In this article, we discuss 5 best real estate stocks to buy in 2022 according to Eduardo Abush’s Waterfront Capital Partners. If you want to read our detailed analysis of Abush’s history, investment philosophy, and hedge fund performance, go directly to 10 Best Real Estate Stocks to Buy in 2022 According to Eduardo Abush’s Waterfront Capital Partners.
5. Apartment Income REIT Corp. (NYSE:AIRC)
Waterfront Capital Partners’ Stake Value: $85,238,000
Percentage of Waterfront Capital Partners’ 13F Portfolio: 5.31%
Number of Hedge Fund Holders: 26
Apartment Income REIT Corp. (NYSE:AIRC) is a real estate investment trust that offers a simple business strategy and a diverse portfolio of stable apartment complexes to participate in multi-family real estate. With combined stakes worth $411.50 million, 26 hedge funds tracked by Insider Monkey held positions in Apartment Income REIT Corp. (NYSE:AIRC) in Q1 2022. In the previous quarter, 18 hedge funds held positions in the company.
Waterfront Capital Partners started investing in Apartment Income REIT Corp. (NYSE:AIRC) during the second quarter of 2021, with a stake worth roughly $9.33 million. In Q1 2022, the hedge fund held shares worth $85.24 million, after increasing its position in the company by 12%. Apartment Income REIT Corp. (NYSE:AIRC) constituted 5.31% of the hedge fund’s 13F portfolio.
On May 25, Truist analyst Michael Lewis cut his price objective on Apartment Income REIT Corp. (NYSE:AIRC) from $58 to $49 while maintaining a Hold recommendation. Over the next several years, the analyst expects that the REIT’s profits would rise at a slower pace than its peers.
In the first quarter earnings reported on May 2 by Apartment Income REIT Corp. (NYSE:AIRC), the Funds from Operations (FFO) totaled $0.57 per share, in line with the estimates. However, the $181.5 million revenue was below the estimated revenue by $4.09 million.
4. Sun Communities, Inc. (NYSE:SUI)
Waterfront Capital Partners’ Stake Value: $85,956,000
Percentage of Waterfront Capital Partners’ 13F Portfolio: 5.35%
Number of Hedge Fund Holders: 36
Sun Communities, Inc. (NYSE:SUI) specializes in property management. In Q1 2022, Waterfront Capital Partners increased its stake in Sun Communities, Inc. (NYSE:SUI) by 20% to $85.96 million, representing 5.35% of its 13F portfolio.
At the end of the first quarter of 2022, 36 hedge funds tracked by Insider Monkey held stakes worth over $798.82 million in Sun Communities, Inc. (NYSE:SUI). In comparison, 37 hedge funds held positions in the company in the preceding quarter. Among these hedge funds, Echo Street Capital Management was Sun Communities, Inc. (NYSE:SUI)’s largest shareholder in Q1, owning shares worth over $221.73 million.
Sun Communities, Inc. (NYSE:SUI), which owns prefabricated housing communities, RV resorts, marinas, and holiday parks, has purchased approximately $6 billion in assets since 2019, according to Truist analyst Anthony Hau, expanding the company’s entire potential market and allowing for outsized growth at a reasonable price. Therefore, on May 10, the analyst reiterated a Buy rating on Sun Communities, Inc. (NYSE:SUI) and a price target of $185.
ClearBridge Investments, an investment management firm, in its Q3 2021 investor letter, mentioned Sun Communities, Inc. (NYSE:SUI) and discussed its stance on the firm. Here is what the fund said:
“Our commitment to constantly improve the risk/reward of the portfolio kept us active during the third quarter in repositioning to capitalize on opportunities we have previously sourced and derisked. We initiated a position in Sun Communities, a U.S. real estate investment trust (REIT) that specializes in investing in manufactured housing communities, recreational vehicle (RV) resorts and marinas. As the economy works through housing supply constraints, Sun’s manufactured housing communities are increasingly appealing to younger, lower income populations in prime growth locations through the Sun Belt. Additionally, Sun’s expanded RV park offerings have seen healthy demand from increasing numbers of retiring baby boomers purchasing RVs as well as greater numbers of road trips in the wake of COVID-19.”
3. Federal Realty Investment Trust (NYSE:FRT)
Waterfront Capital Partners’ Stake Value: $86,168,000
Percentage of Waterfront Capital Partners’ 13F Portfolio: 5.37%
Number of Hedge Fund Holders: 23
Federal Realty Investment Trust (NYSE:FRT) is a real estate investment trust that owns, operates, and redevelops retail and mixed-use assets. On May 5, Federal Realty Investment Trust (NYSE:FRT) issued a quarterly dividend of $1.07 per share, in line with the previous.
RJ Milligan, a Raymond James analyst, upgraded Federal Realty Investment Trust (NYSE:FRT) from Market Perform to Strong Buy on May 12 with a $140 price target. Federal Realty Investment Trust (NYSE:FRT) is one of the newest acquisitions of Waterfront Capital Partners in Q1 2022. The hedge fund bought shares worth over $86.17 million in Federal Realty Investment Trust (NYSE:FRT), representing 5.37% of its 13F portfolio.
Insider Monkey’s data showed that the hedge fund interest spiked in Federal Realty Investment Trust (NYSE:FRT), as 23 hedge funds held stakes worth $306.37 million in the company in Q1, up from 19 funds in the previous quarter.
2. Camden Property Trust (NYSE:CPT)
Waterfront Capital Partners’ Stake Value: $88,003,000
Percentage of Waterfront Capital Partners’ 13F Portfolio: 5.48%
Number of Hedge Fund Holders: 30
Camden Property Trust (NYSE:CPT) is a REIT that specializes in multi-family apartment community ownership, management, development, repositioning, redevelopment, acquisition, and construction. Waterfront Capital Partners upped its position in Camden Property Trust (NYSE:CPT) by 42%. The hedge fund’s total holdings were worth $88 million as of Q1 2022.
Higher interest rates, broader economic uncertainty, and resulting multiple contraction, as well as the fact that the return to historical stock valuation has happened faster and sooner than expected, prompted Truist analyst Michael Lewis to lower his price target on Camden Property from $186 to $160 on May 25. However, he maintained a Buy rating on the stock.
The number of hedge funds tracked by Insider Monkey holding stakes in Camden Property Trust (NYSE:CPT) grew to 30 in Q1 from 26 in the previous quarter. These stakes hold a consolidated value of over $517.96 million, showing considerable growth from $349.19 million in Q4.
1. STAG Industrial, Inc. (NYSE:STAG)
Waterfront Capital Partners’ Stake Value: $92,553,000
Percentage of Waterfront Capital Partners’ 13F Portfolio: 5.76%
Number of Hedge Fund Holders: 21
STAG Industrial, Inc. (NYSE:STAG) is a real estate investment trust that specializes in acquiring, owning, and operating single-tenant industrial buildings across the United States. In Q1 2022, STAG Industrial, Inc. (NYSE:STAG) accounted for 5.76% of Waterfront Capital Partners’ portfolio, and the hedge fund increased its position in the company by 28% during the quarter.
On May 3, STAG Industrial, Inc. (NYSE:STAG) posted earnings for the first quarter of 2022, reporting Funds From Operations (FFO) of $0.53 per share, beating market estimates by $0.01. In addition, revenue for the quarter was $159.21 million, up 18.8% from the previous year’s first-quarter revenue.
Zimmer Partners held a stake worth $169.54 million in STAG Industrial, Inc. (NYSE:STAG), becoming its largest shareholder in Q1. Along with this, 21 hedge funds tracked by Insider Monkey reported owning stakes in the company in Q1, down from 22 in the previous quarter. The aggregate value of these stakes is over $528.63 million.
You can also take a peek at 9 Stocks to Buy in 2022 According to Mark Massey’s AltaRock Partners and Top 10 Stock Picks of Eli Cohen’s Crescent Park Management.
