Crombie Real Estate Investment Trust (OTCMKTS:CROMF) & First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) Critical Analysis

Crombie Real Estate Investment Trust (OTCMKTS:CROMF) and First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Dividends

Crombie Real Estate Investment Trust pays an annual dividend of $0.89 per share and has a dividend yield of 9.1%. First Real Estate Investment Trust of New Jersey pays an annual dividend of $1.56 per share and has a dividend yield of 9.2%. Crombie Real Estate Investment Trust pays out -199.9% of its earnings in the form of a dividend. First Real Estate Investment Trust of New Jersey pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Crombie Real Estate Investment Trust and First Real Estate Investment Trust of New Jersey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crombie Real Estate Investment Trust	N/A	N/A	N/A
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A

Earnings & Valuation

This table compares Crombie Real Estate Investment Trust and First Real Estate Investment Trust of New Jersey’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crombie Real Estate Investment Trust	N/A	N/A	N/A	($0.44)	-21.87
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A	$1.69	10.06

Crombie Real Estate Investment Trust is trading at a lower price-to-earnings ratio than First Real Estate Investment Trust of New Jersey, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

31.8% of Crombie Real Estate Investment Trust shares are held by institutional investors. 12.0% of First Real Estate Investment Trust of New Jersey shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Crombie Real Estate Investment Trust and First Real Estate Investment Trust of New Jersey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crombie Real Estate Investment Trust	0	0	1	0	3.00
First Real Estate Investment Trust of New Jersey	0	0	0	0	N/A

Crombie Real Estate Investment Trust presently has a consensus target price of $15.83, suggesting a potential upside of 63.00%. Given Crombie Real Estate Investment Trust’s higher probable upside, analysts clearly believe Crombie Real Estate Investment Trust is more favorable than First Real Estate Investment Trust of New Jersey.

About Crombie Real Estate Investment Trust

Crombie invests in real estate that enriches local communities and enables long-term sustainable growth. As one of the country's leading owners, operators, and developers of quality real estate, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-used residential properties in Canada's top urban and suburban markets. As at June 30, 2023, our portfolio contains 293 income-producing properties comprising approximately 18.6 million square feet, and a significant pipeline of future development projects.

About First Real Estate Investment Trust of New Jersey

First Real Estate Investment Trust of New Jersey, Inc. is a publicly traded (over-the-counter symbol FREVS) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey and New York, with the largest concentration in northern New Jersey.