Rouse Properties (RSE) vs. Kite Realty Group Trust (KRG) Head-To-Head Review

Rouse Properties (NYSE: RSE) and Kite Realty Group Trust (NYSE:KRG) are both small-cap retail reits companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rouse Properties and Kite Realty Group Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rouse Properties 0 0 0 0 N/A
Kite Realty Group Trust 0 4 2 1 2.57

Kite Realty Group Trust has a consensus target price of $26.00, indicating a potential upside of 34.44%. Given Kite Realty Group Trust’s higher probable upside, analysts plainly believe Kite Realty Group Trust is more favorable than Rouse Properties.

Dividends

Rouse Properties pays an annual dividend of $0.54 per share and has a dividend yield of 3.0%. Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.3%. Rouse Properties pays out -207.7% of its earnings in the form of a dividend. Kite Realty Group Trust pays out 806.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rouse Properties has raised its dividend for 3 consecutive years and Kite Realty Group Trust has raised its dividend for 4 consecutive years. Kite Realty Group Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

94.7% of Kite Realty Group Trust shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Rouse Properties and Kite Realty Group Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Rouse Properties N/A N/A N/A ($0.26) -70.27
Kite Realty Group Trust $354.12 million 4.57 $1.18 million $0.15 128.93

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

Profitability

This table compares Rouse Properties and Kite Realty Group Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rouse Properties -12.34% -9.28% -1.58%
Kite Realty Group Trust 3.60% 0.80% 0.36%

Summary

Kite Realty Group Trust beats Rouse Properties on 12 of the 13 factors compared between the two stocks.

Rouse Properties Company Profile

Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.

Kite Realty Group Trust Company Profile

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

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