In this piece, we will take a look at the five most undervalued REIT stocks to buy according to hedge funds. If you want to take a deeper look at what’s happening in the real estate sector this year, then read 11 Most Undervalued REIT Stocks To Buy According To Hedge Funds.
5. Hersha Hospitality Trust (NYSE:HT)
Number of Hedge Fund Investors In Q2 2023: 17
Latest P/E Ratio: 2.07
Hersha Hospitality Trust (NYSE:HT) is a hospitality REIT that manages more than two dozen hotels all over the U.S. However, the firm is currently considering to sell some of its hotels. It has beaten analyst EPS estimates for all of its four latest quarters, and the shares are rated Buy on average.
During Q2 2023, 17 out of the 910 hedge funds part of Insider Monkey’s database had invested in Hersha Hospitality Trust (NYSE:HT). Out of these, the firm’s largest shareholder is Israel Englander’s Millennium Management since it owns 1.4 million shares that are worth $8.9 million.
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Follow Hersha Hospitality Trust (NYSE:HT)
4. Blackstone Mortgage Trust, Inc. (NYSE:BXMT)
Number of Hedge Fund Investors In Q2 2023: 18
Latest P/E Ratio: 14.17
Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate finance firm that provides loans for commercial properties. It is a subsidiary of Blackstone, one of the largest real estate firms in the world and one that has run into debt troubles as of late.
By the end of 2023’s June quarter, 18 hedge funds out of the 910 surveyed by Insider Monkey had held a stake in the company. Ken Griffin’s Citadel Investment Group is Blackstone Mortgage Trust, Inc. (NYSE:BXMT)’s biggest investor since it holds a stake worth $39 million.
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3. Starwood Property Trust, Inc. (NYSE:STWD)
Number of Hedge Fund Investors In Q2 2023: 19
Latest P/E Ratio: 11.2
Starwood Property Trust, Inc. (NYSE:STWD) is another real estate financing firm. It emerged in the aftermath of the real estate crisis of the Great Recession to increase liquidity in the market. It is one of the few stocks on our list that sees most of its shares owned by institutional investors, which provides the stock some stability but also leaves it vulnerable to large downswings.
Insider Monkey dug through 910 hedge fund portfolios and discovered 19 Starwood Property Trust, Inc. (NYSE:STWD) investors. Among these, the firm’s largest shareholder is Amy Minella’s Cardinal Capital through a $83 million investment that comes courtesy of 4.2 million shares.
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2. Public Storage (NYSE:PSA)
Number of Hedge Fund Investors In Q2 2023: 27
Latest P/E Ratio: 11.92
Public Storage (NYSE:PSA) owns and operates self storage properties in more than three dozen U.S. states. The firm expanded its property portfolio in July, as it announced that it would buy another storage company for a $1 billion price tag.
By the end of this year’s second quarter, 27 out of the 910 hedge funds polled by Insider Monkey had held a stake in the company. Public Storage (NYSE:PSA)’s biggest hedge fund stakeholder is Jeffrey Furber’s AEW Capital Management since it holds a $108 million stake.
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1. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Investors In Q2 2023: 40
Latest P/E Ratio: 14.11
VICI Properties Inc. (NYSE:VICI) is a gaming real estate investment trust that manages some of the biggest casinos in the U.S. such as Caesars Palace and MGM Grand. The firm announced a $150 million investment partnership with a Texas based health and wellness firm in August to enable the latter to expand its operations.
40 out of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had bought VICI Properties Inc. (NYSE:VICI)’s shares. Ken Griffin’s Citadel Investment Group is the largest investor among these since it owns 5.2 million shares that are worth $163 million.
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Disclosure: None. You can also take a look at 16 Growing Dividend Stocks with Low PE Ratios and Top 25 Countries with the Most Facebook Users.
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