Franklin Street Properties Corp. (FSP) vs Net Lease Office Properties (NLOP)

Franklin Street Properties Corp. and Net Lease Office Properties are both Reit Office companies. Net Lease Office Properties is the larger, with a market value of $133.6M against $44.3M — 3.0× the size. Franklin Street Properties Corp. has negative trailing earnings, so its P/E is not meaningful; Net Lease Office Properties trades at 7.5×. Franklin Street Properties Corp. grew revenue faster over the last twelve months: −5.43% against −55.1%. Net Lease Office Properties has the higher net margin (34.8% vs −41.1%) and the higher return on invested capital (−0.99% vs −2.65%). Both pay a dividend; Net Lease Office Properties yields more (44.3% vs 2.38%). Across the 20 metrics below, Net Lease Office Properties leads on 15 and Franklin Street Properties Corp. on 5.

Valuation

Metric FSP NLOP Reit Office median
P/E n/m 7.53 28.35
P/S 0.42 2.64 2.77
P/B 0.08 0.82 0.82
Price to free cash flow 3.36 0.45 13.95
EV/EBITDA 18.23 9.63 12.41
EV/Sales 2.47 2.47 6.90
Earnings yield (97.02%) 13.27% (2.06%)
Free cash flow yield 29.74% 221.94% 6.73%

Profitability

Metric FSP NLOP Reit Office median
Gross margin 46.13% 88.14% 60.87%
Operating margin (32.03%) (4.13%) 17.78%
Net margin (41.10%) 34.79% (2.87%)
Free cash flow margin 12.55% 585.16% 14.89%
Return on equity (7.18%) 6.02% (1.07%)
Return on assets (4.85%) 5.15% (0.34%)
Return on invested capital (2.65%) (0.99%) 1.33%

Growth

Metric FSP NLOP Reit Office median
Revenue growth (TTM) (5.43%) (55.11%) 2.67%
EPS growth (last fiscal year) 15.69% (58.74%) 8.85%
Revenue growth, 5-year CAGR (15.30%) — 3.91%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric FSP NLOP Reit Office median
Debt to equity 0.43 0.00 1.24
Current ratio 2.56 2.40 1.98
Net debt to EBITDA 17.43 1.63 6.86

Dividend

Metric FSP NLOP Reit Office median
Dividend yield 2.38% 44.28% 4.16%
Payout ratio — 3.34 3.34

Size

Metric FSP NLOP Reit Office median
Market cap 44.26m 133.63m 1.22b

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