Analyzing Keppel REIT (OTCMKTS:KREVF) and EastGroup Properties (NYSE:EGP)

EastGroup Properties (NYSE:EGP) and Keppel REIT (OTCMKTS:KREVF) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

92.1% of EastGroup Properties shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for EastGroup Properties and Keppel REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	5	11	1	2.76
Keppel REIT	0	0	0	0	0.00

EastGroup Properties currently has a consensus price target of $193.56, suggesting a potential upside of 6.81%. Given EastGroup Properties’ stronger consensus rating and higher probable upside, equities research analysts plainly believe EastGroup Properties is more favorable than Keppel REIT.

Risk & Volatility

EastGroup Properties has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Keppel REIT has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares EastGroup Properties and Keppel REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$697.92 million	13.85	$227.75 million	$4.76	38.07
Keppel REIT	$195.76 million	12.56	$81.16 million	N/A	N/A

EastGroup Properties has higher revenue and earnings than Keppel REIT.

Profitability

This table compares EastGroup Properties and Keppel REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	35.58%	7.28%	4.76%
Keppel REIT	N/A	N/A	N/A

Summary

EastGroup Properties beats Keppel REIT on 13 of the 13 factors compared between the two stocks.

About EastGroup Properties

EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.

About Keppel REIT

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.