Posted on Saturday, April 20th, 2019 by MarketBeat StaffThere are more than 200 publicly-traded real-estate investment trusts (REITs) that you can buy through your brokerage account. Given the sheer number of REITs, it can be hard to identify which real-estate stocks are going to outperform the market.
Fortunately, Wall Street's brightest minds have already done this for us. Every year, analyst issue approximately 4,000 distinct recommendations for REITs. Analysts don't always get their "buy" ratings right, but it's worth taking a hard look when several analysts from different brokerages and research firm are giving "strong buy" and "buy" ratings to the same REIT.
This slide show lists the 15 REITs that have the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.
#1 - LENDLEASE CORP/ADR (OTCMKTS:LLESY)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: N/A
LendLease Group provides property and infrastructure solutions in Australia, Asia, Europe, and the Americas. The company operates through three segments: Development, Construction, and Investments. The Development segment develops communities, inner city mixed use developments, apartments, retirement, retail, commercial assets, and social and economic infrastructure. The Construction segment provides project management, design, and construction services primarily in the infrastructure, defense, mixed use, commercial, and residential sectors. The Investments segment owns and/or manages investments, including property and infrastructure co-investments, retirement livings, and the U.S. military housings. LendLease Group was founded in 1958 and is headquartered in Sydney, Australia.
#2 - Agree Realty (NYSE:ADC)
Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 5 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $66.3333 (1.6% Upside)
Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of December 31, 2018, the Company owned and operated a portfolio of 645 properties, located in 46 states and containing approximately 11.2 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol "ADC".
#3 - AmeriCold Realty Trust (NYSE:COLD)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $30.1667 (-2.5% Upside)
Americold is the world's largest owner and operator of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 155 temperature-controlled warehouses, with approximately 918.7 million refrigerated cubic feet of storage, in the United States, Australia, New Zealand, Canada, and Argentina. Americold's facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers. Americold serves approximately 2,400 customers and employs approximately 11,000 associates worldwide.
#4 - CyrusOne (NASDAQ:CONE)
Consensus Rating: Buy
Rating Score: 2.6
Ratings Breakdown: 7 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $62.00 (9.0% Upside)
CyrusOne (NASDAQ: CONE) is a high-growth real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including 211 Fortune 1000 companies. With a track record of meeting and surpassing the aggressive speed-to-market demands of hyperscale cloud providers, as well as the expanding IT infrastructure requirements of the enterprise, CyrusOne provides the flexibility, reliability, security, and connectivity that foster business growth. CyrusOne offers a tailored, customer service-focused platform and is committed to full transparency in communication, management, and service delivery throughout its 48 data centers worldwide.
#5 - Exantas Capital (NYSE:XAN)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $12.50 (16.9% Upside)
Exantas Capital Corp., a real estate investment trust, primarily focuses on the origination, holding, and management of commercial mortgage loans and commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments related to commercial real estate (CRE), commercial mortgage-backed securities, and CRE equity investments. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. The company was formerly known as Resource Capital Corp. and changed its name to Exantas Capital Corp. in May 2018. Exantas Capital Corp. was founded in 2005 and is based in New York, New York.
#6 - Store Capital (NYSE:STOR)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 6 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $32.8333 (2.2% Upside)
STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in 2,255 property locations, substantially all of which are profit centers, in 49 states.
#7 - Prologis (NYSE:PLD)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 10 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $71.9167 (-2.2% Upside)
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 768 million square feet (71 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,100 customers across two major categories: business-to-business and retail/online fulfillment.
#8 - RioCan Real Estate Investment Trust (TSE:REI.UN)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: C$27.50 (6.0% Upside)
RioCan is one of Canada's largest real estate investment trusts with a total enterprise value of approximately $13.2 billion as at December 31, 2018. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. Our portfolio is comprised of 233 properties, including 16 development properties, with an aggregate net leasable area of approximately 38.7 million square feet.
#9 - CT Real Estate Investment Trust (TSE:CRT.UN)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: C$15.38 (9.2% Upside)
CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties primarily located in Canada. Its portfolio is comprised of over 325 properties totaling approximately 26 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant.
#10 - Alexandria Real Estate Equities (NYSE:ARE)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 5 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $105.5714 (-23.9% Upside)
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500 company, is an urban office real estate investment trust ("REIT") uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $18.4 billion and an asset base in North America of 33.1 million square feet ("SF") as of December 31, 2018. The asset base in North America includes 22.4 million RSF of operating properties and 3.9 million RSF of development and redevelopment of new Class A properties currently undergoing construction and pre-construction activities with target delivery dates ranging from 2019 through 2020. Additionally, the asset base in North America includes 6.8 million SF of intermediate-term and future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science and technology companies through our venture capital arm. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
#11 - MGM Growth Properties (NYSE:MGP)
Consensus Rating: Buy
Rating Score: 2.6
Ratings Breakdown: 6 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $32.8889 (1.4% Upside)
MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP currently owns a portfolio of properties, consisting of 11 premier destination resorts in Las Vegas and elsewhere across the United States, the Hard Rock Rocksino Northfield Park in Northfield, OH, Empire Resort Casino in Yonkers, NY, as well as a retail and entertainment district, The Park in Las Vegas. As of December 31, 2018, our destination resorts, the Park, and Northfield Park collectively comprise approximately 27,500 hotel rooms, 2.7 million convention square footage, 150 retail outlets, 300 food and beverage outlets and 20 entertainment venues. As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.
#12 - Terreno Realty (NYSE:TRNO)
Consensus Rating: Buy
Rating Score: 2.6
Ratings Breakdown: 3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $43.00 (-0.4% Upside)
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.
#13 - Camden Property Trust (NYSE:CPT)
Consensus Rating: Buy
Rating Score: 2.7
Ratings Breakdown: 11 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $99.6667 (1.1% Upside)
Camden Property Trust, an S&P 400 Company, is a real estate company engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 161 properties containing 55,160 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company's portfolio will increase to 56,858 apartment homes in 167 properties. Camden was recently named by FORTUNE® Magazine for the eleventh consecutive year as one of the 100 Best Companies to Work For in America, ranking #24.
#14 - PennyMac Mortgage Investment Trust (NYSE:PMT)
Consensus Rating: Buy
Rating Score: 2.7
Ratings Breakdown: 4 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $21.6667 (4.2% Upside)
PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company's Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS). Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, firm commitment to purchase CRT securities, distressed mortgage loans, real estate acquired in settlement of mortgage loans, non-Agency subordinated bonds, and small balance commercial real estate mortgage loans. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS; and interest rate hedging activities related to indebtedness. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2009 and is based in Westlake Village, California.
#15 - Armada Hoffler Properties (NYSE:AHH)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $16.3125 (4.3% Upside)
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.
