10 Best Real Estate and Realty Stocks To Buy According to Hedge Funds

2. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 56

American Tower Corporation (NYSE:AMT) serves as one of the largest global real estate investment trusts. The company was founded in 1995 as an American Radio subsidiary and currently offers services and solutions to deploy and support wireless networks in 25 countries across six continents. It has a portfolio of independently owned U.S. and international tower real estate and a network of data centers in America. The company serves mobile network operators, multinational telecommunications companies, media and broadband providers, and government agencies.

American Tower Corporation has the kind of portfolio that has resulted in a footprint across diverse geographies. The ongoing exponential growth in mobile data consumption has driven performance in the United States. The company’s current financial performance is backed up by the strong underlying demand for its portfolio of communications assets. Its synergy revolves around having that global expertise and experience which enables it to navigate operational risks in new markets while simultaneously creating opportunities. Since emerging markets remain more vulnerable to external risks, the company focuses on incremental investments in developed economies while expecting to reduce their relative exposure to emerging markets over time.

The stock has bright growth prospects on the horizon after the company’s demoralizing situation where its adjusted FFO declined by 2.1% in the last quarter of 2023. However, the future seems optimistic as the REIT continued its momentum for 2024 by growing its adjusted by 13.5% to $1.3 billion during the second quarter. This was backed up by over 5% Organic Tenant Billings Growth in its US & Canada segment, positive collection trends in India, and the second-highest quarter of signed new business achieved by CoreSite.

With a dividend yield of 2.76% and a 5-year dividend growth rate of 13.71%, American Tower Corporation (NYSE:AMT) is one of the best real estate stocks to buy now. The company has also managed to grow its revenue by 11.66% and its net income by 13.25% over the last decade. Furthermore, the stock is trading at 34 times its forward earnings, a 5.75% discount to the sector. As of March 31, the stock is held by 56 hedge funds.