5 Cheap REITs with Huge Upside

2. AFC Gamma, Inc. (NASDAQ:AFCG)

Number of Hedge Fund Holders: 4

Average Upside Potential Based on Analyst Ratings: 70.69% 

Average Analyst Price Target: $20.81

AFC Gamma, Inc. (NASDAQ:AFCG) is involved in the creation, arrangement, approval, and funding of loans and debt securities for established businesses in the cannabis industry operating in states where medical and/or adult use of cannabis is legal. It is one of the top cheap REIT stocks to invest in. On March 29, AFC Gamma, Inc. (NASDAQ:AFCG) declared a $0.56 per share quarterly dividend, in line with previous. The dividend is payable on April 14, to shareholders of record on March 31. 

On March 8, TD Cowen maintained an Outperform rating on AFC Gamma, Inc. (NASDAQ:AFCG) but decreased the target price on the stock from $22 to $21. The analyst noted that due to a slower environment for lending in the cannabis industry, the company is now focusing on investing its capital into commercial real estate loans, with the goal of achieving a 50-50 split between CRE and cannabis by the end of the year. This pivot is seen as a positive move, as the credit quality of CRE loans is higher compared to those in the cannabis industry, the analyst wrote in a research note. 

According to Insider Monkey’s fourth quarter database, 4 hedge funds were bullish on AFC Gamma, Inc. (NASDAQ:AFCG), compared to 5 funds in the prior quarter. D E Shaw is the biggest position holder in the company, with 108,183 shares worth $1.70 million.