In this article, we will take a look at the 10 best REIT stocks to buy according to billionaires.
News from the US Real Estate Market
Although the spring housing season started off with more sellers and increasing homes for sale as pointed out by the chief economist at Realtor.com, Danielle Hale, home buyers are still facing a high cost of buying in addition to economic concerns thereby suggesting a rather ‘sluggish response from buyers in early spring’.
With regards to the tariff impact on real estate, the announcement of the new Trump tariffs resulted in a sell-off and a sharp drop in mortgage rates while homeowners and home buyers seized the moment, with mortgage applications moving to a six-month high. Realtor.com suggests that tariffs often translate into higher costs for the consumer. In the case of housing, the new tariffs could result in increased construction costs for homebuilders considering the fact that 10% of the building materials utilized in residential construction tend to be imported. Realtor.com Senior Economist Joel Berner emphasized the downside of these tariffs as he talked about many homebuyers being sidelined in case of a small rise in costs and stated:
“The US faces a supply gap of nearly 4 million homes, and the only long-term solution to this problem is to build them, but the implementation of these tariffs will make it more costly to do so, putting a question mark on whether they can be built at the lower price points that are most undersupplied”
Although many economists still think that tariffs could lead to a recession which typically results in lower mortgage rates, another concern looming over real estate is that tariffs could keep inflation higher for longer which might lead to the Federal Reserve reversing or reducing future cuts to its policy rate which would keep mortgage rates higher for longer.
Now that we have taken a look at the real estate sector, let’s move to our list of the best REIT stocks to buy according to billionaires.
Aerial view of high-rise buildings representing the investing and ownership of Equity Real Estate Investment Trust.
Our Methodology
To compile our list of the best REIT stocks to buy according to billionaires, we used Insider Monkey’s exclusive database of billionaire stock holdings. Firstly, we shortlisted the most prominent REIT stocks using a stock screener and ETFs. Then, we selected the top 10 REIT stocks based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best REIT Stocks to Buy According to Billionaires
10. Extra Space Storage Inc. (NYSE:EXR)
Number of Billionaires: 9
Number of Hedge Fund Holders: 36
Extra Space Storage Inc. (NYSE:EXR) is a fully integrated, self-administered, and self-managed real estate investment trust headquartered in Salt Lake City. The REIT offers customers conveniently located and secure storage units, which include boat storage, RV storage, and business storage. The firm owned and/or operated 4,011 self-storage stores in 42 states and Washington, D.C., as of December 31, 2024.
As the largest operator of self-storage properties in the United States, Extra Space Storage Inc. (NYSE:EXR) is well positioned. The REIT focuses on self-storage which is a need-based, recession-resilient asset class with rising utilization, awareness, length of customer stay, and demand drivers in positive and negative economic environments. The REIT has demonstrated consistent growth of its geographically diverse portfolio through accretive acquisitions, joint-venture partnerships, and third-party management services which have resulted in a strong portfolio. The REIT’s portfolio strength and the resiliency of the self-storage sector are evident from the fact that on March 5, Extra Space Storage Inc. (NYSE:EXR) celebrated a major milestone as it announced reaching more than 4,000 stores across the nation. The REIT successfully added 297 stores to its operating platform in 2024.
9. Public Storage (NYSE:PSA)
Number of Billionaires: 9
Number of Hedge Fund Holders: 37
Public Storage (NYSE:PSA) is the largest owner, operator, and developer of self-storage facilities in the world. The firm is a member of the S&P 500 and FT Global 500. As of December 31, 2024, the real estate investment trust owned and/or operated 3,380 self-storage facilities situated in 40 states in the United States.
Public Storage (NYSE:PSA), is positioned in a fundamentally strong industry with favorable demand dynamics and a declining new competitive supply. 23% of the REIT’s total portfolio is in the high-growth lease-up pool with $80 million of net operating income (NOI) upside beyond 2025. Recently, Public Storage and Ki Corporation have offered a premium to acquire Abacus Storage King, one of the largest self-storage owners in Australia and New Zealand which are countries with growing self-storage markets that tend to benefit from strong economic growth, outsized population inflows, and increasing adoption among consumers. On December 31, 2024, the REIT also owned a 35% common equity interest in Shurgard Self Storage Limited which owned 318 self-storage facilities in seven Western European nations.
