Terreno Realty (NYSE:TRNO) & InvenTrust Properties (NYSE:IVT) Financial Review

InvenTrust Properties (NYSE:IVT – Get Free Report) and Terreno Realty (NYSE:TRNO – Get Free Report) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider and Institutional Ownership

61.7% of InvenTrust Properties shares are held by institutional investors. 0.7% of InvenTrust Properties shares are held by insiders. Comparatively, 1.9% of Terreno Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. InvenTrust Properties pays out 70.9% of its earnings in the form of a dividend. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. InvenTrust Properties has raised its dividend for 4 consecutive years and Terreno Realty has raised its dividend for 5 consecutive years. Terreno Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for InvenTrust Properties and Terreno Realty, as provided by MarketBeat.

InvenTrust Properties presently has a consensus target price of $34.71, suggesting a potential downside of 2.35%. Terreno Realty has a consensus target price of $69.21, suggesting a potential upside of 3.04%. Given Terreno Realty’s higher probable upside, analysts clearly believe Terreno Realty is more favorable than InvenTrust Properties.

Earnings and Valuation

This table compares InvenTrust Properties and Terreno Realty”s gross revenue, earnings per share and valuation.

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

Profitability

This table compares InvenTrust Properties and Terreno Realty’s net margins, return on equity and return on assets.

Risk & Volatility

InvenTrust Properties has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Summary

Terreno Realty beats InvenTrust Properties on 14 of the 17 factors compared between the two stocks.

About InvenTrust Properties

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InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

About Terreno Realty

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Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.