consensus price target of $83.82, indicating a potential upside of 10.64%. Given Regency Centers’ stronger consensus rating and higher probable upside, analysts clearly believe Regency Centers is more favorable than RioCan Real Estate Investment Trust.

Earnings and Valuation

This table compares RioCan Real Estate Investment Trust and Regency Centers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RioCan Real Estate Investment Trust	N/A	N/A	N/A	$2.46	6.27
Regency Centers	$1.55 billion	8.93	$527.46 million	$2.95	25.68

Regency Centers has higher revenue and earnings than RioCan Real Estate Investment Trust. RioCan Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Regency Centers, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RioCan Real Estate Investment Trust and Regency Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RioCan Real Estate Investment Trust	N/A	N/A	N/A
Regency Centers	34.38%	8.04%	4.26%

Summary

Regency Centers beats RioCan Real Estate Investment Trust on 13 of the 15 factors compared between the two stocks.

About RioCan Real Estate Investment Trust

RioCan is one of Canada's largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at December 31, 2023, our portfolio is comprised of 188 properties with an aggregate net leasable area of approximately 32.6 million square feet (at RioCan's interest) including office, residential rental and 9 development properties.

About Regency Centers

Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.