Dream Office Real Estate Investment Trust (OTCMKTS:DRETF) & Corporate Office Properties Trust (NYSE:OFC) Critical Review

Dream Office Real Estate Investment Trust (OTCMKTS:DRETFGet Free Report) and Corporate Office Properties Trust (NYSE:OFCGet Free Report) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Dividends

Dream Office Real Estate Investment Trust pays an annual dividend of $2.05 per share and has a dividend yield of 37.3%. Corporate Office Properties Trust pays an annual dividend of $1.14 per share. Dream Office Real Estate Investment Trust pays out 99.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corporate Office Properties Trust pays out 67.5% of its earnings in the form of a dividend. Corporate Office Properties Trust has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Dream Office Real Estate Investment Trust and Corporate Office Properties Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dream Office Real Estate Investment Trust 0 4 1 0 2.20
Corporate Office Properties Trust 0 2 1 0 2.33

Dream Office Real Estate Investment Trust presently has a consensus target price of $23.71, suggesting a potential upside of 331.06%. Corporate Office Properties Trust has a consensus target price of $29.00, suggesting a potential upside of ∞. Given Corporate Office Properties Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Corporate Office Properties Trust is more favorable than Dream Office Real Estate Investment Trust.

Insider and Institutional Ownership

24.9% of Dream Office Real Estate Investment Trust shares are owned by institutional investors. 0.9% of Corporate Office Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Dream Office Real Estate Investment Trust and Corporate Office Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dream Office Real Estate Investment Trust N/A N/A N/A
Corporate Office Properties Trust 27.43% 10.93% 4.49%

Valuation & Earnings

This table compares Dream Office Real Estate Investment Trust and Corporate Office Properties Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dream Office Real Estate Investment Trust N/A N/A N/A $2.06 2.67
Corporate Office Properties Trust $739.03 million 0.00 $173.03 million $1.69 N/A

Corporate Office Properties Trust has higher revenue and earnings than Dream Office Real Estate Investment Trust. Corporate Office Properties Trust is trading at a lower price-to-earnings ratio than Dream Office Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Corporate Office Properties Trust beats Dream Office Real Estate Investment Trust on 10 of the 13 factors compared between the two stocks.

About Dream Office Real Estate Investment Trust

(Get Free Report)

Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world.

About Corporate Office Properties Trust

(Get Free Report)

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (IT) related activities servicing what the Company believes are growing, durable, priority missions (Defense/IT Locations). The Company also owns a portfolio of office properties located in select urban submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (Regional Office Properties). As of June 30, 2023, the Company derived 90% of its core portfolio annualized rental revenue from Defense/IT Locations and 10% from its Regional Office Properties. As of the same date and including 24 properties owned through unconsolidated joint ventures, COPT's core portfolio of 192 properties encompassed 22.9 million square feet and was 95% leased.

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