Net Lease Office Properties (NYSE:NLOP) & Farmland Partners (NYSE:FPI) Head to Head Comparison

Farmland Partners (NYSE:FPI) and Net Lease Office Properties (NYSE:NLOP) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Dividends

Farmland Partners pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.2%. Farmland Partners pays out 47.1% of its earnings in the form of a dividend. Farmland Partners has increased its dividend for 3 consecutive years. Farmland Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Farmland Partners and Net Lease Office Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmland Partners	0	0	2	0	3.00
Net Lease Office Properties	0	0	1	0	3.00

Farmland Partners currently has a consensus target price of $15.00, indicating a potential upside of 47.35%. Net Lease Office Properties has a consensus target price of $46.00, indicating a potential upside of 61.57%. Given Net Lease Office Properties’ higher probable upside, analysts clearly believe Net Lease Office Properties is more favorable than Farmland Partners.

Insider & Institutional Ownership

58.0% of Farmland Partners shares are owned by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are owned by institutional investors. 8.3% of Farmland Partners 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 Farmland Partners and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmland Partners	36.89%	3.97%	2.01%
Net Lease Office Properties	N/A	N/A	N/A

Earnings and Valuation

This table compares Farmland Partners and Net Lease Office Properties’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmland Partners	$57.47 million	8.53	$30.91 million	$0.51	19.96
Net Lease Office Properties	$174.96 million	2.41	-$131.75 million	N/A	N/A

Farmland Partners has higher earnings, but lower revenue than Net Lease Office Properties.

Summary

Farmland Partners beats Net Lease Office Properties on 9 of the 13 factors compared between the two stocks.

About Farmland Partners

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.