Top 5 REIT Stocks Under $10

1. The Macerich Co. (NYSE:MAC)

Number of Hedge Fund Holdings: 23

Share Price (As of September 27): $7.73

Based in Santa Monica, California, The Macerich Co. (NYSE:MAC) is the third-largest, self-advised, real estate investment trust in the U.S, and invests primarily in shopping centers. As of September 27, the company has a market cap of $1.73 billion, and a price-to-earnings ratio of 32.2. Investor interest around The Macerich Co. (NYSE:MAC) has increased, with 23 hedge funds having a stake value of $105.57 million in Q2 2022. This is up from 20 hedge funds having a stake of $160.26 million in Q1 2022. AQR Capital Management is the largest shareholder in the company as of Q2 2022.

Macerich’s (NYSE:MAC) portfolio comprises a variety of premium-quality assets at very low valuations, which in turn opens up an excellent opportunity for investors eying the real estate sector. The variation and quality of the company’s portfolio incentivizes investors who can afford the risk. With one of the lowest valuation multiples in the industry, the company is set to accomplish its expansion objectives by 2025. It offers significant current income with a 5.2% dividend yield as of Q2 2022, and substantial potential for price appreciation. With a dividend yield of 5.2% and an increased possibility for share price appreciation, the risk/reward ratio is on the upside.

Here is what Smead Capital Management had to say about The Macerich Co. (NYSE:MAC) in their Q2 2022 investor letter:

“Leading the downside were stocks we own tied to any economic optimism. Warner Bros. Discovery (WBD) suffered selling from AT&T (T) shareholders disposing of it upon distribution of the shares in the merger. We have been too optimistic about how long it would take for these uninterested parties to sell. The Macerich Company (NYSE:MAC) suffered from fears of what a recession and higher interest rates would do to their business, disregarding the recovery in the Class “A” mall space since 2020.”

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