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This article describes the 12 best real estate stocks to buy right now. If you want to see more stocks in this selection, 5 Best Real Estate Stocks to Buy Now.
Real estate stocks are known to protect investment portfolios against rising inflation. U.S. inflation rose 8.2% year-on-year in September 2022, surpassing his 40-year high set earlier this year. The U.S. Federal Reserve has raised its benchmark interest rate by 5x in 2022, but inflation growth has slowed and there are minimal signs that it is approaching the Fed’s 2% target. is showing. During times like these, the best real estate stocks offer shareholders a secure long-term investment opportunity with attractive dividend yields. In addition, these real estate companies lease their properties and enjoy the benefits of regular rent increases. Rent increases are typically indexed against the Consumer Price Index (CPI). This helps these companies increase their income in line with inflation levels.
The majority of the best real estate stocks are structured as real estate investment trusts (REITs). A REIT is an entity that generates 75% of its income from assets under ownership that are either real estate, cash, or US Treasuries. Additionally, at least 90% of taxable income must be returned to shareholders as dividends. According to Nareit, his REITs of all types in the United States collectively hold $4.5 trillion worth of total assets, and listed REITs own two-thirds of those assets. The market capitalization of all U.S. listed REITs will reach $1.4 trillion as of Q3 2022, with 30 entities included in the S&P 500 index. The market’s leading real estate companies include American Tower Corporation (NYSE:AMT), Equinix (NASDAQ:EQIX) and Simon Property Group (NYSE:SPG).
our methodology
We discussed the financial performance and growth prospects of these companies. Analyst ratings are also discussed to assess overall market sentiment for these stocks. Most of these companies offer solid shareholder returns through attractive dividend yields. We rank these stocks as of Q2 2022 using Insider Monkey’s database of 895 hedge funds.
12 Real Estate Stocks to Buy Now
12. WP Carey Inc. (NYSE: WPC)
Hedge fund holders: 17
WP Carey Inc. (NYSE:WPC) is a New York-based REIT founded in 1973. In his portfolio, he has 1,390 net lease properties totaling 170 million square feet. WP Carey Inc. (NYSE:WPC) operates in industrial, warehouse, office, retail, and self-storage facilities.
In a research note published Oct. 24, JMP Securities’ Mitch Germain gave WP Carey Inc. (NYSE:WPC) stock an Outperform rating and a price target of $86. Analysts believe the third quarter of 2022 was “transformative” for the corporate property organization after its merger with Associates, where he was able to fix the cost of financing most of the debt.
For the second quarter, WP Carey Inc. (NYSE:WPC) reported FFO per share of $1.31, up $0.04 from the year-ago quarter. The company’s portfolio share rose to his highest level since 2017 at 99.1%. Additionally, WP Carey Inc. (NYSE: WPC) stock offers an attractive futures dividend yield of 5.97% as of Oct. 28. The company is raising its annual dividend. For the last 10 years. With a healthy balance sheet and his $2.1 billion in liquidity at the end of the second quarter, analysts believe WP Carey Inc. (NYSE: WPC) is well positioned to capitalize on growth opportunities. increase.
11. Realty Income Corporation (NYSE:O)
Number of hedge fund holders: 19
Realty Income Corporation (NYSE:O) is a California REIT with over 11,400 retail properties in its portfolio. The company leases these properties on long-term contracts to his over 1,100 different clients in 72 different industries.
Realty Income Corporation (NYSE:O) is a member of the prestigious Dividend Aristocrats list and is known for paying dividends every month. The stock offers him an annual forward dividend yield of 4.87% as of Oct. 28. Realty Income Corporation (NYSE:O) is considered one of the best real estate stocks by investors looking for a steady stream of income.
Raymond James’ RJ Milligan reiterated in a research note published Oct. 4 that Realty Income Corporation (NYSE:O) shares outperformed with a target price of $68. The leasing industry despite economic uncertainty. Realty Income Corporation (NYSE:O) has invested approximately $5 billion in acquiring new properties or expanding existing properties since early 2022.
As of Q2 2022, Realty Income Corporation (NYSE:O) was owned by 19 hedge funds.
10. Welltower (NYSE:WELL)
Hedge fund holders: 26
Welltower Inc. (NYSE:WELL) is a Toledo, Ohio-based REIT focused on providing healthcare infrastructure consisting of senior housing, post-acute care centers and ambulatory care facilities.
On October 21, Barclays’ Steve Barrickett maintained his overweight rating on Welltower (NYSE:WELL) shares with a price target of $78. Analysts expect continued modest improvement in the healthcare services segment in the third quarter of 2022, boosting demand for Welltower Inc.’s (NYSE:WELL) products.
Welltower Inc. (NYSE:WELL) has an expected annual dividend yield of 4.04% as of October 28. It has a balance sheet rated BBB+ and a relatively low long-term debt-to-equity ratio. The company also has significant retained capital to fund its expansion plans.
AEW Capital Management has raised its stake in Welltower Inc. (NYSE:WELL) by 38% in the third quarter of 2022.
9. STAG Industrial (NYSE:STAG)
Hedge fund holders: 27
STAG Industrial, Inc. (NYSE:STAG) is a REIT based in Boston, Massachusetts, engaged in the acquisition and management of industrial real estate across the United States. The company owns his 111.5 million square feet of real estate across 40 states.
Wells Fargo’s Blaine Heck gave STAG Industrial, Inc. (NYSE:STAG) shares an overweight rating on October 18 with a price target of $36. The analyst believes industrial REITs are well positioned to combat an uncertain economic environment. A statement from the management of STAG Industrial, Inc. (NYSE:STAG) revealed that the company’s field activity remained stable during the third quarter of 2022. Significant damage to asset portfolio from recent Hurricane Ian.
STAG Industrial, Inc. (NYSE:STAG) boasts a 90% tenant retention rate and 98% occupancy rate as of Q3 2022. Additionally, STAG Industrial, Inc. (NYSE: STAG) offers his attractive dividend yield of 4.77%. As of October 28. The company has consistently increased its dividend since his 2011.
8. Public Storage (NYSE:PSA)
Hedge fund holders: 33
Public Storage (NYSE:PSA) is a Glendale, California-based REIT that has focused on self-storage space and units in the United States and Europe since 1972.
Experts believe Public Storage (NYSE:PSA) is an attractive player in an environment of inflation and recession due to its strong balance sheet. The company pays him an annual dividend of $8 per share, which translates to a forward dividend yield of 2.69% for him as of Oct. 28. Public Storage’s (NYSE:PSA) net debt-to-preferred ratio of 4.0x EBITDA reflects its strong position. pay higher dividends.
In terms of total and volatility-adjusted returns since 2000, Public Storage (NYSE:PSA) has outperformed the S&P 500 with a 16.9% return and a 21.2% standard deviation. The company is one of the premier real estate stocks with strong external growth opportunities.
7. Equity Residential (NYSE:EQR)
Hedge fund holders: 34
Equity Residential (NYSE:EQR) is a Chicago, Illinois-based REIT that invests in 310 properties comprising more than 80,000 apartments. The company buys, sells, develops and rents residential properties in urban areas.
Experts see record levels of occupancy in Equity Residential (NYSE:EQR). The company also has greater exposure to the growing housing market and the ability to drive rents up faster during periods of high inflation. Equity Residential (NYSE: EQR) offers his annual forward dividend yield of 4.02% as of Oct. 28. Equity Residential’s (NYSE:EQR) working capital (FFO) will be able to minimize his spending as of Oct. 28, and primarily fixed-rate debt, analysts say. I expect. The share will increase by 6-9% in the next few years. Accelerating dividend growth as a result, he could generate low-double-digit total returns over the next three years.
Baron Funds outlined its bullish outlook for Equity Residential (NYSE:EQR) in its second quarter 2022 investor letter. The company said:
“The Fund’s Multi-Family REIT –Equity Residential (NYSE:EQR) is posting strong occupancy, rent and cash flow growth. We expect existing rents, which are below market rents, to be a source of continued strong cash flow growth in the near term. Equity Residential is the largest apartment REIT in the United States and maintains a strong and liquid balance sheet. The company is currently valued at a 25% discount to net asset value and a capitalization rate of his 5.2%. ”
6. SBA Communications Corporation (NASDAQ:SBAC)
Hedge fund holders: 36
SBA Communications Corporation (NASDAQ:SBAC) is a Florida-based REIT founded in 1989. The company is a national wireless infrastructure operator and leases sites to several cellular service operators.
On October 20, Barclays’ Brendan Lynch maintained his overweight rating on SBA Communications Corporation (NASDAQ:SBAC) with a price target of $280. Over the past six years, SBA Communications Corporation (NASDAQ:SBAC) has experienced consistent cash flow growth from site leases. The company is also one of the top contenders for UBS in 2022. The investment manager believes SBA Communications Corporation (NASDAQ: SBAC) is best positioned for his 5G investment cycle in the future. provider. SBA Communications Corporation (NASDAQ:SBAC) has an expected annual dividend yield of 1.05% as of October 28.
Baron Funds shared its positive outlook for SBA Communications Corporation (NASDAQ:SBAC) in its second quarter 2022 investor letter. The company said:
“During the second quarter, we took advantage of the broader market turmoil and indiscriminate divestitures to increase the Fund’s exposure to what we believe to be an attractive valuation level.6 In May, I resumed my position as a fellow tower operator. SBA Communications Co., Ltd.
We are optimistic about the long-term prospects for wireless cell towers for the following reasons:
Mobile data growth: The average smartphone user in the United States consumed approximately 3.5 megabytes (“MB”) of data per month in 2016. Now, that same user is consuming 20-25 MB per month due to the proliferation of data-intensive applications like video streaming and gaming. Industry estimates expect this number to exceed 50 MB per month within five years. With the addition of connected smart his devices, overall mobile his data growth is expected to increase by 25% annually over the next five years…”Click here to view full text)
Besides SBA Communications Corporation (NASDAQ:SBAC), investors are also bullish on stocks such as American Tower Corporation (NYSE:AMT), Equinix (NASDAQ:EQIX) and Simon Property Group (NYSE:SPG).
Click through to read more and see the 5 Best Real Estate Stocks to Buy Now.
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disclose, reveal. none. The 12 Best Real Estate Stocks You Can Buy Right Now was first published on Insider Monkey.
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