In this article, we discuss the 5 best real estate stocks for 2021. If you want to read our detailed analysis of the real estate stocks, go directly to the 15 Best Real Estate Stocks for 2021.
5. Jones Lang LaSalle Incorporated (NYSE: JLL)
Number of Hedge Fund Holders: 31
Jones Lang LaSalle Incorporated (NYSE: JLL) is an American commercial real estate services company, which also offers services in investment management. The company was founded in London, U.K. in 1999 and has offices in over 80 countries.
In Q2 2021, Jones Lang LaSalle Incorporated (NYSE: JLL) reported an EPS of $4.20, beating the estimates by $2.47. The company generated revenue of $4.5 billion, up from $3.6 billion during the prior-year quarter. Real estate services accounted for $4.3 billion of the gross revenue. In July, Jones Lang LaSalle Incorporated (NYSE: JLL) returned $100 million in shares buyback. Wolfe Research initiated its coverage on Jones Lang LaSalle Incorporated (NYSE: JLL) in June with an ‘Outperform’ rating and a $332 price target. The stock’s 12-month returns are up by 147.2%.
As of Q2 2021, hedge funds are also taking interest in Jones Lang LaSalle Incorporated (NYSE: JLL), as 30 funds have stakes in the company, compared with 20 in the previous quarter. The total value of these stakes is over $1.5 billion.
4. CBRE Group, Inc. (NYSE: CBRE)
Number of Hedge Fund Holders: 37
CBRE Group, Inc. (NYSE: CBRE) is an American commercial real estate company that also provides services in investment management. It is the largest commercial property developer in the U.S. and has operations in over 100 countries.
In Q2 2021, CBRE Group, Inc. (NYSE: CBRE) reported an EPS of $1.36 and revenue of $6.4 billion, up from $5.3 billion during the same period last year. The company’s Global Workplace Solutions segment accounted for $4.08 billion of the gross revenue. CBRE Group, Inc. (NYSE: CBRE) reported a 33% growth in leasing revenue when compared with the prior-year quarter. In June, Wolfe Research initiated its coverage on CBRE Group, Inc. (NYSE: CBRE) with an ‘Outperform’ rating and a $112 price target. The stock has soared by 106.3% in the past year.
Hedge funds are also taking interest in CBRE Group, Inc. (NYSE: CBRE) as the number of hedge funds having stakes in CBRE Group, Inc. (NYSE: CBRE) as of Q2 2021 rose to 37, compared with 30 in the previous quarter. The total value of these stakes is over $2.6 billion.
Third Avenue Management released its first-quarter 2021 investor letter and mentioned CBRE Group, Inc. (NYSE: CBRE) in it. Here is what the investment management firm has to say:
“CBRE Group, Inc. (the largest commercial real estate services firm globally with leading brokerage, facilities management, consulting, and asset management offerings) revealing that it had agreed to acquire a 35% stake in Industrious—one of the largest networks of coworking and private office spaces in North America. Alongside the investment, CBRE’s management team (headed by CEO Bob Sulentic) has created a unique structure whereby it will also contribute its existing shared workspace portfolio (i.e., Hana) thus positioning the combined platform to take significant market share in the rapidly expanding “flexible workplace” market given CBRE’s reach (the company operates in more than 100 countries and counts 90% of Fortune 100 companies as clients) and a coworking model that could be viewed more favorably by property owners (e.g., revenue share agreements in lieu of fixed-cost leases through special purpose vehicles).”
3. Simon Property Group, Inc. (NYSE: SPG)
Number of Hedge Fund Holders: 37
Simon Property Group, Inc. (NYSE: SPG) is an American real estate investment trust that invests in commercial and retail properties, such as shopping malls, community centers, and lifestyle centers. Simon Property Group, Inc. (NYSE: SPG) is the largest owner of shopping malls in the U.S. and has headquarters in Indiana.
In Q2 2021, Simon Property Group, Inc. (NYSE: SPG) reported an EPS of $3.24, beating the market consensus by $0.86. The company generated revenue of $1.2 billion, up from $1.06 billion during the same period last year. As of June 30, the occupancy rate stood at 91.8%. In the second quarter, Simon Property Group, Inc. (NYSE: SPG) raised its dividend by 7.1% at $1.50 per share. Recently, BofA lifted its price target on Simon Property Group, Inc. (NYSE: SPG) to $150, implying a 16% upside potential, with a ‘Buy’ rating on the shares. In the past year, Simon Property Group, Inc. (NYSE: SPG) has delivered a 99.7% return to shareholders.
As of Q2 2021, 37 hedge funds tracked by Insider Monkey have positions in Simon Property Group, Inc. (NYSE: SPG), up from 31 in the previous quarter.
2. Prologis, Inc. (NYSE: PLD)
Number of Hedge Fund Holders: 40
Prologis, Inc. (NYSE: PLD) is a real estate investment trust that invests in logistic facilities. The company has over 5,500 customers in over 19 countries.
In Q2 2021, Prologis, Inc. (NYSE: PLD) reported an FFO of $1.01, beating the market consensus by $0.02. The company recorded revenue of $1.02 billion, up 8% from the prior-year quarter. For FY21, Prologis, Inc. (NYSE: PLD) lifted its guidance due to strong quarter and record rent growth. The company expects a core FFO of between $4.04-$4.08 per share, versus an estimate of $4.01. Recently, Deutsche Bank raised its price target on Prologis, Inc. (NYSE: PLD) to $150, with a ‘Buy’ rating on the shares. The bank expects growth in the company’s same-store rates and FFOs through 2021-2022. Prologis, Inc. (NYSE: PLD) gained 38.6% in the past year.
As of Q2 2021, 40 hedge funds tracked by Insider Monkey have positions in Prologis, Inc. (NYSE: PLD), worth $563.7 million. The number is up from 39 hedge fund holders in the previous quarter.
Third Avenue Management released its first-quarter 2021 investor letter and mentioned Prologis, Inc. (NYSE: PLD) in it. Here is what the firm has to say:
“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
1. American Tower Corporation (NYSE: AMT)
Number of Hedge Fund Holders: 55
American Tower Corporation (NYSE: AMT) is a real estate investment trust that operates wireless and broadcast communications infrastructure globally. It is one of the best real estate stocks for those interested in 5G technology investments. American Tower Corporation (NYSE: AMT) has over 214,000 communication sites and is headquartered in Boston, U.S.
In Q2 2021, American Tower Corporation (NYSE: AMT) reported an FFO of $2.42, beating the market consensus by $0.12. The consolidated revenue of $2.3 billion presented a 20.4% year-over-year increase. American Tower Corporation (NYSE: AMT) also reported a 17.9% year-over-year growth in property revenue, which accounted for $2.23 billion of the gross revenue. Recently, Argus observed the importance of the company’s wireless towers for media and telecom tenants due to the growth in 5G technology. The firm lifted its price target on American Tower Corporation (NYSE: AMT) to $300, with a ‘Buy’ rating on the shares. Since the beginning of the year, American Tower Corporation (NYSE: AMT) has delivered a 31.6% return, while its 12-month returns are up by 16.7%.
Of the 873 hedge funds tracked by Insider Monkey, 55 funds have positions in American Tower Corporation (NYSE: AMT) as of Q2 2021, worth over $4.72 billion.
Richie Capital Group LLC published its Q4 2020 investor letter and mentioned American Tower Corporation (NYSE: AMT) in it. Here is what the firm has to say:
“American Tower (AMT – Down 9.15%) – The largest operator of wireless towers has faced challenges in the form of customer churn at one of their largest customers: Sprint/T-Mobile. However, the company remains well positioned as carriers domestically and internationally transition to 5G which will require a densification of their networks.”
You can also take a look at Top 10 Real Estate Billionaires In The World and 10 Real Estate Dividend Stocks to Buy in August 2021
