In this article, we will take a look at the most profitable real estate stocks right now.
The real estate sector is among the most prominent wealth-building asset classes. In an environment characterized by fluctuating demand, political challenges, evolving interest rates, and inflationary pressures, it is crucial to identify sectors less exposed to these risks.
On March 23, Forbes published “Housing Market Predictions For 2026: When Will Home Prices Drop?” highlighting that buyers have more options and purchasing power, thanks to lagging home price growth, slightly rising inventory, and lower mortgage rate assumptions. Despite these benefits, several potential buyers are still opting to wait.
The publication further states that housing experts are predicting gradual home price growth, with a slight drop in mortgage rates in 2026. Markets with increasing supply and robust local economies are expected to offer the most prospects for buyers early in 2027.
At its March 2026 meeting, the Federal Open Market Committee (FOMC) voted to keep rates unchanged at a target range of 3.5%-3.75%. According to Jerome Powell, the Federal Reserve Chair, the economy “has been expanding at a solid pace,” but tensions in the Middle East have shaped inflation trends. The article cites J.P. Morgan, forecasting home prices to remain flat this year, “with a slight improvement in demand likely offsetting any increased supply.”
In light of this, we have compiled a list of the most profitable real estate stocks right now.
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Our Methodology
For this article, we used the Stock Analysis screener to filter for real estate sector stocks with market capitalizations exceeding $2 billion that reported operating and net profit margins exceeding 20%. From this pool, we selected the top 14 stocks with the highest trailing twelve-month (TTM) net income that have recently reported noteworthy developments likely to impact investor sentiment. These are then ranked in ascending order by net income.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
14. W. P. Carey Inc. (NYSE:WPC)
On March 26, Citizens reaffirmed a Market Perform rating on W. P. Carey Inc. (NYSE:WPC), while raising its estimates. The firm highlighted that the company has remained active from a capital markets standpoint since the beginning of the year. This positions it well to sustain a rapid pace of deployment. According to Citizens, the company’s shares trade at a slight premium to the net-lease REIT sector, at 13 times 2026 projected adjusted funds from operations per share, implying a fair valuation.
Earlier on March 17, Raymond James upgraded W. P. Carey Inc. to Outperform from Market Perform and set a $76 price target. The firm noted that the company’s Q4 results were in line with expectations and issued 2026 adjusted funds from operations guidance modestly above consensus forecasts.
Raymond James believes W. P. Carey Inc. could surpass the investment target, stating that it appears conservative after a record 2025 when the company completed $2.1 billion in investments. From appealing investment spreads to an attractive cost of capital, the firm cited strong reasons for a bullish stance.
W. P. Carey Inc. is a Maryland-based net lease REIT and one of the largest, with a diversified portfolio of high-quality commercial real estate. Incorporated in 1973, the company has 1,682 net lease properties.
13. Regency Centers Corporation (NASDAQ:REG)
On March 24, Scotiabank raised its price target on Regency Centers Corporation (NASDAQ:REG) to $82 from $76 and reiterated its Sector Perform rating. This is a part of the price target readjustment in the U.S. Retail REITs space.
During the presentation at Citi’s Miami Global Property CEO Conference 2026, Regency Centers Corporation highlighted its strong operating momentum and strategic growth. Although risks like changing tenant demands and technological influences exist, the company remains focused on solid financial performance and development opportunities.
On the operational front, Regency Centers Corporation is expanding its development pipeline with top tenants, while emphasizing enterprise intelligence. The company anticipates this pipeline to substantially contribute to earnings in 2026 and onwards. The company aims to power data analytics and AI to enhance efficiency and decision-making. As stated by CEO Lisa Palmer,
“Taken together, our portfolio quality, the value creation platform, balance sheet strength, and experienced team position us to deliver durable growth through any and all cycles.”
Regency Centers Corporation is a Florida-based, fully integrated real estate company and self-administered and self-managed REIT. Founded in 1963, the company owns and operates income-producing retail real estate mainly located in suburban trade regions.
12. Kimco Realty Corporation (NYSE:KIM)
On March 24, Scotiabank lifted the price target on Kimco Realty Corporation (NYSE:KIM) to $24 from $22 and maintained a Sector Perform rating. In a research note, the analyst states that the firm is adjusting its price targets for U.S. Retail REITs, adding that management is intentionally building conservatism into its initial 2026 same-store NOI guidance. This will create a favorable backdrop for strong performance, the firm concluded.
Earlier on March 17, Argus reaffirmed a Buy rating and a price target of $27 on Kimco Realty Corporation. This optimism is based on projected strong growth from portfolio acquisitions and the asset pipeline. According to the firm, the REIT appears focused on last-mile retail, a segment with solid growth prospects relative to urban and suburban stores.
The firm further added that Kimco Realty Corporation has a steadily expanding base of anchor stores, including Home Depot and T.J. Maxx, which positions the company well for stability and lower risks from tenant bankruptcies.
Kimco Realty Corporation is a REIT that owns and operates high-quality shopping centers and mixed-use properties. The company’s portfolio is focused on the first-ring suburbs of leading metropolitan markets.
11. Omega Healthcare Investors, Inc. (NYSE:OHI)
On March 26, Wells Fargo elevated the price target on Omega Healthcare Investors, Inc. (NYSE:OHI) to $47 from $45 and maintained an Equal Weight rating. The firm continues to favor Senior Housing within the REIT group due to solid fundamentals that indicate same-store NOI growth levels in 2026 to match or outperform 2025 levels. That said, the firm also remains constructive on skilled nursing facilities but with a more cautious near-term outlook.
Back on March 5, Truist Securities lifted the price target on Omega Healthcare Investors, Inc. to $48 from $46 and reiterated a Hold rating. The firm also lowered its normalized funds from operations projections for 2026 and 2027 by 1% and 0.9%, respectively. Truist Securities pointed out that fundamentals strengthen the industry and company, while saying investors must consider competition from many fast-growing companies in the healthcare REIT space.
Nicholas Yulico, an analyst at Scotiabank, also raised the price target on Omega Healthcare Investors, Inc. to $48 from $45 and reaffirmed a Sector Perform rating on March 2. This is part of the price target adjustment for U.S. Real Estate & REITs following Q4 earnings.
Omega Healthcare Investors, Inc. operates as a REIT that provides financing and capital to the long-term healthcare industry. The company is focused on skilled nursing and assisted living facilities, particularly care homes.
10. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
On March 13, Richard Hightower from Barclays cut the price target on Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) to $52 from $53 and reiterated an Overweight rating. According to TheFly, the firm is readjusting models in the net lease real estate investment trust group.
On the other hand, Mizuho lifted the price target on Gaming and Leisure Properties, Inc. to $53 from $50 on March 11. According to TheFly, the firm revised its real estate investment trust targets to better reflect Q4 earnings.
As the analyst notes in a research note, war with Iran and the resulting increase in oil prices that is fueling inflationary pressures and slowing growth have blurred the sector picture. Mizuho believes this blend has historically weighed on REITs and “increases the need for selectivity.” The firm remains bullish on Gaming and Leisure Properties, Inc., keeping an Outperform rating.
A day earlier, Scotiabank analyst Greg McGinniss elevated the price target on Gaming and Leisure Properties, Inc. to $50 from $48 and maintained a Sector Perform rating. The analyst highlighted the addressable market for gaming real estate in the U.S., which it describes as a sizable investment opportunity, as well as cost-of-capital pressures.
Gaming and Leisure Properties, Inc., incorporated in 2013, is a Pennsylvania-based company that acquires and owns real estate leased to gaming operators.
9. Extra Space Storage Inc. (NYSE:EXR)
On March 26, Michael Lewis, an analyst at Truist, trimmed the price target on Extra Space Storage Inc. (NYSE:EXR) from $145 to $140 and maintained a Hold rating. This is part of the firm’s broader readjustment of models to incorporate Q4 results, while it updates revenue growth and expense assumptions, according to TheFly.
Several other analysts have recently revised their outlook for Extra Space Storage Inc.. On March 23, JPMorgan lifted the price target on the company to $144 from $142 and reiterated a Neutral rating. The firm revised models in the storage real estate investment trust space. Similarly, Ravi Vaidya from Mizuho elevated the price target on the company to $150, up from $143, on March 17. The firm has an Outperform rating on the stock.
Overall, Extra Space Storage Inc. has a Buy rating from 38% of analysts covering the stock, with 52% neutral and the remaining 10% bearish. The consensus 1-year median price target of $150 implies an upside potential of 16.32%.
Extra Space Storage Inc., headquartered in Utah, is a self-administered and self-managed REIT offering a range of conveniently located and secure storage units. The company owned and operated 4,238 self-storage stores as of September 30, 2025.
8. AvalonBay Communities, Inc. (NYSE:AVB)
On March 26, Morgan Stanley downgraded AvalonBay Communities, Inc. (NYSE:AVB) to Equalweight from Overweight and cut the price target from $208 to $203. Adam Kramer, an analyst at the firm, lowered the company’s forecasts more than any other competitor following Q4 earnings. The midpoint of guidance for this year signals nearly flat core funds from operations per share relative to last year.
Morgan Stanley now projects earnings in line with the consensus estimates for 2026 and 2027. Despite this, the firm’s 2028 forecast remains above consensus due to lower projected interest expense. Additionally, the expected 2028 earnings growth of 7.9% would lead peers. Kramer indicated that earnings growth is set to improve in 2027.
Earlier on March 6, TheFly reported that Richard Hightower from Barclays reduced the price target on AvalonBay Communities, Inc. to $202 from $217 and maintained an Overweight rating. This follows the firm’s lower estimates in the residential real estate investment trust sector.
AvalonBay Communities, Inc. is a Maryland-based equity REIT that develops and manages communities in top metropolitan areas. Founded in 1978, the company owned or held an ownership interest in 320 communities as of December 31, 2025.
7. SBA Communications Corporation (NASDAQ:SBAC)
On March 10, SBA Communications Corporation (NASDAQ:SBAC) participated in the 34th Annual Media, Internet & Telecom Conference, featuring the company’s President and CEO, Brendan Cavanagh. During the conference, the company’s strong performance in 2025 and strategic focus for 2026 were discussed.
On the operational end, a 10-year agreement with Verizon is projected to accelerate organic growth over the next decade. The purchase of more than 7,000 towers in Central America will position SBA Communications Corporation as the largest tower operator in the region with over 10,000 sites.
Looking ahead, US organic growth is expected to return to 4-5% following mitigated churn issues, with fixed escalators and new leasing activity contributing 3% and 2-3%, respectively. Additionally, planned spectrum auctions are anticipated to positively impact SBA Communications Corporation.
Overall, SBA Communications Corporation has mixed analyst sentiment, with half of the analysts bullish and the other half neutral. With a 1-year median price target of $220, the stock has an upside potential of 31.69%.
SBA Communications Corporation is among the largest independent companies that own and operate wireless communications infrastructure. The company has a portfolio of over 46,000 communications sites across America and Africa.
6. Equity Residential (NYSE:EQR)
On March 26, Morgan Stanley upgraded Equity Residential (NYSE:EQR) from Equalweight to Overweight and lifted the price target to $74, up from $72. According to the firm, the company’s markets have shown greater resilience from a supply standpoint. Morgan Stanley anticipates an outperformance of urban assets relative to suburban ones, thus improving key performance indicators faster than coastal peers.
The company’s increased West Coast exposure compared to competitor AvalonBay Communities positions it well for sustained recovery in those markets, despite greater Los Angeles exposure limiting some upside, Morgan Stanley noted. Regarding its previous worry about dilution and negative market perception from continued Sun Belt acquisitions, Morgan Stanley indicated that cost-of-capital restrictions have likely put those acquisitions on hold.
Back on March 12, Argus trimmed the price target on Equity Residential to $70 from $74 and maintained a Buy rating. Marie Ferguson, an analyst at the firm, attributed the price adjustment to the broader market pullback. For the first half of this year, management expects proceeds from asset sales of approximately $200 million to be used in share repurchases.
Equity Residential, incorporated in 1993, is a Maryland-based company that owns and operates 312 rental properties comprising 85,190 apartment units in dynamic metro areas.
5. Public Storage (NYSE:PSA)
As reported by TheFly on March 23, Scotiabank lifted the price target on Public Storage (NYSE:PSA) to $321, up from $319, and reiterated an Outperform rating. This optimism comes after the earlier announcement of the $10.5 billion all-stock acquisition of National Storage (NSA) Affiliates.
Back on March 16, Truist Securities maintained a Buy rating on Public Storage with a price target of $317 following the NSA acquisition. The firm believes that this agreement is advantageous to the company’s shareholders, saying that the joint venture structure used in the deal is a thoughtful solution to an otherwise complicating factor in the acquisition.
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On the same day, Mizuho reiterated a Neutral rating and a price target of $285 on Public Storage, highlighting that the going-in yield relatively matches the private-market cap rates. The firm believes this transaction marks the beginning of the company’s new era, driven by the PS4 initiative and WELL collaboration. Mizuho noted that meaningful net operating income upside is required for the company to accelerate its going-in yield by nearly 100 basis points.
Public Storage is a Maryland-based REIT that engages in the acquisition and development of self-storage facilities. The company had 3,533 self-storage facilities in 40 states as of December 31, 2025.
4. American Tower Corporation (NYSE:AMT)
On March 9, American Tower Corporation (NYSE:AMT) participated in the 34th Annual Media, Internet & Telecom Conference. Featuring CFO Rod Smith, the discussion revolved around the company’s strong 2025 performance and strategic 2026 focus. Although challenges in Latin America persist, the leadership appeared positive on the company’s growth prospects, particularly following the exclusion of Dish Network from its projections.
The company’s future outlook remains strong, thanks to mobile data growth and potential AI applications. Looking ahead, American Tower Corporation targets strategic developments in Europe, while also combatting Latin America headwinds. What strengthens the case for the company is its cost-saving initiative, which is expected to increase margins by 200-300 basis points over a period of five years.
Previously, on March 5, Bernstein SocGen Group started coverage on American Tower Corporation with a Market Perform rating and a price target of $205. The firm noted the company’s 149,000-tower portfolio in developed markets, stating that it generates mid-single-digit organic revenue growth, consistent EBITDA margins, and AFFO growth.
American Tower Corporation, founded in 1995, is a Delaware-based leading global real estate investment trust that owns and operates multitenant communications real estate.
3. VICI Properties Inc. (NYSE:VICI)
On March 24, Citizens maintained a Market Outperform rating on VICI Properties Inc. (NYSE:VICI) with a price target of $35. This reaffirmation comes after the company’s announcement of higher involvement in the One Beverly Hills mixed-use development project. What’s even more interesting is the company’s stronger relationship with partners for increased experiential investments.
According to Citizens, this participation exceeds earlier expectations, with management previously signaling the next round of project financing, which is already underway. That said, the firm believes the company’s capital is attractively priced, positioning it well to benefit from development partnerships with companies again and again.
Recently, Mizuho adopted a neutral stance on VICI Properties Inc., as it views the stock as having limited relative upside potential moving forward, given its current price. While acknowledging the company’s solid track record and respected management team, the firm downgraded the company’s stock from Outperform to Neutral and set a $30 price target on March 11.
VICI Properties Inc., incorporated in 2016, is a Maryland-based experiential real estate investment trust that owns portfolios of top gaming, hospitality, wellness, entertainment, and leisure destinations.
2. Prologis, Inc. (NYSE:PLD)
On March 17, John Kim from BMO Capital boosted the price target on Prologis, Inc. (NYSE:PLD) to $137 from $123 and reiterated a Market Perform rating. According to TheFly, the firm appears modestly bullish on Industrial REITs, with 2026 REIT guidance indicating consistent occupancy and Cash same-store NOI (SSNOI).
Back on March 9, BofA Securities lifted the price target on Prologis, Inc. from $147 to $153 and reaffirmed a Buy rating. The firm’s analyst, Camille Bonnel, highlighted the company’s position as the best-performing Industrial REIT since its Q4 results, while noting its weak performance a week earlier due to macro challenges.
BofA considers the recent pullback a buying opportunity, saying that the market is in the initial stages of the next cycle. The firm adds that vacancy levels are at or near their peak, with market rents beginning to rise, alongside incremental data center growth for the company. Thanks to the data center opportunity, the firm has raised its estimates by 1% starting in 2028.
Prologis, Inc. is a Maryland-based self-administered and self-managed REIT engaged in investments in real estate. Founded in 1983, the company also owns a substantial ownership interest in the co-investment ventures.
1. Simon Property Group, Inc. (NYSE:SPG)
On March 24, Scotiabank lifted the price target on Simon Property Group, Inc. (NYSE:SPG) to $192, up from $189, and maintained a Sector Perform rating. As reported by TheFly, the firm is revising its price targets for the U.S. Retail REITs. The firm says that the management seems to be intentionally building a layer of conservatism into its initial same-store NOI guidance for the year, which it believes will build a positive backdrop for strong performance.
A day earlier, Barclays reiterated an Equalweight rating on Simon Property Group, Inc. with a price target of $193. This reaffirmation comes after the passing of the company’s chairman and chief executive, David Simon, on March 22. Following his death, Eli Simon was appointed the CEO and President by the board.
According to Richard Hightower, an analyst at Barclays, investors remain focused on the company’s stable strategic direction and on their confidence in the team’s ability to maintain a disciplined approach to capital allocation over the long run.
Simon Property Group, Inc., founded in 1993, is an Indianapolis-based self-administered and self-managed REIT that owns retail real estate properties mainly comprising regional malls, premium outlets, and mills.
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