In this piece, we will take a look at the 11 best REIT stocks to buy under $10. If you want to skip our overview and introduction to the real estate industry then you can take a look at the 5 Best REIT Stocks To Buy Under $10.
The real estate industry has become one of the most watched sectors as of late. This is because of the current interest rate environment that has not only made financing new projects much more difficult, but it has also raised the bar for securing financing for pricey real estate purchases such as a home. At the same time, real estate firms that rely on debt financing for managing their existing portfolios also feel the pressure since their interest rate payments rise.
While these are broader trends that end up affecting the real estate industry – and by extension, real estate stocks – 2024 is also seeing the sector continue to navigate the aftershocks of the coronavirus pandemic. The pandemic ushered in the trend of working from home, and even though lock downs and other restrictions are a thing of the past, companies are still struggling to convince their employees to return to the office.
In fact, the disruption in real estate has been so severe that it’s hit the most consumer facing section of the industry perhaps the hardest. This segment covers real estate agents, who act as facilitators between real estate sellers and buyers, with data from Alignable showing that small business real estate companies, that are primarily run by their owners themselves are in trouble. As of December 2023, nearly half or 45% of this segment had trouble paying their rent, and to make matters worse, higher interest rates are also drying up the real estate business. This is because mortgage rates, which are used as the primary means of home financing in the USA, have continued to hover around 7% and made home buying difficult for a lot of homeowners.
This means that real estate stocks aren’t generating much confidence, a fact that becomes clear when we take a look at the performance of the Dow Jones U.S. Real Estate Index. The index is flat over the past twelve months and has ended up losing 78 basis points. Expanding this to cover the pre pandemic era, the five year performance of the real estate stock index has seen it generate just 24 basis points in share price appreciation.
However, this brief analysis excludes one of the biggest features of real estate stocks, and one that not only separates them from the broader stock market but also high growth industries such as consumer technology, enterprise computing, artificial intelligence, and semiconductors. A big category of real estate stocks belongs to real estate investment trusts (REITs), and these are special legal vehicles that are structured to allow them to pass the majority of their profits to investors as dividends.
In fact, Insider Monkey took a look at some such stocks last year as part of our coverage of 11 Best REIT Dividend Stocks and found that some of the top paying stocks included American Tower Corporation (NYSE:AMT) and Prologis, Inc. (NYSE:PLD). These are pure play industrial companies that target the highly lucrative technology and supply chain industries. American Tower is a data center real estate investment stock, that offers companies with space to house their computing facilities. On the flip side, Prologis caters to the needs of one of the most real estate heavy industries, supply chain and logistics. The latter needs warehouses, lots, and other facilities, and looking at the latest dividends of these REIT stocks, the two have yields of 3.62% and 2.90%, respectively.
With this backdrop, let’s take a look at some of the top REIT stocks that hedge funds are piling into. In this list, the notable names are Service Properties Trust (NASDAQ:SVC), Brandywine Realty Trust (NYSE:BDN), and Hudson Pacific Properties, Inc. (NYSE:HPP).
11 Best REIT Stocks To Buy Under $10
An office building in the center of the city, representing the financial power of the company.
Our Methodology
To make our list of the best REIT stocks, we ranked the 37 biggest REIT stocks in terms of market capitalization and with a share price less than $10 by the number of hedge funds that had bought the shares as of Q4 2023 end. Out of these, the top REIT stocks were chosen.
For these best REIT stocks, we hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Uniti Group Inc. (NASDAQ:UNIT) is a specialized REIT that caters primarily to the needs of the telecommunications industry. February 2024 has been an important financial month for the firm that has seen it beef up cash by selling assets and gaining a new credit facility.
By the end of 2023’s final quarter, 17 out of the 933 hedge funds tracked by Insider Monkey had held a stake in the firm. Paul Singer’ Elliott Management was the biggest Uniti Group Inc. (NASDAQ:UNIT) investor due to its $58.4 million stake.
Just like Brandywine Realty Trust (NYSE:BDN), Service Properties Trust (NASDAQ:SVC), and Hudson Pacific Properties, Inc. (NYSE:HPP), Uniti Group Inc. (NASDAQ:UNIT) is a top REIT stock under $10 that hedge funds are buying.
Chimera Investment Corporation (NYSE:CIM) is an American real estate investment trust headquartered in New York City. It is primarily a mortgage asset manager backed by residential and commercial properties. While Chimera Investment Corporation (NYSE:CIM) trades for just $4, more than half of the shares are owned by institutional investors, lending the stock some stability.
As of Q4 2023 end, 19 out of the 933 hedge funds part of Insider Monkey’s database had bought and owned Chimera Investment Corporation (NYSE:CIM)’s shares. Dmitry Balyasny’s Balyasny Asset Management was the firm’s biggest investor due to its $15.7 million investment.
Medical Properties Trust, Inc. (NYSE:MPW), as the title suggests, is a healthcare focused REIT that owns more than four hundred hospital properties, making it one of the biggest REITs of its kind. However, the stock is rated Hold on average, and the average analyst share price target is $5.
During last year’s final quarter, 18 out of the 933 hedge funds profiled by Insider Monkey were the firm’s shareholders. The largest Medical Properties Trust, Inc. (NYSE:MPW) stakeholder out of these is Philippe Laffont’s Coatue Management courtesy of its $33.4 million stake.
LXP Industrial Trust (NYSE:LXP) is an industrial REIT headquartered in New York City. It’s one of the stronger performing REIT stocks on our list, as the firm has beaten analyst EPS estimates in three out of its four latest quarters. While REITs are also evaluated by their payout ratios and other metrics, the EPS beats underscore the strength of LXP Industrial Trust (NYSE:LXP)’s markets and management even during an era of high interest rates.
Insider Monkey took a look at 933 hedge fund portfolios for 2023’s fourth quarter and found 19 LXP Industrial Trust (NYSE:LXP) investors. Eduardo Abush’s Waterfront Capital Partners was the biggest hedge fund investor as it owned $34.5 million worth of shares.
Industrial Logistics Properties Trust (NASDAQ:ILPT) is a logistics focused REIT that owns properties such as warehouses. Like other industrial REITs, it is also performing well on the financial front by having beaten analyst EPS estimates in three out of its four latest quarters.
During December 2023, 20 out of the 933 hedge funds covered by Insider Monkey’s research had held a stake in the firm. Industrial Logistics Properties Trust (NASDAQ:ILPT)’s largest stakeholder in our database is Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management due to its $9.3 million investment.
Seritage Growth Properties (NYSE:SRG) is a diversified NYC based REIT. It’s one of the more interesting REITs on our list, as when opposed to more traditional retail REITs, Seritage Growth Properties (NYSE:SRG) offers its customers the ability to customize their locations. The stock has posted modest returns this year, and the shares are up by nearly 2% year to date.
By the end of last year’s fourth quarter, 20 out of the 933 hedge funds profiled by Insider Monkey had invested in Seritage Growth Properties (NYSE:SRG). Karim Abbadi and Edward Mcbride’s Centiva Capital owned the biggest stake that was worth $19.7 million and came through 2.1 million shares.
Service Properties Trust (NASDAQ:SVC), Seritage Growth Properties (NYSE:SRG), Brandywine Realty Trust (NYSE:BDN), and Hudson Pacific Properties, Inc. (NYSE:HPP) are some top hedge fund unit REIT stock picks.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
