In this article, we will discuss the 5 real estate stocks to buy now according to John Khoury’s Long Pond Capital. If you want to read our detailed analysis of Khoury’s history, investment philosophy, and hedge fund performance, go directly to the 10 Real Estate Stocks to Buy Now According to John Khoury’s Long Pond Capital.
5. Invitation Homes Inc. (NYSE:INVH)
Long Pond Capital Stake Value: $102,731,000
Percentage of Long Pond Capital’s 13F Portfolio: 3.75%
Number of Hedge Fund Holders: 36
Invitation Homes Inc. (NYSE:INVH) is a single-family home leasing firm. In October, the company declared a quarterly dividend of $0.17, in line with the previous.
Long Pond Capital holds more than 2.68 million shares in the firm worth over $102.73 million, representing 3.75% of its investment portfolio. The hedge fund has increased its stake by 29% in the third quarter. In November, JMP Securities analyst Aaron Hecht raised his price target on Invitation Homes to $50 from $45 and kept an “Outperform” rating on the shares post company’s Q3 earnings results.
Echo Street Capital Management is the most significant stakeholder in Invitation Homes Inc., with 4.29 million shares worth $164.43 million. The company was in 36 hedge funds’ portfolios in the third quarter of 2021.
4. American Homes 4 Rent (NYSE:AMH)
Long Pond Capital Stake Value: $146,464,000
Percentage of Long Pond Capital’s 13F Portfolio: 5.36%
Number of Hedge Fund Holders: 33
American Homes 4 Rent (NYSE:AMH) is a Calabasas, California-based real estate investment trust that focuses on single-family rental homes. In November, the company announced a quarterly dividend of $0.10 per share, in line with the previous.
In October, BTIG analyst James Sullivan upgraded American Homes 4 Rent to “Buy” from “Neutral,” with a price objective of $47, as part of a more comprehensive research report titled Single-Family Rentals – Robust Earnings Momentum. In November, the firm announced an FFO of $0.35 for the third quarter, exceeding analyst forecasts by $0.01.
American Homes 4 Rent has seen an increase in hedge fund sentiment in recent months. The company was in 33 hedge funds’ portfolios in the third quarter of 2021, up from 31 in the previous quarter.
3. Equity Residential (NYSE:EQR)
Long Pond Capital Stake Value: $158,671,000
Percentage of Long Pond Capital’s 13F Portfolio: 5.8%
Number of Hedge Fund Holders: 32
Equity Residential (NYSE:EQR) is a REIT that invests in real estate. Residential properties are developed, acquired, and managed by the company.
Anyone Home, the industry’s top provider of technology that enables rental housing operators to connect and communicate with tenants and prospects, announced in November a countrywide agreement with Chicago-based Equity Residential (NYSE:EQR) to serve as its portfolio-wide CRM solution.
Jean-Marie Eveillard’s First Eagle Investment Management owns 5.85 million shares of Equity Residential, worth $473.47 million, topping the list of over 867 hedge funds tracked by Insider Monkey. Next on the list is Long Pond Capital that owns 1.96 shares of the company, worth over $158.67 million.
2. Spirit Realty Capital, Inc. (NYSE:SRC)
Long Pond Capital Stake Value: $175,847,000
Percentage of Long Pond Capital’s 13F Portfolio: 6.43%
Number of Hedge Fund Holders: 23
Spirit Realty Capital, Inc. (NYSE:SRC) is a holding company that invests in real estate. Acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, and capital markets are among the company’s in-house competencies. In November, the company declared a dividend of $0.638, in line with the previous.
In September, RBC Capital analyst Brad Heffern initiated coverage of Spirit Realty, giving the stock a “Sector Perform” rating and a $53 price objective. Long Pond Capital is the biggest shareholder in Spirit Realty Capital, Inc., with 3.82 million shares worth $175.85 million, representing 6.43% of their investment portfolio. The hedge fund has increased its stake in the firm by 48% in the third quarter of 2021.
Hedge funds are loading up on Spirit Realty Capital, Inc., as Insider Monkey’s data shows that 23 hedge funds held stakes in the company in the third quarter of 2021, compared to 19 funds a quarter earlier.
1. VICI Properties Inc. (NYSE:VICI)
Long Pond Capital Stake Value: $181,256,000
Percentage of Long Pond Capital’s 13F Portfolio: 6.63%
Number of Hedge Fund Holders: 47
VICI Properties Inc. (NYSE:VICI) is a casino-focused real estate investment trust. In the third quarter of 2021, the company posted revenue of $375.7 million up 10.6% Y/Y. VICI Properties Inc. shares have gained 9.06% in the past twelve months.
Caesars Entertainment, Inc. (NASDAQ:CZR) and VICI Properties Inc. announced earlier in November that they had finalized the previously announced sale of Harrah’s Louisiana Downs Casino, Racing & Entertainment to Rubico Acquisition Corp. for $22 million. In October, KeyBanc analyst Todd Thomas upgraded VICI Properties to “Overweight” from “Sector Weight” and gave a price target of $33.
As of the third quarter of 2021, 47 hedge funds out of the 867 tracked by Insider Monkey held stakes in VICI Properties Inc., worth roughly $1.38 million, up from 37 in the preceding quarter worth $664.68 million.
You can also take a peek at Top 10 Real Estate Billionaires In The World and 25 Fastest Growing Real Estate Markets in America
