First Industrial Realty Trust (NYSE:FR) & Kite Realty Group Trust (NYSE:KRG) Critical Analysis

First Industrial Realty Trust (NYSE:FR) and Kite Realty Group Trust (NYSE:KRG) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Industrial Realty Trust	42.94%	10.64%	5.51%
Kite Realty Group Trust	0.48%	0.12%	0.06%

Valuation & Earnings

This table compares First Industrial Realty Trust and Kite Realty Group Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Industrial Realty Trust	$669.64 million	11.27	$287.55 million	$2.18	26.14
Kite Realty Group Trust	$841.84 million	6.09	$4.07 million	$0.02	1,166.50

First Industrial Realty Trust has higher earnings, but lower revenue than Kite Realty Group Trust. First Industrial Realty Trust 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.

Risk and Volatility

First Industrial Realty Trust has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Kite Realty Group Trust has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for First Industrial Realty Trust and Kite Realty Group Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Industrial Realty Trust	0	7	7	0	2.50
Kite Realty Group Trust	0	5	2	1	2.50

First Industrial Realty Trust presently has a consensus price target of $58.31, suggesting a potential upside of 2.31%. Kite Realty Group Trust has a consensus price target of $28.13, suggesting a potential upside of 20.55%. Given Kite Realty Group Trust’s higher possible upside, analysts clearly believe Kite Realty Group Trust is more favorable than First Industrial Realty Trust.

Dividends

First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.1%. Kite Realty Group Trust pays an annual dividend of $1.08 per share and has a dividend yield of 4.6%. First Industrial Realty Trust pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust pays out 5,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust has increased its dividend for 12 consecutive years.

Insider and Institutional Ownership

99.8% of First Industrial Realty Trust shares are held by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are held by institutional investors. 0.9% of First Industrial Realty Trust shares are held by company insiders. Comparatively, 2.0% of Kite Realty Group Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

First Industrial Realty Trust beats Kite Realty Group Trust on 10 of the 17 factors compared between the two stocks.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.