Acadia Realty Trust (NYSE:AKR) versus CapitaLand Integrated Commercial Trust (OTCMKTS:CPAMF) Financial Contrast

CapitaLand Integrated Commercial Trust (OTCMKTS:CPAMF) and Acadia Realty Trust (NYSE:AKR) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Dividends

CapitaLand Integrated Commercial Trust pays an annual dividend of $0.11 per share and has a dividend yield of 5.6%. Acadia Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. CapitaLand Integrated Commercial Trust pays out 59.1% of its earnings in the form of a dividend. Acadia Realty Trust pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust has increased its dividend for 2 consecutive years. CapitaLand Integrated Commercial Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CapitaLand Integrated Commercial Trust and Acadia Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CapitaLand Integrated Commercial Trust	N/A	N/A	N/A
Acadia Realty Trust	12.14%	1.85%	1.04%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CapitaLand Integrated Commercial Trust and Acadia Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CapitaLand Integrated Commercial Trust	0	0	0	0	0.00
Acadia Realty Trust	0	2	5	1	2.88

Acadia Realty Trust has a consensus price target of $24.20, suggesting a potential upside of 16.63%. Given Acadia Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Acadia Realty Trust is more favorable than CapitaLand Integrated Commercial Trust.

Institutional & Insider Ownership

20.1% of CapitaLand Integrated Commercial Trust shares are held by institutional investors. Comparatively, 97.7% of Acadia Realty Trust shares are held by institutional investors. 3.1% of Acadia Realty Trust shares are held by company 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.

Valuation and Earnings

This table compares CapitaLand Integrated Commercial Trust and Acadia Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CapitaLand Integrated Commercial Trust	N/A	N/A	N/A	$0.18	10.61
Acadia Realty Trust	$404.19 million	7.05	$16.90 million	$0.34	61.03

Acadia Realty Trust has higher revenue and earnings than CapitaLand Integrated Commercial Trust. CapitaLand Integrated Commercial Trust is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Acadia Realty Trust beats CapitaLand Integrated Commercial Trust on 13 of the 15 factors compared between the two stocks.

About CapitaLand Integrated Commercial Trust

CapitaLand Integrated Commercial Trust (CICT) is the first and largest real estate investment trust (REIT) listed on Singapore Exchange Securities Trading Limited (SGX-ST) with a market capitalisation of S$13.7 billion as at 31 December 2023. It debuted on SGX-ST as CapitaLand Mall Trust in July 2002 and was renamed CICT in November 2020 following the merger with CapitaLand Commercial Trust. CICT owns and invests in quality income-producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore. As the largest proxy for Singapore commercial real estate, CICT's portfolio comprises 21 properties in Singapore, two properties in Frankfurt, Germany, and three properties in Sydney, Australia with a total property value of S$24.5 billion based on valuations of its proportionate interests in the portfolio as at 31 December 2023. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.