Posted on Tuesday, October 23rd, 2018 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 - 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 (13.6% 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, such as first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, and commercial mortgage-backed securities. The company is also involved in the investment of commercial finance assets, including asset-backed securities, debt tranches of collateralized debt and loan obligations, structured note investments, syndicated corporate loans, and preferred equity investment in a commercial leasing enterprise. It qualifies as a real estate investment trust (REIT) for federal income tax purposes. The company 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.
#2 - New Residential Investment (NYSE:NRZ)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $19.85 (10.9% Upside)
New Residential Investment Corp., a real estate investment trust, focuses on investing in and managing residential mortgage related assets in the United States. It operates through Servicing Related Assets, Residential Securities and Loans, and Other Investments segments. The company invests in excess mortgage servicing rights (MSRs) on residential mortgage loans; and in servicer advances, including the basic fee component of the related MSRs. It also invests in real estate securities, residential mortgage loans, investments in consumer loans, and corporate. In addition, the company has an interest in a portfolio of consumer loans, including unsecured and homeowner loans. 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 2011 and is based in New York, New York.
#3 - Cushman & Wakefield (NYSE:CWK)
Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $20.25 (27.8% Upside)
Cushman & Wakefield plc provides commercial real estate services in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers integrated facilities management, project and development, portfolio administration, transaction management, and strategic consulting services; property management services, including client accounting, engineering and operations, lease compliance administration, project and development, and sustainability services; and janitorial, maintenance, critical environment management, landscaping, and office services. The company also provides owner representation and tenant representation leasing services; capital market services, such as investment sales and equity, debt, and structured financing for real estate purchase and sales transactions; and appraisal management, investment management, valuation advisory, portfolio advisory, diligence advisory, dispute analysis and litigation support, financial reporting, and property and/or portfolio valuation services on real estate debt and equity decisions. Cushman & Wakefield plc was founded in 1784 and is headquartered in Chicago, Illinois.
#4 - CBRE Group (NYSE:CBRE)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 8 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $51.7857 (31.9% Upside)
CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through Americas; Europe, Middle East and Africa; Asia Pacific; Global Investment Management; and Development Services segments. The company offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing; integrated property sales, and mortgage and structured financing services under the CBRE Capital Markets brand; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. It also provides facilities management, project management, transaction management, and strategic consulting services to occupiers of real estate; and property management services comprising construction management, marketing, building engineering, accounting, and financial services for owners/investors in office, industrial, and retail properties. In addition, the company provides investment management services under the CBRE Global Investors brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services under the Trammell Crow Company brand name primarily to users of and investors in commercial real estate. CBRE Group, Inc. was founded in 1906 and is headquartered in Los Angeles, California.
#5 - Ryman Hospitality Properties (NYSE:RHP)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $86.40 (14.7% Upside)
Ryman Hospitality Properties, Inc. (NYSE:RHP) is a REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company's owned assets include a network of four upscale, meetings-focused resorts totaling 8,114 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at National Harbor, a 192-room hotel near Gaylord National. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music's finest performers for over 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; 650 AM WSM, the Opry's radio home; Ole Red, a country lifestyle and entertainment brand; and Opry City Stage, the Opry's first home away from home, in Times Square.
#6 - Ladder Capital (NYSE:LADR)
Consensus Rating: Buy
Rating Score: 3.2
Ratings Breakdown: 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $17.2857 (-0.7% Upside)
Ladder Capital Corp operates as a real estate investment trust in the United States. The company operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, a warehouse, and condominium units. 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. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.
#7 - AmeriCold Realty Trust (NYSE:COLD)
Consensus Rating: Buy
Rating Score: 2.7
Ratings Breakdown: 5 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $23.8571 (-2.6% Upside)
Americold is the world's largest owner and operator of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 156 temperature-controlled warehouses, with approximately 924 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.
#8 - Invitation Homes (NYSE:INVH)
Consensus Rating: Buy
Rating Score: 2.9
Ratings Breakdown: 9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $25.8125 (18.9% Upside)
Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes across America. With over 80,000 homes for lease in 17 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools. The Company's mission statement, "Together with you, we make a house a home," reflects its commitment to high-touch service that continuously enhances residents' living experiences and provides homes where individuals and families can thrive.
#9 - Colliers International Group (NASDAQ:CIGI)
Consensus Rating: Buy
Rating Score: 3.0
Ratings Breakdown: 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $79.75 (17.8% Upside)
Colliers International Group Inc. provides commercial real estate services to corporations, financial institutions, governments, and individuals worldwide. The company's Sales and Lease Brokerage division offers transaction brokerage services, including landlord representation, tenant representation, and capital markets and investment services, as well as property management, leasing, and valuations. This division provides its services for various asset classes, including office, industrial, retail, multi-family, hotel, and mixed-use properties. Its Outsourcing & Advisory Services division offers portfolio management, transaction and project management, workplace solutions, strategic consulting, property and asset management, and other corporate real estate services, as well as lease administration and facilities management systems; and valuation and appraisal review and management, portfolio or single asset valuation, arbitration and consulting, various studies, tax appeals, and litigation support services. This segment also provides property level accounting, tenant service/relations and bidding, awarding and administering subcontracts for management and maintenance, landscaping, security, parking, capital, and tenant improvements services; and bid document review, construction monitoring and delivery management, contract administration and integrated cost control, facility and engineering functionality, milestone and performance monitoring, quality assurance, risk management, and strategic project consulting services. In addition, it offers visioning, change management, and strategic consulting services; property marketing services for commercial and residential projects; and research services for owners and landlords. The company was founded in 1972 and is based in Toronto, Canada.
#10 - Prologis (NYSE:PLD)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 12 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $71.2143 (12.6% Upside)
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of June 30, 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 685 million square feet (64 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,000 customers across two major categories: business-to-business and retail/online fulfillment.
#11 - Ready Capital (NYSE:RC)
Consensus Rating: Hold
Rating Score: 2.4
Ratings Breakdown: 3 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $17.30 (11.1% Upside)
Ready Capital Corp., a real estate investment trust, acquires, originates, manages and finances commercial mortgage real estate loans or SBC loans and real estate-related securities in the US. Its SBC loans in the range of $500,000 to $10 million.
#12 - ILG (NASDAQ:ILG)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $35.3333 (3.5% Upside)
ILG, Inc., together with its subsidiaries, provides professional vacation services in the United States and internationally. The company operates in two segments, Vacation Ownership (VO), and Exchange and Rental. The VO segment engages in the sale, marketing, financing, and development of vacation ownership interests; and management of vacation ownership resorts, as well as in the provision of related services to owners and homeowners' associations (HOAs). The Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers by providing vacation exchange and rental services. This segment also provides leisure and travel related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients and HOAs; and allows owners of vacation interests to exchange their occupancy rights for alternative accommodations at another resort and/or occupancy period. In addition, this segment offers vacation property rental services for condominium owners, hotel owners, and HOAs. As of December 31, 2017, it operated a total of 43 resorts within Vistana Signature Experiences and Hyatt Vacation Ownership businesses; and managed approximately 250 resorts, vacation ownership properties, and/or their associations. The company was formerly known as Interval Leisure Group, Inc. and changed its name to ILG, Inc. in October 2016. ILG, Inc. was founded in 1976 and is headquartered in Miami, Florida.
#13 - American Tower (NYSE:AMT)
Consensus Rating: Buy
Rating Score: 2.8
Ratings Breakdown: 11 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $162.3077 (8.7% Upside)
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 170,000 communications sites.
#14 - CubeSmart (NYSE:CUBE)
Consensus Rating: Buy
Rating Score: 2.5
Ratings Breakdown: 5 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $32.30 (16.4% Upside)
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the 2018 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
#15 - Terreno Realty (NYSE:TRNO)
Consensus Rating: Buy
Rating Score: 2.6
Ratings Breakdown: 6 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $39.1429 (9.6% 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.
