Critical Analysis: Winthrop Realty Trust (FUR) versus Liberty Property Trust (LPT)

Winthrop Realty Trust (NYSE: FUR) and Liberty Property Trust (NYSE:LPT) are both commercial reits – nec companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

91.4% of Liberty Property Trust shares are owned by institutional investors. 1.5% of Liberty Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Winthrop Realty Trust has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Earnings & Valuation

This table compares Winthrop Realty Trust and Liberty Property Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Winthrop Realty Trust N/A N/A N/A $0.15 62.20
Liberty Property Trust $746.71 million 8.80 $356.81 million $2.37 18.81

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

Profitability

This table compares Winthrop Realty Trust and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Winthrop Realty Trust N/A N/A N/A
Liberty Property Trust 47.78% 11.41% 5.69%

Analyst Recommendations

This is a summary of recent ratings and target prices for Winthrop Realty Trust and Liberty Property Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winthrop Realty Trust 0 0 0 0 N/A
Liberty Property Trust 0 4 3 0 2.43

Liberty Property Trust has a consensus target price of $43.40, suggesting a potential downside of 2.67%. Given Liberty Property Trust’s higher possible upside, analysts plainly believe Liberty Property Trust is more favorable than Winthrop Realty Trust.

Dividends

Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. Winthrop Realty Trust does not pay a dividend. Liberty Property Trust pays out 67.5% of its earnings in the form of a dividend. Winthrop Realty Trust has increased its dividend for 2 consecutive years.

Summary

Liberty Property Trust beats Winthrop Realty Trust on 11 of the 13 factors compared between the two stocks.

About Winthrop Realty Trust

Winthrop Realty Trust (Winthrop) is a real estate investment trust (REIT). The Company conducts its business through its operating partnership, WRT Realty L.P. (Operating Partnership). The Company’s business is owning real property and real estate related assets. The Company has adopted a plan of liquidation. The Company is not permitted to make any new investments other than protective acquisitions or advances with respect to its existing assets, including providing seller financing to purchasers of its assets if it deems it prudent to facilitate the sale of such asset. It is permitted to satisfy any existing contractual obligations, including any capital call requirements and acquisitions or dispositions pursuant to buy-sell provisions under existing joint venture documentation. The Company holds approximately 10 consolidated operating properties, over 10 equity investments, approximately four loans receivable, one secured financing receivable and one loan security.

About Liberty Property Trust

Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.

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