AvalonBay is a Virginia-based real estate company close to 80,000 apartment units in the New York metro area, the Washington D.C. metro area, Seattle and California. It is now the third largest apartment unit holder in America. The company was formed in 1998 as a result of the merger between Avalon Properties Inc. and Bay Apartment Communities Inc.
As of the end of the third quarter, 29 hedge funds tracked by Insider Monkey held stakes in Avalon, down from 34 funds a quarter earlier. Daniel Sundheim’s D1 Capital Partners owns 2.68 million shares of the company, worth 399.81 million.
Texas-based Howard Hughes started off as an oil drilling tool business founded by American business magnate Howard R. Hughes, Sr. The company later diversified into real estate development. It’s now one of the largest real estate companies in the country, owning hotels, golf courses, housing assets and entertainment venues. In the third quarter, the company posted a GAAP EPS of $2.51, beating the Wall Street’s estimates by $3.22.
Legendary investor and billionaire Bill Ackman’s Pershing Square is one of the biggest shareholders of Howard Hughes, with 10.92 million shares of the company, worth 628.88 million. Clark Street Value recently said Howard Hughes’ diversified model should help them compared to pure play real estate investment trusts. The investor believes that going forward the company will concentrate on residential land development compared to on office/multi-family new construction they were before the coronavirus pandemic. Clark Street Value added, “their big land banks are in Las Vegas and Houston, maybe not as hot as Austin and Miami but they’re both low cost-of-living and no state income tax markets that should have the wind at their backs.”
Prologis is a major real estate investment trust, with a focus on the consumption side of the global supply chain. As of the end of 2019, the company owns 3,840 buildings. In October 2020, the company upped its 2020 guidance for core FFO per share to $3.76-$3.78, above the consensus estimate of $3.72 and the previous range of $3.70-$3.75. The company’s CFO Thomas Olinger said that Prologis continues to improve amid lower credit losses. Prologis shares are up over 4.6% in the last 30 days.
As of the end of the third quarter, Jeffrey Furber’s AEW Capital Management owns 2.34 million shares of Prologis, having a total worth of 234.96 million.
California-based Equinix is a major real estate investment trust that primarily deals in Internet connection and data centers. The company has over 210 data centers in 25 countries on five continents. In 2019, the company signed 3 contracts with the U.S. agency Customs and Border Protection to provide IT support equipment worth $5 million.
As of the end of the third quarter, 42 hedge funds in Insider Monkey’s database held stakes in Equinix.
Boston-based American Tower Corp (NYSE: AMT) is a Fortune 500 company that deals in real estate services and wireless and broadcast communications infrastructure in several countries. The company owns over 170,000 communication sites all over the world.
Earlier in January, American Tower shares rallied after it was reported that the company signed an agreement with Telefónica (NYSE:TEF) acquire Telxius Towers.
American Tower tops the list of 10 best real estate stocks to buy now, as 62 hedge funds tracked by Insider Monkey held stakes in the company as of the end of the third quarter. Here is what RiverPark Advisors said about AMT in its 2020 Q3 investor letter:
American Tower: AMT shares were a top detractor on mixed second quarter results and management’s lowered full year revenue and EBITDA guidance (the company did, however, increase its AFFO/share guidance). The company guided to slower-than-expected U.S. property revenue growth due to a push-out of T-Mobile/Sprint capital spending. We believe U.S. activity should reaccelerate in the second half of this year, driven by T-Mobile/Sprint restarting capital spending, and into 2021, with Dish starting to ramp.
Although individual quarterly activity may remain lumpy, rapidly rising global mobile data usage in the range of 30%-40% per year continues to drive robust capital investment within the wireless industry. 5G deployment and major carriers’ needs for high-quality networks are likely to drive double-digit capital spending growth in 2021 (and similar amounts for the foreseeable future), irrespective of carrier consolidation. One key forecast is that by 2023, the average U.S. consumer mobile device is expected to consume nearly 50 gigabytes of data per month, nearly four times current levels. This tailwind, combined with world class execution, should drive consistent long-term revenue, cash flow and dividend per share growth at AMT for the foreseeable future. AMT’s tower portfolio continues to grow and its capital intensity continues to decline (the company has reduced the ratio of its capital expenditures to revenue by 1/3 over the past 10 years), leading to a significant increase in free cash flow (trailing-twelve-months free cash flow was $7.5 billion, compared with 2009’s $800 million).”
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