In this article, we will discuss the 10 Best Real Estate Stocks to Buy According to Billionaires.
In 2025, CBRE Investment Management sees the potential for global listed real estate to outperform broad equities and offer a differentiated total return as compared to the private markets. As per the firm, the listed real estate remains in the early days of a new upcycle, one where long-term yields remain range-bound, earnings continue to accelerate, listed capital market access remains abundant, and valuations can aid continued returns. In 2025, the listed real estate is expected to be characterized by accelerating organic earnings based on improved supply/demand throughout various sectors and access to capital supporting potential acquisitions and upside to estimates, among others.
Listed Real Estate- What’s Ahead?
CBRE Investment Management believes that a new cycle for listed real estate kicked off in Q4 2023 with the recognition of a pause in the rate hikes. The absence of hikes is expected to be powerful for listed real estate, even though there isn’t a strong fall in target rates themselves. Notably, real estate has performed well during periods of range-bound long-term yields. Over 2001-2007, the US 10-year bonds delivered between ~4% – 5%, and listed real estate managed to generate double-digit average returns. The investment firm also added that strong access to capital of listed real estate, versus more constrained private real estate participants, can be maintained moving forward.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Improved Earnings Growth Expected in Real Estate Sector
CBRE Investment Management sees earnings accelerating into 2025 across the real estate sectors. Globally, it expects 5% earnings growth, which is around double that of 2024 levels. Broad-based strength remains visible, with private-pay senior housing continuing to capitalize on powerful demographics and data center growth accelerating with generative AI. Also, the cell towers continue to gradually recover from customer churn, and retail and net leases have been performing, thanks to supply/demand and their prevailing capital costs.
The investment firm opines that the total return opportunity for REITs remains compelling. The listed real estate provides a ~4% dividend yield, which remains competitive versus private real estate income. This dividend continues to grow and is based on the conservative payout level. Amidst moderating central bank target rates as well as range-bound long-term yields, the firm believes that listed real estate is expected to prosper.
Amidst such factors, let us now have a look at the 10 Best Real Estate Stocks to Buy According to Billionaires.
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Our Methodology
We used the Finviz stock screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies catering to the broader real estate sector. We also mentioned the hedge fund sentiment around each stock, as of Q4 2024.
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10 Best Real Estate Stocks to Buy According to Billionaires
10. Welltower Inc. (NYSE:WELL)
Number of Billionaire Investors: 8
Number of Hedge Fund Holders: 44
Welltower Inc. (NYSE:WELL) is the world’s pre-eminent residential wellness and healthcare infrastructure company. Wells Fargo upped the price objective on the company’s stock to $158 from $140, keeping an “Equal Weight” rating. The firm noted that it announced a large portfolio acquisition with Amica, demonstrating the continued opportunities in the senior housing transaction market. Welltower Inc. (NYSE:WELL) highlighted that the communities will join the top echelons of the Welltower portfolio, demonstrated by their location in the most desirable neighbourhoods in all of Canada and their ultra-luxe amenities and finishes.
Amidst rapidly growing demand and limited new supply, Welltower Inc. (NYSE:WELL) expects the portfolio to drive outsized revenue and cash flow growth over the upcoming years. The stable Amica assets have showcased strong pricing power with RevPOR growth even surpassing Welltower Inc. (NYSE:WELL)’s overall SHO portfolio over the previous 5 years. Elsewhere, Scotiabank analyst Nicholas Yulico upped the price objective to $166 from $165, keeping an “Outperform” rating. The analyst opines that the company’s C$4.6 billion Amica Senior Lifestyles Canadian portfolio acquisition reflected its ability to get top-notch-quality senior housing portfolios at an attractive discount.
Baron Funds, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“We initiated a new position in Welltower Inc. (NYSE:WELL), which owns and operates senior housing and medical office buildings in the U.S. and internationally. We believe that operating fundamentals in the senior housing industry will continue to be robust, and Welltower is well positioned to capture both a cyclical and secular inflection in growth during the coming years. If occupancy of the company’s units were to return to levels achieved before the pandemic, we believe that senior housing cash flow would grow by more than 50%. In addition, we believe that there is further structural upside opportunity to both occupancy and operating margins by enhancing asset management, employing proprietary data analytics, and introducing initiatives such as amenity-based pricing. We recently met with the entire Welltower executive team in our offices and came away encouraged by the multi-dimensional growth opportunities ahead. Welltower has recruited top senior executives from the multi-family housing market to execute and deploy various initiatives that they believe can drive profitability beyond what other industry participants have achieved.
In addition, the broader industry backdrop hasn’t been this favorable in many years. Underlying demand is supported by a demographics boom with the over 80 population projected to grow at a 4% to 5% CAGR over the next five years versus annual growth below 2% coming out of the Great Financial Crisis. Supply is expected to remain muted since construction starts are declining rapidly, current developer economics are no longer attractive and entitling and building a new project takes roughly five years. The current financing environment for senior housing remains capital constrained, with loans either coming due and/or interest rate caps coming off assets that were acquired during a period of low interest rates. We believe this should provide an active and growing external acquisition pipeline, where management can invest capital at an attractive “cost basis” below replacement cost. Lastly, we believe that management, led by Shankh Mitra (CEO), John Burkart (COO), Tim McHugh (CFO), and Nikhil Chaudhri (CIO), are astute capital allocators focused on driving accretive value per share. Putting this all together, we see a path for earnings to more than double over the next five years, leading to attractive return prospects for the fund.”
9. Simon Property Group, Inc. (NYSE:SPG)
Number of Billionaire Investors: 8
Number of Hedge Fund Holders: 40
Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust. UBS analyst Michael Goldsmith maintained a “Neutral” rating on the company’s stock with a steady price objective of $180.00. The analyst has highlighted the high occupancy rate and robust sales growth at Roosevelt Field Mall. Furthermore, the strong foot traffic and retailer demand at the mall, together with dynamic merchandising strategies, remain noteworthy. The analyst believes that the mall has been performing well amidst the broader challenges faced by the retail sector.
Simon Property Group, Inc. (NYSE:SPG)’s ability to attract and retain tenants, even during the changing consumer preferences, showcases that its properties are desirable locations for retailers. Furthermore, the evolving retail landscape offers numerous opportunities for Simon Property Group, Inc. (NYSE:SPG) to leverage its market position and high-quality portfolio. The increasing importance of omnichannel strategies among retailers remains in line with the company’s offering of prime physical locations complementing online sales channels. In 2024, Simon Property Group, Inc. (NYSE:SPG) generated a record FFO of ~$4.9 billion and returned over $3 billion to shareholders. It also executed more than 21 million square feet of leases, opened a fully-leased new Premium Outlet in the U.S., delivered 16 significant redevelopment projects, and strengthened its industry-leading balance sheet.
8. Public Storage (NYSE:PSA)
Number of Billionaire Investors: 9
Number of Hedge Fund Holders: 37
Public Storage (NYSE:PSA) is a REIT that mainly acquires, develops, owns, and operates self-storage facilities. The company’s completed Property of Tomorrow enhancement program, transformation initiatives, sizeable and high-growth non-same store pool as well as growth-oriented balance sheet place the company well for improved fundamentals and increased transaction market activity moving forward. Public Storage (NYSE:PSA)’s more bullish outlook on acquisitions as well as potential for expanded development activities offer numerous opportunities. With the help of strategic acquisitions, the company can consolidate its market position, which can help realize economies of scale and enhance the competitive advantage.
Also, through the expansion of development efforts, Public Storage (NYSE:PSA) can create a pipeline of high-quality, purpose-built facilities in prime locations. This can offer a competitive edge in terms of facility quality and location, helping it to command premium rates. New developments enable Public Storage (NYSE:PSA) to tailor facilities to evolving customer needs and preferences, including climate-controlled units or enhanced security features. During Q4 2024, the company acquired 17 self-storage facilities with 1.3 million net rentable square feet for $221.2 million. Subsequent to December 31, 2024, Public Storage (NYSE:PSA) acquired or was under contract to acquire 9 self-storage facilities with 0.7 million net rentable square feet for $140.7 million. The company has opened 3 newly developed facilities and completed numerous expansion projects.
7. Prologis, Inc. (NYSE:PLD)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 55
Prologis, Inc. (NYSE:PLD) is the global leader in logistics real estate with an emphasis on high-barrier, high-growth markets. Blaine Heck, an analyst from Wells Fargo, maintained a “Buy” rating on the company’s stock. The associated price target was $146.00. The analyst’s rating is backed by factors demonstrating the company’s stable management transition and positive leasing trends. As per the analyst, Prologis, Inc. (NYSE:PLD)’s recent earnings report demonstrated optimism with higher leasing activity and a conservative initial guidance, reflecting the potential for better-than-expected performance in 2025. Its large platform and development expertise set it apart from competitors, which contributed to the rating. The company highlighted that post-election leasing activity remained healthy, and its conversations with customers support the expectation that the broader market is nearing an inflection point.
For FY 2025, Prologis, Inc. (NYSE:PLD) expects net earnings attributable to common stockholders of between $3.45 to $3.70. Elsewhere, UBS remains optimistic about the company, given its strategic initiatives and the healthy fundamentals of the industrial real estate market. It highlighted several positive indicators for the leasing environment, which are beginning to emerge. Prologis, Inc. (NYSE:PLD) noted a normalization of supply and demand dynamics in the broader market.
Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Prologis, Inc. (NYSE:PLD) detracted from performance because of ongoing challenges facing industrial real estate investment trusts more broadly. The company reported solid results for the third quarter, but the industrial space remains oversupplied — though the problem is abating — and clients chose to delay leasing decisions until aft er the U.S. presidential election.”
6. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 47
Digital Realty Trust, Inc. (NYSE:DLR) brings companies and data together by delivering the full spectrum of data center, co-location, and interconnection solutions. Fitch Ratings believes that secular tailwinds, such as AI demand, cloud storage, and the migration away from on-premise data centers, support the company’s credit profile. Furthermore, demand growth, mainly for hyperscale AI-related applications, surpassed supply. Notably, the data center providers have leveraged this via pricing and new development. These demand tailwinds are some of the positive factors for Digital Realty Trust, Inc. (NYSE:DLR), says the ratings agency.
Scotiabank analyst Maher Yaghi upped the company’s stock to “Outperform” from “Sector Perform,” with an unchanged price objective of $208. Notably, the demand for computational power remains robust. Scotiabank, which opines that infrastructure demand is expected to remain strong, supporting a multi-year growth path for companies in the sector, added that Digital Realty Trust, Inc. (NYSE:DLR) significantly improved its balance sheet. Elsewhere, Michael Rollins from Citi maintained a “Buy” rating on the company’s stock with a price objective of $212.00.
The analyst sees the potential for Digital Realty Trust, Inc. (NYSE:DLR) to accelerate its core funds from operations per share (FFOPS) in the future. Furthermore, the analyst noted that the demand for Gen-AI workloads can benefit hyper-scale leasing, and the eventual pivot to greater inference demand can favourably impact the retail-centric business. Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Data center landlords such as Equinix and Digital Realty Trust, Inc. (NYSE:DLR) are benefiting from record low vacancy, demand outpacing supply, more constrained power availability, and rising rental rates. Several secular demand vectors, which are currently broadening, are contributing to robust fundamentals for data center space globally. They include the outsourcing of information technology infrastructure, increased cloud computing adoption, the ongoing growth in mobile data and internet traffic, and AI as a new wave of data center demand. Put simply, each year data continues to grow exponentially, and all of this data needs to be processed, transmitted, and stored – supporting increased demand for data center space. In addition, while it is still early innings, we believe AI could not only provide a source of incremental demand but also further accelerate existing secular trends by driving increased prioritization and additional investment in digital transformation among enterprises.”
5. Equinix, Inc. (NASDAQ:EQIX)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 56
Equinix, Inc. (NASDAQ:EQIX) is a retail provider of data centers, allowing enterprise tenants to house their servers and networking equipment in a co-located environment. CFRA analyst Kenneth Leon upped the company’s stock from “Hold” to “Strong Buy,” setting the price objective to $985.00. The company has a market leadership in a rapidly expanding industry. The analyst believes that Equinix, Inc. (NASDAQ:EQIX) remains at the core of technology markets and serves as a global provider of data centers essential for AI and cloud computing services. Furthermore, the analyst noted that industry fundamentals remain favorable for the company, with supply constraints in the market, exhibiting a healthy outlook for growth and performance.
Elsewhere, Wolfe Research upped the company’s stock from “Peer Perform” to “Outperform.” The firm’s favorable outlook stems from Equinix, Inc. (NASDAQ:EQIX)’s risk-adjusted growth profile. As per the analysts, the premium valuation is justified given the growth potential. Wolfe Research noted the strategic position of Equinix, Inc. (NASDAQ:EQIX) in the market and its capability to capitalize on the increasing need for data center services. Overall, the upgraded rating and new price target showcase its future performance and potential to deliver healthy returns.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“In the most recent quarter, the shares of Equinix, Inc. (NASDAQ:EQIX), the premier global operator of network-dense, carrier-neutral data centers, performed well following solid third quarter results. We continue to be optimistic about the long-term growth prospects for the company due to its interconnection focus among a highly curated customer ecosystem, irreplaceable global footprint, strong demand and pricing power, favorable supply backdrop, and evolving incremental demand vectors such as AI. Equinix has multiple levers to drive outsized bottom-line growth with operating leverage. Equinix should compound its earnings per share at approximately 10% over the next few years and we believe the prospects for outsized shareholder returns remain compelling from here given the superior secular growth prospects combined with a discounted valuation.
In the most recent quarter, we acquired additional shares of Equinix, Inc., the premier global operator of network-dense, carrier-neutral data centers
We continue to be optimistic about the long-term growth prospects for the company due to its interconnection focus among a highly curated customer ecosystem, irreplaceable global footprint, strong demand and pricing power, favorable supply backdrop and evolving incremental demand vectors such as AI. The company has multiple levers to drive outsized bottom-line growth with operating leverage. Equinix should compound its earnings per share at approximately 10% over the next few years and we believe the prospects for outsized shareholder returns remain compelling from here given the superior secular growth prospects combined with a discounted valuation.”
4. Realty Income Corporation (NYSE:O)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 36
Realty Income Corporation (NYSE:O) is a real estate partner to the world’s leading companies. The company’s expansion into Europe offers numerous potential benefits. It enables geographical diversification, reducing its dependence on any single market and potentially offsetting regional economic risks. This diversification can result in a more stable and resilient income stream over time. The European market can provide opportunities for higher cap rates in comparison to the saturated US market. Realty Income Corporation (NYSE:O) has been able to expand the average acquisition cap rates via investments in Europe.
Also, the private capital fund initiative by Realty Income Corporation (NYSE:O) can provide numerous advantages. It mainly addresses the challenge of accessing significant amounts of capital for the purposes of continued growth. By the creation of evergreen vehicle, Realty Income Corporation (NYSE:O) can improve its cost of capital over the long run, which remains important for REIT’s performance and ability to make acquisitions. The company’s deep access to capital, global reach for proprietary acquisition opportunities, and track record using predictive analytics tools in a bid to improve portfolio management capabilities demonstrate the inherent advantages of the company’s unique business model.
Parnassus Investments, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:
“Realty Income Corporation (NYSE:O) is poised to benefit from lower interest rates. Because its commercial tenants are mostly on 10-year leases, the stock’s steady dividend stream is attractive in the current environment of slow deceleration in the economy with rates coming down. In this favorable backdrop, the company also continues to execute well.”
3. CBRE Group, Inc. (NYSE:CBRE)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 54
CBRE Group, Inc. (NYSE:CBRE) operates as a commercial real estate services and investment company. Jefferies upped the company’s stock to “Buy” from “Hold” with a price objective of $152, up from $133. Notably, the firm has a positive outlook on the commercial real estate services space for 2025. The upgrade is backed by CBRE Group, Inc. (NYSE:CBRE)’s leadership in the outsourcing industry, which is expected to fuel sales growth, with upside from capital markets activities. Elsewhere, Keefe Bruyette upped the price objective to $142 from $138, keeping the “Market Perform” rating. As per the analyst, heading into 2025, the capital markets’ momentum and stabilization of commercial real estate values place the broader commercial real estate finance sector for recovery.
Among CBRE Group, Inc. (NYSE:CBRE)’s notable strategic gains are integrating the project management capabilities into Turner & Townsend, its subsidiary, and acquiring the full ownership of Industrious, which is a provider of premium flexible workplace solutions. The company’s Building Operations & Experience segment is expected to unify building operations, workplace experience, and property management, placing CBRE Group, Inc. (NYSE:CBRE) to deliver scalable, future-ready solutions for offices, data centers, warehouses, and other facilities.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Leading commercial real estate services companies CBRE Group, Inc. (NYSE:CBRE) and Jones Lang LaSalle Incorporated (JLL) should benefit from structural and secular tailwinds: the outsourcing of commercial real estate, the institutionalization of commercial real estate, and opportunities to increase market share in a highly fragmented market. Looking forward, we believe we are in the early days of a rebound in commercial real estate sales and leasing activity. We believe CBRE and JLL may generate annual earnings per share growth of more than 20% in the next few years.”
2. Crown Castle Inc. (NYSE:CCI)
Number of Billionaire Investors: 12
Number of Hedge Fund Holders: 54
Crown Castle Inc. (NYSE:CCI) operates as a real estate investment trust. It owns, operates, and leases towers and other infrastructure for wireless communications. Wolfe Research lifted the company’s stock from ‘Underperform’ to ’Peer Perform.’ As per the analyst, the decision to sell its small cell and fiber business is the key factor in the rating upgrade. Notably, Crown Castle Inc. (NYSE:CCI) has concluded the strategic review of its Fiber segment with an agreement to sell the small cells and fiber solutions businesses for $8.5 billion. Furthermore, the analyst noted that the current economic climate continues to be in favour of defensive businesses, reflecting that the company’s positioning is advantageous.
In 2025, Crown Castle Inc. (NYSE:CCI) expects a consistent level of activity with organic growth of 4.5% in towers, excluding the impact of Sprint consolidation churn, and anticipates lease and amendment applications to rise YoY as its customers continue to add capacity to 5G networks in a bid to meet the persistent growth in mobile data demand in the US. The London Company, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Crown Castle Inc. (NYSE:CCI) – CCI was a bottom performer this quarter driven by the lower-than-expected rumored valuation for a potential sale of the fiber/small cell businesses and slower interest rate cuts in 2025. CCI continues to report positive tower activity but canceled some low-return small cell projects, which was viewed as a negative this quarter. The new management team has taken action to improve the return profile of the business and margins have already shown improvements. CCI is in a good position for future growth given its tower locations and U.S.-focused portfolio. We like CCI’s stable revenue stream, long-term tailwinds on growth in data consumption, and its ability to return cash to shareholders through its dividend policy.”
1. American Tower Corporation (NYSE:AMT)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 70
American Tower Corporation (NYSE:AMT) is a real estate investment trust that owns, operates, and develops wireless communications and broadcast towers. Wells Fargo analyst Eric Luebchow upgraded the company’s stock to “Overweight” from “Equal Weight” with a price objective of $230, up from $210. The firm is being optimistic about the tower sector, citing uncertain macroeconomic conditions, and bottoming of billings growth in 2025, together with an acceleration in funds from operations growth as churn headwinds ease. American Tower Corporation (NYSE:AMT)’s strategic pivot towards developed markets and data centers can enhance the long-term growth prospects and enhance earnings quality. Notably, the developed markets provide more stable regulatory environments and economic conditions, which can result in more predictable cash flows.
The expansion into data centers remains in line with the increasing demand for cloud services and digital infrastructure, offering new avenues for growth over and above the traditional tower assets. The diversification can lead to a more resilient business model and elevated valuations from investors looking for a reduced risk profile and exposure to high-growth sectors. Amidst the challenging macroeconomic environment, the demand for connectivity throughout American Tower Corporation (NYSE:AMT)’s global platform continues unabated. The focus on enhancing the quality of earnings via portfolio management, disciplined capital allocation, and balance sheet strength place it well against volatility and uncertainty.
Meridian Funds, managed by ArrowMark Partners, released its Q4 2024 investor letter. Here is what the fund said:
“American Tower Corporation (NYSE:AMT) is a leading global owner and operator of wireless communications infrastructure, with a portfolio spanning the U.S. and key international markets. We hold American Tower for its exposure to the secular growth in wireless data consumption and its strategic positioning in underpenetrated emerging markets. The company benefits from long-term contracts with investment-grade wireless carriers, providing strong visibility into future cash flows. This quarter, performance was mixed. Revenue met expectations but fell short of consensus. Adjusted EBITDA declined slightly year-over year, impacted by the divestiture of its India business and elevated bad debt expense. However, organic tenant billings growth remained healthy, with U.S. and international markets posting solid growth. While we maintain conviction in American Tower’s ability to benefit from increasing data consumption and 5G network deployments, near-term currency headwinds and regional challenges warrant monitoring.”
While we acknowledge the potential of AMT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than AMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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