Analyzing Government Properties Income Trust (GOV) & Its Peers

Government Properties Income Trust (NYSE: GOV) is one of 87 public companies in the “Commercial REITs” industry, but how does it compare to its competitors? We will compare Government Properties Income Trust to related businesses based on the strength of its dividends, analyst recommendations, earnings, institutional ownership, profitability, risk and valuation.

Dividends

Government Properties Income Trust pays an annual dividend of $1.72 per share and has a dividend yield of 9.6%. Government Properties Income Trust pays out -76.1% of its earnings in the form of a dividend. As a group, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 212.6% of their earnings in the form of a dividend. Government Properties Income Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Government Properties Income Trust and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Government Properties Income Trust 3 1 1 0 1.60
Government Properties Income Trust Competitors 636 2514 2181 23 2.30

Government Properties Income Trust currently has a consensus price target of $18.40, suggesting a potential upside of 2.45%. As a group, “Commercial REITs” companies have a potential upside of 8.74%. Given Government Properties Income Trust’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Government Properties Income Trust has less favorable growth aspects than its competitors.

Volatility & Risk

Government Properties Income Trust has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Government Properties Income Trust’s competitors have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

Profitability

This table compares Government Properties Income Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Government Properties Income Trust 4.64% 5.16% 0.55%
Government Properties Income Trust Competitors 52.14% 6.71% 3.85%

Institutional and Insider Ownership

69.5% of shares of all “Commercial REITs” companies are owned by institutional investors. 9.0% of shares of all “Commercial REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Government Properties Income Trust and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Government Properties Income Trust $269.69 million $143.68 million -7.95
Government Properties Income Trust Competitors $457.04 million $289.32 million 33.78

Government Properties Income Trust’s competitors have higher revenue and earnings than Government Properties Income Trust. Government Properties Income Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Government Properties Income Trust competitors beat Government Properties Income Trust on 12 of the 15 factors compared.

About Government Properties Income Trust

Government Properties Income Trust is a real estate investment trust (REIT). The Company operates through two segments: ownership of properties that are primarily leased to government tenants and its equity method investment in Select Income REIT (SIR). The Company’s properties are located in areas, including Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey and New Mexico. As of December 31, 2016, the Company owned 73 properties (95 buildings). As of December 31, 2016, the Company’s properties were located in 31 states and the District of Columbia, and contained approximately 11.4 million rentable square feet.

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