5 Best REIT Stocks To Buy Right Now

In this article, we discuss 5 best REIT stocks to buy now. If you want to read our detailed discussion on the real estate industry, head over to 12 Best REIT Stocks To Buy Right Now.

5. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 33

VICI Properties Inc. (NYSE:VICI) is an experiential real estate investment trust involved in owning premier gaming, hospitality, and entertainment destinations. Their portfolio includes Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas, all situated along the Las Vegas Strip. It is one of the best REIT stocks. On October 25, VICI Properties Inc. (NYSE:VICI) reported a Q3 FFO of $0.54 and a revenue of $904.32 million, beating market consensus by $0.54 and $2.32 million, respectively.

According to Insider Monkey’s third quarter database, 33 hedge funds were bullish on VICI Properties Inc. (NYSE:VICI), down from 40 funds in the previous quarter. Ken Griffin’s Citadel Investment Group is the largest shareholder of the company, with a position comprising 10 million shares worth $292 million.

Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:

“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”

4. Equinix, Inc. (NASDAQ:EQIX)

Number of Hedge Fund Holders: 42

Next on our list of the best REIT stocks is Equinix, Inc. (NASDAQ:EQIX). It is a global digital infrastructure company that serves as a trusted platform where digital pioneers connect and integrate essential infrastructure quickly. Equinix, Inc. (NASDAQ:EQIX) empowers businesses to access key locations, partners, and opportunities, enabling scalable growth, rapid deployment of digital services, superior customer experiences, and increased value. 

On October 26, Equinix, Inc. (NASDAQ:EQIX) declared a $4.26 per share quarterly dividend, an increase of 24.9% from the previous dividend of $3.41. It is to be paid on December 13 to shareholders of record as of November 15.

According to Insider Monkey’s third quarter database, 42 hedge funds were bullish on Equinix, Inc. (NASDAQ:EQIX), compared to 44 in the prior quarter. Philippe Laffont’s Coatue Management held the top position in the company, with 629,487 shares valued at $457.17 million.

RiverPark Advisors made the following comment about Equinix, Inc. (NASDAQ:EQIX) in its Q3 2023 investor letter:

“Equinix, Inc. (NASDAQ:EQIX): EQIX, a position we have held before, is a REIT that provides a global web of network-neutral, multi-tenant data centers that allow enterprises to bring together and interconnect the infrastructure required to compete in the digital economy. The company operates 248 data centers in 32 countries and 72 markets. These data centers sit on top of the cable infrastructure and house the internet service provider equipment that connects and powers the internet.

The company charges tenants rent for colocation space, plus metered power and interconnects utilized. EQIX’s revenue growth is driven by price increases, greater cross-connect utilization, and new data center development. We believe the company can compound revenue at more than 10% a year over the next five years, and more than double Funds From Operations (FFO). We re-initiated a small position in August.”

3. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 45

Crown Castle Inc. (NYSE:CCI) possesses, manages, and leases over 40,000 cell towers and roughly 85,000 miles of fiber optic infrastructure, supporting small cells and fiber solutions across major U.S. regions. This network of communication infrastructure links cities and neighborhoods, providing crucial data, technology, and wireless connectivity. On October 18, Crown Castle Inc. (NYSE:CCI) declared a $1.565 per share quarterly dividend, in-line with previous. The dividend is to be paid on December 29 to shareholders of record as of December 15.

According to Insider Monkey’s third quarter database, 45 hedge funds were bullish on Crown Castle Inc. (NYSE:CCI). This number increased from the last quarter when 41 funds had invested in the stock. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with over 3.9 million shares worth $360.26 million.

Carillon Eagle Growth & Income Fund made the following comment about Crown Castle Inc. (NYSE:CCI) in its Q2 2023 investor letter:

“Crown Castle Inc. (NYSE:CCI) detracted from performance as telecom companies have temporarily slowed their deployment of additional cellular spectrum. This slowdown could impair future growth for cell tower companies.”

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 48

Prologis, Inc. (NYSE:PLD) stands as a global leader in logistics real estate, focusing on markets known for their growth potential and limited access. It is one of the best REIT stocks. On October 17, Prologis, Inc. (NYSE:PLD) announced a Q3 FFO of $1.30 and a revenue of $1.92 billion, outperforming Wall Street estimates by $0.05 and $180 million, respectively.

According to Insider Monkey’s third quarter database, 48 hedge funds were bullish on Prologis, Inc. (NYSE:PLD), compared to 50 funds in the preceding quarter. Jeffrey Furber’s AEW Capital Management is the largest shareholder of the company, with 2.45 million shares worth $274.38 million.

Here is what Baron Real Estate Income Fund has to say about Prologis, Inc. (NYSE:PLD) in its Q2 2023 investor letter:

“The shares of Prologis, Inc., the world’s largest industrial REIT, declined in the third quarter of 2023 along with most REITs. We are big fans of CEO Hamid Moghadam and Prologis’ management team, and we remain optimistic about the company’s long-term growth outlook.

Prologis owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an A credit rating.

We continue to believe the appreciation potential for Prologis shares remains compelling given that the company’s rents on its in-place leases are more than 65% below current market rents, thus providing a strong runway for growth in the next three to five years.”

1. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 60

American Tower Corporation (NYSE:AMT), a major global real estate investment trust, stands out as a prominent owner, operator, and builder of shared communications infrastructure. The company holds a portfolio comprising nearly 225,000 communication sites, along with a well-connected network of data center facilities across the United States, placing it among the best REIT stocks to buy. 

On November 10, American Tower Corporation (NYSE:AMT) announced that its Africa operations, ATC Africa, and MTN Nigeria have made a new agreement to improve wireless connectivity throughout Nigeria. This agreement involves ATC Africa assisting MTN Nigeria in acquiring new leases over several years, starting from the latter half of 2024.

According to Insider Monkey’s third quarter database, 60 hedge funds were bullish on American Tower Corporation (NYSE:AMT), same as the preceding quarter. Charles Akre’s Akre Capital Management held the top position in the company, with 6.77 million shares worth $1.11 billion.

Here is what Andvari Associates has to say about American Tower Corporation (NYSE:AMT) in its Q3 2023 investor letter:

“After good results for the first half of the year, Andvari’s performance suffered at the end of the third quarter for two reasons. First, renewed fears of interest rates remaining higher for longer impacted multiple holdings that are most sensitive to rates. These include companies like American Tower Corporation (NYSE:AMT) and Digital Bridge. American Tower is a REIT (real estate investment trust) that owns and leases antennae space on cell towers while Digital Bridge is an investment manager that invests in the digital infrastructure space. Both companies require debt in their operations and the prospect of higher interest rates continues to impact share prices in the short term.

As an aside, American Tower is not a new holding of Andvari. We’ve owned it in the past. Although we may have started putting American Tower back into client portfolios a bit early, we believe shares are extremely attractive. First, the shares trade at a current 3.8% dividend yield at the end of October. This yield is near the highest in American’s entire history as a public company. Second, the company will likely grow dividends per share by 9% annually over the long term. As a nice kicker, Andvari believes American Tower will sell its assets in India before year’s end, which will free up capital it can use to pay off debt and repurchase shares.”

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