Top 5 REIT Stocks Under $10

3. RLJ Lodging Trust Inc. (NYSE:RLJ)

Number of Hedge Fund Holdings: 22

Share Price (As of September 27): $10.0

Based in Maryland, RLJ Lodging Trust (NYSE:RLJ) is a hotel investment company that owns premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels. The company owns over 96 hotels with approximately 21,200 rooms spread out over 23 states. As of the second quarter of 2022, RLJ Lodging Trust (NYSE:RLJ) posted an EPS of $0.16, beating estimates of $0.1 by $0.06. The company also reported a revenue of $330.5 million in Q2 2022.

On August 7, Barclays analyst Anthony Powell lowered the price target on RLJ Lodging Trust (NYSE:RLJ) to $15 from $18, keeping an Equal Weight rating on the shares. According to Powell, lodging REITs have already been priced in a typical downturn, which presents an excellent buying opportunity. The analyst admits that although a financial slump is possible due to the challenging macroeconomic climate, the company’s pent up convention demand sheds doubts on the likelihood on the slump. Shares of RLJ Lodging Trust (NYSE:RLJ) have consistently generated a yield in excess of 7% in Q2 2022. These shares are perpetual, convertible, and not callable. As of the second quarter of 2022, Ken Griffin’s Citadel Investment Group is the largest shareholder in the stock, owning more than 3.93 million shares worth $43.32 million.